Evaluating India's Current Competition Law Amid Proposed Digital Framework

  • 15 May 2024

Why is it in the News?

It stated that due to the swift evolution of digital markets, the current competition law framework may not timely address the anti-competitive conduct by large digital enterprises.

Context:

  • The Committee on Digital Competition Law (CDCL), recently released its report recommending a new Digital Competition Law for India alongside the Draft Digital Competition Bill (DCB).
  • The genesis of the report goes back to the 53rd Report of the Parliamentary Standing Committee on Finance (PSC), released in December 2022.
  • The PSC Report acknowledged the unique dynamics of digital markets, noting their strong network effects and concentration.
  • It highlighted that the current competition law framework may not address anti-competitive conduct by large digital enterprises in a timely manner due to the rapid evolution of digital markets.
  • Consequently, the report emphasized the need for a new law to restrict certain leading players from engaging in specific anti-competitive activities that could distort competition.
  • Activities such as self-preferencing, bundling and tying, and deep discounting were highlighted as areas of concern.

Key Proposals of the Draft Digital Competition Bill:

Predictive regulation:

  • The dynamic nature of digital markets, characterized by constant evolution and interconnected offerings, necessitates a shift from traditional ex-post regulation to a forward-looking, preventive, and presumptive ex-ante framework.
  • The draft Bill proposes this proactive approach as the way forward, acknowledging the limitations of regulating market abuse after it has already occurred.
  • India's current Competition Act of 2002 follows an ex-post antitrust framework, which has faced criticism for its delayed response to market abuse.
  • By the time penalties are imposed, market conditions may have already changed, further disadvantaging smaller competitors.
  • To effectively navigate the complexities of the digital realm, it is crucial to implement predictive regulation that identifies potential antitrust issues and establishes clear guidelines to mitigate harm and maintain a level playing field.

Significant entities:

  • In the Bill, certain "core digital services," such as search engines and social media platforms, prompt the Competition Commission of India (CCI) to designate companies as "Systematically Significant Digital Enterprises (SSDEs)."
  • This designation hinges on diverse quantitative and qualitative criteria, encompassing turnover, user base, and market influence.
  • The quantitative thresholds for SSDE designation include:
    • A turnover in India of at least Rs 4,000 crore over the last three financial years or a global turnover of at least $30 billion.
    • A gross merchandise value in India of at least Rs 16,000 crore, or a global market capitalization of at least $75 billion.
    • Additionally, the relevant core digital service should have a minimum of 1 crore end users or 10,000 business users.
  • Entities falling outside these parameters may still be designated as SSDEs if the CCI deems their presence significant in any core digital service.
  • SSDEs are prohibited from practices such as self-preferencing, anti-steering, and restricting third-party applications.
  • Violations of these regulations may result in fines of up to 10% of their global turnover.

Associate Digital Enterprises:

  • Recognizing the potential benefits of data sharing among entities within a major technology conglomerate, the Bill proposes to identify Associate Digital Enterprises (ADEs).
  • Under this provision, if an entity within a group is identified as an associate entity, it would bear similar obligations as SSDEs, contingent upon its involvement with the core digital service provided by the primary company.
    • For instance, consider the relationship between Google Search and Google Maps, where data flow from the former informs the functionalities of the latter.
    • In this scenario, Google Maps could potentially be classified as an ADE.
  • Similarly, the extent of data exchange between Google Search and YouTube could determine the classification of the latter as an ADE, depending on the recommendations provided to users.

Key Challenges with the Digital Competition Bill:

  • Regulatory Approach: While the Digital Competition Bill (DCB) draws inspiration from international frameworks such as the UK's Digital Markets, Competition and Consumers Bill (DMCC) and the EU's Digital Markets Act, it could benefit from considering alternative approaches like Japan's "co-regulation" strategy.
    • Integrating such an approach might foster a better balance between competition and innovation.
  • Timeline: The current May 15, 2024 deadline for submitting comments may not provide sufficient time for a thorough analysis of the complex issues addressed by the DCB and its potential impacts on various stakeholders.
    • A further extension of the consultation period should be considered.
  • Inter-Regulatory Mechanisms: Overlaps between the DCB and existing sector-specific policy instruments need to be addressed.
    • Implementing an inter-regulatory consultation mechanism will ensure clarity and a harmonized approach across regulatory bodies.
  • Capacity Building: Strengthening the capacity of the Competition Commission of India (CCI) and its Digital Markets and Data Unit (DMDU) is crucial, particularly through the integration of technology sector experts.
    • The DCB should outline specific measures to bolster the Commission's capacity and resources in order to effectively navigate the rapidly evolving digital landscape.

