Note4Students
From UPSC perspective, the following things are important :
Prelims level: OPS, NPS and other alternatives
Mains level: pension system, ensuring security and stability
Central Idea
- The issue of government employees’ pension has emerged as a critical political concern, leading several states to consider reverting from the New Pension Scheme (NPS) to the defined-benefit (DB) Old Pension Scheme (OPS). Acknowledging the significance of this matter, the Government of India has established a committee to enhance the NPS.
What is pension?
- A pension is a retirement plan that provides a stream of income to individuals after they retire from their job or profession. It can be funded by employers, government agencies, or unions and is designed to ensure a steady income during retirement.
What is Old Pension Scheme (OPS)?
- The OPS, also known as the Defined Benefit Pension System, is a pension plan provided by the government for its employees in India.
- Under the OPS, retired government employees receive a fixed monthly pension based on their last drawn salary and years of service.
- This pension is funded by the government and paid out of its current revenues, leading to increased pension liabilities.
What is NPS?
- NPS is a market-linked, defined contribution pension system introduced in India in 2004 as a replacement for the Old Pension Scheme (OPS).
- NPS is designed to provide retirement income to all Indian citizens, including government employees, private sector workers, and self-employed individuals
Facts for prelims: Key differences between the two pension schemes
| Parameters |
The Old Pension Scheme(OPS) |
The New Pension Scheme (NPS) |
| Nature of the schemes |
OPS offer pensions to government employees on the basis of their last drawn salary |
NPS pays the employees for their investments in the NPS Scheme during their employment. |
| Amount of pension derived |
50 per cent of the last drawn salary |
60% lump sum after retirement and 40% to be invested in annuities for getting a monthly pension |
| Benefits in taxes |
No tax benefits |
The employee can claim tax deductions of 1.5 lakh under Section 80C of income tax and up to 50,000 on other investments under 80CCD (1b) |
| Tax on pension |
No tax on pension |
60% of the NPS Corpus is tax-free while the remaining 40% is taxable |
| Option of Investment |
No option |
Two choices: Active and Automatic |
| Who can avail? |
Only government employees |
Any Indian Citizen between 18-65 years. |
| Switching Schemes |
OPS scheme can be switched to NPS |
NPS scheme cannot be switched back to OPS in general, but central government employees can switch back to OPS in case of death and disablement of the employee. |
Reasons behind the growing demand for reverting to OPS
- Stability and Predictability: One of the primary motivations for the demand to return to OPS is the desire for stability and predictability in pension benefits. Under the OPS, employees receive a fixed pension based on their last drawn salary, which is increased periodically to account for inflation. This offers a sense of security and certainty about post-retirement income, ensuring a stable financial future.
- Market Risk and Annuity Payouts: The NPS, being a market-linked pension scheme, exposes pensioners to market risks. The returns on the pension fund are subject to market fluctuations, which can impact the overall corpus and subsequently affect annuity payouts. This volatility raises concerns among employees who seek a more secure and reliable pension arrangement.
- Lower Annuity Prospects: With the NPS, pensioners bear the market risk and face the possibility of lower-than-expected annuity amounts. This uncertainty about future pension prospects prompts many employees to advocate for a return to OPS, which offers a predetermined pension amount.
- Comparisons with Other Pension Systems: Employees often compare the OPS with pension systems in other countries, particularly those in the Organisation for Economic Co-operation and Development (OECD) economies. These comparisons reveal that OPS provides higher pension replacement rates, lower retirement ages, and covers the entire family. Such favorable aspects of OPS generate a perception of better benefits and incentivize employees to demand its reinstatement.
- Perception of Unsustainability: While the NPS was introduced to address fiscal strains associated with the unfunded OPS, there are concerns about its long-term sustainability. Some argue that OPS can be sustained through effective fiscal management and reform, rather than completely abandoning it. The perception of unsustainability drives the demand for reverting to OPS as a viable alternative.
Challenges involved in reverting back to OPS
- Fiscal Sustainability: The OPS operates on a pay-as-you-go (PAYG) system, where present workers finance the retired. With declining birth rates and increased life expectancy, the burden on the future workforce to fund pensions will intensify. The OPS, being an unfunded scheme, poses challenges in maintaining fiscal sustainability in the long run.
- Demographic Shifts: The dependency ratio is expected to increase substantially, with fewer workers supporting a larger number of retirees. This demographic shift adds to the challenges of sustaining the OPS, as it puts additional strain on the funding mechanism and the ability to meet pension obligations.
- Inflationary Pressures: The OPS guarantees periodic increases in pension payouts through dearness allowance (DA) adjustments to account for inflation. However, relying on fixed increments tied to DA can pose challenges during periods of high inflation. Ensuring that pension payments keep pace with inflation without compromising fiscal stability can be a complex task for policymakers.
- Budgetary Constraints: The financial burden of reverting to OPS can put a significant strain on the government’s budget. Pension liabilities already account for a substantial portion of states’ revenue receipts and own revenues. Increasing pension obligations may lead to a reduction in development expenditure or necessitate additional borrowing, potentially exacerbating the issue of public debt.
- Inter-generational Equity: Maintaining inter-generational equity is a crucial consideration in pension reforms. Reverting to OPS might fulfill the aspirations of current employees, but it can impose a heavy burden on future generations. Striking a balance between providing reasonable pension security for present employees and ensuring the sustainability of the pension system for future generations is a key challenge that needs to be addressed.
- Economic Factors: The economic environment, including interest rates and investment returns, can impact the financial viability of OPS. Changes in economic conditions, such as low interest rates or inadequate returns on pension fund investments, can strain the financial resources needed to sustain OPS and meet pension obligations.
