India and Malaysia have agreed to settle their trade in Indian rupees instead of the US dollar.
What is the move?
The Reserve Bank of India (RBI) had allowed the settlement of international trade in the Indian rupee in July 2022.
Malaysia was one of the eighteen countries that were permitted to open Special Rupee Vostro Accounts (SRVAs) to settle payments in Indian rupees.
Volume of bilateral trade
India-Malaysia bilateral trade reached $19.4 billion during 2021-22.
Malaysia is the third-largest trading partner of India in the ASEAN region, after Singapore and Indonesia, with $30.1 billion and $26.1 billion in bilateral trade with India.
Facts for prelims: Nostro and Vostro Accounts
Nostro and vostro accounts are two types of accounts used in international trade and banking to facilitate foreign currency transactions.
A Nostro account is a foreign currency account held by a domestic bank in a foreign bank. It is used to facilitate international transactions, such as foreign currency payments, and to hold foreign currency deposits. The word “nostro” means “ours” in Italian, and the term reflects the fact that the foreign bank holds the domestic bank’s funds on its behalf.
A Vostro account, on the other hand, is a domestic currency account held by a foreign bank in a domestic bank. It is used by the foreign bank to hold domestic currency deposits, and to facilitate domestic currency transactions such as payments to local vendors. The word “vostro” means “yours” in Italian, and the term reflects the fact that the domestic bank holds the foreign bank’s funds on its behalf.
What are Special Rupee Vostro Accounts (SRVAs)?
SRVAs are a mechanism introduced by the RBI to allow banks from certain countries to open accounts in Indian rupees with Indian banks.
These accounts can be used to settle trade transactions between the two countries in Indian rupees, instead of using other currencies.
The aim of this initiative is to facilitate the growth of global trade and to support the interests of the global trading community in Indian rupees.
The Union Bank of India has become the first bank in India to operationalize this option by opening a SRVA through its corresponding bank in Malaysia – India International Bank of Malaysia.
Banks from 18 countries so far are allowed by the RBI to open Special Rupee Vostro Accounts (SRVAs) to settle payments in Indian rupees.
Significance of the move
The move aims to provide better pricing for goods and services traded between the two countries and overcome currency-related obstacles that have affected bilateral trade.
This shift away from the US dollar signals India’s de-dollarization efforts.
The decision also comes against the backdrop of ongoing official efforts to safeguard Indian trade from the impact of the Ukraine crisis.
Broader implications
The sanction on the Russian economy and the ongoing war in Ukraine have made it increasingly difficult to make payments to Russia in US dollars.
Many countries are exploring alternatives to the US dollar as the dominant reserve currency for international trade.
Try this MCQ
Q. Which of the following is a key difference between Nostro and Vostro accounts?
A) A Nostro account is held by a bank in a foreign country, while a Vostro account is held by a bank in the home country.
B) A Vostro account is used for incoming transactions, while a Nostro account is used for outgoing transactions.
C) A Nostro account is denominated in the local currency of the home country, while a Vostro account is denominated in a foreign currency.
D) A Vostro account is used for trade financing, while a Nostro account is used for personal banking transactions.
[wpdiscuz-feedback id=”pxonls7qde” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]
Central idea: Despite over 45,000 Indian villages lacking 4G connectivity and ongoing efforts to build out 5G networks, the Indian government has set its sights on 6G.
Why in news?
On March 22, PM Modi unveiled the Bharat 6G Vision Document, aimed at gearing up policymakers and the industry for the next generation of telecommunications.
What is 6G?
6G is the next generation of wireless telecommunications technology, which is expected to offer significantly faster data speeds, higher bandwidth, and lower latency than 5G.
It is still in the development stage, and its commercial rollout is not expected for several years.
However, many countries, including India, are already working on developing 6G technology and setting standards for its implementation.
Differences between 6G and 5G
While 6G will offer faster loading times, improved video quality, and faster downloads, like every new generation of technology, it is unclear how much better it will be.
With latency already at the speed of light on existing networks, the benefits of 6G will depend on how different groups plan to use the spectrum.
Satellite constellations will join telecom towers and base stations, integrating networks and extending them to rural areas.
