India remained the second-largest arms importer, despite a 9.3% decline in imports between 2015-19 and 2020-24 a/c to the Stockholm International Peace Research Institute (SIPRI) Report.
About SIPRI
The SIPRI is an independent organization established in 1966, based in Stockholm, Sweden, conducting research on conflict, arms control, and disarmament.
SIPRI provides comprehensive data on global arms imports, exports, and military expenditures, tracking defense trends and geopolitical conflicts worldwide.
It analyzes ongoing wars, nuclear proliferation, cybersecurity threats, and environmental security, offering policy recommendations for international peace and stability.
SIPRI publishes flagship reports such as the SIPRI Yearbook, Arms Transfers Database, and Military Expenditure Database, which are widely used by governments, researchers, and policymakers.
India’s Arms Imports: Trends and Shifts
India remained the world’s second-largest arms importer, despite a 9.3% decline in imports from 2015-19 to 2020-24.
Russia accounted for 36% of India’s arms imports in 2020-24, significantly LOWER than55% in 2015-19 and 72% in 2010-14.
India has reduced dependence on Russia and increased arms deals with France, the U.S., and Israel.
India became France’s largest arms importer (28%), with 36 Rafale fighter jets and six Scorpene submarines already contracted.
India is finalizing agreements for 26 Rafale-M jets and three additional Scorpene submarines.
Global Arms Trade Highlights
Ukraine – The Largest Importer: Due to the ongoing war, Ukraine’s arms imports surged nearly 100 times in 2020-24 compared to 2015-19.
The U.S. accounted for 45% of Ukraine’s imports, followed by Germany (12%) and Poland (11%).
U.S. dominance in exports: The U.S. expanded its global arms market share to 43%, reinforcing its position as the top exporter.
Russia’s decline: Russian arms exports fell by 64%, dropping to 7.8% of global exports, behind France (9.6%).
European rearmament: European arms imports surged by 155% in response to rising security threats from Russia.
Pakistan’s growing imports: Pakistan’s arms imports grew by 61%, with China supplying 81% of its weapons, up from 74% in 2015-19.
China’s self-reliance: For the first time since 1990-94, China dropped out of the top 10 arms importers, reflecting its expanding domestic defense industry.
Italy’s rise in arms exports: Italy climbed from 10th to 6th place, with a 4.8% share of global arms exports.
PYQ:
[2020] What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region.
The Supreme Court recently ruled against the Preventive Detention of a couple in Nagaland, emphasizing that constitutional safeguards must be strictly followed, and preventive detention cannot override fundamental rights.
Court’s Key Observations: Preventive Detention as a ‘Draconian Measure’
Violation of Rights: The court ruled that depriving individuals of liberty without trial requires strict adherence to legal safeguards.
Lack of Justification: Authorities failed to prove that the detainees posed a credible future threat, rendering the detention unjustified.
Language Barrier: Detention orders were in English, a language the detainees did not understand, violating their right to be informed in an accessible manner.
What is Preventive Detention?
Preventive detention is the detention of an individual without trial to prevent them from engaging in activities that may threaten national security, public order, or foreign relations.
Unlike punitive detention, it aims to prevent future crimes rather than punish past offenses.
The 12th edition of the India-Kyrgyzstan Joint Special Forces Exercise KHANJAR-XII is set to be held in Kyrgyzstan.
About Exercise KHANJAR-XII
KHANJAR-XII is the 12th edition of the India-Kyrgyzstan Joint Special Forces Exercise, aimed at enhancing counter-terrorism and special operations capabilities.
It is a bilateral military exercise held annuallysince2011, alternately hosted by India and Kyrgyzstan.
The 2025 edition is being conducted in Kyrgyzstan.
Participants:
Indian Contingent: Parachute Regiment (Special Forces).
Kyrgyzstan Contingent: Kyrgyz Scorpion Brigade.
The primary objective is to strengthen military cooperation, improve joint operational capabilities, and enhance interoperability between the two nations’ Special Forces.
Key Features:
Counter-Terrorism Focus: Training in urban and high-altitude warfare to counter modern security threats.
Special Forces Interoperability: Strengthening coordination in joint military operations.
The United Nations Statistical Commission has introduced a new global indicator on Minimum Dietary Diversity (MDD) to monitor progress towards Sustainable Development Goal (SDG) 2: Zero Hunger.
AboutMinimum Dietary Diversity (MDD) Indicator
The MDD indicator measures whether individuals consume a variety of foods within a 24-hour period to assess dietary quality.
