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  • Live Webinar On How to clear UPSC-CSE 2023 in the very 1st Attempt by studying Only 5 hrs per day! | Free Live Webinar for Working Professionals with UPSC 2017 Ranker Megha Gupta | Direct Joining Link

    Live Webinar On How to clear UPSC-CSE 2023 in the very 1st Attempt by studying Only 5 hrs per day! | Free Live Webinar for Working Professionals with UPSC 2017 Ranker Megha Gupta | Direct Joining Link

    Civilsdaily Team is inviting you to a scheduled Zoom meeting.

    How to clear UPSC-CSE 2023 in the very 1st Attempt by studying Only 5 hrs per day! | Megha Gupta, UPSC 2017 Ranker
    Date & Time: May 16, 2022 @07:00 PM (Login 06:45 PM Onwards) India

    Join Zoom Meeting

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    Webinar Details

    Grasp the opportunity to get exceptional tips on ‘what is the best strategy for UPSC-CSE for working professionals’, and ‘how to prepare in holistic manner’. This entire webinar is free. All aspirants are wholeheartedly welcome to attend.

    Date: 16th May 2022 (Monday)

    Time: 7 to 8 PM

    REGISTER FOR THE AWESOME WEBINAR OF MEGHA GUPTA | FREE LIVE WEBINAR

    Strategies & Approaches, in This Free Live Webinar by Megha Ma’am!

    1. The UPSC preparation process is divided into four stages. What should you focus on during each phase? How to manage time & control stress during every preparation phase. How to utilize holidays! will be discussed effectively.

    2. Working examinees’ largest challenge is time management, which is critical for studying and taking care of one’s health while working a 9-hour shift. So, how to break down the syllabus into small chunks, and develop an effective & workable study strategy for UPSC preparation will also be discussed.

    3. Our step-by-step 5-hour learning plan. How to complete syllabus, how to cover mock test series in such a short time! Other toppers’ time-management skills are also discussed.

    4. Avoid errors that cost you a chance. How do you get your preparation off to a good start? What is one of the good sources for current affairs? is going to be discussed here.

    5. The advantages of being a UPSC aspirant while working. What distinguishes you from the other competitors?

    6. Studying judiciously. How can you save time by using the Civilsdaily App/website to acquire aggregated information?

    7. Rest other untold many more essential tips that a working professional must know from our previous working topper.

    About Megha Gupta Ma’am

    Megha Gupta is a core mentor with CivilsDaily for a couple of years. She is a Graduate from NIT, Bhopal. She cleared UPSC-CSE 2017, with AIR 674. She is highly experienced in clearing UPSC-CSE Exam in the very 1st attempt as working as a professional.

    REGISTER FOR THE AWESOME WEBINAR OF MEGHA GUPTA | FREE LIVE WEBINAR

    All the best.

  • In abeyance of Section 124A, a provisional relief

    Context

    In a brief order delivered in S.G. Vombatkere vs Union of India, a three-judge Bench of the Supreme Court of India effectively suspended the operation of Section 124A of the Indian Penal Code.

    What was the basis for the reconsideration?

    • This direction was issued after the Union government filed an affidavit informing the Court that it had decided to re-examine the law.
    • The Bench believed that the offer to reconsider the provision, if nothing else, showed that the Government was in broad agreement with the Court’s prima facie opinion on the matter, that the clause as it stands “is not in tune with the current social milieu, and was intended for a time when this country was under the colonial regime”.

     Section 125A and issues with it

    • Section 124A defines sedition as any action — “whether by words, signs, or visible representation” — which “brings or attempts to bring into hatred or contempt or excites or attempts to excite disaffection towards the Government established by law in India”.
    • The word “disaffection”, the provision explains, “includes disloyalty and all feelings of enmity”.
    • The adopted Constitution did not permit a restriction on free speech on the grounds of sedition. 
    • In the 1950s, two different High Courts struck down Section 124A as offensive to freedom.
    • But, in 1962, in Kedar Nath Singh vs State of Bihar, a five-judge Bench of the Supreme Court reversed these verdicts.
    • The Court paid no heed to the debates that informed the Constituent Assembly.
    • Instead, it found that Section 124A was defensible as a valid restriction on free speech on grounds of public order.
    • However, while upholding the clause, the Court limited its application to “acts involving intention or tendency to create disorder, or disturbance of law and order, or incitement to violence”.
    • Vague terms: The decision failed to recognise that terms such as “disaffection towards the government”, which are fundamentally vague.
    • Marginalised sections affected: Since then, in its application by law enforcement, the limitations imposed in Kedar Nath Singh have rarely been observed.
    •  As is often the case with abuses of this kind, it is the most marginalised sections of society that have faced the brunt of the harm.
    • Reading of fundamental rights changed: Since 1962, when the judgment was handed out, the Supreme Court’s reading of fundamental rights has undergone a transformative change.
    • Time to reconsider Kedar Nath: This altered landscape meant that when fresh challenges were mounted against Section 124A, the time to reconsider Kedar Nath Singh had clearly arrived. 
    • In the long run, the decision in Kedar Nath Singh will require a clear disavowal.
    • But in nullifying Section 124A, albeit for the present, the Court has provided provisional relief — allowing those accused of the offence to both seek bail in terms of the order, and to have their trials frozen.

