2. About semiconductor

• A semiconductor is a material that has an electrical conductivity that falls between that of a conductor, such as metallic copper, and an insulator, such as glass.
• Semiconductors are the foundation of modern electronics, including transistors, diodes, and integrated circuits.
• They are used in a wide range of applications, from simple electronic devices like calculators to complex systems like computers and smartphones.
• Semiconductors can be made from a variety of materials, including silicon, germanium, and gallium arsenide, and their properties can be modified by doping, which involves adding impurities to the material to change its electrical properties.

3. The most basic component of a semiconductor chip

• The most basic component of a semiconductor chip is the transistor. A transistor is a three-terminal semiconductor device that can amplify or switch electronic signals and electrical power.
• It is composed of semiconductor material, usually silicon, with at least three terminals for connection to an external circuit.
• The terminals are labelled as the emitter, base, and collector. The transistor's ability to amplify or switch electronic signals makes it an essential building block in modern electronics, including integrated circuits and microprocessors.

4. The supply chain for semiconductors

The supply chain for semiconductors is a complex network of companies involved in the design, manufacturing, testing, packaging, and distribution of semiconductor products.

The key players in the semiconductor supply chain include

• These companies are responsible for designing semiconductor chips, including integrated circuits (ICs) and microprocessors. They work with clients to understand their requirements and develop custom designs.
• Foundries are specialized manufacturing facilities that produce semiconductor chips based on the designs provided by design houses. They use advanced fabrication processes, such as photolithography, to create the intricate patterns and structures on the chips.
• Fabless Semiconductor Companies focus on designing semiconductor chips but do not have their own manufacturing facilities. Instead, they outsource the production of their chips to foundries.
• Integrated Device Manufacturers (IDMs) are companies that design and manufacture their own semiconductor chips. They have their own manufacturing facilities and can produce a wide range of chips, from memory chips to microprocessors.
• Once the semiconductor chips are manufactured, they need to be packaged and tested before they can be used in electronic devices. Packaging companies assemble the chips into packages and test them to ensure they meet the required specifications.
• Distributors are responsible for selling semiconductor products to customers, including electronic device manufacturers and end-users. They maintain an inventory of semiconductor products and ensure they are delivered to customers on time.
• These companies use semiconductor chips to manufacture electronic devices, such as smartphones, computers, and automotive electronics. They integrate the chips into their products and sell them to end-users.
• End-users are the final consumers of electronic devices that contain semiconductor chips. They use these devices for various applications, such as communication, entertainment, and productivity.

5. About India’s first semiconductor fabrication plant

• India's first semiconductor fabrication plant (or "fab") is a significant development with the potential to transform the country's electronics manufacturing sector. 
• The project is a collaboration between India's Tata Group and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC). The plant will be located in Dholera, Gujarat.
• The estimated cost of the project is around Rs 91,000 crore (approx. USD 11 billion).
• It will produce chips using various process nodes, including mature nodes like 28nm, 40nm, and 55nm. These nodes are highly relevant for various applications.
• This plant marks India's entry into the high-tech arena of semiconductor manufacturing, a sector dominated by a few global players.

Potential Benefits

• India heavily relies on imported chips. This fab could significantly reduce this dependence, aiding the "Make in India" initiative.
• The plant could act as a catalyst for the growth of India's electronics manufacturing ecosystem.
• It is expected to generate numerous direct and indirect job opportunities in the high-tech sector.
• The fab will contribute to India's technological self-reliance and strategic positioning in the global semiconductor landscape.

6. The current challenges of the semiconductor industry in India?

The semiconductor industry in India faces several challenges that hinder its growth and competitiveness.

The key challenges include

• India lacks the necessary infrastructure for semiconductor manufacturing, such as advanced fabrication facilities (fabs), clean rooms, and testing facilities. This limits the country's ability to produce high-quality semiconductor chips and compete with other countries in the global market.
• The semiconductor industry requires significant investment in research and development, infrastructure, and skilled labour. However, India has historically invested less in the semiconductor industry compared to other countries, such as China, South Korea, and Taiwan.
• The semiconductor industry requires highly skilled engineers and technicians with expertise in areas such as chip design, fabrication, testing, and packaging. However, India faces a shortage of skilled labour in these areas, which hampers the growth of the industry.
• The Indian government has not provided sufficient support to the semiconductor industry, including tax incentives, subsidies, and funding for research and development. This has limited the growth of the industry and discouraged investment.
• India faces stiff competition from other countries, such as China, South Korea, and Taiwan, which have well-established semiconductor industries. These countries have invested heavily in semiconductor manufacturing and have a competitive advantage in terms of technology, infrastructure, and skilled labour.
• The semiconductor industry relies heavily on intellectual property rights (IPR) to protect its innovations and technologies. However, India has weak IPR laws and enforcement mechanisms, which makes it difficult for semiconductor companies to protect their intellectual property and compete in the global market.