It tracks progress toward Sustainable Development Goal 2 (Zero Hunger) and helps identify micronutrient deficiencies in populations.
It was adopted by the United Nations Statistical Commission at its 56th session (March 4-7, 2025, New York) and developed by Switzerland, FAO, UNICEF, and WHO.
The indicator records whether an individual has consumed at least 5 out of 10 food groups in the last 24 hours.
It is measured for children (6-23 months old) and women of reproductive age (15-49 years) to ensure adequate nutrition.
10 Food Groups: It monitors intake from grains, white roots and tubers, pulses, nuts and seeds, milk products, meat, poultry and fish, eggs, dark green leafy vegetables, vitamin A-rich fruits and vegetables, and other vegetables and fruits.
Significance:
It addresses hidden hunger, malnutrition, and non-communicable diseases by promoting nutrient-rich diets.
The indicator strengthens long-term diet monitoring and ensures dietary diversity remains a global priority beyond 2030.
SDG 2: Zero Hunger – The Larger Goal
Adopted in 2015, SDG 2 aims to eliminate hunger and promote sustainable agriculture.
Recognizes interconnections between food security, rural development, and nutrition.
Hunger remains a global crisis:
757 million people faced hunger in 2023 (nearly 10% of the world population).
One in nine people worldwide sleeps hungry each night.
20 million people are at immediate risk of famine in South Sudan, Somalia, Yemen, and Nigeria.
PYQ:
[2016] Which of the following is/are the indicator/indicators used by IFPRI to compute the Global Hunger Index Report?
Undernourishment
Child stunting
Child mortality
Select the correct answer using the code given below:
The Fairwork India Ratings 2024 highlights that platform companies in India are failing to meet basic fair labor standards for gig workers, particularly regarding living wages and collective bargaining rights. For UPSC, the gig economy intersects with topics in Indian society, governance, economic growth, and labor rights. Moving beyond the challenges and strengths of the Gig economy, you should be able to discuss how gig work challenges traditional labor policies and whether current welfare schemes adequately address gig worker needs. We’ve further included structured notes on labor practices and ethics for you to build impactful answers, giving you a balanced view of worker rights and platform accountability in India’s evolving digital economy.
GS1 – Indian Society and Globalization: Effects of Globalization on Indian Society, Urbanization and their problems
Note4Students: Understand how the gig economy, as part of globalization, affects Indian society, particularly urban areas. Analyze the socio-economic challenges faced by gig workers, including job insecurity, unstable earnings, and lack of social protections.
Microthemes: Emerging Urban issues, Globalisation
GS2 – Welfare Schemes, Social Justice, and Governance: Government Policies and Interventions for Development in Various Sectors, Role of Civil Services in a Democracy
Note4Students: Link the growth of the gig economy to governance and social justice issues. Study how welfare schemes and labor rights policies are evolving to address the needs of gig workers, and analyze the role of state interventions in improving working conditions.
Microthemes: Government schemes and policies, structural reforms and actions
GS3 – Economic Development, Inclusive Growth, and Labor: Employment, Inclusive Growth, Issues relating to Poverty and Hunger.
Note4Students: Gain insights into the economic challenges faced by gig workers in terms of fair wages, job security, and working conditions. Explore how the gig economy fits into broader issues of inclusive growth, labor welfare, and sustainable economic development.
Microthemes: Industrial reforms, labour reforms, Inclusive growth
GS4 – Ethics, Integrity, and Aptitude: Corporate Governance, Work Culture,
Note4Students: Study the ethical issues related to labor practices in the gig economy, focusing on fairness, social responsibility, and the ethical obligations of platform companies. Reflect on the moral dimensions of worker rights, fair wages, and corporate responsibility.
Microthemes: Corporate Governance, Work Culture
The ‘Fairwork India Ratings 2024’ highlights that platform aggregators in India fail to ensure local living wages and resist recognizing the collective rights of workers.
Who are the Gig Workers?
Gig workers are individuals who take up short-term, flexible work assignments, typically managed via digital platforms. In the Indian context, gig workers operate in various sectors such as food delivery, ride-hailing, logistics, and personal/domestic care services.
These workers are not considered employees in the traditional sense and often lack the benefits associated with full-time employment, such as job security, healthcare, and social protection.
Examples of platforms using gig workers include Swiggy, Zomato (food delivery) Uber, Ola (transportation), etc.