    Conclusion

    To protect our democracy, we must ensure that the constitutional guarantees to personal liberty and freedom do not go in vain. For that, each of our penal laws must be animated by a concern for equality, justice, and fairness.

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  • Brace for higher interest rates

    Context

    Inflation has now remained above the RBI’s upper tolerance limit of 6 per cent for four months in a row.

    Broad based inflation

    • The second-order impact of higher fuel prices is also visible as inflation in transport and communication surged to nearly 11 per cent, from 8 per cent in the previous month.
    • The latest data also indicates that inflation is becoming broad-based. 
    • With demand rebounding, the pass-through of higher input costs is also gaining momentum.
    • Considering that demand for goods recovered faster than services, goods producers passed on input costs to consumers.
    • But as services recover, there will be greater pass-through of prices to consumers in the coming months.
    • While there may be a slight moderation, inflation is expected to remain above the RBI’s threshold of 6 per cent in the coming months.
    • The Ukraine conflict continues to impact markets for foodgrains and vegetable oils.
    • Rising fertiliser prices are likely to push up farmers’ production costs, leading to high food prices.
    • While the government has extended price support through higher subsidies, if this will be enough to cool prices needs to be seen.

    Inflation targeting by the RBI

    • With sticky crude oil prices and continuing supply-side disruptions amplified by the Covid-induced lockdowns in China, the RBI has rightly reverted its focus on inflation targeting.
    • This is needed as central banks around the world are pursuing tight monetary policies to counter inflation.
    • The US Fed followed its 25 basis points hike by another 50 basis points rise in May.
    • These will be followed by hikes of similar magnitude in the coming months.
    • In its April policy, the RBI announced the withdrawal of excess liquidity but did not raise the policy rate.
    • Rate hikes by RBI: The RBI is now likely to respond with aggressive rate hikes to prevent the price spiral from getting entrenched.
    • The continued strength of the dollar index and sharp rupee depreciation in the last few days could impose further pressure on prices through higher imported inflation.
    • Withdrawal of liquidity support: In addition to calibrated rate hikes, the RBI needs to fast-track the withdrawal of the ultra-accommodative liquidity support provided during the pandemic.

    Implications

    • Discretionary spending: Rising inflation will cut back discretionary spending and adversely impact consumption that had only just started picking up.
    • Recession concerns: There are concerns about a recession in advanced economies as rising prices have started manifesting in a decline in purchasing power and a fall in consumer sentiments.
    • The demand destruction could trigger a moderation in prices.
    • Base metals prices have eased from the peak seen in the last few months.

    Conclusion

    Monetary policy support needs to be accompanied by fiscal support measures. The policy response will have to be tailored to the evolving geopolitical situation and the paths of commodity and food prices while balancing the imperatives of fiscal consolidation.

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  • Inflation in India

    Context

    Recently, the RBI raised the repo rate by 40 basis points (bps) and the cash reserve ratio (CRR) by 50 bps with a view to tame inflation.

    How effective would be the rate hike in taming the inflation?

    • High inflation is always an implicit tax on the poor and those who keep their savings in banks.
    • Will the increases in the repo rate and CRR control inflation, especially food inflation?
    • The RBI has been behind the curve by at least by 4-to 5 months, and its optimism in controlling inflation in the earlier meetings of the Monetary Policy Committee was somewhat misplaced.
    • The reason for this is that food prices globally are scaling new peaks as per the FAO’s food price index.
    • The disruptions caused by the pandemic and now the Russia-Ukraine war are contributing to this escalation in food prices.
    • India cannot remain insulated from this phenomenon.

