9 PM Daily Current Affairs Brief – April 19th, 2022
Dear Friends,
We have initiated some changes in the 9 PM Brief and other postings related to current affairs. What we sought to do:
- Ensure that all relevant facts, data, and arguments from today’s newspaper are readily available to you.
- We have widened the sources to provide you with content that is more than enough and adds value not just for GS but also for essay writing. Hence, the 9 PM brief now covers the following newspapers:
- The Hindu
- Indian Express
- Livemint
- Business Standard
- Times of India
- Down To Earth
- PIB
- We have also introduced the relevance part to every article. This ensures that you know why a particular article is important.
- Since these changes are new, so initially the number of articles might increase, but they’ll go down over time.
- It is our endeavor to provide you with the best content and your feedback is essential for the same. We will be anticipating your feedback and ensure the blog serves as an optimal medium of learning for all the aspirants.
- For previous editions of 9 PM Brief – Click Here
- For individual articles of 9 PM Brief– Click Here
Mains Oriented Articles
GS Paper 2
- Explained: WHO & traditional medicine
- A new shine to old ties
- India can criticise Russia’s Ukraine invasion
- India’s policy on cooperation is key to creating livelihood for all
- Pendency Begins Here
GS Paper 3
- PLI scheme with a return for the government
- Cryptos and a CBDC are not the same thing
- The right price: on TRAI’s latest recommendations
- Upholding the right to repair
Prelims Oriented Articles (Factly)
- Ecowrap Report: States need to reset spending, cut freebies: SBI advisor’s report
- The UK Rwanda Asylum Plan
- Nitrogen levels on a decline in ‘nitrogen-rich world’, plants and animals may face consequences: Study
- India to try groundwater recharge method to solve water problem
- National Security Council Secretariat organizes National Cyber Security Incident Response Exercise(NCX India) to strengthen India’s Cyber posture
- Code for medical devices welcomed
- Extinction threat: Vaquita porpoise global population down to only 10
- Explained: What does designation as a ‘state sponsor of terrorism’ by the US mean?
- AAI airports provide platform to local artisans for promotion through AVSAR Scheme
Mains Oriented Articles
GS Paper 2
Explained: WHO & traditional medicine
Source: This post is based on the article “Explained: WHO & traditional medicine” published in The Indian Express on 19th Apr 22.
Syllabus: GS2 – International Relations – International groupings and organizations
Relevance: Traditional medicine and India’s role
News: Groundbreaking ceremony for the first-of-its-kind WHO Global Centre for Traditional Medicine (GCTM) will be held in Jamnagar, Gujarat.
What is traditional medicine?
The WHO describes traditional medicine as –
The total sum of the “knowledge, skills and practices indigenous and different cultures have used over time to maintain health and prevent, diagnose and treat physical and mental illness”.
As per WHO, the reach of traditional medicine encompasses ancient practices such as acupuncture, ayurvedic medicine and herbal mixtures as well as modern medicines.
According to WHO estimates, 80% of the world’s population uses traditional medicine. |
In India, traditional medicine is often defined as including practices and therapies — such as yoga, Ayurveda, Siddha — that have been part of Indian tradition historically, as well as others — such as homeopathy — that became part of Indian tradition over the years.
– Ayurveda and yoga are practised widely across the country
– the Siddha system is followed predominantly in Tamil Nadu and Kerala
– the Sowa-Rigpa system is practised mainly in Leh-Ladakh and Himalayan regions such as Sikkim, Arunachal Pradesh, Darjeeling, Lahaul & Spiti
What will be the GCTM be about?
India has committed an estimated $250 million to support the GCTM’s establishment, infrastructure and operations.
Aim: Evidence-based research, innovation, and data analysis to optimise the contribution of traditional medicine to global health. Its main focus will to develop norms, standards and guidelines in technical areas relating to traditional medicine.
The GCTM will support efforts to implement the WHO’s Traditional Medicine Strategy (2014-23)
– The strategy aims to support nations in developing policies & action plans to strengthen the role of traditional medicine in pursuing the goal of universal health coverage.
Why has WTO felt the need to advance knowledge of traditional medicine?
The WHO says 170 of its 194 WHO Member States have reported the use of traditional medicine. Moreover, these member states have asked for its support in creating a body of “reliable evidence and data on traditional medicine practices and products”.
Jamnagar centre will serve as the hub, and focus on building a “solid evidence base” for policies and “help countries integrate it as appropriate into their health systems”.
2]. There is a need to conserve biodiversity and sustainability as about 40% of approved pharmaceutical products today derive from natural substances.
– For example, the discovery of aspirin drew on traditional medicine formulations using the bark of the willow tree, the contraceptive pill was developed from the roots of wild yam plants and child cancer treatments have been based on the rosy periwinkle.
3]. WHO has referred to modernisation of the ways traditional medicine is being studied. Artificial intelligence is now used to map evidence and trends in traditional medicine.
– Functional magnetic resonance imaging (fMRI) is used to study brain activity and the relaxation response that is part of some traditional medicine therapies such as meditation and yoga.
4]. Traditional medicine is also being extensively updated by mobile phone apps, online classes, and other technologies. The GCTM will serve as a hub for other countries, and build standards on traditional medicine practices and products.
