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Subject: Economics

  • Draft Patent Amendment Rules and Issues

    petent

    Central Idea

    • On August 23, the Department for Promotion of Industry and Internal Trade in India unveiled draft patent amendment rules.
    • These changes, if enacted, may have significant implications for pharmaceutical companies and patients, particularly in the global South.

    Draft Patent Amendment Rules: Key takeaways

    • Financial Burden: A notable modification is the introduction of variable fees for filing pre-grant oppositions, potentially placing a substantial financial burden on civil society organizations and patient groups.
    • Maintainability Decision: Of particular concern is the provision granting the controller the authority to determine the maintainability of representation by individuals or civil society organizations seeking to file pre-grant oppositions.

    Impact on Public Health Safeguards

    • Key Public Health Safeguard: Pre-grant opposition serves as a crucial public health safeguard against practices like patent evergreening and the granting of unwarranted monopolies. It ensures continued accessibility to quality-assured and affordable generic medicines.
    • Lobbying for Weakened Safeguards: The draft amendment rules have raised concerns that they may undermine these safeguards and potentially extend patent protection on frivolous grounds. Big pharmaceutical companies have long lobbied to remove critical safeguards from India’s patent laws.

    Critiques and Concerns

    • Lack of Rational Basis: Critics argue that the rules’ provision for controller-determined maintainability lacks a rational basis and may create more problems. Without clear guidelines, decisions on the eligibility of pre-grant opposition filers could become arbitrary.
    • Favouring Corporations: Some believe that the government is aligning with pharmaceutical companies’ interests, as these corporations often seek to limit pre-grant opposition.
    • Unique Provision at Risk: Pre-grant opposition, an exceptional provision within the Indian Patent Act, has been crucial in protecting public health interests. Weakening this provision could have dire consequences for patients and the generic drug industry.

    Precedents of Successful Opposition

    • Past Precedents: Pre-grant opposition filed by patient groups and civil society organizations has led to the rejection of patent extensions pursued by pharmaceutical companies based on weak claims of “novel invention.”
    • Notable Instances: Examples include opposition to patents for drugs like Tenofovir disoproxil fumarate (TDF), Nevirapine, Glivec (imatinib mesylate), Zidovudine/Lamivudine (HIV medicines), and Lopinavir/Ritonavir (HIV medicines).

    Potential Ramifications

    • Global Implications: The proposed changes could disproportionately impact patients in India and the global South, who heavily rely on India’s production of affordable generic drugs and vaccines.
    • Threat to Access: Weakening pre-grant opposition may impede access to essential medicines, putting patients at risk and affecting the generic drug industry.
    • Concerns Raised: Experts emphasize that any erosion of this provision within the Indian Patent Act would be a significant change, jeopardizing patients’ ability to access affordable medications and enabling pharmaceutical corporations to exert greater control over the market.

    Conclusion

    • The draft patent amendment rules have sparked concerns that they may undermine essential safeguards, potentially benefiting pharmaceutical giants while posing a threat to patients’ access to affordable medicines.
    • The pivotal role of pre-grant opposition in safeguarding public health interests is at risk, raising questions about the impact on patients in India and beyond.

  • India’s Inclusion in Government Bond Index-Emerging Markets (GBI-EM)

    Central Idea

    • In a groundbreaking development, JPMorgan has announced the inclusion of Indian government bonds in its Government Bond Index-Emerging Markets (GBI-EM), slated to commence from June 2024.
    • This decision could pave the way for substantial inflows of billions of dollars into local currency-denominated government debt.

    What is Government Bond Index-Emerging Markets (GBI-EM)?

    Definition An index that tracks the performance of government bonds issued by emerging market countries.

    It reflects the returns of local-currency-denominated sovereign bonds.
    Purpose To provide a benchmark for measuring the performance of emerging market government bonds, helping investors assess the attractiveness of these bonds for investment.
    Issuer J.P. Morgan
    Components Includes government bonds issued by various emerging market countries.

    The composition may change over time based on eligibility criteria.
    Coverage Covers a broad range of emerging market countries and their local currency government bonds.

    Different GBI-EM indices may have specific regional or maturity focuses.
    Currency Denominated in the local currencies of the respective emerging market countries.

     

    India’s inclusion in GBI-EM

    • Long-Awaited Discussion: India’s consideration for inclusion in global indexes began in 2013. However, limitations on foreign investments in domestic debt impeded progress.
    • Fully Accessible Route (FAR): In April 2020, the Reserve Bank of India introduced select securities exempt from foreign investment restrictions through the “fully accessible route” (FAR), rendering them eligible for inclusion in global indexes.
    • Index-Eligible Bonds: Currently, there are 23 Indian Government Bonds (IGBs) with a combined notional value of $330 billion that meet index eligibility criteria, according to JPMorgan.
    • Investor Support: Approximately 73% of benchmarked investors voted in favor of India’s inclusion in the index, marking a significant endorsement.

