Context

According to the India TB Report 2024 released by the Union Health ministry The gap between the estimated number and actual cases of tuberculosis (TB) is closing.

Key Highlights of the India TB Report 2024

• Missing Cases: There were only 2.3 lakh missing cases in 2023, as compared to 3.2 lakh the year before
• Comparison between Private and Government Health Centres: The majority of the TB cases are still reported by the government health centers, even as there has been an uptick in notifications by the private sector.
  • Nearly 33% or 8.4 lakh of the 25.5 lakh cases reported in 2023 came from the private sector. 
  • To compare, only 1.9 lakh cases were reported by the private sector in 2015
• Increase in Estimated incidence: The estimated incidence of TB in 2023 increased slightly to 27.8 lakh from the previous year’s estimate of 27.4 lakh. 
• Mortality Rate: The mortality due to the infection remained the same at 3.2 lakh as per the data.
• India specific data: India reached its 2023 target of initiating treatment in 95% of patients diagnosed with the infection.
  • It says 58% of those diagnosed were offered a test to check whether their infection was resistant to the first line drugs, an increase from 25% in 2015. 

DOWNLOAD PDF

Context

The Union government  recently notified the revised wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

Revised MGNREGA Wages Rates

• MGNREGA Rate in Uttar Pradesh: The hike ranged from ₹7 in Uttar Pradesh (2023- ₹230 – to 2024 rate of ₹237) 
• MGNREGA Rate in Goa: ₹34 hike in Goa (2023 wages ₹322 to 2024 wages ₹356)
• Highest and Lowest Wage Rate: Haryana continues to offer the best wages at ₹374 per day, Uttar Pradesh at ₹237 has one of the lowest wages

About Wage Rates for MGNREGS Workers

• Section 6 of the MGNREGA, 2005: The Ministry of Rural Development establishes state-specific salary rates for MGNREGS workers under sub-section (1) of Section 6 of the MGNREGA, 2005.
• Fixing of Wage Rates: Wage rates are set in response to changes in the CPI-AL (Consumer Price Index-Agriculture Labourer), which measures inflation in rural areas.
  • The Labour Bureau publishes the CPI-(AL), which has 2010-11 as its base year.  
• Determination of MGNREGA Wage rates: MGNREGA wages are decided based on the amount of work accomplished, using a piece-rate method.
• Payment basis: The real payment is based on the worker’s productivity, which is calculated using each state’s particular Schedule of Rates. 
• Variation in Payments across states: These rates vary by state and serve as the foundation for computing pay for MGNREGA participants.

About Mahatma Gandhi National Rural Employment Guarantee Act

• Introduced Year: 2005.
• Nodal ministry: Ministry of Rural Development (MRD).
• Mandate: To Provide at least 100 days of guaranteed employment each fiscal year to every rural household whose adult members agree to conduct unskilled manual labour at the statutory minimum wage.

DOWNLOAD PDF

Context

Recently,the Kerala Kalamandalam, a deemed university for arts and culture, has lifted gender restrictions to learn Mohiniyattam.

About Mohiniyattam

• Origins: Mohiniyattam dance derives its name from the word ‘Mohini’, a female incarnation of Lord Vishnu. Its roots date back to the age-old Sanskrit Hindu text on performing arts called ‘Natya Shastra’.
• Dance Form: Mohiniyattam is an Indian classical dance form that evolved in the state of Kerala.
• History:  At a time when the Devadasi tradition was prevalent in many parts of south India, Mohiniyattam used to be performed by Devadasis (temple dancers) in temples, during the rule of the Chera kings from 9th to 12th C.E. 
  • This dance form also has elements of other performing art forms of Kerala viz. Koothu and Kutiyattam in it.
• References in Historical Texts: References of Mohiniyattam can be found in the texts Vyavaharamala written in 1709 by Mazhamagalam Narayanan Namputiri and in Ghoshayatra, written later by great poet Kunjan Nambiar.
• Patronage of Various Rulers: The initiation and patronage of the Maharaja of the Kingdom of Travancore, Swathi Thirunal Rama Varma, a poet and brilliant music composer, in the early 19th century saw the eventual development and systematization of present day Mohiniyattam.