Way ahead: Building sustainable and inclusive pension systems
- Comprehensive Reform: Governments should undertake comprehensive reforms which may involve revisiting the pension architecture, introducing alternative pension models, and exploring hybrid schemes that combine elements of defined-benefit and defined-contribution systems. Reforms should be guided by a thorough analysis of demographic trends, fiscal constraints, and economic conditions.
- Adequate Funding Mechanisms: Pension systems must establish robust funding mechanisms to ensure that pension obligations can be met. This may involve setting up dedicated pension funds, implementing sound investment strategies, and establishing appropriate contribution rates for both employees and employers.
- Strengthening Pension Governance: Effective governance is crucial for the success of pension systems. Governments should strengthen the regulatory framework, improve transparency, and enhance accountability in the management of pension funds. Establishing independent oversight bodies and adopting international best practices can help ensure the integrity and efficiency of pension governance.
- Promoting Financial Literacy: Financial literacy programs should be implemented to educate individuals about the importance of retirement planning, investment strategies, and the risks and benefits associated with different pension options. Empowering individuals with financial knowledge will enable them to make informed decisions and take an active role in securing their retirement income.
- Encouraging Voluntary Savings: Governments should encourage voluntary retirement savings programs to complement the mandatory pension schemes. Providing incentives, such as tax benefits or matching contributions, can incentivize individuals to save for retirement beyond the mandatory contributions. Voluntary savings options, such as individual retirement accounts or employer-sponsored plans, can offer individuals greater flexibility and control over their retirement savings.
- Flexibility and Portability: Pension systems should adapt to the changing nature of work and support individuals with diverse employment patterns. Portable pension accounts that allow individuals to carry their accumulated benefits across jobs can ensure continuity of retirement savings. Flexibility in pension payout options, such as lump sum withdrawals or phased withdrawals, can accommodate different financial needs and preferences of retirees.
- Social Safety Nets: To address the needs of vulnerable populations, social safety nets should be incorporated into pension systems. These safety nets can provide minimum income guarantees or targeted assistance for individuals with limited or interrupted work histories, low-income earners, and those facing economic hardships in retirement.
Conclusion
- Amidst the debate between NPS and OPS, it is crucial to devise a pension system that ensures security without compromising fiscal sustainability and inter-generational equity.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: challenges India's pharmaceutical industry and way forwards
Central Idea
- The recent incidents of substandard and contaminated medicines in India have raised concerns about the quality and regulatory oversight in the pharmaceutical industry. While India takes pride in being the largest manufacturer of generic medicines globally, it is essential to address the persistent quality concerns to maintain its reputation and protect public health.
Tragic incidents highlighting quality concerns
- Digital Vision Contamination: In January 2020, 12 children in Jammu died after consuming contaminated medicine manufactured by Digital Vision, revealing the presence of diethylene glycol. Despite previous red flags from drug laboratories, another incident occurred six months later, leading to the death of a two-year-old consuming Cofset cough syrup from the same manufacturer.
- Nycup Syrup: In March 2021, Nycup syrup was found to have lower levels of the active ingredient, raising concerns about quality control. However, limited regulatory action hindered effective intervention against the manufacturer.
An overview of the drug regulation mechanism in India
- Central Drugs Standard Control Organization (CDSCO): The CDSCO, under the Ministry of Health and Family Welfare, is the central regulatory authority responsible for the approval, regulation, and control of pharmaceutical products in India. It plays a crucial role in granting licenses, conducting inspections, and monitoring drug manufacturing, import, and distribution.
- Drug Controller General of India (DCGI): The DCGI is the head of the CDSCO and holds the overall responsibility for drug regulation in India. The DCGI oversees the approval of new drugs, clinical trials, and the regulation of imported drugs.
- National Pharmaceutical Pricing Authority (NPPA): The NPPA regulates the prices of essential drugs in India to ensure affordability and accessibility. It monitors and controls the prices of scheduled medicines and sets guidelines for the pricing of pharmaceutical products.
- Pharmacovigilance Program of India (PvPI): PvPI is a national program that focuses on monitoring and reporting adverse drug reactions (ADRs) to ensure the safety of medicines. It encourages healthcare professionals and the public to report any suspected ADRs to a centralized database for analysis and evaluation
- Intellectual Property Rights (IPR) Protection: The regulatory framework includes provisions to protect intellectual property rights related to pharmaceutical inventions and innovations. This promotes research and development in the industry and encourages the introduction of new drugs.
- Manufacturing Standards: The CDSCO ensures that drug manufacturers in India adhere to good manufacturing practices (GMP) to ensure that drugs are produced under quality standards and are safe for use.
- Clinical Trials: The CDSCO regulates clinical trials in India to ensure that they are conducted ethically and with the safety of participants in mind. The CDSCO requires that clinical trials follow the guidelines of the International Conference on Harmonization (ICH).
Challenges in the Indian pharmaceutical industry
- Fragmented Regulatory Structure: With approximately 36 drug regulators in India, coordination and consistency in regulatory oversight become challenging. A consolidated and centralized regulatory body can mitigate the risk of regulatory capture and ensure common standards across states.
- Persisting Quality Concerns: Despite being the largest manufacturer of generic medicines globally, India has encountered quality issues. Recent inspections revealed that 48 drugs failed to meet quality standards, jeopardizing patient safety.
- Global Reputation at Stake: Observations from global regulators, such as the US FDA, indicate compliance issues in Indian pharmaceutical facilities, potentially tarnishing India’s image as a quality drug manufacturing country.
- Limited Regulatory Action: In some instances, regulatory action has been limited or challenging to implement due to various reasons, making it difficult to effectively address quality issues and hold manufacturers accountable.
- Insufficient Transparency and Accountability: The lack of transparency in the drug regulatory regime hinders public trust and confidence. Limited public disclosure of drug application reviews, inspection records, and past violations makes it challenging to evaluate the compliance and track record of manufacturers.
