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Archives: News

  • Pharma Sector – Drug Pricing, NPPA, FDC, Generics, etc.

    Not business as usual: On upholding India’s reputation for quality drugs

    Why in the News?

    The pharmacy of the Global South is facing a reputation crisis after cough syrups made by Indian pharmaceutical companies were found to contain harmful levels of diethylene glycol and/or ethylene glycol.

    Why is the pharmacy of the Global South facing a reputation crisis?

    • Quality Control Failures and Contaminated Products:
      • Gambia (2022): Cough syrups made in India containing diethylene glycol and ethylene glycol killed 66 children.
      • Uzbekistan (2022): Similar contamination led to the deaths of 65 children.
      • U.S. (2023): India-made eye drops contaminated with drug-resistant bacteria caused 3 deaths and 8 cases of blindness.
    • Illegal Manufacturing and Unapproved Drugs: Unauthorized drug production and export are damaging India’s credibility. Example: Aveo Pharmaceuticals (Maharashtra) illegally exported unapproved opioid combinations to West Africa, exposed by a BBC investigation in 2023.
    • Regulatory Lapses and Weak Oversight: Inconsistent enforcement by regulatory authorities enables violations. Example: State drug authorities in India have issued licenses for unapproved Fixed Dose Combinations (FDCs) without clearance from the Central Drugs Standard Control Organization (CDSCO).
    • Global Scrutiny and Trade Barriers: Increased surveillance by international health bodies and trade restrictions. Example: The WHO’s alert on toxic cough syrups led to enhanced inspections of Indian pharmaceutical exports, impacting trade with African and Southeast Asian nations.

    How does this impact India’s hegemony?

    • Erosion of Soft Power and Global Reputation: India’s image as the “Pharmacy of the Global South” is under threat due to quality concerns and regulatory lapses. Example: The WHO alerts on contaminated cough syrups in Gambia and Uzbekistan have damaged India’s credibility as a reliable supplier of affordable medicines.
    • Reduced Diplomatic Influence in Developing Countries: Many nations in Africa and Southeast Asia, which depend on Indian pharmaceuticals, may seek alternative suppliers, weakening India’s influence in these regions. Example: Countries like Nigeria and Kenya exploring Chinese and Brazilian pharmaceutical alternatives.
    • Economic and Trade Consequences: Heightened global scrutiny could lead to export restrictions and trade losses, affecting India’s dominance in the generic drug market. Example: In 2023, the U.S. imposed tighter checks on Indian pharmaceutical imports following incidents of contaminated eye drops, impacting Indian drug exports.

    What is the extent of India’s pharmaceutical exports?

    • Total Export Value: India’s pharmaceutical exports were valued at USD 27.85 billion, contributing substantially to the nation’s economy.
    • Global Market Share: India stands as the world’s third-largest producer of pharmaceuticals by volume, supplying approximately 20% of global generic drugs, with North America being a major recipient.
    • Key Export Destinations: The United States remains the largest importer of Indian pharmaceutical products, accounting for 17.90% of India’s total merchandise exports in this sector.
      • India supplies about 26% of Africa’s generic pharmaceutical market, highlighting its role as a key provider of affordable medicines on the continent.

    What steps has the Indian government taken in this situation?

    • Strengthening Regulatory Oversight: The Central Drugs Standard Control Organization (CDSCO) has intensified inspections of pharmaceutical manufacturing units to ensure compliance with Good Manufacturing Practices (GMP). Example: Following the Gambia and Uzbekistan incidents, the government ordered inspections of 76 cough syrup manufacturers across 20 states, leading to the suspension of several licenses.
    • Policy Reforms and Legal Action: The government introduced a mandatory quality certification for drug exports to certain countries to prevent the export of substandard medicines. Example: After the Aveo Pharmaceuticals case, the Maharashtra government revoked the company’s manufacturing license and seized 13 million illegal medicines.
    • International Collaboration and Transparency: The Indian government has increased cooperation with the World Health Organization (WHO) to address quality concerns and strengthen pharmacovigilance. Example: India joined hands with African health regulators to enhance quality assurance for pharmaceuticals exported to African countries.

    Way forward: 

    • Strengthen Regulatory Oversight: Implement stricter quality controls, regular audits, and a centralized tracking system to ensure compliance with global standards.
    • Enhance Global Collaboration: Partner with international health bodies and key importing nations to improve quality assurance and rebuild trust in Indian pharmaceuticals.

    Mains PYQ:

    Q Why is there so much activity in the field of biotechnology in our country? How has this activity benefitted the field of biopharma? (UPSC IAS/2018)

  • RTI – CIC, RTI Backlog, etc.

    The RTI is now the ‘Right to Deny Information’

    Why in the News?

    The RTI Act allowed people to question the government, but the government soon tried to weaken it.

    Why is the RTI now being viewed as the ‘right to deny information’?

