FOOD INFLATION
1. Context
With Kharif crop sowing up 1.5% over last year’s levels by late September, and the healthy Southwest monsoon boosting reservoir levels as well as Rabi crop prospects, food inflation is expected to recede and rural demand is likely to see a steady rebound in the second half of 2024-25
2. Food Price index
The index is a weighted average of the international prices of a basket of food commodities over a base period value. Base period-2014-16
3. Twin Reasons for Optimism
- Global Food Prices –both the FPI and its two key component indices cereals and vegetable oils, which had exhibited ever higher volatility (soared from a low of 91.1points in May 2020, when Covid lockdowns worldwide triggered a collapse of demand to an all-time high of 159.7 points in March 2022, following Russia's invasion of Ukraine, leading to disruptions and collapse of supply.
- The FPI has fallen every single month since March, to 135.7 points in November
- The effects of world prices easing are being felt most clearly in edible oils. India imports 60% of its edible oil.
- Though the Kharif crops have not been good but cotton and soybean were the probable exceptions, high prices and their relative hardiness over, say pulses induced framers to expand acreages under both. Pulses haven't seen much inflation.
4. Why Pulses inflation abated
- Due to huge stocks of chana with government agencies
- The market is being well supplied by imports of masoor from Canada and Australia.
- Since masoor dal can replace arhar to some extent, more so in hotels and canteens, it is putting a lid on the latter’s prices.
5. Boosting Factors of Rabi Crops
- Wheat, mustard, maize chana, and masoor are boosting factors of Rabi Crops.
- Extended monsoon although bad for the harvest-ready Kharif crops has helped recharge aquifers and fill up reservoirs.
- The timely onset of winter and improved fertilizers availability
6. Present Scenario
- Open market prices of all these crops are ruling above MSPs.The need to make up for Kharif losses has added incentives for framers to sow more area this time.
- Most crops, seasonal vegetables included have seemingly escaped the ravages of a third La Nina in a row.
- The weakening rainfall activity since November should also be good for milk
- Waterlogged fields from incessant rains do not allow fodder to grow for animals to graze.
- Farmers have been suffering fodder shortages and increased feed costs, forcing diaries to pay more for milk and pass it on to consumers.
- That should ease somewhat with bumper crops of soybean, groundnut, cotton, and mustard (their oil cakes are protein ingredients in cattle and poultry feed) and also maize (a source of energy).
7. Concerns
- Indian Meteorological Department forecasted above-normal maximum temperatures during the winter season over most parts of northwest India, east and northeast India, and many parts of Central India.
- This is not happy augury either for wheat or mustard.
- Last year wheat was affected by a sudden spike in temperatures from mid-March when the crop had just entered the grain-filling stage.
For Prelims & Mains
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For Prelims: MSP, Consumer Price Index, Food Price Index, Kharif crops, Rabi crops, RBI Monetary Policy Committee For Mains:
1. Discuss the significance of the Monetary Policy Committee in maintaining inflation in the country. (250 Words)
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Source –Indian Express
THE DRAFT PATENTS (AMENDMENTS) RULES, 2023
1. Context
On September 20, 2024, Justice A.S. Chandurkar of the Bombay High Court broke a tie that emanated out of a previously split verdict and delivered a ruling in defence of the right to free speech. He declared unconstitutional an amendment made to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules). This law, had it been allowed to stand, would have given the Union government an Orwellian carte blanche to decide for us how any news about its operations ought to be carried on the Internet
2. What is Intellectual Property Right (IPR)?
Intellectual Property Rights (IPR) refer to a set of legal rights that are granted to individuals or entities for their creations or inventions of the mind. These rights are intended to protect the intellectual property of creators and innovators, providing them with exclusive rights to use, control, and benefit from their creations for a specified period. IPR is a fundamental concept in law and business, and it encompasses various forms of intellectual property, including:
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Copyright: Copyright is a form of IPR that protects original literary, artistic, and creative works such as books, music, films, software, and visual art. It grants the creator the exclusive right to reproduce, distribute, display, and perform their work for a certain period, typically the creator's lifetime plus 50 to 70 years.
