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Subject: Economics

  • Bharat 6G project: India plans to roll out high-speed internet by 2030

    6g

    Central idea: Despite over 45,000 Indian villages lacking 4G connectivity and ongoing efforts to build out 5G networks, the Indian government has set its sights on 6G.

    Why in news?

    • On March 22, PM Modi unveiled the Bharat 6G Vision Document, aimed at gearing up policymakers and the industry for the next generation of telecommunications.

    What is 6G?

    • 6G is the next generation of wireless telecommunications technology, which is expected to offer significantly faster data speeds, higher bandwidth, and lower latency than 5G.
    • It is still in the development stage, and its commercial rollout is not expected for several years.
    • However, many countries, including India, are already working on developing 6G technology and setting standards for its implementation.

    Differences between 6G and 5G

    • While 6G will offer faster loading times, improved video quality, and faster downloads, like every new generation of technology, it is unclear how much better it will be.
    • With latency already at the speed of light on existing networks, the benefits of 6G will depend on how different groups plan to use the spectrum.
    • Satellite constellations will join telecom towers and base stations, integrating networks and extending them to rural areas.

    Motivations for pursuing 6G

    • Encourage local industry: The Indian government hopes to encourage local manufacturing of telecom gear and support Indian companies and engineers in international discussions around standardization.
    • Avoid delay unlike 5G: India aims to avoid the delay in previous generations of telecommunications technology, which started rolling out in India years after countries like South Korea and the United States.
    • Increased connectivity: Additionally, the lower frequency in 4G networks may not be able to keep up with the demand for traffic with increasing data usage, making 6G a necessity.

    Government Plans for 6G

    • The Indian government plans to financially support “research pathways” to advance connectivity goals and establish an “apex body”.
    • India’s 6G goals include-
    1. Guaranteeing every citizen a minimum bandwidth of 100Mbps
    2. Ensuring every gram panchayat has half TB (terabyte) per second of connectivity, and
    3. Providing over 50 million internet hotspots with thirteen per square kilometre.

    Roadmap for 6G in India

    • The government plans to implement 6G in two phases.
    1. Phase 1 will support explorative ideas, risky pathways, and proof-of-concept tests.
    2. Phase 2 will support ideas and concepts that show promise for global acceptance, leading to commercialisation.
    • It would appoint an apex council to oversee the project and deal with standardisation, identification of spectrum, finances for research and development, and more
    • The council will finance research and development of 6G technologies by Indian start-ups, companies, research bodies, and universities.
    • Key focus of the council will be on new technologies such as Terahertz communication, radio interfaces, tactile internet, and artificial intelligence.
    • Bharat 6G Mission aligns with the national vision of Atmanirbhar Bharat and aims to make India a leading supplier of advanced telecom technologies that are affordable and contribute to the global good.

    Approaches to 6G in Other Countries

    • South Korea plans significant investments in 6G technology development, with a focus on laying the ground for key original technologies and domestic production of core equipment and components.
    • Countries are also starting to work together, with Japan and Germany planning a workshop to work on everything from “fundamental technologies to demonstrations.”
    • Europe’s equivalent of the Indian 6G Vision Document emphasizes leadership in strategic areas and establishing secure and trusted access to key technologies.

  • Foreign Trade Policy 2023: Aiming for $2 Trillion in Exports and Streamlining Processes

    Central Idea

     

    • Foreign Trade Policy 2023 focuses on shifting from an incentive to a tax remission-based regime, improving the ease of doing business, promoting exports through collaborations, and targeting emerging areas. It aims to achieve $2 trillion in export of goods and services by 2030, up from the previous $900 billion target.