Need to Foster Digital Competition:

  • Advocating for a Presumptive Framework: Government officials propose a shift towards a presumptive regulatory framework to address the entrenched pattern of anti-competitive behaviour by major tech companies.
    • Notably, Google faced a substantial fine of Rs 1.337 crore from the CCI for its anti-competitive practices within the Android ecosystem.
  • Concerns Over Tech Monopolies: Officials express apprehension over the dominance of a handful of US-based tech giants, which has stifled innovation over the past decade.
    • High market barriers deter new entrants from challenging the dominance of established players, perpetuating a cycle of market concentration.
  • Challenges for Emerging Players: Once a company secures a significant market share, its product often becomes the default choice for users, making it challenging for competitors to challenge its dominance.
    • Even prominent entities like Spotify have raised concerns about the restrictive policies enforced by industry giants like Apple and Google.
  • Niche Alternatives and Market Dynamics: While niche alternatives such as Signal for messaging and DuckDuckGo for search engines exist, they remain niche preferences rather than mainstream choices.
    • The proliferation of big tech companies has facilitated affordable advertising rates for smaller businesses, but it has also intensified surveillance and data tracking practices, compromising user privacy.

Conclusion

The proposed DCB marks a notable stride towards regulating India’s digital markets. However, certain concerns persist about its content and policymaking mechanism. The timeline for stakeholder consultation is inadequate, necessitating an extension to ensure comprehensive feedback. Additionally, implementing inter-regulatory mechanisms and capacity building for the CCI remains critical to effectively navigating the evolving digital landscape. Therefore, addressing these issues will be pivotal in ensuring a progressive digital competition framework in India.

Constructed Wetlands: Solution for Wastewater Treatment in India

  • 07 May 2024

Why is it in the News?

Constructed wetlands ecosystems can significantly contribute to sustainable industrial progress and the preservation of water resources.

Context:

  • Industrial growth in India has led to major environmental issues, especially in managing industrial wastewater.
  • Untreated or improperly treated industrial discharge into water sources causes severe threats to ecosystems, public health, and water security.
  • With diverse sectors like manufacturing, textiles, chemicals, and mining, pollution is substantial.
  • Traditional treatment methods often fail to address the complex pollutants in industrial wastewater, demanding a shift to comprehensive, nature-based solutions.
  • Constructed wetlands offer a promising solution, providing effective treatment and significant environmental and economic benefits.
  • These unique ecosystems combine the efficiency of natural processes with human innovation, presenting an eco-friendly alternative to conventional treatment methods.

What are Constructed Wetlands?

  • A constructed wetland is a type of sustainable wastewater treatment system that is designed to look and function as a natural wetland does.
  • Constructed wetlands are created for the purpose of treating wastewater from small, rural communities in an environmentally friendly way before allowing it to return to the water system safely.
  • They are usually made up of a primary settlement tank where wastewater from the community is collected and from that, several ponds follow which are planted with wetland plants including reeds, rushes and sedges.
    • The ponds are usually gently sloped towards a river to allow water to flow very slowly through the wetland before flowing away.
    • Any particles that have been carried in the water will settle on the bottom and the plants and natural microorganisms (e.g. bacteria, algae and fungi) in the wetlands will break down and remove certain pollutants and elements e.g. phosphorus in the water.
  • Constructed wetlands are typically divided into two categories: Subsurface flow (SSF) and surface flow (SF).
    • Subsurface flow (SSF) wetlands direct wastewater through gravel beds or porous media, promoting microbial activity that degrades organic matter.
    • In contrast, surface flow (SF) wetlands demonstrate their aesthetic appeal above the water’s surface, with gently flowing streams and lush vegetation.
  • While each design exhibits distinct advantages, both variants share a unified objective: to convert pollutants into benign compounds through natural processes.
  • Plant Selection: Plants like cattails, bulrushes, and sedges are crucial for nutrient absorption and provide habitat for beneficial bacteria.
    • Their roots oxygenate the soil and support microbial processes, aiding in pollutant removal.
  • Microbial Activity: Beneath the water's surface, a complex microbial community breaks down pollutants, converting toxic substances like ammonia into benign compounds like nitrate.
    • This microbial activity occurs naturally, without external intervention.
  • Mutual Benefit: Plants and microbes engage in a symbiotic relationship where plants absorb nutrients and contaminants are trapped, while microbes break down pollutants.
    • This mutually beneficial interaction fosters a thriving ecosystem within constructed wetlands.

Nature’s Filtration System:

  • Constructed wetlands replicate the functionalities of natural wetlands but are purposefully designed to treat wastewater efficiently.
  • They comprise shallow basins adorned with wetland vegetation such as reeds, rushes and sedges.
  • As wastewater traverses through these basins, a series of physical, chemical and biological processes unfold, effectively eliminating contaminants and enhancing water quality.

Constructed wetlands present numerous benefits:

  • Cost-Effectiveness: In contrast to traditional treatment facilities, constructed wetlands frequently offer a more economical option for construction and upkeep.
    • Their construction and maintenance entail minimal energy consumption and lower operational expenses, rendering them especially appropriate for settings with limited resources.
  • Versatility: Constructed wetlands can be customised to address diverse forms of industrial wastewater, effectively managing a broad spectrum of pollutants and contaminants.
    • These wetlands can be configured as either free-water surface or subsurface flow systems, chosen based on the particular needs of the location and the characteristics of the pollutants present.
  • Environmental benefits: In addition to their primary role in wastewater treatment, constructed wetlands offer supplementary environmental advantages.
    • They function as habitats for a wide array of plant and animal species, promoting biodiversity conservation.
    • Moreover, they contribute to ecosystem services such as flood control and carbon sequestration, further enhancing their ecological significance.
  • Scalability and adaptability: Constructed wetlands are flexible in their scalability, and able to be adjusted to fit various industrial operations and spatial limitations.
    • They are versatile, accommodating both centralised and decentralised wastewater treatment methods, thereby providing adaptability in their deployment.