  • Northeast’s Mithun gets ‘Food Animal’ Tag

    mithun

    Central Idea

    • The Food Safety and Standards Authority of India (FSSAI) has recently recognized the mithun as a ‘food animal,’ opening doors for its commercial use.

    About Mithun

    • The Mithun, also known as the Gayal (scientifically Bos frontalis), is believed to have evolved from the Indian Gaur or bison.
    • It was first described in 1804 by Aylmer Bourke Lambert.
    • It holds significant cultural and socio-economic importance among tribes like the Nyishi, Apatani, Galo, and Adi in Arunachal Pradesh.
    • Its habitat spans Northeast India, Bangladesh, northern Myanmar, and Yunnan, China.
    • It is often referred to as the ‘cattle of the mountain.’
    • The gayal serves as the state animal of Arunachal Pradesh and Nagaland.

    Conservation status

    • IUCN: Vulnerable
    • CITES: Appendix I.

    Recognition as a ‘Food Animal’

    • This move has sparked efforts to help farmers and tribal communities benefit economically from the sale and processing of mithun meat.
    • The Indian Council of Agricultural Research has introduced the M-ANITRA app, facilitating the registration of Mithun farmers as both “buyers” and “sellers” to engage in competitive trade.
    • Mithun farmers from various villages in Northeast India have been participating in training programs conducted by organizations like the ICAR-National Research Centre on Mithun.
    • Farmers are adopting practices to protect mithun, including enclosures, night shelters, and vaccinations.
    • Mithuns, when sold as meat, can fetch high prices, with an average selling price of Rs 300 per kg.
    • The opportunity to commercially sell mithun meat is generating excitement among farmers.

  • Ethanol – a saviour that gives savings

    What’s the news?

    • India grapples with soaring international oil prices, hitting nearly $100 per barrel, amid its record high import dependence on crude oil and products at 87.3% in FY2023.

    Central idea

    • As the third-largest consumer of crude and related products globally, India faces a critical challenge in securing its energy future. However, the recently formed Global Biofuel Alliance under India’s G20 presidency presents a promising opportunity to harness clean bioenergy and enhance energy security while optimizing public spending.

    India’s Ethanol Blending Program

    • In 2003, India initiated its ethanol blending program, but progress remained sluggish for over a decade.
    • In 2022, after sustained policy efforts, the program achieved a significant milestone by achieving a 10% ethanol blending rate in petrol.
    • The government now aims to accelerate progress, targeting a 20% (E20) blending rate by FY25–26, advancing the original timeline by five years.
    • Ethanol producers supplied approximately 430 crore litres of ethanol in 2022, with demand projected to soar to nearly 1,100 crore litres by 2025.
    • Achieving this target hinges on substantial investments and ensuring an adequate supply of feedstock for domestic ethanol production.

    Mobility needs in India

    • Two-Wheelers Dominance: Nearly 60% of India’s petrol demand is attributed to two-wheelers. These vehicles are essential for meeting the mobility requirements of people across various economic strata, from urban commuters to rural residents.
    • Four-Wheelers’ Growing Demand: While two-wheelers dominate, the demand for four-wheelers is steadily increasing. Approximately 55% of respondents in a 2021 study indicated their desire and need to own a four-wheeler. A NITI Aayog report also predicts a significant growth in petrol demand from four-wheelers by 2030.

    The Role of Biofuels, Specifically Ethanol

    • Reducing Petrol Consumption: One of the primary roles of biofuels, such as ethanol, is to reduce the overall consumption of petrol (gasoline). By blending ethanol with petrol, India can lower its dependence on imported crude oil, mitigate greenhouse gas emissions, and enhance energy security.
    • Blending to Reduce Emissions: Ethanol blending in petrol is an effective strategy to reduce carbon emissions and air pollution. This is crucial for addressing India’s air quality challenges and its commitment to combating climate change.
    • Promoting Bio-Energy: Biofuels, including ethanol, can be produced from agricultural crops and biomass sources. This provides an additional income stream for the farming community, contributing to rural development and income generation.
    • Supporting Sustainable Agriculture: The cultivation of crops for biofuel production can be aligned with sustainable agricultural practices, including crop diversification and efficient resource use.