Features of Mohiniyattam Dance

• Solo Performance: It is typically a solo dance performed by female artists.      
• Feminine form of Dancing: It follows the Lasya style, which features a more elegant, gentle, and feminine manner of dancing.     
• Emoting through Dancing and Singing: It emotes a play through dance and singing, with the song traditionally in Manipravala, a combination of Sanskrit and Malayalam.
• Carnatic Music: The dancer or vocalist may perform the recitation, which is set to Carnatic music.      
• Dance Movements: The dance is distinguished by its gentle swaying body movements, which lack sharp jerks or quick leaps. The motions are emphasized by glides, up and down movement on toes, and are heavily dependent on the skill of balance.
• Hand Gestures: The emphasis is on hand gestures and Mukhabhinaya, or subtle face expressions, rather than footwork. The 24 hand motions are primarily based on the literature ‘Hastha Lakshana Deepika’, which Kathakali follows.
• Costumes: Mohiniyattam costumes feature a basic white or ivory cream traditional sari embellished with dazzling gold-laced brocade.
• Musical Instruments: Musical instruments include the Mridangam, Madhalam, ldakka, flute, Veena, and Kuzhitalam (cymbals).

DOWNLOAD PDF

Context

Recently, Pakistan’s Foreign Minister said his country may “seriously examine” the question of resuming trade with India.

Reasons for Halting of India Pakistan Bilateral Trade

• Abrogation of Article 370: Bilateral trade between India and Pakistan has been suspended since 2019.
• Increase in customs duty: In 2019, India placed a 200% tax on Pakistani imports.Pakistan, as part of its unilateral measures, halted bilateral trade with India.
• Abolition of Most Favored Nation clause: In 1996, India granted Pakistan most favoured nation status (MFN). Following the Pulwama terrorist attack, Pakistan’s MFN status was abolished.

Composition of Trade Before Suspension

• Trade Surplus for India: India had a trade surplus because the total value of products and services shipped to Pakistan was significantly higher.
• Little Share in India’s Trade: India-Pakistan commerce accounted for only $2.29 billion (0.35% of India’s total trade).
• Imports from India: Cotton, organic compounds, polymers, tanning/dyeing extracts, nuclear reactors, boilers, machinery, and mechanical appliances are among the products imported from India.
• Imports from Pakistan: Imports from Pakistan include mineral fuels and oils, edible fruits and nuts, salt, sulphur, stone and plastering materials, ores, slag and ash, raw hides, and leather.

Condition Post the Bilateral Trade Suspension

• Indirect trade: A few less freight-sensitive products, such as dry dates, began entering each other’s markets through indirect methods.
• Indian merchandise appeal: Products such as cloth, cosmetics, and jewellery have freely entered Pakistani marketplaces, earning popularity among local consumers.
• Entering of Indian Goods through other  countries: Indian commodities entered Pakistan through Afghanistan, China, and Dubai, filling the gap in cross-border commerce.
  • For Example: Dubai has facilitated trade between the two countries by serving as a neutral ground for the various companies to conduct business without being inhibited by political tensions or border crossings.
• Exorbitant import costs: High import costs pushed Pakistan to abolish the restriction on cotton imports from India, as importing cotton and sugar from nations such as the United States and Brazil is costly and time-consuming.
• Low Volume Trade: Low-volume, high-value items include jewellery, machinery, pharmaceuticals, and chemicals. 
  • Businesses can afford to take a longer route, particularly through Dubai, because the additional costs are transferred directly to customers.