Motivations for pursuing 6G
Encourage local industry: The Indian government hopes to encourage local manufacturing of telecom gear and support Indian companies and engineers in international discussions around standardization.
Avoid delay unlike 5G: India aims to avoid the delay in previous generations of telecommunications technology, which started rolling out in India years after countries like South Korea and the United States.
Increased connectivity: Additionally, the lower frequency in 4G networks may not be able to keep up with the demand for traffic with increasing data usage, making 6G a necessity.
Government Plans for 6G
The Indian government plans to financially support “research pathways” to advance connectivity goals and establish an “apex body”.
India’s 6G goals include-
Guaranteeing every citizen a minimum bandwidth of 100Mbps
Ensuring every gram panchayat has half TB (terabyte) per second of connectivity, and
Providing over 50 million internet hotspots with thirteen per square kilometre.
Roadmap for 6G in India
The government plans to implement 6G in two phases.
Phase 1 will support explorative ideas, risky pathways, and proof-of-concept tests.
Phase 2 will support ideas and concepts that show promise for global acceptance, leading to commercialisation.
It would appoint an apex council to oversee the project and deal with standardisation, identification of spectrum, finances for research and development, and more
The council will finance research and development of 6G technologies by Indian start-ups, companies, research bodies, and universities.
Key focus of the council will be on new technologies such as Terahertz communication, radio interfaces, tactile internet, and artificial intelligence.
Bharat 6G Mission aligns with the national vision of Atmanirbhar Bharat and aims to make India a leading supplier of advanced telecom technologies that are affordable and contribute to the global good.
Approaches to 6G in Other Countries
South Korea plans significant investments in 6G technology development, with a focus on laying the ground for key original technologies and domestic production of core equipment and components.
Countries are also starting to work together, with Japan and Germany planning a workshop to work on everything from “fundamental technologies to demonstrations.”
Europe’s equivalent of the Indian 6G Vision Document emphasizes leadership in strategic areas and establishing secure and trusted access to key technologies.
Central idea: The International Seabed Authority has announced that it will start accepting applications from companies for deep sea mining from July.
Why in news?
This decision was made in the absence of a mining code that has not been put in place yet.
What is Deep Sea Mining?
Deep-sea mining is the process of extracting minerals from the deep ocean floor.
The minerals that are extracted can include valuable metals such as copper, gold, nickel, and manganese, as well as rare earth metals that are used in high-tech devices such as smartphones, computers, and electric vehicles.
The minerals are found in the form of polymetallic nodules that are located on the ocean floor at depths of around 4 to 6 kilometers.
Deep-sea mining involves the use of specially designed equipment that can withstand the extreme pressure and temperature conditions found at these depths.
About International Seabed Authority
The International Seabed Authority is a Jamaica-based organization established under the United Nations Convention on the Law of the Sea.
The authority holds jurisdiction over the ocean floors outside of the Exclusive Economic Zones of its 167 member states.
Reasons behind undersea mining
The mining is aimed at extracting cobalt, copper, nickel, and manganese from the ocean’s floor.
The undersea mining will extract key battery materials from polymetallic nodules found at depths of 4 kilometers to 6 kilometers.
These nodules are potato-sized rocks containing cobalt, copper, nickel, and manganese.
Key concern: Mining code missing
Despite 10 years of discussion, there is no mining code in place.
The governing council of ISA is uncertain about the process it should adopt for reviewing applications for mining contracts.
Issues with deep-sea mining
Deep-sea mining is a controversial issue that has raised concerns among non-governmental organizations, experts, and some countries.
One major concern is the potential damage to the seabed and the essential function of deep-sea ecosystems in regulating the climate.
Mining activities can also have wider impacts on fish populations, marine mammals, and other ocean life.
Scientists at IIT Mandi have created an innovative carbon-based catalyst that can enhance the efficiency of water electrolysis to generate green hydrogen.
Water electrolysis and its Challenges
Water electrolysis is the process of splitting water molecules into hydrogen and oxygen using electricity inside an electrolyser.
However, this process consumes a lot of electrical energy.
A well-known solution is to use a catalyst to induce the water molecules to split at a much lower energy.
The better catalysts are often based on the metals iridium and ruthenium, which are expensive, in great demand in other sectors, and not consistently stable as the reaction progresses.
