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The draft of the Trade and Economic Partnership Agreement (TEPA) between India and European Free Trade Association (EFTA) was leaked.

Trade and Economic Partnership Agreement Between India and EFTA

• A free trade agreement is being negotiated between India and European Free Trade Association (EFTA) comprising the countries of  Switzerland, Iceland, Liechtenstein and Norway.
• India-EFTA: It is a broad-ranging agreement being negotiated between India and the four countries since 2008 to increase investment in India and reduce tariffs on exports.
• A draft of the Trade and Economic Partnership Agreement (TEPA) was leaked and made available on the website bilaterals.org (tracks international free trade agreements)

Specific Duration Clause in Draft Trade and Economic Partnership Agreement

• Specific  duration” clause: As per the clause, pharmaceutical companies could not rely on undisclosed test data (clinical trial data of the original manufacturer) while applying to their country’s regulators for permission to sell a drug to gain market approval for at least six years.
• The condition has to apply  for new’ chemical drugs as well as for biologics drugs also 
  • Biologics drugs: They are monoclonal antibodies, vaccine formulations involving  complex mixtures of organic and inorganic entities, and are harder to make copies of. Many Indian biotechnology companies are developing biologics drugs.

• Implication

  • It can lead to a delay in  access to affordable, generic versions of patented drugs in India by a minimum of six years
  • Data exclusivity: Implementing  it could  jeopardise access to essential drugs in general, as well as to delay the approval of generic versions of newer medicines. India does not have data exclusivity in its law.

Generic Drugs

• Definition: It is a drug which is similar to  an already marketed brand-name drug in dosage, safety, strength, quality, performance characteristics, risk, and intended use.
• They demonstrate bioequivalence, meaning that it  works in the same way and provides the same clinical benefit as the branded drug.
• Indian pharma industry: India produces over 60,000 generic drugs across 60 therapeutic categories with an  annual turnover of ₹3.4 lakh crore making it the 3rd largest Pharma country in the world.
  • Indian government’s Jan Aushadhi Scheme which allows free drugs to be made available to the poor runs on the strength of our Generic Industry

Indian Regulatory Approval of Generic Drugs

• The Patents Act 1970 regulates the patent protection regime for drugs in India. 
• The Act was amended in 2005 reintroducing  patent protection for medicinal products and agrochemicals in conformity of the TRIPS Agreement.
• Patents are granted for a term of 20 years from the date of application to novel (i.e. previously unknown) innovations involving an inventive step.
• Compulsory licensing:  It is a provision in the WTO’s agreement on intellectual property, TRIPS (Trade-Related Aspects of Intellectual Property Rights).
  • As per the provision a government can allow another manufacturer to  produce a patented product or process without the consent of the patent owner or plans to use the patent-protected invention itself.
  • Indian Patent Act:  Compulsory licence can be granted after the expiration of a period of three years from the date on which the patent has been granted. 
  • Grounds: 
    • The reasonable requirements of the public with respect to the patented invention have not been satisfied
    • The patented invention is not available to the public at a reasonably affordable price
    • Patented invention is not worked in the territory of India.
  • Example: India’s first ever compulsory licence was granted to Natco Pharma for generic production of Bayer Corp Nexavar for treating liver and kidney cancer in 2012.

News Source: The Hindu

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The Indian government officially asked to become a member of the International Energy Agency (IEA). 

About International Energy Agency (IEA)

• The International Energy Agency (IEA) is an independent intergovernmental organisation.
• IEA Headquarters: Paris
• Members: 31 member countries , 13 association countries, 5 accession countries. 
  • India had joined the  International Energy Agency as an association country in 2017.
• It was established in 1974 in response to the 1973 oil crisis under the framework of the OECD.
• It offers policy recommendations, analysis, and data on the global energy sector.
• It was Initially focused on 
  • Addressing oil supply disruptions
  • Providing market data
  • Promoting energy conservation
  • Fostering international technical collaboration.
• Over time, the IEA’s scope expanded to cover the entire global energy system, including traditional and cleaner energy sources.
  • It includes renewable energy sources like solar, wind, and biofuels, as well as nuclear power and hydrogen technologies.
• Report Publications Of International Energy Agency
• • World Energy Outlook Report, World Energy Investment Report, World Energy Statistics, World Energy Balances, Energy Technology Perspectives, and India Energy Outlook Report.

Reasons for India’s Interest to Be A Part of International Energy Agency

• Transition to Clean Energy: India’s inclusion in International Energy Agency (IEA)  aligns with its goals of transitioning to clean energy sources and meeting climate change targets, particularly under the Paris Climate Agreement.
• Geopolitical Influence:  Joining IEA will offer India a platform to assert its leadership in climate and energy issues globally which will help India  to advocate for its initiatives like the International Solar Alliance (ISA).
• Support for Renewable Energy: Collaboration with the IEA can aid India’s renewable energy initiatives by garnering support, expertise, and financial backing from international partners.

Impact of India’s Inclusion in International Energy Agency

Advantages

• Enhanced Energy Security: By joining the IEA, India gains access to important energy data, market analysis, and emergency response mechanisms, which strengthen its energy security.
• Technological Advancements: Collaboration with IEA member countries allows India to share knowledge and technologies, accelerating its transition to clean energy and improving energy efficiency.
• Investment Opportunities: India’s membership in the IEA attracts foreign investment to its energy sector, promoting infrastructure development and creating job opportunities.
• Global Influence: Being part of the IEA gives India a stronger voice in shaping global energy policies and participating in discussions on issues like climate change and energy access.