    Challenges with Electric Vehicles (EVs)

    • Limited Availability and Affordability of EVs: While EV adoption is increasing, there is still limited variety in EV models compared to traditional vehicles. This limitation can impact consumer choice and adoption. Additionally, the upfront costs of EVs are often higher, which can deter potential buyers.
    • Charging Infrastructure: The need for expanding charging infrastructure is emphasized, highlighting that the development of charging stations is essential for the widespread adoption of EVs. The lack of charging stations can create range anxiety among EV users.
    • Range Anxiety: EVs generally have a limited range compared to traditional vehicles, and addressing this concern is crucial to alleviating consumer fears about long-distance travel.
    • Charging Time: While not explicitly mentioned, the article indirectly alludes to the longer charging times for EVs compared to refueling traditional vehicles. Fast-charging stations are discussed as a solution to reduce charging times.
    • Battery Technology and Supply Chain: The article briefly touches upon battery cost and supply chain challenges, noting that the cost of EV batteries remains relatively high and disruptions in the global supply chain can impact EV manufacturing.

    Way forward

    • Expediting Ethanol Blending Program: Accelerate efforts to achieve the ambitious target of 20% ethanol blending (E20) by FY25–26. Prioritize investments in ethanol production facilities to meet the rising demand for ethanol.
    • Infrastructure Development: Focus on rapidly developing the necessary infrastructure for the efficient distribution and sale of ethanol-blended petrol, including retrofitting existing petrol pumps and establishing new ones.
    • Research and Development for 2G Technologies: Allocate resources to research and develop second-generation (2G) biofuel technologies that can utilize non-food crop feedstocks, diversifying biofuel sources.
    • Balanced Approach: Recognize the complementary nature of biofuels, electric vehicles (EVs), and other sustainable mobility solutions. Promote EV adoption, particularly in public transit and urban settings, alongside biofuel promotion.
    • Supportive Policy Framework: Ensure the presence of consistent and supportive policy frameworks that incentivize biofuel production, distribution, and usage. Explore pricing mechanisms to encourage responsible private vehicle usage in urban areas.

    What else?

    • First-generation Production: Much of India’s supply of ethanol for the blending program comes from first-generation production. This primarily involves using underlying sugars in food crops, with the majority sourced from sugarcane (84 percent) and grain (16 percent).
    • Food-Energy-Water Nexus: Considering the food-energy-water nexus in ethanol production is important. Food crops used for ethanol require fertilizers, water, and energy subsidies for their production.
    • Climate Change Considerations:
    • While ethanol production provides a new income stream for the farming community through assured procurement, it’s crucial to recognize that climate change can lead to significant variations in rainfall and yields. These variations can make the ethanol supply vulnerable to supply shocks.
    • Therefore, India needs a robust assessment of these trade-offs and a clear research and development plan for second-generation (2G) ethanol technologies before scaling up ethanol production.

    Conclusion

    • In an era when the automobile industry grapples with the transition to EVs, India’s strategic and actionable plan for transforming its mobility landscape not only promises to reduce the import bill but also provides the nation with the time required to transition a cornerstone industry of its economy. The Global Biofuel Alliance, alongside well-considered policy initiatives, will be pivotal in steering India toward greater energy security and sustainability.

    Must Read:

    Sustainable Biofuels

  • YashoBhoomi: India’s Premier Convention and Expo Centre

    YashoBhoomi

    Central Idea

    • PM inaugurated the first phase of the world-class ‘YashoBhoomi’ India International Convention and Expo Centre (IICC) in Dwarka, Delhi.

    About YashoBhoomi

    • YashoBhoomi is the second convention facility to offer top-notch amenities for exhibitions and conferences, following the Bharat Mandapam, which hosted world leaders during the recent G20 Summit.
    • It represents PM’s vision to create world-class infrastructure in India for hosting conventions, meetings, and exhibitions, greatly benefiting from its operational status in Dwarka.

    Key Features of YashoBhoomi

    • Expansive Project: Also known as the India International Convention and Expo Centre, YashoBhoomi spans an impressive 8.9 lakh square meters, with a built-up area exceeding 1.8 lakh square meters.
    • Capacity and Facilities: This conference center boasts a remarkable capacity of accommodating 11,000 guests. It comprises 15 convention rooms, including the main auditorium, the grand ballroom, and 13 meeting rooms.
    • Auditorium and Ballroom: The main auditorium can seat 6,000 people, while the grand ballroom can accommodate an additional 2,500. There is also seating for up to 500 people in a large open space.
    • Exhibition Hall: A massive exhibition hall, spanning over 1.07 lakh square meters, is a prominent feature of YashoBhoomi.
    • Metro Connectivity: On the same day as the inauguration of the new metro station in Dwarka Sector 25, YashoBhoomi will be connected to the Delhi Airport Metro Express line.
    • Architectural Splendor: The conference center incorporates elements inspired by Indian civilizations, including terrazzo floors with brass inlays resembling rangoli patterns, suspended sound-absorbing metal cylinders, and illuminated pattern walls.
    • Sustainability Focus: YashoBhoomi is committed to sustainability, featuring rooftop solar panels, a state-of-the-art wastewater treatment system enabling 100% wastewater reuse, rainwater harvesting, and Green Cities Platinum certification from CII’s Indian Green Building Council (IGBC).

