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  • GI(Geographical Indicator) Tags

    [pib] GI certified Gholvad Sapota

    Prelims Only | Agriculture | Mains Paper 3: Intellectual Property Rights

     

    In a major boost to exports of Geographical Indication (GI) certified products, a consignment of Dahanu Gholvad Sapota from the Palghar district of Maharashtra was shipped to the United Kingdom.

    Gholvad Sapota

    • GI certification of Ghovad Sapota is held by Maharashtra Rajya Chikoo Utpadak Sangh and the fruit is known for its sweet and unique taste.
    • It is believed that the unique taste is derived from the calcium-rich soil of Gholvad village.
    • Currently, in the Palgahr district, around 5000 hectares of land is under sapota or plantation.
    • Sapota is grown in many states- Karnataka, Gujarat, Maharashtra, Tamil Nadu, West Bengal and Andhra Pradesh.
    • Karnataka is known to be the highest grower of the fruit, followed by Maharashtra.

    Do you know?

    Earlier this month, a consignment of 2.5 Metric Tonne of GI certified Banganapalli & Survarnarekha mangoes sourced from farmers in Krishna & Chittor districts of Andhra Pradesh was exported to South Korea.

    Back2Basics: Geographical Indication (GI)

    • The World Intellectual Property Organisation defines a GI as “a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin”.
    • GIs are typically used for agricultural products, foodstuffs, handicrafts, industrial products, wines and spirit drinks.
    • Internationally, GIs are covered as an element of intellectual property rights under the Paris Convention for the Protection of Industrial Property.
    • They have also covered under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    Issues in Social Security Code 2020

    op-ed snap | Governance | Mains Paper 2: Health & Education

    Provisions in Social Security Code 2020

    • India’s Parliament in September 2020 passed a Social Security Code (SS Code 2020).
    • The SS Code 2020 merges existing social security laws and attempts to include informal workers within the ambit of social security administration.
    • The SS Code 2020 amalgamates and rationalises the provisions of eight existing central labour laws.
    • Of these acts, employees provident fund, employees state insurance (ESI), maternity benefit, gratuity are entirely for organised sector workers. 
    • Employee threshold removed: For employees’ state insurance, the existing employee threshold has been withdrawn.
    • Now the central government can extend ESI benefits to any organisation irrespective of the number of workers employed.

    Key benefits not available to informal workers in Social Security Code 2020

    • Maternity benefit: Under the SS Code, the provision of maternity benefit has not been made universal.
    • Maternity benefit is presently applicable for establishments employing 10 workers or more.
    • The definition of ‘Establishment’ in the proposed code did not include the unorganised sector.
    • Hence, women engaged in the unorganised sector would remain outside the purview of maternity benefit.
    • Employees Provident Fund: The SS Code maintains that the Employees’ Provident Fund Scheme will remain applicable, as before, to every establishment in which 20 or more employees are employed.
    • Thus, for informal sector workers, access to employees’ provident fund remains unfulfilled too in the new code.
    • Payment of gratuity: Gratuity shall be payable to eligible employees by every shop or establishment in which 10 or more employees are employed, or were employed, on any day of the preceding 12 months.
    • But although payment of gratuity was expanded in the new Code, it still remains inaccessible for a vast majority of informal workers.

    Challenges faced by informal workers in availing social security

    • Registration barrier: To avail social security, an informal worker must register herself on the specified online portal to be developed by the central government.
    • Absence of definition: The absence of definite and unambiguous provisions in the present code would further complicate achievement of universal registration.
    • Lack of awareness: Experience shows that there is an awful lack of awareness among informal workers regarding social security schemes.
    • Lack of digital literacy: Online registration places a further challenge as most informal workers lack digital literacy and connectivity.
    • Lack of documents: Informal workers also find it difficult to furnish all documentary papers required as part of the registration process.
    • Furnishing proof of livelihood and income details in the absence of tangible employer-employee relations is very difficult.
    • Such requirements deter informal workers from completing the registration and they continue to remain outside the social security ambit.

    Way forward

    The provision of social security could be used to formalise the workforce to a certain extent. Employers could have been made to own up to the responsibility of providing social security to their workers.

    1) Inter-State cooperation

    • As unorganised workers are spread across the length and breadth of India, inter-State arrangement and cooperation becomes imperative.
    • The central government should conceptualise a basic structure, which if successful, should be adopted by States after necessary customisation.