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Patents: Patents are granted to inventors for new and useful inventions or processes. They provide exclusive rights to make, use, and sell the invention for a specified period, usually 20 years from the date of filing.
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Trademarks: Trademarks protect distinctive signs, symbols, names, and logos used to identify goods and services. They help consumers distinguish products or services from those of competitors. Trademark protection can be renewed indefinitely as long as the mark remains in use and distinctive.
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Trade Secrets: Trade secrets encompass confidential and proprietary information, such as manufacturing processes, formulas, and customer lists, that provide a competitive advantage. Unlike patents, trade secrets have no set duration and remain protected as long as they are kept confidential.
- Industrial Designs: Industrial designs protect the visual design or aesthetic aspects of a product, such as its shape, color, or ornamentation. They provide exclusive rights to use the design for a specified period.
- Database Rights: Some jurisdictions provide protection for databases containing significant investment in data collection and organization. This protection prevents unauthorized extraction or reutilization of the database content.
3. What are Patents?
A patent is a form of intellectual property right (IPR) that grants inventors and creators exclusive rights to their inventions or discoveries for a specified period.
Patents are a legal means to protect and incentivize innovation by providing inventors with the exclusive right to make, use, sell, and license their inventions.
In return for disclosing their invention to the public, patent holders are given a limited monopoly over their invention, which typically lasts for 20 years from the date of filing the patent application.
Patents in India are governed by “The Patent Act 1970,” which was amended in 2005 to comply with TRIPS (Trade-Related Aspects of Intellectual Property Rights)
3.1.Criteria for issuing patents in India
In India, like in many other countries, patents are granted based on specific criteria and requirements that an invention must meet. The criteria for issuing patents in India are outlined in the Indian Patents Act, 1970. To be eligible for a patent in India, an invention must satisfy the following criteria:
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Novelty: The invention must be new and not previously disclosed or published anywhere in the world before the date of filing the patent application. This means that the invention should not have been part of the public domain or publicly known.
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Inventive Step (Non-Obviousness): The invention must involve an inventive step or a non-obvious improvement over existing knowledge or technology. In other words, it should not be an obvious development of existing knowledge or technology for a person skilled in the relevant field.
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Non-Patentable Subject Matter: The Patents Act also specifies several types of inventions and subject matter that are not eligible for patent protection, including:
- Inventions that are contrary to public order or morality.
- Inventions that could harm human, animal, or plant life or the environment.
- Methods of agriculture or horticulture.
- Methods of performing mental acts or playing games.
- Computer programs as such (though they may be patentable if they have a technical application).
4. Key Provisions of Draft Patents (Amendments) Rules, 2023
- Once a pre-grant opposition is filed, the Controller shall first decide the maintainability of representation filed and thereafter issue a notice to the Applicant
- The timeline for the Opposition Board to conduct examination of notice of opposition and submit a report is 2 months from the date on which documents were received [currently, 3 months]
- The draft Rules propose that the Annual Working Report (AWR) is to be filed in respect of every period of three financial years starting from the financial year commencing immediately after the financial year in which the patent was granted [currently this is to be filed for every financial year].
- The draft amendments propose to reduce the time period for requesting examination of a patent application from 48 months to 31 months. This is expected to expedite the patent examination process.
- The draft amendments propose to remove the requirement for patent holders to disclose the manufacturing location and price of their patented products. This is expected to reduce the burden on patent holders and to promote innovation.
5. Way forward
The Patents Act, 1970 is the primary legislation governing patents in India. It was enacted in 1970 and has been amended several times since then, most recently in 2023.
The Patents Act, 1970 is the primary legislation governing patents in India. It provides the legal framework for the grant and protection of patents in the country. The Act has been amended several times to align with international standards and to address changing needs and circumstances
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Previous Year Questions
1. How is the Government of India protecting traditional knowledge of medicine from patenting by pharmaceutical companies? (UPSC 2019) 2. In a globalised world, intellectual property rights assume significance and are a source of litigation. Broadly distinguish between the terms – copyrights, patents and trade secrets. (UPSC 2014) |
Source: The Hindu
MONETARY POLICY COMMITTEE (MPC)
1. Context
The central government on Tuesday reconstituted the Monetary Policy Committee (MPC) ahead of the monetary policy review of the Reserve Bank of India (RBI) on October 7-9.
