9 PM Daily Current Affairs Brief – April 5th, 2023
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Mains Oriented Articles
GS PAPER - 1
Make In India. Indians Need It
Contents
Source: The post is based on the article “Make In India. Indians Need It” published in The Times of India on 5th April 2023.
Syllabus: GS 1 – Demographic Dividend
Relevance: measures needed to utilize India’s demographic dividend
News: The UN has projected that India would overtake China as the most populous country during April. This has led to debate over the benefits of high demographic dividend.
How can India utilize its demographic dividend?
India’s fertility rate has declined to replacement level last year. It has a median age of 28 years, significantly lower than 38 in the United States and 39 in China.
Hence, India can have the largest workforce in the world for at least the next 25 years. However, India can only materialize if it is able to generate jobs for the millions of youths.
According to the McKinsey Global Institute 2020 report, India needs to create at least 90 million new non-farm jobs to accommodate fresh entrants into the labor force by 2030.
Must Read: Reaping India’s demographic dividend
What is the present situation of unemployment in India?
According to the Centre for Monitoring the Indian Economy, the unemployment rate in March was 7.8%.
This is an underestimate because of the huge ‘disguised unemployment’. People who are involved in agriculture and other informal sectors on low wages are also counted as fully employed.
Further, the female labour force participation rate in India is not only low compared to other South Asian economies but is declining.
Moreover, it has become common in India for post graduates to apply for low-level government jobs. This highlights the quality of education and the problem of employment in India.
How can jobs be created and what are the challenges?
There is a misconception that the software industry as a service provider has been a big job creator. In reality, the large majority of jobs created in the services sector have been the low wage, low productivity type in the informal sector.
Further, there are views that India should focus on the services sector because the demand for services will grow as aging populations in rich countries will consume more services than goods.
However, along with skilling its labour force, India needs to focus on the growth of its manufacturing industry. It has the potential to meet the job challenge and create millions of jobs for youths.
In this regard, the government’s ‘Make in India’ campaign is the hope and expectation that India can replicate the China model of export to the rich world.
However, the development of robotics and machine learning are taking away jobs in the manufacturing sector and India is also looking for friend-shoring and reshoring of production.
Must Read: At the centre of job creation
What lies ahead?
India imports goods worth over $100 billion annually from China. If even half of this can be made at home by productivity improvement, it will mean millions of jobs.
Therefore, India should look forward to expand its manufacturing sector to reap the benefits of demographic dividend.
GS PAPER - 2
Equality and justice, for and beyond queer and trans community
Source- The post is based on the article “Equality and justice, for and beyond queer and trans community” published in “The Indian Express” on 5th April 2023.
Syllabus: GS2- Vulnerable sections of the populations
Relevance– Issues related to discriminated sections of the society
News– The article deals with issues of equality and justice for discriminated communities.
What is progress achieved in India on rights of vulnerable communities?
In Naz Foundation v Govt of NCT (2009), the Delhi HC decriminalized homosexual sex between adults. The Supreme Court struck down Section 377 in 2018.
Today, the government is proactive in HIV/AIDS sensitization. The National AIDS Program has been a crucial step forward. It allows innumerable citizens to have access to free information, medicines, and healthcare.
What is needed for true equality and justice of vulnerable communities?
First, people-first policies are required. People are not at the center of government interventions. Implementation of policies and laws continues to be a challenge. Tackling this requires a change in strategy. There is a need for reimagining policy, law, and interventions.
There is a need to focus on values of empathy, love and respect. Children should be taught these values. These should be prompted as core values in our society.
Invented names: On India’s response to China’s fresh attempt to lay claim over parts of Arunachal Pradesh
Source- The post is based on the article “Invented names: On India’s response to China’s fresh attempt to lay claim over parts of Arunachal Pradesh” published in the “The Hindu” on 5th April 2023.
Syllabus: GS2- Bilateral groupings and agreements
Relevance– India and China bilateral relationship
News– Recently, China has announced that it would rename 11 places in Arunachal Pradesh.
What are the factors behind this Chinese move?
It may be China’s reaction after the Indian Army failed a PLA attempt to take over a post at Yangtse in the Tawang sector in December 2022.
It may be in response to India’s decision to hold a G20 engagement group meeting on Innovation technology in Itanagar which the Chinese embassy had boycotted.
It reflects the low point in ties and the lack of meaningful dialogue for three years since the Chinese troops transgressed the LAC at Galwan in 2020. Political relations have not resumed despite many rounds of talks between two sides.