    • Judicial Interpretations Diluting the Scope of RTI: Key court judgments, like Girish Ramchandra Deshpande vs. CIC (2012), have expanded the definition of “personal information” under Section 8(1)(j) of the RTI Act. This allows authorities to deny information about public servants’ misconduct, assets, and disciplinary records.
    • Delayed Appointments and Case Backlogs: Government delays in appointing Information Commissioners have led to massive backlogs, reducing the effectiveness of the RTI. Information is often provided after significant delays, turning it into a “right to history.”
    • Narrow Interpretation of Public Interest: The Supreme Court’s ruling in CBSE vs. Aditya Bandopadhyay (2011) warned against the “misuse” of RTI for seeking all types of information, limiting disclosures that could allegedly disrupt administrative efficiency.
      • Example: Information requests related to public policy decisions are frequently denied on vague grounds of protecting “national integration” or preventing “administrative burden.”

    What have been the key achievements of the RTI since its inception?

    • Increased Transparency and Accountability: The RTI Act has empowered citizens to hold public authorities accountable by providing access to government records and decisions. Example: In 2007, RTI applications exposed corruption in the National Rural Employment Guarantee Scheme (NREGA), leading to better monitoring and payment transparency.
    • Exposing Corruption and Misuse of Power: RTI has played a crucial role in uncovering major scams and irregularities, prompting legal and policy reforms. Example: The 2G spectrum scam (2008) involving massive financial irregularities in telecom licensing was brought to light through RTI inquiries, leading to the cancellation of 122 telecom licenses by the Supreme Court.
    • Empowering Marginalized Communities: Rural and marginalized groups have used RTI to access entitlements like ration cards, pensions, and housing schemes, ensuring their socio-economic rights. Example: In Rajasthan, villagers used RTI to reveal discrepancies in public distribution system (PDS) records, ensuring access to their rightful food supplies.

    What are the limitations of RTI? 

    • Exemptions under Section 8: Certain categories of information are exempt from disclosure, such as matters related to national security, sovereignty, and personal privacy. Example: Information related to defense strategies or confidential Cabinet discussions cannot be accessed through RTI.
    • Delayed or Incomplete Responses: Bureaucratic delays and lack of accountability often lead to incomplete or delayed information, undermining the RTI’s effectiveness. Example: In 2021, RTI applications regarding COVID-19 vaccine procurement faced significant delays, limiting public scrutiny during a critical period.
    • Threats and Intimidation of RTI Activists: Whistleblowers and activists who use RTI to expose corruption face harassment, threats, and even violence. Example: Amit Jethwa, an RTI activist from Gujarat, was murdered in 2010 after exposing illegal mining near the Gir Forest.

    Does India have an alternative to the RTI?

    • Public Services Delivery Laws (Right to Public Services Act): Various states in India have enacted Public Services Delivery Laws to ensure the timely delivery of public services and redress grievances.
      • Example: Madhya Pradesh was the first state to implement the Right to Public Services Act (2010), which mandates timely delivery of services like issuing ration cards and driving licenses.
    • Whistleblower Protection Act (2014): This law protects individuals who expose corruption and wrongdoing in government institutions. It allows whistleblowers to report issues while keeping their identity confidential.
      • Example: An employee of a public sector bank can report irregularities without fear of retaliation under this Act. However, delays in operationalizing the law limit its effectiveness.
    • Lokpal and Lokayuktas Act (2013): This law establishes an independent body (Lokpal) at the central level and Lokayuktas at the state level to investigate corruption among public officials.
      • Example: In 2019, the Lokpal was appointed to investigate allegations of corruption against high-level public servants, including the Prime Minister (with conditions).

    Way forward:

    • Strengthen Institutional Framework: Ensure timely appointment of Information Commissioners, enforce penalties for delayed/incomplete responses, and streamline processes to reduce case backlogs.
    • Enhance Legal Safeguards: Amend the Whistleblower Protection Act for better security of RTI activists and clarify exemptions under Section 8 to prevent misuse while balancing public interest.

    Mains PYQ:

    Q “Recent amendment to the Right to Information Act will have a profound impact on the autonomy and independence of the Information Commission”. Discuss. (UPSC IAS/2020)  

  • Modern Indian History-Events and Personalities

    Battle of Karnal (1739)

    Why in the News?

    On February 24, 1739, the Battle of Karnal marked a turning point in the history of Mughal empire.

    About Battle of Karnal 

    • The Battle of Karnal on February 24, 1739, saw Nadir Shah’s Persian army defeat Mughal Emperor Muhammad Shah ‘Rangila’ in under three hours.
    • Despite having 300,000 soldiers, the Mughal army was crushed by Nadir Shah’s 55,000 well-trained troops using modern tactics and superior firearms.
    • Following the victory, Delhi was sacked, 30,000 civilians massacred, and the Mughal treasury looted, including the Koh-i-Noor diamond and the Peacock Throne.