2. What is Monetary policy?
Monetary policy refers to the actions and strategies undertaken by a country's central bank to control and regulate the supply of money, credit availability, and interest rates in an economy. Its primary goal is to achieve specific economic objectives, such as price stability, full employment, and sustainable economic growth.
Central banks use various tools to implement monetary policy, including:
Interest Rates: Adjusting the interest rates at which banks lend to each other (known as the federal funds rate in the United States) influences borrowing and spending in the economy.
Open Market Operations: Buying or selling government securities in the open market to regulate the money supply. When a central bank buys securities, it injects money into the system, and when it sells them, it reduces the money supply.
Reserve Requirements: Mandating the amount of reserves banks must hold, affecting their ability to lend money.
By influencing the availability and cost of money, central banks aim to stabilize prices, control inflation, encourage or discourage borrowing and spending, and promote economic growth. However, the effectiveness of monetary policy can be influenced by various factors such as global economic conditions, fiscal policies, and market expectations.
3.What is the primary objective of the monetary policy?
The primary objective of monetary policy typically revolves around maintaining price stability or controlling inflation within an economy. Central banks often set an inflation target, aiming to keep it at a moderate and steady level. Stable prices help in fostering confidence in the economy, encouraging investment, and ensuring that the value of money remains relatively constant over time.
However, while controlling inflation is often the primary goal, central banks might also consider other objectives, such as:
Full Employment: Some central banks have a secondary objective of supporting maximum employment or reducing unemployment rates.
Economic Growth: Encouraging sustainable economic growth by managing interest rates and credit availability to stimulate or cool down economic activity.
Exchange Rate Stability: In some cases, maintaining stable exchange rates might be an important consideration, especially for countries with open economies heavily reliant on international trade.
These additional objectives can vary depending on the economic conditions, priorities of the government, and the central bank's mandate. Nonetheless, ensuring price stability is typically the fundamental goal of most monetary policies, as it forms the basis for a healthy and growing economy.
4. Monetary Policy Committee (MPC)
- In line with the amended RBI Act, 1934, Section 45ZB grants authority to the central government to establish a six-member Monetary Policy Committee (MPC) responsible for determining the policy interest rate aimed at achieving the inflation target.
- The inaugural MPC was formed on September 29, 2016. Section 45ZB stipulates that "the Monetary Policy Committee will ascertain the Policy Rate necessary to meet the inflation target" and that "the decisions made by the Monetary Policy Committee will be obligatory for the Bank."
- According to Section 45ZB, the MPC comprises the RBI Governor as the ex officio chairperson, the Deputy Governor overseeing monetary policy, a Bank official nominated by the Central Board, and three individuals appointed by the central government.
- The individuals chosen by the central government must possess "capabilities, ethical standing, expertise, and experience in economics, banking, finance, or monetary policy" (Section 45ZC)
5.Monetary Policy Committe and Inflation
- The Monetary Policy Committee (MPC) plays a crucial role in managing inflation through its decisions on the policy interest rate.
- When inflation is too high, the MPC might decide to increase the policy interest rate. This action aims to make borrowing more expensive, which can reduce spending and investment in the economy.
- As a result, it could help decrease demand for goods and services, potentially curbing inflation.
- Conversely, when inflation is too low or the economy needs a boost, the MPC might decrease the policy interest rate.
- This move makes borrowing cheaper, encouraging businesses and individuals to spend and invest more, thus stimulating economic activity and potentially raising inflation closer to the target level.
- The MPC's goal is to use the policy interest rate as a tool to steer inflation toward a target set by the government or central bank.
