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GS Paper: GS3

  • Indigenisation in defence technologies, manufacturing will ensure India’s strategic autonomy

    Context

    Given its successive abstentions during votes on Ukraine in the UN Security Council and elsewhere, New Delhi has attracted criticism and even reproach from many quarters. While India’s abstentions may be hard to justify on moral grounds, they are certainly rooted in “realpolitik”.

    Reasons for India’s stance

    • There is irrefutable logic in the argument that safeguarding the source of 60-70 per cent of its military hardware constitutes a prime national interest for India.
    • Any interruption in the supply of Russian arms or spares could have a devastating impact on our defence posture vis-à-vis the China-Pak axis.
    • Even after diversification of sources, India remains trapped in the Russian bear’s jaws, jeopardising the credibility of its “strategic autonomy”. 

    Implications of India’s position

    • The stance adopted by India has placed it amongst a minority of nations, alongside China and Pakistan.
    • Seen widely as pro-Russian, this posture is likely to affect India’s international standing and bears reflection.

    Suggestion

    • The answers to India’s agonising dilemma lie in two drastic imperatives, which must receive the closest attention of decision-makers. They are:
    • The “de-Russification of the armed forces” and the genuine “indigenisation of India’s defence technological and industrial base (DTIB)”.
    • Russia’s military-industrial complex, in oligarch hands, has been struggling against inefficiency, poor quality control and deficient customer support.
    •  It is time to initiate a process of progressive “de-Russification” of Indian armed forces; not to switch sources, but of becoming self-reliant.
    • It may be uplifting to see battle-tanks, warships and jet-fighters held up as examples of self-reliance, but what is never mentioned is that vital sub-systems like engines, guns, missiles, radars, fire-control computers, gear-boxes and transmission are either imported or assembled under foreign licences.
    • Atmanirbhart requires selective identification of vital military technologies in which we are deficient and demands the initiation of well-funded, time-bound, mission-mode projects to develop (or acquire) the “know-how” as well as “know-why” of these technologies.

    Conclusion

    Having failed for 75 years after independence to attain a degree of self-reliance in military hardware that would have undergirded our “strategic autonomy,” it is time for India to zero in on the reasons why we have failed, where peer-nations like China, South Korea, Israel, Taiwan and even Singapore have succeeded spectacularly.

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  • What is the NPPA’s role in fixing drug prices?

    Consumers may have to pay more for medicines and medical devices if the National Pharmaceutical Pricing Authority (NPPA) allows a price hike of over 10% in the drugs and devices listed under the National List of Essential Medicines (NLEM), this coming month.

    Who regulates Drugs prices?

    • The NPPA was set up in 1997 to fix/revise prices of controlled bulk drugs and formulations and to enforce price and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995-2013.
    • Its mandate is:
    1. To implement and enforce the provisions of the DPCO in accordance with the powers delegated to it
    2. To deal with all legal matters arising out of the decisions of the NPPA
    3. To monitor the availability of drugs, identify shortages and to take remedial steps
    • The NPPA is also mandated to collect/maintain data on production, exports and imports, market share of individual companies, profitability of companies etc., for bulk drugs and formulations and undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals.

    How does the pricing mechanism work?

    • Prices of Scheduled Drugs are allowed an increase each year by the drug regulator in line with the Wholesale Price Index (WPI) and the annual change is controlled and rarely crosses 5%.
    • But the pharmaceutical players pointed out that over the past few years, input costs have flared up.
    • The hike has been a long-standing demand by the pharma industry lobby.
    • All medicines under the NLEM are under price regulation.

    Do you know?

    As per the Drugs (Prices) Control Order 2013, scheduled drugs, about 15% of the pharma market, are allowed an increase by the government as per the WPI while the rest 85% are allowed an automatic increase of 10% every year.

    How are the prices determined?

    • The ceiling price of a scheduled drug is determined by first working out the simple average of price to retailer in respect of all branded and generic versions of that particular drug formulation.
    • It should have a market share of more than or equal to 1%, and then adding a notional retailer margin of 16% to it.
    • The ceiling price fixed/revised by the NPPA is notified in the Gazette of India (Extraordinary) from time to time.