    Opportunities and challenges for India

    • Record wheat export: For the first time in the history of Indian agriculture, cereal exports have already crossed a record high of 31 million metric tonnes (MMT) at $13 billion (FY22), and the same cereal wonder may be repeated this fiscal (FY23).
    • Among cereals, wheat exports have witnessed an unprecedented growth of more than 273 per cent, jumping nearly fourfold from $0.56 billion (or 2 MMT) in FY21 to $2.1 billion (or 7.8 MMT) in FY22.
    • Rice exports have crossed 20 MMT in FY22 in a global market of 50 MMT.
    • Some of the concerns on the wheat front are genuine, and we need to realise that climate change is already knocking on our doors.
    • With every one degree Celsius rise in temperatures, wheat yields are likely to suffer by about 5 MMT, as per earlier IPCC reports.
    • This calls for massive investments in agri-R&D to find heat-resistant varieties of wheat and also create models for “climate-smart” agriculture. We are way behind the curve on this.

    Need for rationalising food subsidy

    • India distribute free food to 800 million Indians, with a food subsidy bill that is likely to cross Rs 2.8 lakh crore this fiscal out of the Centre’s net tax revenue of about Rs 20 lakh crore in FY23.
    • Reducing coverage: What needs to be done targeting only those below the poverty line for free or subsidised food and charging a reasonable price, say 90 per cent of MSP, from those who are above the poverty line.
    • Giving an option to beneficiaries to receive cash in their Jan Dhan accounts (equivalent to MSP plus 20 per cent) in lieu of grains can be considered.
    • This is permitted under NFSA and by doing so, he can save on the burgeoning food subsidy bill.

    Conclusion

    Indian farmers need access to global markets to augment their incomes, and the government must facilitate Indian farmers to develop more efficient export value chains by minimising marketing costs and investing in efficient logistics for exports.

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  • India’s U-turn on Wheat Exports

    The Union commerce ministry was preparing to send delegations abroad to boost the country’s wheat exports, when the government abruptly banned its exports on 14 May.

    Why did India ban the export of wheat?

    • Record retail inflation has punctured India’s export hopes.
    • While wheat prices are up nearly 20%, prices of essential food items such as flour have risen nearly 15% last year.
    • Prices of other food items that use wheat, like bread and biscuits, have surged, too.
    • Heatwaves in the latter part of March, especially in northwest India, impacted the production of foodgrains.

    Is India staring at a food shortage?

    • India’s grain stocks are well above the buffer levels and the decision to regulate wheat exports was taken largely to check prices and curb hoarding.
    • The public distribution system in the country would be run smoothly.
    • However, the government has replaced wheat with rice in the Pradhan Mantri Garib Kalyan Yojana scheme for 2022-23.
    • The effort clearly is a response to the reduced availability of wheat.

    What has been the global reaction to the ban?

    • Agriculture ministers from G7 condemned India’s decision to withhold wheat exports amid a global grain shortage.
    • India is the world’s second-largest wheat producer and was expected to fill the gap created because of the Ukraine war.
    • However, wheat exports will be allowed in cases where an irrevocable letter of credit has already been issued.

    How will the ban affect India’s neighbors?

    • The export control will help India guide wheat trade in a certain direction.
    • Even with the ban, there is a window open for neighbouring countries.
    • The export will be allowed to other countries “based on the request of their governments”.
    • This window is crucial for Sri Lanka because the country is facing an economic crisis.
    • Also, Bangladesh and Nepal have traditionally relied on Indian wheat.

    What is the impact on farmers and traders?

    • The ban has deprived Indian wheat traders the opportunity to gain from the global grain shortage.
    • It may have an unfavorable impact on wheat farmers too.
    • Market prices of wheat had soared past the minimum support price (MSP) in recent months.

    Issues with the ban

    • This ban has impacted the credibility of India as a reliable supplier of anything in global markets.
    • It conveys that we don’t have any credible export policy as it can turn its back at the drop of a hat.
    • More interestingly, it also reflects a deep-rooted consumer bias in India’s trade policies.
    • It is this consumer bias that indirectly becomes anti-farmer. This ban deprives farmers from profit-making.
    • It only shows the hollowness of agri-trade policies and dreams of doubling agri-exports.
    • The export ban also reflects poorly on India’s image in playing its shared global responsibility amid the Russia-Ukraine war.

    Way forward

    • It may be recognised that inflation is a global phenomenon today caused by excessive liquidity injected by central banks and loose fiscal policies around the world.
    • India’s wheat export ban will not help tame inflation at home.
    • The Government could have announced a bonus of Rs 200-250/quintal on top of MSP to augment its wheat procurement.
    • The govt could have calibrated exports by putting some minimum export price (MEP).

    Back2Basics:

    How the Central and State governments procure Wheat?

     

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  • Back in news: Chief of Defence Staff (CDS)

    The Union government is reassessing the concept of the post of Chief of Defence Staff (CDS) and the Department of Military Affairs (DMA) leading to a delay in the appointment to the post.

    The post of CDS has also been lying vacant since the demise of Late. Gen. Bipin Rawat.

