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Export of Organic Millets

Why in News In a major boost to exports of organic products from the country, the first consignment of millets grown in the Himalayas would be...

06 May 2021 Industrial Growth
Micro in MSME

This article is based on “Micro enterprises need exclusive treatment” which was published in The Hindu business line on 23/04/2021. It...

24 Apr 2021 Industrial Growth
Helium Crisis for India

Why in News India imports helium for its needs, and with the USA appearing set to cut off exports of helium since 2021, Indian industry stands to...

26 Mar 2021 Industrial Growth
Recommendations to Amend the Consumer Protection (E-Commerce) Rules, 2020

Why in News Recently, a parliamentary panel on the Consumer Protection (E-Commerce) Rules, 2020 has recommended that the government should amend the...

26 Mar 2021 Industrial Growth
Empowering the MSMEs Digitally

This article is based on “How e-commerce marketplaces can drive MSME makeover” which was published in The Indian Express on 18/03/2021....

19 Mar 2021 Industrial Growth
PLI Scheme for Telecom Sector

Why in News The Union Cabinet has approved the Production-Linked Incentive (PLI) scheme for the telecom sector with an outlay of Rs. 12,195 crores...

09 Mar 2021 Industrial Growth
Merchant Digitization Summit 2021

Why In News Recently, the Government of India, Federation of Indian Chambers of Commerce and Industry (FICCI), and UN-based Better Than Cash...

03 Mar 2021 Industrial Growth
The Big Picture: Budget 2021 for Green Energy

Why in News? The Union Budget for FY 2021-22 presented by the Union Minister of India, has exclusively focussed on Green Energy...

09 Feb 2021 Industrial Growth
The Big Picture : One Nation, One Gas Grid

Why in News? The Prime Minister of India has recently inaugurated the 450-km natural gas pipeline between Kochi in Kerala to Mangalore in...

12 Jan 2021 Industrial Growth
The Big Picture: India’s Renewable Energy Plan

Why in News? Recently, the Prime Minister of India has announced about having huge renewable energy deployment plans for India for the next decade...

08 Dec 2020 Industrial Growth
The Big Picture : Draft Spacecom Policy and India's Space Sector

Why in News? The Union government has permitted for the reforms in the space sector by allowing private players' participation, the Indian Space...

25 Nov 2020 Industrial Growth
Gujarat Maritime Cluster

Why in News The Gujarat Maritime Cluster is coming up in the GIFT (Gujarat International Finance Tec-City) City at Gandhinagar to address logistics...

13 Nov 2020 Industrial Growth
India in BRICS Ministers’ Meeting

Why in News Recently, the BRICS Labour and Employment Ministers’ Virtual Meeting was held under the Russian Presidency. It aimed to discuss...

13 Oct 2020 Industrial Growth
Contraction in GDP of India in 2020-21: World Bank

Why in News Recently, the World Bank released its South Asia Economic Focus report which estimated that India’s Gross Domestic Product (GDP)...

09 Oct 2020 Industrial Growth
Reforms in Exploration and Licensing Policy: Oil & Gas

Why in News The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister has approved the Policy framework on reforms in the...

08 Oct 2020 Industrial Growth
National Startup Awards 2020

Why in News The results of the first edition of National Startup Awards (2020) were recently released by the Ministry of Commerce &...

07 Oct 2020 Industrial Growth
The Big Picture: The Labour Code Bills

Why In News? Parliament has passed 3 labour code bills aimed at labour welfare reforms covering more than 50 crores organized and unorganized...

07 Oct 2020 Industrial Growth
PCA Decision on Retrospective Taxation by India

Why in News The Permanent Court of Arbitration (PCA) at The Hague (Netherlands) ruled that India’s retrospective imposition of a tax...

26 Sep 2020 Industrial Growth
Right Code For Labour

This article is based on Rajya Sabha approves three codes subsuming 25 central labour laws which was published in The LiveMint on 23/09/2020. It...

24 Sep 2020 Industrial Growth
Contraction in July Factory Output: IIP

Why in News Recently, the National Statistical Office (NSO) has released data, highlighting the decline in the factory output (also called...

