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GS Paper: GS3

  • Four-day workweek: Analysis

    Four-day workweek

    Central Idea

    • Much is being made about the major breakthrough in one of the largest-ever experiments with a four-day workweek in Britain. Sixty-one companies were part of the six-month trial and 56 of them have opted to continue with the program, while 18 have made it permanent. 4 Day Week Global trial, overseen by Autonomy, aimed to improve work-life balance by allowing workers to work four days instead of five with the same salary and workload.

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    Advantages of implementing a four-day workweek

    • Improved Work-life balance: Having a positive work-life balance can also allow professionals to adopt a better attitude about their work, as they can return to their jobs well-rested. This can help employees remain productive and enthusiastic while working.
    • Increased job satisfaction: With more free time, employees may feel more satisfied with their jobs and be more engaged at work.
    • Reduced absenteeism and turnover: Offering a four-day workweek could make companies more attractive to potential employees, and employees may be less likely to miss work or leave their jobs if they have a better work-life balance.
    • Increased productivity: Some studies have shown that shorter workweeks can actually boost productivity, as employees may be more focused and efficient during their work hours.
    • Positive environmental impact: Working four days per week decreases the number of times a professional commute to work. This is helpful to the environment, as most vehicles produce emissions that can harm the environment.

    Four-day workweek

    Potential disadvantages

    • Limited impact: The benefits of a four-day workweek may be limited in certain industries or job types, such as those that require shift work or have strict deadlines.
    • Increased workload: Employees may feel pressure to complete the same amount of work in fewer hours, resulting in an increased workload and potential burnout.
    • Reduced productivity: Some employees may find it difficult to maintain focus and productivity over longer workdays. This could lead to a decrease in overall output and quality of work.
    • Impact on customer service: If businesses are closed for an extra day each week, it may be more difficult to provide customer service or maintain consistent operating hours.
    • Reduced income: With a shorter workweek, employees may see a reduction in their pay, which could be a disadvantage for those who rely on their income to cover living expenses.

    Examples of companies/organizations considering a four-day workweek

    • Microsoft Japan: In 2019, the tech giant conducted a trial where employees worked a four-day week and saw a 40% increase in productivity.
    • Iceland: A number of companies and organizations in Iceland have experimented with shorter workweeks, including the country’s government, which is exploring a four-day workweek for public servants.
    • New Zealand: Unilever New Zealand recently announced it would be trialing a four-day workweek for all of its employees, while the country’s prime minister, Jacinda Ardern, has previously spoken in favor of the idea.
    • Spain: The government of Spain has proposed a three-year trial of a four-day workweek, with the goal of improving work-life balance and boosting productivity.

    Four-day workweek

    Feasibility of Four-day workweek in India’s context

    • Will require a careful analysis: The feasibility and impact of a four-day workweek in India would depend on various factors such as industry type, workforce demographics, and cultural norms. Implementing a four-day workweek in India would require careful analysis of various factors.
    • For instance: With the rise of remote work and the increased focus on work-life balance four day week option could be helpful to enhance productivity with improved work life balance in corporate sector.
    • Complex regulations: India’s labour laws and regulations are complex and provide significant protections for workers. Any changes to work arrangements, including a four-day workweek, would need to comply with these laws and ensure that employees’ rights and benefits are protected.
    • For example: Any reduction in working hours would need to be accompanied by appropriate compensation and benefits to ensure that employees do not suffer financial losses.
    • Specific needs of industries: The feasibility of a four-day workweek would depend on the specific needs of different industries.
    • For instance: While some knowledge-based sectors may be well-suited to a four-day workweek, industries that require continuous operations or shift work, such as manufacturing or healthcare, may face significant challenges in implementing a shorter workweek.

    Conclusion

    • It’s important to carefully consider the potential advantages and disadvantages of a four-day workweek before implementing it in any workplace. The impact may vary depending on the specific work arrangements and the needs of the employees and customers.

  • UPI: Internationalization of Digital Payments

    UPI

    Central Idea

    • On Tuesday, the Union government unveiled India’s first cross-border real-time payments systems linkage, with the Unified Payments Interface (UPI) connecting with Singapore’s PayNow payment system.

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    What is Unified Payments Interface (UPI)

    • UPI is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
    • It eliminates the risk of sharing bank account details by the remitter.
    • UPI supports both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments and it also enables a user to send or receive money.

    What is PayNow?

    • It is a fast payment system in Singapore.
    • It enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore.
    • It allows users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore National Registration Identity Card (NRIC)/Foreign Identification Number (FIN), or VPA.