    Office of the Chief of Defence Staff (CDS)

    • The CDS is a high military office that oversees and coordinates the working of the three Services, and offers seamless tri-service views and single-point advice to the Executive.
    • On long-term it provides for defence planning and management, including manpower, equipment and strategy, and above all, “joint manship” in operations.
    • In most democracies, the CDS is seen as being above inter-Service rivalries and the immediate operational preoccupations of the individual military chiefs.
    • The role of the CDS becomes critical in times of conflict.

    Duties and Functions of the CDS

    The Ministry of Defence has outlined various functions and duties for the post of CDS:

    • To head the Department of Military Affairs in Ministry of Defence and function as its Secretary.
    • To act as the Principal Military Advisor to Raksha Mantri on all Tri-Service matters.
    • To function as the Permanent Chairman of the Chiefs of Staff Committee
    • To administer the Tri-Service organizations/agencies/commands.
    • To be a member of Defence Acquisition Council chaired by Raksha Mantri.
    • To function as the Military Advisor to the Nuclear Command Authority.
    • To bring about jointness in operation, logistics, transport, training, support services, communications, repairs and maintenance, etc of the three Services.
    • To implement Five-Year Defence Capital Acquisition Plan and Two-Year roll-on Annual Acquisition Plans, as a follow up of Integrated Capability Development Plan.
    • To bring about reforms in the functioning of three Services with the aim to augment combat capabilities of the Armed Forces by reducing wasteful expenditure.

    Why need CDS?

    • Tri-services coordination: The creation of the CDS will eventually lead to the formation of tri-service theatre commands intended to create vertical integration of the three forces.
    • Single-point military advisory: The CDS will be a single-point military adviser to the government and synergise long term planning, procurements, training and logistics of the three Services.
    • Efforts saving: This is expected to save money by avoiding duplication between the Services, at a time of shrinking capital expenditure within the defence budget.
    • Military diplomacy: This is today supporting conventional diplomacy. That can’t be done by different Services.

     

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  • RNA granules to treat neurodegenerative disorders

    Researchers at IISc Bangalore have identified a protein in yeast cells that dissolves RNA-protein complexes, also known as RNA granules.

    What is mRNA?

    • Messenger RNA (mRNA) is a single-stranded RNA (Ribo Nucleic Acid) molecule that is complementary to one of the DNA strands of a gene.
    • The mRNA is an RNA version of the gene that leaves the cell nucleus and moves to the cytoplasm where proteins are made.
    • During protein synthesis, an organelle called a ribosome moves along the mRNA, reads its base sequence, and uses the genetic code to translate each three-base triplet, or codon, into its corresponding amino acid.

    What are RNA granules?

    • Inside the cytoplasm of any cell there are structures made of messenger RNA (mRNA) and proteins known as RNA granules.
    • Unlike other structures in the cell (such as mitochondria), the RNA granules are not covered and confined by a membrane.
    • This makes them highly dynamic in nature, thereby allowing them to constantly exchange components with the surrounding.
    • RNA granules are present in the cytoplasm at low numbers under normal conditions but increase in number and size under stressful conditions including diseases.

    Why are they unique?

    • A defining feature which does not change from one organism to another (conserved) of the RNA granule protein components is the presence of stretches containing repeats of certain amino acids.
    • Such stretches are referred to as low complexity regions.
    • Repeats of arginine (R), glycine (G) and glycine (G) — known as RGG — are an example of low complexity sequence.

    Functions of RNA granules

    • Messenger RNAs are converted to proteins (building blocks of the cell) by the process of translation.
    • RNA granules determine messenger RNA (mRNA) fate by deciding when and how much protein would be produced from mRNA.
    • Protein synthesis is a multi-step and energy-expensive process.
    • Therefore, a common strategy used by cells when it encounters unfavorable conditions is to shut down protein production and conserve energy to deal with a stressful situation.
    • RNA granules help in the process of shutting down protein production.
    • Some RNA granule types (such as Processing bodies or P-bodies) not only regulate protein production but also accomplish degradation and elimination of the mRNAs, which in turn helps in reducing protein production.

    What is the recent study?

    • Researchers concluded that low complexity sequences which normally promote granule formation, in this case promote the disintegration of RNA granules in yeast cells.
    • They observed that the identified protein Sbp1 is specific for dissolving P-bodies and not stress granules which are related RNA granule type also present in the cytoplasm.

    Significance of the study

    • This study has highlighted the potential of amino acid repeats (RGG) as a therapeutic intervention.
    • The study may help analyze the effect of repeat sequences in genetically engineered mice that accumulate insoluble pathological aggregates in brain cells.
    • This could possibly help in treating neurodegenerative disorders such as Alzheimer’s disease.

