Context

Recently, the Indian Prime Minister virtually dedicated to the nation the Sela Tunnel project during the Viksit Bharat Viksit North East programme in Itanagar, Arunachal Pradesh. 

Background of Sela Tunnel

• Beginning: The foundation stone of the tunnel was laid by the Prime Minister on February 09, 2019, and the construction commenced on April 01, 2019. 
• Completion: The tunnel has been completed in just five years overcoming challenges of difficult terrain and adverse weather conditions. 
  • In the last three years, the Border Roads Organisation (BRO) has completed a record 330 infrastructure projects constructed at the cost of Rs 8,737 crore.

About Sela Tunnel

• Construction: The tunnel has been constructed at a total cost of Rs 825 crore.
• Connectivity: The tunnel has been constructed at an altitude of 13,000 feet on the road connecting Tezpur, Assam to Tawang in the West Kameng district of Arunachal Pradesh. 
• Technology Used: The Sela Tunnel has been constructed using the new Austrian Tunnelling Method and incorporates safety features of the highest standards. 
• Benefits: It will provide a faster and more efficient transport route, which is strategically important too for India.
  • All-Weather Connectivity: The tunnel will provide all-weather connectivity to Tawang across Sela Pass on the Balipara – Chariduar – Tawang Road (i.e., the Northeast region).
  • Preparedness: Boosting the preparedness of the Armed Forces.
  • Socio-Economic Development: Augmenting the socio-economic development of the border region.
  • For Traveling: Improve the ease of travel for the people of Tawang. 

News Source: PIB

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Context

Recently researchers at Cambridge University and the California Institute of Technology made a big advance by designing a sexually reproducing fruit fly species to reproduce asexually.

Scientists Genetically Modify ‘Sexual’ Fruit Fly to Reproduce Asexually

• Fruit flies (Drosophila melanogaster): They have long been preferred by genetics researchers due to their appropriateness as model organisms, resulting in major advances in biology and evolution.
• Research: Decades of intensive research with fruit flies has yielded insights into genetics, development, behavior, and other biological processes.

What is Parthenogenesis?

• About: Parthenogenesis is the process of reproduction without fertilization by males, which produces offspring from unfertilized eggs.
• Species in which Parthenogenesis takes place: Some species, such as Drosophila mangebeirai and Drosophila mercatorum, have facultative parthenogenesis, which allows isolated virgin females to generate young without mating, albeit only a portion of the time.

Creating Asexual Reproduction

• Genetic Manipulation: To create asexual reproduction in a type of fruit fly that reproduces sexually, researchers used genetic engineering techniques.
• Biological Repercussions: The effective modification had significant biological repercussions that demonstrated the adaptability and plasticity of genetic systems.

Parthenogenesis Related Genes

• Goal of the study: The goal of the study was to pinpoint the genes that allow Drosophila mercatorum unfertilized eggs to develop parthenogenetically.
• RNA Sequencing: 44 genes that showed differential expression during parthenogenetic development relative to sexually reproducing circumstances were found in D. mercatorum eggs using RNA sequencing.
• Alteration: By overexpressing the polo and Myc genes and downregulating the expression of the Desat2 gene, researchers altered the gene expression levels in D. melanogaster.
  • About 1.4% of the eggs underwent this modification, resulting in adult flies that could reproduce through mating.

Polar Bodies Role

• Chromosome Transmission: An egg receives one pair of chromosomes from each parent during fertilization, which causes polar bodies to form.
• Normal Development: When the male and female pronuclei merge to begin the process of embryonic development, polar bodies are normally eliminated.
• Modified Protein Levels: It’s possible that the modification of polo, Myc, and Desat2 protein levels interfered with the removal of polar bodies, allowing them to participate in the development of the embryo.

Gene Expression and Genomic Structure

• DNA structure: Adenine-thymine and Cytosine-Guanine are base pairs that form a double helix, and DNA is made up of two strands with phosphate-sugar backbones.
• Melanogaster Genome: The genome of Melanogaster is made up of four DNA molecules that have a base pair count of about 200 million, which means that it can encode roughly 13,600 genes.
• RNA Structure: During transcription, base pairs (adenine-uracil and cytosine-guanine) in RNA create complementary sequences to DNA. RNA is single-stranded and contains ribose sugar.

Protein Synthesis and Gene Function

• Genes: DNA segments with thousands of base pairs that include instructions on how to make particular proteins. 
• Transcription:A-U and C-G complementary base pairing is used in the transcription process, which converts DNA sequences into RNA molecules.
• Translation: Based on the genetic code, ribosomes translate RNA molecules into sequences of amino acids that make proteins.

