9 PM Daily Current Affairs Brief – May 18th, 2023

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GS PAPER - 1

The cultural markers of urbanisation

Source: The post is based on the article “The cultural markers of urbanisation” published in the Business Standard on 18th May 2023.

Syllabus: GS – 1: Urbanisation, their problems and their remedies.

Relevance: About the cultural markers of urbanisation.

News: The impact of urbanisation is not only limited to the demographic composition of an area but also has a much more lasting and profound impact on the cultural fabric of that area.

How do cultural markers of urbanisation create a lasting impact on society?

Sociologists used to think that urbanisation was nothing more than a simple population shift from rural to urban areas. But that is not the reality. Individuals from many ethnic backgrounds choose to migrate and dwell in cities, creating cultural concentrations

Over time, people can become “urbanised” and exposed to various cultures if they live in urban regions for a long time. They absorb these concepts and take them back to their smaller towns or villages, thereby influencing their immediate environments. For instance, large retail convenience stores in smaller towns are a clear marker of urbanisation.

These transformations are not as transitory. Instead, they are permanent. So, urbanisation, like globalisation, is aiding the transformation of the culture of a city.

Must read: A reminder of the flaws in India’s urbanisation policies

Why India needs to pay attention to the cultural markers of urbanisation?

Increasing urban population: For the first time ever, in 2008, more people lived in cities than rural areas. About two-thirds of the world’s population is predicted to reside in urban regions by 2050 and more than half of the world’s population already living there.

GDP powerhouse: Further, metropolitan areas are thought to account for 70% of the global GDP. Cities serve as centres for trade, culture, research, productivity, and growth of society, the human race, and the economy.  So, India needs to pay special attention to the cultural markers.

Cities might de-link from traditional culture: Urban development has historically centred on culture. Cities without culture are just concrete and steel structures that are prone to social decay and disintegration and do not exist as vibrant living areas.

Sustainable development issues: But, the government face challenges in cities’ sustainable development. The primary challenge includes maintaining the quality of urban life, safeguarding urban identities, valuing local cultures, and promoting cultural expressions, arts, and heritage as pillars of sustainable social and economic development.

Read more: The cow and the city: How Maldharis challenge Gujarat’s ideas of urbanisation

What should be done to ensure the sustainable development of cities?

A UNESCO report also highlights the interlinked role of culture in making cities more sustainable and invigorating their distinct identity. The report suggests that in order to ensure infrastructure and services are available to billions of people, decent housing must be provided, green public spaces must be created, and social unrest and epidemics must be prevented.

The current emphasis on urbanisation should include cultural elements in urban policies to ensure sustainability.

According to UN-Habitat’s “New Urban Agenda”, the focus is to make cities more sustainably developed, resilient and safe for human settlement and conducive to growth and prosperity. The New Urban Agenda must address these and other significant challenges.

GS PAPER - 2

Leaky Oil Borrell – on EU’s stand over Russian Oil imports in India

Source: This post is created based on the article “Leaky Oil Borrell” published in Times of India on 18th May 2023.

Syllabus Topic: GS Paper 2 – Effect of policies and politics of developed and developing countries on India’s interests

News: Josep Borrell, the EU foreign affairs representative, criticized India for supposedly violating sanctions on Russia. However, the EU’s executive vice-president called for a more diplomatic approach, suggesting the EU and India should talk about the issue as friends.

This criticism was based on the report by Finnish research agency, Crea. It reported that India was bypassing sanctions on Russia. This was due to the EU buying Indian diesel and petrol made from Russian oil.

What is the background of these allegation?

As part of their sanctions on Russia, G7 nations had set the oil price limit at $60 per barrel last year. India then started buying more Russian oil, such that by March 2023, Russian oil made up 35% of India’s oil imports, up from just 1% before February 2022.

The EU has profited from this as it is India’s third largest trading partner. Much of their trade includes oil products, with India now exporting nearly 3.8 million tonnes of oil products to the EU, the G7, and others.

India has been supplying a lot of oil products to Europe, and this supply has tripled since Russia invaded Ukraine.

Crea reported that the EU was simply buying the same oil products from India that they used to buy directly from Russia. Therefore, it proposed a “place of origin” certification for products sold to the EU.