12 Sep 2020 Industrial Growth

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		'article_id' => (int) 8316,
		'category_id' => (int) 21,
		'title' => 'Export of Organic Millets',
		'description' => '<h3>Why in News</h3>
<p>In a major boost to exports of organic products from the country, the first consignment of millets grown in the Himalayas would be exported to Denmark.</p>
<ul style="list-style-type: square;">
<li><strong>APEDA (Agricultural and Processed Food Products Export Development Authority) has sourced ragi (finger millet), and jhingora (barnyard millet) from farmers in Uttarakhand</strong> for exports.</li>
<li>At present, organic products are exported provided they are produced, processed, packed and labelled as per the requirements of the <strong>National Programme for Organic Production (NPOP).</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>National Programme for Organic Production (NPOP):</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>NPOP</strong> has been implemented by <strong>APEDA</strong> since its <strong>inception in 2001</strong> as notified under the <strong>Foreign Trade (Development and Regulations) Act, 1992.</strong></li>
<li>NPOP <strong>covers</strong> standards for crops and their products, live stocks and poultry products, aquaculture, apiculture etc. The exports from the country are as per the provisions in NPOP.</li>
<li>The NPOP certification <strong>has been recognized by the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/european-union" target="_blank" rel="noopener">European Union</a> and Switzerland</strong> which enables India to export unprocessed plant products to these countries without the requirement of additional certification.<br />
<ul style="list-style-type: disc;">
<li>It also facilitates export of Indian organic products to the <strong>United Kingdom</strong> even in the <strong>post <a href="/daily-updates/daily-news-analysis/brexit-2" target="_blank" rel="noopener">Brexit</a> phase.</strong></li>
</ul>
</li>
<li>NPOP has also been <strong>recognized by the Food Safety Standard Authority of India (FSSAI)</strong> for trade of organic products in the domestic market.</li>
<li>Organic products covered under the bilateral agreement with NPOP need not to be recertified for import in India.</li>
</ul>
</li>
<li><strong>Organic Farming:</strong><br />
<ul style="list-style-type: circle;">
<li>According to FSSAI, &rsquo;<a href="/daily-updates/daily-news-analysis/organic-farming-in-india" target="_blank" rel="noopener"><strong>organic farming</strong></a>&rsquo; is <strong>a system of farm design and management to create an ecosystem of agriculture production without the use of synthetic external inputs</strong> such as chemical fertilisers, pesticides and synthetic hormones or genetically modified organisms.</li>
<li><strong>Related Initiatives:</strong><br />
<ul style="list-style-type: disc;">
<li>Mission Organic Value Chain Development for North East Region (MOVCDNER).</li>
<li>Paramparagat Krishi Vikas Yojana (PKVY), etc.</li>
</ul>
</li>
<li>The Indian state of <strong>Sikkim</strong> achieved the feat of being the<strong> world's first organic state</strong> and was awarded the UN Future Policy Gold Award 2018, also known as the Oscar for best policies.</li>
</ul>
</li>
<li><strong>Status of India&rsquo;s Export of Organic Food:</strong><br />
<ul style="list-style-type: circle;">
<li>India&rsquo;s export of organic food products rose by <strong>more than 51% to Rs. 7078 crore</strong> during April-February (2020-21) compared to the same period in the previous fiscal (2019-20). In terms of <strong>quantity</strong>, the exports of organic food products <strong>grew by 39%</strong>.</li>
<li><strong>Oil cake meal is a major commodity</strong> of the organic product exports from the country followed by oil seeds, fruit pulps and purees, cereals &amp; millets, spices, tea, medicinal plant products, dry fruits, sugar, pulses, coffee, essential oil etc.</li>
<li>India&rsquo;s organic products have been <strong>exported to 58 countries</strong> including USA, European Union, Canada, Great Britain, Australia, Switzerland, Israel and South Korea.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Agricultural and Processed Food Products Export Development Authority</strong></p>
<ul style="list-style-type: square;">
<li>APEDA was established by the Government of India under the<strong> Agricultural and Processed Food Products Export Development Authority Act, 1985.</strong></li>
<li>It functions under the <strong>Ministry of Commerce and Industry. The Authority has its headquarters in New Delhi.</strong></li>
<li>It has been <strong>mandated with the responsibility of export promotion and development of the scheduled products</strong> viz. fruits, vegetables, meat products, dairy products, alcoholic and non-alcoholic beverages etc.</li>
<li>It has also been entrusted with the <strong>responsibility to monitor import of sugar.</strong></li>
</ul>
</div>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1716297" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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		'article_id' => (int) 8231,
		'category_id' => (int) 22,
		'title' => 'Micro in MSME',
		'description' => '<div class="border">
<p>This article is based on <a href="https://www.thehindubusinessline.com/opinion/micro-enterprises-need-exclusive-treatment/article34387375.ece" target="_blank" rel="noopener"><strong>&ldquo;Micro enterprises need exclusive treatment&rdquo;</strong></a> which was published in The Hindu business line on 23/04/2021. It talks about the significance and associated issues with the micro-industries in the MSME sector.</p>
</div>
<p>The micro small and medium enterprises (MSMEs) have been accepted as the engine of economic growth and for promoting equitable development.</p>
<p>The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports.</p>
<p>However, micro enterprises represent the most vulnerable segment in the whole MSME sector. These were the major victims of both demonetisation and the sudden lockdown to contain Covid-19.</p>
<p>Further, there exist the huge heterogeneity, characteristics, constraints and other attributes, which are critically important for policy design associated with the micro industries. Thus, the umbrella policy for the MSMEs has little relevance for micro enterprises.</p>
<h3>Significance of Micro Industries in MSME</h3>
<ul style="list-style-type: square;">
<li>Latest available NSSO data show that manufacturing-based micro enterprises constitute 99.7 per cent of the MSMEs while supporting 97.5 percent of employees. <br />
<ul style="list-style-type: circle;">
<li>Further, the micro units account for 90.1 percent of the MSME output and 91.9 percent of income.</li>
</ul>
</li>
<li>A craftsman, weaver, food processor, fisherman, carpenter, shoe-maker/cobbler, tutor, tailor, plumber, electrician, street side food shop, ice-cream parlour, beauty salon, motor (repair) garage, transport agency, advertising entity are just a few examples.</li>
<li>Their presence in high numbers makes them the most diffused segment in our socio-economic system.</li>
<li>Micro-enterprises are distinct in the variety of activities and characteristics, but low in economic contribution. <br />
<ul style="list-style-type: circle;">
<li>Nevertheless, these enterprises are hugely consequential for the marginalised sections bypassed by the development process.</li>
</ul>
</li>
</ul>
<h3>Associated Issues With Micro Industries</h3>
<ul style="list-style-type: square;">
<li><strong>Heterogeneity:</strong> Heterogeneity in the form of greater use of hired assets under the micro segment. <br />
<ul style="list-style-type: circle;">
<li>The ability to own capital is low in micro industries. This implies that rental expenses constitute a higher share in total costs.</li>
<li>Since, the asset ownership pattern has implications for technology upgradation.The capital loans have little relevance for the micro-enterprises to stimulate growth of the micro industries.</li>
<li>It could be the case that a micro-enterprise is unwilling to invest in view of the risks associated with market uncertainties.</li>
</ul>
</li>
<li><strong>Fragmented Structure:</strong> Despite supporting a large proportion of the workforce, they lack a lobby to voice their concerns simply because of a fragmented structure.<br />
<ul style="list-style-type: circle;">
<li>Due to a limited understanding of the procedures and low volumes, these units are disproportionately disadvantaged when it comes to participating in public procurements.</li>
</ul>
</li>
<li><strong>One-Size-Fits-All Approach:</strong> For most part of the policy and stimulus package, the incentives and relief are designed as common across MSMEs bringing them under one umbrella. <br />
<ul style="list-style-type: circle;">
<li>This tends to bypass micro enterprises even if they are overwhelmingly predominant in the collective group of MSMEs.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Dedicated Policy:</strong> There is a need to acknowledge that serving micro-enterprises and SMEs through a common policy does not meet the needs of micro units.<br />
<ul style="list-style-type: circle;">
<li>In fact, the RBI expert committee report on MSMEs documents that micro (and small) enterprises have limited bargaining capacity.</li>
<li>Thus, there is a need for a focussed approach towards micro-enterprises for gathering and capturing specific information is an inevitable consideration for the New Industrial Policy.</li>
</ul>
</li>
<li><strong>Co-operative Model:</strong> More efforts in the form of higher investment in advanced technology, usage of digital and technology enabled platforms, transfer of technology, more investment in human resources, improved access to finance, etc. are required.<br />
<ul style="list-style-type: circle;">
<li>Promotion of co-operative models (on the lines of farmer producer organisations) can help micro-industries in this regard.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>With a greater role envisioned for MSMEs in the $5 trillion economy by 2024-25, it is important that the micro segment is not left behind. Their inclusion is contingent upon recognition of the uniqueness for policy design.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #fefffa;">
<p><span style="color: #000080;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>A thoughtfully crafted and focussed approach towards micro-enterprises for gathering and capturing specific information is an inevitable consideration for the New Industrial Policy. Discuss.</p>
</td>
</tr>
</tbody>
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		'article_id' => (int) 8019,
		'category_id' => (int) 21,
		'title' => 'Helium Crisis for India',
		'description' => '<h3>Why in News</h3>
<p>India imports helium for its needs, and with the USA appearing set to cut off exports of helium since 2021, Indian industry stands to lose out heavily.</p>
<ul style="list-style-type: square;">
<li>The <strong>Federal Helium Reserve</strong> which is the major helium reserve of the USA is set to <strong>close down production in 2021</strong>, and scientists are looking for new reserves to replace it.</li>
</ul>
<h3>Key points</h3>
<ul style="list-style-type: square;">
<li><strong>About Helium:</strong><br />
<ul style="list-style-type: circle;">
<li>Helium is a <strong>chemical element</strong> with the symbol <strong>He</strong> and atomic number <strong>2</strong>.</li>
<li>It is a <strong>colourless, odourless, tasteless, non-toxic, inert, monatomic gas</strong>, the first in the noble gas group in the periodic table.</li>
<li>Its <strong>boiling point is the lowest</strong> among all the elements.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1616754903_image5.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1616754903_image5.png" width="500" caption="false" style="display: block; margin-left: auto; margin-right: auto;" /></a></p>
<ul style="list-style-type: square;">
<li><strong>Discovery of Helium:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Atmosphere Surrounding the Sun:</strong><br />
<ul style="list-style-type: disc;">
<li>Helium was discovered <strong>in the gaseous atmosphere surrounding the Sun</strong> by the <strong>French astronomer Pierre Janssen</strong>, who detected a bright yellow line in the spectrum of the solar chromosphere during an eclipse in <strong>India</strong> in the year <strong>1868.</strong></li>
<li><strong>Joseph Norman Lockyer</strong> recorded the same line by observing the sun through London smog and, assuming the new element to be a metal, he <strong>named it helium.</strong></li>
</ul>
</li>
<li><strong>On Earth:</strong><br />
<ul style="list-style-type: disc;">
<li>The British chemist <strong>Sir William Ramsay discovered</strong> the existence of <strong>helium on Earth in 1895.</strong></li>
</ul>
</li>
<li><strong>In India:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>In 1906</strong> a young Englishman by the name of Morris Travers <strong>extracted helium in small quantities by heating up monazite sand</strong> abundantly available in Kerala beach, in a pioneering effort.
<ul style="list-style-type: disc;">
<li><strong>Monazite</strong> is a primarily reddish-brown phosphate mineral that contains rare-earth elements.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li><strong>Indian Reserves:</strong><br />
<ul style="list-style-type: circle;">
<li>India&rsquo;s <strong>Rajmahal volcanic basin in Jharkhand</strong> is the storehouse of helium trapped for billions of years, since the very birth of Earth from the Sun.</li>
<li>At present, researchers are mapping the Rajmahal basin extensively for future exploration and harnessing of helium.</li>
</ul>
</li>
<li><strong>Need for India:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>To Reduce Import Burden:</strong><br />
<ul style="list-style-type: disc;">
<li>Every year, India imports helium worth Rs. 55,000 crores from the USA to meet its needs.</li>
</ul>
</li>
<li><strong>Vast Use:</strong><br />
<ul style="list-style-type: disc;">
<li>Helium is used in medicine, scientific research, for blimp inflation, party balloons as well as for welding applications.</li>
<li>It finds many applications, mainly in magnetic resonance imaging (MRI) scans, in rockets and in nuclear reactors.</li>
</ul>
</li>
</ul>
</li>
<li><strong>USA&rsquo;s Monopoly:</strong><br />
<ul style="list-style-type: circle;">
<li>After discovering that helium was concentrated in large quantities under the <strong>American Great Plains.</strong></li>
<li>The <strong>USA became the most important exporter of helium</strong> across the world.</li>
<li>It was soon realized that the <strong>USA was also the biggest storehouse of helium.</strong></li>
</ul>
</li>
<li><strong>Other Option:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Qatar</strong> is a possible exporter but acute political and diplomatic wrangles have made Qatar <strong>unreliable</strong>.</li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/sci-tech/science/the-emerging-crisis-of-obtaining-helium-in-india/article34118742.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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		'article_id' => (int) 8018,
		'category_id' => (int) 21,
		'title' => 'Recommendations to Amend the Consumer Protection (E-Commerce) Rules, 2020',
		'description' => '<h3>Why in News</h3>
<p>Recently, a parliamentary panel on the <a href="/daily-updates/daily-news-analysis/consumer-protection-act-2019#:~:text=The%20Consumer%20Protection%20(E%2Dcommerce)%20Rules%2C%202020%20are,the%20description%20on%20the%20platform." target="_blank" rel="noopener"><strong>Consumer Protection (E-Commerce) Rules, 2020</strong></a> has recommended that the government should amend the rules to provide better protection to consumers rights and stop unfair practices.</p>
<ul style="list-style-type: square;">
<li><strong>Electronic commerce or e-commerce</strong> is a business model that lets firms and individuals buy and sell things over the Internet.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Issues:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Predatory Pricing:</strong><br />
<ul style="list-style-type: disc;">
<li>Predatory pricing as a<strong> short-term strategy,</strong> adopted by some of the market giants, may lead to wiping out competition from the market and could be <strong>detrimental to the consumers in the long run.</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Predatory Pricing:</strong> It is the pricing of goods or services at such a low level that other firms cannot compete and are forced to leave the market.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Unfair Practices:</strong><br />
<ul style="list-style-type: disc;">
<li>While e-commerce enterprises offer many benefits, the development of the segmentation has rendered consumers vulnerable to new forms of <strong>unfair trade practices, violation of privacy </strong>and<strong> issues of unattended grievances.</strong></li>
<li>There are increasing cases of <strong>fake reviews</strong> and <strong>unfair favouritism</strong> in the display of goods.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Major Recommendations:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Clear Definition:</strong><br />
<ul style="list-style-type: disc;">
<li>There should be a more clear-cut definition of what constitutes <strong>Unfair Trade Practice </strong>and <strong>practical legal remedy</strong> to tackle such circumventing practices by e-commerce entities specifically Multinational Companies (MNCs) and Kirana Small Vendors.</li>
<li>Clearly define<strong> &lsquo;drip pricing&rsquo;</strong> wherein the final cost of the product goes up due to additional charges, and provide for protecting consumers against this by including penal provisions for violation.</li>
</ul>
</li>
<li><strong>Fixing Delivery Charges:</strong><br />
<ul style="list-style-type: disc;">
<li>The Ministry of Consumer Affairs, Food and Public Distribution should <strong>issue broad guidelines for the fixation of delivery charges charged</strong> by the e-commerce entities along with a cap on the highest limits of the delivery charges in peak hours of service.</li>
<li>It should clearly <strong>distinguish in the Rules itself the cases of misinformation, no information and the information</strong> which is otherwise correct but creates a false impression and provides for penal provision for each case in the Rules itself.</li>
</ul>
</li>
<li><strong>Categorization of Personal Data:</strong><br />
<ul style="list-style-type: disc;">
<li>For protection of privacy of users and security of their data, the panel has recommended that <strong>users&rsquo; personal data may be categorised as per the level of sensitivity</strong> and appropriate protection may be assigned for each level.</li>
</ul>
</li>
<li><strong>Payment Security:</strong><br />
<ul style="list-style-type: disc;">
<li>A <strong>secured and robust system of payment gateway should be made available</strong> to the consumers so that the transaction-related data of the users is not compromised in any way.</li>
</ul>
</li>
<li><strong>Local Data Centres:</strong><br />
<ul style="list-style-type: disc;">
<li>All major e-marketplace entities <strong>should establish their data centre in India,</strong> so that consumer data are not hosted on a server outside the borders of the country, which may be misused by an enemy country.</li>
</ul>
</li>
<li><strong>Customer Care:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>E-commerce entities should provide a dedicated customer care number</strong> as well as a mechanism to monitor the time taken by customer care executives to resolve an issue.</li>
</ul>
</li>
<li><strong>Protection to Small/Local Vendors:</strong><br />
<ul style="list-style-type: disc;">
<li>There is a need to devise some regulatory mechanism to protect the local vendors/kirana, therefore,<strong> sufficient protection to such small/local vendors </strong>and<strong> ways in which such small retailers may also become part of e-commerce</strong> should be given by the Ministry.</li>
</ul>
</li>
<li><strong>Discourage Deceptive Techniques:</strong><br />
<ul style="list-style-type: disc;">
<li>Some corrective mechanisms to discourage deceptive tactics including manipulation of algorithms, fake product reviews &amp; ratings must be created so that the consumer interest is not harmed in any way.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Consumer Protection (E-Commerce) Rules, 2020</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong><br />
<ul style="list-style-type: circle;">
<li>The Consumer Protection (E-commerce) Rules, 2020 <strong>are mandatory</strong> and are not advisories.</li>
</ul>
</li>
<li><strong>Applicability:</strong> <br />
<ul style="list-style-type: circle;">
<li><strong>Apply to all e-commerce retailers,</strong> whether registered in India or abroad, offering goods and services to Indian consumers.</li>
</ul>
</li>
<li><strong>Nodal officer:</strong> <br />
<ul style="list-style-type: circle;">
<li>E-commerce entities need to appoint a nodal person, resident in India <strong>to ensure compliance with the provisions of the act or rules.</strong></li>
</ul>
</li>
<li><strong>Prices and Expiry Dates:</strong> <br />
<ul style="list-style-type: circle;">
<li>The sellers through the e-commerce entities will have to<strong> display the total price of goods and services offered for sale along with the break-up of other charges. </strong></li>
<li><strong>Expiry date</strong> of the good needs to be separately displayed.</li>
</ul>
</li>
<li><strong>Importer and Relevant Details:</strong> <br />
<ul style="list-style-type: circle;">
<li>All relevant details about the goods and services offered for sale by the Seller including<strong> country of origin</strong> and in case of imported goods the <strong>name and details of the importer, and guarantees related to the authenticity or genuineness of the imported products</strong> need to be provided to enable the consumer to make an informed decision at the pre-purchase stage.</li>
</ul>
</li>
<li><strong>Grievance Redressal Mechanism: </strong><br />
<ul style="list-style-type: circle;">
<li><strong>Marketplaces,</strong> as well as <strong>sellers,</strong> need to appoint a <strong>grievance officer.</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Marketplace Model of E-commerce:</strong> It means providing an<strong> information technology platform</strong> by an e-commerce entity on a digital and electronic network<strong> to act as a facilitator between buyer and seller.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Restriction on Unfair Trade Practice, Manipulation and Discrimination: </strong><br />
<ul style="list-style-type: circle;">
<li><strong>No e-commerce entity shall manipulate the price of goods or services to gain unreasonable profit</strong> or<strong> discriminate between consumers</strong> of the same class or make any arbitrary classification of consumers affecting their rights.</li>
</ul>
</li>
<li><strong>Should not Post Fake Reviews or Mislead:</strong> <br />
<ul style="list-style-type: circle;">
<li>No seller or inventory e-commerce entity shall falsely represent itself as a consumer and post reviews about goods or services or misrepresent the quality or the features of any goods or services.</li>
</ul>
</li>
<li><strong>No Cancellation Charges:</strong> <br />
<ul style="list-style-type: circle;">
<li>No e-commerce entity shall impose cancellation charges on consumers.</li>
<li><strong>Sellers should not refuse to take back goods,</strong> or withdraw or discontinue services if such goods and services are defective, deficient or spurious.</li>
</ul>
</li>
<li><strong>Record Information of Sellers Selling Counterfeit Products:</strong> <br />
<ul style="list-style-type: circle;">
<li>E-commerce entities need to maintain a record of information for the identification of all sellers who have repeatedly offered goods or services that have previously been removed or restricted under the <a href="/daily-updates/daily-news-analysis/draft-copyright-amendment-rules-2019#:~:text=The%20amendments%20are%20being%20brought,and%20the%20Copyright%20Rules%2C2013." target="_blank" rel="noopener"><strong>Copyright Act, 1957,</strong></a> the <strong>Trade Marks Act, 1999</strong> or the <a href="/daily-updates/daily-news-analysis/indian-laws-and-blocking-of-internet-content-centre-vs-twitter#:~:text=Information%20Technology%20Act%2C%202000%3A,computer%20resources%20and%20electronic%20records." target="_blank" rel="noopener"><strong>Information Technology Act, 2000.</strong></a></li>
</ul>
</li>
<li><strong>Penalty:</strong> <br />
<ul style="list-style-type: circle;">
<li>The violation of the rules will attract penal action under the <a href="/daily-updates/daily-news-analysis/consumer-protection-bill-2019" target="_blank" rel="noopener"><strong>Consumer Protection Act, 2019.</strong></a></li>
</ul>
</li>
</ul>
<p><a href="https://www.thehindu.com/business/define-unfair-trade-practice-for-e-com/article34154056.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
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		'article_id' => (int) 7973,
		'category_id' => (int) 22,
		'title' => 'Empowering the MSMEs Digitally',
		'description' => '<div class="border">
<p>This article is based on <a href="https://indianexpress.com/article/opinion/columns/msme-sector-manufacturing-e-commerce-digital-empowerment-7233355/" target="_blank" rel="noopener"><strong>&ldquo;How e-commerce marketplaces can drive MSME makeover&rdquo;</strong></a> which was published in The Indian Express on 18/03/2021. It talks about how the MSME sector of India is the backbone of its economy and how the involvement of e-commerce in the sector can help it thrive.</p>
</div>
