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• India’s leopard population rose by 8% from 12,852 in 2018 to 13,874 in 2022, according to a report made public by the Environment Ministry.

Fifth Estimation Cycle Reveals India’s Leopard Population Soars to 3,907

• The highest number of leopards were reported in Madhya Pradesh (3,907).
• Involved Organisations: The National Tiger Conservation Authority (NTCA) and Wildlife Institute of India (WII), along with State Forest Departments, estimated the leopard population for the fifth cycle.
• Coverage of the survey: Leopard Population concentrated on roughly 70% of the animals’ predicted habitat and encompassed 18 states in India. The estimation covered the main areas for tiger conservation—forested habitats—within 18 tiger states. High Himalayan and non-forested areas were not included.
• Methods used: 85,488 photos of leopards were taken using camera traps at 32,803 places and a thorough foot survey covering 6,41,449 km. These photos offer important information on the distribution and abundance of leopards.

Leopard Population in India: Stable Overall, Varied Trends Across States, and Conservation Challenges

• Population Estimate: 13,874 leopards are thought to exist in India, a stable number when compared to the 2018 estimate. 
  • Remarkably, this estimate encompasses 70% of the habitat used by leopards; it does not include locations like the Himalayas or semi-arid areas.
• Geographical  Trends: The population of Central India is constant or slightly increasing, although areas such as the Shivalik hills and Gangetic plains are declining. 
  • The selected areas are growing at a rate of 1.08% annually overall.
• Distribution by State: With 3907 (2018: 3421) leopards, Madhya Pradesh has the highest population in the nation. It is followed by Maharashtra (2022: 1985; 2018: 1,690), Karnataka (2022: 1,879; 2018: 1,783), and Tamil Nadu (2022: 1,070; 2018: 868).
• Environment: The tiger reserves or locations with the greatest concentration of leopards are Satpura (AP), Panna (MP), and Nagarjunasagar Srisailam (AP).
• Declining Population: Arunachal Pradesh, Assam, and West Bengal recorded a combined 150% increase to 349 large cats, whereas Uttarakhand reported a 22% fall in big cat numbers, presumably due to poaching and man-animal conflict.

News Source: The Hindu

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Recently the Cabinet approved the establishment of International Big Cat Alliance

About International Big Cat Alliance

• Goal: On April 9, 2023, India launched it with the goal of protecting the seven large cats that inhabit our planet: the tiger, lion, leopard, snow leopard, cheetah, jaguar, and puma.
• Participation: It is open to 97 ‘range’ countries that contain the big cats’ native habitats, as well as other interested states, international organisations, and so on.
• Collaborative forum: It will give the participating countries a forum to exchange information and experience and offer assistance with habitat restoration projects.
• Main Initiatives: Advocacy, collaboration, knowledge e-portal, capacity building, eco-tourism, expert group collaborations, and financing tapping will be among its main initiatives.
• Conservation efforts: To support conservation efforts, International Big Cat Alliancewill also support currently-existing intergovernmental platforms that are species-specific. 

Organisational Structure of International Big Cat Alliance

• Composition: The International Big Cat Allianceis governed by a General Assembly made up of all member nations, an elected member nations Council, and a Secretariat.
• Appointment: On the Council’s suggestion, the General Assembly names the Secretary General of International Big Cat Alliance.
• Funding: The International Big Cat Allianceis planned to be self-sustaining through membership fees, contributions from bilateral and multilateral institutions, and the private sector after the first five years, which will be backed by India’s ‘total grant assistance’ of $100 million.

News Source: PIB

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Recently, the first team of Indian “technical personnel” reached Male, Maldives to replace Indian military personnel.

India’s Strategic Moves: Military Personnel Shift in Maldives and Infrastructure Boost in Mauritius

• Maldives:
  

• The first team of Indian technical personnel to replace the Military personnel had arrived in Maldives
  • India to pull out its  80-odd military personnel stationed in the Maldives.

• Mauritius: 

• An  India built airstrip and a jetty was inaugurated at the Agaléga islands
  • India and Mauritius signed a Memorandum of Understanding for the “improvement in sea and air transportation facilities” at Agaléga island in 2015.

Strategic Significance of  Mauritius for India

• Build close military capabilities: Indian assistance aims to enhance the capabilities of the Mauritian Defence Forces with  improved logistics and maritime patrol capabilities on the island. 
  • India has a strategic angle to the project as it would be allowed to use the facilities “subject to prior notification” of Mauritius.
• India as the Net security provider for the Region:  Mauritius due to its location can assist India in a response to counter-piracy, terrorism, narcotics and human trafficking, and illegal and unregulated fishing
  • Mauritius was admitted as a member of the Colombo Security Conclave, a regional grouping focused on maritime security that consists of India, Sri Lanka, and the Maldives
• Trade and Tourism: Mauritius is one of the biggest FDI originating countries for India with a   cumulative FDI worth USD 161 billion in  the two decades from 2000 – 2022 (26% of total FDI inflows into India). It is also a major tourist destination for Indians
• To counter Chinese presence in the Region: China has its overseas military facility in the Indian Ocean in Djibouti which is quite close to mauritius. Therefore India through its assets can keep an eye on Chinese activities in the area.

