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  • Finance Commission – Issues related to devolution of resources

    What the 16th Finance Commission needs to do differently

    15 September 2023 | op-ed snap | Economics
    Mains Paper 2: Constitutional Bodies

    What’s the news?

    • India’s fiscal landscape, transformed by GST, calls for a comprehensive reevaluation of fiscal federalism to address tax-sharing challenges and regional disparities.

    Central idea

    • The 122nd Constitutional Amendment of 2016 and the subsequent introduction of the GST regime in 2017 reshaped India’s fiscal landscape, replacing production-based taxation with a consumption-oriented approach. This shift highlights the importance of reevaluating fiscal federalism as the 16th Finance Commission forms, addressing tax-sharing principles and regional balance in taxation.

    What is meant by fiscal federalism?

    • Fiscal federalism refers to the division of financial responsibilities and resources between different levels of government within a federal or decentralized system.
    • It encompasses the principles and mechanisms by which revenues are generated, collected, shared, and spent by various levels of government, typically at the national (central) and subnational (state or regional) levels.
    • India operates as a federal republic with a multi-tiered system of governance, and fiscal federalism is an essential aspect of this arrangement.

    Potential challenges faced by the 16th Finance Commission

    • Revisiting Tax-sharing Principles: The 16th Finance Commission faces the challenge of reexamining and redesigning tax-sharing principles due to the shift from production-based to consumption-based taxation under the GST regime.
    • Efficient Tax Collection: Variations in the cost of tax collection (ranging from 7 to 10 percent) have emerged as a challenge, given the joint collection of taxes by the Union and states under GST.
    • Redesigning Horizontal Distribution: The Commission must address the challenge of redesigning criteria for distributing the divisible pool among states to ensure equitable distribution of tax revenues and grants.
    • Reviewing the Compensation Scheme: The necessity, viability, and desirability of the GST compensation scheme must be reviewed by the Commission, considering the performance of GST revenues over the past six years.
    • Institutional Relationships: Establishing formalized institutional relationships between the GST Council and the Finance Commission presents a challenge in the evolving federal financial structure.

    The need for a comprehensive reevaluation of India’s fiscal federalism

    • Shift to the GST Regime: The introduction of the Goods and Services Tax (GST) regime represents a monumental shift in India’s taxation system. This change from a production-based tax system to a consumption-based one necessitates a reevaluation of fiscal federalism to align with this new tax paradigm.
    • Impact on Vertical and Horizontal Imbalances: The transition from a production-based to a consumption-based tax system has the potential to rectify historical vertical imbalances in tax revenue distribution. However, it also introduces new horizontal imbalances among states due to varying consumption patterns and economic development levels.
    • Equitable Resource Allocation: To ensure a fair distribution of resources among states, it is imperative to revisit the criteria for resource allocation. The reevaluation should consider the principles of fiscal federalism and the specific needs of each state within the GST framework.
    • Efficiency and Transparency: An updated fiscal federalism framework can lead to increased efficiency and transparency in revenue collection, sharing, and utilization. This can help streamline fiscal processes and reduce inefficiencies.
    • Adaptation to Changing Economic Realities: India’s economic landscape is dynamic, with evolving challenges and opportunities. A comprehensive reevaluation allows fiscal policies to adapt to these changes, ensuring they remain relevant and effective.
    • Fiscal Responsibility: To ensure fiscal sustainability, a reevaluation should assess the long-term fiscal health of both the central government and state governments. It can recommend measures to manage fiscal deficits and public debt responsibly.