What is India’s stand on this criticism?

The foreign minister argued that once Russian crude oil is substantially processed in another country, it’s no longer considered Russian.

India is within its rights to import crude oil and export the processed products, regardless of the oil’s original source.

Two judgments and the principle of accountability

Source: The post is based on the article “Two judgments and the principle of accountability” published in The Hindu on 18th May 2023.

Syllabus: GS – 2: issues and challenges pertaining to the federal structure.

Relevance: About SC judgments on Maharashtra and Delhi.

News: Recently, two Constitution Benches of the Supreme Court of India delivered important judgments. One is the Shiv Sena case and the other is regarding the administrative services in Delhi.

What are the SC judgments on these cases?

Must read: SC verdict on the Shiv Sena case: Key takeaways from Supreme Court’s Maharashtra verdict and SC verdict on control over services: What tilted scales in Delhi’s favour

How did the two judgments are in contradiction to the core principle of each other?

According to M.R. Madhavan, the Maharashtra judgment contradicts the core principle applied in the Delhi case. He explains this using a) triple chain of command, b) daily assessment by the legislature.

Triple chain of command:

SC’s Delhi judgment adheres to the principle of triple chain of command: The issue in the Delhi case the court held that the civil services in the Delhi government would be accountable to the Delhi cabinet and not to the Union government. This entails a triple chain of command: civil service officers are accountable to Ministers; Ministers are accountable to the legislature; and the legislature is accountable to the electorate. According to the court judgment, severance of any link of this triple chain would be antithetical to parliamentary democracy.

SC’s Maharashtra judgment is against the triple chain of command: In the Maharashtra case, the SC ruled that the Tenth Schedule makes a differentiation between the legislature party and the political party. It determined that the power to issue directions was with the political party, and not the legislature party.

Therefore, the person in charge of the political party (who may not be a member of the legislature) would control every vote of the MLAs/MPs of that party. This reinforces the idea that the MP/MLA is not accountable to the electorate but only to the party. In doing so, it breaks the triple chain of accountability.

Must read: Shiv Sena case and SC judgement – Explained, pointwise

Daily assessment by the legislature:

In the Delhi judgment, the Court states that the government is assessed daily in the legislature through debates on Bills, questions raised during Question Hour, resolutions, debates and no-confidence motions.

But, in the Maharashtra judgment, the court states that the legislators of the party with a majority in the House have to abide by the directions of the political party. The party leadership controls the vote of its legislators on each issue. This makes the very idea of a daily assessment by the legislature meaningless.

Must read: Supreme Court ruling on administrative services in Delhi – Explained, pointwise

How anti-defection law led to this contradiction?

According to the author, the problem lies in the anti-defection law. He says that the law contradicts the democratic principle of accountability of legislators to their voters. The anti-defection law is based on the assumption that any vote by an MP/MLA against the party direction is a betrayal of the electoral mandate. This, according to the author, is an incorrect interpretation of representative democracy.

The constitutional design of a parliamentary democracy envisages a chain of accountability. The accountability of the government to the legislature is on a daily basis, and legislators have to justify their actions to their voters in every election. But, the anti-defection law turn over this design by breaking both links of the chain.

What should be done to avoid this contradiction?

The court needs to relook at the 1992 Supreme Court judgment which upheld the anti-defection law.

About USCIRF report: Predictable counter – Introspection will do India good in areas where it faces international criticism

Source: The post is based on the article “Predictable counter – Introspection will do India good in areas where it faces international criticism” published in The Hindu on 18th May 2023.

Syllabus: GS 2 – Effect of policies and politics of developed and developing countries on India’s interests.

Relevance: About USCIRF’s International Religious Freedom Report.

News: For the fourth consecutive year, the government rejected the recommendations of the U.S. Commission on International Religious Freedom’s (USCIRF) latest report, calling it “biased and motivated”.

What is the USCIRF’s International Religious Freedom Report?

Read here: International Religious Freedom Report

About the latest USCIRF’s International Religious Freedom Report 2023 and issues with the report

Read here: USCIRF’s International Religious Freedom Report: Present imperfect – Irrespective of what the USCIRF says, India must review its rights record

The report release was followed by a briefing by a senior official. He said according to the U.S. Holocaust Museum, which tracks majoritarian trends, India is ranked eighth among 162 countries on the risk of “mass killing”, a serious allegation.

