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• Recently, the Open AI board fired CEO, co-founder Sam Altman and President Greg Brockman.

OpenAI’s Inception and Mission

• Establishment: Founded in December 2015 as a non-profit AI research organization.
• Mission: Develop artificial general intelligence (AGI) that benefits humanity and prevent tech monopolies.

Founding Members and Funding

• Founding members include Sam Altman, Greg Brockman, Elon Musk, Reid Hoffman, Amazon Web Services, Infosys, and others.
• Collective pledge of $1 billion to advance AGI research.

Evolution and Challenges

• Transition to For-Profit Model: In 2019, Open AI transitions into two entities: a capped-profit organization (Open AI Global LLC) and a non-profit sole controlling shareholder (OpenAI Inc).
  • Altman secures $1 billion in funding from Microsoft, facilitating the commercialization of OpenAI’s technology.
• Breakout with ChatGPT: OpenAI gains prominence with the release of ChatGPT, based on the GPT-3.5 architecture.
  • Over a million people sign up for the free preview within the first five days.
  • A GPT is a neural network, or a machine learning model, which functions like a human brain and is trained on input, such as large data sets, to produce outputs, meaning answers to users’ questions.

News Source: Indian Express

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• Flight operations at Bir Tikendrajit International Airport in Imphal, Manipur, were disrupted after an Unidentified Flying Object (UFO) was observed.

What is UFO?

• Definition of Unidentified Flying Object: Coined by the US Air Force in 1952, UFOs refer to any apparent aerial phenomenon whose cause cannot be easily or immediately identified by the observer.”
  • Originally, Unidentified Flying Objects were objects under investigation, but the term now casually describes any unidentifiable object.
• US Government Involvement:
  • Project Blue Book, from 1952 to 1969, compiled over 12,000 Unidentified Flying Object reports, classifying only 6% as unidentified.
  • Recent government reports (2021) find limited data on sightings inconclusive, with patterns observed around US training and testing grounds.

UAPs: A Broader Term

• Unidentified Aerial Phenomenon (UAP) is a newer term replacing Unidentified Flying Object to avoid confusion and speculation.
• Used by the Pentagon and NASA to refer to unidentified anomalous phenomena.
• NASA commissions a study team to examine UAPs scientifically, focusing on data identification and collection.

News Source: The Indian Express

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• The Langlands program provides a beautifully intricate set of connections between various areas of mathematics, pointing the way toward novel solutions for old problems.

What is Langlands program?

• The Langlands program is named after Robert Langlands, a mathematician at the Institute for Advanced Study in Princeton.
  • In 2018, he was awarded the Abel Prize, one of the most prestigious awards in mathematics, for his program, which was described as “visionary.”
• This program was set in motion in 1967.
• Program is an attempt to find connections between two far-flung areas of mathematics: number theory and harmonic analysis.
  • Number theory: It is the arithmetic study of numbers and the relationships between them. 
    • A famous example of such a relationship is the Pythagoras theorem: a2 + b2 = c2.
  • Harmonic analysis: It is interested in the study of periodic phenomena. Unlike number theorists, who deal with discrete arithmetics (like integers), harmonic analysts deal with mathematical objects more continuous in nature (like waves).

News Source: The Hindu

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• The Ministry of Health and Family Welfare seeks public and stakeholder comments on the proposed National Pharmacy Commission Bill, 2023.

What are the key provision of the National Pharmacy Commission Bill, 2023?

• National Pharmacy Commission: The National Pharmacy Commission Bill proposes to establish the National Pharmacy Commission and repeal the Pharmacy Act, 1948.
• Enhancing Education and Access: Focus on improving access to affordable, high-quality pharmacy education.
  • Ensures availability of pharmacy professionals nationwide.
• Assessment and Registration: The Bill also calls for a periodic and transparent assessment of pharmacy institutions and facilitating maintenance of a pharmacy register for India.
• Ethics and Research Integration: Encourages pharmacy professionals to integrate the latest research into their work.
  • Emphasizes contributions to research and upholding high ethical standards.
• Grievance Redressal Mechanism: Establishes an effective grievance redressal mechanism for relevant matters.
• Commission Setup: Proposes the constitution of a commission with its head office in Delhi.
• Flexibility and Transparency: Draft of National Pharmacy Commission Bill proposes flexibility to adapt to changing needs.
  • Aims to ensure transparency through the Pharmacy Ethics and Registration Board maintaining a National Pharmacy Register.
  • The Pharmacy Ethics and Registration Board shall maintain an online and live National Pharmacy Register (NPR) containing the name, address, all recognised qualifications possessed by a pharmacy professional and such other particulars as may be specified by regulations.
• Digital Records and Timely Updates:
  • The National Pharmacy Commission Bill also proposes that every state chapter shall maintain and regularly update, in digital form, the State Pharmacy Professional Register and the State Pharmacy Register in the specified digital format.
  • State chapters needs to supply a digital and physical copy to the Pharmacy Ethics and Registration Board/Commission within three months of the commencement of the act.

