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GS Paper: GS3-12.Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

  • [pib] IMEX 2024, Frankfurt 

    Why in the News?

    The Union Ministry of Tourism is actively engaging in IMEX, Frankfurt to position India as a premier MICE destination on the International stage.

    Back2Basics: IMEX

    • IMEX is an international trade show for the meetings, events, and incentive travel industry.
    • It stands for “International Meeting Exchange” and is held annually in Frankfurt, Germany.
    • It was established in the year 2001.
    • IMEX provides a platform for professionals in the global events industry to network, conduct business, and gain insights into the latest trends and innovations in event planning and management.
    • IMEX hosts two major annual events:
    1. IMEX America in Las Vegas and
    2. IMEX in Frankfurt, Germany.
    • These events are significant for facilitating connections within the industry, offering extensive educational opportunities, and showcasing industry innovations.

    What is MICE Tourism?

    • MICE Tourism refers to “Meetings, Incentives, Conferences, and Exhibitions,” representing a sector of the travel industry specializing in the planning and booking of logistics for large and small-scale corporate events.
      • Meetings: Involves small to large gatherings where business topics and are organized to discuss and exchange information.
      • Incentives: Involves company-organized trips as rewards or incentives to employees or partners to motivate them or reward them for their performance.
      • Conferences: These are large gatherings focused on particular topics, where participants discuss issues of mutual interest.
      • Exhibitions: Also known as expos, these events are where businesses showcase and demonstrate their new products and services.
    • This sector is highly valued for its contribution to the economic development of a region by bringing in significant numbers of visitors, who then utilize various services such as hotels, restaurants, and other amenities.

    India’s Focus on MICE Tourism:

    • Addressing Seasonality: The Ministry of Tourism has identified MICE tourism as a niche sector to mitigate the issue of seasonality and promote India as a year-round destination for international travelers.
    • Meet in India Initiative: Under the umbrella of the ‘Incredible India’ campaign, the Ministry has launched the ‘Meet in India’ sub-brand, aimed at showcasing India’s robust MICE infrastructure, connectivity, and diverse tourist attractions to a global audience.

    Success Stories and Global Recognition:

    • G20 Presidency Impact: India’s G20 Presidency witnessed over 200 meetings in 56 cities nationwide, showcasing the country’s strong MICE infrastructure and cultural heritage to the world.
    • Enhanced Global Visibility: Through these initiatives, India has gained prominence as a premier global hub for MICE activities, attracting increased tourism and business opportunities both domestically and internationally.
    • ICCA Ranking: India’s efforts have been recognized internationally, positioning the country at the 9th rank in the ICCA (International Congress and Convention Association) ranking of countries in the Asia Pacific region in 2022.

     

    PYQ:

    [2017] The term ‘Digital Single Market Strategy’ seen in the news refers to-

    (a) ASEAN

    (b) BRICS

    (c) EU

    (d) G20

  • Investment lessons from the India-EFTA trade deal

    Why in the News? 

    India needs a clear Free Trade Agreement policy, especially in dealing with International Trade and Foreign Investment Laws.

    About Free Trade Agreement:

      • A Free Trade Agreement between two or more countries aims to reduce or eliminate barriers to trade, such as tariffs, quotas, and other restrictions, to facilitate the flow of goods and services across borders.
      • Its significance for India: It can increase market access for Indian goods and services, boost exports, attract foreign investment, stimulate economic growth, create employment opportunities, and enhance competitiveness through exposure to international markets and technologies.
    • Present status of India’s Involvement in FTA: 
      • India is involved in various free trade arrangements, including the South Asian Free Trade Area (SAFTA), the Association of Southeast Asian Nations (ASEAN) Free Trade Area, the India-Japan Comprehensive Economic Partnership Agreement (CEPA), and negotiations with the European Union for a free trade agreement, among others.
      • Negotiations for India’s FTAs with countries like the United Kingdom and the European Union (EU) appear to have stalled amidst the current parliamentary elections in India.

     

    Why does India need to rebuild its Free Trade Agreement policy?

