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  • Coronavirus – Health and Governance Issues

    The vaccine patent row

    7 May 2021 | | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    What is the vaccine patent row about?

    • Medicines and other inventions are covered by patents which provide legal protection against being copied, and vaccines are no exception.
    • Patents give makers the rights to their discoveries as well as the means to make more money from them – which is an incentive to encourage innovation.
    • But these are not normal times.
    • Last autumn, developing nations led by India and South Africa proposed to the World Trade Organization (WTO) that the patents on vaccinations and other Covid-related items should be waived.
    • They argued that, given the extreme nature of the pandemic, the recipe for the life-saving jabs should be made widely available so they could be produced locally in bulk by other manufacturers.

    What’s the problem?

    • The proposals were met with immediate criticism from pharmaceutical companies and Western nations including the EU, UK and the US.
    • The obvious objection to lifting patents is that it could erode revenue and deter innovation.

    So, does this just come down to money?

    • The key argument from vaccine producers and their home countries is that waiving patents alone wouldn’t solve much. It would, they say, be like handing out a recipe without the ingredients or instructions.
    • The patent covers the bare bones of the blue print but not the precise production process. That’s crucial here. Vaccines of the mRNA type – such as Pfizer and Moderna – are a new breed and only a small number of people understand how to make them.
    • BioNTech, the German company which partnered with Pfizer, have said that developing the manufacturing process took a decade and validating production sites can take up to a year. The availability of the raw materials needed has also been an issue.
    • Industry bodies fear that without access to all the know-how and parts, a waiver could result in quality, safety and efficacy issues and possibly even counterfeits. They point out that Moderna has already said it would not prosecute those found to be infringing their patent – but no one has yet.

    What’s the alternative?

    • The EU says it is ready to talk, but it previously said the best short-term fix would be supply chain improvements and pushing richer countries to export more jabs.
    • The UK says it is one of the biggest donors to Covax, which is masterminding the rollout of vaccines to many poorer countries. It also favours voluntary licensing – such as collaborations between the Serum Institute of India and Oxford-AstraZeneca. It wants the WTO, which oversees the rules on global trade, to support more partnerships.
    • The WTO system allows for this licensing arrangement to go even further. Governments can impose compulsory licenses on vaccine makers, compelling them to share their know-how and overseeing the production process along the way. But those pharmaceutical companies would have to be compensated for doing so.

    Why did the US change its mind?

    The announcement came after the US Trade Representative Katharine Tai held meetings with the big vaccine makers in an effort to supercharge vaccine production.

    What happens next?

    • Now the discussions will continue at the WTO where decisions are made by consensus.
    • Without the backing of other key nations, the proposals may stall. But they may pave the way to a compromise that could boost production.
    • The key question is when – and by how much.

    Support grows for IP waiver

    • Attention is now turning to those richer nations, notably in the European Union — and France was the first to voice its support.
    • France joined the United States in supporting an easing of patent and other protections on COVID-19 vaccines that could help poorer countries get more doses and speed the end of the pandemic.
    • Russian President Vladimir Putin also said he supported the idea of a waiver on patent protections for coronavirus vaccines.

     

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  • [pib] India-UK virtual summit strengthens STI cooperation

    7 May 2021 | PIB | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Enhance partnership in science, education, research and innovation

    • The Prime Minister of India and the UK  met virtually on 4 May 2021 and emphasised their shared commitment to an enhanced partnership in science, education, research and innovation.
    • In keeping with this commitment, both the leaders welcomed the following:
    • The new MoU on Telecommunications/ICT and the Joint Declaration of Intent on Digital and Technology.
    • There was also the establishment of new high-level dialogues on tech.
    • A new joint rapid research investment into Covid19.
    • A new partnership to support zoonotic research,
    • New investment to advance understanding of weather and climate science.
    • There will be continuation of the UK-India Education and Research Initiative (UKIERI).