News Source: The Hindu

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• China prioritizes extending the China Myanmar Economic Corridor (CMEC) to Sri Lanka, signaling an intent to enhance the Belt and Road Initiative (BRI) project in South Asia.

What is the China Myanmar Economic Corridor?

• China-Myanmar Economic Corridor (CMEC), one of the six land corridors under BRI, gains prominence, replacing the stalled Bangladesh China India Myanmar (BCIM) corridor.
• India and Bhutan are the only countries in South Asia that have stayed out of the BRI.

Sri Lanka’s BRI Participation and Economic Contributions

• Sri Lanka, a BRI participant, expresses readiness to embark on the second phase of the initiative, expecting a more substantial economic contribution.

About Belt and Road Initiative:

• The BRI was launched by Chinese President Xi Jinping  in 2013.
• Objective: To connect Asia with Europe and Africa, through a network of railways, highways, ports, airports, and other infrastructure projects with the intent to promote trade, investment, and economic growth in participating countries.
• Principal components: The Silk Road Economic Belt and the Maritime Silk Road
• Geographic Corridors under BRI:
  • China Pakistan Economic Corridor (CPEC).
  • New Eurasian Land Bridge Economic Corridor.
  • China-Indochina Peninsula Economic Corridor.
  • China-Mongolia-Russia Economic Corridor.
  • China-Central Asia-West Asia Economic Corridor.
  • China-Myanmar Economic Corridor.
    • Since India refused to join BRI, the BCIM corridor has also stalled, and has been replaced by a later launched China-Myanmar Economic Corridor.

India’s Stand

• India strongly opposes China’s Belt and Road Initiative (BRI), particularly the China-Pakistan Economic Corridor (CPEC), because it passes through Pakistan-occupied Kashmir (PoK).
  • CPEC (China-Pakistan Economic Corridor) which connects Gwadar Port in Pakistan’s Baluchistan with China’s Xinjiang province is the flagship project of BRI.
• India’s main concern is that this project disregards its sovereignty and territorial integrity.

News Source: The Hindu

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• The NDC synthesis report for 2023 is released by the United Nations Framework Convention on Climate Change (UNFCCC).
• It assessed 168 NDCs representing 195 countries of the 2015 Paris Agreement. Together, the countries contribute 94.9 percent of global emissions.

What are the key findings of the NDC Synthesis Report 2023?

• Insufficient for 1.5°C Target: If all countries implement their Nationally Determined Contributions (NDCs), global emissions will only be 2% lower in 2030 compared to 2019 levels.
  • This reduction is significantly insufficient to meet the goal of limiting global temperatures to under 1.5 degrees Celsius, as recommended by the Intergovernmental Panel on Climate Change (IPCC).
  • The IPCC suggests a 43% reduction in emissions by 2030 compared to 2019.
• Emission Projection: Despite current NDC targets, the report projects 51.6 gigatonnes of carbon dioxide equivalent (GtCO2e) emissions in 2030, only marginally lower than previous estimates.
  • The previous projection was 52.4 GtCO2e emissions in 2030.
• Carbon Budget Utilization: Cumulatively, the CO2 emissions from current NDCs will use up 87% of the remaining carbon budget, leaving around 70 GtCO2e post-2030.
• Conditional Emissions Peaking: There is a possibility of global emissions peaking before 2030, but this depends on meeting the conditional elements of the NDCs.
  • Implementing only the unconditional NDCs will lead to emissions rising by 1.4 per cent in 2030 compared to 2019 levels. 
• Conditional Elements and Finance: Developing countries highlight financial and technological access as critical to achieving their NDC targets.
  • 46% of NDCs outline quantified financial support needs, and 75% identify capacity building as essential.
• Long-Term Low-Emission Development Strategies (LT-LEDS): Almost half of the countries outline long-term mitigation plans in their NDCs, focusing on Net Zero emissions or carbon neutrality.
  • The collective emissions of NDCs outlining LT-LEDS are projected to be 35.9 GtCO2e in 2030, 6% lower than 2019 levels.
  • The report, however, noted that many Net Zero targets remain uncertain, with action postponed beyond this critical decade.
  • 43% of LT-LEDS indicate they will guide the development of further NDCs, emphasizing the need for more ambitious emissions reduction measures.

