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Subject: Economics

  • What is the Amul versus KMF controversy?

    amul

    Central idea

    • Amul, the country’s largest dairy player, announced on April 5 that it would supply milk and curd through e-commerce portals in Bengaluru.
    • The announcement was met with opposition from Kannadigas, who saw it as an attempt to threaten the iconic Nandini milk brand of the Karnataka Milk Federation (KMF).

    Political Controversy

    • The Amul vs. KMF row turned into a political tool in poll-bound Karnataka.
    • Dissenting sections expressed fears that Amul would eat into the market of Nandini and pose a threat to its business in the state.
    • The ruling government was accused of attempting to privatize the milk sector and “finish off” a home-grown product.

    A quick backgrounder

    • Both Amul Dairy and KMF are successful examples of adopting the three-tiered ‘Anand’ model of dairy procurement.
    • Farmers supply milk to dairy cooperatives at the village level, which is then procured by milk unions at the district and state levels.
    • There are 16 district milk unions in Karnataka supplying milk to the dairy cooperatives.
    • KMF provides competitive prices to dairy farmers.
    • KMF corners most of the market share for surplus milk provided by farmers in the state.

    Anand Model of Dairy Procurement

    • It is a system of milk collection and distribution pioneered by the Amul cooperative in Anand, Gujarat, India.
    • This model has revolutionized the dairy industry in India by providing a fair price to dairy farmers, eliminating the need for middlemen, and improving the quality of milk.
    • Under the Anand model, farmers are organized into dairy cooperatives, which collect and market their milk.
    • The cooperatives are managed by the farmers themselves and are supported by the infrastructure and marketing expertise of the Amul cooperative.
    • The farmers are paid a fair price for their milk, which is based on its quality and quantity, and they receive regular payments for their milk.

    Why are people protesting?

    • Overpricing: The pricing difference between Amul’s toned milk and Nandini’s toned milk was highlighted, with Amul’s milk priced at ₹54 per litre and Nandini’s at ₹39 per litre.
    • Unhealthy competition: KMF’s online presence in the state could create unhealthy competition with Amul’s online presence, despite the pricing difference, according to the federation.

    The turf war

    • The KMF is the second-largest milk cooperative in India after Amul.
    • While Amul and KMF compete in neutral regions like Mumbai, Nagpur, Goa, Hyderabad, and Chennai markets, they have not clashed on home turfs.
    • Karnataka is a milk-excess market that meets the needs of the state and exports surplus to other states.
    • KMF plans to write to the National Dairy Development Board, requesting it to direct Amul not to venture into the Bengaluru market and concentrate on milk-deficient states.

    Clarification by Amul

    • Amul clarified that it was launching its fresh milk and curd only for a niche market through e-commerce channels and not through the mass market distribution network.

     

  • Zojila Tunnel to revolutionise connectivity to Ladakh

    zojila

    Union Transport Minister recently visited the Zojila Tunnel In Jammu & Kashmir which is Asia’s longest as well as highest.

    About Zojila Tunnel

    • The Zojila tunnel is an upcoming 14.15 km road tunnel that will connect Srinagar and Leh in the Union Territory of Ladakh.
    • It is being constructed as part of a project to improve connectivity in the region, with a connecting tunnel from Z-Morh to the Zojila tunnel also being built.
    • The tunnel is being built at a cost of more than Rs 4,600 crore and is expected to be completed by December 2023.

    Need for the tunnel

    • All weather connectivity: The Zojila Pass is closed during harsh winters due to fears of avalanches, landslides, and slippery roads, cutting off areas beyond the pass from the rest of the country for at least five months.
    • Military mobilization: The upcoming Zojila tunnel will provide perennial connectivity between Ladakh and the rest of the country and benefit both civilians and the military.
    • Time and effort saving: The distance from Baltal to Minamarg, currently 40 km, will come down to 13 km, with travel time expected to be cut by an hour and a half.

  • Lessons Learned: Transition To A Self-reliant Clean Energy System

    Central Idea

    • Lessons learned from the liberalization of upstream petroleum sector can guide India’s transition to a self-reliant clean energy system.