Strategic Significance of  Maldives for India: 

• Effective monitoring: India shares its Exclusive Economic Zone with Maldives thus enhancing and effective monitoring of the entire region will help to maximise their resource sourcing and extraction potential.
• Strategic Location: It is geographically positioned like a ‘toll gate’ between the western Indian Ocean chokepoints of the Gulf of Aden and the Strait of Hormuz on the one hand, and the eastern Indian Ocean chokepoint of the Strait of Malacca on the other.
• Maldives as India’s Backyard: China has moved swiftly to increase their influence in the Island nation playing the Anti India narrative of domestic politics which is perceived as Chinese access to India’s backyard
  • Example: The docking of the Chinese research submarine in Maldives while India is asked to remove its military personnel
• Cooperation and collaboration: Maldives is a member of SAARC and IORA groupings etc  and it is important for India to have Maldives on board to maintain its leadership in the region. 
  • Example: Maldives was reluctant to follow India’s call for boycott of the SAARC summit in Pakistan after the Uri attack.
  • Example: India, Sri lanka and Maldives participating in the Dosti Exercise together
• Ensuring Safety and Security of Indian Diaspora: Indian expatriate community in the Maldives has an approximate strength of 27,000 living peacefully with Maldivians and other expatriates, with no major issues being faced by them. 

News source: The Indian Express

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Recently, the President of India inaugurated a National seminar on ‘Tribes of Keonjhar: People, culture and Heritage’.

Keonjhar: A Glimpse into Demographics and Rich Cultural Diversity

• According to the 2011 Census Report, Keonjhar is home to 45 percent of the Scheduled Tribes (ST) population from the district. 
• The district is also known as a mining hub due to massive high-quality deposits of minerals like iron ore and chromite.
• Prevalence of Major Tribes including PVTGs :  Munda, Kolh, Bhuiyan, Juang, Saanti, Bathudi, Gond, Santhal, Orang and Kondh.

Major Festivals of Keonjhar: Celebrating Festivals and Expressing Traditions through Dance

• Sarhul (festival of flowers) & Sohrai( Festival for Cattle Prosperity ) of the Mundas. 
  • Other Festivals of Keonjhar : Karmapuja, Bodam,Chaitra parab OR Uda parab,Nukhai, Raja Parab, Baruni Jatra, Rath Jatra etc.
• Major Dances of Keonjhar : Changu Dance, Chhau Dance, Juang Dance, Ho Dance.

News Source: PIB

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A recent Lancet study has highlighted India’s growing obesity problem, especially among the young population.

Rise of Obesity and Underweight Issues Across Generations in India

• Alarming Rise in Overweight among Children and Teens:

  • Overweight problem: The  study showed a new trend of overweight among children and teenagers in India, aged between five and 19. 
    • According to the study, 12.5 million children  (7.3 million boys and 5.2 million girls) in 2022 were overweight. 
    • The overweight figure was 0.4 million in 1990. 
  • Rise in obesity percentage: The prevalence of obesity among children and teenagers has climbed to over three per cent, indicating a notable surge compared to figures from 1990.

• Status of obesity: 2022 v/s 1990

• • Obesity is not confined to younger age groups; it is also prevalent in adults. 
  • Obesity among women: The new study reveals that 44 million women above 20 in India were obese. 
    • Among women, the prevalence of obesity has seen a sharp rise, with 9.8 per cent now classified as obese.
      • It has increased by 8.6 percentage points since 1990.
  • Obesity among men: 26 million men aged above 20 in India were found to be obese 
    • The obesity rate among men has increased to 5.4 per cent, representing a 4.9 percentage point rise over the same period.

• India’s Global Position:

• • Regarding obesity prevalence among women, India ranks 182nd out of 197 countries worldwide as of 2022.
  • For men, India holds the 180th position globally.
  • Among girls and boys, India is placed 174th on the global scale.
• Problem of Underweight:  The study has also highlighted significant undernourishment across all age groups in India.
  • Global ranking for underweight: India holds the highest global ranking for underweight girls and the second-highest for boys.
    • In 2022, approximately 35 million girls and 42 million boys between the ages of five and 19 were underweight, compared to 39 million girls and 70 million boys in 1990.
      • This reflects a seven-percentage-point decrease for girls and a 23-percentage-point decrease for boys over the period.
  • Underweight among Adults: Among adults, the number of underweight individuals has decreased as well.
    • In 2022, 61 million women and 58 million men were underweight.
      • The data shows a decrease in percentage  from 41.7 per cent in 1990 to 13.7 per cent for women and from 39.8 per cent to 12.5 per cent for men.