Path Forward

• Global Stocktake Opportunity: The reports will feed into the first-ever Global Stocktake at COP28, assessing countries’ progress towards climate commitments.
• COP28 Potential: The Global Stocktake offers an opportunity to strengthen target implementation and enhance financial flows from developed to developing countries.
• Call for Action: The Executive-Secretary of UN Climate Change emphasizes the need to use the Global Stocktake to rebuild trust, deliver on commitments, and increase resilience to climate impacts worldwide.

News Source: DTE

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• The NITI Aayog report, titled ‘Learnings for Large scale Transformation in School Education,’ delves into critical issues plaguing India’s education system.

Learnings for Large scale Transformation in School Education

• The NITI Aayog report analyses the implementation of Project SATH-E in Jharkhand, Madhya Pradesh and Odisha under 9 intervention categories.
• Nine Intervention Cateogries: These are school consolidation, remedial learning interventions, assessments, teacher recruitment and rationalisation, teacher capacity building, management information systems and academic monitoring systems, governance and accountability, organisation strengthening and leader schools.

What are the key issues identified in the NITI Aayog Report?

• ​​The NITI Aayog report pointed out 6 issues that need to be addressed in order to implement a large-scale transformation in providing quality education.
  • Addressing the issue of sub-scale, inadequately resourced schools head-on with strong political support
  • Solving large-scale teacher vacancies issues
  • Improving teacher quality and pedagogy
  • Enforcing accountability towards learning outcomes
  • Focus on Early Childhood Education (ECE) and contextualised Mother tongue-based Multilingual Education (MLE)
  • Strengthening the governance structures in education departments

What does the NITI Aayog Report propose as its key suggestions?

• School Merging as a Solution:
  • The NITI Aayog report advocates for the merging of schools as a strategic plan to address the issue of sub-scale schools with low enrollment.
  • The idea is to mitigate the cost associated with maintaining small schools and enhance overall efficiency in resource utilization.
  • According to the NITI Aayog report, India has 5 times the number of schools than China does for the same enrolment of students. 
  • It was also mentioned that more than 50% of primary schools across many states in our country have an enrolment of less than 60 students. 
  • Madhya Pradesh Example:
    • The report draws attention to the successful implementation of school merging in Madhya Pradesh.
    • In this example, 35,000 schools were merged into 16,000 same-campus schools with the aim of improving the quality of education.
  • Benefits of Merged Large Schools:
    • Merged large schools in Madhya Pradesh had adequate teachers and resources, addressing the issue of sub-scale schools.
    • The percentage of schools with a principal increased from 20% to 55% after the merger, indicating improved administrative structure.
• Addressing Unequal Distribution of Teachers:
  • To tackle the unequal distribution and shortage of teachers, the report recommends teacher rationalization and the implementation of structured policies.
  • This aligns with the National Education Policy 2020, emphasizing the importance of improving teacher quality and distribution.
• Prioritizing Early Childhood Education (ECE):
  • The NITI Aayog report underscores the need to prioritize Early Childhood Education (ECE) as part of the overall strategy.
  • This focus on ECE aims to enhance the school readiness of students.
• Decentralization of Powers:
  • The report suggests reconsidering the decentralization of powers to principals, district, and block officers.

News Source: Hindustan Times

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• According to a member of the Economic Advisory Council to the Prime Minister of India, Indians have spent USD 375 billion on gold imports on a net basis in the last 21 years.