    UPI

    Overview: Remarkable success of UPI

    • Changed the landscape of electronic payments: The introduction of UPI in 2016-17 led to a dramatic change in the electronic payments landscape of the country.
    • Instrumental in dramatic growth of digital payments: Along with the JAM trinity of Jan Dhan, Aadhaar and mobile phones, this payment architecture has been instrumental in facilitating the dramatic growth of digital payments in the country, aided by a conducive regulatory framework.
    • Value and volume increasing day by day: Over the years, various reports by the RBI have documented the significant increase in digital payments transactions in the country, with per person digital transactions growing both in terms of value and volume.
    • Dramatic surge during the pandemic: Contactless payments also witnessed a surge during the pandemic. In fact, as per another study, roughly one-third of households surveyed had transacted digitally for the first time during the lockdown.
    • Statistics for instance:
    1. In January 2023, roughly 8 billion transactions were carried out on the UPI platform, whose value touched almost Rs 13 lakh crore.
    2. In comparison, in January 2020, just prior to the pandemic, 1.3 billion transactions were routed through the UPI platform, which touched Rs 2.1 lakh crore in value.
    • Aided in accelerating financial inclusion: The convenience of real-time transfer of payments, the zero-cost framework for users, the rapid expansion in the acceptance touch-points, have encouraged its widespread adoption. This has also aided in accelerating financial inclusion by providing access to financial services at low cost.

    Did you know? “UPI Lite”

    • UPI Lite is a on device wallet feature similar to the ones seen on popular digital payment apps such as Paytm, Freecharge, MobiKwik and others.
    • The feature will allow you to make faster near real-time small value payments without internet connection via the money added in the wallet.
    • In phase one, UPI Lite will process transactions in near offline mode i.e. debit offline and credit online, and at a later point, UPI Lite will process transactions in complete offline mode i.e. debit and credit both offline.

    UPI

    All you need to know about UPI-PayNow interlinkage facility

    • How is the interlinkage benefit users?
    1. With this facility, funds held in bank accounts or e-wallets can be transferred to /from India using just the UPI ID, mobile number, or Virtual Payment Address (VPA), which is essentially the address to or through which you can make UPI money transfers.
    2. With this payment facility, both inward and outward remittances will happen instantly.
    • Who can undertake remittance transactions through this facility: Account holders of participating banks and financial institutions in India and Singapore.
    • Participating banks in India and Singapore:
    1. Banks from India are Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank and State Bank of India (SBI). Going forward, the UPI-PayNow interlinkage will cover more banks and financial institutions.
    2. From Singapore, DBS Bank Singapore and Liquid Group (Non-Bank Financial Institution) are selected.
    3. Popular payment platforms such as PhonePe and Google Pay have been excluded from the ambit of this framework. Perhaps, over time, these platforms will also be brought under this framework, aiding in its widespread adoption.
    • The daily transaction limit:
    1. Banks in India have not communicated about any restrictions on transfers yet.
    2. It is Rs 60,000 (around SGD 1,000). Initially, DBS customers can use PayNow-UPI only to transfer funds up to SGD 200 per transaction, capped at SGD 500 per day.
    3. There is no such communication about capping for transferring funds through Liquid Group (Non-Bank Financial Institution) to India.

    UPI

    Conclusion

    • The UPI-PayNow interlinkage is a milestone moment for cross-border transfers. Not only India but the world has witnessed how UPI revolutionized the landscape of domestic digital payment infrastructure. With this encouraging development we are now going to see a similar revolution in the cross-border payments space as well. This internationalization of the digital payments architecture, will help bring down both the cost and the time associated with such transfers, bringing benefits to migrant workers, students, and professionals, among others.

    Mains Question

    Q. Recently India launched its first cross-border real-time payments systems linkage with Singapore. In this light highlight Discuss remarkable success of UPI and prospect of internationalization of UPI.

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  • India’s Rich Biodiversity Needs Science Based Implementation

    Biodiversity

    Central Idea

    • The sum and variation of our biological wealth, known as biodiversity, is essential to the future of this planet. India currently hosts 17% of the planet’s human population and 17% of the global area in biodiversity hotspots, placing it at the helm to guide the planet in becoming biodiversity champions.

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    What is 30×30 pledge?

    • The importance of our planet’s biodiversity was strongly articulated at the United Nations Biodiversity Conference in Montreal, Canada.
    • On December 19, 2022, 188 country representatives adopted an agreement to halt and reverse biodiversity loss by conserving 30% of the world’s land and 30% of the world’s oceans by 2030, known as the 30×30 pledge.