    When are the prices revised?

    • Prices are revised when there is a rise in the price of bulk drugs, raw materials, cost of transport, freight rates, utilities like fuel, power, diesel, and changes in taxes and duties.
    • The cost rises for imported medicines with escalation in insurance and freight prices, and depreciation of the rupee.
    • The annual hike in the prices of drugs listed in the NLEM is based on the WPI.
    • The NLEM lists drugs used to treat fever, infection, heart disease, hypertension, anaemia etc and includes commonly used medicines like paracetamol, azithromycin etc.

    Why are inputs costs high?

    • One of the challenges is that 60%-70% of the country’s medicine needs are dependent on China.
    • WPI is dependent on price rise in a basket of a range of goods that are not directly linked with the items that go into the cost of medicines.

     

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  • Re-introducing African Cheetahs to India

    The cheetah, which became extinct in India after Independence, is all set to return with the Union Government launching an action plan in Kuno National Park in Madhya Pradesh.

    According to the plan, about 50 of these big cats will be introduced in the next five years, from the Africa savannas, home to cheetahs, an endangered species.

    Distribution of cheetahs in India

    • Historically, Asiatic cheetahs had a very wide distribution in India.
    • There are authentic reports of their occurrence from as far north as Punjab to Tirunelveli district in southern Tamil Nadu, from Gujarat and Rajasthan in the west to Bengal in the east.
    • Most of the records are from a belt extending from Gujarat passing through Maharashtra, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Jharkhand and Odisha.
    • There is also a cluster of reports from southern Maharashtra extending to parts of Karnataka, Telangana, Kerala and Tamil Nadu.
    • The distribution range of the cheetah was wide and spread all over the subcontinent. They occurred in substantial numbers.
    • The cheetah’s habitat was also diverse, favouring the more open habitats: scrub forests, dry grasslands, savannahs and other arid and semi-arid open habitats.

    What caused the extinction of cheetahs in India?

    • The major reasons for the extinction of the Asiatic cheetah in India:
    1. Reduced fecundity and high infant mortality in the wild
    2. Inability to breed in captivity
    3. Sport hunting and
    4. Bounty killings
    • It is reported that the Mughal Emperor Akbar had kept 1,000 cheetahs in his menagerie and collected as many as 9,000 cats during his half century reign from 1556 to 1605.
    • The cheetah numbers were fast depleting by the end of the 18th century even though their prey base and habitat survived till much later.
    • It is recorded that the last cheetahs were shot in India in 1947, but there are credible reports of sightings of the cat till about 1967.

    Conservation objectives for their re-introduction

    • Based on the available evidence it is difficult to conclude that the decision to introduce the African cheetah in India is based on science.
    • Science is being used as a legitimising tool for what seems to be a politically influenced conservation goal.
    • This also in turn sidelines conservation priorities, an order of the Supreme Court, socio-economic constraints and academic rigour.
    • The issue calls for an open and informed debate.

    What is the officially stated goal?

    • To establish viable cheetah meta-population in India that allows the cheetah to perform its functional role as a top predator
    • To provide space for the expansion of the cheetah within its historical range thereby contributing to its global conservation efforts

    Issues in re-introduction

    • Experts find it difficult whether the African cheetahs would find the sanctuary a favorable climate as far as the abundance of prey is concerned.
    • The habitat of cheetahs needed to support a genetically viable population.

    Back2Basics: Asiatic Cheetah

    • Cheetah, the world’s fastest land animal was declared extinct in India in 1952.
    • The Asiatic cheetah is classified as a “critically endangered” species by the IUCN Red List, and is believed to survive only in Iran.
    • It was expected to be re-introduced into the country after the Supreme Court lifted curbs for its re-introduction.
    • From 400 in the 1990s, their numbers are estimated to have reached to 50-70 today, because of poaching, hunting of their main prey (gazelles) and encroachment on their habitat.

     

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  • Par Tapi Narmada River-Linking Project

    The tribals in Gujarat held a public meeting in Kaprada in Valsad district to protest against the Centre’s Par Tapi Narmada (PTN) river-linking project.