    2) Universal coverage

    • The unorganised workforce is all encompassing, minus the minuscule regular workers of organised sectors.
    • This identity should be primal and all unorganised workers should have basic social security coverage, irrespective of labour market classifications.
    • The code fails to undertake such inclusion in a meaningful way.

    Conclusion

    The Social Security Code fails to provide adequate protection to informal workers, who constitute 91% of the workforce. The pandemic and misery brought by it on these informal workers highligths the need for universal social security.

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  • Important Judgements In News

    Divesting States of the power to determine backwardness hits federalism

    op-ed snap | Polity | Mains Paper 2: Federalism,Government Scheme/Policies

    The article highlights the issues with the Supreme Court judgement in the Maratha reservation case.

    Three findings from Maratha reservation judgement

    • Recently, the Supreme Court of India declared as unconstitutional a Maharashtra law which provided for reservation to the Maratha community.
    • Three primary findings emanated from the judgement-
    • 1) Maratha not backward class: The Court held that the Maratha community did not constitute a socially and educationally backward class.
    • 2) Breach of 50% limit: The bench said that the law was in breach of a rule previously set by the Court disallowing reservations made in excess of 50% of the total available positions.
    • 3) Power of the States: The Court held that State governments had no independent power to declare a group as a backward class.

    Issues with the judgement

    The latter two findings run against the values of equality and federalism, which the Court has long regarded as integral to India’s democracy.

    1)  50% limit does not stem from the Constitution

    • Articles 16(4) and 15(4) which confer power on the government to make reservations do not contains 50% limitation.
    • Reservation as an exception: Originally, however, these clauses were seen by the Supreme Court as exceptions to a broad rule of formal equality envisioned by the Constitution.
    • To that end, the Court held that to allow reservation in excess of 50% would lead to an exception overriding a rule. 
    • Reservation as basic guarantee: Countering the reservations as an exception position, a seven-judge Bench, in State of Kerala vs N.M. Thomas (1975), held that a programme of reservation was inherent in the Constitution’s basic guarantee of equal treatment.
    • This judgment held that affirmative action by the state was compelled by an objective of attaining substantive equality.
    • With this judgement the rule requiring that reservations stay under 50% ought to have been deemed incongruous.
    • But when the Court sat as a nine-judge Bench in Indra Sawhney vs Union of India (1992) it sustained the 50% limit.
    • The majority on the Bench ruled, on the one hand, that N.M. Thomas was correct in seeing reservations as embedded in a constitutional vision of substantive equality.
    • On the other hand, the bench accepted that reservation made in excess of 50%, barring exceptional circumstances, was harmful to that very vision. 

    2) Interpretation of 102nd Amendment curtails the powers of the State governments to declare groups as backward

    • After Indra Sawhney judgement, the determination of backward classes was made by the National Commission for the Backward Classes, at the level of the Centre, and by regional commissions at the level of the State governments.
    • This division in power, gave States autonomy to classify groups as backward.
    • In contrast, the power to prepare lists of Scheduled Castes and Scheduled Tribes, vested solely with the Union government.
    • The 102nd Amendment (2018), introduced Article 342A.
    • Article 342A stipulated that the President of India may, after consultation with the State government, notify groups of persons within such a State who are deemed to be socially and educationally backward.
    • Any such “Central List”, the clause clarified, could only be altered by Parliament.
    • Article 366(26C) was also added, and “socially and educationally backward classes” was defined as “such backward classes as are so deemed under Article 342A for the purposes of this Constitution”.
    • In interpreting these changes, a majority in the Maratha reservation judgement concluded that the power for determination of other backward classes rests solely with the Centre.

    How this interpretation goes against the federalism

    • This interpretation of 102nd Amendment altogether dispossess States from exercising a time-honoured authority.
    • But yet the amendment, in the Court’s belief, did not violate the Constitution’s basic structure.
    • This was because, according to the majority, the alterations neither took away “the very essence of federalism” nor denuded the States of their effective power to legislate.
    • But divesting states of power this critical, to classify groups as backward, entitling many communities to protection under Articles 15(4) and 16(4) is offensive to the “essence” of federalism.
    • The changes, as interpreted by the Court, directly impede the ability of States to secure just social order.

    Consider the question “What are the implications for the States of the interpretation of the 102nd Amendment by the Supreme Court in the Maratha reservation case?” 

    Conclusion

    It is imperative that Parliament amend the Constitution and grants to States an express power to determine backwardness. Any other result will offend the delicate balance at the heart of Indian federalism.