    Background

    • In 1980, then-Prime Minister Indira Gandhi took a significant step in liberalizing the upstream petroleum sector in India. This move aimed to reduce the country’s reliance on external sources for petroleum and protect it from supply shocks. However, the liberalization did not bridge the gap between domestic demand and indigenous supply.
    • In 2020, Prime Minister Narendra Modi introduced the production-linked incentive (PLI) scheme to promote investment in minerals, components, and equipment required for the generation and consumption of clean energy. This decision was driven by the strategic imperative to transition to a self-reliant clean energy system and reduce dependence on external sources of energy.

    Bridging the gap between demand and supply in the clean energy sector

    • Demand and supply gap: The liberalization of upstream petroleum did not bridge the gap between the domestic demand for petroleum and indigenous supply.
    • Capital is not enough: The clean energy sector must not presume that the availability of technical talent and capital will be enough to create a world-class hub for the manufacture of batteries, solar cells, wafers, and modules.

    Efficient Implementation of Technology in Clean Energy Sector

    • India’s oil and gas producing average: The recovery rate of oil and gas from India’s producing fields has averaged between 25-30%, while fields of comparable geology across the world have a recovery rate between 40-60%.
    • China’s dominance in clean energy value chain: China’s dominance of the clean energy value chain is because its process engineers have perfected the implementation of the several technological steps required to convert raw material into end product.

    Reduce entry barriers and improve business condition

    • India cannot compete on the size of the incentive package, and the endeavor should instead be to lower entry barriers, ease business conditions and remove the perception that India offers a high-cost operating environment.

    India’s Dependency on External Market and Two-Track Policy with China

    • India remains dependent on the external market for supplies of petroleum, but the country should desist from building a high-cost, domestic, clean energy hub that is forever dependent on subsidies.
    • India should continue with its two-track policy and strengthen its trading relationship with China.

    Conclusion

    • India can learn from the lessons of the last 40 years to transition to a self-reliant clean energy system. The country needs to focus on creating an enabling ecosystem, efficiently utilizing technology, and easing business conditions to attract international investment. India should focus on trading relationships and not build a high-cost, domestic clean energy hub dependent on subsidies.

    Mains Question

    Q. India’s clean energy sector has enormous potential for growth, however there is a gap between domestic demand and indigenous supply. What specific measures can India take to bridge this gap and emerge as global leader in renewable energy?

  • [pib] State Energy Efficiency Index, 2021-22

    energy

    The Union Minister of Power and New & Renewable Energy has released the report of State Energy Efficiency Index (SEEI) 2021-22.

    State Energy Efficiency Index

    • The SEEI 2021-22 has been developed by Bureau of Energy Efficiency (BEE) in collaboration with Alliance for an Energy Efficient Economy (AEEE).
    • SEEI 2021-22 consists of 50 indicators (common and programme-specific) spanning 7 sectors – buildings, industry, municipal services, transport, agriculture, DISCOMs, and cross-sector.
    • 36 states and union territories have been assessed for their energy efficiency progress in FY 2020- 21 and FY 2021-22 in SEEI 2021-22.
    • Based on their efforts and achievements, states have been classified as ‘Front runner’, ‘Achiever’, ‘Contender’, and ‘Aspirant’.

    Highlights of the 2021-22 report

    Category States
    Front Runner (>60 points) Andhra Pradesh, Karnataka, Kerala, Rajasthan, Telangana
    Achiever (50-60 points) Assam, Haryana, Maharashtra, Punjab

     

    Importance of SEEI

    • The SEEI improves data collection, enables cross-state collaboration, and develops energy efficiency program ideas.
    • It helps states identify areas for improvement, learn from best practices, and adopt an economy-wide approach to energy efficiency implementation.
    • By prioritizing energy efficiency, it aims at driving decarbonization efforts and achieving a more sustainable future.

    Key recommendations of the report

    The report outlines the following recommendations to help states drive change in EE which will contribute towards the fulfillment of SDGs and NDC:

    • Enabling fiscal assistance for energy efficiency in the focus sectors.
    • Developing institutional capacity in states and UTs to address emerging needs and challenges in energy efficiency implementation.
    • Enhancing cross-functional collaborations across financial institutions, energy service companies, and energy professionals in large-scale energy efficiency implementation in states.
    • Mainstreaming energy data reporting and monitoring across sectors.