Consequences of Parthenogenesis

• Biochemical Insights: Knowledge of the mechanisms underpinning fruit fly parthenogenesis offers insights into the biology of reproduction and evolutionary adaptations.
• Technological Advancements: This discovery provides new methods for researching genetic regulatory mechanisms and reproductive strategies, opening up new directions for genetic and developmental research.
• Ethical Considerations: The ethical ramifications of asexually reproducing organisms should be carefully considered, as with any genetic alteration.

News Source: The Hindu

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Context

Ministers of Health from African countries with the highest burden of malaria recently signed the Yaounde Declaration with the objective of ending malaria deaths.

Yaounde Declaration On Malaria

• Signing: It was signed by the health ministers of 11 African countries with the highest burden of malaria, committing to accelerated action to end deaths from the malaria disease.
• Hosts: It was signed at the Yaoundé conference, co-hosted by the World Health Organization And the Government of Cameroon.
  • The conference gathered Ministers of Health, global malaria partners, funding agencies, scientists, civil society organizations, and other principal malaria stakeholders.
• Signatories of the Declaration: Burkina Faso, Cameroon, the Democratic Republic of the Congo, Ghana, Mali, Mozambique, Niger, Nigeria, Sudan, Uganda and Tanzania.
  •  These countries carry roughly 70% of the global malaria burden.
• Pledge: They pledged to sustainably and equitably address the threat of malaria in the African region, which accounts for 95% of malaria deaths globally.
• Commitments: 
  • Investment in data technology;
  • Application of the latest technical guidance in malaria control and elimination; and to enhance malaria control efforts at the national and sub-national levels.
• Increased Investments in Health Sector: The ministers further pledged to increase health sector investments to bolster infrastructure, personnel, and programme implementation; to enhance multi-sectoral collaboration; and to build partnerships for funding, research, and innovation.
• Accountability: In signing the declaration, they expressed their “unwavering commitment to the accelerated reduction of malaria mortality” and “to hold each other and our countries accountable for the commitments outlined in this declaration.”

About Malaria Disease

• Type of disease: Malaria is an infectious disease transmitted by female Anopheles mosquitoes and caused by plasmodium protozoa. 
• Prevalence: It poses a life-threatening risk, primarily affecting tropical and subtropical regions in Africa, South America, and Asia.
• Cause:
  • This disease is caused by plasmodium parasites, which spread through the bites of infected female Anopheles mosquitoes. 
  • These parasites multiply initially in liver cells and then attack Red Blood Cells (RBCs).
• Transmission: The transmission of malaria occurs through the bites of infected female Anopheles mosquitoes. The parasites proliferate first in liver cells before invading Red Blood Cells (RBCs).

• Species and Threat: Five parasite species cause malaria in humans, with Plasmodium falciparum and Plasmodium vivax posing the most significant threat.

Indian Initiatives to Control Malaria

National Framework for Malaria Elimination (2016-2030)

• Target: The Government of India set a target to eliminate malaria in India by 2027.
• National Strategic Plan for Malaria Elimination for 5 years.
  • Launched in 2017, It shifted focus from Malaria control to elimination.
  • It provided a roadmap to end malaria in 571 districts out of India’s 678 districts by 2022.
• Malaria Elimination Research Alliance-India (MERA-India)
  • Established by the Indian Council of Medical Research (ICMR)
  • It is a conglomeration of partners working on malaria control
• India Achievement: India has achieved a reduction of over 83% in malaria morbidity and 92% in malaria mortality between the years 2000 and 2020. 

News Source: Down to Earth

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Context

Recently the Cabinet Committee on Security (CCS) has cleared a Rs 15,000 crore project to design and develop the Advanced Medium Combat Aircraft (AMCA), India’s fifth-generation multirole fighter jet.

