Explained | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Mains level: Impact of monopoly in the market
Why in the news?
US Federal court ruled Google’s $26 billion payments to default on smartphone browsers violated US antitrust law, blocking competitors and benefiting the Justice Department.
About Google’s Antitrust Case
The U.S. Department of Justice (DOJ) brought an antitrust case against Google, accusing it of maintaining a monopoly in the online search and advertising sectors.
The DOJ argued that Google’s dominance was achieved through exclusive distribution agreements, which prevented competitors from succeeding in the market.
What Did the Ruling State?
Google Monopolistic Practices: Google broke antitrust laws to keep its monopoly on “general search services” and “general search text ads.”
Note: The Sherman Antitrust Act is a landmark U.S. federal law enacted in 1890 to promote competition and prevent monopolistic practices.
Advantageous position due to the “default” search engine: The Google company has an unseen advantage over its competitors where it’s search engine processes an estimated 8.5 billion queries per day worldwide.
The present judgment by US District of Colombia limits itself to the relevant geographic market of the US.
Paying billions to smartphone makers: Google was accused of paying billions to smartphone makers like Apple and Samsung to ensure Google was the default search engine on their devices and browsers.
How Do Monopolistic Practices Harm Consumer Experience?
Impact on Competition: Monopolistic practices, like those exhibited by Google, stifle competition by preventing rivals from entering the market and can lead to higher prices and reduced innovation.
Unfair Platform for Start-ups: The new start-ups would have to surmount the entry barriers to create a GSE of comparable quality to Google. These barriers would cost high capital, access to distribution channels, and brand recognition.
Quality Degradation: A monopolist may lose the incentive to improve the quality of its products, as there is little risk of losing customers to competitors.
The ruling highlighted that Google conducted a study in 2020 that showed it would not lose search revenue even if it significantly reduced the quality of its search product.
Limites the choices of consumer: When a company holds a monopoly, consumers are often left with few alternatives, allowing the monopolist to exploit its position.
Government Initiatives taken in India for similar line:
The Draft Competition Bill 2024: The Ministry of Corporate Affairs’ Bill prevents giant tech companies/ Systemically Significant Digital Enterprises (SSDEs) from participating in anti-competitive practices.
The Bill imposes restrictions on SSDEs, barring them from favouring their own products and services, and from using or sharing users’ personal data without their consent.
Big tech companies have objected to the Bill because the compliance burdens would shift focus from innovation and research.
Way forward:
Encouraging Innovation: Governments and regulatory bodies should support the development of alternative search engines and platforms through incentives, grants, and support for startups.
Banning Exclusive Agreements: Prohibit exclusive distribution agreements that make one product or service the default, ensuring that consumers have a choice and that competitors can fairly compete.
Mains question for practice:
Q Discuss the significance of India’s Competition Act, 2002 in regulating anti-competitive practices and promoting a fair market environment. 10M
From UPSC perspective, the following things are important :
Prelims level: Antibiotics resistance;
Mains level: Concerning aspects of Antibiotic use;
Why in the news?
While vital for treating infections, antibiotics can disrupt the microbiome by indiscriminately killing both harmful pathogens and beneficial gut bacteria, especially broad-spectrum types.
Various roles played by Antibiotics (Applications):
Treatment of Infections
Antibiotics are essential for treating bacterial infections, significantly reducing mortality rates associated with infectious diseases
For example, penicillin and other antibiotics, the mortality rate from strep throat dropped dramatically from 1% to less than 0.1%.
Preventing Disease Spread
Treating bacterial infections, antibiotics can prevent the spread of disease to other individuals
For instance, during the 2009 H1N1 influenza pandemic, antibiotics were used to treat secondary bacterial pneumonia, which was a major cause of death.
Reducing Complications
Antibiotics can reduce the risk of serious complications from bacterial infections.