<p>India&rsquo;s economic landscape is defined by its <a href="/daily-updates/daily-news-editorials/msme-sector-in-india" target="_blank" rel="noopener"><strong>micro, small and medium enterprises (MSMEs).</strong></a> However, the sector is based on obsolete technology, which hampers its production efficiency.</p>
<p>With India&rsquo;s goal of inclusive development, enhanced livelihoods and the notion of &ldquo;vocal for local&rdquo;, <a href="/to-the-points/paper3/e-commerce-in-india" target="_blank" rel="noopener"><strong>e-commerce</strong></a> marketplaces for the MSMEs become more significant.</p>
<p>With its ability to accelerate businesses, e-commerce could be a means for Indian MSMEs to unlock global value chains.</p>
<p>Moreover, automation in the production process for greater efficiency and availability of more channels to MSMEs to provide access to greater markets is the need of the hour.</p>
<h3>MSMEs and e-Commerce</h3>
<ul style="list-style-type: square;">
<li><strong>MSME:</strong> As per data from the <a href="/to-the-points/Paper2/year-end-review-2019-ministry-of-micro-small-and-medium-enterprises" target="_blank" rel="noopener"><strong>Ministry of Micro, Small and Medium Enterprises</strong></a>, almost 51% of Indian MSMEs are based in rural areas. <br />
<ul style="list-style-type: circle;">
<li>They often need exposure to large markets and expertise to be able to scale up and enhance capabilities.</li>
<li>Some of the challenges that MSMEs are faced with today are working capital crunch, supply chain bottlenecks, technological glitches, elaborate GST compliance framework, limited customer appetite for spending and many more.<br />
<ul style="list-style-type: disc;">
<li>The answer to some of these challenges lies in MSMEs embracing digital solutions for managing various aspects of their business.</li>
</ul>
</li>
</ul>
</li>
<li><strong>e-Commerce:</strong> The share of e-commerce in total retail has been growing consistently across the world, particularly in China, the US, and in countries in the Asia Pacific region. <br />
<ul style="list-style-type: circle;">
<li>Studies suggest that the India&rsquo;s e-commerce market is expected to expand to USD 84 billion by 2021 from USD 24 billion in 2017.<br />
<ul style="list-style-type: disc;">
<li>E-commerce could provide Indian MSMEs an opportunity to attract consumers and organizations from India.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Significance of Digitization in MSMEs</h3>
<ul style="list-style-type: square;">
<li><strong>Connects MSMEs Globally:</strong> It allows for small companies and startups located even in hinterlands to get their products to the national as well as global market. <br />
<ul style="list-style-type: circle;">
<li>It provides opportunities to artisans and small sellers from Tier-2/3 towns to sell online to customers beyond their local catchment.</li>
</ul>
</li>
<li><strong>Investment and Income:</strong> E-commerce marketplaces are today the best possible enablers for this transformation at minimal cost, innovation and investment.<br />
<ul style="list-style-type: circle;">
<li>By investing in supply chains, the e-commerce sector provides opportunities for MSMEs to partner them in supply and delivery networks. <br />
<ul style="list-style-type: disc;">
<li>This leads to additional income generation through multiple livelihood opportunities and thus contributes to economic prosperity and inclusive growth.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Cost Effective:</strong> E-commerce could also become a tool for Indian MSMEs to lower operational costs, increase revenue, acquire more customers and benefit from customer advocacy. <br />
<ul style="list-style-type: circle;">
<li>The online medium could help them access a seamless global supply chain at a fraction of the proportional cost of market access and delivery, freeing up cash for growth.</li>
</ul>
</li>
</ul>
<h3>Challenges Associated</h3>
<ul style="list-style-type: square;">
<li><strong>No Threshold Exemption from GST:</strong> The businesses with an annual turnover of up to Rs 40 lakh are exempted from <a href="/to-the-points/paper3/goods-and-services-tax-gst-1" target="_blank" rel="noopener"><strong>GST</strong></a>. <br />
<ul style="list-style-type: circle;">
<li>Sellers on e-commerce marketplaces do not get advantage of <strong>GST threshold exemption</strong> for intra&ndash;state supplies that offline sellers enjoy.</li>
<li>They have to &ldquo;compulsorily register&rdquo; even though their turnover is low.</li>
</ul>
</li>
<li><strong>Physical Principal Place of Business (PPoB):</strong> In e-commerce, it is not quite practical for online sellers to have a physical PPoB. <br />
<ul style="list-style-type: circle;">
<li>It leads to increased complexities for MSMEs in registering in e-commerce marketplaces.</li>
</ul>
</li>
<li><strong>Lack of Access to Appropriate Infrastructure and Technology:</strong> Buying the latest smart devices, best internet services, retaining skilled employees to manage digital systems and maintaining physical and digital infrastructure is also an expensive affair for small, nascent companies.</li>
<li><strong>Lack of Awareness:</strong> There are still many small and medium scale enterprises who are unaware of the impact of digital transformation and fail to build customer loyalty and retention as other e-businesses.<br />
<ul style="list-style-type: circle;">
<li>Moreover, MSMEs are resistant to augment digital technologies because cutting-edge technologies evolve faster, and they sometimes may not be able to match up with that advancement.</li>
</ul>
</li>
<li><strong>Maintaining a Database:</strong> Storing, analyzing, and managing crucial structured and unstructured data to make business decisions is challenging for MSMEs.<br />
<ul style="list-style-type: circle;">
<li>Data, cloud, and system management along with the training required to handle them, leave MSMEs uncertain.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Dovetailing Existing Schemes with Technology:</strong> Examine the<a href="/to-the-points/paper3/micro-small-and-medium-enterprises-msme" target="_blank" rel="noopener"><strong> existing schemes and benefits for MSMEs</strong></a>, which were formulated with an offline, physical market in mind, and tweak them to include the special needs to leverage online sales channels. <br />
<ul style="list-style-type: circle;">
<li>For example, MSMEs could be given fiscal incentives to access markets and invest in digital marketing. The objective is to incentivise those who shift to the digital mode.</li>
<li>Connecting the skilling policy and programmes with the requirements of the e-commerce sector to meet future demand of the sector.</li>
</ul>
</li>
<li><strong>Increasing Exports via e-Commerce:</strong> Taking specific steps to increase exports via e-commerce. The steps may include: <br />
<ul style="list-style-type: circle;">
<li>Identifying products that have potential for the export market.</li>
<li>Connecting e-commerce with export-oriented manufacturing clusters.</li>
<li>Encouraging tie-ups with sector-specific export promotion councils.</li>
<li>Leveraging existing <a href="/daily-updates/daily-news-analysis/tripura-gets-its-first-sez" target="_blank" rel="noopener"><strong>Special Economic Zones</strong></a> to create e-commerce export zones.</li>
</ul>
</li>
<li><strong>E-Commerce and Foreign Trade Policy (FTP):</strong> The Foreign Trade Policy should identify the areas required by online sellers to succeed in global markets and include e-commerce export specific provisions in the upcoming revised policy. It may include: <br />
<ul style="list-style-type: circle;">
<li>Specific policy provisions providing incentives for e-commerce exports.</li>
<li>Enabling end to end digitization for e-commerce exports.</li>
</ul>
</li>
<li><strong>Role of Bigger Tech-Based Companies:</strong> Many technology based companies are building exclusive tools to support small and medium scale enterprises by enhancing their business proficiency and profitability. <br />
<ul style="list-style-type: circle;">
<li><strong>Google Advantage</strong> is one such initiative by Google India that facilitates MSMEs to use the growing online clientele base.</li>
<li><strong>Google My Business i</strong>s specifically developed to support startups, and MSMEs in India to succeed virtually.</li>
</ul>
</li>
<li><strong>Simplifying the PPoB Requirement:</strong> The government shall simplify the PPoB requirement especially for online sellers by making it digital and not requiring physical presence to expand their reach outside their home state. <br />
<ul style="list-style-type: circle;">
<li>Replacing physical PPoB with Place of Communication.</li>
<li>Eliminating the need for state specific physical PPoB requirement will facilitate sellers to get state-level GST with a single national place of business.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>Manufacturing by small units, cottage units and MSMEs has been a major contributor to India&rsquo;s growth story. <br />
<ul style="list-style-type: circle;">
<li>These small sectors, if effectively facilitated by digitisation, will be the game changer to accelerate economic growth, employment, income levels and enhance supply chain efficiencies.</li>
</ul>
</li>
<li>Digital proficiency for MSMEs is vital to set foot in the online market successfully. Without that, the sector can not be future ready.</li>
</ul>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #fffff7;">
<p><span style="color: #000080;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>Digital empowerment is the key differentiator for the MSMEs Sector. Discuss the challenges and opportunities associated with the digitisation of MSME sector in India. (250 Words)</p>
</td>
</tr>
</tbody>
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		'article_id' => (int) 7879,
		'category_id' => (int) 21,
		'title' => 'PLI Scheme for Telecom Sector',
		'description' => '<h3>Why in News</h3>
<p>The Union Cabinet has approved the <a href="/daily-updates/daily-news-analysis/schemes-for-electronic-manufacturing" target="_blank" rel="noopener"><strong>Production-Linked Incentive (PLI)</strong></a><strong> scheme for the telecom sector</strong> with an outlay of <strong>Rs. 12,195 crores over five years.</strong></p>
<p><a href="http://www.drishtiias.com/images/uploads/1615274773_image2.jpg" target="_blank" rel="noopener"><strong><img class="content-img" src="http://www.drishtiias.com/images/uploads/1615274773_image2.jpg" style="display: block; margin-left: auto; margin-right: auto;" caption="false" width="425" height="433" /></strong></a></p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About the PLI Scheme:</strong><br />
<ul style="list-style-type: circle;">
<li>In order to<strong> boost domestic manufacturing</strong> and<strong> cut down on import bills,</strong> the central government in <strong>March 2020</strong> introduced a scheme that aims to give companies incentives on incremental sales from <strong>products manufactured in domestic units.</strong></li>
<li>Apart from <strong>inviting foreign companies to set shop in India,</strong> the scheme also aims to encourage local companies to set up or expand existing manufacturing units.</li>
<li>The Scheme has been approved for many sectors including <strong>electronic products, IT hardware, pharmaceuticals, automobiles and components, etc.</strong></li>
</ul>
</li>
<li><strong>PLI Scheme for Telecom Sector :</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong> <br />
<ul style="list-style-type: disc;">
<li>This Scheme is <strong>for domestic manufacturing of telecom and networking products</strong> such as switches, routers, 4G/5G radio access network, wireless equipment and other internet of things (IoT) access devices.</li>
<li>It will be <strong>operational from 1<sup>st</sup> April, 2021.</strong></li>
</ul>
</li>
<li><strong>Eligibility for the Scheme:</strong><br />
<ul style="list-style-type: disc;">
<li>It is subject to <strong>achieving a minimum threshold of cumulative incremental investment and incremental sales</strong> of manufactured goods.</li>
<li>The<strong> cumulative investment can be made at one go,</strong> subject to annual cumulative threshold as prescribed for four years being met.</li>
<li><strong>2019-20 will be treated as the base year</strong> for computation of cumulative incremental sales of manufactured goods net of taxes.</li>
</ul>
</li>
<li><strong>Incentives:</strong><br />
<ul style="list-style-type: disc;">
<li>An investor who qualifies for the scheme <strong>will be incentivised up to 20 times the minimum investment threshold,</strong> enabling them to utilise their unused capacity.</li>
</ul>
</li>
<li><strong>Higher Incentives for MSMEs:</strong><br />
<ul style="list-style-type: disc;">
<li>For Micro, Small and Medium Enterprises (MSMEs), the <strong>minimum investment threshold has been kept at Rs. 10</strong> crore, while<strong> for others</strong> it is <strong>Rs. 100 crore.</strong></li>
<li>For MSMEs, a <strong>1% higher incentive</strong> is also proposed in the <strong>first three years.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Significance :</strong><br />
<ul style="list-style-type: circle;">
<li>The scheme is expected to lead to<strong> an incremental production of about Rs. 2.4 lakh crore,</strong> with <strong>exports of about Rs. 2 lakh crore</strong> over five years and bring in <strong>investments of more than Rs. 3,000 crore.</strong></li>
<li>Scheme is also likely to<strong> generate 40,000 direct</strong> and <strong>indirect employment</strong> opportunities and <strong>generate tax revenue of Rs. 17,000 crore</strong> from telecom equipment manufacturing.</li>
<li>Through this scheme, India will move towards self-reliance. Currently, <strong>India imports over 80%</strong> of its telecom and wireless networking equipment.</li>
</ul>
</li>
</ul>
<p><a href="https://indianexpress.com/article/business/cabinet-approves-pli-scheme-for-telecom-sector-worth-rs-12195-crore-7192546/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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		'article_id' => (int) 7834,
		'category_id' => (int) 21,
		'title' => 'Merchant Digitization Summit 2021',
		'description' => '<h3>Why In News</h3>
<p>Recently, the <strong>Government of India, <a href="/printpdf/india-asean-expo-and-summit" target="_blank" rel="noopener">Federation of Indian Chambers of Commerce and Industry (FICCI)</a></strong>, and UN-based<strong> Better Than Cash Alliance</strong> hosted <strong>Merchant Digitization Summit 2021: Towards Atma Nirbhar (Self Reliance) Bharat.</strong></p>
<ul style="list-style-type: square;">
<li>The Summit brought together leaders from the public and private sectors<strong> to accelerate responsible digitization of merchants in India's North-Eastern and Himalayan regions, and Aspirational districts.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Highlights of the Summit:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Empowering women merchants</strong> who play critical roles in their communities is one of the priorities to help achieve the mission of <a href="/loksabha-rajyasabha-discussions/in-depth-digital-india" target="_blank" rel="noopener"><strong>Digital India</strong></a>.</li>
<li>The <a href="/current-affairs-news-analysis-editorials/news-analysis/07-03-2019" target="_blank" rel="noopener"><strong>National Language Translation Mission</strong></a> can be used to disseminate digital payments information, privacy clauses and consent in local languages for trust and empowerment.</li>
<li>Identified opportunities to<strong> address the challenges of connectivity, access to smartphones, and digital literacy</strong> for merchants at the last mile.</li>
<li>Along with the increased focus on <a href="/daily-updates/daily-news-editorials/five-years-of-make-in-india" target="_blank" rel="noopener"><strong>&lsquo;Make in India&rsquo;</strong></a> through Atmanirbhar Bharat Scheme, responsible digitization must more strongly include rural networks such as <a href="/to-the-points/Paper2/self-help-groups-shgs" target="_blank" rel="noopener"><strong>Self Help Groups</strong></a> and community enablers.<br />
<ul style="list-style-type: disc;">
<li>This will lead to creation of the local digital ecosystems <strong>to help millions of merchants join the formal economy,</strong> access credit, and grow their business.</li>
</ul>
</li>
<li>From an average of 2-3 billion digital transactions monthly, <strong>India has set an ambitious target for 1 billion digital transactions per day.</strong>
<ul style="list-style-type: disc;">
<li><strong>Person to Merchant (P2M) digital payment transactions will scale to 10-12 billion transactions every month</strong> to contribute to India&rsquo;s digital economy.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Related Recent initiatives:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/digital-payments-index-rbi" target="_blank" rel="noopener"><strong>Digital Payments Index.</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/payments-infrastructure-development-fund" target="_blank" rel="noopener"><strong>Payments Infrastructure Development Fund (PIDF) scheme.</strong></a></li>
<li>Relaxations in<a href="/daily-updates/daily-news-analysis/merchant-discount-rate" target="_blank" rel="noopener"><strong> Merchant Discount Rate.</strong></a></li>
</ul>
</li>
<li><strong>Better Than Cash Alliance (BTCA):</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong> BTCA is a partnership of governments, companies, and international organizations that accelerates the transition from cash to responsible digital payments to help achieve the <a href="/to-the-points/paper3/sustainable-development-3" target="_blank" rel="noopener"><strong>Sustainable Development Goals.</strong></a></li>
<li><strong>Foundation:</strong> It was launched by the United Nations Capital Development Fund, the United States Agency for International Development, the Bill &amp; Melinda Gates Foundation, Citigroup, the Ford Foundation, the Omidyar Network, and Visa Inc.<br />
<ul style="list-style-type: disc;">
<li>It is based at the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/united-nations-1" target="_blank" rel="noopener"><strong>United Nations.</strong></a></li>
<li>It was <strong>created in 2012.</strong></li>
</ul>
</li>
<li><strong>Members:</strong> The Alliance has <strong>75 members</strong> which are committed to digitizing payments in order to boost efficiency, transparency, women&rsquo;s economic participation and financial inclusion, helping build economies that are digital and inclusive.<br />
<ul style="list-style-type: disc;">
<li>Members do not want to abolish physical cash but rather want to provide responsible digital payment options that are &ldquo;better than cash&rdquo;.</li>
<li><strong>India became a member of the Better Than Cash Alliance in 2015</strong> to digitize payments to achieve financial inclusion and to share success stories from<a href="/daily-updates/daily-news-analysis/national-mission-for-financial-inclusion" target="_blank" rel="noopener"><strong> Pradhan Mantri Jan Dhan Yojana</strong></a>, the world's largest financial inclusion program.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Federation of Indian Chambers of Commerce &amp; Industry (FICCI):</strong> <br />
<ul style="list-style-type: circle;">
<li>FICCI is a<strong> non-government, not-for-profit organisation established in 1927.</strong></li>
<li>It is the largest and oldest apex business organisation in India whose history is closely interwoven with India's struggle for independence, its industrialization, and its emergence as one of the most rapidly growing global economies.</li>
</ul>
</li>
</ul>
<p><a href="https://pib.gov.in/PressReleseDetail.aspx?PRID=1701968" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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		'article_id' => (int) 7650,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: Budget 2021 for Green Energy',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/n739bdyShz0" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<ul style="list-style-type: square;">
<li>The<a href="/daily-updates/daily-news-analysis/union-budget-2020-21-economy" target="_blank" rel="noopener"><strong> Union Budget for FY 2021-22</strong> </a>presented by the Union Minister of India, has exclusively focussed on <strong>Green Energy initiatives.</strong></li>
<li>Budget 2021 has proposed the launch of the <strong>Hydrogen Energy Mission</strong> in this fiscal year. <br />
<ul style="list-style-type: circle;">
<li>Additional capital infusion for solar energy and renewable energy aspects has also been proposed.</li>
</ul>
</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The reforms in the budget have particularly focussed on <strong>green-growth.</strong>
<ul style="list-style-type: circle;">
<li>The initiative is expected to enhance the uptake of cleaner fuels in India.</li>
</ul>
</li>
<li>Budget 2021-22 talks about <a href="/daily-updates/daily-news-analysis/expansion-of-production-linked-incentive-scheme" target="_blank" rel="noopener"><strong>PLI scheme</strong></a> in Solar Manufacturing, <strong>Vehicle Scrappage Policy</strong> and the <strong>Hydrogen Energy Mission.</strong>
<ul style="list-style-type: circle;">
<li>The PLI scheme has also been extended to the <strong>ACCs.</strong></li>
</ul>
</li>
<li>The emphasis on <strong>green <a href="/loksabha-rajyasabha-discussions/the-big-picture-hydrogen-fuel-cell-for-vehicles" target="_blank" rel="noopener">hydrogen</a></strong> in the budget was in line with technological development and with a long-term vision towards <strong>reduced dependency on minerals and rare-earth element</strong>-based batteries as energy storage.
<ul style="list-style-type: circle;">
<li>Hydrogen is the key clean fuel for the future.</li>
</ul>
</li>
<li>For the first time there is<strong> private financing of ₹18,000 crore for 20,000 buses</strong> and innovative financing with <a href="/to-the-points/paper3/ppp-investment-model#:~:text=Public%2DPrivate%20Partnership%20Model%3A%20PPP,be%20completed%20with%20private%20funding" target="_blank" rel="noopener"><strong>Public Private Partnerships</strong> </a>which would revolutionise the way public transport systems and buses function in India.
<ul style="list-style-type: circle;">
<li>The initiative is to promote<strong> less dependency on personal vehicles</strong> and eventually <strong>bring down the carbon footprints.</strong></li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Hydrogen Energy Mission</strong></p>
<ul style="list-style-type: square;">
<li>The National Hydrogen Energy Mission <strong>aims to reduce petroleum use, greenhouse gas emissions, and air pollution,</strong> and contribute to more diverse and <strong>efficient energy infrastructure.</strong></li>
<li>It is now proposed to launch a Hydrogen Energy Mission in 2021-22 for generating <strong>hydrogen from green power sources.</strong></li>
<li>Green Hydrogen Mission is not only<strong> essential to decarbonise heavy industries</strong> like steel and cement, it also <strong>holds the key to clean electric mobility</strong> that doesn&rsquo;t depend on rare minerals.</li>
</ul>
<p><strong>Vehicle Scrappage Policy</strong></p>
<ul style="list-style-type: square;">
<li>The policy will be launched to <strong>phase out old and unfit vehicles.</strong>
<ul style="list-style-type: circle;">
<li>Under the scheme <strong>private vehicles older than 20 years and commercial vehicles older than 15 years</strong> will be eligible to be scrapped.</li>
</ul>
</li>
<li>This will help in<strong> encouraging fuel efficient, environment friendly vehicles</strong> thereby reducing vehicular pollution and oil import bill.
<ul style="list-style-type: circle;">
<li>Vehicles would undergo<strong> fitness tests in automated fitness centres</strong> after their defined period is over.</li>
</ul>
</li>
</ul>
</div>
<h3>Green Energy and Government</h3>
<ul style="list-style-type: square;">
<li><strong>India in leading countries:</strong> India comes in the list of the leading countries in terms of the <a href="/daily-updates/daily-news-editorials/power-sector-in-india" target="_blank" rel="noopener"><strong>Power Sector</strong> </a>or the <a href="/loksabha-rajyasabha-discussions/the-big-picture-india-s-renewable-energy-plan#:~:text=The%20renewable%20energy%20capacity%20in,year%20as%20we%20move%20forward" target="_blank" rel="noopener"><strong>Renewable Energy</strong></a> sector.
<ul style="list-style-type: circle;">
<li>India ranks at the<strong> fifth position among the countries of the world</strong> when it comes to the size of its <strong>energy economy.</strong></li>
<li>India is the <strong>fourth largest solar installed capacity country</strong> in the world and<strong> third largest renewable energy installed capacity</strong> country in the world.</li>
</ul>
</li>
<li><strong>Solar energy:</strong> The <a href="/daily-updates/daily-news-analysis/india-may-miss-100-gw-solar-power-target-by-2022-crisil-report#:~:text=Jawaharlal%20Nehru%20National%20Solar%20Mission,of%2020%2C000%20MW%20by%202022.&amp;text=The%20target%20will%20principally%20comprise,Grid%20Connected%20Solar%20Power%20Projects" target="_blank" rel="noopener"><strong>Jawaharlal Nehru National Solar Mission (JNNSM)</strong> </a>aimed to achieve<strong> 20 GW</strong> solar capacity by the year <strong>2022.</strong>
<ul style="list-style-type: circle;">
<li>However, the target was increased from <strong>20 GW to 100 GW by 2022</strong> in the 2015 Union Budget of India.</li>
<li>India&rsquo;s total solar power capacity alone has increased by more than 11 times since 2014 to June 2020, from <strong>2.6 GigaWatts (GW) to 38 GW.</strong></li>
<li>To encourage domestic production, the duties on <strong>solar inverters</strong> have been increased from <strong>5% to 20%,</strong> and on<strong> solar lanterns</strong> from<strong> 5% to 15%.</strong></li>
