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  • [UPSC 2025 & 2026] Our UAP Mentorship Student Got AIR 2, Animesh Pradhan, First Attempt, Working Professional. Join Ultimate Assessment Program For UPSC 2025 & 2026

    [UPSC 2025 & 2026] Our UAP Mentorship Student Got AIR 2, Animesh Pradhan, First Attempt, Working Professional. Join Ultimate Assessment Program For UPSC 2025 & 2026

    Animesh Pradhan, Age 24, Attempt: 1st, UPSC-CSE AIR 2.
    A graduate of NIT Rourkela, working as a full-time employee in Indian Oil Corp., he cleared UPSC CSE on his first attempt at the age of 24. He lost his father at an early age and was left with his Mother and elder sister. Unfortunately, his Mother passed away 40 days ago and couldn’t see her Son’s success and cherish it. His sister got married in January last year. He is a very committed, humble, and diligent student with high professional skills in managing work and studies.

    AIR 2, Animesh Pradhan at Civilsdaily Delhi Centre Today

    Schedule a 1-1 call with Civilsdaily’s Mentor for focused UPSC Prep. Scroll down the form to fill complete details.

    With all the lows in life, he came with the hope that one day, his mother would see him becoming an IAS officer. Even though one wish in these two remained unachieved, wherever his mother is, her wishes will be with him, and if there is heaven at all, she might be celebrating this in that heaven.

    AIR 2, Animesh Pradhan On Call With Civilsdaily Mentor Showing His Gratitude

    We hope he achieves much more success and wish him enough grit to achieve whatever he wants in life. We expect him not to stop here and make this a mere small achievement in his list of aspirations.

    Animesh Pradhan enrolled in UAP Mentorship, and we made sure that he got his name on the list.

    Schedule a 1-1 call with Civilsdaily’s mentor

    Why Civilsdaily Mentorship and Programs Are Unique?

    Element No. 1: The System

    The first element of the powerful mentorship program at CD is – The System.

    The system is the method that is used during the program. One of the first surprising elements of a Civilsdaily program is that we do an early assessment of the current stage of aspirants. This is done in 10+ dimensions. Along with that, you get a lot of study material in advance. Unlike other courses that give you average content when the course begins, you get high-quality content for UPSC Prep well in advance. The reason for this is simple: The Mentor is not around to create “shock and awe”. Instead, the element that really helps learning is the “safe zone”. When aspirants get the material in advance, it gives them time to learn and absorb it. And then, when the initial assessments happen in the form of mock tests, the aspirant is able to apply the learning.

    One big reason we fail to learn and progress in UPSC Prep is that we do not have time to practice and attempt mocks. 

    No one is around to correct our mistakes. All we get is an endless stream of information, and mastery over exam is further away than ever. The notes themselves need design: lots of examples, relevance to PYQs, and easy-to-read language. The syllabus content needs to be broken up into consumable chunks. It’s design, design and more design. Check our atomic and flash notes, and you will understand what we mean. A well-constructed system is the first element of the program at CD but by no means the most important.

    Trying to cope with breathless content all at once is extremely intimidating for the aspirants. When you’re in a Civilsdaily Mentorship program, you get the content well in advance. There’s no need to create “shock and awe” while mentoring. You learn better when you know and own the content, using the course to practice and get better at it instead.

    Element No. 2: The Group

    A journey of a thousand miles can be really intimidating without a group because UPSC -CSE requires MCQ and answer writing aptitude, which requires constant practice. When you work alone, it’s easy to give up or get distracted. A group is what gets you ahead. But how do you get a group that’s focused, smart, and helpful? Do such groups even exist?

    There’s a saying in Africa: If you want to go quickly, go alone. If you want to go far, go with a group. And yet, not any group will do, will it? You’ve been in Telegram groups before, and the terms “kind, helpful and smart” don’t come to mind, do they?

    The one thing that will amaze you at Civilsdaily is how much you come to rely on your group. At first, many aspirants assume that their progress is a lonely journey. They learn what’s required, do their mocks, and when the course is done, they get to the finish line.

    And yet habit-creation reveals something entirely different.

    Snagging a bad habit is relatively easy. The moment you have to build a “good habit,” it’s a lot harder to stay motivated—unless, of course, you have a group.

    The aspirant groups at the Civilsdaily course are brilliant, focused and helpful.