    Way forward

    • Mandate of the 16th Finance Commission: The government should promptly constitute the 16th Finance Commission with a clear mandate to reexamine the tax-sharing principles and other related fiscal matters.
    • Define Comprehensive Terms of Reference (ToR): The ToR for the 16th Finance Commission should be carefully formulated to guide the Commission in addressing the challenges posed by the GST regime and its impact on fiscal federalism.
    • Pooling of Indirect Tax Sovereignty: Given the significant changes in the tax landscape, the Commission should comprehensively assess the pooling of indirect tax sovereignty between the Union and states under the GST system.
    • Redesign Tax-sharing Principles: The Commission should undertake a thorough review and redesign of tax-sharing principles, especially with regard to the divisible pool, unsettled IGST, and settlement frequencies, in alignment with the GST structure.
    • Distribution Criteria Reevaluation: Reevaluate the criteria for distributing the divisible pool among states, particularly for equalizing grants, to ensure that they align with the new consumption-based tax system and address regional imbalances effectively.
    • Formalize Institutional Relationships: Formalize and strengthen the institutional relationship between the GST Council and the Finance Commission to facilitate seamless coordination, information exchange, and alignment of fiscal policies.
    • Engage with Stakeholders: Engage in extensive consultations with relevant stakeholders, including state governments, economists, and experts, to gather diverse perspectives and insights.

    Conclusion

    • The 16th Finance Commission must reshape India’s fiscal federalism for the GST era by redefining the divisible pool, improving tax collection efficiency, revisiting distribution criteria, reviewing compensation, and formalizing institutional relationships. Flexible terms of reference are crucial for these essential reforms to align the fiscal system with the new tax paradigm and promote equitable growth.

    Also read:

    Finance Commission and the Challenges of Fiscal Federalism

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  • Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

    Disentangling the 2030 global renewable energy target

    15 September 2023 | op-ed snap | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    What’s the news?

    • The 28th Conference of Parties (COP28) of the UNFCCC is scheduled to take place in Dubai from November 30 to December 12.

    Central idea

    • The upcoming COP28 of the UNFCCC has put forth a bold proposal to triple global renewable energy capacity by 2030. This aspiration is echoed in the G-20 declaration, albeit in a less committed manner. While the idea of such a target is appealing, a deeper examination raises significant concerns.

    Current State of Renewable Energy Capacity

    • As of 2021, renewable energy sources (RES) accounted for 39% of the global installed capacity for electricity generation, totaling 3026 gigawatts (GW). However, their contribution to total electricity generation stood at only 28%.
    • Among RES, hydropower constituted over half, with solar and wind energy contributing about 36%.
    • To achieve the goal of tripling renewable energy capacity by 2030, we would need to add approximately 6,000 GW of RES capacity, primarily from solar and wind sources.

    Regional Disparities

    • Electricity demand growth varies significantly among countries at different stages of development.
    • Developing nations like China and India experience rapid electricity demand growth, with annual consumption rates of 6.6% and 6.3%, respectively, between 2010 and 2019.
    • In contrast, the European Union (EU) saw a decline of 0.3%, and the United States experienced minimal 0.12% growth.
    • Only 21% of electricity in the U.S. is sourced from RES, including hydro and biomass. In the EU, 37% of electricity comes from RES.
    • The U.S. would need only about 26 GW of new RE capacity to meet additional demand. Its share of the global tripling target of 6000 GW by 2030 would be a mere 0.4%.
    • In contrast, India would require about 717 GW of RE capacity, constituting a 12% share of the target.

    Challenges in achieving the goal of tripling global renewable energy capacity

    • Timeline for Capacity Addition: Tripling renewable energy (RE) capacity by 2030 presents a significant challenge in terms of the timeline for constructing and operationalizing renewable energy projects.
    • Scale of Electricity Generation: Achieving the target of tripling RE capacity would require generating approximately 13,000 terawatt-hours (TWh) of electricity from renewable sources alone.
    • Global Electricity Demand Growth: Global electricity demand has been growing at an average rate of 2.6% (pre-COVID-19 decade average). Meeting the tripling target implies that renewable energy would need to account for 38% of total global electricity production. Sustaining such growth in renewable energy production in line with demand is a complex task.

    What are the issues with the global RES target?