</ul>
</li>
<li><strong>Renewable energy:</strong> The Government of India had set a target of <strong>175 GW</strong> renewable power installed capacity by the end of 2022.
<ul style="list-style-type: circle;">
<li>This includes <strong>60 GW from wind power, 100 GW from solar power, 10 GW from biomass power</strong> and<strong> 5 GW from small hydro power.</strong>
<ul style="list-style-type: disc;">
<li>The renewable energy capacity in India is <strong>currently 136 Giga Watts,</strong> which is about <strong>36%</strong> of its total energy capacity.</li>
</ul>
</li>
<li>The <strong>2030 renewable targets</strong> were announced to be<strong> 450 gigawatt.</strong></li>
</ul>
</li>
<li><strong>Green energy and infrastructure development:</strong> The budget primarily focuses on spending on infrastructure development and no infrastructure project can be completed without energy involved in it
<ul style="list-style-type: circle;">
<li>However, in the present context, the energy involved has to be<strong> clean energy.</strong></li>
<li>The solar energy at present is<strong> available at 2 rs/unit</strong> which is even cheaper than the energy generated from a new coal power plant.</li>
<li>The domestic manufacturing capacity has been enhanced by the PLI schemes for manufacturing solar panels.
<ul style="list-style-type: disc;">
<li>Through the 2021-22 budget, the PLI scheme has been extended to the 10 sectors including <strong>automobile, pharma,</strong> electronic/<strong>technology</strong> products and manufacturing of <strong>advanced chemical cells battery</strong> (for electric vehicles).</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Advanced Chemistry Cells (ACCs)</strong></p>
<ul style="list-style-type: square;">
<li>ACCs are the new generation advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.</li>
</ul>
</div>
<h3>Green Hydrogen</h3>
<ul style="list-style-type: square;">
<li>The Hydrogen Energy Mission is one of the biggest announcements in the union budget 2021-22, specifying the<strong> hydrogen as green hydrogen.</strong>
<ul style="list-style-type: circle;">
<li>When hydrogen is extracted from water using electrolysis powered by renewable energy, it is called green hydrogen.</li>
</ul>
</li>
<li>Green hydrogen energy is vital for India to meet its <a href="/current-affairs-news-analysis-editorials/news-editorials/11-07-2019" target="_blank" rel="noopener"><strong>Nationally Determined Contribution (INDC) Targets</strong> </a>and ensure regional and national energy security, access and availability.</li>
<li>Currently, about<strong> 6 tonnes of hydrogen is produced</strong> in the country which will go up by <strong>5 times in 2050.</strong></li>
</ul>
<p><strong>Why Green Hydrogen?</strong></p>
<ul style="list-style-type: square;">
<li>Hydrogen can act as an<strong> energy storage option,</strong> which would be essential to meet intermittencies (of renewable energy) in the future.</li>
<li>In terms of mobility, for long distance mobilisations for either urban freight movement within cities and states or for passengers, it is a very promising initiative.
<ul style="list-style-type: circle;">
<li>Hydrogen can be used in railways, large ships, buses or trucks where electric-vehicles have a limitation for not having enough capacity for long distance travels.</li>
</ul>
</li>
<li>Hydrogen has the potential to be the key renewable target in supporting infrastructure as well.</li>
<li>Hydrogen can be used:
<ul style="list-style-type: circle;">
<li>As a carrier</li>
<li>As a fuel cum energy storage alternative for petrol and diesel</li>
<li>Directly as a <strong><a href="/daily-updates/daily-news-analysis/clean-fuel-hydrogen" target="_blank" rel="noopener">fuel</a></strong></li>
</ul>
</li>
<li>Countries across the world such as <strong>Japan</strong> are banging on hydrogen as a future energy media.
<ul style="list-style-type: circle;">
<li><strong>Germany</strong> and many other <strong>EU countries</strong> have already set an<strong> ambitious green hydrogen policy.</strong></li>
<li>Even countries like<strong> UAE</strong> and <strong>Australia</strong> that are traditionally considered as the laggards of climate action have moved towards green hydrogen.</li>
</ul>
</li>
</ul>
<h3>Challenges Associated</h3>
<ul style="list-style-type: square;">
<li>In terms of challenges the <strong>cost of renewable electricity from</strong> hydrogen specifically, is the major problem. Public investments need to strategize and channel well.
<ul style="list-style-type: circle;">
<li>Moreover, currently hydrogen is around <strong>$6- $8/kg</strong> which is a price too high to bring it into conventional use.</li>
</ul>
</li>
<li>The other main hurdle is <strong>transporting hydrogen</strong> to long distances.
<ul style="list-style-type: circle;">
<li>Hydrogen in gaseous form is highly inflammable.</li>
<li>To ship liquid hydrogen, it needs to be chilled to -253&deg;C.</li>
</ul>
</li>
<li>Compared to other gases (or fuels),<strong> hydrogen lacks smell,</strong> which makes any<strong> leak detection almost impossible</strong> thus increasing the potential dangers.</li>
<li>To succeed as a renewable energy based economy, it is <strong>not just the manufacturing sector</strong> where India would want to excel but the<strong> entire supply chain.</strong>
<ul style="list-style-type: circle;">
<li>Currently, India is at about <strong>2-3 gw of solar photovoltaic</strong> module manufacturing capacity.</li>
<li>For the given 450 gw renewable targets for 2030, India needs <strong>30-40 gw of capacity addition</strong> of renewables per year which requires having:
<ul style="list-style-type: disc;">
<li>Maximum domestic manufacturing capability</li>
<li>Increasing the custom duty on solar panels as it will incentivise domestic players in india to set up manufacturing of solar panels and making the entire supply chain robust.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Pilot initiatives:</strong> India needs a strategy in place to launch such a big mission, such as a <strong>few pilot initiatives.</strong>
<ul style="list-style-type: circle;">
<li>Hydrogen is one of the alternative sources of energy that India really needs to consider from its energy security perspective and transportation or mobilisation.</li>
</ul>
</li>
<li><strong>Efforts at all levels:</strong> The budget perspective presses that a lot more needs to be done <strong>not only at center but at state level too.</strong>
<ul style="list-style-type: circle;">
<li>More than 11 states in India now have rolled out their own electric mobility plans and are focussing not only at manufacturing or job but also in <strong>demand creation.</strong></li>
</ul>
</li>
<li><strong>Exploring &ldquo;All&rdquo;ternatives:</strong> Not sticking to just one alternate resource but exploring other sources too.
<ul style="list-style-type: circle;">
<li>For either intra or inter-city movements, different technologies can co-exist and can give different contributions.</li>
<li>1 kg of hydrogen can work about 100 km but roughly it would take 7-8 litres of petrol for the same distance.</li>
</ul>
</li>
<li><strong>Incentivising the concept of green and clean energy: Green labelling of products</strong> needs to be in place so that consumers are aware that what they are consuming is environment friendly.
<ul style="list-style-type: circle;">
<li>In order to push them into using green energy, they must be<strong> made aware of the benefits</strong> of the energy they are consuming. Also, there can be<strong> extensive marketing and awareness campaigns.</strong></li>
</ul>
</li>
<li><strong>Capacity building:</strong> It should not only be about awareness but also about building the capacity of the industries so that we have manufacturing in place and eventually more job opportunities.
<ul style="list-style-type: circle;">
<li>Planning a road map where we generate employment while setting up green energy infrastructure and reducing carbon emission.</li>
</ul>
</li>
<li><strong>Exclusive expenditure on R&amp;D:</strong> There should be a good spending on R&amp;D and technology adoption in hydrogen energy and e-Vehicles because that is one area where India had a setback in Solar Photovoltaics.
<ul style="list-style-type: circle;">
<li>More capital infusion in R&amp;D and infrastructure is needed to reap the benefits of various geographical locations in terms of solar energy and an emerging untapped option of hydrogen energy to replace conventional energy.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>Moving towards Green Energy is indeed a win-win situation; it will lead to not only the usage of cleaner energy for a cleaner environment but also it will boost various sectors of manufacturing and employment.</li>
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		'article_id' => (int) 7434,
		'category_id' => (int) 15,
		'title' => 'The Big Picture : One Nation, One Gas Grid',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/wvy_6E2YisY" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<ul style="list-style-type: square;">
<li>The Prime Minister of India has recently inaugurated the 450-km natural gas pipeline between Kochi in Kerala to Mangalore in Karnataka.</li>
<li>The government has set the energy roadmap, envisaging more than double the share of cleaner natural gas in the consumption basket, diversifying sources of energy, connecting the nation with one gas pipeline grid and bringing affordable fuel to people and industry.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>A gas-based economy is crucial for an Atmanirbhar Bharat and work is being done in the direction of <strong>'One Nation, One Gas Grid'.</strong></li>
<li>The pipeline grid is expected to not only help improve clean energy access, but also aid in the development of city gas projects.</li>
<li>The government is also considering the proposal of bringing natural gas under the ambit of <a href="/to-the-points/paper3/goods-and-services-tax-gst-1" target="_blank" rel="noopener"><strong>Good and Services Tax.</strong></a></li>
</ul>
<h3>One Nation, One Gas Grid</h3>
<ul style="list-style-type: square;">
<li>The Indian Power system for planning and operational purposes is divided into five regional grids.
<ul style="list-style-type: circle;">
<li>One Nation, One Gas Grid refers to the integration of these regional grids thus establishing a National Grid for providing energy produced by natural gas to various stakeholders like the central government, the state governments, the public and the private sectors.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1610439260_image1.jpg" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1610439260_image1.jpg" style="display: block; margin-left: auto; margin-right: auto;" width="600" caption="false" /></a></p>
<p><strong>Objective and Need of One Nation &amp; One Gas Grid</strong></p>
<ul style="list-style-type: square;">
<li><strong>Meeting the targets:</strong> The initiative of the Indian government will help meet its target of reaching 15% natural gas in its energy basket mix by 2030 which is currently at 6.2-6.5% whereas the global average is 23-24%.</li>
<li><strong>Connecting the nation:</strong> With one nation and one gas grid, the energy produced from natural gas will be supplied to the whole country via a single source.</li>
<li><strong>Improving regional imbalance:</strong> It will help in improving the regional imbalance of gas availability as currently the natural gas is only in limited pockets of the country.</li>
<li><strong>India as a gas based economy:</strong> One nation, one gas grid which will help emerge India as a gas based economy.
<ul style="list-style-type: circle;">
<li>It will not only lead to robust development in the economy but also encourage a clean environment.</li>
</ul>
</li>
<li><strong>Cleaner environment:</strong> In times when conventionalsSources are depleting and mining is being extended to a greater depth and area, natural gas can prove to be a boon by preventing deforestation and desertification.</li>
<li><strong>Reduce import dependency:</strong> The import dependency of natural gas in India has reached to 53%. In order to reduce this high percentage, the government is taking measures to diversify the energy mix of India.</li>
</ul>
<p><strong>India&rsquo;s Targets</strong></p>
<ul style="list-style-type: square;">
<li>To increase the share of natural gas, the government has announced the expansion of the natural gas grid from the previous 17,500 kilometers to 34,500 kilometers. To which, 450 kms have already been added making it approx 18000.
<ul style="list-style-type: circle;">
<li>The next 16000 kms is expected to be achieved in the next 4-6 years.</li>
</ul>
</li>
<li>Primarily, as a grid, the north and west part of India were already connected via LNG terminal.
<ul style="list-style-type: circle;">
<li>In the last 4 years, efforts have also been made to connect eastern India with North via the Jagdishpur-Haldia-Bokaro-Dhamra Pipeline which is a <a href="/loksabha-rajyasabha-discussions/the-big-picture-gas-grid-fuel-for-all" target="_blank" rel="noopener"><strong>PM Urja Ganga Project</strong></a> which is in its final stages and will also add around 3000 kms to the grid.</li>
</ul>
</li>
<li>The southern part of India is also being looked upon and is expected to add about 1500 kms to the grid.</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Encouraging investments:</strong> Investing in natural gas should be more encouraged. The share can be divided as : 20% for smaller manufacturing brands whereas for the government and bigger companies it should be 80%.
<ul style="list-style-type: circle;">
<li>It is important because investing in natural gas means investing in:
<ul style="list-style-type: disc;">
<li>Cleaner environment</li>
<li>Better health for our people</li>
<li>Creating more jobs and a better economy for our people.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Educating about natural gas:</strong> One area where we all should work is in educating people about the natural gas economy because at present the lack of knowledge about natural gas based economy is widely persistent.</li>
<li><strong>Empowering the vehicles:</strong> Empowered vehicles are needed to reach the destination of One Nation, One Gas Grid. Vehicles such as GAIL, <a href="/loksabha-rajyasabha-discussions/the-big-picture-natural-gas-economy" target="_blank" rel="noopener"><strong>ONGC</strong></a> etc need to be strengthened and empowered to eradicate natural gas energy poverty.
<ul style="list-style-type: circle;">
<li>It is important to give more importance to companies like ONGC when it comes to upstream for gas and GAIL India when it comes to midstream production and gas distribution, and to companies like Oil India when it comes to oil distribution.
<ul style="list-style-type: disc;">
<li>We need more LNG terminals for more upstream production of gas.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Marketing and pricing reforms:</strong> To increase domestic exploration, investment and production of natural gas, <a href="/daily-updates/daily-news-editorials/natural-gas-marketing-reforms" target="_blank" rel="noopener"><strong>Marketing and Pricing Reforms</strong></a> are the one step that the Government of India has taken in a couple of months.</li>
<li><strong>Natural gas democracy:</strong> Like no citizen of a country should be kept out of democracy, similarly no one should be left out of the benefits of natural gas, it should reach each and every household.</li>
<li><strong>Collaborative effort:</strong> It is not enough that only the central government takes initiatives in the direction, various state govts should also come on board or even a public sector is also as important when it comes to contributing their share in the notion of One Nation, One Gas Grid.</li>
</ul>
<h3>Conclusion</h3>
<p>Tremendous efforts are on the way to achieve clean affordable and sustainable energy but going forward there will be infrastructure related and many other possible challenges that must be tackled in order to end energy poverty in the times to come, ensuring energy security for the citizens as well.</p>',
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		'article_id' => (int) 7158,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: India’s Renewable Energy Plan',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/JDZBY4K2kKY" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<p>Recently, the Prime Minister of India has announced about having huge renewable energy deployment plans for India for the next decade which are likely to generate business prospects of around $20 billion per year.</p>
<ul style="list-style-type: square;">
<li>Post the inauguration of the <strong>3<sup>rd</sup> Global Renewable Energy Investment Meeting and Expo (RE-Invest 2020),</strong> the PM addressed and invited the investors, developers and businesses to join India's renewable energy journey.</li>
<li>After the success of <a href="/daily-updates/daily-news-analysis/schemes-for-electronic-manufacturing" target="_blank" rel="noopener"><strong>Performance Linked Incentives (PLI)</strong></a> in electronics manufacturing, the government has decided to give similar incentives to high efficiency solar modules.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>Dedicated <strong>Project Development Cells</strong> have been established to facilitate investors ensuring<a href="/daily-updates/daily-news-analysis/ease-of-doing-business-2020" target="_blank" rel="noopener"><strong> 'Ease of Doing Business'.</strong> </a></li>
<li>India's renewable power capacity is the<strong> fourth largest in the world</strong> and is growing at the fastest speed among all major countries.<br />
<ul style="list-style-type: circle;">
<li>India is a big market and a lot of countries are attracted towards it in terms of One Sun, One World, One Grid and <a href="/to-the-points/Paper2/year-end-review-2019-ministry-of-new-and-renewable-energy" target="_blank" rel="noopener"><strong>International Solar Alliance.</strong></a></li>
</ul>
</li>
<li>The renewable energy capacity in India is currently <strong>136 Giga Watts,</strong> which is about <strong>36% of its total capacity.</strong><br />
<ul style="list-style-type: circle;">
<li>Target for capacity increase is 450GW by 2030, increasing 25GW every year as we move forward.</li>
</ul>
</li>
<li>Per capita consumption of energy in India is quite low as compared globally.</li>
<li>Power sector, being primarily dependent on fossil fuels, is one of prime sources of air pollution.</li>
</ul>
<p><strong>Why Renewable Energy</strong></p>
<ul style="list-style-type: square;">
<li><strong>Sustainable:</strong> Energy generated from renewable sources will be cleaner and greener and more sustainable.</li>
<li><strong>Employment opportunities:</strong> Inclusion of a newer technology simply means more employment opportunities for the working population of the country.</li>
<li><strong>Market assurance:</strong> From the economy point of view, renewable sources provide the market and revenue assurance which no other resources can provide.</li>
<li><strong>Power supply:</strong> Providing 24*7 power supply to 100% of the households, sustainable form of transports are some of the goals that can only be achieved through sustainable power that comes from renewables.</li>
</ul>
<p><strong>Initiatives Taken</strong></p>
<ul style="list-style-type: square;">
<li><strong>PLI Scheme:</strong> The <a href="/daily-updates/daily-news-analysis/schemes-for-electronic-manufacturing" target="_blank" rel="noopener"><strong>Production Linked Incentive Scheme (PLI)</strong></a> scheme is an excellent initiative of the Government of India with respect to enhancing the manufacturing sector. <br />
<ul style="list-style-type: circle;">
<li>The scheme proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductor packaging.</li>
</ul>
</li>
<li><strong>Pradhan Mantri- Kisan Urja Suraksha evam Utthaan Mahabhiyan: <a href="/daily-updates/daily-news-analysis/new-website-of-ministry-of-new-and-renewable-energy#:~:text=KUSUM%20Scheme,-KUSUM%20stands%20for&amp;text=It's%20objective%20is%20to%20provide,plants%20in%20the%20rural%20areas" target="_blank" rel="noopener">PM- KUSUM</a></strong> aims to provide financial and water security to farmers through harnessing solar energy capacities of 25,750 MW by 2022.<br />
<ul style="list-style-type: circle;">
<li>Solarisation of water pumps is a step in distributed power providing at the doorstep of the consumer.</li>
</ul>
</li>
<li>The Ministry of New and Renewable Energy on its website also hosts <strong>Akshay Urja Portal </strong>and<strong> India Renewable Idea Exchange (IRIX) Portal.</strong><br />
<ul style="list-style-type: circle;">
<li>IRIX is a platform that promotes the exchange of ideas among energy conscious Indians and the Global community.</li>
</ul>
</li>
</ul>
<h3>India&rsquo;s Key Focus for Next Five Years</h3>
<ul style="list-style-type: square;">
<li><strong>The Twin Challenge:</strong> India has a twin challenge of providing more energy as well as cleaner energy to the masses in India.<br />
<ul style="list-style-type: circle;">
<li>It should focus on getting into the manufacturing of the solar panels under the <a href="/daily-updates/daily-news-analysis/atmanirbhar-bharat-and-economic-stimulus" target="_blank" rel="noopener"><strong>Atma Nirbhar Bharat</strong></a> initiative as the demand is to create jobs as well as supply decentralised energy to all the households in India.</li>
<li>Look and develop the entire supply chain of all the components beside the manufacturing sector.</li>
</ul>
</li>
<li><strong>Methanol and Biomass:</strong> Looking for other alternatives such as methanol based economy and biomass.<br />
<ul style="list-style-type: circle;">
<li>Bio-CNG vehicles with 20% blending in petrol is also a target the government has been chasing.</li>
<li>Conversion of energy from <a href="/summary-of-important-reports/action-plan-for-biomass-management" target="_blank" rel="noopener"><strong>Biomass</strong></a> is a considerable option as it will clean the cities as well as reduce our energy dependence. <br />
<ul style="list-style-type: disc;">
<li>Fuels produced from biomass have a high calorific value and are cleaner than traditional biomass.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Hydrogen based FCV:</strong> Hydrogen in technology is likely to change the landscape of renewables, shifting towards <a href="/loksabha-rajyasabha-discussions/the-big-picture-hydrogen-fuel-cell-for-vehicles#:~:text=Hydrogen%20in%20Fuel%20Cell%20Electric,electricity%20from%20only%20a%20battery.&amp;text=The%20amount%20of%20energy%20stored,of%20the%20hydrogen%20fuel%20tank" target="_blank" rel="noopener"><strong>Hydrogen Based Fuel Cells Vehicles</strong> </a>(FCV) is another area of focus.</li>
<li><strong>Grid Integration:</strong> It is the practice of developing efficient ways to deliver variable renewable energy (RE) to the grid.<br />
<ul style="list-style-type: circle;">
<li>Identifying the demands which are in tune with the characteristics of the renewables, focussing on characteristics of renewables mainly solar and wind and considering their variability as strength rather than weakness.</li>
</ul>
</li>
</ul>
<h3>Challenges with Renewable Energy</h3>
<ul style="list-style-type: square;">
<li><strong>Integration with the Main Grid:</strong> Integrating the renewables with the main grid is the area India needs to work upon.<br />
<ul style="list-style-type: circle;">
<li>To accelerate the uptake of renewables, storage and battery solutions is needed in large quantities.</li>
</ul>
</li>
<li><strong>Cost factor:</strong> Renewable resources are slightly more expensive than conventional sources.</li>
<li><strong>24*7 Power Supply:</strong> Sustainable, round-the-clock power supply along with the storage system is a big challenge ahead.</li>
<li><strong>Agricultural Sector:</strong> Much power is consumed in the agricultural sector. The challenge is to provide sufficient power and energy to every household and to the agricultural sector as well.</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Identification of areas:</strong> Renewable resources specially wind cannot be set up everywhere, they require specific location. <br />
<ul style="list-style-type: circle;">
<li>Identification of these specific locations, integrating them with the main grid and distribution of powers; A combination of these three is what will take India forward.</li>
</ul>
</li>
<li><strong>Exploration:</strong> More storage solutions need to be explored.</li>
<li><strong>Agriculture subsidy:</strong> Agricultural subsidy should be rectified in order to ensure that only the required amount of energy is consumed.</li>
<li><strong>Hydrogen fuel cell based vehicles and Electric vehicles:</strong> These are the most suitable options when it comes to shifting towards renewable sources of energy, that&rsquo;s where we need to work upon.</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>A well planned road map is needed, for which <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/niti-aayog-national-institution-for-transforming-india" target="_blank" rel="noopener"><strong>NITI Aayog</strong></a> is coming up with Energy Vision 2035 to achieve India's clean energy goals.</li>
<li>Diversified energy mix is what India needs to focus on, no doubt solar and wind have a lot of potential, Hydrogen would be a game changer in Indian energy transition space.<br />
<ul style="list-style-type: circle;">
<li>Renewable sources of energy are expected to replace fossil fuels by 2050.</li>
</ul>
</li>
<li>India should be working on areas like investment in infrastructure, capacity building and better integration in the near and immediate future.</li>
</ul>',
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	(int) 10 => object(Cake\ORM\Entity) {