Constructed Wetlands Across India:

  • India boasts several remarkable locations where constructed wetlands are utilised for wastewater treatment.
  • In Delhi's Asola Bhatti Wildlife Sanctuary, a constructed wetland system purifies sewage from adjacent settlements while providing a habitat for diverse flora and fauna, contributing to regional biodiversity conservation.
  • Chennai's Perungudi and Kodungaiyur regions have integrated constructed wetlands into their decentralised wastewater treatment strategy.
    • These wetlands treat local community sewage, reducing pollutant levels and easing pressure on centralised treatment plants.
  • The Kolkata East Wetlands in West Bengal, a Ramsar site, comprises an extensive network of natural and constructed wetlands treating Kolkata's wastewater.
    • These wetlands offer livelihoods for local fishing and agricultural communities while improving water quality.
  • Palla village in Haryana uses constructed wetlands to treat wastewater from Delhi before releasing it into the Yamuna River, improving water quality and mitigating downstream pollution.
  • Auroville, a sustainable international township in Tamil Nadu, employs decentralised wastewater treatment systems featuring constructed wetlands, demonstrating a community-driven approach to wastewater management.
  • The Sariska Tiger Reserve in Rajasthan utilises constructed wetlands for treating village wastewater.
    • This initiative addresses sanitation needs while preserving the reserve's ecological integrity and wildlife habitats.

Opportunities and Challenges in the Indian Context:

Potential for Adoption:

  • In India, the potential for utilising constructed wetlands in industrial wastewater treatment is immense.
  • With its rich biodiversity and abundance of wetland ecosystems, the country presents favourable conditions for their widespread adoption.
  • The decentralised nature of industries makes constructed wetlands an appealing option for on-site or cluster-level wastewater treatment.

Challenges to Overcome:

  • Establishment of clear policies and regulatory frameworks to encourage the adoption of constructed wetlands in industrial wastewater treatment.
  • Provision of incentives and subsidies to incentivize industries to invest in sustainable wastewater management practices.
  • Raising awareness and enhancing technical expertise among stakeholders, including industry professionals, regulators, and local communities.
  • Continuous monitoring and research efforts to evaluate the performance of constructed wetlands in diverse industrial settings, including optimizing design parameters and addressing emerging challenges such as new contaminants and the impacts of climate change.

Community Involvement:

  • Engagement of local communities in the planning, design, and management of constructed wetlands fosters a sense of ownership and ensures the long-term sustainability of these systems.
  • Active participation from community members is essential for the success of constructed wetland projects.

Conclusion

Constructed wetlands present a promising solution for combating industrial wastewater pollution in India. By addressing policy, capacity-building initiatives, and community involvement, constructed wetlands have the potential to significantly contribute to sustainable industrial progress and the preservation of water resources for future generations.

Employment Scenario in India Grim - ILO

  • 27 Mar 2024

Why is it in the News?

According to the India Employment Report 2024 by the ILO and IHD, nearly 83% of the unemployed workforce comprises youth, with the percentage of educated unemployed youth more than doubling from 35.2% in 2000 to 65.7% in 2022.

India Employment Report 2024:

  • The India Employment Report 2024, the third installment in the series of publications by the Institute for Human Development focusing on labor and employment concerns, is conducted in collaboration with the International Labour Organization (ILO).
  • This report delves into the issue of youth employment, analyzing the evolving economic, labor market, educational, and skills landscapes in India over the past twenty years.
  • It sheds light on recent trends in the Indian labor market, showcasing both positive advancements and enduring challenges, including those exacerbated by the COVID-19 pandemic.

Key Insights from the India Employment Report 2024:

  • Drawing from data sourced from National Sample Surveys and Periodic Labour Force Surveys spanning 2000 to 2022, the report offers a comprehensive analysis of employment trends and the present landscape.

Employment Trends & Current Scenario:

  • Female labor market participation, after a notable decline in previous years, exhibited accelerated growth post-2019, particularly in rural regions.
  • A noticeable trend in the Indian labor market is the gradual shift of the workforce from agriculture to non-farm sectors.
  • Self-employment and casual employment dominate India's employment landscape, with approximately 82% of the workforce engaged in the informal sector, and nearly 90% informally employed.
  • While wages for casual laborers saw modest growth from 2012 to 2022, real wages for regular workers stagnated or declined.
  • Official surveys inadequately capture migration levels in India, expected to significantly rise along with urbanization in the future, reaching around 40% migration rate and a 607 million urban population by 2030.

Challenges of Youth Employment:

  • Despite a sizable working-age population, India's youth demographic, accounting for 27% of the total population in 2021, is projected to decline to 23% by 2036.
  • Each year, approximately 7-8 million youths join the labor force, presenting an opportunity for India to capitalize on the demographic dividend.
  • Youth labor market participation has historically been lower than adults, primarily due to higher education enrollment rates.
  • Youth unemployment witnessed a notable increase from 5.7% in 2000 to 17.5% in 2019, declining to 12.1% in 2022 post-lockdowns.