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  • Foreign Policy Watch: India-United States

    India needs to engage with U.S. progressives

    | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    The artcle highlights the role played by the progressive section in the US politics in influencing U.S. governments decision on TRIPS waiver and providing aid to India. Incidentally, these progressives include names such as Pramila Jayapal whose comment on human rights violations in Jammu and Kashmir had annoyed India.

    What led to change in U.S.’s approach on aid

    • There was a shift in the U.S.’s approach on providing COVID-19-related aid to India as well as on the Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver on COVID-19 vaccines.
    • It is tempting to surmise the shift as being driven by the Comprehensive Global Strategic Partnership with New Delhi.
    • But it is more than just that.
    • The development was a result of the determined push by some sections of the political and business class, civil society, and Indian Americans.
    • Besides them, the progressives in the Democratic Party made a big difference.

    Role of the progressives

    • Days ahead of the May 5 decision of the Biden administration on the TRIPS waiver, 110 members of the U.S. Congress wrote to President Biden urging him to support the waiver.
    • Thus, the Biden administration’s decision on the waiver and the vaccines, characterised as courageous by many, was a result of the push by the progressives.
    • Joining in this effort, the co-chair of the Congressional India Caucus, and over 50 colleagues wrote last week to President Biden seeking supply of specific items.
    • The overall approach is to work with India in its battle against the second wave and prepare for subsequent ones.

    Conclusion

    It is evident that the progressives have a grip on policymaking. India will have to remain engaged with this section instead of offering a cold shoulder as it did in the recent past. As the adage goes, all politics is local.

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  • Foreign Policy Watch: India-Middle East

    Explained: India, Israel and Palestine Ties

    IOCR | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Recently India’s permanent representative to the UN made a carefully crafted statement at the UN Security Council “open debate” on the escalating Israel-Palestine violence.

    Must read:

    [Burning Issue] West Asia Peace Plan

    The story so far

    • The violence started on 6 May, when Palestinian protests began in Jerusalem over an anticipated decision of the Supreme Court of Israel on the eviction of six Palestinian families a neighbourhood of occupied East Jerusalem.
    • Israel’s operation “Guardian of the Walls” began with attacks on Hamas (a fundamentalist Palestinian group) tunnels close to the border fence with Israel.
    • India has adopted a balanced approach to the current Israeli-Palestine conflict that has pushed the volatile region into yet another cycle of violence.

    India’s long-standing position

    • India has since long been maintaining that the Israel-Palestine conflict should be resolved through negotiation resulting in sovereign, independent, viable and united State of Palestine, with East Jerusalem as its capital.
    • India has urged both countries to “engage with each other, including on the recent proposals put forward by the United States, and find an acceptable two-state solution for peaceful coexistence”.

    The dilemma

    • India seems to strive to maintain a balance between India’s historic ties with Palestine and its blossoming relations with Israel.
    • The request that both sides refrain from “attempts to unilaterally change the existing status quo including in East Jerusalem and its neighbourhoods” seems to be a message to Israel about its settler policy.
    • The statement was also emphatic that “the historic status quo at the holy places of Jerusalem including the Haraml al-Sharif/Temple Mount must be respected”.

    Ties with spikes

    • India’s policy on the longest-running conflict in the world has gone from being unequivocally pro-Palestine for the first four decades, to a tense balancing act with its three-decade-old friendly ties with Israel.
    • In recent years, India’s position has also been perceived as pro-Israel.

    From Nehru to Rao

    • The balancing began with India’s decision to normalize ties with Israel in 1992, which came against the backdrop of the break-up of the Soviet Union.
    • There were massive shifts in the geopolitics of West Asia on account of the first Gulf War in 1990.
    • That year, the Palestinian Liberation Organisation (PLO) lost much of its clout in the Arab world by siding with Iraq and Saddam Hussein in the occupation of Kuwait.
    • The opening of an Indian embassy in Tel Aviv in January 1992 marked an end to four decades of giving Israel the cold shoulder, as India’s recognition of Israel in 1950 had been minus full diplomatic ties.
    • PM Nehru’s reasoning for the decision to recognise Israel was that it was “an established fact”, and that not doing so would create bitterness between two UN members.

    Why did India then support Palestine?