Challenges:

• Concerns Regarding Dominance: India’s inclusion in IEA brings some challenges in the form of dominance of developed economies in the decision making process. 
• Potential Pressure to Conform: There are possibilities  that India might face pressure to adopt policies aligned with the IEA’s agenda, which may not always align with its national priorities.

Impact on International Energy Agency

• Diverse Perspectives: India brings unique energy challenges and viewpoints to the IEA, helping to broaden its understanding of global energy issues.
• Focus on Developing Countries: India’s participation encourages the IEA to consider the needs and priorities of developing countries like India which will help in making  more inclusive and relevant policies for emerging economies.
• Importance in Asia: India’s membership strengthens the IEA’s presence and influence in the rapidly growing energy market of Asia.
• Enhanced Credibility: With India’s significant role in the energy sector, its inclusion bolsters the credibility and global impact of the IEA.

News Source: Economictimes

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Recently, a reality technology company Hexagon presented a data-rich digital twin of the Qutub Shahi Tombs to the Telangana State government.

About Digital Twin

• Digital Twin is a three dimensional virtual representation of an object or system that delivers real type insights into the performance, operation or profitability of a physical object, even a city.
• Objective: 
  • Digital Twin helps companies and organizations to understand a physical object or process well.
• Benefits:  
  • Digital Twin helps in testing a solution or design in simulation.
  • It Saves Time & Energy.
• Utility: 
• • Policymakers will gain insights into infrastructure functionality under various scenarios in particular for Smart Cities (For high-footprint events, population growth, or natural disasters etc.) 

Mohammed Quli Qutub Shah’s Tomb

About Tomb: The majestic tomb built in 1602, is one of the largest tombs at the Qutb Shahi heritage park complex reaching a total height of 60 m.

• Muhammad Quli Qutb Shah (1581- 1611), the fourth king of the Qutb Shahi dynasty laid the foundation of Hyderabad. During his reign, the dynasty reached the zenith of its material and cultural life. 

About Qutub Shah’s Tombs:  

• These tombs are present in a large group on a raised platform, erected in the memory of the departed kings of Golconda. 
  • It is a one-of-its-kind place in the world where the whole dynasty is buried at a single spot. 
• Built by:  The Qutub Shahis
• Location: They are located one kilometer north of Golconda Fort’s called Banjara Darwaza,Hyderabad. 
• Architectural Style: They resemble Persian, Pathan and Hindu architectural styles. 
• Material Use: Grey granite, with stucco ornamentation.
• Architectural Marvels: 
  • Adorned with intricately carved stonework and surrounded by landscaped gardens, the tombs exemplify the architectural traditions of the Qutub Shahi dynasty. 
  • Each structure features dome-like constructions atop square bases, adorned with pointed arches. 

News Source : The Hindu

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Estonia’s Prime Minister, Lithuania’s culture minister and members of the previous Latvian parliament were put on a wanted list by the Russian Police.

Baltic States Face Legal Backlash for Demolishing Soviet Monuments

• The Baltic states officials were incriminated on the grounds of “destroying monuments to Soviet soldiers” and  “desecration of historical memory”
• These acts are punishable by a 5-year prison term under the Russian criminal code.
• Estonia, Latvia and Lithuania have demolished most of their Soviet-era monuments, including those commemorating Soviet soldiers killed in World War Two since the Russian invasion of Ukraine.

The Baltic states

• The Three Nations of  Estonia, Latvia, and Lithuania situated  in the northeastern region of Europe on the eastern shores of the Baltic Sea collectively are called the Baltic states.
• Neighbors: They are surrounded on the west and north by the Baltic Sea, on the east by Russia, on the southeast by Belarus, and on the southwest by Poland and an exclave of Russia (kaliningrad) 

Political Map of Baltic States

• Baltic States Soviet History

  • The Baltic States  were annexed by the Soviet Union in 1940 by  the Molotov–Ribbentrop Pact between Nazi Germany and the Soviet Union immediately before the outbreak of World War II.
  • 1941-1944: Occupied by Nazi Germany 
  • 1944-1991: They were reoccupied by the Red Army and Soviet rule was re-established as part of post world war 2 negotiations in the Yalta Conference.
  • 1980s: A massive campaign of civil resistance against Soviet rule, known as the Singing revolution began.
  • Independence: The Soviet Union recognized the independence of three Baltic states on 6 September 1991 and the Baltics became the first group to secede from the Soviet Union

• Baltic States and Western Association

• • All the three countries are members of NATO (since 2004) the European Union, the Eurozone, and the OECD. 
  • Estonia, Latvia, and Lithuania abandoned the Russian ruble in favor of new domestic currencies (the kroon, lats, and litas)  respectively
  • Estonia, Latvia, and Lithuania each adopted the euro as its common currency in 2011, 2014, and 2015, respectively.

News Source: Hindustan times

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A study in 2023 by University of Oxford showed that 13% of autoimmune diseases occur in women and 7% in men. 

Key Findings of the Report

• High susceptibility of women: Autoimmune disease affects women more than men. 