    Par Tapi Narmada river-linking project

    • The PTN link project was envisioned under the 1980 National Perspective Plan under the former Union Ministry of Irrigation and the Central Water Commission (CWC).
    • The project proposes to transfer river water from the surplus regions of the Western Ghats to the deficit regions of Saurashtra and Kutch.
    • It proposes to link three rivers — Par, originating from Nashik in Maharashtra and flowing through Valsad, Tapi from Saputara that flows through Maharashtra and Surat in Gujarat, and Narmada originating in Madhya Pradesh and flowing through Maharashtra and Bharuch and Narmada districts in Gujarat.

    Components of the project

    • The link mainly includes the construction of seven dams (Jheri, Mohankavchali, Paikhed, Chasmandva, Chikkar, Dabdar and Kelwan), three diversion weirs and two tunnels.
    • Of these, the Jheri dam falls in Nashik, while the remaining dams are in Valsad and Dang districts of South Gujarat.

    Centre’s role

    • A Memorandum of Understanding (MoU) was signed between Gujarat, Maharashtra and the central government on May 3, 2010.
    • It envisaged that Gujarat would get the benefit of the Par Tapi Narmada link project through en-route irrigation from the link canal and in the drought-prone Saurashtra Kutch region by way of substitution.

    Issues with the Project

    • About 6065 hectares of land area will be submerged due to the proposed reservoirs.
    • A total of 61 villages will be affected, of which one will be fully submerged and the remaining 60 partly.
    • The total number of affected families would be 2,509 of which 98 families would be affected due to the creation of the Jheri reservoir, the only one in Maharashtra, spread over six villages.
    • The affected families may lose their lands or houses or both in the submergence when the reservoirs are created.
    • The districts where the project will be implemented are largely dominated, by tribals who fear displacement.

     

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  • Kinzhal Advanced Hypersonic Missile

    Russia said that it had unleashed hypersonic missiles against an arms depot in Ukraine, the first use of the next-generation weapons in combat.

    Kinzhal Missile

    • It is a nuclear-capable air-launched ballistic missile that flies at 10 times the speed of sound and can overcome air-defence systems. Kinzhal means ‘dagger’.
    • The missile has a range of approximately 1,500-2,000km and can carry a nuclear payload or conventional payload of 480 kg.
    • The Kinzhal was one of an array of new weapons Russian President Vladimir Putin unveiled in his state-of-the-nation address in 2018. Putin had termed Kinzhal as “an ideal weapon”.
    • This is the first time that Russia has admitted to using the high-precision weapon in combat.
    • Following launch, the Kinzhal rapidly accelerates to Mach 4 (4,900 km/h), and may reach speeds of up to Mach 10 (12,350 km/hr).

    What is a hypersonic weapon?

    • They are normally defined as fast, low-flying, and highly manoeuvrable weapons designed to be too quick and agile for traditional missile defence systems to detect in time, according to Bloomberg.
    • Unlike ballistic missiles, hypersonic weapons don’t follow a predetermined, arched trajectory and can maneuver on the way to their destination.
    • The term “hypersonic” describes any speed faster than five times that of sound, which is roughly 760 miles (1,220 kilometers) per hour at sea level.
    • At hypersonic speeds, the air molecules around the flight vehicle start to change, breaking apart or gaining a charge in a process called ionization.
    • This subjects the hypersonic vehicle to “tremendous” stresses as it pushes through the atmosphere.

    Types of hypersonic weapons

    • There are two main types of these weapons — glide vehicles and cruise missiles.
    • Most of the attention is focused on the former, which are launched from a rocket before gliding to their target, because of the challenges of achieving hypersonic propulsion of missiles.
    • The missiles have engines called scramjets that use the air’s oxygen and produce thrust during their flight, allowing them to cruise at a steady speed and altitude.

    Who has these weapons?