  • Bima Sugam: Is it a ‘UPI moment’ for insurance sector, and how will it benefit customers?

    Central idea

    • The Insurance Regulatory and Development Authority of India (IRDAI) is poised to introduce Bima Sugam, a groundbreaking initiative set to transform the insurance landscape in India. IRDAI envisions Bima Sugam as the UPI moment for the insurance sector, aiming to establish it as the world’s largest online marketplace for insurance products and services.

    What is Bima Sugam?

    • Bima Sugam is an innovative online platform developed by This platform is designed to revolutionize the insurance sector in India by providing a comprehensive and user-friendly solution for insurance-related activities.

    Key aspects and developments regarding Bima Sugam

    • Comprehensive Insurance Marketplace: Bima Sugam serves as a comprehensive online marketplace where customers have access to a wide range of insurance options offered by various insurance companies. It covers all types of insurance requirements, including life insurance, health insurance, and general insurance, which encompasses policies such as motor and travel insurance.
    • Efficient Claim Settlement: Bima Sugam focuses on enhancing the efficiency of claim settlements. Whether policyholders need to make claims related to health coverage or death benefits, the platform enables paperless claim processing based on policy numbers.
    • Data Storage: Details and information about insurance schemes are expected to be stored within the platform through an insurance repository. This repository acts as a centralized database for insurance policies, making it convenient for customers to access and manage their policy information.
    • Budget Increase: The overall budget allocated for the development and implementation of Bima Sugam has been increased to Rs 200 crore, a substantial increase from the initial budget of around Rs 85 crore. This increased budget reflects the significance and scale of the project.
    • Committee Appointment: IRDAI has appointed a dedicated committee to oversee the creation and deployment of the Bima Sugam platform. The committee is tasked with ensuring that the platform is developed effectively and meets the objectives set by IRDAI.
    • Request for Proposals (RFPs): IRDAI plans to issue requests for proposals (RFPs) soon to select a suitable service provider for the Bima Sugam platform. These service providers will serve as technological partners responsible for creating and operating the platform, offering a one-stop solution for all insurance-related services.

    What is its role and utility for customers?

    • Single Window for Insurance Needs: Bima Sugam serves as a single, centralized platform where customers can fulfill all their insurance needs. It offers a diverse range of insurance options, including life insurance, health insurance, and general insurance (such as motor and travel insurance). This eliminates the need for customers to visit multiple websites or deal with various agents to explore and purchase insurance policies.
    • Streamlined Policy Selection: The platform simplifies the process of selecting the right insurance policy. Customers can easily compare and evaluate various insurance schemes from different insurers, helping them make informed decisions. This streamlined approach ensures that customers can identify policies that align with their specific requirements and preferences.
    • Efficient Claim Settlement: Bima Sugam places a strong emphasis on efficient claim settlement processes. Customers can initiate and track claims related to health coverage or death benefits through the platform. The use of policy numbers and paperless processing speeds up the claim settlement process, reducing hassles for customers during critical times.
    • Paperless Transactions: With the platform’s paperless transactions, customers can access, manage, and store their insurance policies electronically. This not only reduces the need for physical documentation but also contributes to environmental sustainability. Policyholders can view and retrieve their policy details conveniently online.
    • Cost Savings: Bima Sugam is expected to lower the commissions associated with insurance policies, resulting in cost savings for customers. Additionally, the overall cost of purchasing insurance policies is likely to decrease, making insurance more affordable and accessible.
    • Real-time Data Access: Insurance companies can access validated and authentic customer data in real-time through the platform. This enhances insurers’ ability to offer personalized services and respond promptly to customer inquiries and needs.
    • User-Friendly Interface: The platform is designed with a user-friendly interface, making it accessible and easy to navigate for customers of varying levels of technological proficiency. This ensures that a wide range of users can benefit from its services.

    What the IRDAI says about Bima Sugam?