     

    Foreign Trade Policy 2023

     

    1. Reducing Friction Points:
    • Automatic approvals for various permissions will streamline processes and reduce bureaucratic hurdles for businesses.
    • Reduced processing times for revalidation of authorizations (expected to be brought down to one day), extension of export obligation periods, advance authorizations, and EPCG issuances will expedite export activities.
    • Lowered application fees for MSMEs will provide financial relief and encourage more small businesses to participate in global trade.
    1. Supporting Export Growth:
    • Facilitating e-commerce exports will enable Indian businesses to tap into the growing global e-commerce market, estimated to reach $6.07 trillion by 2024.
    • Widening the basket covered under RODTEP will ensure more exporters benefit from tax remission, increasing competitiveness.
    • Boosting manufacturing, particularly in labor-intensive sectors, will create more jobs and enhance the export potential.
    • Rationalizing thresholds for exporter recognition will make it easier for businesses to be acknowledged and incentivized for their export performance.
    • Merchanting trade reform will promote services exports and reduce transaction costs.
    • Promoting the use of the rupee in international trade can help reduce exchange rate risks and increase trade with countries facing currency restrictions.
    1. One-time Amnesty Scheme: The amnesty scheme aims at faster resolution of trade disputes, clearing pending cases, and improving the overall trade environment.

     

    Supplemental Measures

     

    • Boost to domestic manufacturing: Lowering import tariffs will make raw materials and intermediate goods more affordable, boosting domestic manufacturing and export competitiveness.
    • Competitive Indian goods and services: Ensuring a competitive exchange rate will enhance the affordability of Indian goods and services in global markets.
    • FTA’s: Signing broader and deeper free trade agreements can open new markets for Indian exporters and attract foreign investments.

     

    Conclusion

     

    • The Foreign Trade Policy 2023 comes at a time of global uncertainty, but with India’s small share in global trade (around 1.8% in merchandise exports and roughly 4% in services), there is significant room for improvement. The new policy, along with additional measures, can enhance the country’s trade performance and achieve the ambitious $2 trillion export target by 2030. However, it is crucial to monitor the policy’s implementation and address potential challenges for businesses to fully reap the benefits.

  • Key highlights of the Foreign Trade Policy, 2023

    foreign trade policy

    Union Minister of Commerce and Industry has launched the Foreign Trade Policy 2023.

    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

    Overview of the FTP, 2023

    • FTP to provide the policy continuity and a responsive framework
    • Approach of FTP: From Incentive to Remission
    • Introduces scheme for remission of duties, taxes and govt levies on export goods
    • Digitisation of applications pertaining to FTP
    • Automatic system-based approval of FTP applications
    • Pilot introduced for cutting processing of applications related to advance authorisation to 1 day
    • Norms for recognition as Star Trading Houses eased
    • Promotes trade in Indian Rupee
    • Introduces provisions for merchanting trade
    • Dairy sector to be exempted from maintaining average export obligation * Battery electric vehicles; vertical farming equipment & green hydrogen eligible for reduced obligation under Export Promotion Capital Goods (EPCG) scheme
    • Special advance authorization scheme extended for apparel & clothing sector
    • Extends all FTP benefits to e-commerce exports
    • Value limit for exports through courier service increased from Rs 5 lakh to Rs 10 lakh per consignment
    • Focus on engaging with states & districts through Districts as Export Hubs initiative
    • Aims at streamlining export of dual use items under SCOMET policy
    • Introduces amnesty scheme for one-time settlement of default in export obligation by advance authorisation and EPCG authorisation holders
    • FTP to be dynamic and responsive to the emerging trade scenario
    • Restructuring of Department of Commerce on the anvil to make it future-ready

     

    Key highlights

    (1) Process Re-Engineering and Automation

    • The policy emphasizes export promotion and development, moving away from an incentive regime to a regime which is facilitating, based on technology interface and principles of collaboration.
    • Reduction in fee structures and IT-based schemes will make it easier for MSMEs and others to access export benefits.
    • Duty exemption schemes for export production will now be implemented through Regional Offices in a rule-based IT system environment, eliminating the need for manual interface.