IIT’s breakthrough: Development of Laser Carbon
Researchers have developed a porous carbon material containing nitrogen that functions both as a catalyst and as the anode in electrolyser units.
This material, called “laser carbon,” was produced by exposing a sheet of a polymer called polyimide to a laser beam, which carbonised the exposed bits, leaving the remainder rich in nitrogen.
How does laser carbon work?
The nitrogen atoms in laser carbon draw electron clouds towards themselves, rendering the nearby carbon atoms to bond with atoms or molecules containing electron pairs.
This makes the location of these atoms active sites for the oxygen evolution reaction (OER).
OER is a bottleneck in this ideal reaction process because it proceeds slowly, with many intermediate steps, lowering the total reaction efficiency.
Laser carbon offers to fix this problem by reducing the OER overpotential, which means the reaction kicks off sooner and proceeds with more vigor.
Advantages of laser carbon
Laser carbon has several advantages over other carbon-based catalysts.
It is “highly power efficient,” cheaper to produce, has a simpler synthesis technique, and “can be batch-manufactured with a laser.”
The manufacturing process is also environment-friendly, as no waste is generated, and there are no wet chemicals that would require disposal.
Additionally, it does not require a substrate as it is self-supported in the form of a film, acting as both electrode and electrocatalyst.
Challenges
The catalytic activity of laser carbon may not be as high as that of some metals but is comparable.
Further improvements in the fabrication process and use of other polymers may address this challenge.
Central idea: The Kolkata-based Indian Association for the Cultivation of Science (IACS) have established the potential of quinoline derivatives to treat drug-resistant leishmaniasis, which is also called kala-azar or black fever.
What is Kala Azar?
Kala-Azar is a vector-borne (sandfly) neglected tropical disease caused by the protozoan parasites of the genus leishmania.
It afflicts the world’s poorest populations in over 90 countries throughout Asia, Africa, the Middle East, and Central and South America.
Current annual estimates of kala-azar are about 1,00,000.
More than 95% of cases reported to the WHO are from India and other tropical countries, most importantly co-infection with HIV, which leads to an immunocompromised state.
How does Quinoline work over this?
The quinoline derivative is a potent inhibitor of an enzyme called topoisomerase 1 (LdTop1).
This enzyme is essential for the maintenance of DNA architecture in parasites and is distinct from the one found in humans.
Poisoning LdTop1 imparts significant cytotoxicity to both Leishmania parasites found in the gut of sandfly vectors (promastigotes) and those found in infected humans (amastigotes) of both the wild type and the antimony-resistant isolates.
This is done without inducing lethality to human and mice host cells.
Significance of quinoline treatment
Overcoming drug resistance in clinical leishmaniasis is a severe challenge in rural India.
The current treatment regimens against kala-azar use formulations that are toxic and induce high levels of drug-resistance.
What is the breakthrough?
The novel inhibitor targeting the leishmania parasites was identified by screening them against recombinant Leishmania topoisomerase 1 enzyme.
In all, 21 derivatives were prepared and evaluated for their antileishmanial activity, and one of them was found to be effective.
Central idea: Bandipur completed 50 years as a Project Tiger Reserve on April 1, 2023.
Bandipur Tiger Reserve
The reserve is located in the Indian state of Karnataka and is spread over an area of 912.04 sq. km.
It is recognized as one of the prime tiger habitats in the world and is an important component of the country’s first biosphere reserve – Nilgiri Biosphere Reserve.
Tiger Population in Bandipur
When Project Tiger was launched in 1973, there were 12 tigers in Bandipur, according to Ramesh Kumar, director, of Bandipur Tiger Reserve.
Today, the number of tigers utilizing the park is 173 while the number of tigers within the reserve has been pegged at 126 as per the Status of Tigers Co-predators and Prey in India, 2018.
History of conservation efforts in Bandipur
Much before the Wildlife Conservation Act, 1972, was passed, the erstwhile rulers of Mysuru had realized the importance of conserving flora and fauna.
The Mysore Game and Fish Preservation Act was passed in 1901, and several forest areas were preserved as Game Reserves, and Tiger Blocks were identified with shooting restrictions imposed.