    • For Comprehensive Economic Treaties: Combining trade and investment negotiations provides India with clear negotiating leverage to strike beneficial deals.
      • It allows India to leverage concessions in trade for advancements in investment, and vice versa. This approach enhances India’s bargaining power in FTA negotiations.
    • For Scope Expansion: India should expand the scope of investment issues by incorporating provisions for protecting foreign investors under international law, ensuring their confidence in investing in India.
      • It will help India to establish an efficacious dispute settlement mechanism under international law to resolve investment disputes effectively.
      • Providing enforceable legal protection to foreign investors is crucial for boosting their confidence, especially amidst declining foreign direct investment levels in India.
    • For addressing the drop in FDI Levels: The policy should address the decline in foreign direct investment levels in India by instilling confidence among foreign investors through robust legal protection and dispute resolution mechanisms.

    Investment lessons from the India-EFTA Trade deal:

    • The India-EFTA FTA includes a comprehensive investment chapter, which is missing in recent Indian FTAs with countries like Australia, UAE, and Mauritius.
    • The agreement includes provisions wherein EFTA countries commit to making honest endeavors to increase FDI to India and facilitate job generation, codifying an obligation of conduct rather than an obligation of result.
    • Economic theory highlights the close linkage between trade and investment. While earlier Indian FTAs included both binding trade rules and investment protection, recent ones decoupled international trade law from international investment law.
    • The India-EFTA FTA, emphasizes combining trade and investment negotiations in one comprehensive economic treaty, that is ‘FTA 3.0 Approach’, which represents a departure from the decoupling approach seen in recent FTAs.

    Way Forward:

    • Capacity Building: Enhance the capacity of Indian negotiators and policymakers to understand complex trade and investment issues, including legal frameworks, dispute resolution mechanisms, and international best practices.
    • Integrated Negotiation Approach: Adopt an integrated approach to FTA negotiations, wherein trade and investment aspects are negotiated together within a single agreement, ensuring coherence and synergy between the two.

    Mains PYQ:

    Q Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss.

    https://www.thehindu.com/opinion/op-ed/investment-lessons-from-the-india-efta-trade-deal/article68168582.ece#:~:text=Providing%20enforceable%20legal%20protection%20to,a%20higher%20economic%20growth%20trajectory.

  • Export-Import in the Agricultural sector

    Why in the news? 

    India’s agricultural exports have declined in the fiscal year ended March 31, 2024, on the back of shipment curbs on a host of commodities, from cereals and sugar to onions.

    The Need for a New Export-Import Policy for Agriculture:

    • Decline in Agricultural Exports: India’s agricultural exports fell by 8.2% in the fiscal year ended March 31, 2024, due to shipment curbs on various commodities, including cereals, sugar, and onions. This decline highlights the volatility and vulnerability of agricultural trade.
    • Impact on Export Restrictions: Export restrictions imposed by the government, such as bans on sugar and non-basmati rice exports, have led to a significant decrease in export values.
    • Market Stability: Farmers and agri-traders require policy stability and predictability to make informed decisions. Abrupt changes in export-import policies, such as sudden bans or restrictions, can disrupt trade and adversely affect agricultural businesses.
    • Need for comprehensive framework: Export-import policies should strike a balance between the interests of producers and consumers. While export restrictions may benefit consumers by stabilizing prices, they can result in revenue losses for producers. A more predictable and rules-based policy framework is needed to ensure fairness and transparency.
    • Low tariffs on certain commodities: The current import policy, characterized by low on certain commodities like pulses and edible oils, contradicts the government’s objective of promoting crop diversification.

    Measures that needs to be taken in the present scenario:

    • Long-Term Goals for the Farm Sector: A new export-import policy should align with the long-term goals of the agricultural sector, including sustainable production practices, crop diversification, and increasing farmer incomes.
      • Balancing short-term consumer needs with long-term agricultural sustainability is essential for the sector’s growth and resilience.
    • Rationalizing Export-Import Policy: The government post-election may need to rationalize the export-import policy by introducing measures such as temporary tariffs instead of outright bans or quantitative restrictions.
      • A rational and coherent policy framework will support the growth and competitiveness of India’s agricultural sector in the global market.
    • Higher Import tariffs: It could incentivize domestic production of pulses and oilseeds, reducing dependence on imports and supporting farmers.