The Impact of Gold Imports on India’s GDP Growth

• According to him, India could have achieved its US$ 5 trillion GDP target earlier if it had not resorted to importing gold and the habit of importing gold has led to a loss of one-third of India’s GDP.
• He implied that instead of investing in gold, money could be invested in India’s entrepreneurs.

Gold Imports in India

• India has been one of the largest consumers and importer of gold in the world for a long time. 
• In 2021, India ranked as the second largest gold importing country worldwide based on value, just below Switzerland and accounted for over 14% of global gold imports.
• In fiscal year 2022, India was estimated to import more than 3.4 trillion Indian rupees worth of gold. 
  • This represented an increase of around 35% compared to the previous year. 
• Reason for High Gold Imports: In India gold is viewed not only as a consumption good and a financial asset and it also has a socio cultural dimension since ages.
• Problem: Gold imports act as a huge burden on the country’s current account balance and a large part of it lies idle in the economy. 

Recommendations of Niti Aayog: ‘Transforming India’s Gold Market’ Report The  report included five focus areas:

• Make in India in Gold.
• Financialisation of Gold.
• Tax and Duty Structure.
• Regulatory Infrastructure.
• Skill Development and Technology Upgradation.

News Source: Economic Times

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• Recently, Oxfam International released the “Climate equality: A planet for the 99%” report.

Climate Equality

• Crisis: The world faces twin crises of climate breakdown and runaway inequality. 
  • The richest people, corporations and countries are destroying the world with their huge carbon emissions. 
  • People living in poverty and countries in the Global South are those impacted the hardest. Unequal Impact on People: Women and girls, indigenous peoples, people living in poverty and other groups experien
  • cing discrimination are particularly at a disadvantage. 
• Unequal Safeguards: The consequences of climate breakdown are felt in all parts of the world and by most people, yet only the richest people and countries have the wealth, power and influence to protect themselves. 

Also Read: Global South Summit

Key Findings of the Climate equality Report

• Annual Global Emissions: The emissions of the super-rich 1% was cancelling out the carbon savings from almost a million onshore wind turbines.
  • The richest 1% of the world’s people emitted as much carbon as the poorest 5 billion who make up 66% of the global population.
  • The emissions of the 1% are set to be over 22 times more than the safe limit (the emissions allowed if we are to stay below 1.5 degrees Celsius global warming) in 2030.
• Unequal Burden: The countries that are least responsible for global warming are suffering the worst consequences of the climate crisis and also the least able to respond and recover. 
  • Most Vulnerable Countries: Located in Africa, South Asia, Central and South America, Small Island Developing States and the Arctic.

About Oxfam International

• Origin: In 1995 a group of independent non-governmental organisations formed Oxfam International to share knowledge and resources and combine their efforts in the fight against poverty and injustice. 
• Works: Located in about 70 countries to save and protect lives in emergencies, help people rebuild their livelihoods and campaign for genuine, lasting change, keeping women’s rights at the heart of everything they do.
• Member Organisation: There are 21 member organisations of the Oxfam International confederation. 
  • They are based in: Australia, Belgium, Brazil, Canada, Colombia, Denmark, France, Germany, Great Britain, Hong Kong, Ireland, India, Italy, Mexico, Netherlands, New Zealand, Quebec, South Africa, Spain, Turkey and United States.

News Source: DTE

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• IIT-Ropar researchers discovered rare metal viz. tantalum in Sutlej which is used in electronics and semiconductors.

Rare Metal Tantalum in Sutlej River

• According to the Punjab Mining and Geology Department, the discovery of tantalum in Sutlej is not only significant for Punjab but for India, given its value in terms of its use in electronics and semi-conductors. 
• Discovery: The researchers were working on an unrelated project and found the metal in samples collected from the Sutlej river basin.
  • The experiments were aimed at studying dynamic properties of soil and rocks and how these would have a bearing in case of an earthquake.
• Quantity: Detailed studies are likely to shed more light on the quantum of the metal in the river. 

About Tantalum

• Tantalum is a hard, lustrous transition metal that is highly corrosion resistant. 
  • It has the symbol Ta and atomic number 73. 