    • US, China and Russia have the most advanced capabilities.
    • Several other countries are investigating the technology, including India, Japan, Australia, France, Germany and North Korea, which claims to have tested a hypersonic missile.
    • In fact, India is also closing in on having such weapons in its arsenal.
    • Last year, India successfully tested its hypersonic technology demonstrator vehicle (HSTDV), powered by a scramjet engine.
    • The HSTDV will serve as a crucial building block in the development of long-range hypersonic weapons, which will take at least another four to five years to become a reality.

    Back2Basics: Types of Missiles

    (1) Subsonic missiles

    • They travel at a rate slower than the speed of sound.
    • Most well-known missiles, such as the US Tomahawk cruise missile, the French Exocet, and the Indian Nirbhay, fall into this category.
    • These travel at about Mach-0.9 (705 mph), and are slower and easier to intercept, but they continue to play a significant role in modern battlefields.
    • They significantly less expensive to produce because the technological challenges have already been overcome and mastered.
    • Due to their low speed and small size, subsonic missiles provide an additional layer of strategic value.

    (2) Supersonic missiles

    • They are the one that travels faster than the speed of sound (Mach 1) but not faster than Mach-3.
    • Most supersonic missiles travel at speeds ranging from Mach-2 to Mach-3, or up to 2,300 mph.
    • The Indian/Russian BrahMos, currently the fastest operational supersonic missile capable of speeds of around 2,100–2,300 mph, is the most well-known supersonic missile.

    (3) Hypersonic Missiles

    Explained above

     

  • India’s Crude Oil Trade with Russia

    The Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) has bought two million barrels of Russian crude oil as Indian energy majors forge ahead with attempts to secure a part of the Russian energy supply.

    What is the news?

    • India is exploring alternative payment channels for trade with Russia and the possibility of sourcing additional oil at a discount, even as the West reduces its exposure to Russian oil.
    • Now India needs to make some necessary adjustments in the financial front because of the challenges posed by the American sanctions.

    India’s import dependence and Russia

    • India is heavily dependent on oil imports, the bulk of which comes from the Middle East, Africa, Europe, North America, South America, and South-East Asia.
    • Russia’s oil-related exports to India are only about $1 billion.
    • However, Russia is keen to scale this up even as the US has announced a ban on oil imports from the country and the UK has adopted a more gradual reduction.
    • This offers the opportunity for a lucrative supply deal with the second largest oil exporter after Saudi Arabia.

    Do you know?

    India’s nuclear power project in Kudankulam in Tamil Nadu is built with Russian collaboration.

    What is at stake in oil trade with Russia?

    • India, however, needs to find alternative payment channels due to the evolving crisis.
    • This is also crucial for bilateral non-oil trade.

    Risks posed by payment crisis

    • Western curbs cutting off some Russian banks from the SWIFT payment system has proven to be a setback for bilateral trade.
    • Many payments worth $500 million to Indian exporters for goods already shipped reportedly being stuck.
    • A steady supply of critical commodities such as fuel and fertilizer from Europe is crucial in India’s efforts to manage inflation.
    • A spike in natural gas in global markets is pushing up the cost of procuring commonly used urea, which is sold at a subsidized price to farmers.

    Why is oil supply from Russia important?

    • As much as 85% of India’s oil requirement is met through imports.
    • The government has tried diversifying its supply sources.
    • This would add more gas into the energy basket, giving a strong push to electric mobility, building strategic reserves and blending ethanol in auto fuel to reduce oil import dependence.
    • Extra oil supplies from Russia could aid in this effort.

    How’re the two nations handling the situation?

    • India and Russia are exploring a Rupee-Rouble trade mechanism using currency of a third country as a reference.
    • This would allow Indian exporters to be paid in rupees.
    • This would need an Indian and a Russian bank opening shop on each other’s soil.
    • Another option is routing payments via a bank with limited overseas exposure so that it will not attract curbs.
    • For additional Russian oil shipments, India needs access to more vessels and containers.
    • Indian refiners’ ability to process larger quantities of crude oil also needs to be assessed.

