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GS Paper: GS3

  • The new restriction on Personal Computers/laptop imports: Why the move, and its potential impact

    What’s the news?

    • The central government has placed restrictions on the import of laptops, tablets, and computers with immediate effect. As per the notification, the import would be allowed under a valid license for restricted imports.

    Central Idea

    • India has imposed restrictions on the import of personal computers, laptops, and other IT hardware from China to promote domestic manufacturing and reduce dependence on Chinese imports. This move is part of the government’s efforts to boost the electronics sector and strengthen India’s self-reliance in the production of IT hardware.

    What does the notification for the restriction on imports state?

    • Restricted Categories: The notification restricts the import of personal computers, laptops, palmtops, automatic data processing machines, microcomputers and processors, and large or mainframe computers falling under the HSN code 8471.
    • Import Against a Valid License: Imports of laptops, tablets, all-in-one personal computers, and ultra-small form factor computers and servers under HSN 8741 will be allowed only against a valid license for restricted imports.
    • Exemption for Research and Development: The government has granted exemption from import licenses for imports up to 20 items per consignment used for research and development, testing, benchmarking, evaluation, repair and re-export, and product development purposes. However, these imports can only be used for the stated purposes and not for sale.
    • Exemption for Repair and Return: The license for restricted imports is not required for the repair and return of goods that were repaired abroad, as per the Foreign Trade Policy.

    China’s Dominance in IT Hardware Imports

    • Increase in Electronic Goods Imports:
    • India has witnessed a significant increase in imports of electronic goods and laptops/computers in recent years.
    • During the April-June quarter, the import of electronic goods surged to $6.96 billion, accounting for 4–7 percent of the overall imports.
    • Dominance in the Personal Computers Category:
    • Among the seven categories of restricted imports, China holds a substantial share in the personal computer segment, which includes laptops and palmtops.
    • In the April-May period, imports of personal computers from China amounted to $558.36 million, representing roughly 70–80 percent of India’s total imports in this category.
    • Surge in imports from China:
    • While there was a decline in imports from China in the previous financial year, it is crucial to address the sharp surge in imports in the two preceding years (2021–22 and 2020–21).
    • In 2021–22, imports of personal computers and laptops from China saw a year-on-year increase of 51.5 percent, amounting to $5.34 billion.
    • Similarly, in 2020–21, there was a significant year-on-year increase of 44.7 percent, with imports totaling $3.52 billion.

    Reasons behind the restrictions

    • Boosting Domestic Production: India aims to strengthen its domestic production capabilities in the electronics sector. By restricting imports, the government wants to push companies to manufacture these goods locally in India.
    • Reducing Reliance on China: India has seen a significant increase in imports of electronic goods and laptops/computers from China in recent years. By imposing restrictions, India intends to reduce its reliance on Chinese imports and diversify its sources of electronic products.
    • Supporting the PLI Scheme: The move is seen as a direct boost to the Center’s production-linked incentive (PLI) scheme for IT hardware. The restrictions aim to encourage companies to participate in the scheme and invest in local production.
    • Addressing Trade Imbalance: India has faced a trade imbalance in the electronics sector with China. By limiting imports, India aims to address this imbalance and potentially improve its trade position.
    • Strengthening the Domestic Electronics Industry: The restriction is part of India’s broader strategy to develop and strengthen its electronics manufacturing sector. By promoting domestic production, India seeks to create job opportunities and enhance its industrial capabilities.

    Conclusion

    • India’s decision to restrict IT hardware imports from China aims to reduce import reliance on a single country. With the right incentives and measures in place, this restriction could pave the way for a robust and competitive domestic IT hardware industry in India.

  • Vivad se Vishwas II Scheme launched

    vivaad se vishwas

    Central Idea

    • The Centre has launched the Vivad se Vishwas II scheme, a one-time settlement scheme, to effectively resolve pending contractual disputes with vendors or suppliers to the government and its undertakings.

    Vivad se Vishwas II Scheme

    • The scheme was announced in the Union Budget 2023-24.
    • It aims to settle government and government undertakings’ contractual disputes wherein arbitral awards are challenged in courts.
    • The Vivad Se Vishwas I scheme was announced under Union Budget 2020 to reduce ongoing legal disputes under direct taxation.
    • Around 150,000 cases were resolved with the recovery of about 54 per cent of the amount under litigation.
    • The scheme was started in March 2020, and closed on March 31, 2021.