Recommendations:

  • The report underscores five key policy domains for comprehensive action, focusing on both general employment enhancement and youth-specific interventions:
    • Promoting job creation
    • Enhancing employment quality
    • Addressing labor market disparities
    • Strengthening skills and active labor market policies
    • Bridging knowledge gaps on labor market dynamics and youth employment.

What is the International Labour Organization (ILO)?

  • The International Labour Organization (ILO) is a United Nations (U.N.) agency.
  • The goal of the ILO is to advance social and economic justice by setting international labor standards.
  • The ILO has 187 member states and is headquartered in Geneva, Switzerland, with approximately 40 field offices around the world.
  • The standards upheld by the ILO are broadly intended to ensure accessible, productive, and sustainable work worldwide in conditions of freedom, equity, security, and dignity.

Understanding the ILO

  • It was founded in 1919 under the League of Nations and incorporated into the U.N. as a specialized agency in 1946.
  • The ILO is the first and oldest specialized agency of the U.N.
  • The organization’s goal is to serve as a uniting force among governments, businesses, and workers.
  • It emphasizes the need for workers to enjoy conditions of freedom, equity, security, and human dignity through their employment.
  • The ILO promotes international labor standards through its field offices in Africa, Latin America, the Caribbean, the Arab States, Asia and the Pacific, and Europe and Central Asia.
  • The organization provides training on fair employment standards, offers technical cooperation for projects in partner countries, analyzes labor statistics and publishes related research, and regularly holds events and conferences to examine critical social and labor issues.
  • The ILO was awarded the Nobel Peace Prize in 1969.
    • The organization was recognized for improving fraternity and peace among nations, pursuing decent work and justice for workers, and providing technical assistance to developing nations.
  • The labor standards set forth by the ILO have been published in 190 conventions and six protocols.
  • These standards recognize the right to collective bargaining, attempt to eliminate forced or compulsory labor abolish child labor, and eliminate acts of discrimination concerning employment and occupation.
  •  As a result, the protocols and conventions of the ILO are a major contributor to international labor law.

Structure:

  • A unique feature of the ILO is its tripartite character.
  • The membership of the ILO ensures the growth of the tripartite system in the Member countries.
  • At every level in the Organization, Governments are associated with the two other social partners, namely the workers and employers.
  • All three groups are represented in almost all the deliberative organs of the ILO and share responsibility for conducting its work.
  • The work of the Conference and the Governing Body is supplemented by Regional Conferences, Regional Advisory Committees, Industrial and Analogous Committees, Committee of Experts, Panels of Consultants, Special Conference and meetings, etc.

The three organs of the ILO are:

  • International Labour Conferences: General Assembly of the ILO – Meets every year in June.
  • Governing Body: Executive Council of the ILO. Meets three times a year in March, June, and November.
  • International Labour Office:  A permanent secretariat.

India & ILO:

  • India is a founder member of the International Labour Organization, which came into existence in 1919.
  • At present the ILO has 187 Members.

About the Institute of Human Development (IHD):

  • Founded in 1998 under the patronage of the Indian Society of Labour Economics (ISLE), the Institute of Human Development (IHD) is dedicated to fostering a society that embraces an inclusive social, economic, and political framework, devoid of poverty and deprivation.
  • IHD's core mission revolves around conducting research in diverse domains such as labor and employment, livelihood, gender, health, education, and various facets of human development.
  • Through its endeavors, IHD seeks to generate knowledge and insights that contribute to the advancement of human welfare and societal well-being.

Voters must know who funds political parties. This is the right that Supreme Court has protected

  • 11 Mar 2024

Why is it in the News?

The Supreme Court of India has recently mandated the public disclosure of all pertinent information regarding corporate funding of political parties, with the State Bank of India and other entities directed to comply with the court's directive.

Context:

  • The recent landmark ruling by the Supreme Court's Constitution Bench, led by the Chief Justice of India, represents a pivotal moment in Indian democracy.
  • This ruling specifically addresses the legality of the Electoral Bond Scheme (EBS) initiated through the Finance Act of 2017.
  • Beyond its immediate implications, the verdict underscores fundamental principles such as equality, transparency, and proportionality concerning corporate contributions to election funding.

What is the Supreme Court verdict on the Electoral Bond Scheme?

  • Nullification of Electoral Bond Scheme: The Supreme Court declared the Electoral Bond Scheme (EBS) unconstitutional, citing concerns over unrestricted donations, anonymity of contributions via promissory notes, and exemption of corporate donors from disclosure obligations.
    • This underscores the imperative of transparency in corporate election financing, aligning with constitutional rights outlined in Article 14 (equality) and Article 19(1)(a) (right to information).
  • Immediate Cessation of Electoral Bonds and Disclosure Mandates: The Court mandated the immediate cessation of electoral bonds and directed all pertinent authorities to disclose relevant information dating back to April 12, 2019.
    • The State Bank of India's request for an extension was met with skepticism, prompting a contempt petition against them for non-compliance.
  • Guidelines on Legislative Passage via Money Bill Route: While the verdict didn't specifically address the Speaker's authority to classify bills as money bills, it offered guidance suggesting that not all legislative determinations qualify as financial or economic decisions.
    • This challenges the presumption of constitutionality and underscores the need for a nuanced approach in evaluating bills passed via the money bill route.