What India should do?

India might come up with its own report on the state of religious freedom in the country to counter it. Further, India should introspect into the areas where it faces international criticism.

The government must also devise more comprehensive methods for rejecting any unsubstantiated and unfounded challenges to India’s reputation.

India’s trade and economic ties with the EU are set to strengthen

Source: The post is based on the article “India’s trade and economic ties with the EU are set to strengthen” published in the Livemint on 18th May 2023.

Syllabus: GS – 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests..

Relevance: About India – EU trade and economic ties.

News: In 2022, India and the EU economies celebrated 60 years of their relationship with the relaunch of talks on a bilateral trade agreement. The latest Brussels visit of the Union Minister for Commerce and Industry has added momentum to the negotiations.

About India-EU Goods and services trade

India is one of the world’s fastest-growing economies, so it offers EU investors an attractive alternative market to China.

-The EU is India’s third largest trading partner, accounting for 10.8% of India’s total trade in goods. In the last decade, trade in goods between the two economies rise by about 30%. The EU is a key export market for India.

India is the EU’s 10th largest trading partner, accounting for 2.1% of the EU’s total trade in goods. But this is well behind China’s 16.2% and the US’s 14.7%.

-Trade in services between India and the EU was around €30.4 billion in 2020.

-India has a positive trade balance with EU in many categories like agri-food products.

-Foreign investment from the EU to India has increased over the years. Over 6,000 European companies are present in India, which has led to significant job creation in the country.

Read more: India EU – Free Trade Agreement Talks

What is the potential of India – EU trade and economic ties?

-The India-EU Trade and Technology Council (TTC) could serve as a platform to address some of the issues between India and the EU.

-Indian companies have vast potential to enhance exports and diversify the export basket. India could develop successful business partnerships, enhance exports and attract investment from the EU.

-India and the EU are participating in trade discussions in multiple forums, including the World Trade Organization (WTO) and G20. India – EU collaboration can make trade more inclusive and growth-oriented for developing countries, building resilient global value chains (GVCs), integrating micro, small and medium enterprises (MSMEs) in global supply chains by using digital platforms, logistics for trade, and WTO reforms.

-India and the EU have already agreed to work together on common priorities covering issues like its dispute resolution mechanism, subsidies on agriculture and fisheries, and an e-commerce moratorium. Both sides recognize the need to build on their common goals to pursue consensus-based solutions. This will support livelihoods and nutrition security for millions in India and other developing countries.

-There is scope for attracting investment in the logistics sector with PM Gati Shakti and the National Logistics Policy of 2022.

What are the challenges in the India – EU trade and economic ties?

EU has raised high-tariff-related concerns in sectors like dairy, alcoholic beverages and automobiles and auto components from India. On the other hand, the EU’s carbon tax is a cause of worry for India.

India and the EU have several other issues, like the content of an investment agreement, intellectual property rights and tackling climate change challenges.

Read more: India-EU free trade agreement: Why we need to change our approach to negotiations

What needs to be done to enhance India – EU trade and economic ties further?

India and the EU’s bilateral trade and investment flows can be enhanced through targeted interventions and collaborations. Such as, a) Creating joint-capacity building programmes for supporting MSMEs integration with GVCs, b) Support to startups in each other’s market, c) Conducting joint research, innovation and skilling programmes, d) Ensuring collaboration and joint projects on sustainable food systems, etc.

To address issues related to technical standards and the mobility of professionals, collaboration between regulatory bodies and mutual recognition agreements is essential.

India should explore the scope for collaborations to attract more tourists from the EU, enhance exports of organic products and traditional medicine such as organic food, Yoga and Ayurveda.

New pension reform must reduce burden on future generations

Source: This post is created based on the article “New pension reform must reduce burden on future generations” published in Indian Express on 18th May 2023.

Syllabus Topic: GS Paper 2 – Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes

Context: Recently, Government has constituted a committee to “improve” the NPS.

The issue of government employees’ pensions is a critical issue. Five states in India have already announced a shift from the New Pension Scheme (NPS) back to the old defined-benefit (DB) Pension Scheme (OPS). The Indian government is taking steps to improve NPS due to its growing importance.