    Back2Basics: Bureau of Energy Efficiency (BEE)

    • BEE was established by the Government of India on 1st March 2002 under the provisions of the Energy Conservation Act, 2001.
    • The primary objective of BEE is to reduce the energy intensity of the Indian economy by developing policies and strategies based on self-regulation and market principles.
    • BEE coordinates with designated consumers, designated agencies, and other organizations to perform its functions under the Energy Conservation Act.
    • The Energy Conservation Act provides for both regulatory and promotional functions for BEE.
    • BEE’s role includes recognizing, identifying, and utilizing existing resources and infrastructure to promote energy conservation and efficiency.
    • It works towards driving energy efficiency policies and programs at the state and local level, enabling cross-state collaboration and developing energy efficiency program ideas.

     

  • CSIR scientists identify Rare-Earth deposits in AP

    rare

    Scientists at the National Geophysical Research Institute (NGRI) in Hyderabad have discovered the presence of rare-earth elements (REEs) in Anantapur district, Andhra Pradesh.

    What are Rare-Earth Elements?

    • Rare-earth elements (REEs) are a group of 17 elements, including lanthanum, cerium, praseodymium, neodymium, yttrium, hafnium, tantalum, niobium, zirconium, and scandium.
    • These elements are widely used in modern electronics, such as smartphones, computers, jet aircraft, and other products, due to their unique magnetic, optical, and catalytic properties.
    • These elements are crucial components in various electronic devices and have industrial applications in sectors like imaging, aerospace, and defense.

    SHORE Project and discovery of REEs

    • The discovery was part of a study funded by the Council of Scientific and Industrial Research (CSIR) under a project called ‘Shallow subsurface imaging Of India for Resource Exploration’ (SHORE).
    • NGRI scientists found enriched quantities of REEs in “whole rock analyses”.
    • Drilling for at least a kilometer deep will help ascertain the consistency of the elements’ presence underground.

    Significance of the discovery

    • The discovery of REEs in Anantapur district is significant as these elements are in high demand worldwide, and their supply is limited.
    • REEs have become a subject of geopolitical concern due to their increasing demand and limited supply.
    • China is currently the world’s largest producer and exporter of rare-earth elements (REEs), accounting for more than 80% of global production.
    • The country has significant reserves of REEs and has invested heavily in mining and processing infrastructure.

  • Poverty Estimates: Issues With PLFS Data

    Central Idea

    • The claim of poverty reduction in India during the pandemic year of 2020-21 is contested due to discrepancies in data and survey design. The PLFS data is used to make this claim, and there are recent papers that have come up with divergent claims on trends in poverty, showing both a rapid decline in poverty as well as a sharp increase.

    Use of Comparable Estimates

    • Poverty estimates in India have always been based on consumption estimates from the NSO, particularly based on the consumption expenditure surveys (CES).
    • The last official poverty estimates were for 2011-12, even though a comparable consumption survey was conducted in 2017-18.

    What is Periodic Labour Force Survey (PLFS)?

    • PLFS is a large-scale household survey conducted by the National Statistical Office (NSO) of India.
    • It collects data on various aspects of the labour force in India, including employment, unemployment, and labour force participation rates. In addition to these labour force indicators, the PLFS also collects data on consumption expenditure, which can be used to estimate poverty levels.

    Issue with PLFS Data

    • Estimates are not comparable: The PLFS estimates of poverty are not comparable with those from the CES, as the PLFS estimates are based on a single question.
    • Consumption estimates: The issue of sensitivity of consumption estimates to survey design, the level of aggregation and details has been extensively written about and was at the heart of the Great Indian Poverty Debate of the early 2000s.
    • Details about consumption expenditure is not just relevant: The sensitivity to the details of questions asked to collect consumption expenditure is not just relevant across different surveys but also across different rounds of the PLFS.

    Poverty Trends

    • The first set of conclusions can be drawn for the period between 2011-12 and 2017-18.
    • Using the CES based full schedule and the leaked report for 2017-18, a rise in poverty can be seen.
    • For a similar time period, the single question asked in the earlier rounds of PLFS can be compared with the 2014-15 (72nd round) NSO survey on services and durable goods expenditure which had exactly the same question in the same block with the same instructions making them comparable to estimates from the PLFS from 2017-18 to 2019-20.
    • These suggest that the poverty headcount ratio was 27 per cent in 2014-15 and rose to 36 per cent in 2017-18, declining to 32 per cent in 2018-19 and remaining at that level in 2019-20.
    • Unfortunately, for the period during the pandemic (2019-20 to 2020-21) that the PM paper tries to address, it is difficult to say what happened based on available consumption data because of the questionnaire changes mentioned above.