    • Electronic Marketplace Protocol: IRDAI describes Bima Sugam as an electronic marketplace protocol. It envisions this platform as a means to universalize and democratize insurance by providing a digital infrastructure for seamless service delivery.
    • Integration with India Stack: The Bima Sugam will be connected with India Stack, which is a set of application programming interfaces (APIs). These APIs enable governments, businesses, startups, and others to utilize India’s unique digital infrastructure for delivering services efficiently.
    • Empowering Insurance Stakeholders: The IRDAI Chairman, Debasish Panda, said that Bima Sugam will enable and empower all stakeholders across the insurance value chain. This suggests that the platform aims to benefit not only customers but also insurers, intermediaries, and agents by streamlining processes and improving access to data.

    Implementation of the Bima Sugam

    • Initial Target: Initially, IRDAI aimed to have Bima Sugam up and running by January 2023.
    • First Postponement: The implementation timeline was postponed, and the platform’s launch was rescheduled for August 1. This delay indicated that more time was needed to develop and prepare the platform for public use.
    • Latest Implementation Date: The implementation of Bima Sugam has been postponed once again, with the new target for its launch set for June 2024. This suggests that the platform is still under development, and IRDAI is working to ensure its readiness before its official release.

    Conclusion

    • Bima Sugam represents a significant leap forward in the Indian insurance sector, promising convenience, transparency, and cost-efficiency for customers while revolutionizing the way insurers conduct business. As its implementation date approaches, stakeholders eagerly anticipate the positive impact this transformative platform will have on the insurance industry and financial security for millions of Indians.

  • Basmati Rice Revolution: From Crop to Cuisine

    basmati

    Central Idea

    • While scientific research often seems distant from practical outcomes, some less-celebrated success stories stand out.
    • One such triumph is the transformation of India’s basmati rice industry, driven by scientists at the Indian Agricultural Research Institute (IARI) in New Delhi.

    About Basmati Rice

    • Basmati rice is a fragrant, long-grain rice variety primarily cultivated in the Indian subcontinent.
    • It is native to the foothills of the Himalayas in India and Pakistan.
    • Basmati rice is characterized by its long, slender grains that elongate further when cooked.
    • Basmati rice is renowned for its natural aromatic fragrance, often described as nutty or floral.
    • There are different Basmati rice varieties, each with its unique characteristics. Some popular varieties include Basmati 370, Basmati 386, and Basmati 1121.
    • Basmati rice from certain regions, particularly Indian Basmati, has received Geographical Indication (GI) tags, indicating its specific geographical origin and quality.

    [a] First Revolution

    • Traditional Basmati Varieties: Until the late 1980s, Indian farmers primarily cultivated traditional basmati varieties with tall plants prone to lodging, resulting in low yields and long cultivation periods.
    • Breakthrough with PB-1: In 1989, the IARI introduced Pusa Basmati-1 (PB-1), a crossbreed that combined traditional basmati grain attributes with high-yielding traits. PB-1 was more compact, sturdy, and offered improved yields and maturity times.

    [b] The Second Revolution

    • PB-1121’s Quality: The real revolution came in 2003 with the release of Pusa Basmati-1121 (PB-1121), which offered a different advantage. While yielding slightly less, it boasted exceptional grain quality, with elongated kernels that expanded impressively upon cooking.
    • Market Impact: PB-1121’s grain quality allowed companies like KRBL Ltd. to create a lucrative export brand, making it a global favourite. This variety significantly contributed to India’s basmati rice exports.

    [c] Third Revolution

    • PB-1509: In 2013, the IARI introduced Pusa Basmati-1509 (PB-1509), a high-yielding variety with a shorter maturity period. This innovation allowed farmers to cultivate an extra crop, enhancing their economic prospects.
    • Diverse Crop Combinations: PB-1509’s early maturity has enabled farmers to explore crop diversification, including potatoes, sunflowers, sweet corn, and onions, in addition to basmati rice.

    basmati

    Breeding for Disease Resistance

    • Protecting Gains: IARI scientists have recently focused on preserving yield gains by incorporating disease-resistant genes into their improved basmati varieties.
    • Marker-Assisted Selection: Genes for bacterial leaf blight and rice blast fungal disease resistance have been identified through marker-assisted selection techniques.
    • New Varieties: The release of Pusa Basmati-1885 and Pusa Basmati-1847 in 2021 marked the introduction of varieties with “in-built resistance” against these diseases, reducing the need for chemical crop protection.

    Risk Factors

    • Market Dependency: Basmati rice lacks a minimum support price (MSP) and relies heavily on exports, with limited domestic consumption.
    • Market Vulnerability: Despite its profitability, basmati farming is exposed to market fluctuations and government export policies. Recent restrictions highlight this vulnerability, affecting basmati farmers.

  • What is the Vishwakarma scheme, launched for those engaged in traditional crafts and skills

    What’s the news?