    Extending the collaborations

    • New Delhi has for long followed the policy of acquiring energy assets abroad to reduce risks related to heavy import dependence on oil.
    • Oil and Natural Gas Corp. Ltd’s investment in Russia’s Sakhalin project is one example.
    • Besides, Russian company PJSC Rosneft Oil Co. is a stakeholder in Nayara Energy Ltd that runs the second largest single-site refinery in Gujarat.

     

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  • BARC resumes ratings of news channels

    The BARC India had temporarily suspended the viewership ratings of news channels in October 2020, amid the allegations of a Television Rating Point (TRP) scam. Now it has resumed the ratings.

    What is TRP?

    • In simple terms, anyone who watches television for more than a minute is considered a viewer.
    • The TRP or Target Rating Point is the metric used by the marketing and advertising agencies to evaluate this viewership.
    • In India, the TRP is recorded by the Broadcast Audience Research Council (BARC) using Bar-O-Meters that are installed in televisions in selected households.
    • As on date, the BARC has installed these meters in 44,000 households across the country. Audio watermarks are embedded in video content prior to broadcast.
    • These watermarks are not audible to the human ear, but can easily be detected and decoded using dedicated hardware and software.
    • As viewing details are recorded by the Bar-O-Meters, so are the watermarks.

    What is BARC?

    • It is an industry body jointly owned by advertisers, ad agencies, and broadcasting companies, represented by The Indian Society of Advertisers, the Indian Broadcasting Foundation and the Advertising Agencies Association of India.
    • Though it was created in 2010, the I&B Ministry notified the Policy Guidelines for Television Rating Agencies in India on January 10, 2014, and registered BARC in July 2015 under these guidelines, to carry out television ratings in India.

    How are the households selected?

    • Selection of households where Bar-O-Meters are installed is a two-stage process.
    • The first step is the Establishment Survey, a large-scale face-to-face survey of a sample of approximately 3 lakh households from the target population. This is done annually.
    • Out of these, the households which will have Bar-O-Meters or what the BARC calls the Recruitment Sample are randomly selected. The fieldwork to recruit households is not done directly by BARC.
    • The BARC on its website has said that the viewing behaviour of panel homes is reported to BARC India daily. Coincidental checks either physically or telephonically are done regularly.

    Vigilance activities by BARC

    • Certain suspicious outliers are also checked directly by BARC India.
    • BARC India also involves a separate vigilance agency to check on outliers that it considers highly suspicious.
    • And as per the guidelines of the Ministry of Information and Broadcasting, these households rotate every year.
    • This rotation is in such a manner that older panel homes are removed first while maintaining the representativeness of the panel.
    • The Ministry guidelines further say that the secrecy and privacy of the panel homes must be maintained, and asked the BARC to follow a voluntary code of conduct.

    What are the loopholes in the process?

    • Several doubts have been raised on many previous occasions about the working of the TRP.
    • As per several reports, about 70% of the revenue for television channels comes from advertising and only 30% from subscriptions.
    • It is claimed that households were being paid to manipulate the TRP.

     

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  • Why ‘de-dollarisation’ is imminent

    Context

    The war in Ukraine and the subsequent economic sanctions will trigger central banks to go back to their drawing boards to reassess their dependency on the greenback.

    How sanctions on Russia could lead to de-dollarisation

    • The imposition of sanctions and the exclusion from SWIFT by the US could trigger a faster de-dollarisation. 
    • The “de-dollarisation” by several central banks is imminent, driven by the desire to insulate them from geopolitical risks, where the status of the US dollar as a reserve currency can be used as an offensive weapon.
    • This can also trigger a shift in the overall global forex market framework.
    • The US dollar, which is the world’s reserve currency, can see a steady fall in the current context as leading central banks may look to diversify their reserves away from it to other assets or currencies like the Euro, Renminbi or gold.

    How China and Russia are responding?

