The Wholesale Price Index (WPI) represents the price of goods at a wholesale stage, meaning goods that are sold in bulk and traded between organizations instead of consumers. It is used as a measure of inflation in some economies.
How is it calculated.?
WPI is reported monthly to show the average price changes of goods.
The total costs of the goods in one year are compared with the total costs in a base year.
The total prices for the base year are equal to 100. Prices from other years are compared to that total and expressed as a percentage of change.
WPI in India:
Used as an important measure of inflation in India, accounting for the change in the price of goods only.
Published by the Office of Economic Adviser, Ministry of Commerce and Industry, Government of India.
The current series of WPI, with the base year of 2011-12, is the seventh revision, implemented from 2017 onwards.
Major Components of WPI:
Primary Articles: Subdivided into Food Articles and Non-Food Articles (Oil Seeds, Minerals, and Crude Petroleum).
Fuel & Power: Tracks price movements in Petrol, Diesel, and LPG.
Manufactured Goods: The biggest basket, including Textiles, Apparels, Chemicals, Cement, Metals, Sugar, Tobacco Products, Vegetable, and Animal Oils, etc.
WPI Food Index: A sub-index within WPI, includes Food Articles from the Primary Articles basket and food products from the Manufactured Products basket.
Significance of WPI:
An easy and convenient method to calculate inflation.Fiscal and Monetary Policy changes are greatly influenced by changes in WPI.
Criticism of WPI:
Does not account for inflation at the level of the ordinary public because they do not buy products at wholesale prices.
Excludes the service sector, which covers about 55% of GDP.
Has an inbuilt bias due to double counting of the same product and doesn’t include exports and imports.
What is the Producer Price Index (PPI).?
Definition:
The Producer Price Index (PPI) measures wholesale prices from the point of view of producers of goods and services by tracking prices at different stages of production. It looks at inflation from the viewpoint of industry and business, measuring price changes before consumers purchase final goods and services.
Significance:
PPI has replaced WPI in most countries as it aligns conceptually with the internationally agreed System of National Accounts (SNA) to compile measures of economic activity.
Challenges in Shifting from WPI to PPI:
Time-Consuming Process: Addressing the issues of preparing the right samples, assigning the weighting, and deciding on the periodicity (whether monthly or weekly) of the price collection.
Biggest Challenge: Identifying which services to include and determining the correct representatives of the sector.
WPI’s Continued Relevance: WPI is still widely followed as a measure of inflation and is used alongside the Consumer Price Index (CPI) to calculate real GDP from nominal GDP.
Updating Base Year: The government is also working towards changing the current base year of 2011-12 for WPI.
A recent development where, for the first time, 11 candidates from the 2024 Lok Sabha and State Assembly elections have requested verification of the “burnt memory” of EVMs and VVPAT units.This option, made available by a Supreme Court order in April 2024, allows candidates to verify the data stored in the non-volatile memory of these voting devices.
Burnt Memory of EVMs and VVPAT Units
♦️EVMs: Store votes cast, machine configuration, and operational details.
♦️VVPATs: Store printed records of votes as a verifiable paper trail.
♦️Aim: Verify integrity and accuracy of recorded election results.
April 2024 Supreme Court Order
♦️Rejection of Plea: The Supreme Court rejected a plea for 100% verification of VVPAT slips and returned to ballot papers.
♦️Verification Permission: Directed the Election Commission of India (ECI) to allow verification of burnt memories upon request by second- and third-placed candidates.
♦️Scope: Verification applies to up to 5% of machines in a constituency, requested by identifying EVMs by polling station or serial numbers.
♦️Cost: Candidates must cover verification costs, refundable if tampering is found.
♦️Timing: Requests must be made within seven days of result declaration.
Process for Verification
♦️Technical SOP: Pending finalization by the ECI, expected to be ready for the first verifications likely in August.
♦️Administrative SOP: Released on June 1, detailing responsibilities and procedures.
♦️Responsibilities: The District Election Officer (DEO) manages the process; candidates request verification in writing and pay a deposit.
♦️Verification Timing: Begins after the 45-day period post-results, during which Election Petitions can be filed. If a petition is filed, verification starts only after a court order.
Verification Details
♦️Facilities: Conducted at manufacturer facilities with strong rooms and CCTV.
♦️Security: Single entry/exit with armed police, no electronic devices allowed.
♦️Outcome: Earliest results expected by mid-August.
This process ensures a transparent and secure method for verifying the integrity of election results, addressing concerns of candidates regarding possible tampering.
The 2024 Global Gender Gap Index paints a troubling picture for India, ranking it 129th out of 146 countries. Despite some progress, India remains in the bottom 20 percentile, showing persistent gender disparities.
Understanding the Global Gender Gap Index
The Global Gender Gap Index, developed by the World Economic Forum in 2006, measures gender equality across four sub-indices: economic participation and opportunity, educational attainment, health and survival, and political empowerment.
Each sub-index aggregates various indicators to give a score ranging from 0 (complete disparity) to 1 (complete parity). The index highlights relative gender gaps rather than absolute statuses, offering valuable insights into measurable and trackable areas.
India’s Performance in Sub-indices
Health and Survival
India scores 0.951, closing 95.1% of the gender gap in health and survival, yet ranks 142nd out of 146 countries. This paradox indicates significant progress but also reveals that other countries have advanced more rapidly.
Educational Attainment
India has closed 96.4% of the gender gap in education, ranking 112th globally. While the achievements are notable, other nations have made more significant strides, reflecting India’s relative lag.
Economic Participation and Opportunity
With a score of 39.8%, India ranks 142nd in economic participation and opportunity. Although this is an improvement from 32.6% in 2021, it remains significantly lower than the 2012 score of 46%. Factors such as labor force participation, managerial positions, wage gaps, and wage parity contribute to this low score. Countries with similar economic parity challenges include Bangladesh, Sudan, Iran, Pakistan, and Morocco.
Political Empowerment
India has closed only 25.1% of the gender gap in political empowerment, ranking 65th globally, a significant drop from the 51st position in 2021. This decline reflects reduced political participation for women over the past decade, indicating regression in this area.
Regional Comparison and Broader Economic Implications
Regional Comparison
Within South Asia, which ranks seventh out of eight global regions, India is fifth among seven countries, with Bangladesh leading at 99th globally. This regional standing highlights India’s struggles with gender parity compared to its neighbors.
Economic Implications of Gender Inequality
Gender inequality has substantial economic costs. The OECD estimates that gender-based discrimination in social institutions could cost the global economy up to $12 trillion. Mainstreaming gender equality into economic policy-making can significantly boost GDP growth rates.
Social Implications and Long-term Benefits of Gender Equality
Gender equality is crucial not just economically but also socially. Empowering women leads to better health, education, and social stability outcomes. Women’s economic empowerment positively impacts their children’s education and health, creating a beneficial intergenerational effect. Inclusive decision-making in corporate and political spheres results in more equitable policies and societies.
Key Strategies to Address Gender Inequality
Educational Investments
Equal access to education for girls and women.Promotion of STEM education for girls to bridge gender gaps in high-paying fields.
Supportive Work Environments
Policies supporting work-life balance, such as maternity/paternity leave, affordable childcare, and flexible hours, to encourage female workforce participation.
Equal Pay Legislation
Enforcing equal pay laws.Implementing transparent pay structures and regular audits.
Entrepreneurship Support
Providing capital, training, and mentorship for women entrepreneurs to stimulate economic growth.
Inferences
India’s position in the 2024 Global Gender Gap Index underscores significant challenges, particularly in economic participation and political empowerment. Recognizing the economic and social benefits of gender equality, India must integrate gender considerations into its core economic strategies and foster a societal environment that treats women as equal stakeholders in all aspects of life.
Coal India Limited has awarded abandoned coal mines to private players on a revenue-sharing model to boost domestic production and reduce imports.
23 mines, with a capacity of 34.14 MTPA and reserves of 635 MT, were closed for technical or financial reasons.
The initiative aims for quicker production turnaround and environmental benefits, with a goal to outsource 90% of coal excavation in five years.
Mines will sell coal at market prices through auctions, supporting coal gasification projects.
CIL reported a 7.28% increase in coal production, reaching 160.25MT, and a 27% growth in production from captive and commercial mines.
Revenue Sharing Model for Coal Plants
▪️Structure: Private players operate abandoned or underutilized coal mines on a revenue-sharing basis with CIL.
▪️Revenue Split: Revenue from coal sales is shared between CIL and private operators based on agreed terms.
▪️Identification of Mines: 23 mines, mostly underground, with a combined capacity of 34.14 MTPA and reserves of 635 MT, were identified.
▪️Operational Mechanism: Private operators (Mine Developer and Operators – MDOs) handle coal extraction and production, with autonomy over technology and methods.
▪️Auction Process: Coal is sold at market-driven prices through an auction process managed by operators on behalf of the authority.
India’s Dependence on Coal for Energy Supply
Despite increasing renewable energy capacity, coal provides around 70% of India’s electricity.
By 2050, coal is expected to account for at least 21% of India’s electricity needs.
Easily Available Source of Power: Alternatives like nuclear energy face high costs and safety concerns.
Developmental Needs: India is projected to have the largest growth in energy demand from 2020 to 2040.
Source of Employment: The coal sector employs around 4 million people directly or indirectly and supports 500,000 pensioners.
Government Revenue: Coal India Limited is a significant revenue source for both state and central governments.
Problems With Coal Found in India
High Ash Content:
▪️Issue: Indian coal has ash content ranging from 20% to 45%.
▪️Impact: Reduces calorific value, increases handling and transportation costs, and results in more waste and pollution.
Lower Calorific Value:
▪️Issue: Indian coal has lower energy content compared to imported coal.
▪️Impact: Requires burning more coal for the same energy output, leading to higher emissions and inefficiencies.
Limited Coking Coal:
▪️Issue: Shortage of high-quality coking coal, crucial for steel production.
▪️Impact: Necessitates imports, increasing costs and dependence on foreign sources.
Environmental Concerns:
▪️Issue: Coal mining and combustion contribute to air pollution, water contamination, and deforestation.
▪️Impact: Adverse health impacts and climate change implications make coal less sustainable long-term.
Types of Coal in India
India has four primary types of coal, categorized based on carbon content and energy potential:
▪️Anthracite: Highest carbon content, highest energy potential.
▪️Bituminous: Lower carbon content than anthracite, used widely in electricity generation and industry.
▪️Sub-bituminous: Lower carbon content than bituminous, used in power generation.
▪️Lignite: Lowest carbon content, used mainly in electricity generation.
India’s Coal Reserves
Commercial coal mining began in 1774 with the East India Company along the Damodar River in West Bengal.
70% of India’s coal supply comes from Jharkhand, Chhattisgarh, Odisha, West Bengal, and Madhya Pradesh.
State-owned Coal India Limited (CIL) has a near-monopoly, producing roughly 75% of the coal used in India’s coal-fired power stations.
Distribution of Coal Across the World
Coal is a crucial resource for energy and chemicals.
Proven coal reserves are typically measured in Millions of Tons of Coal Equivalent (MTCE).
Nearly 75% of the world’s recoverable coal resources are controlled by five countries:
The recent announcements by India’s Law and Justice Minister and Home Minister mark a significant shift in the nation’s criminal justice landscape. With the National Litigation Policy aiming for governmental efficiency and the introduction of three new criminal laws set to take effect on July 1, 2024, this overhaul raises critical questions about the potential impact on citizens’ rights and the efficiency of the judiciary.
The Core of Criminal Law and Compliance
Criminal law is foundational in safeguarding individuals’ life and liberty, as enshrined in Article 21 of the Indian Constitution. Traditionally governed by the Criminal Procedure Code (CrPC) and defined by the Indian Penal Code (IPC), these legal frameworks are now revised, introducing new crimes and redefining existing ones. The procedural adherence mandated by these laws ensures that deprivations of liberty comply with established legal norms.
Potential Impacts of the New Criminal Laws
1. Increased Complexity and Legal Uncertainty
The National Litigation Policy aims to streamline government litigation and reduce associated costs. However, the new criminal laws complicate this objective by revising almost every section of the IPC, CrPC, and Indian Evidence Act. This overhaul introduces a period of adjustment where legal practitioners and law enforcement must familiarize themselves with new provisions, leading to increased legal disputes and higher legal costs.
2. Burden on Legal Practitioners and the Judiciary
Adapting to the revised laws will impose a significant learning curve on legal practitioners, requiring extensive training and the drafting of new legal strategies. The judiciary, already overburdened, will face a surge in cases as old and new legal frameworks coexist, leading to disputes over applicable laws and procedures. This duality confuses legal proceedings and lengthens the legal process, straining judicial resources.
3. Increased Litigation and Case Backlogs
With over 83,000 criminal cases pending in Indian courts, the introduction of new laws is likely to exacerbate this backlog by an estimated 30%. As practitioners and the judiciary grapple with the new legal landscape, the number of pending cases will surge, causing interminable delays and further straining judicial efficiency.
4. Financial Implications for the Accused
Individuals accused under the new laws will face significant financial burdens. Legal representation will become more costly as lawyers invest time in understanding and arguing the new legal framework’s nuances. This situation disproportionately affects lower socio-economic individuals, potentially compromising their right to a fair trial.
5. Additional Legal Costs for the Government
Increased litigation will require the government to allocate more resources for legal representation and court proceedings, contradicting the National Litigation Policy’s goal of reducing governmental legal expenditure. Funds that could be used for public welfare programs will instead be diverted to manage the increased caseload.
6. Infrastructure Upgrades and Resource Allocation
To handle the increased burden, significant upgrades to the judiciary’s infrastructure are necessary, including hiring additional judges and expanding court facilities. Without these upgrades, the judicial system will become overwhelmed, leading to further delays and inefficiencies. The financial and logistical resources required for these upgrades are substantial and must be carefully planned and audited.