Factors Influencing Obesity Across Age Groups

• Dietary Habits: Unhealthy eating patterns, excessive consumption of processed foods, sugary beverages, and lack of balanced nutrition contribute to childhood obesity.
• Physical Inactivity: Sedentary lifestyles, reduced outdoor play, and limited physical activity play a significant role.
• Screen Time: Excessive screen time (TV, computers, smartphones) reduces physical activity and promotes weight gain.
• Genetics: Genetic predisposition can influence a child’s susceptibility to obesity.

Reasons for rising obesity faster in women: 

• Cultural, Socio-Economic, and Biological Reasons: Obesity rates among women are increasing due to a combination of cultural, socioeconomic, and biological factors.
• Barriers to Physical Activity and Limited Access to Healthy Food: Women in traditional settings may encounter obstacles in accessing physical activity and have restricted access to nutritious food options.
• Prioritisation of Family Nutritional Needs: Women often prioritise the nutritional requirements of other family members over their own.
  • It compels them towards unhealthy eating habits.
• Limited Healthcare Access and Education: A lack of access to healthcare and education regarding obesity and healthy lifestyle choices further contributes to the rising obesity levels in women.
• Biological Influences: Biological factors such as pregnancy and menopause uniquely impact women’s weight, potentially leading to weight gain.
• Significant Increase in Sedentary Activity:  Surveys conducted in rural areas have highlighted a notable increase in sedentary activity, rising from 34 percent in 1975-79 to 74 percent by 2012.
  • It has caused a higher prevalence of obesity.

News Source:  Indianexpress

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Recently the Union Cabinet approved Nutrient Based Subsidy (NBS) rates for KHARIF Season, 2024 on Phosphatic and Potassic (P&K) fertilisers and Inclusion of 3 new Fertiliser grades under NBS scheme.

What is Nutrient Based Subsidy?

• Farmers receive subsidised rates for fertilisers under the NBS programme.
• This programme covers fertilisers that are based on the nutrients N (Nitrogen), P (Phosphorus), K(Potash), and S (Sulphur).
• Subsidy on Micronutrients: Furthermore, fertilisers enhanced or fortified with micronutrients like zinc and molybdenum (Mo) are eligible for further subsidies.
• Every year, the government announces the P&K fertiliser subsidy.
• Basis of Calculation:It is calculated on a kilogramme basis and accounts for many factors such as the country’s inventory level, exchange rate, and P&K fertiliser prices domestically and internationally.
• To achieve the correct balance of NPK fertilisation, or (N:P: K= 4:2:1), NBS policy seeks to boost the usage of P&K fertilisers.
• Nodal Ministry: Ministry of Chemicals & Fertilizers.

Understanding Macronutrients, Micronutrients, and India’s Role as a Global Consumer

• Macronutrients: These are the elements that are needed in relatively greater quantities and include nitrogen (N), phosphorus (P), potassium (K), calcium, sulfur (S), and magnesium.
• Micronutrients: Smaller amounts of iron (Fe), zinc (Zn), copper, boron, manganese, molybdenum, chloride, and other elements are needed for crop plant growth and development.
• NPK (nitrogen, phosphorus, and potassium) fertilisers are the most widely used of the many kinds, and urea is the fertiliser that Indians use the most.
• India uses more than 55.0 million metric tonnes of fertiliser annually, making it the world’s second-largest fertiliser consumer.

Fertilizer Subsidies: Mechanisms, Beneficiaries, and the Shift to Direct Benefit Transfer

• Benefit to fertiliser firms: The farmer who pays MRPs below the rates set by the market is ultimately the one who benefits from the subsidy, even though it goes to fertiliser firms.
• Direct Benefit Transfer: The Direct-Benefit Transfer (DBT) scheme would only pay subsidies to the corporations following actual merchant sales to farmers.
• Role of merchants: Every merchant now has a point-of-sale (PoS) device connected to the e-Urvarak DBT portal run by the Department of Fertilisers.
• Using a Kisan credit card or Aadhar card: When purchasing fertilisers at a reduced price, a buyer must provide their Kisan Credit Card number or Aadhaar unique identity.
• E-urvarak platform: A corporation can only make a subsidy claim once the sale has been recorded on the e-Urvarak platform.

News Source: PIB

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Recently the  Cabinet has specified the royalty rate for 12 critical minerals, which primarily include beryllium, cadmium, cobalt, gallium, indium, rhenium, selenium, tantalum, tellurium, titanium, tungsten and vanadium.