     

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  • Devasahayam Pillai: first Indian layman to be declared a Saint by Vatican

    Pope Francis canonised Devasahayam Pillai as a Catholic Saint during an event in St Peter’s Basilica.

    Who was Devasahayam Pillai?

    • Devasahayam was born on April 23, 1712 in Nattalam village in Kanyakumari district, and went on to serve in the court of Marthanda Varma of Travancore.
    • After meeting a Dutch naval commander at the court, Devasahayam was baptised in 1745, and assumed the name ‘Lazarus’, meaning ‘God is my help’.

    His works

    • While preaching, he particularly insisted on the equality of all people, despite caste differences.
    • His conversion did not go well with the heads of his native religion.
    • False charges of treason and espionage were brought against him and he was divested of his post in the royal administration.
    • On January 14, 1752, Devasahayam was shot dead in the Aralvaimozhy forest.
    • Since then, he is widely considered a martyr, and his mortal remains were interred inside what is now Saint Francis Xavier’s Cathedral in Kottar, Nagercoil.

    Other canonized saints in India

    • Of the eleven, Gonsalo Garcia, born in India to Portuguese parents in Mumbai in 1557, is considered to have been the first India-born saint.
    • In 2008, Kerala-born Sister Alphonsa was declared as the first woman Catholic saint from India.
    • Mother Teresa had a fast track to sainthood when she was canonized in 2016.

     

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  • Imp: Score 100% in Polity Questions & Must Read Acts in News

    Talk to our mentors for a Roadmap to 2023 Attempt. Click Here

    Indian polity plays a very crucial role in the Prelims exam. If you want to ensure the cutoff marks then you can not expect a single mistake in Indian polity questions. To ensure that you follow these few pointers. We have also included some examples to ensure that you understand the points

    Read the Each keyword very carefully: Polity is a game of words, even a single change will change the answer. 

    Consider the following statements:

    1. According to the Constitution of India a person who is eligible to vote
      can be made a minister in a State for six months even if he/she is not a member of the Legislature of that State
    2. According to the Representation of People Act, 1951, a person
      convicted of a criminal offence and sentenced to imprisonment for five years is permanently disqualified from contesting an election
      even after his release from prison
      Which of the statements given above is are correct?
      (a) 1 only
      (b) 2 only
      (c) Both 1 and 2
      (d) Neither 1 nor 2

      In above question, At first S1 seems correct but when we look carefully it says any eligible voter but the criteria is above 25 years. Similarly S2 says Permanently, but it is temporary

    Read all the options very carefully: Even if you know that the first option is the correct answer, look for other options as well. There are chances that according to the question it is not the most appropriate one.

    The Preamble to the Constitution of India, is
    (a) part of the Constitution but has no legal effect
    (b) not a part of the Constitution and has no legal effect either
    (c) a part of the Constitution and has the same legal effect as any other part
    (d) a part of the Constitution but has no legal effect independently of other parts.

    In the above question A looks correct but when we read all options then D looks more appropriate.

    Go through the PYQs properly: Understanding PYQs will not help in Polity but in the entire paper. For example take a question from 2017

    Which one of the following is not a feature to Indian federalism?

    (a) There is an independent judiciary in India. 

    (b) Powers have been clearly divided between the Centre and the States.

     (c) The federating units have been given unequal representation in the Rajya Sabha. 

    (d) It is the result of an agreement among the federating units

    Above question indicates that Independent Judiciary is a feature, Now look at 2021 question

    Which one of the following in Indian polity is an essential
    feature that indicates that it is federal in character?
    (a) The independence of judiciary is safeguarded.
    (b) The Union Legislature has elected representatives from
    constituent units.
    (c) The Union Cabinet can have elected representatives
    from regional parties.
    (d) The Fundamental Rights are enforceable by Courts of
    Law

    Understand NCERTs carefully: Nowadays UPSC has a tendency to ask questions from NCERTs, especially from 11th ncert. 

    Avoid using elimination rules: UPSC expects you to remember Indian Polity therefore the scope is very narrow to use Tikdam rules.

    Revision: Most of the questions in Polity are from very spefic chapers or source. They are 11th ncerts, Historical Background, Preamble, Fundamental Rights, DPSPs, Parliament, State Legislature, President, Governor, Supreme Court and High Courts. Make sure that you have the best command on the above topics.