    • Lack of Transparency in Origin: The origin of the global RES target proposed at COP28 lacks transparency. It appears to draw inspiration from the International Renewable Energy Agency (IRENA), but without clear documentation.
    • Inequitable Regional Distribution: The proposed target, as per the IRENA analysis, suggests that most of the non-RES capacity to be added by 2030 would be in developing regions.
    • Absolute Projections vs. Relative Targets: Absolute projections of installed RES capacity may not align with the growth in energy demand. Relative targets, which are less dependent on demand growth matching expectations, are considered more flexible and robust.
    • Dependency on Non-RES Capacity: Achieving a substantial increase in RES capacity may require corresponding non-RES capacity for grid stability and reliable energy supply.
    • Lack of Viable Storage Options: There is currently a lack of viable storage options at the scale envisioned by ambitious RES targets. Energy storage is essential to ensuring a stable energy supply when renewable sources are not generating electricity.
    • Challenges in Building National Grids: Scaling up RES capacity to such high levels would require extensive national grid development. Finding the necessary resources for these grids is challenging, particularly given the existing difficulties in meeting climate finance targets.
    • Targets for Developed Nations: The most vocal proponents of the global RES target do not have corresponding domestic targets. For instance, while India has committed to ambitious goals internationally, countries like the United States and the European Union lack absolute targets domestically. Their targets are often market signals rather than government-intervened commitments.

    Way forward

    • Transparent Origin of Targets: Ensure transparency in the origin and basis of global renewable energy targets, such as those proposed at COP28. Clearly communicate how and why these targets were formulated.
    • Equitable Distribution of Responsibility: Advocate for an equitable sharing of responsibility among nations. Developed countries should commit to absolute domestic targets that align with their global climate commitments.
    • Relative Targets: Consider using relative targets alongside absolute targets. Relative targets are less dependent on specific demand growth projections, providing greater flexibility.
    • Support for Developing Nations: Provide financial and technical assistance to developing countries to help them meet their renewable energy targets. This includes support for grid development, energy storage, and renewable energy infrastructure.
    • Fossil Fuel Phase-Out: Encourage developed nations to accelerate the phase-out of fossil fuel-based electricity production. This step is vital for reducing carbon emissions and creating space for renewable energy capacity.
    • Investment in Energy Storage: Invest in research, development, and deployment of energy storage solutions at the scale required by ambitious renewable energy targets. Reliable energy storage is essential for grid stability.
    • Climate Finance Commitments: Commit to fulfilling climate finance targets, including the annual $100 billion target, to support climate-related projects across sectors, including renewable energy.
    • Policy Alignment: Align domestic policies with international climate agreements, such as the Paris Agreement. Governments should implement policies that promote renewable energy growth and the phase-out of fossil fuels.

    Conclusion

    • As COP28 approaches, developing nations, especially India, should endorse the global tripling of the RES capacity target only if developed nations commit to absolute, equitable, and commensurate targets domestically. Achieving equity in responsibility is crucial to the success of the global renewable energy transition.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Explained: Special Session of Parliament

    14 September 2023 | Prelims Only | Polity
    Mains Paper 2: Parliament & State Legislatures

    Central Idea

    • The Union government of India has announced a special session of Parliament to be held in the newly constructed building.
    • This session holds particular significance as it marks the first official use of the new parliamentary facility.

    Special Session of Parliament: An Overview:

    • A special session of Parliament refers to a unique meeting convened outside of the regular parliamentary sessions.
    • The term “special session” is not explicitly mentioned in the Constitution of India.
    • Its convening is carried out as per the provisions of Article 85(1) of the Constitution.

    Procedure of calling such Session

    • Article 85(1) of the Indian Constitution stipulates the procedure for summoning Parliament.
    • This constitutional provision grants the President the authority to call Parliament into session, including special sessions, as deemed necessary.
    • It says:

    “The President shall from time to time summon each House of Parliament to meet at such time and place as he/she thinks fit, but six months shall not intervene between its last sitting in one session and the date appointed for its first sitting in the next session.”

    Historical Context of Special Sessions:

    Special sessions of Parliament have varied in their focus and format over the years:

    [A] Special Sessions with Debates:

    • 2015: A special session commemorated Dr. B.R. Ambedkar’s 125th birth anniversary.
    • 1997: Parliament convened to mark India’s 50th anniversary of independence.
    • 1962: The agenda included a discussion on the India-China war situation.