DRUG-RESISTANT TB

1. Context 

Multidrug-resistant tuberculosis (MDR-TB) is a strain of the TB disease in which the infecting tuberculosis germs are resistant to the effects of rifampicin and isoniazid, two of the most potent drugs available for TB treatment. Being infected with such TB strains carries up to a 30-40% risk of death, making MDR-TBa serious, life-threatening illness

2. About drugresistant TB

• As of 2017, India accounted for around one-fourth of the world's burden of multidrug-resistant (MDR) TB and of extensively drug-resistant (XDR) TB and extensively drug-resistant (XDR) TB.
• MDR TB resists treatment by at least two frontline drugs in TB treatment, isoniazid and rifampicin.
• XDR TB resists these two drugs, fluoroquinolones, and any second-line injectable drug.
  XDR TB is rarer than MDR TB there were 1, 24, 000 cases of the latter in India (2021) versus 2, 650 cases of the former (2017).
• TB incidence in India has been on the decline, but MDR TB and XDR TB endanger initiatives to locally eradicate the disease.
• In the first two years of the pandemic, there were reports that TB treatment was hit by disrupted supply chains, availability of healthcare workers for non-pandemic work, and access to drug distribution centres.
• A peer-reviewed 2020 study found that the incidence of MDR TB was "strongly correlated with treatment failure and spread through contact and not to treatment compliance".

3. Treatment for drug-resistant TB

• TB is an infection of the bacterium Mycobacterium tuberculosis in the lungs, but often in other organs as well.
• It can be treated by strictly adhering to the doses and frequencies of drugs prescribed by a physician.
• Deviations from this schedule can lead the bacteria to become drug-resistant.
• Yet they happen because the drugs often have side effects that diminish the quality of life and or because patients haven't been afforded access to the requisite drugs on time.
• Drugresistant TB is harder to treat. One important option for those diagnosed with pulmonary MDR TB is bedaquiline.
• In 2018, the World Health Organisation replaced two injectable drugs for MDR TB with an oral regimen that included bedaquiline.
• At this time, bedaquiline had not completed phase III Trials.
• The recommendation was based on smaller studies, outcomes in TB elimination programmes worldwide, the difficulty of treating MDR TB and close monitoring of patients receiving the drug.

4. Effectiveness of Bedaquiline

• Typically, bedaquiline needs to be taken for six months: at a higher dose in the first two weeks followed by a lower dosage for 22 weeks.
• This period is shorter than other treatment routines for pulmonary MDR TB, which can last 924 months.
• One phase II Clinical trial observed that culture conversion (turning a patient's sputum culture from positive to negative) "at 24 weeks was durable and associated with a high likelihood of response at 120 weeks", due to bedaquiline.
• Unlike Second-line treatment options that are injected and can have severe side effects, like hearing loss, bedaquiline is available as tablets and is less harmful, although it has potential side effects of its own.
• Studies until 2018 found that it could be toxic to the heart and the liver. This is part of why it is recommended only as a treatment of last resort.
• India's Health Ministry has guidelines for bedaquiline use as part of the Programmatic Management of MDR TB under the National TB Elimination Programme.
• The WHO's decision revitalised a debate about the ethics of making a much-needed but insufficiently tested drug available quickly versus lowering the safety threshold for pharmaceutical companies producing drugs for desperate patients.

5. Reasons for the rejection of the Patent application

J&J's patent application was for a fumarate salt of a compound to produce bedaquiline tablets.

Two groups opposed the patent:

1. Network of Maharashtra people living with HIV and

2. Nandita Venkatesan and Phumeza Tisile, both TB survivors, are supported by Medecins Sans Frontieres.

• Both groups argued that J&J's method to produce a "Solid pharmaceutical composition" of bedaquiline is "obvious, known in the art" and doesn't require an "inventive step".
• According to the Indian Patent Act 1970 Section 2 (1) (ja), an "inventive step" is an invention that is "not obvious to a person skilled in the art".
• The latter also contended that the current application drew significantly from a previous patent, WO 2004/011436, which discussed a similar compound on which bedaquiline is based and whose priority date (2002) well preceded the new application.
• The Patent Office rejected the application on these and other grounds, including Sections 3d and 3e of the Act.
• These pertain to the "mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance" and "a substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof", respectively, which are not patentable.