What is the way forward for India?
The government shows more clarity on the nature of its conversations thus far.
It should probe the reasons behind China’s moves and the motivation for its persistent aggressions. Otherwise, it will be hard to prepare for a future course of action.
GS PAPER - 3
Foreign Trade Policy 2023: Old policy for new world
Contents
Source: The post is based on the article “Foreign Trade Policy 2023: Old policy for new world” published in the Indian Express on 5th April 2023.
Syllabus: GS – 3: changes in industrial policy and their effects on industrial growth.
Relevance: About new Foreign Trade Policy 2023 (FTP 2023).
News: Recently, India’s commerce minister unveiled a new Foreign Trade Policy (FTP).
About the legal status of FTP in India
The FTP is notified by the Central Government, in the exercise of powers conferred under Section 5 of the Foreign Trade (Development & Regulation) Act, 1992.
The Act empower the Centre to “make provision for the development and regulation of foreign trade by facilitating imports and increasing exports” and to “make provision for prohibiting, restricting or otherwise regulating… import or export of goods or services or technology”.
What are the salient features of India’s FTP 2023?
Read here: Foreign Trade Policy 2023 announced |
How this FTP 2023 is different from previous ones?
Read here: Long on intent: On India’s Foreign Trade Policy |
What are the challenges associated with the FTP 2023?
Non-updation of Act reflect in FTP: The 1992 Act was set in the 20th-century mindset of regulating and restricting trade and accordingly included trade policy instruments. For example, the framework of trade policy in the 21st century has since moved towards the development and facilitation of trade, but there is no reflection of this in FTP 2023. Instead, the FTP 2023 is a compilation of “Foreign Trade Procedures” in which the words, regulate, prohibit, and restrict find more mentions than “facilitate”.
Not focusing on product and process standards: Most countries moved away from export incentives. Instead, they rely on improvements in product quality and production efficiencies coupled with rapid infusion of technology to expand their presence in global markets. This highlights that product and process standards are the new trade policy instruments. For example, the negotiating draft of the EU includes many of these regulatory standards. But the FTP 2023 still relies on export incentives.
The role of the Directorate General of Foreign Trade (DGFT): The DGFT’s primary role would have to be that of a facilitator while the regulatory functions should be reduced with effectiveness. But, FTP 2023 still make the DGFT to continue playing the role of imposing import “prohibitions” or “restrictions”.
Not addressing the weakness of the RoDTEP Scheme: The Rajya Sabha’s Standing Committee on Commerce examined the RoDTEP Scheme and found several weaknesses. The major one was about the rates of remission of duties which were lower than desirable. The FTP has failed to address these lacunae.
Not address the key issues with developing districts as export hubs: The FTP 2023 is missing a commitment to support the critical component of such a programme, namely, efficient infrastructure.
Inclusion of e-commerce might send wrong signals: India has opposed a) WTO discussions on e-commerce for extending the rules of the organisation and b) Data portability demands of advanced economies. But the inclusion of e-commerce in FTP might imply that India is ready to engage in the WTO.
Must read: India’s New Foreign Trade Policy (FTP) and its significance – Explained, pointwise |
In controlled digital lending, the issue of public interest in controlled digital lendivng, the issue of public interest
Contents
Source- The post is based on the article “In controlled digital lending, the issue of public interest” published in the “The Hindu” on 5th April 2023.
Syllabus: GS3- Science and Technology
Relevance– Issues related to intellectual property
News– There is ongoing legal tussle in the United States between four major publishers and the Internet Archive, which is a not-for-profit organization trying to build a globally accessible digital library.
What are the questions raised by the legal tussle?
It poses a fundamental question about the interface of copyright law and technological advancements.
The publishers have argued that the Internet Archives has violated the diverse rights provided under copyright law.
The Internet Archives has argued that books under copyright protection are lent only in a regulated manner, through Controlled Digital Lending. It is not a violation of United States copyright law.
What is the Controlled Digital Lending used by Internet Archives?
The Internet Archive CDL model follows the lending approach generally seen in physical libraries. If one copy is owned by the physical library, that copy can be loaned to one person at a time. So, the Internet Archives use one digital copy of each non circulating print book it has stored.
Internet Archives count only one additional copy per library for the purpose of digital lending. It is irrespective of the number of physical copies of that book owned by libraries participating in the IA’s digitisation.
How is CDL beneficial for larger public interest?
Lending physical copies of books from libraries has been on the decline. But the demand for reading books is not going down. Rather, people’s reading habits are changing. Today, many people prefer to read books on devices such as their smartphones and tablets.