    Impact on Mughal Decline

    • Economic Collapse: The Mughal treasury was emptied, crippling military and administrative strength.
    • Weakening Central Power: Governors of Bengal, Awadh, and Hyderabad declared independence.
    • Military Decline: The Mughal army’s outdated tactics were exposed; future invasions (e.g., Ahmad Shah Abdali, 1748-1761) followed.
    • Rise of Regional Powers: The Marathas expanded, eventually capturing Delhi (1771); the Sikhs grew in Punjab.
    • British Expansion: The East India Company took advantage, leading to British rule after 1857.

    PYQ:

    [2019] With reference to Mughal India, what is/are the difference/differences between Jagirdars and Zamindar?

    1. Jagirdars were holders of land assignments in lieu of judicial and police duties, whereas Zamindars were holders of revenue rights without obligation to perform any duty other than revenue collection.

    2. Land assignments to Jagirdars were hereditary and revenue rights of Zamindars were not hereditary.

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

  • Government Budgets

    What is the ‘Quality of Public Expenditure’ Index?

    Why in the News?

    The Quality of Public Expenditure (QPE) Index, developed by the RBI, evaluates how efficiently government funds are used, focusing on expenditure composition and its long-term impact on economic growth.

    About the QPE Index

    • The QPE Index by the Reserve Bank of India (RBI) measures how effectively government funds are utilized.
    • It focuses on fiscal discipline, capital investment, and efficient allocation of public resources for long-term growth.
    • Key Indicators of the QPE Index:
    1. Capital Outlay to GDP Ratio: Measures government spending on infrastructure as a percentage of GDP. Higher ratio = better quality expenditure.
    2. Revenue Expenditure to Capital Outlay Ratio: Lower ratio preferred, as excessive spending on salaries & subsidies reduces funds for development.
    3. Development Expenditure to GDP Ratio: Tracks spending in education, healthcare, infrastructure, improving human capital & productivity.
    4. Development Expenditure as % of Total Expenditure:  Higher share indicates better resource allocation.
    5. Interest Payments to Total Expenditure Ratio:  Lower ratio = better debt management & fiscal sustainability.

    Key Findings from RBI’s QPE Index Analysis:

    • 1991-2003: Post-liberalization, focus on reducing fiscal deficit led to a decline in public investment.
    • 2003-2008:  FRBM Act (2003) improved fiscal discipline, increasing capital spending & state revenues.
    • 2008-2013: Global Financial Crisis (GFC) led to higher government spending, increasing fiscal deficits but supporting recovery.
    • 2013-2017: 14th Finance Commission (2015) increased states’ share in central taxes, boosting development expenditure.
    • 2017-2020:  GST implementation challenges affected the Centre’s revenues, but states benefited from higher tax shares.
    • 2020-PresentRecord capital expenditure boosted infrastructure & economic recovery, improving public expenditure quality.

    PYQ:

    [2014] With reference to Union Budget, which of the following, is/are covered under Non-Plan Expenditure?

    1. Defence-expenditure

    2. Interest payments

    3. Salaries and pensions

    4. Subsidies

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1, 2, 3 and 4

    (d) None

     

  • RBI Notifications

    Rupee-Dollar Swap Auction

    Why in the News?

    The Reserve Bank of India (RBI) will conduct a $10 billion dollar-rupee swap auction on February 28, 2025, aimed at injecting durable rupee liquidity into the banking system.

    This 3-year forex swap is expected to inject ₹86,000 crore into the banking system at a time when there is a liquidity deficit of ₹1.7 lakh crore in the financial sector.

    What is the RBI’s Forex Swap Auction?

    • Forex swap auctions are a tool used by the RBI to manage liquidity and stabilize financial markets.
    • In return, the RBI will inject rupee liquidity into the banking system.
      • Buy-Sell Swap: RBI buys dollars now and sells them back later (liquidity injection).
      • Sell-Buy Swap: RBI sells dollars now and buys them back later (liquidity absorption).
    • After 3 years, the transaction will be reversed, with the RBI selling dollars back to banks and absorbing rupee liquidity from the system.

    How does it work?

    • Auction Process:
      • Banks bid in the swap auction by quoting the swap rate (forward premium).
      • The lowest premium bids are accepted first (similar to G-sec auctions).
    • Liquidity Injection:
      • Banks sell US dollars to the RBI at the prevailing exchange rate.
      • The RBI provides rupees in exchange, boosting liquidity in the banking system.
    • Reverse Swap After Three Years:
      • On March 6, 2028, the swap will be reversed.
      • The RBI will return US dollars to the banks and absorb the equivalent amount of rupees.
    • This allows the RBI to control liquidity over a longer period without permanently altering its forex reserves.

    Significance of this move

    • Reduces Borrowing Costs: More liquidity in the system lowers short-term interest rates. Bond yields and corporate borrowing costs decline, benefiting businesses and NBFCs.
    • Stabilizes Foreign Exchange Markets: The rupee’s availability increases, reducing pressure on exchange rates. Lower hedging costs for companies with foreign liabilities.
    • Enhances RBI’s Monetary Policy Toolkit: This approach provides a temporary boost to liquidity, while ensuring a controlled reversal in the future.