- By monitoring economic indicators and assessing the current and expected inflation levels, the MPC makes informed decisions to maintain price stability within the economy
6. Way forward
With more than half of the current financial year witnessing positive developments in the economy, the full financial year should conclude as projected with a strong growth performance and macroeconomic stability. Yet risks on the downside persist. Inflation is one of them that has kept both the government and the RBI on high alert. Financial flows in the external sector also need constant monitoring as they impact the value of rupee and the balance of payments. A fuller transmission of the monetary policy may also temper domestic demand
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For Prelims: Economic and Social Development
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
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Previous Year Questions
1. Consider the following statements: (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: C
2. Concerning the Indian economy, consider the following: (UPSC 2015)
Which of the above is/are component(s) of Monetary Policy? (a) 1 only (b) 2, 3 and 4 (c) 1 and 2 (d) 1, 3 and 4 Answer: C 3. An increase in Bank Rate generally indicates: (UPSC 2013) (a) Market rate of interest is likely to fall. (b) Central bank is no longer making loans to commercial banks. (c) Central bank is following an easy money policy. (d) Central bank is following a tight money policy. Answer: (d) 4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 1. It decides the RBI's benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below: A. 1 only B. 1 and 2 only C. 3 only D. 2 and 3 only Answer: A |
Source: Indianexpress
SPECIAL STATUS OF LADAKH
1. Context
Climate activist Sonam Wangchuk was detained on the Delhi border on Monday night as he led a group of protesters to petition the Central government for the inclusion of Ladakh in the Sixth Schedule of the Constitution among other demands for autonomy to the region. Similar demands have been raised in Arunachal Pradesh and Manipur. These discussions relate to special provisions for various ethnic groups in the Constitution.
2. Asymmetrical federalism
Asymmetrical federalism is a form of federalism in which different regions or states within a federation have varying degrees of autonomy and powers. In this system, certain regions may possess greater legislative, administrative, or fiscal powers than others, reflecting the unique cultural, historical, or political circumstances of those regions
The Indian Constitution adopts a model of asymmetrical federalism, meaning that certain states and regions have greater autonomy compared to others. Unlike symmetrical federations such as the U.S. or Australia, where all states have equal powers and autonomy, India grants specific states and areas additional autonomy or special provisions under its Constitution
3. Fifth and Sixth Schedules of the Indian Constitution
- Tribal communities in India largely maintained their independence from earlier Muslim rulers, as their customary laws and lifestyles were left undisturbed. It wasn't until British rule that their traditional way of life began to change.
- The British introduced laws and forest policies that disrupted tribal control over forests and ancestral lands, limiting their rights and restricting their movement within forests. This led to significant tribal uprisings, such as the Kol rebellion (1831-32), the Santhal revolt (1885), the Munda Rebellion (1899-1900), and the Bastar rebellion (1911).
- In response to these uprisings, the British adopted a policy of ‘isolation’ toward tribal communities, formalizing ‘excluded’ and ‘partially excluded’ areas under the Government of India Act of 1935.
- The ‘excluded’ areas, primarily located in the hilly regions of the northeast, were governed by the local Governor, while in ‘partially excluded’ areas—covering parts of today’s Bihar, Bengal, Orissa, Madhya Pradesh, Uttar Pradesh, and Maharashtra—central and provincial laws applied but with certain modifications as determined by the Governors.
- The Fifth and Sixth Schedules of the Indian Constitution are based on these earlier provisions. The Fifth Schedule applies to ‘scheduled areas’ declared by the President, with factors such as high tribal populations, compactness, administrative feasibility, and economic backwardness considered for designation.
- Currently, 10 states have these ‘scheduled areas,’ where Tribes Advisory Councils (TAC) are established. These TACs, composed mostly of tribal legislators, advise on the welfare of Scheduled Tribes (STs), while the Governor, with central approval, regulates land distribution and moneylending in these areas. The Governor also holds the power to modify or exempt certain laws from applying to these regions.
- The Sixth Schedule applies to ‘tribal areas’ in Assam, Meghalaya, Mizoram, and Tripura, where Autonomous District Councils (ADC) have been formed. These ADCs, comprising 30 members, can make laws regarding land use, inheritance, customs, and more, with approval from the Governor.
- State laws are not applicable unless extended by the ADC. These councils manage local governance, including schools, healthcare, and infrastructure, and can impose taxes, grant licenses for mineral extraction, and oversee village courts for tribal disputes.
