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  • Intellectual Property Rights in India

    A TRIPS waiver is useful but not a magic pill

    The article highlights the challenges countries could face despite the patent waiver for Covid-19 vaccine.

    TRIPS waiver for Covid-19 vaccine

    • The United States has finally relented and declared its support for a temporary waiver of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement for COVID-19 vaccines at the World Trade Organisation (WTO).
    • Hopefully, the U.S.’s decision would cause other holdouts like Canada and the European Union to give up their opposition.
    • While the U.S.’s decision is to be welcomed, the devil would be in the details.

    The challenges after waiver

    1) Conditions of the waiver

    •  If the experience of negotiating such waivers, especially on TRIPS, were anything to go by, it would be too early to celebrate.
    • In the aftermath of the HIV/AIDS crisis the WTO adopted a decision in 2003 waiving certain TRIPS obligations to increase the accessibility of medicines.
    • However, this waiver (later incorporated as Article 31 bis in the TRIPS agreement) was subject to several stringent requirements such as the drugs so manufactured are to be exported to that nation only; the medicines should be easily identifiable through different colour.
    • Given these cumbersome requirements, hardly any country, in the last 17 years, made effective use of this waiver.

    2) Countries will protect the interest of pharma companies

    •  India and South Africa proposed a waiver not just on vaccines but also on medicines and other therapeutics and technologies related to the treatment of COVID-19.
    • So, the U.S. has already narrowed down the scope of the waiver considerably by restricting it to vaccines.
    • Medicines useful in treating COVID-19 and other therapeutics must be also included in the waiver.
    • While the U.S. would not like to be seen as blocking the TRIPS waiver and attracting the ire of the global community, make no mistake that it would resolutely defend the interests of its pharmaceutical corporations.

    3) Lack of access to technology

    • The TRIPS waiver would lift the legal restrictions on manufacturing COVID-19 vaccines.
    • But it would not solve the problem of the lack of access to technological ‘know-how’ related to manufacturing COVID-19 vaccines.
    • Waiving IP protection does not impose a legal requirement on pharmaceutical companies to transfer or share technology.
    • While individual countries may adopt coercive legal measures for a forced transfer of technology, it would be too draconian and counterproductive.
    • Therefore, governments would have to be proactive in negotiating and cajoling pharmaceutical companies to transfer technology using various legal and policy tools including financial incentives.

    4) Domestic IP regulation

    • While a TRIPS waiver would enable countries to escape WTO obligations, it will not change the nature of domestic IP regulations.
    • Therefore, countries should start working towards making suitable changes in their domestic legal framework to operationalise and enforce the TRIPS waiver.
    • In this regard, the Indian government should immediately put in place a team of best IP lawyers who could study the various TRIPS waiver scenarios and accordingly recommend the changes to be made in the Indian legal framework.

    Conclusion

    Notwithstanding the usefulness of the TRIPS waiver, it is not a magic pill. It would work well only if countries simultaneously address the non-IP bottlenecks.

  • Renewable Energy – Wind, Tidal, Geothermal, etc.

    Power generation from renewables increased despite drop in new capacity

    What the data from Central Electricity Authority says

    • The total power generation from renewable energy sources including solar, wind, bagasse, biomass, small hydro and others stood at 147.25 billion units in FY21 compared with 138.34 billion units in FY20.
    • This is an increase of six per cent, according to data from the Central Electricity Authority.
    • All other key segments such as thermal, hydro and nuclear have reported a drop in power generation during FY21.
    • This is despite a significant drop in new capacity addition in the renewables sector in Covid-battered 2020-21.
    • The total power generation from renewable energy sources (including solar, wind, bagasse, biomass, small hydro and others) stood at 147.25 billion units in FY21 compared with 138.34 billion units in FY20.
    • In FY21, total power generation from thermal, hydro, nuclear and renewables stood at 1372.9 billion units compared with 1383.33 billion units in FY20.