    [B] Midnight Special Sessions (Without Debates):

    • 1972: A session was held to celebrate 25 years of India’s independence.
    • 1992: A special session marked the 50th anniversary of the Quit India Movement.
    • 2017: A session was convened to mark the rollout of the Goods and Services Tax (GST).

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  • Modern Indian History-Events and Personalities

    Operation Polo: Integrating Hyderabad – 75 Years On

    14 September 2023 | Prelims Only |
    Mains Paper 1: GS1-02.Modern Indian History- Mid-18th century – Present (significant events, personalities, issues);

    operation polo

    Central Idea

    • September 13, 2023, marks the 75th anniversary of Operation Polo, a significant military action undertaken by the Indian Army in 1948 to integrate the princely state of Hyderabad.
    • This operation, also known as the “Police Action,” led to the Nizam of Hyderabad’s forces surrendering to the Indian Army by September 18, 1948.
    • Understanding the background and events surrounding Operation Polo is essential to appreciate its historical significance.

    Context of Operation Polo

    (1) The Nizam’s Stand:

    • The Nizam of Hyderabad, Mir Osman Ali Shah, was reluctant to join India or Pakistan after India’s Independence in 1947.
    • He exploited the diversion of Indian resources towards the Kashmir conflict, signing a standstill agreement with India in November 1947, maintaining the status quo in Hyderabad.

    (2) Growing Tensions:

    • Hyderabad, a populous and prosperous state in the Deccan, was predominantly Hindu but administered by Muslim rulers.
    • The state had no common border with Pakistan, yet the Nizam sought amicable relations with Pakistan.
    • The Nizam’s forces, especially the Razakars, escalated tensions with their actions, including cross-border raids and overtures to Pakistan.

    The Military Campaign: Operation Polo

    (1) Hyderabad’s Forces and Situation:

    • Hyderabad’s military consisted of approximately 25,000 troops, with limited training and readiness.
    • The Razakars, though numerous, posed a minor military challenge.

    (2) Indian Army’s Leadership:

    • Major General Jayanto Nath Chaudhuri, the General Officer Commanding of 1 Armoured Division, led the Indian forces.

    (3) Multi-Directional Offensive:

    • The primary assault came from the west, led by 1 Armoured Division, supported by forces from the north, south, and east.
    • Key elements included the Smash Force, Kill Force, and Vir Force in the western thrust.
    • Additional thrusts were launched from Aurangabad, Jabalpur, and the eastern front.
    • The southern thrust originated from Vijayawada.

    Conclusion: Surrender and Significance

    (1) Ceasefire and Surrender:

    • The Nizam announced a ceasefire on September 17, 1948.
    • On September 18, Major General Chaudhuri entered Hyderabad, and Major General El Edroos surrendered to him.
    • Major General Chaudhuri was subsequently appointed as the Military Governor of Hyderabad.

    (2) Honoring a Hero:

    • Havildar Bachhitar Singh of 2 Sikh was posthumously awarded the first Ashoka Chakra of Independent India for his role in Operation Polo.
    • He sacrificed his life on September 13, 1948, while advancing towards Naldurg, a part of Hyderabad state.

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  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    Global Stocktake Report

    14 September 2023 | IOCR | Environment
    Mains Paper 1: Important Geophysical Phenomena

    Central Idea

    • Amid the gathering of world leaders in New Delhi for the G-20 summit, the UN climate secretariat unveiled a ‘synthesis report’ summarizing progress made by nations towards the goals of the 2015 Paris Agreement.
    • Known as the ‘global stocktake,’ this report is a vital component of global climate action, assessing efforts to combat climate change every five years.

    Understanding the ‘Global Stocktake’

    (1) Origins and Purpose:

    • The ‘global stocktake’ is integral to the Paris Agreement, which commits countries to limit global warming to below 2 degrees Celsius and strive for a 1.5-degree target.
    • Its primary aim is to periodically review and evaluate individual nations’ efforts in reducing greenhouse gas emissions and transitioning to renewable energy sources.