    It almost seems hard to find such an active, helpful bunch of people. And the reason why you’ll find this level of camaraderie here, is because of several reasons. But the biggest reason of all is because we’re selective.

    We only let people in if they pass our filters.

    We also will not have overloading of any kind. Our program accepts limited aspirants. You simply will not see the ocean full of aspirants you see on other courses. Finally, we break up the groups into even smaller groups of six or seven aspirants. We keep it small and focused. This gets you closer to the finish line. In short, you go far.

    Element No. 3: Daily and Weekly Practice

    Without practice, mastery of this exam is difficult. Without daily and weekly practice, you have a “decay problem.” Other courses will give you content and mocks once a month and won’t provide any kind of mentor feedback. This is a recipe for disaster. You won’t know if you are making any progress at all. 

    That’s not how we run our programs.

    When you’re a part of the Civilsdaily Mentorship program, whether you’re a beginner or veteran, you have a schedule that is unique to you and your requirements for the duration of the program. As you’d expect, all this is designed with “tiny increments” in mind, but it is the daily and weekly practice that keeps away the decay.

    And everything is enriched with a 1:1 mentor call.

    Your Mentor checks your preparation and works with you to ensure progress—there is no exception. This enables you to learn bit by bit instead of being dumped with endless content that you might never use in an exam. When you consider all three elements: the system, the group, and the daily and weekly practice, you are able to create a habit. This habit leads to success in exam.

    Any new subject or mock can be a little unnerving when you don’t get regular practice. Our program is designed to help you learn layer by layer, and it involves small steps done daily. That way, if you press the “wrong button,” we can learn from the mistake, fix it, and move ahead at an even pace.

    This attention to detail is what makes the Civilsdaily Mentorship Program among the best. But you’ll find that out for yourself.

    To explore our Mentorship and schedule a pre-enrollment call, Fill this Mentorship Form (Free for the next 24 hours) to connect with our mentors.

    Schedule a 1-1 call

    The heart of the Civilsdaily platform is the Foundation Program and Ultimate Assessment Program (UAP). For years, aspirants have enrolled here because they couldn’t find such depth and passion towards quality content and Mentorship anywhere. Their search inevitably ends at Civilsdaily. Enrollment in these programs and Mentorship also makes us accountable to aspirants for the value they get. 

    In the past few years, we’ve worked quietly in the background with hundreds of aspirants; many now serve as IAS, IPS, IFS, and more. We are very proud of what we’ve achieved. Here are some of the recent rankers who show us gratitude.

    Fill up This Mentorship Form (Free for the next 24 hours) to connect with our mentors.

  • [10th September 2024] The Hindu Op-ed: Regulatory reform stuck in a loop in Health Ministry

    [10th September 2024] The Hindu Op-ed: Regulatory reform stuck in a loop in Health Ministry

    PYQ Relevance:

    Q Bringing out the circumstances in 2005 which forced amendment to the section 3(d) in Indian Patent Law, 1970, discuss how it has been utilized by the Supreme Court in its judgement in rejecting Novartis’ patent application for ‘Glivec’. Discuss briefly the pros and cons of the decision. (UPSC IAS/2013)

    Q What do you understand by Fixed Dose drug Combinations (FDCs)? Discuss their merits and demerits. (UPSC IAS/2013)

    Mentor comment: Today’s editorial highlights ongoing challenges within India’s Health Ministry regarding the implementation of necessary regulatory reforms. This topic is significant due to the critical need for effective healthcare governance, especially in light of recent public health emergencies, such as the emergence of Mpox (monkeypox) cases in India.

    Following the Mpox case, the Union Health Ministry issued advisories urging states to enhance screening and contact tracing efforts. This reflects the urgent need for a robust regulatory framework to manage public health threats effectively.

    The article discusses how regulatory reforms are essential for improving the responsiveness and efficiency of the health sector, particularly in crises. 

    _

    Let’s learn!

    Why in the News?

    Due to the ongoing regulatory challenges, the Health Ministry has established a National Task Force to address healthcare challenges. 

    • The stagnation in reforms and public policy efforts could hinder the government’s ability to manage current and future public health challenges effectively.
    The Drugs Controller General of India (DCGI) introduced new policy initiatives in April 2024, which aimed at enhancing public health through recall guidelines, good distribution practices, and regulations against similar brand names.
    However, these measures are criticized for lacking legal enforcement and being poorly conceived, perpetuating a cycle of ineffective reforms.