    PYQ:

    [2015] Convertibility of rupee implies:

    (a) Being able to convert rupee notes into gold

    (b) Allowing the value of rupee to be fixed by market forces

    (c) Freely permitting the conversion of rupee to other currencies and vice versa

    (d) Developing an international market for currencies in India

     

  • [pib] Bay of Bengal (BOB) Inter-Governmental Organisation

    Why in the News?

    India has taken over the Chairmanship of the Bay of Bengal (BOB) Inter-Governmental Organisation from Bangladesh at the 13th Governing Council Meeting in Male, Maldives.

    What is BOBP-IGO?

    • BOBP-IGO is a regional fisheries body promoting sustainable fisheries management and improving the livelihoods of small-scale fishers in the Bay of Bengal region.
    • It was established in 2003 and is headquartered in Chennai.
    • It evolved from the Bay of Bengal Programme (BoBP), which was launched in 1979 under the Food and Agriculture Organization (FAO) of the United Nations.
    • Members:
      • Full Members: Bangladesh, India, Maldives, Sri Lanka.
      • Cooperating Non-Contracting Parties: Indonesia, Malaysia, Myanmar, Thailand.
    • Objectives: Enhance marine fisheries management, build fisher capacities, promote policy cooperation, and combat Illegal, Unreported & Unregulated (IUU) fishing.

    Significance of India’s Chairmanship in BOBP-IGO

    • India will lead policies for sustainable fisheries management and marine conservation across member nations.
    • This would strengthen monitoring, surveillance, and enforcement to prevent overfishing and illegal activities.
    • It will facilitate collaboration among member nations, exchange best practices, and integrate advanced technology in fisheries.
    • It would promote scientific research, innovation, and economic growth while reinforcing India’s influence in the Indian Ocean Region.

    PYQ:

    [2022] Do you think that BIMSTEC is a parallel organisation like the SAARC? What are the similarities and dissimilarities between the two? How are Indian foreign policy objectives realized by forming this new organisation?

     

  • Judicial Reforms

    [24th February 2025] The Hindu Op-ed: What has SC previously ruled on gag orders?

    PYQ Relevance:

    Q) What do understand by the concept “freedom of speech and expression”? Does it cover hate speech also? Why do the films in India stand on a slightly different plane from other forms of expression? Discuss. (UPSC CSE 2014)

     

    Mentor’s Comment: UPSC mains have always focused on “freedom of speech and expression”  (2014), and A man is but the product of his thoughts. What he thinks he becomes.” — M.K. Gandhi (2019).

    A Bench of Justices Surya Kant and N. Kotiswar Singh imposed strict conditions, barring Allahbadia and his team from posting on social media until further notice and ordering him to surrender his passport to the police. These conditions go against previous Supreme Court rulings that warn against imposing excessive restrictions that limit personal freedom while granting temporary relief.

    Today’s editorial discusses temporary protection from arrest and the factors the Supreme Court considers when granting interim relief to an accused. This information is valuable for GS Paper 2 and 4 in the UPSC Mains examination.

    _

    Let’s learn!

    Why in the News?

    On February 18, the Supreme Court granted temporary protection from arrest to podcaster and influencer Ranveer Allahbadia.

    What stringent conditions did the Supreme Court impose on podcaster and influencer Ranveer Allahbadia? 

    • Prohibition on Social Media Activity: The Court barred Allahbadia and his associates from posting any content on YouTube or other audio/video platforms until further orders. Example: Similar restrictions were rejected in Mohammed Zubair’s case (2021), where the Court held that preventing social media activity violates free speech rights.
    • Surrender of Passport: He was directed to surrender his passport to the police to prevent him from leaving the country. Example: In Satender Kumar Antil v. CBI (2022), the Court ruled that conditions like passport surrender must not be disproportionate or impossible to comply with.
    • Gag Order on Professional Work: The Court imposed a gag order restricting him from airing new content until further notice. Example: In Rehana Fathima’s case (2021), the Supreme Court overturned a similar order that restricted the activist from expressing her views online.
    • Monitoring of Public Statements: Allahbadia’s public statements and activities on digital platforms are subject to strict oversight to prevent further controversies. Example: In Frank Vitus v. NCB (2024), the Court struck down a bail condition requiring the accused to share their Google Maps location PIN, calling it an invasion of privacy.
    • Single Investigation for Multiple FIRs: The Court may consolidate the multiple FIRs against him under a single investigation to prevent harassment. Example: In Parteek Bansal v. State of Rajasthan (2022), the Supreme Court denounced the filing of multiple FIRs for the same offense as a form of state harassment.

    What factors does the top court consider when granting interim relief to an accused? 