Has India taken up similar collaborative efforts earlier?
Yes.
– Project collaboration agreement (PCA): In 2016, the Ministry of AYUSH signed a PCA with the WHO in the area of traditional medicine. The aim was to create benchmarks for training in yoga, Ayurveda, Unani and Panchakarma, for traditional medicine practitioners.
– The collaboration also aimed at promoting the quality and safety of traditional medicine and consumer protection by supporting WHO in the development and implementation of the WHO Traditional and Complementary Medicine Strategy.
MoUs with various institutes, universities and organisations from countries across the globe were signed.
A new shine to old ties
Source: The post is based on an article “A new shine to old ties” published in the Indian Express on 19th Apr 22.
Syllabus: GS2 – International Relations, Bilateral Relations
Relevance: India-UK relations
News: The Prime Minister Narender Modi is going to host British premier Boris Johnson this week in India. Further, both countries have been working on a roadmap to transform bilateral relations by 2030.
What were the issues in India-Britain bilateral relations?
There have been bitter legacies of colonialism. These legacies had made it impossible for the two sides to pursue a sensible relationship in the past. India has shown post-colonial resentments. London was not willing to accept India’s claim for a special role in the Subcontinent.
The consequences of Partition and the Cold War made it harder for Delhi and London to construct a sustainable partnership.
At present, there are visible differences between both countries over the Russian invasion of Ukraine.
Britain was much slower in appreciating India’s new geopolitical salience. In fact, India’s relations with two key countries of the Anglosphere(the US and Australia) are better than those with Britain.
Historically, Britain has been tilted towards Pakistan. This has complicated India-Britain Relationship. For example, Earlier Tories (Political Party) were empathetic to Pakistan not India.
Now India’s internal issues are getting politicised in Britain. For example, the Labour Party targets India for its position on Kashmir. It is also shaped by the large South Asian diaspora in Britain.
What are the prospects for India-Britain bilateral relations?
There are expansive new possibilities in trade, investment, high technology, defence, and regional cooperation.
Pakistan’s relative decline in the Indian Subcontinent is bound to make it less important in India’s bilateral relations with Britain.
Now, The Tory leadership has helped build a number of measures aimed to ensure political confidence with India.
Post-Brexit, Britain needs a number of partners. The Indian economy is set to become larger than Britain’s in the next couple of years. Therefore, India is naturally among the top political and economic priorities for Britain.
The regional and international circumstances provide a new basis for mutually beneficial engagement.
The US has played an important role in transforming the bilateral ties between Delhi and London. It is based on the US premise that a stronger India will serve US interests in Asia and the world.
The west is strategically committed to assist India’s rise due to increasing assertion of China in Asia. On similar lines, London has also released its own “Indo-Pacific tilt”. Therefore, both can have newer roles in the coming future.
Why should India engage with Britain?
India is strategically important for India. It is the fifth-largest economy, a permanent member of the Security Council, a global financial hub, a centre of technological innovation, and a leading cyber power. It has a significant international military presence and wide-ranging political influence.
India can criticise Russia’s Ukraine invasion
Source: The post is based on an article “India can criticise Russia’s Ukraine Invasion” published in The Hindu on 19th April 2022.
Syllabus: GS2 – International Relations; Bilateral Relations
Relevance: India-Russia Relation
News: Recently, India has been facing severe pressure from the west and especially from the US over its stand on the Russia-Ukraine conflict.
India’s Ministry of External Affairs (MEA) has repeatedly abstained on multiple resolutions critical of Russia’s invasion in the UN forums. In fact, it has not directly mentioned Russia in the statements criticizing the conflict.
What has been India’s experience and response with respect to the Western Pressure so far?
In 2018, India “zeroed out” its oil imports from Iran, after the U.S. warned India to drop its oil imports from Iran or face U.S. sanctions. At that time, Iran was India’s third biggest supplier of crude.
In 2022, the U.S. is pressurizing India to cut its oil imports from Russia. In addition, India has been warned of “consequences” for creating payment mechanisms around sanctions against Russia.
India’s stand in the India-Russia Bilateral Relations Post Ukrainian Invasion
India’s External Affairs Minister has said that India does not recognise unilateral sanctions by any country. India recognizes only those sanctions which are mandated by the United Nations (UNs)
India has been increasing import of Russian oil, at a discount. In addition, India is also accelerating coal imports.
The RBI and Russian bank officials have been holding technical talks on the rupee-rouble payment mechanism. It is aimed to be used for purchases that circumvent sanctions.
What explains the Government’s refusal to bow to combined western pressure?
India has dependency on Russia for 60% defence hardware and 85% defence spare parts.
In the energy sector, Indian oil public sector units (PSUs) have invested $16 billion in Russian oil and gas fields in eastern Russia. In addition, India’s nuclear power plant say, Kudankulam in Tamil Nadu has also been built by Russia which fulfils India’s energy requirement.
The long-term sustainability of the western sanctions on Russia is doubtful. Only 30 to 40 countries have joined the sanctions. However, major economies including China and much of South America and Africa have stayed out. In this situation, it’s not beneficial for India to pick the west side in the “dollar vs non-dollar” economic system.