    Key points to strengthen STI cooperation

    • Enhance cooperation between India and the UK on strengthening the role of women in STEM at schools, universities, and research institutions through initiatives like Gender Advancement for Transforming Institutions (GATI) project.
    • Develop collaborations between Industry, Academia and the Government to foster innovation among school students by focusing on teacher training, mentoring and sharing of global best practices through initiatives like the India Innovation Competency Enhancement Program (IICEP)
    • Build on the two countries’ existing bilateral research, science and innovation infrastructure and governmental relationships to continue to support high-quality, high-impact research and innovation through joint processes.
    • Forge partnership across the pipeline of research and innovation activity, from basic research to applied and interdisciplinary research.
    • Leverage and build on existing, long-standing bilateral partnerships such as on education, research and innovation, to stimulate a joint pipeline of talent, excellent researchers and early-career innovators.
    • Work together to share knowledge and expertise regarding artificial intelligence, scientific support to policies and regulatory aspects including ethics, and promote a dialogue in research and innovation.
    • Through Tech Summits, bring together tech innovators, scientists, entrepreneurs and policy makers to work together on challenges including the norms and governance of future tech under the cross-cutting theme of ‘data’.
    •  Grow programmes such as the Fast Track Start-Up Fund to nurture innovation-led, sustainable growth and jobs, and tech solutions that benefit both countries.

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  • Coronavirus – Health and Governance Issues

    What the easing of IP norms on Covid vaccines means for India

    7 May 2021 | Explained | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Background of waiver proposal

    • U.S. President Joe Biden’s administration announced its support for waiving intellectual property protections for COVID-19 vaccines.
    • Following the onset of the pandemic, the World Health Organisation proposed a COVID-technology access pool as a knowledge sharing initiative to rapidly scale up vaccine output around the world.
    • As vaccine research progressed last year, wealthy and advanced countries, placed huge advance purchase orders for vaccines.
    • This meant that smaller, developing countries would take longer to get vaccines and find resources to pay for them.
    • In October 2020, India and South Africa floated a proposal at the World Trade Organisation’s TRIPS (Trade-Related Aspects of Intellectual Property Rights) Council to waive certain provisions of the WTO’s TRIPS pact till the pandemic subsides.
    • The proposal envisaged facilitating wider access to technologies necessary for the production of vaccines and medicines.
    • While a majority of the least developed countries backed the proposal, some like China, Turkey and Thailand sought more clarity.
    • However, the proposal was nixed with the E.U., the U.S., Switzerland, Norway, Australia, Canada, Japan and the U.K. rejecting it outright, along with Brazil.
    • Among other things, the argument was that such waivers could dampen innovation and research in areas such as pharmaceuticals and diagnostic technologies.

    What next

    • The WTO’s TRIPS Council is tentatively expected to hold a meeting on the waiver proposal again later this month.
    • If and when an agreement is reached here, the WTO’s Ministerial Council will also have to sign off.
    • Since WTO decisions are based on consensus, all 164 members need to agree on every single aspect of the negotiated waivers and conditions attached.

    Way forward for India

    • The Centre can take two steps immediately in consonance with its stance at the WTO, following the U.S.’ statement of support.
    • The Union government must issue notification under Sections 92 and 100 of the Patents Act to freely licence all patents necessary for vaccine and drug production to treat COVID-19.
    • Issues of the amount of royalties can be decided in due course as laid out in the Patents Act, but that should not come in the way of immediate licensing by the government.
    • The government need to provide full support to companies to scale up vaccine production.
    • Indian industry has a well-respected expertise and capability to rapidly manufacture raw materials, consumables and equipment necessary to produce drugs, vaccines, medical devices and equipment if Intellectual Property barriers are removed.

    ————————————————-//—————————————

    BACK2BASICS

    • COVID-19 Technology Access Pool (C-TAP) will compile, in one place, pledges of commitment made under the Solidarity Call to Action to voluntarily share COVID-19 health technology-related knowledge, intellectual property and data. C-TAP works through its implementing partners, the Medicines Patent Pool, Open COVID Pledge, UN Technology Bank-hosted Technology Access Partnership and Unitaid to facilitate timely, equitable and affordable access to COVID-19 health technologies.

    Understand how the story has progressed:

    India seeks TRIPS waiver for Vaccines

    How IPR served as barrier to the right to access healthcare

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    India should go all out in its Westward trade push

    6 May 2021 | op-ed snap | Economics
    Mains Paper 3: Indian Economy

    After walking away from the RCEP, India needs to find alternative trading partners that can offer the potential for trade expansion. The article suggests a Westward trade push as an alternative.