Read about – Old Pension Scheme and New Pension Scheme

What are the challenges of New Pension Scheme (NPS)?

NPS funds are invested in market-linked securities. It has given an impressive annual return over 9% since its inception. However, there is a risk of lower future returns due to global trends of lower interest rates.

Therefore, NPS suffers from market risk and might end up with a reduced pension annuity.

What are the issues with Old Pension Scheme (OPS)?

First, it is neither funded nor fiscally sustainable.

Second, by the year 2100, the dependency ration of India will increase 5 times.  The World Health Organisation’s life expectancy simulations show that for people aged 60, life expectancy would increase from 18 to 27.9 years in this period. Therefore, pension support period will increase by 55 per cent just this century.

Third, the OPS employees currently get pension at 50 per cent of their last drawn salary. This pension further increases with a dearness allowance (DA) to account for inflation, twice every year. If 25 years post-retirement is counted, this pension increases exponentially with higher DA.

Fourth, in OPS, current workers finance those who are retired.

Fifth, with pension costs rising faster than revenue growth, this could potentially lead to decreased development expenditure and increased borrowing, leading to a debt trap.

Sixth, the base for determining the pension is the highest drawn salary instead of some average of earnings over the career followed globally.

What should be done?

A sustainable pension reform should retain contributions and the NPS fund management but avoid periodic increases in the annuity. The government could guarantee a certain percentage of the last drawn salary as a fixed annuity pension.

However, these guarantees should consider the declining trend in global interest rates and India’s economic development stage, both of which could reduce nominal returns on the pension corpus.

Additional benefits, like extending pension to the spouse and providing health and life insurance benefits, can be considered.

How India’s drug regulatory regime can ensure greater credibility for our pharma industry

Source: This post is created based on the article “How India’s drug regulatory regime can ensure greater credibility for our pharma industry” published in Indian Express on 18th May 2023.

Syllabus Topic: GS Paper 2 – Government policies and interventions for development in various sectors

Context: In the absence of effective regulations of pharmaceuticals industry, many casualties have taken place due to consumption of faulty medicines.

In January 2020, 12 children in Jammu died after consuming contaminated medicine manufactured by Digital Vision.

6 months later, a two-year-old from Himachal Pradesh died after consuming Cofset cough syrup, manufactured from the same company.

What are the issues associated with regulating pharmaceutical industry?

India has 36 drug regulatory bodies; however, an alarming number of drugs have recently failed to meet quality standards. For example, in February 2021, Global Pharma Healthcare had to recall a batch of eye drops exported to the US due to links with vision loss. Indian manufactured cough syrups caused many deaths in Gambia and Uzbekistan in 2022

Between November 2019 and November 2022, the US FDA raised 60 Official Action Indications (OAIs) against Indian pharmaceutical companies. It was found that procedures to prevent microbiological contamination of drugs were not established or followed. Also, environmental monitoring programmes do not include measures to control fungal contamination.

Some of these actions led to import alerts preventing them from supplying to the US market. These compliance failures can jeopardize India’s reputation as a reliable drug manufacturing nation.

3 per cent of all drugs in routine use — for hypertension, allergies and bacterial infections — were found to be substandard by regulatory inspectors.

What steps can be taken by government?

Despite the negative publicity, several countries still seek access to Indian generics. Therefore, the Indian pharmaceutical industry must take up the challenge and strive for zero defects in its products.

First, the Drugs and Cosmetics Act (1940) should be amended, and a centralised drug database should be created for effective surveillance of all pharmaceutical manufacturers.

Second, India’s 36 regional regulators should be merged into a single body.

Third, setting common standards across states could help reduce the risk of inconsistent regulatory enforcement.

Fourth, India has more than 10000 pharmaceutical manufacturing units. To cover all, additional budgetary support is needed to enhance inspection teams and enable more frequent quality-related inspections.

Fifth, increased transparency and credibility is required by public access to detailed notes of drug application reviews, past violations, inspection records, and failure history.

Sixth, there should be clear penalties for firms exporting spurious drugs, a public database of safety data, and a national law on drug recall.

Seventh, the Central Drugs Standard Control Organisation (CDSCO) needs to be reinforced with statutory backing and should be independent.