• • A team of scientists suggests that the presence of a molecular coating on about half of the X chromosomes in women is the reason behind this phenomenon. 
• Regional Differences: Research identifies socioeconomic, seasonal, and regional differences in autoimmune disorders.
  • Factors beyond genetics, like smoking, obesity, and stress contribute to disease development.
• Risk Factor: Individuals with one autoimmune disease are at increased risk of developing another.

About Autoimmune Disease

• Autoimmune diseases occur when the immune system mistakenly harms the body’s healthy cells. 
  • For Example: Rheumatoid arthritis, Crohn’s disease, and various thyroid disorders.

Why Is Autoimmune Disease More Common in Women?

• Genetics: Women have two X chromosomes, whereas men have only one. 
  • This difference increases the chance of mutations coming from the X chromosome, which can lead to autoimmune diseases.
• XIST: The X chromosome has long RNA strands called XIST, which trigger inflammatory responses from the immune system. 
  • XIST is active only in cells with two X chromosomes therefore women are at a higher risk of autoimmune diseases and immune attacks.
  • Howard Chang’s observation of male mice showed that many proteins drawn to XIST also cause the production of autoantibodies, which are a kind of antibody that reacts with the body’s own substances.
• Hormonal Changes: Autoimmune diseases often appear during big hormonal changes in a woman’s life, like puberty, pregnancy, and menopause. 
  • These changes in hormones greatly affect the immune system. 
    • For example, skin conditions like psoriasis can be influenced by hormones. Since women undergo more hormonal changes than men, they are more likely to have autoimmune diseases.

News Source: TheHindu

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Recently, Biologist Caroline Gargett identified stem cells within hysterectomy tissue that were traced back to the endometrium 

Highlights of Key Research: 

• Demonstration of Cells Self Renewal & Differentiation Capacity: Through proliferation assays and differentiation studies, they demonstrated their 
  • Capacity for self-renewal and 
  • Capability to differentiate into diverse cell types, including fat cells, bone cells, and smooth muscle cells. 
  • Discovery of  Mesenchymal Stem Cells in menstrual blood: Uncovering Menstrual Stem Cells in Menstrual Blood Surprisingly, researchers discovered a subset of endometrial stromal mesenchymal stem cells in menstrual blood.
• Non-Invasive Method of Collection of Stem Cells: This finding provided a non-invasive method for collecting these valuable cells, offering potential applications in regenerative medicine and women’s health.  
• Therapeutic Potential by Preclinical studies in animal models have shown promising results in treating beyond gynecological disorders, menstrual stem cells exhibit therapeutic potential for various conditions like treating diabetes, promoting wound healing, and repairing damaged tissue. etc
• Treatment of Endometriosis:  Research suggests that differences in gene expression and cellular morphology between stem cells from healthy individuals and those with endometriosis could aid in diagnosis and treatment. 

About Stem Cells:

• Stem cells are cells from which all other cells, with their respective specialized functions, are generated. 
  • The human body, under certain conditions, “divides” stem cells to either create new stem cells or cells with specific functions, such as blood cells, brain cells, bone cells, muscle cells, etc.

Types of Stem Cells based on Cell Potency

Cell Potency: The ability of stem cells to differentiate into other cell types is called Cell Potency.

• Totipotent stem cells exhibit highest Differentiation Potential: They can form any cell, and even an entire organism. i.e. Both Embryonic as well as Extraembryonic.
• Pluripotent stem cells show an intermediate level of Potency, while 
• Multipotent stem cells — which include the mesenchymal stem cells in menstrual blood — can make a limited range of cell types.
• Oligopotent stem cells can make just a few cell types within the same organ or tissue. 
• Unipotent stem cells replace one specific cell type, like sperm or skin cells.

Challenges With Menstrual Stem Cells Potential 

• Underexplored and underfunded: Research in this field remains relatively underexplored and underfunded. 
• Cultural taboos surrounding menstruation and; 
• Gender biases in research funding pose significant challenges.

However, addressing these barriers could unlock the full potential of menstrual stem cells in regenerative medicine and women’s health.

News Source: The Hindu

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The following data points show that the Parliament functioning has generally been on a decline in the post-1990 period.

17th Lok Sabha Sending Only 16% of Bills For Scrutiny: Chart 1 

• Decline in Number of Bills Passed: The annual average of Bills passed declined from 65 in the 1952-1990 period to 48 in 1991-2023. 
  • Highest Bills Passed: The highest bills passed is 487 in 5th Lok Sabha.
• Decline in the Percentage of Bills Scrutinized: The number of Bills sent to committees for scrutiny also decreased consistently, with the 17th Lok Sabha sending only 16% of Bills for scrutiny, the lowest in the past four Lok Sabhas. 

17th Lok Sabha Had the Least Number of Sittings: Chart 2 

• Decline in Number of Sittings in Days & Sitting Hours: There is also a pattern of decline in number of sitting days and hours in the Lok Sabha. The 17th Lok Sabha had the least number of sittings i.e., 274 days.
  • Prior to 1990, each Lok Sabha typically convened for over 550 days on average, spanning 3,500 hours. However, post-1990, an average Lok Sabha only meets for 345 days, spanning less than 1,800 hours. 