    Government’s efforts, Programs with potential

    • Green Growth push in Budget: The Union Budget 2023 mentioned Green Growth as one of the seven priorities or Saptarishis. The emphasis on green growth is welcome news for India’s biological wealth as the country is facing serious losses of natural assets such as soils, land, water, and biodiversity.
    • Green India Mission: The National Mission for a Green India aims to increase forest cover on degraded lands and protect existing forested lands.
    • Green Credit Programme: The Green Credit Programme has the objective to incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies.
    • The MISHTI Program: The Mangrove Initiative for Shoreline Habitats & Tangible Incomes (MISHTI) is particularly significant because of the extraordinary importance of mangroves and coastal ecosystems in mitigating climate change.
    • PM-PRANAM: The Prime Minister Programme for Restoration, Awareness, Nourishment, and Amelioration of Mother Earth (PM-PRANAM) for reducing inputs of synthetic fertilizers and pesticides is critical for sustaining our agriculture.
    • Amrit Dharohar scheme: The Amrit Dharohar scheme is expected to encourage optimal use of wetlands, and enhance biodiversity, carbon stock, eco-tourism opportunities and income generation for local communities. If implemented in letter and spirit, Amrit Dharohar, with its emphasis on sustainability by balancing competing demands, will benefit aquatic biodiversity and ecosystem services.
    • For instance: The recent intervention by the Ministry of Environment, Forest and Climate Change to stop the draining of Haiderpur, a Ramsar wetland in Uttar Pradesh, to safeguard migratory waterfowl is encouraging.

    Programs must be science-based

    • Evidence-based implementation: It is critical that these programs respond to the current state of the country’s biodiversity with evidence-based implementation.
    • A science-based and inclusive monitoring programme: A science-based and inclusive monitoring programme is critical not only for the success of these efforts but also for documentation and distillation of lessons learnt for replication, nationally as well as globally.
    • Employing modern concepts of sustainability: New missions and programmes should effectively use modern concepts of sustainability and valuation of ecosystems that consider ecological, cultural, and sociological aspects of our biological wealth.
    • Setting clear boundaries and priorities: With clear system boundaries, prioritisation of the benefits to resource people, and fund-services (rather than stock-flows) as the economic foundation for generating value has enormous potential for multiple sustainable bio-economies.
    • Efficient water use patterns: The future of our wetland ecosystems will depend on how we are able to sustain ecological flows through reduction in water use in key sectors such as agriculture by encouraging changes to less-water intensive crops such as millets as well as investments in water recycling in urban areas using a combination of grey and blue-green infrastructure.
    • Focus must be on ecological restoration: As far as the Green India Mission is concerned, implementation should focus on ecological restoration rather than tree plantation and choose sites where it can contribute to ecological connectivity in landscapes fragmented by linear infrastructure.
    • Choices should be made on evidences of resilience: Choice of species and density should be informed by available knowledge and evidence on resilience under emerging climate change and synergies and trade-offs with respect to hydrologic services.
    • Careful site selection for mangrove initiative: Site selection should also be carefully considered for the mangrove initiative with a greater emphasis on diversity of mangrove species with retention of the integrity of coastal mud-flats and salt pans themselves, as they too are important for biodiversity.
    • Effort in response: In response to these needs, we hope that the National Mission on Biodiversity and Human Wellbeing (Mission to green India’s economy, restore natural capital, and make India a global leader in applied biodiversity science) already approved by PM-STIAC, will be immediately launched by the government.

    Did you know?

    Grey and Blue-Green Infrastructure

    • Grey infrastructure: It refers to traditional man-made infrastructure, such as buildings, roads, and bridges, that are designed to provide human-made services like transportation, water supply, and waste management.
    • Blue-green infrastructure: It is designed to mimic the functions of natural ecosystems, such as wetlands, rivers, and forests, to provide services like stormwater management, water purification, and carbon sequestration.
    • Example: It includes, Rainwater harvesting systems that capture rainwater and recharge groundwater, green roofs that provide insulation and absorb rainwater, Urban parks and green spaces that improve air quality and provide habitat for wildlife, Wetlands and retention ponds that filter pollutants and store excess water during floods
    • Sustainable and resilient: Blue-green infrastructure is often seen as a more sustainable and resilient alternative to traditional grey infrastructure, as it can help to mitigate the impacts of climate change, reduce urban heat island effects, and enhance the quality of life for urban residents

    Prime Minister’s Science, Technology, and Innovation Advisory Council (PM-STIAC):

    • PM-STIAC is a high-level advisory body that provides strategic guidance on science, technology, and innovation to the Prime Minister of India.
    • Advises the Indian Prime Minister on science and technology policy, identifying emerging areas, recommending missions and projects, and enhancing the effectiveness of science and technology to tackle national challenges.
    • The council comprises eminent scientists, technologists, entrepreneurs, and policymakers who are appointed by the Prime Minister.
    • PM-STIAC also serves as a forum for stakeholders from academia, industry, and government to interact and collaborate on science and technology initiatives.