GS PAPER - 3

Towards a National Innovation System

Source: The post is based on the article Towards a National Innovation System” published in Business Standard on 18th May 2023.

Syllabus: GS 3 – Indian Economy – Growth & Development

News: Economists, focusing on the National Innovation System, believe that innovation largely happens at firms. Firm capacity is affected by both what they do themselves and the institutions around them.

What is the present situation of India in innovating its firm?

The top 2,500 firms investing in R&D worldwide account for around 90 percent of all industrial R&D. However, India has no firms in the top 2,500.

Even when Indian software companies are profitable, they invest just 1 percent of their average annual revenue in R&D, compared to a global average of 12 percent.

Therefore, India should increase its in-house R&D from 0.3 percent of GDP to match the world’s level of 1.5 percent. India also needs big R&D investors.

Where could big R&D investors in India come from?

India’s 10 most profitable non-financial firms are in software, oil refining, metals, and other industries.

They invested under $1 billion, or about 2 percent of profit, in R&D. However, companies in China invested around 29 percent of profit while companies in the US, Japan and Germany invested 37, 43 and 55 percent of profit in R&D.

Therefore, Indian industry should be present more in technology-intensive sectors to invest more in R&D. Within the industries that are already present in India, it is required that they invest closer to the world average.

These measures will then bring giant investors in R&D among the most profitable firms.

What can India learn from the world in firm innovation?

Japan, South Korea, Taiwan, Singapore, and China followed a particular sequence in building innovation capacity.

Firms in these countries first entered export markets as original equipment manufacturers (OEMs) supplying to foreign brands. This ensured world-scale capacity and brought competitiveness amongst the companies.

Later firms in these countries moved up the value chain to more technology-intensive sectors such as consumer durables, electronic assembly, etc. They also started to invest in in-house R&D in these sectors to sustain competitiveness.

These firms further moved to higher-technology sectors like semiconductors, pharmaceuticals, computers and went with increasing investments in in-house R&D.

All five East Asian governments funded R&D and followed the West in investing in public research in the higher education system to create researchers.

These researchers became the core of the in-house R&D departments of local firms.

In contrast, Indian Industry was forced to compete only after 1991 liberalisation, which was the first step of innovation in India.

The other steps in innovation have not yet happened in India as the Indian industry has been content with low R&D spending of 0.3 percent of GDP.

What can be the way ahead for India?

Pharmaceuticals and automobiles are the two technology-intensive sectors in which India has some presence in the global industrial R&D.

Pharmaceuticals dominate the R&D investments in India. It accounts for 34 percent of all Indian industrial R&D.

With this investment in R&D its sales account for 10 percent, which is lower than the world’s 16 percent. However, this ratio is decent relative to every other sector.

Therefore, India has an advantage in pharmaceuticals to build a world-class innovative industry.

12-Hour Workday Won’t Work

Source: The post is based on an article “12-Hour Workday Won’t Work” published in The Times of India on 18th May 2023.

Syllabus: GS 3 – Indian Economy, Changes to Industrial Policy

News: The governments of Tamil Nadu and Karnataka have recently allowed 12-hour workdays. The rationale behind this Arguments is that it will ensure higher domestic growth and foreign investment, thereby creating jobs.

However, developed economies have taken other measures to achieve these.

What steps have been taken by developed economies?

Developed economies have increased their GDP and attracted investments by growing the size of their manufacturing sector.

Manufacturing plays a key role in an economy’s growth and development because compared to other sectors it displays greater economies of scale and has a larger number of forward and backward linkages.

Further, unlike construction and the majority of services, manufacturing output is tradable. This means that firms cannot survive if they cannot compete in the global economy. This forces them to be more productive.

What is the current situation of India in manufacturing?

The share of India’s workforce in manufacturing has been around 12% since the early 1980s.  As of December 2022, total manufacturing employment in India stood at just 12.7% of the workforce.

The vast majority of workers, with low levels of education, who left agriculture have ended up either in construction or small-scale services, leading to low-productivity work.

Whereas the transition from farm to factory in Europe and East Asia increased the share of employment in manufacturing to 25-30%, reaching a peak.

What are the concerns present for India in the manufacturing sector?