    Important Acts in News

    1. The Jammu and Kashmir Reorganization (Amendment) Bill, 2021)
    • The Act provides for the bifurcation of the state of Jammu and Kashmir (J&K) into the Union Territory of J&K and Union Territory of Ladakh. 
    • The Act provides that Article 239A of the Constitution, which is applicable to the union territory of Puducherry, shall also apply to the union territory of J&K.  Article 239A provides for the constitution of a union territory of Puducherry with: (i) a legislature, which may be elected, or partly nominated and partly elected, or (ii) a Council of Ministers. 
    • In addition to Article 239A, any other provision of the Constitution which refers to elected members of a legislative assembly of a state and is also applicable to the union territory of Puducherry, will apply to the union territory of J&K.
    •  The Act specifies that the members of the Indian Administrative Service, the Indian Police Service and the Indian Forest Service serving in the state of J&K would continue to serve in the two union territories, based on allocation decided by the central government.
    1. The Inland Vessels Bill, 2021
    • The Bill seeks to introduce a uniform regulatory framework for inland vessel navigation across the country.
    • The central government will prescribe the: (i) classification, (ii) standards of design, construction, and crew accommodation, and (iii) type and periodicity of surveys, for these vessels.  Construction or modification of such vessels will require prior approval of a designated authority, as prescribed by the central government.
    • To operate in inland waters, all such vessels must have a certificate of survey, and a certificate of registration. The certificate of survey will be granted by state governments, in a form as prescribed by the central government.
    • The central government will prescribe the minimum number of people that vessels must have, for various roles.
    • Vessels will discharge or dispose of sewage, as per the standards specified by the central government.  The central government will notify the list of pollutants which will be prohibited for discharge or disposal.  State governments will grant vessels a certificate of prevention of pollution.
    • The Bill provides for a development fund.
    • The Bill empowers state governments to delegate certain functions related to non-mechanically propelled inland vessels to their local governments. 
    1. The Mines and Minerals (Development and Regulation) Amendment Bill, 2021
    •  The Act empowers the central government to reserve any mine (other than coal, lignite, and atomic minerals) to be leased through an auction for a particular end-use.The Bill provides that no mine will be reserved for particular end-use.
    • The Bill empowers the central government to specify a time period for completion of the auction process in consultation with the state government.  If the state government is unable to complete the auction process within this period, the auctions may be conducted by the central government.
    • The Act provides that the period of mining leases granted to government companies will be prescribed by the central government.
    1. The Insolvency and Bankruptcy Code (Amendment) Bill, 2021
    • The Code provides a time-bound process for resolving the insolvency of corporate debtors (within 330 days) called the corporate insolvency resolution process (CIRP).
    • The Bill introduces an alternate insolvency resolution process for micro, small, and medium enterprises (MSMEs), called the pre-packaged insolvency resolution process (PIRP).  Unlike CIRP, PIRP may be initiated only by debtors.
    • Application for initiating PIRP may be filed in the event of a default of at least one lakh rupees.
    • During PIRP, the debtor will be provided with a moratorium under which certain actions against the debtor will be prohibited.  These include filing or continuation of suits, execution of court orders, or recovery of property.

    CIRP: Under CIRP, a committee of creditors is constituted to decide on the insolvency resolution.  The committee may consider a resolution plan which typically provides for the payoff of debt by merger, acquisition, or restructuring of the company.  If a resolution plan is not approved by the committee of creditors within the specified time, the company is liquidated.  During CIRP, the affairs of the company are managed by the resolution professional (RP), who is appointed to conduct CIRP.

    1. The Constitution (One Hundred and Twenty-Seventh Amendment) Bill, 2021
    • The Bill amends the Constitution to allow states and union territories to prepare their own list of socially and educationally backward classes. 

    List of socially and educationally backward classes:

              The National Commission for Backward Classes (NCBC) was established under the National Commission for Backward Classes Act, 1993.

                 The 2021 Bill amends this to provide that the President may notify the list of socially and educationally backward classes only for purposes of the central government.  This central list will be prepared and maintained by the central government.  Further, the Bill enables states and union territories to prepare their own list of socially and educationally backward classes. 