Challenges to Normalization of India Pakistan Trade

• Trade circumvention: Imports to Pakistan are routed through Dubai or Singapore, resulting in additional freight, transhipment, and transportation costs.
• Trade- Ban: Pakistan’s imports fell drastically between April 2020 and January 2021, while cotton imports stopped altogether. 
  • The only increase was in pharmaceutical products, as Pakistan looked to ensure sufficient supplies of medicines during the Covid-19 pandemic.
• Policy Instability: In 2021, Pakistan’s Economic Coordination Council, a top decision-making body, allowed the import of cotton and yarn from India. 
  • A low domestic yield and the high cost of imports from the likes of Brazil and the United States were believed to be the reasons behind the change of stance. 
• Classifying Imports: In 2012, Pakistan replaced a “Positive List” of over 1,950 tariff lines allowed for import from India with a “Negative List” of 1,209 lines that could not be imported.

DOWNLOAD PDF

Context

A study conducted by Sir Ganga Ram Hospital in New Delhi showed that public knowledge regarding Hepatitis B is considerably deficient in India. 

Urgent Need for Expanded Hepatitis B Vaccination in India

• Disparities in Vaccine uptake: The study identified disparities in vaccination uptake influenced by gender, education levels, and the urban-rural divide.
• Importance of Expanding Vaccination efforts: These disparities highlight the importance of expanding vaccination efforts and making these initiatives available to all demographic segments, particularly those most at risk.

About Hepatitis 

• Definition: Hepatitis is an inflammation of the liver.
• Duration: Hepatitis can be either acute (short-term) or chronic. 

Causes and Types of Hepatitis

• Viral hepatitis: It  is the most prevalent form. It is caused by one of several viruses, including hepatitis A, B, C, D, and E.
• Alcoholic hepatitis : Alcoholic hepatitis is caused by excessive alcohol consumption.
• Toxic hepatitis : Toxic hepatitis can be caused by various poisons, chemicals, medications, and supplements.
• Autoimmune hepatitis: It is a chronic condition in which your body’s immune system assaults the liver. The reason is unknown, however genetics and environmental factors may play a role.

Types of Viral Hepatitis

• Hepatitis A: The Hepatitis A virus causes an infectious liver disease. It is acute, and most symptoms are not recognised, particularly in young people. The symptoms are vomiting, nausea, fever, severe stomach pain, jaundice, and weakness.
• Hepatitis B: It is a contagious disease caused by the Hepatitis B virus. It is transmitted through flat, exhausted wounds and contact with an infectious body’s blood, saliva, or secretions. The symptoms are stomach pain, tiredness, and jaundice.
• Hepatitis C: The Hepatitis C virus causes an infection of the liver. This can be transmitted through infected needles, at birth, through an infected person’s body fluids, or by having sex with several partners, particularly HIV-infected people.
• Hepatitis D: It is one of several serious liver illnesses caused by the Hepatitis D virus. It spreads through infected blood or wounds. It may occur in association with Hepatitis B.
• Hepatitis E: This is a waterborne disease caused by a virus. It could be spread through food, water, or tainted blood. It could be acute or persistent.

Status of Hepatitis in India

• Infected Population: The Hepatitis B virus infects 40 million people, while the Hepatitis C virus infects 6-12 million. 

• National Viral Hepatitis Control Programme (NVHCP): The National Viral Hepatitis Control Programme (NVHCP) was launched in 2018, with the goal of eliminating Hepatitis C by 2030. The scheme is the largest in the world for identifying and treating hepatitis B and C.
• Hepatitis B Vaccine: Shantha Biotech, situated in Hyderabad, created the first recombinant DNA-based vaccination against Hepatitis B infection.
• COBAS 6800: Recently, an automated coronavirus testing instrument called the ‘COBAS 6800’ was introduced, which can also identify viral Hepatitis B and C, among other things.
• Universal Immunization Programme: Hepatitis B is covered in India’s UIP, which offers free vaccination against eleven vaccine-preventable diseases. 

DOWNLOAD PDF

Context

Recently, Supreme Court in the Nenavath Bujji vs State of Telangana and ors observed that Inability Of State’s Police Machinery To Tackle Law & Order Situation should not be an excuse to Invoke power Of Preventive Detention.