Other Areas of Concern
Dual Systems of Criminal Justice
From July 1, the coexistence of old and new criminal justice systems will complicate legal proceedings. Disputes over which procedures apply will lead to further delays as these issues reach higher courts, compromising citizens’ rights in an unpredictable legal environment.
Disrespect for Judicial Precedents
The Bharatiya Nagarik Suraksha Sanhita, 2023, mandates preliminary inquiries in every cognizable offense punishable by three to seven years of imprisonment, contradicting the Supreme Court’s ruling in Lalita Kumari vs Government of Uttar Pradesh (2013). This undermines judicial authority and suggests legislative actions can override judicial protections of liberties.
Risk of Dual Prosecution
Incorporating stringent provisions from the Unlawful Activities (Prevention) Act (UAPA) into the new laws allows for dual prosecution under different agencies, increasing complexity and potential abuse within the legal system. This threatens citizens’ rights and liberties.
Potential Solutions and Recommendations
To mitigate these impacts, it is crucial to conduct a comprehensive judicial audit before the new laws come into force. This audit should assess the potential increase in litigation, necessary infrastructural upgrades, and financial implications for both the government and private citizens. Additionally, phased implementation and extensive training for legal practitioners and judiciary members can ease the transition. Enhanced legal aid services are essential to ensure access to justice for lower-income individuals.
Conclusion
The introduction of the National Litigation Policy, alongside the new criminal laws, presents a paradox. Without a comprehensive judicial audit and thorough evaluation, these laws risk undermining fundamental rights and access to justice. It is imperative to delay their enforcement until their implications are fully addressed, ensuring they contribute positively to India’s legal landscape.
The recent fire tragedies at a gaming zone in Gujarat’s Rajkot and a children’s hospital in Delhi have claimed the lives of at least 40 people in a span of 24 hours.
This has shifted the spotlight on fire safety regulations and the need for stringent enforcement of safety measures, particularly in buildings vulnerable to man-made disasters.
According to the latest Accidental Deaths and Suicides in India (ADSI) Report, released by the National Crimes Records Bureau (NCRB), as many as 7,435 people were killed in over 7,500 fire accidents in 2022.
Fire Safety Regulations in India:
Published in 1970, the National Building Code (NBC) is India’s central standard for fire safety. It was last updated in 2016.
It provides detailed guidelines for general construction, maintenance, and fire safety of buildings.
State governments are required to incorporate NBC recommendations into local building bylaws, as fire services are a state subject.
The ‘Model Building Bye Laws 2016’ guide states and urban areas in drafting building bylaws.
Apart from that, the National Disaster Management Authority (NDMA) also provides guidelines on fire safety in homes, schools, and hospitals.
About the National Building Code:
The National Building Code outlines measures to ensure fire safety, focusing on measures that can be reasonably achieved.
It defines fire zones, such as residential areas and educational institutions, to prevent industrial and hazardous structures from coexisting with residential, institutional, and business buildings.
The Code also categorizes buildings into nine groups based on occupancy, such as hotels, hospitals, and assembly buildings.
It emphasizes the use of non-combustible materials and minimum 120-minute rating for internal walls in staircase enclosures.
The Code also outlines maximum height, floor area ratio, open spaces, and fire-resistant openings.
The Code emphasizes the importance of flame-retardant electrical installation, with medium and low voltage wiring in separate shafts and false ceilings.
All metallic items should be bonded to the earthing system.
An emergency power-supplying distribution system is recommended for critical requirements, including exit signage, lighting, fire alarm systems, and public address systems.
The Code also recommends technologies for fire protection, such as automatic fire detection systems, down-comer pipelines, sprinklers, fireman’s lifts, fire barriers, and escape routes.
Challenges Associated with Fire Safety in India:
Fire safety rules in all states, including the National Building Code (NBC), are often ignored due to the absence of uniform safety legislation and the NBC being a “recommendatory document.”
Even mandatory certifications are not complied with. Fire safety audits are underutilized due to the failure of local bodies to conduct regular checks and enforce compliance.
Shortage of staff exacerbates the issue, leading to tragic loss of lives in fires like the Rajkot game zone and Delhi hospital fires.
The National Institute of Disaster Management (NIDM) highlights the need for community resilience and compliance with safety norms.
Proposals by the Reserve Bank of India (RBI) aimed at enhancing the safety, security, and efficiency of digital payments, along with fostering innovation and inclusivity in the financial ecosystem.
Here’s a summary of the key points:
Establishing a Digital Payments Intelligence Platform
Proposal: The RBI plans to set up a Digital Payments Intelligence Platform to use advanced technologies to mitigate payment fraud risks.Committee
Formation: A committee chaired by AP Hota (former MD & CEO of NPCI) will oversee the establishment of this platform and is expected to provide recommendations within two months.
Need for the Platform:Domestic payment frauds have significantly increased, with a 70.64% rise in value and a substantial increase in the volume of frauds over a six-month period ending March 2024.The rise in fraud correlates with the rapid adoption of the Unified Payments Interface (UPI) since 2016, which saw a 137% growth in transactions over the past two years.
Other Proposals by RBI
▪️Raising Bulk Deposits Limit: Commercial Banks and Small Finance Banks: The definition of bulk deposits will change from single rupee term deposits of Rs 2 crore and above to Rs 3 crore and above.
▪️Local Area Banks: The bulk deposit limit will be set at Rs 1 crore and above, similar to regional rural banks (RRBs).
Interest Rates: Banks can offer differential interest rates on bulk deposits based on their needs and Asset-Liability Management (ALM) projections.
▪️Automatic E-mandate for Recurring Transactions:
Fastag and NCMC Replenishment: Automatic replenishment will be triggered when balances fall below a threshold set by the customer.
E-mandate Framework: Current requirements for a pre-debit notification will be exempted for these payments to facilitate smoother transactions.
▪️UPI Lite E-mandate Framework:
Auto-replenishment: Introducing an auto-replenishment feature for the UPI Lite wallet when balances fall below a set threshold.
Transaction Limits: UPI Lite allows loading up to Rs 2000 and payments up to Rs 500 without additional authentication.
▪️Rationalizing Guidelines on Export and Import of Goods and Services:
Simplification: The guidelines will be updated to reflect the changing dynamics of global trade, aiming to simplify operational procedures.
Ease of Doing Business: These changes are intended to promote ease of doing business for stakeholders involved in cross-border trade.
These proposals are part of RBI’s ongoing efforts to strengthen the digital payments landscape, enhance security, and streamline banking operations in India.
The Union Finance Ministry has recommended restricting arbitration clauses in government contracts to disputes of less than ₹10 crore.
What is Arbitration.?
Arbitration is a dispute resolution mechanism that provides an alternative to traditional court litigation. It involves parties agreeing to resolve their disputes through one or more arbitrators whose decision is binding.
Unlike mediation, where a neutral third party helps the disputing parties reach a voluntary settlement, arbitration results in a binding resolution. Arbitration is commonly used in commercial and investment disputes, providing a structured process that can be faster and less formal than court proceedings.
Types of Arbitration:
1. Commercial Arbitration:
Definition: Used for resolving disputes arising from commercial contracts or transactions.
Common Areas: Business disputes, breach of contract, partnership disputes.
2. International Arbitration:
Definition: Involves parties from different countries, often used in international commercial and investment disputes.
Institutions: Conducted under rules of institutions like the International Chamber of Commerce (ICC) or the London Court of International Arbitration (LCIA).
3. Domestic Arbitration:
Definition: Takes place within a single country, involving parties from the same jurisdiction.
Common Areas: Local business disputes, real estate conflicts, employment disputes.
4. Ad hoc Arbitration:
Definition: Conducted independently by the parties without institutional involvement, using agreed-upon rules or those established by the arbitrator.
Flexibility: Offers more flexibility but requires parties to handle administrative tasks.
5. Consumer Arbitration:
Definition: Resolves disputes between consumers and businesses, typically based on arbitration clauses in consumer contracts.
Focus: Aims to provide a faster and less expensive resolution compared to court litigation.
Arbitration Laws in India:
Key Legislation:
Arbitration and Conciliation Act, 1996: The primary legislation governing arbitration in India, incorporating provisions from the UNCITRAL Model Law and UNCITRAL Arbitration Rules.
Arbitration and Conciliation (Amendment) Act, 2021: Latest amendment aimed at improving the arbitration framework.
Notable Provisions:
Unconditional Stay on Awards: Automatic stay on enforcement of arbitral awards if the arbitration agreement or contract is prima facie fraudulent or corrupt.
Qualifications of Arbitrators: Specified qualifications and experience required for arbitrators.
Arbitration Institutions in India:
▪️Indian Council of Arbitration (ICA)
▪️International Centre for Alternative Dispute Resolution (ICADR)
▪️Mumbai Centre for International Arbitration (MCIA)
▪️Delhi International Arbitration Centre (DIAC)
Recent Recommendation by the Finance Ministry:
The Union Finance Ministry has recommended several measures to streamline arbitration processes in government contracts:
Upper Limit for Arbitration: An upper limit of ₹10 crore for arbitration in government contracts.
Exclusion in Large Contracts: Arbitration clauses should not be automatically included in large contracts.
Addressing Cost and Perception Issues: Acknowledging that arbitration can be expensive and time-consuming, and addressing perceptions of wrongdoing and collusion among arbitrators.
Promoting Amicable Settlements: Encouraging government entities to settle disputes amicably using contract mechanisms.
Pragmatic Decision-Making: Emphasizing pragmatic decisions in the long-term public interest, considering legal and practical realities.
High-Level Committee for High-Value Cases:
Composition: Should include a retired judge and a retired top official or technical expert.
Role: Resolve high-value cases by negotiating directly with the other party and proposing solutions.
Mediation Role: The committee can also act as a mediator.
Judiciary’s Opinion on Arbitration:
The judiciary in India supports the push towards arbitration as a preferred method for resolving commercial disputes. Chief Justice of India Chandrachud emphasized that arbitration is increasingly becoming the preferred method for seeking commercial justice, rather than being an alternative to litigation. He highlighted the need for India to promote a culture of commercial arbitration to become a leading international destination for such disputes.
The Health Ministry and the Insurance Regulatory and Development Authority of India (IRDAI) are collaborating to launch the National Health Claim Exchange (NHCX).
This digital platform aims to enable patients to access quality healthcare quickly and reduce out-of-pocket expenses. NHCX will connect insurance companies, healthcare service providers, and government insurance scheme administrators to streamline healthcare access and claims.
Current Claim Processing
▪️Overview:
Patients currently provide their insurance details or a card issued by a Third-Party Administrator (TPA) or insurance company when visiting a hospital.
For PMJAY beneficiaries, the card is issued by the State Health Agency (SHA).
Hospitals upload documents for preauthorization or claim approval via specific portals.
The claims are authenticated and digitized by the SHA, insurance company, or TPA, and then adjudicated by the relevant team.
Unlike in many developed countries where over 90% of claims are auto-adjudicated, much of India’s process is manual.
▪️Challenges:
Lack of standardization across the ecosystem.
Data exchange is mostly through PDFs or manual methods without established health standards.
Significant variability in processes among insurers, TPAs, and providers.
National Health Claim Exchange (NHCX)
▪️About:
The NHCX Specification is a communication protocol for the seamless exchange of health claim information among payers, providers, beneficiaries, and other entities.
It is designed to be interoperable, machine-readable, auditable, and verifiable.
The protocol aligns with IRDAI’s goal of ‘Insurance for All by 2047’ and supports streamlined, paperless, and secure interactions between hospitals and insurers.
Industry experts expect it to standardize healthcare pricing, improving efficiency, predictability, and transparency in healthcare costs.
▪️Expected Working:
NHCX will act as a gateway for exchanging claims-related information among healthcare and insurance stakeholders.
It will centralize health claims, reducing administrative burdens on hospitals that currently use multiple portals.
Twelve insurance companies and one TPA have completed integration with NHCX.
New mandates require that all cashless insurance claims be processed within three hours of receiving discharge authorization from the hospital, with a deadline for implementation by July 31.
▪️Incentives under NHCX:
The Digital Health Incentive Scheme (DHIS), introduced in January 2023, promotes digital health transactions and the digitization of patient health records.
Hospitals receive financial incentives of ₹500 per insurance claim transaction through NHCX or 10% of the claim amount, whichever is lower.
Why is NHCX Being Brought In?
Study Findings: The paper ‘Health Insurance Coverage in India: Insights for National Health Protection Scheme’ highlights the role of health insurance in providing healthcare services and reducing high out-of-pocket expenses.
It shows that hospitalization rates are highest for those with private insurance in general, with urban areas seeing higher cases under government-funded schemes and rural areas under private insurance.
Urban areas have higher in-patient cases compared to rural areas.Challenges:
Challenges:
Health insurance represents about 29% of the total general insurance premium income in India.
Improving relationships between hospitals and insurance companies requires digitization efforts, IT system upgrades, and workforce training.
Other issues include discharge delays and miscommunication, complicating the process.
Efficient service delivery is crucial for building trust among policyholders.
The introduction of NHCX aims to address these challenges by streamlining and digitizing the claim process, thereby enhancing the overall efficiency and reliability of healthcare services in India.
To expedite the IPO process, SEBI will now require additional information from Lead Managers when they file draft documents. This includes details on pre-IPO placements, shareholders, previous agreements, and ESOP allottees.
This move aims to reduce the average time taken to clear the Draft Red Herring Prospectus (DRHP), which has already decreased to less than 90 days in 2024 from 126 days in 2022 and 108 days in 2023. From 2021 to 2023, India saw 160 IPOs, raising nearly 230,000 crore INR.