• Importance: The annual report of the Union Ministry of Mines for 2020-21 identified it as one of the 12 critical and strategic minerals. 
• Production: Rwanda is one of the world’s largest producers of tantalum.
• Uses of Tantalum:  It is widely used in electronic components, such as capacitors and high power resistors, in the production of alloys and superalloys, in making high refractive index glass, vacuum furnace parts and orthopedic material.

About Sutlej River 

• Origin: The Satlej River originates in the Rakas lake near Mansarovar at an altitude of 4,555 m in Tibet where it is known as Langchen Khambab. 
• River Course: It flows almost parallel to the Indus for about 400 km before entering India, and comes out of a gorge at Rupar. 
  • Sutlej River passes through the Shipki La on the Himalayan ranges and enters the Punjab plains. It is an antecedent river. 
  • It meets the Beas River in Harike-Patan in Punjab, India and flows to Pakistan to join the Chenab River, creating the Panjnad River (Five Rivers Of Punjab).

• Length: The total length of the river is about 1550 km of which 529 km is in Pakistan.
• Tributaries: The Sutlej River has many tributaries, including Baspa, Beas, Nogli Khad, Soan and Spiti.
• Significance: It is a very important tributary of Indus and it feeds the canal system of the Bhakra Nangal project.
  • There are various hydroelectric power and irrigation projects over the river like the Kol Dam, Bhakra Nangal Dam, Baspa Hydroelectric Power Project, and Nathpa Jhakri Project.

Subject: IE

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• The Government recently granted approval to 27 companies, including Dell, HP, and Foxconn, under the new PLI scheme for IT hardware.

PLI Scheme for IT Hardware – Key Highlights

• Scheme coverage: The PLI scheme covers laptops, tablets, all-in-one PCs, Servers, and Ultra Small Form Factor devices.
• Manufacturing Companies: Companies including Dell, HP, Acer, Asus, Lenovo, Benq, ViewSonic, and Foxconn will now manufacture components in India under the PLI scheme. 
• Employment potential: The PLI scheme creates around 200,000 jobs. This comprises 50,000 direct employment opportunities and 150,000 indirect employment opportunities.
• Boosting IT hardware production: The IT hardware manufacturing sector in India is expected to grow from $15.52 billion in 2022 to $22.77 billion in 2027.

What is the PLI Scheme?

• Objective: To attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive.
• Reliance on import substitution: It also aims to generate more employment and cut down the country’s reliance on imports from other countries.
• Incentives for production: The PLI scheme aims to give companies incentives on incremental sales from products manufactured in domestic units. 
  • The PLI scheme provides a subsidy of 4% to 6% on the value of the additional production the firms generate.
  • PLI incentives are based on incremental sales of products manufactured domestically and are disbursed over a specified period. 
  • Incentives are not guaranteed and are released based on annual performance and meeting stipulated criteria in the respective PLI Scheme Guidelines.

What is the need for the PLI Scheme?

• Structural challenge of Indian Economy: India has faced challenges in increasing the share of the secondary sector, including manufacturing, in its GDP. 
• Limited growth: Despite the introduction of pro-business reforms under the New Economic Policies in 1991, the growth has been limited. The manufacturing sector has remained at around 17% of the GDP.

Success of PLI Scheme

• Increase in FDI: There has been an increase of 76% in Foreign Direct Investment (FDI) in the manufacturing sector in FY2022 ($21.34 bills compared to the previous FY2021 ($12.09 billion).
  • PLI Sectors that have seen an increase in FDI inflows in the last year are Drugs and Pharmaceuticals (+46 per cent), Food Processing Industries (+26 per cent) and Medical Appliances (+91 per cent).