- Inspection and Enforcement Capacity: The sheer number of pharmaceutical manufacturing units in India, coupled with the large-scale inspection load, puts strain on the inspection teams under state drug controllers.
Way forward
- Regulatory Reforms: Amend the Drugs and Cosmetics Act (1940) and establish a centralized drugs database for effective surveillance. Consolidate regional regulators into a single regulatory body to minimize state-level patronage and influence networks. Implement common standards across states.
- Enhanced Transparency and Reporting: Publish comprehensive reports on drug testing laboratories’ findings and establish a public database of past violations, inspection records, and failure history. Introduce a national law on drug recall, empowering victims and imposing penalties on firms exporting spurious drugs.
- Strengthening the Central Drugs Standard Control Organisation (CDSCO): Provide statutory backing and establish a Central Drugs Authority as an independent body, ensuring effective regulation and enforcement.
- Industry Accountability: The pharmaceutical industry should focus on producing quality generic and innovative drugs, moving beyond generic manufacturing. Embrace zero-defect principles and prioritize public health.
Conclusion
- Addressing the challenges India’s pharmaceutical industry requires comprehensive reforms, including regulatory consolidation, transparency, enhanced inspections, and industry accountability. By prioritizing patient safety and ensuring the delivery of quality medicines, India’s pharmaceutical industry can reclaim its position as a global leader in drug manufacturing.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Anti-defection law
Mains level: Anti-defection law needs a relook and The Importance of accountability in
Central idea
- Two recent judgments by the Supreme Court of India have brought attention to the constitutional framework governing the relationship between the executive, legislature, and political parties. While the judgments were unanimous, they present a contradiction in their application. The Delhi case emphasized the importance of accountability of civil services to the elected government, while the Maharashtra case upheld the power of party leadership over legislators, undermining the principles of parliamentary democracy.
Delhi Case: Reinforcing the Importance of Accountability
- Importance of Accountability: The case underscores the significance of accountability in a democratic system. It reaffirms the idea that a government elected by the people must be answerable to them through a triple chain of command: civil service officers being accountable to ministers, ministers being accountable to the legislature, and the legislature being accountable to the electorate.
- Power Distribution: The judgment clarifies the delineation of powers between the Delhi government, headed by the Chief Minister, and the Lieutenant Governor appointed by the central government. It establishes that in matters concerning civil services, the elected government of Delhi should have control and authority, emphasizing the democratic principle of decentralization of power.
- Constitutional Provisions and Democratic Values: The case highlights the significance of adhering to the constitutional provisions and demarcation of powers in a Union Territory like Delhi. It upholds the principles of parliamentary democracy, emphasizing the importance of a government accountable to the people it serves.
- Strengthening Democratic Institutions: The judgment emphasizes the role of institutions in upholding democratic values enshrined in the Constitution. By safeguarding accountability and appropriately allocating powers, it sets a precedent for future cases and reinforces the role of institutions in maintaining a robust democratic system.
What is triple chain of accountability?
- Civil Service Officers to Ministers: The first link in the chain is the accountability of civil service officers to the Ministers. Civil service officers are responsible for implementing government policies and carrying out administrative tasks. They are answerable to the Ministers who oversee their work and provide directions.
- Ministers to the Legislature: The second link in the chain is the accountability of Ministers to the legislature. Ministers are accountable for their decisions, actions, and policies to the legislature, which represents the voice of the people. They are expected to participate in debates, answer questions, present bills, and seek approval or support for government initiatives from the elected representatives.
- Legislature to the Electorate: The third link in the chain is the accountability of the legislature to the electorate. The elected representatives in the legislature are accountable to the people who have chosen them through the electoral process. Legislators are expected to represent the interests and concerns of their constituents, work towards their welfare, and ensure that their voices are heard in the decision-making process.
Maharashtra Case: Undermining the Triple Chain of Accountability
- Interpretation of the Tenth Schedule: The case revolves around the interpretation and application of the Tenth Schedule of the Constitution, which deals with the anti-defection law. The judgment focuses on the distinction between the legislature party and the political party, clarifying the power to issue binding directions to members of the legislature.
- Role of Party Leadership: The judgment reinforces the authority of the political party leadership over the legislature. It establishes that the person in charge of the political party holds the power to issue directions to the members of the party, including MLAs/MPs, and failure to comply can result in disqualification.
- Limitation on Legislators’ Accountability: The judgment raises concerns regarding the accountability of legislators to their voters. By upholding the authority of the political party leadership, it potentially weakens the accountability of legislators to the electorate and emphasizes their accountability solely to the party that fielded them in the election.
- Triple Chain of Accountability: The judgment diverges from the principles outlined in the Delhi case concerning the triple chain of accountability. It suggests that legislators should adhere to the directions of the political party, potentially undermining the daily assessment of the government by the legislature and diluting the accountability of the government to the people.
- Need for Re-evaluation: The judgment indicates the need for re-evaluating the anti-defection law and its compatibility with the principles of parliamentary democracy. It raises questions about the anti-defection law violating the basic structure of the Constitution, calling for a larger bench to examine this issue.
Facts for prelims: Basics
Anti-defection Law
- The Anti-Defection Law under the Tenth Schedule of the Constitution punishes MPs/ MLAs for defecting from their party by taking away their membership of the legislature.
- It gives the Speaker of the legislature the power to decide the outcome of defection proceedings.
- It was added to the Constitution through the Fifty-Second (Amendment) Act, 1985 when Rajiv Gandhi was PM. The law applies to both Parliament and state assemblies.
|
Contradictory Conclusions: The Problem of the Anti-Defection Law
- The contradictory conclusions arising from the application of the anti-defection law in both the cases:
- Constitutional Position: While the Delhi case emphasizes the accountability of civil services to the Delhi government and upholds the triple chain of command, the Maharashtra case highlights the power of the political party leadership over legislators, as dictated by the Tenth Schedule.