For instance, In the case of urinary tract infections (UTIs), untreated infections can lead to kidney damage or life-threatening conditions like sepsis. However, with prompt antibiotic treatment, the risk of complications is greatly reduced
Supporting Medical Procedures
Antibiotics are used prophylactically to prevent infections before certain medical procedures
For example in surgery
Concerning Aspects of Antibiotic Use
Dysbiosis: The disruption of the microbiome, known as dysbiosis, can lead to severe health issues, including inflammatory bowel disease (IBD) and irritable bowel syndrome (IBS).
Increased Infection Risk: Antibiotics can reduce colonization resistance, which is the microbiome’s ability to prevent pathogenic microorganisms from establishing infections. This reduction increases the risk of infections by harmful bacteria, such as Clostridioides difficile.
Antimicrobial Resistance (AMR): Overuse of antibiotics contributes to the development of antimicrobial resistance, making it more challenging to treat infections. The global crisis of antibiotic resistance is exacerbated by the enrichment of antibiotic resistance genes within the gut microbiota due to antibiotic exposure.
Long-term Health Consequences: Repeated antibiotic use can prevent full recovery of the microbiome, leading to chronic health issues. Research shows that children who receive multiple courses of antibiotics are at higher risk for developing conditions like IBD later in life.
Impact on Other Organ Systems: Dysbiosis can affect various organ systems through gut-organ axes, influencing conditions such as mental health disorders (via the gut-brain axis), liver diseases (via the gut-liver axis), and skin conditions (via the gut-skin axis) due to altered immune responses and increased permeability.
Government initiatives:
The Indian Council of Medical Research (ICMR) has initiated an antibiotic stewardship program (AMSP) on a pilot basis in 20 tertiary care hospitals across India to control the misuse and overuse of antibiotics in hospital wards and ICUs.
ICMR collaborated with the Indian Council of Agriculture Research, Department of Animal Husbandry, Dairy and Fisheries, and the Drugs Controller General of India (DCGI) to ban the use of Colistin as a growth promoter in animal feed in poultry.
The Government of India launched the National Action Plan on Antimicrobial Resistance (NAP-AMR) in April 2017, focusing on a One Health approach.
Way forward:
Antibiotic Stewardship Programs: Implement and promote antibiotic stewardship programs in healthcare settings to ensure antibiotics are prescribed only when necessary and with the appropriate dosage and duration.
Probiotic Supplementation: Encourage the use of probiotics alongside antibiotic treatments to help maintain a healthy microbiome and mitigate the risks of dysbiosis and related health issues.
Mains PYQ:
Q Can overuse and free availability of antibiotics without Doctor’s prescription, be contributors to the emergence of drug-resistant diseases in India? What are the available mechanisms for monitoring and control? Critically discuss the various issues involved. (2014)
From UPSC perspective, the following things are important :
Mains level: Couse of CO2 emission and carbon sequestration;
Why in the News?
A new calculation suggests that climate models might be overestimating how long plants keep carbon before releasing it as per the recent study published in Science by an international research team.
Study by an International Team of Researchers:
A recent study published in Science by an international research team suggests that plants absorb more CO2 from the atmosphere than previously thought but release it back into their surroundings sooner than expected.
Researchers utilized climate models to analyze the impact of radiocarbon (carbon-14) from nuclear bomb tests on the carbon cycle. They tracked changes in radiocarbon levels in the atmosphere and how it was absorbed by plants during photosynthesis.
The study estimates that plants store around 80 billion tonnes of carbon per year, primarily in leaves and finer roots, which is higher than previous estimates of 43-76 billion tonnes. This indicates that plants may be cycling carbon through the atmosphere and soil more rapidly than previously thought.
Study from the Relics of the Cold War:
The nuclear bomb tests conducted during the Cold War inadvertently provided scientists with valuable data for climate research.
The tests released significant amounts of radiocarbon into the atmosphere, allowing researchers to study its movement and absorption by vegetation.
The presence of radiocarbon in the atmosphere serves as a marker for understanding carbon dynamics.