		'article_id' => (int) 7066,
		'category_id' => (int) 15,
		'title' => 'The Big Picture : Draft Spacecom Policy and India's Space Sector',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/kNVkFhrs_yY" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News?</h3>
<p>The Union government has permitted for the reforms in the space sector by allowing private players' participation, the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/indian-space-research-organisation-isro" target="_blank" rel="noopener"><strong>Indian Space Research Organisation (ISRO)</strong></a> has released the draft of a new <strong>Spacecom Policy 2020.</strong></p>
<ul style="list-style-type: square;">
<li>The policy will regulate the commercial use of satellites, orbital slots, and ground stations for communication needs. The policy also details how private players can get authorization for setting up new communication satellites and ground stations.</li>
<li>The private players in the space communication sector will also enable India to keep pace with the growing demand for satellite-based broadcasting, network connectivity, and global mobile personal communication.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The space policy has been drafted in the form of spacecom for reforming the Indian space sector.</li>
<li>The policy will regulate the commercial use of satellites, orbital slots, and ground stations for communication needs.</li>
<li>The private players in the space communication sector will enable India to keep pace with the growing demand for satellite-based broadcasting, network connectivity, and global mobile personal communication.</li>
<li>The government wants private players to participate in the space sector not as a vendor but as a partner.</li>
</ul>
<h3>The Policy</h3>
<ul style="list-style-type: square;">
<li>The <strong>Spacecom Policy - 2020</strong> enables the activities of space based communications under five major statements.</li>
<li>Spacecom Policy-2020 states that the Government of India shall:<br />
<ul style="list-style-type: circle;">
<li>Adopt measures to <strong>monitor and authorize use of space assets</strong> for communication to or from Indian territory.</li>
<li><strong>Ensure protection of space assets</strong> already put in place and adopt measures to bring in more space assets under the administrative control for enhancing ability to utilize space based communication for national needs.</li>
<li>Promote increased <strong>participation of commercial Indian industry</strong> to provide space based communications both within the country and outside.</li>
<li>Concentrate on <strong>realization of space based communication systems</strong> for addressing the requirements that <strong>cannot be effectively, affordably and reliably satisfied by the commercial Indian industry</strong> either because of national security concerns or economic factors.</li>
<li><strong>Provide a timely and responsive regulatory environment</strong> for the commercial Indian industry to establish and operate space based communication systems.</li>
</ul>
</li>
</ul>
<p><strong>The Salient Features</strong></p>
<ul style="list-style-type: square;">
<li><strong>Governs industries:</strong> The policy will govern the commercial use of orbital slots, satellites, and ground stations used for communication.</li>
<li><strong>Facilitating the private companies:</strong> The policy has been framed to help the private players do the job in the most efficient manner with ease.<br />
<ul style="list-style-type: circle;">
<li>It will also boost the actions of private players in doing business in the space communication sector, in India as well as doing business outside India.</li>
</ul>
</li>
<li><strong>Allowance to only Indian entities:</strong> Only Indian entities will be allowed to seek authorization for orbital slots for new satellites, services based on existing satellites and setting up new ground stations.<br />
<ul style="list-style-type: circle;">
<li>There are no restrictions in terms of satellite owning, ground session setup and providing services to the common people.</li>
</ul>
</li>
<li><strong>Owning satellites and responsibilities:</strong> Private industries are allowed to use the ISRO satellites and they can also have their own satellites as well.<br />
<ul style="list-style-type: circle;">
<li>The policy also says that any company sending a communication satellite in space will also be responsible for any damages to other objects in space and the environment.</li>
</ul>
</li>
<li><strong>India and the global spacecom sector:</strong> The new policy will enable India to meet the growing demand for satellite-based broadcasting, network connectivity, and global mobile personal communication, and will help India attain a significant position in the global space communication sector.</li>
</ul>
<p><strong>Why Private Companies in the Space Sector?</strong></p>
<ul style="list-style-type: square;">
<li>ISRO is over burdened by its regular operations such as launch of satellites, construction of launching vehicles etc which are becoming hurdles in ISRO's way for working in new projects. Hence, ISRO wants these regular operations to be conducted by private players.</li>
<li><strong>Role of Private Players:</strong> The Private players can participate in setting up of ground stations for space crafts which constitute 48% of the space sector budget and also in application of space technology which result in 45% of space economy.</li>
</ul>
<h3>ISRO and its Projects</h3>
<ul style="list-style-type: square;">
<li><a href="/daily-updates/daily-news-analysis/gaganyaan-6" target="_blank" rel="noopener"><strong>Gaganyaan</strong></a>: Sending humans in space and bringing them safely back to earth.</li>
<li><a href="/daily-updates/daily-news-analysis/chandrayaan-3-and-gaganyaan" target="_blank" rel="noopener"><strong>Chandrayaan 3</strong></a>: To land safely on the moon, Chandrayaan-3 is likely to be launched in early 2021.</li>
<li><strong>Propulsion system in the satellite</strong>: ISRO is working on launching vehicles with "Electric Propulsion System" so that large satellites can be sent into space by the agency.</li>
<li><strong>Heavy lift launcher</strong>: ISRO is conducting preliminary research for the development of a super heavy- lift launch vehicle which is planned to have a lifting capacity of over 50-60 tonnes Geosynchronous Transfer Orbit (GTO).</li>
</ul>
<p><strong>Coordination with Other Space Agencies</strong></p>
<ul style="list-style-type: square;">
<li><strong><a href="/important-institutions/drishti-specials-important-institutions-international-institution/national-aeronautics-and-space-administration-nasa" target="_blank" rel="noopener">NASA</a>-ISRO Synthetic Aperture Radar Mission (NISAR)</strong>: NASA's first global Search And Rescue (SAR) mission, in partnership with ISRO, providing data for studying hazards, changes in glaciers and ice sheets, and global environmental.</li>
<li><strong>TRISHNA</strong>: ISRO, and the French space agency <strong>CNES</strong> have partnered in developing advanced upgradation satellites like TRISHNA to monitor the water cycle to help in finding out proper ways to utilize it.</li>
<li><strong>Gaganyaan project</strong>: The four Indian astronauts training in Russia for the Gaganyaan project &ndash; India&rsquo;s first manned space mission.</li>
<li><strong>Lunar Polar Exploration Mission (LUPEX)</strong>: Collaboration between ISRO and Japan Aerospace Exploration Agency (JAXA) to have a combined mission, to send a lunar rover and lander to explore the south pole region of the Moon in 2024.</li>
<li><strong>Duchifat 3</strong>: Last year, a small remote sensing satellite weighing 2.3 kilogram, built by students in Israel, was part of the nine commercial satellites launched by ISRO along with its own earth observation satellite.</li>
</ul>
<h3>Challenges</h3>
<ul style="list-style-type: square;">
<li>The major concern is to make sure that this high precedent technology should not go in the wrong hand.</li>
<li>The rules regarding use of images taken by a spacecraft for domestic purposes and for other purposes are very stringent and there is need to have very flexible rules for the private people to do the job, at the same time making sure that it is not used in a wrong way.</li>
<li>ISRO is not fully self-sufficient in its launch vehicle. For bigger satellite launches, ISRO is still dependent on foreign countries.</li>
<li>The novel coronavirus pandemic has affected ISRO programs, due to which many programs of ISRO have been delayed including the launch of Chandrayaan-3.</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Preventing the misuse of technologies:</strong> The government should make laws regarding the operation of private players in both the commercial as well as the strategic part of the space sector, so that technology can't be misused.</li>
<li><strong>Encouraging the young talent:</strong> Ensuring more opportunities for the youngsters to study science and take part in the space sector. <br />
<ul style="list-style-type: circle;">
<li>Their enthusiasm and talent should be used in an effective and holistic manner.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>With the new Spacecom Policy 2020, Private players are not only going to serve the country but they are also going to have a big share from the International market.</li>
<li>It is important for all the stakeholders to take India as a technical powerhouse at the global level so that very soon India can lead the global community in the technological area.</li>
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	(int) 11 => object(Cake\ORM\Entity) {