    • Tampering with Evidence (Interfering with Investigation): The Court considers whether interim relief might allow the accused to destroy, fabricate, or conceal evidence. Example: In Satender Kumar Antil v. CBI (2022), the Court cautioned against imposing impossible bail conditions while ensuring the investigation remains uncompromised.
    • Nature and Gravity of the Offense: The seriousness of the alleged crime and its potential social impact are weighed when deciding on interim relief. Example: In Arnab Goswami v. State of Maharashtra (2020), interim bail was granted, with the Court emphasizing the need to prevent misuse of the law for political harassment.
    • Protection of Fundamental Rights: The Court considers the accused’s fundamental rights, particularly personal liberty under Article 21 of the Constitution. Example: In Frank Vitus v. NCB (2024), the Court struck down a bail condition requiring the accused to share their Google Maps location PIN, calling it a violation of privacy rights.
    • Flight Risk (Likelihood of Absconding): The Court evaluates whether the accused is likely to flee the country or jurisdiction to evade legal proceedings. Example: In Chidambaram v. Directorate of Enforcement (2019), anticipatory bail was denied due to concerns about flight risk and the accused’s ability to influence the investigation.
    • Intimidation of Witnesses (Influencing or Threatening Witnesses): The possibility of the accused threatening, influencing, or coercing witnesses is assessed to ensure a fair trial. Example: In State of Gujarat v. Amit Shah (2010), bail was granted after the Court found no direct evidence suggesting that the accused would intimidate witnesses.

    What has the Court previously stated about gag orders?

    • Gag Orders Violate Freedom of Speech: The Court has consistently held that gag orders restricting speech violate Article 19(1)(a) of the Constitution, which guarantees freedom of speech and expression. Example: In Mohammed Zubair v. State of Uttar Pradesh (2021), the Court refused to restrict Zubair from tweeting while on bail, stating it would create a chilling effect on free speech.
    • Prior Restraint is Constitutionally Disfavored: The Court has cautioned that prior restraint—preventing speech before it occurs—is unconstitutional except in exceptional circumstances like public order or national security. Example: In R. Rajagopal v. State of Tamil Nadu (1994), the Court ruled that prior censorship is permissible only when there is compelling public interest.
    • Gag Orders Must Be Proportional: Any restriction on speech must be narrowly tailored and proportionate to the harm being prevented. Broad, vague restrictions are unconstitutional. Example: In Rehana Fathima v. State of Kerala (2021), the Court struck down a bail condition prohibiting Fathima from expressing her views on social media, calling it disproportionate.
    • Right to Practice a Profession: Gag orders must not prevent individuals from pursuing their profession, especially when their work depends on public communication. Example: In Vinod Dua v. Union of India (2021), the Court quashed FIRs against journalist Vinod Dua, stating that his journalistic work was protected under Article 19(1)(a).
    • Interference with Judicial Process is an Exception: The Court has upheld gag orders only when speech could obstruct the judicial process or prejudice a fair trial. Example: In Sahara India Real Estate Corp. v. SEBI (2012), the Court allowed temporary restrictions to prevent media trials from affecting the outcome of legal proceedings.

    Way forward: 

    • Balance Fundamental Rights with Fair Trial: Ensure that any restrictions on speech, including gag orders, are narrow, proportionate, and imposed only when necessary to protect the integrity of judicial proceedings while safeguarding freedom of expression under Article 19(1)(a).
    • Establish Clear Guidelines for Interim Relief: Formulate uniform guidelines to regulate conditions like passport surrender, social media bans, and public statement monitoring, ensuring they are consistent with constitutional protections and do not impose disproportionate burdens on the accused.
  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    Indian industry needs innovation, not mindless toil

    Why in the News?

    Indian industry leaders are hurting their future by depending too much on cheap labour for growth.

    What are the issues related to cheap labour in India? 

    • Long Working Hours: Migrant industrial workers often work 11-12 hours a day without breaks during peak demand, compromising their physical and mental well-being.
    • Informal Employment: As per the 2023-24 Periodic Labour Force Survey, only 21.7% of workers hold regular jobs with salaries. Even within this group, nearly half face informal conditions (no contracts, paid leave, or social security).
    • Exploitation via Contract Work: 56% of workers joining the factory sector since 2011-12 are contract workers, lacking legal protection and receiving lower wages.
    • Migrant Worker Vulnerability: Migrant workers face multiple disadvantages due to social position, lack of assets, and inadequate access to social security.
    • Profit Maximization: Industries prioritize profit over worker welfare, with profit shares rising from 31.6% in 2019-20 to 46.4% in 2021-22 in the factory sector.

    What is the current situation of the garment industry in India?