India’s strategic future is also inextricably linked with Russia. India needs Russia for its continental security. India’s primary threats come from northern frontier from China and Pakistan. For example, Chinese troops have transgressed and occupied Indian territory. In this context, Moscow can play a mediatory role.
India is part of regional grouping such as BRICS, RIC (Russia-India-China) and Shanghai Cooperation Organisation (SCO). These groupings have strategic significance for India.
Russia being a P-5 member has consistently supported India’s cause in the UN Security Council. In addition, support has also been received at other multilateral institutions such as the Financial Action Task Force (FATF) and the Nuclear Suppliers Group (NSG).
The European Union and the U.S. have been critical of India’s Citizenship (Amendment) Act, the Jammu and Kashmir reorganisation, or the treatment of minorities, the media and NGOs. However, Russia has not raised concerns over such issues against India.
Biden’s regime is not assertive as Trump’s regime was in case of Iran sanctions. Therefore, it seems India can escape the warning issued by the US.
The Government of India adheres to non-alignment and strategic autonomy principles. India has refused to entertain western sanctions in the past also. India conducted nuclear tests in 1998. India also refused to bend to U.S. pressure on Iran oil sanctions in 2012.
Why should India criticise Russian actions?
The Russia invasion is a brutal invasion of another country. In past, the Indian government has deplored the U.S. invasion of Iraq through resolution in the Indian Parliament in 2003. This was done despite India’s growing partnership with the U.S.
Jawaharlal Nehru in a speech in the U.S. in 1949, said “Where freedom is menaced or justice threatened or where aggression takes place, India cannot and shall not be neutral.”
Strategic autonomy can carry credibility only when it is expressed without fear or favour of the consequences.
India’s policy on cooperation is key to creating livelihood for all
Source: The post is based on an article “India’s policy on cooperation is key to creating livelihood for all” published in the Live Mint on 19th Apr 22.
Syllabus: GS2 – Provisions of the Constitution of India; and Design of Polices and Programmes
Relevance: Cooperative Sector
News: Recently, the Union Minister of Cooperation inaugurated a two-day national conference on India’s Cooperation Policy. In the programme, a call was made to usher-in a ‘movement for cooperation’.
What is the concept of Cooperation?
The draft National Policy on Cooperatives puts it this way –
– Cooperation is an approach. It is a preferred instrument of execution of public policy especially in rural areas.
– It refers to the attributes of community ties, collective decision-making, mutual trust, shared ownership and social responsibility.
Importance of cooperatives/cooperation for the effectiveness of a policy as learnt from the successful implementation the Pradhan Mantri Van Dhan Yojana
The cooperatives are said to be the catalysts for social and economic progress. They can help in creating a society of self-dependent people with adequate livelihood opportunities.
They can play an important role from farming and food-processing to fisheries and self-help groups (SHGs).
The cooperation works well when there is an affinity, mutual trust and a certain degree of affiliation among members. For example, a group of 200 women in the Gadchiroli district of Maharashtra have created a market for neem pesticides with their coordinated action.
The output and the bargaining power is increased when individuals comes together for collective actions. For example, a woman group at VDVK in Jharkhand, was amazed to see the quantum of forest produce and their increased negotiating power as traders come to them to buy mahua flowers, etc.
The promotion of co-operatives and Cooperation will lead to convergence of schemes. For example, VDVKs in Odisha and Chhattisgarh are witnessing convergence of schemes for training of beneficiaries.
It leads to empowerment of weaker sections of society. For example, women participate in the SHG meetings.
Way Ahead
The PMVDY offers a classic example of how the cooperative spirit can be harnessed. Its features are important for social fulfillment and economic growth.
A cleaner (without corruption), rule-based and more efficient cooperative system should be developed.
Note: Van Dhan Vikas Kendra (VDVK) which has been made operational under the Pradhan Mantri Van Dhan Yojana (PMVDY) functions on the attributes of cooperative existence.
Pendency Begins Here
Source: The post is based on an article “Pendency Begins Here” published in the Times of India on 19th Apr 22.
Syllabus: GS2 – Functioning of Indian Judiciary
Relevance: Judicial appointments
News: Recently, the Supreme Court (SC) expressed concern that many names cleared by the SC collegium were pending with the government for a considerable period.
However, the Union law minister told Rajya Sabha that the government has never deliberately delayed the process of judicial appointments.
Status of judicial vacancies in India
Around 35% of judge’s seats are vacant in the High Courts.
The most number of vacancies are present in the HCs of Patna (49%), Rajasthan (48%) and Calcutta (46%).
What is the judicial appointment procedure in India?
(A) The Collegium System
The collegium system was created through famously known as the Three Judges Cases (SC).
The collegium comprises the chief justice of the court along with its senior-most judges. The collegium is constituted both at the SC level and at high courts.
(B) Memorandum of Procedure (MoP)
It is a collaborative framework between government and judiciary. It was prepared in 1998 pursuant to the Three Judges Cases. It largely governs the judicial appointment procedure in India.
For appointment of HC judges:
The HC collegium suggests names for elevation. The names travel through various departments of the state government, Intelligence Bureau and the central government. Then they are sent to the SC collegium for approval.
The SC collegium considers the names. Then the final list is forwarded to the Central government for appointment.