    (2) Influence on Climate Talks:

    • The inaugural report, released this year, carries significant weight, shaping discussions at the upcoming 28th UN Climate Conference of Parties (COP) in Dubai in November.
    • While countries have submitted their Nationally Determined Contributions (NDCs) for climate action, the stocktake encourages them to enhance their ambitions before the next NDCs in 2025.

    Key Insights from the Report

    (1) Overall Assessment:

    • The 45-page synthesis report delivers 17 key findings that collectively convey that the world is falling short of its Paris Agreement targets. However, it highlights a narrowing window of opportunity for countries to align their efforts.

    (2) Echoing Previous Concerns:

    • The report echoes concerns raised in the 2022 UN synthesis report, which analyzed the NDCs of 166 countries and found them inadequate to meet Paris Agreement goals.
    • It reiterates the findings of the United Nations Emissions Gap Report, emphasizing the vast shortfall in reducing CO2 emissions compared to the Paris targets.

    Crucial ‘Key Findings’

    (1) Galvanized Global Response:

    • The Paris Agreement has spurred countries to set climate goals and acknowledge the urgency of addressing the climate crisis.
    • Governments must support the transition away from fossil fuels, ensuring it is equitable and inclusive.

    (2) Ambitious Goals:

    • Much greater ambition is needed to achieve global greenhouse gas emission reductions of 43% by 2030 and 60% by 2035, leading to net-zero CO2 emissions by 2050.

    (3) Renewable Energy Transition:

    • Scaling up renewable energy is imperative, while unabated fossil fuels must be phased out rapidly.

    (4) Environmental Conservation:

    • Efforts to halt deforestation, reverse land degradation, and promote emission-reducing agricultural practices must be encouraged.

    (5) Adaptation and Loss Management:

    • Comprehensive risk management and support for impacted communities are essential for averting, minimizing, and addressing loss and damage due to climate change.

    (6) Financial Commitment:

    • Transparent adaptation reporting and the rapid scaling up of financial support are needed to align global financial flows with climate-resilient development.

    Influence on Global Climate Discussion

    • The global stocktake report serves as a foundational document for the upcoming UN Climate Conference of Parties (COP).
    • It notably influenced the G20 Leaders Declaration, which officially acknowledged the substantial financial requirements for transitioning to a renewable energy economy.
    • This acknowledgement sets the stage for intensified efforts, emphasizing the need for trillions of dollars to support climate action, renewable technologies, and the path to net-zero emissions by 2050.

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  • Indian Air Force Updates

    C-295 Transport Aircraft: All you need to know

    14 September 2023 | Prelims Only | Internal Security
    Mains Paper 3: Various Security Forces, Agencies & Their Mandates

    c-195

    Central Idea

    • In a significant milestone, the Indian Air Force (IAF) received its inaugural C-295 transport aircraft during a ceremony held in Seville, Spain.
    • IAF’s fleet of C-295s is set to become the largest globally, with an initial order for 56 aircraft.

    About C-295

    • The C-295MW is a transport aircraft with a carrying capacity ranging from 5 to 10 tonnes.
    • It can accommodate up to 71 troops or 49 para-troopers, offering significant flexibility.
    • The aircraft boasts a maximum cruise speed of 260 knots, ensuring rapid deployment.
    • Its exceptional low-level flight characteristics enable tactical missions, even at slow speeds as low as 110 knots.
    • The C-295 is equipped with a rear ramp door, facilitating swift troop and cargo deployments.
    • Each aircraft is outfitted with an indigenous Electronic Warfare Suite developed by Bharat Electronics Ltd and Bharat Dynamics Limited.
    • Two Pratt & Whitney Canada PW127G turboprop engines propel the aircraft.
    • The C-295 exhibits short take-off and landing (STOL) capabilities, enabling the use of unprepared airstrips.

    Significance of the aircraft

    • India’s entry into aircraft production will place it among a select group of nations with the capability to manufacture C-295 aircraft.
    • This group includes countries like the US, UK, Russia, France, Italy, Spain, Ukraine, Brazil, China, and Japan.
    • The project will stimulate India’s aerospace ecosystem, involving numerous MSMEs across the country in the manufacturing of aircraft components.
    • This includes areas of strategic importance, such as the border with China and the Andaman and Nicobar archipelago.