    Impact on Policy

    • The absence of official estimates on poverty is also a reflection of the lack of political priority of the government on such a crucial indicator.
    • Currently, a survey on consumption expenditure is being canvassed by the NSO which again follows a completely new methodology and schedule. While it may provide another set of estimates of consumption expenditure, it is unlikely to help resolve the poverty debate.

    Conclusion

    • The issue of what happened to poverty after 2011-12 is crucial for policy. However, frequent interference in the statistical system through changes in survey and questionnaire design, suppression of data, and delaying the release of crucial data are making it difficult to have a correct assessment of reality. The absence of official estimates on poverty is a reflection of the lack of political priority of the government on such a crucial indicator.

  • RBI’s Pause On Repo Rate Hike: Concerns Over Inflation And Global Pressures Remain

    RBI

    Central Idea

    • The RBI has decided to not increase the repo rate amid continuing hikes by important central banks such as the US Federal Reserve (Fed) and European Central Bank (ECB), and domestic inflation concerns. However, if incoming data point to rising inflation risks, this decision could prove to be only a pause in the rate hiking cycle.

    The RBI’s decision to pause on rate hikes

    • The RBI feels that money market rates have effectively risen more than the 250-basis-point yank in the repo rate since May 2022, and hence it decided to pause and assess the impact of rate hikes.
    • The key reason behind the MPC decision is the expectation of a decline in inflation to 5.2% in the current fiscal, driven by a healthy rabi crop, normal monsoon, moderating international commodity prices, and the impact of rate hikes.
    • The RBI acknowledges the upside risks and stated its readiness to fight any unexpected rise in inflation.

    Impact on GDP growth

    • The RBI expects GDP growth to slow to 6% from 7% this fiscal as slowing global growth, domestic interest rates, and messy geopolitics bite.
    • Slowing global growth will be net negative for India’s exports, and the growing dependence on commodity exports makes India more vulnerable to global growth volatility.
    • Fiscal 2024 will, therefore, test the resilience of India’s domestic demand amid rising interest rates.

    Reasons for the expected cooling of consumer inflation

    • Fuel inflation expected to reduce: Fuel inflation is expected to reduce to 3% from a high of over 10% in the current fiscal because some easing of crude oil prices is likely as global growth slows down.
    • Decline in core inflation: Slowing domestic growth will ease core inflation from very sticky levels of over 6% last fiscal to 5.5% in the current one. However, the decline in core inflation will be limited as input cost pressures have not dissipated. To protect their margins, firms will continue to pass on input costs to end-consumer. Services inflation will also continue to exert pressure as the rotation of consumption demand from goods to services continues.
    • Moderate food inflation: Food inflation, which has a high weightage in the Consumer Price Index and has driven headline inflation in the past, is projected to moderate to slightly below 5%, assuming a normal monsoon. However, food inflation has always been volatile and carries upside risks largely because of climate-related factors affecting agriculture output and prices.

    How slowing global growth will have a negative impact on India’s exports?

    • The impact of the growth slowdown in the US and Europe is deeper than the recovery in China: The US and Europe have a combined GDP that is twice that of China. Therefore, the impact of the growth slowdown in the US and Europe will be deeper than the recovery in China. This will have a negative impact on India’s exports to the US and Europe.
    • India’s exports to the US and Europe are more than to China by a factor of six: India exports more to the US and Europe than to China by a factor of six. Therefore, the negative impact of the growth slowdown in the US and Europe will be felt more by India than by China.
    • India’s growing dependence on commodity exports makes it more vulnerable to global growth volatility: India’s exports of petroleum products and steel are growing, and this makes India more vulnerable to global growth volatility. As global growth slows down, demand for commodities is likely to decline, which will have a negative impact on India’s exports.

    External vulnerabilities

    • India’s external vulnerability is expected to decline with a narrower current account deficit (CAD) and modest short-term external debt.
    • The CAD is expected to narrow to 2% of GDP this fiscal from an estimated 2.5% last fiscal.

    Conclusion

    • The RBI’s decision to pause on rate hikes is driven by expectations of a decline in inflation. However, inflation risks remain, and the impact of rate hikes on GDP growth is expected to be significant. India’s external vulnerabilities are expected to decline, but the banking turmoil playing out amid interest rate hikes by important central banks and elevated debt levels remains a risk. The RBI’s decision to pause on rate hikes will be closely watched, and further rate hikes may be necessary if inflation risks persist.