About Advanced Medium Combat Aircraft

• Multirole Fighter Jet: Advanced Medium Combat Aircraft (AMCA) is India’s fifth-generation fighter multirole fighter jet.
• Size: This aircraft will be bigger than other fighters in the Indian Air Force inventory.
• Fifth Generation Aircraft: The aircraft will put India in a select group of nations that have their own fifth-generation fighter aircraft.
• Organizations involved
• • Aeronautical Development Agency (ADA) & Hindustan Aeronautics Limited (HAL)

Features of Advanced Medium Combat Aircraft:

• Stealth: The 25-tonne twin-engine aircraft will have advanced stealth features to avoid detection by enemy radar.
• Fuel & Weapons: The Advanced Medium Combat Aircraft will have a large, concealed internal fuel tank of 6.5-tonne capacity, and an internal weapons bay for a range of weapons, including indigenous weapons, to be buried in its belly.
• Engine Specifications: The AMCA Mk1 variant will have the US-built GE414 engine of the 90 kilonewton (kN) class.
  • The more advanced AMCA Mk2 will fly on the more powerful 110kN engine.
  • This will be developed indigenously by DRDO’s Gas Turbine Research Establishment (GTRE) in collaboration with a foreign defence major.
• Specialized Design Features: To maximize engine performance and reduce radar emissions, the AMCA will use cutting-edge design elements like a serpentine air intake duct and a diverterless supersonic inlet.

Significance of Advanced Medium Combat Aircraft:

• Boost to Self Reliance (Atmanirbgarta): After India withdrew from its Fifth Generation Fighter Aircraft (FGFA) partnership with Russia in 2018, the AMCA project highlights India’s pursuit of self-reliance in defense technology.
• Advantages of Stealth: As a fifth-generation fighter, the AMCA will have a low electromagnetic signature, increasing survivability and lethality in modern combat conditions.
• Enhanced Capabilities: Using enhanced sensors and weaponry, the AMCA will be able to detect and engage hostile aircraft while remaining undetected, providing a major edge over fourth-generation equivalents.
• Operational Implications: The IAF’s need for seven AMCA squadrons emphasizes the importance of increasing India’s air combat capability in the face of diminishing fighter squadron numbers.
• Enhancing Strategic Posturing: While countries like the United States, China, and Russia have fifth-generation stealth fighters, the AMCA will add India to this exclusive list, strengthening its strategic position in the region.
• Addressing Operational Gaps: As older aircraft are retired, the induction of AMCA squadrons will fill crucial operational gaps, guaranteeing a capable air combat force in the future.

Different Generations of Jet Fighters

• First Generation Fighters: Subsonic fighter planes constructed between the mid-1940s and mid-1950s are considered first generation fighters. 
  • The planes possessed a basic avionic system, but no radar or self-protection equipment.
• Second Generation Fighters: In contrast to the previous generation of aircraft that carried out their attacks with cannons, machine guns, unguided bombs, and rockets, these jets were capable of reaching supersonic speed and were outfitted with semi guided missiles. 
  • The most well-known second-generation fighter is probably the MiG-21.
• Third Generation Fighters: The third generation of aircraft, produced in the early 1960s and early 1970s, featured more sophisticated weaponry and maneuverability. 
  • These aircraft, which included the Mirage III and MiG-23, had the ability to fire at targets that were outside of the pilot’s field of vision.
• Fourth Generation Fighters: Conceptualized in the 1970s, fourth generation fighters went into service in the early 1980s. Additionally, these aircraft had fly by-wire systems installed, which substituted electronic flight control for human combat control. 
  • The French Mirage 2000, the Soviet MiG29, the American F15, and the French F16 are notable fighters from this generation.
• Fifth-generation multi-role fighters: They  have features such as all-aspect stealth, Low Probability of Intercept Radar (LPIR), high-performance airframe, engine capable of supercruise without afterburner, 
  • The Lockheed Martin F-22 Raptor, the world’s first combat-ready fifth-generation fighter, joined the US Air Force in 2005. 

Light Combat Aircraft

• About: The Light combat Aircraft (LCA) is a supersonic, all-weather, multi-role fighter with sophisticated technology for air-to-air, air-to-ground, and air-to-sea warfare. It has a single seat and a single engine.

• Initiation of the Project: The LCA programme was created in 1983. The project definition phase ended in 1989, and the first phase of full-scale engineering development (FSED) was approved in 1993.
• Organizations involved: The Aeronautical Development Agency (ADA) was founded by the government in 1984 to oversee the LCA programme. Hindustan Aeronautics Limited (HAL) is the primary partner, with cooperation from DRDO and CSIR laboratories.

News Source: Indian Express

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Context

According to a study conducted by the People’s Association in Grassroots Action and Movements, and the Indian Federation of App-based Transport Workers, Gig workers suffer from lack of social security, regulations.

Key Findings of the Study On Gig Workers in India

• Income Disparities: 

  • Over 43% of participants in the study earn less than ₹500 a day or ₹15,000 a month, after deducting all their costs. 
    • The study found that 34% of app-based delivery persons earn less than ₹10,000 a month, while 78% of them are spending over 10 hours each day at work. 