    Forging trade deals with the Western countries

    • Our rejection of RCEP, which covers much of the eastern hemisphere, had exposed us to the risk of losing out on cross-border commercial relations in a highly dynamic part of the world.
    • To compensate for the opportunity cost of that decision, it was imperative to strike other alliances.
    •  As a part of this, India adopted a roadmap for the rest of this decade to elevate ties with the UK and also moving to revive free-trade talks with the EU.
    • An India-UK plan unveiled recently will raise our bilateral relationship to a ‘comprehensive strategic partnership in such areas as economic affairs, defence and health.
    • The two countries signed a £1-billion trade investment pact that is expected to generate jobs in both.
    • Separately, India and the EU are reportedly working out how to resume stalled negotiations for a trade deal.

    Issues India may face

    • The signing of pacts would involve mutual tariff reductions and the lowering of other barriers, both of which have proven thorny so far.
    • In general, while the West wants us to lower import duties, our negotiators have been citing India’s sovereign right to protect domestic businesses under World Trade Organization rules.
    • Globally, even before covid knocked the wind out of the sails of cargo ships, commerce across borders had been doing badly under the extended effects of a financial crisis that shook things up in 2008-09.
    • But world trade remains a reliable path to global prosperity and must therefore regain its gusto.
    • For us, deal-making would mean opening up markets to imports in lieu of easier access to foreign ones.

    Way forward

    • Concessions that cause very few job losses in India can easily be made. A broad cost-benefit analysis will have to guide our approach to talks, on complex issues like US visa rules which affect our software exports.
    • Since it is governments that thrash out deals, geopolitical convergences are often sought too.
    • We seem to be in a favourable position on this, given the West’s need to keep China’s rise in check.
    • The UK’s Rolls-Royce has just inked a memorandum with Hindustan Aeronautics Ltd for warship engines, a sign of our strategic ties.
    • Technology could come our way from the US, too.
    • If we can leverage an ability to play a role in Asia’s balance of power to our economic benefit, we should.

    Conclusion

    Mutually assured flexibility on tariff concessions would help India and its Western partners score economic gains and also counterbalance China’s growing dominance of world trade.

    —————————————————//———————————-

    B2B

    [pib] India-UK Virtual Summit

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  • Important Judgements In News

    Reading Maratha quota verdict

    6 May 2021 | Explained | Polity
    Mains Paper 2: Executive & Judiciary

    • A five-judge Constitution Bench of the Supreme Court on Wednesday struck down the Maharashtra law granting reservation to the Maratha community.
    • The court had framed six questions of law on the issue.
    • The court unanimously agreed on three of those issues, while the verdict was split 3:2 on the other three.

    Issue 1:  Whether Indra Sawhney judgment needs to be revisited

    • One of the key issues was to examine whether the 1992 landmark ruling by the nine-judge bench in Indra Sawhney v Union of India had to be revisited.
    • First, it said that the criteria for a group to qualify for reservation is “social and educational backwardness”.
    • Second, it reiterated the 50% limit to vertical quotas reasoning that it was needed to ensure “efficiency” in administration.
    • However, the court said that this 50% limit will apply unless in “exceptional circumstances”.
    • The Maratha quota exceeded the 50% ceiling. 
    • The arguments by state governments before the court was that the Indra Sawhney verdict must be referred to a 11-judge Bench for reconsideration since it laid down an arbitrary ceiling which the Constitution does not envisage.
    • The court said that the 50% ceiling, although an arbitrary determination by the court in 1992, is now constitutionally recognized and held that there is no need to revisit the case.

    Issue 2 and 3: Does Maratha quota law come under exceptional circumstances

    • The state government’s argument was that since the population of backward class is 85% and reservation limit is only 50%, an increase in reservation limit would qualify as an extraordinary circumstance.
    • All five judges disagreed with this argument.
    • The bench ruled that the above situation is not extraordinary.