    • On September 17, Prime Minister Narendra Modi launched the PM Vishwakarma scheme in New Delhi on the occasion of Vishwakarma Jayanti.

    Central idea

    • Recently launched, the PM Vishwakarma scheme, introduced during his Independence Day speech a month earlier, aims to support traditional craftsmen and economically marginalized communities, especially the OBC, while also serving as a strategic move ahead of the 2024 Lok Sabha elections.

    About Vishwakarma

    • Vishwakarma, a revered figure in Hindu mythology, is regarded as the divine architect of the gods, a master craftsman, and a divine carpenter.
    • He is celebrated as the patron deity of workers, artisans, and artists, responsible for crafting the gods’ weapons, cities, and chariots.
    • The scheme takes its name from this emblematic figure, symbolizing the recognition and empowerment of skilled laborers.

    What is the Vishwakarma scheme?

    • The Vishwakarma scheme is a new government initiative fully funded by the central government and has a budgetary allocation of Rs 13,000 crore.
    • The scheme is designed to address the challenges faced by professionals engaged in traditional crafts and skills, often passed down through generations within their families.
    • This includes artisans such as carpenters, goldsmiths, masons, laundry workers, barbers, and others engaged in traditional crafts and skills.
    • The scheme has ambitious coverage goals, aiming to support five lakh families in the first year and eventually reaching 30 lakh families over five years.
    • It also seeks to integrate Vishwakarmas into both domestic and global value chains.

    Eligibility Criteria

    • Workers engaged in traditional crafts and skills are eligible.
    • Emphasis is placed on individuals facing specific challenges, such as:
      • Lack of access to modern tools and equipment.
      • Absence of professional training for their work.
      • Geographical distance from markets relevant to their craft.
      • Limited availability of capital for investment in their trade.
    • The scheme particularly targets marginalized and socially backward communities, including the Other Backward Classes (OBC) groups.
    • Eligible individuals may include those who have acquired their skills through family traditions or apprenticeships. Top of Form

    Benefits offered by the Vishwakarma Scheme

    • Free Registration: Vishwakarma workers can register for free through Common Services Centers using the biometric-based PM Vishwakarma portal.
    • Recognition: Workers will receive recognition through the PM Vishwakarma certificate and ID card.
    • Skill Upgradation: The scheme offers both basic and advanced training to improve the skills of artisans.
    • Toolkit Incentive: Artists will receive a toolkit incentive of ₹15,000
    • Collateral-Free Credit: Workers can avail of collateral-free credit support up to ₹1 lakh (first tranche) and ₹2 lakh (second tranche) at a concessional interest rate of 5%.
    • Digital Transactions Incentive: The scheme provides incentives for digital transactions and offers marketing support.
    • Toolkit Booklet: To keep artisans informed about new technologies in their field, a toolkit booklet has been released in 12 Indian languages, accompanied by video elements.
    • Additional benefits: Other benefits include a stipend of Rs 500 for skill training and Rs 1,500 to purchase modern tools.

    Common challenges faced by professionals engaged in traditional crafts and skills

    • Lack of Access to Modern Tools and Equipment: Many professionals in traditional crafts may not have access to modern tools and equipment, limiting the efficiency and quality of their work.
    • Limited Professional Training: Traditional artisans often learn their skills through family traditions or apprenticeships, which may not provide formal professional training, potentially resulting in outdated techniques.
    • Limited Capital for Investment: Traditional craftsmen may face difficulties in securing capital for purchasing materials, tools, or expanding their businesses, which can constrain their growth.
    • Inadequate Recognition and Marketing: Traditional artisans may struggle with marketing and promoting their products effectively, leading to challenges in reaching a broader customer base.
    • Competition from Mass Production: The rise of mass-produced goods can threaten traditional artisans who produce handcrafted items, impacting their livelihoods.
    • Skills Preservation and Succession: Ensuring the preservation of traditional skills and passing them on to the next generation can be a challenge, as younger generations may not always be interested in pursuing these crafts.
    • Financial Insecurity: Irregular income patterns common in traditional crafts can lead to financial instability, especially due to seasonal demand or market fluctuations.