    Key highlights by the 59th Report Parliamentary Standing Committee (PSC):

    • Storage Standards: The issue of lack of proper standards for storage of drugs, especially during transportation was raised by the Supreme Court in Swantraj & Ors vs State Of Maharashtra (1974).
    • Confusing Brand Names: The issue of similar brand names for different drugs leading to prescription errors was flagged by the Court in Cadila Healthcare Limited vs Cadila Pharmaceuticals Limited (2001).
    • Stagnation in Reforms: Despite over a decade of discussion, these issues remain unresolved due to bureaucratic inertia. 
    • Lack of Guidelines: Drugs ordered to be withdrawn in one State due to quality concerns were being sold in a neighboring state.
    • Non-Binding Guidelines: Recent drug recall guidelines lack legal enforcement, perpetuating ineffective reforms.

    What are the challenges around Procedural implementation?

    • Lack of Consensus: After the PSC report, a proposal to adopt good distribution practices guidelines formulated by the WHO came up for discussion in 2013.
      • The distribution practices and guidelines were to be made legally binding but it faced opposition from DCC because it was difficult to implement across the estimated six lakh retail outlets in the country.
    • Ineffective Laws and Procedures: After receiving a rap on its knuckles from the Delhi High Court in 2019, the ministry created a rule requiring pharmaceutical companies to provide a self-declaration that their proposed brand name was not similar to any of the existing brand names in the market.
      • In most other countries, it is the duty of the regulator to vet the brand name, to ensure that it is not confusing or misleading from a public health perspective.
      • When trademark applications are filed, the Registrar of Trade Marks conducts a perfunctory “confusion analysis” that does not include a public health perspective.
    • Enforcement issues: In practical, the DCGI lacks the legal power to make rules that are binding and have the force of law. Only the Ministry of Health has that power under the Constitution.

    Need to break the procedural loop:

    • With every newly appointed joint secretary, files go through with repeated consultations with stakeholders in the pharmaceutical industry.
    • In each of these consultations, the trade associations of pharmacies and pharmaceutical companies use every trick to stall the concrete action.
    • Hence, regulatory governance needs to be consistent and avoid the higher political interference.
  • The role of district agro-met offces in supporting farmers 

    Why in the News?

    Last week, PTI reported that the India Meteorological Department (IMD) plans to reintroduce District Agro-Meteorology Units (DAMUs) as part of the Gramin Krishi Mausam Sewa (GKMS) scheme.

    Background: In 2018, the IMD set up 199 District Agro-Meteorology Units (DAMUs) in collaboration with the Indian Council of Agricultural Research to provide sub-district level agricultural advisories based on weather data. However, these DAMUs were shut down in March following an order from the IMD.

    What are Agro-Meteorological Advisories?

    • Agro-meteorological advisories provide farmers with critical information about weather conditions that affect agricultural practices. This includes forecasts related to rainfall, temperature, and wind speeds, which are crucial for planning sowing, harvesting, irrigation, and the use of fertilizers and pesticides.
    • These advisories are particularly important for small and marginal farmers, who make up about 80% of India’s farming community and primarily rely on rain-fed agriculture.
    • The advisories are disseminated in local languages, ensuring accessibility. They are shared through various channels, including text messages, WhatsApp groups, newspapers, and direct communication from DAMU staff.
    • By providing timely weather information, these advisories help farmers plan their agricultural activities effectively and ultimately contribute to enhancing crop yields and farmers’ incomes.

    Why Did the Government shut down the District Agro-Met Units (DAMUs)?

    • Agro-meteorological data was automated: The closure of DAMUs was influenced by claims from the NITI Aayog that agro-meteorological data was automated, which undermined the role of DAMU staff in preparing and disseminating agricultural advisories. This misrepresentation led to recommendations for privatization and monetization of the services previously offered for free.
    • Financial and Administrative Issues: The decision to shut down DAMUs was attributed to ongoing financial challenges, including delayed salary disbursements for DAMU staff, and administrative issues that hampered the program’s effectiveness.
    • Shift Towards Centralization: The government suggested transitioning to a centralized model for weather data collection and advisory services, which could potentially reduce the localized support that DAMUs provided to farmers.