What are Critical Minerals? – A Spotlight on Critical Minerals

• These minerals are necessary for national security, economic growth, and renewable energy. 
  • The development of numerous industries, such as high-tech electronics, telecommunications, transportation, and defence, depends on these.
• Identified Critical Minerals: The Expert Committee under the Ministry of Mines has identified a set of 30 critical minerals for India.
• • These are Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium, and Cadmium.

What are Royalty Rates? Payments for Resource Extraction and Mineral Rights Under MMDRA 1957

• Fees paid to the government for the removal of resources or minerals from a designated area are known as royalty rates.
• MMDRA 1957’s second schedule addresses mineral royalty rates.
• These minerals have been removed from the list of atomic minerals, and the commercial sector is now able to bid for them.

Key Features of Mines and Minerals (Development and Regulation) Amendment Act 2023:

Exploring Critical Mineral Uses and Estimated Reserves in India

News Source: PIB

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Theyyam artists performed at the Challa Kadankottu Makkam Bhagavathi temple in Kannur district.

Theyyam: Sacred Rituals in Northern Kerala – Dance, Deities, and Divine Expressions

• It is a ritualistic dance performed in northern Kerala and parts of Karnataka, often by people who are momentarily treated as God-like entities during the act.
• It is performed at local temples or groves, locally known as ‘kavu’, and is often the village’s biggest festival, cutting across religions.
• It is similar to a practice in Karnataka, called ‘Bhuta Kola’. 
• It incorporates dance, mime and music to worship heroes, deities and spirits of ancestors.
• Themes: Vaishnavism, Shaktism and Shaivism
• Performed by: It is performed mainly by males, except the Devakkoothu theyyam. 
  • The Devakkoothu is the only Theyyam ritual performed by women.

Features: A Spectacle of Unique Rituals, Divine Attire, and Natural Elegance

• It is an open theatre.
• Each Theyyam has its own unique make-up, costumes, headgear and series of ritual practices.
• Right to perform each deity: often reserved for specific communities.
• Main attractions: The costume, elaborate headgear (Mudi) and facial and body makeup.
• Ingredients: Only natural materials are used to make the traditional dyes. 
  • Red is a dominant colour made with a mixture of turmeric and limestone. 
  • Black is produced with rice paddy husk burned and mixed with coconut oil.
  • White is made using Rice paste. 
  • Yellow using Turmeric. 

Types of Theyyam:  There are over 400 theyyams documented. 

• Chamundi Theyyam: It is popular in the Northern Malabar region of Kerala.
• Vishnumoorthi: It is the most popular Vaishnava Theyyam. This theyyam narrates and performs the story of Hiranyakashipu’s death by the Lord Vishnu in his avatar of Narasimham. 
• Gulikan: It is believed to be an incarnation of Yama, the Hindu god of death and justice.
• Kuttichathan: It is the theyyam of the Brahmin caste.

News Source: The Hindu

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Recently, researchers at the University of British Columbia in Canada floated a new clinical trial to examine whether cannabidiol could be used to treat bipolar depression.

Exploring Cannabis (Sativa): A Millennia-Old Herb with Medicinal and Recreational Significance

• It is an herbaceous plant that belongs to the family Cannabinaceae.
• It has been used by humans for over 5,000 years for medicinal and recreational uses, firstly in Central and Northeast Asia and subsequently spreading worldwide.
• Cannabis, or marijuana, is undoubtedly one of the most widely used illicit drugs.
• It has a complex chemical composition that includes cannabinoids which are a group of secondary metabolites, several of which are responsible for the psychotropic effects.

Cultural and Medicinal Significance of Cannabis: Medicinal Marvels in Pain Management and Neurological Conditions

• Reduction in Chronic Pain: Medical marijuana may be able to lessen discomfort and inflammation, particularly in cases of cancer and neuropathic pain.
• Vomiting and nausea: Medicinal cannabis may help avoid or lessen vomiting and nausea brought on by chemotherapy or other drugs.
• Treatment for Epilepsy: Medicinal cannabis may help lessen the frequency and intensity of seizures, particularly in cases of uncommon epilepsy like Lennox-Gastaut syndrome and Dravet syndrome.
• Alzheimer’s disease: By decreasing the accumulation of amyloid plaques in the brain, medical cannabis may help slow down the disease’s progression.
• Multiple sclerosis: Medical marijuana may help lessen the pain, stiffness, and spasms in the muscles that are a part of the disease.
• Crohn’s disease: Abdominal pain, diarrhea, and weight loss are just a few of the symptoms that medical cannabis may help with.
• Glaucoma: Medical marijuana may help reduce intraocular pressure in the eyes, preventing or postponing glaucoma-related visual loss.