About IPO
An Initial Public Offering (IPO) in India is a process through which a privately held company offers its shares to the public for the first time, becoming a publicly traded entity. The IPO allows companies to raise capital for expansion, debt repayment, or other financial goals, and provides an exit route for early investors.
Advantages of an IPO
▪️Fundraising for Growth and Expansion: Companies can raise substantial funds to fuel their growth, undertake capital expenditures, and enhance profitability.
▪️Exit Route for Existing Shareholders: Early investors and company founders can liquidate their stake, either partially or completely.
▪️Enhanced Reputation and Credibility: Listing on stock exchanges necessitates adherence to compliance and disclosure norms, fostering good corporate governance.
▪️Diversification of Ownership: Public listing leads to a diversified investor base, reducing the concentration of ownership and spreading risk.
Initial Public Offering (IPO)
▪️Definition: The process where a privately held company offers its shares to the public and becomes publicly traded.
▪️Purpose: Raising capital for expansion, debt repayment, and allowing early investors to realize gains.
▪️Regulatory Framework: Governed by SEBI, ensuring transparency and investor protection.
▪️Preparation: Involves preparing financial statements and a draft prospectus.
▪️Approval: SEBI reviews the draft prospectus for accuracy and completeness.
Pricing Methods:
▪️Book Building: Price determined by investor demand within a set price band.
▪️Fixed Price: Price pre-set and mentioned in the prospectus.Underwriters: Investment banks and financial institutions that assist in the IPO process.
▪️Bidding and Allotment: Investors bid for shares, and shares are allotted based on demand and company policy.
▪️Oversubscription may lead to proportionate allotment or a lottery system.
▪️Listing: Shares are listed on stock exchanges like BSE and NSE, enabling open market trading.
▪️Post-IPO Compliance: Ongoing disclosure and reporting requirements to maintain transparency and protect investors.
IPO-Related Norms in India
▪️Additional Disclosure Requirements: SEBI’s new norms require detailed information on pre-IPO placements, shareholders, previous agreements, and ESOP allottees.
▪️Reduced Processing Time: Average time to clear the DRHP has been reduced significantly, enhancing the efficiency of the IPO process.
The SEBI has set up a committee to review the ownership and economic structure of clearing corporations and suggest measures to ensure that clearing corporations function as resilient, independent, and neutral risk managers.
Usha Thorat Committee
SEBI has set up a committee chaired by Usha Thorat, former Deputy Governor of the RBI.
Objectives: To review the ownership and economic structure of clearing corporations.To suggest measures ensuring that clearing corporations function as resilient, independent, and neutral risk managers.
Key Tasks: Examine the feasibility and broaden the list of eligible investors who can hold shares in clearing corporations.Suggest categories of investors who can acquire stakes in these corporations.
Clearing Corporations
Definition: A Clearing Corporation is a financial institution acting as an intermediary between buyers and sellers in financial markets to ensure the smooth and efficient settlement of transactions.
Main Functions and Features
▪️Intermediary Role: Acts as the buyer to every seller and the seller to every buyer, a process called “novation.”
▪️Guaranteeing Settlement: Ensures transactions are completed even if one party defaults.
▪️Clearing and Settlement: Matches and confirms trade details and transfers funds and securities between parties.
▪️Risk Management: Manages market, credit, and liquidity risks by maintaining collateral and using risk mitigation techniques.
▪️Margin Requirements: Requires traders to deposit margins to protect against potential losses.
▪️Transparency and Efficiency: Standardizes procedures, improves liquidity, and ensures timely settlement of trades.
▪️Regulatory Oversight: Regulated by SEBI to ensure sound and stable operations, protecting market participants.
Example: Clearing Corporation of India Limited (CCIL)
Conclusion
The SEBI’s establishment of the Usha Thorat committee underscores the critical role of clearing corporations in maintaining the stability and integrity of the financial markets. By reviewing ownership structures and suggesting measures for enhanced resilience and neutrality, SEBI aims to further strengthen the financial infrastructure in India.
The Digital Competition Bill, 2024 aims to regulate large digital enterprises, ensuring fair competition and a level playing field in the digital space. Proposed in March 2024, the bill targets anti-competitive practices by big tech companies such as Google, Facebook, and Amazon, preventing them from favoring their own services or misusing data across their businesses. It includes provisions for pre-emptive regulations and heavy penalties for violations.
Need for the Bill
Current Framework: India’s existing ex post antitrust framework under the Competition Act, 2002, regulates market abuse after it occurs, leading to delays that can disadvantage smaller competitors.
Digital Market Complexity: The dynamic nature of digital markets makes ex post regulation less effective. An ex-ante framework, which anticipates potential harms and sets pre-determined rules, is proposed as a better solution.
Big Tech Practices: Historical instances of anti-competitive behavior by big tech firms, such as Google’s fine in 2023 for conduct in the Android ecosystem, highlight the need for stricter regulations.
Market Barriers: High entry barriers in the digital market stifle innovation and competition, reinforcing the dominance of a few large tech companies.
Key Proposals
Core Digital Services (CDS):
The bill identifies core digital services, including online search engines, social networking, video-sharing platforms, operating systems, web browsers, cloud services, advertising services, and various online intermediation services.
Systemically Significant Digital Enterprises (SSDEs):
Criteria: Enterprises providing CDS with significant presence and financial strength in India. Criteria include high turnover, merchandise value, market capitalization, and user base.
Obligations: Prohibited from self-preferencing, anti-steering, and restricting third-party applications. Violations can incur fines up to 10% of global turnover.
Associate Digital Enterprises (ADEs): Enterprises within a major tech group whose data sharing and business activities can benefit the core digital service of the group. ADEs are subject to the same obligations as SSDEs.
Criticism and Divergent Views:
While the IAMAI has expressed concerns about the need for ex-ante regulations, some of its members support swift implementation of measures to curb anti-competitive practices, highlighting a divide within the industry on the bill’s approach.
Four members of the Internet and Mobile Association of India (IAMAI) have expressed a divergent stance on the proposed Digital Competition Bill (DCB). They have written to the Ministry of Corporate Affairs (MCA) to quickly implement regulations that prevent anti-competitive practices.
Trade disruptions caused by attacks from Yemen’s Houthi rebels in the Red Sea have significantly impacted global shipping routes, leading to increased carbon emissions and environmental concerns. Here’s an overview of the key points and how these disruptions contribute to rising temperatures:
Suez Canal and its Importance:
▪️Location: Connects the Mediterranean Sea to the Red Sea through Egypt’s Isthmus of Suez.
▪️History: Built in 1869, nationalized by Egypt in 1956.
▪️Significance: Shortens the sea route between Asia and Europe, avoiding the long journey around the Cape of Good Hope and reducing travel distance by approximately 8,900 kilometers.
Current Trade Disruptions
▪️Attacks: Houthi militants began targeting commercial ships in the Red Sea in October 2023.
▪️Impact: Hundreds of ships have been diverted around the Cape of Good Hope, adding 10 to 15 days to their journey.
▪️Emissions:Example: A large container ship from China to Germany emits 38% more CO2, approximately 4.32 million kilograms, when rerouted around Africa instead of passing through the Suez Canal.
▪️UNCTAD’s Role: The United Nations Trade and Development (UNCTAD) reports increased sea days and higher greenhouse gas emissions due to these disruptions.
Environmental Impact
▪️Container Emissions:
Original Route: Each container emits around 1.07 tons of CO2.
Rerouted Journey: Each container emits approximately 1.35 tons of CO2, an increase of 0.28 tons per container.
▪️Data Analysis: Reuters tracked over 6,000 rerouted containers between Dec. 15, 2023, and March 31, 2024. By mid-February 2024, 586 container vessels were rerouted, resulting in an 82% decrease in container tonnage crossing the Suez Canal.
Broader Implications
▪️Global Trade Waterways: Simultaneous disruptions in the Red Sea and other key maritime routes, such as the Black Sea due to the Ukraine-Russia conflict and the Panama Canal due to climate-induced droughts.
▪️Economic Effects: These disruptions have far-reaching implications for inflation, food, and energy security.
United Nations Conference on Trade & Development (UNCTAD)
▪️Establishment: Permanent inter-governmental body formed in 1964.
Focus: Development issues, international trade, technology, finance, aid, and transport policies.
▪️Meetings: Held every four years, with the second conference in New Delhi, India, in 1968.
▪️Membership and Headquarters: 195 member countries, headquartered in Geneva, Switzerland.
Conclusion
The rerouting of ships due to Houthi attacks in the Red Sea has led to longer voyages, higher emissions, and increased costs. This exacerbates global environmental challenges, contributing to rising temperatures and highlighting the need for secure and efficient maritime trade routes.
Around 36% of India’s population is living in cities and by 2047 it will be more than 50%. The World Bank estimates that around $840 billion is required to fund the bare minimum urban infrastructure over the next 15 years. Against this backdrop, the AMRUT (Atal Mission for Rejuvenation and Urban Transformation) scheme was launched in June 2015, with its 2.0 version launched on October 1, 2021.
Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
AMRUT was launched to provide basic civic amenities to improve the quality of life for all especially the poor and the disadvantaged.
The focus of the Mission is on infrastructure creation that has a direct link to provision of better services to the citizens.
AMRUT 2.0
The target in the second phase of AMRUT is to improve;
⚫Sewage and septic management,
⚫Make our cities water safe cities,
⚫To ensure that no sewage drains anywhere in our rivers’.
In other words, AMRUT 2.0 focused on enhancing sewerage and septic management and to make all Indian cities water secure.
▪️Aim
Providing 100% coverage of water supply to all households in around 4,700 urban local bodies by providing about 2.68 crore tap connections
100% coverage of sewerage and septage in 500 AMRUT cities by providing around 2.64 crore sewer or septage connections
▪️Principles and Mechanism
AMRUT 2.0 will adopt the principles of circular economy and promote conservation and rejuvenation of surface and groundwater bodies.
The Mission will promote data led governance in water management and Technology Sub-Mission to leverage latest global technologies and skills.
‘Pey Jal Survekshan’ will be conducted to promote progressive competition among cities.
▪️Coverage
Extends coverage from 500 cities under the first phase to 4,700 cities and towns.
It will benefit more than 10.5 crore people in urban areas.
Analysis of AMRUT scheme
▪️Performance of scheme
The AMRUT dashboard shows that as of May 2024, a sum of ₹83,357 crore has been dispersed so far.
This amount has been utilised to provide a total of 58,66,237 tap connections, and 37,49,467 sewerage connections.
A total of 2,411 parks have been developed, and 62,78,571 LED lights have been replaced.
▪️Criticism
It is estimated that about 2,00,000 people die every year due to inadequate water, sanitation and hygiene.
In 2016, the disease burden due to unsafe water and sanitation per person
was 40 times higher in India than in China. This has not improved much.
Huge amounts of waste water and little treatment enhances the vulnerability and incidence of diseases.
Around 21 major cities are going to run out of ground water. In a NITI Aayog report it was stated that 40% of India’s population will have no access to drinking water by 2030.
Nearly 31% of urban Indian households do not have piped water; 67.3% are not connected to a piped sewerage discharge system.
Average water supply per person in urban India is 69.25 litres/day, whereas the required amount is 135 litres.
Additionally, air quality in AMRUT cities and in other large urban settlements continue to worsen.
A National Clean Air Programme was launched by the central government in 2019, as AMRUT 2.0 focused only on water and sewerage.
Challenges
The AMRUT scheme was fundamentally flawed, adopting a project-oriented rather than holistic approach.
It lacked city participation and was driven by bureaucrats, parastatals, and private companies, with minimal involvement from elected city governments.
Governance was dominated by non-elected officials, violating the 74th constitutional amendment.
The apex committee was headed by the MOHUA secretary, and state
committees were led by chief secretaries.
It excluded people’s representatives and favored a private nexus of consultants and professionals.
Water management in cities must consider climate, rainfall patterns, and existing infrastructure.
Sewage treatment plants are inefficiently designed, with faecal matter traveling longer distances than the average worker’s commute.
Urban planning, driven by private players and real estate developers, often leads to the disappearance of water bodies, disrupted storm water flows, and a lack of proper storm water drainage systems.
Way forward
The scheme needs nature-based solutions and a comprehensive methodology with a people centric approach and empowering local bodies.
The Indian Cyber Crime Coordination Centre (I4C) was established under the Ministry of Home Affairs (MHA) as a nodal point to combat cybercrime at the national level. Approved by the MHA in October 2018 and inaugurated in January 2020, I4C aims to enhance coordination among law enforcement agencies and other stakeholders. It seeks to foster an ecosystem involving academia, industry, public, and government to prevent, detect, investigate, and prosecute cybercrimes.
Initiatives: One notable initiative is the Cyber Crime Volunteers Program, which invites citizens passionate about national service to join in combating cybercrime.
Findings of I4C on Transnational Organised Cyber Crimes
Geographical Focus:
A significant number of financial frauds affecting Indians are traced back to cybercrime gangs based in Myanmar, Laos, and Cambodia. These gangs employ Indian job-seekers to defraud their compatriots through various online scams.
Statistical Insights:
▪️Prevalence: 46% of reported cyber frauds from January to April originated in the three mentioned Southeast Asian countries.
▪️Financial Impact: Victims collectively lost approximately Rs 1,776 crores during this period.
Types of Cybercrimes:
Trading Scams:
▪️Modus Operandi: Fraudsters post ads on social media with trading tips, often using images of famous stock market experts and fake articles. Victims are asked to install specific trading apps and invest money, seeing fake profits in their digital wallets but unable to withdraw funds.
▪️Losses: Rs 222 crore lost to 20,043 scams.