    Mains Question

    Q. Enumerate the factors that led RBI to pause on rate hikes, and discuss the potential risks and impacts on the Indian economy?

  • Coastal Aquaculture Authority (Amendment) Bill, 2023

    aqua

    The Coastal Aquaculture Authority (Amendment) Bill 2023 was introduced in the Lok Sabha.

    What is Aquaculture?

    • Aquaculture essentially means, breeding, raising, and harvesting fish, shellfish, and aquatic plants.
    • In a nutshell, it’s farming in water.
    • Saline water along the coast has been found to be suitable for practising aquaculture which produces shrimp, majorly.
    • If aquaculture is not practised on this land, it will be left idle and uncultivated as it is not suitable for the cultivation of crops.
    • Aquaculture can be practised on about 12 lakh hectares in the country along the coast, of which only 14% has been utilized so far.

    Key highlights of the amendment

    • Decriminalisation of certain offences: The Bill aims to decriminalize the offences under the Coastal Aquaculture Authority Act.
    • Fine-tuning operational procedures: It seeks to promote ease of doing business and to fine-tune the operational procedures of the authority.
    • Promotion of environment-friendly coastal aquaculture: The Bill also aims to promote newer forms of environment-friendly coastal aquaculture, such as cage culture, seaweed culture, marine ornamental fish culture, and pearl oyster culture.
    • Create employment opportunities: These newer forms of coastal aquaculture have the potential to create additional employment opportunities.
    • Prevention of use of harmful substances in coastal aquaculture: The Bill also includes a provision to prevent the use of antibiotics and pharmacologically active substances that are harmful to human health in coastal aquaculture.

    About the Coastal Aquaculture Act

    • This Act was enacted in the year 2005 for the establishment an authority to regulate activities in this sector.
    • It is a parliamentary act that establishes the Coastal Aquaculture Authority (CAA) for the regulation and registration of coastal aquaculture farms in India.

    Overview

    • The CAA Act, of 2005 mandates the Central Government to take measures to regulate coastal aquaculture and ensure that it does not cause any harm to the coastal environment.
    • The guidelines prescribed by the government aim to promote responsible coastal aquaculture practices that protect the livelihood of various coastal communities.

    Key features

    • The CAA Act, 2005 provides for the establishment of the Coastal Aquaculture Authority to regulate the activities related to coastal aquaculture.
    • The Central Government is responsible for prescribing guidelines to regulate coastal aquaculture activities and ensure responsible practices.
    • The guidelines aim to protect the livelihood of coastal communities and prevent any harm to the coastal environment.
    • The Act also mandates the registration of coastal aquaculture farms to ensure their compliance with the guidelines.
    • The CAA is a strong force in enforcing the regulations and registration of coastal aquaculture farms in India.

    Significance

    • The Coastal Aquaculture Authority Act, of 2005 is significant in promoting responsible coastal aquaculture practices and protecting the livelihood of coastal communities.
    • The act ensures that coastal aquaculture activities are regulated and registered, which helps prevent harm to the coastal environment.

  • What is the Open-Source Seeds Movement?

    seed

    Central idea

    • The article discusses the concept of open-source software and its parallels with open-source seeds.
    • Richard Stallman pioneered the Free Software Movement and developed the General Public License (GPL) to protect users’ rights and prevent code misappropriation.
    • Farmers have been innovating and sharing seeds without intellectual property rights (IPR) claims for centuries.

    Backgrounder: Plant Breeders’ Rights

    • Plant breeders’ rights (PBR) granted exclusive rights to breeders and developers of new varieties.
    • Farmers’ rights were limited under this regime.
    • The TRIPS agreement established a global IPR regime over plant varieties.
    • The consolidation of the seed sector raised concerns about the freedom to innovate.

    Forms of IPR Protection in Agriculture

    • There are now two forms of IPR protection in agriculture: PBR and patents.
    • Together, they restrict farmers’ rights and the freedom to develop new varieties.
    • The use of genetically modified seeds and IP claims triggered many problems, including State intervention on Bt cotton seeds in India.
    • The decline of public sector breeding and the dominance of the private sector in the seed sector increased the need for alternatives.

