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  • What are Digital Services Taxes?

    Digital services taxes adopted by India, Italy and Turkey discriminate against U.S. companies and are inconsistent with international tax principles, the U.S. Trade Representative’s office has said.

    Do you remember?

    GAFA tax—named after Google, Apple, Facebook, Amazon—is a proposed digital tax to be levied on large technology and internet companies.

    Fact of the matter: Equalization Levy

    • India has earlier expanded the scope of the Equalization Levy, or digital tax, to the sale of goods and services in the country by overseas e-commerce firms.
    • The Equalization Levy was introduced for the first time in 2016 as 6 per cent tax on revenues earned by non-residents from online advertising and related services.
    • The burden of this tax eventually fell on local firms advertising on these platforms.

    Contention for E-Commerce

    • In March 2020, the government expanded the scope of this levy to include the sale of goods and services in the country by overseas e-commerce operators.
    • The transactions were to be taxed at 2 per cent if businesses earned more than Rs 2 crore.
    • Globally, the rate of digital tax varies from 1.5 per cent (in Poland and Kenya) to 15 per cent (Paraguay). In Europe, the tax rate varies from 3 per cent (France, UK, Spain) to 7.5 per cent (Hungary).

    Digital Services Taxes

    • The “digital services tax” (DST) is a levy on the overall revenues earned by the supplier of specific digital services.
    • The DST should not be confused with the so-called “Netflix tax,” which one may find in some western countries.
    • The Netflix tax is essentially a “value-added tax” on digital services where the consumer bears the entire tax burden on the value of the final product.

    The US Question

    • The need to tax digital companies – the likes of Amazon, Google and Netflix – arises because these companies collect digital revenues from countries where they do not have a significant business presence.
    • These are new-age companies, which can use virtual infrastructure to operate in another country.
    • Countries across the globe have felt the need to tax revenues generated by such companies in a particular jurisdiction.
    • Talks began in 2018 under the aegis of the OECD to formalize a framework on what and how to tax revenues earned by such companies in a country in which they have no physical or significant presence.
    • But an abrupt US decision to pull out of the negotiations, involving 137 countries and threats of retaliatory action against those levying digital taxes have hit the 2020 deadline.

    India’s response

    • USTR has concluded the digital taxes imposed by France, India, Italy and Turkey discriminate against big U.S. tech firms, such as Google, Facebook, Apple and Amazon.com
    • For India, it created enormous uncertainty, since the country has always been at the forefront of adopting the concept of taxing foreign digital companies.
    • It is now subject to a probe initiated by the US called the ‘Section 301’ investigations into the digital taxes.

    A populist fuss by the US

    • The US is a bit confused and so is the exiting President. They are not able to decide what they want to do.
    • It is being argued that it could lead to tariffs before Donald leaves office or early in the administration of President-elect Biden.
    • This arguably another populist measure that Trump administration wants to leave behind.

    Conclusion

    • Given that a global consensus at the OECD or even the UN level may take several more months, countries including India are likely to continue with their unilateral DSTs.
    • At this juncture, when economies are reeling under the ill-effects of the pandemic, no country would want to give up its share of revenue and wait for a global consensus to emerge.

  • Magneto-Telluric Survey in the Delhi-NCR Region

    In the backdrop of multiple quakes of low intensity in the Delhi-NCR region, the National Centre for Seismology (NCS) is conducting a unique geophysical Magnetotelluric-MT survey to accurately assess potential seismic hazards.

    Try this PYQ:

    Q.Consider the following statements:

    1. The Earth’s magnetic field has reversed every few hundred thousand years.
    2. When the Earth was created more than 4000 million years ago, there was 54% oxygen and no carbon dioxide.
    3. When living organisms originated, they modified the early atmosphere of the Earth.

    Which of the statements given above is/ are correct?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    What is Magneto-Telluric Survey?