What is the Reason Behind SC's Scrutiny of Electoral Bond Scheme (EBS)?

  • Elimination of Donation Caps: The court closely examined the EBS due to its elimination of donation caps imposed on political parties, as outlined in the Finance Act 2017.
    • This removal of restrictions allowed for unrestricted inflow of funds into electoral campaigns, posing a potential threat to the democratic principle of a level playing field.
  • Anonymity of Donations via Promissory Notes: An area of concern highlighted by the court was the provision in the EBS allowing for anonymous donations to political parties through promissory notes issued by recognised banks.
    • This mechanism raised significant issues regarding transparency and accountability, as it enabled substantial financial backing to political entities without disclosing the identity of the contributors.
  • Exemption of Corporate Donors from Disclosure Requirements: The EBS faced scrutiny for exempting corporate donors from the obligation to disclose their contributions in balance sheets, a highly contentious feature.
    • This exemption created opacity surrounding corporate funding of political parties, undermining the transparency necessary for a robust democratic process.

SC’s Analysis of the Proportionality Doctrine: Its Implications on Legislative Goals and the Restriction of FR

  • Evolution of the Proportionality Doctrine: The judgment highlights the proportionality doctrine as a tool for self-discipline in constitutional judicial review, aimed at balancing governmental powers with individual rights
    • Serving as a foundational aspect of constitutional discipline, it establishes parameters applicable to all governance institutions.
  • Differentiation Between Manifest Arbitrariness and Reasonable Exercise of Power: A crucial distinction is drawn between manifest arbitrariness and the reasonable exercise of power, with the court emphasizing that restricting a fundamental right does not equate to abrogating it entirely.
    • This distinction safeguards against arbitrary exercise of governmental authority, stressing the necessity for reasonable and proportionate limitations on rights.
  • Legitimate Goals and Appropriate Means: Applying the proportionality test, the court scrutinizes the legislative objectives behind the Electoral Bond Scheme, mandating that any restriction on a fundamental right must serve a legitimate goal and utilize suitable means.
    • Questions are raised regarding the legitimacy of curbing black money as a specific ground under Article 19(2), emphasizing the need for the state to justify its actions with reasonable objectives.
  • Nexus Between Law and Stated Objectives: Introducing the concept of a reasonable nexus, the court holds that laws should demonstrate a rational connection between means employed and objectives sought to be achieved.
    • This requirement ensures that restrictions on fundamental rights are directly related to their intended purpose, avoiding arbitrary infringements.
  • Balancing Conflicting Rights: A notable development is the introduction of the double proportionality test, addressing conflicts between equal rights such as donor privacy and voter information and influence.
    • The court mandates a secondary proportionality assessment to ensure that any infringement on one right is justified and not disproportionate in impact.
  • Alternative Measures and Judicial Restraint: While advocating proportionality, the court suggests alternative measures to achieve legislative goals, such as setting up electoral trusts or imposing caps on corporate funding.
    • Additionally, it exercises judicial restraint, respecting the autonomy and powers of the executive and legislative branches.
  • Chief Justice M C Chagla's Warning: The judgment recalls Chief Justice M C Chagla's 1958 caution regarding the influential role of big business and money in democracy, highlighting a long-standing concern about corporate influence.
    • Chagla's foresight underscores the judiciary's role in preventing improper or corrupt influence, emphasizing the need to safeguard democratic values.
  • Historical Perspectives by the CJI: Chief Justice Chandrachud's historical perspective underscores the judiciary's responsibility to prevent improper influences on democracy, advocating for a proactive role in safeguarding democratic values.
    • The court's assertion aligns with the idea of acting as a check against attempts to compromise the democratic process, particularly by powerful corporate entities.

Conclusion

The Supreme Court's nullification of the Electoral Bond Scheme is a staunch defense of democratic principles. By rejecting elements that undermine transparency, equality, and accountability, the court reaffirms core democratic values. This landmark ruling signifies a crucial juncture in India's legal narrative, establishing a precedent for safeguarding democracy against opaque financial influences.

Green jobs and the problem of gender disparity

  • 06 Mar 2024

Why is it in the News?

Increasing women’s representation in green jobs will lead to benefits such as boosting a low-carbon and environmentally sustainable economy

Context:

  • The worldwide movement towards low-carbon development presents India with a distinctive opportunity for progress.
  • Nevertheless, this transition brings forth a gender disparity challenge, as men tend to transition to green jobs more rapidly than women.
  • Hence, it's crucial to delve into the gender aspects of India's green transition, highlighting the imperative for women's empowerment and gender equality in climate initiatives.

What are Green Jobs?