    Factors responsible

    • There are several factors working for an increase in generation by renewable sources.
    • The first factor is the thrust given to renewable energy by the government.
    • Second is the growing environmental awareness in the country, and the potential growth is driving more capacity creation here.
    • Third, getting in investment, — both domestic and foreign, is easier as this is an attractive area for them.
  • Foreign Policy Watch: India – EU

    India and EU relaunch FTA talks, sign connectivity partnership

    Resumption of FTA

    • Prime Minister of India interacted virtually from Delhi with EU chiefs.
    • India and the European Union agreed to relaunch free trade negotiations by resuming talks that were suspended in 2013 for the Bilateral Trade and Investment Agreement (BTIA).
    • The talks had run into trouble over market access issues, and tariffs by India on products like wine, dairy and automotive parts, as well as EU resistance over visas for Indian professionals.
    • In addition, Indian government’s decision to scrap all Bilateral Investment Treaties (BITs) in 2015 posed hurdles for new EU investments in India.

    Connectivity Partnership document

    • The EU-India leaders adopted a Connectivity Partnership document.
    • The India-EU connectivity partnership committed the two sides to working together on digital, energy, transport, people to people connectivity.
    • The partnership is seen as a response to China’s Belt and Road Initiative, and comes as the EU’s negotiations with China on their Comprehensive Agreement on Investment (CAI) have run into trouble.
    • The contract for the second tranche of $150 million from the EU for the Pune Metro rail project was also signed.

    No EU support for Covid-19 vaccine waiver

    • India failed to secure the support of the European leaders for patent waivers for Covid vaccine.
    • The support of a major bloc like the EU is crucial to passing the resolution at the WTO by consensus.
  • Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

    Environment Appraisal Committee allows Great Nicobar plan to advance

    About the Great Nicobar plan

    • The Environment Appraisal Committee (EAC) – Infrastructure I of the Ministry of Environment, Forest and Climate Change (MoEFCC) has flagged serious concerns about NITI Aayog’s ambitious project for Great Nicobar Island.
    • The EAC was responding to ‘pre-feasibility’ report, ‘Holistic Development of Great Nicobar Island at Andaman and Nicobar Islands’.
    • The report is prepared for the NITI Aayog by the Gurugram-based consulting agency.
    • The proposal includes an international container transshipment terminal, a greenfield international airport, a power plant and a township complex spread over 166 sq. km. and is estimated to cost ₹75,000 crore.
    • The committee has, however, removed the first hurdle faced by the project.
    • It has recommended it “for grant of terms of reference (TOR)” for Environmental Impact Assessment (EIA) studies, which in the first instance will include baseline studies over three months.

    What the EAC said

    • The committee noted that the site selection for the port had been done mainly on technical and financial criteria, ignoring the environmental aspects.
    • It has now asked for an independent study/ evaluation for the suitability of the proposed port site with specific focus on Leatherback Turtle, Nicobar Magapode and Dugong.
    • It highlighted the need for an independent assessment of terrestrial and marine biodiversity, a study on the impact of dredging, reclamation and port operations, including oil spills.
    • It has also highlighted the need for studies of alternative sites for the port with a focus on environmental and ecological impact,  analysis of risk-handling capabilities, a seismic and tsunami hazard map, a disaster management plan, an assessment of the cumulative impact, and a hydro-geological study to assess impact on round and surface water regimes.
    • The committee has also asked for details of the corporate environment policy of the implementing agency — whether the company has an environment policy, a prescribed standard operating procedure to deal with environmental and forest violations, and a compliance management system.
  • Foreign Policy Watch: India-United States

    What patent waiver in the COVID fight mean for global health equity

    The article highlights the implications of patent waiver for Covid-19 for global health equity.

    Where the opposition to waiver proposal came from

    • Recently, the US agreed to support the India-South Africa proposal, seeking a waiver of patent protection for technologies needed to combat and contain COVID-19.
    • Response to the proposal was divided during earlier debates at the WTO.
    • While many low and middle income countries supported it, resistance came from the U.S., the United Kingdom, the European Union, Switzerland, Australia and Japan.
    • Since the WTO operates on consensus rather than by voting, the proposal did not advance despite drawing support of over 60 countries.
    • Predictably, the pharmaceutical industry fiercely opposed it and vigorously lobbied many governments.
    • Right-wing political groups in the high income countries sided with the industry.