Debate on Decriminalizing Cannabis in India

News Source: The Hindu

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This Article is based on the news “How India’s first semiconductor fabrication plant can help plug in to global value chain” which was published in the Indian Express. The Union Cabinet recently approved three chip-related projects, including India’s first semiconductor fabrication plant.

India Approves Tata Group’s Ambitious Semiconductor Projects in Gujarat and Assam – The three projects are:

• Semiconductor Plant in Dholera, Gujarat:

  • The semiconductor plant is a collaboration between Tata Group and Taiwanese foundry Powerchip Semiconductor Manufacturing Corp (PSMC). 
  • It will provide access to leading-edge and mature nodes including 28 nanometer, 40 nm, 55 nm, 90 nm and 110 nm.
  • Capacity of 50,000 wafers per month.

• Chip Assembly plant in Morigaon, Assam:

  • The Tata Group will also set up a chip assembly plant with  a capacity to manufacture 48 million chips per day, and will primarily cater to export needs.

• Chip Packaging Facility in Sanand, Gujarat: 

• • A chip packaging facility in Gujarat’s Sanand was also approved by the Cabinet.

About Semiconductors: The Tiny Powerhouses Driving Modern Electronics

• Semiconductors, often called ‘chips,’ are tiny electronic circuits containing transistors, diodes, capacitors, resistors, and interconnections. 
  • These circuits are intricately arranged on a silicon wafer. 
  • Semiconductors are employed in the manufacture of various kinds of electronic devices, including diodes, transistors, and integrated circuits. Such devices have found wide application because of their compactness, reliability, power efficiency, and low cost.

India’s Semiconductor State of Play and Market Opportunities:

• Rapidly Expanding Market Size: According to a report from India Electronics and Semiconductor Association (IESA), India’s semiconductor consumption is expected to reach $64 billion by 2026.
• Desires to Expand its Manufacturing Capabilities: India is currently strongest in the R&D and design facets of the semiconductor value chain 
• More recently, India has turned its attention to semiconductor fabrication (“fabs”) and post-production assembly, test, and packaging (ATP), where semiconductors are tested and assembled into sophisticated packages
• (Image shows Semiconductor Value Chain ecosystem)

Potential Clusters for the Setting up of Fabs:

The Indian government will collaborate with state governments to establish High-Tech Clusters with essential infrastructure:

• Land: Adequate land for fab facilities.
• Semiconductor-Grade Water: High-quality water meeting semiconductor manufacturing standards.
• Power: Reliable and high-quality power supply.
• Logistics: Efficient transportation and logistics.
• Research Ecosystem: Support for R&D and innovation.
• Identified Special Economic Zones (SEZ’s) can prove suitable locations.

Empowering India: The Strategic Significance of Semiconductor Fabrication in Dholera

• Reducing Dependence on Imports: 70% of the current global manufacturing capacity is confined to South Korea, Taiwan and China, with the US and Japan making up for much of the rest.
  • By having our own fab, India can enhance its self-sufficiency in semiconductor production.
• Balance Trade Deficits: India runs a large trade deficit in semiconductor products. An estimated 70 percent of India’s electronics imports come from China and Hong Kong, with an additional 13 percent coming from Singapore.
• Intricate Fabrication Process:  Semiconductor fabrication involves intricate steps, including clean rooms to prevent contamination. The process requires inputs like silicon wafers, specialty chemicals, and an uninterrupted power supply. A domestic fab ensures control over these critical components
• Boost Manufacturing Sector: This ‘fab’ will have manufacturing capacity of up to 50,000 wafers per month.
  • This can ensure a steady supply of the components needed for future technologies.
• Create Job Opportunities: It has the potential to create direct employment of 20,000 advanced technology jobs and about 60,000 indirect jobs in high-tech sectors.
• Comparative Advantage: It will offer India leverage in the chip wars by increasing its say in the geopolitics of technology that has so far been shaped by China and the United States. 
• Resilience in Global  Supply Chain: Diversifying Manufacturing will help strengthen the supply chain of semiconductors globally.
  • Example: China’s Semiconductor Manufacturing International Corporation (SMIC) is currently facing challenges in acquiring advanced chip-making equipment. This difficulty stems from a blockade led by the United States, restricting the supply of crucial technology to SMIC.
• Spillover Effects: Semiconductor manufacturing can produce tremendous spillover and “learning by doing” effects across the rest of India’s high-tech economy. 