- While the Sixth Schedule grants greater autonomy to tribal areas through the ADCs, both the Fifth and Sixth Schedules aim to protect indigenous cultures and interests, while integrating these regions into mainstream development initiatives
4. Special Provisions of Northeastern States
- The Indian Constitution provides special provisions for certain northeastern states to address their unique social, cultural, and historical circumstances. These provisions, primarily outlined in Articles 371A to 371H and supplemented by the Fifth and Sixth Schedules, aim to protect tribal customs, local governance, and provide autonomy in specific areas
- In addition to the Fifth and Sixth Schedules, specific provisions for several northeastern states are outlined in Part XXI of the Constitution. These are found in Articles 371A (Nagaland), 371B (Assam), 371C (Manipur), 371F (Sikkim), 371G (Mizoram), and 371H (Arunachal Pradesh).
- These articles safeguard local customary laws and practices in Nagaland and Mizoram, require the formation of committees of MLAs from ‘Tribal Areas’ and ‘Hill Areas’ in Assam and Manipur, and assign special responsibilities to the Governors of Sikkim and Arunachal Pradesh for development and law and order
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The Indian Constitution provides special provisions for certain northeastern states to address their unique social, cultural, and historical circumstances. These provisions, primarily outlined in Articles 371A to 371H and supplemented by the Fifth and Sixth Schedules, aim to protect tribal customs, local governance, and provide autonomy in specific areas. Here's an overview of these special provisions: Nagaland (Article 371A)
Assam (Article 371B)
Manipur (Article 371C)
Sikkim (Article 371F)
Mizoram (Article 371G)
Arunachal Pradesh (Article 371H)
Sixth Schedule
Fifth Schedule
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5.Possible Solutions
- Despite the constitutional provisions, further reforms are still necessary. First, the autonomy granted to areas under the Fifth and Sixth Schedules often exists more in theory than in practice.
- In the Fifth Schedule areas, regulations made by the Governor require approval from the Central government, while in the Sixth Schedule areas, laws created by the Autonomous District Councils (ADCs) must be approved by the State Governor.
- Political differences between the Centre, State, and ADCs can hinder this autonomy when different parties are in power. Clear and consistent guidelines are needed to ensure that the true spirit of the Fifth and Sixth Schedules is upheld.
- Second, many Scheduled Tribe (ST) communities across the country, including those within and outside the 10 states covered under the Fifth Schedule, have not been designated as ‘scheduled areas,’ which denies them constitutional protections. These areas should be notified as ‘scheduled areas’ after proper review.
- Third, the 125th Constitutional Amendment Bill (2019), which is pending in the Rajya Sabha, aims to grant greater financial, executive, and administrative powers to the 10 existing ADCs.
- The Union government has agreed to form a committee led by the Minister of State for Home Affairs to address the issues delaying the bill's passage. This process should be expedited to ensure all stakeholders are satisfied.
- Fourth, the assemblies of Arunachal Pradesh and the Manipur Hill Area Committee have passed resolutions to be included in the Sixth Schedule, and there is also a growing demand for the Union Territory of Ladakh to be included. These requests should be carefully examined and addressed promptly to protect the rights of tribals in these areas.
- Lastly, the implementation of the Forest Rights Act, 2006, which recognizes and secures forest rights for tribals, must be fully enforced across the country, including in both Fifth and Sixth Schedule areas
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For Prelims: Special Category Status, 14th Finance Commission, Bihar Castebased Survey, Raghuram Rajan Committee,
For Mains:
1. Examine the reasons behind the Central Government's reluctance to grant SCS to additional states. Discuss the implications of the 14th Finance Commission's recommendations in this regard. (250 Words)
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Previous Year Questions
1. The status of "Special Category States" is given to certain states to target the fund flow for better-balanced growth. Which of the following states fall under this category? (UPSSSC Lower PCS Prelims 2016)
1. Rajasthan
2. Uttarakhand
3. Bihar
4. Jammu & Kashmir
5. Himachal Pradesh
6. Jharkhand
Select the correct answer using the codes given below:
A. 1, 5 and 6 B. 2, 4 and 5 C. 3, 5 and 6 D. 1, 3 and 6
2. With reference to the Fourteenth Finance Commission, which of the following statements is/are correct? (UPSC 2015)
1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
2. It has made recommendations concerning sector-specific grants.
Select the correct answer using the code given below.