Present Status of Gig Economy in India
Principle
Observation
Examples
Growth
India is witnessing rapid growth in the gig economy, with millions of workers depending on digital platforms for their livelihoods.
Uber, Zomato, and Urban Company has driven the expansion of gig work across urban areas.
Government Focus
Recent years have seen increasing political and legislative attention to gig worker welfare.
Karnataka and Jharkhand have proposed new legislation
Fair labour standards
No digital labor platform scored above 6 out of 10, and none met all criteria across the five principles of fair labor standards.
Fairwork India Ratings 2024 highlighted gaps in adhering to these standards for all major platforms.
Fair Pay
Only a few platforms, such as BigBasket and Urban Company, ensured a minimum wage. However, no platform guaranteed a living wage.
Gig workers on platforms like Zomato and Swiggy often face fluctuating earnings, which may fall short of living wages.
Fair Conditions
Some platforms (e.g., Amazon Flex, Swiggy, Zepto) provided basic safety equipment and training. However, only a few offered comprehensive accident insurance and income loss compensation.
Amazon Flex provides workers with safety gear, while Zepto offers limited accident coverage, with comprehensive coverage largely absent.
Fair Contracts
Platforms like BigBasket and Swiggy made contracts accessible and easy to understand, and took measures for data protection.
BigBasket’s worker contracts include simplified terms and privacy protections, setting a standard in contract clarity.
Fair Management
BluSmart and Zomato introduced grievance processes and anti-discrimination protocols to address worker concerns.
Zomato’s grievance mechanism allows drivers to report issues without fear of retaliation, promoting a fairer work environment.
Challenges for Gig Workers
Challenge
Description
Examples
Low Wages and Unstable Earnings
Many platforms fail to ensure a living wage for workers, covering only a minimum wage on some platforms, such as BigBasket and Urban Company. None guarantee a sustainable income after work-related costs are considered.
Workers on platforms like Uber often face income volatility, with earnings varying based on demand and without a reliable baseline for stability.
Lack of Social Security and Benefits
Most gig workers lack benefits such as healthcare, insurance, and paid leave. Although some platforms offer accident insurance, comprehensive social security remains out of reach.
Few companies provide social benefits; Swiggy, for instance, offers accident insurance but lacks broader protections like health insurance and retirement benefits.
Poor Working Conditions
Safety training and protection measures are often inadequate. While Swiggy, Zomato, and Zepto offer basic safety equipment, protections such as income loss compensation and paid sick leave are largely unavailable.
Zepto provides basic safety gear but does not cover lost income due to injury or illness, leaving workers vulnerable during downtime.
Inflexible Contracts
Contracts are often complex, lengthy, and difficult for workers to fully understand, limiting transparency and awareness of their rights.
Gig workers on Amazon Flex have reported issues understanding contract terms, leading to confusion about job requirements and compensation.
Management Issues and Bias
Workers face arbitrary management decisions, limited appeal options, and potential discrimination in work allocation. Although some platforms have grievance systems, few ensure fair allocation of work.
Zomato has a grievance system, but workers sometimes report perceived bias in job assignments, impacting their earnings and job satisfaction.
Collectivization Challenges
Platforms resist acknowledging gig workers’ right to unionize or form collective groups. Although worker unions are gaining momentum, no platform currently supports these efforts.
The formation of the Indian Federation of App-based Transport Workers highlights the struggle for recognition among gig workers, with limited response from companies.
Way Forward
Formalizing Worker Protections The gig economy needs a regulatory framework that recognizes gig workers as a formal workforce and provides benefits like minimum wage, health insurance, and paid leave. For example, countries like Spain have introduced laws making gig platforms like Uber classify drivers as employees, thus ensuring basic labor rights.
Skill Development and Upskilling Programs As gig work often requires specialized skills, governments and platforms can collaborate on upskilling programs to increase workers’ earning potential. For instance, Amazon’s “Upskill 2025” initiative offers technical training to employees, which could be adapted for gig workers, enabling them to take on higher-paying tasks.
Data Transparency and Platform Accountability Platforms should be required to ensure transparency in algorithms and data usage to prevent exploitative practices. This could involve transparency in how gig workers are matched with jobs or compensated. For example, California’s Prop 22 requires companies to provide greater transparency around pay and work hours, helping workers make informed decisions.
Creating Portable Benefits Gig workers should have access to benefits that are portable across platforms. This would allow workers to move from one gig platform to another without losing accrued benefits like healthcare or retirement savings. New York City has explored options for portable benefits for its gig workers, providing a potential model for broader application.