• Smartphones: India started at the bottom of the value chain with the assembly of smartphones, and has expanded its presence to manufacturing of casing and sub-components of a smartphone. 
  • This increased presence has led India’s value addition in manufacturing of smartphones to grow from just 2% in 2015 to about 15% in 2022. 
• Localised manufacturing: The PLI Scheme is increasing the localisation of manufacturing, with major smartphone companies shifting their bases to India. 
  • As per a recent report by Bank of America, the PLI scheme may drive Apple to shift at least 18% of its global iPhone production to India by FY2025. 
  • Currently, India contributes 7% to Apple’s total smartphone production.
• Import substitution  in telecom sector:  It has been able to achieve import substitution of 60 per cent with increased self-reliance in Antennae, GPON (Gigabit Passive Optical Network) & CPE (Customer Premises Equipment).
• Drones manufacturing:  It has seen significant momentum post PLI, particularly in the growing number of promising start-ups in drone manufacturing.
  • For example, there are 333 drone startups in India, according to a 16 June note by Tracxn. These include Garuda Aerospace, General Aeronautics, Tata Advanced Systems, Adani Defence & Aerospace, Skylark Drones, and Skye Air Mobility.
• Electronics manufacturing services (EMS): Dixon Technologies, the country’s largest home-grown EMS player, has committed a cumulative production value of Rs 48,000 crore in six years.

What challenges are associated with the PLI scheme?

• Subsidy for finishing rather than value addition: Under the PLI scheme, the subsidy is paid only for finishing the product in India, not on how much value is added by manufacturing in India. 
  • Due to this, despite assembly work shifting to India, the import of components still persists, raising uncertainty about the scheme’s impact on shifting the value chain to the country.
  • For Example; If an Indian firm produces for a large Chinese company, it is likely to import most of the components from China and assemble them here. 
  • It is thus plausible that even if some assembly work shifts to India, the level of imports in the category would not come down significantly. 
• Lack of clarity b
• Complex nature of application: Since the start of the PLI scheme, only Rs 2,900 crore of incentives have been disbursed.  Outlay for incentives has been kept at `1.97 trillion.
  • The slow offtake is due to the complicated nature of filing an application where the investor has to fulfill many criteria to qualify for inclusion under the  PLI scheme and claim incentives.
• Lack of defined criteria for fund disbursal: The Empowered Committee has been established to oversee the implementation of the PLI scheme as well as disbursing funds in each sector. 
  • However, the method for granting these incentives lacks clarity. 
  • There are no standardized parameters for ministries and departments to consider when awarding these incentives.
• Lack of centralised database: The absence of a database that records information such as production growth, export figures, and the creation of new jobs complicates the evaluation process creating an administrative challenge. 
• Poor Employment generation: According to former CEO of NITI Aayog, against the projected 6 million new jobs over seven years, only 300,000 jobs (or 5 per cent of the total) have been created between 2020 and early-2023 through the various PLI schemes.
• Biases towards large firms: Most of the industries under the PLI scheme are either large or medium-sized units. The scheme’s focus on providing subsidies to selected large and medium-scale industries is a sub-optimal policy. 
  • This is not representative of the actual configuration of the Indian industrial structure, which is largely composed of Micro, Small & Medium Enterprises (MSMEs). 
  • These MSMEs not only contribute to a bulk of the manufacturing output and exports but generate much of the employment in the manufacturing sector.
• One size fits all approach: The PLI scheme lacks sector-specific considerations neglecting the diverse needs and complexities of industries, and thus, inadequately addressing the  inefficiencies and limitations of different industries.
  • For example, the pharmaceutical sector requires more resources for Research and Development (R&D), and innovation infrastructure to sustain manufacturing at the optimum level.
  • The PLI scheme for textiles rightly acknowledges the importance of boosting the production of man-made fibers (MMF) and technical textiles. 
  • However, it does not cover fabrics which are in a highly imported category and also excludes from its scope synthetic fabrics such as viscose, polyester, and nylon, which are major inputs for apparel.
• Overlooking global dynamics: The efficacy of production subsidies to galvanize sector-specific manufacturing depends on a combination of factors. Ex- Steady stock of raw materials available at competitive prices, size of the domestic market, and relationship between upstream and downstream manufacturers, among others.
  • PLI scheme extension to the container manufacturing industry neglected the prevailing dynamics in India and that of the global container manufacturing business. 
  • Around 80 per cent of the total cost of production of these containers is composed of a single raw material called Corten steel the price of which is ₹120-130 per kg in India, as compared to ₹80-90 in China.
  • The high cost of primary input makes the sector uncompetitive, limiting its ability to compete in the global market.