    • MT is a geophysical method which uses natural time variation of the earth’s magnetic and electric fields to understand the geological (underground) structure and processes.
    • It is an increasingly popular technique widely used to image the electrical resistivity distribution inside the Earth in various application fields ranging in scale from the shallow crust to the lithosphere.
    • In the MT method, the earth’s natural electromagnetic field is used as a source field.
    • The receivers record the electric and magnetic fields on the surface of the Earth.
    • The variations in amplitude and phase of the received signals can be interpreted in terms of the resistivity structure of the subsurface using the magnetotelluric impedance.

    Where would the MT survey be undertaken?

    • The survey is conducted across three major seismic sources, namely Mahendragarh-Dehradun Fault (MDF), Sohna Fault (SF) and Mathura Fault (MF).
    • It will ascertain the presence of fluids, which generally enhance the possibility of triggering earthquakes.

    Benefits of the survey

    • Its findings will help different user agencies for designing quake-resistant buildings, industrial units and structures such as hospitals and schools.
    • In addition to MT, analysis and interpretation of satellite imageries and geological field investigations for locating the faults are also being carried out.
    • Both these geophysical and geological surveys will help in taking multiple preventive measures in the quake-prone region.

  • Asian Waterbird Census (AWC) 2021

    The two-day Asian Waterbird Census-2020 was recently held in Andhra Pradesh.

    Anyone can participate!

    By using eBird and filling an additional site form, one can take part in this multi-country effort to document the state of our wetlands and waterbirds.  To take part one simply visits a wetland and count the birds he/she see there.

    Asian Waterbird Census

    • The Asian Waterbird Census (AWC) takes place every January.
    • The AWC was started in 1987, and many birders were initiated into bird counting and monitoring through this project.
    • This citizen-science event is a part of the global International Waterbird Census (IWC) that supports the conservation and management of wetlands and waterbirds worldwide.
    • The data collected each year is shared by Wetlands International with global conservation organisations such as IUCN and Ramsar Convention.

    Why need such census?

    • Waterbirds are one of the key indicators of wetlands health.
    • Wetlands provide feeding, resting, roosting and foraging habitats for these charismatic species.

    AWC in India

    • In India, the AWC is annually coordinated by the Bombay Natural history Society (BNHS) and Wetlands International.
    • BNHS is a non-government Organisation (NGO) founded in the year 1883.
    • It engages itself in the conservation of nature and natural resources and also in the research and conservation of endangered species.
    • Its mission is to conserve nature, primarily biological diversity through action based on research, education and public awareness.

    Back2Basics: Waterbirds

    • The term water bird, alternatively waterbird or aquatic bird is used to refer to birds that live on or around water.
    • In some definitions, the term is especially applied to birds in freshwater habitats, though others make no distinction from birds that inhabit marine environments.
    • Also, some water birds are more terrestrial or aquatic than others, and their adaptations will vary depending on their environment.
    • These adaptations include webbed feet, bills, and legs adapted to feed in the water, and the ability to dive from the surface or the air to catch prey in water.

  • India’s efforts in increasing Maritime domain awareness

    The article analyses India’s efforts in increasing the maritime domain awareness while increasing the cooperation with the neighbourhood and other countries.

    Indian Navy improving domain awareness

    • The enemy at sea is often unrecognisable — a terrorist, a pirate, a criminal or a sea robber.
    • Of late, the Indian Navy has been on a drive to improve domain awareness in the Indian Ocean.
    • The Indian Navy’s efforts seem focused primarily on monitoring Chinese activity in the Eastern Indian Ocean, particularly in the seas around the Andaman and Nicobar islands.
    • The Navy is seeking to expand India’s surveillance footprint by setting up radar stations in the Maldives, Myanmar and Bangladesh.
    • Mauritius, the Seychelles and Sri Lanka have already integrated into the wider coastal radar chain network.