Decline in Usages of Parliamentary Tools In 17th Lok Sabha: Chart 3

• Decline in Usage of Half-hour Discussion: Prior 1990, there were 88 such discussions per Lok Sabha. Post-1990, there were only 11 half-hour discussions per Lok Sabha. The 17th Lok Sabha permitted only one such discussion, marking an all-time low. 
• Decline in Usage of Short-duration Discussion: Prior 1990, it had an average of 46 per Lok Sabha. Post-1990, this number diminished to 39, with the 17th Lok Sabha engaging in only 13 such discussions. 
• Decline in Usage of Calling Attention Tool: It was extensively used between 1957 and 1990, with an average of 300 notices allowed per Lok Sabha. Post-1990, only 40 notices have been allowed per Lok Sabha. The 17th Lok Sabha allowed only one such discussion. 
• Decline in Usage of Adjournment Motion: Prior 1990, the Lok Sabha permitted discussion and voting on four such motions on average. Post-1990, this number decreased to three. The 16th and 17th Lok Sabha allowed no adjournment motions.

Decline on Time Spent on Discussing the Union Budget In Lok Sabha: Chart 4 

• Decline on Time Spent on Discussing the Union Budget: There has been a substantial decline in the time spent on discussing the Union Budget, Ministry-wise demands, and the Finance Bill, from around 120 hours annually before 1990 to a mere 35 hours post-1990. 
• Highest Hours: The highest hours spent on discussing the Union Budget is 791 in 3rd Lok Sabha.
• Lowest Hours: The lowest hours spent on discussing the Union Budget is 85 in 16th Lok Sabha.
  • Passing of Demands Without Discussion: Ministry-wise demands have been passed without discussion only five times since 1952 — and all of them after 1999

News Source: The Hindu

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Recently, the first council meeting of the Global Biodiversity Framework Fund (GBFF) took place in Washington DC, United States. 

First Global Biodiversity Framework Fund Council Meeting Takes Baby Steps For Biodiversity

• The meeting was part of the week-long 66th Council meeting of the Global Environment Facility (GEF), the implementing agency for GBFF.
• Other than the GBFF council meeting, two more meetings- virtual GEF consultations with civil societies and the 35th Least Developed Countries Fund/Special Climate Change Fund council meeting took place during the GEF council meeting. 

Key Highlights of First Global Biodiversity Framework Fund Council Meeting

• Setting of Rules: The delegates set down rules for the implementation of GBFF, which was proposed during the 15th Conference of Parties (COP15) of the Convention on Biological Diversity in 2022. 
• Focus Areas: 
  • Biodiversity, Climate change, Food systems, Forest management, 
  • Land degradation, river and ocean health, chemicals and waste and wildlife. 
• Approved Projects: They approved $918 million for 45 projects and programmes (including four blended finance initiatives involving the private sector) and $203 million for 21 climate change adaptation projects. 
• Approval of Policies: Delegates approved the Resource Allocation Policy and the Project Cycle Policy, which will help the council allocate donor funds when they are available. 
  • The Resource Allocation Policy: It gives the GEF chief executive the authority to approve projects worth up to $5 million. It also mandates midterm reviews for all projects above $2 million. 
• Time Framework: GEF implementing agencies will have nine months from the endorsement of a project preparation grant to fully prepare projects and get them approved by the GBFF council. 
• Available Fund: GBFF is open to accept donations from all sources- private, philanthropy and governments. So far, the total funds collected are just a little bit more than the $200 million needed as seed capital to make the GBFF operational. 
  • To increase the availability of funds, GEF’s work programme this time includes $81 million for four blended finance projects. 
  • GEF hopes to mobilize $7.5 billion in co-financing, including from bilateral government aid and multilateral development banks. 
• Fund Allocations: 20% will be available to Indigenous Peoples and local communities (IPLCs), 25% to GEF agencies, 36% to SIDS (Small Island Developing States) and 3% to LDCs (Least Developed Countries).
• Review of Allocated Fund: The allocation for IPLCs will be reviewed two years and for SIDS and LDCs will be reviewed three years after ratification.

About Global Biodiversity Framework Fund (GBFF)

• Launched: It is created for implementation of Kunming-Montreal Global Biodiversity Framework (GBF) at the 7th Assembly of the Global Environmental Facility (GEF) in Vancouver, Canada in 2022. 
• Objectives: To support the conservation and sustainability of wild species and ecosystems, whose health is under threat from wildfires, flooding, extreme weather, and human activity including urban sprawl.
• Contributors: Global Biodiversity Framework Fund will mobilize and accelerate investment from governments, philanthropy, and the private sector.
• Focus Areas under Funds: 
• • Indigenous Communities: As much as 20% of the funds would support Indigenous-led initiatives to protect and conserve biodiversity.  
  • Support for Small Island Developing States and Least Developed Countries, which will receive more than a third of the fund’s resources. 

About Global Environment Facility

• Establishment: On the eve of the 1992 Rio Earth Summit, it is a catalyst for action on the environment. 
• Task: Through its strategic investments, it works with partners to tackle the planet’s biggest environmental issues. 
• A Unique Partnership of 18 Agencies: It includes United Nations agencies, multilateral development banks, national entities and international NGOs- working with 183 countries.
• A Financial Mechanism For:
• • Minamata Convention on Mercury
  • Stockholm Convention on Persistent Organic Pollutants (POPs)
  • United Nations Convention on Biological Diversity (UNCBD)
  • United Nations Convention to Combat Desertification
  • United Nations Framework Convention on Climate Change (UNFCCC)
• The Global Environment Facility Trust Fund: It was established to help developing countries and countries with economies in transition to meet the objectives of the international environmental conventions and agreements.