    Issue 4,5 and 6: Validity of 102nd Amendment

    • The Constitution (One Hundred and Second Amendment) Act, 2018 gives constitutional status to the National Backward Classes Commission.
    • The Amendment also gives the President powers to notify backward classes.
    • The Bench unanimously upheld the constitutional validity of the 102nd Amendment but differed on the question of whether it affected the power of states to identify socially and economically backward classes (SEBCs).
    • Attorney General, appearing for the central government, clarified that this was not the intention of the law.
    • The Attorney General argued that it is inconceivable that no State shall have the power to identify backward class”.
    • The Attorney General explained that the state government will have their separate list of SEBCs for providing reservations in state government jobs and education.
    • The Parliament will only make the central list of SEBCs which would apply for central government jobs.
    • However, the Supreme Court held that “the final say in regard to inclusion or exclusion (or modification of lists) of SEBCs is firstly with the President, and thereafter, in case of modification or exclusion from the lists initially published, with the Parliament”.
    • This raises a question: How does this impact interventions by other states to provide reservations for other communities, for example Jats in Haryana and Kapus in Andhra?
    • The majority opinion essentially says that now the National Backward Classes Commission must publish a fresh list of SEBCs, both for states and the central list.
    • The Supreme Court also issued a direction under Article 142 of the Constitution of India which says that till the publication of the fresh list the existing lists will continue to operate.

    ————————————————-//————————————-

    BACK2BASICS

    • National Commission for Backward Classes is a constitutional body (102nd amendment 2018 in the constitution to make it a constitutional body) (Article 338B of the Indian Constitution).
    • It was constituted pursuant to the provisions of the National Commission for Backward Classes Act, 1993.
    • According to Article 338B, Commission shall consist of a Chairperson, Vice-Chairperson and three other Members and the conditions of service and tenure of office of the Chairperson, Vice-Chairperson and other Members so appointed shall be such as the President may by rule determine. The Chairperson, Vice-Chairperson and other Members of the Commission shall be appointed by the President by warrant under his hand and seal.

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  • Tax Reforms

    Digital Service tax

    6 May 2021 | | Economics
    Mains Paper 3: Indian Economy

    • Starting April 2022, overseas entities that don’t have a physical presence in India but derive significant financial benefit from Indian customers will come under the Indian tax net.
    • While the main legal provision was introduced in 2018, the revenue department notified the thresholds for the purposes of significant economic presence (SEP) on May 3.
    • The concept was introduced via Finance Act, 2018, to enlarge the scope of income of non-residents that accrues or arises in India, by establishing a “business connection” of the foreign entities.
    • The idea is to tax profits of those online and offline businesses that don’t have a physical presence in India but derive significant economic value from the country.
    • Only those entities will get impacted by the SEP provisions who come from non-treaty jurisdictions.
    • That’s because the treaties specify non-resident entities will come under the tax net only if they have a permanent establishment in India.
    • India currently has a Double Taxation Avoidance Agreement with 97 countries.

    Thresholds

    • Transaction Threshold: Any non-resident whose revenue exceeds Rs 2 crore for transactions in respect of goods, services or property with any person in India. This will include transactions on the download of data or software.
    • User Threshold: Any entity that systematically and continuously does business with more than 3 lakh users in India.

    ————————————//————————————————-

    BACK2BASICS

    Revision of this topic further:

    What are Digital Services Taxes?

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  • Important Judgements In News

    Supreme Court struck down law for reservation to Maratha community

    6 May 2021 | SC Judgements | Polity
    Mains Paper 2: Executive & Judiciary

    About the judgment

    • The Supreme Court on Wednesday struck down the provisions of a Maharashtra law providing reservation to the Maratha community.
    • It rejected demands to revisit the verdict or to refer it to a larger Bench for reconsideration.

    What the Supreme Court said

    • The Bench said that “providing reservation for the advancement of any socially and educationally backward class in public services is not the only means and method for improving the welfare of backward class”
    • The 50% rule is to fulfill the objective of equality as engrafted in Article 14 of which Articles 15 and 16 are facets.
    • To change the 50% limit is to have a society that is not founded on equality but based on caste rule.
    • If the reservation goes above the 50% limit, it will be a slippery slope, the political pressure, make it hard to reduce the same.
    • It added that “the Constitution (Eighty-first Amendment) Act, 2000 by which sub-clause (4B) was inserted in Article 16 makes it clear that ceiling of 50% “has now received constitutional recognition”
    • The Supreme Court disapproved the findings of the Justice M G Gaikwad Commission on the basis of which Marathas were classified as a Socially and Educationally Backward Class.
    • It said that “the data collected and tabled by the Commission as noted in the report clearly proves that Marathas are not socially and educationally backward class”.