Initially, an area spread over 35 sq miles was declared as a Game Sanctuary in Chamarajanagar State Forest of Mysore district in 1931 and was protected for 10 years.
Bandipur’s inclusion in Project Tiger
When Project Tiger was launched in 1973, Bandipur was among the first nine reserves to be brought under the flagship program, and it included most areas that were already protected under the Venugopal Wildlife Park.
The park was upgraded to a national park and renamed Bandipur, and the adjacent reserve forests were included under it to extend its area to 874.20 sq km.
Significance of the area
The landscape spanning Bandipur, Nagarahole, Mudumalai, and Wayanad complex is home not only to the highest number of tigers in the country – about 724 – but also to the largest Asian Elephant population.
The Bandipur Tiger Reserve is an important component of the country’s first biosphere reserve – Nilgiri Biosphere Reserve.
India’s semiconductor policy should shift focus from attracting global giants like Intel to leveraging existing facilities and developing domestic solutions for electronics markets.
Background
The US Department of Commerce and India’s Ministry of Commerce and Industry recently signed a memorandum of understanding to ensure subsidies do not hinder India’s semiconductor ambitions.
However, the likelihood of Intel investing in a greenfield 300mm wafer fabrication plant in India remains low due to its focus on fabs in the US.
Facts for prelims: Semiconductors
Semiconductors are materials that have properties that are in between those of conductors (such as copper) and insulators (such as rubber).
They have the ability to conduct electricity under certain conditions, but not under others.
The conductivity of semiconductors can be manipulated through the introduction of impurities or doping with other materials. This process alters the electronic properties of the material and creates regions of excess or deficit of electrons, called p-type and n-type regions respectively. The interface between these regions is known as a p-n junction, which is a fundamental building block of many semiconductor devices.
Applications
Semiconductors are a fundamental component of modern technology and have significant importance in many areas of our daily lives.
Electronics industry: Semiconductors are a crucial component in the electronics industry, which is one of the fastest-growing industries in the world. Semiconductors are used in a wide range of electronic devices, from smartphones and computers to medical equipment and home appliances.
Miniaturization: The ability to miniaturize electronic components using semiconductors has led to the development of smaller, more powerful, and more energy-efficient devices. This has enabled the development of portable devices, such as smartphones and laptops, which have become an essential part of our daily lives.
Energy efficiency: Semiconductors have enabled the development of energy-efficient devices, which are crucial in the context of climate change and global warming. Energy-efficient lighting, for example, uses semiconductor materials such as LEDs, which consume far less energy than traditional incandescent bulbs.
Renewable energy: Semiconductors are also essential in the development of renewable energy technologies such as solar cells and wind turbines. Solar cells, for example, use semiconductor materials to convert sunlight into electrical energy.
Medical applications: Semiconductors are also used in a wide range of medical applications, from imaging devices to implantable medical devices. In particular, semiconductor-based biosensors are becoming increasingly important for disease diagnosis and monitoring.
All you need to know about India’s semiconductor policy
India has launched a new semiconductor policy called the National Policy on Electronics (NPE) in 2019, with the aim of creating a globally competitive electronics manufacturing industry in the country.
The policy aims to attract investment in semiconductor fabrication units, also known as fabs, and encourage the development of a domestic ecosystem for semiconductor design and manufacturing.
The key objectives of the policy
Attracting investment: The policy aims to attract global semiconductor companies to set up manufacturing units in India by providing them with incentives such as financial support, tax incentives, and land at subsidized rates.
Promoting domestic manufacturing: The policy aims to promote domestic manufacturing of semiconductor components by providing incentives such as production-linked incentives, subsidies, and preferential market access to products made in India.
Developing human resources: The policy aims to develop a skilled workforce in the semiconductor sector by providing training and education programs in collaboration with leading academic institutions.
Encouraging research and development: The policy aims to encourage research and development in the semiconductor sector by providing financial support to research institutions and startups.
The Semi-Conductor Laboratory (SCL) was established in Mohali in 1983 to create an electronics ecosystem.
Market liberalization in 1991 and a fire in 1989 derailed these plans, but the facility still has the potential to support India’s semiconductor ecosystem.
Shifting Focus:
The Ministry of Electronics and Information Technology (MeITy) has been trying to attract Intel to India, but their efforts may not be fruitful.