6. Significance of the rejection 

• India has the largest population of people living with drug-resistant TB.
• J&J's patent on bedaquiline meant the drug cost $400 (revised to $340 in 2020) per person, plus the cost of other drugs.
• The rejection is expected to lower the cost of bedaquiline by up to 80 per cent.
• So far, the Indian government has directly procured and distributed the drug through Statelevel TB programmes.
• After July 2023, manufacturers of generic drugs such as Lupin will be able to produce generic versions of bedaquiline.
• The argument based on WO 2004/011436 is also relevant to "evergreening a strategy where a patent owner continuously extends their rights and or applies multiple patents for the same entity. Indian law disallows this.

For Prelims & Mains

For Prelims: TB, Johnson & Johnson, bedaquiline, XDR TB, MDR TB, World Health Organisation, Indian Patent Act 1970,  For Mains: 1. How will Drug Resistant TB help the treatment of multi­drug­resistant tuberculosis? What are the costs and production implications?  What is India’s target year to eliminate TB? (250 Words)

 

Previous Year Questions

Read the following passages and answer the question, your answers to these items should be based on the passages only. A majority of the TB infected in India are poor and lack sufficient nutrition, suitable housing and have little understanding of prevention. TB then devastates families, makes the poor poorer, particularly affects women and children, and leads to ostracisation and loss of employment. The truth is that even if TB does not kill them, hunger and poverty will. Another truth is that deep-seated stigma, lack of counselling, expensive treatment and lack of adequate support from providers and family, coupled with torturous side-effects demotivate patients to continue treatment - with disastrous health consequences. Which one of the following is the most logical, rational and crucial message conveyed by the above passage? (UPSC 2019) TB is not a curable disease in Indian circumstances. Curing TB requires more than diagnosis and medical treatment. Government's surveillance mechanism is deficient, and poor people have no access of treatment. India will be free from diseases like TB only when its poverty alleviation programmes are effectively and successfully implemented. Answer: 2 Curing TB requires more than diagnosis and medical treatment.

 

Source: The Hindu

 

RUPEE EXCHANGE RATE

 

 

1. Context

 

The Indian rupee recently registered a sharp devaluation with respect to the dollar after remaining stable for over two years or so.

 

 

2. What is the rupee exchange rate?

The rupee's exchange rate with the dollar signifies the quantity of rupees needed to purchase one US dollar. This metric is crucial not only for acquiring American goods but also for engaging in trade involving other commodities and services, like crude oil, which is conducted in US dollars. When the rupee depreciates, the cost of importing goods and services increases. However, for those exporting products and services, particularly to the United States, the depreciation enhances the competitiveness of India's offerings by making them more affordable for foreign buyers

Exchange rate for 1 Indian Rupee (INR) is as follows:

• United States Dollar (USD): 0.012011 INR
• Euro (EUR): 0.011223 INR
• British Pound (GBP): 0.009784 INR
• Australian Dollar (AUD): 0.018827 INR
• Singapore Dollar (SGD): 0.016343 INR
• Swiss Franc (CHF): 0.010845 INR
• Malaysian Ringgit (MYR): 0.056619 INR
• Japanese Yen (JPY): 1.824210 INR

3. Effects on rupee

• If the rupee experiences a faster depreciation rate than its long-term average, it surpasses the dotted line, and vice versa.
• Over the past couple of years, the rupee has demonstrated greater resilience than the long-term trend, but the current decline indicates a correction.
• When considering a diverse range of currencies, data indicates that the rupee has strengthened or appreciated against this basket.
• To clarify, while the US dollar has strengthened against various major currencies, including the rupee, the rupee, in contrast, has strengthened compared to many other currencies like the euro. For example, forex reserves have decreased by over $50 billion between September 2021 and now. Over these 10 months, the rupee's exchange rate with the dollar has declined by 8.7%, from 73.6 to 80.
• To provide context, historically, the rupee typically depreciates by around 3% to 3.5% in a year. Moreover, many experts anticipate further weakening of the rupee in the next 3-4 months, potentially falling to as low as 82 to a dollar.

