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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Urban-rural manufacturing shift: A mixed bag

op-ed snap | Economics | Mains Paper 3: Indian Economy,Issues relating growth and development, employment
Context
- There is growing evidence to suggest that the most conspicuous trend in the manufacturing sector in India has been a shift of manufacturing activity and employment from bigger cities to smaller towns and rural areas. This ‘urban-rural manufacturing shift’ has often been interpreted as a mixed bag, as it has its share of advantages that could transform the rural economy, as well as a set of constraints, which could hamper higher growth.
Recent data by Annual Survey of Industries for 2019-20
- In terms of capital: The rural segment is a significant contributor to the manufacturing sector’s output. While 42% of factories are in rural areas, 62% of fixed capital is in the rural side.
- In terms of value addition: In terms of output and value addition, rural factories contributed to exactly half of the total sector.
- In terms of employment: In terms of employment, it accounted for 44%, but had only a 41% share in the total wages of the sector.
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Why is this shift of manufacturing away from urban locations to rural?
- A report on manufacturing shift brought out by World Bank: The movement of manufacturing away from urban locations was brought out by the Work Bank in a report a decade ago, “Is India’s Manufacturing Sector Moving Away from Cities? Policy Research Working Paper, World Bank).
- Higher urban-rural cost caused this shift: This study investigated the urbanisation of the Indian manufacturing sector by “combining enterprise data from formal and informal sectors and found that manufacturing plants in the formal sector are moving away from urban areas and into rural locations, while the informal sector is moving from rural to urban locations”. Their results suggested that higher urban-rural cost ratios caused this shift.
- Steady investment in rural areas: This is the result of a steady stream of investments in rural locations over the last two decades.
- Input costs are relatively less in rural area: Rural areas have generally been more attractive to manufacturing firms because wages, property, and land costs are all lower than in most metropolitan areas.
- Factory floorspace supply constraints: When locations get more urbanised and congested, the greater these space constraints are.
- Increased capital intensity of production: The driving force behind such a shift is the continuing displacement of labour by machinery as a result of the continuous capital investments in new production technologies. In cities, factories just cannot be expanded as opposed to rural areas.
How this trend is a welcome sign?
- Fulfilling the need of balanced development: Given the size of the Indian economy and the need for balanced regional development, the dispersal of manufacturing activities is a welcome sign.
- Created an opportunity for small scale industries to survive after liberalization: In the aftermath of trade liberalisation, import competition intensified for many Indian manufacturers, forcing them to look for cheaper methods and locations of production. One way to cut costs was to move some operations from cities to smaller towns, where labour costs are cheaper.
- Source of livelihood diversification in rural area: The shift in manufacturing activities from urban to rural areas has helped maintain the importance of manufacturing as a source of livelihood diversification in rural India.
- Make up for loss of employment: This trend helped to make up for the loss of employment in some traditional rural industries. The growth of rural manufacturing, by generating new jobs, thus provides an economic base for the transition out of agriculture
What are the challenges ahead and a solution to it?
- While the input cost is less but the cost of capital is high, offsetting the benefits: Though firms reap the benefits of lower costs via lower rents, the cost of capital seems to be higher for firms operating on the rural side. This is evident from the shares in rent and interest paid. The rural segment accounted for only 35% of the total rent paid, while it had 60% of the total interest payments. The benefits reaped from one source seem to be offset by the increased costs on the other front.
- Skill shortages in rural area: There exists an issue of “skills shortage” in rural areas as manufacturing now needs higher skilled workers to compete in the highly technological global ‘new economy’. Manufacturers who need higher skilled labour find that rural areas cannot supply it in adequate quantities. Manufacturers who depend only on low-wage workers simply cannot sustain their competitive edge for longer periods as this cost advantage vanishes over time.
- Solution to this issue lies in skill development: This suggests the need for clear solutions to the problems of rural manufacturing and the most important is the provision of more education and skilling for rural workers. A more educated and skilled rural workforce will establish rural areas’ comparative advantage of low wages, higher reliability and productivity and hasten the process of the movement out of agriculture to higher-earning livelihoods
Conclusion
- Given the size of the Indian economy and the need for balanced regional development, the dispersal of manufacturing activities is a welcome sign. However, the compulsions of global competition often extend beyond the considerations of low-wage production and depend on the virtues of ‘conducive ecosystems’ for firms to grow.
Mains Question

Q. There is growing evidence to suggest that the trend in the manufacturing sector in India has been a shift of manufacturing activity and employment from bigger cities to smaller towns and rural areas. Discuss the reasons for this trend and note down the challenges ahead.