A better approach would be to leverage SCL’s existing assets and focus on the More than Moore segment of semiconductors (>180 nm node) for automotive electronics, PV-Inverters, 5G infrastructure, and railway electronics.
Incentives and Subsidies:
Subsidies should target fabless design houses with proven designs willing to fabricate at the SCL in the 180nm+ node.
Incentives should also be provided to global design companies with products aimed at India-specific markets.
The existing DLI/PLI schemes do not provide such incentives, and a course correction is needed.
Leveraging Existing Infrastructure:
Efforts to open up subsidies to global small and medium-sized enterprises in the upstream supply chain are welcome.
However, coupling these efforts with the defined incentives and targeted upgrades is essential for success.
Leadership and Execution: To achieve this vision in the next five years, the SCL needs a full-time director with prior “More than Moore” foundry experience, as opposed to a career scientist from the Department of Space.
Conclusion
India’s semiconductor policy should shift focus from attracting global giants like Intel to leveraging existing facilities and developing domestic solutions for electronics markets. This will require a strategic shift in focus, targeted incentives, and strong leadership. Failure to act may result in India missing out on the semiconductor fabrication bus once again.
Mains Question
Q. Semiconductors are a fundamental component of modern technology. In this light analyze India’s semiconductor policy.
Foreign Trade Policy 2023 focuses on shifting from an incentive to a tax remission-based regime, improving the ease of doing business, promoting exports through collaborations, and targeting emerging areas. It aims to achieve $2 trillion in export of goods and services by 2030, up from the previous $900 billion target.
Foreign Trade Policy 2023
Reducing Friction Points:
Automatic approvals for various permissions will streamline processes and reduce bureaucratic hurdles for businesses.
Reduced processing times for revalidation of authorizations (expected to be brought down to one day), extension of export obligation periods, advance authorizations, and EPCG issuances will expedite export activities.
Lowered application fees for MSMEs will provide financial relief and encourage more small businesses to participate in global trade.
Supporting Export Growth:
Facilitating e-commerce exports will enable Indian businesses to tap into the growing global e-commerce market, estimated to reach $6.07 trillion by 2024.
Widening the basket covered under RODTEP will ensure more exporters benefit from tax remission, increasing competitiveness.
Boosting manufacturing, particularly in labor-intensive sectors, will create more jobs and enhance the export potential.
Rationalizing thresholds for exporter recognition will make it easier for businesses to be acknowledged and incentivized for their export performance.
Merchanting trade reform will promote services exports and reduce transaction costs.
Promoting the use of the rupee in international trade can help reduce exchange rate risks and increase trade with countries facing currency restrictions.
One-time Amnesty Scheme: The amnesty scheme aims at faster resolution of trade disputes, clearing pending cases, and improving the overall trade environment.
Supplemental Measures
Boost to domestic manufacturing: Lowering import tariffs will make raw materials and intermediate goods more affordable, boosting domestic manufacturing and export competitiveness.
Competitive Indian goods and services: Ensuring a competitive exchange rate will enhance the affordability of Indian goods and services in global markets.
FTA’s: Signing broader and deeper free trade agreements can open new markets for Indian exporters and attract foreign investments.
Conclusion
The Foreign Trade Policy 2023 comes at a time of global uncertainty, but with India’s small share in global trade (around 1.8% in merchandise exports and roughly 4% in services), there is significant room for improvement. The new policy, along with additional measures, can enhance the country’s trade performance and achieve the ambitious $2 trillion export target by 2030. However, it is crucial to monitor the policy’s implementation and address potential challenges for businesses to fully reap the benefits.
India needs to proactively consider its military, diplomatic, and economic responses to a potential cross-strait conflict between China and Taiwan.
Background
PLA’s frequent military exercises near Taiwan: The People’s Liberation Army (PLA) is conducting frequent military exercises near Taiwan, increasing the risk of escalation in the Taiwan Strait.
Forceful reunification: Some analysts believe that China, under President Xi Jinping, is preparing for a forceful reunification campaign by 2027.
