In an effort to promote anime and manga culture in India, the Ministry of Information & Broadcasting has launched the WAVES Anime & Manga Contest (WAM!).
About the WAVES Anime & Manga Contest
The WAM! is an innovative initiative launched by the Ministry of Information & Broadcasting in collaboration with the Media & Entertainment Association of India (MEAI).
The contest is part of Create in India Challenge and is aimed at nurturing local creative talent in anime and manga production.
It provides a unique platform for Indian creators to produce localized versions of Japanese art styles, targeting both domestic and global audiences.
The contest offers marketing support and opportunities for global recognition, helping creators showcase their talent in manga, webtoon, and anime.
WAM! features 3 key categories:
Manga (Japanese style comics): Individual participation for both students and professionals.
Webtoon (Vertical comics for digital mediums): Individual participation for students and professionals.
Anime (Japanese style animation): Team participation (up to 4 members) for students and professionals.
About the Create in India Challenge
The Create in India Challenge aligns with Prime Ministers vision of “Design in India, Design for the World”, emphasizing the development of creative industries in India.
It is part of the broader effort to make India a global hub for design, innovation, and creative production.
It is a precursor to the WAVES Summit, a large-scale event aimed at promoting creativity and technology in media and entertainment.
PYQ:
[2014] Though 100 percent FDI is already allowed in non-news media like a trade publication and general entertainment channel, the government is mulling over the proposal for increased FDI in news media for quite some time. What difference would an increase in FDI make? Critically evaluate the pros and cons.
Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
Objective
To strengthen India’s startup ecosystem by centralizing resources and facilitating collaboration
Target Audience
Startups, investors, mentors, service providers, and government bodies
Key Features
Networking and Collaboration: Connects startups, investors, and mentors, enabling interaction across sectors.
Centralized Access to Resources: Provides instant access to critical tools, knowledge, and resources for startups, enhancing decision-making and growth.
Personalized BHASKAR IDs: Each stakeholder (startup, investor, mentor) receives a unique ID for tailored interactions and services.
Enhanced Discoverability: Users can easily search and find relevant resources, collaborators, and opportunities using powerful search features.
Access to Funding Opportunities: Facilitates connections between startups and potential investors for funding.
Global Outreach: Supports cross-border collaborations and fosters India’s global presence in the innovation ecosystem.
Impact
Promotes innovation, entrepreneurship, and job creation
Enhances India’s status as a global leader in startups
Growth of the Startup Ecosystem
As of May 2023, India boasts over 99,000 officially recognized startups, making it the third-largest startup ecosystem globally. This growth reflects an increase from 84,012 startups in 2022 and a notable rise from just 452 in 2016.
The ecosystem has also produced 108 unicorns, startups valued at over $1 billion, collectively worth approximately $340.80 billion
PYQ:
[2015] “Success of ‘Make in India’ program depends on the success of ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments.
The Indian government’s Mines and Minerals Act of 2015, which mandated auctions and established the District Mineral Foundation (DMF), continues to ensure local communities benefit from natural resource-led development.
DMF after entering its 10th year has amassed almost ₹1 lakh crore, transforming mineral wealth into a development lifeline for these regions.
How did the District Mineral Foundation (DMF) work in India?
The DMF mandates mining licensees and leaseholders to contribute a portion of their royalty payments to the DMF. The ‘National DMF Portal’ has been introduced to enhance transparency and efficiency.
It aims to promote sustainable development and welfare for mining-affected communities.
A District Collector leads the DMF, ensuring that funds are allocated to areas with the greatest need.
Funds are used for decentralized, community-centric development projects in mining districts.
As of 2024, around 3 lakh projects have been sanctioned across 645 districts in 23 states. These initiatives focus on improving socio-economic and human development indicators.
About Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY):
Objective: Launched under the DMF, PMKKKY focuses on implementing developmental and welfare projects in mining-affected regions.
It aims to minimise the negative impacts of mining on local communities and ensure sustainable livelihoods.
Complementary Approach: PMKKKY works alongside existing state and central government schemes, reinforcing district development goals.
PMKKKY projects cover healthcare, education, skill development, sanitation, water supply, and sustainable livelihoods.
It has also empowered women through self-help groups and supported youth skill development initiatives like drone technology training.
Significance and Scope of DMF in India:
Community Welfare: DMFs provide direct financial resources for the welfare of communities affected by mining activities, transforming mineral wealth into tangible social benefits.
Inclusive Development: DMFs empower local communities, with focus on social inclusivity by involving elected representatives and non-elected gram sabha members in governance structures.