    Issues with the reasons given for opposition to the waiver proposal

    1) Quality and safety of vaccine production in low and middle-income countries

    • It was argued that the capacity for producing vaccines of assured quality and safety was limited to some laboratories.
    • So, it is argued that it would be hazardous to permit manufacturers in low and middle-income countries.
    • However, pharmaceutical manufacturers have no reservations about contracting industries in those countries to manufacture their patent-protected vaccines for the global market.

    2) Licenced manufacturing

    • The counter to patent waiver is an offer to license manufacturers in developing countries while retaining patent rights.
    • This restricts the opportunity for production to a chosen few.
    • The terms of those agreements are opaque and offer no assurance of equity in access to the products at affordable prices, either to the country of manufacture or to other developing countries.

    3) Supplying vaccines through COVAX facility

    • It was also stated that developing countries could be supplied vaccines through the COVAX facility, set up by several international agencies and donors.
    • While well-intended, it has fallen far short of promised delivery.
    • Some U.S. states have received more vaccines than entire Africa has from COVAX.

    4) No availability of extra capacity for vaccine production

    • Critics of a patent waiver say there is no evidence that extra capacity exists for producing vaccines outside of firms undertaking them now.
    • Even before the change in the U.S.’s position, manufacturers from many countries expressed their readiness and avidly sought opportunities to produce the approved vaccines.
    • They included industries in Canada and South Korea, suggesting that capable manufacturers in high income countries too are ready to avail of patent waivers but are not being allowed to enter a restricted circle.
    • The World Health Organization’s mRNA vaccine technology transfer hub has already drawn interest from over 50 firms.
    • Instead of arguing that capacity is limited, high-income countries and other donors should be supporting the growth of more capacity to meet the current and likely future pandemic.
    • They should learn from the manner in which India built up capacity and gained a reputation as a respected global pharmacy by moving from product patenting to process patenting between 1970 and 2005.

    5) Time required to utilise patented technology is long

    • Patent waivers are also dismissed as useless on the grounds that the time taken for their utilisation by new firms will be too long to help combat the present pandemic.
    • But many countries have low vaccination rates and variants are gleefully emerging from unprotected populations.
    • This makes it difficult to put the end date for the pandemic to end

    6) China factor

    • An argument put forth by multinational pharmaceutical firms is that a breach in the patent barricade will allow China to steal their technologies, now and in the future.
    • The original genomic sequence was openly shared by China, which gave these firms a head start in developing vaccines.

    Issue of rewarding innovation financially

    • Much of the foundational science that built the path for vaccine production came from public-funded universities and research institutes.
    • Further, what use is it to hold on to patents when global health and the global economy are devastated?
    • It is often argued that for defending patent protection, is that innovation and investment by industry need to be financially rewarded to incentivise them to develop new products.
    • Even if compulsory licences are issued bypassing patent restrictions, royalties are paid to the original innovators and patent holders.

    Way forward

    • Developing countries must take heart from his gesture and start issuing compulsory licences.
    • The Doha declaration on TRIPS flexibilities permits their use in a public health emergency.
    • High-income countries and multilateral agencies should provide financial and technical support to enable expansion of global production capacity.

    Consider the question “Why are the implications of patent waiver for Covid-19 vaccine for the global health equity? What were the reasons for opposition to waiver proposal?” 

    Conclusion

    The U.S.-supported patent waiver in the COVID fight has the potential to bring in much-needed global health equity.

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

    Section 142 of the Social Security Code – 2020 Notified

    Aadhaar mandatory

    • The Union government has made Aadhaar mandatory for availing social security benefits, and for registration on a national informal workers’ database being developed for migrants.
    • The labour ministry has notified section 142 of the social security code.
    • It allows authorities to collect Aadhaar details for the database of beneficiaries under various social security schemes.
    • The move will be applicable to both formal and informal workers and may also help in curbing duplication of data by keeping imposters at bay, authorities said.
    • However, people who don’t have Aadhaar will not be denied of benefits, the ministry claims.

    National informal workers’ database

    •  National database for unorganized workers is at an advanced stage of development by National Informatics Centre.
    • The portal is aimed at collection of data for unorganized workers, including migrant workers for the purpose of giving benefits of the various schemes of the government.
    • An inter-state migrant worker can register himself on the portal on the basis of submission of Aadhaar alone.

