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GoI has Extended the Sugar subsidy scheme for Antyodaya Anna Yojna (AAY) families distributed through the Public Distribution Scheme (PDS) until 31 March 2026.

 Sugar Subsidy Scheme for Antyodaya Anna Yojna Families

• It benefited about 1.89 crores Antyodaya Anna Yojna families of the country.
• GoI Rs. 389 Cr. was released as a sugar subsidy in 17 states during FY 2023-24.
• Objective Behind Extension of Sugar Subsidy : 
• For the well-being of the citizens of the country and ensuring the sweetness of platter of the poorest of the poor in the country
• To add energy to their diet so that their health improves.

Antyodaya Anna Yojana (AAY)

• Launch Date: 25th December 2000.
• Nodal Ministry: Ministry of Consumer Affairs, Food, and Public Distribution.
• Statutory Backing : It is a part of the National Food Security Act 2013.
• Objective: To provide highly subsidized food grains through the Targeted Public Distribution System (TPDS). 
• Salient Features: All AAY beneficiaries receive subsidized food and essential commodities through the Targeted public distribution system.
  • Wheat is provided at Rs.2 per kg, and rice at Rs.3 per kg, Rs.1 per kg for coarse grains
  • Eligible families are entitled to receive 35 kg of rice per month. & 
  • 1 kg of sugar at a subsidized rate of Rs.18.50 per kg through ration shops.
• Identification : The Central and State Governments of India jointly identify AAY beneficiaries. Upon identification, AAY families are issued ration cards of a distinct “Yellow” color. 
• Eligibility
  • Agricultural laborers without land, marginal farmers, and rural artisans. 
  • Individuals living alone who are either widows or facing terminal illnesses.
  • Widows and family heads over 60 years can apply. 
  • Families falling below the poverty line can apply.
  • Families with an annual income below Rs.15,000 are eligible. 
  • Tribal families residing in rural and mountainous areas qualify for the scheme. 
  • Disabled individuals are eligible to apply. 
• Allocation of Food Grains: Monthly food grain allocation under the Antyodaya Anna Yojana is approximately 8.51 lakh tonnes.

Concerns Associated With Food Subsidy in India

• Rising Economic Cost of Food Grains: 
  • The increase in Minimum Support Prices (MSPs), high state-level levies, and rising distribution costs contribute to the economic cost escalation of food grains. 
  • The widening gap between economic cost and Central Issue Prices (CIPs) results in increased expenditures on food subsidy. 
• Faulty Cropping Pattern: Open-ended procurement of paddy and wheat in states like Punjab and Haryana disrupts cropping patterns, displacing essential crops like pulses and oilseeds. 
• Excessive Stockholding: Monocropping of paddy and wheat leads to excessive stockholding beyond the required norm, contributing to post-harvest losses. 
• Environmental Impact: The increasing trend in MSPs influences farmers to opt for water-intensive crops, putting pressure on the water table, especially for crops like paddy and sugarcane. 
• Challenges in Delivery of Food Subsidy: Inclusion & Exclusion Errors while identification of beneficiaries.
• Sugarcane Dues: 
  • Surplus production leads to falling sugar prices, impacting the liquidity of mills and causing delays in payments to farmers. 
  • State governments setting prices higher than the central government’s Fixed Remunerative Price (FRP) adds strain to the financial health of sugar mills.

Also Read: Pradhan Mantri Garib Kalyan Anna Yojana 

News Source: PIB

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The US State Department has approved the sale of MQ-9B remotely piloted aircraft to India under the foreign military sales program.

India US Drone Deal

• India US Drone Deal covers the proposed sale of 31 Sky Guardian drones and related equipment to India for an estimated cost of $3.99 billion.  
• As part of the deal, India will receive a weapon package that includes 170 Hellfire Missiles, 310 GBU39 laser Small Diameter Bombs, and various other equipment.