    Local community involvement

    • Efforts must be inclusive: Each of these efforts must be inclusive of local and nomadic communities where these initiatives will be implemented.
    • Traditional practices should be integrated: Traditional knowledge and practices of these communities should be integrated into the implementation plans.

    Conclusion

    • Each of the above-mentioned programs has the potential to greatly improve the state of our nation’s biodiversity if their implementation is based on the latest scientific and ecological knowledge.

    Mains Question

    Q. What is 30×30 pledge? Discuss some of the key programs taken by the government to promote green growth and biodiversity conservation.

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  • What is Angel Tax?

    angel

    Central idea: The article provides an overview of the angel tax provisions in the Finance Bill, which were introduced in the Budget. It highlights the concerns raised by the start-up community regarding the impact of these provisions on their operations.

    Angel Investment

    • An angel investor is an individual who provides financial backing to early-stage startups or entrepreneurs, typically in exchange for equity in the company.
    • Angel investors are typically high-net-worth individuals who invest their own personal funds, rather than investing on behalf of a firm or institution.
    • Features of Angel Investing:
    1. Early-stage funding
    2. Equity investment
    3. High-risk, high-reward
    4. Active involvement
    5. Personal investment
    6. Flexible terms
    7. Shorter investment horizon

     

    What is Angel Tax?

    • Referred to as Angel Tax, this rule is described in Section 56(2)(viib) of the Income Tax Act, 1961.
    • Essentially it’s a tax on capital receipts, unique to India in the global context.
    • This clause was inserted into the act in 2012 to prevent laundering of black money, round-tripping via investments with a large premium into unlisted companies.
    • The tax covers investment in any private business entity, but only in 2016 was it applied to startups.

    Why was angel tax introduced?

    • The complicated nature of VC fundraising with offshore entities, multiple limited partners and blind pools is contentious.
    • There has been some element of money laundering or round-tripping under guise.

    Details of its levy

    • The Angel Tax is being levied on startups at 9% on net investments in excess of the fair market value.
    • For angel investors, the amount of investment that exceeds the fair market value can be claimed for a 100% tax exemption.
    • However, the investor must have a net worth of ₹2 crores or an income of more than ₹25 Lakh in the past 3 fiscal years.

    Startups under scrutiny

    • As more and more new-age tech startups started raising VC funding, they came under the IT department scrutiny.
    • These funding deals often saw investors paying a premium above the face value or the fair market value of securities, and therefore were taxed as income for the startup.
    • Between 2016 and 2019, startups urged the government to add exceptions that would allow them to be exempt from the Angel Tax.

    Which startups are exempted?

    • There is a clear provision that says that start-ups which are recognized by DPIIT are out of the proposal’s purview.
    • The start-up recognition process is also very simple where any applicant gets it automatically.
    • However, the key condition for exemption is that the aggregate amount of paid up share capital and share premium of the startup after issue or proposed issue of share does not exceed INR 25 Cr.

    Concerns raised by startup

    • Compliance burden: Even beyond the issue of taxation, the compliance burden on startups will potentially increase significantly under the new rules.
    • Persisting slowdown: The timing of this potential tax is most worrying since it coincides with the ongoing startup funding slowdown.
    • Fear of off-shoring: Entrepreneurs and investors are concerned that applying strict taxes on capital receipts without adequate exceptions will lead to startups moving overseas.

    Back2Basics: Startups in India

    • Startups are young companies founded to develop a unique product or service, bring it to market and make it irresistible and irreplaceable for customers.
    • In India, start-up should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership.
    • Turnover should be less than INR 100 Crores in any of the previous fiscal years.
    • An entity shall be considered a Start-up up to 10 years from the date of its incorporation.
    • The Start-up should be working towards innovation/ improvement of existing products, services, and processes and should have the potential to generate employment/ create wealth.
    • An entity formed by splitting up or reconstruction of an existing business shall not be considered a “Startup”.

     

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  • ‘HD 3226’ Wheat can beat the heat

    wheat

    Scientists at the Indian Council of Agricultural Research (ICAR) have developed a new variety of wheat ‘HD 3226’ that can withstand high temperatures.