    SC upheld 102nd Constitution amendment

    • The SC also upheld the 102nd Constitution amendment, saying it does not violate the basic structure of the Constitution.
    • The bench, by 3:2 majority, held that after the amendment, only the President will have the power to identify backward classes in a state or Union Territory.
    • The amendment inserted Articles 338B and 342A in the Constitution.
    • Article 338B deals with the structure, duties and powers of the National Commission for Backward Classes.
    • Article 342A speaks about the power of the President to notify a class as Socially and Educationally Backward (SEBC) and the power of Parliament to alter the Central SEBC list. He can do this in consultation with Governor of the concerned State. However, law enacted by Parliament will be required if the list of backward classes is to be amended.

    ————————————//————————————————-

    BACK2BASICS

    • 102nd Constitution Amendment Act, 2018 provides constitutional status to the National Commission for Backward Classes (NCBC).
    • The Commission consists of five members including a Chairperson, Vice-Chairperson and three other Members appointed by the President by warrant under his hand and seal. It has the authority to examine complaints and welfare measures regarding socially and educationally backward classes.
    • Previously NCBC was a statutory body under the Ministry of Social Justice and Empowerment.

     

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  • Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

    Govt. gives nod for 5G trials

    5 May 2021 | | Science and Technology
    Mains Paper 3: Awareness in various sc and tech fields

    Trials for 5G technology

    • The Department of Telecommunications (DoT) on Tuesday gave permission to Telecom Service Providers (TSPs) to conduct trials for the use and application of 5G technology.
    • The applicant TSPs include Bharti Airtel Ltd., Reliance JioInfocomm Ltd., Vodafone Idea Ltd. and MTNL.
    • These TSPs have tied up with original equipment manufacturers and technology providers which are Ericsson, Nokia, Samsung and C-DOT.
    • Each TSP will have to conduct trials in rural and semi-urban settings also in addition to urban settings so that the benefit of 5G technology proliferates across the country.
    • This formally leaves out Chinese companies like Huawei and ZTE from the 5G race in India.

    About 5Gi technology

    • TSPs are encouraged to conduct trials using 5Gi technology in addition to the already known 5G technology.
    •  5Gi technology was advocated by India, as it facilitates much larger reach of the 5G towers and radio networks.
    • The 5Gi technology has been developed by the Indian Institute of Technology, Madras (IIT-M), Centre of Excellence in Wireless Technology (CEWiT) and IIT Hyderabad.

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  • How Covid would impact India’s foreign policy canvass

    5 May 2021 | op-ed snap | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Foreign policy consequences

    • The devastation caused by the second Covid wave prompted India to accept foreign aid after a gap of 17 years.
    • This is bound to have far-reaching strategic implications for India.
    • As a direct consequence of the pandemic, India’s claim to regional primacy and leadership will take a major hit.
    • India ‘leading power’ aspirations will be dented, and accentuate its domestic political contestations.
    • These in turn will impact the content and conduct of India’s foreign policy in the years to come.

    What would be the strategic implications?

    1) Impact on India’s regional primacy

    • COVID 2.0 has quickened the demise of India’s regional primacy.
    • India’s geopolitical decline is likely to begin in the neighbourhood itself.
    • India’s traditional primacy in the region was built on a mix of material aid, political influence and historical ties.
    • Its political influence is steadily declining, its ability to materially help the neighbourhood will shrink in the wake of COVID-19.
    • Its historical ties alone may not do wonders to hold on to a region hungry for development assistance and political autonomy.