Significance Of India US Drone Deal

• Improved Border Surveillance: Provides round-the-clock surveillance capabilities. Monitors movement along the Line of Actual Control (LAC) with China.. 
• Contribution to Counterterrorism: Supportive role in counter-terrorism and counter-insurgency operations, particularly in regions like Kashmir affected by militancy.
• Enhanced Maritime Surveillance: SeaGuardian variant designed for maritime missions, will enhance the Indian Navy’s surveillance and maritime security capabilities. 
• Seamless Integration with Existing Platforms: Integrates seamlessly with other U.S.-origin platforms operated by India. Enables coordinated operations with platforms like P-8I, AH-64 Apache, and MH-60R multi-role helicopters.
• Cost-Effective Solution: Provides approximately 80% capability of large human-flown maritime patrol aircraft at 20% of its cost per hour. Saves time, costs, and reduces wear and tear on manned platforms.
• Reduced Personnel Fatigue: The utilization of MQ-9B drones contributes to lowered crew fatigue among armed forces personnel, optimizing operational efficiency.

About MQ-9B Drones

• MQ-9B Drones are derivatives of the MQ-9 Reaper designed for both remotely controlled and autonomous flight operations. 
• It is a high-altitude, long-endurance drone equipped with precision strike missiles.
• Developed by: General Atomics Aeronautical Systems (GA-ASI).
• Two variants — The SkyGuardian and its maritime counterpart, the SeaGuardian. 
  • Since 2020, the Indian Navy has been actively utilizing the MQ-9B Sea Guardian. 

Notable Features of MQ-9B Drones

• Payload capacity of 5,670 kg and a Fuel capacity of 2,721 kg. 
• Operating Altitude & Endurance Range : over 40,000 feet altitude, maximum endurance of 40 hours,making it an ideal platform for extended surveillance missions.
• Versatile Operational Capabilities: 
  • It demonstrates all-weather capabilities, conducting over-the-horizon flights via satellite for up to 40 hours, regardless of weather conditions. 
  • It can safely integrate into civil airspace, facilitating joint forces & civil authorities in delivering real-time situational awareness across the maritime domain, regardless of day or night conditions. 
  • land and maritime surveillance, anti-submarine warfare, anti-surface warfare, strike operations, electronic warfare, and expeditionary roles.
  • Distinguishing attributes is its capability for automatic take-offs and landings, enhancing operational efficiency. 
  • The MQ-9B drones can provide roughly 80% of the capability of a large human-flown maritime patrol aircraft at about 20% of its cost per hour. 

Also Read: 

• Fifth Annual India-U.S. 2+2 Ministerial Dialogue
• NAMO Drone Didi Scheme

News Source: The Hindu 

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Indian Coast Guard celebrated its 48th Raising Day in New Delhi on 1st February.

48th Raising Day Of Indian Coast Guard

• Targeted force level: Indian Coast Guard, with 152 ships and 78 aircraft in its arsenal, is on track to achieve its targeted force levels of 200 surface platforms and 100 aircraft by 2030.
  • Example: Offshore  Patrol Vessels: (VIKRAM CLASS)- VIGRAHA, VIKRAM, VIJAYA and Aircrafts: Fixed Wing (Dornier 228), Rotary Wing (Chetak), Rotary Wing Advanced Light Helicopter (ALH).

Indian Coast Guard – Roles

• Safety and Protection of Artificial Islands and Offshore Terminals: Regular patrols are undertaken  to keep the Offshore Development Areas (ODAs),under surveillance.
• Protection of Fishermen: They conduct regular Community Interaction Programmes for fishermen to apprise them about  maritime security related aspects and safety measures to be adopted at sea.
• Search and Rescue: The Maritime Rescue Coordination Centers (MRCCs) coordinate the Search and Rescue (SAR) efforts undertaken by Indian Coast Guard units in liaison with the concerned state government departments.
• Prevention and Control of Marine Pollution: The Indian Coast Guard conducts regular training for all stakeholders and oil agencies, and continuously validates various contingency plans to prevent environmental damage in case of marine oil-spills. 
  • It has developed the capability to be the “first-responder” for oil-spills in Indian waters.
• Anti Smuggling operations: They coordinate with the Customs and other enforcement agencies and undertake operations to prevent ingress and egress of contraband, and other items on the banned list.
• Enforcement of Maritime Laws in Force: ICG ships and aircraft undertake regular patrols to enforce maritime laws, and other regulations and international treaties to which India is a signatory.
  • This has resulted in the seizure of weapons, contraband, and narcotics worth 15 thousand 343 crore rupees since its inception, with 478 crore rupees seized in 2023 alone.
• Safety of Life and Property at Sea: ICG ships and aircraft operations mitigate the effect of maritime accidents, and help in ensuring safety and security from natural or man-made disasters.
• Facilitate Scientific enquiry: ICG ships collect relevant information regarding meteorological and oceanographic data for analysis and use by the scientific fraternity.