    1. The Election Laws (Amendment) Bill, 2021
    • The bill provides that the electoral registration officer may require a person to furnish their Aadhaar number for establishing their identity. 
    • Persons will not be denied inclusion in the electoral roll or have their names deleted from the roll, if they are unable to furnish Aadhaar number due to sufficient cause as prescribed. 
    • The Bill provides four qualifying dates in a calendar year, which will be January 1, April 1, July 1, and October 1. Earlier it was only 1 i.e. January 1.
    1. The Central Vigilance Commission (Amendment) Bill, 2021
    •  It replaces the Central Vigilance Commission (Amendment) Ordinance, 2021.  The Bill seeks to amend the Central Vigilance Commission Act, 2003.  The 2003 Act provides for the constitution of a Central Vigilance Commission to conduct inquiries into offences alleged to have been committed under the Prevention of Corruption Act, 1988.  
    • Under the 2003 Act, the Director of Enforcement is appointed by the central government, on the recommendation of a Committee.This Committee is chaired by the Central Vigilance Commissioner, and includes the Secretaries from the Ministries of Home Affairs, Personnel, and the Revenue Department. 
    • The Bill adds that the tenure of the Director may be extended by up to one year at a time, till the completion of five years from the initial appointment.  Such extensions may be granted in public interest, on the recommendation of the Committee.
    1. The Foreign Contribution (Regulation) Amendment Bill, 2020
    • Under the Act, certain persons are prohibited to accept any foreign contribution.  These include: election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others
    • The Amendment prohibits the transfer of foreign contribution to any other person.
    • The Act states that a person may accept foreign contribution if they have: (i) obtained a certificate of registration from central government, or (ii) not registered, but obtained prior permission from the government to accept foreign contribution
    • Under the Act, a person who receives foreign contribution must use it only for the purpose for which the contribution is received.Further, they must not use more than 20% of the contribution for meeting administrative expenses.
    1. The Major Port Authorities Bill, 2020
    • The Bill will apply to the major ports of Chennai, Cochin, Jawaharlal Nehru Port, Kandla, Kolkata, Mumbai, New Mangalore, Mormugao, Paradip, V.O. Chidambaranar, and Vishakhapatnam.
    • The Bill provides for the creation of a Board of Major Port Authority for each major port.  These Boards will replace the existing Port Trusts. 
    • Under the 1963 Act, the Board has to seek prior sanction of the central government to raise any loan.
    • The Bill provides that the Board may use its funds for providing social benefits(Corporate Social Responsibility)
    • The Bill provides for the constitution of an Adjudicatory Board by the central government.

  • [Sansad TV] Mudda Aapka: India’s Pharma Exports Boom

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    Context

    • India is a significant player in the global medicines industry.
    • Indian pharma exports witnessed a growth of 103% since 2013-14, from Rs. 90, 415 Crores in 2013-14 to Rs. 183,422 Crores in 2021-22.

    Feats achieved by India’s Pharma Sector

    • Surplus trade: The Pharma trade balance continues to be in India’s favour. 
    • Worldwide production: India ranks 3rd worldwide for Pharmaceutical production by volume and 14th by value. The current market size is around USD 50 billion. 
    • High competitiveness: Indian pharma companies enabled by their price competitiveness and good quality have made a global mark with 60% of the world’s vaccines and 20% of generic medicines coming from India.   
    • Major destinations: India’s top 5 pharma export destinations are the USA, UK, South Africa, Russia and Nigeria.
    • Regulatory compliance: Around 55 % of our pharma exports from India cater to highly regulated markets. For instance, the largest number of FDA approved plants outside the US is in India.

    India’s Pharma Sector: A Backgrounder

    • India enjoys an important position in the global pharmaceuticals sector.
    • The country has a large pool of scientists and engineers with the potential to steer the industry ahead to greater heights.
    • Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

    Its evolution

    Over the last few decades, the Indian pharmaceutical industry has experienced rapid expansion, which may be divided into four stages:

    1. Foreign domination: The time before 1970 is considered as the first stage of the pharma industry. At that time, the Indian market was dominated by foreign companies.
    2. Rise of domestic companies: The second stage covers 1970 to 1990 when several domestic companies began operations.
    3. LPG reforms: 1990 to 2010 is the third stage, where liberalization led Indian components to launch operations in foreign countries.
    4. Patent assisted boom: The introduction of the patent bill was one of the first advancements in the pharma industry. It allowed the Indian pharmaceutical sector to become less reliant on intellectual property laws in the US.
    5. Rise of OTC drugs: Over-the-counter drugs (bought without prescriptions) constitute the next biggest segment with 21% of the market segment.

    Market Size

    • According to the Indian Economic Survey 2021, the domestic market is expected to grow 3x in the next decade.
    • India’s domestic pharmaceutical market is at US$ 42 billion in 2021 and likely to reach US$ 65 billion by 2024 and further expand to reach ~US$ 120-130 billion by 2030.
    • India’s biotechnology industry comprises biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics.

    Who regulates Indian Pharma Sector?

    • The Drugs and Cosmetics Act, 1940 was the central legislation that regulates India’s drug and cosmetic import, manufacture, distribution and sale.
    • The Act clearly defines the spurious drugs, adulterated drugs and mis-branded drugs.
    • This also established the Central Drugs Standard Control Organization (CDSCO).
    • The Act establishes the regulatory control over the manufacture and sale of drugs.
    • State Health department has to regulate the manufacturing, sales and distribution of drugs.
    • Drug Inspectors will control the implementation at ground level.