    What are Open Source Seeds?

    • The success of open-source software inspired a solution for seeds.
    • In 1999, a Canadian plant breeder named T.E. Michaels suggested an approach to seeds based on the principles of open-source software.
    • In 2012, Jack Kloppenburg launched the Open Source Seeds Initiative (OSSI) in Wisconsin.
    • Agrecol launched another initiative in Europe, and similar programs have come up worldwide.

    Open Source Seeds Initiatives in India

    • In India, the Hyderabad-based Centre for Sustainable Agriculture (CSA), part of the Apna Beej Network, developed a model incorporated into an agreement between CSA and the recipient of the seed/germplasm.
    • CSA’s Open Source Seeds Initiative uses a contracts approach similar to Agrecol’s strategy.
    • The number of seed firms using open-source models and the crop varieties and seeds made available thereunder is small but growing.
    • India is yet to test and adopt it widely.

    Potential Applications of Open-Source Seeds

    • Open-source principles can help promote farmer-led participatory plant-breeding exercises.
    • Traditional varieties often lack uniformity and aren’t of excellent quality, but open-source principles can facilitate testing, improvisation, and adoption.
    • Open-source principles can be used in farmer-led seed conservation and distribution systems.
    • The government and other stakeholders can consider adopting this approach to more widely adopt traditional varieties.

  • Foreign Trade Policy 2023: India Needs To Adopt 21st-century Trade Policy Instruments

    Central Idea

    • The Foreign Trade Policy 2023 (FTP 2023) has been recently introduced, but it falls short of addressing the challenges that Indian exporters are likely to face in the global market. India needs to adopt 21st-century trade policy instruments such as product and process standards to improve the quality and efficiency of products.

    Foreign Trade Policy, 2023

    • The policy is dynamic and open-ended to accommodate the emerging needs of the time.
    • It aims to promote India’s overall exports, which has already crossed US$ 750 Billion.
    • The key approach to the policy is based on these 4 pillars:
    1. Incentive to Remission,
    2. Export promotion through collaboration – Exporters, States, Districts, Indian Missions,
    3. Ease of doing business, reduction in transaction cost and e-initiatives and
    4. Emerging Areas – E-Commerce Developing Districts as Export Hubs and streamlining SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) Policy

    FTP 2023’s inadequate focus on 21st-century trade policy instruments

    • 20th-century mindset: The FTP 2023’s primary focus is on regulating, prohibiting, and restricting trade, which is a 20th-century mindset. In contrast, most countries today rely on improving product quality and production efficiencies by rapidly infusing technology to expand their presence in global markets.
    • Focus on upgrading the current standards: India needs to focus on upgrading institutions, production facilities, and promoting the development and facilitation of trade to meet the current standards.

    Rejigging of export promotion schemes

    • Export promotion schemes: Export promotion schemes were modified after a WTO dispute settlement panel ruled against India in 2019, which found that these schemes provide export subsidies that are not allowed under WTO rules.
    • Remission of Duties: The Remission of Duties or Taxes on Export Products (RoDTEP) Scheme was launched in 2021 to neutralize the effect of taxes and duties included in exported goods. The Rajya Sabha’s Standing Committee on Commerce found several weaknesses in the scheme, and FTP 2023 should have responded to the recommendations.

    Developing districts as export hubs

    • FTP 2023 introduces the novel idea of developing districts as export hubs, which could help achieve the objective of balanced regional development.
    • However, the policy only speaks of setting up export promotion committees at the district and state/UT levels, with no mention of supporting efficient infrastructure.

    E-commerce and India’s readiness to engage in the WTO

    • E-commerce is a focus area of FTP 2023, but India has opposed discussions on extending the rules of the WTO in this area.
    • Moreover, advanced countries have been seeking data portability, which India has refused to accept.
    • It remains unclear whether the mention of e-commerce in FTP 2023 implies that India is ready to engage in the WTO on this matter.

    Conclusion

    • FTP 2023 falls short of addressing the challenges that Indian exporters are likely to face in the global market. It needs to focus on upgrading institutions, production facilities, and promoting the development and facilitation of trade, which requires the Directorate General of Foreign Trade (DGFT) to coordinate with all the standard-setting agencies of the government and relevant institutions in the private sector. Developing districts as export hubs could help achieve the objective of balanced regional development, but supporting efficient infrastructure is critical for the programme’s success.