    • In 1948, India was the only non-Arab-state among 13 countries that voted against the UN partition plan of Palestine in the General Assembly that led to the creation of Israel.
    • Scholars ascribe various reasons for this India’s own Partition along religious lines; as a new nation that had just thrown off its colonial yoke; solidarity with the Palestinian people who would be dispossessed; and to ward off Pakistan’s plan to isolate India over Kashmir.
    • Later, India’s energy dependence on the Arab countries also became a factor, as did the sentiments of India’s own Muslim citizens.

    India and Palestine

    • The relationship with Palestine was almost an article of faith in Indian foreign policy for over four decades.
    • At the 53rd UN session, India co-sponsored the draft resolution on the right of the Palestinians to self-determination.
    • In the 1967 and 1973 wars, India lashed out at Israel as the aggressor.
    • In the 1970s, India rallied behind the PLO and its leader as the sole and legitimate representative of the Palestinian people.
    • In 1975, India became the first non-Arab country to recognise the PLO as the sole representative of the Palestinian people and invited it to open an office in Delhi.
    • In 1988, when the PLO declared an independent state of Palestine with its capital in East Jerusalem, India granted recognition immediately.

    Continuity for the cause

    • India voted in favour of the UN General Assembly resolution in October 2003 against Israel’s construction of a separation wall.
    • It voted for Palestine to become a full member of UNESCO in 2011, and a year later, co-sponsored the UNGA resolution that enabled Palestine to become a “non-member” observer state at the UN without voting rights.
    • India also supported the installation of the Palestinian flag on the UN premises in September 2015.

    Changes after 2014

    • For two-and-a-half decades from 1992, the India-Israel relationship continued to grow, mostly through defence deals, and in sectors such as science and technology and agriculture.
    • But India never acknowledged the relationship fully.
    • There were few high-profile visits, and they all took place when the PM Vajpayee was in office.
    • Israel was perceived as an ideal of a “strong state” that deals “firmly” with “terrorists”.
    • It was during NDA-2 that the government under PM Modi decided to take full ownership of the relationship with Israel.

    Balancing act

    • Meanwhile, India continues to improve ties with Arab countries, especially Saudi Arabia and the UAE and feels vindicated by the decision of some Arab states to improve ties with Israel.
    • For instance, even as it abstained at UNESCO in December 2017, India voted in favour of a resolution in the UNGA opposing Trump’s recognition of Jerusalem as the Israeli capital.

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  • Creating a new District

    | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Punjab CM has recently declared Malerkotla the 23rd district of the State.

    How are new districts carved?

    • The power to create new districts or alter or abolish existing districts rests with the State governments.
    • This can either be done through an executive order or by passing a law in the State Assembly.
    • Many States prefer the executive route by simply issuing a notification in the official gazette.

    How does it help?

    • States argue that smaller districts lead to better administration and governance.
    • For example, in 2016, the Assam government issued a notification to upgrade the Majuli sub-division to the Majuli district for “administrative expediency”.

    Are there are any exceptions?

    • The State government has been vested with unfettered powers under Section 5 of the Punjab Land Revenue Act, 1887 to create new districts.
    • This power is generally held temporarily in abeyance only during active census operations or during the delimitation exercise of Lok Sabha/Vidhan Sabha constituencies.

    Answer this PYQ in the comment box:

    Q. The Constitution (Seventy-Third Amendment) Act, 1992, which aims at promoting the Panchayati Raj Institutions in the country, provides for which of the following?

    1. Constitution of District Planning Committees.
    2. State Election Commissions to conduct all panchayat elections.
    3. Establishment of State Finance Commissions.

    Select the correct answer using the codes given below:

    (a) Only 1

    (b) 1 and 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

    Does the Central government have a role to play here?

    • The Centre has no role to play in the alteration of districts or creation of new ones. States are free to decide.
    • The Home Ministry comes into the picture when a State wants to change the name of a district or a railway station.
    • The State government’s request is sent to other departments and agencies such as the Ministry of Earth Sciences, Intelligence Bureau, Department of Posts, Geographical Survey of India Sciences and the Railway Ministry seeking clearance.
    • A no-objection certificate may be issued after examining their replies.

    What has been the trend?

    • According to the 2011 Census, there were 593 districts in the country.
    • The Census results showed that between 2001-2011, as many as 46 districts were created by States.
    • Though the 2021 Census is yet to happen, Know India, a website run by the Government of India, says currently there are 718 districts in the country.
    • The surge in number is also due to the bifurcation of Andhra Pradesh into A.P and Telangana in 2014. Telangana at present has 33 districts and A.P has 13 districts.