- Incompatibility with Parliamentary Democracy: The Maharashtra case raises concerns about the anti-defection law, which is at the core of the Tenth Schedule, and its compatibility with the structure underlying parliamentary democracy. The anti-defection law’s assumption that any vote against the party direction is a betrayal of the electoral mandate contradicts the principle of representative democracy.
- Legislative Accountability: The Maharashtra judgment reinforces the authority of the political party leadership, implying that legislators are primarily accountable to the party that fielded them, rather than to the electorate. This breaks the triple chain of accountability.
- Impact on Daily Assessment: The Maharashtra judgment’s emphasis on party directions limits the daily assessment of the government by the legislature. If legislators of the party with a majority are bound by party directions, it undermines the meaningfulness of debates, resolutions, and no-confidence motions, as the party leadership controls the votes on every issue, ensuring the government’s victory.
- Electoral Mandate and Voter Decision: The anti-defection law assumes that voters prioritize party affiliation, disregarding other factors such as candidates’ criminal records, assets and liabilities, and educational qualifications. However, voters’ decisions in elections often contradict this assumption, as demonstrated by instances of legislators winning by-elections after switching parties.
Way forward
- Re-evaluation of the Anti-Defection Law: It is crucial to revisit the anti-defection law and assess its compatibility with the basic principles of parliamentary democracy. A thorough examination by a larger Bench of the Supreme Court can help determine if the law violates the basic structure of the Constitution.
- Reviewing the Tenth Schedule: The Tenth Schedule, which forms the basis of the anti-defection law, should be subject to a critical review. This includes analyzing its impact on the accountability of legislators to their constituents and evaluating whether it aligns with the principles of representative democracy.
- Strengthening Legislative Accountability: Efforts should be made to reinforce the accountability of legislators to the electorate. This can be achieved by ensuring that legislators prioritize their constituents’ interests over party directives, thereby fostering a stronger connection between legislators and the people they represent.
- Promoting Informed Voting: Emphasizing the importance of informed voting can help voters make decisions based on factors beyond party affiliation. Providing comprehensive information about candidates, including their track records, assets and liabilities, and educational qualifications, will enable voters to make more informed choices during elections.
- Balancing Party Discipline and Individual Freedom: Striking a balance between party discipline and individual freedom of legislators is crucial. There should be mechanisms in place that encourage healthy debate, dissent, and the ability of legislators to vote based on their own judgment, while still respecting party affiliations.
- Enhancing Parliamentary Debates and Oversight: Efforts should be made to strengthen the role of legislatures in holding the government accountable. This can be achieved through robust parliamentary debates, effective question hour sessions, and rigorous scrutiny of government actions and policies.
Conclusion
- The contradiction between the Delhi and Maharashtra cases underscores the need to revisit the anti-defection law. A larger Bench should re-examine the law’s compatibility with the basic structure of the Constitution, reaffirming the centrality of accountability in parliamentary democracy. This step is crucial to restore the balance between party loyalty and the representatives’ duty to serve their constituents and uphold democratic values.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Biomanufacturing, QUAD's CET working group, ICET and other such developments
Mains level: Strengthening Quad Cooperation in Biotechnology, India as a biomanufacturing hub
Central Idea
- The Quad, comprised of Australia, India, Japan, and the United States, established a Critical and Emerging Technology Working Group in March 2021 to foster collaboration and explore opportunities in critical and emerging technologies, including biotechnology. However, there remains untapped potential for Quad cooperation in the field of biotechnology. The need of the hour is to establish a Quad-led biomanufacturing hub in India to enhance cooperation and leverage the complementary strengths of Quad nations.
What is QUAD’s Critical and Emerging Technology Working Group?
- The Quad’s Critical and Emerging Technology Working Group is a collaborative initiative established by the Quad countries.
- It was formed in March 2021 with the aim of facilitating cooperation, monitoring trends, and exploring opportunities related to critical and emerging technologies. The working group focuses on identifying and addressing key issues and challenges in areas such as biotechnology, artificial intelligence, cybersecurity, quantum technologies, and other cutting-edge fields.
- It serves as a platform for the Quad countries to share expertise, exchange information, and coordinate efforts in order to harness the potential of these technologies for economic growth, national security, and societal development.
- For instance, in the field of 5G, the Quad members have worked on developing telecommunications networks to counter the pervasive presence of China’s Huawei through the use of open radio access (O-RAN) networks.
Facts for prelims
Initiative on Critical and Emerging Technologies (ICET)?
- The ICET initiative was launched by Indian Prime Minister Narendra Modi and U.S. President Joe Biden in May 2022, to work together in developing important and new technologies.
- The Prime Minister’s Office in Delhi and the White House in Washington will oversee and direct the ICET.
- The ICET’s goal is to increase the technology interaction between the US and India while also potentially adding additional strategic depth and breadth to their growing partnership.
- It involves collaboration in a range of areas including quantum computing, semiconductors, 5G and 6G wireless infrastructure, and civilian space projects such as lunar exploration.
- Six focus areas of co-development and co-production includes, 1. Strengthening innovation ecosystems, 2. Defence innovation and technology cooperation, 3. Resilient semiconductor supply chains, 4. Space, 5. STEM talent, and 6. Next generation telecom.
|
What is mean by Biomanufacturing?
- Biomanufacturing refers to the use of biological systems, such as living organisms (microorganisms, cell cultures, or plants), to produce commercially valuable products on a large scale. It involves harnessing the power of biological processes and utilizing them in industrial applications.
