Note4Students
From UPSC perspective, the following things are important :
Prelims level: Anti-microbial resistance (AMR)
Mains level: Anti-biotic Pollution, Anti-microbial resistance (AMR) and its impact
Context
- Almost half, or 43 per cent, of the world’s rivers are contaminated with active pharmaceutical ingredients in concentrations that can have disastrous ramifications on health. The industry must prioritize wastewater management and process controls to limit antibiotic pollution and Anti-microbial resistance (AMR). 18-22 November is observed as World Antimicrobial awareness week.
What is Anti-microbial resistance (AMR)?
- Antimicrobial resistance (AMR or AR) is the ability of a microbe to resist the effects of medication that once could successfully treat the microbe
- Antibiotic resistance occurs naturally, but misuse of antibiotics in humans and animals is accelerating the process.
- A growing number of infections – such as pneumonia, tuberculosis, gonorrhoea, and salmonellosis – are becoming harder to treat as the antibiotics used to treat them become less effective.
- It leads to higher medical costs, prolonged hospital stays, and increased mortality.
Importance of Pharma Industry
- Important sector of economy: The recently adopted Glasgow Climate Pact has called upon countries to facilitate the adoption of greener technologies to phase out the use of fossil fuels. The development and deployment of such technologies is also critical for the pharmaceutical sector that has formed the backbone of the growth of many economies including India.
- Improving the health outcomes: The Pharma sector plays a fundamental role in improving health outcomes through the invention of life-saving products.
- 20% of global supply of medication: Pivoting to sustainable waste management and process-control practices assumes acute significance in the Indian context. India already accounts for 20 per cent of the global supply of medication, making it the largest supplier of generic medicines worldwide.
- Pharmaceutical pollution in the country: Recently, widescale pharmaceutical pollution has been reported across the country, particularly in pharmaceutical hubs like Himachal Pradesh, Andhra Pradesh, and Telangana.
- Untreated waste release into rivers: The release of untreated effluents into the soil and water bodies add to the pollution of the environment during the manufacturing of various pharmaceuticals, including antibiotics. Further, untreated antibiotic residues also accelerate the build-up of antimicrobial resistance (AMR).
- High emission intensity: Pharma sectors emission intensity is 55 per cent more than the automotive sector.
- AMR is public health threat: AMR is often dubbed as one of the top 10 public health threats facing humanity. It occurs when disease-causing pathogens develop a resistance against the pharmaceuticals that could have neutralized them. In 2019, AMR accounted for more than half a million deaths in the European region and about five million globally.
- Accumulation of AMR in ecosystem: The build-up of AMR can happen due to several factors across the human, animal, and environmental ecosystems.
Government policies to prevent Anti-biotic pollution in India
- National Action Plan on AMR (NAP-AMR): India’s production capacity is all set to expand further with the government’s recent impetus on the domestic production of pharmaceuticals. Against this background, the country’s National Action Plan on AMR (NAP-AMR) called for limiting pharmaceutical pollution.
- Surveillance of residues discharged: Strategic Pillars 2 and 3 under the NAP-AMR focused on developing frameworks for the surveillance of residues discharged in the environment and developing a plan to reduce the environmental impact on AMR, respectively. However, this policy impetus is yet to translate into on-ground implementation.
- Benefits to manufacturers with greener practices: The government can take a cue from countries like the United Kingdom, Norway, Sweden and Germany, among others, which have policies in place that provide benefits to manufacturers with greener practices.
How pharmaceutical industry can improve its waste management?
- Use of innovative technologies: Adopting innovative technology and self-regulation can help the industry reduce its carbon footprint and minimize its environmental impact.
- State-of-art API technology: Centrient Pharmaceuticals Netherlands BV’s plant at Toansa, Punjab, where the adoption of state-of-art API technology led to a 60-62 per cent reduction in the plant’s carbon footprint.
- Regulating the discharge: The AMR Industry Alliance (AMRIA) has developed the Predicted No-Effect Concentrations (PNEC) criteria further to facilitate the industry in regulating its discharge of effluents.
- Strict compliance of guidelines: The compliance to PNEC value for Centrist’s oral API product line and supply chain has helped the company reduce the environmental impact of manufacturing.
Conclusion
- The containment of AMR in India is crucial for realizing several policy goals, including the United Nations Sustainable Development Goals. While collective action is needed from various stakeholders, the domestic pharmaceutical industry should also take the lead, especially in limiting antibiotic pollution.