    HD 3226 Wheat

    • The wheat, known as “HD 3226”, has been developed specifically for cultivation in the northwest region of India, where temperatures can reach up to 42 degrees Celsius.
    • It took 10 years for ICAR to develop this variety.
    • It has been specifically developed for cultivation in the northwest region of India.

    Features of HD 3226 Wheat

    • More resilient to heat stress: The HD 3226 wheat variety is reportedly more resilient to heat stress than other varieties of wheat.
    • Higher yields: The HD 3226 wheat variety can produce up to 12-15% higher yields in high-temperature conditions.

    Significance

    • The development of this new wheat variety is particularly important given the increasing frequency of heatwaves in the region due to climate change.
    • With rising temperatures, it is becoming more challenging for farmers to grow crops.

    Government approval and availability

    • The HD 3226 wheat variety has now been submitted to the Indian government for approval.
    • Once approved, it is expected to be available to farmers in the coming years.

     

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  • India, Singapore launch UPI-PayNow Linkage

    upi

    India’s Unified Payments Interface (UPI) and Singapore’s PayNow were officially connected to allow a “real-time payment linkage”.

    What are UPI and PayNow?

    [A] Unified Payments Interface (UPI)

    • UPI is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
    • It eliminates the risk of sharing bank account details by the remitter.
    • UPI supports both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments and it also enables a user to send or receive money.

    [B] PayNow

    • It is a fast payment system in Singapore.
    • It enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore.
    • It allows users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore National Registration Identity Card (NRIC)/Foreign Identification Number (FIN), or VPA.

    What is the UPI-PayNow linkage?

    • Cross-border retail payments are generally less transparent and more expensive than domestic transactions.
    • The project to link both the fast payment systems was initiated in September 2021 to facilitate faster, more efficient and transparent cross-border transactions relating to trade, travel and remittances between the two countries.

    Significance of the integration

    • Enhanced cross-border transactions: The integration will enable easier cross-border transactions between India and Singapore, reducing the need for intermediaries and associated costs.
    • Easier remittances: The integration will make it easier for Indian workers in Singapore to send money back home to their families.
    • Boost to trade and investment: The integration will facilitate smoother transactions between businesses in the two countries, potentially increasing trade and investment.
    • Strengthening of diplomatic ties: The integration is expected to improve diplomatic ties between India and Singapore.

    How the integration works?

    • The integration is made possible through the use of standardized QR codes.
    • The QR codes will allow users to transfer funds between the two systems in real-time, without the need for intermediaries.

    Implications for the future

    • More integrations: The success of the UPI-PayNow integration could pave the way for similar integrations between other countries.
    • Increased use of digital payments: The integration is expected to encourage the adoption of digital payments in both India and Singapore, potentially reducing the use of cash.

     

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  • Antimicrobial Resistance (AMR): An Invisible Pandemic

    AMR

    Central Idea

    • While the world is emerging from the acute phase of the COVID-19 pandemic, the very harmful but invisible pandemic of Antimicrobial Resistance (AMR) is unfortunately here to stay. Most countries understood in 2020 the clear and present danger of COVID-19, forcing governments, including India’s, to respond with speed and accuracy. The rapidly rising AMR rates also need an accelerated, multi-sectoral, global and national response.

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    AMR

    What is Antimicrobial Resistance (AMR)?

    • Antimicrobial resistance (AMR) is a natural phenomenon that occurs when microorganisms such as bacteria, viruses, fungi, and parasites evolve to become resistant to antimicrobial drugs such as antibiotics, antivirals, antifungals, and antiparasitics that were previously effective in treating infections caused by those microorganisms.

    The Threat of Antimicrobial Resistance

    • Human deaths: In 2019, AMR caused approximately 4.95 million human deaths worldwide, highlighting the urgency of addressing this issue.
    • Report by OECD: A 2018 report by the Organisation for Economic Co-operation and Development warned that the world could experience a significant rise in resistance to second and third-line antibiotics by 2030.
    • Resistance increases by 5% to 10% every year: A 2022 study by the Indian Council of Medical Research (ICMR) revealed that resistance to broad-spectrum antimicrobials increases by 5% to 10% every year.
    • High rate of resistance found in commonly used drugs: The Indian Network for Surveillance of Antimicrobial Resistance (INSAR) also found a high rate of resistance to commonly used drugs such as ciprofloxacin, gentamicin, co-trimoxazole, erythromycin, and clindamycin, underscoring the importance of taking steps to combat AMR.
    • High levels of resistance: WHO has increasingly expressed concern about the dangerously high levels of antibiotic resistance among patients across countries.
    • For example: Ciprofloxacin, an antibiotic commonly used to treat urinary tract infections. According to WHO, resistance to ciprofloxacin varied from 8.4% to 92.9% for Escherichia coli (E. coli) and from 4.1% to 79.4% for Klebsiella pneumoniae (a bacteria that can cause life-threatening infections such as pneumonia and intensive care unit- related infections). The global epidemic of TB has been severely impacted by multidrug resistance patients have less than a 60% chance of recovery.
    • Adds burden to communicable disease: AMR adds to the burden of communicable diseases and strains the health systems of a country, making it even more challenging to address health crises.