Digital Arrest Scams:
▪️Modus Operandi: Victims receive calls about packages containing illegal items, followed by video calls from supposed law enforcement demanding money for resolving the case. Victims are digitally arrested, forced to remain visible to the scammers until demands are met.
▪️Losses: Rs 120 crore lost to 4,600 scams.
Investment/Task-Based Scams:
▪️Modus Operandi: Scammers contact victims via WhatsApp, offering money for boosting social media ratings. After initially receiving small sums, victims are drawn into larger investments with promised returns, which never materialize.
▪️Losses: Rs 1,420 crore lost to 62,587 scams.
Dating Scams:
▪️Modus Operandi: Male victims are seduced by individuals posing as foreign women who later request money claiming they are detained at the airport and need funds for release.
▪️Losses: Rs 13 crore lost to 1,725 scams.
Government Response
The Indian government has set up an inter-ministerial committee involving various law enforcement and intelligence agencies to address the surge in transnational organised cybercrimes. This response underscores the urgent need for coordinated action against the complex and evolving landscape of cyber threats originating beyond national borders.
The Geneva-based, United Nations-linked Global Alliance of National Human Rights Institutions (GANHRI) deferred the accreditation of the National Human Rights Commission-India (NHRC) for the second year in a row. This is the first time India’s status has been suspended for two years in a row, in 2023 and in 2024. The decision was taken during the meeting of the Sub Committee on Accreditation (SCA) on May 1, 2024. This decision could now affect India’s ability to vote at the Human Rights Council and some UNGA bodies.
National Human Rights Commission (NHRC)
It is a statutory body established under the Protection of Human Rights Act, 1993. The Commission is the watchdog of human rights in the country.
Composition of NHRC
It is a multi-member body consisting of a chairperson and five members.
The chairperson should be a retired chief justice of India or a judge of the Supreme Court.
Members should be a serving or retired judge of the Supreme Court, a serving or retired chief justice of a high court and three persons (out of which at least one should be a woman) having knowledge or practical experience with respect to human rights.
Appointment & Tenure
The chairperson and members are appointed by the President on the recommendations of a six-member committee consisting of:
Prime Minister as its head; Speaker of the Lok Sabha; Deputy Chairman of the Rajya Sabha; Leaders of the Opposition in both the Houses of Parliament; Central Home Minister.
The chairperson and members are appointed for the term of 3 years or till the age of 70 years, whichever is earlier.
The chairperson and members are eligible for reappointment.
Global Alliance for National Human Rights Institutions (GANHRI)
It is an organisation affiliated to the UN High Commissioner for Human Rights.
It is a global network of national human rights institutions (NHRIs) that works to promote and protect human rights.
GANHRI represents 120 NHRIs from around the world.
GANHRI’s mission is to unite, promote, and strengthen NHRIs to operate in line with the UN Paris Principles.
Accreditation by the GANHRI
Sub-Committee on Accreditation (SCA) reviews NHRIs every five years, and there is an appeal process for NHRIs to ensure greater transparency and due process.
In a unique peer-review-based accreditation process, GANHRI ensures individual NHRIs’ compliance with internationally recognised standards – the Paris Principles – to ensure their independence, pluralism and accountability.
The Paris Principles set out internationally agreed minimum standards that NHRIs must meet to be considered credible.
The six principles require a country‘s human rights agency to be independent from the government in its structure, composition, decision-making and method of operation.
An NHRI is reviewed by the SCA when –
It applies for initial accreditation.
It applies for re-accreditation every five years.
The circumstances of the NHRI change in any way that may affect its compliance with the Paris Principles.
NHRIs that are assessed as complying with the Paris Principles are accredited with ‘A status’, while those that partially comply are accredited with ‘B status’.
This accreditation status affects a country’s ability to vote at the UN Human Rights Council and some UNGA bodies.
India’s accreditation: India’s NHRC got ‘A’ status of accreditation for the first time in 1999, which it retained in 2006, 2011, and in 2017 after it was deferred for a year.
NHRC-India accreditation status review
On May 1, 2024, NHRC’s performance was to be reviewed in order to decide on the accreditation status.
Observations made by SCA
The committee’s latest report is still awaited. However, its previous report (2023 report) had cited a number of reasons for recommending the deferral.
These included: Composition: lack of Transparency in appointing members to the NHRC,Appointment of Police officers to oversee human rights Investigations,Lack of Gender and Minority representation on the member panel.
The NHRC’s ratings were put on hold in 2023 over these concerns.
India’s stand
GANHRI wanted India to make some structural changes and incorporate a few suggestions given by them. However, this was not possible at this time due to the ongoing general elections in India.
MSMEs are often called the powerhouse of the Indian economy as they contribute significantly to employment generation, exports, and overall economic growth.
MSMEs reportedly account for more than 11 crore jobs and contribute around 27.0% of India’s GDP.The sector consists of around 6.4 crore MSMEs, with 1.5 crore of them registered on the Udyam portal and employs around 23.0% of the Indian labour force, making it the 2nd-largest employer in India after agriculture.
MSMEs account for 38.4% of the total manufacturing output and contribute 45.03% of the country’s total exports.
Most (90%) of the MSME funding comes from informal sources.
Government’s Initiatives to Boost MSME Sector:
The Government of India has correctly identified MSME ecosystem development as a top priority for achieving Atma Nirbhar Bharat (self-reliant India).
The ambitious ‘Make in India’ campaign in India aims to propel the country up the manufacturing value chain and position it as a global manufacturing hub.
Production linked incentives (PLI) schemes and the recently launched zero effect zero defect (ZED) certification are assisting in the promotion and growth of the sector.
The Prime Minister’s Employment Generation Programme (PMEGP) is also creating opportunities for self-employment and micro enterprises, with over 7 lakh micro enterprises being helped to become economically viable.
Digital Saksham initiatives, as well as the interlinking of the Udyam, e-Shram, National Career Service (NCS) and Aatmanirbhar Skilled Employee-Employer Mapping (ASEEM) portals, demonstrate the promise of targeted digitalisation schemes
Understanding the Latest Tax Compliance Guidelines for the MSMEs:
In India, businesses usually record expenses when they happen (accrual basis), even if they haven’t paid for them yet.
However, Section 15 of the MSMED Act 2006, and newly enacted Section 43B(h) of the IT Act says that businesses must pay these MSME Registered Enterprises within 15 days/ up to 45 days if they have an agreement.
If a business doesn’t comply with this regulation, they won’t be able to deduct these payments as expenses in the same year they incur them. This means their taxable income and business taxes could go up.
Also, in case of late payment to an MSME registered unit, the payer will be responsible to pay interest on the amount due.
What are the Concerns Raised by Big Companies and the MSMEs.?
Bigger companies started flagging concerns about ballooning tax liability and many MSME owners reported cancellation of orders due to the new tax clause.
MSMEs also pointed out that big companies are shifting business to unregistered MSMEs, as it lends them the flexibility to not meet the mandatory provision and continue with a longer payment cycle of 90-120 days.
While some MSME associations have approached the Supreme Court against the new norm, the Union MSME Ministry is learnt to have reached out to industry players for solutions.
The Ministry has asked stakeholders to suggest ways to resolve the issues arising from the I-T Act and to recommend possible alternate mechanisms for timely clearance of MSME.
The issue of Standard Essential Patents (SEPs) and their impact on India’s telecom manufacturing sector has emerged as a pressing policy concern.
However, the way SEPs are wielded by technology companies poses challenges, leading to potential crises in India’s domestic manufacturing industry. Therefore, it is important to examine the complexities of this issue, analysing the role of SEPs, the challenges posed by their regulation, and the need for regulatory intervention.
Standard Essential Patents (SEPs)
SEPs are patents that are essential to the implementation of a technical standard.
SEPs are important for industries such as telecommunications, where standards like 3G, 4G, and 5G are crucial for enabling communication between different devices and networks.
These patents are typically owned by companies or individuals and are crucial for ensuring interoperability and compatibility between products and technologies that adhere to a particular standard.
SEPs, which cover technologies adopted as industry standards, play a crucial role in ensuring interoperability and competitiveness in the cellular phone market. However, disputes over SEP licensing and infringement are not uncommon, leading to legal battles and negotiations between companies and patent holders to determine fair licensing terms.
Importance of SEPs and Regulatory Challenges
SEPs, such as CDMA, GSM, and LTE, form the backbone of technological standards in the telecom sector, ensuring compatibility among different cellular phone brands. However, the process of setting standards, largely controlled by private Standard Setting Organisations (SSOs), limits India’s influence.
Consequently, companies owning SEPs can demand exorbitant royalties, leading to the “patent holdup” problem. While SSOs aim for fair, reasonable, and non-discriminatory (FRAND) licensing, opacity and anti-competitive practices persist, as evidenced by significant fines imposed on companies like Qualcomm by various countries.
Judicial Response to Issues Surrounding SEPs
Lethargy in Competition Law Enforcement
The Competition Commission of India (CCI) initiated an investigation in 2013 following a complaint by Micromax against Ericsson, alleging abusive practices regarding SEP licensing. However, Ericsson challenged the CCI’s authority to investigate, leading to prolonged legal battles.
Despite a favourable ruling for the CCI in 2016, Ericsson’s appeals and subsequent delays resulted in the case lingering for seven years until a final judgment in 2023. This extended litigation period has left India as the only major economy yet to scrutinize potentially anti-competitive SEP licensing practices.
Judicial Activism in Patent Infringement Cases
While competition law issues remain unresolved, the Delhi High Court has actively engaged in hearing lawsuits filed by SEP owners against cellular phone manufacturers accused of infringing on their patents. These lawsuits typically involve complex trials to determine patent validity, infringement, and damages. However, instead of staying such proceedings until the resolution of competition law matters, the court has issued interim remedies favouring SEP owners. These remedies often require manufacturers, many of whom are Indian companies, to deposit significant sums of money with the court to continue production during trial periods.
Unprecedented “Deposit” Orders
The practice of issuing “deposit” orders, where manufacturers are compelled to deposit substantial funds with the court before trial, is unprecedented in commercial law. These orders, lasting for the duration of lengthy trials, place a severe financial burden on defendants, depriving them of essential working capital. Such orders lack legal basis and fairness, yet the Delhi High Court justifies them under its “inherent powers to do justice.” This judicial activism, though aimed at expediting legal proceedings, raises questions about procedural fairness and equitable treatment of litigants.
Impact of Judicial Interventions and Prolonged Legal Battles on India’s Manufacturing Dreams
Erosion of Investor Confidence and Market Stability
The uncertainties created by prolonged litigation and judicial interventions erode investor confidence in India’s manufacturing sector.
Foreign investors may view the unpredictable legal landscape as a deterrent to establishing or expanding operations in the country.
The lack of clarity on SEP licensing practices and the potential for adverse court rulings contribute to market instability, hindering long-term investment planning and strategic decision-making by both domestic and international firms.
Inhibiting Growth and Innovation
The focus on SEP-related disputes detracts from efforts to foster innovation and technological advancement in the telecom manufacturing sector.
Instead of channelling resources towards research and development (R&D) or adopting new technologies, companies may find themselves embroiled in legal battles, diverting attention and funds away from productive endeavours.
This diversion of resources stifles innovation, hampers product development, and undermines India’s ability to compete on a global scale.
Job Creation and Economic Impact
The manufacturing sector plays a pivotal role in job creation and economic growth, particularly in emerging economies like India.
However, the uncertainties surrounding SEP-related litigation pose a threat to job stability and employment prospects, especially for workers in the telecom manufacturing industry.
Delays in legal proceedings, coupled with the financial burdens imposed on manufacturers, may force companies to scale back operations, lay off employees, or reconsider future investments in domestic manufacturing facilities.
This, in turn, undermines the government’s efforts to address unemployment and promote inclusive economic growth.
Contradictions in Policy Objectives
The disconnect between judicial interventions favouring SEP owners and government initiatives to incentivise domestic manufacturing creates contradictions in policy objectives.
While the government seeks to attract investment and promote indigenous production through schemes like “production linked incentives,” the adverse effects of SEP-related disputes undermine these efforts.
The discrepancy between supporting manufacturers investing in India and overlooking the financial burdens imposed by SEP owners raises questions about the coherence and effectiveness of policy measures aimed at fostering industrial growth.
Long-term Implications for India’s Industrial Landscape
The unresolved tensions surrounding SEP licensing practices and the judiciary’s handling of related disputes have long-term implications for India’s industrial landscape.
Failure to address these issues may deter both domestic and foreign investors, jeopardise job creation prospects, and impede the country’s transition towards a knowledge-based economy.
Without regulatory intervention to streamline legal processes, ensure procedural fairness, and uphold the principles of competition law, India risks falling behind its global counterparts in the race for manufacturing excellence.
Way Forward: Lessons from Europe
The European Parliament has taken proactive measures to regulate SEPs, setting a precedent for international intervention in this domain.
India, with its limited influence over standard-setting processes and obligations to enforce patents of foreign technology companies, has a compelling case for similar regulatory intervention.
Strengthening regulatory frameworks to ensure transparency, fairness, and non-discrimination in SEP licensing is imperative to safeguard India’s economic interests and promote domestic manufacturing.
Conclusion
It is incumbent upon the Indian government to address the regulatory gaps and uncertainties surrounding SEPs to safeguard the interests of domestic manufacturers and promote industrial growth.
Regulatory measures should aim to balance the interests of technology companies with the broader imperatives of economic development, innovation, and consumer welfare.
By intervening decisively in this arena, India can assert its sovereignty, promote a level playing field, and foster a conducive environment for investment and innovation.
As wealth distribution dominates news headlines in India, a nine-judge bench of the Supreme Court commenced the process for interpretation of Article 39(b) of the Indian Constitution.