Mains Question
Q. Explain the linkages between Anti-biotic pollution and anti-microbial resistance (AMR). How government and pharma industry join the hands to reduce the anti-biotic pollution?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Finance commission, NITI Aayog
Mains level: Issues with cooperative Federalism
Context
- NITI Aayog has not taken any major steps since its constitution to promote cooperative federalism. Contrary to its public statements on promoting cooperative federalism, the Government of India has been accused of doing exactly the opposite. The following instances clearly demonstrate as to how the central government’s policies have undermined the spirit of federalism and eroded the autonomy of the States.
Why the states are angry over hypocrisy of the Centre?
- Centre raises off budget borrowings states are restricted: The borrowings by corporations against State guarantees are mostly used for capital investment. The Centre has also been raising off Budget borrowings but mainly for meeting revenue expenditure.
- CAG report on extra budgetary resources: The Comptroller and Auditor General of India (C&AG) Report on the Compliance of FRBM Act for 2017-18 and 2018-19 pointed out as many as eight instances of meeting revenue expenditure through Extra Budgetary Resources (EBR).
- Unjustified limitations on states: Revenue expenditure met through EBR by the Centre amounted to ₹81,282 crore in 2017-18 and ₹1,58,107 crore in 2018-19. Such borrowings were not reflected in the Budget of the central government. In view of this, treating off Budget borrowings of State corporations as States’ borrowings retrospectively is totally unjustified.
- Special grants are not given to states: The Fifteenth Finance Commission, in its first report, had recommended a special grant to three States amounting to ₹6,764 crore to ensure that the tax devolution in 2020-21 in absolute terms should not be less than the amount of devolution received by these States in 2019-20. This recommendation was not accepted by the Union Government.
- Nutritional grants are accepted: the recommendation relating to grants for nutrition amounting to ₹7,735 crore was not accepted.
- Grants to states are refused by the Centre: A similar approach has been followed by the Union Government with regard to grants to States recommended by the Finance Commission for the period 2021-26.
- Sector and state specific grants: The sector specific grants and State specific grants recommended by the Commission amounting to ₹1,29,987 crore and ₹49,599 crore, respectively, have not been accepted. This clearly demonstrates that the Union Government has undermined the stature of the institution of the Finance Commission and cooperative federalism.
How borrowing of the states is controlled by the Centre?
- Changes in off budget borrowing norms: decision to treat off Budget borrowings from 2021-22 onwards serviced from the State budgets as States’ borrowings and adjusting them against borrowing limits under Fiscal Responsibility and Budget Management (FRBM) in 2022-23 and following years is against all norms.
- No recommendations by finance commission: This is the first time that the Government of India is proposing to treat off Budget borrowings as government borrowings retrospectively from 2021-22. The Government of India has indicated that such a decision is in accordance with the recommendation of the Finance Commission. In fact, there is no recommendation to this effect by the Fifteenth Finance Commission. The Finance Commission recommended that governments at all tiers may observe strict discipline by resisting any further additions to the stock of off Budget transactions.
- No amendment to FRBM act: It observed that in view of the uncertainty that prevails now, the timetable for defining and achieving debt sustainability may be examined by a high-powered intergovernmental group and that the FRBM Act may be amended as per the recommendations of this group to ensure that the legislations of the Union and the States are consistent. No such group has been appointed so far by the Centre.
Cess and Surcharge- A tool to raise revenue for Centre not available to the states
- Rising share of cess and surcharges: The government has been resorting to the levy of cesses and surcharges, as these are not shareable with the States under the Constitution. The share of cesses and surcharges in the gross tax revenue of the Centre increased from 13.5% in 2014-15 to 20% in the Budget estimates for 2022-23.
- States don’t get all share in divisible pool: Though the States’ share in the Central taxes is 41%, as recommended by the Fifteenth Finance Commission, they only get a 29.6% share because of higher cesses and surcharges.
- Undermining the purpose of cess: The C&AG in its Audit Report on Union Government Accounts for 2018-19 observed that of the ₹2,74,592 crore collected from 35 cesses in 2018-19, only ₹1,64,322 crore had been credited to the dedicated funds and the rest was retained in the Consolidated Fund of India. This is another instance of denying States of their due share as per the constitutional provisions.