    What is Muscat conference is about?

    • Ministerial Conference on AMR: Third Global High-Level Ministerial Conference on Antimicrobial Resistance (November 24-25, 2022) held in Muscat where over 30 countries adopted the Muscat Ministerial Manifesto on AMR.
    • The conference focused on three health targets:
    1. Reduce the total amount of antimicrobials used in the agri-food system at least by 30-50% by 2030;
    2. Eliminate use in animals and food production of antimicrobials that are medically important for human health;
    3. Ensure that by 2030 at least 60% of overall antibiotic consumption in humans is from the WHO Access group of antibiotics.
    • Muscat Manifesto:
    1. Need to accelerate One Health action: The manifesto recognised the need to accelerate political commitments in the implementation of One Health action for controlling the spread of AMR.
    2. Need to address the overall impact of AMR: It also recognised the need to address the impact of AMR not only on humans but also on animals, and in areas of environmental health, food security and economic growth and development.

    Government efforts so far

    • The National Action Plan on Antimicrobial Resistance (2017-21): The National Action Plan on AMR emphasised the effectiveness of the government’s initiatives for hand hygiene and sanitation programmes such as Swachh Bharat Abhiyan, Kayakalp and Swachh Swasth Sarvatra.
    • Increasing community awareness: The government has also attempted to increase community awareness about healthier and better food production practices, especially in the animal food industry.
    • Specific guidelines regarding use and limiting use of antibiotics: The National Health Policy 2017 also offered specific guidelines regarding use of antibiotics, limiting the use of antibiotics as over-the-counter medications and banning or restricting the use of antibiotics for growth promotion in livestock.
    • Called for scrutiny of antibiotic prescriptions: It also called for scrutiny of prescriptions to assess antibiotic usage in hospitals and among doctors.

    AMR

    Examples of Limiting AMR worldwide

    • Less use of Antimicrobials less likely resistance: Scientific evidence suggests that the less antimicrobials are used, it is less likely that there will be an emergence of drug resistance.
    • Netherlands and Thailand: Countries such as the Netherlands and Thailand have decreased their usage by almost 50%.
    • China: In China, the consumption of antibiotics in the agricultural sector has fallen substantially.

    Way ahead: India’s role

    • India committed to strengthen surveillance: India has committed to strengthening surveillance and promoting research on newer drugs.
    • GLASS: It also plans to strengthen private sector engagement and the reporting of data to the WHO Global Antimicrobial Resistance and Use Surveillance System (GLASS) and other standardised systems.

    AMR

    Conclusion

    • The various G-20 health summits spread through 2023 offer an opportunity for India to ensure that all aspects of AMR are addressed and countries commit to progress. As the current G-20 president, and as a country vulnerable to this silent pandemic, India’s role is critical in ensuring that AMR remains high on the global public health agenda.

    Mains question

    Q. In the backdrop of recently held Muscat Conference on AMR highlight the threats posed by AMR and Discuss India’s efforts in combating the silent pandemic.

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  • India plans to export Solar Power

    solar

    Central idea: The article states that the Ministry for New and Renewable Energy is working towards increasing the production of solar modules in the country, with the goal of making India a net exporter of solar modules by 2026.

    How can India be a net exporter of solar energy?

    • Increased manufacturing of PV modules: By 2026, Indian industry will be able to manufacture solar modules worth 100 gigawatts (GW) annually, and help the country be a net exporter of solar power.
    • Increased installation capacity: This would significantly aid India’s target of installing 500 GW of electricity capacity from non-fossil sources by 2030.

    Issues with solar power sector

    Ans. Reduced capacity

    • Slow pace: India had planned to install 175 GW of renewable energy by December 2022, including 100 GW of solar power, but has only achieved 122 GW, with solar power accounting for only 62 GW.
    • Huge cost: A key bottleneck has been the cost of solar modules (or panels).
    • Regressive import duties: While India has traditionally relied on China-made components such as poly-silicon wafers, necessary to make modules, higher customs duty on them has shrunk supply. This was done to make equivalent India-manufactured components more competitive.