Expanding Access to Financial Services Gig workers often struggle with financial stability, lacking access to traditional banking, loans, and credit. Expanding financial inclusion through specialized products can help. For example, platforms like Grab in Southeast Asia offer microloans to drivers, helping them manage income variability, which could be extended to other gig platforms globally.
#IMPACT OF GIG ECONOMY ON INDIAN SOCIETY
Introduction
The gig economy, characterized by temporary, flexible jobs where individuals work as independent contractors or freelancers, has experienced substantial growth in India. Digital platforms like Uber, Ola, Swiggy, and Zomato have enabled millions to join the workforce with flexible schedules, reshaping traditional employment norms. While this economic model offers flexibility and opportunities for supplemental income, it also introduces social challenges, such as job insecurity and lack of benefits. Here’s a detailed analysis of the impact of the gig economy on Indian society, covering both the benefits and the issues it presents.
iMPACT ON sOCIETY
eXPLAINED
Examples
Employment across new demographics
The gig economy has opened new employment avenues for people across diverse demographics, including students, homemakers, and retirees.
Students earning as delivery agents for Swiggy, Zomato; homemakers taking up freelance graphic design on Fiverr or Upwork.
Youth Empowerment
Young Indians can explore various career paths without long-term commitments, helping them gain skills and build work experience early.
College students working as part-time drivers for Uber or freelance digital marketers.
Income for Rural Areas
The gig economy offers rural Indians an option to earn remotely, helping mitigate urban migration and unemployment.
Villagers working on online platforms like Meesho for retailing goods or freelancing on platforms like Freelancer.com.
Social Status Shift
Gig roles have brought in a new social status, where previously marginalized or underrepresented individuals find a respectable means of livelihood and financial autonomy.
Women driving autos or delivery bikes in metro cities, financially supporting families and reshaping traditional roles.
Social Security Concerns
Lack of benefits such as health insurance, retirement funds, or paid leave creates insecurity among gig workers, affecting their financial and social stability.
Ola and Uber drivers without job benefits or health insurance; Swiggy delivery agents with no paid leave despite accident risks.
Mental Health Impact
The uncertainty and erratic hours in the gig economy can contribute to stress, anxiety, and social isolation among workers.
Food delivery riders on strict deadlines facing high-stress levels and struggling with mental health issues due to job unpredictability.
Women’s Workforce Growth
Flexible work hours make gig roles accessible to women, increasing female participation in the workforce and aiding financial independence.
Homemakers working on online tutoring platforms or Meesho resellers contributing to household income.
Erosion of Work-Life Boundaries
The lack of structured hours can blur the line between work and personal life, impacting family time and social engagements.
Freelancers working across different time zones or gig workers working late nights to meet job demands, disrupting social interactions and family life.
Q) Discuss the desirability of greater representation to women in the higher judiciary to ensure diversity, equity and inclusiveness. (UPSC CSE 2021)
Mentor’s Comment: UPSC mains have always focused on the women in the higher judiciary (2021), and appointment of judges of higher judiciary (2017).
Women in law have made significant progress in India over the past 100 years. Cornelia Sorabji became the first woman lawyer to practice in 1924. Since then, the number of women lawyers has increased, with many becoming Senior Advocates and judges in lower courts. However, their representation in the higher judiciary remains very low.
Today’s editorial highlights the reasons for the low representation of women in the Indian judiciary. This content is useful for GS Papers 1 and 2 in the UPSC Mains exam.
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Let’s learn!
Why in the News?
The gender gap in India’s judiciary is evident in the low representation of women, especially in higher courts.
What is the status of women in the Indian Judiciary?
Supreme Court: Women make up about 9.3% of judges in the Supreme Court, with only a few women judges currently serving.
High Courts: As of August 2024, women constitute about 14% of High Court judges, with only 106 women judges out of a total of 754 judges across all High Courts. There are only two women Chief Justices among all High Courts.
Subordinate Judiciary: Women have a higher representation in subordinate courts, constituting about 36.3% of judges as of recent data.
What are the main reasons for the underrepresentation of women in the higher judiciary in India?
Systemic Gender Bias and Stereotypes: Women are often viewed as less capable of handling complex legal matters or leadership roles. Example: Justice Indira Banerjee, a former Supreme Court judge, highlighted how women must work harder to prove their competence compared to male counterparts.
Opaque Collegium System: The collegium lacks transparency in the selection process and does not prioritize gender diversity. Example: Since 2021, 28 judges have been appointed to the Supreme Court, but none of them have been women.