Challenges in Boosting Domestic Semiconductor Sector: 

• Lack of Fabrication Units:  In India, more than 90% of global companies already have their R&D and design centres for semiconductors but never established their fabrication units.
  • Although India has semiconductor fabs in Mohali and Bangalore, they are purely strategic for defence and space applications only.
• Resource-Intensive Chip Production:  Chip-making also requires gallons of ultrapure water in a single day.
  • An uninterrupted supply of power is central to the process, with just seconds of fluctuations or spikes causing millions in losses.
• Lack of Engagement from Market Players: Due to complicated application process, and lack of pre-existing ecosystem. 
  • Example-  In 2021, India launched a $10 billion incentive program to attract chipmakers and display manufacturers. The initiative offered up to 50% of capital expenditures as incentives to companies establishing local manufacturing projects. It was modified due to lacklustre engagement.
• High Capital Extensive and Entry Barriers: 
  • Semiconductors are highly complex products to design and manufacture.
  • Level of investment in both R&D and capital expenditure is huge thereby making semiconductor fabrication an extremely capital intensive business with high entry barriers.
• Closed Ecosystem: The global semiconductor chip industry is dominated by some countries and a handful of companies. 
  • Taiwan and South Korea make up about 80% of the global foundry base for chips.
• Insufficient incentives provided by India:  The US and EU have rolled out more lucrative incentive schemes than India.
• Insufficient Talent Pool: The engineers graduating in India annually could help, but better courses, training, and preparedness are needed, as only a small fraction are industry ready upon graduation.
• Limited Original Research in Semiconductor Design: The future of the chip is decided by original research. 
  • The government, however, is aware of that shortcoming and is in the process of setting up a R&D lab at Semiconductor Laboratory (SCL) in Mohali.
• Multiple Clearances Needed: Fabs use sub-5 nanometer technology that requires clearance from both the technology provider and the Government, adding complexity to the establishment process.

Way Forward

• Conducive Environment: India has the potential to play a much more significant role in global semiconductor value chains, provided the government upholds its investment policies, maintains a conducive regulatory and business environment, and avoids measures that create unpredictability.
• Changing the Focus towards OSAT: Companies that specialise in Outsourced Semiconductor Assembly and Test (OSAT) are less expensive to set up, and generate better margins. 
  • The OSAT set-ups take care of the less capital-intensive parts of chipmaking, such as assembling the precise components that have already been manufactured, and running specialised tests to approve them.
• Collaborative Efforts: If like-minded nations each specialise in different aspects of the semiconductor and electronics manufacturing process, and work together on assembly and distribution, that can also solve the geopolitical problem of Chinese dominance.
• Focus on Design and Research and Development: The initial funding should focus on areas like design and R&D, for which India already has an established talent pool.

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This Article is based on the news “Restoration of fully functional dispute settlement system of WTO top-most priority, says India” which was published in the Indian Express. Recently, The 13th Ministerial Conference (MC13) of WTO was organized in Abu Dhabi from 26 February to 29th February 2024.

India’s Advocacy for a Permanent Solution to Food Security Challenges at WTO 13th Ministerial Conference

• India has called for finding a permanent solution to the issue of public stockholding for food security in the ministerial-level meeting of the World Trade Organisation (WTO) in February 2024

WTO 13th Ministerial Conference Highlights: New Members, India’s Concerns, and Brazil’s Calls for Action

• New WTO Members: Comoros and Timor-Leste formally joined the World Trade Organisation on the opening day in Abu Dhabi, becoming the 165th and 166th members of the body at the 13th Ministerial Conference of WTO.

• Service Domestic Regulations Outcome: 

  • New disciplines on services domestic regulation, announced at the 13th Ministerial Conference.
  • The disciplines will be applied on a “most-favoured nation” principle, meaning that they will benefit all the WTO members.

  • Economic Impact of Disciplines: 

    • It is expected to lower trade costs by over USD 125 billion worldwide.
    • New research by the WTO finds that their implementation will help to reduce services trade costs by 10 per cent for lower-middle income economies and 14% for upper-middle income economies, with overall savings of USD 127 billion.
    • By 2032, global real income is projected to increase by at least 0.3%, representing USD 301 billion and global service exports are expected to rise by 0.8%, amounting to USD 206 billion.

• Navigating the WTO Agenda: India’s Perspectives on Multilateral Trade and Non-Trade Issues

  • Multilateral Trading System: India mentioned the need to avoid fragmentation of the multilateral trading system and the importance of remaining focused rather than mixing non-trade issues with the WTO agenda.
  • Sustainable Programs: India explained it has propagated a sustainable way of living based on traditions and values of conservation through a mass movement for LiFE – “Lifestyle for Environment” a key to combating climate change.
  • Non-Trade Issues: India stressed that non-trade issues have the potential to encourage trade distortive subsidies and non-trade barriers.
    • Bringing issues like Gender and MSMEs into the realm of WTO discussions was not practical because these issues were being discussed in other relevant international organisations already.
    • Issues like Inclusion: India stressed that such issues are better addressed through contextual and targeted national measures and they did not fall in the domain of international trade relations.
  • Restoration of Appellate Body: India stressed the restoration of the Appellate Body, which has been inactive since December 2019. 
  • Opposed IFD: India and South Africa blocked a key proposal led by China at the WTO, known as Investment Facilitation Development Agreement (IFD).