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Women Safety Issues – Marital Rape, Domestic Violence, Swadhar, Nirbhaya Fund, etc.

What is the Recusal of Judges?

| Polity | Mains Paper 2: Executive & Judiciary
A Supreme Court judge recused herself from hearing a writ petition filed by Bilkis Bano against the decision to prematurely release 11 men sentenced to life imprisonment for gang-raping her during the 2002 riots.

What is the Recusal of Judges?
- Recusal is the removal of oneself as a judge or policymaker in a particular matter, especially because of a conflict of interest.
- Recusal usually takes place when a judge has a conflict of interest or has a prior association with the parties in the case.
- For example, if the case pertains to a company in which the judge holds stakes, the apprehension would seem reasonable.
- Similarly, if the judge has, in the past, appeared for one of the parties involved in a case, the call for recusal may seem right.
- A recusal inevitably leads to delay. The case goes back to the Chief Justice, who has to constitute a fresh Bench.
Rules on Recusals
- There are no written rules on the recusal of judges from hearing cases listed before them in constitutional courts. It is left to the discretion of a judge.
- The reasons for recusal are not disclosed in an order of the court. Some judges orally convey to the lawyers involved in the case their reasons for recusal, many do not.
- Some explain the reasons in their order. The decision rests on the conscience of the judge.
- At times, parties involved raise apprehensions about a possible conflict of interest.
Issues with recusal
- Recusal is also regarded as the abdication of duty. Maintaining institutional civilities are distinct from the fiercely independent role of the judge as an adjudicator.
- In his separate opinion in the NJAC judgment in 2015, Justice Kurian Joseph highlighted the need for judges to give reasons for recusal as a measure to build transparency.
- It is the constitutional duty, as reflected in one’s oath, to be transparent and accountable, and hence, a judge is required to indicate reasons for his recusal from a particular case.
Back2Basics: Bilkis Bano Case
- Bilkis Bano is a gangrape survivor of the 2002 riots in Gujarat. Rioters brutally attacked Bilkis and her family, raped the women and killed many of them.
- Her case was taken up by the National Human Rights Commission (NHRC) and Supreme Court. Later, the Supreme Court transferred the investigation to the CBI and the case to Mumbai to facilitate a free and fair trial.
- Eleven men were convicted by the trial court and sentenced to life. The Bombay High Court confirmed their life terms in 2017.
- In 2019, the Supreme Court awarded compensation of Rs 50 lakh to Bilkis — the first such order in a case related to the 2002 riots.
- The convicts were later released after the state government’s remission to them for spending more than 15 years in jail.
Issues with this remission
- Causality of a heinous crime: The remission runs contrary to the spirit of contemporary thinking on treating crimes against women and children as so heinous that the perpetrators should not be considered for remission.
- Whimsy release: The CrPC does permit premature release in the form of remission or commutation in life sentences, but it should be based on a legal and constitutional scheme, and not on a ruler’s whimsy.
- Political considerations: It would be unjustified if given for political considerations merely because of elapse of the minimum number of years they have to serve.
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Foreign Policy Watch: India-Pakistan

Back in news: Organization of Islamic Cooperation (OIC)

Prelims Only | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India
India strongly condemned the Organisation of Islamic Cooperation chief’s visit to Line of Control (LoC) from the Pakistani side.