    Conclusion: Export-import policies should strike a balance between the interests of producers and consumers. While export restrictions may benefit consumers by stabilizing prices, they can result in revenue losses for producers. A more predictable and rules-based policy framework is needed to ensure fairness and transparency.

    Mains PYQ: 

    Q In the view of the declining average size of land holdings in India which has made agriculture non – viable for a majority of farmers should contract farming and land leasing be promoted in agriculture? critically evaluate the pros and cons.(UPSC IAS/2015)

  • [PREMIUM] An Overview of the Digitalization in Indian Economy

    Why in the news?

    As per RBI findings, India’s core digital economy saw a rise from constituting 8.5% of GVA in 2019 to 12.5% in 2023, marking a growth rate of 15.6% over the span of 2019-2023.

    What is digitisation?

    • Digitization refers to the process of converting information, data, or physical objects into digital format. Digitization enables information to be stored, accessed, and manipulated electronically, often leading to increased efficiency, accessibility, and flexibility compared to traditional analog methods.

    Origin in World 

    • The origin of digitalization can be traced back to the late 19th century when Herman Hollerith developed a punch card system for tabulating data.
    • Alan Turing’s theoretical work on computation in the early 20th century laid the foundation for the development of the first electronic computers in the 1940s, which were pivotal in digitizing various forms of information.

    Origin in India 

    • Late 20th century: The origins of digitalization in India can be traced back to the late 20th century, with the advent of personal computers and the internet.
    • Early 2000s:The government’s concerted efforts to drive digital transformation in the country began in the early 2000s with the launch of the National e-Governance Plan (NeGP) in 2006
    • 2015: The NeGP aimed to make government services available to citizens electronically by improving online infrastructure and connectivity. This laid the foundation for the more comprehensive “Digital India” initiative, which was launched by Prime Minister Narendra Modi in 2015

    Status of Digitalization in the Indian Economy

    • Enhancement of E-Governance: The Digital India initiative has brought about substantial enhancements in e-governance services. Programs such as e-visas and the Digital Locker system have effectively modernized government services, leading to a reduction in paperwork and greater accessibility for citizens.
    • E-Commerce market: India’s e-commerce market is expected to reach $200 billion by 2026. Major players like Flipkart and Amazon have expanded their reach, with the COVID-19 pandemic accelerating online shopping adoption.
    • Digital transaction: The BHIM (Bharat Interface for Money) app, utilizing the Unified Payments Interface (UPI), has garnered immense popularity, enabling secure peer-to-peer transactions. By August 2023, UPI had processed more than 10 billion monthly transactions, amounting to INR 18 trillion ($204.77 billion).
    • Startup Ecosystem in India: India’s rapidly growing startup ecosystem currently encompasses 110 unicorns valued at $347 billion, featuring prominent companies such as Paytm, Ola, and Zomato. These unicorns exemplify India’s prowess as a technology-driven entrepreneurial center.
    • Digital Financial Inclusion: Digital financial services, propelled by programs such as Jan Dhan Yojana, have advanced financial inclusion by facilitating the opening of millions of bank accounts for those previously excluded from or underrepresented in the banking system.
    • Surge in Broadband and Internet Usage: India has experienced a notable surge in broadband adoption, boasting 825 million mobile broadband subscribers as of July 2023. This uptick has resulted in heightened data consumption and escalated online engagement, especially among Generation Z.

    Key challenges related to digitalisation in India:

    • Lack of skills: Rapid technological change increase the demand of skilled workforce. Only 42% of India’s workforce possesses digital skills, highlighting the need for digital literacy and upskilling.
    • Regulatory challenges: For businesses, especially startups, grappling with intricate digital regulations, e-commerce taxation, and intellectual property matters continues to present significant challenges.
    • Privacy issues:The surge in digital transactions and data exchange has sparked notable concerns regarding privacy and data security. These concerns are being tackled by the Personal Data Protection Bill, which introduces regulatory intricacies.
    • Cybersecurity: As digitization increases, the risk of cyber threats and attacks grows. India faced 91 lakh cybersecurity incidents in 2022, ranking third globally in the average cost of data breaches.
    • Digital Divide: Despite advancements, there remains a digital gap, with rural areas experiencing restricted internet and technology accessibility, resulting in approximately 50% of the population being offline.