• Global Trade Challenges: Brazil’s Push for Technology Transfer and Agriculture Reforms in WTO at 13th Ministerial Conference

  • Technology Transfer and Agriculture Subsidy: Brazil emphasised the critical need for the WTO to facilitate the transfer of essential technologies to developing countries, particularly for pandemic preparedness, climate mitigation, and energy transition.
  • Cap and Reduce Agriculture Subsidies: Brazil emphasised the criticality of progress in agriculture negotiations. It called for instructions to cap and reduce trade-distorting agricultural subsidies, which adversely impact the food security of all the WTO members.
  • Fisheries Subsidies: Brazil reiterated its strong commitment to negotiations on fisheries subsidies, underscoring the importance of addressing the issue to promote sustainable fishing practices globally.
    • India’s Stand on Fisheries Sector: India underscored the importance of considering diverse fishing practices and the livelihoods of local fishermen with Exclusive Economic Zones.
    • 25 Year Moratorium on Subsidies: India also urged for a 25-year moratorium on subsidies for distant-water fishing activities, citing their adverse effects on sustainable fishing practices.

About World Trade Organisation (WTO):

• WTO is the only global international trade organisation which deals with rules of trade between nations. 
• It is governed by different agreements negotiated and signed by participating nations and ratified in their parliament.

• Historical Background: From GATT to the Birth of WTO

• • The WTO commenced operation on 1st January 1995, under the Marrakesh Agreement, signed on 15 April 1994 by 124 nations.
  • It has replaced the General Agreement on Tariffs and Trade (GATT) which commenced in 1948.
  • Most of the issues focused by WTO are derived from previous trade negotiations, especially from the Uruguay Round (1986-1994).

• Roles and Responsibilities: WTO’s Functions in International Trade

  • Promoting Free Trade: Establishes and uphold trade rules like non-discrimination and transparency. Also, it reduces barriers like tariffs and quotas.
  • Resolving Trade Disputes: Offers a legal framework and process for settling trade disputes peacefully. It also provides a platform for negotiations and mediations between trading partners.
  • Supporting Economic Development: Integrates developing countries into a global trading system. Offers special provisions and flexibilities for developing countries, famously known as special and differential treatment provisions.
  • Engaging in Global cooperation: WTO collaborates with other international organisations like IMF and world bank to address broader economic challenges like poverty reduction etc

• Ministerial Conference of the WTO:

• • The Ministerial conference of WTO is the heart of its operation. By now the WTO has held 12 ministerial conferences. The last meeting was held between 12-17 June 2022. It took place at WTO headquarters in Geneva. 
    • The conference was chaired by Timur Suleimenov, Deputy chief of staff of the Kazakhstan president.
  • The 13th Ministerial conference is scheduled to take place at Abu Dhabi from 26 to 29 Feb 2024.
    • It will be chaired by Dr Thani bin Ahmed Al Zeyoudi, minister of state for foreign trade of the United Arab Emirates.

Key WTO Agreements: Shaping Global Trade Rules

• General Agreement on Tariffs and Trade (GATT):

  • Signed in 1947 by 23 nations after the 2nd world war.
  • Aimed to reduce tariffs and other barriers to promote trade among nations.
  • Its limitations led to the Uruguay round negotiations, culminating in WTO in 1995.

• Agreement on Agriculture (AoA):

  • The Agreement on Agriculture (AoA) is an international treaty of the WTO.
  • Objective: To reduce govt support and subsidies given to domestic agricultural producers.
    • The agreement on agriculture consists of three pillars:
      • Domestic Support: It calls for reduction in domestic subsidies that distorts free trade and fair price.
        • The forms of subsidies are basically given under Agreement on Agriculture. They are Green Box, Amber Box and Blue Box subsidies
      • Market Access: Market access for goods in the WTO means the conditions, tariff and non-tariff measures, agreed by members for the entry of specific goods into their markets.
      • Export Subsidies: Government support that lowers export costs, including input subsidies, remission of import duties, and other export incentives, falls under export subsidies.

• General Agreement on Trade in Services (GATS):

  • It is a treaty of the WTO that came into force in January 1995 as a result of the Uruguay round negotiations.
  • It was created to extend the multilateral trading system to the service sector, in the same way GATT provides for merchandise trade.
  • It covers most service sectors, requiring member countries to open their market and treat foreign providers fairly.