The CDL is a positive response to this trend. It helps bridge the gap between urban and rural, and the privileged and unprivileged. It allows even people in the remotest villages to access books from libraries that are far away.
CDL initiatives ease access to many books that may have gone out of print or may not be available to access in many physical libraries.
CDL has enormous public benefits for education, research, and cultural participation.
What is the scenario of CDL in India?
India is yet to have a major CDL initiative. Some universities such as the NLSIU have initiated major digitisation projects that can facilitate CDL in future.
The outcome in the IA litigation will have considerable impacts on such initiatives in India.
What is the ultimate conclusion?
The copyright system is not just about protecting the interests of copyright holders. It is equally about protecting the rights of the users of copyrighted works, and the broader public interest.
Our K-shaped recovery is a story that adds up
Source: The post is based on the article “Our K-shaped recovery is a story that adds up” published in Live Mint on 5th April 2023.
Syllabus: GS 3 – Inclusive Growth
Relevance: about declining tax-payers
News: The article discusses the various reasons behind declining tax-payers in India.
What are the different reasons about the decline in tax-payers in India?
The Periodic Labour Force Survey (PLFS) data shows that all-India poverty went up during the lockdown quarter (till June 2020), but declined thereafter for four quarters.
The poverty declined due to state aid such as free food and remote employment.
However, an accurate picture of poverty caused by the pandemic is still cannot be determined by the data and statistics.
What are the findings associated with income tax data?
Income-tax data has been recently placed in the Parliament. There are debates over the shrunken population of the income tax payer under the ₹5 lakh category.
This group’s size peaked at 50 million in 2018-19, shrank to 46.3 million in 2019-20 and then again to 41.2 million in covid-stricken 2020-21.
The arguments like the net tax benefits and upward movement of the people from lower slab to the next are given to justify that reduction is not due to poverty increase.
However, reasons such as pre-pandemic distress, covid and a smaller tax base are the main reasons behind the decline in the taxpayers.
Moreover, if there has been decline due to upward shifts and tax benefits, the shortfall still suggests a base-level income crunch, as consistent with surveys like ICE360.
Further, it is argued that India’s income Gini coefficient dropped as a result of fiscal transfers. However, the Gini coefficient compares a huge population, so it does not become clear to know the beneficiary of the tax benefits.
It is also argued that India had a K-shaped recovery after the pandemic.
However, its K-shaped recovery is more about divergent wealth rather than income. For instance, asset prices soared and stocks portfolios made gains over the pandemic.
Due to which, Oxfam and other reports provided that India’s wealth gap is widening after the pandemic.
Must Read: The case for an inequality boom in India is greatly exaggerated
A new economics for a new world
Contents
Source- The post is based on the article “A new economics for a new world” published in the “The Hindu” on 5th April 2023.
Syllabus: GS3- Economy
Relevance– Issues related to economic policy and models for growth
News– The article explains the issues related to the current economic theories and practices.
What are the economic challenges faced by the Indian economy?
First is management of inflation, interest rates, and exchange rates. The Reserve Bank of India is expected to find a solution.
Second is negotiating bilateral and multilateral trade agreements that protect the interests of India’s farmers and workers. For which coordination is required amongst the Ministries of Commerce, Industry, and Agriculture.
Third problem is secure employment with adequate incomes. It involves all Ministries and all State governments.
What are the lessons for India from the Chinese growth story?
Economists agree that more investments will boost growth. Therefore, there are lessons in China’s history.
China and India opened their economies to global trade around the same time. Both countries had similar levels of industrial technologies.
Since then, China has attracted many times more foreign investment than in India, and the incomes of its citizens have increased five times faster.
Wages in China have become much higher. So, India seems well placed to attract global investors. But Vietnam is proving to be more attractive than India to western and Japanese investors.
Western neoliberal economists have attributed China’s remarkable economic growth to its free trade policies.
However, after Vietnam’s success, they rediscovered lessons from China. When both countries opened to foreign investors, they already had high levels of human development. Both had universal education and good public health systems.
Basic human development must precede growth. Moreover, incomes must be increased simultaneously to enable more consumption and attract more investments.
What are issues with the current paradigm of economics?
The current paradigm of economics cannot provide solutions. It is too linear, too mathematical, too mechanical. Economists have also separated themselves from other disciplines. They are working in silos.
They should break out of it and examine the complex systems. It will help policymakers to comprehend complex socioeconomic systems in which many forces interact with each other.