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
3. Based on the Sixth Schedule of Indian Constitution, with respect to the tribal areas of Assam, Meghalaya, Tripura and Mizoram Which of the following can the Governor of a State do? (DSSSB PRT General Section Officer 2019)
1. Can create a new autonomous district
2. The area of atonomous district can be increased
A. 1 Only B. 2 Only C. Both 1 and 2 D. Neither 1 nor 2
4. If a particular area is brought under the Fifth Schedule of the Constitution of India, which one of the following statements best reflects the consequence of it? (UPSC 2022)
A. This would prevent the transfer of land of tribal people to non-tribal people.
B. This would create a local self-governing body in that area.
C. This would convert that area into a Union Territory.
D. The State having such areas would be declared a Special Category State.
5. Article _____ of the Constitution of India deals with provisions related to the administration and control of Scheduled Areas and Scheduled Tribes. (SSC CGL 2020)
A. 222(1) B. 244(1) C. 244(2) D. 222(2)
6. The National Commission for Backward Classes (NCBC) was formed by insertion of Article ______ in the Constitution of India. (SSC CGL 2020)
A. 328B B. 338A C. 338B D. 328A
Answers: 1-A, 2-A, 3-C, 4-A, 5-B, 6-B
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Source: The Hindu
SWACHH BHARAT 2.0
1. Context
Swachh Bharat Mission, one of the first programmes announced by Prime Minister Narendra Modi after he took office in 2014, completes 10 years on October 2. While announcing the “Clean India campaign”, the PM had said: “A clean India would be the best tribute India could pay to Mahatma Gandhi on his 150th birth anniversary in 2019
2. Impacts of Poor Sanitation
- Exposure to contaminated drinking water and food with pathogen-laden human waste is a major cause of diarrhea and can cause cholera, trachoma, intestinal worms, etc, leading to the “stunting” of huge swathes of our children.
- Poor hygiene and waste management practices also impact the environment with untreated sewage flowing directly into water bodies and affecting coastal and marine ecosystems, contaminating soil and air, and exposing millions to disease.
- A study by the World Bank states that the absence of toilets and conventional sanitation costs India 6.4 percent of its GDP in 2006.
- The economic impact of poor sanitation for India is at least $38.5 billion every year under health, education, access time, and tourism.
3. Swachh Bharat Mission (SBM)
- The launch of the Swachh Bharat Mission (SBM) had a unique goal — to achieve universal sanitation coverage and to make the country Open Defecation Free (ODF).
- By offering financial incentives for building household toilets, as well as community toilets for slums and migrant populations, the government gave a huge fillip to the toilet infrastructure.
- To bring changes to the age-old idea that toilets in the home were unclean, the government ran several programs with the participation of the private sector and NGOs to educate the population on the benefits of ODF in what is acclaimed as one of the largest behavior change programs in the world. From 2014 to 2020, more than 10 crore toilets were constructed. The country declared itself ODF on October 2, 2019.
4. Swachh Bharat Mission 2.0 (SBM 2.0)
The second phase of the project, which commenced in 2020 and is expected to run till 2025, has set even more ambitious targets -sustaining the achievements of phase 1 and Ensuring that treatment of both liquid and solid waste is achieved through the help of technology and private sector engagement.
5. Light House Initiative (LHI)
The Lighthouse Initiative (LHI) commissioned by the Ministry of Drinking Water and Sanitation as part of the Azadi ka Amrit Mahotsav is to be implemented through PPP, across villages in 75 Gram panchayats in 15 states in Phase 1.
LHI is based on the principle of inclusive sanitation and leaving no one behind.
5.1 Aim:
LHI aims to effectively implement solid and liquid waste management structures by employing a participatory and consultative approach through mobilization of the village communities, corporates, district and block administration, and gram panchayat officers.