If the central government has any reservation, the names are sent back to the SC collegium for reconsideration. However, if the collegium deems that the recommendations are sound, it reiterates its stance. Then the Centre is required to make the appointment.
Timeframe stipulated in the MOP for the appointment procedure: The Centre forwards the recommendations to the SC collegium within 4-6 weeks after receiving the report from the state government and IB. The SC collegium should submit the final list within 4 weeks to the Centre. The central government should put forth the list for President’s assent within 3 weeks. In case of reiteration of recommendations by the SC collegium, the final appointment should be made within 8-12 weeks.
The Chief Justice of India mentioned that the notion of “judges themselves appointing judges” is a “myth”. The judiciary is just one of the players in the selection process. The judiciary has the first say in the selection process. However, the government has the final say. |
What are the issues in the judicial appointment process?
The stipulated time frame is not followed.
– For example, in 2021, the government sent a list to SC Collegium after an average of 18 weeks after taking inputs from IB. Further, the SC collegium sent the final list to the central government after an average of 17 weeks. Further, an average of 41 days (6 weeks) were taken from the date of final resolution of the SC collegium to the appointment of judges in HCs.
A lot of delay happens in appointment of judges whose names have been reiterated by the SC collegium.
What is the impact of delays in appointment?
Such delays in the appointment process impact the number of vacancies and thus the pendency of cases.
The delay in appointment despite constant reiterations by the SC collegium discourages potential candidates like senior lawyers from joining the judgeship.
For example, senior advocate Aditya Sondhi withdrew his consent for elevation to the Karnataka HC citing a delay of a year.
What is the way forward?
There is a need for devising realistic timeframes. It can be done using appropriate data.
The collegium resolutions sent by HCs and some of the intermediary steps should be made public. It can bring more transparency about how much time is being taken by the collegium and the government.
GS Paper 3
PLI scheme with a return for the government
Source: This post is based on the article “PLI scheme with a return for the government” published in The Indian Express on 18th Apr 22.
Syllabus: GS3 – Indian Economy
Relevance: About the Production-Linked Incentive (PLI) Scheme
News: The government’s ambitious PLI scheme aims to overcome the disadvantage of high costs in the country and to encourage production on a very large scale in some selected industries. The scheme aims to reduce costs per unit of output, and help not just the economy but the country more generally.
However, there are concerns. More so, when there can be alternative policies to achieve the desired objectives without adversely impacting the budget of the government
What benefits have already been given to the corporate sector?
The corporate sector has been given several benefits already.
– The corporate tax rates have been cut substantially
– the real interest costs have been kept at very low levels,
– the customs duties have been raised significantly, and
– the price of dollar has been kept high through the excessive build-up of foreign exchange reserves over the years
All this is reflected in the high level of the BSE Sensex as well.
What are the concerns with the PLI Scheme?
As the corporate sector has already been provided with many benefits, so it’s not clear if the government should provide yet another financial incentive like the PLI.
Huge public spending: It is estimated that public spending on the scheme will be between Rs 1.93 trillion and Rs 3.47 trillion. Considering that, the govt is already fiscally constrained and is having to resort to a huge tax on oil, such a huge expense on PLI scheme is worrying.
Although the entire country can benefit in a general way, the main benefit is for the companies that receive the incentive; it is not for the Government of India (GoI), the taxpayers, and the public more generally.
What can be done to address the concerns?
The article lists two methods to ensure that the govt receives a return in exchange for the financial incentive that it is offering under the PLI Scheme.
Method I: The scheme can be modified to include a possible return for the government that is based on the performance of the company that receives the incentive.
The following indicators can be used to judge the performance of a company:
– One indicator can be that the time path of inflation-adjusted pay-outs (dividends plus share buybacks) by the company goes up above a pre-specified path.
– Another indicator can be that the real salaries and bonuses of the employees of the recipient company go above a given path.
– Yet another indicator can be that the real market value of the recipient company in the equity market, averaged over, say, three years, goes up above a predetermined path.
Method II: The government could be just given some shares of the recipient company “for free” at the time of providing the financial incentive.
How does the two methods differ?
In the second method, all, and not some, of the recipient companies will need to provide a return to the government, regardless of how successful they are. Furthermore, the recipient companies need to provide a return to the government in all, and not some, of the years in which they have a pay-out for the shareholders, regardless of whether the pay-out is big or small.
All this is not the case under the method I.
What is the way forward?
It is not clear if the Govt should run the very costly PLI scheme. But if a financial incentive is provided now, then there should be some possible return in future for the government.
Cryptos and a CBDC are not the same thing
Source: This post is based on the article “Cryptos and a CBDC are not the same thing” published in The Hindu on 19th Apr 22.
Syllabus: GS3 – Indian Economy – Money and Banking, Information Tech
Relevance: Regarding Central Bank Digital Currency (CBDC) and Cryptocurrencies
Context: Despite arguing against legitimising cryptos and calling them as Ponzi schemes, the RBI has announced that it will float a Central Bank Digital Currency (CBDC).
RBI is clearly worried over the increasing popularity of Cryptos among Indian masses.
But, a CBDC will not solve the RBI’s concerns regarding Crypto since it can function as a fiat currency and not a crypto. However, cryptos can function as money. This difference needs to be understood.