    Measures to address these challenges:

    • Digital Skills Development: Implement comprehensive digital literacy programs to enhance the skills of the workforce.
    • Regulatory Simplification:Streamline digital regulations, especially for startups, to reduce complexities and facilitate smoother operations.Provide guidance and support to businesses on e-commerce taxation and intellectual property matters.
    • Privacy and Data Security: Enforce the Personal Data Protection Bill to address privacy concerns and ensure data security.Enhance awareness campaigns to educate the public about data privacy and protection measures.
    • Cybersecurity Measures: Strengthen cybersecurity infrastructure to combat the increasing cyber threats and attacks.Invest in advanced cybersecurity technologies and training programs to build a resilient defense system.
    • Closing the Digital Divide:Expand digital infrastructure in rural areas to improve internet and technology accessibility.

     Steps taken by government:

    • Cybersecurity Framework: Enhance cybersecurity infrastructure and awareness, emphasizing collaboration between government agencies and the private sector under National Cyber Security Policy of 2021.
    • Data Protection Laws: Enacted data protection laws and regulations, like the Digital Personal Data Protection Act, of 2023, to ensure privacy and responsible data handling.
    • Expansion of Broadband : Accelerate efforts to expand broadband connectivity in rural and remote areas, leveraging public-private partnerships like the BharatNet project.
    • Digital initiative: Comprehensive digital literacy initiatives targeting both urban and rural communities, exemplified by programs like the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA).

    Conclusion: 

    Need to Implement widespread digital literacy programs to equip individuals with the necessary skills to navigate the digital landscape and emphasize upskilling and reskilling initiatives to meet the demands of rapid technological advancements.Encourage collaboration between the government and the private sector to drive digitization initiatives.

     

    Mains PYQ

    Q Implementation of Information and Communication Technology (ICT) based projects/programmes usually suffers in terms of certain vital factors. Identify these factors and suggest measures for their effective implementation. (UPSC IAS/2019)

    Q Has digital illiteracy, particularly in rural areas, coupled with lack of Information and Communication Technology (ICT) accessibility hindered socio-economic development? Examine with justification.(UPSC IAS/2021)

  • India’s growing dependence on Chinese Imports

    Why in the news?

    • India’s imports from China surged to over $101 billion in the fiscal year 2023-24, marking a significant increase from approximately $70 billion recorded in 2018-19.
    • The proportion of China’s industrial goods imports to India has risen from 21% to 30% over a span of 15 years, as highlighted in a report by the Global Trade Research Initiative (GTRI).

    India’s Import: GTRI study

    • The GTRI study revealed that imports from China have grown at a pace 2.3 times faster than India’s overall imports during the 15-year period.
    • Contrary to common belief, China has emerged as the top supplier in eight core industrial sectors, encompassing machinery, chemicals, pharmaceuticals, and textiles, among others.
    • India is experiencing stagnant exports valued at around $16 billion annually.
    • Over a six-year period spanning from 2018-2019 to 2023-24, India’s cumulative trade deficit with China surpassed $387 billion, prompting apprehension among policymakers.

    China’s Share of India’s Imports:

    • China accounted for 15% of India’s overall imports in 2023-24, with $101.8 billion out of a total of $677.2 billion.
    • Sector-wise Contributions:
    1. Electronics, Telecom, and Electrical Products: China’s contribution was 38.4% in April-January 2023-24.
    2. Clothing: Nearly 42% of India’s textile and clothing imports accounted from China.
    3. Machinery Sector: China accounted for 39.6% of India’s overall imports.
    4. Chemical and Pharmaceutical Sector: China’s share was 29.2%.
    5. Plastics and Related Articles: China provided articles worth $4.8 billion, accounting for 25.8% of total imports in this sector.

    Back2Basics: Top Importers of India

    S. No Importer Share of India’s Imports
    1. China (Biggest Importer in India) 15.43%
    2. United Arab Emirates 7.31%
    3. United States 7.07%
    4. Switzerland 3.82%
    5. Hong Kong 3.12%
    6. Singapore 3.09%
    7. Indonesia 2.89%
    8. South Korea 2.85%

     

    PYQ:

    [2017] ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor.