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  • Legislative Council in States: Issues & Way Forward

    West Bengal government to set up a Legislative Council

    | Polity | Mains Paper 2: Parliament & State Legislatures

    The West Bengal government will set up a Legislative Council (Vidhan Parishad), as per a decision taken up at the Cabinet meeting chaired by its Chief Minister.

    What is a State Legislative Council?

    • The SLC is the upper house in those states of India that have a bicameral state legislature; the lower house being the State Legislative Assembly.
    • As of Jan 2020, 6 out of 28 states have a State Legislative Council. These are Andhra Pradesh, Karnataka, Telangana, Maharashtra, Bihar, and Uttar Pradesh The latest state to have a council is Telangana.

    Creation and abolition

    • According to Article 169, the Parliament can create or abolish the SLC of a state if that state’s legislature passes a resolution for that with a special majority.
    • The existence of an SLC has proven politically controversial.
    • A number of states that have had their LCs abolished have subsequently requested its re-establishment; conversely, proposals for the re-establishment of the LC for a state have also met with opposition.

    Its composition

    • The size of the SLC cannot be more than one-third of the membership of the State Legislative Assembly.
    • However, its size cannot be less than 40 members.
    • These members elect the Chairman and Deputy Chairman from the Council.

    MLCs are chosen in the following manner:

    • One third are elected by the members of local bodies such as municipalities, Gram panchayats, Panchayat samitis and district councils.
    • One third are elected by the members of Legislative Assembly of the State from among the persons who are not members of the State Legislative Assembly.
    • One sixth are nominated by the Governor from persons having knowledge or practical experience in fields such as literature, science, arts, the co-operative movement and social services.
    • One twelfth are elected by persons who are graduates of three years’ standing residing in that state.
    • One twelfth are elected by teachers who had spent at least three years in teaching in educational institutions within the state not lower than secondary schools, including colleges and universities.

    Answer this PYQ in the comment box:

    Q.Consider the following statements:

    1. The Legislative Council of a State in India can be larger in size than half of the Legislative Assembly of that particular State.
    2. The Governor of a State nominates the Chairman of Legislative Council of that particular State.

    Which of the statements given above is/are correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    Powers and functions

    • The Constitution of India gives limited power to the State Legislative Council.
    • The State Legislative Council can neither form nor dissolve a state government.
    • The State Legislative Council also have no role in the passing of money bills.
    • But some of the powers it has is that the Chairman and Deputy Chairman of the State Legislative Council enjoy the same status as Cabinet Ministers in the state.

    Issues with LC

    • It was argued that a second House can help check hasty actions by the directly elected House, and also enable non-elected persons to contribute to the legislative process.
    • However, it was also felt that some of the poorer states could ill afford the extravagance of two Houses.
    • It has been pointed out that the Councils can be used to delay important legislation and to park leaders who have not been able to win an election.

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  • Electoral Reforms In India

    Independent panel to appoint EC members

    | Polity | Mains Paper 2: Constitutional Bodies

    A petition was filed in the Supreme Court seeking the constitution of an independent collegium to appoint members of the Election Commission.

    Election Commission of India (ECI)

    • The ECI is a constitutional body responsible for administering elections in India according to the rules and regulations mentioned in the Constitution of India.
    • It was established on January 25, 1950.
    • The major aim of the election commission of India is to define and control the process for elections conducted at various levels, Parliament, State Legislatures, and the offices of the President and Vice President of India.
    • It can be said that the Election Commission of India ensures the smooth and successful operation of the democracy.

    Functions

    According to Article 324 of the Indian Constitution:

    • the ECI has superintendence, direction, and control of the entire process for conduct of elections to Parliament and Legislature (state legislative assembly & state legislative council) of every State and to
    • the offices of President and Vice-President of India

    Answer this PYQ in the comment box:

    Q.Consider the following statements:

    1. The Election Commission of India is a five-member body.
    2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
    3. Election Commission resolves the disputes relating to splits/mergers of recognized political parties.

    Which of the statements given above is/are correct? (CSP 2017)

    (a) 1 and 2 only

    (b) 2 only

    (c) 2 and 3 only

    (d) 3 only

    Its composition

    • Initially, the commission had only a Chief Election Commissioner. Presently, it consists of a Chief Election Commissioner and two Election Commissioners.
    • For the first time, two additional Commissioners were appointed on 16th October 1989 but they had a very short term till 1st January 1990.
    • Afterwards, on 1st October 1993, two additional Election Commissioners were appointed.
    • The concept of a multi-member Commission has been in operation since then, with decision-making power by majority vote.