    Increasing international cooperation

    • Seven Indian Ocean countries — Bangladesh, Myanmar, Indonesia, Sri Lanka, the Maldives, Mauritius and the Seychelles — will soon post Liaison Officers at the Indian Navy’s Information Fusion Centre-Indian Ocean Region in Gurugram.
    • France already has an officer at the IFC.
    • Four other Indo-Pacific navies — Australia, Japan, the U.K and the U.S. — have also agreed to position officers at the centre.
    • As a result of such cooperation, IFC is fast emerging as the most prominent information hub in the Eastern Indian Ocean.
    • India is increasing engagement in the Western Indian Ocean by positioning a Liaison Officer at the Regional Maritime Information Fusion Centre (RMIFC) in Madagascar.
    • India has also posted an officer at the European Maritime Awareness in the Strait of Hormuz (EMASOH) in Abu Dhabi to assist in the monitoring of maritime activity.

    Stronger partnership with France

    • Delhi’s moves in the Western and South-Western littorals have been facilitated by France.
    • Two countries have signed a logistics agreement in 2019.
    • France is keen for a stronger partnership in the maritime commons.
    • France has been instrumental in securing ‘observer’ status for India at the Indian Ocean Commission and is pushing for greater Indian participation in security initiatives in the Western Indian Ocean.
    • However, the Indian Navy’s priority remains South Asia, where the naval leadership remains focused on underwater domain awareness in the Eastern Indian Ocean.

    Concerns over increasing Chines presence

    • There is concern that the Chines navy may be poised to develop a generation of quieter submarines that would be hard to detect.
    • As a result, India has moved to expand its underwater detection capabilities in the Eastern chokepoints. 
    • India might also partner Japan in installing an array of undersea sensors near the Andaman Islands to help detect Chinese submarines.

    India as a security provider: Manifestation of SAGAR

    • India’s initiatives in the maritime domain are motivated by more than just strategic considerations.
    • Shipping agreements with 21 countries in the Indian Ocean have enabled a comprehensive picture of maritime traffic.
    • Efforts are under way to help smaller island states build capacity to combat regional threats.
    • India’s military satellite (GSAT-7A) may soon facilitate a real-time sharing of maritime information with partners.
    • These endeavours are a manifestation of Security and Growth for All in the Region (SAGAR) that advances the idea of India as a ‘security provider’ and ‘preferred partner’ in the Indo-Pacific region.

    Challenges

    • Indian initiatives, however, are yet to bring about an alignment of objectives and strategies of regional littoral states.
    • While cooperative information sharing allows for a joint evaluation of threats, countries do not always share vital information timeously.

    Conclusion

    To bring real change, India must ensure seamless information flow, generating operational synergy with partners, and aim to expand collaborative endeavours in shared spaces.

  • Science Technology and Innovation Policy (STIP), 2020

    The Department of Science and Technology has published the draft National Science Technology and Innovation Policy and has invited suggestions from the public.

    Q.The STIP, 2020 contains radical and progressive proposals that could be game-changers for not just the scientific research community, but also for the way ordinary Indians interact with Science. Discuss.

    STIP, 2020

    Aim: To identify and address the strengths and weaknesses of the Indian STI ecosystem to catalyse socio-economic development of the country and also make the Indian STI ecosystem globally competitive.

    The philosophy behind

    • Unlike previous STI policies which were largely top-driven in the formulation, this policy follows core principles of being decentralized, evidence-informed, bottom-up, experts-driven, and inclusive.
    • It aims to be dynamic, with a robust policy governance mechanism that includes periodic review, evaluation, feedback, adaptation and, most importantly, a timely exit strategy for policy instruments.
    • The STIP will be guided by the vision of positioning India among the top three scientific superpowers in the decade to come; to attract, nurture, strengthen, and retain critical human capital through a people-centric STI ecosystem

    The Open Science Framework

    Open Science fosters more equitable participation in science through-

    • Increased access to research output;
    • Greater transparency and accountability in research; inclusiveness;
    • Better resource utilization through minimal restrictions on reuse of research output and infrastructure and
    • Ensuring a constant exchange of knowledge between the producers and users of knowledge