The impact of a cross-strait conflict between China and Taiwan on India
Disruption of trade: India’s trade through the South China Sea (SCS) accounts for nearly 55% of its total trade with the Indo-Pacific region. A conflict in the Taiwan Strait could severely disrupt this trade, affecting India’s economy. Additionally, trade with Taiwan, China (India’s second-largest trading partner), East Asia, and some Southeast Asian countries would also be severely impacted.
Strategic implications: As a member of the Quad, India would face serious strategic consequences in the event of a cross-strait conflict. New Delhi would be expected to respond in support of its partners, particularly the United States, which may lead to a significant shift in the regional balance of power and India’s international commitments.
Escalation along the Line of Actual Control (LAC): India’s involvement in a conflict over Taiwan may prompt China to escalate tensions along the LAC, leading to an increased risk of military confrontation between India and China. This would put additional pressure on India’s military and resources, as it would have to prepare for a potential two-front conflict.
Diplomatic challenges: India’s involvement in a conflict over Taiwan would strain its diplomatic relations with China and complicate its foreign policy priorities in the region. New Delhi would have to balance its commitments to its allies and partners with the need to maintain a stable relationship with Beijing.
Economic costs: The economic fallout from a cross-strait conflict could be considerable for India, with potential disruptions to supply chains, investment flows, and regional economic integration efforts. This could hinder India’s economic growth and development objectives in the short to medium term.
Security concerns: A cross-strait conflict could lead to increased military deployments, escalations, and proxy conflicts in the region, raising security concerns for India. This would necessitate greater vigilance and preparedness from the Indian military and intelligence agencies to address potential threats.
Humanitarian consequences: In the event of a large-scale conflict, India may face the challenge of responding to humanitarian crises resulting from displaced populations, refugees, and the disruption of essential services in the region. This could put additional strain on India’s resources and infrastructure.
Military response: India could assist partner countries, including the US, by sharing experience and intelligence on dealing with the PLA. It could also offer its mainland for refuelling aircraft and access to its Andaman and Nicobar Island bases.
Diplomatic response: India could participate in a United Nations General Assembly resolution condemning Chinese aggression.
Economic response: India is unlikely to impose targeted sanctions on China due to the negative trade balance between the two countries.
India’s proactive measures
Information sharing: India can establish a secure communication channel with Taiwan to exchange vital intelligence and real-time information on Chinese military movements and strategies. This would help Taiwan to better anticipate potential threats and improve its defensive capabilities.
Training Taiwanese armed forces personnel: India can secretly collaborate with Taiwan to train its armed forces personnel in specific operations and tactics. This may include joint exercises and training programs in areas like counterinsurgency, mountain warfare, and special operations, which could enhance Taiwan’s military preparedness.
Consultative mechanisms: India can set up consultative mechanisms with Taipei, Tokyo, and Washington to discuss and coordinate their strategic approaches towards deterring a Chinese attack on Taiwan. This collaboration can lead to the development of joint strategies, contingency plans, and a coordinated response in case of a conflict.
Strengthening defense ties: India can explore options to strengthen defense ties with Taiwan by providing it with military equipment, technology, and logistical support. This could help Taiwan build a more robust defense system and deter potential Chinese aggression.
Economic diversification for Taiwan: India can play a significant role in helping Taiwan diversify its trade and economic dependencies away from China. By increasing bilateral trade, investment, and technological cooperation, India can provide Taiwan with the scale it needs to reduce its overdependence on Beijing.
Soft power diplomacy: India can leverage its soft power and cultural ties to build stronger relationships with Taiwan, promoting people-to-people exchanges, educational collaborations, and cultural events. This would not only strengthen the bond between the two countries but also raise awareness and support for Taiwan’s cause on the international stage.
Encouraging international support: India can work with its allies and partners in the Quad, as well as other regional and global forums, to build a broader coalition supporting Taiwan’s sovereignty and security. By advocating for Taiwan’s inclusion in international organizations and platforms, India can help raise its global profile and encourage other countries to support Taiwan in the event of a conflict.
Conclusion
While India would face challenges in the event of a cross-strait conflict, it is crucial for New Delhi to plan for the inevitable and proactively consider its military, diplomatic, and economic responses to such a crisis.