• Exposed to Road Accidents:  

  • Drivers are physically exhausted, and exposed to an increased risk of road traffic accidents, especially due to the ‘10-minute delivery at the doorstep’ policy of certain e-commerce platforms. 

• Expenses Exceeding Earnings: 

  • While 72% of the cab drivers said that they face difficulty in managing expenses, 76% of the delivery persons are struggling to make their ends meet.
    • 68% of cab drivers’ responses even show that their overall expenses exceed their earnings

• Unhappiness Over Rates offered: 

  • Over 80% of app-based cab drivers were not satisfied with the fares offered by the companies, while over 73% of app-based delivery persons showed dissatisfaction with their rates. 

• Deactivation of ID: 

• • Another major complaint of the workers is the issue of ID deactivation and customer misbehavior. 
    • A glaring 83% of the drivers reported that the issue of ID blocking affects them negatively, 47% stated that this issue extremely affects them.

• Customer Misbehavior:  

  • Customer behavior affects a significant majority (72%) of drivers in a negative way, while 68% of delivery persons are reportedly affected by it negatively.

What is a Gig Economy?

• A gig economy is a labor market that relies on independent contractors and freelancers rather than full-time permanent employees.

NITI Aayog Recommendations On Gig Workers in India

• Proper Estimation of Gig Workers: Have separate enumeration exercises to estimate the size of the gig economy and characteristic features of gig workers. 
  • This can be done by collecting information during official enumerations (PLFS, NSS or otherwise). 
• Catalyse Platformization: Introduce Platform India initiative (similar to Startup India), built on the pillars of Accelerating Platformization by Simplification and Handholding, Funding Support and Incentives, Skill Development, and Social Financial Inclusion.
  • This platform can help self-employed individuals to sell their produce to wider markets in towns and cities; Ferrying of passengers for hire etc. 
• Accelerate Financial Inclusion: Enhance access to institutional credit through financial products specifically designed for platform workers and those interested to set-up their own platforms.
  • For this, Leverage FinTech and platform businesses,
  • Classify unsecured loans to first-time borrowers on platform economy as Priority Sector Lending,
  • Special emphasis on access to formal credit for women, Persons with Disabilities (PwDs), or platform businesses started in small cities, towns, and villages in India 

News Source: The Hindu

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INS Tir, the lead ship of First Training Squadron (1TS) participated in Exercise Cutlass Express – 24 (CE – 24) held at Port Victoria, Seychelles.

• INS Tir is an indigenously built cadet training ship based at SNC, Kochi.
• International Collaboration: As part of Cutlass Express, the Indian Navy actively engaged with participants from 16 friendly foreign countries. 

Exercise Cutlass Express – 24 (CE – 24)

• About:  The exercise is an annual maritime exercise conducted to promote national and regional maritime security in East Africa and the Western Indian Ocean. 
• Objective: To assess and improve combined maritime law enforcement capacity, promote national and regional security and increase interoperability between the regional navies.
• Joint Training: As part of the exercise, the Indian Navy, together with other partners, shall undertake training of contingents from various participating countries.

Significance: 

It underscores close ties between Indian Navy and the regional Navies towards joint training fostering interoperability and building bridges of friendship.

News Source: PIB

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This Article is based on the news “Bengaluru water crisis: Is the southern metropolis heading towards Day Zero?” which was published in the DownToEarth. Bengaluru is facing a severe water crisis attributed to a prolonged drought. 

Key Highlights On Bengaluru Water Crisis

• Impact on Irrigation: The shortage has affected the drinking water supply as well as impacted irrigation. Of the 14,700 borewells in Bengaluru, 6,997 have dried up.
• Risks for Day Zero: Around 30 localities under the Bruhat Bengaluru Mahanagara Palike (BBMP) are receiving water on a rotational basis every alternate day. 
• • This raises concern that Bengaluru could face a situation similar to Cape Town’s ‘Day Zero‘ in 2018 considering the fact that the next monsoon is still a hundred days away.
  • Day Zero refers to the point at which Cape Town’s municipal water supply would be shut off.
• Extinction of Lakes: According to data from the Karnataka State Pollution Control Board (KSPCB), nearly 90 percent of Bengaluru’s lakes are facing imminent extinction. 
  • The city has also lost its lakes that recharged aquifers. In 1961, Bengaluru had 262 lakes. Today, it has 81.
  • The dissolved oxygen levels in their water have reduced below the desired threshold of 4 mg/lt due to organic pollution.
• Growing Water Crisis in Indian Cities: Water delivery in Indian cities is becoming increasingly difficult due to the city’s continued growth and high urban population growth. These challenges impact the availability, quality, and sustainability of water resources.