- In biomanufacturing, living organisms are employed as “factories” to perform specific tasks or produce desired molecules. These organisms can be genetically engineered or naturally occurring, depending on the desired outcome.
- The organisms are cultivated in controlled environments, such as bioreactors, where they are provided with optimal conditions for growth and production. They are fed with specific nutrients, and their growth and metabolic activities are carefully regulated.
- Biomanufacturing can encompass a wide range of products, including pharmaceuticals, enzymes, biofuels, specialty chemicals, biomaterials, and more.
- Biomanufacturing is often more sustainable and environmentally friendly, as it relies on renewable resources and has the potential to reduce waste and pollution.
Why India stands as the ideal choice to host the biomanufacturing hub?
- India’s ambition of biomanufacturing: India’s National Biotechnology Development Strategy sets a target of reaching $100 billion in the biomanufacturing sector.
- Existing Infrastructure: India already has existing infrastructure in place, including pharmaceutical manufacturing facilities and research institutions, that can be utilized to establish and expand biomanufacturing capabilities. This infrastructure provides a solid foundation for the development of a biomanufacturing hub.
- Pharmaceutical Manufacturing Expertise: India has a long-standing reputation as a major player in the global pharmaceutical industry. The country has established expertise in manufacturing and quality control processes, which can be leveraged for biomanufacturing. The experience gained in pharmaceutical manufacturing can be applied to biomanufacturing, ensuring compliance with regulatory standards and maintaining high-quality production.
- Skilled Workforce: India possesses a large pool of skilled professionals in the life sciences and biotechnology sectors. The country’s workforce includes scientists, engineers, and technicians with expertise in various aspects of biomanufacturing. This skilled workforce can contribute to the success of the biomanufacturing hub by driving research, development, and production activities.
- Research Output: India has demonstrated its research capabilities in biomanufacturing, ranking high in terms of the quality of research output and the share of research publications. The country’s strong research base provides a solid foundation for innovation and advancements in biomanufacturing processes and technologies.
- Cost-Effectiveness: India has a competitive advantage in terms of cost-effectiveness. The cost of manufacturing in India is generally lower compared to countries like the United States, making it an attractive destination for cost-efficient biomanufacturing. This cost advantage can contribute to the affordability and accessibility of biomanufactured products.
- Potential for Affordable Scale: India has the potential to provide affordable scalability in biomanufacturing processes. With its large population and manufacturing capabilities, India can meet the demand for biomanufactured products on a large scale, leading to cost-effective production and availability of essential biopharmaceuticals and other biotechnological products.
Complementary Strengths of Quad Nations
- Advanced Biotechnology Innovation Ecosystems: Japan, Australia, and the United States have well-established and advanced biotechnology innovation ecosystems. These ecosystems comprise research institutions, universities, biotech companies, and startups that drive innovation and technological advancements in biotechnology.
- Funding Capability: The United States, being one of the Quad nations, brings significant funding capability to the table. The U.S. government and private sector invest heavily in research, development, and commercialization of biotechnology.
- Skilled Workforce: India, as a Quad member, offers a large pool of skilled manpower, particularly in the life sciences field. Collaborative efforts can facilitate knowledge sharing and capacity building to enhance the skills of the workforce across the Quad nations.
- Manufacturing and Scale-Up Capabilities: India has well-established pharmaceutical manufacturing capabilities. The country has a robust infrastructure and expertise in large-scale production, which can be harnessed for biomanufacturing purposes.
- Intellectual Property and Technology Transfer: The Quad nations, particularly Japan and the United States, have strong intellectual property protection systems and expertise in technology transfer. Sharing intellectual property and facilitating technology transfer can accelerate the development and commercialization of biomanufacturing technologies, benefiting all Quad nations.
- Research Output and Innovation: All Quad nations contribute significantly to global research output in the field of biotechnology. They produce high-quality research publications and drive innovation in various subfields of biotechnology. Collaboration within the Quad can facilitate knowledge exchange, joint research projects, and the development of innovative solutions in biomanufacturing.
Way ahead
- Collaborative Research and Development: Foster collaborative research and development initiatives between the Quad nations and India. This can involve joint projects, knowledge sharing, and technology transfer to accelerate the development of biomanufacturing processes, products, and technologies.
- Capacity Building and Skill Development: Establish training programs, workshops, and exchange programs to enhance the skills and knowledge of professionals in biomanufacturing. This can include specialized training in areas such as advanced bioprocessing techniques, quality control, regulatory compliance, and technology transfer.
- Infrastructure Investment: Allocate resources for infrastructure development, including the establishment of specialized bioreactor facilities, research centers, and manufacturing capabilities.
- Regulatory Framework Alignment: Collaboratively work towards aligning regulatory frameworks among the Quad nations and India. This involves harmonizing regulations, streamlining approval processes, and ensuring consistent quality standards.
- Public-Private Partnerships: Foster public-private partnerships to leverage the expertise, resources, and capabilities of both sectors. Engaging industry stakeholders, academia, research institutions, and government agencies in collaborative initiatives can drive innovation, facilitate technology transfer, and accelerate the commercialization of biomanufactured products.
- International Collaboration: Explore collaborations beyond the Quad nations to foster international cooperation in biomanufacturing. Engaging with countries outside the Quad can expand opportunities for knowledge exchange, market access, and research collaboration.\
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From UPSC perspective, the following things are important :
Prelims level: Hysterectomy
Mains level: Maternal health issues
Central Idea: The Health Ministry in India is concerned about the high incidence of unnecessary hysterectomies, particularly among poor, less-educated women in rural areas.
Why in news?
- The Supreme Court has directed States and Union Territories to implement health guidelines formulated by the Centre to monitor and prevent unnecessary hysterectomies.
What is Hysterectomy?