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    BACK2BASICS

    • The Code on Social Security, 2020 is a code to amend and consolidate the laws relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised or any other sectors.
    • The Social Security Code, 2020 brings unorganised sector, gig workers and platform workers under the ambit of social security schemes, including life insurance and disability insurance, health and maternity benefits, provident fund and skill upgradation, etc. The act amalgamates 9 central labour enactments relating to social security.
    • To access complete Act, you can click on the link given below:

    https://labour.gov.in/sites/default/files/SS_Code_Gazette.pdf

  • Pulses Production – Subramanian Committee, Eco Survey, etc.

    Mini-Seed Kits to boost pulses output in kharif 2021

    Central government to distribute mini-kits of seed

    • The government on said it will distribute over 20 lakh mini-kits of seeds worth Rs 82.01 crore as part of a strategy to boost pulses production in the kharif season of the 2021-22 crop year.
    • The total cost for these mini-kits will be borne by the central government to boost the production and productivity of tur, moong and urad.
    • In addition to this, the usual programme of inter-cropping and area expansion by the states will continue on a sharing basis between the Centre and state, it said.

    Increasing production and productivity

    • From a meagre production of 14.76 million tonnes in the 2007-08 crop year, pulses production has now reached 24.42 million tonnes in the 2020-2021 crop year, which is a phenomenal increase of 65 per cent.
    • India is still importing around 4 lakh tonnes of tur, 0.6 lakh tonnes of moong and around 3 lakh tonnes of urad for meeting its demand.
    • The special programme will increase the production and productivity of the three pulses of tur, moong and urad to a great extent and will play an important role in reducing the import burden.
  • RBI Notifications

    RBI steps in to ease COVID-19 burden

    Term Liquidity Facility announced

    • Reserve Bank of India stepped in on Wednesday with measures aimed at alleviating any financing constraints for healthcare infrastructure and services reeling under the second Covid wave.
    • RBI Governor announced a Term Liquidity Facility of ₹50,000 crore with tenor of up to three years, at the repo rate, to ease access to credit for providers of emergency health services.
    • Under the scheme, banks will provide fresh lending support to a wide range of entities, including vaccine manufacturers, importers/suppliers of vaccines and priority medical devices, hospitals/dispensaries, pathology labs, manufacturers and suppliers of oxygen and ventilators, and logistics firms. 
    • These loans will continue to be classified under priority sector till repayment or maturity, whichever is earlier.

    Measures for individual and MSME borrowers

    • As part of a “comprehensive targeted policy response”, the RBI also unveiled schemes to provide credit relief to individual and MSME borrowers impacted by the pandemic.
    • RBI unveiled a Resolution Framework 2.0 for COVID-related stressed assets of individuals, small businesses and MSMEs.
    • To provide further support to small business units, micro and small industries, and other unorganised sector entities the RBI decided to conduct special three-year long-term repo operations (SLTRO) of ₹10,000 crore at the repo rate for Small Finance Banks.
    • The SFBs would be able to deploy these funds for fresh lending of up to ₹10 lakh per borrower.
    • In view of the fresh challenges brought on by the pandemic and to address the emergent liquidity position of smaller MFIs, SFBs are now being permitted to reckon fresh lending to smaller MFIs (with asset size of up to ₹500 crore) for onlending to individual borrowers as priority sector lending.

    Measure for States

    • To enable the State governments to better manage their fiscal situation in terms of their cash flows and market borrowings, maximum number of days of overdraft (OD) in a quarter is being increased from 36 to 50 days and the number of consecutive days of OD from 14 to 21 days, the RBI said.
  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    Atmanirbhar Bharat & the informal sector

    The article highlights the important role the informal sector can play in the vision of Atmanirbhar Bharat.

    Economic development through Atmanirbhar Bharat

    • The vision of the Atmanirbhar Bharat is rooted in the classical paradigm of economic development, based on demand injection in the economy via two sources, domestic and external.
    • ‘Vocal for local’ exhorts a distinct and decisive shift in consumer preferences towards locally-produced goods and services.
    • ‘Make for the world’ is more ambitious and resembles the export-led growth strategy adopted in East Asia.
    • Thus, the Atmanirbhar Bharat categorically bestows the Indian economy with twin engines of growth.