    (2) Towns of Export Excellence

    • Four new towns have been designated as Towns of Export Excellence (TEE) in addition to the existing 39 towns.
    • The TEEs will have priority access to export promotion funds under the Market Access Initiative (MAI) Scheme.
    • It will be able to avail Common Service Provider (CSP) benefits for export fulfilment under the EPCG Scheme.

    (3) Recognition of Exporters

    • Exporter firms recognized with ‘status’ based on export performance will now be partners in capacity-building initiatives on a best-endeavour basis.
    • 2-star and above status holders would be encouraged to provide trade-related training based on a model curriculum to interested individuals.

    (4) Promoting Export from the Districts

    • The FTP aims at building partnerships with State governments and taking forward the Districts as Export Hubs (DEH) initiative.
    • This would promote exports at the district level and accelerate the development of grassroots trade ecosystem.

    (5) Streamlining SCOMET Policy

    • India is placing more emphasis on the “export control” regime.
    • A robust export control system in India would provide access of dual-use High end goods and technologies to Indian exporters while facilitating exports of controlled items/technologies under SCOMET from India.

     

    (6) Facilitating E-Commerce Exports

    • Various estimates suggest e-commerce export potential in the range of $200 to $300 billion by 2030.
    • FTP 2023 outlines the intent and roadmap for establishing e-commerce hubs and related elements such as payment reconciliation, book-keeping, returns policy, and export entitlements.
    • As a starting point, the consignment wise cap on E-Commerce exports through courier has been raised from ₹5Lakh to ₹10 Lakh in the FTP 2023.

    (7) Facilitation under Export Promotion of Capital Goods (EPCG) Scheme

    The government has made several changes to the Foreign Trade Policy, including:

    • Adding PM MITRA scheme for textile and apparel parks to EPCG’s Common Service Provider Scheme
    • Exempting dairy sector from maintaining Average Export Obligation
    • Adding green technologies such as BEVs, vertical farming equipment, and rainwater harvesting to EPCG’s reduced Export Obligation requirement.

    (8) Facilitation under Advance authorization Scheme

    • DTA (Domestic Tariff Area) units can access the Advance Authorization Scheme for duty-free import of raw materials for manufacturing export items, and it can be used for domestic and export production.
    • The Special Advance Authorization Scheme has been extended to the Apparel and Clothing sector to facilitate prompt execution of export orders.
    • The Self-Ratification Scheme for fixation of Input-Output Norms has been extended to 2-star and above status holders.

    (9) Merchanting trade

    • The FTP 2023 has introduced provisions for merchanting trade, which allows the shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary.
    • This will be subject to compliance with RBI guidelines, and it won’t be applicable for goods/items classified in the CITES and SCOMET list.
    • This is expected to allow Indian entrepreneurs to convert certain places into major merchanting hubs.

    (10) Amnesty Scheme

    • The government is introducing a special one-time Amnesty Scheme under the FTP 2023 to address default on Export Obligations and provide relief to exporters who have been unable to meet their obligations under EPCG and Advance Authorizations.
    • All pending cases of default in meeting Export Obligation (EO) of authorizations can be regularized on payment of all customs duties that were exempted in proportion to unfulfilled Export Obligation.
    • The interest payable is capped at 100% of these exempted duties under this scheme, and no interest is payable on the portion of Additional Customs Duty and Special Additional Customs Duty.

     

  • Competition (Amendment) Bill passed in Lok Sabha

    The Lok Sabha passed the Competition (Amendment) Bill, 2023, which could pose new challenges for global technology companies.

    About Competition Act, 2022

    • The Competition Act, 2002 was passed by the Parliament in the year 2002, to which the President accorded assent in January, 2003.
    • It was subsequently amended by the Competition (Amendment) Act, 2007.
    • In accordance with the provisions of the Amendment Act, the Competition Commission of India (CCI) and the Competition Appellate Tribunal (COMPAT) have been established.
    • The CCI is now fully functional with a Chairperson and six members.