4. What is rupee depreciation?

Rupee depreciation refers to a decrease in the value of a country's currency, specifically the Indian rupee in this context, in comparison to other currencies. It means that more units of the domestic currency are required to purchase a fixed amount of foreign currency, usually the US dollar. Depreciation can occur due to various factors, including changes in supply and demand for the currency in the foreign exchange market, economic conditions, inflation rates, and geopolitical events

When the rupee depreciates, it has several implications:

Import Costs: Imported goods and services become more expensive, as it takes more rupees to buy the same amount of foreign currency needed for these transactions. This can contribute to inflationary pressures in the economy.

Export Competitiveness: On the positive side, a depreciated rupee can make the country's exports more competitive in the global market. Foreign buyers find the country's products and services relatively cheaper, potentially boosting export volumes.

External Debt: Countries with significant external debt denominated in foreign currencies may face increased repayment burdens when their domestic currency depreciates. Servicing debt in stronger foreign currencies becomes more expensive.

Inflation: Depreciation can contribute to inflationary pressures by increasing the cost of imported goods and raw materials.

 

5. Effects on the Indian economy

• Due to a substantial portion of India's imports being priced in dollars, these imports will become more expensive.
• An illustrative example is the higher cost associated with the crude oil import bill. The increased expense of imports, in turn, will contribute to the expansion of the trade deficit and the current account deficit.
• This, in consequence, will exert pressure on the exchange rate. On the export side, the situation is more complex, as noted by Sen.
• In bilateral trade, the rupee has strengthened against many currencies. In exports conducted in dollars, the impact is contingent on factors such as how much other currencies have depreciated against the dollar.
• If the depreciation of other currencies against the dollar is greater than that of the rupee, the overall effect could be negative.

6. Way forward

Defending the rupee will simply result in India exhausting its forex reserves over time because global investors have much bigger financial clout. Most analysts believe that the better strategy is to let the rupee depreciate and act as a natural shock absorber to the adverse terms of trade

 

 

For Prelims: Inflation, Deflation, Depreciation, Appreciation For Mains: General Studies III: How does Depreciation of rupee affect Indian economy

 

Previous Year Questions 1. Which one of the following groups of items is included in India's foreign exchange reserves? (UPSC CSE 2013) A.Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries B.Foreign-currency assets, gold holdings of the RBI and SDRs C.Foreign-currency assets, loans from the World Bank and SDRs D.Foreign-currency assets, gold holdings of the RBI and loans from the World Bank Answer (B) 2.Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee? (UPSC CSE 2019) A.Curbing imports of non-essential goods and promoting exports B.Encouraging Indian borrowers to issue rupee-denominated Masala Bonds C.Easing conditions relating to external commercial borrowing D.Following an expansionary monetary policy Answer (D)

 

Source:indianexpress

 

TWO STATE SOLUTION

 

 

1. Context

Israel and Hamas reached a ceasefire deal to halt fighting in the Gaza Strip and exchange Israeli hostages for Palestinian prisoners

 

2. What is a Two State Solution?

 

The two-state solution refers to a proposed resolution to the Israeli-Palestinian conflict, envisioning the establishment of two separate sovereign states, Israel and Palestine, coexisting side by side within agreed-upon borders.

Key elements of the two-state solution typically include:

• Borders: Negotiating the borders between Israel and Palestine, which would likely be based on the pre-1967 lines (also known as the Green Line), with potential land swaps to accommodate demographic realities and security concerns.

• Jerusalem: Addressing the status of Jerusalem, which is considered a holy city by Jews, Christians, and Muslims. The two-state solution often proposes Jerusalem as the capital of both Israel and Palestine, with East Jerusalem serving as the capital of the Palestinian state.

• Security: Ensuring the security of both states, including mechanisms for demilitarisation, border security, and counterterrorism cooperation.

• Refugees: Resolving the issue of Palestinian refugees, who were displaced during the 1948 Arab-Israeli war and subsequent conflicts. The two-state solution typically involves compensation, resettlement, and/or return options for Palestinian refugees, while also acknowledging Israel's right to exist as a Jewish state.

• Settlements: Addressing the status of Israeli settlements in the occupied Palestinian territories. Many proponents of the two-state solution advocate for the dismantlement of Israeli settlements located outside of the agreed-upon borders of Israel.