India’s industrial policy has not been as effective as other countries like China. However, India has taken measures to improve its industrial policy for the manufacturing sector by introducing the PLI scheme.

Further, India is unable to attract foreign investments in the manufacturing industries as well as to promote domestic firms because of complex regulatory structure and inadequate infrastructure.

Since India suffers from these issues, it prefers focusing on labour law amendments.

Will amending labour law help India?

Without changing regulatory structure and infrastructure issues, labour law changes would not be of great help.

Moreover, Indian factories prefer employing contract laborers. This makes a vast majority of workers stay away from the labor laws benefits.

Therefore, a more transparent and uniformly enforced regulatory environment is needed to help employers and enable job creation to help workers.

Moreover, the biggest reason employers in India are much more powerful than workers is that workers far outnumber jobs. Therefore, the government must ensure the safeguarding of basic workers’ rights.

Further, regulatory changes must be accompanied by substantial investments in local and grassroots infrastructure. Else, labour law changes will not be beneficial and effective.

What can be the way ahead?

Balancing the wellbeing and safety of workers while allowing employers the flexibility to deal with fluctuations in market conditions is imperative for a well-functioning capitalist economy.

Hence, if India wants both economic growth and decent jobs then this balance must be maintained.

Why are financial regulators transitioning from LIBOR?

Source: This post is created based on the article “Why are financial regulators transitioning from LIBOR?” published in The Hindu on 18th May 2023.

Syllabus Topic: GS Paper 3 – Indian Economy – Financial Market

News: The Reserve Bank of India (RBI) said on May 12 that some banks haven’t completely stopped using the London Interbank Offered Rate (LIBOR).

In 2020, RBI had asked banks to analyse their LIBOR exposures and prepare for the adoption of alternative references rates like Secured Overnight Financing Rate (SOFR) and Modified Mumbai Interbank Forward Outright Rate (MMIFOR).

RBI has announced that Contracts entered after (or before, if possible) December 31, 2021, were not to use the LIBOR as reference rate.

What is LIBOR?

LIBOR is a global benchmark interest rate. It combines individual rates collected from banks at which they may borrow from each other (for a particular period of time) at the London interbank market.

LIBOR is used as a benchmark to settle trades in futures, options, swaps and other derivative financial instruments in over-the-counter markets.

How is LIBOR decided?

Banks on the LIBOR panel submit their suggested interest rate at 11 AM on every business day to news and financial data company, Thomson Reuters.

The company then averages the middle quartiles to derive the LIBOR. It excludes the Extreme quartiles, on the top and bottom.

What is the controversy in the methodology of LIBOR?

This mechanism is heavily dependent upon the banks in the panel to be honest in the interest rate suggestions.

The phenomenon of dishonest submissions was on display during the 2008 financial crisis when submissions were artificially lowered.

In 2012, Barclays admitted to the misconduct and agreed to pay $160 million in penalties to the U.S. Dept of Justice.

Another observation was the banks were changing the submission to acquire more profits.

What alternatives are available to LIBOR?

Therefore, an alternative was announced in 2017 by the U.S. Federal Reserve, which was Secured Overnight Financing Rate (SOFR).

India also announced the use of SOFR and the Modified Mumbai Interbank Forward Outright Rate (MMIFOR), instead of MIFOR, for all new transactions.

MIFOR

Indian banks use the Mumbai Interbank Forward Offer Rate as a standard for pricing forward-rate contracts and securities. MIFOR rate is tied to Dollar LIBOR.

SOFR comprises the weighted averages of the rates charged in these repo transactions. It is collateralised by U.S. Treasury securities. Therefore, it is a transaction-based rate and does not require any expert calculation. It also makes it less prone to manipulation.

Regulating AI – on EU’s draft Artificial Intelligence law

Source: This post is created based on the article “Regulating AI – on Artificial Intelligence” published in Indian Express on 18th May 2023.

Syllabus Topic: GS Paper 3 – Artificial Intelligence

News: The European Parliament’s committee has approved a draft artificial intelligence (AI) law.

What are the provisions of EU’s draft Artificial Intelligence law?

Scope of the act: The proposed Act aims to establish standards for AI deployment within the European Union (EU). This act applies to any entity serving EU residents, much like the EU’s General Data Protection Regulation (GDPR).