    Changes brought by the Amendment

    (1) Penal powers to CCI

    • It grants the CCI the authority to penalize entities found engaging in anti-competitive behavior based on their global turnover, rather than just their annual domestic turnover, which was the case previously.

    (2) Turnover Definition

    • The definition of “turnover” has been a widely debated subject in the competition law landscape.
    • The Supreme Court had previously fixed the criteria for determining turnover in competition law contraventions, holding that it should be the “relevant turnover,” i.e., turnover derived from the sales of goods or services.

    (3) Mergers and acquisition

    • The CCI will have greater authority in mergers and acquisitions worth more than Rs 2,000 crore.
    • Additionally, the time limit for approval of mergers and acquisitions has been reduced from 210 days to 150 days.

    Impact on Tech Companies

    • While the provision on global turnover will not be exclusively applicable to tech companies, they are likely to be the most affected by it, given the nature of their business that operates across geographies.
    • Typically, the revenue earned from these companies’ India operations is much smaller than their income in other regions, such as the US and Europe.

  • Issues with new Quality Control Orders for fibres

    quality

    Central idea

    • Quality Control Orders (QCO) have been issued for fibres like cotton, polyester, and viscose to control the import of sub-quality and cheaper items and to ensure that customers get quality products.
    • The QCOs are made mandatory for some and yet to be finalized for others.

    What is the move?

    • The Bureau of Indian Standards (BIS) will issue certificate to manufacturers of viscose staple fibre (VSF) who comply with its standards (IS17266: 2019).
    • The hallmark is made mandatory.

    Why are fibres covered under QCOs?

    • The Indian textile and clothing industry consumes both indigenous and imported fibres and filaments.
    • The imports are for different reasons, such as cost competitiveness, non-availability in the domestic market, or to meet a specified demand of the overseas buyer.
    • The main aim of the QCO is to control the import of sub-quality and cheaper items and to ensure that customers get quality products.

    Reasons behind

    • India’s move to introduce a draft of Quality Control Orders (QCO) aims to curb a Chinese import surge and boost exports to western markets.

    What challenges does the new mandate bring?

    • Supply chain disruption: India imports annually 50,000 – 60,000 tonnes of viscose fibre and its variants such as Modal and Tencel LF from nearly 20 countries. In the case of polyester, almost 90,000 tonnes of polyester fibre and 1.25 lakh tonnes of POY (Polyester Partially Oriented Yarn) are imported annually.
    • Unease of doing business: Getting the certificate from the BIS involves a cost and hence not all are interested in getting the certificate.
    • Value chain disruption: The Indian textile manufacturers who are dependent on these suppliers for the raw material will have to either look at other suppliers or lose orders.
    • Material shortage: Some varieties of fibres have special functional properties and separate HS (Harmonised Commodity Description and Coding System) code when imported. The textile industry imports just small quantities of such fibres, and restricting their availability will deny Indian consumers of niche products.
    • Prospected price rise: Several textile units use lower-grade fibres that are generated from rejects and wastes and these are not covered under the QCO.

    Textile industry’s expectation

    • The industry is of the view that the import of speciality fibres that are used as blends with other fibres should be made available without restriction.
    • Any overseas applicant for the BIS certificate should get it without delay after inspection.

    Way forward

    • Polyester-spun yarn mills in the MSME sector need capital support to set up labs to test products.
    • The QCO should be implemented only after the ambiguities are cleared and the anomalies set right, says the industry.

  • SMART-PDS: The Transformative Potential Beyond Food Security

    Central Idea

    • India’s National Food Security Act, 2013 (NFSA) governs the largest beneficiary-centric program, the Targeted Public Distribution System (TPDS), providing food security to 81.35 crore persons every month. The government is now implementing the Scheme for Modernisation and Reforms through Technology in Public Distribution System (SMART-PDS). This initiative generates vast amounts of data, which can be leveraged to improve the delivery of other central schemes and welfare programs.