		'article_id' => (int) 6987,
		'category_id' => (int) 21,
		'title' => 'Gujarat Maritime Cluster',
		'description' => '<h3>Why in News</h3>
<p>The <strong>Gujarat Maritime Cluster</strong> is coming up in the <strong>GIFT (Gujarat International Finance Tec-City)</strong> City at Gandhinagar to address logistics of ports and seaways.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Maritime Cluster:<a href="http://www.drishtiias.com/images/uploads/1605254136_image3.jpg" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1605254136_image3.jpg" style="float: right;" width="400" caption="false" /></a></strong><br />
<ul style="list-style-type: circle;">
<li>It is conceived as a <strong>dedicated ecosystem</strong> of Ports, Maritime Shipping and Logistics services providers.</li>
<li>It will host an array of maritime, shipping industry players and service providers, along with relevant Government regulatory agencies, in <a href="/daily-updates/daily-news-analysis/international-financial-services-centres-authority-1" target="_blank" rel="noopener"><strong>Gujarat International Finance Tec-City</strong></a> (GIFT City), <strong>Gandhinagar &ndash;</strong> India&rsquo;s first International Financial Services Centre.</li>
<li>The <strong>Gujarat Maritime Board</strong> (GMB), has been trying to develop such a cluster through its subsidiary <strong>Gujarat Ports Infrastructure and Development Company Ltd (GPIDCL).</strong></li>
<li>While the project was conceptualised back in 2007, it received in-principle approval from the state government in 2015.</li>
</ul>
</li>
<li><strong>Benefits of the project:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Attract Maritime Investments:</strong><br />
<ul style="list-style-type: disc;">
<li>The project will try to <strong>bring back businesses</strong> that have <strong>migrated over the years</strong> to foreign locations due to the absence of the right ecosystem in the country.</li>
<li>Large corporates like the <strong>Aditya Birla Group</strong> and <strong>Tata Group</strong> tap clusters in Dubai and Singapore for their maritime needs.</li>
</ul>
</li>
<li><strong>Economies of Scale:</strong><br />
<ul style="list-style-type: disc;">
<li>Gujarat has a lot of ports and handles 40% of the country&rsquo;s cargo, but it has not targeted the<strong> entire value-chain</strong> as a result investors look abroad for the same.</li>
</ul>
</li>
<li><strong>Dispute Resolution:</strong><br />
<ul style="list-style-type: disc;">
<li>An <strong>Alternate Dispute Resolution (ADR)</strong> Centre will be set up under the aegis of the <strong>Gujarat Maritime University,</strong> which will come up at the maritime cluster. A centre such as this does not currently exist in India.</li>
<li>Will help resolve cases revolving around bunker disputes, ship sales, shipbuilding and repairs, commodities.</li>
<li>It will provide an option to Indian players seeking to avoid availing the services of <strong>international alternate dispute resolution hubs which entail huge costs, time, and travel.</strong></li>
</ul>
</li>
<li>The cluster is also expected to house the<strong> office of the Director General of Shipping.</strong></li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>The concept of maritime clusters is new to India, but these clusters have been driving some of the most competitive ports of the world like Rotterdam, Singapore, Hong Kong, Oslo, Shanghai, and London.</li>
<li>Thus India must ensure a significant<strong> footprint in global supply chains</strong> of the world with the help of such innovative Ideas.</li>
</ul>
<p><a href="https://indianexpress.com/article/explained/explained-what-is-the-unique-maritime-cluster-coming-up-at-gift-city-in-gujarat-7048302/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
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		'article_id' => (int) 6715,
		'category_id' => (int) 21,
		'title' => 'India in BRICS Ministers’ Meeting',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/daily-updates/daily-news-analysis/5th-brics-culture-ministers-meet" target="_blank" rel="noopener"><strong>BRICS</strong></a> <strong>Labour and Employment Ministers&rsquo; Virtual Meeting</strong> was held under the <strong>Russian Presidency.</strong></p>
<ul style="list-style-type: square;">
<li>It aimed to discuss various <strong>issues including approaches to creating a safe work culture in BRICS countries.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Emphasis on Health of Workers:</strong><br />
<ul style="list-style-type: circle;">
<li>It was highlighted that<strong> health, welfare and improved working conditions</strong> are essential for the well-being of the workers. A healthy workforce in the country would be more productive and contribute to economic growth.</li>
<li>The <strong>aspects of occupational safety and health measures</strong> to mitigate the impact of <a href="/daily-updates/daily-news-analysis/coronavirus-disease-named-covid-19" target="_blank" rel="noopener"><strong>Covid-19</strong></a> have also acquired significance.</li>
</ul>
</li>
<li><strong>India&rsquo;s Stand:</strong><br />
<ul style="list-style-type: circle;">
<li>India <strong>called for suitable global action</strong> especially by BRICS towards effecting a <strong>balance between labour and employer</strong> which will generate growth and create more jobs and greater labour welfare.</li>
<li>India also<strong> highlighted the importance of digitisation and technological advancements</strong> like <a href="/loksabha-rajyasabha-discussions/in-depth-artificial-intelligence" target="_blank" rel="noopener"><strong>artificial intelligence</strong> </a>(AI) and <a href="/loksabha-rajyasabha-discussions/policy-watch-robotics-and-automation-in-india" target="_blank" rel="noopener"><strong>robotics</strong></a> in reshaping lives and work, with a direct or indirect effect on the labour market.<br />
<ul style="list-style-type: disc;">
<li>Digitisation also <strong>offers the opportunity</strong> for governments, individuals and businesses<strong> to cope with the changing scenarios after the <a href="/daily-updates/daily-news-analysis/covid-19-now-pandemic-whohttps://www.drishtiias.com/daily-updates/daily-news-analysis/covid-19-now-pandemic-who" target="_blank" rel="noopener">pandemic.</a></strong></li>
</ul>
</li>
<li>India underscored that the <a href="/daily-updates/daily-news-editorials/how-to-regulate-the-digital-economy" target="_blank" rel="noopener"><strong>digital economy</strong></a> is changing the world of work, hence <strong>regular studies by the BRICS Network Research Institutes</strong> will facilitate a <strong>better understanding</strong> of the aspects of future of work and supplement policymaking.</li>
<li>India is committed to <strong>eradicate <a href="/to-the-points/Paper2/poverty-9" target="_blank" rel="noopener">poverty</a></strong> and <strong>promote prosperity</strong> in a changing world and hence adopted a multi-dimensional strategy to eliminate poverty by covering most of the basic services and fulfil the <a href="/to-the-points/paper3/sustainable-development-3" target="_blank" rel="noopener"><strong>Sustainable Development Goals</strong></a> of <strong>No Poverty</strong> (SDG-1).</li>
</ul>
</li>
</ul>
<h3>Initiatives Highlighted by India</h3>
<ul style="list-style-type: square;">
<li><a href="/daily-updates/daily-news-editorials/right-code-for-labour" target="_blank" rel="noopener"><strong>Occupational Safety, Health and Working Conditions Code Bill, 2020:</strong></a><br />
<ul style="list-style-type: circle;">
<li>Provides a dynamic and effective framework of occupational safety and health at the workplace and covers legal provisions of all sectors.</li>
<li>Envisages safety standards for different sectors, focusing on the health and working condition of workers, hours of work, leaves, etc.</li>
</ul>
</li>
<li><a href="/loksabha-rajyasabha-discussions/the-big-picture-the-labour-code-bills" target="_blank" rel="noopener"><strong>Social Security Code Bill, 2020:</strong></a><br />
<ul style="list-style-type: circle;">
<li><strong>Universalises social security coverage</strong> to those working in the unorganised sector, such as migrant workers, gig workers and platform workers.</li>
<li><strong>Recognises emerging forms of work</strong> by defining terms like an aggregator, gig worker and platform worker, and extends social protection to such workers through a <strong>separate Social Security Fund</strong> wherein the contribution from aggregators would be deposited.</li>
<li>Provisions of social security will also be<strong> extended to agricultural workers.</strong></li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-analysis/labour-reforms-1#:~:text=Social%20Security%20Code%20Bill%2C%202020,gig%20workers%20and%20platform%20workers." target="_blank" rel="noopener"><strong>Industrial Relations Code Bill, 2020:</strong></a><br />
<ul style="list-style-type: circle;">
<li>Sets up <strong>Grievance Redressal Committees</strong> for resolution of disputes arising out of employees&rsquo; grievances.</li>
<li>Also sets up a reskilling fund to help skill retrenched workers.</li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-editorials/pm-kisan" target="_blank" rel="noopener"><strong>Pradhan Mantri Kisan Samman Nidhi:</strong></a><br />
<ul style="list-style-type: circle;">
<li>Provides direct income support to farmers for easing their liquidity needs to facilitate timely access to inputs.</li>
<li>Aiding modernisation and makes farmers competitive.</li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-editorials/atma-nirbhar-bharat-abhiyan-challenges" target="_blank" rel="noopener"><strong>Atmanirbhar Bharat Abhiyaan:</strong></a><br />
<ul style="list-style-type: circle;">
<li>Protects the economy from the<strong> adverse impact of the Covid-19 crisis.</strong></li>
<li>Measures include opening a credit line for micro, small and medium enterprises to meet their operational expenses, subsidising the social security contributions of workers, extending unemployment benefit to workers, financial assistance to construction workers, collateral-free working capital loan to approximately 5 million street vendors, etc.</li>
</ul>
</li>
<li><strong>Other Related Schemes:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-editorials/mgnrega-and-migrant-crisis" target="_blank" rel="noopener"><strong>National Rural Employment Guarantee Scheme.</strong></a></li>
<li><a href="/daily-updates/daily-news-analysis/national-rural-economic-transformation-project-1" target="_blank" rel="noopener"><strong>National Livelihood Mission.</strong></a></li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<p>All countries need to work together in finding feasible and sustainable solutions to the issues and challenges faced by the future of the labour force in the digital economy so that everyone can get the flexible employment opportunities without compromising the fundamental rights.</p>
<p><a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=1663547" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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	(int) 13 => object(Cake\ORM\Entity) {