Preventive Detention Can’t be Misused for Law & Order Issue

• Observation on Telangana Prevention of Dangerous Activities Act of 1986 : SC observed that mere registration of the two FIRs for the alleged offences of robbery etc. could not have been made the basis to invoke the provisions of the Act 1986 for the purpose of preventive detention.
• Consideration by the Advisory Board: The  SC bench led by CJI further said that the “The Advisory Board must consider whether the detention is necessary not just in the eyes of the detaining authority but also in the eyes of law.
• Ameena Begum v. The State of Telangana & Ors: In that case supreme court has established a set of principles that should be adhered to by the courts while Evaluating the legality of preventive detention orders.

What is Preventive Detention?

• It means detention of a person without trial & Conviction by a Court on mere reasonable suspicion of him doing activity dangerous to public order.

• In India, preventive detention is regulated by a variety of laws and regulations that authorize the government to detain individuals preventively.
• Both Parliament & State legislatures have authority to make law of Preventive Detention.
  • Parliament has exclusive control over National security, Defense & Foreign affairs while Both Parliament & State legislature can make law for the maintenance of security of state & Public Order. 
  • Laws made by the Parliament for the Preventive Detention : 
    • National Security Act (NSA), 1980
    • Unlawful Activities (Prevention Amendment Act (UAPA), 2019
    • State specific laws like : Maintenance of Internal Security Act (MISA) & Public Safety Acts (PSA) in some states.
• Unique Constitutional Provision: No democratic country in the world has made preventive detention as an integral part of the Constitution as has been done in India.
  • Article 22(3)(b): It permits preventative detention in order to maintain public order and security of the state . 
  • Article 22(4): No person can be detained for more than a period of 3 months unless an advisory board confirms that there is a sufficient cause in the event of an extended extension.
    • Advisory Board comprises any person who have been or qualified to be appointed as judge of the High Court.
  • Extended Preventive Detention: Article 22(7) also authorizes the Parliament to prescribe circumstances & classes of cases in which a person can be detained for more than three months under a preventive detention law without obtaining the opinion of an advisory board.
  • Maximum period for which a person can be detained under a preventive detention law; 
    • Procedure to be followed by an advisory board.

Preventive Detention Vs Punitive Detention

Concerns Regarding Preventive Detention 

• Human Right Violation: It fails to offer procedural safeguards aimed at diminishing detainees’ susceptibility to torture and discriminatory treatment, as well as preventing officials from exploiting preventive detention for subversive purposes.
• Arbitrary Use:  Governments occasionally resort to employing these laws outside the realm of judicial oversight. & There is a persistent apprehension regarding the arbitrary nature of detentions.
• Contrary to legal rights: According to Section 50 of the Criminal Procedure Code (CRPC), any individual subjected to arrest must be informed of the grounds for their arrest and be afforded the opportunity for bail. Nevertheless, in practical terms, obtaining bail is seldom a straightforward endeavor.
• Not Practiced in other Democratic Countries & against the International Covenants on Civil & Political Right which talks about personal liberties.

Way Ahead

• Stringent Enforcement of Procedural Safeguards: The Supreme Court has emphasized the necessity for rigorous scrutiny of preventive detention laws to prevent their misuse. 

• Balance Security & Human Rights: Preventive detention must be utilized with careful consideration of the delicate equilibrium between social security & personal freedom.
• Ensure Rights of Detenu & Inform Reason for Detention : Procedural guidelines must be enforced so detenu can use them accordingly.
• Transparent Investigation & Adequate Compensation should be enforced.

DOWNLOAD PDF

Context

Border Roads Organisation (BRO) connected the strategic Nimmu-Padam-Darcha road in Ladakh. 

BRO Connects strategic Nimmu-Padam-Darcha Road in Ladakh

• Connectivity: This 298-km road will connect Manali to Leh through Darcha and Nimmu on Kargil – Leh Highway. 
  • The road starts at Nimo, which lies on the Leh-Srinagar highway, 35 km before Leh.
• Third Axis connecting Ladakh: The road is now the third axis apart from Manali-Leh and Srinagar-Leh which connects Ladakh to the hinterland.
• Road Alignment: The road is aligned along the course of Zanskar river till Padum, after which it follows the Lungnak river till Purne village and the Kurgiakh river till Shinkun La pass, which is located on the border of Himachal and Ladakh. 
  • It meets the Manali-Leh highway in Darcha, a village in Lahaul And Spiti district.