Mains Question
Q. There are signs of potential cross-strait conflict between China and Taiwan. In this backdrop discuss its impact on India
The Right to Health Bill was recently approved by the Rajasthan legislative assembly. Rajasthan would become the first state in India to guarantee its citizens’ right to healthcare once the bill is announced.
Being a torch-bearing step in providing better healthcare, this edition of the burning issue will elaborate on this new law and its criticalities. The topic is relevant for the GS-2 mains paper.
The Right to Health
The World Health Organization (WHO) says that everyone has the right to health, which means they should be able to get the health care they need, when and where they need them, without having to worry about money. No one should get sick and die because they can’t get the health care they need or because they don’t have enough money.
RTH is a fundamental human right that guarantees everyone the right to enjoy the highest attainable standard of physical and mental health.
It is recognized as a crucial element of the right to an adequate standard of living and is enshrined in international human rights law.
Other fundamental human rights, such as having access to clean water and sanitation, nutritious food, adequate housing, education, and safe working conditions, clearly determine good health.
Scope of RTH
RTH covers various health-related issues, including-
Access to healthcare services, clean water and sanitation, adequate nutrition, healthy living and working conditions, health education, and disease prevention.
Accessible, affordable, and quality healthcare services,
Eliminating barriers to healthcare access
Informed consent to medical treatment and accessing information about their health.
Right to Health relating to India
Provisions of the Constitution:
The Constitution of India doesn’t explicitly ensure a basic right to well-being. However, the Constitution makes numerous mentions of public health and the state’s role in providing healthcare to citizens.
Under Directive Principles of State Policy:
DPSPs: To a limited extent IV of the Indian Constitution gives a premise to one side of wellbeing.
The State is obligated by Article 39 to ensure the health of workers.
Article 47 imposes a responsibility on the state to raise people’s nutrition levels, the standard of living, and public health. Article 42 requires the state to provide maternity relief and just and humane working conditions.
Under Fundamental rights:
Article 21 The Supreme Court of India in Bandhua Mukti Morcha v. Union of India & Ors. found that the Constitution of India did not explicitly recognize the right to health care. interpreted Article 21’s guarantee of the right to life, which covers the right to health.
In Territory of Punjab and Ors. In the case of Mohinder Singh Chawla, the Supreme Court reiterated that the right to health is essential to the right to life and that the government was obligated by the Constitution to provide health services.
Article 243G: The Role of Panchayats and Municipalities
The Constitution does not just oblige the State to upgrade general well-being, yet additionally blesses the Panchayats and Districts to fortify general well-being under Article 243G.
15th Commission on Finances:
The 15th Finance Commission’s High-Level Group on the Health Sector recommended declaring the right to health a fundamental right in September 2019.
Additionally, it proposed putting health on the Concurrent List rather than the State List.
Genesis of Right to Health
In 1996, the Supreme Court held that the right to life (Article 21) included the right to health within its fold, and also pointed out the obligation of state governments to provide health services.
Under the Constitution, public health and sanitation, including hospitals and dispensaries, come under the State List.
In 2018, the National Commission on Human Rights (NHRC) drafted the Charter of Patient Rights to be implemented by state governments.
Rajasthan runs certain schemes to ensure health coverage, including the Mukhyamantri Chiranjeevi Swasthya Bima Yojana, under which health coverage is provided in over 1,550 private and public hospitals across the state. Under the yojana, insurance coverage is also provided for certain types of treatment.
Features of the Rajasthan Right to Health Bill
Free treatment: RTH gives every resident of the state the right to avail of free Out Patient Department (OPD) services and In-Patient Department (IPD) services at all public health facilities and select private facilities.
Wider scope of healthcare: Free healthcare services will include consultation, drugs, diagnostics, emergency transport, procedures, and emergency care. However, there are conditions specified in the rules that will be formulated.
Free emergency treatment: Residents are entitled to emergency treatment and care without prepayment of fees or charges.
No delay in treatment: Hospitals cannot delay treatment on grounds of police clearance in medico-legal cases.
State reimbursement of charges: After emergency care and stabilization, if patients do not pay requisite charges, healthcare providers can receive proper reimbursement from the state government.
Significance of the Bill
Frees from Unnecessary obligations:
The Bill empowers patients to choose the source of obtaining medicines or tests at all healthcare establishments, which means that hospitals cannot insist on in-house medicines or tests.