  • Green jobs represent a category of employment directly benefiting the planet and contributing to overall environmental well-being.
  • These roles are geared towards mitigating the negative environmental impact of various economic sectors and advancing the creation of a low-carbon economy.
  • Occupations involving renewable energy, resource conservation, and the promotion of energy-efficient practices fall under this umbrella.
  • The International Labour Organization characterizes green jobs as 'decent jobs that contribute to the preservation or restoration of the environment.'
  • They encompass diverse sectors such as manufacturing, construction, renewable energy, energy efficiency, and automobiles, historically characterized by lower female representation.

Gender Disparity in Green Jobs:

  • Globally, men tend to transition to green jobs at a faster pace than women.
  • Despite India's significant increase in renewable energy capacity by 250% between 2015 and 2021, women constitute only 11% of workers in the solar rooftop sector.
  • The Annual Survey of Industries 2019-20 reveals that women workers are predominantly concentrated in industries like apparel, textile, leather, food, and tobacco.
  • According to a Confederation of Indian Industry (CII) 2019 report, men make up 85% of the workforce in sectors such as infrastructure, transport, construction, and manufacturing.
  • A 2023 study by the Skill Council for Green Jobs indicated that 85% of green skills training was provided to men, with over 90% of women expressing belief that social norms hinder their participation in such training.
  • Restrictive social norms contributing to this disparity include perceptions that women are unsuitable for certain technical roles, safety concerns, lower representation in science, technology, engineering, and mathematics (STEM) subjects, and familial constraints.

Advantages of Women's Engagement in Green Jobs:

  • Addressing Gender Bias in the Labour Market: Increased representation of women in green jobs acts as a potent remedy to entrenched gender biases in the labor market.
    • By entering traditionally male-dominated sectors like manufacturing, construction, and renewable energy, women challenge stereotypes and reshape societal perceptions of gender roles.
  • Expanded Economic Opportunities: Women's greater involvement in green jobs opens up expanded economic avenues for them.
    • Participation in sectors such as renewable energy and energy efficiency enables women to access high-growth industries, fostering both economic growth and personal financial stability.
    • Beyond economic benefits, engagement in green jobs offers opportunities for women's advancement in technical and social spheres, exposing them to innovative technologies, sustainable practices, and networking opportunities.
  • Empowerment of Women's Agency: The transition to green jobs empowers women by granting them agency over their economic destinies.
    • In roles contributing to environmental preservation or restoration, women find alignment with a broader sense of purpose, fostering a deeper connection to their work and its societal impact.
  • Contribution to Long-Term Gender Empowerment: Participation in green jobs extends beyond immediate economic gains, contributing to the enduring empowerment of women.
    • By breaking into historically imbalanced sectors, women pave the way for future generations, inspiring young girls to pursue careers in STEM fields.
  • Promotion of Environmental Stewardship: Women's involvement in green jobs resonates with their recognized role as custodians of the environment.
    • With a nuanced understanding of the interconnectedness of social and ecological systems, women offer unique perspectives to the development and implementation of sustainable practices within green industries.

Way Forward:

  • Addressing Data Gaps: Rectifying the lack of data is imperative to understand the landscape of women's participation in green jobs in India.
    • Initiatives should focus on mapping emerging areas for green growth and collecting sex-disaggregated data on green jobs to enhance women's engagement.
    • Conducting gender analysis, gathering gender statistics through periodic labor force surveys, and mobilizing additional resources can shed light on the present and future impact of low-carbon transitions on women workers and entrepreneurs. 
  • Supporting Women Entrepreneurs: Gender-targeted financial policies and products tailored to the needs of women entrepreneurs can catalyze their entry into the green transition market.
    • Measures such as collateral-free lending, financial literacy training, and establishing supportive networks are crucial to unlock their potential.
    • Developing appropriate tools to assess creditworthiness, facilitate loan disbursement, and reduce operational costs for women-owned businesses is essential.
  • Promoting a Gender-Just Transition: A comprehensive strategy for a gender-just transition encompasses employment, social protection, reduction of care work burden, and skill development.
    • Collaboration among government, private sectors, and stakeholders is essential to harness innovation, technology, and finance for women entrepreneurs and workers.
    • Businesses must prioritize gender justice to mitigate barriers and promote equitable job opportunities for a fair transition.

Conclusion

As India navigates its green transition, prioritizing women's empowerment and gender equity in climate actions is essential for unlocking the co-benefits of a low-carbon and environmentally sustainable economy. Bridging the gender gap in green jobs requires concerted efforts to address social norms, collect gender-disaggregated data, and implement inclusive policies. This is not only an economic imperative but a crucial step towards building a socially equitable and inclusive future for all.

WTO Pressure on Indian Farm Subsidies Amid Farmer's Protest for MSP (Indian Express)

  • 15 Feb 2024

Why is it in the News?

The government might find it challenging to meet the protesting farmers' demand for a legal guarantee of (MSP) due to India's farm subsidies being scrutinised at the (WTO), especially with criticism from a group of 19 influential agricultural exporting countries.