News Source: Down to Earth

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The Assam Government declared “Kaji Nemu” as the state fruit.

What Is Kaji Nemu?

• Identification: Kaji Nemu also called Citrus Limon is a juicy, aromatic lemon with immense nutritional value.
• It is Endemic to North East states of India, especially Assam.
• Assam Lemon: It is also called Assam Lemon and was given a Geographical Indication Tag by the Assam govt in 2019.

Significance Of Kaji Nemu

• Cultural and Traditional Significance: It is a popular ingredient in Assamese cuisine, and is used in a variety of dishes, including pickles, and curries.

• Antioxidant Properties: It is a good source of Vitamin C and fiber. It also contains antioxidants, which can help protect the body against damage from free radicals.
  • These antioxidants can help to protect the body against damage from Free Radicals.
• Aids in Digestion: Kaji nemu is a good source of fiber, which is important for digestive health.
• Demand in the international market: The GI-tagged lemon has attracted buyers from nations like the United Kingdom and the United Arab Emirates.

News Source: ET and The Hindu

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Recently, the PM announced ‘PM Surya Ghar: Muft Bijli Yojana’ to boost solar power.

What Is PM Surya Ghar Yojana (Muft Bijli Yojana)?

• PM Surya Ghar Scheme is an initiative launched by the Govt of India to provide free electricity connections to households through the installation of solar power systems. 
• The scheme aims to: 
• • Provide up to 300 units of free electricity per month to 1 crore households through rooftop solar installations.
• Investment Cost of the Scheme: Rs 75,000 crore.

Features Of PM Surya Ghar Yojana

• No cost burden on the people: From substantive subsidies, which will be given directly to people’s bank accounts, to heavily concessional bank loans, the Central govt will ensure that there is no cost burden on the people.
• National Online Portal: All stakeholders will be integrated to a National Online Portal which will further convenience.
• Promoting Rooftop Solar Systems: To popularise the scheme at the grassroots, Urban local bodies and Panchayats shall be incentivized to promote rooftop solar systems in their jurisdiction.
• More Income, Lesser Power Bills: Looking at its sustainability the scheme will lead to more income, lesser power bills, and employment generation for people.

Significance Of PM Surya Ghar Yojana

• Market Growth: Boosts the Indian solar industry, leading to more competitive pricing and technological advancements.
• Energy Access: Provides reliable electricity to households, especially in areas with grid instability.
• Increased Quality of Life: Increased access to electricity empowers individuals and communities, facilitating education, healthcare, and economic activities.
• Reduced Air Pollution: Lower dependence on coal-fired power plants improves air quality, benefiting public health.
• Promotes Renewable Energy: Reduces reliance on fossil fuels, mitigating greenhouse gas emissions and combating climate change.

News Source: BS and PM India

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The Commerce and Industry Ministry is expanding the rise classification under HSN code to limit export curbs.

• This initiative will exclude non Basmati rice from export curb because India is not likely to ban the rice variety being consumed in domestic market.

What Is HSN Code?

• HSN code stands for Harmonized System Nomenclature.
• It is a globally recognized system for classifying and identifying traded goods.
• It is a 6-digit uniform code introduced for the systematic classification of goods all over the world. It first came into effect in 1988.
• Developed by: the World Customs Organization.
• Objective: In rice, HSN code is used to differentiate specific types of rice.
• Geographical Indications (GI): India is developing separate HSN codes for GI tagged rice varieties. 

Significance of HSN Code For Rice Import/Export Duties: 

• HSN codes crucial for determining import/export duties, ensuring fair trade practices.
• Government agencies track rice trade patterns and trends using HSN codes, assisting in formulating agricultural policies and estimating crop yields.

News Source: The Hindu

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This article is based on the news “Farmers back on road to Delhi: How the current protest differs from the 2020-21 edition” which was published in the Indian Express. More than 250 farmers’ unions under the Kisan Mazdoor Morcha (KMM) and the Samyukta Kisan Morcha have resumed their protest, after two years.

Farmers Protest 2024 and Delhi Chalo Champignon| Why Farmers Are Marching to Delhi?

• Delhi Chalo: These forums gave a call of “Delhi Chalo” to remind the government of the promises to farmers.
• Demand “MSP Guarantee”: The Minimum Support Price (MSP) assurance is one of the main issues and farm unions are demanding a statutory status to MSP.
• Negotiations: A government delegation has held negotiations with the protesting farmers, but the talks have not yielded results yet.

Background of Farmers Protest 2024

• The Government Had Brought Three Farm Laws in 2020

• • The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act: Provides for setting up a mechanism allowing the farmers to sell their farm produce outside the Agriculture Produce Market Committees (APMCs). 
  • The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act: Allows farmers to do contract farming and market their produce freely.
  • The Essential Commodities (Amendment) Act: Fees items such as foodgrains, pulses, edible oils and onion for trade except in extraordinary (read crisis) situations.

• Fears of Farmers

  • Lesser buying by the government agencies in the approved mandi’s due to outside APMC trade of farm produce.
  • The MSP system would become irrelevant.
  • Farmers would not have any assured income and would be at the mercy of big corporations.
• Farmers Protests: These laws were met with unprecedented protests by farmers at Delhi borders for over a year and were eventually withdrawn in 2021. The farmers have now resumed the protest.