    Existing challenges for TPDS

    • Leakage and diversion of food grains: One of the most pressing issues in the TPDS is the leakage and diversion of food grains meant for beneficiaries, leading to corruption and losses in the system. This problem is primarily due to poor monitoring, lack of transparency, and weak enforcement mechanisms.
    • Inaccurate targeting of beneficiaries: The TPDS often suffers from errors in identifying eligible beneficiaries, resulting in the exclusion of deserving households and the inclusion of ineligible ones. This misidentification can be attributed to outdated data, lack of verification mechanisms, and manipulation of records.
    • Inefficient supply chain management: TPDS faces logistical challenges in transporting, storing, and distributing food grains across the vast country. Inadequate storage facilities, poor transportation infrastructure, and delays in procurement and distribution contribute to wastage and inefficiencies in the system.
    • Limited portability of benefits: Until recently, the TPDS lacked portability, which meant that beneficiaries could only access their food grains from designated Fair Price Shops (FPS) in their home states. This restriction made it difficult for migrant workers and their families to access their entitled benefits.
    • Lack of transparency and accountability: Corruption, fraud, and manipulation of records are pervasive issues in the TPDS, partly due to the lack of transparency and accountability in the system. The absence of real-time monitoring and the reliance on manual record-keeping exacerbate these problems.
    • Technological constraints: Many states and union territories in India face technological constraints in implementing IT-based solutions for TPDS operations. Limited access to IT hardware, software, and technical manpower can hinder the adoption of technology-driven reforms, such as electronic Point of Sale (ePoS) devices and biometric authentication systems

    What is SMART-PDS?

    • SMART-PDS (Scheme for Modernisation and Reforms through Technology in Public Distribution System) is an initiative by the Indian government aimed at improving the efficiency, transparency, and accountability of the country’s Targeted Public Distribution System (TPDS).

    The key objectives of the SMART-PDS initiative

    • Preventing leakage of food grains: By leveraging technology, SMART-PDS aims to reduce diversion and pilferage of food grains, ensuring that the intended beneficiaries receive their due share of food subsidies.
    • Enhancing efficiency in the distribution chain: The initiative focuses on streamlining the supply chain from procurement to distribution by incorporating technology-driven solutions, such as electronic Point of Sale (ePoS) devices, real-time monitoring, and tracking systems.
    • Data-driven decision-making: Data Analytics on the TPDS ecosystem generates critical information about beneficiaries, food security needs, and migration patterns, addressing the long-standing challenge of credible and dynamic data for efficient delivery of central welfare schemes to vulnerable sections of society.
    • Convergence and integration with AI: The national leadership’s push for trans-ministerial convergence and AI integration can be a game-changer for both people and governments, bringing accountability across all programs.
    • Technology-led PDS reforms: The Centre plans to use data analytics, BI platforms, and ICT tools to standardize PDS operations through technology integration with FCI, CWC, transport supply chain, Ministry of Education, Women and Child Development, and UIDAI. This is expected to overcome state-level technological limitations in PDS operations and institutionalize an integrated central system for all PDS-related operations across states/UTs.
    • Aadhaar authentication and ePoS devices: With 100% digitization of ration cards and the installation of ePoS devices, nearly 93% of the total monthly allocated foodgrains are distributed through Aadhaar authentication mode.

    Integrated Management of Public Distribution System (IM-PDS)

    • The government has launched the IM-PDS to implement One Nation One Ration Card (ONORC), create a national-level data repository, and integrate data infrastructure/systems across ration card management, foodgrain supply chain, and FPS automation.
    • The ONORC plan has recorded over 100 crore portability transactions since its inception in 2019.

    SMART-PDS benefits beyond ration distribution

    • The data generated by SMART-PDS has become a tool for central ministries and state governments, benefiting initiatives like e-Shram Portal, Ayushman Bharat, and PM-SVANidhi Yojana.
    • The Ministry of Agriculture and Farmers’ Welfare (MoAFW) plans to use ONORC/ration card data to map beneficiaries, and seamless tracking of nutrition from ICDS centers to PM Poshan will become a reality with Aadhaar numbers for the newly born.