- Increasing centrally sponsor scheme and burden on state: Committee after committee appointed by the Government of India has emphasised the need to curtail the number of Centrally Sponsored Schemes (CSS) and restrict them to a few areas of national importance. But, what the Government of India has done is to group them under certain broad umbrella heads (currently 28). In addition, in 2015, the Centre increased the States’ share in a number of CSS, thereby burdening States. Most of the CSS are operated in the subjects included in the State list. Thus, States have lost their autonomy.
- NITI Aayoge recommendations are not accepted: The Sub-Committee of Chief Ministers appointed by NITI Aayog has recommended a reduction in the number of schemes and the introduction of optional schemes. These recommendations have not been acted upon.
Conclusion
- Finance commission is balancing wheel of fiscal federalism. Share of states in central taxes may have increased but cess and surcharges have also increased. Off budget borrowing on states can lifted provided should reduce the unnecessary freebies in the state budget.
Mains Question
Q. Fiscal federalism is tilted in favour of Centre. Elaborate. How Cess and surcharges are discriminatory against the state governments?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Quasi-Judicial Bodies
Mains level: Quasi-Judicial Bodies and its Challenges
Context
- There is a class of quasi-judicial agencies that are not discussed in conversations on the pendency of cases. Their failure to administer speedy justice leads to harassment of citizens, besides abetting criminal activity by unscrupulous elements.
- Role of adjudicating the law: A quasi-judicial body is “an organ of Government other than a Court or Legislature, which affects the rights of private parties either through adjudication or rulemaking”.
- Not a court of law: It is not mandatory that a Quasi-Judicial Body has to necessarily be an organization resembling a Court of Law. For example, the Election Commission of India is also a Quasi-Judicial Body but does not have its core functions as a Court of Law.
- Some examples of Quasi-Judicial Bodies: Election Commission of India, National Green Tribunal, Central Information Commission (CIC), Lok Adalat etc.
Functioning of quasi-judicial bodies
- Supervise the administrative disputes: They primarily oversee the administrative zones. The courts have the power to supervise over all types of disputes but the quasi-judicial bodies are the ones with the powers of imposing laws on administrative agencies.
- Lessen the burden on courts: These bodies support to lessen the burden of the courts. Quasi-judicial activity is restricted to the issues that concern the particular administrative agency. Quasi-judicial action may be appealed to a court of law.
- Limited role of adjudication: Their powers are usually limited to a particular area of expertise, such as financial markets, employment laws, public standards, immigration, or regulation.
- Rules of justice are pre-determined: Awards and judgements of quasi-judicial bodies often depend on a pre-determined set of rules or punishment depending on the nature and gravity of the offence committed.
- Its award can be challenged in court: Such punishment may be legally enforceable under the law of a country it can be challenged in a court of law which is the final vital authority.
Problems faced by quasi-judicial authorities
- Understaffing of bodies: The maladies that these agencies suffer from are far graver than judicial set-ups, as they are staffed by revenue authorities who have several other functions. Usually, many of these offices are understaffed.
- More administrative and less judicial work: Their engagement with duties such as law and order, protocol, coordination and other administrative functions leaves them with much less time for court work.
- Limited access to records: Their access to court clerks and record keepers is limited. Computers and video recorders are not available in many of these courts. Only a few states such as Maharashtra, Madhya Pradesh and Rajasthan have electronic platforms for supporting activities such as the filing of cases, publication of cause lists and sending summons.
- Lack of knowledge about procedures: Several of the presiding officers lack proper knowledge of law and procedures which has landed many a civil servant in deep trouble in sensitive matters such as those related to arms licences.
- Data is unavailable: Data on the level of pendency or the speed of disposal is not compiled in many states. This is why there is scarcely any attempt to increase staff strength. There is hardly any public scrutiny say by the press or legislature.
How to improve the functioning of Quasi-judicial bodies?
- Priority of the government: The government should make the efficient functioning of these agencies a priority and clearly articulate its position on the issue.
- Collection of data is must: Detailed data on the functioning of these agencies must be collected and published from time to time at least annually.
- Digitization of judicial data: An electronic platform should be established to handle all ancillary work related to the administration of justice, such as filing of complaints, issue of summons, movement of case records between courts, issuing copies of the judgments and so on.
- Mandatory annual inspection: annual inspections of the subordinate courts should be made mandatory. This should be an important indicator for assessment by the superior authority.
- Study on functioning of this bodies: Interdisciplinary research on the functioning of these courts should be encouraged. This would identify the areas of improvement such as legal reforms or issue of clear guidelines.