Cooperative Federalism: DMFs are a model of cooperative federalism, converging national, state, and local governance to address mining impacts and foster regional development.
Innovation and Planning: Various DMFs innovate to maximise project impact, adopting three-year plans for goal-oriented development, establishing dedicated engineering departments, and employing Public Works Department personnel for efficient project execution.
Sustainability: DMFs aim to align with the Sustainable Development Goals (SDGs), focusing on forest dwellers’ livelihoods, sports infrastructure, and health. They contribute to long-term environmental and socio-economic sustainability.
Way Forward:
Standardisation and Best Practices: Establish uniform guidelines to standardise successful practices across DMFs while retaining local knowledge, ensuring efficient implementation of long-term, goal-oriented projects.
Enhanced Integration with National Schemes: Strengthen the integration of DMF activities with ongoing central and state schemes, particularly in aspirational districts, to amplify the socio-economic and environmental benefits in mining-affected regions.
The Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) Scheme with an outlay of ₹10,900 crore over two years.
About PM E-DRIVE Scheme:
Details
Name
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme
Total Outlay
₹10,900 crore for two years
Goal
Promote electric mobility, reduce pollution, and enhance fuel security
Reduce range anxiety by providing charging infrastructure in cities and highways.
Incentives
Direct subsidies for e-2Ws, e-3Ws, e-buses, e-ambulances, and e-trucks
Key Components
₹3,679 crore for demand incentives for e-2Ws, e-3Ws, e-ambulances, and e-trucks.
₹500 crore for e-ambulances.
₹4,391 crore for e-buses.
Other components:
E-Vouchers
Aadhaar-authenticated e-voucher for EV buyers;
Signed by both buyer and dealer for claiming incentives.
E-Bus Procurement
₹4,391 crore for 14,028 e-buses in 9 major cities (Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, Hyderabad)
Charging Infrastructure
₹2,000 crore for 72,300 public EV charging stations, including fast chargers for e-4Ws, e-buses, e-2Ws, and e-3Ws
Incentivizing E-Trucks
₹500 crore tied to scrapping certificates from MoRTH-approved scrapping centres
Testing and Upgradation
₹780 crore for upgradation of MHI’s test agencies for green mobility technologies
PYQ:
[2019] How is efficient and affordable urban mass transport key to the rapid economic development in India?
Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India?(UPSC IAS/2019)
Q “Success of the ‘Make in India’ program depends on the success of the ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments. (UPSC IAS/2015)
Q “While we flaunt India’s demographic dividend, we ignore the dropping rates of employability.” What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain (UPSC IAS/2014)
Prelims: Priority Sector Lending by banks in India constitutes the lending to: (UPSC IAS/2013) (a) Agriculture (b) Micro and small enterprises (c) Weaker sections (d) All of the above
Mentor comment: Chinese smartphone companies dominate the Indian market, holding over 50% share by 2023. Now, the Indian government aims to balance local manufacturing and Chinese investments. However, there are challenges which include the lack of a robust supply chain and ancillary industries in India. To solve this issue at this point in the geopolitical situation, complete self-reliance on smartphones is difficult in the short term period for India. On the same note, today’s editorial discusses the complex relationship between India and Chinese companies, particularly in the context of the “Make in India” initiative.
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Let’s learn!
Why in the News?
The Indian government is considering allowing certain Chinese investments in high-tech electronics on a case-by-case basis, especially in areas like compressors, display panels, and semiconductors.
According to the International Data Corporation’s WorldwideQuarterly Mobile Phone Tracker, four of the top five best-selling smartphone brands were Chinese at the end of 2023.
The dilemma between ‘Make in India’ and China’s presence:
About ‘Make in India’ Initiative: ◉ The Make in India initiative was launched in 2014 to promote India as a global manufacturing destination. ◉ The initiative aims to increase India’s manufacturing sector’s contribution to GDP to 25% by 2025.
The ‘Make in India’ aimed to represent India’s strength in manufacturing and National pride, but the Chinese smartphone companies have emerged as significant beneficiaries of this initiative, becoming dominant players over the past decade.
The widespread use of Android smartphones in India, with a market share of about 70%, has favored Chinese brands, increasing their consumer base.
Chinese companies have navigated fluctuations in India-China relations, maintaining their market presence until the Galwan Valley incident in 2020.
Initiatives Taken for Indianization in the Economy:
By Private Players: As a contract manufacturer, Tata Electronics has emerged as a key player in the Indian smartphone manufacturing landscape by replacing Wistron (Taiwanese suppliers for Apple).