The study analyzed the radiocarbon levels before and after the 1963 Limited Test Ban Treaty, which halted atmospheric nuclear testing, providing insights into how carbon is cycled between the atmosphere and vegetation.
The study highlights that many climate models have not incorporated radiocarbon data, which could lead to inaccuracies in predicting carbon cycling and its impact on climate change.
Only one model, the Community Earth System Model 2, has accounted for radiocarbon, but it predicted lower absorption levels than the study found.
How the Whole System is Cycling Faster?
Accelerated Carbon Exchange: The researchers concluded that the entire carbon cycle is operating faster than previously understood.
This means that while plants absorb more CO2, they also release it back into the atmosphere more quickly, leading to a more dynamic and less stable carbon storage system.
Implications for Climate Mitigation: The findings suggest that strategies relying on plant carbon sequestration to offset fossil fuel emissions may need to be reevaluated.
If plants are releasing carbon sooner than expected, the potential for mitigating climate change through natural carbon sinks could be less effective than previously thought.
Way forward:
Incorporate Radiocarbon Data: Integrate radiocarbon data into existing and future climate models to more accurately predict carbon cycling and the role of vegetation in carbon sequestration. This will lead to more reliable forecasts of climate change impacts and inform better policy decisions.
Develop Dynamic Carbon Cycle Models: Improve models to account for the faster carbon cycling observed, ensuring they reflect the actual pace at which carbon is absorbed and released by plants. This will help in refining strategies for climate mitigation.
From UPSC perspective, the following things are important :
Prelims level: Nankai Trough
Why on the News?
Japanese authorities have warned its citizens of a ‘megaquake’ and large tsunamis along the Nankai Trough.
What is the Nankai Trough?
The Nankai Trough is an extensive subduction zone, nearly 900 km long.
It is the place of collision of the Eurasian Plate over the Philippine Sea Plate.
This trough has a history of producing large earthquakes approximately every 100 to 150 years.
The most recent Nankai Trough quake happened in 1946 with magnitude 8.0 tremor and 6.9 metre tsunami, killing 1,330 people.
Potential for a Megaquake:
Japan’s researchers estimated in January 2022 that there is a roughly 70% chance of a magnitude 8-9 megaquake striking the Nankai Trough within next 30 years.
Such a quake could affect a vast region stretching from central Shizuoka, about 150 km south of Tokyo, to southwestern Miyazaki.
PYQ:
[2014] Explain the formation of thousands of islands in Indonesian and Philippines archipelagos.
From UPSC perspective, the following things are important :
Prelims level: Perseid Meteor Shower
Why in the News?
The Perseid meteor shower, which began in July, is currently at its peak activity from August 11 to 13, 2024.
About Perseid Meteor Shower
Details
Origin
Named after the constellation Perseus, from which the meteors appear to originate.
Cause
Caused by debris left behind by Comet Swift-Tuttle as it orbits the Sun.
How It Occurs
Consists of ice, rock, and dust particles shed by Comet Swift-Tuttle.
Earth passes through this debris field annually between mid-July and late August.
Particles enter Earth’s atmosphere at around 214,000 km/h, causing them to heat up and create bright streaks of light.
Discovery
The connection between the Perseid meteor shower and Comet Swift-Tuttle was established in 1862 by Lewis Swift and Horace Tuttle.
Historical Observations
Observed for centuries, with records dating back to ancient Chinese, Japanese, and European civilizations.
Impact of Earth’s Gravity
Earth’s gravity pulls particles from the debris field, causing them to enter the atmosphere.
Larger particles can create fireballs—bright meteors that are more intense and last longer.
Note: In the 1990s, scientists feared comet Swift-Tuttle might hit Earth or the Moon in 2126, but later calculations confirmed safety for two millennia.
PYQ:
[2011] What is the difference between asteroids and comets?
Asteroids are small rocky planetoids, while comets are formed of frozen gases held together by rocky and metallic material.
Asteroids are found mostly between the orbits of Jupiter and Mars, while comets are found mostly between Venus and Mercury.
