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GS Paper: GS3

  • Spices Board discussing the setting of ETO Limits with CODEX

    Why in the News?

    • The Spices Board has proactively engaged with CODEX, the international food standards authority, to address the pressing issue of ethylene oxide (ETO) contamination in spices.
      • This initiative follows recent recalls of certain branded spices exported from India to Hong Kong and Singapore due to concerns regarding ETO contamination.
      • Concerns over spice quality have also been raised by countries like the US, New Zealand, and Australia, prompting ongoing evaluations of Indian Spice Imports.

    Back2Basics:  Spices Board of India

    • The merger of the erstwhile Cardamom Board and Spices Export Promotion Council on 26th February 1987, under the Spices Board Act 1986 led to the formation of the Spice Board of India.
    • The Board functions as an International link between the Indian exporters and the importers abroad with a Nodal Ministry of Commerce & Industry.
    • Headquartered in Kochi, it has regional laboratories in Mumbai, Chennai, Delhi, Tuticorin, Kandla and Guntur.
    • Main Functions:
      • It promotes organic production, processing, and certification of spices.
      • Responsible for the overall development of Cardamom.
      • Focuses on post-harvest improvement programs for improving the quality of the 52 scheduled spices for export.
      • These programs are included under the head ‘Export Oriented Production’.

    About CODEX

      • The Codex Alimentarius Commission (CAC) is an inter-governmental food standards body established jointly by the Food and Agriculture Organization (FAO) and the World Health Organization (WHO) in May 1963.
        • Objective: Protecting consumer’s health and ensuring fair practices in food trade.
      • The Agreement on Application of Sanitary and Phytosanitary Measures (SPS) of the World Trade Organization (WTO) recognizes Codex standards, guidelines, and recommendations as reference standards.
    • Members:
    • Currently, the CAC has 189 Codex Members made up of 188 Member Countries and the EU.
      • India became a member in 1964.

    CODEX Committee on Spices and Culinary Herbs

      • CODEX committee (CCSCH) was formed in 2013 with the support of more than a hundred countries with India as the host country and the Spices Board as the Secretariat for organizing the committee sessions.
    • Objectives:
      • To consult with other International Organisations for the standards development process in the spice market.
      • To develop and expand worldwide standards.
    • Since its inception, the CODEX Committee has been on a positive path in developing harmonized global standards for worldly herbs and spices.

    India’s push for Permissible ETO Limits

    • Advocacy for Limits: India has advocated for the establishment of limits for ETO usage, recognizing the variance in regulations across different countries.
      • CODEX, thus far, has not prescribed any limit for ETO usage, and India has submitted a proposal for standardizing ETO testing protocols.
    • Focus on Safety: While acknowledging the carcinogenic nature of ETO when used excessively, efforts to prevent contamination have been intensified.
      • Notably, India’s sample failure rate in spices exports is less than 1% in major markets, underscoring the industry’s commitment to quality and safety standards.

    Spice Market of India:

    • Production:
      • Major producing states: Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Assam, Orissa, Uttar Pradesh, West Bengal, Tamil Nadu and Kerala.
      • The production of different spices has been growing rapidly over the last few years. During 2022-23, the export of spices from India stood at US$ 3.73 billion from US$ 3.46 billion in 2021-22.
      • India produces about 75 of the 109 varieties which are listed by the International Organization for Standardization (ISO).
    • Major Produced and Exported Spices by India: Pepper, cardamom, chili, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic, nutmeg & mace, curry powder, spice oils, and oleoresins.
      • Out of these spices, chili, cumin, turmeric, ginger, and coriander make up about 76% of the total production.
    • Export: In 2023-24, India’s spice exports totaled $4.25 billion, accounting for a 12% share of the global spice exports. (till February 2024 data).
      • India exported spices and spice products to 159 destinations worldwide as of 2023-24. The top destinations among them were China, the USA, Bangladesh, the UAE, Thailand, Malaysia, Indonesia, the UK, and Sri Lanka. (which comprises more than 70% of the total exports).

     

    PYQ:

    [2019] Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

    (a) Spices

    (b) Fresh fruits

    (c) Pulses

    (d) Vegetable oils

  • On the importance of Regulatory Sandboxes in Artificial Intelligence 

    Why in the News? 

    Regulatory sandboxes are now widely used in many countries because they allow new ideas to be tested in a controlled and supervised environment.

    What are Regulatory Sandboxes?