This to determine whether this directive principle of state policy (DPSP) provision allows the govt to treat and redistribute privately owned properties under the garb of “material resources of the community” for greater common good.
Article 39(b) of the Constitution
It falls under Part IV of the Constitution titled “Directive Principles of State Policy” (DPSP).
It places an obligation on the state to create policy towards securing the ownership and control of the material resources of the community that are so distributed as best to subserve the common good.
DPSP are meant to be guiding principles for the enactment of laws, but are not directly enforceable in any court of law.
Need of Apex Court Interpreting Article 39(b) Now..?
Since 1977, the apex court has weighed in on the interpretation of Article 39(b) on multiple occasions – most notably, in State of Karnataka v Shri Ranganatha Reddy (1977).The interpretation by a (9-judges) bench comprising Chief Justice D Y Chandrachud stems from Justice V R Krishna Iyer’s dissenting view in Ranganatha Reddy case of 1977. According to Justice V R Krishna Iyer, community resources included private properties.
After subsequent judgements, confusion over this interpretation led to the matter being referred to a nine-judge bench in 2002.
Though the question is old, it is reverberating in the current politically-surcharged atmosphere.
39(b) Needs a 9-Judge Bench Interpretation..?
CJI explained why Article 39(b) needed to be interpreted by a nine-judge bench. The majority in the Ranganatha Reddy case in 1977 clarified that material resources of the community do not include private property.
However, a five-judge bench in Sanjeev Coke in 1983 relied on Justice Iyer ignoring that it was a minority view.
In the meantime, SC in Mafatlal Industries case in 1997 opined that Article 39(b) needed interpretation by a nine-judge bench.
Deducing Article 39(b)
Community resources could never include privately owned properties.
Solicitor general Tushar Mehta said the sole question before the court was interpretation of Article 39(b) and not Article 31C. Article 31C provides safe harbour to laws enacted in pursuance of the directive principles similar to Schedule-9 of constitution.
Its validity as it existed prior to the 25th constitutional amendment in 1971 has been upheld by a 13-judge bench in Kesavananda Bharti case.
The bench asked how excess agricultural land was distributed among poor peasants in the 1960s. Replying to this, a senior advocate said – No one questioned the state’s power to acquire land for public purposes after paying a fair compensation to the owner of the land.
Land ceiling laws were passed by states to determine excess land accumulated by zamindars and such excess land was then redistributed.
But if the government wants to take away my property and distribute it to the poor, then I would be left with no money as my fees would be taken away and paid to poor people.
Indian patent rules were amended earlier this year, making it difficult to file opposition to patents at the pre-grant stage, thus allowing easy patenting and increasing drug price.
India’s healthcare system heavily relies on affordable medicines, with the generic pharmaceutical industry playing a pivotal role in providing quality drugs at reasonable prices.
Medicines constitute a significant portion of healthcare costs, with nearly 50% of expenses incurred by individuals attributed to purchasing medications.
However, the high costs of medicines, primarily driven by patenting, pose a significant barrier to accessing essential treatments.
The amended rules will prolong the life of drugs on account of frivolous patenting, increase their prices, and make lives difficult for patients.
The Role of Generic Pharmaceutical Companies
Generic pharmaceutical companies play a crucial role in addressing the affordability challenge by providing cost-effective alternatives to patented drugs.
The Indian generic industry has been recognised globally for its contribution to supplying essential medicines at affordable prices.
The evolution of India’s patent regime has shaped its pharmaceutical industry and its ability to produce generic medicines.
Historically, the Indian Patent Act of the early 1970s restricted patent protection to the process of manufacturing drugs, rather than the products themselves.
This approach fostered the growth of the generic industry, establishing India as a leading exporter of generic drugs by the late 1980s.
However, recent amendments to the Indian Patent Law threaten to disrupt this ecosystem and undermine access to affordable healthcare.
Impact of TRIPS Agreement on India’s Pharmaceutical Industry
Transition to Product Patents
One of the most significant changes brought about by the TRIPS Agreement was the requirement for member countries to grant patents for both products and processes, including pharmaceuticals.
This transition from process to product patents posed challenges for India’s generic pharmaceutical industry, which had thrived under a regime that allowed to produce generic versions of patented drugs.
Challenges for India’s Generic Industry
The introduction of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement in 1995 had a profound impact on India’s pharmaceutical industry, shaping its trajectory and global standing.
The introduction of product patents threatened to disrupt India’s generic pharmaceutical industry, which had become known for its ability to produce affordable versions of essential medicines.
Product patents granted exclusive rights to the inventor, limiting the scope for generic manufacturers to produce and distribute low-cost alternatives.
Pressure to Comply with International Standards
The TRIPS Agreement placed pressure on India to align its intellectual
property laws with international standards, including the protection of pharmaceutical patents.
This necessitated amendments to India’s Patent Act to ensure compliance with TRIPS obligations while safeguarding the interests of its generic pharmaceutical industry and public health priorities.
Preserving Access to Medicines: Introduction of Section 3(d) of Patent Act
Despite the challenges posed by TRIPS, India adopted measures to safeguard access to affordable medicines.
Provisions such as Section 3(d) of the Indian Patent Act, introduced in 2005, aimed to prevent the grant of frivolous patents for incremental innovations that lacked significant therapeutic benefits.
This provision upheld the principle of affordable access to medicines while complying with TRIPS requirements.
Balancing Innovation and Access
The TRIPS Agreement presented India with a delicate balancing act between fostering innovation and ensuring access to essential medicines.
While patents incentivise innovation and investment in research and development, they also have the potential to restrict access to life-saving treatments, particularly in developing countries with limited healthcare resources.
Global Leadership in Generic Manufacturing
Despite the challenges posed by TRIPS, India emerged as a global leader in generic drug manufacturing, leveraging its manufacturing capabilities and adherence to TRIPS flexibilities.
The country’s generic pharmaceutical industry continued to thrive, supplying affordable medicines not only domestically but also to markets around the world.
Section 3(d) and Flexibilities in India’s Patent Laws
Section 3(d) of the Indian Patent Act is a critical provision that embodies the flexibilities inherent in India’s patent law.
Section 3(d) addresses concerns related to “evergreening,” a practice employed by pharmaceutical companies to extend the patent life of their products by making minor modifications or incremental innovations.
This provision aims to prevent the grant of patents for incremental innovations that lack significant therapeutic efficacy or novelty, thereby safeguarding access to generic versions of essential medicines.
Under Section 3(d), for pharmaceuticals and chemical substances, patent protection is granted only if the invention demonstrates enhanced efficacy
compared to existing formulations.
This requirement ensures that patents are granted for inventions that represent genuine advancements in therapeutic efficacy, rather than minor variations or modifications of existing drugs.
Current Challenges in India’s Patent Regime
Threats to Pre-Grant Opposition
One of the primary challenges arises from amendments to the Indian Patent Rules that have made it more difficult to file opposition to patents at the pre-grant stage.
These amendments weaken the mechanism for challenging the grant of patents, potentially facilitating the grant of patents for inventions that lack genuine novelty or therapeutic efficacy.
Impact on Competition and Drug Prices
The amendments to the pre-grant opposition process could have adverse effects on competition in the pharmaceutical market and contribute to higher drug prices.
By limiting the ability of generic manufacturers and civil society organisations to challenge frivolous patents, the amendments stifle competition and impede the availability of affordable generic alternatives to patented drugs.
Pressure from Pharma Majors and International Trade Agreements
The amendments to India’s patent rules reflect pressure from pharmaceutical multinational corporations, particularly from Western and Japanese companies.
These companies have lobbied for changes that align with their interests and seek to weaken India’s patent regime to facilitate the grant of patents for incremental innovations and extend market exclusivity for their products.
Threats to Flexibilities in Patent Law
The amendments pose a threat to the flexibilities inherent in India’s patent law, particularly provisions such as Section 3(d) that impose stringent patentability criteria based on enhanced efficacy.
By limiting opportunities for challenging frivolous patents and weakening provisions that prevent evergreening, the amendments undermine India’s ability to safeguard public health priorities and promote access to affordable medicines.
Financial Burden on Opponents to Patents
Another challenge arises from the imposition of fees on opponents to
patents, which could deter patients, civil society organisations, and generic manufacturers from filing pre-grant oppositions.
The financial burden associated with challenging patents could limit the ability of stakeholders to protect public health interests and promote access to affordable medicines.
Impact on Compulsory Licensing and Drug Availability
Furthermore, the amendments affect the issuance of compulsory licenses, which are essential for ensuring access to medicines in situations where patents impede availability.
By weakening provisions that facilitate compulsory licensing and limit evergreening, the amendments undermine efforts to address healthcare disparities and promote equitable access to essential medicines.
Inferences
Ensuring access to affordable medicines is essential for promoting public health and achieving universal healthcare coverage.
By preserving the flexibilities in patent law, promoting competition, and safeguarding the interests of patients and public health, policymakers can uphold the principles of affordability, accessibility, and quality in healthcare delivery.
The amendments to the Indian Patent Rules must be carefully evaluated and revised to mitigate their adverse impact on access to essential medicines and public health outcomes.
The IMF notes that funds flows into emerging markets have been strong till now due to optimism over central banks easing interest rates.
In fact, India was the second-largest recipient of foreign capital after the U.S., in the calendar year 2023.But things could change quickly if western central banks signal that they could keep interest rates high for a long time.
This could cause investors to pull money out of emerging markets like India and increase pressure on their currencies.The Indian rupee has already been depreciating and traded at a new low of 83.57 against the U.S. dollar last week despite likely intervention by the Reserve Bank of India (RBI).
A severe outflow of capital if western central banks fail to lower interest rates could cause further depreciation of the rupee and have effects on the country’s financial system.
In such a scenario, the RBI is likely to defend the rupee by curbing liquidity to raise interest rates, which could cause the economy to slow down.
About the Private Credit Market.?
The IMF in its report also noted that the growing unregulated private credit market, in which non-bank financial institutions lend to corporate borrowers, is a growing concern.
The IMF is worried that the borrowers in the private credit market may not be financially sound and noted that many of them do not have current earnings that exceed even their interest costs.
India has seen the growth of a small private credit market with the rise of Alternative Investment Funds (AIFs).These funds lend money to high-risk borrowers who are not catered to by the traditional banking system and non-bank financial companies.They have also invested in distressed assets that have come up for sale under the Insolvency and Bankruptcy Code (IBC) regime.
The SEBI notes that investments made through these funds, although still small, have more than tripled from ₹1.1 lakh crore in 2018-19 to ₹3.4 lakh crore in 2022-23.
As financial regulators, both the RBI and SEBI have been noticing this trend and tried to increase scrutiny over these funds.
What is the IMF’s Worry About Inflation.?
The IMF has flagged rising enthusiasm among investors that the fight against high inflation over the last few years has almost come to an end.
However, the IMF believes that investor enthusiasm about slowing inflation and a possible cut in interest rates by central banks may be quite premature.
The fall in inflation has probably stalled in some major advanced and emerging economies where core inflation in the most recent 3 months has been higher than in the previous 3 months.
The IMF has also warned that geopolitical risks such as the ongoing war in West Asia and Ukraine could affect aggregate supply and lead to higher prices.
This might stop central banks from lowering rates anytime soon.
In recent weeks gold has witnessed a phenomenal price increase, with expectations to rise further.
There is a direct relationship between the global price of crude oil and the international price of gold (Positive Correlation).
Contrary to the aforementioned, there is an inverse relationship between the external value of the U.S. dollar and the international price of gold (Negative Correlation). Simply put, whenever global oil prices shot up, the price of gold also rose & whenever the U.S. dollar declined in value against the currencies of its major trading partners, gold appreciated.
Reason Behind These Positive & Negative Correlations:
🪙Rise in international crude oil prices signaled the specter of global inflation. This leads to an increase in the demand for gold as a hedge against inflation.
🪙Gold is a real asset unlike financial assets and hence not subject to loss of value. Similarly, since the global price of gold is expressed in U.S. dollars, its depreciation meant the global price of gold had to rise.
How is Gold Price Determined Globally.?
Gold’s price is determined by supply and demand factors.
Supply Side:
The production of gold by producing countries and the cost of mining gold are factors to be considered on the supply side. Since most of the available gold in the world has already been mined, new production will involve digging deeper into the bowels of the earth, which is expensive, as gold mining is both energy and labor-intensive. So when the prices of crude oil and natural gas rise, it contributes to the rise in the price of gold.
Demand Side:
However more than gold’s supply, its demand contributes to periodic spikes in its price. The demand for gold can be broken up into Institutional, Investor, Consumer and Industrial demand.
🪙It is institutional demand in the form of central banks’ demand for gold that drives its price up to record levels each day. Central banks buy gold to boost their reserve assets, as it is a store of value and forms the basis for the issue of new currency. Faced with the threat of inflation against the backdrop of the current increase in crude oil prices (Brent crude touching $90 a barrel) and geopolitical uncertainty in the wake of the wars in West Asia and Eastern Europe, central banks worldwide, especially the Central Bank of China, are stocking up on gold. Foreign currency reserves in central banks under the current situation are subject to risk and loss of value.
🪙Investor demand comes from individuals as well as institutional investors, who would like to invest in physical gold or their financial derivatives and exchange-traded funds (ETFs) as a component of their investment portfolio. Return on investment is an investor’s primary concern, but diversification of risk and safety of investment, under uncertain geopolitical and economic conditions is driving demand from this group.
🪙Consumer demand arises from individuals as well as jewelers.
In both China and India, the largest consumers and importers of gold, it is bought as a traditional store of wealth and as ornaments for special occasions. So, consumer demand is mostly seasonal.