Limited Senior Women Advocates: Fewer women reach the level of Senior Advocate, which reduces the pool of candidates for higher judicial positions. Example: Only one woman, Justice Indu Malhotra, has been elevated directly from the Bar to the Supreme Court in its history.
Delayed Appointments and Age Disparity: Women are appointed to the Bench later than men, limiting their tenure and chances of becoming Chief Justices. Example: The average appointment age for women is 53 years, while for men, it is 51.8 years.
Government’s Selective Confirmation: Women’s names recommended by the collegium are more likely to be delayed or rejected by the government. Example: Since 2020, nine women were recommended for High Court appointments, but five of these names were rejected.
What are the steps taken by the Indian government?
Reservation for Women in Lower Judiciary: Several states like Bihar, Rajasthan, and Andhra Pradesh have introduced 30-35% reservations for women in the lower judiciary to encourage female participation at the entry level. Example: Bihar introduced a 35% reservation for women in judicial services to increase their representation.
Promotion of Gender Sensitization: The government supports initiatives to train judges and judicial staff on gender sensitivity and equality. Example: The National Judicial Academy conducts gender sensitization workshops for judicial officers.
Encouragement of Collegium Recommendations: The government has urged the collegium to consider gender diversity when recommending names for judicial appointments. Example: The Law Minister has emphasized the need for more women judges in parliamentary discussions.
Increased Representation in Policy Discussions: The government includes women’s voices in law commissions and judicial reform committees. Example: Justice R. Banumathi was part of the committee on criminal law reforms focusing on gender issues.
How can the collegium system be reformed to ensure greater transparency and gender diversity in judicial appointments?
Establish Clear and Transparent Selection Criteria: Implement publicly available guidelines specifying the qualifications, experience, and evaluation methods for judicial appointments. Example: The United Kingdom’s Judicial Appointments Commission uses clear, published criteria to promote transparency and diversity in judicial selection.
Mandate Gender Representation in Recommendations: Introduce a formal quota or commitment to ensuring that at least one-third of the recommended candidates are women. Example: Countries like Canada follow a diversity mandate to ensure that judicial appointments reflect gender and ethnic representation.
Open Application Process for Judicial Aspirants: Allow eligible lawyers to apply for judgeship through a transparent process rather than relying solely on collegium nominations. Example:South Africa invites applications publicly and conducts open interviews, ensuring broader participation, including women candidates.
Way forward:
Institutionalize Gender Diversity in Judicial Appointments: Implement a binding policy requiring the collegium to prioritize gender diversity, ensuring a minimum percentage of women in judicial recommendations. This can be reinforced by periodic audits and public reports on gender representation.
Mentorship and Capacity Building for Women Lawyers: Establish structured mentorship programs to support women lawyers in advancing to senior positions and encourage their participation in judicial roles. This should include targeted training for leadership and judicial skills to expand the pool of qualified women candidates.
Prime Minister Modi will visit Mauritius on March 11-12, 2025, to strengthen relations with the new government and confirm India’s support for the island’s security and growth.
What are the key historical and cultural ties between India and Mauritius?
Indentured Labor Heritage (1834 Onwards): Nearly 70% of Mauritians are of Indian origin, descendants of indentured laborers brought by the British to work on sugar plantations. Example: The Aapravasi Ghat in Port Louis, a UNESCO World Heritage site, marks the arrival point of Indian laborers.
Shared Freedom Struggles: Sir Seewoosagur Ramgoolam, Mauritius’ first Prime Minister, worked closely with Netaji Subhas Chandra Bose during Bose’s stay in London (1919-21). Example: Sir Ramgoolam proofread Bose’s famous book “ The Indian Struggle” and received an autographed copy in appreciation.
Linguistic and Cultural Preservation: Various Indian languages, including Bhojpuri, Tamil, Telugu, and Marathi, are actively spoken and preserved through cultural institutions. Example: The Mahatma Gandhi Institute (established in 1976) promotes Indian languages, arts, and culture in Mauritius.
Religious and Festival Ties: Hinduism is practiced by over 48% of the population, and Indian festivals like Diwali, Holi, and Thaipusam are widely celebrated. Example: The Ganga Talao (Grand Bassin) pilgrimage site is considered sacred and draws thousands during Maha Shivaratri.
Institutional and Diplomatic Links: India actively supports Mauritius through diplomatic and cultural outreach programs. Example: Mauritius hosts the World Hindi Secretariat, which is supported by India to promote the Hindi language globally.