Background:

  • After independence, our country struggled to produce enough food for its large population as the agriculture sector was in a poor state.
  • To address this challenge, we either had to import grains, which incurred significant costs, or rely on aid from other nations.
  • In 1960, the government took steps toward self-sufficiency. They introduced high-yielding seeds, promoted the use of fertilisers, and improved agricultural machinery.
  • At the same time, the government supported rice and wheat cultivation by offering farmers a Minimum Support Price (MSP).
    • This ensures that farmers receive a fair price; if they can't sell their crops for a better price in the market, the government will buy them at a favourable rate.
  • However, there's currently tension between India and the WTO regarding these subsidies.

Green Revolution

  • The Green Revolution, initiated in the 1960s, aimed to enhance agricultural productivity and bolster the nation's economy.
  • India embraced technological and industrial advancements in agriculture during this era.
  • This included the adoption of high-yield seeds, modern farming equipment, irrigation systems, pesticides, and fertilisers to transform the agricultural landscape.
  • The green revolution helped India move from a state of importing grains to a state of self-sufficiency.

Causes of Tensions Between India and the WTO:

  • India's actions in this realm have stirred discontent among other nations, who perceive India's practices as unfair trade manoeuvres.
    • The government's practice of procuring crops from farmers at low prices and subsequently exporting them at reduced rates to global markets has drawn criticism.
  • Developed countries have lodged complaints, alleging multiple instances of India breaching WTO regulations by providing subsidies amounting to 60-70% of the total crop value.
  • While the WTO permits governments to offer subsidies to farmers, it imposes restrictions, allowing developed countries to provide up to 5% and developing countries up to 10% of the total value in subsidies.

What are the WTO Regulations on Farm Subsidies?

  • The WTO regulations on farm subsidies aim to promote fair competition and prevent global trade distortion.
  • These regulations establish limits on the types and levels of subsidies that member countries can offer to their agricultural sectors.
  • Levels of Subsidies:

Green Box:

  • These subsidies have minimal impact on trade distortion.
  • They are not specific to particular products and are generally permissible under WTO rules.
  • Examples include funding for research, environmental conservation, and direct income support for farmers facing challenges such as crop loss or natural disasters.

Amber Box:

  • These subsidies promote excessive production and distort international trade.
  • Examples include input subsidies like those for seeds, fertilisers, and Minimum Support Price (MSP).
  • WTO restricts these subsidies, capping them at 5% for developed countries and 10% for developing countries.

Blue Box:

  • These subsidies, akin to Amber Box subsidies, aim to limit production.
  • Currently, only a few countries, such as Norway and Iceland, utilise these subsidies.
  • The WTO does not impose any limits on these subsidies.

Why India's Agricultural Subsidy Programs Encounter Challenges in the WTO?

  • India's agricultural subsidies face hurdles at the WTO due to the organisation's rules, which do not consider subsidies on a per-farmer basis, disadvantageous to developing countries like India.
    • For instance, although India's per-farmer subsidy is significantly lower compared to countries like the US, the WTO regulations focus on total subsidy amounts.
  • In 2019-20, India's subsidies exceeded the 10% limit relative to its total rice production, despite the per-farmer subsidy being relatively modest at $300 compared to the US's $40,000 per farmer.
  • While India is safeguarded by the 'Peace Clause' established during the WTO's Bali ministerial in 2013, certain ambiguities in the clause leave India vulnerable to disputes.
  • Consequently, new schemes must adhere to the 10% subsidy ceiling, foregoing protection under the 'Peace Clause'.

Criticism of India’s Agricultural Subsidies by Influential Agricultural Exporting Countries:

  • The Cairns Group, which includes countries like Australia, Brazil, and Canada, has raised concerns about the level of subsidisation in India’s public stockholding (PSH) program.
  • They argue that India's agricultural support measures are significantly subsidised, leading to distortions in global food prices and negatively impacting food security in other nations.
  • Last year, the group circulated a comprehensive proposal aimed at reducing trade-distorting agricultural support among WTO members, advocating for a halving of the total global entitlement/subsidies.
  • This proposal sparked tensions among developing nations, with India among those affected.
  • Essentially, the Cairns Group is advocating for India to either dismantle or scale back its Minimum Support Price (MSP) scheme, prompting India to seek stronger legal protection for its MSP program.

Upcoming Challenges for the Government of India:

  • In pursuit of greater flexibility in providing agricultural support, India is actively advocating for a permanent solution at the forthcoming inter-ministerial summit in Abu Dhabi.
  • However, the entrenched impasse on politically sensitive issues between developed and developing nations makes resolution unlikely.
  • Farmers' groups in India advocate for removing agriculture from the purview of the WTO, but this approach could present challenges and hinder India and other developing nations from regulating subsidies provided by developed countries.
  • The government faces a dilemma, as it grapples with peer pressure at the WTO while simultaneously facing demands for Minimum Support Price (MSP) from farmers.
  • The call for better MSP support isn't limited to Punjab farmers; farmers across the nation are seeking similar assurances.
  • Furthermore, if farmers in Punjab and Haryana shift away from agriculture, it could pose a threat to the country's food security.

Way Forward

  • While India currently avoids disputes on the subsidy matter at the WTO due to the non-functionality of the Dispute Settlement Body (DSB), member countries will continue to scrutinise India's adherence to subsidy limits.
  • As a result, India must advocate not only for adjustments to the formula used to calculate the food subsidy cap within the WTO but also for the inclusion of programs implemented after 2013 under the protection of the 'Peace Clause'.