Eliminates discriminatory healthcare structures:
Article 15’s right to equality upholds non-discrimination based on religion, race, caste, gender, place of birth, and other factors. However, healthcare has become a privilege for a select few due to decades of inadequate investment in public health.
To end discriminatory structures that will otherwise continue to perpetuate inequality in all spheres of life, including education, opportunity, wealth, and social mobility, the constitutional right to health is essential.
Enhance the health ecosystem as a whole:
By passing a law that makes healthcare a right for everyone, the government would make it easier for people to demand better care and hold the government and healthcare workers accountable if they don’t get it.
Unique regulation and different instruments to fortify medical services:
Special legislation, capable institutions, increased budgets, medical training and research, wellness and prevention, and service outreach will all be made possible by the Constitution’s right to health; thereby enhancing the health ecosystem as a whole.
For instance, before the constitutional amendment that made it a fundamental right in and of itself, the right to education had also been held to be implicit to the right to life. 15 years ago, the primary school enrollment rate was thought to be impossible; today, it is over 95%.
Reduce expenses incurred out of pocket:
The Economic Survey for 2022–23 reveals that patients continue to directly pay for almost half of all healthcare costs in India. The Right to Health aims to increase public spending while decreasing individual healthcare costs.
Challenges with the Right to Health ‘Pill’
Insufficient infrastructure: India’s healthcare system lacks the fundamental infrastructure necessary to meet the needs of a large population. India, for instance, has only 8.5 beds for every 10,000 people. Also, the doctor-to-patient and nurse-to-patient ratios are significantly lower than WHO standards, which are 1/1000 for doctors and 3/1000 for nurses, respectively (1 per 1456 patients).
The existing burden of schemes: Doctors are protesting against the RTH because they question the need for it when there are already schemes like Chiranjeevi that cover most of the population.
Specialization concerns: They are also objecting to certain clauses, such as defining “emergency” and being compelled to treat patients outside their specialty as part of an emergency.
Saving money on health care: India has the lowest public health spending as a percentage of GDP (1.6 percent). Among the BRICS nations, India has the lowest public health spending. Brazil has 3.96 percent, Russia has 3.16 percent, South Africa has 4.46 percent, and China has 3.02 percent.
No detailing of the process: To the charge that there is no detailing of the process, health rights activists have pointed out that it would be a function of the Rules, not the law itself.
Concerns pertaining to compensation: Healthcare providers have a problem with reimbursement delays. Additionally, there are complaints that the predetermined package rates for various medical procedures and treatments are not sufficiently profitable or do not cover the actual cost.
A high rate of disease: Both communicable and non-communicable diseases like malaria, diabetes, and tuberculosis are prevalent in India. Healthcare infrastructure and resources require significant investment to combat these diseases.
Way Forward
A fundamental shift in approach is required: We must fundamentally alter our healthcare approach. We must view it as a high-yield investment that can significantly reduce future out-of-pocket costs and also increase output rather than spending.
Coordination among states and the centre: Without hindering cooperative federalism, which is an essential component of the Indian Constitution, there must be coordination between the center and the states on a crucial subject like health.
More authority and assistance for states: The COVID-19 response by the Center and states reveals that health must remain on the State List, despite the importance of seamless coordination between the centers and states. Therefore, it is necessary to devolve authority and resources to states to improve their respective public health systems.
Boost public spending: By 2025, India must increase its investment in healthcare resources and infrastructure to at least 2.5% of GDP.
Improve transparency and accountability: Additionally, greater efforts could be made to improve transparency and accountability in the healthcare system, with a focus on educating patients about their rights.
Conclusion:
Given the contentious nature of the Bill, all stakeholders need to come to the table and engage in constructive dialogue to resolve the issues at hand. It should involve liaisons between the government, doctors, patient advocacy groups, and other relevant stakeholders to discuss the concerns raised by all parties and identify potential solutions.
This could be followed by a revision of the Bill, incorporating feedback and suggestions from all stakeholders, and a renewed effort to build consensus and support for the legislation.
“The enjoyment of the highest attainable standard of health is one of the fundamental rights of every human being without distinction of race, religion, political belief, economic condition, or social status,” as stated in the WHO constitution.