    Significance of the Vishwakarma Scheme

    • Empowering Traditional Artisans: The Vishwakarma Scheme is significant as it aims to empower and uplift traditional artisans and craftsmen engaged in various trades. It recognizes their importance in India’s cultural and economic fabric.
    • Social and Economic Inclusion: The scheme targets marginalized communities, especially the OBC groups, and provides them with opportunities for skill development and financial support, thereby promoting social and economic inclusion.
    • Preserving Cultural Heritage: By supporting traditional crafts and skills, the scheme contributes to the preservation of India’s rich cultural heritage. It ensures that age-old craftsmanship is not lost to modernization.
    • Recognition and Certification: The scheme provides recognition to artisans through the PM Vishwakarma certificate and ID card, boosting their status and recognition in society.
    • Financial Security: By offering collateral-free credit support and financial incentives, the scheme provides financial security to artisans, helping them invest in their crafts and improve their livelihoods.
    • Digital Integration: Encouraging digital transactions and offering incentives for digital business practices promotes financial literacy and inclusion among traditional artisans.
    • Integration with Global Value Chains: By aiming to integrate Vishwakarmas with domestic and global value chains, the scheme opens up opportunities for artisans to access broader markets and participate in the global economy.

    Conclusion

    • The PM Vishwakarma scheme represents a significant step toward empowering traditional craftsmen by providing them with the tools, training, and financial support they need to thrive in an ever-changing world. As this scheme unfolds, it holds the potential to transform the lives of countless skilled workers and contribute to the nation’s growth and development.

  • Establishment of GST Appellate Tribunals across India

    Central Idea

    • The Finance Ministry has formally established 31 Appellate Tribunals spanning 28 States and eight Union Territories for the Goods and Services Tax (GST).
    • This significant move aims to address the increasing number of taxpayer disputes with the Revenue Department.

    What is GST Appellate Tribunal?

    • The GST Appellate Tribunal is a quasi-judicial body proposed to be established to resolve disputes related to the Goods and Services Tax (GST) in India.
    • It will function as an independent body to hear appeals against orders passed by the GST authorities or the Appellate Authority.
    • The tribunal will be composed of a national bench and various regional benches, headed by a chairperson appointed by the central government.
    • The proposed tribunal is expected to help expedite the resolution of disputes related to GST and reduce the burden on the judiciary.

    Under GST, if a person is not satisfied with the decision passed by any lower court, an appeal can be raised to a higher court, the hierarchy for the same is as follows (from low to high):

    1. Adjudicating Authority
    2. Appellate Authority
    3. Appellate Tribunal
    4. High Court
    5. Supreme Court

    Need for such Tribunal

    • Unburden judiciary: GST Appellate Tribunal will help resolve the rising number of disputes under the 68-month-old indirect tax regime that are now clogging High Courts and other judicial fora.
    • Improve efficiency of GST System: Overall, the establishment of the GST Appellate Tribunal is expected to improve the efficiency and effectiveness of the GST system in India.
    • Independent mechanism: The proposed Tribunal will provide an independent and efficient mechanism for resolving disputes related to GST.
    • Avoid tax evasion: It will help to expedite the resolution of disputes, reduce the burden on the judiciary, and promote greater certainty and predictability in the GST system.

    Issues with present litigation

    • Compliance issues: The GST system is relatively new in India, having been implemented in 2017, and there have been several issues with compliance and interpretation of rules and regulations.
    • Complex adjudication hierarchy: The current dispute resolution mechanism involves multiple layers of adjudication, starting with the GST officer and as mentioned above.
    • Time consuming process: This process can be time-consuming, costly, and burdensome for taxpayers, especially small and medium-sized enterprises.

    Significance

    • The creation of these tribunals had been in the pipeline since the implementation of the GST regime on July 1, 2017.
    • The number of pending appeals by taxpayers related to central GST levies had surged to over 14,000 (June 2023).

  • A GM crop decision that cuts the mustard

    What’s the news?

    • The zero-hunger target for 2030, as delineated in the 2019 Global Food Security and Nutrition Report, looms as an increasingly elusive goal. To overcome this pressing challenge, it is essential to expedite the genetic enhancement of crops.

    Central idea

    • In a world grappling with the formidable challenge of ensuring global food security amid a changing climate, genetic engineering emerges as a beacon of hope. It has become an urgent necessity to complement conventional breeding methods with science-based technologies, particularly genetic engineering, for developing GM crops.

    Extensive adoption and benefits of genetically modified (GM) crops

    • Increased Productivity: Genetic modification of crops, in combination with traditional farming practices, has been extensively documented for its role in increasing agricultural productivity. This technology has made significant contributions to global food, feed, and fiber security.
    • Global Adoption: According to a report by the International Service for the Acquisition of Agri-biotech Applications (ISAAA) in 2020, a total of 72 countries have embraced GM crops for various purposes, including human consumption, animal feed, and commercial cultivation. This widespread adoption reflects the global significance of GM crop technology.
    • Developing Country Emphasis: Notably, 56% of the total global GM crop area is found in developing countries, in contrast to 44% in industrialized countries. This highlights the importance of GM crops in addressing food security and economic challenges in the developing world.
    • Beneficiaries: GM crops have had a positive impact on more than 1.95 billion people globally. Specifically, Argentina, Brazil, Canada, India, and the United States have realized substantial benefits from the adoption of GM crops, benefiting approximately 26% of the world’s population.
    • Diversification of Traits: Genetic modification has extended its reach beyond the major crops of maize, soybean, cotton, and canola. Other economically important food crops have also been modified to exhibit various traits, including resistance to insects and herbicides, improved climate resilience, and enhanced nutritional quality.