    Motive behind export promotion

    • Surplus generation: India need about 30-40 GW for our domestic purposes annually and the rest can be used for export.
    • Manufacturing boost: PLI scheme for polysilicone manufacturing is in place are designed to encourage the manufacturers of ingots and wafers in India.

    What obstructs solar power growth in India?

    Ans. Land crunch

    • Apart from module prices, land acquisition has been a major challenge for solar power manufacturers.
    • Despite the Centre commissioning 57 large solar parks worth 40 GW in recent years, only 10 GW have been operationalized.
    • Installing a megawatt of solar power requires on average four acres of land. So various developers face challenges in acquiring it and that’s one reason for the delay.

    Various initiatives for solar energy in India

    • International Solar Alliance (ISA): India, along with France, launched the ISA in 2015, a global platform to promote the use of solar energy.
    • Solar Parks: The government has set up Solar Parks to provide land and infrastructure to developers for the installation of solar power projects.
    • Rooftop Solar Program: The government has launched a rooftop solar program to promote the installation of solar panels on rooftops of residential and commercial buildings.
    • Incentives and subsidies: The government has provided various incentives and subsidies to promote the adoption of solar energy, including tax exemptions, accelerated depreciation, and subsidies for capital costs.

    Way forward

    India has significant potential to become a major exporter of solar power. Here are some steps that can be taken to promote solar power export by India:

    • Increase domestic production: To promote solar power export, India needs to increase domestic production of solar panels and equipment. This can be achieved by providing incentives and subsidies to domestic manufacturers, reducing import duties on raw materials, and investing in research and development.
    • Focus on quality: Indian manufacturers need to focus on producing high-quality solar panels and equipment that can compete with products from other countries. The government can establish quality standards and certification programs to ensure that Indian-made products meet international quality standards.
    • Develop infrastructure: India needs to develop a robust infrastructure to support the export of solar power, including transportation, storage, and transmission facilities. The government can provide support for the development of this infrastructure, such as funding and regulatory support.
    • Partner with other countries: India can partner with other countries to promote the export of solar power. The International Solar Alliance, of which India is a founding member, can play a key role in this regard.
    • Expand market access: India needs to expand market access for its solar power products by signing trade agreements with other countries and participating in international exhibitions and events. The government can also provide support for Indian companies to participate in trade fairs and exhibitions abroad.

    By implementing these measures, India can promote the export of solar power and become a key player in the global solar energy market.

     

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  • Centre in final stages of notifying Emissions Trading Scheme

    After the passing of the Energy Conservation (Amendment) Bill last December, the Centre is now in the final stages of notifying an Emissions Trading Scheme (ETS).

    Emissions Trading Scheme (ETS)

    • India does not currently have a national Emissions Trading Scheme (ETS). However, there have been some efforts to introduce an ETS in the country.
    • In 2018, the Ministry of Environment, Forest and Climate Change (MoEFCC) released a draft of the National Clean Air Programme (NCAP).
    • It proposed the introduction of a market-based mechanism for reducing air pollution for the first time.
    • The mechanism was not explicitly called an ETS, but it was described as a “cap-and-trade system.”

    Successful example of Carbon Market: EU’s emissions trading system (ETS)

    • Under the EU’s ETS launched in 2005, member countries set a cap or limit for emissions in different sectors, such as power, oil, manufacturing, agriculture, and waste management.
    • This cap is determined as per the climate targets of countries and is lowered successively to reduce emissions.
    • Entities in this sector are issued annual allowances or permits by governments equal to the emissions they can generate.
    • If companies produce emissions beyond the capped amount, they have to purchase additional permit, either through official auctions or from companies.
    • This makes up the ‘trade’ part of cap-and-trade.

    How is carbon price determined?

    • The market price of carbon gets determined by market forces when purchasers and sellers trade in emissions allowances.
    • Notably, companies can also save up excess permits to use later.
    • Through this kind of carbon trading, companies can decide if it is more cost-efficient to employ clean energy technologies or to purchase additional allowances.
    • These markets may promote the reduction of energy use and encourage the shift to cleaner fuels.

    Other such examples

    • China launched the world’s largest ETS in 2021, estimated to cover around one-seventh of the global carbon emissions from the burning of fossil fuels.
    • Markets also operate or are under development in North America, Australia, Japan, South Korea, Switzerland, and New Zealand.