    • Stagnant Share in Global Exports: India’s share in global garment exports has remained stagnant at 3.1% over the past two decades. Example: In contrast, Bangladesh (7.9%) and Vietnam (6.4%) have increased their market share by investing in modern technologies and efficient supply chains (Economic and Political Weekly, August 2024).
    • Over-Reliance on Cheap Labour: The industry depends heavily on low-cost, unorganized labour rather than technology and automation, limiting productivity. Example: Over 70% of the workforce in garment manufacturing operates in small, unregistered enterprises with poor working conditions and low wages (PLFS 2023-24).
    • Declining Competitiveness: Rising competition from China, Vietnam, and Bangladesh has reduced India’s competitiveness in both mass-market and premium garment segments. Example: India’s textile and garment exports dropped by 13.3% to $32 billion in 2023-24, while Vietnam’s exports rose to $44 billion (Ministry of Commerce data, 2024).
    • Lack of Innovation and Modernization: Indian firms lag in adopting advanced production technologies, affecting product diversity and design innovation. Example: While countries like Vietnam invest in smart textiles and sustainable practices, Indian firms focus primarily on basic, low-margin garments.
    • Impact of Policy and Infrastructure Gaps: Inadequate government support, high logistics costs, and delayed payments to small firms hinder sectoral growth. Example: The Textile PLI Scheme launched in 2021 aimed to boost manufacturing but has had limited uptake, particularly among smaller manufacturers due to complex compliance issues.

    How can India benefit from its cheap labour?

    • Investing in Skill Development and Training: Enhancing workers’ skills can increase productivity while maintaining cost advantages. Example: The Skill India Mission has trained over 50 million workers since its launch in 2015, improving output quality in sectors like textiles, automotive, and electronics.
    • Promoting Labour-Intensive Industries: Expanding labour-intensive sectors (e.g., textiles, leather, and electronics assembly) can maximize employment and exports. Example: The Apparel Park Scheme in Tamil Nadu supports garment clusters, increasing job opportunities while improving global competitiveness.
    • Strengthening MSMEs and Local Supply Chains: Supporting Micro, Small, and Medium Enterprises (MSMEs) through policy incentives and better access to credit can utilize cheap labour efficiently. Example: The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme has provided ₹3.7 lakh crore in credit to over 65 lakh MSMEs (as of 2024).
    • Encouraging Export-Oriented Production: Facilitating exports through simplified regulations and logistical improvements can enhance global market access. Example: The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme helps Indian exporters by reimbursing embedded taxes, making Indian goods more competitive.
    • Adopting a Hybrid Model of Labour and Technology: Combining low-cost manual labour with affordable automation can balance efficiency with cost advantages. Example: Maruti Suzuki uses a man-machine hybrid system for auto production, reducing costs while maintaining high output, making it India’s largest car exporter.

    Why are industries falling behind in innovation?

    • Low Investment in Research and Development (R&D): India’s gross domestic expenditure on R&D (GERD) is 0.65% of GDP (2022), significantly lower than countries like China (2.4%) and South Korea (4.8%). Example: In the pharmaceutical sector, while India is a major producer of generic medicines, it lags in developing innovative drugs due to limited R&D spending.
    • Dominance of Low-Cost, Labor-Intensive Models: Indian industries prioritize cheap labour over adopting advanced technologies, limiting productivity gains and innovation. Example: In the textile industry, India’s share in global garment exports is 3.1%, while Bangladesh (7.9%) and Vietnam (6.4%) have overtaken India by modernizing production systems.
    • Limited Collaboration between Industry and Academia: Weak ties between academic research institutions and industries hinder the commercialization of innovative ideas. Example: In 2021, only 36 patents were filed jointly by Indian universities and private firms compared to 5,000+ in China under their “Industry-Academia Collaboration” model.
    • Lack of Policy Incentives for Innovation: Insufficient government policies and weak implementation of initiatives like Atal Innovation Mission (AIM) reduce incentives for private-sector innovation. Example: While China’s “Made in China 2025” policy incentivizes innovation-led manufacturing, India’s PLI (Production-Linked Incentive) scheme primarily focuses on output rather than R&D-driven innovation.
    • Financial Constraints on Small and Medium Enterprises (SMEs): SMEs, which form 70% of the manufacturing workforce, face difficulties accessing credit for innovation and upgrading technology. Example: Despite initiatives like CGTMSE, only 15% of MSMEs in India receive formal credit, limiting their ability to invest in new technologies.

    Way forward: 

    • Enhance Technology Adoption and Innovation: Encourage investment in advanced manufacturing technologies and R&D through better policy incentives and stronger industry-academia collaboration to improve productivity and global competitiveness.
    • Support Labour Welfare and Formalization: Implement policies to improve working conditions, ensure social security for informal workers, and promote skill development programs to balance cost efficiency with worker well-being.

    Mains PYQ:

    Q Can the strategy of regional-resource based manufacturing help in promoting employment in India? (UPSC IAS/2019)

  • Skilling India – Skill India Mission,PMKVY, NSDC, etc.

    Talent shortage — global challenge, India’s opportunity

    Why in the News?

    The demand for skilled workers will soon be higher than the supply, and India must act quickly to meet the needs of important regions.