Also Read: The Challenge Of Maritime Security In The Global South

News Source: News on Air

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Recently, the Union Cabinet approved the continuation of Animal Husbandry Infrastructure Development Fund (AHIDF), launched in 2020-21, to be implemented under Infrastructure Development Fund (IDF) with an outlay of Rs.29,610.25 crore for another three years up to 2025-26. 

About AHIDF Scheme: Animal Husbandry Infrastructure Development Fund 

Establishment: It has been announced under Atma Nirbhar Bharat Abhiyan stimulus package as a Central Sector Scheme for ensuring growth in infrastructure of Animal Husbandry. 

• Aim:  To create wealth creation in the livestock sector
• Eligibility: The following entities will be eligible under AHIDF:
  • Farmer Producer Organization(FPO) 
  • Private companies 
  • Individual entrepreneurs 
  • Section 8 companies 
  • Micro Small and Medium Enterprises
• Credit Guarantee: GoI will also provide credit guarantee to the MSME and Dairy Cooperatives up to the 25% of the credit borrowed from the Credit Guarantee Fund of Rs.750 crore.
• Interest Subvention: Government of India (GoI) will provide 3% interest subvention for 8 years including two years of moratorium for loan up to 90% from the scheduled bank and National Cooperative Development Corporation (NCDC), NABARD and NDDB.

Benefits of AHIDF Scheme

• Employment Generation: The AHIDF scheme will be a channel towards employment generation directly and indirectly to 35 lakh people through entrepreneurship development.
• Increase In Productivity & Farmers Income: The investment by incentivisation in AHIDF would leverage private investment 7 times and would also motivate farmers to invest more on inputs thereby driving higher productivity leading to increase in farmers income.

Achievements of AHIDF Scheme

• Increase of processing capacity by 2-4% in the dairy, meat and animal feed sector.
• The AHIDF has so far created an impact by adding 141.04 LLPD (Lakh Ltr. Per Day) of milk processing capacity, 79.24 lakh metric ton of feed processing capacity and 9.06 Lakh metric ton of meat processing capacity by adding to the supply chain since the inception of the scheme. 

Future Potential Of AHIDF Scheme

• Infrastructure Upgradation: After inclusion of new activities like technologically assisted breed multiplication farms, strengthening of veterinary drugs and vaccine units, etc., the scheme will exhibit a huge potential for the upgradation of infrastructure in Livestock sector.
• Opportunity In Animal Husbandry Sector: It is an opportunity for the investors to invest in the Livestock sector making this sector a lucrative one ranging from value addition, cold chain and integrated units to technologically assisted Livestock and Poultry farms, etc.

Conclusion

• AHIDF scheme is emerging as a path towards achieving the goal of doubling farmers’ income, tapping the livestock sector by bringing the private sector investment, bringing in the latest technologies for processing and value addition, and contributing to the Nation’s economy by promoting the export of Livestock products. 
• Such investments in processing and value addition infrastructure would also promote export of these processed and value-added commodities.

   Also Read: Rashtriya Gokul Mission

News Source: PIB

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The Union Cabinet  has ratified the Bilateral Investment Treaty between India and the United Arab Emirates.

• The two nations have also implemented a free trade agreement in May 2022. India received an FDI of $16.7 billion between April 2000 and September 2023.

What Is a Bilateral Investment Treaty?

• Definition: Bilateral Investment Treaties are international agreements establishing the terms and conditions for private investment by nationals and companies of one country to another country. 
• Provide guarantees: They set forth actionable standards of conduct that applied to governments in their treatment of investors from other nations, including: 
  • National  treatment (treating foreign investors at par with domestic companies)
  • Fair and equitable treatment (in accordance with international law)
  • Protection from expropriation (limiting each country’s ability to take over foreign investments in its territory).
• Alternative  dispute resolution mechanism: It provides a mechanism for dispute resolution whereby  an investor  has recourse to international arbitration, often under the auspices of the ICSID (International Center for the Settlement of Investment Disputes).