    Inclusion principles

    • The STIP proposes that at least 30 per cent representation be ensured for women in all decision-making bodies, as well as “spousal benefits” are provided to partners of scientists belonging to the LGBTQ+ community.
    • Among the proposals in the policy is the removal of bars on married couples being employed in the same department or laboratory.
    • As of now, married couples are not posted in the same department, leading to cases of loss of employment or forced transfers when colleagues decide to get married.
    • The policy says that for age-related cut-offs in matters relating to the selection, promotion, awards or grants, the “academic age” and not the biological age would be considered.

    Funding improvements

    • At 0.6% of GDP, India’s gross domestic expenditure on R&D (GERD) is quite low compared to other major economies that have a GERD-to-GDP ratio of 1.5% to 3%.
    • This can be attributed to inadequate private sector investment (less than 40%) in R&D activities in India; in technologically advanced countries, the private sector contributes close to 70% of GERD.
    • STIP has made some major recommendations in this regard, such as the expansion of the STI funding landscape at the central and state levels.
    • It has enhanced incentivisation mechanisms for leveraging the private sector’s R&D participation through boosting financial support and fiscal incentives for industry.

    Other key Proposals

    • STIP will lead to the establishment of a National STI Observatory that will act as a central repository for all kinds of data related to and generated from the STI ecosystem.
    • The “One nation, one subscription” policy to establish a system whereby all researchers in India can access research published in top international journals for no cost.
    • All data used in and generated from public-funded research will be available to everyone (larger scientific community and public) under FAIR (findable, accessible, interoperable and reusable) terms.
    • Collaborative Research Centres (CRCs) will be established, that bring together industries, MSMEs, startups, R&D institutions and HEIs with the government.
    • Industry clusters will be encouraged and incentivized wherever necessary, to engage in collaborative R&D.
    • Opportunities for foreign MNCs to invest in the country’s STI landscape will be strengthened and made more accessible.
    • It proposes lateral entry of scientists up to 25 per cent of scientists in related ministries.

  • Know the scientist: Dmitri Mendeleev

    Mendeleev was a Russian chemist and inventor who formulated the Periodic Law and the Periodic Table of Elements.

    Chemistry can, no wonder, find their place in exam if core Biology could do in 2020 CSP.

    Q.Which of the following statements is/are correct regarding the general difference between plant cells and animal cells?

    1. Plant cells have cellulose cell walls whilst animal cells do not.
    2. Plant cells do not have plasma membrane unlike animals cells which do
    3. Mature plant cell has one large vacuole whilst animal cell has many small vacuoles

    Select the correct answer using the given code below-

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    Dmitri Mendeleev

    • Mendeleev was born in the Siberian town of Tobolsk.
    • In 1861, Mendeleev published a textbook named Organic Chemistry, which won him the Demidov Prize of the Petersburg Academy of Sciences.
    • While explaining the chemical and physical properties of elements, he discovered similarities in the progression of atomic weights.
    • He found that the order of atomic weights could be used to arrange the elements within each group and the groups themselves.
    • Thus, Mendeleev formulated the periodic law. His Osnovy khimii (The Principles of Chemistry) became a classic, running through many editions and many translations.

    The Periodic Law

    • Using the Periodic Law, Mendeleev developed a systematic table of all the 63 elements then known.
    • He even predicted the locations of unknown elements together with their properties within the periodic table.
    • When these predicted elements, notably gallium ( 1875), scandium (1879), and germanium (1886) were discovered, Mendeleev Periodic Table began to gain wide acceptance.
    • Incidentally, in 1870, German chemist Julius Lothar Meyer also published a paper describing the same organisation of elements as Mendeleev’s. But the latter is given credit for the table.
    • In all, Mendeleev predicted 10 new elements, of which all but two turned out to exist. Element 101 is named Mendelevium in his honour.