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  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    Six of 9 Planetary Boundaries breached by Humans

    14 September 2023 | IOCR | Environment
    Mains Paper 1: Important Geophysical Phenomena

    boundaries

     

    Central Idea

    • A recent study has delivered a stark message: humanity has breached six of the nine planetary boundaries that are crucial for maintaining Earth’s stability and resilience.

    What are the 9 Planetary Boundaries?

    • These boundaries encompass climate change, biosphere integrity, land system change, freshwater change, biogeochemical flows, and novel entities.
    • These findings underscore the urgent need for a thorough reassessment of our environmental impact and the imperative of global collaboration to address these critical challenges.

    Understanding Planetary Boundaries

    (1) Setting Safe Limits:

    • Planetary boundaries can be likened to the vital parameters in human health, such as blood pressure.
    • Just as high blood pressure elevates the risk of heart disease, exceeding planetary boundaries heightens the risk of triggering irreversible environmental changes.

    (2) An Evolving Framework:

    • The planetary boundaries framework was introduced in 2009 to define the safe environmental limits within which humanity should operate.
    • To remain relevant, the framework must adapt as our understanding of Earth’s complex systems and human impacts evolves.

    The Third Iteration: Assessing Environmental Risks

    (1) Identifying Critical Processes:

    • Researchers examined processes within Earth’s ecosystem that have been vital for sustaining favourable conditions for humans over the past 12,000 years.
    • This era is noted for its stable and temperate planetary conditions.

    (2) Evaluating Human Impact:

    • The study assessed the extent to which human activities are modifying these crucial processes.
    • Computer simulations were employed to determine the point at which human activities could trigger irreversible changes in Earth’s systems.

    (3) Alarming Revelations:

    • The study found that human activities had breached safe boundaries for climate change and land system change as early as 1988.
    • The current trajectory poses a substantial risk of systemic disruption.

    Boundaries Crossed and Their Consequences

    (1) Atmospheric Carbon Dioxide Concentration:

    • The safe limit was set at 350 ppm; it currently stands at 417 ppm.
    • This has led to significant climate change.

    (2) Land System Change:

    • The safe limit aimed to maintain 75% of the original forest cover; the current estimate is at 60%.
    • Such alterations have profound consequences for land systems.

    (3) Biosphere Integrity:

    • The safe limit was fewer than 10 extinctions per million species-years; the actual rate has exceeded 100.
    • This poses a severe threat to millions of plant and animal species.

    (4) Freshwater Change:

    • Boundaries have been exceeded for both blue (surface and groundwater) and green (water available for plants) water resources.
    • This has negative consequences for ecosystems.

    (5) Biogeochemical Flows:

    • Safe boundaries have been surpassed for phosphorus and nitrogen flows.
    • This has alarming implications for biodiversity and water quality.

    (6) Novel Entities:

    • The planetary boundary for novel entities was set at zero, and this boundary has been transgressed.
    • Risks include stratospheric ozone depletion, aerosol loading, and ocean acidification.

    Way Forward: Urgent Global Collaboration

    (1) Lessons from the Ozone Layer:

    • Successful global negotiations, like the Montreal Protocol, managed to restore the ozone layer to safe levels after transgression.
    • Emphasizes the importance of adhering to limits on environmental waste.

    (2) Embracing a Circular Economy:

    • A circular economy, mirroring nature’s own system, is essential.
    • Transitioning towards a circular economy represents a crucial step in tackling these planetary challenges.

    Conclusion

    • The study’s findings serve as a stark reminder of humanity’s responsibility to safeguard Earth’s delicate equilibrium.
    • Breaching planetary boundaries not only poses immediate risks but also imperils the long-term sustainability of our planet.
    • Urgent global cooperation and a commitment to respecting environmental limits are essential to avert a potentially catastrophic future.

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

    President launches Ayushman Bhav Campaign

    14 September 2023 | Schemes | Governance
    Mains Paper 2: Government Scheme/Policies

    Central Idea

    • The President of India, Mrs. Murmu, virtually launched the Ayushman Bhav campaign and the Ayushman Bhava portal.