Association of India With Bilateral Investment Treaty

• Start: As  a part of its economic liberalisation programme of 1991 India started its BIT journey with the first BIT signed with the United Kingdom (UK) in 1994
• Present Status:  India has signed BITs with 83 countries till 2015 (of which 74 were in force) and  these BITs were negotiated based on the Indian Model BIT of 1993. 
• Need for a new BIT Model:  As per UNCTAD, so far 22 ISDS claims have been brought against India, challenging a wide array of regulatory measures such as the imposition of retrospective taxes, cancellation of spectrum licences, and revocation of telecom licences etc
  • White Industries v India case 2011: India  lost in the case with the  ISDS tribunal finding India in violation of  its obligations under the India-Australia BIT.
• Revised Model BIT of 2015: The new model aims to provide appropriate protection to foreign investors in India, while maintaining a balance between investor’s rights and the government’s obligations. Since then India has,
  • Signed:  New BITs/Investment Agreements signed with only four countries
  • In Negotiations: Is engaged in negotiations  with 37 countries/blocks
  • Termination:  India terminated  its older BITs with 77 countries (i.e., older BITs with only six countries are in force).

Significance Of Bilateral Investment Treaty

• Investor confidence: The Treaty is expected to improve the confidence of the investors, especially large investors, resulting in an increase in Foreign Investments and Overseas Direct Investment (ODI) opportunities 
• Investment Boost: The approval is expected to increase investments in India and is likely to help in realising the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, increasing exports etc.

Challenges Associated With Bilateral Investment Treaty

• Investor obligations: No binding investor obligations in the Bilateral Investment Treaties  restrict the host states without a legal basis to raise counter-claims on grounds of  violation of local law, human rights obligations, environmental obligations etc against the erring investors.
• Dispute resolution: The timely settlement of investment disputes through pre-arbitration consultation or negotiations is not followed resulting in  significant cost to the exchequer.
• Drafting of BITs:  The text of BITs has certain ambiguities which result in  overbroad interpretation by arbitrators and tribunals, investment disputes or claims against India and the abuse of certain provisions by investors.
• Transparency in the ISDS proceeding: The government is bypassing its legal obligations under the domestic law by acording  primacy to the confidentiality orders of the arbitral tribunal and denying  supplying the information on ISDS under the Right to Information Act.
• Lack of expertise: India does not have sufficient number of lawyers/judges with the requisite expertise and experience in arbitration and thus  huge fees are paid to foreign lawyers and law firms engaged to represent India in investment arbitration

Suggestions For Bilateral Investment Treaty: From Standing Committee on External Affairs Report

As per The Standing Committee on External Affairs report 2021  recommendations on the subject ‘India and Bilateral Investment Treaties’

• Renewed Approach towards BITs: India should focus on signing new BITs with already partner countries, signing BITs selectively in identified priority sectors, and early completion of treaty negotiations
• India as a hub for Arbitration:  Ministry of External Affairs should  ensure early implementation of the agreement  signed  with the Permanent Court of Arbitration (PCA), under which an arbitration administered by PCA can be conducted in India and also promoting the New Delhi International Arbitration Centre as a world-class arbitration centre.
• Developing local expertise: To  develop  panels of domestic lawyers (and law firms) with  the requisite expertise in investment arbitration to represent India, and experience in investment treaty law to ensure good drafting of BITs as well as training government officials in the field of investment treaties.

Also Read: INDIA-UAE Relations

News Source: PIB                      

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A Green Propulsion System, developed under the Technology Development Fund (TDF) scheme of the Defence Research and Development Organisation (DRDO), has successfully demonstrated in-orbit functionality on a payload launched by PSLV C-58 mission. 

• The TDF is a flagship programme of the Ministry of Defence executed by DRDO under the ‘Make in India’ initiative for funding innovation in defense and aerospace, especially to start-ups and MSMEs.

Green Propulsion System

• The Green Propulsion System consists of indigenously-developed propellant, fill and drain valves, latch valve, solenoid valve, catalyst bed, drive electronics, etc.
• ISRO has made a beginning by developing an eco-friendly solid propellant based on Glycidyl Azide Polymer (GAP) as fuel and Ammonium Di-Nitramide (ADN) as oxidizer at the laboratory level, which will eliminate the emission of chlorinated exhaust products from rocket motors.
• Executed by Bengaluru-based startup Bellatrix Aerospace Pvt Ltd, the project involves a 1N Class Green Monopropellant thruster designed for microsatellite attitude control and orbit maintenance.