    Conclusion

    • The transformative potential of SMART-PDS goes beyond food security, enabling data-driven decision-making, convergence, and integration with AI for improved delivery of central schemes and welfare programs across India.

    Mains Question

    Q. Despite several efforts taken by the government the Targeted Public Distribution System still faces various challenges. In this backdrop discuss the new initiative of SMART-PDS and its key features

  • Z-Morh tunnel to be ready in April

    tunnel

    The crucial Z-Morh tunnel that connects Gagangir and Sonamarg on the Srinagar-Leh highway will be inaugurated next month in April.

    What is Z-Morh tunnel?

    • Z-Morh tunnel, also known as the Zoji-Morh Tunnel, is an under-construction tunnel located in the Indian state of Jammu and Kashmir.
    • The tunnel is being constructed at an elevation of 11,578 feet and is expected to provide all-weather connectivity to the Kashmir Valley.

    Location

    • The Z-Morh tunnel is located on National Highway 1D, which is the only road that connects the Kashmir Valley to the rest of India.
    • The tunnel is being constructed in the Zoji-Morh region, which is a high-altitude mountain pass located on the Srinagar-Leh Highway.

    It’s Construction

    • The Z-Morh tunnel is being constructed at a length of 6.5 km and is expected to be completed at a cost of around Rs. 2,000 crore.
    • The tunnel will have a two-lane carriageway and will be constructed using the latest tunnelling technology.
    • The project is being executed by the National Highways and Infrastructure Development Corporation Limited (NHIDCL).

    Significance

    • The tunnel is expected to provide all-weather connectivity to the Kashmir Valley, which is currently cut off from the rest of India for several months during the winter season due to heavy snowfall and avalanches.
    • The tunnel will also reduce the travel time between Srinagar and Leh by around four hours, as it will eliminate the need to cross the Zoji-Morh pass.

     

  • Digital Public Infrastructure (DPI): New Backbone of India’s Economy

    DPI

    Central Idea

    • India’s digital public infrastructure (DPI) is a unique marvel of our times that has brought together the government, regulators, private sector, volunteers, startups, and academia to create a superstructure that delivers consistent, affordable, and across-the-board value to citizens, government, and corporate sector alike.

    What is India’s digital public infrastructure (DPI)

    • India’s digital public infrastructure (DPI) refers to the collection of technological systems, platforms, and services that enable the Indian government, businesses, and citizens to interact digitally.
    • The DPI is often referred to as the India Stack, which was built through a unique partnership between the government, regulators, the private sector, selfless volunteers, startups, and academia/think tanks.
    • India Stack includes a number of building blocks such as Aadhaar (a biometric identification system), e-KYC (electronic know your customer), UPI (Unified Payments Interface), and DigiLocker (a cloud-based document storage system).

    DPI

    DPI in India

    • India, first country to develop all three foundational DPIs: India through India Stack became the first country to develop all three foundational DPIs digital identity (Aadhar), real-time fast payment (UPI) and a platform to safely share personal data without compromising privacy (Account Aggregator built on the Data Empowerment Protection Architecture or DEPA)
    • Techno-legal regulatory frameworks in India: Techno-legal regulatory frameworks are used to achieve policy objectives through public-technology design.
    • For example: India’s DEPA offers technological tools for people to invoke the rights made available to them under applicable privacy laws. Framed differently, this techno-legal governance regime embeds data protection principles into a public-technology stack.
    • DPI most feasible model: DPI has emerged as the most feasible model due to its low cost, interoperability and scalable design, and because of its safeguards against monopolies and digital colonisation.