The Act prohibits several types of AI tools that infringe on privacy or enable discrimination.

Risk based Categorisation: AI will be categorized based on risk levels, from minimal to limited, high, and unacceptable. High-risk tools will be allowed under strict oversight, auditing, and transparency requirements.

Banned Systems: It will ban systems such as real-time remote biometric identification systems used in public spaces and post-real-time use of such systems. Certain exceptions are provided for law enforcement in serious crimes following judicial authorization.

Other prohibited systems include biometric categorization based on sensitive attributes, such as race, gender, or political orientation, and predictive policing systems.

The Act also prohibits the widespread scraping of biometric data from social media or CCTV footage to create databases. Also, “emotion recognition” systems used in several contexts to detect discomfort through facial expressions or body language.

High-risk AI will include systems that ae potentially harmful to health, safety, fundamental rights, or the environment. It will include AI used in political campaigns to influence voters and recommendation systems used by large social media platforms.

Generative models, like GPT, would need to comply with robust transparency requirements.

Exemptions: There are provisions for exemptions for research activities under open-source licenses, and the Act supports the establishment of regulatory sandboxes to test AI before deployment.

The Act further introduces legislation to facilitate citizens in filing complaints and requesting explanations for AI-based decisions affecting them.

[Kurukshetra May 2023 Summary] Potential of rural handicrafts and rural tourism – Explained, pointwise

For 7PM Editorial Archives click HERE

Introduction

India’s abundant rural crafts and traditions are passed down through generations. They present significant potential for the nation’s rural tourism sector. These crafts, the livelihood of numerous rural communities, offer unique attractions for tourists, contributing to the local economy, employment, and skill development. The government’s role in promoting these crafts, conservation efforts, ecotourism, and infrastructure development enhances this potential. Thus, rural tourism in India holds the promise of not only preserving the rich cultural and natural heritage but also boosting local incomes and job opportunities, making it a vital sector for India’s overall growth.  

What are the significances of rural handicrafts and rural tourism?

Cultural preservation: Rural tourism allows visitors to experience and appreciate the rich, diverse cultural heritage that rural areas offer. For example, Pochampally Village in Telangana is famous for its distinctive handloom industry and Ikat sarees. Thereby providing tourists with an authentic cultural experience.  

Economic development: Rural tourism can generate income and employment for local communities. For instance, the One District One Product (ODOP) program has helped artisans increase their income by promoting their unique crafts.  Rural tourism can provide incentives for homestays and eco-tourism, local communities can showcase their crafts directly to tourists, creating a unique cultural experience and generating income.

Sustainability: Rural tourism can support sustainable development by promoting eco-tourism and traditional, environmentally-friendly crafts. A good example is the ‘Linking Textile with Tourism’ initiative that promotes eco-friendly local crafts.  

Preventing Rural-Urban migration: By providing job opportunities and stimulating local economies, rural tourism can reduce the need for people to move to cities for work. This is clearly seen in craft villages that have become tourist hotspots, generating local employment.  

Promoting peaceful co-existence: By fostering understanding and appreciation between urban and rural communities, rural tourism promotes peaceful co-existence and social harmony. The ‘Ek Bharat Shrestha Bharat’ philosophy, emphasizing intercultural exchange, is a testament to this.  

Read more: Tourism Sector in India – Explained, pointwise

What are the Governmental initiatives for promoting rural handicrafts and rural tourism?

rural handicrafts and rural tourism
Source: Kurukshetra

 

One District One Product (ODOP): This initiative aims to promote traditional industries and handicrafts in each district of India, thereby creating employment opportunities and preserving traditional crafts.  

Linking textile with tourism: Under this initiative, eight craft villages have been identified nationwide to encourage tourism and crafts in a single location, further contributing to the local economy.  

Pochampally handloom park: Established in Telangana, the park is a tourist attraction that showcases the rich history and development of the Pochampally handloom industry.  

Ekta mall: Located in Gujarat, the Ekta Mall offers local artisans a platform to showcase and sell their crafts, promoting local culture, and boosting tourism.  

PM Vishwakarma Kaushal Samman: This webinar series highlights the importance of traditional Indian crafts and their potential in promoting tourism and generating employment in rural areas.  

Handloom Village at Moirang.