The company also aims to develop local capabilities and reduce dependency on imports by creating high-precision machinery for smartphone components.
Adaptation of Chinese Companies: Chinese smartphone companies are adapting by complying with Indian government regulations, introducing Indian distributors, and streamlining their operations.
They are teaming up with domestic manufacturers to benefit from the Production Linked Incentive (PLI) scheme and increasingly seeking equity partners to strengthen their presence in India.
Production Linked Incentive Scheme:
◉ It is a form of performance-linked incentive to give companies incentives on incremental sales from products manufactured in domestic units. It is aimed at boosting the manufacturing sector and to reduce imports. ◉ In 2021, the Government announced the PLI scheme for 13 key sectors:Auto components, Automobile, Aviation, Chemicals, Electronic systems, Food processing, Medical devices, Metals & mining, Pharmaceuticals, Renewable energy, Telecom, Textiles & apparel, and white goods. ◉ In Budget 2024-25, these incentives were extended to more sectors, such as the small and medium-sized enterprise (SME) sector to participate in the global market. A portion of incentives could be allocated for skill training and capacity building.
Challenges for complete Indianisation:
Need for Infrastructure Development: Manufacturing all smartphone components in India requires a robust supplier network, technological knowledge-sharing clusters, and improvements in power supply and workforce conditions.
Current Limitations: India currently lacks the necessary infrastructure at scale to support complete local manufacturing of smartphone components.
Technology Sharing Reluctance: Chinese companies are hesitant to share technology without clear equity arrangements, complicating the Indianisation efforts.
Way Forward:
Address Skill Gaps: Collaborate with educational institutions to ensure that the workforce is equipped with relevant skills in engineering, electronics, and automation.
Streamline Regulatory Processes: Provide clear regulatory guidelines to create a business-friendly environment that encourages investment.
Enhance Local Manufacturing Capabilities: Foster innovation and support startups in the electronics sector to create a diverse manufacturing ecosystem and reduce dependency on imports and enhance value addition in smartphone manufacturing.
Attract Foreign Investments: Continue offering incentives, subsidies, and tax breaks to attract foreign smartphone manufacturers to set up operations in India.
The Public Accounts Committee (PAC) has included a review of SEBI’s performance, amid political controversy surrounding chairperson Madhabi Puri Buch following Hindenburg Research’s allegations.
What are the allegations against SEBI?
Conflict of Interest: SEBI chairperson Madhabi Puri Buch faces conflict of interest allegations due to her past ICICI Bank role amid Adani investigations.
Toxic Work Environment: Reports have surfaced from approximately 500 SEBI employees claiming that the work culture at the regulatory body is “toxic and fearful.” This has led to demands for an impartial inquiry into the alleged workplace issues and the overall management of SEBI.
Response to Allegations: Buch and SEBI have denied wrongdoing, asserting that all necessary disclosures and recusal norms have been followed diligently.
Significance and Functions of the Public Accounts Committee (PAC)
The PAC was introduced in 1921 after its first mention in the Government of India Act, 1919 (Montford Reforms).
Oversight Role: The PAC serves as a parliamentary watchdog for government spending, ensuring accountability and transparency in the use of public funds. It plays a crucial role in auditing the revenue and expenditure of the government.
Review of Regulatory Bodies: The PAC has the authority to review the performance of regulatory bodies established by the Act of Parliament.
Suo-motu subjects: The PAC can select subjects for in-depth examination beyond the standard audit reports, allowing it to address pressing issues that may arise in the public interest, such as the allegations against SEBI’s chairperson.
Advisory Role: While the PAC can make recommendations based on its findings, it does not have the authority to enforce compliance. Its recommendations are advisory in nature.
How SEBI can improve its regulation considering recent challenges? (Way forward)
Enhanced Disclosure Regulations: SEBI has already made progress with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2023, but further refinement is needed.
It should focus on clarifying the scope of disclosures required from companies, particularly regarding financial irregularities and conflicts of interest.
Bolstering Whistleblower Protections: SEBI should strengthen its whistleblower protection framework to encourage the reporting of internal issues or malpractices, ensuring accountability and protection for informants.
Improving Internal Governance and Work Culture: SEBI can address concerns about a toxic work environment by conducting independent reviews of its internal governance, improving employee welfare, and fostering a transparent, positive work culture.
Collaborating with Global Regulatory Bodies: SEBI can work more closely with global financial regulators to align with international best practices and enhance cross-border market oversight, ensuring that India’s markets remain resilient and transparent.
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has released the updated SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) list for the year 2024.