- Hysterectomy is a surgical procedure to remove the uterus, and sometimes surrounding organs and tissues.
- It can be classified as a partial hysterectomy (removal of the uterus), total hysterectomy (removal of the uterus and cervix), or radical hysterectomy (removal of the uterus, cervix, part of the vagina, and surrounding tissues).
- The procedure can be performed through the vagina or through an incision in the abdomen.
Issues with such surgery
- Overuse and unnecessary procedures: Hysterectomy can be performed without exploring alternative treatments.
- Psychological and emotional impact: The procedure may lead to feelings of loss and changes in body image.
- Surgical risks and complications: Hysterectomy carries risks such as infection and damage to surrounding organs.
- Long-term health effects: Removal of the uterus may have impacts on hormones and bone health.
- Patient autonomy and informed consent: Patients should be fully informed about the procedure and involved in decision-making.
- Access and equity: Disparities in access to healthcare may contribute to overuse, particularly among marginalized communities.
Concerns and Petition
A public interest litigation (PIL) highlighted the occurrence of unnecessary hysterectomies in the states of Bihar, Chhattisgarh, and Rajasthan under government healthcare schemes.
- Marginalized women were targeted: Women from marginalized communities, such as Scheduled Castes, Scheduled Tribes, and Other Backward Communities, were disproportionately affected.
- Misuse and Insurance Fraud: Healthcare institutions were found to be misusing hysterectomies to claim high insurance fees from the government under various health insurance schemes.
Key issue: Violation of Fundamental Rights
- The recent judgement acknowledges that rising hysterectomy rates among young women in India deviate from trends observed in developed countries.
- It recognizes the violation of fundamental rights, stating that unnecessary hysterectomies infringe upon the right to health and the right to life under Article 21 of the Constitution.
Government action and guidelines
- The Health Ministry has closely monitored the issue of hysterectomies and requested States to share data on hysterectomy cases before and after the implementation of guidelines.
- Compulsory audits for all hysterectomies are advised, similar to those conducted for maternal mortality, in both public and private healthcare institutions.
- In 2022, the Health Ministry issued guidelines to prevent unnecessary hysterectomies and urged States to comply with them.
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From UPSC perspective, the following things are important :
Prelims level: Carbon Border Adjustment Mechanism (CBAM)
Mains level: Read the attached story
Central Idea
Why such move?
- The EU is India’s second-largest trading partner and export market.
- India has expressed confidence that the intention behind CBAM was not to create a trade barrier but to promote sustainability.
- CBAM has potential impact on India’s Steel and Aluminum sectors.
Carbon Border Adjustment Mechanism (CBAM)
| Proposed by |
European Union (EU) |
| Purpose |
To reduce carbon emissions from imported goods and prevent competitive disadvantage against countries with weaker environmental regulations |
| Objectives |
Reduce carbon emissions from imported goods
Promote a level playing field between the EU and its trading partners
Protect EU companies that have invested in green technologies |
How does CBAM work?
| Coverage |
Applies to imported goods that are carbon-intensive |
| Integration |
Covered by the EU’s Emissions Trading System (ETS), which currently covers industries like power generation, steel, and cement |
| Implementation |
CBAM taxes would be imposed on the carbon content of imported goods at the border, and the tax rates would be based on the carbon price in the EU ETS |
| Exemptions |
Possible exemptions for countries that have implemented comparable carbon pricing systems |
| Revenue Use |
Revenue generated from CBAM taxes could be used to fund the EU’s climate objectives, such as financing climate-friendly investments and supporting developing countries’ climate efforts |
Who will be affected by CBAM?
|
Details |
| Countries |
Non-EU countries, including India, that export carbon-intensive goods to the EU |
| Items |
Initially covers iron and steel, cement, aluminium, fertilisers, and electric energy production |
| Expansion |
The scope of the CBAM may expand to other sectors in the future |
Advantages offered
- Encourages non-EU countries to adopt more stringent environmental regulations, reducing global carbon emissions.
- Prevents carbon leakage by discouraging companies from relocating to countries with weaker environmental regulations.
- Generates revenue that could be used to support EU climate policies.
Challenges with CBAM
- Difficulty in accurately measuring the carbon emissions of imported goods, especially for countries without comprehensive carbon accounting systems.
- Potential for trade tensions with the EU’s trading partners, especially if other countries implement retaliatory measures.
Ways to ease impact of CBAM
To minimize the impact of CBAM, India can consider several actions:
- Set up a carbon trading mechanism: To reflect the level of development and adjust the carbon tax paid domestically when paying CBT to the EU.
- Re-designate taxes on essential products: Make these as carbon taxes, which could help lower the net impact of CBT.
- Create a cadre of energy auditors: To ensure fair assessment of carbon emissions for products and help the industry calculate carbon intensity and adopt cleaner technologies.
- Start an industry awareness program: To educate sectors affected by CBT and create a dedicated group involving government, industry associations, and researchers.
- Devise a WTO-compatible retaliation mechanism: To counter CBT, considering that developing countries exporting to developed nations will also suffer from it.
- Sign new Free Trade Agreements (FTAs): After resolving the CBT issue, as high CBT would undermine the benefits of zero import duties.
- Expose the perceived hypocrisy: Utilize global platforms to expose offshoring pollution of developed countries and proposing to tax imports, while not addressing their own consumption patterns.
Conclusion
- The CBAM is a proposed policy by the EU to reduce carbon emissions from imported goods and to promote a level playing field between the EU and its trading partners.
- Although the CBAM has its challenges, it has the potential to incentivize non-EU countries to adopt more stringent environmental regulations and reduce global carbon emissions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fertilizer Subsidy
Mains level: India's fertilizer subsidy burden
Central Idea
- The Union Cabinet has approved a fertilizer subsidy of ₹1.08 lakh crore for the ongoing kharif or monsoon season.