    Appointment & Tenure of Commissioners

    • The President has the power to select Chief Election Commissioner and Election Commissioners.
    • They have a tenure of six years, or up to the age of 65 years, whichever is earlier.
    • They have the same status and receive pay and perks as available to Judges of the Supreme Court of India.
    • The CEC can be removed from office only through accusation by Parliament.
    • The election commissioner or a regional commissioner shall not be removed from office except on the recommendation of the CEC.

    Why such demand for independent collegium?

    • The plea filed has said that the practice of government making the appointments is a violation of the Basic Structure of the Constitution and creates a dent in free and fair elections in a democracy.
    • The petition said the recommendation to have a neutral collegium to fill up vacancies in the Election Commission has been given by several expert committees, commissions from 1975.
    • The recommendation was also part of the Law Commission in its 255th report in March 2015.

    Basis for such demand

    • The EC is not only responsible for conducting free and fair elections, but it also renders a quasi-judicial function between the various political parties including the ruling government and other parties.
    • In such circumstances, the Executive cannot be the sole participant in the appointment of members of the Election Commission as it gives unfettered discretion to the ruling party.
    • Therefore it could appoint someone whose loyalty is ensured and thereby renders the selection process vulnerable to manipulation.

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  • Capital Markets: Challenges and Developments

    SEBI proposes framework for Gold Exchange

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    The Securities & Exchange Board of India (SEBI) has floated a consultation paper on the proposed framework for Gold Exchange in India.

    Why such a move?

    • According to SEBI, the proposed exchange would bring in more transparency in the gold trading market in terms of spot price discovery, quality of the gold and enable greater integration with the financial markets.

    What is a Gold Exchange?

    • As the name suggests, this would offer trading facilities in the precious metal.
    • Entities like retail investors, banks, foreign portfolio investors (FPIs), jewellers and bullion dealers among others would be allowed to trade on the exchange.
    • While there are existing commodity exchanges that offer trading in gold contracts, those are derivative instruments while the proposed gold exchange would allow trading akin to the spot market.
    • This move assumes significance as India is the second-largest consumer of gold – after China – with an annual demand of around 800-900 tonnes.

    Answer this PYQ:

    Q.What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

    1. To bring the idle gold lying with India households into the economy
    2. To promote FDI in the gold and jewellery sector
    3. To reduce India’s dependence on gold imports

    Select the correct answer using the code given below

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    What are the ways in which one can invest in gold now?

    • For those wanting to buy physical gold, a visit to the neighbourhood jeweller would suffice.
    • Meanwhile, there are online platforms such as Paytm, Kuvera and Indiagold among others that allow an individual to buy gold in digital form.
    • The advantage of buying gold in digital form is that one can put in a very small amount as well with some platforms allowing a minimum investment of just Rs 100.
    • Digital gold products have become quite popular among millennials. Then there are sovereign gold bonds issued by the government.
    • One can even look at Gold ETFs or gold funds by mutual funds.
    • Even gold derivative contracts traded on the exchanges have the option of physical settlement, which means investors can get physical delivery of gold.

    How can one trade on a gold exchange?

    • The SEBI has proposed an instrument called ‘Electronic Gold Receipt’, or EGR.
    • The gold exchange, along with intermediaries like the vault manager and the clearing corporation, would facilitate the creation of EGR and its trading.
    • So, participants can convert their physical gold into EGR, which can then be bought or sold on the exchange like any normal equity share of a listed company.
    • The EGR can even be converted back into physical gold. As part of the draft regulations, SEBI has proposed three denominations of EGR – one kilogram, 100 grams and 50 grams.
    • It has, however, added that EGRs of five grams or 10 grams can also be allowed for trading to increase the liquidity of the market and attract more participants.

    How can one convert physical gold into EGRs?

    • An entity that intends to convert physical gold into EGR will have to go to a ‘Vault Manager’.
    • According to the proposed framework, any entity registered in India and with a net worth of at least Rs 50 crore can apply to become a vault manager.
    • After the receipt of the gold, the vault manager would create an EGR for which the depository will assign an International Securities Identification Number, or ISIN, which is a unique code to identify the specific security.
    • Once the ISIN is issued, the EGR can be traded on the gold exchange just like any other tradable security.