    Also read:

    https://www.civilsdaily.com/news/mendeleev-and-his-periodic-table-of-elements/

  • Agricultural research in India

    The article highlight the need for more emphasis on agricultural R&D as a solution to the woes of the farmers.

    India needs low-input high-output agriculture

    • Amid farmers protest against farm acts, the current debates focus mainly on MSP, reducing farmers’ debt liabilities, reducing post-harvest losses, cash transfers and marketing reforms.
    • India with entrenched poverty requires low-input, high-output agriculture; low input in terms of both natural resources and monetary inputs.
    • Very little attention is being given to reducing the natural resource inputs — most critical being water —and agricultural R&D.
    • This cannot be achieved without science and technology.

    Following are the areas in which Indian agriculture needs R&D to reduce agriculture inputs

    1) Water usage for agriculture

    • India receives around 4,000 billion cubic meters (bcm) of rainfall, but a large part of it falls in the east.
    • Moreover, most of the rain is received within 100 hours of torrential downpour, making water storage and irrigation critical for agriculture.
    • India has one of the highest water usages for agriculture in the world — of the total 761 bcm withdrawals of water, 90.5 per cent goes into agriculture.
    • In comparison, China uses 385.2 bcm (64.4 per cent) out of the total withdrawals of 598.1 bcm for agriculture.
    • China’s per-unit land productivity in terms of crop production is almost two to three times more.
    • The total estimated groundwater depletion in India is in the range of 122-199 bcm .
    • The depletion is highest in Punjab, Haryana, and western UP.

    2) Increasing the yields of coarse-grain crops and oilseed crops

    • Years of intense research on yield increase and yield protection by breeding varieties and hybrids resistant to pests and pathogens have made wheat, rice and maize stable high yielders.
    • Environmentalists suggest replacing rice with coarse grain crops — millets, sorghum etc.
    • However, the yields of these crops are not comparable to those of wheat and rice even when protective irrigation is available.
    • These crops have a serious R&D deficit leading to low yield potential as well as losses to pests and pathogens.
    • This leaves us with pulses and oilseeds.
    • In the 2017-18 fiscal year, India imported around Rs 76,000 crore worth of edible oils.
    • Three oilseed crops (mustard, soybean, and groundnut) are already grown very extensively.
    • Soybean and groundnut are legume crops and fix their nitrogen.
    • All three crops not only provide edible oils but are also an excellent source of protein-rich seed or seed meal for livestock and poultry.
    • Unfortunately, yields of the three crops are stagnating in India at around 1.1 tons per hectare, significantly lower than the global averages.

    3) Genetic improvements of crops

    • Pests and pathogens can be best tackled by agrochemicals or by genetic interventions.
    • A recent global level study on crop losses in the main food security hotspots for five major crops showed significant losses to pests — on average for wheat 21.5 per cent, rice 20 per cent, maize 22.5 per cent, potato 17.2 per cent, and soybean 21.4 per cent.
    • India is one of the lowest users of pesticides.
    • In 2014, comparative use of pesticides in kilograms per hectare in some select countries/regions is as following: Africa 0.30, India 0.36, EU countries 3.09, China 14.82, and Japan 15.93.
    • A more benign method for dealing with pests is through breeding.
    • The Green Revolution technologies were based on the effective use of germplasm and strong phenotypic selections.
    • Recombinant DNA technologies since the 1970s have brought forth unprecedented opportunities for genetic improvement of crops.
    • Since 2000, genomes of all the major crops have been sequenced.
    • The big challenge is in the effective utilisation of the enormous sequence data that is available.
    • India’s efforts in all three areas are half-hearted.

    Way forward

    • Over the last 20 years, India has been spending between 0.7 to 0.8 per cent of its GDP on R&D.
    • This is way below the percentage of GDP spent by the developing countries and Asia’s rapidly growing economies.
    • There are structural issues like lack of competent human resources and lack of policy clarity.
    • However, the biggest impediment to agricultural R&D has been overzealous opposition to the new technologies.