    Aadhaar and the private sector

    • Rebirth of Aadhaar: Prime Minister Narendra Modi’s vision enabled Aadhaar to become the rocket ship for launching good governance in India. Currently, over 1,700 Union and State government schemes use Aadhaar.
    • Aadhaar and the private sector: After the Supreme Court’s affirmation of privacy rights, Aadhaar is gradually being opened to the private sector. Aadhaar holders can voluntarily use their Aadhaar for private sector purposes, and regulated entities can store Aadhaar numbers using secure vaults. These changes are leading to the next leapfrogging of India Stack.
    • Three changes: The next leapfrogging of the India Stack, with a dynamic political executive and inspired volunteers, will happen with three changes, voluntary usage of Aadhaar for private sector purposes, sharing of Aadhaar data between government departments, and the creation of a new private sector-friendly UIDAI.

    DigiYatra and DigiLocker

    • India Stack’s greenfield market innovation potential can unlock various services such as DigiYatra, which offers a free biometric-enabled seamless travel experience through facial recognition systems, and DigiLocker, which has 150 million users and six billion stored documents.
    • Plans are afoot to expand DigiLocker to many countries around the world.

    Facts for prelims

    Initiative Description Launched by
    DigiLocker Cloud-based document storage platform for citizens Ministry of Electronics and Information Technology
    DigiYatra Digital travel experience initiative for air travellers Ministry of Civil Aviation
    DigiSeva Digital service delivery platform for government services Ministry of Electronics and Information Technology
    DigiGaon Digital village initiative to provide digital infrastructure Ministry of Electronics and Information Technology
    DigiShala Digital classroom initiative to promote digital education Ministry of Human Resource Development
    DigiPay Digital payments platform for government services National Payments Corporation of India
    DigiSaksham Digital literacy initiative to empower citizens Ministry of Electronics and Information Technology
    DigiDhan Digital payments and financial inclusion initiative Ministry of Electronics and Information Technology
    DigiSangrah Digital repository of cultural resources for citizens Ministry of Culture
    DigiMuseums Digital initiative to showcase Indian museums online Ministry of Culture

    Impact of unified payment interface (UPI)

    • The unified payment interface UPI which is breaking records under the visionary leadership at the National Payments Corporation of India
    • UPI has now crossed eight billion transactions per month and transacts a value of $180 billion a month, or about a staggering 65% of India’s GDP per annum.

    DPI

    Conclusion

    • India’s Digital Public Infrastructure (DPI) can be seen as India’s second war for independence, this time for economic freedom from the daily struggles of transactions and bureaucracy. DPI has emerged as the new backbone of India’s economy, propelling it towards the goal of achieving a $25 trillion economy by the 100th year of India’s political independence. With the convergence of ChatGPT and India Stack, we can only imagine the tremendous progress and innovations that could spark a new era of economic growth and development, much like the Cambrian explosion in evolutionary history.

    Mains question

    Q. What is India’s digital public infrastructure (DPI)? Explain the building blocks of the India Stack and their significance.

  • Gravity-Operated Electricity Generation from Defunct Mines

    gravity

    Central idea: Green Gravity is an Australian renewable energy company that has developed a unique scheme to generate electricity. The company’s plan involves using defunct mines, such as the Kolar Gold Fields (KGF) in Karnataka, India, to produce reliable and cost-effective renewable energy.

    The breakthrough: Gravity-Operated Weighted Blocks

    • It uses a weighted block of up to 40 tonnes up to the top of a mine shaft using renewable power during the day when it is available.
    • When backup power is required, the heavy block will fall under gravity, powering a generator via a connected shaft or rotor.
    • The depth to which the block falls can be determined via a braking system, giving control over the amount of power produced.

    Comparison to Pumped Hydropower Storage

    • Green Gravity’s approach is similar to the well-established approach of “pumped hydropower” storage.
    • In this approach, water is pumped upstream electrically into a reservoir and released downhill to move a turbine and produce electricity when needed.

    Need for such technology

    • Renewable energy, such as solar and wind power, often faces the challenge of being unreliable during nights or windless days.
    • Charging a battery for backup power is very expensive and inefficient.