    Key details about the Scheme

    • Deadline and Guidelines: The scheme sets an October 31 deadline for firms to submit their claims for consideration. The Department of Expenditure had earlier issued guidelines for its operation in late May.
    • Eligibility: The scheme applies to domestic contractual disputes where one of the parties is either the Government of India or an organization working under its control.
    • Cut-off Dates: To be considered for settlement, an arbitral award must have been secured by the aggrieved party by January 31, 2023, while the cut-off date for court orders is set at April 30.
    • Graded Settlement Terms: The scheme offers graded settlement terms based on the pendency level of the disputes. For cases involving court awards, the settlement amount offered to the contractor can be up to 85% of the net amount awarded or upheld by the court. For arbitral awards, the threshold is “up to” 65% of the net amount.
    • Processing and Registration: Eligible claims shall be processed only through the Government e-Marketplace (GeM), which has developed a dedicated web-page for implementing this scheme. For Ministry of Railways’ contractors, claims can be registered on the Indian Railways E-Procurement System.

     

  • Law passed allowing Auction, Mining of Lithium Reserves

    Central Idea

    • The Union Cabinet approved amendments to the Mines and Minerals (Development and Regulation) Act to allow commercial mining of lithium and five more minerals.
    • This move is aimed at increasing the exploration and mining of these valuable resources from newly discovered mines by opening them to private sector participation.

    Mining of Critical Minerals

    • Minerals Removed from Atomic Minerals List: The law removes lithium, beryllium, titanium, niobium, tantalum and zirconium from the list of atomic minerals, which previously restricted their exploration and mining to state-run companies only.
    • Private Sector Participation: With the removal of these minerals from the atomic minerals list, private companies can now participate in the exploration and mining processes.

    Why such move?

    • New Lithium Reserves in J&K: Earlier this year, lithium reserves were discovered in the federally administered region of Jammu and Kashmir. The government plans to find more reserves later this year.
    • Expected Increase in Exploration and Mining: The government expects a significant increase in the exploration and mining activities of these minerals across the country due to private sector involvement.

    Significance of Private Sector Involvement

    • Force Multiplier: The involvement of private companies is seen as a “force multiplier” as it is expected to boost the production of these critical minerals, meeting the growing demands of the country.
    • Increased Production Capacity: The participation of private players is likely to lead to increased production capacity, enabling India to meet the rising demand for electric vehicle batteries and other industrial applications.

    Need for Vigorous Exploration and Production

    • Meeting Growing Demands: India’s increasing focus on electric vehicles and other technological advancements necessitates a robust supply of critical minerals. Vigorous exploration and production are crucial to fulfill the country’s requirements.

    Conclusion

    • The passage of the law by India’s Parliament marks a significant step towards increasing the exploration and mining of critical minerals, including lithium, for electric vehicle batteries and other industrial applications.
    • By allowing private sector participation, the government aims to bolster the production capacity and meet the growing demands of the country, ensuring a sustainable and technologically advanced future.

    Also read:

    Discovery of Lithium Deposits in J&K

  • Room Temperature Superconductivity

    superconductivity

    Central Idea

    • Recently, two South Korean researchers sparked excitement in the physics community by claiming to have achieved Superconductivity at room temperature.
    • They claim to have developed a lead-based compound exhibiting superconducting properties at normal room temperature and pressure (NTP) conditions.

    NTP (Normal Temperature and Pressure):

    Normal Temperature: Defined as 20 degrees Celsius (20°C) or 293.15 Kelvin (K).

    Normal Pressure: Defined as 1 atmosphere (atm) or 101.325 kilopascals (kPa), which is the same pressure as STP.

    NTP is another standard set of conditions used for specific applications, but it is less commonly used than STP.

    STP (Standard Temperature and Pressure):

    Standard Temperature: Defined as 0 degrees Celsius (0°C) or 273.15 Kelvin (K). At this temperature, the average kinetic energy of gas molecules is minimal.

    Standard Pressure: Defined as 1 atmosphere (atm) or 101.325 kilopascals (kPa). This is the average atmospheric pressure at sea level.

    STP is often used to express gas properties and perform calculations under uniform conditions to allow for meaningful comparisons between different gases or processes.

    What is Superconductivity?

    • Zero Resistance: Superconductivity occurs when a material offers almost zero resistance to the flow of electric current, enabling energy-efficient electrical appliances and lossless power transmission.
    • Magnetic Behavior: Superconductors also display fascinating behavior under magnetic fields, enabling technologies like MRI machines and superfast Maglev trains.