Comets show a perceptible glowing tail, while asteroids do not.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 3 only
(d) 1, 2 and 3
Prelims Only | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Diamond Imprest Licence
Why in the News?
Union Minister for Commerce and Industry has introduced Diamond Imprest Licence at the 40th edition of the India International Jewellery Show (IIJS) 2024.
The event was organized by the Gem & Jewellery Export Promotion Council (GJEPC).
What is the Diamond Imprest Licence?
The Diamond Imprest Licence is a regulatory framework introduced by the Indian government to facilitate the import of diamonds for exporters, particularly benefiting Micro, Small, and Medium Enterprises (MSMEs) in the diamond industry.
It will allow Indian diamond exporters who meet a certain export turnover threshold to import up to 5% of their average export turnover over the preceding three years.
This policy aims to create a level-playing field for MSME diamond exporters, enabling them to compete more effectively with larger industry peers.
About the Gem & Jewellery Export Promotion Council (GJEPC )
Details
Establishment
Established in 1966 by the Ministry of Commerce and Industry, Government of India.
Granted an autonomous status in 1998.
Headquarters
Mumbai, India
Regional offices in New Delhi, Kolkata, Chennai, Surat, Jaipur
Membership
Represents almost 7,000 exporters from across India.
Role and Functions
Promotes exports of gems and jewellery
Presents industry issues to the government and recommends policy interventions.
Common Facility Centers (CFCs)
Established in Amreli, Visnagar, Palanpur, and Junagadh in Gujarat.
Services include planning, laser sawing, and cutting facilities to process diamonds.
Awards
Organizes premier jewellery design competitions and awards, celebrating creativity and innovation in jewellery design.
Key Events
Hosts the Design Inspirations seminar annually in Mumbai, educating jewellers, designers, and students about upcoming trends in India, Europe, and the US.
Educational Institutes
Operates 7 educational institutes across five cities, including the Indian Institute of Gems & Jewellery (IIGJ) in Mumbai, Jaipur, Delhi, Varanasi, and Udupi.
Gemmological Laboratories
Gemmological Institute of India (GII), Mumbai: Established in 1971, focusing on gemological training, research, and certification.
Gem Testing Laboratory, Jaipur: Specializes in grading and certifying colored gemstones.
Indian Gemological Institute, New Delhi: Provides gem testing and certification services, particularly for the North Indian market.
PYQ:
[2018] Which one of the following foreign travelers elaborately discussed about diamonds and diamond mines of India?
From UPSC perspective, the following things are important :
Prelims level: A23a Iceberg
Why in the News?
A23a, the world’s largest iceberg, has recently started spinning in place after drifting away from Antarctica in 2020.
Now it is near South Orkney Islands, about northeast of the Antarctic Peninsula.
What is A23a?
A23a is an iceberg, about 3,855 square kilometers in area, which is 5 times the size of New York City.
It was originally part of an even larger iceberg called A23.
It broke off from the Filchner Ice Shelf in Antarctica in 1986.
What is happening with A23a?
It is now trapped over a seamount, and is spinning slowly in place.
It is completing a full spin approximately in 24 days.
Reason behind the spinning: Icebergs spin in Iceberg Alley because they get pulled by the strong Antarctic Circumpolar Current, moving into warmer waters where they melt.
Implications
A23a’s melting does not contributetoglobal sea level rise since it is already floating.
Its extended stay in this vortexcould impact marine life in the area, especially plankton and other organisms in the food chain.
The situation also provides a unique opportunity for scientists to study how such large icebergs behave in the ocean.
PYQ:
[2021] With reference to the water on the planet Earth, consider the following statements:
1. The amount of water in the rivers and lakes is more than the amount of groundwater.
2. The amount of water in polar ice caps and glaciers is more than the amount of groundwater.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
[2021] How do the melting of the Arctic ice and glaciers of the Antarctic differently affect the weather patterns and human activities on the Earth? Explain.