• The Agreement on Trade Related Investment Measures (TRIMS):

• • The agreement was negotiated during the Uruguay round, and applies only to measures that affect trade in goods.
  • Recognising that certain investment measures can have trade-restrictive and distorting effects, it states that no members shall apply a measure that is prohibited by the provisions of GATT in Article 3 (national treatment) or Article 9 (quantitative restrictions). 

WTO Challenges: Navigating Public Stockholding, the Peace Clause, and Agricultural Subsidies Framework

• Issues with Public stockholding:

  • Distort Trade: The WTO maintains that PSH programmes distort trade, especially when implemented without limitations.
  • Current WTO Rules: The Agreement on Agriculture (AoA) limits PSH programs to 10% of a country’s production for domestic consumption. Objection by G33 countries: The G33 countries object to the outdated method used by the WTO to calculate subsidy levels, which does not account for inflation.
    • Outdated Methodology: This methodology of subsidy calculation is  based on the price index of 1986-88, which does not take into account inflation.

• Issues with the peace clause

  • Controversial: Some developed countries argue that it gives developing countries an unfair advantage, and it could lead to trade distortions. Others say it is crucial for developing countries to meet their food security requirements.
  • Flexibility in rules-based order: WTO is a rules based organisation, and the peace clause is seen as a departure from those rules. The flexibility provided by the WTO in the peace clause is leading to conflict of interest between developed and developing nations.

  • Peace Clause

    • It was the 9th ministerial conference held in Bali, Indonesia in 2013.It resulted in the adoption of a series of agreements on several trade issues, including the Peace Clause.
    • It was put in place in 2013 under the Bali Agreement.
    • It permits developing nations to exceed the 10 percent ceiling without facing legal action by other members. 

• Issues with Agricultural Subsidies Framework: 

  • Subjectivity in Green Box Subsidies: The categorization of subsidies into Green Box, deemed to cause minimal trade distortion, introduces subjectivity. Disputes often arise due to varying interpretations of the “minimal” level, causing tensions between nations.
  • Lack of Transparency in Calculations: The criteria and calculations defining Green Box eligibility lack transparency. 
  • Developing Country Exemptions: While developing countries benefit from higher Amber Box limits, this creates an uneven playing field for developed nations. Concerns about fairness emerge as exemptions can potentially distort competition and trade dynamics.

• Issue with Appellate Body:

• • US Obstructionism: The US has single-handedly blocked the appointment of new members to the Appellate Body (AB) since 2019, rendering the Dispute Settlement mechanism (DSM) ineffective.
  • WTO Toothlessness: Without a functioning AB, countries can easily avoid complying with panel rulings, undermining the WTO’s dispute resolution process.
  • De-judicialization: The US’s desire to de-judicialize its international trade relations raises doubts about the full restoration of the AB.
  • About Appellate Body:
    • It was established in 1995, and is a standing body consisting of 7 members, each serving a limited 4-year term. 
    • Its primary function is to hear appeals from dispute reports issued by panels in cases brought forward by WTO member countries.
• Special Safeguard Mechanism (SSM): It is a tool to counter import surges that may put agricultural production in developing nations at risk. 
  • As per the current Agreement on Agriculture (AoA) design, only 39 members, predominantly developed countries, can use Special Safeguards (SSGs). 
  • The SSM aims to extend similar measures to developing countries.

Way Forward: India’s Proposals for Addressing WTO Challenges and Agricultural Reforms

• Modification of formula to calculate food subsidy cap:  India suggested measures like amendments to calculate the food subsidy cap and inclusion of programmes implemented after 2013 under the ambit of the ‘Peace Clause.’
• Updation of the external reference price (ERP): India emphasizes on the need to update the external reference price (ERP) from 1986-88 levels to current market rates. 
  • It should account for inflation when determining the MSP ceiling.
• Three-year average price of a crop:  Using the three-year average price of a crop based on the preceding five-year period excluding the highest and lowest entries for that product. 
  • Subsidy calculations need to be based on actual procurement rather than encompassing all eligible production.
• Allowing PSH Programs: Public stockholding programs designed for food security objectives should be permitted and deemed compliant with World Trade Organization rules under certain conditions. These conditions include:
  • Ensuring that stocks acquired through PSH do not distort trade or harm the food security interests of other World Trade Organization members. 
  • Members should refrain from exporting stocks acquired, except for international food aid and non-commercial humanitarian purposes.
• Special Safeguard Mechanism: Countries should have the right to protect their domestic markets from dumping by other countries through the Special Safeguard Mechanism.
• Joining MPIA: Developing countries could join the European Union-led multi-party Interim Appeal Arbitration Arrangement (MPIA) to formalize an ad hoc appellate review. However, this lacks the binding nature and predictability of the original Appellate Body (AB).

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