    • Efforts are already underway for the possible introduction of a new Russia-China payment system, bypassing SWIFT and combining the Russian SPFS (System for Transfer of Financial Messages) with the Chinese CIPS (Cross-Border Interbank Payment System).
    • Russia had started its three-pronged efforts towards de-dollarisation in 2014 when sanctions were imposed on it for the annexation of Crimea.
    • However, these steps haven’t sufficed to effectively shield “fortress Russia”.
    • China, on the other hand, aims to use trading platforms and its digital currency to promote de-dollarisation.
    • China has established RMB trading centres in Hong Kong, Singapore and Europe.
    • In 2021, the People’s Bank of China submitted a “Global Sovereign Digital Currency Governance” proposal at the Bank for International Settlements to influence global financial rules via its digital currency, the e-Yuan.
    • The IMF has already added Yuan to its SDR (Special Drawing Rights) basket in 2016.
    • In 2017, the European Central Bank exchanged EUR 500 million worth of its forex reserves into Yuan-denominated securities.
    • However, the lack of full RMB convertibility will hinder China’s de-dollarisation ambition.

    Why the dominance of the dollar continues and how the US benefits from its dominance

    • Currently, about 60 per cent of foreign exchange reserves of central banks and about 70 per cent of global trade is conducted using USD.
    • The status of the dollar was enhanced by the collapse of the Bretton Woods system, which essentially eliminated other developed market currencies from competing with the USD.
    • The association of the USD as a “safe-haven” asset also has a psychological angle to it and like old habits, people continue to view the currency as a relatively risk-free asset.
    • This status of the reserve currency allows the US government to refinance its debt at low costs in addition to providing foreign policy leverage.
    •  Additionally, sudden dumping of dollar assets by adversarial central banks will also pose balance sheet risks to them as it will erode the value of their overall dollar-denominated holdings.

    Consider the question “Examine the factors that explain the dominance of the dollar in the global economy? How such dominance benefits the US?”

    Conclusion

    While the frequent use of the US dollar as a potential weapon for achieving foreign policy objectives will no doubt accelerate the process of de-dollarisation, there is still a long road ahead.

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    Back2Basics: What is Special Drawing Rights?

    • The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.
    • The SDR is not a currency.
    • It is a potential claim on the freely usable currencies of IMF members.
    • As such, SDRs can provide a country with liquidity.
    • A basket of currencies defines the SDR: the US dollar, Euro, Chinese Yuan, Japanese Yen, and the British Pound.

  • Back in news: Foreign Contribution Regulation Act (FCRA)

    The Union Home Ministry has placed a US based NGO on its watchlist following an investigation that foreign contributions it sent were being used for climate awareness campaigns, an activity not permissible under the FCRA [Foreign Contribution (Regulation) Act].

    About Foreign Contribution Regulation Act (FCRA)

    • The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security.
    • First enacted in 1976, it was amended in 2010 when a slew of new measures was adopted to regulate foreign donations.
    • The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations.
    • It is mandatory for all such NGOs to register themselves under the FCRA.
    • The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.

    Why was FCRA enacted?

    • The FCRA sought to consolidate the acceptance and utilisation of foreign contribution or foreign hospitality by individuals, associations or companies.
    • It sought to prohibit such contributions from being used for activities detrimental to national interest.

    What was the recent Amendment?

    • The FCRA was amended in September 2020 to introduce some new restrictions.
    • The Government says it did so because it found that many recipients were wanting in compliance with provisions relating to filing of annual returns and maintenance of accounts.
    • Many did not utilise the funds received for the intended objectives.
    • It claimed that the annual inflow as foreign contributions almost doubled between 2010 and 2019.
    • The FCRA registration of 19,000 organisations was cancelled and, in some cases, prosecution was also initiated.

    How has the law changed?

    There are at least three major changes that NGOs find too restrictive.

    • Prohibition of fund transfer: An amendment to Section 7 of the Act completely prohibits the transfer of foreign funds received by an organisation to any other individual or association.
    • Directed and single bank account: Another amendment mandates that every person (or association) granted a certificate or prior permission to receive overseas funds must open an FCRA bank account in a designated branch of the SBI in New Delhi.
    • Utilization of funds: Fund All foreign funds should be received only in this account and none other. However, the recipients are allowed to open another FCRA bank account in any scheduled bank for utilisation.
    • Shared information: The designated bank will inform authorities about any foreign remittance with details about its source and the manner in which it was received.
    • Aadhaar mandate: In addition, the Government is also authorised to take the Aadhaar numbers of all the key functionaries of any organisation that applies for FCRA registration or for prior approval for receiving foreign funds.
    • Cap on administrative expenditure: Another change is that the portion of the receipts allowed as administrative expenditure has been reduced from 50% to 20%.