What is OIC?
- The OIC — formerly Organisation of the Islamic Conference — is the world’s second-largest inter-governmental organization after the UN, with a membership of 57 states.
- The OIC’s stated objective is “to safeguard and protect the interests of the Muslim world in the spirit of promoting international peace and harmony among various people of the world”.
- OIC has reserved membership for Muslim-majority countries. Russia, Thailand, and a couple of other small countries have Observer status.
India and OIC
- At the 45th session of the Foreign Ministers’ Summit in 2018, Bangladesh suggested that India, where more than 10% of the world’s Muslims live, should be given Observer status.
- In 1969, India was dis-invited from the Conference of Islamic Countries in Rabat, Morocco at Pakistan’s behest.
- Then Agriculture Minister Fakhruddin Ali Ahmed was dis-invited upon arrival in Morocco after Pakistan President Yahya Khan lobbied against Indian participation.
Recent developments
- In 2019, India made its maiden appearance at the OIC Foreign Ministers’ meeting in Abu Dhabi, as a “guest of honor”.
- This first-time invitation was seen as a diplomatic victory for New Delhi, especially at a time of heightened tensions with Pakistan following the Pulwama attack.
- Pakistan had opposed the invitation to Swaraj and it boycotted the plenary after the UAE turned down its demand to rescind the invitation.
- Earlier this year, the ousted Pakistani PM called a OIC summit which ended up without any remarks.
What is the OIC’s stand on Kashmir?
- It has been generally supportive of Pakistan’s stand on Kashmir and has issued statements criticizing India.
- Last year, after India revoked Article 370 in Kashmir, Pakistan lobbied with the OIC for their condemnation of the move.
- To Pakistan’s surprise, Saudi Arabia and the UAE — both top leaders among the Muslim countries — issued nuanced statements, and were not as harshly critical of New Delhi as Islamabad had hoped.
- Since then, Islamabad has tried to rouse sentiments among the Islamic countries, but only a handful of them — Turkey and Malaysia — publicly criticized India.
How has India been responding?
- India has consistently underlined that J&K is an integral part of India and is a matter strictly internal to India.
- The strength with which India has made this assertion has varied slightly at times, but never the core message.
- It has maintained its “consistent and well known” stand that the OIC had no locus standi.
- India asserts that- OIC has become a “mouthpiece” of Pakistan and that the organisation has been taking “blatantly communal, partisan and factually incorrect approach to issues”.
OIC members and India
- Individually, India has good relations with almost all member nations. Ties with the UAE and Saudi Arabia, especially, have looked up significantly in recent years.
- The OIC includes two of India’s close neighbors, Bangladesh and Maldives.
- Indian diplomats say both countries privately admit they do not want to complicate their bilateral ties with India on Kashmir but play along with OIC.
Way ahead
- India now sees the duality of the OIC as untenable, since many of these countries have good bilateral ties and convey to India to ignore OIC statements.
- But these countries sign off on the joint statements which are largely drafted by Pakistan.
- India feels it important to challenge the double-speak since Pakistan’s campaign and currency on the Kashmir issue have hardly any takers in the international community.
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NPA Crisis

What is a Loan Write-Off?

Prelims Only | Economics | Mains Paper 3: Indian Economy
Banks have written off bad loans worth ₹10,09,511 crore during the last five financial years, finance minister informed the Parliament.

What is a loan write-off?
- Writing off a loan essentially means it will no longer be counted as an asset.
- By writing off loans, a bank can reduce the level of non-performing assets (NPAs) on its books.
- The bank moves the defaulted loan, or NPA, out of the assets side and reports the amount as a loss.
- An additional benefit is that the amount so written off reduces the bank’s tax liability.
- The loans written off by the banks are the depositors’ money.
Why do banks resort to write-offs?
- Recovery issues: The bank writes off a loan after the borrower has defaulted on the loan repayment and there is a very low chance of recovery. However, the chances of recovery from written-off loans are very low.
- Provisioning: After the write-off, banks are supposed to continue their efforts to recover the loan using various options. They have to make provisioning as well.
- Reduce tax liability: The tax liability will also come down as the written-off amount is reduced from the profit.
Who is at the forefront of write-offs?
- Public sector banks reported the lion’s share of write-offs at Rs 734,738 crore accounting for 72.78 per cent of the exercise.
- Among individual public sector banks, reduction in NPAs due to write-offs in the case of State Bank of India Rs 204,486 crore in the last five years.
- Among private banks, ICICI Bank’s reduction in NPAs due to write-offs was Rs 50,514 crore in the last five years.
- Axis Bank wrote off Rs 49,715 crore and HDFC Bank Rs 34,782 crore during the period, according to the RBI.
What about recovery of such loans?
- Since the loan account is not closed in write-off, the right to recovery of the amount is not waived by the lender or the bank.
- The bank or lender can try to recover the loan amount from the loan defaulter.
Back2Basics: Non-Performing Assets (NPAs)
- A NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
- Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets.
1. Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months.
2. Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
3. Loss assets: As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.”
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Nuclear Energy