    • A regulatory sandbox is a tool allowing businesses to explore and experiment with new and innovative products, services, or businesses under a regulator’s supervision. They are introduced in highly regulated Finance and Energy industries.
    • This is also related to specific spheres or regulations, such as AI or GDPR, to promote responsible innovation/and or competition, address regulatory barriers to innovation, and advance regulatory learning.

    Regulatory Sandboxes in the World:

    • According to a World Bank study, more than 50 countries are currently experimenting with fintech sandboxes.
    • Japan: Japan introduced in 2018 a sandbox regime open to organizations and companies including blockchain, AI, and the Internet of Things (IoT), as well as in fields such as financial services, healthcare, and transportation.
    • UK: A sandbox has been set up to explore new technologies such as voice biometrics and facial recognition technology, and the related data protection issues.

    Significance of Regulatory Sandboxes:

    • Provides Empirical Evidence: Regulators can acquire a better understanding of innovative products, which allows them to develop adequate rule-making, supervision, and enforcement policies. 
      • For example, in the banking industry, the sandbox may result in amending the rules on identity verification without a face-to-face meeting in certain circumstances.
    • Controlled Environment: Regulatory sandboxes help innovators to develop a better understanding of supervisory expectations. Moreover, for innovators, testing in a controlled environment also mitigates the risks and unintended consequences when bringing a new technology to market, and can potentially reduce the time-to-market cycle for new products.
    • Provides high Insights: It promotes higher insights on technical experiments by closely monitoring and evaluating the performance of emerging technologies, and generating valuable empirical evidence.
    • Promotes Collaboration: Regulatory sandboxes foster collaboration between innovators and regulators. This partnership helps ensure that the development of new technologies aligns with regulatory standards and public interests.
    • Benefits to the end consumer: Consumers benefit from the introduction of new and potentially safer products, as regulatory sandboxes foster innovation and consumer choice in the long run.
      • Regulatory sandboxes can enhance access to funding for businesses by reducing information imbalances and regulatory costs.

    Need to find a Middle path:

    • Balancing Regulation and Innovation: Regulatory sandboxes allow for a balanced approach, where innovation is encouraged without completely foregoing necessary regulatory oversight. This balance is crucial to prevent stifling innovation while ensuring safety towards data security and compliance.
    • Risk Mitigation and Ethical Development: The features where regulatory sandboxes encourage responsible innovation by mandating risk assessments and implementing safeguards need to be used efficiently.

    What approach does India need to keep?

    • Multifaceted Approach: India’s strategy should encompass economic ambitions, ethical considerations, job creation, industrial transformation, and societal welfare. This holistic approach ensures that AI development aligns with the country’s broader goals.
    • Regulatory Sandbox as a Preparatory Step: Rather than immediately imposing stringent regulations, India should use regulatory sandboxes as a preparatory measure. This allows for the testing of AI applications in a controlled environment, generating insights that inform future regulatory frameworks.
    • Adaptable and Progressive Legislation: India’s AI regulations should be flexible and adaptable, capable of evolving with technological advancements. This can be achieved by initially using sandboxes to test and refine regulatory approaches before formalizing them.
    • Ethical and Cultural Alignment: AI development in India should align with the country’s cultural and ethical values. This ensures that AI technologies are deployed responsibly and ethically, respecting societal norms and expectations.

    Conclusion: The EU has come up with an AI Act, the U.S. has released a white paper on the AI Bill of Rights, and the U.K. has a national AI Strategy. China is trying to regulate various aspects of AI like generative AI while Singapore is following an innovation-friendly approach. Therefore, in a Global Competitive race, we too need some regulations to harness AI’s vast potential.

    Mains PYQ:

    Q The emergence of the Fourth Industrial Revolution (Digital Revolution) hasinitiated e-Governance as an integral part of government”. Discuss.(UPSC IAS/2020)

  • The challenge of Extra-Pulmonary TB

     

    Why in the News? 

    A tuberculosis patient receives treatment from a nurse (instead of a specialist) at a TB hospital in Guwahati.

    What is meant by Pulmonary Tuberculosis (TB)?  

    • Pulmonary tuberculosis (TB) is a serious infection caused by the bacterium Mycobacterium tuberculosis (MTB) that involves the lungs but may spread to other organs where it destroys body tissue. TB is a contagious disease that can infect anyone exposed to MTB.
    • It constitutes a significant portion of the TB burden in India, accounting for more than 20% of cases.

    Present status of Extra-Pulmonary Tuberculosis (EPTB) in India:

    According to the World Health Organization (WHO) reports, there are over 10 million new cases of TB every year and India alone accounts for 27% of the global TB burden. However, the burden of EPTB is hard to estimate. EPTB is often stain-negative, which means it is not detectable on regular TB stain tests.