What are the RBI’s worries with the proliferation of Cryptocurrencies?
Cryptos threaten the RBI’s place in the economy’s financial system.
This threat emerges from the decentralised character of cryptos based on blockchain technology which central banks cannot regulate and which enables enterprising private entities to float cryptos which can function as assets and money.
What is curreny and what enables Cryptos to act as money?
A currency is a token used in market transactions.
– Historically, commodities (such as copper coins) have been used as tokens since they themselves are valuable.
– But paper currency is useless till the government declares it to be a fiat currency. It is only then that everyone accepts it at the value printed on it. So, paper currency derives its value from state backing.
Cryptos are just a string of numbers in a computer programme and have no inherent value. Furthermore, there is no state backing.
Their acceptability to the well-off enables them to act as money. Paintings with little use value have high valuations because the rich agree to it. It is similar for cryptos.
Moreover, a limited supply of the most popular Cryptocurrency i.e. Bitcoin has caused its price to rise over the years, giving massive returns to those who bought in early. This has fuelled the speculation around Cryptos, thereby lending them value too.
RBI has likened the popularity of Cryptos to the Tulip mania. |
Why a CBDC cannot act like a Cryptocurrency?
Centralised control of a CBDC: Blockchain enables decentralisation. That is, everyone on the crypto platform has a say. But, central banks would not want that.
Further, they would want a fiat currency to be exclusively issued and controlled by them. But, theoretically, everyone can ‘mine’ and create crypto. So, for the CBDC to be in central control, solving the ‘double spending’ problem and being a crypto (not just a digital version of currency) seems impossible.
The double spending problem is a phenomenon in which a single unit of currency is spent simultaneously more than once. Blockchain and encryption have solved this problem by devising protocols such as ‘proof of work’ and ‘proof of stake’. |
A centralised CBDC will require the RBI to validate each transaction — something it does not do presently. Once a currency note is issued, the RBI does not keep track of its use in transactions. Keeping track will be horrendously complex which could make a crypto such as the CBDC unusable unless new secure protocols are designed.
What is the way forward?
Due to the reasons listed above, CBDCs at present cannot be a substitute for cryptos that will soon begin to be used as money. This will impact the functioning of central banks and commercial banks.
Further, a ban on cryptos requires global coordination, which seems unlikely. Ms. Georgieva has said, “The history of money is entering a new chapter”.
The RBI needs to heed this caution and not be defensive.
The right price: on TRAI’s latest recommendations
Source: This post is based on the article “The right price: on TRAI’s latest recommendations” published in The Hindu on 19th Apr 22.
Syllabus: GS3 – Changes in industrial policy
Relevance: TRAI’s latest recommendations on auction of airwaves
News: The Telecom Regulatory Authority of India’s latest recommendations on the auction of airwaves identified for 5G services, particularly the pricing of spectrum, have triggered disappointment within the industry.
What are the concerns expressed by the telcos?
Telecom services providers contend that the recommendations run counter to the spirit behind the relief-cum-reforms package unveiled by the Government in September 2021.
TRAI has proposed cuts of about 35-40% on the reserve prices at which the relevant frequency bands of spectrums could be auctioned. However, it has proposed charging 1.5 times the reduced reserve price for a 30-year tenure on spectrum thereby virtually negating the proposed cut. It further undermines the Government’s aim of making spectrum affordable enough to encourage greater participation in the auctions.
What are the major challenges faced by telcos in India?
India’s telcos point to two major problems:
– High cost of spectrum relative to the global average, and
– India having one of the lowest realisations in terms of average revenue per user
Telcos state that their ability to invest in the infrastructure required to cover the length and breadth of the country and simultaneously ensure optimum reach and availability of signals in dense urban areas is constrained by these issues.
What is TRAI’s rationale for the recommendations?
TRAI’s recommendations cite a November letter from the DoT which had underscored the fact that only 37% of the spectrum on offer at the last auction had been sold.
TRAI’s reasoning for the reserve prices, seems oblivious to the challenges the industry is currently facing as well as the significant capital investments needed to modernise the country’s telecom networks.
How have other countries approached the spectrum allotment for 5G?
Japan and South Korea avoided auctions and instead adopted the discretionary approach to spectrum allotment.
– It should be noted that this approach was abandoned by India after the Supreme Court in 2012 struck down the grant of 2G licences and mandated auctions as the best method to prevent wrongdoing in the exercise of discretionary powers.
What is the way forward?
Govt needs to balance its requirement of netting optimum revenue from the auction of spectrum while ensuring that India does not end up lagging behind in the rollout of 5G telecom services.
Hence, policymakers need to insist TRAI revisit its recommendations.
The economy can ill afford any further disruptions in the linchpin sector.
Upholding the right to repair
Source: The post is based on an article “Upholding the right to repair” published in the Indian Express on 19th April 2022.
Syllabus: GS3 – Indian Economy
Relevance: Consumer Welfare, Fair Competition
News: Recently, the US Federal Trade Commission directed manufacturers to remedy unfair anti-competitive practice. The manufacturers have to ensure that consumers can make repairs, either themselves or by a third-party agency.
As a result, Apple announced that consumers will have the right to purchase spare components of their products. However, this momentum is not so strong in India.