    Ayushman Bhav Campaign  

    • The Ayushman Bhav campaign aims to deliver healthcare services to the remotest corners of India, playing a pivotal role in achieving the campaign’s ambitious objectives.
    • It is designed to ensure that every individual receives essential health services, aligning with the overarching goals of Ayushman Bhav.
    • The campaign’s goals, include-
    1. Facilitating access to Ayushman cards
    2. Generating ABHA IDs
    3. Raising awareness about critical health schemes and disease conditions, such as non-communicable diseases, tuberculosis, and sickle cell disease.

    Three Components of Ayushman Bhav:

    • President highlighted the three integral components of Ayushman Bhav:
    1. Ayushman – Apke Dwar 3.0
    2. Ayushman Melas at Health and Wellness Centres (HWC) and Community Health Clinics (CHC)
    3. Ayushman Sabhas in every village and panchayat
    • These components are expected to accelerate the delivery of healthcare services at grassroots levels, contributing to the creation of a healthier nation.

    Back2Basics: Ayushman Bharat Scheme

    Launch Year 2018
    Objective Universal Health Coverage and Financial Protection
    Components 1. Pradhan Mantri Jan Arogya Yojana (PM-JAY)

    2. Health and Wellness Centers (HWCs)
    Target Beneficiaries Economically disadvantaged families, rural populations, vulnerable communities
    Coverage Health insurance for eligible families, covering various medical expenses
    Services Offered Comprehensive healthcare services, including preventive, promotive, and curative care
    Impact Improved health indicators, reduced financial burden on beneficiaries, enhanced healthcare infrastructure
    Vision To make healthcare a fundamental right for all Indian citizens

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  • Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

    India vs. China in Smartphone Manufacturing

    14 September 2023 | Explained | Economics
    Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    china mobile

    Central Idea

    • India’s smartphone manufacturing industry has reached a noteworthy milestone with the production and launch of the iPhone 15.
    • This development raises the question of whether India is on the path to becoming a rival to China in smartphone manufacturing.
    • While India has made substantial progress, certain factors still set it apart from China.

    Why discuss this?

    • India has become the second largest mobile-producing nation as locally made mobile phone shipments crossed the 2 billion cumulative mark in the 2014-2022 period, registering a 23% growth compounded annually, according to a new report.
    • The ramp up in local manufacturing came on the back of huge internal demand, increasing digital literacy, and government push.

    A Shift in iPhone Manufacturing

    (1) Historical Context:

    • iPhones have been assembled in India since 2017.
    • Previously, India’s assembly lines lagged behind global launches.

    (2) The iPhone Breakthrough:

    • India’s Foxconn plant in Chennai produced the iPhone 15 a month before its global launch.
    • This signifies India’s transition into a parallel manufacturing market alongside China.

    Comparing India and China

    (1) Not Yet Equals:

    • India’s achievement is commendable, but it hasn’t completely caught up with China.
    • Base iPhone 15 assembly takes place in India, while Pro iPhones are still produced elsewhere.
    • Established supply chains in China pose a challenge for India.

    (2) The Challenge of Supply Chains:

    • Supply chain operations in India aren’t as seamless as in China.
    • Bridging this gap is expected to take at least two more years.

    Understanding Smartphone Manufacturing in India

    (1) High-Level Assembly:

    • Key components like cameras, displays, and chips are imported.
    • India primarily serves as a high-level assembly destination.
    • In contrast, China’s fabs (chip and display plants) provide a manufacturing advantage.

    (2) Skill Development:

    • Smartphone manufacturing has become highly automated.
    • India’s workforce is being upskilled to operate sophisticated assembly lines.
    • Supply chain considerations impact Apple’s decision to not assemble Pro iPhones in India.

    Pricing Dynamics and Future Prospects

    (1) Pricing Paradox:

    • India isn’t inherently a cheaper manufacturing destination compared to China.
    • Apple’s iPhone sales in India are growing, potentially by nearly 40%.
    • Apple doesn’t need to lower prices due to continued growth.