As per current paradigm, the number of policy instruments must equal the number of policy goals. So, there is a need for independent monetary institutions for managing inflation, separate trade and industry specialists, and separate policies for environment management and agriculture.
What are the steps needed to remove the inadequacy of the current economic system?
Economists search for global solutions. Trade and monetary policies that fit the United States, China, Vietnam, or India will not work for others. Their needs have emerged from their own histories.
Economists arrive at solutions by comparing data trends of different countries. In their models, people are numbers. Economists do not listen to real people.
Global solutions and economic theories invented in the West have caused problems. New solutions are essential. The inadequacy of the current paradigm was revealed by the 2008 global financial crisis; COVID19 pandemic; and the global climate crisis.
A new economics is required. There is a need to change the paradigm of economics to bring perspectives from other systems. India’s economists must step forward and lead the changes.
Issues with the drug regulatory system in India – Explained, pointwise
Contents
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Introduction
The Indian pharmaceutical industry gained global recognition during the pandemic for its role in exporting drugs, medical equipment, and vaccines to other nations. However, a series of incidents in the past six months have threatened to damage India’s reputation as a “pharmacy to the world.” These incidents include deaths in Gambia linked to cough syrups made by Indian companies and an eye infection outbreak in the US caused by an Indian-produced eye drop. These incidents have raised concerns about drug regulation in India, its safety and quality standards.
About the drug regulatory system in India
Drug regulation in India involves multiple government bodies and laws, both for domestic and exported drugs. Here are some key points:
Drug regulation of Domestic Drugs:
Central Drugs Standard Control Organization (CDSCO): The CDSCO is the primary regulatory body in India that regulates the manufacture, sale, and distribution of drugs in the country. It also conducts periodic inspections of drug manufacturing facilities to ensure compliance with Good Manufacturing Practices (GMP) and other regulations.
Drug Controller General of India (DCGI): The DCGI is responsible for approving new drugs for marketing in India, and for monitoring their safety and efficacy.
Drug Price Control Order (DPCO): The DPCO regulates the prices of certain essential drugs in India to ensure they remain affordable to the general public.
State-level drug regulatory bodies: At the state level, there exist State Drug Regulatory Authorities (SDRAs), which are statutory bodies created under the Drugs and Cosmetics Act, 1940. They fall under the ambit of the respective Health Departments of each state.
Drugs and Cosmetics Act, 1940 and its associated rules: Domestic drugs are regulated under this act.
Drug regulation of Exported Drugs:
CDSCO: It is responsible for regulating the export of drugs from India. It issues certificates of pharmaceutical products (CPP) to ensure that drugs exported from India meet the quality, safety, and efficacy standards of the importing country. The CDSCO also regulates the labelling, packaging, and transportation of drugs exported from India.
The Directorate General of Foreign Trade (DGFT): The Directorate General of Foreign Trade (DGFT) organisation is an attached office of the Ministry of Commerce and Industry and is headed by the Director General of Foreign Trade. The DGFT issues guidelines for the export of drugs, including the requirement of obtaining necessary licenses, permits, and certificates. Exporters must obtain an Import-Export Code (IEC) from the DGFT to export drugs.
Export Inspection Council (EIC): The role of the EIC is to ensure that products notified under the Export (Quality Control and Inspection) Act 1963 are meeting the requirements of the importing countries in respect of their quality and safety.
Drugs and Cosmetics Act, 1940 and the Foreign Trade (Development and Regulation) Act, 1992: Exported drugs are regulated under the provisions of these two acts.
The World Health Organization (WHO): It pre-qualifies certain drugs manufactured in India for use in its global health programs.
The United States Food and Drug Administration (US FDA) and the European Medicines Agency (EMA) also regulate drugs manufactured in India for export to their respective countries.
What are the recent irregularities in Indian drug industries?
The Indian drug industry has faced several irregularities in recent years, including:
Quality Control Issues: There have been several instances where Indian drug manufacturers have been found to be violating quality control regulations, leading to substandard or fake drugs in the market. For example, In January (2023), eye drops manufactured by a Chennai-based pharma company were found to be contaminated with a deadly drug-resistant bacterium.
Data Manipulation: In 2020, India’s drug regulator found that a Hyderabad-based pharmaceutical company had submitted manipulated data to get approval for a drug used to treat bacterial infections.