- Time to time training of authorities: Regular training and orientation of the adjudicating authorities should be taken up from time to time.
- State performance index should be published: The state index of performance of these quasi-judicial courts be made and published.
- Online publication of awards by authorities: Important decisions, guidelines and directions could be compiled and published on the portal of the apex adjudicating forum such as the Board of Revenue.
- Rigorous induction training: More rigorous induction training of officials handling judicial work would help. The importance of judicial work should be instilled among the trainees and the skill and confidence in handling them should be developed.
- Procedural reforms: Procedural reforms such as minimizing adjournments, mandatory filing of written arguments and other such reforms proposed by bodies like the Law Commission for reform of the Civil Procedure Code should be adopted by these adjudicating bodies.
Conclusion
- Quasi-judicial bodies form the substantial institutions of judicial system. It is regularly side-lined when we talk about the judicial reforms. If we could make our quasi-judicial bodies function properly and efficiently, it will reduce the burden on High courts and Supreme court.
Mains Question
Q. Why the quasi-judicial bodies are underperforming in India? Which steps are needed to improve the functioning of quasi-judicial bodies?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Soft Loans
Mains level: India's soft loan diplomacy as against China's debt trap diplomacy
The volume of India’s soft loans to neighboring countries has increased from about $3 billion to almost $15 billion in the last eight years.
What are Soft Loans?
- A soft loan is a loan with no interest or a below-market rate of interest.
- Also known as “soft financing” or “concessional funding,” soft loans have lenient terms such as-
- Namesake interest rate
- Extended grace periods in which only interest or service charges are due
- Interest holidays
- Long tenure up to 50 years
- Soft loans are often made by multinational development banks such as the Asian Development Fund affiliates of the World Bank etc.
Why are soft loans popular?
- Diplomatic tool: Soft loans are often offered not only as a way to support developing nations but also to form economic and political ties with them.
- Economic benefit: Nations exchange credit in return of some important resources.
- Geopolitics: Soft loans have been an important diplomatic tool to sustain political influence in the neighborhood and beyond as well as counter the growing Chinese presence, especially in Africa.
Pros and cons of Soft Loans
- Pro: Breaks for Business– Soft loans offer favorable business opportunities.
- Con: Shaky Returns– The length of time it may take to repay a soft loan could mean the lender is tied to the borrower for an extended number of years.
Did India take any soft loan?
- For instance, in 2015, Japan offered a soft loan to India to cover 80% of the cost for a $15 billion fund a bullet train project at a less than 1% interest rate.
- This was done with the caveat that India would purchase 30% of the equipment for the project from Japanese companies.
- By the time the countries signed a formal agreement, Japan’s commitment increased to 85% of the cost, in the form of soft loans, for a then-estimated $19 billion project cost.
Using soft loans as a diplomatic tool
- The amount of development assistance India has offered to other nations in 2019-20 was more than twice what it had extended in 2011-12.
- However, such loans have usually gone to countries in Asia, Africa and Latin America that are lower down the economic strength ladder.
- India has extended a total of $27.8 billion in lines of credit since 2002-03.
Conclusion
- Extending development assistance is nothing new for India and about half of the foreign ministry’s budget is made up of grants and loans to foreign governments, especially India’s neighbours.
- For a country that for long had to rely on international loans to meet key development goals, India understands the diplomatic value of providing a helping hand.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM KISAN
Mains level: Success of the DBT schemes
The number of farmers who received the 11th installment of funds from the Prime Minister’s Kisan Samman Nidhi (PM-KISAN) had fallen by 67%.
What is PM-KISAN?
- The PM-KISAN Yojana is a government scheme through which, all small and marginal farmers will get up to Rs 6,000 per year as minimum income support.
- It is a Central Sector scheme with 100% funding from GoI. It has become operational since 1st December 2018.
- Under the PM-KISAN scheme, all landholding farmers’ families shall be provided with the financial benefit of Rs. 6000 per annum per family payable in three equal instalments of Rs. 2000 each, every four months.
- The definition of the family for the scheme is husband, wife, and minor children.
- State Government and UT administration will identify the farmer families which are eligible for support as per scheme guidelines.
- The fund will be directly transferred to the bank accounts of the beneficiaries.
Note: Aadhaar was made optional for availing the first instalment (December 2018 – March 2019). But now it is mandatory.
Who are NOT eligible for PM-KISAN?