National Technical Textiles Mission.

Global recognition and trade fairs: The government participates in international trade fairs and exhibitions, providing financial assistance to artisans, and setting up export promotion councils to enhance handicraft exports. For example, as per the Annual Report 2020-21 released by the Ministry of Textiles, the exports of handicrafts from India have been growing steadily, with a rise from Rs. 19,171 crore in FY 2019-20 to Rs. 20,151 crore in FY 2020-21, despite the COVID-19 pandemic.  

Read more: 2021- A Year of Game Changing Reforms for Ministry of Textiles

How do rural handicrafts and rural tourism act as a solution to curb migration?

Creating employment opportunities: Rural handicraft industries provide jobs in rural areas, helping residents earn a livelihood locally instead of migrating to urban areas.  

Fostering entrepreneurship: Rural craft businesses offer opportunities for locals to become entrepreneurs and reach broader markets, reducing the need for migration.  

Attracting tourism: Local culture and arts, including rural crafts, attract tourists, creating more economic opportunities in rural areas and thereby reducing migration.  

Income diversification: Rural crafts provide an alternative source of income, helping rural residents become less reliant on traditional livelihoods such as agriculture, and reducing the need for migration for economic reasons.  

Read more: [Kurukshetra August Summary] Agribusiness and Rural Industries – Explained, pointwise

What is the role of G20 in promoting Indian rural handicrafts and rural tourism?

Improving international market access: By reducing trade barriers and simplifying customs procedures, the G20 can help Indian handicrafts reach international markets.  

Financial assistance: The G20 can provide financial aid in the form of loans, grants, or subsidies, assisting Indian artisans with capital to expand their businesses.  

Investment in skill development: The G20 can contribute to skill development programs for Indian artisans, improving the quality and range of their products.  

Strengthen intellectual property laws: In collaboration with the Indian government, the G20 can help strengthen intellectual property laws to protect the designs and techniques of Indian artisans.  

Global promotion: By leveraging its influence, the G20 can help promote Indian handicrafts globally, increasing their recognition and marketability.  

Read more: [Yojana December Summary] GI Tagging of Rural Products – Explained, pointwise

What can be done to promote rural handicrafts and rural tourism?

Enhance skill development and training: Providing adequate training and skill development programs can help artisans enhance their craftsmanship, learn new techniques, and adapt to modern market trends. These programs could be conducted by governmental agencies, NGOs, or craft councils, and should aim at bridging the gap between traditional skills and modern requirements.  

Improving market access and exposure: Efforts should be made to improve rural artisans’ access to national and international markets. This can be done by organizing local and national craft fairs, supporting online sales platforms, and promoting participation in international trade fairs and exhibitions.  

Creating financial support systems: Government and financial institutions should provide easy access to loans, grants, and other financial aids for rural artisans to invest in tools, materials, and marketing. This support would enable them to enhance production and reach a wider market.  

Strengthening infrastructure: Upgradation of infrastructure, like roads, electricity, and internet connectivity in rural areas, can aid in the growth of the rural craft sector. With better infrastructure, artisans can reach out to customers more efficiently, and tourists can access these rural areas with greater ease.  

Protecting intellectual property: Strengthening laws related to intellectual property rights can help protect the unique designs and techniques of rural artisans. This would prevent exploitation and encourage innovation in the craft sector.  

Leveraging technology: Integrating technology into the rural handicraft industry can make a significant difference. From e-commerce platforms to social media marketing, technology can provide artisans with new avenues to showcase and sell their products to a global audience.  

Incentivizing innovation: Innovation should be incentivized in the handicraft sector to make the products more appealing to a global audience. This could include product diversification, modern design integration, and the use of eco-friendly materials.  

Building global partnerships: Engaging in partnerships with international organizations and countries can help promote Indian rural crafts on a global platform, increase their market reach, and offer opportunities for collaboration and learning.  

Enhancing branding and promotion: Effective branding and promotional campaigns can play a vital role in showcasing the unique characteristics and cultural significance of rural handicrafts, making them more appealing to both domestic and international markets. 

Read more: [Kurukshetra June Summary] Rural Tourism: India an Incredible Tourism Destination – Explained, pointwise

Source: Kurukshetra

Syllabus: GS 3: Economic development: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

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