    Important role informal sector can play

    • The strategy is based on an assumption of lack of adequate demand.
    • So a prognosis of supply side with respect to the ability of domestic producers of goods and services to seize the opportunity at the requisite scale and scope is pertinent.
    • The nature, character, structure and contributions of the informal sector require retrospection.
    • The size of India’s informal sector is massive, it accounts for about 50% of GVA and a major share in the export basket.
    • This position proffers it with growth opportunities emanating from domestic as well as external sources.

    Constraints faced by informal sector

    • Most firms are micro in size and deploy little capital.
    • They have a small scale of production, substandard/unbranded quality of products, and localised scope of procuring raw material and marketing their products.
    • They are vulnerable to business downturns and other market uncertainties, as reflected in high mortality.
    • Their access to cheap, reliable and long-term credit sources is highly restricted.
    • The sector also endures a lack of official identity and recognition of its existence and contribution.

    Three transformations informal sector need to adopt

    • Atmanirbhar Bharat promises enhanced demand for domestically-produced goods and services, but the exposure to stiff global competition, especially for informal sector units, is imminent.
    • In such a scenario, the informal sector must embrace for three tectonic shifts with respect to internal transformation, strategic positioning and labour-market dynamics.

    1)  Internal transformation

    • Enterprises must undergo drastic internal transformation, progressively converging at incremental formalisation through spontaneous and self-propelled transition into economically-viable units.
    • It requires infusion of capital to ensure enhanced labour productivity and higher wages.
    • A systemic disruption, fostering natural growth must be ushered in, which would also curb the birth of new informal enterprises.
    • Moreover, internal consolidation in the sector via merger and acquisitions of units would bring benefits accruing from scale economies.

    2) Strategic positioning

    • Two, because the vision of the Atmanirbhar Bharat exposes the informal sector to global competition, entrepreneurs must embrace the subtle art of strategic positioning in global mega-supply chains.
    • They must pick their products and markets with utmost care, and engrain two mantras of success at the global stage in the DNA of their business strategies.
    • Global mega-supply chains demand ultra-flexibility in production cycle in addition to heightened resilience to withstand headwinds emanating from not just domestic factors but also global.

    3) Labour market dynamics

    • The informal sector employs more than 80% of India’s workforce.
    • The changes in the first two spheres i.e. higher capital intensity-led enhanced labour productivity and ultra-flexibility in production cycles may have severe repercussions on the availability and quality of jobs in India.
    • To alleviate these concerns, the first assumption is that the proportionate increase in expected demand must be more than the enhanced labour productivity to at least retain the currently employed workers.
    • To generate good quality jobs, diversification (both horizontal and vertical) must be encouraged.
    • Vertical diversification entails products not just be partly produced or assembled in India, they must be the end-products of fully indigenised and integrated production and supply chains, from design to made in India.
    • Horizontal diversification involves expansion into newer products and markets, smartly aligning with India’s comparative advantage of surplus labour.

    Consider the question ” India’s vast informal sector is poised to play an instrumental, decisive and intriguing role in the vision of the Atmanirbhar Bharat.  But the sector, in its current form, appears severely constrained to harness the opportunities. In lights of this, examine the constraints faced by the sector and suggest the measures needed to transform the sector.” 

    Conclusion

    The vision of the Atmanirbhar Bharat is an inflexion point for India’s informal sector, which stipulates adroit manoeuvring between contrasting forces of continuity and change.

  • Coronavirus – Health and Governance Issues

    U.S. to support intellectual property waiver for COVID-19 vaccines

    US in support of TRIPS waiver

    • The United States announced its support to an initiative at the World Trade Organisation (WTO) to waive Trade Related Intellectual Property Rights (TRIPS) protection for COVID-19 vaccines.
    • The initiative was first floated by India and South Africa last October.
    • Over a 100 countries have supported the proposal, according to the Associated Press.

    Opposition to the move

    • Among the arguments proffered to retain IP protection are that biotech jobs will be transferred from the U.S. to foreign countries and that waiving IP still not does overcome bottlenecks like manufacturing capacity.
    • Twelve Republican Members of Congress wrote to Mr. Biden on Tuesday urging him to consider other means to increase vaccine access that did not involve weaking IP protections.
    • Weakening protections would hamper American competitiveness and innovation, they said.

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