  • What are the new Green Credit Programme rules? | Explained

    Why in the news? 

    On April 12, the Environment Ministry issued further guidelines on its Green Credit Programme (GCP)

    What is the Green Credit Programme?

    • The Green Credit Programme is a new market-based instrument in India designed to incentivize individuals, industries, and local bodies for their voluntary environmental actions across different sectors.
    • It is included under the government’s ‘Lifestyle for Environment’ or ‘LiFE’ movement and is a domestic voluntary market mechanism where green credit serves as a singular unit of credit provided for each specified activity.

    Features of the Green Credit Programme:

    • Open-Platform: Participants, including individuals, organizations, and both public and private companies, can invest in these environmental initiatives and receive ‘green credits’ in return. These credits are earned based on the environmental impact of the invested activities.
      • Public sector companies such as Indian Oil, Power Grid Corporation of India, National Thermal Power Corporation, Oil India, Coal India, and National Hydropower Corporation have reportedly registered to invest in the GCP.
    • Set with Priority: The Ministry has prescribed rules for the first initiative under the GCP, focusing on afforestation. Participants can pay for afforestation projects in degraded forest and wasteland areas, with tree planting conducted by State forest departments.
      • The Indian Council of Forestry Research and Education (ICFRE), an autonomous body of the Environment Ministry, is responsible for administering the GCP. They define methodologies to calculate green credits and manage a trading platform for credit exchange.
    • Regional Participation: Thirteen state forest departments have offered 387 land parcels totaling nearly 10,983 hectares of degraded forest land for afforestation projects under the GCP.
    • Enhanced Decision-Making: Successful participants will receive estimates of the costs involved in their chosen afforestation projects, facilitating informed decision-making and planning.

    Why has the GCP stoked controversy?

    • Commodification of Environmental Conservation: Critics argue that the GCP turns environmental conservation into a commodity, potentially undermining the spirit of India’s forest conservation laws.
    • Forest Diversion Concerns: The GCP’s provision for companies to “exchange” green credits for complying with compensatory afforestation requirements raises concerns that it could be exploited by industries seeking to ease forest diversion requirements, particularly in sectors like mining and infrastructure.
    • Ecological Impact: Planting trees as a part of afforestation efforts does not guarantee ecosystem improvement. India’s diverse forest types require specific approaches, and planting the wrong types of trees could lead to the proliferation of invasive species or disrupt sustainable ecosystems.
    • Monoculture Threat: There’s a risk that the GCP may promote the replacement of natural forests with invasive monocultures, potentially harming biodiversity and ecological balance.
    • Carbon Trading Controversy: The GCP allows green credits resulting from carbon storage (e.g., tree planting) to be used for carbon trading. However, the methodology for equating these activities is unclear, raising doubts about the effectiveness and legitimacy of such carbon trading schemes.

    Conclusion: The Green Credit Programme in India, faces criticism for potentially commodifying conservation, raising forest diversion concerns, posing ecological risks like monoculture, and lacking clarity in carbon trading methodologies. So there is a need for rigorous oversight and adaptation.

    Mains PYQ 

    Q Explain the purpose of the Green Grid Initiative launched at World Leaders Summit of the COP26 UN Climate Change Conference in Glasgow in November, 2021. When was this idea first floated in the International Solar Alliance (ISA)?

  • [pib] Index of Industrial Production (IIP) grows by 5.7% in February, 2024

    Why in the news?

    India’s Index of Industrial Production (IIP) increased by 5.7% in February, up from 3.8% in January, according to data from the Ministry of Statistics and Programme Implementation (MoSPI).

    What is Index of Industrial Production (IIP)?

    • IIP as it is commonly called is an index that tracks overall manufacturing activity in different sectors of an economy.
    • It is currently calculated using 2011-2012 as the base year.
    • It is compiled and published by Central Statistical Organisation (CSO) every month.
    • CSO operates under the Ministry of Statistics and Programme Implementation (MoSPI).