The following categories of beneficiaries of higher economic status shall not be eligible for benefit under the scheme.
- All Institutional Landholders
Farmer families that belong to one or more of the following categories:
- Former and present holders of constitutional posts
- Former and present Ministers/ State Ministers and former/present Members of Lok Sabha/ Rajya Sabha/ State Legislative Assemblies/ State Legislative Councils, former and present Mayors of Municipal Corporations, former and present Chairpersons of District Panchayats.
- All serving or retired officers and employees of Central/ State Government Ministries
- All superannuated/retired pensioners whose monthly pension is Rs.10,000/-or more. (Excluding Multi-Tasking Staff / Class IV/Group D employees) of the above category
- All Persons who paid Income Tax in the last assessment year
- Professionals like Doctors, Engineers, Lawyers, Chartered Accountants, and Architects registered with Professional bodies and carrying out the profession by undertaking practices.
Note: It is not so easy to remember all such exclusions. But one must be able to recognize them by applying pure logic and thumb rule. This can be well understood from the PYQ given.
Plus, West Bengal is yet to implement the PM-KISAN scheme while the farmers have completed their registrations!
Why in news?
Ans. Fall in number of beneficiaries
- PM Kisan was one of the largest Director Benefits Transfer schemes in the world and certain higher income categories of farmer families were excluded from the benefits.
- But 67% reduction in overall beneficiaries clearly points to exclusion of eligible beneficiaries too.
- Only about three crore farmers in India had received all the 11 instalments.
How are states responsible?
- The responsibility of maintaining the data of beneficiaries, remained with the States.
- The Scheme extensively uses digital technologies to verify eligibility of farmers.
- States/ UTs upload the data of eligible farmers after verification of the farmers, in terms of eligibility and exclusion criterion prescribed under the scheme.
- The data of farmers so uploaded by States goes through several validations, through the portals of UIDAI, PFMS, Income Tax Portal and NPCI.
Try this PYQ:
Q.Under the Kisan Credit Card Scheme, short-term credit support is given to farmers for which of the following purposes? (CSP 2020)
- Working capital for maintenance of farm assets
- Purchase of combine harvesters, tractors and mini trucks
- Consumption requirements of farm households
- Construction of family house and setting up of village cold storage facility
- Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:
(a) 1,2 and 5 only
(b) 1,3 and 4 only
(c) 2,3,4 and 5 only
(d) 1, 2, 3 and 4
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Election Commissioner, ECI
Mains level: NA
Former secretary of the Ministry of Heavy Industries Arun Goel has been appointed as the Election Commissioner.
About Election Commission of India (ECI)
- The ECI is a constitutional body was established by the Constitution of India to conduct and regulate elections in the country.
- Article 324 of the Constitution provides that the power of superintendence, direction, and control of elections.
- The body administers elections to the Lok Sabha, Rajya Sabha, State Legislative Assemblies, State Legislative Councils and the offices of the President and Vice President of the country.
- Thus, the Election Commission is an all-India body in the sense that it is common to both the Central government and the state governments.
- The Election Commission operates under the authority of Constitution per Article 324 and subsequently enacted Representation of the People Act.
Composition of ECI
- The ECI was established in 1950 and originally only had one Chief Election Commissioner.
- Two additional Commissioners were appointed to the commission for the first time during the 1989 General Election, but they had a very short tenure, ending on 1 January 1990.
- The Election Commissioners are assisted by Deputy Election Commissioners, who are generally IAS officers.
- They are further assisted by Directors General, Principal Secretaries, and Secretaries and Under Secretaries.
- At the state level, Election Commission is assisted by the Chief Electoral Officer of the State, who is an IAS officer of Principal Secretary rank.
- At the district and constituency levels, the District Magistrates (in their capacity as District Election Officers), Electoral Registration Officers and Returning Officers perform election work.
Tenure
- The tenure of election commissioners is not prescribed by Indian Constitution.
- However, the Election Commission conduct of service Act, 1991 prescribes the term of service.
- Chief Election Commissioner or an Election Commissioner shall hold office for a term of six years, or up to the age of 65 years, whichever is earlier, from the date on which he/she assumes his/her office.
Removal from office
- The Chief Election Commissioner of India can be represented removed from their office in a manner similar to the removal of a judge of the Supreme Court of India.
- It requires a resolution passed by the Parliament of India a two-thirds majority in both the Lok Sabha and the Rajya Sabha on the grounds of proved misbehaviour or incapacity.