US scientists announce breakthrough in Fusion Energy

Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields
US announced a “major scientific breakthrough” in the decades-long quest to harness fusion, the energy that powers the sun and stars.

What is Fusion?
- Fusion works by pressing hydrogen atoms into each other with such force that they combine into helium, releasing enormous amounts of energy and heat.
- This process occurs in our Sun and other stars.
- Creating conditions for fusion on Earth involves generating and sustaining a plasma.
- Plasmas are gases that are so hot that electrons are freed from atomic nuclei.
How is it carried out?
- Three conditions must be fulfilled to achieve fusion in a laboratory:
1. Very high temperature (on the order of 150,000,000° Celsius);
2. Sufficient plasma particle density (to increase the likelihood that collisions do occur); and
3. Sufficient confinement time (to hold the plasma, which has a propensity to expand, within a defined volume).
- At extreme temperatures, electrons are separated from nuclei and a gas becomes a plasma—often referred to as the fourth state of matter.
- Fusion plasmas provide the environment in which light elements can fuse and yield energy.
Fusion Energy
- The process releases energy because the total mass of the resulting single nucleus is less than the mass of the two original nuclei.
- The leftover mass becomes energy.
What did the US achieve?
- The US experiment uses a process called inertial confinement fusion.
- It involved bombarding a tiny pellet of hydrogen plasma with the world’s biggest laser.
Why is it perceived as energy of the future?
- Carbon free: Fusion Reactions could one day produce nearly limitless, carbon-free energy, displacing fossil fuels and other traditional energy sources.
- Efficient: Net energy gain has been an elusive goal because fusion happens at such high temperatures and pressures that it is incredibly difficult to control.
- Clean: Unlike other nuclear reactions, it doesn’t create radioactive waste.
Fusion still far from reality. Why?
- Significant though the achievement is, it does little to bring the goal of producing electricity from fusion reactions any closer to reality.
- By all estimates, use of the fusion process for generating electricity at a commercial scale is still two to three decades away.
- The technology used in the US experiment might take even longer to get deployed.
India’s progress: ITER project
- International Thermonuclear Experimental Reactor (ITER) is one of the most ambitious energy projects in the world today.
- The idea for an international joint experiment in fusion was first launched in 1985.
- In southern France, 35 nations* are collaborating to build the world’s largest tokamak, a magnetic fusion device that has been designed to prove the feasibility of fusion.
- ITER is funded and run by seven member parties: China, the European Union, India, Japan, Russia, South Korea and the United States.
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Innovations in Biotechnology and Medical Sciences

What is Base Editing?

Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields
A teenage cancer patient suffering from T-cell acute lymphoblastic leukaemia (T-ALL) has defeated her seemingly incurable cancer with the help of base editing technique.