• Significance: 
  • The Nimmu-Padam-Darcha road is not only shorter vis-a-vis the other two axes, but crosses only one pass i.e, Shinkun La (16,558 feet) on which tunnel work is about to commence by the BRO. 
  • All weather connectivity to the Ladakh region: The connectivity will strengthen the defense preparedness and provide a boost to the economic development in the Zanskar valley.

About Zanskar River

• About: The Zanskar River is a north flowing tributary of the Indus River in Jammu and Kashmir. 
• River Branches: Zanskar River has two main branches, one is Doda with main source near Pansi-La Pass and other branch is formed by Kargyag River (source near Shingo La) and Tsarap River (source near Baralacha La). 
• River Course: The river meanders north –westwards through the dramatic gorge of Zanskar and finally meets the Indus River near Nimmu of Ladakh region.

DOWNLOAD PDF

Context

The Reserve Bank of India (RBI) has made revisions to regulations entities (REs) regarding their investments in Alternative Investment Funds (AIFs).

RBI Relaxes Rules on lenders’ Investment in AIFs

• The Provisions apply to banks and other financial institutions (called REs). Under the new rule, regulated entities (REs) must reserve funds only for the portion of their investment in the AIF scheme that is subsequently invested by the AIFs in a debtor’s company, not for the entire investment in the AIF scheme.

• The circular doesn’t apply to investments made by REs in AIFs through intermediaries like fund of funds or mutual funds.

What are Alternative Investment Funds (AIFs)? 

• Alternative Investment Funds (AIFs) are private investment pools created in India.
• They gather funds from sophisticated investors, including both Indian and foreign individuals, for investment activities.
• AIFs function in accordance with the SEBI (Alternative Investment Funds) Regulations of 2012.
• These funds can be structured in various forms such as companies, Limited Liability Partnerships (LLPs), trusts, and more.

Risks Associated with investment in Alternative Investment Funds (AIFs)

• High Minimum Investment Requirement.
• Lock-in Periods: Many AIFs enforce lock-in periods to restrict investors from withdrawing funds immediately.
• Complexity and Risk: AIFs involve complex investments with higher risks compared to traditional options.
• Fee Burden: AIFs generally impose higher fees, which can significantly reduce investor returns.
• Limited Transparency: Despite regulatory oversight, AIFs may lack transparency, making it challenging for investors to assess their holdings accurately.

Reasoning Behind the RBI Modifications

• Ensuring Consistency:

  • Same rule for AIF: The RBI wants all regulated entities (REs) to follow the same rules when investing in Alternative Investment Funds (AIFs).
    • This ensures fairness and clarity in how investments are managed across the board.

• Addressing Stakeholder Concerns:

• • Transparency and responsiveness: The RBI has taken into consideration stakeholders’ concerns in AIF investments to enhance transparency and responsiveness in the investment process.

• Simplification of Investment Process:

  • Exclusion of Equity Shares: Investments in equity shares of the debtor company of the RE will not be counted as downstream investments.
    • This helps simplify the investment process and reduces potential conflicts of interest.

• Management of Risks Through:

  • Inclusion of Other Investments: All other investments, including hybrid instruments, would be considered downstream investments.
    • This ensures that all relevant investments are properly accounted for, which helps manage risks more effectively.

• Assessment of Actual Risks Involved in Alternative Investment Funds (AIFs):

  • Focus on Provisioning: Now, REs only need to reserve funds for the part of their investment in the AIF scheme that is further invested in the debtor company.
    • This change aligns regulatory requirements with the actual risks involved in AIF investments.

• Prevention from Evergreening of Loans:

  • In December 2023, the RBI had stopped REs from investing in AIF units that had downstream investments in any debtor’s company of the REs.
    • This move was aimed at preventing the practice of extending loans indefinitely, known as evergreening of loans.