Why is maritime security cooperation between India and Mauritius crucial?
Strategic Location in the Indian Ocean: Mauritius lies at a key maritime crossroads in the western Indian Ocean, making it vital for monitoring international shipping lanes and securing regional trade. Example: The Colombo Security Conclave (including India, Mauritius, Sri Lanka, Maldives, and Bangladesh) enhances cooperation to ensure maritime safety.
Countering China’s Expanding Influence: With China increasing its presence in the Indian Ocean Region (IOR) through infrastructure projects and naval activities, India’s partnership with Mauritius helps balance regional power. Example: India’s Agaléga Island redevelopment supports surveillance and counters China’s maritime ambitions.
Securing Exclusive Economic Zones (EEZs): Mauritius has an EEZ of 2.3 million sq. km, rich in marine resources. Collaboration ensures these areas are protected from illegal activities like fishing and piracy. Example: India’s INS Sarvekshak recently completed an ocean survey of 25,000 sq. km in Mauritius’ EEZ to enhance maritime mapping and security.
Joint Surveillance and Intelligence Sharing: Surveillance cooperation enhances maritime domain awareness and secures trade routes against piracy, trafficking, and other threats. Example: Mauritius has access to India’s Information Fusion Centre-Indian Ocean Region (IFC-IOR) in Gurugram for real-time maritime intelligence.
Humanitarian Assistance and Disaster Relief (HADR): Close maritime ties enable swift disaster response and the delivery of humanitarian aid in times of crisis. Example: India provided naval assistance to Mauritius during the MV Wakashio oil spill disaster in 2020.
Where has India invested in maritime infrastructure and security cooperation with Mauritius?
Agaléga Island Development: India is redeveloping Agaléga Island to establish airstrips and port facilities for joint surveillance and maritime domain awareness. Example: This facility enhances monitoring of maritime traffic and strengthens anti-piracy and anti-smuggling operations.
Coastal Radar Surveillance Network: India has installed a network of coastal radar stations in Mauritius to improve maritime security and real-time surveillance of the Indian Ocean Region (IOR). Example: This system helps track illegal maritime activities like smuggling and unauthorized fishing.
Access to the Information Fusion Centre (IFC-IOR): India provides Mauritius access to its Information Fusion Centre – Indian Ocean Region (IFC-IOR), which enables intelligence sharing and coordinated maritime operations. Example: Mauritius can monitor maritime traffic, enhancing its ability to protect its Exclusive Economic Zone (EEZ) and respond to emerging threats.
What role does the Double Taxation Avoidance Agreement (DTAA) play in their economic partnership?
Facilitating Foreign Investments: The DTAA between India and Mauritius prevents double taxation on income, encouraging foreign investments to flow through Mauritius into India. Example: As of March 2024, Mauritius remained India’s fourth-largest source of FPI, contributing ₹4.19 lakh crore, accounting for 6% of India’s total FPI of ₹69.54 lakh crore.
Strengthening Mauritius as a Financial Hub: The agreement has helped Mauritius become a major international financial centre, particularly for investments into India and African markets. Example: Many private equity and venture capital funds use Mauritius as a base to invest in Indian businesses due to favorable tax treatment.
Impact of Treaty Amendments on Investment Flows: In March 2024, India and Mauritius revised the DTAA to include the Principal Purpose Test (PPT), aiming to prevent treaty abuse and tax evasion. Following these amendments, FPIs withdrew ₹8,671 crore from Indian equities in April 2024, reflecting concerns over the revised tax implications.
Way forward:
Enhance Maritime Security Collaboration: There is a need to strengthen joint surveillance, intelligence sharing, and capacity-building initiatives to secure the Indian Ocean Region (IOR) and safeguard maritime trade routes.
Deepen Economic and Financial Cooperation: The Government should adapt the DTAA framework to maintain investor confidence while fostering transparent, sustainable investment flows between the two nations.
Mains PYQ:
Q Why was indentured labour taken by the British from India to their colonies? have they been able to preserve their cultural identity over there? (UPSC IAS/2018)
At the World Economic Forum in January, Electronics and IT Minister Ashwini Vaishnaw announced that India will produce its first locally made semiconductor chip this year.
What is the primary goal of India’s Semicon India Programme?
Reduce Import Dependency: To decrease reliance on foreign countries for semiconductor chips used in electronics, automobiles, and communication devices.