    What are the Geographic regions and their demands?

    • Gulf Cooperation Council (GCC) – High Demand for Construction and Manufacturing: The GCC nations (e.g., UAE, Saudi Arabia, Qatar) require skilled construction and manufacturing workers to support infrastructure projects like NEOM (Saudi Arabia’s smart city project) and the Dubai Urban Plan 2040.
    • Europe (including the UK) – Service Sector Growth & Healthcare Needs: Europe, being the oldest post-industrial society, has a rising demand for healthcare professionals, IT experts, and service-sector workers due to ageing populations. Example: Germany’s “Skilled Immigration Act” aims to attract foreign talent in healthcare and technology.
    • Australia – Skilled Migration in Healthcare & Construction: Australia is open to skilled migration, especially in healthcare, IT, and construction due to labour shortages. Example: Australia’s Priority Migration Skilled Occupation List (PMSOL) focuses on attracting doctors, engineers, and tech professionals.
    • Global Demand in Emerging Sectors – AI, Big Data, and Automation: Countries worldwide, including the US, Canada, and Singapore, require expertise in Artificial Intelligence (AI),the  Internet of Things (IoT), blockchain, and big data analytics. Example: Singapore’s Tech. Pass visa encourages AI and IT experts to work in its digital economy.
    • Health and Social Care – Universal Demand: Aging populations in developed countries are driving high demand for nurses, caregivers, and medical professionals across the GCC, Europe, and Australia. Example: The UK’s Health and Care Worker visa prioritizes foreign healthcare workers to fill staffing gaps in the NHS.

    Why is the demand for skilled workers expected to exceed the supply in the near future?

    • Rapid Technological Advancements: Emerging technologies such as artificial intelligence (AI), machine learning, and cybersecurity are evolving swiftly, creating a need for specialized skills that the current workforce lacks. Example: The global AI market is projected to reach $266 billion by 2027, growing at a compound annual rate of 33.2%.
    • Industry-Specific Skill Gaps: Certain industries are experiencing rapid growth, leading to specialized skill shortages that the existing workforce cannot meet. Example: The International Renewable Energy Agency (IRENA) estimates that by 2030, the renewable energy sector could provide up to 30 million new jobs worldwide.
    • Aging Workforce and Retirements: A significant portion of the skilled workforce is approaching retirement age, leading to a loss of expertise and creating vacancies that are difficult to fill. Example: In the United States, the manufacturing sector faces a potential shortage of 2.1 million workers by 2030 due to retirements and a lack of new entrants with the necessary skills.
    • Mismatch Between Education and Industry Needs: Educational institutions often do not align curricula with the evolving demands of industries, resulting in graduates lacking the practical skills required by employers. Example: In India, a study by the National Skill Development Corporation (NSDC) revealed a demand for 103 million skilled workers, while the current supply is only 74 million.

    What are the existing barriers? 

    • Complex Visa Processes: Lengthy visa approval times and restrictive work permit policies hinder skilled worker migration. According to the Global Talent Competitiveness Index (2023), India ranks 92nd in the ability to enable and attract global talent, reflecting challenges in cross-border workforce movement.
    • Exploitation of Migrant Workers: Illegal recruitment agencies engage in wage theft and exploitative practices. As per the International Labour Organization (ILO), approximately 25 million people worldwide are victims of forced labour, with South Asia being a major source of trafficked labour.
    • Non-Recognition of Qualifications: Many Indian professional degrees are not accepted in key global markets. A FICCI-KPMG study reports that 53% of Indian professionals face underemployment abroad due to non-recognition of their qualifications, particularly in medicine and engineering.
    • Limited Language Proficiency: Inability to communicate effectively impacts job performance and integration. The European Commission (2022) found that 40% of non-EU migrants face employment challenges due to language barriers, particularly in sectors like healthcare and customer service.
    • Mismatch Between Skills and Market Needs: Rapid technological advancements outpace current training programs. According to the World Economic Forum (WEF) Future of Jobs Report (2023), 44% of core skills required across industries will change by 2027, leaving a global shortfall of 85.2 million skilled workers by 2030.

    What are the existing strategies? 

    • Migration and Mobility Partnerships: India has established agreements with countries like Germany and Italy to facilitate the movement of students, professionals, and skilled workers. These partnerships aim to streamline visa processes and recognize professional qualifications, thereby promoting bilateral exchanges.
    • Digital Platforms for Emigrant Support: The Indian government has upgraded the eMigrate portal to version 2.0, integrating features like 24/7 multilingual helpline support and faster feedback mechanisms. This platform ensures transparency in recruitment and safeguards the welfare of Indian workers abroad.
    • Skill Development Initiatives: Through programs like the National Skill Development Mission and the Skill India program, India focuses on training its workforce in emerging technologies and sectors. These initiatives aim to align domestic skills with global market demands, enhancing employability abroad.
    • International Collaboration on Education and Training: Workshops and collaborative projects with entities like the European Union have been conducted to strengthen student mobility and the use of educational consultants. These efforts aim to facilitate the international movement of students and young professionals.
    • Bilateral Trade Agreements Enhancing Labor Mobility: India is actively pursuing free trade agreements, such as the one with the United Kingdom, which include provisions for labour mobility. These agreements aim to reduce barriers for Indian professionals seeking opportunities abroad.