Base Editing
- Bases are the language of life. The four types of base – adenine (A), cytosine (C), guanine (G) and thymine (T) – are the building blocks of our genetic code.
- Just as letters in the alphabet spell out words that carry meaning, the billions of bases in our DNA spell out the instruction manual for our body.
- Base editing allows scientists to zoom to a precise part of the genetic code and then alter the molecular structure of just one base, converting it into another and changing the genetic instructions.
- The large team of doctors and scientists used this tool to engineer a new type of T-cell that was capable of hunting down and killing cancerous T-cells.
What is T-Cell?
- T (thymus) cells are type of white blood cell.
- They are part of the immune system and develop from stem cells in the bone marrow.
- They help protect the body from infection and may help fight cancer.
- Also called T lymphocyte and thymocyte.
How base editing helped this teenage cancer patient?
- Doctors started with healthy T-cells that came from a donor and set about modifying them.
- The first base edit disabled the T-cells targeting mechanism so they would not assault patient’s body.
- The second removed a chemical marking, called CD7, which is on all T-cells.
- The third edit was an invisibility cloak that prevented the cells being killed by a chemotherapy drug.
- The final stage of genetic modification instructed the T-cells to go hunting for anything with the CD7 marking on it so that it would destroy every T-cell in patient’s body – including the cancerous ones.
- That’s why this marking has to be removed from the therapy – otherwise it would just destroy itself.
- If the therapy works, the patient’s immune system – including T-cells – will be rebuilt with the second bone-marrow transplant.
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International Space Agencies – Missions and Discoveries

In news: Geminids meteor shower

Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields
Bengalurians are all set to witness the annual Geminids meteor shower.

What are meteor showers?
- Meteors are usually fragments of comets.
- As they enter the Earth’s atmosphere at high speed, they burn up, creating a spectacular “shower”.
- Meteors come from leftover comet particles and bits from asteroids.
- When these objects come around the Sun, they leave a dusty trail behind them.
- Every year Earth passes through these debris trails, which allows the bits to collide with our atmosphere where they disintegrate to create fiery and colorful streaks in the sky.
What makes the Geminids unique?
- Geminids is one of the brightest and most reliable annual meteor showers.
- They are unique because unlike most meteor showers, they originate not from a comet, but from an asteroid, the 3200 Phaethon.
- The 3200 Phaethon was discovered on October 11, 1983.
- It is named after the Greek mythology character Phaethon, son of the Sun God Helios.
- It takes 1.4 years to complete one round of the Sun.
- As the 3200 Phaethon moves close to the Sun while orbiting it, the rocks on its surface heat up and break off.
- When the Earth passes through the trail of this debris, the Geminids are caused.
Why are they called Geminids?
- That comes from the constellation Gemini, from whose location in the sky the meteor shower appears to originate.
- The constellation for which a meteor shower is named only serves to aid viewers in determining which shower they are viewing on a given night.
- The constellation is not the source of the meteors.
Back2Basics:
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Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