Farmer’s Demands in Recent Farmers Protest 2024

Legal Status to MSP: Enactment of legislation conferring mandatory legal status to MSP based on the MS Swaminathan Commission’s recommendation. Some of the other demands include:

• Debt Waiver: Full debt waiver for farmers and labourers;
• Implementation of the Land Acquisition Act of 2013: with provisions for written consent from farmers before acquisition, and compensation at four times the collector rate;
• Withdrawal from WTO: India should withdraw from the World Trade Organization (WTO) and freeze all free trade agreements;
• Pension support: Pensions for farmers and farm labourers;
• Employment under MGNREGA: 200 (instead of 100) days’ employment under MGNREGA per year, daily wage of Rs 700, and scheme should be linked with farming;

About Minimum Support Price (MSP)

• Introduction: It was introduced in the mid-sixties when India was food-deficit. 
• Definition: MSP for a crop is the price at which the government is supposed to procure/buy that crop from farmers if the market price falls below it.
• Objective: 
  • To ensure that farmers receive a certain “minimum” remuneration so that their costs of cultivation can be recovered.
  • To incentivise the production of certain crops for the food security of India. 
• Announced by: They are announced by the Union government based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
• Factors Taken into Consideration: The CACP considers the following factors such as:
  • The demand and supply of a commodity; 
  • Its cost of production;  
  • The market price trends (both domestic and international); 
  • Inter-crop price parity; 
  • Ratio of prices of farm inputs and farm outputs); a minimum of 50 per cent as the margin over the cost of production; and  
  • The likely implications of an MSP on consumers of that product.
• Coverage of crops under MSP: The Government announces MSP for 23 crops however,
  • It is not legally bound to pay MSP. 
  • It effectively procures only a third of these crops.
• Status of MSP: It does not have any statutory/legal backing. Access to it, unlike subsidised grains through the PDS, isn’t an entitlement for farmers. The farmers cannot demand MSP as a matter of right.
• MSP for Sugarcane: The only crop where MSP payment has some statutory element is Sugarcane. This is due to its pricing being governed by the Sugarcane (Control) Order, 1966 issued under the Essential Commodities Act.
  • The responsibility to make Fair and Remunerative Price’ (FRP) payment to farmers within 14 days of cane purchase lies solely with the sugar mills.

Reasons For Not Giving MSP a Legal Backing

There are various issues due to which the Governments have been reluctant to give MSP a legal guarantee:

• Heavy Subsidy Burden on the Government: The rising food bill under the existing MSP system of the government translates into an increase in fiscal deficit in the annual budget. 
• Foodgrain Management: The Government does not have the physical resources to purchase, store and market large quantities of produce, if it must procure the same due to absence of buyers willing to pay the MSP.
• Consistent Increase in MSPs: Rising procurement means the Food Corporation of India (FCI) godowns are overflowing, and rising MSP means that the FCI cannot sell its stocks in the international market at a profit. 
• Sale Outside APMC: Most of the sales of crops covered under MSP are not sold in the APMCs. So, there is no record of purchaser or seller farmers. 
  • For these transactions, it is not possible to guarantee the MSP. Many small and marginal farmers sell their produce to village traders who are outside the ambit of Agricultural Produce Marketing Committee (APMCs).

Way Forward

• Build Consensus: Continuous talks between the Government and the farmers should be held so that a consensus can be built to ensure that the income of farmers is safeguarded.
• Income Support: Many economists believe it is better to give farmers “income”, instead of “price”, support. This means transferring a fixed sum of money annually into their bank accounts, whether on a per-farmer (as in the Centre’s PM-Kisan Samman Nidhi) or per-acre (the Telangana government’s Rythu Bandhu) basis. 
• Representation in Expert Committee: One of the issues of farmers was that the state of Punjab, Haryana and Uttar Pradesh were not represented in the committee. The Government should ensure that adequate representation should be given to all the stakeholders in the committee .
• Strengthen the Agricultural Marketing System: APMC should be strengthened as per the changing requirements of the country to ensure higher value to the farmers through remunerative prices of their produce by taking advantage of the domestic and export opportunities.
• Setting up of  State Farmers Commissions: This was recommended by the National Commission for Farmers. The State level Farmers’ Commission should be set up in all the states  with representation of farmers for ensuring dynamic government response to farmers’ problems.
• Strengthening of Agricultural Infrastructure: Overall improvement in the agricultural infrastructure is the need of the hour. The farmers should be provided with better logistical and storage facilities along with real time information on weather and market conditions. These will enable them to make an informed decision.

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Context: 

This article is based on the news “Old-fashioned trust and credibility bind India-UAE ties” which was published in the Hindu. The visit of the Indian Prime Minister to the United Arab Emirates, reflects the growing importance of their bilateral relations and significance of UAE in India’s engagement in the Gulf region.