    What made India the world’s pharmacy?

    • Low manufacturing costs: Compared to other nations, the cost of manufacturing pharmaceutical goods in India is much lower and more effective.
    • Skilled workforce: India now has a highly-skilled workforce as a result of technological advancements.
    • R&D: India’s pharma industrial sector is also robust. Most pharma labs has turned incubators.
    • Marketing benefits: With economic liberalization, India’s marketing and distribution system are likewise on the higher side. The sector is additionally strengthened by its diversified ecosystem.
    • Focus on generics: The companies broke into the worldwide market by exploring generic alternatives to costly proprietary medications.

    Various govt. policies

    • FDI relaxation: The government has allowed 100% FDI in Greenfield pharmaceutical projects and 74% FDI in brownfield pharmaceutical projects.   
    • PM Bhartiya Janaushadhi Pariyojana: The government had launched this scheme to supply low-cost pharma drugs to the economically weaker sections.
    • Bulk Drug Parks: In March 2020, the centre approved the establishment of mega ‘Bulk Drug Parks’ to provide common facilities like solvent recovery, effluent treatment, distillation, etc.
    • PLI scheme: The Cabinet also approved the ‘Production Linked Incentive Scheme’ for encouraging domestic manufacturing of drug intermediaries.
    • SPI Scheme: In March 2022, under the Strengthening of Pharmaceutical Industry (SPI) Scheme, a total financial outlay of Rs. 500 crore (US$ 665.5 million) for the period FY 21-22 to FY 25-26 were announced.

    Various challenges

    • FDA mandate in US: The US accounts for more than a quarter of Indian pharmaceutical exports. Every medicine sold in the United States is subject to FDA monitoring and site visits by Indian businesses.
    • Hostile competition: There is stiff competition from firms in countries like China, Israel and Japan. Hostile and negative lobbying by the big players who frequently accuse Indian firms of violating patent laws.
    • Over-dependence on China: The industry is highly dependent on China for pharmaceutical raw materials. Indian drug-makers import around 70% of their total Active Pharmaceutical Ingredients (API) / bulk drug requirements from China.
    • Hollowing out: India today is preferred low-cost producer and exporter of simpler off-patent formulations, the road taken is ‘hollowing out’ manufacturing in raw material: API.
    • Plagiarism: Fake versions of high value and/or high volume brands of the pharma companies are adversely affecting their business performance. It can also create a health hazard.
    • Domestic drug price control: The GoI’s Drug Price Control Order put excessive pressure on product pricing, affecting pharmaceutical companies’ profitability. Small businesses face a danger from the new MRP-based excise duty structure.
    • Low spending on R&D: India’s current public expenditure on R&D consistently remains low, at less than 1% of gross domestic product (GDP).  
    • Burden of new diseases: New diseases, curbing costs, medical infrastructure, and foreign regulations are some of the challenges being faced by the pharma industry.
    • Regulatory lacunae: Many states have an inadequate number of drug inspectors – sometimes even as high as 53% vacancies like in Karnataka. The CDSCO itself suffers from insufficient personnel with 22% vacancies.

    Major contribution of Pharma Sector: Medical Diplomacy

    • Medical diplomacy is the state’s use of essential medicines’ trade and medical personnel’s dispatch to affected countries to improve its international relations.
    • India’s vaccine diplomacy during the pandemic also reaped huge praises all across the world.
    • India has been supplying essential drugs like hydroxychloroquine (HCQ) and paracetamol to different categories of countries ranging from USA, Russia, France and UK to African and Latin American countries like Zambia, Uganda, Niger, Kenya, Colombia and Uruguay.
    • In the neighbourhood, the drugs are being supplied to Afghanistan, Bangladesh, Bhutan, Nepal, Maldives, Mauritius, Myanmar and Sri Lanka.
    • While some of these countries received the drugs on a commercial basis, others received it as grants from India.

    Way forward

    • Harnessing global value-chain: Besides the volume share, India now needs to capture value share as well.  
    • R&D boost: India will need to make exponential investments in R&D, manufacturing and digital transformations to become a global pharmaceutical innovation hub.
    • Incentivization: The government needs to urgently explore mechanisms to incentivize investment in R&D and evaluate various funding mechanisms that can help co-research.
    • Focus on API: This is also an opportunity to bring a much larger proportion of manufacturing of APIs back into India, so that the country is not dependent on imports of critical inputs.
    • Rational drug pricing: India needs to rationalize drug price control. Pharma companies must not be loaded with the cost public health.

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