What is the rationale behind the “right to repair”?
The individual who purchases a product must own it completely. They must be able to repair and modify the product the way they want to.
The absence of repair manuals means that manufacturers hold near-monopoly over repair workshops.
What are the challenges in repairing electronic goods?
The companies avoid the publication of repair manuals that can help users make repairs easily.
The repair is becoming unreasonably expensive. For example, the workshops charge consumers exorbitant prices. Further, repairing is also becoming impossible because technologies are becoming obsolete.
The manufacturers have proprietary control over spare parts. In fact, most firms refuse to make their products compatible with those of other firms.
The companies plan obsolescence of the product.
Moreover, the products break down too soon. It’s often cheaper and easier to buy replacements rather than repair them.
Tech giants contended that if their patented technology-based products are opened up by third parties, it can lead to emergence of security and privacy concerns.
Big companies practically forbid other enterprises to repair their products. For instance, warranty cards mention that warranty lapses if a product is repaired from a “non-recognised” outfit.
What is the status of repair laws in India?
In accordance with the Consumer Protection Act, 2019, monopoly on repair processes infringes the customer’s “right to choose”.
The right to repair has been partially acknowledged in India in the Consumer disputes jurisprudence.
– For example, In Shamsher Kataria v Honda Siel Cars India Ltd (2017), the Competition Commission of India (CCI) ruled that it is anti-competitive if a company restricts the access of independent automobile repair units to spare parts.
What are the international practices related to the right to repair?
Many countries have enacted legislation that recognise the “right to repair” to reduce electronic waste.
Australia Consumer Law offers limited scope for exercising the right to repair. It gives the consumers a right to request that certain goods be repaired. Then manufacturers provide spare parts and repair facilities for a “reasonable” time. The repair facilities and spare parts are not available after the specified time. The manufacturer has no obligation to provide information or diagnostic tools to customers to repair independently.
The Massachusetts Motor Vehicle Owners’ Right to Repair Act, 2012 requires automobile manufacturers to provide spare parts and diagnostics to buyers and even independent third-party mechanics.
The UK also introduced the path-breaking “right to repair” in 2021. It makes it legally binding on manufacturers to provide spare parts.
Ways Forward
A well-drafted legislation is needed in India. It will uphold the right to repair, and may aid in striking a much-needed balance between intellectual property and competitive laws in the country.
Prelims Oriented Articles (Factly)
Ecowrap Report: States need to reset spending, cut freebies: SBI advisor’s report
What is the News?
State Bank of India’s(SBI) Economic Research Department has released the Ecowrap Report.
What are the key findings of the Ecowrap Report?
States opting for Freebies
Several states in the country are resorting to offering freebies like farm loan waivers and restoring the old pension system.
For instance, Telangana has committed 35% of revenue receipts to finance populist schemes while states like Rajasthan, Chhattisgarh, Andhra Pradesh and others have all committed to spend 5-19% of their revenue receipts on such schemes.
However, these populist schemes are economically unsustainable and a recipe for disaster given the financially bad shape of many states. These schemes also limit states flexibility to spend on development projects.
Moreover, with the GST compensation from the Center ending in June, the states need to re-prioritise expenditure in accordance with the revenue receipts.
Higher Fiscal Deficit of States
The fiscal situation of states has been impacted owing to the COVID-19 pandemic.
The report notes that for as many as 18 states, the average fiscal deficit (as % of GSDP) has been revised upwards by 50 bps to 4.0% for FY22, with 6 states reporting a fiscal deficit of more than 4% of GSDP.
For example, the fiscal deficit of Bihar (8.3% of GSDP) and Assam (4.5% of GSDP) exceeded their fiscal deficit significantly.
Dichotomy in Growth Numbers
States such as Andhra Pradesh, Assam, Gujarat, Haryana, Maharashtra, Rajasthan, Telangana and West Bengal have shown their real GSDP growth much higher than the overall GDP growth of the country.
However, the report pointed to a dichotomy in the numbers, wondering how the GSDP for 17 states is higher than the growth in the national GDP.
Source: This post is based on the article “States need to reset spending, cut freebies: SBI advisor’s report” published in Business Standard on 18th April 2022.
The UK Rwanda Asylum Plan
What is the News?
The United Kingdom has signed a deal with Rwanda to send illegal asylum seekers coming to the UK to Rwanda.
What is the UK-Rwanda Asylum Deal?
Aim: To deter illegal entry into the United Kingdom thereby breaking the business model of people-smuggling networks.
Under the deal, Rwanda will commit to taking in asylum seekers who arrive in the U.K on or after January 1, 2022, using illegally facilitated and unlawful cross border migration.
Rwanda will basically function as the holding centre where asylum applicants will wait while the Rwandan government makes decisions about their asylum and resettlement petitions in Rwanda.
The UK will bear all operational costs under the deal and provide a stipulated amount for each migrant.
Why was this deal needed?
According to the U.K. government, the deal was needed to combat people smugglers who often charge exorbitant prices from vulnerable migrants to put them on unseaworthy boats from France to England that often leading to mass drownings.
Will this Rwanda Deal solve the problem of illegal migration?