Also Read: RBI Report On Panchayati Raj Finance

DOWNLOAD PDF

Context

India is set to replace its minimum wage system with a living wage system by 2025. 

India Wants to Establish a Living Wage Standard by 2025

• Assistance from ILO: The government is seeking technical assistance from the International Labour Organisation (ILO) to develop a framework for estimating and implementing the living wage.
• Endorsement by ILO: The move follows the ILO’s recent endorsement of the concept of a living wage.
  • The endorsement came after an agreement was reached during a Meeting of Experts on wage policies which was subsequently endorsed by the ILO’s governing body.

Current Wage System in India

• National Floor Level Minimum Wage (NFLMW): Under the new Code on Wages 2019, the NFLMW is set by the government which mandates the establishments to set the minimum wage not less than the NFW. 
• Flexibility of Minimum Wage Standards: As per Section 5 of the Code on Wages 2019, no employer can fix the minimum wage below it.
  • However,  it’s not a mandatory provision, the minimum wage rates can be revised accordingly by the State. 
  • Currently, the National Floor Wage is Rs 178 per day.

What is Living Wage?

• According to the ILO,  the living wage is defined as the level of remuneration “necessary to afford a decent standard of living for workers and their families, taking into account the country’s circumstances and calculated for the work performed during the normal hours of work”.
  • This decent standard of living includes being able to afford food, water, housing, education, healthcare, transportation, clothing and other basic needs including a provision for contingencies.

About Minimum Wage

• Definition: Minimum wage is the lowest amount of remuneration required by law to be paid by employers to employees for work performed during a given period. 
• Difference with Living Wage: While the minimum wage aims to protect workers from low pay, the living wage goes further by providing enough income to cover basic needs such as food, clothing, shelter, and more. Despite earning minimum wages, workers often fall below the poverty line.
• Basis for Calculation: In India, the minimum wage is calculated on the basis of the state, worker’s skill level and the nature of their work among other factors. 

Legislations on Minimum Wage

• Minimum Wages Act, 1948: Until 2019, the minimum wages were fixed through the Minimum Wages Act, 1948.
  • Under this, the Central government fixed the wages of the workers engaged in scheduled employment such as railways, oilfields, etc while the authority to decide the minimum wage for the rest went to the State government including the private sector. 
• The Code of Wages, 2019:  It was introduced in an attempt to bring uniformity in the implementation of legal policies governing the payment of wages. 
  • It states that the minimum wage cannot be fixed below the National Wage Floor (NFW). However, this code, which is binding on all states, is yet to be implemented.

Need for Living Wage Standard and Its Significance

• Insufficiency to Meet Basic needs: Addressing worker concerns about the current minimum wage, which is seen as insufficient to meet basic needs, especially with inflation.
  • According to the data, 45% of salaried workers earn less than Rs 9750 on monthly basis which is not appropriate for a worker to support himself and his family.
  • They often fall below the poverty line after getting minimum wages.
• Alleviating Poverty: The shift from minimum wages to living wages is aimed at accelerating efforts to lift millions out of poverty and ensure their well-being. 
• Wage Discrepancies: There are over 500 million workers in India and 90% of them are in the unorganised sector where many draw a daily minimum wage of `176 or more, depending on the state where they work.
  • However, this national wage floor — not revised since 2017 — is not binding on states and hence a few states pay even less than that.
  • Surveys have shown that almost 80 per cent of the workers in the unorganized sector earn less than 208 rupees a day, or less than half the government-stipulated rural minimum wage of 49 rupees a day and urban wage of 67 rupees. 
• Achieving SDGs: India is committed to achieving the Sustainable Development Goals (SDGs) by 2030, including the goal of promoting decent work and economic growth.
  • It is believed that replacing minimum wages with living wages could fast-track India’s efforts to pull millions of its people out of poverty while ensuring their wellbeing.
• Reducing Inequalities:  Since the early 2000s, India’s inequality has increased significantly, with the top 1% owning 22.6% of the country’s income. 
  • Therefore, in order to address this inequality, India needs to redesign its wage structure.
  • India’s strong economic growth, with a rate of 8.4 per cent, indicates the country’s capacity to support higher wages.
• Positive Work Culture: Higher wages can boost employee morale, leading to increased productivity, reduced turnover rates, and improved customer satisfaction. 
  • By investing in the well-being of their employees, businesses can create a positive work environment that fosters loyalty and a strong work ethic.