Industrial demand is influenced by technology. Gold as a metal is preferred by industry for its intrinsic properties like malleability and conductivity.
How is Gold Price Determined in India?
Demand and Supply:
The demand and supply largely influence the gold rate in the domestic market. The price will be higher when the demand for gold exceeds supply. However, the price will fall if the demand in the market is lower than the supply of gold.
Interest Rate:
The gold loan interest rate in India is monitored and changed by the RBI.
It is done to manage the capital flow in the Indian market. In case of higher interest rates, gold sell-off will be heavy. It leads to increased supply which means higher gold rates. However, the low interest rates increase demand and lower gold prices.
Economic Situation:
People often invest in gold to hedge against inflation and recession.
Any adverse economic factors lead to a fall in the financial market.
In such a situation, investors have limited liquidity and more losses.
That’s why they invest in gold because its demand increases in the domestic market.
Rupee-Dollar Conversion Rate:
If the value of the dollar increases against the rupee, it becomes expensive for India to import gold from international markets.
Therefore, the price of gold also rises considerably in the Indian market.
Mathematical Formula to Calculate Gold Prices:
The gold rate in India can be calculated using two mathematical formulas depending on the purity of gold. The two formulas to calculate gold prices are as follows:
The relationship between Humans, Animals, and the Environment has become increasingly interdependent, particularly evident with the emergence of pandemics such as COVID-19.
This interdependence also extends to livestock and wild animals, with diseases such as lumpy skin disease affecting both animal productivity and trade. Recognising these challenges, the Indian government has initiated the ‘National One Health Mission’ to address the interconnectedness of human, animal, and environmental health.
The National One Health Mission
It is a comprehensive initiative endorsed by Prime Minister’s Science, Technology, and Innovation Advisory Council (PM-STIAC) in July 2022.
This mission involves 13 ministries and departments, including the Department of Science and Technology, the Department of Biotechnology (DBT), the Council of Scientific and Industrial Research (CSIR), and others, to take a holistic approach to One Health and pandemic preparedness.
The establishment of a National Institute for One Health in Nagpur is a key milestone in the mission. The institute will act as the coordinating body for national and international activities in the field of One Health.
Objectives and Strategies of The National One Health Mission
▪️Integrated Disease Surveillance
The mission aims to establish a seamless and cohesive surveillance system that monitors health indicators across human, animals, and environmental sectors.By integrating data from these areas, the mission can detect potential health threats early and respond more effectively.
▪️Joint Outbreak Response
A coordinated approach to outbreak response is essential for managing and controlling diseases that can affect humans, animals, and the environment. The mission seeks to establish protocols and frameworks that enable different sectors to work together during outbreaks, sharing resources and information to minimize the impact.
▪️Coordinated Research and Development (R&D)
The mission promotes collaboration across various scientific research institutions and government departments to foster the development of innovative solutions for emerging health threats. This includes the creation of vaccines, therapeutics, and diagnostics that are essential for pandemic preparedness and response.
▪️Information Sharing and Communication
Effective communication and information sharing are crucial for a coordinated One Health approach.The mission aims to facilitate seamless data exchange between different sectors and stakeholders, ensuring that all parties are well-informed and can take timely action when necessary.
▪️Preparedness for Future Pandemics
Building on the lessons learned from past pandemics, the mission strives to develop strategies and frameworks that will enable the country to be better prepared for future health crises.This includes planning for potential pandemics and emerging diseases such as avian influenza or Nipah virus.
▪️Resource Optimisation
By leveraging the resources and expertise of multiple sectors and stakeholders, the mission aims to optimise the use of available resources, including laboratory infrastructure, healthcare facilities, and scientific research capabilities. This collaboration helps in addressing health threats more efficiently and cost-effectively.
▪️Public Health Education and Awareness
The mission includes educating the public about the interconnectedness of human, animal, and environmental health. Raising awareness about One Health principles can promote healthier behaviours and better preparedness for health emergencies.
Key Aspect of the National One Health Mission: Laboratory Network and Technological Integration
▪️High-Risk Pathogen Laboratories
The mission aims to establish a national network of laboratories equipped to handle high-risk pathogens (Biosafety Level 3 and Biosafety Level 4).These laboratories are designed to work with dangerous infectious agents, providing a secure environment for studying pathogens that could potentially cause pandemics.
▪️Collaboration Among Departments
By bringing together laboratories managed by different departments, the mission aims to create a cohesive network that can coordinate and share resources across sectors. This integration helps improve disease outbreak response, regardless of whether the threat originates in human, animal, or environmental populations.
▪️Resource Optimisation
Combining laboratory resources under one network ensures efficient utilization of infrastructure and personnel. This collaboration allows the network to quickly respond to outbreaks and other health emergencies, making the best use of available resources.
▪️Interdisciplinary Research and Analysis
The mission encourages collaboration between experts from different fields such as medicine, veterinary science, environmental science, and public health. This interdisciplinary approach enables more thorough research and analysis of health threats and their impact across various sectors.
▪️Application of Artificial Intelligence (AI) and Machine Learning
AI and machine learning are key technologies that the mission integrates to enhance epidemiological capabilities. These technologies can analyse large datasets to identify patterns, trends, and potential health threats, enabling timely interventions and better preparedness.
▪️Disease Modelling
Advanced modelling techniques are used to predict disease spread and potential outbreaks. These models help in planning and implementing targeted measures to control the spread of infectious diseases.
▪️Genomic Surveillance
The mission expands genomic surveillance efforts beyond COVID-19 to include other diseases. By analysing genetic material from wastewater and other sentinels such as livestock and wildlife congregations, scientists can monitor disease prevalence and identify new threats.
▪️Capacity Building
The mission focuses on building the capacity of professionals across sectors in epidemiology, data analytics, and laboratory management. Training and development programs ensure that personnel have the skills needed to effectively use new technologies and methodologies.
The Global Perspective of The National One Health Mission
One Health is a global topic and was endorsed during India’s presidency of the G-20. The mission focuses on building surveillance capacity, analytic capability, and an international network of One Health institutes. One Health extends beyond diseases to include issues like antimicrobial resistance, food safety, plant diseases, and climate change’s impact on health.
Inference
One Health is not just limited to diseases rather it concerns wider aspects such as antimicrobial resistance, food safety, plant diseases and the impact of climate change on all of these. Intersectoral topics such as One Health require close engagement of not just different governmental agencies but also non-governmental organisations, academia, the private sector and also citizens. Such an approach focused on an actionable framework will further the goal of moving closer to the clarion call of ‘One Earth, One Health’ and ‘Health for All.’
Intersectoral topics such as One Health require close engagement of not just different governmental agencies but also non-governmental organisations, academia, the private sector and also citizens. Such an approach focused on an actionable framework will further the goal of moving closer to the clarion call of ‘One Earth, One Health’ and ‘Health for All.’
The government has come up with a new platform to disburse subsidies to horticulture farmers under the Cluster Development Programme (CDP) — the Centre’s initiative to promote horticulture crops. The platform is known as CDP-SURAKSHA
The CDP-SURAKSHA is essentially a digital platform. SURAKSHA stands for “System for Unified Resource Allocation, Knowledge, and Secure Horticulture Assistance.”The platform will allow an instant disbursal of subsidies to farmers in their bank account by utilising the e-RUPI voucher from the National Payments Corporation of India (NPCI).
Features
The CDP-SURAKSHA has features such as:
▪️Database Integration with PM-KISAN
▪️Cloud-based server space from NIC
▪️UIDAI validation
▪️eRUPI integration
▪️Local Government Directory (LGD)
▪️Content Management System, Geotagging, and Geo-Fencing.
Comparison from the Old System
In the old system, a farmer had to buy planting materials on their own. They would then have to approach the officials concerned for the release of the subsidy.The CDP-SURAKSHA platform, however, will provide subsidies to farmers upfront, at the time of purchasing the planting material.Vendors, who will supply planting materials to farmers, will receive their payment only after farmers verify the delivery of their orders.
Need
Horticulture sector contributes nearly one-third to the agriculture gross value addition (GVA), making a substantial contribution to the Indian economy.The total production of horticulture crops has also spiked in recent years. While in 2010-11, it stood at 240.53 million tonnes, the number rose to 334.60 million tonnes in 2020-21.
Horticulture Cluster Development Program (CDP)
The CDP is part of NHB’s (National Horticulture Board) central sector scheme.It aims to develop and grow horticulture clusters to make them globally competitive.
The program is designed to leverage the geographical specialization of horticulture clusters and support the horticulture value chain from preproduction to marketing activities.
Objective
▪️Increase exports of targeted crops by about 20%.
▪️Create cluster-specific brands to improve the competitiveness of cluster crops.
▪️Reduce harvest and post-harvest losses by developing, expanding, and upgrading the infrastructure for post-harvest handling of produce,
▪️Boost farmers’ income
Current Status
So far, 55 horticulture clusters have been identified, out of which 12 have been selected for the pilot. These clusters are in different stages of development.Four more clusters — a floriculture cluster in West Bengal, coconut clusters in Kerala and Tamil Nadu, and white onion clusters in Gujarat — are also in the pipeline.
Future Goal
According to the government, about 9 lakh hectares of area will be covered through all 55 clusters, covering 10 lakh farmers.
It is estimated that the initiative will attract private investment of Rs 8,250 crore, in addition to the government’s assistance, which is fixed according to the size of the cluster.
The Assistance include:
Up to Rs 25 crore for mini cluster (size up to 5,000 ha),
Up to Rs 50 crore for medium clusters (5,000 to 15,000), and
Up to Rs 100 crore for mega clusters (more than 15,000 ha).
e-RUPI
e-RUPI is basically a digital voucher which a beneficiary gets on his phone in the form of an SMS or QR code.It is a pre-paid voucher, which he/she can go and redeem at any centre that accepts its.
e-RUPI should not be confused with Digital Currency launched by RBI. Instead, e-RUPI is a person specific, even purpose specific digital voucher.
Benefits
▪️For Consumers
e-RUPI does not require the beneficiary to have a bank account, a major distinguishing feature as compared to other digital payment forms.
It ensures an easy, contactless two-step redemption process that does not require sharing of personal details either.
Another advantage is that e-RUPI is operable on basic phones.Hence, it can be used by people who do not own smart-phones.
▪️For the Sponsors
e-RUPI is expected to play a major role in strengthening Direct-Benefit Transfer and making it more transparent.Since there is no need for physical issuance of vouchers, it will also lead to some cost savings as well.
▪️For the Service Providers
Being a prepaid voucher, e-RUPI would assure real time payments to the service provider.
With the advent of global terrorism in the 1990s, there was a focus internationally on choking terror financing and the movement of illicit money across borders.
The Financial Action Task Force (FATF) was created in 1989 to coordinate anti-money laundering efforts across the world and as a member, it was incumbent upon India to do its bit.
The PMLA was enacted in response to the political declaration adopted by the United Nations General Assembly (1998), calling on member states to put in place national anti-money laundering legislation.
Enactment of the PMLA
The Prevention of Money-Laundering Bill 1998 was introduced by the then government.The proposed law was focused on –
▪️Preventing money laundering and connected activities,
▪️Confiscation of the proceeds of crime,
▪️Setting up of agencies and mechanisms to coordinate measures to combat money laundering, etc.
The parties across the political spectrum opposed what they said were “draconian” provisions, with concerns of governments misusing these provisions.After being referred to the Department-related Standing Committee on Finance, the Bill was passed by the Parliament in 2002 and came into force only in 2005, after Rules were framed by the govt.
Two Key Amendments in the PMLA:
Although the law has been changed multiple times over the years, it was through amendments made in the PMLA in 2009 and 2012 that the ED acquired the powers to take coercive action against politicians.
In 2009, ‘Criminal conspiracy’ under (Section 120B) the Indian Penal Code (IPC) was added to the PMLA’s schedule among various other offences.
This allowed the ED to enter any case where a conspiracy is alleged, even if the principal offence is not part of the PMLA’s schedule.
In 2009, the ED also got international jurisdiction as far as tracking laundered money was concerned.
In 2012, the PMLA was amended to move the Prevention of Corruption Act, 1988 (PC Act) to Part A of the statute’s schedule from Part B.
This was a significant move as it applied stringent bail conditions on those accused of corruption.
Part A of the statute covered offences such as waging war against the nation, trafficking of drugs, the PC Act, the Wildlife (Protection) Act, the Immoral Traffic (Prevention) Act, the IT Act, etc.
Supreme Court on the Constitutional Validity of PMLA
♦️Vijay Madanlal Choudhary & Ors vs Union of India (2022):
A three-judge Bench of the SC upheld the constitutional validity of PMLA, which was under challenge in a batch of more than 200 individual petitions.
The first challenge was against the alternate criminal law system that the PMLA creates since the ED is kept outside the purview of the Code of Criminal Procedure (CrPC).
The ED is not considered ‘police’ and hence does not follow the provisions of CrPC for searches, seizures, arrests, and attachment of properties.
This is significant and since the ED is not a police agency, statements made by an accused to the ED are admissible in court.
The judgement upheld these sweeping powers of the ED.
♦️Nikesh Tarachand Shah v Union of India (2017):
The PMLA (like the UAPA) lays down a stringent standard for granting bail.
For example, it bars courts from granting bail unless the accused can prove that there is no “prima facie” case against them, and that they will not commit any offence in the future.
The SC struck down these provisions as unconstitutional. However, Parliament put them back in by amending the PMLA through the Finance Act, 2018. This was upheld by the SC in 2021.
While some parts of the 2021 ruling – e.g. the ED is not obligated to disclose the ECIR (akin to an FIR in a criminal case) – are under review, the ruling is now the law of the land.