Status of Water Crisis in Indian Cities

• Extent of Crisis: 

• • According to the Composite Water Management Index’ (CWMI) report 2018 by the NITI Aayog, nearly 600 million Indians are facing high-to-extreme water stress.
  • By 2020, 21 Indian cities will run out of groundwater.

• Impact and Projection:

• • According to the NITI Aayog, about 200,000 people die every year due to lack of safe water. 
  • It projects the crisis will escalate with the water availability dwindling to merely half of the effective demand by 2030.
  • According to the World Health Organization, 97 million Indians lack access to safe water today, second only to China. 
  • In addition, water scarcity in India is expected to worsen as the overall population is expected to increase to 1.6 billion by the year 2050.
  • If mitigation measures are not implemented, India will face a 6% loss in its gross domestic product (GDP) by 2050. 

• Water Contamination: 

  • With nearly 70% of water contaminated, India ranks 120th of 122 countries in a global water quality index.
    • According to the Living Planet Report, WWF 2020, at least 30 Indian cities will face a grave water risk by 2050.

• Per Capita Availability: 

  • About 820 million people of India – living in twelve river basins across the country have per capita water availability close to or lower than 1000m3.

• Declining Ganges Water Levels: 

  • According to a study, the Ganges has witnessed unprecedentedly low levels of water in several lower reaches in the last few summer seasons.
    • This would severely affect water available for surface water irrigation, with potential future decline in food production. 

Impact of Water Crisis 

• Lack of Reliable Water Supply:  

  • Three-fourths of India’s rural families lack access to piped, drinkable water and must rely on unsafe sources.
    • 163 Million Indians lack access to safe drinking water
    • 210 Million Indians lack access to improved sanitation
    • 21% of communicable diseases are linked to unsafe water
    • 500 children under the age of five die from diarrhea each day in India

• Impact on Agriculture: 

  • Reduced water availability impacts agriculture leading to lower crop yields and increased food prices. 

• Impact on Health: 

  • Communities suffer from inadequate sanitation and hygiene, resulting in waterborne diseases. 
    • According to a Lancet study, around half million deaths in 2019 were caused by water pollution in India.

• Conflicts Among Communities: 

• • Conflicts arise over water resources among different sectors and communities. 

• Disproportionate Impact on Women: 

  • The crisis of water puts them at a higher risk of vulnerability. 
    • Fetching water in India has been perceived as a woman’s job for centuries. Women, especially in the rural areas, walk miles to collect water from the nearest source.

Reasons Behind the Water Crisis in India

• Unplanned Urbanisation:  

  • Unplanned urbanization has resulted in chaotic expansion, disrupting the local ecology, hydrology, and environment of Indian cities.
    • Ex-In Bangalore, the discharge of effluents into water bodies via main sewers and the stormwater system has also led to the pollution of both surface and groundwater sources. 

• Encroachment of Water Bodies: 

  • The lakes and water bodies have been diverted by the real estate sector for housing developments. 
    • According to the Karnataka State Pollution Control Board (KSPCB), nearly 90 per cent of Bengaluru’s lakes are on the verge of extinction. 

• Loss of the Blue-Green Infrastructure: 

  • The shrinkage of water bodies and parks and green spaces that allow water to percolate has resulted in a significant underutilisation of rainwater harvesting and capture methods.

• Overexploitation of Groundwater: 

  • Despite possessing surface water resources, India is highly dependent on groundwater for day-to-day survival. 
    • A large part of the Green Revolution’s need for water was met by groundwater. With over 20 million wells, often operating with subsidised power, they have contributed to depleting groundwater.
    • According to a Punjab Agricultural University (PAU) study, Punjab’s groundwater fell by over a meter every year in 18 of its 22 districts from 1998 to 2018.

• Sub-Optimal Planting Patterns:  

  • Water-consuming crops like sugarcane and paddy are grown in states like Maharashtra and Punjab. 
    • Despite the intensive water requirement, Maharashtra grows 22 percent of the total sugarcane output in the country. 
    • Similarly, in Punjab, 80 percent of the water used for irrigating the paddy fields is drawn from groundwater sources. 
    • On the leeward side of the Western Ghats where rainfall is low, farmers are growing sugarcane, a water-intensive crop. As a result, a small fraction of cultivable land guzzles a disproportionate share of the state’s irrigation. 