		'article_id' => (int) 6689,
		'category_id' => (int) 21,
		'title' => 'Contraction in GDP of India in 2020-21: World Bank',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/world-bank-group" target="_blank" rel="noopener"><strong>World Bank</strong></a> released its <a href="/daily-updates/daily-news-analysis/world-bank-on-india-s-growth" target="_blank" rel="noopener"><strong>South Asia Economic Focus report</strong> </a>which estimated that India&rsquo;s <a href="/daily-updates/daily-news-analysis/gdp-decreases-to-11-year-low" target="_blank" rel="noopener"><strong>Gross Domestic Product</strong></a> (GDP) can contract <strong>by 9.6% in 2020-21.</strong></p>
<ul style="list-style-type: square;">
<li>This estimate is way below the earlier forecast of 3.2% contraction, made in June.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Contraction of Indian Economy in 2020-21</strong><br />
<ul style="list-style-type: circle;">
<li>The contraction is due to the impact of the <a href="/daily-updates/daily-news-editorials/covid-19-and-lockdown" target="_blank" rel="noopener"><strong>national lockdown</strong> </a>against the outbreak of the <a href="/daily-updates/daily-news-editorials/covid-19-and-india-1" target="_blank" rel="noopener"><strong>Covid-19 pandemic</strong></a> and the income shock experienced by households and small urban service firms.</li>
<li>The <strong>manufacturing and exporting industries</strong> are likely to be depressed, and the <strong>construction</strong> sector is also likely to experience a protracted slowdown.<br />
<ul style="list-style-type: disc;">
<li>This is due to a<strong> limited pipeline of public sector infrastructure projects</strong> and reliance of these industries on <a href="/daily-updates/daily-news-analysis/indian-migrants-and-challenges" target="_blank" rel="noopener"><strong>migrant workers</strong></a> who have not yet returned to cities where they worked.</li>
</ul>
</li>
<li>Significant disruptions to jobs are likely to boost the<strong> poverty rate,</strong> with 2020 rates back to levels in 2016. <br />
<ul style="list-style-type: disc;">
<li>The <a href="/daily-updates/daily-news-analysis/poverty-and-shared-prosperity-report-world-bank" target="_blank" rel="noopener"><strong>biennial Poverty and Shared Prosperity Report</strong></a> was recently released by the World Bank which stated that Covid-19 can add around 27-40 million <strong>new poor</strong> in <strong>Sub-Saharan Africa</strong> and around 49-57 million in<strong> South Asia</strong> region, causing over 1.4% of the world&rsquo;s population to fall into <strong>extreme poverty.</strong></li>
</ul>
</li>
<li>The demand slowdown could lead to<a href="/daily-updates/daily-news-analysis/warning-of-higher-npas" target="_blank" rel="noopener"><strong> rising loan non-repayment</strong></a> and <strong>risk aversion</strong> impacting the financial markets.</li>
<li>Other concerns include <a href="/daily-updates/daily-news-editorials/covid-19-and-india-s-preparedness" target="_blank" rel="noopener"><strong>health care system capacity constraints</strong></a>, <a href="/daily-updates/daily-news-analysis/higher-food-prices-and-nutrition-security" target="_blank" rel="noopener"><strong>rising food prices</strong></a>, <a href="/daily-updates/daily-news-analysis/1-6-billion-risk-losing-jobs-ilo" target="_blank" rel="noopener"><strong>sharp drops in earnings of informal workers</strong></a>, <a href="/daily-updates/daily-news-analysis/msmes-and-covid-19" target="_blank" rel="noopener"><strong>impact on the MSMEs</strong> </a>etc.</li>
</ul>
</li>
<li><strong>South Asian Scenario:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>entire South Asia region</strong> may face its <strong>worst-ever recession.</strong><br />
<ul style="list-style-type: disc;">
<li>The regional GDP is estimated to contract by 7.7% in 2020, which stayed above 6% annually in the past five years.</li>
<li>This recession will be <strong>different from previous ones</strong> as earlier downturns were mainly due to<strong> falling investment and exports</strong> but this pandemic-induced recession is due to a <strong>decline in private consumption.</strong></li>
</ul>
</li>
<li><strong>Private consumption,</strong> which has been traditionally the backbone of demand in South Asia and a core indicator of economic welfare, will <strong>decline by more than 10%.</strong> This will <strong>spike poverty rates.</strong></li>
<li>A <strong>decline in remittances</strong> is also expected to accelerate the loss of livelihoods for the poorest in some countries.</li>
<li><strong>Other South Asian Countries:</strong> Countries like the Maldives, Sri Lanka are going to see a contraction in their economies while Pakistan, Bangladesh, Bhutan will witness slow growth in 2020-21.</li>
<li>The collapse of South Asian economies during Covid-19 has been the worst of all for <strong>small businesses and informal workers</strong> who suffer sudden job losses and vanishing wages.</li>
</ul>
</li>
<li><strong>Rebound of Economy in 2021-22</strong><br />
<ul style="list-style-type: circle;">
<li>India&rsquo;s growth is estimated to <strong>rebound to 5.4%</strong> in 2021-22.<br />
<ul style="list-style-type: disc;">
<li>However, this will be reflecting base effects and are based on the assumption that Covid-related restrictions will be completely lifted by 2022.</li>
<li><strong>Base Effect:</strong> It is the distortion in a monthly inflation figure that results from abnormally high or low levels of inflation in the year-ago month.</li>
</ul>
</li>
<li>South Asia&rsquo;s growth is projected to rebound to 4.5% in 2021.<br />
<ul style="list-style-type: disc;">
<li>However, due to population growth, per-capita income in the region will remain 6% below 2019 estimates.</li>
</ul>
</li>
<li>The expected <strong>rebound will not offset the lasting economic damage</strong> caused by the pandemic.</li>
<li>However, the pandemic could spur innovations that improve South Asia&rsquo;s future participation in global value chains.<br />
<ul style="list-style-type: disc;">
<li>The <a href="/daily-updates/daily-news-analysis/proposal-of-supply-chain-resilience-initiative" target="_blank" rel="noopener"><strong>Supply Chain Resilience Initiative</strong></a> is a step in this direction which would reduce the dependence on imports from a handful of countries.</li>
</ul>
</li>
<li>The comparative advantage that South Asia and <a href="/daily-updates/daily-news-editorials/india-the-tech-garage-of-the-world" target="_blank" rel="noopener"><strong>India have in tech services</strong></a> and niche tourism will likely be in higher demand as the global economy becomes more digital.</li>
</ul>
</li>
<li><strong>Other Related News</strong><br />
<ul style="list-style-type: circle;">
<li>India&rsquo;s <a href="/daily-updates/daily-news-analysis/contraction-in-august-core-industry-output-iip" target="_blank" rel="noopener"><strong>eight core industrial sectors contracted by 8.5%</strong></a> in August 2020 compared to <strong>August 2019,</strong> marking the sixth month in a row of shrinking output.</li>
<li>According to the recent <strong><a href="/daily-updates/daily-news-analysis/retail-inflation-dropped" target="_blank" rel="noopener">National Statistical Office</a> (NSO)</strong> data, India&rsquo;s <a href="/daily-updates/daily-news-analysis/gdp-contracted-by-23-9-in-first-quarter" target="_blank" rel="noopener"><strong>GDP growth contracted by 23.9%</strong></a> in the first (April-June) quarter of 2020 compared to the same period (April-June) in 2019.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>The World Bank urged governments to design universal social protection as well as policies that support greater productivity, skills development, and human capital.</li>
<li>Amid a sudden and steep economic impact from the pandemic, South Asian governments proactively stabilized the economy through monetary easing, fiscal stimulus, and supportive financial regulation, but the situation is fragile. The governments need to address the deep-seated vulnerabilities of their informal sectors through smart policies and allocate their scarce resources wisely.</li>
</ul>
<p><a href="https://indianexpress.com/article/business/economy/indias-gdp-expected-to-contract-by-9-6-per-cent-this-fiscal-world-bank-6715824/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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		'article_id' => (int) 6680,
		'category_id' => (int) 21,
		'title' => 'Reforms in Exploration and Licensing Policy: Oil & Gas',
		'description' => '<h3>Why in News</h3>
<p>The <a href="/daily-updates/daily-news-analysis/centre-cuts-non-urea-fertiliser-subsidy" target="_blank" rel="noopener"><strong>Cabinet Committee on Economic Affairs</strong></a> (CCEA) chaired by the Prime Minister has approved the<strong> Policy framework</strong> on reforms in the exploration and licensing sector for enhancing domestic exploration and production of oil and gas.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Objectives:</strong><br />
<ul style="list-style-type: circle;">
<li>Attract new <strong>investment</strong> in Exploration and Production (E&amp;P) Sector.</li>
<li>Intensification of <strong>exploration</strong> activities in unexplored areas.</li>
<li><strong>Liberalizing</strong> the policy in producing basins.</li>
</ul>
</li>
<li><strong>Four Focus Areas:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Increasing Exploration Activities in Unexpected Areas:</strong><br />
<ul style="list-style-type: disc;">
<li>Bidding out <strong>uncommercialized basins</strong> to contractors without them having to share revenue or production with the Government and only paying royalties/levies.</li>
<li>For <strong>unallocated/unexplored areas,</strong> the bidding to be based on a revenue-sharing basis but more weightage to work programme to be given.</li>
<li>Shorter exploration period and <strong>fiscal incentives.</strong></li>
</ul>
</li>
<li><strong>Marketing and Pricing Freedom:</strong><br />
<ul style="list-style-type: disc;">
<li>To incentivize enhanced gas production, marketing and pricing freedom to be granted for those new gas discoveries whose <strong>Field Development Plan (FDP)</strong> is yet to be approved.<br />
<ul style="list-style-type: disc;">
<li>FDP is the evaluation document of multiple development options for a field and selecting the best option based on assessing tradeoffs.</li>
</ul>
</li>
<li><strong>Fiscal incentive on additional gas production</strong> from domestic fields over and above normal production.</li>
</ul>
</li>
<li><strong>Preparation of Enhanced Production Profile:</strong><br />
<ul style="list-style-type: disc;">
<li>Public sector Undertakings like <strong>Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL)</strong> will prepare an enhanced production profile to enhance production from their existing fields.</li>
<li>For production enhancement, bringing new technology, and capital, No Objection Certificates (NOCs) will be allowed to <strong>induct private sector partners.</strong></li>
</ul>
</li>
<li><strong>Promoting Ease of Doing Business:</strong><br />
<ul style="list-style-type: disc;">
<li>Measures like setting up coordination mechanism and simplification of approval, alternate dispute resolution mechanism etc. to be taken.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Background:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Domestic production of oil and gas was declining, import dependence was rising and investment in E&amp;P activities was reducing.</strong> Thus, policy reform in this sector was needed.</li>
<li>Earlier, the government between 2016 and 2019 had given pricing freedom for all fields except those given to state-owned ONGC and OIL on a nomination basis.</li>
<li>But, there were<strong> restrictions on marketing</strong> like a ban on affiliates of producers buying the fuel etc. This <strong>restricted competition</strong> kept<strong> prices artificially low.</strong></li>
<li>The <a href="/to-the-points/paper3/hydrocarbon-exploration-and-licensing-policy" target="_blank" rel="noopener"><strong>Hydrocarbon Exploration and Licensing Policy or HELP</strong></a> was approved in March 2016, aimed at increasing the transparency and decreasing the administrative discretion in granting hydrocarbon licenses. It replaced the <strong><a href="/daily-updates/daily-news-editorials/increasing-domestic-oil-production" target="_blank" rel="noopener">New Exploration Licensing Policy (NELP)</a>, 1997.</strong></li>
<li>Recently, India also launched its first gas exchange which has been named as the <a href="/daily-updates/daily-news-analysis/indian-gas-exchange-igx" target="_blank" rel="noopener"><strong>Indian Gas Exchange (IGX).</strong></a></li>
</ul>
</li>
<li><strong>Benefits:</strong><br />
<ul style="list-style-type: circle;">
<li>Development of support services.</li>
<li>Employment generation.</li>
<li>Transfer of advanced technology.</li>
<li>Reducing import dependence.</li>
<li>Improve <a href="/to-the-points/paper3/energy-security" target="_blank" rel="noopener"><strong>energy security</strong></a> of the country.</li>
<li>Save the precious foreign exchange on imports.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Petroleum</strong></p>
<ul style="list-style-type: square;">
<li>Crude petroleum occurs in <strong>sedimentary rocks</strong> of the tertiary period.</li>
<li>It consists of <strong>hydrocarbons of liquid and gaseous states</strong> varying in chemical composition, colour and specific gravity.</li>
<li>It is an essential source of energy for all internal combustion engines in automobiles, railways and aircraft.</li>
<li>Its numerous by-products are processed in petrochemical industries such as fertiliser, synthetic rubber, synthetic fibre, medicines, vaseline, lubricants, wax, soap and cosmetics.</li>
<li>Venezuela, Saudi Arabia, Canada, Iran, Iraq, Kuwait, Russia are some <strong>major countries with the largest oil reserves.</strong></li>
<li>Digboi, Naharkatiya and Moran in<strong> Assam,</strong> Ankleshwar, Kalol, Mehsana, Navagam, Kosamba and Lunej in <strong>Gujarat;</strong> Mumbai High in <strong>Maharashtra</strong> are important <strong>oil-producing areas in India.</strong></li>
</ul>
<p><strong>Natural Gas</strong></p>
<ul style="list-style-type: square;">
<li>Natural gas is found with petroleum deposits and is released when crude oil is brought to the surface. It can be used as a domestic and industrial fuel.</li>
<li><strong>Russia, Norway, UK and the Netherlands</strong> are the major producers of natural gas.</li>
<li>In <strong>India</strong>, Jaisalmer, Krishna Godavari delta, Tripura and some areas offshore in Mumbai have natural gas resources.</li>
<li>The<strong> Gas Authority of India Limited</strong> was set up in 1984 as a public sector undertaking to transport and market natural gas.</li>
</ul>
<p><strong>Oil and Natural Gas Corporation</strong></p>
<ul style="list-style-type: square;">
<li>Oil and Natural Gas Corporation (ONGC) is a <strong>Maharatna</strong> Public Sector Undertaking (PSU) of the Government of India.</li>
<li>It was set up in 1995 and is under the <strong>Ministry of Petroleum and Natural Gas.</strong></li>
<li>It is the <strong>largest crude oil and natural gas company in India,</strong> contributing around 70% to Indian domestic production.</li>
</ul>
</div>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>The production enhancement scheme for the nomination field of NOCs is likely to <strong>augment production</strong> by leveraging new technology, capital and management practices through private sector participation.</li>
<li>It would bring <strong>uniformity to the bidding process</strong> across various contractual regimes and policies to avoid ambiguity and contribute towards <strong>ease of doing business.</strong></li>
<li>The move is in line with India&rsquo;s goal of becoming self-reliant as envisaged in the <a href="/daily-updates/daily-news-editorials/atma-nirbhar-bharat-abhiyan-challenges" target="_blank" rel="noopener"><strong>Atmanibhar Bharat initiative</strong></a>. It will help India develop into a <strong>gas-based economy.</strong></li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1565313" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
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		'article_id' => (int) 6669,
		'category_id' => (int) 21,
		'title' => 'National Startup Awards 2020',
		'description' => '<h3>Why in News</h3>
<p>The <strong>results of the first edition of National Startup Awards</strong> (2020) were recently released by the <strong>Ministry of Commerce &amp; Industry.</strong></p>
<ul style="list-style-type: square;">
<li>The <strong>Startup India Showcase and Blockchain-based Certificate Verification System</strong> were also launched during the event.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About the Startup Awards:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Designed by:</strong> Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce &amp; Industry.</li>
<li><strong>Aim:</strong> To<strong> recognize and reward outstanding Startups and ecosystem enablers</strong> that are building innovative products or solutions and scalable enterprises, with high potential of<strong> employment generation or wealth creation,</strong> demonstrating measurable<strong> social impact.</strong></li>
<li><strong>12 Sectors:</strong> The Awards invited applications across 12 sectors, which are Agriculture, Education, Enterprise Technology, Energy, Finance, Food, Health, <a href="/loksabha-rajyasabha-discussions/in-depth-industrial-revolution-4-0" target="_blank" rel="noopener"><strong>Industry 4.0</strong></a>, Space, Security, Tourism and Urban Services.<br />
<ul style="list-style-type: disc;">
<li>Apart from these, startups were selected from those which create impact in<strong> rural</strong> areas, are <strong>women-led</strong> and founded in <strong>academic campuses</strong> (3 special categories).</li>
</ul>
</li>
<li><strong>Prize:</strong> The <strong>winning startup founders</strong> will get a cash prize of Rs. 5 lakh and an opportunity to present their solutions to relevant public authorities and corporates. <strong>Incubators and accelerators</strong> will get Rs. 15 lakh as the winning amount.<br />
<ul style="list-style-type: disc;">
<li>A <strong>total of 38 startups were awarded,</strong> one in each of the 35 categories and 3 special categories in the 12 sectors.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Startup India Showcase:</strong><br />
<ul style="list-style-type: circle;">
<li>It is part of the<a href="/daily-updates/daily-news-analysis/the-start-up-india-fund" target="_blank" rel="noopener"><strong> Startup India</strong></a> portal intended to be an online discovery platform for the most promising startups of the country.<br />
<ul style="list-style-type: disc;">
<li>The Government of India has initiated the Startup India Scheme in 2016.</li>
</ul>
</li>
<li>The <strong>startups showcased here shall be handpicked by experts</strong> and will span across different sectors like <a href="/daily-updates/daily-news-editorials/daily-updates-news-editorials-the-challenges-for-fintech-adoption-in-India" target="_blank" rel="noopener"><strong>FinTech</strong></a>, EdTech, Social Impact among others.</li>
<li>The showcase will <strong>help industry, investors and public authorities find and connect with startups</strong> for potential partnerships, investments and public procurement respectively.</li>
</ul>
</li>
<li><strong><a href="/daily-updates/daily-news-analysis/blockchain-technology-in-voting" target="_blank" rel="noopener">Blockchain</a>-based Certificate Verification System:</strong><br />
<ul style="list-style-type: circle;">
<li>It will enable instant verification and access to certificates of recognitions issued by DPIIT.</li>
<li>This feature introduces an added layer of<strong> security to the startup certificates.</strong></li>
<li>It can be accessed by Government Departments, procurement entities, investors, and other third parties to verify status of recognized startups for accessing different opportunities.</li>
</ul>
</li>
<li><strong>Other Related News:</strong><br />
<ul style="list-style-type: circle;">
<li>Recently, DPIIT also released the results of the 2<sup>nd</sup> edition of<a href="/daily-updates/daily-news-analysis/ranking-of-states-on-support-to-startup-ecosystems-dpiit" target="_blank" rel="noopener"><strong> Ranking of States on Support to Startup Ecosystem</strong> </a>in which Gujarat performed best among all States.</li>
<li>DPIIT has also released the <a href="/daily-updates/daily-news-analysis/ease-of-doing-business-rankings-of-the-states-dpiit" target="_blank" rel="noopener"><strong>Ease of Doing Business Rankings of the States-2019</strong></a> in which Andhra Pradesh topped.</li>
<li>Recently, the Parliamentary Standing Committee on Finance tabled a <a href="/daily-updates/daily-news-analysis/parliamentary-committee-report-on-startups" target="_blank" rel="noopener"><strong>report related to startups</strong></a> in Parliament.</li>
</ul>
</li>
</ul>
<h3>Way forward</h3>
<ul style="list-style-type: square;">
<li>The awards will generate excitement and enthusiasm among the young entrepreneurs in taking their innovative ideas to the higher levels and propel the startups to expand and serve new geographies and large numbers of people.</li>
<li>This will help in generation of employment and achieving the goal of <a href="/daily-updates/daily-news-editorials/atma-nirbhar-bharat-abhiyan-challenges" target="_blank" rel="noopener"><strong>Atmanirbhat Bharat</strong></a> (Self Reliant India).</li>
</ul>
<p><a href="https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1662079" target="_blank" rel="noopener"><strong>Source :PIB</strong></a></p>',
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		'article_id' => (int) 6666,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: The Labour Code Bills',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/bBdQLloDm5Q" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why In News?</h3>
<p>Parliament has passed 3 labour code bills aimed at labour welfare reforms covering more than 50 crores organized and unorganized workers in the country. This opens up the doors for social security to those in the self-employment sector. These three Bills are</p>
<ul style="list-style-type: square;">
<li>Social Security Code, 2020.</li>
<li>Code on Occupational Safety, Health &amp; Working Conditions Code, 2020</li>
<li>Industrial Relations Code, 2020</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>The bills are believed to be the watershed movement for labour law energy as for the first time, the migrant workers, gig workers are included and doors for social security to those in the self-employment sector are also opened.</li>
<li>The reforms cover more than 50 crore organised and unorganised workers in the country</li>
<li>The two new provisions are:<br />
<ul style="list-style-type: circle;">
<li>The company will provide the retrenched worker with 15 days of wages last drawn by him to reskill himself.</li>
<li>Any worker who has served even less than a term of 5 years to a company will get proportionate gratuity.<br />
<ul style="list-style-type: disc;">
<li><strong>Gratuity</strong> is given by the employer to his/her employee for the services rendered by him/her during the period of employment. It is usually paid at the time of retirement but can be paid earlier, provided certain conditions are met.</li>
</ul>
</li>
</ul>
</li>
<li>The fourth code, <a href="/daily-updates/daily-news-editorials/code-on-wages-1" target="_blank" rel="noopener"><strong>Code on Wages</strong></a> was also included, but it had already been passed.</li>
</ul>
<div class="border-bg">
<p><strong>Code on Wages</strong></p>
<ul style="list-style-type: square;">
<li>The <strong>wage code</strong> removes the multiplicity of wage definitions, which can significantly reduce litigation as well as compliance cost for employers.</li>
<li>The act links minimum wage across the country to the <strong>skills of the employee and the place of employment.</strong></li>
<li>It seeks to universalize the provisions of minimum wages and timely payment of wages to all employees irrespective of the sector and wage ceiling.
<ul style="list-style-type: circle;">
<li>It seeks to <strong>ensure "Right to Sustenance" for every worker</strong> and intends to increase the legislative protection of minimum wage.</li>
</ul>
</li>
<li>A <strong>National Floor Level Minimum Wage</strong> will be set by the Centre and will be revised every <strong>five years,</strong> while states will fix minimum wages for their regions, which cannot be lower than the floor wage.</li>
<li>It subsumes the following four labour laws:
<ul style="list-style-type: circle;">
<li>The Payment of Wages Act, 1936</li>
<li>The Minimum Wages Act, 1948</li>
<li>The Payment of Bonus Act, 1965</li>
<li>The Equal Remuneration Act, 1976.</li>
</ul>
</li>
</ul>
</div>
<h3>Salient Features of the Three Codes</h3>
<p><strong>A. Social Security Code, 2020</strong></p>
<ul style="list-style-type: square;">
<li>Provision has been made to formulate various schemes for providing comprehensive social security to workers in the unorganised sector. <br />
<ul style="list-style-type: circle;">
<li>A &ldquo;Social Security Fund&rdquo; will be created on the financial side in order to implement these schemes.</li>
</ul>
</li>
<li>Work to bring newer forms of employment created with the changing technology like <strong>&ldquo;platform worker or gig worker&rdquo;</strong> into the ambit of social security has been done in the Social Security Code</li>
<li>With the aim of making a <strong>national database</strong> for <strong>unorganised sector</strong> workers, registration of all these workers would be done on an online portal and this registration would be done on the basis of Self Certification through a simple procedure. <br />
<ul style="list-style-type: circle;">
<li>It would facilitate the extension of benefits of various social security schemes to beneficiaries in the unorganised sector.</li>
</ul>
</li>
</ul>
<p><strong>B. Occupational Safety, Health &amp; Working Conditions Code, 2020</strong></p>
<ul style="list-style-type: square;">
<li>Free health checkup once a year by the employer for workers which are more than a certain age.</li>
<li>Legal right for getting an Appointment Letter given to workers for the first time.</li>
<li>Cine Workers have been designated as Audio Visual Worker, so that more and more workers get covered under the OSH code (The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981). Earlier, this security was being given to artists working in films only.</li>
</ul>
<p><strong>C. Industrial Relations Code, 2020</strong></p>
<ul style="list-style-type: square;">
<li>Provision for accumulation of one day leave for every 20 days worked, when work has been done for 180 days instead of 240 days.</li>
<li>In the event of death of a worker or injury to a worker due to an accident at his workplace, at least 50 % share of the penalty would be given. This amount would be in addition to Employees Compensation.</li>
<li>Inspector to be now made as Inspector &ndash; cum- Facilitator and introduction of Random, Web Based Inspection System to remove to Inspector Raj.</li>
</ul>
<h3>Benefits of Labour Codes</h3>
<ul style="list-style-type: square;">
<li><strong>Consolidation and simplification of the Complex laws:</strong> The three Codes simplify labour laws by subsuming 25 central labour laws that have been on the table for at least 17 years.
<ul style="list-style-type: circle;">
<li>It will provide a big boost to industry &amp; employment and will reduce multiplicity of definition and multiplicity of authority for businesses.</li>
</ul>
</li>
<li><strong>Single Licensing Mechanism:</strong> The codes provide for a single licensing mechanism. It will give fillip to industries by ushering in substantive reform in the licensing mechanism. Currently, industries have to apply for their licence under different laws.</li>
<li><strong>Easier Dispute resolution:</strong> The codes also simplify archaic laws dealing with industrial disputes and revamp the adjudication process, which will pave the way for early resolution of disputes.</li>
<li><strong>Ease of Doing Business:</strong> According to the industry and some economists such reform shall boost investment and improve ease of doing business. It drastically reduces complexity and internal contradictions, increases flexibility &amp; modernizes regulations on safety/working conditions</li>
<li><strong>Other benefits for Labour:</strong> The three codes will promote fixed term employment, reduce influence of trade unions and expand the social security net for informal sector workers.</li>
<li><strong>Gender parity:</strong> Women have to be permitted to work in every sector at night, but it has to be ensured that provision for their security is made by the employer and consent of women is taken before they work at night.