    (2) Potential Price Revisions:

    • India experiences a pricing disparity compared to the US and UAE.
    • Price revisions may become necessary once iPhone shipments exceed 10 million units annually.

    India’s lacunae

    (1) High-End Manufacturing:

    • India aspires to host high-end smartphone and electronics manufacturing.
    • However, this goal is distant due to the country’s limited volume in this segment.
    • To make this transition viable, firms would need to export around 500 million units annually, a target that seems distant.

    (2) Semiconductor Fabrication:

    • Semiconductor fabrication, a critical aspect of electronics manufacturing, remains outside India’s grasp.
    • Moving semiconductor fabrication to India isn’t currently feasible for companies due to the lack of scale and infrastructure.

    Conclusion

    • India’s ascent in smartphone manufacturing, exemplified by the production of the iPhone 15, is a significant achievement.
    • While challenges remain, such as supply chain scale and workforce upskilling, India’s progress underscores its potential to compete with China in the future.
    • As smartphone sales continue to surge, pricing dynamics and local manufacturing may undergo further transformations, benefiting both the industry and consumers.

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  • Cyber Security – CERTs, Policy, etc

    Draft UN Cyber Crime Convention

    14 September 2023 | IOCR | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Central Idea

    • The Union Home Ministry recently reviewed the draft of the UN Cyber Crime Convention.
    • The purpose of this review was to assess the necessary changes in India’s existing systems if the convention is signed and ratified by the country.

    UN Cybercrime Convention (Draft)
    Background
    • Under negotiation, aiming to reshape global criminal laws regarding cross-border access to personal data, surveillance, and international cooperation in cybercrime cases.
    Timeline
    • The convention is scheduled for adoption in January 2024, with member states working towards consensus.
    • A vote may occur if consensus is not reached.
    Content of Zero Draft
    • Zero draft outlines the convention’s scope, provisions, and areas of discussion.
    Focus Areas of Concern 1. Scope of Cybercrimes: The draft narrows the list of cybercrimes but leaves room for expanding the scope through references to other international conventions.

    2. Speech-Related Offenses: While removing certain content-related offenses, it reintroduces them by applying the convention to crimes established under other international conventions.

    3. Surveillance Powers: The draft retains surveillance powers, raising concerns about the lack of consensus on legal safeguards.

    4. Use of Budapest Convention Language: Some provisions in Chapter IV are based on the 2001 Budapest Convention but with weakened safeguards.
    Recommendations
    • Groups advocate for strong safeguards, including the justification for surveillance powers, independent authorization, transparency, and enforcement mechanisms.
    • They propose authorizing international human rights bodies to oversee convention implementation.
    • Ongoing negotiations may lead to changes in the draft text, emphasizing the need to monitor developments regarding human rights and cybersecurity.

     

    Why discuss this?

    • India enacted the Digital Personal Data Protection Act in August, ushering in a framework for personal data protection within the country.
    • This legislation allows personal data to be processed in the interest of India’s sovereignty, integrity, and state security while fulfilling legal obligations.
    • Notably, it also mandates that firms disclose to users the identity of other firms entrusted with their data for processing.
    • However, the Act explicitly exempts firms from disclosing or sharing data in the case of lawful interception of data.

    India’s position on the Convention

    India put forth several key positions:

    1. Deleting Data Transfer Clause: India advocated for the deletion of a clause that encourages state parties to “establish bilateral or multilateral arrangements” to facilitate the transfer of personal data. This underscores India’s emphasis on the sovereignty of its data and its desire to maintain control over cross-border data transfers.
    2. Authorization for Data Transfer: India expressed its agreement with the clause stating that state parties may transfer personal data to a third country or an international organization only with the prior written authorization of the original transferring state party, subject to effective and appropriate safeguards. This reflects India’s commitment to ensuring data security and responsible handling.
    3. Designation of Points of Contact: The draft convention outlines that each state party should designate a point of contact available 24/7 to provide immediate assistance for investigations, prosecutions, or judicial proceedings related to cyber criminal offenses. This demonstrates India’s commitment to effective cooperation in addressing cybercrimes.

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