    Components of IIP:

    • Three broad sectors in IIP:
    1. Manufacturing (77.6%),
    2. Mining (14.4%)
    3. Electricity (8%).
    • Electricity, crude oil, coal, cement, steel, refinery products, natural gas, and fertilizers are the eight core industries that comprise about 40 per cent of the weight of items included in the IIP.

    Basket of products:

    There are 6 sub-categories:

    1. Primary Goods (consisting of mining, electricity, fuels and fertilisers)
    2. Capital Goods (e.g. machinery items)
    3. Intermediate Goods (e.g. yarns, chemicals, semi-finished steel items, etc)
    4. Infrastructure Goods (e.g. paints, cement, cables, bricks and tiles, rail materials, etc)
    5. Consumer Durables (e.g. garments, telephones, passenger vehicles, etc)
    6. Consumer Non-durables (e.g. food items, medicines, toiletries, etc)

    Who uses IIP data?

    • The factory production data (IIP) is used by various government agencies such as the Ministry of Finance, the Reserve Bank of India (RBI), private firms and analysts, among others for analytical purposes.
    • The data is also used to compile the Gross Value Added (GVA) of the manufacturing sector in the Gross Domestic Product (GDP) on a quarterly basis.

    IIP base year change:

    • The base year was changed to 2011-12 from 2004-05 in the year 2017.
    • The earlier base years were 1937, 1946, 1951, 1956, 1960, 1970, 1980-81, 1993-94 and 2004-05.

    What are the Core Industries in India?

    • The main or the key industries constitute the core sectors of an economy.
    • In India, there are eight sectors that are considered the core sectors.
    • They are electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers.

    About Index of Eight Core Industries (ICI)  

    • The monthly Index of Eight Core Industries (ICI) is a production volume index.
    • ICI measures collective and individual performance of production in selected eight core industries: Coal (10%), Crude Oil (8.98%), Natural Gas (6.88%), Refinery Products (28.04%), Fertilizers (2.63%), Steel (17.92%), Cement (5.37%), and Electricity (20.18%).
    • Prior to the 2004-05 series six core industries namely Coal, Cement, Finished Steel, Electricity, Crude petroleum and Refinery products constituted the index basket.
    • Two more industries i.e. Fertilizer and Natural Gas were added to the index basket in 2004-05 series. The ICI series with base 2011-12 will continue to have eight core industries.

    Components covered in these eight industries for compilation of index are as follows:

    1. Coal – Coal Production excluding Coking coal.
    2. Crude Oil – Total Crude Oil Production.
    3. Natural Gas – Total Natural Gas Production.
    4. Refinery Products – Total Refinery Production (in terms of Crude Throughput).
    5. Fertilizer – Urea, Ammonium Sulphate (A/S), Calcium Ammonium Nitrate (CAN), Ammonium chloride (A/C), Diammonium Phosphate (DAP), Complex Grade Fertilizer and Single superphosphate (SSP).
    6. Steel – Production of Alloy and Non-Alloy Steel only.
    7. Cement – Production of Large Plants and Mini Plants.
    8. Electricity – Actual Electricity Generation of Thermal, Nuclear, Hydro, imports from Bhutan.

    How is IIP different from ICI?

    • IIP is compiled and published monthly by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation six weeks after the reference month ends.
    • However, ICI is compiled and released by Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), and Ministry of Commerce & Industry.
    • The Eight Core Industries comprise nearly 40.27% of the weight of items included in the Index of Industrial Production (IIP). These are Electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilisers.

    PYQ:

    [2015] In the Index of Eight Core Industries, which one of the following is given the highest weight?

    (a) Coal Production

    (b) Electricity generation

    (c) Fertilizer Production

    (d) Steel Production

  • Imposition of Anti-Dumping Duty on Sodium Cyanide

    Why in the news?

    The Directorate General of Trade Remedies (DGTR) has recently recommended the imposition of an anti-dumping duty on sodium cyanide (NaCN) imported from China, the European Union, Japan, and Korea.