    Exploring the Material LK-99

    • Apatite Structure: The Korean group utilized copper-substituted lead apatite, a phosphate mineral with unique tetrahedral motifs, to create LK-99.
    • Superconducting Behavior: LK-99 displayed essential superconducting properties, with almost zero resistance to current flow and sudden emergence of resistance above a critical current threshold.
    • Magnetic Resilience: LK-99 retained superconductivity even under the presence of a magnetic field until reaching a critical threshold.

    Current Superconductors and Their Limitations

    • Earlier Discoveries: In the 1980s, scientists found copper oxide materials exhibiting superconductivity above -240°C. Subsequent research yielded limited success in achieving higher temperatures.
    • Extreme Conditions: Existing superconductors operate at extremely low temperatures, often below -250°C, close to absolute zero (-273°C).
    • Critical Temperatures: Materials like Mercury, Lead, and Aluminum, Tin, and Niobium exhibit superconductivity at critical temperatures just above absolute zero.
    • High-Temperature Superconductors: Some materials, labelled ‘high-temperature’ superconductors, display superconducting properties below -150°C.

    Scientific Community’s Response

    • Cautious Optimism: The scientific community responded cautiously to the claims of LK-99’s room-temperature superconductivity, given previous controversies and unverified claims.
    • Technical Errors: Some data in the research papers raised questions and were deemed “sloppy” or “fishy” by independent scientists.
    • Replication Efforts: Numerous research groups worldwide are attempting to reproduce the results to validate the claim.
    • Mixed Perspectives: The authors’ unwavering confidence in their work contrasts with certain aspects of the research that appear hurried or contentious.

    Conclusion

    • The search for room-temperature superconductors represents a holy grail in science, promising immense rewards and recognition.
    • Although the recent claim by South Korean researchers has captured attention, it awaits rigorous validation.

  • IoT & SMART technology threats from China: Pathways for India’s military

    What’s the news?

    • Chinese software technologies and applications that were once widespread are now facing bans and restrictions worldwide due to data leaks, vulnerabilities, and national security risks.

    Central Idea

    • While many countries have taken action against Chinese applications, there still exists a concerning lack of clarity on the security risks posed by SMART products with Chinese data sensors, components, and modules. In the context of India’s military establishment, these risks can have significant ramifications.

    What is SMART technology?

    • SMART technology is a term used to describe devices and systems that have advanced capabilities, connectivity, and the ability to gather and analyze data to make intelligent decisions or respond to user commands.
    • SMART technology is an integral part of the broader concept of the Internet of Things (IoT), where everyday objects and devices are connected to the internet and can communicate with each other and with users.
    • SMART technology enhances convenience, efficiency, and automation in various aspects of daily life.

    Common examples of SMART technology

    • SMART Home Devices: Devices like SMART thermostats, SMART lighting systems, SMART speakers (e.g., Amazon Echo, Google Home), and SMART security cameras that can be controlled remotely via a smartphone or voice commands.
    • SMART Wearables: Fitness trackers, SMART watches, and other wearable devices that monitor health metrics and activities and sync the data with smartphones or computers.
    • SMART Appliances: SMART refrigerators, washing machines, and ovens that can be controlled and monitored through apps on smartphones.
    • SMART Cars: Automobiles equipped with advanced sensors and connectivity that can provide real-time navigation, diagnostics, and safety features.

    Growing Adoption of SMART Technology

    • Increasing Popularity: SMART technology is gaining popularity in various residential and office spaces in India.
    • Diverse SMART Products: SMART CCTVs, air conditioners, refrigerators, coffee machines, printers, bulbs, and more are among the diverse SMART products being adopted.
    • Remote Operation: These SMART devices offer remote operation and adaptability to user preferences.
    • IoT Sector Growth: The IoT sector in India is projected to reach a turnover of US$1.1 billion by 2023, with significant growth observed in the market for IoT products (264 percent increase in Q2 2022).

    Security Concerns with SMART Technology

    • Ambiguity in Bans: Despite bans on Chinese applications and technology in various countries (UK, US, New Zealand, India), concerns persist regarding SMART products with Chinese data sensors, components, and modules.
    • Dependency on Chinese Components: Even SMART products manufactured in the West rely on China for critical data sensors, modules, and transmitters.
    • Backend Dependency: Chinese servers often handle data storage and software upgrades for SMART products, creating potential security vulnerabilities.
    • Data Transmission Risks: SMART devices could be susceptible to data transmission back to China through embedded backdoors and listening channels.
    • UK Report Findings: A report in the UK raised alarms about the potential use of Chinese SMART components to track officials, stifle industrial activity, and harvest sensitive military information.