5.2 Significance of Light House Initiative (LHI)
- Joint ownership and accountability between local governments, communities, and corporates will ensure the success of the initiative.
- Managing household and plastic waste as well as wastewater at a village level, defining and implementing solutions to convert waste to achieve a remunerative return not only creates hygienic surroundings for the communities but allows them to become economically self-sufficient in the medium to long term.
- Recovery of precious grey water through minimal treatment and treatment of sewage helps tackle scarce water resources, encouraging reuse and conserving water bodies.
6. India Sanitation Coalition (ISC)
- The India Sanitation Coalition (ISC) is a multi-stakeholder platform that creates meaningful collaborations.
- These stakeholders include the private sector, government, financial institutions, civil society groups, media, donors, etc.
- ISC is recognized as the official intersection between the government and the private sector for engagement in helping build solid and liquid waste management infrastructure sustainably.
- In choosing to partner with ISC on the LHI initiative and the early batch of corporates that have come forward such as ITC, Jindal Steel and Power, JSW, Nayara, HCL, and foundations such as Ambuja Cement, Tata Trusts and Aga Khan Trust, the Department of Drinking Water and Sanitation has recognized the benefits of working with the private sector.
- Understanding the on-ground need for solid and liquid waste management infrastructure has included activities such as the construction of soak pits, waste stabilization ponds, drainage channels, compost pits, collection and segregations sheds, and biogas plants as part of the Rs1,40,881 crore that will be provided over the next five years. The private sector will supplement this through CSR funding.
6.1 Management and Technology Expertise
- The ISC will continue to focus on the government’s position on the thematic interlinkages between WASH and sectors such as health, education, gender, nutrition, and livelihoods.
- This will include urban and rural challenges and create viable programs where government funding will be used primarily for infrastructure building and the private sector comes in as a strategic partner providing expertise in management and technology.
For Prelims & Mains
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For Prelims: Swachh Bharat Mission 2.0, Light House Initiative (LHI), India Sanitation Coalition (ISC), Sustainable Development Goals (SDG).
For Mains:1. What is Swachh Bharat Mission and explain the impact and achievements of the Swachh Bharat Mission-U and AMRUT?
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Source: The Indian Express
WORLD TRADE ORGANISATION (WTO)
1. Context
Indian Institute of Foreign Trade organizes regional conference of Asian and African chair holders of WTO chairs Programme in New Delhi
2. What is WTO?
- The World Trade Organization is the only international organization that deals with the rules of trade between countries.
- The WTO officially commenced in 1995 under the Marrakesh Agreement signed by 124 nations, replacing the General Agreement on Tariffs and Trade (GATT).
- Currently, it has 164 members and 23 observer governments (like Iran, Iraq, Bhutan, Libya, etc).
- According to its rules, all decisions are taken through consensus and any member can exercise a veto.
- It aims to promote free trade, which is done through trade agreements that are discussed and signed by the member states.
- The WTO also provides a forum for countries to negotiate trade rules and settle economic disputes between them.
3. What is WTO's Ministerial Conference?
- The Ministerial Conference is the WTO’s top decision-making body and usually meets every two years.
- All members of the WTO are involved in the Ministerial Conference and they can take decisions on all matters covered under any multilateral trade agreements.
- The WTO’s 12th Ministerial Conference was held in Geneva from 12-17 June.
- It was supposed to end on 15 June, but with intensifying negotiations, the conference was extended by two days.
4. Key takeaways from the meeting
4.1 Curtailing harmful fishing subsidies
- The WTO passed a multilateral agreement that would curb ‘harmful’ subsidies on illegal, unreported, and unregulated fishing for the next four years, to better protect global fish stocks.
- Since 2001, member states have been negotiating the banning of subsidies that promote overfishing.
- The current agreement, which establishes new trading rules, is the second multilateral agreement in WTO history.
- India and other developing countries were able to win some concessions in this agreement.
4.2 Global food security
- Members agreed to a binding decision to exempt food purchased by the UN's World Food Programme (WFP) for humanitarian purposes, from any export restrictions.