    Significance of Carbon Market

    • The World Bank estimates that trading in carbon credits could reduce the cost of implementing NDCs by more than half — by as much as $250 billion by 2030.
    • Last year, the value of global markets for tradable carbon allowances or permits grew by 164% to a record 760 billion euros ($851 billion).
    • The EU’s ETS contributed the most to this increase, accounting for 90% of the global value at 683 billion euros.
    • As for voluntary carbon markets, their current global value is comparatively smaller at $2 billion.

    What is the progress at UN?

    • The UN international carbon market envisioned in Article 6 of the Paris Agreement is yet to kick off as multilateral discussions are still underway about how the inter-country carbon market will function.
    • Under the proposed market, countries would be able to offset their emissions by buying credits generated by greenhouse gas-reducing projects in other countries.
    • In the past, developing countries, particularly India, China and Brazil, gained significantly from a similar carbon market under the Clean Development Mechanism (CDM) of the Kyoto Protocol, 1997.
    • India registered 1,703 projects under the CDM which is the second highest in the world.
    • But with the 2015 Paris Agreement, the global scenario changed as even developing countries had to set emission reduction targets.

    India’s efforts

    The new Bill empowers the Centre to specify a carbon credits trading scheme.

    • Issuance of credit certificates: Under the Bill, the central government or an authorised agency will issue carbon credit certificates to companies or even individuals registered and compliant with the scheme.
    • Tradable carbon credits: These carbon credit certificates will be tradeable in nature. Other persons would be able to buy carbon credit certificates on a voluntary basis.

    Existing mechanisms

    • Notably, two types of tradeable certificates are already issued in India-
    1. Renewable Energy Certificates (RECs) and
    2. Energy Savings Certificates (ESCs)
    • These are issued when companies use renewable energy or save energy, which are also activities which reduce carbon emissions.

    Lacunas of the bill

    • No clear mechanism: The Bill does not provide clarity on the mechanism to be used for the trading of carbon credit certificates— whether it will be like the cap-and-trade schemes or use another method— and who will regulate such trading.
    • Confusion over nodal agency: The right ministry to bring in a scheme of this nature, pointing out that while carbon market schemes in other jurisdictions like the US, UK are framed by their environment ministries, the Indian Bill was tabled by the power ministry instead of the MoEFCC.
    • Ambiguity over existing certificates: The Bill does not specify whether certificates under already existing schemes would also be interchangeable with carbon credit certificates and tradeable for reducing carbon emissions.
    • Overlapping: The question, thus, is whether all these certificates could be exchanged with each other. There are concerns about whether overlapping schemes may dilute the overall impact of carbon trading.

    Challenges to carbon markets

    • Double counting: of greenhouse gas reductions
    • Quality and authenticity: These parameters of climate projects that generate credits to poor market transparency
    • Greenwashing: Companies may buy credits, simply offsetting carbon footprints instead of reducing their overall emissions or investing in clean technologies.
    • Inefficiency: The IMF points out that including high emission-generating sectors under trading schemes to offset their emissions by buying allowances may immensely increase emissions on net.

    Way forward

    • Alignment with NDCs: The UNDP emphasizes that for carbon markets to be successful, emission reductions and removals must be real and aligned with the country’s NDCs.
    • Transparent financing: It says that there must be “transparency in the institutional and financial infrastructure for carbon market transactions”.

     

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  • Telangana’s Teja Chilli is hot property in many nations

    chilli

    The burgeoning demand for the popular Teja variety of red chilli, famous for its culinary, medicinal and other wide-ranging uses, in the export market is proving to be a boon for the Telangana Agriculture Market.

    Teja Chilli

    • Teja or S17 is one of the hottest varieties of red chillies produced in India. (GI tag not accorded yet.)
    • The chilli is known and liked across the country for its fierce hot flavor and rich aroma.
    • Southern India is the main region of Teja or S17 red chilli production.
    • It has a capsaicin content of 0.50-0.70% making it more pungent and spicy.
    • The huge demand for Oleoresin, a natural chilli extract, is mainly driving the export of Teja variety to various spice processing industries in several Asian countries.

    Where it is produced?

    • Khammam district is the largest producer of Teja variety of red chilli.
    • It is the leading exporter of the pungent fruit.
    • The Mudigonda-based Oleoresin extraction firm of a Chinese company is engaged in export of the by product to its clients.

    Trade significance of this chilli

    • Teja variety of red chilli is being exported to China, Bangladesh and a few other south Asian countries from Khammam mainly through the Chennai port.
    • The export of Teja variety of red chilli is expected to grow from the present ₹2000 crore per annum to ₹2500 crore next year.

     

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