Way Forward

• Value addition as a condition for incentives: Incentivising local production of components and not the final product is needed for the effectiveness of the PLI scheme. 
  • In order to shift actual manufacturing to India, the condition of value-addition needs to be added to be eligible for incentives under the PLI scheme.
• Diversification of  Sectors: Expanding the scope of the PLI scheme to encompass more industries, including sunrise sectors and technology-driven fields, can further boost domestic manufacturing and innovation.
  • Diversion of funds to new sectors:  Recently the government is planning to add six new sectors in the PLI scheme including toys, bicycles, leather, and footwear. These sectors will also share the 180-billion-rupee allocation that is taken out from the scheme’s original outlay.
• Removing Investment criteria: The companies argue that the investment criteria have acted as a barrier to entry into the PLI scheme.
  • Global IT hardware firms have requested that the government remove the minimum investment requirement for eligibility to receive incentives and linking the incentives to production from existing manufacturing facilities. 
• Framework for assessment: The government should formulate a framework to assess the effectiveness of these PLI schemes. 
  • Reviewing the performance of the PLI schemes can be an effective way as it will allow the government to measure the intended and actual objectives. 
  • The government can evaluate if there is an increase in domestic manufacturing, foreign investment, number of jobs and identify the sectors that need any improvements.
• Monitoring and Evaluation: Continuous monitoring and evaluation of the scheme’s impact on job creation, export promotion, and manufacturing growth are crucial. This data can be used to make necessary adjustments and improvements.
  • Periodic reviews can help ministries make necessary policy changes/adjustments based on the changing market dynamics, trends, and global competitiveness. 
  • Public access will help stakeholders, investors, and experts to understand the criteria, application/evaluation process, and outcomes of these PLI schemes, which can help gain confidence in the initiatives and increase participation.
• Infrastructure Development: To support the manufacturing sectors, the government should invest in infrastructure development, including transportation, logistics, and energy supply. 
• • Industrial labs for reverse engineering should be encouraged to reduce the dependence on imported machinery and enhance production quality.
  • This initiative would allow India to replicate advanced machinery used in textiles, mining, metalwork, and agriculture sectors.
• Skill Development: This will ensure a trained and adaptable workforce that can meet the needs of modern manufacturing.

Conclusion:

The PLI scheme has boosted sectors like IT hardware and smartphones, but challenges like limited focus on value addition and complexity in implementation need attention for sustained success in India’s manufacturing growth.

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• This article is based on the news  “The other oil imports India needs to worry about” Which was published in the Live Mint. India’s edible oil imports have risen almost 1.5 times and more than doubled in rupee value terms during the last 10 years.

India’s Edible Oil Imports Hit Record 16.5M Tonnes

• Edible oil imports — used in cooking and frying of foods, as opposed to petroleum fuels — touched a record 16.5 million tonnes (mt) in the year ended October 2023, according to data from the Solvent Extractors’ Association of India (SEA).
• From a 10-year perspective, India’s edible oil imports have increased from 11.6 mt (valued at Rs 60,750 crore) in 2013-14 to 16.5 mt (Rs 138,424 crore) in 2022-23, with the jump pronounced in the last three years.

What types of oilseeds are commonly used in India?

• Groundnut, mustard, rapeseed, sesame, safflower, linseed, niger seed, and castor are the major traditionally cultivated oilseeds. 
• Among the non-conventional oils, rice bran oil, and cottonseed oil are the most important. In addition, oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are also a significant source of oils. 
• India’s several regions have developed specific preferences for certain oils largely depending upon the oils available in the region. 
• • For example, people in the South and West prefer groundnut oil while those in the East and North use mustard rapeseed oil.
• In India, the majority of the oilseeds are cultivated under a rainfed ecosystem (70%). Only 28% of the oilseeds area is covered under irrigation. 

What is the consumption pattern of edible oils in India?

• During the 1980s and 1990s, per capita consumption of edible oils was at 6-7 kg per person per year. India was more or less self-sufficient to cater to that need.
• The per capita consumption which was 7.3 kg/year in 1994-95 increased to 18.3 kg/year in 2014-15.
• The Indian Council for Medical Research (ICMR) recommends 30g per person per day of edible oils — that is 12 kg per person per year.

What is the current status of oilseeds in India?