    Addressing Security Concerns in India’s Military Establishments

    • Formalizing Security Plans: India’s military needs to formalize strategies to address security concerns related to SMART technologies.
    • Categorizing Vulnerable Devices: Analyzing and categorizing SMART products used in non-technical, non-operational military spaces for potential bans on devices relaying information to China.
    • Thorough Vetting for New Implementations: Any new software or technologies implemented in military areas must undergo strict vetting for links with China, irrespective of their origin.
    • Coherent and Institutionalized Approach: Adopting a coherent and institutionalized approach will enable proactive prevention of data leaks and breaches through SMART technologies and IoT with Chinese linkages, ensuring the safeguarding of sensitive military information.

    Conclusion

    • India’s military must adopt a coherent and institutionalized approach to prevent data leaks and breaches. Ignoring this reality could leave the country’s military vulnerable to significant security threats. By addressing the risks and establishing robust security measures, India can safeguard its national security and protect sensitive military information from falling into the wrong hands.

  • In news: New GI Tags Awards

    Central Idea

    • The Geographical Indications Registry in Chennai recently granted the prestigious Geographical Indication (GI) tag to many distinctive products from across India.

    GI Tags for Rajasthani Crafts

    • Udaipur Koftgari Metal Craft: This traditional craft involves ornamenting weapons with intricate designs, gold and silver wire embedding, and polishing. The process results in exquisite and finely crafted metalware.
    • Bikaner Kashidakari Craft: Traditional craftspeople from the Meghwal community in Bikaner and nearby districts create this craft on cotton, silk, or velvet. The intricate fine stitches and mirror-work are mainly used for marriage-related objects and are believed to ward off the ‘evil eye.’
    • Jodhpur Bandhej Craft: Known for its vibrant and colorful appeal, Bandhej is an ancient Rajasthani art of tying and dyeing textiles. The fabrics, including muslin, silk, and voile, are tied with cotton thread before dyeing.
    • Bikaner Usta Kala Craft: Also known as gold nakashi or gold manauti work, this craft is characterized by the use of untreated raw camel hide. The skilled Dapgar community of leather craftspeople meticulously processes and molds the leather to create durable and golden-hued products.

    Other GI Tagged Products

    • Jalesar Dhatu Shilp (Uttar Pradesh): This craft from Jalesar in Uttar Pradesh’s Etah district involves making decorative metal craft and brassware, including ghungrus (anklets) and ghantis (bells). The Thatheras community, residing in the Hathuras locality, is responsible for creating these beautiful metal products.
    • Goa Mankurad Mango (Goa): Also known as malcorada, cardozo mankurad, corado, and Goa mankur, this variety of mango was granted a GI tag. The All Goa Mango Growers Association filed the application for this mango, which holds historical significance with its Portuguese-inspired name.
    • Goan Bebinca (Goa): Known as the ‘queen of Goan desserts,’ Bebinca is a traditional Indo-Portuguese pudding. The All Goa Bakers and Confectioners Association filed the application for the GI tag.
    • Kanniyakumari Matti banana (TN): It is a banana variety grown in the Kanniyakumari district of Tamil Nadu, India. It is known for its unique sweet taste and small size. It is cultivated in the southernmost part of India, and its retail market value has increased. The variety is in high demand, especially in the Thiruvananthapuram region of Kerala, where it is exported to Gulf countries. The banana is used in the making of “panchamirtham.”

    Back2Basics: Geographical Indication (GI)

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • The tag stands valid for 10 years.

  • CERT-IN warns against Akira Ransomware

    akira ransomware

    Central Idea

    • The Computer Emergency Response Team of India (CERT-In) issued a warning about the Akira ransomware, a highly dangerous cyber threat that has been wreaking havoc on corporate networks worldwide.

    What is the Akira Ransomware?

    • Encryption and Data Theft: Akira ransomware encrypts sensitive data on targeted devices and appends the “akira” extension to filenames, making the files inaccessible to users.
    • Shadow Volume Deletion: The ransomware deletes Windows Shadow Volume copies, hindering data recovery options for affected organizations.
    • Ransom Demands: The ransomware operators extort victims by demanding a double ransom for decryption and recovery, threatening to leak sensitive data on their dark web blog if payment is not made.

    Infection and Working Mechanism

    • Spread Methods: Akira ransomware is primarily distributed through spear-phishing emails with malicious attachments, drive-by downloads, and specially crafted web links. It also exploits insecure Remote Desktop connections to infiltrate systems.
    • Selective Encryption: The ransomware avoids encrypting specific system folders to maintain system stability.
    • Negotiation Process: Each victim is given a unique negotiation password to communicate with the ransomware gang via the threat actor’s Tor site.