What is the SCOMET List?
Details
Purpose
To regulate the export of dual-use items that can be used for both civilian and military applications, particularly those that could contribute to the development of weapons of mass destruction (WMDs) and their delivery systems.
Regulatory Authority
Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India.
Notification
Notified by DGFT under Appendix 3 to Schedule 2 of the ITC (HS) Classification of Export and Import Items.
Legal Framework
Governed by Chapter IVA of the Foreign Trade (Development & Regulation) Act, 1992, as amended in 2010.
This chapter provides the legal basis for export control of dual-use items and outlines penalties for non-compliance.
Policy and Procedures
Outlined in Chapter 10 of the Foreign Trade Policy (FTP) and the Handbook of Procedures (HBP) 2023.
These documents provide the detailed procedure for licensing, application, and compliance for exporting SCOMET items.
Categories
The SCOMET List includes multiple categories:
1. Category 0: Nuclear materials and nuclear-related dual-use items.
2. Category 1: Toxic chemical agents and precursors.
3. Category 2: Materials and materials processing equipment.
4. Category 3: Electronics.
5. Category 4: Computers.
6. Category 5: Telecommunications and information security.
7. Category 6: Sensors and lasers.
8. Category 7: Navigation and avionics.
9. Category 8: Marine.
10. Category 9: Aerospace and propulsion.
New Licensing Authority for Category 6
Department of Defence Production (DDP), Ministry of Defence is the new licensing authority for the export of items under Category 6 (Sensors and Lasers).
Export Licensing
Exporters must obtain a specific license from DGFT (or DDP for Category 6) to export SCOMET items.
The licensing process includes a comprehensive review to ensure that exports do not contribute to the proliferation of WMDs or unauthorized military use.
The Union Cabinet has approved the ‘BioE3 (Biotechnology for Economy, Environment, and Employment) Policy’ proposed by the Department of Biotechnology to promote advanced biomanufacturing.
What is the BioE3 Policy?
The BioE3 (Biotechnology for Economy, Environment and Employment) Policy is a strategic initiative approved by the Indian Cabinet to foster high-performance biomanufacturing.
Aims and Objectives of the Policy:
Innovation Support: The policy promotes research and development (R&D) and entrepreneurship in various thematic sectors, facilitating technological advancement and commercialization.
Biomanufacturing Hubs: It proposes the establishment of Biomanufacturing & Bio-AI hubs and Biofoundries to enhance India’s bioeconomy.
Focus Areas: The policy targets several strategic sectors, including high-value bio-based chemicals, biopolymers, smart proteins, precision biotherapeutics, climate-resilient agriculture, carbon capture, and marine and space research.
Significance of the Policy
Economic Growth: It is expected to catalyze a “bio revolution” similar to the IT revolution, generating substantial job opportunities in biotechnology and biosciences.
Sustainability Goals: The policy aligns with government initiatives for achieving a ‘Net Zero’ carbon economy and promotes sustainable lifestyles, thereby steering India towards accelerated green growth and a circular bio-economy.
Job Creation: By expanding the skilled workforce in biotechnology, the policy aims to create various kinds of employment opportunities, addressing critical societal issues such as climate change, food security, and human health.
Present Status of Indian Bio-economy
Growing Potential: The biotechnology sector is seen as a key player in addressing challenges in health, agriculture, environment, and energy. India has a large pool of young, skilled workers, with 47% of its population under the age of 25.
Investment in R&D: Despite its potential, India spends less than 1% of its GDP on research, compared to countries like Israel and South Korea, which invest over 4%.
Existing Infrastructure: The government has established 9 biotech parks and 60 bio-incubators, which support the growth of the biotechnology sector.
Challenges Ahead
Educational Gaps: The current educational curriculum does not adequately prepare students for industry demands, creating a skills mismatch.
Funding Issues: There is a lack of venture capital funding due to information asymmetry regarding the biotech industry, which hampers innovation and growth.
Clinical Trials: India conducts a low percentage of clinical trials compared to global standards, which is a concern for the development of biopharmaceuticals.
Research Investment: The government currently covers over 60% of total R&D spending, which is very different from countries where the private sector contributes a large portion.
Way forward:
Enhance Industry-Academia Collaboration: Encourage partnerships between educational institutions and biotech companies to align curricula with industry needs, thereby reducing the skills mismatch and preparing students for emerging job markets.
Increase Private Sector Investment: Implement policies and incentives to attract more private sector investment in R&D, such as tax benefits, public-private partnerships, and improved access to venture capital, to stimulate innovation and reduce reliance on government funding.