It remains unclear if the Rwanda Deal will solve the problem of unlawful crossings. But if we go by similar experiences from the past, such policies do not fully combat people smuggling. Instead, they create a parallel problem.
For example, Australia had inked a similar off-shore processing deal with Papua New Guinea that was challenged through a class-action lawsuit.
In 2017, the Papua New Guinea Supreme Court ruled that the processing centre was illegal and unconstitutional and ordered that Australia pay 70 million Australian dollars as compensation to the 2,000 people detained at this centre.
Source: This post is based on the article “The UK Rwanda Asylum Plan” published in The Hindu on 19th April 2022.
Nitrogen levels on a decline in ‘nitrogen-rich world’, plants and animals may face consequences: Study
What is the News?
According to a report, an imbalance in nitrogen availability has been reported across the globe with some places having an excess and others a shortage of the element.
What is Nitrogen?
Nitrogen is essential to life on Earth. It is a component of all proteins, and it can be found in all living systems.
According to a study, there is an imbalance in nitrogen availability across the globe with some places having an excess and others a shortage of the element.
The decline in Nitrogen Availability
Nitrogen availability has been shrinking in grasslands in central North America for a hundred years.
These declines are likely caused by multiple factors such as higher atmospheric carbon dioxide levels and warming and disturbances including wildfire.
Note: Higher atmospheric carbon dioxide fertilises plants, allowing its faster growth but in the process it dilutes the plant nitrogen, leading to a cascade of effects that lower the availability of nitrogen.
Impact: Without nitrogen, plants grow slowly and produce smaller flowers and fruits. Their leaves turn yellowish and are less nutritious to insects, birds and animals.
Further, low nitrogen availability could also limit plants’ ability to capture CO2 from the atmosphere.
Excess Human Production of Nitrogen
According to a 2017 study, human production of nitrogen is now five times higher than it was 60 years ago.
Impact: When excessive nitrogen accumulates in the streams, inland lakes and coastal bodies of water, it could sometimes result in eutrophication, leading to harmful algal blooms, dead zones and fish kills.
In humans, high levels of nitrogen in the groundwater are linked to intestinal cancers and miscarriages and can be fatal for infants.
Source: This post is based on the article “Nitrogen levels on a decline in ‘nitrogen-rich world’, plants and animals may face consequences: Study” published in Down To Earth on 18th April 2022.
India to try groundwater recharge method to solve water problem
What is the News?
The government is planning to implement the Pilot Artificial Groundwater Recharge Project in Tamil Nadu.
About Artificial Groundwater Recharge Project in Tamil Nadu
Launched by: Ministry of Jal Shakti in collaboration with the Netherlands.
Location: The project is being implemented in the doab of Araniyar and Korattailaiyar River in Tamil Nadu.
Note: Doab refers to the alluvial land between two converging rivers.
Process: Under the project, the groundwater is being recharged using the treated water.
Significance: In India or in any other country, direct recharge using treated water has not been taken up considering that groundwater is used for all purposes including drinking.
Hence, if this pilot project proves to be successful, the method is likely to be replicated in other parts of the country as well.
What is the water situation in India?
According to a 2018 estimate by Niti Aayog, 600 million people in India face high to extreme water stress and about 200,000 people die every year owing to inadequate access to safe water.
This water crisis is going to get worse as Niti Aayog has projected that by 2030, India’s water demand will be twice the available supply.
Click Here to read Composite Water Management Index by Niti Aayog
Source: This post is based on the article “India to try groundwater recharge method to solve water problem” published in Livemint on 19th April 2022.
National Security Council Secretariat organizes National Cyber Security Incident Response Exercise(NCX India) to strengthen India’s Cyber posture
What is the News?
The National Security Advisor has inaugurated the National Cyber Security Incident Response Exercise(NCX India).
What is the National Cyber Security Incident Response Exercise(NCX India)?
Conducted by: National Security Council Secretariat(NSCS) in association with Data Security Council of India (DSCI) as the knowledge partner and supported by the Defence Research and Development Organization(DRDO).
Purpose: It aims to train senior management and technical personnel of Government/Critical Sector organizations and agencies on contemporary cyber threats and handling cyber incidents and response.
Areas: The participants will be trained on various key cyber security areas such as Intrusion Detection Techniques, Malware Information Sharing platforms (MISP), Vulnerability Handling & Penetration Testing, Network Protocols & Data Flows among others.
Significance: The exercise will help strategic leaders to better understand cyber threats, assess readiness and develop skills for cyber crisis management and cooperation.
What is the National Security Council(NSC)?
NSC is an executive government agency tasked with advising the Prime Minister’s Office on matters of national security and strategic interest.
Established in: It was established by the former Prime Minister of India Atal Bihari Vajpayee in 1998.
Structure: NSC is a three-tier structure body. The three tiers are the Strategic Policy Group, the National Security Advisory Board and a secretariat from the Joint Intelligence Committee.
Source: This post is based on the article “National Security Council Secretariat organizes National Cyber Security Incident Response Exercise(NCX India) to strengthen India’s Cyber posture” published in PIB on 18th April 2022.
Code for medical devices welcomed
What is the News?
The Department of Pharmaceuticals(DoP) has published a draft Uniform Code for Medical Device Marketing Practices(UCMDMP).