• India accounts for about 15-20 percent of global oilseeds area, 6-7 percent of vegetable oils production, and 9-10 percent of the total edible oils consumption. 
• In terms of acreage, production, and economic value, oilseeds are second only to food grains.
• As per the fourth advance estimates for 2018-19, the area and production of nine oilseeds crops is 25.5 million hectares (Mha) and 32.26 million tonnes (MT), respectively.

What challenges does the edible oil sector face in India?

• Reliance on Imports: India heavily depends on imported edible oils to bridge the supply-demand gap which is often interlinked with uncertainties such as fluctuating global prices due to geopolitical conflicts(Russia-Ukraine war)
• Despite the government’s effort to decrease the edible oil dependency on the world, India will still have to import 72 lakh tonnes of edible oil at the value of ₹70,000 crore in 2030-31, which would be 23 per cent of the total requirement of 300 lakh tonnes edible oils

• Productivity and Yield: Low productivity and yield levels in oilseed cultivation pose a significant challenge. 
  • Inadequate infrastructure, lack of high-quality seeds, limited mechanization, and poor farming practices contribute to lower yields, reducing the competitiveness of domestic production.
  • For Example: If we just bring Mustard acres in India to global yield levels of 1980 kg/ha, we can reduce edible oil imports by a good 15% (within the same area) and hybrid seeds will play a key role in reversing the balance of trade. 
• Land Constraints: Limited availability of arable land and competition with other cash crops present obstacles to increasing oilseed cultivation. 
  • The expansion of oilseed acreage requires strategic planning, research and development, and farmer education to optimize production.
• Storage and Distribution: Inadequate storage facilities and supply chain inefficiencies result in post-harvest losses and higher prices for consumers. 
•  Lack of a defined procurement policy: Efforts are needed to implement the Minimum Support Price (MSP) along with a bonus for enhancing the net income of the oilseed farmers. 
  • In spite of a regular enhancement in MSP of oilseeds crops, the lack of a defined procurement policy does not encourage the farmers to take up the cultivation of these crops
• Dependency on climatic conditions: Most of the oilseeds are cultivated on marginal land and are dependent on rainfall and other climatic conditions.
  • Even before the war, global vegetable oil supplies had tightened due to a drought in South America which resulted in the reduction of soybean yield.
  • Malaysia’s palm production, too, declined due to the impacts of Typhoon Rai in December 2021. 
  • Drought-impacted Canadian rapeseed production for 2021-22 declined 35 per cent from the previous year.

Way Forward:

• Technology application and adoption: Development of new hybrids and varieties using the double haploid approach, marker-assisted breeding/selection, and other biotechnological approaches to solve viability (sunflower and soybean) and seed production issues should receive top priority amongst researchers to enhance oil production.
  • For Example: The productivity (yield) gap between improved technology and farmers’ practices ranged from 21 per cent in sesame to 149 per cent in sunflower.
• Storage and Infrastructure Development: Strengthening storage infrastructure and improving logistics and distribution networks are crucial to minimize wastage and ensure a steady supply of edible oils.
• Diversification of Oilseed Cultivation: Encouraging the cultivation of alternative oilseeds, such as palm, canola, and olive, alongside traditional crops can help reduce import dependency and increase domestic production.
• Effective implementation of MSP: The mechanism of minimum support price (MSP) though available is not in operation in major oilseeds producing states. Therefore ensuring the market intervention for effective implementation of MSP through procurement of oilseeds in case of fall in open market prices is needed.
• Tapping the Private Sector: The potential of public-private partnership (PPP) through linkages in all aspects of production, processing, and marketing needs to be harnessed. 
  • The PPP model can be useful in several aspects of the oil economy such as seed production, forward-backward linkages for processing, value addition, contract research in niche areas, contract farming and joint ventures for higher-order derivatives and specialty products, and so on.
•  Free Trade Agreement (FTA) partnerships: India must now also prioritize the development of a resilient supply chain, leveraging its Free Trade Agreement (FTA) partnerships within the Association of Southeast Asian Nations (ASEAN), specifically with Indonesia, Malaysia, and Thailand, as these countries are major exporters of palm oil. 
  • By tapping into these established trade ties, India can address its edible oil needs.

Conclusion:

India’s increasing reliance on edible oil imports calls for urgent measures such as improving productivity, and infrastructure, diversifying cultivation, and forming strategic partnerships to enhance food security and reduce dependence on global markets.

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