Challenges in Implementation of Living Wage Standard

• Diversity in Living Costs: The cost of living varies significantly between cities, states, and even districts, making it challenging to establish a uniform living wage rate.
  • According to a Cost of Living City ranking of 2022, Mumbai emerged as the most expensive Indian city with a rank of 127 followed by New Delhi (155).

• Unorganised Sector:  Of the nearly 500 million strong workforce, most of them are employed with the unorganised sector which falls outside the purview of scrutiny. 
• Fiscal Implications:  For the government, the fiscal implications could weigh heavily on the size of public debt.
  • Private-sector employers, on the other hand, would be reluctant to pay higher than necessary wages in fear of lower profits.
  • Imposing a living wage means creating a wage floor, which would hurt the economy by impacting businesses, especially those that cannot pay hiked salaries.
• Lack of Awareness: There is a lack of awareness amongst the workers about minimum wage provisions and their entitlement under the labour laws. 
  • This is particularly true in remote areas and in areas where workers are not unionized or organized. As a result, their wages have failed to keep pace with rising costs and continue to diminish in real value over time.
• Potential Impact of Automation and the Gig Economy on Wages: The rise of automation and the gig economy presents unique challenges for maintaining fair compensation for workers. 
  • As technology advances, certain jobs may become obsolete or undergo significant transformations. 

Way Forward

• Government Legislation and Policies for Living Wage: 

• • By enacting laws that establish minimum wage standards, governments can set a baseline for fair pay. 
  • However, to truly address the issue of living wages, governments must push beyond minimum wage laws and consider comprehensive policies that take into account the cost of living.

• Incorporating Multidimensional Indicators in Calculating Poverty: 

  • ILO must take into account health, education and standard of living as key indicators to arrive at a definition of living wages as these measures are used to assess the national multidimensional poverty in India.
    • The standard of living component must include the components of economic, social and demographic factors.

• Inflation Adjusted Wage: 

• • The minimum salary needs to be adjusted regularly to keep pace with the inflation. 

• Overcoming Challenges in Living Wage Implementation: 

  • Support to small businesses and industries that may struggle with increased labor costs.
    • Governments can incentivize businesses to pay living wages through tax credits, grants, or procurement policies. 

• • • Additionally, organizations can collaborate with employers to develop innovative approaches, such as shared responsibility models, that distribute the costs of living wages more equitably.

• Collective Bargaining in Wage Setting: 

  • Negotiations and collective bargaining play a vital role in the establishment of fair wages. 
    • By empowering workers to collectively negotiate their wages and working conditions, unions can ensure that workers’ interests are effectively represented and protected.

• Adaptation and Innovation:  

  • Policymakers, businesses, and labor advocates must collaborate to ensure that the transition to automation and the gig economy does not result in a widespread erosion of worker rights and fair compensation. 
    • By harnessing the power of technology,  a future may be created where automation complements human labor and where gig workers receive fair pay and benefits.

• Integration of Living Wages into Sustainable Development Goals: 

• • By aligning living wages with the broader framework of sustainable development, we can strengthen the global commitment to fair compensation and accelerate progress towards a more just and prosperous future for all.

Conclusion

India’s aim to replace the minimum wage with a living wage by 2025 represents a significant step towards improving the lives of Indian workers. The government’s commitment to developing a well-defined and operational system, with technical assistance from the ILO, is crucial for the successful implementation of this policy. Balancing affordability for businesses with ensuring worker well-being will be key to achieving this goal.

DOWNLOAD PDF