PM Modi UAE Visit Highlights

• Regular Interactions: This is the seventh visit of the Prime Minister since 2015, and third in the past eight months. 
• Inauguration of Temple: Bochasanwasi Shri Akshar Purushottam Swaminarayan Sanstha (BAPS) temple, the first Hindu temple of Abu Dhabi, would be inaugurated by the PM during his visit.
• World Government Summit: PM will address the World Government Summit on February 14 in Dubai as the ‘Guest of Honour’. The focus of this year’s summit is on ‘Shaping Future Governments’ and gives India a platform to put forth its own views.
• Addressing the Indian Diaspora: During his visit, the PM would also be addressing the Indian community in the “Ahlan Modi” (Hello Modi) event at the Zayed Sports City Stadium.

India UAE Relations: Background

• India UAE Relations: Before Independence

  • India UAE Trade relations: The India UAE relationship dates back several centuries, rooted in vibrant trade links across the Arabian Sea. The trade consisted of items like spices, textiles, pearls and ideas. 
  • Cultural Exchange: These early interactions facilitated cultural and social exchanges, enriching the historical relations of both nations with shared linguistic, culinary, and artistic influences.

• India UAE Relations: Post Independence

• • Beginning of Diplomatic Relations: Formal diplomatic relations were established soon after the UAE’s formation in 1971 and the first Prime Ministerial visit was made by Indira Gandhi in 1981.
  • Early Economic ties: Initially, the relationship was heavily focused on trade and labour migration, with India becoming a major manpower exporting nation for the emerging UAE’s economy. 

Progress in India UAE Relations Through Decades Economic Relations

• India UAE Trade Relations: India is UAE’s second-largest trading partner accounting for 9% of its total foreign trade and 14% of non-oil exports. Also, the UAE is India’s third biggest trade partner. 
  • India UAE bilateral trade worth US$ 84.84 billion during 2022-23. 
• India’s Exports: India exported 7,707 commodities to UAE in 2022-23 accounting to US$ 31.60 billion. 
  • Major Exported Items from India to UAE include petroleum products, gold and other precious metal jewellery, telecom instruments, pearls, precious and semi-precious stones, iron and steel etc. during 2022-23.
• India’s Imports: India imported 4,064 commodities from UAE, accounting to US$ 53.23 billion, in 2022-23.
  • Major items imported by India from UAE include petroleum crude, petroleum products, pearl, precious and semi-precious stones, gold, aircraft, spacecraft and parts, plastic raw materials, other precious and base metals etc. during 2022-23.
• Comprehensive Economic Partnership Agreement (CEPA): India and UAE signed CEPA in February 2022 which acted as a catalyst in reducing tariff barriers and increasing trade and investment flows between the nations.
• • Post Signing of CEPA UAE emerged as the fourth largest investor in India. It has committed to invest US$ 75 billion in India’s infrastructure sector. 
  • The Abu Dhabi Investment Authority (ADIA) will soon open an office in GIFT City, Gujarat. 
  • 14 percent increase in India’s non-oil exports to UAE during the July-August 2022 period, just months after the CEPA came into force.
• Bilateral Investment Treaty: The two sides signed the Bilateral Investment Treaty which will be a key enabler for further promoting investments in both countries.
• Bharat Mart: It is a key initiative of Dubai-based DP World and India’s Ministry of Commerce and Industry to boost exports of Indian Micro, Small and Medium Enterprises.
  • The project builds on the momentum of India UAE CEPA which completed its first year in 2023 and has seen India’s trade with the UAE grow by 16% to $85 billion.
• Trade in Local Currencies: An MoU was signed to promote the use of local currencies for cross-border transactions. Interlinking of payment and messaging systems was initiated

Cultural Cooperation Between India and UAE

• Indian Diaspora: The UAE is home to 3.5 million Indians (30% of the Emirate’s population). Indians are the largest expatriate community in the UAE, and their remittances are a significant source of foreign earnings.
• Educational Cooperation: A campus of the Indian Institute of Technology-Delhi is being established in Abu Dhabi, initially offering a Masters program in Energy Transition and Sustainability.
• Restoration and Preservation of Archival material: The two countries signed a cooperation protocol for their National Archives, focusing on the restoration and preservation of archival materials.
• Religious Cooperation: The BAPS temple initiative strengthens religious diplomacy and is a mark of religious tolerance in a Gulf nation.

Defence Cooperation Between India and UAE

• High-Level Visits: Regular high-level exchanges, including state visits by leaders, further cemented strategic ties and expanded the scope of cooperation.
• I2U2 Framework: In July 2022, a new quadrilateral forum was established called the I2U2, whose members are India, Israel, UAE, and the US. 
  • The forum identifies six areas of cooperation, namely water, food security, health, energy, transportation, and space.

Global Cooperation Between India and UAE

• Collaborative Global Leadership: India’s G20 presidency and the UAE’s COP28 presidency provided additional opportunities for working together on global issues such as environmental protection, climate change and south south cooperation.
• India-Middle East Economic Corridor: The two sides also signed an intergovernmental framework agreement on the India-Middle East Economic Corridor which would foster India-UAE cooperation, furthering regional connectivity.

Fintech Cooperation Between India and UAE

• Interlinking of Digital Payment Platforms: UPI (India) and AANI (UAE) would be interlinked to facilitate seamless cross-border transactions between the two countries.
• Interlinking Domestic Debit/Credit Cards: They also signed a pact on interlinking domestic debit/ credit cards, RuPay (India) with JAYWAN (UAE), which would build financial sector cooperation and enhance universal acceptance of RuPay across the UAE.