     

    The twin challenges of the Knowledge Gap: 

    • Lack of awareness:
      • Among Physicians: Many healthcare providers are unaware that TB can affect organs other than the lungs, such as the eyes and other immune-privileged sites.
      • Among Patients: Nearly 1/5th of TB patients have EPTB. Most of them go undiagnosed, and the few who are diagnosed cannot benefit from care unless they visit a few specialist health facilities.
    • Lack of Accurate Diagnostic and Treatment Criteria: There is a lack of accurate diagnostic criteria for EPTB, making it challenging to identify the disease correctly. Treatment protocols for EPTB are not well-established or widely known, complicating effective management.
      • Although guidelines like INDEX-TB (a set of guidelines by WHO for EPTB management in India) have been formulated, their implementation has remained dormant.
      • The current system for collecting EPTB data is fragmented, with specialist departments maintaining diverse data practices.
      • National Patient Management Portals, such as Ni-kshay in India, have incomplete and missing data on EPTB patients.

    Need to Prioritize Research and Development (R&D) for EPTB:

    • Need to understand the infection mechanism deeply: A troubling aspect of EPTB infection is the prolonged presence of disease markers even after the infection is resolved with treatment.
      • This phenomenon causes a lot of misery to persons with EPTB and is an active area of research.
    • Prioritize Advanced Immunological Tools: Advanced Immunological Tools such as single-cell RNA sequencing, will be able to uncover the immune mechanisms for the disease.
      • This will also help physicians to understand the treatment better, instead of going for long-duration anti-TB therapy (sometimes for even two years or more).

    Mains PYQ: 

    Q Can overuse and free availability of antibiotics without a Doctor’s prescription, be contributors to the emergence of drug-resistant diseases in India? What are the available mechanisms for monitoring and control? Critically discuss the various issues involved.

  • NISAR Satellite will be able to monitor Tectonic Movements: ISRO chief

    Why in the News?

    The ISRO Chief has confirmed that the NISAR Satellite would be able to monitor the Tectonic Movements of Earth with high precision with a centimeter accuracy.

    • Originally planned for July, the NISAR launch may be delayed to October-November due to issues on the U.S. spacecraft side.

    About NISAR Satellite:

    • NISAR (NASA-ISRO Synthetic Aperture Radar) is a joint satellite mission between NASA and ISRO.
    • It would be a Low Earth Orbit observatory.
    • This mission is aimed at enhancing our understanding of Earth’s natural processes and environmental changes.

    Features of NISAR Satellite:

    • L-band and S-band Radar Frequencies:
        • NASA is responsible for the L-band radar, while ISRO provides the S-band radar.
        • This dual-band capability allows the satellite to monitor and measure Earth’s surface with high precision in all weather conditions and throughout both day and night.
    • Large Deployable Antenna: 
        • It is equipped with a large deployable antenna that measures 12 meters in diameter.
        • This large antenna enhances the satellite’s ability to capture detailed radar images with high resolution.
        • It will have a 39-foot stationary antenna reflector, made of a gold-plated wire mesh to focus radar signals emitted and received by the upward-facing feed on the instrument structure.
    • Rapid Coverage: 
        • NISAR is designed to scan the entire Earth every 12 days.
        • This rapid revisiting is crucial for observing and understanding temporal changes in the environment, such as shifting vegetation patterns, ice dynamics, and other critical parameters.
    • Versatile Monitoring Capabilities: 
      • It will monitor Earth’s ecosystems and dynamics, including forest biomass, ice sheet collapses, and natural hazards such as earthquakes, tsunamis, and volcanic eruptions.
      • Its radar system can penetrate vegetation and soil to provide three-dimensional reconstructions of structures and changes.

    PYQ:

    [2015] The term ‘IndARC’ sometimes seen in the news, is the name of?

    (a) An indigenously developed radar system inducted into Indian Defence.

    (b) India’s satellite to provide services to the countries of Indian Ocean Rim.

    (c) A scientific establishment set up by India in Antarctic region.

    (d) India’s underwater observatory to scientifically study the Arctic region.

  • [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

  • AI Content Detectors to Combat Deepfakes

    Why in the News?

    During the General Elections 2024, the proliferation of AI-generated content (AIGC), including deepfake videos featuring prominent figures like Aamir Khan and Ranveer Singh, raised concerns about misinformation.

    What is Deepfake Technology?