- ₹38,000 crore will be allocated for Nitrogen, phosphatic and potassic (NPK) fertilizers, while ₹70,000 crore will go towards the urea subsidy.
Fertilizer consumption and subsidies
- The country’s total consumption of urea is approximately 325 to 350 lakh metric tonnes (LMT).
- Other fertilizers sold in the country include 100 to 125 LMT of DAP, 100 to 125 LMT of NPK, and 50 to 60 LMT of Muriate of Potash (MoP).
- The fertilizer subsidy per hectare of land is about ₹8,909, and each farmer receives a subsidy of ₹21,223.
- DAP: The actual price of a bag of DAP is ₹4,000, but farmers receive it at a subsidized rate of ₹1,350 per bag, with a subsidy of ₹2,461 per bag.
- NPK: This subsidy is ₹1,639 per bag, and the MoP subsidy amounts to ₹734 per bag.
- Urea: The Centre spends ₹2,196 per bag of urea.
Fertilizer Subsidy in India
- Subsidy as a concept originated during the Green Revolution of the 1970s-80s.
- Fertiliser subsidy is purchasing by the farmer at a price below MRP (Maximum Retail Price), that is, below the usual demand-and-supply-rate, or regular production and import cost.
- The rate of subsidy is based on the average price of imported fertilizer in the last six months.
How is the subsidy paid and who gets it?
- The subsidy goes to fertiliser companies, although its ultimate beneficiary is the farmer who pays MRPs less than the market-determined rates.
- From March 2018, a new so-called direct benefit transfer (DBT) system was introduced, wherein subsidy payment to the companies would happen only after actual sales to farmers by retailers.
- With the DBT system, each retailer — there is over 2.3 lakh of them across India — now has a point-of-sale (PoS) machine linked to the Department of Fertilizers’ e-Urvarak DBT portal.
How does this system work?
- A popular example of how this system works is that of the neem-coated urea fertiliser.
- Its MRP is fixed by the government at Rs. 5922.22 per tonne.
- The average cost of domestic production is at Rs 17,000 per tonne. The difference is footed by the centre in the form of subsidy.
What about non-urea fertilizers?
- The non-urea fertiliser is decontrolled or fixed by the companies.
- The non- urea fertilizers are further divided into two parts, DAP (Diammonium Phosphate) and MOP (Muriate of Phosphate).
- The government pays a flat per tonne subsidy to maintain the nutrition content of the soil, and ensure other fertilizers are economical to use.
Issues with such subsidies
- Low NUE: Indian soil has low Nitrogen use efficiency, which is the main constituent of Urea.
- Groundwater pollution: Consequently, excess usage contaminates groundwater.
- Overuse beyond prescription: The bulk of urea applied to the soil is lost as NH3 (Ammonia) and Nitrogen Oxides. The WHO has prescribed limits been breached by Punjab, Haryana and Rajasthan.
- Health hazards: For human beings, “blue baby syndrome” is a common side ailment caused by Nitrate contaminated water.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Quantum Biology
Mains level: Not Much
Central Idea: The article introduces the concept of quantum biology, which explores the influence of quantum effects on living systems.
Nature and Quantum Mechanics
- Quantum effects refer to phenomena that occur between atoms and molecules that cannot be explained by classical physics.
- Quantum mechanics, which governs the behavior of objects at atomic scales, differs from classical mechanics, leading to counterintuitive phenomena like particle tunnelling and superposition.
Quantumness in Biology
- Quantum biology is an emerging field that explores the role of quantum mechanics in biological processes and living systems.
- It investigates how quantum phenomena and effects, which typically occur at atomic and subatomic scales, influence and contribute to the functioning and behavior of biological systems.
- It aims to uncover and understand the quantum nature of biological molecules, processes, and interactions.
- It seeks to study how quantum mechanics may impact various biological phenomena such as photosynthesis, enzyme reactions, and navigation in birds.
Evidence of Quantum Effects in Biology
- Research on chemical reactions in biomolecules like proteins and genetic material suggests the influence of quantum effects.
- Nanoscopic quantum effects can drive macroscopic physiological processes, including enzyme activity, sensing magnetic fields, cell metabolism, and electron transport.
Studying Quantum Biology
- Studying quantum effects in biology requires tools to measure short time scales, small length scales, and subtle differences in quantum states.
- Researchers can apply tailored magnetic fields to control the spins of electrons, influencing physiological processes that respond to magnetic fields.
Potential applications
- Therapeutic devices: Understanding and fine-tuning quantum properties in nature could lead to non-invasive, remotely controlled therapeutic devices accessible through mobile phones.
- Bio-manufacturing: Electromagnetic treatments based on quantum principles could be used for disease prevention and treatment, such as brain tumors, as well as in bio-manufacturing.
Scope quantum biology’ study
- Multi-disciplinary: Quantum biology is an interdisciplinary field that brings together researchers from various disciplines, including quantum physics, biophysics, medicine, chemistry, and biology.
- Many applications: Collaboration and cross-disciplinary research are crucial for advancing quantum biology and unlocking its transformative potential in biology, medicine, and technology.
Facts for Prelims
Superposition: A quantum phenomenon where particles can exist in multiple states simultaneously until measured or observed, in contrast to classical physics where objects have definite properties.
Spins: Quantum properties of electrons that define their interaction with magnetic fields, analogous to the way charge defines their interaction with electric fields.
Deterministic Codebook: A comprehensive understanding of the relationship between quantum causes and physiological outcomes, providing a guide for mapping quantum phenomena to specific biological effects. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ASTR, AI
Mains level: Not Much
Central Idea: The Department of Telecommunications (DoT) has developed an artificial-intelligence-based facial recognition tool called Artificial Intelligence and Facial Recognition powered Solution for Telecom SIM Subscriber Verification (ASTR).