What is the purpose of the Draft Uniform Code for Medical Device Marketing Practices (UCMDMP)?
The code is intended to be a voluntary code with the aim to regulate fair marketing practices in the Medical Device industry.
Need: This code was needed as the Medical devices industry is characteristically different from pharmaceuticals.
Therefore a separate code for medical devices was much needed to accurately capture the ethical marketing practice requirements for the medical device sector.
What are the key provisions of the code?
Allows for more collaboration with medical professionals
The code permits medical devices companies to collaborate with medical professionals for activities such as consulting services, clinical studies and research, participation in company-conducted training and continued medical education sessions.
Bars Gifts to Medical Professionals
With an aim to ensure that medical professionals are not being bribed by the medical devices industry to promote their products, the code has clarified that no gifts, advantages or benefits would be provided to doctors or their families.
These gifts of entertainment and recreational activities include theatre, live comedy or musicals, sporting events, golf, skiing, cruises, spas, or vacation trips.
However, companies will be allowed to occasionally provide modest, appropriate educational items to doctors that benefit patients.
Source: This post is based on the article “Code for medical devices welcomed” published in The Hindu on 18th April 2022.
Extinction threat: Vaquita porpoise global population down to only 10
What is the News?
According to the United States Commission for Environmental Cooperation(CEC), Vaquita Porpoise is nearing extinction and immediate measures are needed to save the remaining population.
Note: Porpoises are among the smallest members of the cetacean family (whales, porpoises and dolphins). They are only distant relatives of dolphins (they last had a common ancestor roughly 15 million years ago).
What is Vaquita Porpoise?
Vanquita Porpoise is the world’s smallest cetacean.Its name means “little cow” in Spanish.
Conservation status:
- IUCN Red List: Critically Endangered
- CITES: Appendix I
Habitat: Found only in the northern Gulf of California (Sea of Cortez) in Mexico. Most commonly seen in shallow waters up to 50 meters deep.
Features
Vaquita Porpoise has a dark ring around the eyes is its most striking feature, along with a proportionally large dorsal fin.
It is unique among the porpoises as it is the only species of that family found in warm waters.
Like many other species of porpoise, vaquita tend to be shy and elusive, avoiding boats when approached.
Threats: The vaquita population has been in sharp decline for decades, recently accelerated by illegal fishing with gill nets for the vulnerable totoaba, a large fish sought after for its swim bladder.
Source: This post is based on the article “Extinction threat: Vaquita porpoise global population down to only 10” published in Down To Earth on 15th April 2022.
Explained: What does designation as a ‘state sponsor of terrorism’ by the US mean?
What is the News?
Ukraine’s President has asked the US President to designate Russia as a “State Sponsor of Terrorism”.
What does “State Sponsors of Terrorism” means?
“State Sponsors of Terrorism” is a designation given by the United States Secretary of State (the minister primarily in charge of foreign relations) to countries that have repeatedly provided support for acts of international terrorism.
The US can place four categories of sanctions on countries that are on this list: 1) restrictions on US foreign assistance, 2) ban on defence exports and sales, 3) certain controls over exports of dual-use items and 4) miscellaneous financial and other restrictions.
Sanctions can also be placed on countries and persons that engage in certain trade with designated countries.
Which countries are currently on the terrorist designation list?
As of now, there are four countries on the list of state sponsors of terrorism. They are Syria, Iran, North Korea and Cuba.
Can countries be taken off the list?
Countries can be put and taken off the list from time to time. A country can be de-listed if it is deemed by the US to have reformed its behaviour and returned to complying with the requirements of international law and conduct or if it has undergone a change of leadership.
Source: This post is based on the article “Explained: What does designation as a ‘state sponsor of terrorism’ by the US means” published in Indian Express on 16th April 2022.
AAI airports provide platform to local artisans for promotion through AVSAR Scheme
What is the News?
Airports Authority of India(AAI) has launched an initiative named “‘Airport as Venue for Skilled Artisans of the Region(AVSAR)”.
What is AVSAR Initiative?
Launched by: Airports Authority of India(AAI)
Aim: To encourage the talent of craftsmen, women, and artisans and provide them with proper opportunities.
Under the initiative, space will be allocated to Self Help Groups(SHGs) at the airports for the purpose of showcasing or selling the self-made products of their specific region.
At each AAI-operated airport, an area of 100-200 square feet has been earmarked for the SHGs.
On a turn-on-turn basis, this area will be provided to the SHGs for a duration of 15 days.
Significance: The initiative will strengthen the SHGs by providing them with visibility and will prepare them to market and promote their products to a larger population from the country as well outside the country.
Source: This post is based on the article “AAI airports provide platform to local artisans for promotion through AVSAR Scheme” published in The Print on 8th April 2022.
Must Read News Daily Current Affairs Articles 21st December 2024
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The Rise and Challenges of Artificial Intelligence
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Supreme Court Rules Coconut Oil as Edible Oil
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5 ways in which India-Russia relations will shape in 2025
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IRIS2 Space Programme
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Crime and Criminal Tracking Network and Systems
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Joint Parliamentary Committee
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Female Labour Force Participation Rate- Explained Pointwise + Infographic
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Yuga Yugeen Bharat National Museum
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