Significance Of Green Propulsion Systems

• Environment-Friendly: This innovative technology has resulted in a non-toxic and environment-friendly propulsion system for low orbit space. 
• Ideal for Space Missions: It is ideal for those space missions with high thrust requirements.
• Demonstration Of: Pulsed mode and steady state firing in vacuum, passivation of residual propellant in outer space, propellant realisation and establishing of filling procedure under the TDF.

What Are Green Propellants?

• Green propellants offer 50% higher performance over a traditional hydrazine propulsion system, due to its higher density and higher specific impulse (Isp). 
• They are easier to handle and, therefore, lower cost to integrate and fuel for operation.

News Source: PIB

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This article is based on the news “Budget: Govt panel to look into India’s demographic challenges” which was published in the Economic Times. While presenting the Interim Budget 2024, the Finance Minister said that a high-powered committee will be constituted to consider the challenges arising from “fast population growth and demographic changes”.

Current Status of India’s Demography

• Population Growth Trend: According to the National Family Health Survey (NFHS)-5 for 2019-2021, total fertility rate declined from 2.2% to 2% in comparison to the last survey held in 2015-16.
• Demography Comparison with Global Statistics: India, the most populous country, covers 2.4% of the global surface area and holds more than 18% of the world’s population.
  • According to the United Nations’ World Population Prospects (WPP) report of 2022, India has surpassed China in 2023 as the world’s most populous country. 
• Youthful Demographic Profile: According to the report of World Population Review, the median age in India is 28 years, which is much younger than major counterparts like China (38years), Japan (48years), Western Europe (43years), US (38years).
• Working Population: The share of the working population has grown from 50% to 65%. In the next 25 years one in every five working age group people will be living in India.
• Sex Ratio: In 2011, the sex ratio was 943 females per 1,000 males, by 2022, it is expected to be approximately 950 females per 1,000 males.
• Life Expectancy: In 1947, it was 32 years but in 2019 it went up to 70 years.
• Infant Mortality Rate: Declined from 133 in 1951 to 27 in 2020.
• Global Hunger Index: India stands 101 out of 116 nations.

What is Demographic Change?

• Definition: Demography is the study of human populations, and demographic change is about how human populations change over time. It encompasses various aspects like population size, composition (age, ethnicity, gender), and gender distribution.

Factors Affecting Demography

• Natural Factors: Birth rate, death rate, migration etc are the natural factors affecting demography of a nation.
  • Migration –
    • Migration is one of the major reasons behind changing the demography of the country.
    • When people move in a country, place or locality is said to immigration whereas when people move out of a country, place or locality is said to be emigration.
  • Formula for changing population are as follows:
    • Population change = (Births + Immigration) – (Deaths + Emigration)
• Public Policy: Public policy affects demography in a number of ways. Some of the most common areas are Family policy, immigration policy, health policy, education policy, economic policy, etc.
• Environmental Factors: Environmental factors and demography have a complex, interrelated relationship, influencing each other in various ways.
  • Climate Change: Rising temperature, changing precipitation patterns, sea level rise can impact food security, water availability, and disease prevalence, leading to migration, altered life expectancy, and potentially changing birth rates.
  • Natural Disasters: Natural disasters events like floods, droughts, earthquakes, and wildfires can significantly displace populations, causing migration and affecting birth and death rates.
  • Environmental Pollution: Air and water pollution can negatively impact health, leading to increased mortality and potentially affecting fertility rates. People migrate from metro cities to villages when all governments are all.

Implications of Demographic Challenge

• Economic Implication

  • Labour Force: High immigration can boost the workforce but it is a burden on the economy if they are not skilled. Therefore high labour force migration may require investment in training and integration.
  • Consumption spending: Changing household composition and age structures can shift consumer spending patterns, impacting industries and businesses that cater to specific demographics.

• Social Implication

  • Family structures: Changing demographics can influence family sizes, potentially giving a boost to nuclear family concepts, living arrangements, and gender roles, impacting social norms and expectations.
  • Cultural diversity: Increased migration can lead to greater cultural diversity, which can enrich communities but also present challenges in integration and social cohesion.

• Political Implication

• • Social unrest and instability: Rapid demographic changes or perceived inequalities can contribute to social unrest and political instability.
  • Representation and voting patterns: Changing demography might shift political representation and voting patterns, potentially influencing policy priorities.

What Is Demographic Dividend?