<ul style="list-style-type: circle;">
<li>The maternity leave is increased from 12 weeks to 26 weeks. women were allowed to work in mines under <a href="/daily-updates/daily-news-analysis/important-facts-for-prelims-18th-january-2019" target="_blank" rel="noopener"><strong>Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).</strong></a></li>
<li>Pay parity to women workers as compared to their male counterparts.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>A very robust, reliable and fairly decent social security package needs to be created for workers of unorganised sectors as well.</li>
<li>The proposal of increasing the compensation amount of the retrenched employee should be taken into account; increased from 15 days of a salary to 45 days of salary.</li>
</ul>',
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		'article_id' => (int) 6596,
		'category_id' => (int) 21,
		'title' => 'PCA Decision on Retrospective Taxation by India',
		'description' => '<h3>Why in News</h3>
<p>The <strong>Permanent Court of Arbitration (PCA)</strong> at The Hague (Netherlands) ruled that<strong> India&rsquo;s retrospective imposition of a tax liability, as well as interest and penalties</strong> on Vodafone Group for a 2007 deal was <strong>violation of the <a href="/daily-updates/daily-news-editorials/model-bilateral-investment-treaty" target="_blank" rel="noopener">Bilateral Investment Treaty</a></strong> with Netherlands and the arbitration rules of <a href="/daily-updates/daily-news-analysis/un-model-for-cross-border-norms" target="_blank" rel="noopener"><strong>United Nations Commission on International Trade Law</strong></a> <strong>(UNCITRAL)</strong>.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About the Case:</strong> <br />
<ul style="list-style-type: circle;">
<li>In May 2007, the British telecommunication company Vodafone Group had bought a 67% stake in a company called Hutchison Whampoa.</li>
<li>For this, the Indian government for the first time <strong>raised a demand of capital gains and withholding tax</strong> from Vodafone, under the <strong>Income Tax Act of 1961</strong>. The government argued that Vodafone should have <strong>deducted the tax at source</strong> before making a payment to Hutchison.<br />
<ul style="list-style-type: disc;">
<li><strong>Capital gains tax :</strong> It is the tax paid on income that derives from the sale or exchange of an asset, such as a stock or property that's categorized as a capital asset.</li>
</ul>
</li>
<li>In 2012, the <strong>Supreme Court ruled in favour of the Vodafone</strong> Group.</li>
<li>Later, the <strong>Finance Act was amended (2012)</strong> giving the Income Tax Department the power to <strong>retrospectively tax</strong> such deals.</li>
<li>Vodafone then initiated arbitration in 2014 invoking the <strong>Bilateral Investment Treaty</strong> signed between India and the Netherlands in 1995.</li>
<li><strong>Ruling:</strong> The <strong>International Arbitration Tribunal </strong>at <strong>Permanent Court</strong> <strong>of Arbitration</strong> ruled that the government&rsquo;s demand is in breach of fair and equitable treatment.<br />
<ul style="list-style-type: disc;">
<li>The government must <strong>cease seeking the dues from Vodafone</strong>.</li>
<li>This was a <strong>unanimous decision</strong> meaning that India's appointed arbitrator also ruled in favour of Vodafone.</li>
</ul>
</li>
<li><strong>Future Course for India:</strong> India has said it would study the order and all its aspects and take a decision on further course of action including legal remedies before appropriate fora. <br />
<ul style="list-style-type: disc;">
<li>According to Indian Government, as Vodafone had not paid the initial tax demand and interest and penalty on it, the question of India paying back the amount does not arise.</li>
<li>India has the option to move to <a href="/daily-updates/daily-news-analysis/singapore-convention-on-mediation" target="_blank" rel="noopener"><strong>Singapore International Arbitration Centre</strong></a> as well.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Retrospective Taxation:</strong> <br />
<ul style="list-style-type: circle;">
<li>It allows a country to pass a rule on taxing certain products, items or services and deals and charge companies from a time <strong>behind the date</strong> on which the law is passed.</li>
<li>Countries use this route to <strong>correct any anomalies in their taxation policies</strong> that have, in the past, allowed companies to take advantage of such <strong>loopholes</strong>.</li>
<li>Retrospective Taxation <strong>hurts companies</strong> that had knowingly or unknowingly interpreted the tax rules differently.</li>
<li>Apart from India, many countries including <strong>the USA, the UK, the Netherlands, Canada, Belgium, Australia and Italy</strong> have retrospectively taxed companies.</li>
</ul>
</li>
<li><strong>Bilateral Investment Treaty:</strong><br />
<ul style="list-style-type: circle;">
<li>On 6<sup>th</sup> November, 1995, India and the Netherlands had signed a BIT for <strong>promotion and protection of investment by companies of each country</strong> in the other&rsquo;s jurisdiction.</li>
<li>The two countries would ensure that companies present in each other&rsquo;s jurisdictions would at all times be accorded <strong>fair and equitable treatment</strong> and shall enjoy full <strong>protection and security</strong> in the territory of the other.</li>
<li>The BIT between India and the <strong>Netherlands expired on 22<sup>nd</sup> September, 2016</strong>.</li>
<li><strong>Relation to Vodafone Case:</strong> Vodafone invoked BIT as its Dutch unit, Vodafone International Holdings BV, had bought the Indian business operations of Hutchison Telecommunication International Ltd. This made it a transaction between a <strong>Dutch firm and an Indian firm</strong>.</li>
</ul>
</li>
<li><strong>United Nations Commission on International Trade Law:</strong><br />
<ul style="list-style-type: circle;">
<li>UNCITRAL was established in 1966 as a subsidiary body of the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/united-nations-1" target="_blank" rel="noopener"><strong>United Nations General Assembly</strong></a> (UNGA).</li>
<li>It is the core legal body of the United Nations system in the field of international trade law.</li>
<li><strong>Mandate:</strong> To further the progressive harmonization and modernization of rules on international business and reform commercial laws.</li>
<li>It adopted the <strong>UNCITRAL Model Law on International Commercial Arbitration</strong> in 1985 and <strong>the UNCITRAL Conciliation Rules</strong> in 1980.</li>
<li>The UNGA has recommended the use of the said Model Law and Rules in cases where a dispute arises in the context of international commercial relations and the parties seek an amicable settlement of that dispute by recourse to conciliation.</li>
<li>India has also incorporated these uniform principles of Arbitration and Dispute Resolution (ADR) in the <a href="/prs-capsule/prs-capsule-july-2019#:~:text=The%20Arbitration%20and%20Conciliation%20(Amendment,law%20for%20conducting%20conciliation%20proceedings." target="_blank" rel="noopener"><strong>Arbitration and Conciliation Act, 1996</strong></a> which has been amended several times.<br />
<ul style="list-style-type: disc;">
<li>The Arbitration Act provides for ADR mechanisms like arbitration, conciliations, etc. for national and international stakeholders.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Significance</h3>
<ul style="list-style-type: square;">
<li>Vodafone&rsquo;s win in the arbitration against the government in the retrospective taxation is very significant as it may cause other <strong>similarly placed companies to seek arbitral reliefs</strong>.</li>
<li>India is entangled in more than a dozen such cases against companies over retrospective tax claims and cancellation of contracts. The exchequer could end up paying billions of dollars in damages if it loses.</li>
<li>To reduce future arbitration claims, India has <strong>ended such bilateral investment agreements with over 50 countries</strong> and is working on a new law to protect foreign investors by <strong>offering relief from possible policy changes</strong> even as it <strong>upholds the right to tax</strong> them.</li>
<li>The victory of Vodafone at PCA may provide it some relief as the telecom sector is already facing a number of <a href="/to-the-points/paper3/telecom-sector-issues-and-challenges" target="_blank" rel="noopener"><strong>issues and challenges</strong></a>. The ruling comes days after the Supreme Court allowed a period of <a href="/daily-updates/daily-news-analysis/adjusted-gross-revenue-to-be-paid-in-10-years" target="_blank" rel="noopener"><strong>10 years for telecom companies to clear Adjusted Gross Revenue</strong></a> (AGR) related dues, causing heavy financial <a href="/daily-updates/daily-news-editorials/crisis-in-the-telecom-sector" target="_blank" rel="noopener"><strong>burden on the telecom sector</strong></a>.</li>
</ul>
<div class="border-bg">
<p><strong>International Arbitration Tribunal</strong></p>
<ul style="list-style-type: square;">
<li>It is an <strong>independent non-governmental panel</strong> of independent and impartial experts.</li>
<li>It generally comprises three members nominated by the Parties (or appointed by the International Arbitration Institution, or by a National Court) on the basis of their legal and practical expertise and knowledge, to render a <strong>final and binding award</strong>.</li>
</ul>
<p><strong>Permanent Court of Arbitration</strong></p>
<ul style="list-style-type: square;">
<li><strong>Established</strong> in: 1899.</li>
<li><strong>HQ:</strong> The Hague, Netherlands.</li>
<li><strong>Purpose:</strong> It is an intergovernmental organization dedicated to serve the international community in the field of dispute resolution and to facilitate arbitration and other forms of dispute resolution between States.</li>
<li><strong>Structure:</strong> The PCA has a three-part organizational structure consisting of:
<ul style="list-style-type: circle;">
<li><em><strong>Administrative Council&nbsp;</strong></em>- to oversee its policies and budgets,</li>
<li><em><strong>Members of the Court&nbsp;</strong></em>- a panel of independent potential arbitrators, and</li>
<li><em><strong>International Bureau&nbsp;</strong></em>- its Secretariat, headed by the Secretary-General.</li>
</ul>
</li>
<li><strong>Funds:</strong> It has a <strong>Financial Assistance Fund</strong> which aims at helping developing countries meet part of the costs involved in international arbitration or other means of dispute settlement offered by the PCA.</li>
</ul>
</div>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>India needs to craft meaningful and clear dispute resolution mechanisms in cross-border transactions to prevent the disputes from going to international courts, and save the cost and time expenditure. Improving the arbitration ecosystem will have a positive impact on <a href="/daily-updates/daily-news-analysis/steps-to-boost-ease-of-doing-business" target="_blank" rel="noopener"><strong>ease of doing business</strong></a>.</li>
</ul>
<p><a href="https://indianexpress.com/article/business/companies/vodafone-group-plc-govt-case-govt-may-have-to-shell-out-rs-85-cr-if-it-decides-not-to-appeal-6614428/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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		'article_id' => (int) 6578,
		'category_id' => (int) 22,
		'title' => 'Right Code For Labour',
		'description' => '<div class="border">
<p>This article is based on <a href="https://www.livemint.com/news/india/rajya-sabha-approves-three-labour-codes-merging-25-central-labour-laws-11600849923026.html" target="_blank" rel="noopener"><strong>Rajya Sabha approves three codes subsuming 25 central labour laws</strong></a> which was published in The LiveMint on 23/09/2020. It evaluates the three labour codes recently passed by the parliament.</p>
</div>
<p>Labour falls under the Concurrent List of the Constitution. Recently, the Parliament passed <a href="/daily-updates/daily-news-analysis/labour-reforms-1" target="_blank" rel="noopener"><strong>three labour codes</strong> </a>&mdash; on<strong> industrial relations; occupational safety, health and working conditions; </strong>and<strong> social security &mdash;</strong> proposing to simplify the country&rsquo;s archaic labour laws and give impetus to economic activity without compromising with the workers&rsquo; benefits.</p>
<p>These labour codes can have a transformative impact on labour relations in India. Along with the <a href="/daily-updates/daily-news-editorials/code-on-wages-1#:~:text=Code%20on%20Wages%20Act%202019,-The%20new%20wage&amp;text=It%20seeks%20to%20universalizes%20the,legislative%20protection%20of%20minimum%20wage." target="_blank" rel="noopener"><strong>&lsquo;Code on Wages Act- 2019&rsquo;,</strong> </a>these can significantly ease the conduct of business by amalgamating a plethora of Central and State laws on labour.</p>
<p>The labour codes were adopted on the recommendations of the <strong>Second National Commission on Labour (2002),</strong> which suggested consolidating 100 State laws and 40 Central laws across industries, occupations and regions.</p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; text-align: center; background-color: #1b264a;"><span style="color: #ffffff;"><strong>Existing Labour Codes Subsumed</strong></span></td>
</tr>
<tr>
<td style="width: 100%; background-color: #ebffde;">
<ul style="list-style-type: square;">
<li>The social security code replaces nine laws on social security, including the Employees&rsquo; Provident Fund Act, 1952, and the Maternity Benefit Act, 1961.</li>
<li>Industrial Relations Code subsumes the Industrial Disputes Act, 1974, the Trade Unions Act, 1926; and Industrial Employment (Standing Orders) Act, 1946.</li>
<li>The Occupational Safety, Health and Working Conditions Code replaces 13 labour laws.</li>
</ul>
</td>
</tr>
</tbody>
</table>
<div class="border-bg">
<p><strong>Key Proposals in the Three Labour Codes</strong></p>
<p><strong>Industrial Relations Code Bill 2020</strong></p>
<ul style="list-style-type: square;">
<li>The code, among its important provisions, makes it easier for companies to<strong> hire and fire workers.</strong> <br />
<ul style="list-style-type: circle;">
<li>Companies employing upto 300 workers will not be required to frame rules of conduct for workmen employed in industrial establishments. Presently, it is compulsory for firms employing upto 100 workers.</li>
</ul>
</li>
<li>It proposes that workers in factories will have to give a notice <strong>at least 14 days in advance</strong> to employers if they want to go on strike. <br />
<ul style="list-style-type: circle;">
<li>Presently, only workers in public utility services are required to give notices to hold strikes.</li>
</ul>
</li>
<li>Besides, every industrial establishment <strong>employing 20 or more workers</strong> will have one or more<strong> Grievance Redressal Committees</strong> for resolution of disputes arising out of employees&rsquo; grievances.</li>
<li>The code also proposes setting up of a <strong>reskilling fund</strong> to help skill retrenched workers.</li>
</ul>
<p><strong>Occupational Safety, Health and Working Conditions Code Bill, 2020</strong></p>
<ul style="list-style-type: square;">
<li>It spells out duties of employers and employees, and <strong>envisages safety standards</strong> for different sectors, focusing on the health and working condition of workers, hours of work, leaves, etc.</li>
<li>The code also recognises the<strong> right of contractual workers.</strong></li>
<li>The code provides employers the flexibility to employ workers on a fixed-term basis, on the basis of requirement and without restriction in any sector. <br />
<ul style="list-style-type: circle;">
<li>More importantly, it also provides for <strong>statutory benefits</strong> like social security and wages to fixed-term employees at par with their permanent counterparts.</li>
</ul>
</li>
<li>It also mandates that no worker will be allowed to work in any establishment for<strong> more than 8 hours a day</strong> or more than<strong> 6 days in a week.</strong><br />
<ul style="list-style-type: circle;">
<li>In case of an overtime, an employee should be <strong>paid twice the rate of his/her wage.</strong> It will be applicable to even<strong> small establishments,</strong> which have upto 10 workers.</li>
</ul>
</li>
<li>The code also brings in <strong>gender equality</strong> and empowers the women workforce. Women will be entitled to be employed in all establishments for all types of work and, with <strong>consent can work before 6 am and beyond 7 pm</strong> subject to such conditions relating to safety, holidays and working hours. <br />
<ul style="list-style-type: circle;">
<li>For the first time, the labour code also<strong> recognises the rights of transgenders.</strong> It makes it mandatory for industrial establishments to provide washrooms, bathing places and locker rooms for male, female and transgender employees.</li>
</ul>
</li>
</ul>
<p><strong>Code on Social Security Bill, 2020</strong></p>
<ul style="list-style-type: square;">
<li>This will <strong>replace nine social security laws,</strong> including Maternity Benefit Act, Employees&rsquo; Provident Fund Act, Employees&rsquo; Pension Scheme, Employees&rsquo; Compensation Act, among others.</li>
<li>The code <strong>universalizes social security coverage</strong> to those working in the unorganised sector, such as migrant workers, gig workers and platform workers.</li>
<li>For the first time, provisions of social security will also be<strong> extended to agricultural workers also.</strong></li>
<li>The code also <strong>reduces the time limit for receiving gratuity payment</strong> from the continuous service of five years to one year for all kinds of employees, including fixed-term employees, contract labour, daily and monthly wage workers.</li>
</ul>
</div>
<h3>Benefits of Labour Codes</h3>
<ul style="list-style-type: square;">
<li><strong>Consolidation and simplification of the Complex laws:</strong> The three Codes simplify labour laws by<strong> subsuming 25 central labour laws</strong> that have been on the table for at least 17 years.<br />
<ul style="list-style-type: circle;">
<li>It will provide a big boost to industry &amp; employment and will reduce multiplicity of definition and multiplicity of authority for businesses.</li>
</ul>
</li>
<li><strong>Single Licensing Mechanism:</strong> The codes provide for a single licensing mechanism. It will give fillip to industries by ushering in substantive reform in the licensing mechanism. Currently, industries have to apply for their licence under different laws.</li>
<li><strong>Easier Dispute resolution:</strong> The codes also simplify archaic laws dealing with industrial disputes and revamp the adjudication process, which will pave the way for early resolution of disputes.</li>
<li><strong>Ease of Doing Business:</strong> According to the industry and some economists such reform shall boost investment and <strong>improve ease of doing business.</strong> It drastically reduces complexity and internal contradictions, increases flexibility &amp; modernizes regulations on safety/working conditions</li>
<li><strong>Other benefits for Labour:</strong> The three codes will promote fixed term employment, reduce influence of trade unions and expand the social security net for informal sector workers.</li>
</ul>
<h3>Concerns with the Labour codes</h3>
<ul style="list-style-type: square;">
<li><strong>Against the Interests of Employees:</strong> The codes provide the liberty to industrial establishments to <strong>hire and fire their employees at will.</strong> <br />
<ul style="list-style-type: circle;">
<li>This move might enable companies to introduce arbitrary service conditions for workers.</li>
</ul>
</li>
<li><strong>Free Hand to States:</strong> The central government has also attracted criticism that states have been given a <strong>free hand to exempt laws in violation of labour rights.</strong> However, the Union Labour Minister has said the labour issue is in the <strong>Concurrent list</strong> of the Constitution and therefore states have been given the flexibility to make changes as they wish.</li>
<li><strong>Affect Industrial Peace:</strong> Industrial Relation Code proposes that workers in factories will have to give a <strong>notice at least 14 days</strong> in advance to employers if they want to go on strike.
<ul style="list-style-type: circle;">
<li>However, earlier the <strong>Standing Committee on Labour</strong> had recommended against the expansion of the required notice period for strike beyond the <strong>public utility</strong> services like water, electricity, natural gas, telephone and other essential services.</li>
<li>Further, Bharatiya Mazdoor Sangh has also opposed the Code, describing it as a clear attempt to diminish the role of trade unions.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<p>The<a href="/daily-updates/daily-news-analysis/periodic-labour-force-survey-2018-19" target="_blank" rel="noopener"><strong> Periodic Labour Force Survey</strong> </a>observes that 71% of regular wage/salaried workers in the non-agriculture sector did not have a written contract, and 50% were without social security cover. The new laws, by simplifying compliance, should create an incentive for workforce formalisation.</p>
<p>The new labour codes will help in increasing the pace of generating good quality jobs to cater to the growing workforce, their rising aspirations and to absorb out-migration of labour from agriculture. This way India can fully be able to capitalize on its inherent labour and skill cost and help a fast economic recovery especially post <a href="/daily-updates/daily-news-editorials/covid-19-and-india-1" target="_blank" rel="noopener"><strong>Covid-19.</strong></a></p>
<p><a href="http://www.drishtiias.com/images/uploads/1600948077_image%200.png" target="_blank" rel="noopener"><strong><img class="content-img" src="http://www.drishtiias.com/images/uploads/1600948077_image 0.png" style="display: block; margin-left: auto; margin-right: auto;" caption="false" width="539" height="519" /></strong></a></p>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 100%; border-style: dotted; border-color: #ff0000; background-color: #ebefff;">
<p><span style="color: #800000;"><em><strong>Drishti Mains Question</strong></em></span></p>
<p>Discuss how recently passed labour codes can have a transformative impact on labour empowerment in India. Also, discuss the challenges associated with the codes.</p>
</td>
</tr>
</tbody>
</table>
<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/dLjM-UM8n1I" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>This editorial is based on <a href="https://indianexpress.com/article/opinion/editorials/what-labour-needs-6606712/" target="_blank" rel="noopener"><strong>&ldquo;What labour needs&rdquo;</strong></a> which was published in The Indian Express on September 23<sup>rd</sup>, 2020. Now watch this on our Youtube channel.</p>',
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		'title' => 'Contraction in July Factory Output: IIP',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/daily-updates/daily-news-analysis/retail-inflation-dropped" target="_blank" rel="noopener"><strong>National Statistical Office</strong></a> (NSO) has released data, highlighting the <strong>decline in the factory output</strong> (also called<strong> Industrial Production</strong>) for the fifth consecutive month, with July 2020 posting a contraction of 10.4% compared to July 2019.</p>
<ul style="list-style-type: square;">
<li>The data, however, <strong>recorded a sequential improvement from 15.8% contraction seen in June,</strong> reflecting some<strong> resumption in industrial activity</strong> with the <strong>lifting of lockdown</strong> restrictions.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>Cumulatively, the <a href="/daily-updates/daily-news-analysis/core-sector-shrinks-by-23-4" target="_blank" rel="noopener"><strong>Index of Industrial Production</strong></a> (IIP) contracted by 29.2% for April-July against a growth of 3.5% in the same period last year.<br />
<ul style="list-style-type: circle;">
<li>The IIP had grown by 4.9% in July 2019.</li>
</ul>
</li>
<li><strong>Reason:</strong> The decline is <strong>mainly due to degrowth</strong> in manufacturing, mining, capital goods, and consumer durables output.</li>
<li><strong>Contraction Data:</strong> Barring consumer non-durables, all other sectors including manufacturing, mining, primary goods, capital goods contracted in July.<br />
<ul style="list-style-type: circle;">
<li><strong>Consumer Non-durables:</strong> A proxy for the <a href="/daily-updates/daily-news-analysis/fmcg-sector-growth-to-slow-down" target="_blank" rel="noopener"><strong>Fast Moving Consumer Goods</strong> </a>(FMCG), it posted a positive growth of 6.7%.</li>
<li><strong>Manufacturing Sector:</strong> Weight of 77.6% in IIP, contracted by 11.1% in July from a contraction of 16.0% in June.</li>
<li><strong>Electricity Output:</strong> It contracted by 2.5% as against a double-digit contraction of 10.0% in June.<br />
<ul style="list-style-type: disc;">
<li>It recorded the best sequential improvement and may turn out to be the first sector, apart from consumer non-durables, to find its way in positive territory going ahead.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Similar Trends:</strong> The decline in industrial growth <strong>mirrors the trend in other high-frequency indicators</strong> for July.<br />
<ul style="list-style-type: circle;">
<li>India&rsquo;s Manufacturing <a href="/daily-updates/daily-news-analysis/contraction-in-manufacturing-pmi" target="_blank" rel="noopener"><strong>Purchasing Managers&rsquo; Index</strong> </a>(PMI) had stood at 46 in July compared with 47.2 in June. A print below 50 signifies a contraction.</li>
</ul>
</li>
<li><strong>Impact:</strong> The negative IIP for July, which is the first month of the second quarter, will reflect in the expected contraction in the <a href="/daily-updates/daily-news-analysis/gdp-decreases-to-11-year-low" target="_blank" rel="noopener"><strong>Gross Domestic Product</strong></a> (GDP) growth numbers for the July-September quarter.<br />
<ul style="list-style-type: circle;">
<li>India&rsquo;s <a href="/daily-updates/daily-news-analysis/gdp-contracted-by-23-9-in-first-quarter#:~:text=According%20to%20the%20recent%20National,reporting%20quarterly%20data%20in%201996." target="_blank" rel="noopener"><strong>GDP growth contracted by 23.9%</strong></a> in the April-June quarter, the worst among G20 countries.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Index of Industrial Production</strong></p>
<ul style="list-style-type: square;">
<li>It is an indicator that<strong> measures the changes in the volume of production of industrial products</strong> during a given period.</li>
<li>It is <strong>compiled and published monthly by the National Statistical Office</strong> (NSO), Ministry of Statistics and Programme Implementation.<br />
<ul style="list-style-type: circle;">
<li>NSO is the <strong>central statistical agency</strong> of the government, set up by an<strong> Act of the Parliament, Statistical Services Act (Chapter 386) 1980.</strong></li>
</ul>
</li>
<li>IIP is a<strong> composite indicator</strong> that measures the growth rate of industry groups classified under:<br />
<ul style="list-style-type: circle;">
<li><strong>Broad sectors,</strong> namely, Mining, Manufacturing, and Electricity.</li>
<li><strong>Use-based sectors,</strong> namely Basic Goods, Capital Goods, and Intermediate Goods.</li>
</ul>
</li>
<li><a href="/daily-updates/daily-news-analysis/core-sector-contracted-by-9-6" target="_blank" rel="noopener"><strong>Core Sector Industries</strong></a> comprise <strong>40.27%</strong> of the weight of items included in IIP.<br />
<ul style="list-style-type: circle;">
<li>The <strong>eight core Industries in decreasing order of their weightage:</strong> Refinery Products&gt; Electricity&gt; Steel&gt; Coal&gt; Crude Oil&gt; Natural Gas&gt; Cement&gt; Fertilisers.</li>
</ul>
</li>
<li><strong>Base Year for IIP is 2011-2012.</strong></li>
<li><strong>Significance of IIP:</strong><br />
<ul style="list-style-type: circle;">
<li>It is used by government agencies including the Ministry of Finance, the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener"><strong>Reserve Bank of India</strong></a>, etc. for policy-making purposes.</li>
<li>IIP remains extremely relevant for the calculation of the quarterly and advance GDP estimates.</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/business/economy/factory-output-decline-industrial-growth-covid-lockdown-6592625/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
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