• Virtual Water Loss: 

  • The international trade in agricultural commodities contributes to large quantities of virtual water loss by exporting water-intensive crops. 

• Poor Storage Capacity: 

  • The per capita water storage capacity in India is about 209 m3 which is meagre in comparison to other countries like Australia (3223 m3).

• Severe Mismatch between Water Resource and Population: 

• • Despite housing 18% of the global population, India has access to only 4% of the world’s water resources. 

Way Forward to Mitigate Water Crisis in India

• World Bank’s Water Scarce Cities Initiative:  It seeks to promote an integrated approach to managing water resources and service delivery in water-scarce cities as the basis for building resilience against climate change. 
• National Water Council (NWC): For national-level solutions, it would be most appropriate to form a NWC along the lines of the GST.  Its three main objectives should be to:
  • Preventing Unrestricted Groundwater Extraction: This would include the need to address the practice of providing free electricity for irrigation pumps, as any service provided entirely free is bound to be misused.
  • Assessment from a watershed and river basin perspective: It must be ensured that all institutions responsible for water management assess from a watershed and river basin perspective. 
    • Currently, there is a tendency for each State to view the river flows within their geographic boundaries and they have separate responsibilities for surface water and groundwater.
  • Realigning Cropping Patterns: It can be achieved by incentivising water-intensive crops in areas with surplus water and less water-intensive crops in water-stressed regions.

• Incentivising Micro Irrigation: It is needed not just in terms of initial subsidy but also in procurement from farmers adopting such practices. Gradually, states can mandate the use of micro-irrigation for specific crops.
  • India has the potential to bring nearly 69.5 million hectares under micro irrigation but so far, only 7.73 million hectares has been covered under micro-irrigation.
• Decentralising Micro Irrigation Management: In the case of small irrigation schemes, the ability to deliver water efficiently to the last mile is missing. This can only be improved by the support and involvement of the end users. 
  • A framework that decentralises micro irrigation management to either FPOs or Water User Associations would be more effective. 
• Rainwater Storage: India is not an inherently water-starved country as it receives annually about 2,600 billion cubic metres (BCM) of water through rain and snow. 
  • However, only around 258 BCM (or less than a tenth) can potentially be stored in available water reservoirs. 
  • Measures such as rainwater harvesting and traditional models of water conservation, as pioneered by Rajendra Singh, the Water Man of India are needed.
• Replenishing Groundwater: To address the seasonal fluctuations in groundwater levels, utilising open spaces such as fallow land and green areas to recharge shallow aquifers with rainwater during the monsoon season could prove beneficial.
• Optimum Water Pricing: A good pricing model needs to account for both the user’s capacity to pay as well as the real cost of the water. 
  • Financial tools such as a Water Risk Monetizer (a financial tool developed by Ecolab, Microsoft and Trucost) provide a new way for governments and businesses to assess the true cost of water by looking at various factors like water availability, projected water usage, current price of water and water quality.
• Disintivising Water Intensive Crops: The cultivation of water-intensive crops such as sugarcane in Maharashtra and rice in Punjab and Haryana should be incentivised and they must be shifted to water-rich eastern and north-eastern regions. 
• Other Steps Needed:
• • Ensure complete treatment of domestic sewage.
  • Apply the ‘polluter pays’ principle to industries discharging untreated industrial effluents as per the Water Act of 1974.
  • Create mini forests of 1-2 hectares with native species in each ward, and re-establish inter-connectivity among lakes by evicting all encroachments of storm water drains.

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This Article is based on the news “India seals pact with 4-nation Europe trade group: $100 bn & 10 lakh jobs in 15-yr deal” which was published in the Indian Express. Recently, India and the four-nation European Free Trade Association (EFTA), an intergovernmental grouping of Iceland, Liechtenstein, Norway and Switzerland, signed a Trade and Economic Partnership Agreement (TEPA).

India EFTA Trade and Economic Partnership Agreement

• The negotiations for this Trade and Economic Partnership Agreement (TEPA) began in 2008, with 13 rounds of talks held until 2013. After a hiatus, negotiations resumed in October 2023 and concluded swiftly.
• TEPA is the fourth major deal signed by India to promote trade and economic cooperation in the last three years. The others are with Australia, Mauritius and the UAE.
• EFTA, though not part of the European Union (EU), is an organization that promotes free trade among its member countries.