    Way forward: 

    • Re-establish Local Support: Reinstate District Agro-Meteorology Units (DAMUs) to provide localized, targeted weather advisories and support, ensuring that small and marginal farmers receive timely, relevant information.
    • Improve Data Integration and Communication: Enhance the integration of automated weather data with localized advisory services, and streamline communication channels to reach farmers through various platforms effectively.
  • On the challenges to road safety in India  

    Why in the News?

    The India Status Report on Road Safety 2024 highlights India’s slow progress in reducing road fatalities and stresses the need for tailored approaches to improve road safety.

    What does the ‘India Status Report on Road Safety 2024’ state?

    • The report highlights India’s limited success in reducing road accident fatalities, despite the country’s efforts in other sectors. The report stresses that most Indian States are not on track to meet the UN Decade of Action for Road Safety goal to halve traffic deaths by 2030.
      • It emphasizes the connection between road construction, mobility, and safety,
    • Road traffic injuries remain a significant public health challenge. In 2021, these injuries were the 13th leading cause of death and the 12th leading cause of health loss (measured in Disability-Adjusted Life Years or DALYs).
    • The report reveals significant disparities in road traffic death rates across Indian States, with vulnerable groups such as motorcyclists and truck-involved crashes being particularly high.

    Note: The report used FIR data from six States and audits of State compliance with Supreme Court directives on road safety.

    Which States have the lowest rates of road accident deaths?

    • West Bengal and Bihar have the lowest rates of road accident deaths, with 5.9 per 1,00,000 people in 2021

    What is a crash surveillance system?

    • A crash surveillance system is a national-level database that records detailed data on road accidents, including specific variables like the mode of transport of victims.
    • India lacks such a system, with current data being aggregated from police station records, limiting the depth of analysis and effectiveness of interventions.
    • Implementing this system would enhance road safety management and allow for better evaluation of policy interventions.

    Way forward: 

    • Establish a National Crash Surveillance System: Implement a comprehensive database for road accidents to enable detailed analysis and improve targeted interventions for road safety. This would enhance data accuracy and guide more effective policies.
    • Prioritize State-Specific Road Safety Strategies: Tailor interventions to the unique challenges of each State, focusing on vulnerable road users like motorcyclists and improving safety infrastructure, such as helmet usage, traffic calming, and trauma care facilities.
  • India generates highest plastic pollution in world 

    Why in the News?

    A study published last week in the journal Nature revealed that India is responsible for contributing one-fifth of the world’s plastic pollution.

    What did the Paris Agreement (2015) and the UN Environmental Assembly (2022) say on plastic pollution? 

    • Paris Agreement (2015): Primarily on climate change, the Paris Agreement doesn’t directly address plastic pollution. However, the agreement encourages countries to reduce emissions and promote sustainable practices. 
    • UN Environmental Assembly (2022): The UNEA agreed in 2022 to develop the first legally binding international treaty on plastic pollution by the end of 2024. Objectives: The treaty aims to curb plastic pollution through measures like phasing out single-use plastics.

    Challenges in Implementation

    • Lack of Cohesive Policies: There is often a disconnect between global agreements and national policies, leading to fragmented approaches that fail to address the scale of plastic pollution effectively.
    • Infrastructure Deficiencies: Many countries, particularly in the Global South, lack the necessary infrastructure for waste management, leading to high levels of unmanaged plastic waste. Inadequate public services and resources exacerbate this situation.
    • Economic Dependencies: Countries reliant on plastic production for economic growth may resist regulations aimed at reducing plastic use, complicating the implementation of international agreements.

    Why do we need more research on this issue? 

    • Understanding Environmental Impact: Comprehensive studies are needed to elucidate the sources and impacts of plastic pollution, including its relationship with climate change and public health.
    • Informing Policy Development: Research can guide policymakers in creating effective strategies for reducing plastic waste and improving waste management systems, ensuring that solutions are tailored to specific regional challenges.
    • Health Implications: As microplastics increasingly infiltrate ecosystems and human bodies, understanding their health impacts is critical for public health initiatives and regulatory frameworks.

    Way forward: 

    • Strengthen Global Plastic Reduction Targets: Implement binding international commitments to reduce plastic production, particularly single-use plastics, and promote sustainable alternatives, aligning with climate goals.
    • Improve Waste Management Infrastructure: Prioritize investment in waste management systems, especially in the Global South, to ensure proper collection, recycling, and disposal, reducing unmanaged plastic pollution.
  • Exercise Yudh Abhyas, 2024

    Why in the News?