    Can EGRs be again converted into physical gold?

    • To convert an EGR into physical gold, the owner of the EGR will have to surrender the EGR to the vault manager who will deliver the gold and extinguish the electronic receipt.
    • Considering the logistics and delivery challenges, it has been proposed that conversion of an EGR into physical gold should be allowed only if a minimum of 50 grams of gold has been accumulated in electronic form.

    Issues with gold exchange

    • Since the EGRs would be traded on an exchange, Securities Transaction Tax (STT) would be levied. Also, GST would be applicable when EGRs are converted into physical gold for withdrawal.
    • If in case the buyer and seller are from different states then levying state GST could be cumbersome. SEBI is mulling if only IGST or Integrated Goods and Services Tax can be levied to resolve this issue.
    • As far as transactions are concerned, SEBI working groups have suggested that an entire transaction be divided into three tranches.

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  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    Brain drain of India’s health worker

    op-ed snap | Governance | Mains Paper 2: Health & Education

    The article highlights the issue of shortage of healthcare workers in India even as it exports its healthcare workers to other countries.

    India as an exporter of healthcare workers

    • For several decades, India has been a major exporter of healthcare workers to developed nations particularly to the Gulf Cooperation Council countries, Europe and other English-speaking countries.
    • As per OECD data, around 69,000 Indian trained doctors worked in the UK, US, Canada and Australia in 2017.
    • In these four countries, 56,000 Indian-trained nurses were working in the same year.
    • There is also large-scale migration of health workers to the GCC countries but there is a lack of credible data on the stock of such workers in these nations.
    • There is no real-time data on high-skilled migration from India as in the case of low-skilled and semi-skilled migration.

    Shortage of nurses and doctors

    • The migration of healthcare workers is part of the reason for the shortage in nurses and doctors.
    • If we look at the figures for countries where we export our healthcare workers, we see just how big the difference is between the sending and the receiving countries.
    • As per government reports, India has 1.7 nurses per 1,000 population and a doctor to patient ratio of 1:1,404.
    • This is well below the WHO norm of 3 nurses per 1,000 population and a doctor to patient ratio of 1:1,100.
    • But, this does not convey the entire problem.
    • The distribution of doctors and nurses is heavily skewed against some regions.
    • Moreover, there is high concentration in some urban pockets.

    Factors driving migration

    • There are strong pull factors associated with the migration of healthcare workers, in terms of higher pay and better opportunities in the destination countries.
    • However, there are strong push factors that often drive these workers to migrate abroad.
    • The low wages in private sector outfits along with reduced opportunities in the public sector plays a big role in them seeking employment opportunities outside the country.
    • The lack of government investment in healthcare and delayed appointments to public health institutions act as a catalyst for such migration.

    Measures to check brain drain and issues with it

    • Over the years, the government has taken measures to check the brain drain of healthcare workers with little or no success.
    • In 2014, it stopped issuing No Objection to Return to India (NORI) certificates to doctors migrating to the US.
    • The NORI certificate is a US government requirement for doctors who migrate to America on a J1 visa and seek to extend their stay beyond three years.
    • The non-issuance of the NORI would ensure that the doctors will have to return to India at the end of the three-year period.
    • The government has included nurses in the Emigration Check Required (ECR) category.
    • This move was taken to bring about transparency in nursing recruitment and reduce the exploitation of nurses in the destination countries.
    • The government’s policies to check brain drain are restrictive in nature and do not give us a real long-term solution to the problem.

    Way forward

    • We require systematic changes that could range from increased investment in health infrastructure, ensuring decent pay to workers and building an overall environment to motivate them to stay in the country.
    • The government should focus on framing policies that promote circular migration and return migration — policies that incentivise healthcare workers to return home after the completion of their training or studies.
    •  It could also work towards framing bilateral agreements that could help shape a policy of “brain-share” between the sending and receiving countries.
    • The 2020 Human Development Report shows that India has five hospital beds per 10,000 people — one of the lowest in the world.
    • Increased investment in healthcare, especially in the public sector, is thus the need of the hour.
    • This would, in turn, increase employment opportunities for health workers.

    Consider the question “What are the factors driving the migration of healthcare workers from India? Suggest the measure to stem their migration.”

    Conclusion

    India needs systematic changes that could range from increased investment in health infrastructure, ensuring decent pay to health workers and building an overall environment that could prove to be beneficial for them and motivate them to stay in the country.

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