Crucial Insights of the Trade and Economic Partnership Agreement (TEPA)

• An Investment Commitment: 

  • Trade and Economic Partnership Agreement (TEPA) is a modern and ambitious Trade Agreement and this Pact will see the EFTA countries committing to invest $100 billion in India and aiming to generate 10 lakh jobs over a 15-year period in exchange for tariff concessions for their pharma, chemical products and minerals, among other items.

• Aim: 

  • The Trade and Economic Partnership Agreement enhances market access and simplifies customs procedures, making it easier for Indian and EFTA businesses to expand operations in the respective markets. 
  • It also aims to facilitate and promote investment opportunities between the countries.

• Covered Aspects Under Trade and Economic Partnership Agreement (TEPA)

  • The deal covers various aspects such as trade in goods, rules of origin, intellectual property rights, services, investment promotion, government procurement, technical trade barriers, and trade facilitation.
    • The trade deal also covers gender and environmental aspects.

• Investment Fund: 

  • It would largely come from provident funds in EFTA countries.
    • These include Norway’s $1.6-trillion sovereign wealth fund, the world’s largest pension fund,  which posted a record profit of $213 billion in 2023 due to its investments in technology stocks.
    • However, it may not be legally binding and falls under “investment promotion”.
    • The EFTA deal excludes crucial pension and wealth funds that could have given greater confidence to investors. 
      • For greater certainty, parties recognise that sovereign wealth funds are excluded from the promotion obligations undertaken by the EFTA states.

• First Free Trade Agreement (FTA): 

  • For the first time, India is signing FTA with four developed nations – an important economic bloc in Europe.
    • An Earlier Interest: The India EFTA deal has gone through a decade after negotiations were abandoned in 2013 due to differences between the two partners after as many as 13 rounds of talks. 
      • A Free Trade Agreement (FTA) is an arrangement or a treaty between two or more countries to remove trade barriers and facilitate trade between them.

• No to Data Exclusivity: 

• • India earlier rejected the four nations’ demand for the pact to include provisions on “data exclusivity” that would make it difficult for its drug companies to produce generic variants of the off-patent drugs.

• Excludes Provisions: 

  • India and the EFTA also agreed to largely keep “sensitive” farm products and gold imports out of the pact.
  • Sectors such as dairy, soya, coal and sensitivity related to PLI in sectors such as pharma, medical devices & processed food etc. are kept in the exclusion list.

India’s Push for Investment Commitment in the EFTA Deal

• To Overcome Instability: 

  • Major geo-political shifts and a common goal to divert the economies away from their dependence on China helped India seal its first trade agreement with European countries.
    • India’s imports of chemical products from China in FY23 was $20.08 bn and India imported $3.4 bn worth of medical and bulk drugs worth nearly $7 bn.
      • The deal will help in diversifying imports away from China. 

• Geopolitical Opportunity: 

  • While India is seen as a top contender by global inventors, the Vietnam-led Association of Southeast Asian Nations (ASEAN nations) and North American nations like Mexico are also emerging as favourable investment destinations. 
    • A delay in streamlining investment flows and renewed attempts at global integration may turn out to be a missed geo-political opportunity.

• To Counter Trade Deficit Scenario: 

  • India runs a trade deficit with most of its top trade partners, except for the US. 

• For India’s Growth: 

  • The $100 billion investment commitment by EFTA could help India generate economic activity and jobs in exchange for giving market access to EFTA.
  • The deal could help India power its services sector further.

• Improvement in the India-Swiss Relations: 

  • India hopes the pact will improve trade ties with Switzerland (the biggest partner in the EFTA). 
  • India is its fourth-largest trading partner in Asia and the largest in South Asia.

India’s Economic Relations With the EFTA Countries

• Major Trading Partner: India is the EFTA’s fifth-largest trading partner after the EU, the United States, Britain and China, with total two-way trade touching $25 billion in 2023.
• Services trade and foreign direct investment (FDI) have also reached substantial levels.
• The Statistics: 
• • Exports: According to government data, India’s exports to the EFTA region during January-December 2023 were worth $1.87 billion.
  • Key Exports: Chemicals, iron and steel, gold, precious stones, yarns, sports goods, glassware and bulk drugs to these nations.
  • Imports: India’s imports from the EFTA region was more than $20.45 billion, with Switzerland’s share alone pegged at $19,65 billion, owing to gold purchases.
    • Key Imports: Gold, silver, coal, pharmaceuticals, vegetable oil, dairy machinery, medical items, crude and scientific equipment. 
  • On FDI: India has received about USD 10 billion of foreign direct investments (FDI) from Switzerland between April 2000 and December 2023. 
    • The FDI inflow was USD 721.52 million from Norway, USD 29.26 million from Iceland and USD 105.22 million from Liechtenstein during the period.