    What is the criticism against these changes?

    • Arbitrary restrictions: NGOs questioning the law consider the prohibition on transfer arbitrary and too heavy a restriction.
    • Non-sharing of funds: One of its consequences is that recipients cannot fund other organisations. When foreign help is received as material, it becomes impossible to share the aid.
    • Irrationality of designated bank accounts: There is no rational link between designating a particular branch of a bank with the objective of preserving national interest.
    • Un-ease of operation: Due to Delhi based bank account, it is also inconvenient as the NGOS might be operating elsewhere.
    • Illogical narrative: ‘National security’ cannot be cited as a reason without adequate justification as observed by the Supreme Court in Pegasus Case.

    What does the Government say?

    • Zero tolerance against intervention: The amendments were necessary to prevent foreign state and non-state actors from interfering with the country’s polity and internal matters.
    • Diversion of foreign funds: The changes are also needed to prevent malpractices by NGOs and diversion of foreign funds.
    • Fund flow monitoring: The provision of having one designated bank for receiving foreign funds is aimed at making it easier to monitor the flow of funds.
    • Ease of operation: The Government clarified that there was no need for anyone to come to Delhi to open the account as it can be done remotely.

     

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  • Patent Rights on COVID-19 jabs may be waived

    The World Trade Organization chief has hailed a breakthrough between the EU, the United States, India and South Africa on waiving intellectual property rights on Covid-19 vaccines.

    What is a Patent?

    • A patent is an exclusive right granted for an invention.
    • In other words, a patent is an exclusive right to a product or a process that generally provides a new way of doing something, or offers a new technical solution to a problem.
    • To get a patent, technical information about the invention must be disclosed to the public in a patent application.
    • The patent owner may give permission to, or license, other parties to use the invention on mutually agreed terms.
    • The owner may also sell the right to the invention to someone else, who will then become the new owner of the patent.
    • Once a patent expires, the protection ends, and an invention enters the public domain; that is, anyone can commercially exploit the invention without infringing the patent.

    Terms of Patent

    • Patents may be granted for inventions in any field of technology, from an everyday kitchen utensil to a nanotechnology chip.
    • An invention can be a product – such as a chemical compound, or a process, for example – or a process for producing a specific chemical compound.
    • Patent protection is granted for a limited period, generally 20 years from the filing date of the application.
    • Patents are territorial rights. In general, the exclusive rights are only applicable in the country or region in which a patent has been filed and granted, in accordance with the law of that country or region.

    Back2Basics: Intellectual Properties

    • IP is protected in law by, for example, patents, copyright and trademarks, which enable people to earn recognition or financial benefit from what they invent or create.
    • By striking the right balance between the interests of innovators and the wider public interest, the IP system aims to foster an environment in which creativity and innovation can flourish.

    Types of IP:

    (1) Copyright

    • Copyright is a legal term used to describe the rights that creators have over their literary and artistic works.
    • Works covered by copyright range from books, music, paintings, sculpture and films, to computer programs, databases, advertisements, maps and technical drawings.

    (2) Patents

    Discussed above

    (3) Trademarks

    • A trademark is a sign capable of distinguishing the goods or services of one enterprise from those of other enterprises.
    • Trademarks date back to ancient times when artisans used to put their signature or “mark” on their products.

    (4) Geographical Indications

    • Geographical indications and appellations of origin are signs used on goods that have a specific geographical origin and possess qualities, a reputation or characteristics that are essentially attributable to that place of origin.
    • Most commonly, a geographical indication includes the name of the place of origin of the goods.

    (5) Trade secrets

    • Trade secrets are IP rights on confidential information which may be sold or licensed.
    • The unauthorized acquisition, use or disclosure of such secret information in a manner contrary to honest commercial practices by others is regarded as an unfair practice and a violation of the trade secret protection.

     

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