    Major targets

    • Corporate Networks: Akira ransomware targets corporate networks across various sectors, including education, finance, real estate, manufacturing, and consulting.
    • Data Exfiltration: In addition to encryption, the threat actors steal sensitive corporate data, using it as leverage in their extortion attempts.

    Protective Measures against Akira Ransomware

    • Regular Backups: Maintain up-to-date offline backups to ensure data recovery in case of an attack.
    • System Updates: Regularly update operating systems and networks, and implement virtual patching for legacy systems.
    • Email Authentication: Establish Domain-based Message Authentication, Reporting, and Conformance (DMARC), Domain Keys Identified Mail (DKIM), and Sender Policy Framework (SPF) to prevent email spoofing and spam.
    • Strong Authentication: Enforce strong password policies and multi-factor authentication (MFA) to secure user accounts.
    • Data Encryption: Implement data-at-rest and data-in-transit encryption to protect sensitive information.
    • Attachment Blocking: Block suspicious attachment file types like .exe, .pif, or .url to prevent malicious downloads.
    • Security Audits: Conduct regular security audits, especially for critical networks and database servers, to identify vulnerabilities.

  • Hybrid EVs: A Viable Path to Net-Zero Mobility

    ev hybrid net-zero

    Central Idea

    • The global transition towards net-zero emissions is a critical aspect of combating climate change, and electric vehicles (EVs) play a pivotal role in this endeavour.
    • In economically developing countries, hybrid EVs offer a significant opportunity to kickstart the transition, considering challenges related to power generation, grid capacity, and fast-charging infrastructure.

    Understanding Net-Zero for Vehicles

    • “Net-zero for vehicles” refers to the concept of achieving carbon neutrality or net-zero carbon emissions in the transportation sector.
    • This goal involves reducing the overall carbon footprint of vehicles to balance the emissions they produce with equivalent carbon removal or offsetting measures.

    Achieving Net-Zero for Vehicles:

    • Decarbonization of Vehicles: This includes transitioning from conventional internal combustion engines (ICE) that rely on fossil fuels to electric vehicles (EVs) that run on electricity generated from renewable energy sources.
    • Electrification: This involves increasing the adoption of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) that produce zero tailpipe emissions when operating on electricity.
    • Renewable Energy Integration: To ensure that EVs are truly net-zero, the electricity used to charge them must come from renewable energy sources such as solar, wind, hydro, and geothermal power.
    • Sustainable Fuels: For certain types of vehicles that may not be easily electrifiable, such as heavy-duty trucks and aviation, the use of sustainable fuels can play a role in achieving net-zero emissions.
    • Infrastructure Development: Building and expanding charging infrastructure for electric vehicles is essential to support the widespread adoption of EVs.
    • Carbon Offsetting: Carbon offsetting involves supporting projects that remove or reduce an equivalent amount of carbon dioxide from the atmosphere, such as afforestation, reforestation, or renewable energy projects.
    • Policy Support: Incentives, subsidies, emissions standards, and carbon pricing mechanisms can encourage consumers and industries to adopt cleaner transportation options.

    Types of Electric Vehicles

    • Electric Vehicle (EV): Any vehicle using an electric drivetrain powered by a portable electrical energy source.
    • Hybrid EV: Combines an internal combustion engine (ICE) with an electrical generator to produce electricity. It utilizes a small battery (1-5kWh) as an energy buffer but cannot be charged from the grid.
    • Full EV: Also known as a battery EV or plug-in EV, it lacks an ICE, resulting in no tailpipe emissions. It has a larger battery (20-120 kWh) charged solely from the grid.
    • Plug-in Hybrid EV: A hybrid EV with a larger battery (5-15 kWh) that can be charged from the grid, operating in full electric mode as long as there is energy in the battery.
    • Fuel-Cell EV: Utilizes a fuel cell and a small battery buffer to produce electricity for the drivetrain.

    Fuel Economy and Emissions of Hybrid and Fully Electric EVs

    • Hybrid EVs: With the combination of an ICE, generator, and battery, hybrid EVs exhibit 1.5-2x higher fuel economy than conventional ICE vehicles in city driving and 1-1.5x higher in highway driving.
    • Plug-in Hybrid EVs: Combine the advantages of hybrid and full EVs, covering 80-90% of short commutes in fully electric mode with 3-4x higher fuel economy than conventional vehicles.
    • Life-Cycle Emissions: A comprehensive index considering well-to-wheel emissions, vehicle, and battery production, maintenance, and end-of-life recycling. Full EVs result in 19-34% lower emissions for sedans and 38-49% for SUVs compared to conventional vehicles, even with fossil-fuel-dominated energy mix in India.