Significance of Trade and Economic Partnership Agreement (TEPA) For India

• Boost to Export: India expects that the pact will boost exports of pharmaceuticals, garments, chemicals and machinery.
• To Attract Investment: India expects that the pact will help in attracting investments in automobiles, food processing, railways and the financial sector.
  • India is looking to attract investments and get better market access for its service sector workforce.
• To Diversify Import Sources: India is looking at the EFTA deal to help diversify imports away from China. India currently depends on China for key medical imports.
  • EFTA is also looking at striking joint ventures in pharma, (especially medical devices), chemicals, food processing and engineering.
• Success History: EFTA’s Trade Agreements history shows that FTAs with EFTA have been favourable for other countries. 
  • 29 FTAs with the EFTA are currently in operation.
• Support in UNSC: The deal will play a significant role by supporting India’s permanent membership of UNSC. 
  • The EFTA countries recognise India’s growth as a world leader.
• Achievement of Green Energy Target: EFTA countries can help India to meet its green growth aspirations of 50% renewable energy by 2030, with their cutting-edge technologies.
• Promotion of Democratic Values: Deeping of economic cooperation would further promote the shared democratic values such as inclusive growth, gender equality and sustainable development.

Significance of Trade and Economic Partnership Agreement (TEPA) For EFTA

• More Export: The pact allows EFTA nations the opportunity to export processed food and beverages, electrical machinery, and other engineering products. 
  • The pharmaceutical and medical devices industry within the bloc could also benefit.
• Gain Market Access to a Major Growth Market: The Pact will help EFTA to explore the Indian market (a potential market of 1.4 billion people) at lower tariffs, which would otherwise be high around 18%, among the highest in the world.

Challenges in India EFTA Relations

• Data Exclusivity: Data exclusivity safeguards would promote monopolization for foreign pharmaceutical companies and would be a setback for the Indian generic industry. 
  • The details of data exclusivity solutions remain undisclosed, raising curiosity about how the interests of both parties will be reconciled.
  • It will also lead to a rise in the cost of affordable medicines in India.

• Differences in Economic Structures: EFTA countries focus on high-tech industries, while India’s industries generally serve lower and middle-tech sectors and bridging the differences in the economic interests would be a formidable challenge.
• Intellectual Property Rights Protection: There is a challenge of IPR protection of the EFTA companies engaged in pharmaceuticals, biotechnology, and machinery manufacturing.
• Challenges for Market Access: Issues regarding tariffs, quotas and non-tariff barriers are impacting the free market access between the two parties. 
• Regulatory Differences: There are wide-ranging differences in regulations, standards and legal frameworks between India and EFTA countries.
• Concerning Trade Deficit: India has a significant trade deficit with EFTA countries, especially driven by imports of gold and precious metals, raising concerns about the imbalance in trade relations.
• Limited Tariff Benefits: Existing zero or low tariffs in EFTA countries limit the potential gains for Indian goods exports, particularly in industrial and agricultural sectors.
  • Switzerland’s policy of tariff-free entry for all industrial goods from any country, with effect from January 1, would affect benefits to Indian companies.
    • India is likely to keep facing difficulties in exporting farm produce to Switzerland due to a complex web of tariffs, quality standards, and approval requirements.

Way Forward

• Addressal to Data Exclusivity Issue: The high-level delegates should work towards resolving outstanding issues such as data exclusivity to smooth future ties.
• Identify Areas of Mutual Benefit: There is a need to identify more areas of mutual benefit and cooperation must be enhanced.
• Secure Domestic Manufacturers: India needs to secure its important domestic sectors where EFTA countries have a competitive edge, such as pharmaceuticals and machinery manufacturing.
• Environmental and Social Considerations: There is a need to include and address more contemporary challenges like promoting sustainable development and gender equality.
• A Favouring Investment Commitment: With this deal, India could see higher imports of machinery, pharmaceuticals, medical instruments and machinery as there would be a sharp reduction in Indian tariffs.
  • Therefore, an investment commitment is crucial as India EFTA trade is largely in favour of the European grouping as far as goods are concerned.
    • Example, India runs a high trade deficit with Switzerland, which could widen after India eliminates duties as part of the deal.
• Promote Collaboration on Skilled Labour: Collaboration on Skilled Labour is crucial to achieve the threshold potential of both the parties, specially for India. 

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