    • The 2024 edition of the India-U.S. Army bilateral exercise Yudh Abhyas has begun at the Mahajan field firing ranges in Rajasthan.
      • Concurrently, Phase-II of the Indian Air Force’s (IAF) largest multilateral exercise, Tarang Shakti, is underway in Jodhpur, with eight countries participating, including India.

    About Exercise Yudh Abhyas

    Details
    Type  Bilateral joint military exercise between India and the United States
    Inception Year 2004
    Frequency Annual
    Primary Objective Enhance military cooperation and joint operational capabilities, particularly focusing on counter-terrorism and counter-insurgency operations.
    Location Held alternately in India and the USA
    Earlier Edition (2023) Held at Fort Wainwright, Alaska, focusing on cold-weather operations and high-altitude warfare
    Focus
    • Counter-terrorism operations in semi-desert and desert terrains
    • Urban warfare (FIBUA – Fighting in Built-Up Areas)
    Participating Forces in 2024
    • Indian Army: 600 troops from the RAJPUT Regiment
    • US Army: 1-24 Battalion of the 11th Airborne Division, Alaska
    Tactical Drills in 2024
    • Joint planning sessions
    • Joint responses to terrorist actions
    • Combined field training exercises
    Significance 
    • Reflects the growing military partnership between India and the US
    • Enhances interoperability and strengthens strategic defence ties

     

    PYQ:

    [2024] Which of the following statements about the Exercise Mitra Shakti-2023 is/ are correct?

    1. This was a joint military exercise between India and Bangladesh.
    2. It commenced in Aundh (Pune).
    3. Joint response during counter-terrorism operations was a goal of this operation.
    4. Indian Air Force was a part of this exercise.

    Select the answer using the code given below:

    (a) 1, 2 and 3

    (b) 1 and 4

    (c) 1 and 4

    (d) 2, 3 and 4

  • India’s first ‘Teal Carbon’ study

    Why in the News?

    India’s first study on teal carbon was conducted at Keoladeo National Park (KNP) in Rajasthan’s Bharatpur district.

    Highlights of the Study

    • The study at KNP aimed to develop holistic solutions for climate change by understanding the potential of teal carbon in mitigating its effects.
    • It highlighted that degraded wetlands could release harmful methane and carbon dioxide into the atmosphere, further exacerbating climate challenges.
    • It suggested the use of biochar, a lightweight black residue comprising carbon and ashes.
      • This biochar can help reduce methane discharges and improve wetland conservation.
    • Specialized instruments like the LI-COR device would be required for real-time measurements of greenhouse gases to further the research.

    What is Teal Carbon?

    Details
    Definition Carbon stored in non-tidal freshwater wetlands, including in vegetation, microbial biomass, and organic matter.
    Key Sources Peatlands, freshwater swamps, natural freshwater marshes.
    Global Storage  Approximately 500.21 petagrams of carbon (PgC).
    Threats Pollution, land-use changes, water extraction, and degradation of wetlands.
    Comparison Distinct from black and brown carbon, which are produced by incomplete combustion of organic matter.
    Benefits of Teal Carbon Ecosystems
    • Greenhouse gas reduction
    • Increase in groundwater levels
    • Flood mitigation
    • Heat island reduction
    • Urban adaptation
    Conservation Importance Effective conservation of wetlands can enhance teal carbon pools, contributing to climate regulation and environmental sustainability.

     

    PYQ:

    [2021] What is blue carbon?​

    (a) Carbon captured by oceans and coastal ecosystems.​

    (b) Carbon sequestered in forest biomass and agricultural soils.​

    (c) Carbon contained in petroleum and natural gas.​

    (d) Carbon present in atmosphere.​

  • PresVu: India’s First Eye Drop for Presbyopia

    Why in the News?

    Mumbai-based Entod Pharmaceuticals has announced that the Drug Controller General of India (DCGI) has approved its new eye drop, PresVu, aimed at reducing the dependency on reading glasses for individuals with presbyopia.

    What is Presbyopia?

    • Presbyopia is an age-related condition where the eyes gradually lose the ability to focus on nearby objects, typically developing after the age of 40.
    • Spectacles are one of the most commonly recommended solutions for managing presbyopia.

    How does PresVu work? 