India-UK Free Trade Agreement (FTA) is good for both countries

op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India
Context
- The ties between India and the UK are often described as a Living Bridge, a dynamic economic force of people, businesses and ideas. As Prime Minister Narendra Modi drives forward plans to make India a developed nation within the next 25 years and the UK forges deeper trade relationships around the globe, our connections are growing stronger every day.
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Background: How India-UK trade relationship taking shape in recent time?
- Enhanced trade relationship: India and the UK are two of the largest economies on the planet. Economic relationship between the two is reaching new heights with an enhanced trade partnership.
- Minimised trade barriers: Both have lowered several trade barriers, pledged to bring down many more and set an ambitious target to double the value of India-UK trade by 2030.
- Opening up opportunities in UK: Since then, Indian firms, including established businesses and recent startups, have been finding opportunities in the UK.
- Business and investment in India: British businesses in fields ranging from food to financial services are expanding and investing in India. The car manufacturer, McLaren, which has just opened a showroom in Mumbai, is one example.
- FTA’s beneficial for future and mutual growth: An India-UK free trade agreement is a natural next step for both, bringing two nations with extraordinary plans for their futures closer still.
What are Free trade agreements (FTA)?
- Free trade agreements are agreements between the two or more countries or trading blocks that primarily agrees to eliminate or reduce customer tariff and non-tariff barriers on substantial trade between them.
Importance of Free Trade Agreements
- FTA include multiple trade aspects: FTAs cover a wide array of topics such as tariff reduction impacting the entire manufacturing and the agricultural sector; rules on services trade; digital issues such as data localization; intellectual property rights that may have an impact on the accessibility of drugs; and investment promotion, facilitation, and protection.
- Great impact on economy and society: Consequently, an FTA has a far-reaching impact on the economy and society. Given this, one legitimately expects transparency and greater scrutiny of the FTA process both during and after the negotiations.
How a Free trade agreement with UK will benefit India?
- Greater market access works both ways: Prime Minister Modi has urged Indian businesses to export their products to the world with “zero-effect, zero-defect”. In other words, high-quality goods with no environmental impact. A free trade agreement between our nations could further help achieve this target. It would help Indian firms to sell to a market that imported almost £820 billion of goods and services from around the world in the last 12 months on record.
- UK will aid in the ongoing India’s economic progress: The Indian economy’s future is an exciting one, with the prospect of new technologies, growing businesses and better jobs for its citizens. The UK has the skills and experience to aid this progress. A deal that’s right for both could make it cheaper and easier for ambitious Indian businesses to tap into this expertise. It is also only right that the millions of SMEs that power India’s economy benefit from a deal.
- Investment in one another’s economy will multiply the opportunities: The British cybersecurity solutions firm, Telesoft Technologies, has just said it will pump £10 million into its India subsidiary over the next five years supporting a growing telecoms sector. A free trade agreement that smooths British and Indian firms’ path to invest in one another’s economy would mean such opportunities multiply.
- FTA can be a force of primary economic growth in uncertain times: A free trade agreement’s value cannot be measured entirely in rupees and pounds. Covid-19’s impact on supply chains, slow global economic growth and volatile markets mean we are living in uncertain times, where free trade could be the primary force of prosperity throughout history. It will help to build the long-term security that people around the world need right now.
Conclusion
- In the economic uncertainty, free trade can be considered as answer to building the long-term security that people around the world need right now. In this, the year of its 75th anniversary since Independence and its G20 Presidency, India is on a path to a new economic future. It would be great to have UK alongside on this journey, as we together can use trade to benefit our citizens and the world.
Mains question

Q. Trade between India and UK is on upward trend. Free trade agreement between the two will surely benefit both the countries. How India can take advantage of the FTA between the two?