- Other Election Commissioners can be removed by the President of India on the recommendation of the Chief Election Commissioner.
- A Chief Election Commissioner has never been impeached in India.
Recent incidence of criticisms of ECI
Ans. Partiality in Elections
- Over the last couple of years, several actions and omissions of the commission have come in for criticism.
- Nearly 66 former bureaucrats in a letter addressed to the President, expressed their concern over the working of the Election Commission.
- They felt was suffering from a credibility crisis, citing various violations of the model code of conduct during the 2019 Lok Sabha Elections.
Importance of ECI for India
- Conduction of Election: The ECI has been successfully conducting national as well as state elections since 1952.
- Electoral participation: In recent years, however, the Commission has started to play a more active role to ensure greater participation of people.
- Discipline of political parties: It had gone to the extent of disciplining the political parties with a threat of derecognizing if the parties failed in maintaining inner-party democracy.
- Upholds federalism: It upholds the values enshrined in the Constitution viz, equality,
equity, impartiality, independence; and rule of law in superintendence, direction, and control over electoral governance.
- Free and fair elections: It conducts elections with the highest standard of credibility, freeness, fairness, transparency, integrity, accountability, autonomy and professionalism.
Issues with ECI
- Flaws in the composition: The Constitution doesn’t prescribe qualifications for members of the EC. They are not debarred from future appointments after retiring or resigning.
- No security of tenure: Election commissioners aren’t constitutionally protected with security of tenure.
- Partisan role: The EC has come under the scanner like never before, with increasing incidents of breach of the Model Code of Conduct in the 2019 general elections.
- Political favor: The opposition alleged that the ECI was favoring the ruling party by giving clean chit to the model code of conduct violations made by the PM.
- Non-competence: Increased violence and electoral malpractices under influence of money have resulted in political criminalization, which ECI is unable to arrest.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nicobari Hodi, GI Tag
Mains level: Not Much
The Geographical Indications Registry at Chennai, has received an application from the Tribal Development Council, Andaman & Nicobar Islands, seeking the GI tag for the Nicobari hodi craft.
Why in news?
About Nicobari Hodi Craft
- The hodi is the Nicobari tribe’s traditional craft.
- It is an outrigger canoe, very commonly operated in the Nicobar group of islands.
- The hodi is built using either locally available trees or from nearby islands, and its design varies slightly from island to island.
- Hodis are used for transporting people and goods from one island to another, for sending coconuts, for fishing and racing purposes.
- The tuhet, a group of families under a headman, consider the hodi an asset.
- Hodi races are held between islands and villages.
- The technical skills for building a hodi are based on indigenous knowledge inherited by the Nicobarese from their forefathers.
How many GI tags have been accorded so far?
- The Geographical Indications Registry, established in Chennai in September 2003, has received over 1,000 applications.
- An application seeking GI tag for the Banaras’ thandai (a beverage made with milk, dry fruits and spices) was the 1,000th application.
- Data shows that, as on date, around 1,015 applications have been filed at the Chennai office and of them, GI tags have been given to 422 products.
Back2Basics: Geographical Indication
- A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
- Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
- India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
- GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
- The tag stands valid for 10 years.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Friendshoring
Mains level: Not Much
In her visit to India last week, US secretary of treasury Janet Yellen reiterated her country’s stance of pushing for “friendshoring” to diversify away from countries that present geopolitical risk.
What is Friendshoring?
- Friendshoring is a strategy where a country sources the raw materials, components and even manufactured goods from countries that share its values.
- The dependence on the countries considered a “threat” to the stability of the supply chains is slowly reduced.
- It is also called “allyshoring”.
- Apple’s announcement to shift its iPhone manufacturing facilities from China to India.
US push for friendshoring
- In the current case, Yellen said that Russia has long presented itself as a reliable energy partner, but in the Ukraine war, Putin has weaponized the gas “against the people of Europe”.
- Another country Yellen mentioned in her speech was China.
- She said it currently controls over 80 per cent of global solar panel production.
- However, there are reports that in parts of the country, like Xinjiang, the production of panels takes place through forced labour.
Issues with friendshoring
- Friendshoring may push the world towards a more isolated place for trade and reverse the gains of globalisation.
- It is a part of the “deglobalisation” process.
- While moving supply chains away from East Asia could increase security in the long run, an ill-conceived implementation of this friendshoring strategy could result in price hikes and a stronger China over time.
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