    Challenges in Transitioning to Electric Mobility

    • Fast-Charging Infrastructure: Successful transition requires fast-charging infrastructure along highways to alleviate range anxiety and encourage full EV adoption.
    • Grid Access and Reliability: Many regions lack access to a reliable grid, posing challenges for slow and fast-charging capabilities.
    • Vehicle Costs: Mass-market EV prices are much lower in economically developing countries, hindering widespread adoption due to high battery costs.

    Hybrid and Plug-in Hybrid EVs: Decarbonizing the Interim

    • Hybrid EVs present an opportunity to lower emissions until full EVs become viable options in the long term.
    • Plug-in hybrids, with their all-electric range, offer many benefits, reducing fuel costs, emissions, and oil imports.
    • Regenerative braking and engine start-stop mechanisms improve fuel economy in hybrid EVs.
    • Hybrid cars’ purchase price is only slightly higher than conventional vehicles, irrespective of the vehicle range.

    Conclusion

    • Hybrid Electric Vehicles serve as a bridge to the net-zero future, offering a practical and efficient solution for economically developing countries.
    • While full EVs are the ultimate goal, the adoption of hybrid and plug-in hybrid EVs can significantly reduce emissions and fuel costs in the interim.
    • A coordinated effort to address infrastructure challenges and enhance grid reliability will pave the way for a sustainable transition towards a net-zero mobility landscape powered by renewable energy sources.

  • Centre publishes Draft National Deep Tech Startup Policy

    deep tech

    Central Idea

    • The office of the Principal Scientific Adviser to the Government released a draft National Deep Tech Startup Policy (NDTSP) for public feedback.

    What is Deep Technology?

    • Deep Tech refers to advanced and sophisticated technologies that have a significant impact on various industries.
    • These technologies are complex, innovation-driven, and often require interdisciplinary collaboration.
    • Examples include AI, robotics, nanotechnology, quantum computing, biotechnology, and renewable energy solutions.
    • Deep Tech has the potential to revolutionize existing processes and address global challenges.

    About National Deep Tech Startup Policy (NDTSP)

    • The policy aims to secure India’s position in the global deep tech value chain, with a focus on areas such as semiconductors, Artificial Intelligence (AI), and space tech.
    • It aims to bolster research and development in deep tech startups, streamline intellectual property regimes, provide financing support, and promote the growth of these startups through various measures.

    Key objectives:

    • Focus on Fundamental and Technical Problems: The NDTSP emphasizes support for deep tech startups focusing on fundamental and technical challenges rather than just commercializing existing technologies.
    • Financing Support: The policy addresses the critical financing needs of deep tech startups, especially during the pre-market phase when they introduce their products or ideas.
    • Streamlined Intellectual Property Regime: The policy aims to simplify the intellectual property landscape for deep tech startups to encourage innovation without undue complexities.
    • Ease of Regulatory Compliance: The NDTSP proposes measures to ease regulatory requirements for deep tech startups, creating a conducive environment for their growth.
    • Commercialization Support: The policy suggests providing assistance and resources to effectively manage and commercialize technologies developed by deep tech startups.

    Measures to Promote Deep Tech Startups

    • Export Promotion Board: The NDTSP recommends creating an Export Promotion Board to facilitate Indian deep tech startups’ entry into foreign markets.
    • Coordinated Oversight: To streamline the deep tech ecosystem, the policy recommends establishing an “Inter-Ministerial Deep Tech Committee” to review and coordinate requirements effectively.
    • International Collaboration and Market Access: The policy promotes strategic international collaborations and partnerships to enhance market access for Indian deep tech startups globally.
    • Defense and Space Sector Focus: The NDTSP specifically targets deep tech startups in defense and space sectors, aiming to enhance their contributions to national security and space exploration.

    Attracting Global Talent and Expertise

    • Networking Opportunities: The policy advocates providing networking opportunities to international deep-tech startups and experts interested in contributing to India’s local ecosystem.
    • Resource-Intensive Approaches: The NDTSP emphasizes resource-intensive measures to attract global talent, strengthening India’s deep tech capabilities.
    • Visa and Immigration Facilitation: The policy proposes simplifying visa and immigration processes to attract foreign experts and investors to support the growth of deep tech startups.