    • It is a type of Artificial Intelligence used to create convincing images, audio and video hoaxes. Deepfakes often transform existing source content where one person is swapped for another.
    • Creating such content involves a technique known as Generative Adversarial Networks (GANs), comprising Artificial Neural Networks.

    Legal Safeguards in India:

    • The regulations under the IT Act of 2000 and 2021 requires social media intermediaries to promptly remove deepfake content. Failure to do so may result in imprisonment or fines.
      • Section 66D: It penalizes individuals for cheating through personation using communication devices or computer resources. (Imprisonment for up to 3 yrs and a fine of up to 1 lakh rupees)
      • Rule 3(1)(b)(vii): This rule mandates that social media intermediaries prevent the hosting of content impersonating others.
      • Rule 3(2)(b): This rule requires social media platforms to remove such content within 24 hours of receiving a complaint.

    Significance of Deepfake Technology:

    • Promotes Right to Expression: Deepfakes amplify voices of marginalised individuals, enabling them to share important messages. Recently, a video was created to deliver the final message of a journalist killed by the Saudi government, calling for justice.
    • Can contribute to the Education System: Online educators use deepfakes to bring historical figures to life for engaging lessons. For example, a video of Abraham Lincoln delivering his Gettysburg.
    • Provides Autonomy: Deepfakes empower individuals to control their digital identity and explore new forms of self-expression. For instance, the Reface App.
    • Provides a realistic experience: Artists leverage deepfakes for creative expression and collaboration, as seen in Salvador Dali’s interactive museum promotion. Deepfake tech enables realistic lip-syncing for actors speaking different languages, enhancing global accessibility and immersion in films.
    • Renovating old memories: Deepfakes aid in restoring old photos, enhancing low-quality footage, and creating realistic training materials for public safety.

    What are the limitations of Deepfake Technology?

    • Spreading False Information: Deepfakes can purposefully spread misinformation, influencing public opinion or elections, like the videos of politicians/celebrities can manipulate viewers and create confusion about important issues.
    • Frauds: Deepfake technology enables impersonation for financial frauds, tricking individuals into revealing sensitive information. They can also fuel harassment, especially targeting women, and lead to psychological distress.
    • Accuracy: While no AI detector guarantees 100% accuracy, tools like Originality.ai boast a 99% true positive rate. Detection models report probability scores, allowing for nuanced assessments despite inherent uncertainties.

    Future Scope:

    • Adversarial AI: Keeping pace with evolving generative AI models poses a significant challenge for content detectors.
    • Accessibility and Cost: With increased adoption and advancements, the accessibility and affordability of detection tools are expected to improve.

    PYQ:

    With the present state of development, Artificial Intelligence can effectively do which of the following? (2020)

    1.       Bring down electricity consumption in industrial units

    2.       Create meaningful short stories and songs

    3.       Disease diagnosis

    4.       Text-to-Speech Conversion

    5.       Wireless transmission of electrical energy

    Select the correct answer using the code given below:

    (a) 1, 2, 3 and 5 only

    (b) 1, 3 and 4 only

    (c) 2, 4 and 5 only

    (d) 1, 2, 3, 4 and 5

  • GPT-4o: A Free AI Model with Vision, Text, and Voice

    Why in the News?

    • OpenAI has launched GPT-4o- a version of the GPT-4 model which powers its ChatGPT.
    • It offers enhanced speed, intelligence, and efficiency across text, vision, and audio, revolutionizing human-to-machine interaction and opening up new possibilities for users worldwide.

    About GPT-4o:

    • GPT-4o offers GPT- 4 level intelligence with improved speed and efficiency, making human-to-machine interaction more natural and seamless.(focuses on emotional aspects)
    • It integrates transcription, intelligence, and text-to-speech functionalities seamlessly, eliminating latency and enhancing voice mode capabilities.

    Features of GPT-4o

    • Free Access for All: Previously available only to paid users, GPT-4o now provides advanced tools to all users, unlocking over a million GPTs from the GPT store and expanding possibilities for developers.
    • Multilingual and Vision Capabilities: GPT-4o supports over 50 languages and includes vision capabilities, enabling users to upload photos, documents, and access real-time information during conversations.
    • Real-time Conversations: It is able to understand user emotions and provide emotive styles of conversation in real-time.
    • Vision and Coding Support: GPT-4o can solve complex math problems, assist with coding queries, interpret complex charts, and analyze facial expressions in real-time.
    • Translation and Efficiency: GPT-4o offers live real-time translation capabilities and is two times faster, 50% cheaper, and offers 5 times higher rate limits compared to GPT-4 Turbo.