    2) Impact on India’s great power aspiration

    •  India aspires to be a leading power, rather than just a balancing power.
    • While the Indo-Pacific is geopolitically keen and ready to engage with India, the pandemic could adversely impact India’s ability and desire to contribute to the Indo-Pacific and the Quad.
    • COVID-19, for instance, will prevent any ambitious military spending or modernisation plans.
    • Covid-19 will also limit the country’s attention on global diplomacy and regional geopolitics, be it Afghanistan or Sri Lanka or the Indo-Pacific.
    • With reduced military spending and lesser diplomatic attention to regional geopolitics, New Delhi’s ability to project power and contribute to the growth of the Quad will be uncertain.

    3) Domestic political contestation  and its impact on strategic ambition

    • Domestic political contestations in the wake of the COVID-19 devastation in the country could also limit India’s strategic ambitions.
    • General economic distress, a fall in foreign direct investment and industrial production, and a rise in unemployment have already lowered the mood in the country.
    • A depressed economy, politically volatile domestic space combined with a lack of elite consensus on strategic matters would hardly inspire confidence in the international system about India.

    4) Impact on India-China equation

    • From competing with China’s vaccine diplomacy a few months ago, New Delhi today is forced to seek help from the international community.
    • China has, compared to most other countries, emerged stronger in the wake of the pandemic.
    • The world, notwithstanding its anti-China rhetoric, will continue to do business with Beijing — it already has been, and it will only increase.
    • Claims that India could compete with China as a global investment and manufacturing destination would be dented.
    • India’s ability to stand up to China stands vastly diminished today: in material power, in terms of balance of power considerations, and political will.

    5) Depressed foreign policy

    • Given the much reduced political capital within the government to pursue ambitious foreign policy goals, the diplomatic bandwidth for expansive foreign policy goals would be limited.
    • This, however, might take the aggressive edge off of India’s foreign policy.
    • Less aggression could potentially translate into more accommodation, reconciliation and cooperation especially in the neighbourhood, with Pakistan on the one hand and within the broader South Asian Association for Regional Cooperation (SAARC) framework on the other.
    •  COVID-19 has forced us to reimagine, to some extent at least, the friend enemy equations in global geopolitics.
    • While the United States seemed hesitant, at least initially, Russia was quick to come to India’s aid. 

    6) Implications for strategic autonomy

    • The pandemic would, at the very least indirectly, impact India’s policy of maintaining strategic autonomy.
    • As pointed out above, the strategic consequences of the pandemic are bound to shape and structure India’s foreign policy choices as well as constrain India’s foreign policy agency.
    • It could, for instance, become more susceptible to external criticism for, after all, India cannot say ‘yes’ to just aid and ‘no’ to criticism.

    Consider the question “Examine the strategic implications of Covid for India.” 

    Way forward

    • COVID-19 will also do is open up new regional opportunities for cooperation especially under the ambit of SAARC.
    • India might do well to get the region’s collective focus on ‘regional health multilateralism’ to promote mutual assistance and joint action on health emergencies such as this.
    • Classical geopolitics should be brought on a par with health diplomacy, environmental concerns and regional connectivity in South Asia.

    Conclusion

    While the outpouring of global aid to India shows that the world realises India is too important to fail, the international community might also reach the conclusion that post-COVID-19 India is too fragile to lead and be a ‘leading power’.

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  • [pib] Cabinet approval to MoU between India and UK on Global Innovation Partnership

    5 May 2021 | PIB | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Cabinet approval to GIP

    • The Union Cabinet gave ex-post facto approval to the signing of Memorandum of Understanding (MoU) India and Foreign, Commonwealth and Development Office (FCDO) of the United Kingdom on Global Innovation Partnership (GIP).
    • GIP will support Indian innovators to scale up their innovations in third countries thereby helping them explore new markets and become self-sustainable.

    How GIP will help India

    • It will also foster an innovative ecosystem in India.
    • GIP innovations will focus on Sustainable Development Goals (SDG) related sectors thereby assisting recipient countries achieve their SDGs.
    • Through seed funding, grants, investments and technical assistance, the Partnership will support Indian entrepreneurs and innovators to test, scale-up and take their innovative development solutions to select developing countries.
    • GIP will also develop an open and inclusive e-marketplace (E-BAAZAR) for cross-border innovation transfer and will focus on results-based impact assessment thereby promoting transparency and accountability.

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