What is ASTR?
- ASTR is designed to check subscriber databases of telecom operators to identify multiple connections associated with the same person.
- The goal of ASTR is to detect and block fraudulent mobile connections, thereby reducing cyber frauds.
Development of ASTR
- In 2012, DoT issued an order requiring telecom operators to share their subscriber database, including users’ pictures, with the department.
- These images serve as the core database for facial recognition using ASTR.
- The ASTR project was conceptualized and designed by the DoT’s unit in Haryana between April 2021 and July 2021.
- A pilot project was conducted in Haryana’s Mewat region to test the feasibility of ASTR, where a significant number of fraudulent SIMs were detected.
How ASTR works?
- ASTR uses convolutional neural network (CNN) models to encode human faces in subscribers’ images, accounting for various factors like face tilt, angle, image opaqueness, and dark color.
- A face comparison is performed for each face against all faces in the database, grouping similar faces under one directory.
- ASTR considers two faces to be identical if they match to a minimum extent of 97.5%.
- It can detect all SIMs associated with a suspected face within 10 seconds from a database of 1 crore (10 million) images.
- After matching faces, ASTR’s algorithm utilizes “fuzzy logic” to find approximate matches for subscriber names, considering variations, typographical errors, and related results.
Impact and Results
- In the first phase, ASTR analyzed over 87 crore (870 million) mobile connections and detected more than 40 lakh (4 million) cases of people using a single photograph to obtain multiple connections.
- After verification, over 36 lakh (3.6 million) connections were discontinued by telecom operators.
- The list of fraudulent connections is also shared with banks, payment wallets, and social media platforms to disengage these numbers from their respective platforms.
- WhatsApp collaborated with the government to disable accounts created using such numbers, and similar efforts are being made with other social media platforms.
Facts for Prelims
Convolutional Neural Network (CNN): A type of deep learning algorithm commonly used for image recognition tasks, where it extracts features and patterns from images by applying convolution operations.
Fuzzy Logic: A form of logic that deals with approximate or qualitative reasoning rather than strict binary true/false values. In the context of ASTR, it is used to find similarity or approximate matches for subscriber names, accounting for variations and typographical errors. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Vacuum gas oil (VGO)
Mains level: Reprocessing Russian oil
Central Idea
- The article discusses India’s increased imports of Russian oil and the potential circumvention of sanctions imposed on Russian oil products.
Why in news?
- An EU parliamentarian accused India of profiting from cheaply bought Russian oil and indirectly supporting the Russian economy.
- India justified its purchase by emphasizing its energy demands and the challenges of higher prices due to its reliance on energy imports and significant poverty levels.
Reasons: Sanctions against Russian Oil
- After Russia’s invasion of Ukraine, Western countries and Europe aimed to reduce their dependency on Russian energy imports to weaken the Russian economy.
- Measures were taken, such as Germany suspending the launch of the Nord Stream natural gas pipeline and Canada and the US banning the import of Russian crude oil.
- Stricter sanctions were imposed on Russia, including a “price cap” from trading Russian oil above $60 per barrel.
- The price cap aimed to cripple Moscow’s economy and limit its ability to fund the war in Ukraine.
- However, Russia increased its oil exports to India and China as a response.
India’s role in meeting West’s energy demand
- India, exempt from the sanctions on Russian oil, has seen a significant increase in fuel imports from Russia, which is then refined and supplied to Europe and the US.
- The refined oil from Russian crude, once processed in India, is not considered of Russian origin.
- India’s oil imports have helped it meet its own energy demands and also assist Western nations facing energy crises due to the Russia-Ukraine conflict.
- India has become a net exporter of refined petroleum products, supplying the West to alleviate current energy shortages.
Impact of Indian imports on Western markets
- Indian refiners have ramped up exports of refined petroleum products, including diesel and vacuum gas oil (VGO), to Europe and the US.
- VGO is a feedstock in the refining process that can be further processed to produce gasoline, diesel, and other fuel products.
- Diesel exports to Europe from India have increased by 12-16% in the last fiscal year.
- The US has become a major recipient of Indian VGO shipments, receiving 11,000-12,000 barrels per day (bpd) or 65-81% of India’s VGO exports.
- These exports from India have helped ease the energy tightness and supply constraints in Western markets.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Production Linked Incentive (PLI) scheme
Mains level: Not Much
Central Idea
PLI Scheme for IT Hardware
- The PLI scheme for IT hardware was initially introduced in March 2021.
- It provides incentives of over 4% for incremental investment in domestic manufacturing for eligible companies, such as Dell and Flextronics.
- The scheme aims to boost domestic manufacturing, increase exports, and make India a prominent player in the IT hardware sector.
- The scheme will have a tenure of six years, providing a long-term incentive for eligible companies to invest in domestic IT hardware manufacturing.
Growth in indigenous IT hardware
- The government highlighted the growth of electronics manufacturing in India.
- There is a 17% compound annual growth rate over the past 8 years and a production benchmark of $105 billion, including $11 billion in mobile phone exports.
New changes introduced
- The budgetary outlay for the PLI scheme for IT hardware manufacturing has been set at ₹17,000 crore.
- The incentive rate has been increased to 5%, offering a higher benefit to companies investing in domestic manufacturing.
- An additional optional incentive has been introduced for using domestically produced components, although the specific rates of these incentives are not specified.
- If the optional incentives are utilized as intended, the total incentive under the scheme could amount to 8-9%.
Achievements in Telecom hardware manufacturing
- Telecom hardware manufacturing has surpassed the projected ₹900 crore and reached ₹1,600 crore.
- Some Indian companies have become significant exporters of complex radio equipment worldwide.
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