Boost Domestic Manufacturing and Innovation: To establish a strong domestic ecosystem for semiconductor fabrication, assembly, testing, and packaging (ATP). Example: Construction of the Dholera semiconductor fabrication facility in Gujarat by Tata Electronics in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation.
Enhance India’s Position in the Global Supply Chain: To integrate India into the global semiconductor value chain and attract investments from global tech giants. Example: The Tata Semiconductor Assembly and Test facility in Morigaon, Assam, is part of India’s effort to develop advanced chip packaging capabilities and reduce external reliance.
How will it reduce import dependency on semiconductor chips?
Local Production of Semiconductor Chips: Domestic manufacturing of chips will reduce the need to import critical components used in electronics and communication. Example: India’s first indigenously manufactured semiconductor chip is expected to be produced in 2024, cutting reliance on imports from countries like China and South Korea.
Building Fabrication (Fab) Facilities: Establishing semiconductor fabrication plants allows India to produce advanced chips domestically. Example: The Dholera fabrication facility in Gujarat by Tata Electronics, in collaboration with Taiwan’s Powerchip Semiconductor Manufacturing Corporation will reduce the need for importing high-end chips.
Developing Assembly, Testing, and Packaging (ATP) Capabilities: Setting up ATP units enables India to process raw semiconductor wafers into finished products locally. Example: The Tata Semiconductor Assembly and Test facility in Morigaon, Assam, will handle large-scale chip assembly and packaging, decreasing dependence on foreign ATP services.
Diversifying Supply Chains and Strengthening Indigenous Innovation: Promoting research and development will encourage innovation in chip design and technology. Example: Investments in EDA software (Electronic Design Automation) and Core IP (patents) will enable India to design proprietary chips instead of relying on external technologies.
Attracting Global and Domestic Investments: Incentives and policy support under the Semicon India Programme will attract both domestic and foreign semiconductor companies to manufacture locally. Example: Government partnerships with industry leaders like Tata Electronics and Foxconn encourage private investment in chip manufacturing, reducing future import needs
Where are the major semiconductor manufacturing and assembly facilities being constructed under the Semicon India Programme?
Tata-PSMC Semiconductor Fab, Dholera, Gujarat: ₹91,000 crore investment for a fabrication unit with a capacity of 50,000 wafer starts/month, producing 28 nm compute and power management chips for EVs, telecom, defense, and consumer electronics.
Tata TSAT ATMP Unit, Morigaon, Assam: ₹27,000 crore investment in an advanced packaging unit handling 48 million chips/day, catering to automotive, EV, telecom, and consumer electronics sectors.
CG Power-Renesas-Stars ATMP Unit, Sanand, Gujarat: ₹7,600 crore investment for specialized chip manufacturing with a capacity of 15 million chips/day, focusing on consumer, industrial, automotive, and power applications.
Micron Technology ATMP Unit, Sanand, Gujarat: $2.75 billion investment for a memory and storage chip assembly plant, expected to deliver the first chip by 2025, primarily for export.
Kaynes Semicon OSAT Facility, Sanand, Gujarat: ₹3,307 crore investment in an outsourced assembly and test unit, aiming to produce 200 million chips annually by March 2025, focusing on power electronics and industrial uses.
Why has the actual spending under the Semicon India Programme consistently fallen?
Delays in Project Approvals: Lengthy evaluation and approval processes for semiconductor projects have slowed fund disbursement. For instance, the Tata and Micron projects faced regulatory and environmental clearance delays.
High Capital-Intensive Nature: Semiconductor manufacturing requires significant upfront investment, and the government has struggled to allocate sufficient funds. For example, the revised estimate for FY24 dropped to ₹1,503.36 crore from the budgeted ₹3,000 crore due to financial constraints.
Limited Domestic Expertise: India’s lack of advanced technological expertise in areas like chip design and fabrication has slowed implementation, resulting in underutilized budgets.
Complex Global Partnerships: Collaboration with international firms, such as Powerchip Semiconductor Manufacturing Corporation, involves lengthy negotiations and compliance with global standards, delaying fund utilization.
Infrastructure Bottlenecks: Inadequate supporting infrastructure (like power and water supply) at manufacturing sites has caused delays. For example, the Dholera facility required significant investments in infrastructure before full-scale construction could begin.
Way forward:
Streamline Approval Processes and Policy Support: Implement faster clearance mechanisms and provide consistent policy incentives to accelerate project approvals and fund disbursement.