    Economic Gains and Biosafety

    • Economic Gains: The global economic gains attributed to GM crops between 1996 and 2018 have amounted to an impressive $224.9 billion. These benefits have primarily accrued to more than 16 million farmers, with 95% of them residing in developing countries.
    • Proven Biosafety: GM food crops, since their adoption in 1996, have established a solid track record of biosafety spanning over 25 years. This underscores the safety and reliability of GM crops for human consumption and the environment.

    India’s Success Story with Bt Cotton

    • Commercialization: Bt cotton was introduced as the first genetically modified crop in India over 20 years ago, marking a significant milestone in biotechnology adoption in the country.
    • Economic Benefits: Bt cotton adoption has provided economic advantages to Indian farmers. It has reduced the need for chemical insecticides, leading to cost savings for farmers and reducing their exposure to health risks associated with pesticide use.
    • Increased Yields: Bt cotton’s resistance to pests, particularly the bollworm, has resulted in increased cotton yields in India. Farmers have experienced reduced losses due to pest damage, leading to higher production and improved economic returns.
    • Environmental Impact: The adoption of Bt cotton has had a positive environmental impact. Reduced pesticide usage in Bt cotton cultivation has led to lower chemical runoff and reduced contamination of ecosystems.

    GM Mustard’s Progress in India

    • Development of the DMH-11 Hybrid: Extensive research was conducted at the Centre for Genetic Manipulation of Crop Plants (CGMCP), University of Delhi South Campus, to create a GM mustard hybrid known as DMH-11. This hybrid has been genetically engineered to exhibit higher vigor and yield.
    • Approval by the Genetic Engineering Appraisal Committee (GEAC): On October 25, 2022, the Genetic Engineering Appraisal Committee (GEAC) of the Ministry of Environment, Forest, and Climate Change in India approved the release of DMH-11 and its parental line for cultivation. This approval represents a significant milestone in the regulatory process for GM crops in India.
    • Environmental Release: The GEAC’s approval for the environmental release of GM mustard indicates that the technology has passed regulatory scrutiny for safety and environmental impact, paving the way for potential commercial cultivation.

    Significance for India in Terms of Edible Oil Sufficiency

    • Reduction in Edible Oil Imports: India currently faces a substantial deficit in edible oil production, with a significant portion of its demand being met through imports. In 2020–21, India’s edible oil imports reached approximately 13 million tonnes, with a total value of ₹1.17 lakh crore.
    • Increased Productivity: GM mustard, particularly the DMH-11 hybrid, has been developed for higher vigor and yield. This increased productivity can play a crucial role in meeting the growing demand for edible oils in the country.
    • Resource Efficiency: GM mustard’s herbicide tolerance trait can lead to more resource-efficient cultivation practices. It helps conserve soil moisture and nutrients and reduces the need for chemical weed control, ultimately contributing to sustainable and self-reliant agriculture.

    GM mustard’s significance for India’s self-reliance

    • Reduced Dependency on Imports: By boosting domestic edible oil production, GM mustard can reduce India’s dependency on edible oil imports. In 2020–21, domestic production of mustard oil was approximately 8.5 million tonnes, while domestic consumption of edible oils reached around 25 million tonnes.
    • Economic Growth: Successful cultivation of GM mustard can contribute to economic growth in India. It can increase farm incomes and reduce the outflow of foreign exchange for edible oil imports. This is vital for strengthening India’s self-reliance and economic stability.
    • Sustainability: GM mustard’s potential for resource-efficient cultivation aligns with sustainability goals. It ensures that agricultural practices are more self-reliant in terms of resource utilization and environmental impact, a critical aspect for long-term agricultural sustainability.
    • Crop Diversification: The adoption of GM mustard, along with other crops, can diversify India’s agricultural output. Reducing dependency on a limited number of crops enhances food security and reduces vulnerability to external factors.

    Conclusion

    • The approval of DMH-11 marks a significant step towards harnessing this technology for the benefit of Indian farmers and the nation’s food security. However, this is just the beginning, and continued efforts to develop improved GM food crops are essential to enhancing the profitability of Indian agriculture.

    Also read:

    Genetically modified Crops and Transgenic Technology Needs Precautions