    PYQ:

    [2020] With the present state of development, Artificial Intelligence can effectively do which of the following?

    1. Bring down electricity consumption in industrial units
    2. Create meaningful short stories and songs
    3. Disease diagnosis
    4. Text-to-Speech Conversion
    5. Wireless transmission of electrical energy

    Select the correct answer using the code given below:

    (a) 1, 2, 3 and 5 only

    (b) 1, 3 and 4 only

    (c) 2, 4 and 5 only

    (d) 1, 2, 3, 4 and 5

  • Preserving Rajasthan’s Semal Trees 

    Why in the News?

    Despite its ecological importance, rampant harvesting of Semal Trees for bonfires poses a grave threat to their existence, undermining biodiversity and cultural heritage alike.

    About Semal/ Silk Cotton Trees

    • The Semal tree, scientifically known as Bombax ceiba, is a deciduous tropical tree.
    • It is native to India, South-East Asia, and Northern Australia.
    • It can grow up to 60 meters tall. It has a distinctive straight trunk, often with spiky thorns, and a wide, spreading canopy.
    • It produces vivid red flowers that are large and attractive, making it quite conspicuous when in bloom.
    • The fruit of the Semal tree is a capsule that contains several seeds surrounded by a fibrous, cotton-like substance which is wind-dispersed.

    Commercial Uses

    • The fibers extracted from the fruit, known as kapok, are used for stuffing pillows, mattresses, and life jackets due to their buoyancy and insulating properties.
    • The wood is soft and is often used for making paper, while in rural areas, it is used as fuelwood and for making cheap furniture.

    Ecological Significance

    • Members of tribal communities consume the tree’s reddish root for food during the monsoons.
    • Larvae of the moth Bucculatrix crateracma feed on its leaves.
    • The golden-crowned sparrow weaves the lining of its nests with white cotton from its seeds.

    Felling of a Semal Tree: Which laws are violated?

    1. Rajasthan Forest Act 1953: This act prohibits various activities in reserved forests without prior permission. Specifically, it bars any unauthorized person from felling, uprooting, damaging, or otherwise harming trees. Violating these prohibitions can lead to penalties including imprisonment, fines, or both, depending on the severity of the offence. Semal tree is not recorded in the state’s list of ‘rare, threatened, and endangered’ species. (Trees on this list enjoy priority conservation efforts.) (Indian Kanoon)​
    2. Forest (Conservation) Act 1980: This act is more comprehensive at the national level and was enacted to provide for the conservation of forests and to regulate deforestation. It requires that any non-forest use of forest land must have prior approval from the Central Government. This includes clearances for felling trees, which are only granted under specific conditions that ensure the conservation and sustainable use of forest resources.​ (UNEPLawEnvAssistantPlat)​

    PYQ:

    [2015] In India, in which one of the following types of forests is teak a dominant tree species?

    (a) Tropical moist deciduous forest

    (b) Tropical rainforest

    (c) Tropical thorn scrub forest

    (d) Temperate forest with grasslands

  • [pib] Exercise Shakti

    Why in the news?

    The 7th edition of the India-France Joint Military Exercise SHAKTI begins at Umroi, Meghalaya, signalling the start of a biennial training event aimed at enhancing bilateral military cooperation.

    About Exercise Shakti

    • Shakti Exercise is a joint military exercise between the armies of India and France.
    • It is a biennial training event conducted alternatively in India and France
    • It started in 2011, and since then, the armies of both countries have undertaken it to promote defence cooperation and interoperability.
    • Objectives:
    1. To bolster joint military capabilities for multi-domain operations in a sub-conventional scenario under Chapter VII of the United Nations Mandate.
    2. To operate in semi-urban and mountainous terrain, focusing on achieving a high degree of physical fitness and refining tactical drills.

    Major Defence Exercise between India and France:

    • Garuda: It is the joint air exercise between the Indian Air Force and the French Air and Space Force.
    • Varuna: It is the joint naval exercise between the Indian Navy and the French Navy.
    • Desert Knight-21: It was a bilateral air exercise conducted by the Indian Air Force and the French Air and Space Force at Air Force Station Jodhpur from January 20-24, 2021. It was unique as it involved the fielding of Rafale aircraft by both sides.
    • FRINJEX: It was the maiden joint military exercise between the Indian Army and the French Army conducted at Pangode Military Station, Thiruvananthapuram, Kerala on March 7-8, 2023.

     

    Tap to read more about:

    Various Defence Exercises in News

  • 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.