Non-Compliance with Regulations: Indian drug manufacturers have been accused of noncompliance with regulations and not following good manufacturing practices. For example, officials from the Haryana Food and Drug Administration inspected Maiden’s manufacturing plant at Sonipat following the WHO alert, they found several discrepancies in the records, due to which the quality of the raw material could not be ascertained.
Read more: U.S.-CDC probe into cough syrup deaths in The Gambia pins blame on Indian manufacturer |
Supply Chain Issues: There have been instances of counterfeit drugs and substandard raw materials entering the supply chain, leading to quality issues in the final products. For example, according to The US Trade Representative (USTR) report, nearly 20% of all pharmaceutical goods sold in the Indian market are counterfeit.
Price Fixing: In 2018, the Competition Commission of India (CCI) imposed penalties on three pharmaceutical companies for allegedly fixing the prices of a certain drug. These irregularities have raised concerns about the safety and efficacy of drugs manufactured in India and highlighted the need for better regulatory oversight and enforcement.
Read more: Uzbekistan says 18 children die due to cough syrup made by an Indian firm; blame it on ethylene glycol |
What are the challenges associated with drug regulation in India?
Drug regulation in India faces several challenges, including:
Lack of resources and infrastructure: India has a vast population, and the country’s drug regulatory system is often overburdened, with a shortage of staff, laboratories, and equipment. For example, India’s drug regulatory agency, CDSCO, faces resource constraints such as limited funding, inadequate staffing, and outdated infrastructure, which can make it difficult to effectively oversee drug safety and efficacy.
Corruption: Corruption is a significant issue in India’s drug regulatory system, with reports of officials accepting bribes to approve drugs. In 2013, the Ranbaxy scandal exposed how the company had falsified data and received approvals for drugs that did not meet quality standards.
Price Control: The Indian government regulates the prices of certain drugs to make them affordable for the general public, which can lead to conflicts with pharmaceutical companies. For example, in 2013, the Indian government allowed local companies to produce generic versions of a cancer drug that was under patent protection, leading to a legal dispute with the drug’s manufacturer.
Delayed approval process: The approval process for drugs in India can be lengthy and cumbersome, with approvals taking years to obtain. For example, the approval process for the vaccine for the COVID-19 pandemic in India took longer than in other countries, leading to delays in vaccination efforts.
Inadequate monitoring: The lack of a robust system for monitoring drug safety and efficacy is a significant challenge. This can lead to dangerous drugs being sold in the market, as was the case with the painkiller Nimesulide, which was banned in several countries but continued to be sold in India for years.
Poor pharmacovigilance: Pharmacovigilance is the process of monitoring the safety of medicines once they are on the market. In India, the pharmacovigilance system is still developing, and there is a lack of awareness among healthcare professionals and patients about reporting adverse drug reactions (ADRs). For example, there have been reports of adverse reactions to the COVID-19 vaccine in India, but these have not been adequately investigated.
Fragmented regulatory framework: India’s regulatory framework is fragmented between the central government and state governments, leading to varying levels of quality supervision and providing arbitrage opportunities. This has led to questions about the sampling methodology used in assessing drug quality.
Read more: INDIAN PHARMACEUTICAL SECTOR CHALLENGES AND REFORMS |
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Strengthening the regulatory framework: The government should strengthen the regulatory framework and enforce stricter laws to ensure that the drugs and medicines produced in India meet the required safety and quality standards.
Increasing inspections and audits: Regular inspections and audits should be conducted at all levels of the pharmaceutical industry to identify and address any potential issues related to the manufacturing process, quality control, and distribution.
Enhancing transparency and accountability: The government should promote transparency and accountability by making the regulatory process more accessible and understandable to the public and stakeholders. This can be done by improving the dissemination of information and conducting public consultations.
Providing training and capacity building: The government should invest in training and capacity building for regulatory agencies and industry professionals to ensure that they have the necessary skills and knowledge to maintain high standards of drug quality and safety.
Collaboration with International Bodies: India should collaborate with international bodies like the World Health Organization (WHO) to adopt best practices in drug regulation. This will help ensure that Indian pharmaceutical companies are following global safety and quality standards. The authorities should also work closely with international bodies to monitor the safety of drugs that are exported from India to other countries.
Development of a robust pharmacovigilance system: The government can invest in the development of a robust pharmacovigilance system to monitor adverse drug reactions and prevent any potential harm to patients.
Sources: The Times of India, Outlook, The Quint, The Diplomat, The Hindustan Times, Financial Express, Decan Herald and Economic Times.
Syllabus: GS 3: Economic development – Changes in industrial policy and their effects on industrial growth.
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