    Sodium Cyanide and Its Applications

    • Sodium cyanide is a deadly toxic, white, crystalline compound with the chemical formula NaCN.
    • It is a water-soluble solid, mainly used in gold mining, electroplating, and in the synthesis of organic chemicals.
    • It is hygroscopice. it quickly absorbs water from the air.
    • In gold mining, sodium cyanide is used to dissolve and separate gold from its ores.
    • It plays a pivotal role in various industrial processes, electroplating, metal heat treatment, and the production of insecticides, dyes, pigments, and pharmaceuticals.

    What is Anti-Dumping Duty?

    • An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below the price at which it is sold in the exporters’ domestic market.
    • This is imposed with the rationale that these products have the potential to undercut local businesses and the local economy.
    • The World Trade Organization (WTO) operates a set of international trade rules for the regulation of anti-dumping measures.
    • In general, the WTO agreement permits governments to act against dumping “if it causes or threatens material injury to an established industry in the territory of a contracting party.

    Anti-Dumping Mechanism in India:

    • The Anti-Dumping mechanism in India is administered by the Directorate General of Anti-Dumping and Allied Dutites (DGAD) under the Ministry of Finance.
    • The anti-dumping law in India is covered under the Customs Tariff Act, 1975, and the Customs Tariff Rules, 1995.
    • The DGAD conducts anti-dumping investigations to determine if the domestic industry has been hurt by a surge in below-cost imports.

    How is Anti-Dumping Duty calculated?

    • The anti-dumping duty is calculated as the difference between the normal value and the export value of the product.
    • The normal value is the market value of the product in the domestic market, while the export value is the price at which the product is exported to India.
    • The anti-dumping duty is imposed to offset the price difference and prevent the domestic industry from being harmed by cheap imports.

     

    PYQ:

    [2015] In India, the steel production industry requires the import of-

    (a) Saltpetre

    (b) Rock phosphate

    (c) Coking coal

    (d) All of the above

  • SEBI unveils SCORES 2.0 to Strengthen Investor Redressal

    Why in the news?

    The Securities and Exchange Board of India (SEBI) unveiled the upgraded version of the SEBI Complaint Redress System (SCORES 2.0) marking a significant advancement in the investor complaint redressal mechanism in the securities market.

    About Securities and Exchange Board of India (SEBI)

     

    • SEBI is the regulatory authority overseeing India’s securities and commodity markets.
    • Established in 1988 as a non-statutory body, SEBI was granted statutory powers with the enactment of the SEBI Act 1992 by the Indian Parliament.
    • It operates under the purview of the Ministry of Finance.
    • SEBI’s structure includes a chairman nominated by the GoI, members from the Union Finance Ministry, the Reserve Bank of India, and others.
    • Its headquarters is in Mumbai, with regional offices in Ahmedabad, Kolkata, Chennai, and Delhi.

    What is SCORES 2.0?

    • SCORES 2.0 refers to the upgraded version of the SEBI Complaint Redress System (SCORES) launched by the Securities and Exchange Board of India (SEBI).
    • SCORES is an online platform designed to facilitate the lodging and resolution of complaints by investors in the securities market.
    • Complaints can be lodged for any issues covered under the:
    1. SEBI Act, 1992
    2. Securities Contract Regulation Act, 1956
    3. Depositories Act, 1966
    4. Companies Act, 2013

    Complaints on SCORES 2.0 can be launched against:

    1. Listed companies / registrar & transfer agents
    2. Brokers / stock exchanges
    3. Depository participants / depository
    4. Mutual funds
    5. Portfolio Managers
    6. Other entities (KYC Collective investment scheme, Merchant banker, Credit rating, Foreign institutional investor etc.)

    Features of SCORES 2.0:

    1. Reduced Timelines: SCORES 2.0 implements reduced and standardized timelines for addressing investor grievances, ensuring a maximum redressal period of 21 calendar days from the date of complaint receipt.
    2. Auto-Routing and Escalation: The new version incorporates an auto-routing mechanism to swiftly direct complaints to the relevant regulated entity. Additionally, it introduces a two-tier review process, with complaints undergoing review first by the designated body and subsequently by SEBI if investors remain dissatisfied with the resolution provided.
    3. Integration with KYC Database: SCORES 2.0 is seamlessly integrated with the KYC Registration Agency database, streamlining the registration process for investors onto the platform.
    4. Enhanced Efficiency: Through features such as auto-routing, auto-escalation, and stricter monitoring protocols, SCORES 2.0 aims to enhance the efficiency and effectiveness of the investor complaint redressal process.