    • The active ingredient in PresVu is pilocarpine, a compound that contracts the iris muscles, controlling the size of the pupil and helping individuals focus better on nearby objects.
    • PresVu also uses an advanced dynamic buffer technology to adapt to the pH levels of tears, ensuring consistent efficacy and safety for extended use over the years.
    • However, PresVu’s effects are temporary, typically lasting between four to six hours, and it is prescription-only.
    • PresVu should not be used by individuals with iris inflammation.
    • Regular use may lead to side effects such as:
      • Itching and redness
      • Eyebrow pain
      • Muscle spasms in the eyes

    Is this a Novel Therapy?

    • Although Entod claims PresVu is novel, the main compound, pilocarpine, has been available in India for decades and is commonly used as a first-line therapy for cataracts.
    • Pilocarpine’s ability to temporarily improve the depth of focus has been explored in other countries, including the United States, where the FDA approved a pilocarpine eye drop for presbyopia in 2021.
    • In India, the government regulates the ceiling price of pilocarpine in 4% and 2% concentrations, whereas PresVu contains 1.25%.

    PYQ:

    [2018] Appropriate local community-level healthcare intervention is a prerequisite to achieve ‘Health for All’ in India. Explain.

  • [pib] Recommendations during 54th meeting of GST Council

    Why in the News?

    The 54th GST Council meeting, chaired by Union Finance Minister was held recently.

    Recommendations from the 54th GST Council Meeting:

    GST Rate Changes for Goods

    Namkeens and Savory Products GST on extruded/expanded savoury products reduced from 18% to 12%; 5% GST on un-fried or uncooked snack pellets continues.
    Cancer Drugs GST on cancer drugs like Trastuzumab Deruxtecan, Osimertinib, and Durvalumab reduced from 12% to 5%.
    Metal Scrap Reverse Charge Mechanism (RCM) introduced for metal scrap supplies by unregistered persons; 2% TDS applied on B2B metal scrap supplies by registered persons.
    RMPU Air Conditioning Machines RMPU air conditioning machines for railways classified under HSN 8415, attracting a 28% GST rate.
    Car and Motorcycle Seats GST on car seats (HSN 9401) increased from 18% to 28%, aligning with the rate for motorcycle seats.

    GST Rate Changes for Services

    Life and Health Insurance Group of Ministers (GoM) to be constituted to study GST issues related to life and health insurance. Report expected by October 2024.
    Transport by Helicopters GST on passenger transport by helicopters (seat share basis) set at 5%; 18% GST continues for charter helicopter services.
    Flying Training Courses DGCA-approved flying training courses conducted by Flying Training Organizations (FTOs) will be exempt from GST.
    Preferential Location Charges Preferential Location Charges (PLC) in construction services to be taxed as composite supply.
    Affiliation Services Affiliation services provided by boards like CBSE taxable; services provided to government schools by state/central boards will be exempt.
    Import of Services by Branches Import of services by foreign airlines’ branch offices from related persons will be exempt from GST if made without consideration.

    Compliance Measures

    B2C E-invoicing Pilot project for B2C e-invoicing introduced to improve business efficiency and environmental sustainability.
    Invoice Management System (IMS) Invoice Management System to allow taxpayers to accept, reject, or keep invoices pending for claiming Input Tax Credit (ITC).
    Waiver of Interest/Penalty Special procedure to waive interest/penalty for tax demands from FY 2017-18, 2018-19, and 2019-20 under section 73 of CGST Act.
    Clarifications via Circulars Clarifications on place of supply for advertising services, ITC on demo vehicles, and place of supply for data hosting services to be issued.

     

    PYQ:

    [2018] Consider the following items:

    1. Cereal grains hulled

    2. Chicken eggs cooked

    3. Fish processed and canned

    4. Newspapers containing advertising material

    Which of the above items is/are exempted under GST (Goods and Services Tax)?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1, 2 and 4 only

    (d) 1, 2, 3 and 4

  • [9th September 2024] The Hindu Op-ed: With or without Chinese companies is the question

    [9th September 2024] The Hindu Op-ed: With or without Chinese companies is the question

    PYQ Relevance:

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

    Q “Success of the ‘Make in India’ program depends on the success of the ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments. (UPSC IAS/2015)

    Q  “While we flaunt India’s demographic dividend, we ignore the dropping rates of employability.” What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain (UPSC IAS/2014)