    Need for such policy

    • 1997 Information Technology Agreement-I: The policy restates the government’s disappointment with international agreements, particularly the Information Technology Agreement-I. As an ITA participant, India made commitments to eliminate tariffs on a wide range of IT products.
    • Multi-pronged Approach: The NDTSP advocates a coordinated, comprehensive strategy to engage with international partners and multilateral institutions to foster a supportive global environment for India’s deep tech ecosystem.
    • Global Advocacy and Trade Policy Alignment: The policy emphasizes global advocacy to align trade policies with the interests of India’s deep tech startups, fostering a supportive international trade environment.

    Conclusion

    • The NDTSP aims to position India as a leader in the global deep tech value chain.
    • Public feedback on the draft policy will further refine and strengthen India’s approach to deep tech entrepreneurship.

    Back2Basics: Information Technology Agreement-I

    • ITA-I is a multilateral trade agreement that aims to eliminate tariffs and trade barriers on a wide range of information technology (IT) products.
    • It was negotiated under the auspices of the World Trade Organization (WTO) and came into effect on July 1, 1997.

    Key Points about ITA:

    1. Objective: By removing tariffs and trade barriers, the agreement aims to encourage the development and adoption of IT products and services worldwide.
    2. Product Coverage: The ITA covers a broad range of IT products, including computers, computer peripherals, telecommunications equipment, semiconductors, software, and other IT-related goods.
    3. Participants: Over time, the number of participants has expanded, and as of my knowledge cutoff in September 2021, it included more than 80 WTO member countries.
    4. Binding Commitments: Once a country joins the ITA, its tariff removal commitments become legally binding under the WTO framework.
    5. Non-Tariff Barriers: While the ITA focuses on eliminating tariffs, it does not directly address non-tariff barriers to trade, such as regulatory barriers or technical requirements.

  • MSP as a legal right: Pros and Cons

    What’s the news?

    • For years, farmers have been demanding a legal guarantee of the minimum support price (MSP), calculated according to the Swaminathan Commission formula.

    Central idea

    • The significance of MSP lies in its role in maintaining agricultural viability and preventing farmers from falling into debt and bankruptcy. However, the current MSP system falls short of its objectives, leaving most farmers without much-needed support. This op-ed emphasizes the need for a farmer-centric agricultural policy and a radical shift in approach to secure MSP with a legal guarantee.

    Minimum support price (MSP)

    • MSP is the price at which the government procures crops directly from farmers. It is calculated to be at least one-and-a-half times the cost of production incurred by the farmers.
    • The MSP serves as a minimum guaranteed price for specific crops that the government considers remunerative and deserving of support for farmers.

    Agriculture’s Role in the National Economy

    • Employment and Livelihood: Agriculture is the largest source of employment and livelihood for about 50 percent of the country’s population, especially in rural areas. It provides direct and indirect employment for millions of people.
    • Contribution to GDP: Agriculture contributes around 17–18 percent to India’s Gross Domestic Product (GDP). Although the share of agriculture in the overall GDP has been declining over the years due to the growth of other sectors, it remains a crucial component of the economy.
    • Food Security: The agricultural sector plays a critical role in ensuring food security for the nation. By producing a variety of food crops like rice, wheat, pulses, fruits, and vegetables, it caters to the dietary needs of the population and helps manage food inflation.
    • Source of Raw Materials: Agriculture is the primary source of raw materials for various industries, including textiles, sugar, jute, and vegetable oil. It provides the necessary inputs for industrial production, contributing to the overall industrial growth of the country.
    • Export Earnings: Agricultural exports, such as rice, spices, tea, coffee, and cotton, generate foreign exchange earnings for the country. This helps improve the balance of trade and supports economic growth.
    • Rural Development: The growth of agriculture has a significant impact on rural development. It improves rural infrastructure, raises the standard of living, and creates opportunities for the development of allied industries and services in rural areas.
    • Poverty Alleviation: Agriculture remains an essential tool in poverty alleviation as it provides income and employment opportunities to the rural population, which is often more susceptible to poverty.