The International Labour Organisation (ILO) and the Institute of Human Development (IHD) have jointly published a report titled “India Employment Report 2024”.
About India Employment Report 2024:
The India Employment Report 2024 is the third in the series of regular publications by the Institute for Human Development on labour and employment issues.It is undertaken in partnership with the International Labour Organization (ILO).
The report examines the challenge of youth employment in the context of the emerging economic, labour market, educational and skills scenarios in India and the changes witnessed over the past two decades the report highlights recent trends in the Indian labour market, which indicate improvements in some outcomes along with persisting and new challenges, including those generated by the COVID-19 pandemic.
Key Highlights of the Report from Women Empowerment Perspective:
As per the report, the Female Labour Force Participation Rate (LFPR) is very low compared to the male counterparts; in 2023, the male LFPR was pegged at 78.5; and the women LFPR was 37.
The world women LFPR rate is 49, according to the World Bank figures.
The female LFPR had been steadily declining since 2000 and touched 24.5 in 2019, before inching up, particularly in rural areas.But the report point out that notwithstanding the modest improvements, employment conditions remain poor.
The increase in labour force participation has come mostly in rural areas and mostly in self-employment, which means largely unpaid work.
Where are women employed.?
The India Employment Report shows that it is women who largely account for the increase in self-employment and unpaid family work.
About two-thirds of the incremental employment after 2019 comprised self-employed workers, among whom unpaid (women) family workers predominate.The share of regular work, which steadily increased after 2000, started declining after 2018.
Reasons for Low Female LFPR:
Economists and women’s rights experts point at various barriers women face in terms of a careers or a job.
They list factors such as:
▪️Lack of jobs
▪️Women being made responsible for all care-giving duties at home plus cooking and cleaning.
▪️Low wages
▪️Patriarchal mindsets
▪️Safety issues.
Also, there are both supply and demand side reasons for the decline in women’s LFPR.
On the labour demand side, in general, India’s growth pattern has not been job intensive.
This combined with social norms that restrict women’s mobility and make them primary caregivers at home, means that women are not free to take up available opportunities.
In addition, concerns over public safety and lack of transport also confine women to looking for work close to home, further limiting their options.
Way Ahead:
Economists say interventions are needed on both the demand and supply side of the labour market.
On the demand side, policies that promote labour intensive sectors (in both manufacturing and relatively higher productivity services) are needed.
Public investment in safety and transport is also critical as is public investment in affordable child and elderly care.
All of these types of support can enable women to work outside the home and take advantage of relatively better paying opportunities.
The recent Monetary Policy Committee meeting of the RBI Friday kept the repo rate unchanged for the seventh consecutive time at 6.5 per cent.
It also indicated the possibility of retail inflation coming below the crucial level of four per cent in the second quarter (July-September) of FY 2025.
The RBI has retained the policy stance as withdrawal of accommodation despite the deficit in the liquidity in recent weeks.Withdrawal of accommodation means reducing the money supply in the system to control inflation.
GDP Growth and Inflation Forecast
The central bank has retained the GDP growth at 7 per cent and retail inflation at 4.5 per cent for fiscal 2024-25.
In February, CPI inflation print stood at 5.09 per cent compared to 5.1 per cent in January.
Food inflation continues to exhibit considerable volatility impeding the ongoing disinflation process.
The prospects of investment activity remain bright.This is due to an upturn in the private capex cycle becoming steadily broad-based; persisting and robust government capital expenditure; healthy balance sheets of banks and corporates; rising capacity utilisation.However, headwinds from protracted geopolitical tensions and increasing disruptions in trade routes pose risks to the outlook.
On Rupee
The rupee stayed within a certain range compared to other currencies from emerging markets and some advanced economies during 2023-24.
This stability showed that India’s economy is strong, financially stable, and has improved its position in the world market.
New Measures Announced by RBI
Proposal for cash deposit in banks through UPI.
Proposal for UPI access for Pre-Paid Instruments (PPIs).
Proposal for CBDCs via non-bank operators.
Proposal to facilitate wider non-resident participation in Sovereign Green Bonds (SGrBs).
Introduction of Mobile App for RBI Retail Direct Scheme.This app will provide individual investors with access to maintain gilt accounts with RBI and invest in government securities.
Decided to review the Liquidity Coverage Ratio (LCR) framework.
RBI’s new website interface for investment in G-Sec
India’s education budget to be at 6 per cent of GDP set out in the National Education Policy 2020.
While the Indian government has promoted the 2023 national education budget as the country’s highest ever, government education spending as a percentage of GDP has stayed the same for the last three years.
Total education expenditure as a percentage of all government expenditure has increased slightly but remains lower than the percentage share in 2019-20.
This is likely to be due to low contributions towards the education sector from states, affected by their poor fiscal health and lower devolution of taxes received from the centre.
The national education budget however does not represent India’s total planned education expenditure. Allocations are also made at the state level and these must be combined together to provide a full picture.
According to Economic Survey 2022-23, total education outlay, including both national and state level expenditure, added up to 2.9 per cent of the country’s 2022 GDP – a proportion that has remained constant for the last four years.
The proportion of total annual education spending has been around 10 per cent of total government expenditure across all sectors and dropped to below 10 per cent since 2020-21.
Understand the Impact of 43B changes for Businesses who are dealing with MSME and the benefits MSME enjoys
Exploring the recent amendment to Section 43B of the Income Tax Act – a pivotal development impacting Micro and Small Enterprises (MSMEs) and their collaborators.
Section 43B Overview:
Section 43B of the Income Tax Act is a provision that deals with certain expenses that can be claimed as deductions by businesses or professionals while computing their taxable income. However, these expenses can only be claimed in the actual payment year, not in the accrual year.
The payment must be made on or before the due date of filing the return of income for that year. And in cases amount due to small enterprises shall be paid on or before the time limit specified by The MSMED Act. The proof of payment must be furnished along with the return
Recent Amendment:
The latest amendment in Section 43B, specifies that payments to micro or small enterprises must adhere to Section 15 of the MSME Act, 2006. Deductions will be allowed only if payments are made within the stipulated time frames.
Payment Terms for MSME Suppliers:
· Micro: Pay within 15 days
· Small: Pay within 30 days
· Medium: Pay within 45 days
Compliance Requirements:
Auditors are now tasked with ensuring compliance with Section 43B and reporting on it in the Tax Audit Report.
Impact on MSMEs:
· This amendment serves as a protective measure for MSMEs, addressing the longstanding issue of delayed payments.
· Buyers now must settle payments within the specified time frame to claim deductions, easing financial strains on MSMEs.
Impact on Buyers:
· Entities collaborating with MSMEs need to adapt to the new regulations.
· Timely payments are now not just a good practice but a regulatory necessity for claiming deductions.
· The burden of delayed payments is shifted, emphasizing fair and prompt dealings.
Conclusion:
The Section 43B amendment is a positive stride towards supporting MSMEs and fostering a more equitable business environment. It promotes responsible financial practices and ensures timely settlements, benefiting both small enterprises and their collaborators.
Key Takeaways:
Deduction Conditions: Payments to MSMEs must align with Section 15 of the MSME Act.
Auditor Role: Verification and reporting of compliance are pivotal for audits.
MSME Resilience: The amendment strengthens the financial resilience of micro and small enterprises.
Buyer Accountability: Collaborators must adapt to ensure timely payments for deduction eligibility.
The amendment brings about a paradigm shift in how payments to MSMEs are treated, creating a more supportive ecosystem for these crucial contributors to the Indian business landscape.
The RBI just released an interesting paper on why high cash demand is persisting in India alongside soaring digital payments.
The findings (detailed through strong research in the paper) are pretty intuitive.
Use of cash in transactions is down. This is clear from ATM withdrawals, velocity of currency and also the declining share of lower value notes.
But store-of-value use of cash remains. One factor is bank deposit rates but there was no convincing argument as to why people still want to use cash as store of value.
Access to banks? Trust in banks? Habit? Black economy? There could be many guesses.
The paper also makes the fair point that income growth is a driver of cash demand and when the rise in digital payments comes together with that , unpacking the impact of online payments on cash demand is not easy.
The paper also speaks of the fact that the share of high-value currency notes has risen again. But the question — given general inflation over the years, what should be considered as high value? Is 200 or 500 still a high value?
Lots of food for thought in this paper, nevertheless:
Stemming from the new National Education Policy of 2020.
Several state governments requested schools to seek parental consent for the creation of a new student identity card known as the Automated Permanent Academic Account Registry (APAAR).
Under the initiative, each student would get a lifelong APAAR ID, making it easy for learners, schools, and governments to track academic progress from pre-primary education to higher education.
APAAR would also serve as a gateway to Digilocker, a digital system where students can store their important documents and achievements, such as exam results and report cards.
The goal behind introducing APAAR is to make education hassle-free and reduce the need for students to carry physical documents.
The vision is to create a positive change, allowing state governments to track literacy rates, dropout rates, and more, helping them make improvements.
APAAR also aims to reduce fraud and duplicate educational certificates by providing a single, trusted reference for educational institutions.
Every individual will have a unique APAAR ID, which will be linked to the Academic Bank Credit (ABC), which is a digital storehouse that contains information on the credits earned by students throughout their learning journey.
If the student changes schools, whether within the state or to another state, all her data in the ABC gets transferred to her new school just by sharing the APAAR ID.
Students won’t need to provide physical documents or transfer certificates
To sign up for APAAR, students will have to provide basic information such as name, age, date of birth, gender, and a photograph. This information will be verified using their Aadhar number.
Students will need to sign a consent form, and they can choose to either accept or decline sharing their Aadhar number and demographic information with the Ministry of Education for creating the APAAR ID.
For minors, parents will have to sign the consent form, allowing the Ministry to use the student’s Aadhar number for authentication with UIDAI.
Registration for creating an APAAR ID is voluntary, not mandatory.
India Rejected the Two-Nation Solution and Supported for Palestine’s Cause in Post-independence Years, after the recognition of Israel as a Country on September 17, 1950.
When the partition of Palestine plan was put to vote at the UN, India voted against it, along with the Arab countries.
When Israel applied for admission to the UN, India again voted against it.
Recognised the Palestine Liberation Organisation (PLO) as the Legitimate Representation of the Palestinian People in 1975.
The relationship between India and Palestine further strengthened when the Non-Alignment Movement (NAM) summit took place in India (1983), with a strong statement of solidarity for Palestine.
Things changed in West Asia when Iraq invaded Kuwait in August 1990. The PLO lost its political leverage on account of its support to Saddam Hussain. Around that time, the Soviet Union disintegrated. Established Full Diplomatic Relations with Israel in 1992.
Israel provided Military Assistance to India During the Kargil War.
Currently – A Balanced Foreign Policy..!!
The government had been quite careful about setting up Israel’s visit. Foreign Ministry made sure that the PM visited Saudi Arabia, Iran, Qatar, and UAE all regional rivals of Israel between 2014 and 2017, before the trip to Israel.
The Law Commission of India in its 283rd report on the ‘Age of Consent under the Protection of Children from Sexual Offences Act, 2012’ had ruled out reducing the age of consent to 16 years under the POCSO Act.
“After a careful review of existing child protection laws, various judgements and considering the maladies of child abuse, child trafficking and child prostitution that plague our society, the Commission is of the measured view that it is not advisable to tinker with the existing age of consent.
Further argued that “Any decrease in the age of consent would negatively impact the age-old fight against child marriage by providing parents an opportunity to marry minor girls. PCMA (Prohibition of Child Marriage Act) is silent on the age of consent and sexual relations with a minor, with the POCSO Act filling this void. – Reduction in the age of consent Can Increase “Child Marriages”
The report states that since the POCSO Act is an important tool to combat child trafficking and child prostitution altering the definition of “child” under the Act to under 18 years of age, would hamper its effectiveness.
Recommended for “guided judicial discretion in the matter of sentencing” in cases involving minors in the 16 to 18 years age group if tacit approval was involved.
The India Ageing Report 2023 released recently by the United Nations Population Fund (UNFPA) and the International Institute for Population Sciences (IIPS).
The report used the latest data available from:
◾The Longitudinal Ageing Survey in India (LASI), 2017–18,
◾Census of India,
◾Population Projections by the Government of India (2011–2036).
◾World Population Prospects 2022 by the United Nations Department of Economic and Social Affairs.
The report projects that the number of people aged 60 and above in India will double from 149 million in 2022 to 347 million in 2050.
Key highlights of the report;
Projection of the elderly population in the country The decadal growth rate of the elderly population of India is currently estimated to be at 41%.
With this rate, the percentage of elderly population in the country is projected to double to over 20% of the total population by 2050.
By 2046, the elderly population will likely have surpassed the population of children (aged 0 to 15 years) in the country.
🔴Population of people aged 80+
The report projected that the population of people aged 80+ years will grow at a rate of around 279% between 2022 and 2050 with a predominance of widowed and highly dependent very old women.
🔴Vulnerabilities of elders
More than 40% of the elderly in India are in the poorest wealth quintile, with about 18.7% of them living without an income. Such levels of poverty may affect their quality of life and healthcare utilisation.
🔴Higher life expectancy of women The data showed that women, on average, had higher life expectancy at the age of 60 and 80, when compared to men — with variations across States and Union Territories. The sex ratio (females per 1,000 males) among the elderly has been climbing steadily since 1991, with the ratio in the general population stagnating.
Reserve Bank of India imposes a monetary penalty of 1.30 Cr on the State Bank of India for non-compliance with the following directions by the bank, to the extent it, sanctioned a term loan to a Corporation;
** In lieu of or to substitute budgetary resources envisaged for certain projects.
**Without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations.
**The repayment/servicing of which was made out of budgetary resources.
Also imposed penalties on Indian Bank, Punjab & Sindh Bank and Fed Bank for being not compliant with RBI Direction & Circulars.