    Advantages of Weighted Blocks over Water

    • Using weighted blocks instead of water means that decommissioned mines can be put to use, and the environmental costs and challenges of moving water up can be avoided.
    • This approach can also mean less reliance on coal-produced power and access to reliable power.

    Potential Use in KGF

    • The Kolar Gold Fields in Karnataka, India, is an iconic but defunct gold mine that has the potential to be used for renewable energy production.
    • The weighted block apparatus could produce up to thousands of megawatt-hours of power from the mine’s deep shafts, some of which run nearly 3,000 metres.

     

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  • Prices of Essential Medicines set to hike

    medicine

    Prices of 384 essential drugs and over 1,000 formulations are set to see a hike of over 11%, due to a sharp rise in the Wholesale Price Index (WPI).

    Implications for customers

    • Annual hikes in the prices of drugs listed in the National List of Essential Medicines (NLEM) are based on the WPI.
    • The price surge will mean that consumers have to pay more for routine and essential drugs, including painkillers, anti-infection drugs, cardiac drugs, and antibiotics.

    What are Essential Medicines?

    • As per the World Health Organisation (WHO), Essential Medicines are those that satisfy the priority healthcare needs of the population.
    • Ministry of Health and Family Welfare hence prepared and released the first National List of Essential Medicines (NLEM) of India in 1996 consisting of 279 medicines.
    • The list is made with consideration to disease prevalence, efficacy, safety and comparative cost-effectiveness of the medicines.
    • Such medicines are intended to be available in adequate amounts, in appropriate dosage forms and strengths with assured quality.
    • They should be available in such a way that an individual or community can afford.

    NLEM in India

    • Drugs listed under NLEM — also known as scheduled drugs — will be cheaper because the National Pharmaceutical Pricing Authority (NPPA) caps medicine prices and changes only based on wholesale price index-based inflation.
    • The list includes anti-infectives medicines to treat diabetes such as insulin — HIV, tuberculosis, cancer, contraceptives, hormonal medicines and anaesthetics.
    • They account for 17-18 per cent of the estimated Rs 1.6-trillion domestic pharmaceutical market.
    • Companies selling non-scheduled drugs can hike prices by up to 10 per cent every year.
    • Typically, once NLEM is released, the department of pharmaceuticals under the ministry of chemicals and fertilisers adds them in the Drug Price Control Order, after which NPPA fixes the price.

    Who regulates Drugs prices?

    • The NPPA was set up in 1997 to fix/revise prices of controlled bulk drugs and formulations and to enforce price and availability of the medicines in the country, under the Drugs (Prices Control) Order, 1995-2013.
    • Its mandate is:
    1. To implement and enforce the provisions of the DPCO in accordance with the powers delegated to it
    2. To deal with all legal matters arising out of the decisions of the NPPA
    3. To monitor the availability of drugs, identify shortages and to take remedial steps
    • The NPPA is also mandated to collect/maintain data on production, exports and imports, market share of individual companies, profitability of companies etc., for bulk drugs and formulations and undertake and/ or sponsor relevant studies in respect of pricing of drugs/ pharmaceuticals.

    How does the pricing mechanism work?

    • Prices of Scheduled Drugs are allowed an increase each year by the drug regulator in line with the Wholesale Price Index (WPI) and the annual change is controlled and rarely crosses 5%.
    • But the pharmaceutical players pointed out that over the past few years, input costs have flared up.
    • The hike has been a long-standing demand by the pharma industry lobby.
    • All medicines under the NLEM are under price regulation.

     

    Try this MCQ

    Q. Which of the following is not a mandate of the National Pharmaceutical Pricing Authority (NPPA)?

    A) Fixing and revising prices of controlled bulk drugs and formulations

    B) Enforcing price and availability of medicines in the country

    C) Monitoring the availability of drugs and taking remedial steps

    D) Regulating the import and export of pharmaceutical products

     

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