    Important role of MSP

    • Ensuring Income Security: MSP provides a minimum guaranteed price for farmers’ produce. It protects them from price fluctuations and market risks, ensuring a stable income for their efforts and investment in farming.
    • Preventing Distress Sales: With MSP in place, farmers are less likely to resort to distress sales of their crops during times of market downturns.
    • Encouraging Crop Diversification: The MSP system covers a range of crops, including cereals, pulses, oil seeds, and more. By providing a remunerative price for diverse crops, it encourages farmers to adopt crop diversification, contributing to agricultural sustainability and food security.
    • Government Procurement: MSP sets a benchmark for government procurement of crops. The government procures crops at MSP through various agencies like FCI and state agencies, thereby supporting farmers and maintaining buffer stocks for food distribution.
    • Addressing Regional Imbalances: MSP implementation considers regional variations in production costs and helps bridge the income gap between farmers in different regions. It addresses regional imbalances and ensures equitable growth in the agriculture sector.

    Inadequacies of the MSP

    • Limited Coverage: The current MSP system leaves the majority of farmers without much-needed support. Only around 6% of farmers in the country benefit from MSP, while the remaining face challenges in accessing remunerative prices for their produce.
    • Debt and Bankruptcy: Despite MSP being introduced as a safety net, farmers still struggle with debt and bankruptcy. The average debt burden on a farmer’s family is over Rs 1 lakh, despite the subsidies provided by the government.
    • Natural Disasters and Market Risks: Farmers remain vulnerable to natural disasters and market forces, making their income uncertain and apprehensive. Climate change adds complexity to farming, and farmers cannot be left at the mercy of such unpredictable factors.
    • Insufficient Market Regulation: Middlemen exploit farmers, leading to a significant difference between the price at which farmers sell their produce and the price at which consumers buy the same produce. This lack of market regulation affects farmers’ income adversely.
    • Inadequate MSP Calculation: The MSP calculation method may not fully reflect the input costs, market trends, and other economic factors, leading to an ineffective MSP for farmers.
    • Rising Debt: The outstanding loan on farmers has increased significantly over the years, indicating the insufficiency of MSP and minimal increases in support prices.

    Swaminathan Commission Recommendations

    • Calculation of MSP: The Swaminathan Commission recommended that MSP be calculated by adding 50 percent profit to the C2 cost (comprehensive cost including imputed value of family labor) for crops. This method takes into account various input costs incurred by farmers, including labor, seeds, fertilizers, and other expenses.
    • Expanded Coverage: The Commission suggested expanding the scope of MSP to cover a wide range of agricultural produce, including crops like ginger, garlic, turmeric, chili, and all agricultural produce and horticulture.

    The Call for a Legal Guarantee of MSP

    • Addressing Rising Debts: The outstanding loan to farmers has significantly increased over the years, reaching Rs 23.44 lakh crore in 2021–22. Legalizing MSP would offer a sustainable solution, reducing farmers’ dependence on debt.
    • Fulfilling Promises: A legal guarantee makes MSP a binding obligation, ensuring farmers receive the promised prices for their crops and avoiding selling at lower rates.
    • Empowering Farmers: Legalized MSP enhances farmers’ bargaining power and enables informed decisions in cropping and marketing.
    • Supporting Sustainable Agriculture: MSP legislation promotes sustainable agriculture, diversification, and resilience against climate change.
    • Promoting Farmer-Centric Policy: A Legal Guarantee of MSP emphasizes a farmer-centric approach, safeguarding their rights, interests, and livelihoods.

    Way forward

    • Reforming Agribusiness and Ensuring Fair Compensation:
      1. Promote farmer producer organizations (FPO’s) and cooperatives.
      2. Facilitate direct market access to reduce dependence on intermediaries.
    • Adhering to the Swaminathan Commission’s Guidelines:
      1. Follow the MSP calculation as per the Swaminathan Commission’s recommendations.
      2. Consider comprehensive costs, including labor and input expenses.
    • Promoting Sustainable Agriculture Practices:
      1. Encourage the adoption of sustainable farming practices and climate-resilient crop varieties.
      2. Invest in agricultural research and extension services for modern technologies.
    • Ensuring Access to Credit and Insurance:
      1. Strengthen credit facilities for farmers.
      2. Provide insurance coverage to manage risks effectively.
    • Investing in Rural Infrastructure:
      1. Improve irrigation facilities, storage, and transportation networks.
      2. Reduce post-harvest losses and improve market access.
    • Promoting Agro-tourism and Direct Marketing:
      1. Encourage agro-tourism for additional income.
      2. Establish farmers’ markets and e-commerce platforms for direct marketing.

    Conclusion

    • The demand for a legal guarantee of MSP is a just and crucial step towards safeguarding the livelihoods of farmers. Providing farmers with a dignified life is not just a moral obligation but an economic imperative, as the growth of the agricultural sector directly impacts the nation’s prosperity.