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e-Commerce: The New Boom

Regulating the Big Techs and competition in the market

op-ed snap | Polity | Mains Paper 2: E-Governance
Context
- The Indian anti-trust body, the Competition Commission of India (CCI)’s move, in October, to impose a penalty of ₹1,337.76 crore on Google for abusing its dominant position in the android mobile device ecosystem, has forced us, once again, to rethink the market power of Big Tech companies.
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Background: Acknowledging the big tech company’s market distorting abilities
- India did not account for network effect of big techs: When India established the CCI under the Indian Competition Act 2002, it was to protect and promote competition in markets, and prevent practices that hinder competition. However, it did not account for the network effect of Big Tech companies as a force to reckon with.
- Countries are realised their market dominance and moved to transform competition law: As their market dominance increased rather exponentially, the European Union, the United States, and even Australia realised their market-distorting abilities and moved to transform their competition law.
- For instance, European union’s Digital market Act: The EU’s Digital Market Act and “gatekeepers” who will enforce rules and regulations ex-ante to foresee anti-competitive practices is an example.
Competition Commission of India
- CCI is the competition regulator in India.
- It is a statutory body responsible for enforcing The Competition Act, 2002 and promoting competition throughout India and preventing activities that have an appreciable adverse effect on competition in India.
- It was established on 14 October 2003. It became fully functional in May 2009.
Big techs and the Market dominance issue
- Market dominance is natural but gets hazy when its abused: In any free economy, market dominance is natural but things get hazy when it is abused to prevent competition.
- Google’s case: As the CCI says, the intent of Google’s business was to make users on its platforms abide by its revenue-earning service, i.e., an online search to directly affect the sale of their online advertising services. Thus, network effects, along with a status quo bias, created significant entry barriers for competitors to enter or operate in the markets concerned.
- Fundamental role of pricing and as a determinant of competition: Predatory pricing entails the lowering of prices that forces other firms to be out competed. Amazon and Flipkart were accused of deep discounting and creating in-house brands to compete with local sellers. Only recently, the CCI raided their offices in an anti-competition probe, leading to Amazon being forced to cut its ties with Cloudtail.
- Consumers consent has no value: A crucial aspect of self-preferencing beyond the search algorithms is the bundling of services, especially with pre-installed apps, where the manufacturers eliminate competition without the consumer’s consent. Apple is facing heat in the U.S. and Europe over pre-installed apps after Russia forced Apple to provide third-party apps at the time of installation.
Use of data, issue of consumer protection
- Big techs self-asserted right to use, store and transfer consumers data: While the data economy has evolved, we have not dealt with its regulation as effectively. There is sensitive data stored on these platforms (financial records, phone location, and medical history). Big corporations have asserted ownership of the right to use or transfer this data without restriction.
- Data greed as a motivation: While one might attribute it to efficiency barriers, the greed for data is a motivation. Further, the storage and collection of women’s and children’s data need to be dealt with more cautiously to build a safe digital place.
- Market distortions lead to data monopoly and poor quality of services: Market distortion can also lead to poorer quality of services, data monopoly, and stifle innovation.
Steps to ensure a level playing field and consumer protection in the age of digital transformation?
- Urgent to need to prevent market failures and mitigate possible anti-competitive act: While the competition laws address that anomaly, they are too slow to respond in complex technical sectors. By the time an order is passed, the dominant player has gained an edge — as in the case of Google. Thus, in this context, there is an urgent need for ex-ante legislation to prevent market failures and mitigate possible anti-competitive conduct.
- Harmony of the competition law and e-commerce rule: For a consumer, there is a need to establish harmony of the Competition law with the new Consumer Protection Act 2020 and e-commerce rules. The new law should include a mechanism to ensure fair compensation for consumers who face the brunt of the anti-competitive practices of the Big Techs. This should ensure that the penalties and restrictions being imposed on companies also ensure proportionate compensation for consumer losses.
- Ensure a level playing field for local sellers: Pricing plays a fundamental role in defining the position of any digital platform in the marketplace. It is essential to establish an ex-ante framework to ensure a level playing field for local sellers. The Government’s Open Network for Digital Commerce (ONDC) platform is a reliable option for these small players.
- New laws and provisions for digital marketplace: There is an urgent need to contextualise the law to the digital marketplace and devise new provisions with adequate ex-ante legislation. The EU has already noted this need through the Digital Markets Act. It is time that similar legislation is adopted in India.
Prelims shot: What is “ONDC”?
- Open Network for Digital Commerce (ONDC) seeks to promote open networks, which are developed using the open-source methodology.
- The project is aimed at curbing “digital monopolies”.
- This is a step in the direction of making e-commerce processes open-source, thus creating a platform that can be utilized by all online retailers.
- They will encourage the usage of standardized open specifications and open network protocols, which are not dependent on any particular platform or customized one.
Conclusion
- Witnessing the big tech’s ability of market distortion, data monopoly and market dominance, Country’s competition laws need to be vigilant through an ex-ante framework to ensure highest consumer protection. With India now on the cusp of a digital transformation, it is essential that the country a level-playing field to ensure a fair opportunity for new-age start-ups and Micro, Small and Medium Enterprises.
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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Curbing individualism in public health