Bima Sugam a UPI like infrastructure for basket of insurance services at one platform.
The Insurance Regulatory and Development Authority of India (IRDAI) has formed a steering committee to act as the apex decision-making body for the creation of its ambitious ‘Bima Sugam’ online platform.
All about Bima Sugam platform:
1) Bima Sugam will be a ‘one-stop destination’ for people’s insurance-related needs. These include services such as policies, portability facilities, change of agents, settling of claims, and more.
2) With it, buyers will be to purchase life, motor, or health policies directly. Here, web aggregators (PolicyX, PolicyBazaar, etc.), brokers (Bajaj Capital, Probe Insurance Broker, etc.), banks, and insurance agents will be the facilitators in selling these policies.
3) Insurance companies (both general and life insurers) will be major shareholders in the platform, which will offer facilities to customers via an ‘e-insurance account’ (E-IA).
4) The portal will provide the following benefits: act as a centralised database; assist the insured/buyers in porting their respective policies based on coverage and pricing; give people a wide choice to pick and choose policies and view all their policies; reduce commission paid to intermediaries; and, pave the way for a speedy acceptance of new/sandbox products.
While the project has already missed its original and extended deadlines of January 2023 and August 2023, respectively, its new launch date has now been set for June 2024.
India posted a merchandise trade deficit of USD 24.2 billion in August 2023, the largest gap in ten months and above market expectations of USD 21 billion, mainly due to increased oil prices and a weaker rupee, which raised the import costs. Additionally, elevated commodity prices and weakening foreign demand have put pressure on exports.
India has been recording sustained trade deficits since 1980 mainly due to the strong import growth, particularly of mineral fuels, oils and waxes bituminous substances and pearls, precious and semi-precious stones and jewellery.
The reason for the mounting deficit is the inability to export which has been the central problem of the Indian economy since independence.
Are PLI, Export Subsidies, SEZ, and Make in India paying dividends..?
Delhi High Court has directed the Federation of Hotel and Restaurant Association of India (FHRAI) to substitute the term ‘service charge’ with ‘staff contribution’ and impose a maximum limit of 10% on the charge applied to bills
The CCPA stated in the guidelines issued on July 4, 2022, that service charge shall not be collected from consumers by any other name and is optional and voluntary. “Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount,” the guidelines said. Moreover, it cannot be added to the bill automatically, without informing the consumers, it was stated i.e it is a Voluntary Payment.
The guidelines were issued by the Central Consumer Protection Authority (CCPA) under Section 18(2)(1) of the Consumer Protection Act, 2019.
Recently, the Department of Consumer Affairs launced The ‘Right to Repair’ portal.
The ‘Right to Repair’ framework allows consumers to repair products at an optimal cost instead of buying new products altogether and encourages sustainability.
Under this regulatory framework, it would be mandatory for manufacturers to share their product details with customers so that they can either repair them by self or by third parties, rather than depending on original manufacturers.
Right to Repair will assist in achieving the targets under LiFE (Lifestyle for Environment).
The idea originally originated from the USA where the Motor Vehicle Owners’ Right to Repair Act 2012, required the manufacturers to provide the necessary documents and information to allow anyone to repair their vehicles.
BRICS is an important grouping bringing together the major emerging economies from the world, comprising 41% of the world population*, having 24% of the world GDP* and over 16% share in the world trade*.
Outcomes so far ;
Emergence of New Development Bank
Contingency Reserve Arrangements for Currency
R & D development centre for vaccines
More than 40 countries shown interest to join BRICS and at least 19 countries have applied for membership.
Intra BRICS trading in national currencies
Plan to puch BRICS currency to challenge universally accepted currency doller domination
Here concluding with this,
China and India 2 crucial BRICS nations can’t stop fighting over the Kashmir region.
At the current geopolitical standoff crucial meeting in South Africa the Russian president cannot attend because South Africa won’t promise not to arrest him because of an arrest warrant issued by the International Criminal Court.
-Separate provision for Mob Lynching, punishable with 7 years or life imprisonment or the death penalty;
-Formal provision for ‘Zero FIR’- this will enable citizens to lodge an FIR with any police station, no matter their jurisdiction;
-Zero FIR must be sent over to the concerned Police Station having jurisdiction in the alleged crime within 15 days after registration;
-‘ Deemed Sanction’ to prosecute civil servants, and police officers accused of criminal offences in case the authority fails to respond within 120 days of application;
-Digitization of complete process starting from registration of FIR to maintenance of Case Diary to filing of Charge sheet and delivery of Judgment;
-Complete trial, including Cross-examination, to be facilitated via Video conferencing;
-Videography while recording statement of victims of sexual crimes mandatory;
-Punishment for all types of Gang Rape- 20 yrs or life imprisonment;
-Punishment for Rape of minor- death penalty;
-Charge sheet to be mandatorily filed within 90 days of FIR; Court may extend such time by further 90 days, taking the total maximum period for winding up investigation to 180 days;
-Courts to finish framing of charges within 60 days of receiving charge sheet;
-Judgment to be mandatorily delivered within 30 days after conclusion of hearing;
-Judgment to be mandatorily made available online within 7 days of pronouncement;
-Videography mandatory during Search & Seizure;
-Forensic Teams to mandatorily visit crime scenes for offences involving punishment of more than 7 years;
-Deployment of Mobile FSLs at the district level;
-No case punishable with 7 years or more shall be withdrawn without providing the opportunity of hearing to the victim;
-Scope of Summary Trials expanded to offences punishable up to 3 years (will reduce 40% cases in Sessions courts);
-Separate, harsh punishment for organized crimes;
-Separate provisions penalizing rape of women under the false pretext of marriage, job, etc.;
-Separate provision for ‘Chain Snatching’ and similar miscreant activities;
-Punishment of the death penalty can at max be commuted to a life term, punishment of a life term may at max be commuted to 7 years imprisonment and punishment of 7 years may be commuted to 3 years imprisonment and no less;
-Videography of vehicles seized for involvement in any offence mandatory, whereafter a certified copy will be submitted to the Court to enable disposal of the seized vehicle during the pendency of the trial.
India is projected to become a 5 Trillion$ economy by 2024.
We will be the 3rd largest economy by then.
By 2047, we will be a 40 Trillion$ economy. And, by this point, we will be a developed economy.
This is a matter of great celebration. NO DOUBT. And, we should be proud.
Having said this, if you look around, you will find that India ranks 158/212 on GDP/Capita. No one seems to even talk about this number (like ever..!).
This means that while India is growing GDP-wise, an ‘average’ Indian is still quite poor.
The question comes WHY?
[1] Our GDP comes from domestic consumption, not exports. For decades we have run, a trade deficit, not a trade surplus (i.e we import more and export less)
[2] Singapore on the other hand, runs a trade surplus. In 2021 for example, they had a trade surplus of 126Billion$, which is almost 32% of their GDP.
[3] Interestingly, Japan, Germany, and China (three countries which are ahead of us in terms of GDP), all run trade surplus (generally)
The US is the only exception that runs a trade deficit (like India). But, they are a special case as they hold the reserve currency.
They can print their fake money and buy real goods from the world to the extent they want. And, still not cause a panic.
So to a the long-story-short, I don’t know if India is richer than Singapore.
Maybe it is, maybe it is not.
Logically speaking, I don’t know if a country can truly become rich without running a trade surplus.
Even if we look at history, this holds For 1700 years, India controlled 25-33% of worth world’s wealth.
Even during this phase, India was a net exporter of finished goods.
Point is: Economics is complex. And, I am giving you all this info, so that you can understand the picture more holistically.
Earlier this year SEBI devised a new fund to rescue non-AAA rated debt in times of market dislocation. It will be launched by Finance Minister Nirmala Sitharaman tomorrow.
The Corporate Debt Market Development Fund will be funded by debt mutual funds and guaranteed by the government.
Key Highlights
▪ Government notifies Guarantee Scheme for Corporate Debt.
▪ To provide guarantee cover against debt raised by Corporate Debt Market Development Fund.
▪ CDMDF will invest in corporate debt securities at times of market dislocation.
▪ Guarantee shall not exceed Rs. 30,000 crore.
▪ All debt-oriented mutual fund schemes to contribute 25 bps of assets under management.
▪ Asset management companies of these schemes to make a one-time contribution of 2 bps of AUM.
▪ These contributions to be held in the form of investment in units of CDMDF.
▪ In times of market dislocation, CDMDF can leverage corpus up to 10 times from banks or bond market or repo market, subject to maximum guarantee of Rs. 30,000 crore.
▪ This enlarged corpus can be used to purchase and hold eligible corporate debt securities of investment grade with residual maturity not exceeding 5 years.
▪ CDMDF will offload a large part of its holdings within a reasonable time of 3 months from the end of market dislocation period.
1) Penalty: The maximum penalty of Rs 5000 is levied if you file your ITR after the due date i.e. after 31st July and before 31st December.
However there is a relief for small taxpayers, If their total income does not exceed Rs 5 Lakh, the minimum penalty levied for delay will be Rs 1000.
2) Interest on Unpaid Taxes:
Apart from the Penalty, interest will be charged under Section 234A at 1% per month or part thereof on tax due until the payment of taxes. It is important to note that you cannot file ITR unless you pay taxes. The interest calculation under the said section will start from the date falling immediately after the due date.
3) Unable to Set Off losses:
Losses incurred are not allowed to be carried forward to subsequent years. You cannot set off these losses against future gains if the return has not been filed within the due date. However, if there are any losses under House Property, carry forward is permitted
4) Delayed Refunds:
In case you’re entitled to receive a refund from the government for excess taxes paid, you must file the returns before the due date to receive your refund at the earliest.
5) Prosecution & imprisonment:
If a taxpayer fails to file their income tax return, they will receive a notice from the Income Tax Department under Section 142(1), 148, or 153A. Failure to file even after receiving these notices can result in prosecution under Section 276CC of the Income Tax Act for tax evasion.
The penalties for tax evasion exceeding ₹25 lakh include a penalty for not filing an ITR and imprisonment of at least 6 months, which may extend to 7 years. For other cases, the prescribed penalty is imposed along with imprisonment of at least 3 months, which can be extended up to two years.
It’s always better not to wait for the last day to file Tax Returns as Income Tax Portal works slowly due to heavy traffic. Last year 72 lakhs returns were filed on the last day i.e. 31 July. Let us see if the record is broken and it may cross 1 crore this year.
Did 13.5 crore Indians really exit “poverty” in 5 yrs as some of the reporting around Niti Aayog data suggests ?
No — and this needs some unpacking.
Things we need to know:
1. This has nothing to do with any “resilience” of India’s poor during the pandemic because the data is based on NFHS 2019-21, for which survey fieldwork was completed in 22 of the 36 states/UTs by Feb 2020.
2. It’s ‘multidimensional’ poverty (more on that in my explainer today), NOT poverty.
It’s only a *complement* to poverty data, as Niti Aayog itself says.
3. Poverty remains a monetary measure, on which we lack official data since 2011-12.
4. No index is perfect: the selection, definition, weighting of criteria can always be debated.
Yet, indices can help — as long as (and only if !) we know what they mean and what they don’t. The data is about ‘multidimensional poverty’ — a mix of 12 indicators across health, education and living standards.
MDP is a global measure used by UNDP since 2010, and Niti Aayog created an Indian version (with tweaks, hence not comparable) in 2021.
GST Council recommends Casino, Horse Racing and Online gaming to be taxed at the uniform rate of 28% on full face value.
Everyone worried about 28% GST on online Gaming & Gambling.But compensation cess (over and above GST) on Multi utility vehicles equaled with SUV’s and XUV’s.Previously it was 20%.
GST Council recommends notification of GST Appellate Tribunal by the Centre with effect from 01.08.2023.
GST Council recommends exemption of cancer-related drugs, medicines for rare diseases and food products for special medical purposes from GST tax.
Recommends bringing down rates from 18 percent to 5 percent on 4 items – Uncooked, unfried & extruded snack palettes, fish soluble paste, LD slag to be at par with blast furnace slag, and imitation zari thread.
GST Council also recommends several measures for streamlining compliances in GST.
Transporters will not be required to file declaration for paying GST under forward charge every year.
No RCM on services supplied by a director of a company to the company in his private or personal capacity such as supplying services by way of renting of immovable property to the company
Relief for taxpayers,
Govt extended the special procedure regarding mismatch in ITC availed in GSTR-3B and 2A for two more years i.e 2019-20 and 2020-21.
Amnesty schemes notified vide notifications dated 31.03.2023 regarding non-filers of FORM GSTR-4, FORM GSTR-9 & FORM GSTR-10 returns, revocation of cancellation of registration extended till 31.08.2023.
To do away with the requirement that the physical verification of business premises is to be conducted in the presence of the applicant.
To provide for physical verification in high risk cases even where Aadhaar has been authenticated.
System-based intimation to the taxpayers in respect of the excess availment of ITC in FORM GSTR-3B vis a vis that made available in FORM GSTR-2B.
Supply of food and beverages in cinema halls is taxable at 5%
Relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C be continued for FY 2022-23
No GSTR-9 for turnover upto 2 crores.
Input Services Distributor (ISD) mechanism is not mandatory for distribution of input tax credit of common input services procured from third parties to the distinct persons as per the present provisions of GST law. Amendment may be made in GST law to make ISD mechanism mandatory prospectively.
Detailed Circular to be issued to provide clarity on liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during warranty period.
Refund of accumulated input tax credit (ITC) to be restricted to ITC appearing in FORM GSTR-2B.
Only Name of state on tax invoice, not the name and full address of the recipient, in cases of supply of taxable services by or through an ECO.
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