• Demographic dividend refers to the growth in an economy that is the result of a change in the age structure of a country’s population. This typically happens due to declining birth rates and mortality rates, leading to larger proportion of the population being in the working age group (15-64 years old) compared to the dependent groups (children and elderly)

What are the Conditions for a Demographic Dividend?

• Decline in Fertility Rates: When fewer children are born per family, the proportion of dependents in the population shrinks.
• Improved Healthcare and Mortality Rates: As people live longer, the working-age population expands further.

What Are Demographic Challenges in India?

• Unemployment Issue: The biggest demographic challenge before the nation is to ensure adequate supply of jobs in line with population growth. According to Forbes, the unemployment rate in 2023 was 10.05%.
• Low Human Development parameters: The rank of India in the United Nations Development Program (UNDP) Human Development Index 2021 was 132 out of 191 countries, which is seriously alarming.
• Gender Imbalance: India has a lower number of females compared to males that is 106 males per 100 females (2023 data). This raises concerns about gender equality, social issues like child marriage, and potential future labour shortage.
• Healthcare and Inequality: Rural areas and disadvantaged communities often lack adequate healthcare facilities and personnel. Increasing demographic change creates disparities in health outcomes and life expectancy.
  • According to the Rural Health Statistics 2021-2022, There is a shortage of 83% of surgeons, 74% gynaecologists, 79% physicians in rural India.
  • In infrastructure, less than 45% of Primary Health Centres (CHCs) function on 24*7.
• Educational Disparity: While literacy rates are rising, disparities persist across regions and social groups. Skill development also needs improvement to match labour market demand
  • As per the National Education Policy (NEP) 2020, India aspires to achieve a Gross Enrollment Ratio (GER) of 50% by 2035.
  • The All India Higher Education Survey reveals that the Gross Enrolment Ratio is still low at 27.2 percent.
• Unorganised Demographic Divide: Former Vice chairman NITI Aayog, noted that regional variation in different states are one of the biggest challenge for India’s demographic challenge. One of the best examples is the demographic divide between Southern state Kerala and Northern State Bihar.
  • The Infant Mortality Rate of Kerala in 2020 was 6 deaths per 1,000 live births but for Bihar, it was 47 deaths for every 10,000 live births according to NFHS-4.
  • Kerala is currently heading for zero growth rate in its population whereas the population growth rate of Bihar during 2011-2021 was 18.15%, the highest in India.

Way Ahead

• Improving Education Standards: Demographic changes increase rural and urban divide. Therefore, the public school system should ensure child participation in school education irrespective of rural or urban settings.
  • The combined Centre-state expenditure on education has remained at 2.8% of GDP through 2014-20.
  • This is far from the 6% of GDP promised in the 1968 education policy, which was reaffirmed in the 2020 National Education Policy.
• Improving Healthcare Requirements: Healthcare sector should be at forefront of government budgeting and schemes and better healthcare services should be made available in real time situations.
  • The National Health Policy of 2017 aimed for government spending on healthcare to reach 2.5% of GDP by 2025. 
  • But the budgetary outlay for healthcare has been range-bound between 1.2% and 1.4% in the period 2014-20. 
• Bridging Gender Gaps: Women and girls can only benefit in a 3 trillion dollar economy when they are equipped with new skills and opportunities. 
  • This can be done by initiatives like boosting tax incentives for their part-time job, increasing the creche system, impacting better childcare benefits, and legal compulsory gender budgeting.
• Situation-based Approach in States: Situation based approach in states will bring governance reforms that would improve challenges caused by demographic challenges. 
  • States need to work on different fronts based on different issues they face related to skilling, urbanisation, migration, ageing, etc.

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This article is based on the news “A NEW SCHEME OF BIO-MANUFACTURING & BIO-FOUNDRY TO PROVIDE ENVIRONMENT FRIENDLY ALTERNATIVES” which was published in the Indian Express. Recently, the Finance Minister of India proposed a new scheme of Bio manufacturing  and Bio­foundry in the Interim Budget 2024-25.  

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Bio Economy in Interim Budget 2024-25

• Transform Manufacturing Paradigm: This scheme will help in transforming contemporary consumptive manufacturing paradigm to the one based on regenerative principles. 
• Biotech Sector: The Indian biotechnology sector has witnessed significant growth, and the integration of Bio manufacturing and Bio­foundry holds immense promises ranging from pharmaceuticals to sustainable energy.