Energy Cooperation Between India and UAE

• Electrical Interconnection and Trade: The two sides signed an MoU on cooperation in the field of electrical interconnection and trade, including energy security and energy trade.
• Strengthening of Energy Partnership: The leaders also discussed the strengthening of energy partnership and appreciated that in addition to the UAE being among the largest sources of crude and LPG, India is now entering into long-term contracts for LNG.

Factors Transforming India UAE Relations

• Increased Diplomatic Engagement:

  • Frequent Leadership Visits: Prime Minister Modi’s frequent visits to the Middle East, including 15 trips since 2015 and reciprocatory visits by Gulf leaders and officials signify a major uptick in diplomatic engagement compared to previous administrations.
  • Developing Personal Relationships: The Indian PM’s strategy of developing personal connections with Gulf leaders has deepened ties, capitalising the Gulf monarchs’ preference for trust-based relationships.

• Strategic Geo-Political Reorientation

  • Shift from Declaratory Support to Strategic Engagement: Moving past mere from traditional declaratory support for Arab causes, India has adopted a more pragmatic and strategic engagement with the Gulf, evidenced by the formation of the I2U2 group and initiatives like the India-Middle East-Europe Economic Corridor.
  • Regional Partnerships: India’s shift towards closer cooperation with the US, Israel, and conservative Gulf states marks a significant geopolitical realignment.

• Shift in Religious Diplomacy

  • Overcoming Historical Complications: By moving past the religious lens and Pakistan-centric approach that previously complicated relations, India has managed to strengthen its ties with the Gulf, focusing on shared interests and goodwill.
  • Promoting Religious Tolerance: The construction of the Swaminarayan temple in Abu Dhabi symbolises a broader trend towards religious tolerance in the Gulf, aligning with India’s secular and pluralistic values.

• India UAE Strategic Relations

  • Shift from Transactional to Strategic Economic Ties: Recognition of the Gulf as a major centre of global capital and its growing significance in accelerating India’s economic growth. India is eyeing investments from the UAE in green energy, space, semiconductors, and artificial intelligence.

• Counter-Terrorism and Defense Collaboration

• • Deepening Security Ties: The last decade has seen significant growth in counter-terrorism collaboration between India and Gulf nations like Saudi Arabia and the UAE.
  • Potential for Defense Partnership: Amidst changing regional geopolitics, there’s a push for diversifying defence partnerships, with Gulf countries looking to India as a regional security provider and exploring joint military developments.

Major Challenges In India UAE Relations

• Geopolitical Concerns Between India UAE Relations

  • Relationship with Pakistan: The historical and ongoing tensions between India and Pakistan affect India’s relations with Gulf countries, including the UAE. 
    • Furthermore, the financial support from the UAE to Pakistan could be diverted for anti-India activities.
  • Navigating Regional Tensions: India’s diplomatic manoeuvring amid UAE’s regional conflicts, especially with Iran and the impact of Middle Eastern geopolitics, presents a complex challenge.
  • Competition from China: China’s strategic investments and financial engagements in the UAE, surpassing USD 30 billion between 2005 and 2020 presents a competitive challenge for India.

• Trade Challenges Between India UAE Relations

  • Concentration of Trade in Specific Items: India UAE trade relations lack diversity and are mostly concentrated in hydrocarbon and precious metals trade.
  • Presence of Non-Tariff Barriers: Non-tariff barriers like Sanitary and Phytosanitary measures along with issue of Halal certification has led to the decline in Indian food item exports to the UAE. 

• Labor Rights Concerns

  • The Kafala System, a sponsorship program in which employers import foreign labourers and bind them to a contract for a specified time period proves to be exploitative practice for the Indian diaspora.

• Investment and Economic Cooperation Delays

  • Slow Project Implementation and sluggish pace in executing the $75 billion UAE investment fund for Indian infrastructure projects underscores inefficiencies and delays in bilateral economic initiatives.

• Energy and Transportation Disputes Between India and UAE

• • Oil Pricing Conflicts: Disagreements over oil pricing between India, a major consumer, and the UAE, an OPEC member, have led to tensions, impacting energy cooperation.
  • Air Services Agreement: The unresolved negotiation over air travel arrangements limits the expansion of flight services, affecting connectivity and economic ties.
    • India has Air Service Agreements (ASA) with 109 countries covering aspects relating to the number of flights, seats, landing points and code-share.

Way Forward To Strengthening India UAE Relations

• Addressing Geopolitical Concerns

  • Transparent Aid Tracking: Advocate for transparency in financial aid, ensuring UAE’s support to other nations does not adversely affect India’s security interests.
  • Diplomatic Engagement: Strengthen diplomatic channels to navigate regional tensions, maintaining a balanced approach in relations with the UAE, Iran, and other Middle Eastern countries.

• Navigating Non-Tariff Barriers (NTBs)

  • FTA Compliance: The countries should aim for a clearer and more predictable regulatory regime. Proper compliance within the tariff framework of each country should be adhered to ease trade. 

• Improving Labor Rights and Welfare

  • Bilateral Agreements: The countries should work towards bilateral agreements that ensure the protection of labour rights and improve the living conditions of migrant workers under the Kafala systems.

• Fostering India UAE People to People Relations

• • Cultural Exchanges and Community Welfare Programs: The countries should engage in promoting cultural and educational exchanges to bolster people-to-people connections and implement programs aimed at improving the welfare of the Indian diaspora.

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