Despite being worth $181.9 trillion in 2022, cross-border payments still have inefficiencies prompting the G-20 to focus on improving them for economic growth.
Present Status of the Global Cross-Border Payments Market
The cross-border payments market was valued at approximately $181.9 trillion in 2022 and is projected to reach $356.5 trillion by 2032, reflecting a compound annual growth rate (CAGR) of 7.3% from 2023 to 2032.
The growth is driven by increasing globalization, the rise of e-commerce, and technological innovations in the financial sector. The demand for faster, more secure, and transparent payment solutions is compelling banks and fintech companies to enhance their offerings.
The market includes various channels such as bank transfers, money transfer operators, and card payments, with a significant share coming from business-to-business (B2B) transactions.
Difference Between Old and New Systems
Cross-Border Payment
Features
Challenges
Old System
Cross-border payments relied on manual processes involving letters of credit, checks, and extensive documentation.
It faced challenges such as high transaction costs, slow processing times, and limited access due to regulatory burdens.
New System
Incorporates technological advancements such as blockchain, digital wallets, and instant payment systems.
Example:peer-to-peer transactions and interlinked payment infrastructures
challenges around scalability, security, regulation and standardization.
Challenges to Cross-Border Payments
High Costs: Transaction fees remain a significant barrier, with various financial institutions imposing different charges that complicate cost-effectiveness.
Low Speed: Processing times can vary greatly, often taking several days due to intermediary banks and regulatory checks, which can frustrate users seeking rapid transactions.
Limited Access: Many individuals and businesses still face obstacles in accessing cross-border payment services, particularly in underbanked regions.
Insufficient Transparency: Users often lack clarity regarding fees, processing times, and the overall transaction process, leading to mistrust and reluctance to engage in cross-border transactions.
Regulatory Compliance: Navigating diverse legal frameworks across jurisdictions complicates transactions, with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations adding layers of complexity.
Way forward:
Adoption of Emerging Technologies: Leveraging blockchain, digital currencies, and AI can streamline processes, reduce transaction costs, and enhance transparency, making cross-border payments faster and more accessible.
Regulatory Harmonization and Collaboration: Promoting global regulatory alignment and fostering collaboration between financial institutions and governments can simplify compliance, improve transaction efficiency, and broaden access to underbanked regions.
The Finance Ministry has issued a notification amending the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, to simplify Foreign Direct Investment (FDI) rules.
Key amendments made by the Finance Ministry:
Details
Cross-Border Share Swaps
Simplifies the process for Indian companies to engage in cross-border share swaps with foreign companies.
Clarity on Downstream Investments
Provides clearer guidelines on the treatment of downstream investments by OCI-owned entities on a non-repatriation basis, aligning them with NRI-owned entities.
FDI in White Label ATMs (WLAs)
Allows FDI in White Label ATMs to increase the geographical spread of ATMs, particularly in semi-urban and rural areas.
Standardization of ‘Control’ Definition
Standardizes the definition of ‘control’ to ensure consistency with other Acts and laws.
Harmonization of ‘Startup Company’ Definition
Aligns the definition of ‘startup company’ with the Government of India’s notification G.S.R. 127 (E) dated February 19, 2019.
About The Foreign Exchange Management (Non-debt Instruments) Rules, 2019
These rules govern foreign investment in India in non-debt instruments like equity shares, mutual funds, and real estate (excluding agricultural land).
These rules, effective from October 17, 2019, were issued under FEMA, 1999 (Foreign Exchange Management Act).
It covers the following key aspects:
FDI Regulation: Specifies guidelines for foreign direct investment (FDI) in various sectors, including sectoral caps and conditions.
Investment Vehicles: Allows investment through entities like Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs), and mutual funds.
Repatriation: Provides a framework for repatriation of profits, dividends, and capital by foreign investors.
Reporting: Mandates detailed reporting for companies receiving foreign investments.
Sectoral Caps and Conditions: Sets sectoral limits and approval requirements for foreign investment, with some sectors requiring government approval.
Prohibited Sectors: Prohibits foreign investment in sectors like lottery, gambling, chit funds, and agricultural land.
Transfer of Shares: Outlines guidelines for share transfer between residents and non-residents, ensuring compliance with regulatory conditions.
PYQ:
[2020] With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?
(a) It is the investment through capital instruments essentially in a listed company.
(b) It is a largely non-debt creating capital flow.
(c) It is the investment which involves debt-servicing.
(d) It is the investment made by foreign institutional investors in the Government securities.
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