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About Biotechnology 

• Biotechnology: It is a multidisciplinary field that involves the integration of natural sciences and engineering sciences in order to achieve the application of organisms, cells,and molecules for products and services. 
• Integration with Bio Manufacturing and Bio Foundry: Biotechnology integrates genetic manipulation, Bio­ Manufacturing produces biomaterials, and Bio­foundry employs automated processes intersecting fields advancing innovation and sustainable solutions.

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Status of Biotechnology Industry in India

• Global Share: India’s bioeconomy industry accounts for approximately 3% share of the global Biotechnology industry. 
• Share in GDP: In 2021-22, the Indian Bioeconomy sector contributed nearly 2.6% share in India’s Gross Domestic Product (GDP). 
• Biotech Startups: The number of biotech start-ups in India has surged from 50 to over 5,300 in the last ten years. 
  • Biotech start-ups emerging from a robust talent pool are predicted to further double, exceeding more than 10,000 by 2025.

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About Bio ­Manufacturing and Bio­foundry

Bio­ Manufacturing

• Bio Manufacturing: It is the use of biological systems that have been engineered, or that are used outside their natural context, to produce a product. 
  • It uses living systems, particularly microorganisms and cell cultures, to produce molecules and materials on a commercial scale. 
• Key Aspects: Includes the selection or engineering of host organisms, optimization of growth conditions, genetic modification for enhanced productivity, and downstream processing to extract and purify the desired product.
• Potential: It has the potential to transform the global industrial system, with up to 60% of physical inputs to the global economy expected to be producible using this technology. 
• Uses: Bio­ Manufacturing is widely used in the production of various products, including pharmaceuticals, biofuels, enzymes, and other chemicals.
• Application of Synthetic Biology: Synthetic biology includes creation of new genomes, biological pathways, or organisms not found in nature and redesign of existing genes, cells, or organisms. 
  • These capabilities allow for the manufacture of novel products, and also new approaches to existing disciplines such as gene therapy in healthcare. 

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Bio­foundry

• BioFoundry: Biofoundry is a place where biomanufacturing meets automation. A Bio­foundry is a specialized facility or laboratory equipped with automated tools and technologies for the high-throughput design, construction, and testing of biological systems. 
  • High-throughput (HT) refers to the use of automated equipment to quickly test large numbers of samples for biological activity.
• DBTL Cycle: At the core of biofoundries is the Design-Build-Test-Learn (DBTL) cycle, which involves: 
  • Computational design of DNA genetic parts. 
  • Physical assembly of designed DNA parts. 
  • Prototyping and testing performance of designs in living cells. 
  • Applying modeling and computational learning tools to inform the design process. 
• Goals of Bio-Foundries: Includes accelerating the engineering of biological systems, improving reproducibility, and standardizing the design and construction processes. 

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Significance of Bio­ Manufacturing and Bio­foundry in India

• Economic Growth: They can catalyze economic growth by providing sustainable alternatives to traditional manufacturing methods. India is regarded as one of the leading destinations for bio innovation and biomanufacturing and is thus recognized as a sunrise sector and a critical component of India’s mission of becoming a US$ 5 trillion economy by 2024.
  • According to the Science & Technology Minister, India is poised to be among the top 5 global Bio­ Manufacturing hubs by 2025. 
  • In 2014, India’s bioeconomy stood at about $10 billion,and reached $80 billion in 2023 and is expected to touch $300 billion by 2030.
• India as the Global Biomanufacturing Gub: With its infrastructure, pharmaceutical manufacturing expertise, and the available workforce, India aims to become a leading bio manufacturing hub with plans to increase fermentation capacity tenfold to 10 million litres in the next three to five years. 
  • According to the Australian Strategic Policy Institute, India is among the top performers in the field of biomanufacturing in both the quality of research output and in the share among research publications. 
• Cost-Effective Production: Bio­ Manufacturing and Bio­foundry are crucial for the pharmaceutical industry, enabling the cost-effective production of biopharmaceuticals and vaccines, enhancing India’s global competitiveness.
  • India has significant potential in low-cost biomanufacturing, particularly in the production of enzymes, reagents, research materials, and equipment, with the cost of manufacturing in India being around 33% lower when compared to that in the U.S. 
• Sustainable Practices: Bio­ Manufacturing emphasizes the use of renewable resources, contributing to sustainable and environmentally friendly production methods. 
  • The move will help in developing environment-friendly alternatives such as biodegradable polymers, bio-plastics, bio-pharmaceuticals and bio-agri-inputs, to further advance India’s sustainability mission to achieve net zero goals by 2070. 
• Diversification of Industries: The diversification of Bio­ Manufacturing through bio-foundries can lead to the establishment of new industries and job creation.
  • For example, Bio-foundries provide a platform for the rapid prototyping and testing of biological systems, facilitating innovation across industries, which can lead to increased efficiency and their applications in other industries like agriculture, energy, etc.