Invest in Skill Development and Infrastructure: Enhance domestic expertise through specialized training programs and improve infrastructure at manufacturing hubs to ensure timely project execution.
Despite being the largest producer and exporter of spices in the world, India’s share in the global seasoning market remains only 0.7%, compared to China’s 12% and the USA’s 11%, according to the World Spice Organisation (WSO).
About the World Spice Organisation (WSO)
WSO was established in 2011 in Kochi, Kerala, India’s spice capital.
It is registered as a Not-for-Profit organization under the Travancore Cochin Literary, Scientific, and Charitable Societies Act, 1956.
It works towards food safety, sustainability, and market development for the spice industry.
It engages with farmers, processors, industry leaders, academia, and global spice associations.
It works with organizations like Spices Board India, Rainforest Alliance, GIZ (Germany), and IDH (Netherlands).
Partners with global spice trade bodies like:
American Spice Trade Association (ASTA)
European Spice Association (ESA)
International Pepper Community (IPC)
Participates in national and international food safety regulations, including:
FSSAI (India’s food safety authority)
BIS (Bureau of Indian Standards)
ISO (International Standards Organization)
Codex Alimentarius (Global food safety standards)
It serves as the technical partner for the All India Spices Exporters Forum (AISEF).
Present Scenario of Spices
India currently exports 1.5 million tonnes of spices worth $4.5 billion, accounting for one-fourth of the $20 billion global spice market. However, only 48% of these exports are value-added products, with the rest being whole spices.
85% of India’s spices are consumed domestically, leaving limited surplus for exports.
Countries like Vietnam, Indonesia, Brazil, and China are emerging as strong competitors in the spice trade.
Production:
Major producing states: Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Assam, Orissa, Uttar Pradesh, West Bengal, Tamil Nadu, and Kerala.
During 2022-23, the export of spices from India stood at US$ 3.73 billion, up from US$ 3.46 billion in 2021-22.
India produces about 75 of the 109 varieties listed by the International Organization for Standardization (ISO).
Out of these spices, chili, cumin, turmeric, ginger, and coriander make up about 76% of the total production.
Chilli is the leading export earner, generating $1.1 billion annually.
Ginger exports have a compound annual growth rate (CAGR) of 27%.
Export:
In 2023-24, India’s spice exports totalled $4.25 billion, accounting for a 12% share of the global spice exports (till February 2024 data).
India exported spices and spice products to 159 destinations worldwide as of 2023-24. The top destinations were China, the USA, Bangladesh, the UAE, Thailand, Malaysia, Indonesia, the UK, and Sri Lanka. These countries accounted for more than 70% of total exports.
PYQ:
[2019] Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?
India’s Delegation led by Union Minister for Women and Child Developments will participate in the 69th session of the United Nations Commission on the Status of Women (UNCSW).
AboutUnited Nations Commission on the Status of Women (UNCSW):
Details
Establishment and Mandate
Founded in 1946 by the Economic and Social Council (ECOSOC) through Resolution 11(II).
Initially focused on women’s political, economic, civil, social, and educational rights.
Expanded in 1996 to include monitoring the Beijing Declaration and integrating gender perspectives into UN activities.
Structure and Membership
Composed of 45 member states elected by ECOSOC based on geographical representation.
13 from Africa, 11 from Asia, 9 from Latin America and the Caribbean, 8 from Western Europe and other States, 4 from Eastern Europe.
Members serve a four-year term.
Key Roles and Responsibilities
Policy Formulation: Establishes global norms and standards for gender equality.
Monitoring Progress: Reviews gender-related commitments, including the Beijing Declaration.
Advocacy and Awareness: Conducts research, publishes reports, and promotes women’s rights globally.
Collaboration: Works with UN entities, NGOs, and civil society organizations to strengthen gender equality.
Major Contributions
Drafted key conventions like:
Convention on the Political Rights of Women (1953)
Convention on the Nationality of Married Women (1957)
Convention on Consent to Marriage (1962)
Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) (1979).
Influenced the Universal Declaration of Human Rights (1948).
Led preparatory work for the Fourth World Conference on Women in Beijing (1995).
Annual Sessions and Key Themes
Held annually at UN Headquarters, New York.
Engages member states, NGOs, and UN agencies in discussions on gender-related policies.
PYQ:
[2009] With reference to the United Nations, consider the following statements:
The Economic and Social Council (ECOSOC) of UN consists of 24 member States.
It is elected by a 2/3rd majority of the General Assembly for a 3-year term.
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