    Consider the question “India needs low-input, high-output agriculture. This cannot be achieved without science and technology. In light of this, examine how R&D could play a role in the advancement of agriculture in India.”

    Conclusion

    Maybe the present crisis in agriculture would lead to a greater appreciation of the need for strong public supported R&D in agriculture.

  • India to explore Lithium reserves in Argentina

    India has inked a pact with an Argentine firm to jointly prospect lithium in the South American country.

    Why such a move?

    • Currently, India is heavily dependent on import of these cells and the move to ink sourcing pacts for lithium is seen as another salvo in the front against China, a key source of both the raw material and cells.
    • India is seen as a late mover as it attempts to enter the lithium value chain, coming at a time when EVs are predicted to be a sector ripe for disruption.
    • And 2021 is likely to be an inflexion point for battery technology, with several potential improvements to the Li-ion technology.

    About Lithium

    • Lithium is a chemical element with the symbol Li and atomic number 3.
    • It is a soft, silvery-white alkali metal. Under standard conditions, it is the lightest metal and the lightest solid element.
    • Like all alkali metals, lithium is highly reactive and flammable and must be stored in mineral oil.
    • When cut, it exhibits a metallic lustre, but moist air corrodes it quickly to a dull silvery grey, then black tarnish.
    • Lithium metal is isolated electrolytically from a mixture of lithium chloride and potassium chloride.
    • It is a crucial building block of the lithium-ion rechargeable batteries that power electric vehicles (EVs), laptops and mobile phones.

    Global producers of lithium

    • Australia and Chile have swapped positions as the world’s leading lithium-producing country over the past decade. In 2019, the world’s Top 5 lithium producers were:
    1. Australia – 52.9% of global production
    2. Chile – 21.5%
    3. China – 9.7%
    4. Argentina – 8.3%
    5. Zimbabwe – 2.1%
    • The U.S. ranked 7th with 1.2% of the world’s lithium production.
    • In 2019, the world’s Top 5 lithium reserves by country were:
    1. Chile – 55.5% of the world’s total
    2. Australia – 18.1%
    3. Argentina – 11.0%
    4. China – 6.5%
    5. U.S. – 4.1%

    Lithium-ion batteries

    • A lithium-ion battery or Li-ion battery is a type of rechargeable battery.
    • They are commonly used for portable electronics and electric vehicles and are growing in popularity for military and aerospace applications.
    • A prototype Li-ion battery was developed by Akira Yoshino in 1985, based on earlier research by John Goodenough, M. Stanley Whittingham, Rachid Yazami and Koichi Mizushima during the 1970s–1980s.
    • In 2019, the Nobel Prize in Chemistry was given to this trio “for the development of lithium-ion batteries”.

    How does it work?

    • In the batteries, lithium ions move from the negative electrode through an electrolyte to the positive electrode during discharge, and back when charging.
    • Li-ion batteries use an intercalated lithium compound as the material at the positive electrode and typically graphite at the negative electrode.
    • The batteries have a high energy density, no memory effect and low self-discharge.

    Try this PYQ:

    Q.Hydrogen fuel cell vehicles produce one of the following as “exhaust”:

    (a) NH3

    (b) CH4

    (c) H2O

    (d) H2O2

    Limitations

    • Despite the improvements in lithium-ion batteries over the last decade, long charging times and weak energy density are still barriers.
    • The Li-ion batteries are seen as sufficiently efficient for applications such as phones and laptops, in case of EVs.
    • They still lack the range that would make them a viable alternative to internal combustion engines.
    • A number of alternatives are being fostered to achieve more optimal options.

  • [pib] Six successful years of UJALA Scheme

    The Unnat Jyoti by Affordable LEDs for All (UJALA) Scheme and Street Lighting National Programme (SLNP) marks their sixth anniversary today.