    Significance of SCORES 2.0

    • Improved Regulatory Oversight: By introducing stricter timelines and oversight mechanisms, SEBI aims to enhance regulatory efficiency and transparency, fostering a more accountable and responsive market ecosystem.
    • Technological Advancements: The integration of advanced technological features, such as auto-routing and KYC database linkage, reflects SEBI’s proactive approach towards harnessing digital innovations to modernize regulatory processes and services.

    PYQ:

    2013:

    The product diversification of financial institutions and insurance companies, resulting in overlapping of products and services strengthens the case for the merger of the two regulatory agencies, namely SEBI and IRDA. Justify.

     

    Practice MCQ:

    Consider the following statements about the SCORES 2.0 Platform recently launched by the Securities and Exchange Board of India (SEBI):

    1.    It is an online platform designed to facilitate the lodging and resolution of complaints by investors in the securities market.

    2.    It addresses complaints pertaining to the SEBI Act, 1992 only.

    3.    It ensures a maximum redressal period of 21 calendar days.

    How many of the above statements is/are correct?

    (a) One

    (b) Two

    (c) Three

    (d) None

  • Tamil Nadu accounts for 30% of India’s electronics exports

    Why in the news? 

    Nearly 40% of India’s smartphone shipments over the past two fiscal years originated from a single district Kancheepuram.

    Context 

    • In FY23, Tamil Nadu emerged as India’s foremost exporter of electronic goods, contributing 30% to the country’s total electronic goods exports in FY24.
    • Historically, the state lagged behind Uttar Pradesh and Karnataka in this sector until FY22.
    • However, in recent years, Tamil Nadu has experienced consistent growth in electronic goods exports, unlike other states where figures have either declined or remained static.

     Chart 1 shows the electronic goods exported from Tamil Nadu in $ billion, year-wise.

    • Between April 2023 and January 2024, Tamil Nadu exported electronic goods valued at over $7.4 billion.

    Chart 2 shows the exports of electronic goods of the top five States in India in $ billion, year-wise

    • In FY24, Tamil Nadu’s exports exceeded the combined exports of Uttar Pradesh and Karnataka, which totaled $6.7 billion during that period.
    • Uttar Pradesh and Karnataka were ranked second and third, respectively, in terms of electronic goods exports.
    • Gujarat and Maharashtra, also among the top five exporting states, have experienced stagnant growth in recent years.

    Chart 3 shows the commodity wise share in total exports from India for FY24 (till February) in $ billion

    • Engineering goods were the dominant category of exports from India during the specified period, with a total value of $98 billion.
    • Petroleum products followed closely behind, with exports valued at $78 billion.
    • Gems and jewellery constituted another significant export category, with a total export value of $30 billion.
    • Electronics goods were also notable, although they ranked lower compared to other categories, with exports totaling $25 billion. In FY18, electronics goods were not among the top 10 most exported commodities from India.

     Biggest markets

    • Top most importor of India’s Electronic goods: The United States and the United Arab Emirates (UAE) are the largest markets for India’s electronic goods export. In FY24 (up to February), the U.S. accounted for approximately 35% of India’s electronic goods exports, amounting to $8.7 billion, while the UAE accounted for 12% with $3 billion.
    • Other countries share:The Netherlands and the United Kingdom (U.K.) each held a share of about 5% in India’s electronic goods exports.
    • The primary destination : Since FY21, the United States has consistently been the primary destination for India’s electronics exports, with its share increasing significantly in recent years.

    Conclusion

    Tamil Nadu’s emergence as a key electronics exporter, with 30% of India’s exports, is highlighted. Kancheepuram district’s significant role, alongside Tamil Nadu’s surpassing of Uttar Pradesh and Karnataka, underscores its growth in electronic goods exports.

     

    Mains PYQ

    Q  Can the strategy of regional-resource based manufacturing help in promoting employment in India? (UPSC IAS/2019) 

    Q Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports.(UPSC IAS/2017)