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Challenges Associated with Bio­ Manufacturing and Bio­foundry in India

• Technological Barriers: India lacks access to cutting-edge technology with limited automation infrastructure, inadequate bioprocessing technologies, insufficient data integration and analytics, limited synthetic biology tools, etc. to scale up the Bio­ Manufacturing sector.
• Regulatory Framework: Due to the absence of regulatory guidelines customized to the scientific developments in synthetic biology, the research practices seem to have largely evolved with less government oversight, which may raise problems related to product safety and compliance. 
  • Further, regulating these technologies is a complex endeavor that involves balancing the potential benefits of scientific progress and its potential application for bioterrorism or biowarfare.
• Ethical Considerations: Ethical considerations and public engagement are crucial for shaping policies and regulations. The public perception of genetically modified organisms (GMOs) and synthetic biology can impact the acceptance of bio-manufactured products.
• Concerns over Potential Chinese Dominance: China has expressed its intention to capture this market, leading to rising concerns about its dominance in the industry.

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Initiatives to Promote Bio­ Manufacturing and Bio­foundry in India

• Establishment of DBT: India realized the potential of biotechnology very early and the country established the Department of Biotechnology (DBT) within the Ministry of Science and Technology in 1986 to support research and development activities in the sector.
  • The national initiative “Fostering High Performance Biomanufacturing: An integrated approach towards promoting Circular Economy for Green, Clean and Prosperous India” has been proposed by the Department of Biotechnology.
• Policy Initiatives: 
  • Proposed scheme of Bio­ Manufacturing and Bio­foundry in the Interim Budget 2024-25.  
  • India’s National Biotechnology Development Strategy envisions India as a “Global Biomanufacturing Hub” by 2025, and the strategy sets a target of $100 billion for the hub.
• International Cooperation: In 2021, the Quad (Australia, India, Japan, and the United States) set up a Critical and Emerging Technology Working Group to facilitate cooperation, monitor trends, and scout for opportunities related to developments in critical and emerging technologies, that included biotechnology. 

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Way Forward

• Establishment of QUAD-led Bio­ Manufacturing Hub in India: Quad should establish a Bio­ Manufacturing hub in India with US’s funding, advanced biotechnology of Japan, Australia and the US, and India’s skilled manpower and the potential to provide affordable scale.
• Investment in Technology Infrastructure: India needs to commission detailed technology landscaping studies at the global level (Quad, BRICS, ASEAN, Asia Pacific) to understand regional and global science, applications, and environmental and biosecurity challenges in synthetic biology.
  • The expansion of start-ups and the advancement of research would be aided by an increase in the number of biotech incubators, which is essential for the success of the Indian biotech industry. 
• Strengthening physical infrastructure: Invest in upgrading India’s physical infrastructure for biomanufacturing including increasing fermentation capacity and improving manufacturing facilities.
• Resolving Ethical Concerns: Addressing ethical concerns proactively and involving the public in decision-making can build trust, mitigate resistance, and shape policies that reflect societal values.
• Establishment of Regulatory Guidelines: Develop comprehensive regulatory guidelines tailored to advancements in synthetic biology which will ensure product safety, compliance, and facilitate responsible scientific practices, fostering industry growth. 
  • It is important to develop a national strategy for biomanufacturing advancement in order to improve our country’s scientific and economic competitiveness.
• Ensure Quality Education and Training: Permanent training facilities can be established in universities, with experts from other countries providing the training. Recent policy changes in India allow the establishment of foreign universities and can encourage scholar exchange programmes.

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Conclusion

The integration of Bio­ Manufacturing and Bio­foundry in India holds immense potential for driving economic growth, fostering innovation, and addressing global challenges. With strategic investments, regulatory reforms, and capacity building, India can position itself as a leader in Bio­ Manufacturing, contributing to a sustainable and bio-based future.

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