    Do not get confused with PM-UJJWALA Scheme.

    UJALA Scheme

    • Unnat Jyoti by Affordable LEDs for All (UJALA) was launched by our PM on 1 May 2015, replacing the “Bachat Lamp Yojana”.
    • The project is spearheaded by the Energy Efficiency Services Limited.
    • In non-subsidized LED lamp distribution projects, this program is considered the world’s largest.
    • In May 2017, the Government of India announced that they were expanding the LED distribution project to the United Kingdom.
    • Both the programmes are being implemented by Energy Efficiency Services Limited (EESL), a joint venture of PSUs under the Ministry of Power, Government of India since their inception.

    A roaring success

    • Under UJALA, EESL has distributed over 36.69 crores LED bulbs across India.
    • This has resulted in estimated energy savings of 47.65 billion kWh per year with an avoided peak demand of 9,540 MW and an estimated GHG emission reduction of 38.59 million tonnes CO2 per year.
    • Additionally, over 72 lakh LED tube lights and over 23 lakh energy efficient fans have also been distributed at an affordable price under this programme.

  • Quality gigs, a solution to urban unemployment

    With the lack of NREGA equivalent in the urban area government has to find ways to provide income support and employment. The article suggests ways to do the same.

    Slowdown in employment recovery

    • The Indian economy has been gradually recovering from historic contraction of negative 23.9%.
    • This recovery has shifted focus away from the employment question, considered resolved after a sharp rally following the collapse in employment numbers in April.
    • More recent data from the Centre for Monitoring Indian Economy, however, point to a gradual slowdown in employment recovery.

    NREGA: employment support in rural area

    • For labour coming back to rural India, employment support came in the form of the National Rural Employment Guarantee Scheme (NREGA), which witnessed a 243% increase in person workdays.
    • This increased dependency on NREGA, has seen the Rural Development Ministry spend nearly 90% of its increased ₹86,4000 crore allocation by the month of November.
    • In several Indian cities, however, closed businesses have meant that millions of workers have either had to leave or have had to take up new forms of work.

    Supporting gig workers

    With no urban equivalent to the NREGA on the horizon, there must be an increased impetus on evaluating, regulating and supporting new forms of employment.

    1) Evaluation

    •  Our current understanding of gig work is based on the limited disclosures made by the platforms themselves.
    • Furthermore, most regulators continue to remain in the dark on basic questions surrounding platform labour.
    • As of now, there exists no authoritative estimate on the total number of gig workers in India.
    • The centralised nature of the platforms and the larger platform labour market should make the collating of this data relatively straightforward for the Labour Ministry.

    2) Regulation

    • The next step is significantly more sensitive and involves regulation.
    • The reason for the sensitivity primarily revolves around the varied nature of gig work.
    • While some workers use these platforms as a “side hustle”, for others it continues to serve as a primary source of employment.
    • This dynamic is further complicated by the risk of a one-size-fits-all regulatory strategy.
    • Such regulatory strategies are unintentionally hurting the similar, yet distinct, market for highly skilled (and highly paid) freelancers.

    Way forward

    • A more viable strategy then would involve conditional government partnerships with platforms under some of its flagship schemes.
    • The successful pilot of Swiggy’s Street Food Vendors programme under the PM SVANidhi, or PM Street Vendor’s Atma Nirbhar Nidhi scheme, may prove to be an illustrative example.
    •  Creation of jobs, alongside the voluntary adoption of quality standards, is an example of a mutually beneficial partnership between the state and platforms.
    • Similar collaborations on urban employment, that require labour platforms to comply with disclosure norms and worker compensation standards to access government support, could create jobs while ensuring compliance.
    • Collaborating with platforms to employ workers, would bring down costs significantly (for both the state and their partners)  it would also create an environment where firms would be more likely to cooperate with the state.

    Conclusion

    Limited fiscal space and a growing need to fuel the country’s consumption base, must push the government to build symbiotic relationships with new partners.