    What is India’s advantage?

    • Large and Growing Workforce: India has one of the world’s largest working-age populations, providing a steady supply of skilled workers. Example: By 2030, India’s working-age population is expected to reach 1.04 billion, accounting for 23% of the global workforce (UN Population Report, 2022).
    • Cost-Effective Skilled Labour: Indian workers offer high skill levels at competitive costs, making them attractive to global markets. Example: Indian IT professionals earn 60-70% less than their Western counterparts, enabling global firms to save on operational costs (NASSCOM, 2023).
    • Strong Diaspora and Global Networks: India has the second-largest diaspora globally, facilitating knowledge transfer and job opportunities. Example: Over 4.2 million Indian-origin people live in the United States, contributing significantly to sectors like technology and healthcare (US Census Bureau, 2022).
    • Government-Led Skill and Mobility Initiatives: India has established programs to train and mobilize workers for global opportunities. Example: The Skill India Mission has trained over 40 million workers since 2015, aligning their skills with global market demands (Ministry of Skill Development, 2023).
    • Favourable Global Perception: Indian workers are perceived as hardworking and adaptable, maintaining demand despite anti-immigration trends. Example: 25% of doctors in the UK’s NHS are of Indian origin, reflecting their sustained demand and acceptance (UK General Medical Council, 2023).

    Way forward: 

    • Strengthen Skill Recognition and Mutual Agreements: Expand bilateral agreements for mutual recognition of qualifications to reduce skill mismatch and underemployment, especially in high-demand sectors like healthcare and technology.
    • Enhance Digital and Legal Safeguards for Migrant Workers: Improve digital platforms like eMigrate for transparent recruitment, and enforce stricter regulations against exploitative practices to protect Indian workers abroad.

    Mains PYQ:

    Q Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC IAS/2021)

  • Festivals, Dances, Theatre, Literature, Art in News

    Tea Tribes and Jhumur Dance

    Why in the News?

    Prime Minister witnessed the largest-ever Jhumur dance performance in Guwahati, to commemorate the 200th anniversary of Assam’s tea industry.

    What are Tea Tribes/Tea Garden Communities of Assam?

    • The Tea Tribes or Tea Garden Communities of Assam are descendants of laborers brought by the British in the 19th century to work in tea plantations.
    • These workers were mainly from Jharkhand, Odisha, Chhattisgarh, West Bengal, and Andhra Pradesh.
    • Many were brought through forced migration, and even voluntary migration occurred under exploitative conditions.
    • They were subjected to poor wages, inhumane working conditions, and restricted mobility.
    • The community is concentrated in Upper Assam districts like Tinsukia, Dibrugarh, Golaghat, Sonitpur, and Sivasagar, and in the Barak Valley.
    • They currently have Other Backward Classes (OBC) Status but demand Scheduled Tribe (ST) status, as many of their sub-groups, like Munda, Santhal, and Oraon, hold ST status in their original states.
    • Despite adversity, the Tea Garden Communities preserved their cultural identity, with distinct festivals, music, and dance forms.
      • Their major festivals include Tushu Puja and Karam Puja, celebrated with the traditional Jhumur dance.

    About Jhumur Dance 

    • Jhumur (also spelled Jhumoir or Jhumair) is a folk dance of the Sadan ethnolinguistic group, mainly practised by Assam’s Tea Garden Communities.
    • It originated in Chotanagpur Plateau (Jharkhand, Odisha, Bengal, and Chhattisgarh) and was brought to Assam during the British colonial era.
    • Over time, it blended with Assamese culture, incorporating Assamese musical and linguistic influences.
    • Performance and Style:
      • Women are the primary dancers, standing shoulder-to-shoulder in synchronized formations.
      • Men accompany them with traditional instruments like madal, dhol, dhak (drums), cymbals, flutes, and shehnai.
      • Attire: Women wear red and white sarees, while men wear kurta-dhoti with gamocha (traditional Assamese cloth).
    • Jhumur songs depict both celebration and hardship, narrating:
      • Love and Nature – Seasonal changes, harvest, and romance.
      • Hardships of Tea Workers – Struggles, migration, and exploitation.
      • Festivals and Community Life – Unity, faith, and social cohesion.
    • It serves as a cultural bridge, helping retain their traditions and forge a unique identity in Assam.

    PYQ:

    [2021] With reference to India, the terms ‘Halbi, Ho and Kui’ pertain to​:

    (a) Dance forms of Northwest India​

    (b) Musical instruments​

    (c) Pre-historic cave paintings​

    (d) Tribal languages​

     

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