- In light of the global food shortages and rising prices caused by the war between Ukraine and Russia, the group's members issued a declaration on the importance of trade in global food security and that they would avoid bans on food exports.
- However, countries would be allowed to restrict food supplies to ensure domestic food security needs.
- India's key demand to allow it to export food from its public stockholdings to other countries will reportedly be discussed in the next Ministerial Conference in 2023.
4.3 E-Commerce transactions
- Members agreed to continue the long-standing moratorium on customs duties on e-commerce transmissions.
- It will be continued until the subsequent Ministerial Conference or until March 31, 2024, depending on whichever comes first.
4.4 Covid-19 vaccine production
- WTO members agreed to temporarily waive intellectual property patents on Covid19 vaccines without the consent of the patent holder for 5 years so that they can more easily manufacture them domestically.
- The current agreement is a watered-down version of the original proposal made by India and South Africa in 2020.
- They had wanted broader intellectual property waivers on vaccines, treatments, and tests.
- Rich pharmaceutical companies had strongly opposed this, arguing that IPs do not restrict access to Covid vaccines and that the removal of patent protections gives researchers that quickly produced life-saving vaccines, a negative message.
- The waiver agreed upon by the WTO was criticized by advocacy groups for being narrow in scope, as it did not cover all medical tools like diagnostics and treatments.
5. Significance of the Recent Agreements
- The fisheries agreement is of immense significance as it is the first time that members agreed with environmental sustainability at its heart.
- It will also help in the protection of the livelihoods of the 260 million people who depend directly or indirectly on marine fisheries. It is only the second multilateral agreement on global trade rules struck in its 27-year history.
- Second, the exemption of WFP's food from tariffs is vital for promoting global food security, especially in light of the global food shortages and rising prices caused by the war between Ukraine and Russia.
- Third, the temporary waiver will contribute to ongoing efforts to concentrate and diversify vaccine manufacturing capacity so that a crisis in one region does not leave others cut off.
6. Issues surrounding WTO
6.1 The burden for Poor countries
- The WTO rules include many Non-trade subjects as well. The subjects like environment, labor standards, fossil fuel subsidies, plastic pollution, and transparency in government procurement have been brought into the fold of the WTO.
- This is expected to raise costs for the poor and developing countries and impact the competitiveness of their goods.
- For instance, a poor country exporting cotton shirts must first meet high environmental standards at home. This will only raise costs and cut exports from poor countries.
6.2 Trade wars
- The US administration imposed steep tariffs in January 2018 on China alleging IP violations.
- In December 2019 the US also blocked the appointment of new nominees to WTO’s appellate body. This has paralyzed the WTO as a judge and enforcer of global trade rules.
6.3 Lack of consensus
- The developed nations’ game plan is to put the old obligations on the back burner and push the WTO to form rules on new areas like e-commerce.
- It is an area where the US firms have a clear edge.
- Most WTO member countries want them to first deliver on the agreed issues like reduction in agriculture subsidies.
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For Prelims: General Agreement on Tariffs and Trade (GATT), Marrakesh Agreement, World Trade Organisation (WTO), 12th Ministerial Conference of WTO, and UN's World Food Programme (WFP).
For Mains: 1. What have been the recent issue related to dispute settlement at WTO? Have the policies at WTO worked against the interest of emerging economies like India?(250 Words)
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Previous year Questions1. In the context of which of the following do you sometimes find the terms 'amber box, blue box, and green box' in the news? (UPSC 2016)
A. WTO affairs
B. SAARC affairs
C. UNFCCC affairs
D. India-EU negotiations on FTA
Answer: A
2. In the context of the affairs which of the following is the phrase "Special Safeguard Mechanisms" mentioned in the news frequently? (UPSC 2010)
A. United Nations Environment Program
B. World Trade Organization Agreement
C. ASEAN-India Free Trade
D. G-20 Summits
Answer: B
3. Consider the following statements: (UPSC 2017)
1. India has ratified the Trade Facilitation Agreement (TFA) of the WTO.
2. TFA is a part of WTO's Bali Ministerial Package of 2013.
3. TFA came into force in January 2016
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: A
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Source: The Indian Express