op-ed snap | Governance | Mains Paper 2: Health & Education
Context
- A failure to examine and interpret public health problems from a population perspective is leading to ineffective and unsustainable solutions as far as complex public health problems are concerned. There is a strong tendency in public health to prioritise individual-oriented interventions over societal oriented population-based approaches, also known as individualism in public health.
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What are the problems in public health approach?
- Micronutrient supplementation at Individualistic level instead sustainable approach at public level: Problems such as undernutrition, for which individualist solutions such as micronutrient supplementation and food fortification have been proposed as solutions in lieu of sustainable approaches such as a strengthening of the Public Distribution System, supplementary nutrition programmes, and the health services.
- Diagnosis and treatment than the solutions that modify health behaviours: Similar is the case with chronic disease control, wherein early diagnosis and treatment is the most popular solution, with little scope for solutions that can modify health behaviours (through organised community action).
Recent evidences that show individualism is preferred over population-based approach
1. Pradhan Mantri Jan Arogya Yojana (PMJAY): A nationwide publicly-funded insurance scheme, the Pradhan Mantri Jan Arogya Yojana (PMJAY) falls under Ayushman Bharat. It is the largest health insurance scheme in the country covering hospitalisation expenses for a family for ₹5 lakh a year. The goal is to ensure ‘free’ curative care services for all kinds of hospitalisation services so that there is no financial burden to the beneficiary.
- Approach needed: What is not talked about in the entire scheme is the need for hospitalisation services per year for any population.
- Approach preferred: Instead, every individual is given an assurance that if there is a need for hospitalisation expenses, the scheme will cover the expenses, highlighting the risk/probability of every individual facing hospitalisation in a year.
- Individualistic response: This is an individualistic response to the problem of hospitalisation expenditure faced by populations. This becomes obvious when one examines the data on annual hospitalisation across populations.
1. vaccination for COVID-19 unlike other vaccinations: It was evident that a COVID-19 vaccine cannot prevent people from getting the disease but only reduce hospitalisation and deaths in the event of contracting COVID-19.
- Approach needed: To effectively manage COVID-19, what was needed was to have primary, secondary, and tertiary health-care facilities to manage the above proportion of cases. This is what a population-based approach to epidemic would be focusing on.
- Approach preferred: Instead, by focusing on a vaccination programme for the entire population, it is again an assurance and a promise to every individual that even if you get COVID-19, you will not need hospitalisation and not die. Even after the entire crisis, not much is talked about in terms of the grossly inadequate health-care infrastructure to ensure the necessary primary, secondary and tertiary care services for COVID-19 patients, in turn leading to many casualties.
- Individualistic response: The entire focus has been on the success story that every individual is protected from hospitalisation and death achieved through vaccine coverage. Most of the deaths due to COVID-19 are a reflection of the failure to offer ventilator and ICU support services to the 1%-2% in desperate need of it. Curative care provisioning is never planned at an individual level as epidemiologically, every individual will not necessarily need curative care every time. The morbidity profile of a population across age groups is an important criterion used to plan the curative care needs of a population.
What the data on population hospitalization suggests?
- Episode of hospitalization a year: Data from the National Sample Survey Organisation (75th round) show that on an average, only 3% of the total population in India had an episode of hospitalisation in a year (from 1% for Assam to 4% for Goa and 10% for Kerala the need also a function of availability). The proportion hovers around 3%-5% across most Indian States.
- Population based healthcare planning is necessary: This is population-based health-care planning. Instead, giving an assurance to every individual without ensuring the necessary health-care services to the population is not really helping in a crisis.
Determinants of individualistic approach
- Misconception in philosophy of public health: The dominance of biomedical knowledge and philosophy in the field of public health with a misconception that what is done at an individual level, when done at a population level, becomes public health. This is despite the contrasting philosophy and approaches of clinical medicine and public health and the evidence that support the latter and must be based on population characteristics and economic resources.
- Visibility impact and mistake of judging a population’s characteristics: Health effects are more visible and appear convincing at the individual level, wherein improvements at the population level will be clear only after population-level analysis; this needs a certain level of expertise and orientation about society an important skill required for public health practitioners.
- Market’s role and the effect of consumerism in public health practice: The beneficiaries for a programme become the maximum when 100% of the population is targeted. Instead of making efforts to supply evidence of the actual prevalence of public health problems, market forces would prefer to cast a wide net and cover 100% of beneficiaries. Propagating individualism has always been a characteristic feature of a consumerist society as every individual can then be a potential ‘customer’ in the face of risk and susceptibility.
Conclusion
- The need of the hour is population-level planning, which means, population as a single unit needs to be considered. All forms of individualistic approaches in public health need to be resisted to safeguard its original principles of practice, viz. population, prevention, and social justice.
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