3. Origin and History of Two-State Solution

• The origins of the two-state solution can be traced back to the 1930s during the period of British rule in Palestine.
• In 1936, the British government formed a commission led by Lord William Robert Peel, commonly known as the Peel Commission, to investigate the reasons behind the Arab-Jewish conflicts in Palestine.
• A year later, the commission recommended dividing Palestine into separate Jewish and Arab states. At that time, Jews constituted approximately 28% of the population of Palestine.
• According to the Peel Commission's proposal, the Arab state would encompass the West Bank, Gaza, and the Negev desert, while the Jewish state would include much of Palestine's coastline and the fertile Galilee region. However, the Arab population rejected this proposal.
• Following World War II, the United Nations Special Commission on Palestine (UNSCOP) presented another partition plan. This plan suggested dividing Palestine into three territories: a Jewish state, an Arab state, and an international zone for Jerusalem.
• Under the UNSCOP plan, Jews, who comprised about 32% of Palestine's population, were allocated 56% of the land.
• The partition plan was endorsed by the UN General Assembly (Resolution 181). Despite India's vote against it, the Arab nations rejected the plan, while the Zionist leadership of Jewish settlers in Palestine accepted it.
• Subsequently, on May 14, 1948, the Zionists unilaterally declared the establishment of the state of Israel.
• This declaration sparked the first Arab-Israeli war. By the time an armistice agreement was reached in 1949, Israel had seized approximately 22% more territory than initially proposed by the UN

4. International Legitimacy

 

• During the Six-Day War of 1967, Israel gained control of the West Bank and East Jerusalem from Jordan, the Gaza Strip and the Sinai Peninsula from Egypt, and the Golan Heights from Syria.
• Israel still holds authority over these territories, except for the Sinai, which it returned to Egypt following the 1978 Camp David Accords. In the 1960s, Palestinian nationalism gained momentum under the leadership of the Palestine Liberation Organization (PLO).
• Initially, the PLO sought the complete "liberation" of all of Palestine, but later accepted the two-state solution based on the borders of 1967.
• Israel initially dismissed any Palestinian claims to the land and labeled the PLO as a "terrorist" organization.
• However, following the 1973 Yom Kippur War, during which Egypt and Syria launched a surprise attack on Israel, Israel agreed to the Framework for Peace in the Middle East agreement at the Camp David Accords.
• As part of the Framework, Israel consented to establish an autonomous self-governing Palestinian authority in the West Bank and Gaza Strip and to implement UN Resolution 242, which calls for Israel to withdraw from all territories it occupied in 1967.
• The Framework laid the groundwork for the Oslo Accords, signed in 1993 and 1995, which formalized the two-state solution.
• Under the Oslo process, a Palestinian National Authority, serving as a self-governing body, was established in the West Bank and Gaza, and the PLO was internationally recognized as the representative body of the Palestinian people.
• The Oslo Accords held the promise of creating a sovereign Palestinian state coexisting peacefully alongside Israel. However, this promise has yet to be realized

5. What are the hurdles to achieving the two-state solution?

 

• he assassination of Israeli Prime Minister Yitzhak Rabin, a key architect of the Oslo Accords, in 1995, marked a turning point. The subsequent rise of a right-wing Israeli government and the Palestinian militant group Hamas, opposed to the agreements, further strained the peace process. Despite renewed diplomatic efforts, significant hurdles persist.
• One obstacle is the undefined borders. Israel's ongoing expansion through settlements in Palestinian territories clashes with Palestinian aspirations for a state based on the pre-1967 borders. The presence of hundreds of thousands of Israeli settlers who would need to be relocated creates a complex political challenge.
• Another issue is the contested status of Jerusalem. Both Palestinians, who view East Jerusalem as their capital, and Israelis, who claim the entire city, have deep religious and historical attachments to the city.
• The right of return for Palestinian refugees displaced in 1948 is another hurdle. International law supports their right to return, but Israel opposes it.
• These unresolved issues pose significant barriers to achieving a two-state solution in the Israeli-Palestinian conflict

6. Way Forward

While these are the structural factors that make the two-state solution complicated, on the ground, Israel’s rightwing leadership shows no willingness to make any concessions. Israel wants to continue the status quo — the status quo of occupation. The Palestinians want to break that status quo

 

 

For Prelims: GS II- Two State Solution, Conflict of Israel and Palestine For Mains: GS II - Current events of International relations, The Ongoing Conflict of Israel and Palestine

 

Previous Year Questions 1.The term "two-state solution" is sometimes mentioned in the news in the context of the affairs of (UPSC CSE 2018) A.China B.Israel C.Iraq D.Yemen Answer (B)

Source: The Hindu