    Prelims: Priority Sector Lending by banks in India constitutes the lending to: (UPSC IAS/2013)
    (a) Agriculture
    (b) Micro and small enterprises
    (c) Weaker sections
    (d) All of the above

    Mentor comment: Chinese smartphone companies dominate the Indian market, holding over 50% share by 2023. Now, the Indian government aims to balance local manufacturing and Chinese investments. However, there are challenges which include the lack of a robust supply chain and ancillary industries in India. To solve this issue at this point in the geopolitical situation, complete self-reliance on smartphones is difficult in the short term period for India. On the same note, today’s editorial discusses the complex relationship between India and Chinese companies, particularly in the context of the “Make in India” initiative.

    _

    Let’s learn!

    Why in the News?

    The Indian government is considering allowing certain Chinese investments in high-tech electronics on a case-by-case basis, especially in areas like compressors, display panels, and semiconductors.

    • According to the International Data Corporation’s Worldwide Quarterly Mobile Phone Tracker, four of the top five best-selling smartphone brands were Chinese at the end of 2023.

    The dilemma between ‘Make in India’ and China’s presence:

    About ‘Make in India’ Initiative:
    ◉ The Make in India initiative was launched in 2014 to promote India as a global manufacturing destination. 
    ◉ The initiative aims to increase India’s manufacturing sector’s contribution to GDP to 25% by 2025.
    • The ‘Make in India’ aimed to represent India’s strength in manufacturing and National pride, but the Chinese smartphone companies have emerged as significant beneficiaries of this initiative, becoming dominant players over the past decade.
    • The widespread use of Android smartphones in India, with a market share of about 70%, has favored Chinese brands, increasing their consumer base.
    • Chinese companies have navigated fluctuations in India-China relations, maintaining their market presence until the Galwan Valley incident in 2020.

    Initiatives Taken for Indianization in the Economy:

    • By Private Players: As a contract manufacturer, Tata Electronics has emerged as a key player in the Indian smartphone manufacturing landscape by replacing Wistron (Taiwanese suppliers for Apple).
      • The company also aims to develop local capabilities and reduce dependency on imports by creating high-precision machinery for smartphone components.
    • Adaptation of Chinese Companies: Chinese smartphone companies are adapting by complying with Indian government regulations, introducing Indian distributors, and streamlining their operations.
      • They are teaming up with domestic manufacturers to benefit from the Production Linked Incentive (PLI) scheme and increasingly seeking equity partners to strengthen their presence in India.
    Production Linked Incentive Scheme: 

    ◉ It is a form of performance-linked incentive to give companies incentives on incremental sales from products manufactured in domestic units. It is aimed at boosting the manufacturing sector and to reduce imports.
    In 2021, the Government announced the PLI scheme for 13 key sectors: Auto components, Automobile, Aviation, Chemicals, Electronic systems, Food processing, Medical devices, Metals & mining, Pharmaceuticals, Renewable energy, Telecom, Textiles & apparel, and white goods.
    ◉ In Budget 2024-25, these incentives were extended to more sectors, such as the small and medium-sized enterprise (SME) sector to participate in the global market.
    A portion of incentives could be allocated for skill training and capacity building.

    Challenges for complete Indianisation:

    • Need for Infrastructure Development: Manufacturing all smartphone components in India requires a robust supplier network, technological knowledge-sharing clusters, and improvements in power supply and workforce conditions.
    • Current Limitations: India currently lacks the necessary infrastructure at scale to support complete local manufacturing of smartphone components.
    • Technology Sharing Reluctance: Chinese companies are hesitant to share technology without clear equity arrangements, complicating the Indianisation efforts.

    Way Forward:

    • Address Skill Gaps: Collaborate with educational institutions to ensure that the workforce is equipped with relevant skills in engineering, electronics, and automation.
    • Streamline Regulatory Processes: Provide clear regulatory guidelines to create a business-friendly environment that encourages investment.
    • Enhance Local Manufacturing Capabilities: Foster innovation and support startups in the electronics sector to create a diverse manufacturing ecosystem and reduce dependency on imports and enhance value addition in smartphone manufacturing.
    • Attract Foreign Investments: Continue offering incentives, subsidies, and tax breaks to attract foreign smartphone manufacturers to set up operations in India.

    https://www.thehindu.com/opinion/op-ed/with-or-without-chinese-companies-is-the-question/article68619220.ece