Why Punjab moved SC against the expansion of BSF jurisdiction (Indian Express)

  • 24 Jan 2024

Why is it in the News?

The Supreme Court is set to hear the dispute over the expansion of the Border Security Force (BSF) jurisdiction in Punjab.

Context:

  • The Supreme Court will hear petitions filed by the Punjab government against the Centre’s notification expanding the jurisdiction of Border Security Forces (BSF) to 50 km from the international border in Punjab.
  • This comes after the Centre in 2021 decided to expand the BSF’s jurisdiction to undertake search, seizure and arrest within a larger 50-kilometre stretch from the International Border compared to the earlier limit of 15 kilometres.
  • The Centre had also decided to decrease the BSF’s area of operation in Gujarat from 80 kilometres from the border to just 50 kilometres.

What is the Border Security Force (BSF)?

  • The BSF was established on 1 December 1965 after the India-Pakistan war.
  • With a strength of about 2.65 lakh personnel, it has 192 operational battalions and deployed along the Pakistan and Bangladesh borders.
  • It is the country’s largest border force and one of the Central Armed Police Forces of the Union of India under the administrative control of the Ministry of Home Affairs (MHA).
    • The other forces include the Indo-Tibetan Border Police (ITBP), the Sashastra Seema Bal (SSB) and the Assam Rifles, Central Industrial Security Force (CISF), Central Reserve Police Force (CRPF) and National Security Guards (NSG).
  • It also contributes dedicated services to the UN peacekeeping Mission by sending a large contingent of its trained manpower every year
  • The BSF is meant to secure India’s borders with its neighbouring nations and is empowered to arrest, search and seize under a number of laws, such as the Criminal Procedure Code, the Passports Act, the Passport (Entry into India) Act, and the NDPS Act, to name a few.

Why was the BSF Jurisdiction Extended?

  • Section 139(1) of the BSF Act allows the central government, through an order, to designate an area “within the local limits of such area adjoining the borders of India” where members of the BSF can exercise powers to prevent offences under any Acts that the central government may specify.
    • Prior to the notification issued in October 2021, the BSF could exercise its powers within 15 kilometres of the border in Punjab, West Bengal and Assam.
    • The Centre expanded this to within 50 kilometres of the border.
  • The notification states that, within this larger 50-kilometre jurisdiction, the BSF can only exercise powers under the Criminal Procedure Code, the Passport (Entry into India) Act and the Passports Act.
    • For other central legislations, the 15-km limit remains.
  • This expansion was in response to the increased use of drones and Unmanned Aerial Vehicles, which have long-range capabilities and enable surveillance and the smuggling of arms and fake currency.
    • The ‘menace of cattle smuggling’ and smugglers often seek refuge outside BSF jurisdiction.
  • The centre also claimed that the notification makes the BSF jurisdiction uniform across states, as the 50-kilometre limit was already in place in Rajasthan.
    • The same notification reduced the jurisdiction in Gujarat from 80 km to 50 km.

Why Punjab Challenged This Act?

  • The state of Punjab filed an ‘original suit’ against the central government in the Supreme Court in December 2021 and alleged that the extension of the territorial jurisdiction of BSF encroaches upon its own constitutional jurisdiction.
    • The Supreme Court has ‘original jurisdiction’ in disputes between the central government and states under Article 131 of the Constitution, which means cases of this kind can only be heard for the first time at the SC “to the exclusion of any other court”.
  • The Punjab government claimed that expanding the jurisdiction of the BSF would compromise the state’s exclusive powers to legislate on matters involving the police and public order.
    • These powers are provided in Entries 1 and 2 of the State List under Article 246 of the Constitution.
    • They also claimed that the notification was issued without consulting with any of the states concerned.

How did Other States Respond?

  • The states at the time had decried the move as an “irrational decision”, a “direct attack on federalism” and an attempt to “interfere through Central agencies”.
  • Punjab and West Bengal denounced the move with the respective state Assemblies even passing resolutions against the Centre’s decision.

What are the Challenges Associated with Expanding Jurisdiction?

  • Public Order vs. Security of State: Maintaining public order and policing, signifying peace, safety, and tranquillity, falls within the purview of State Governments (Entry 1 and Entry 2 of the State list, respectively).
    • However, if a severe public disorder poses a threat to the security or defence of the State or the nation itself (Entry 1 of the Union list), it becomes a matter of concern for the Union Government as well.
  • Federalism Strain: Issuing notifications without state government concurrence may be seen as an infringement on state powers.
    • The Punjab Government argues that such notifications amount to the Centre encroaching under the pretext of security or development.
  • Impact on BSF Operations: The extension of jurisdiction to policing in the hinterland contradicts the role of a border guarding force.
    • This shift could potentially undermine the BSF's ability to fulfil its primary duty of guarding the international border.

Issues Specific to Punjab:

  • Overlapping Powers: The extended 50 km jurisdiction grants concurrent power with state police over every cognizable offence under the Indian Penal Code (IPC).
    • In a relatively small state like Punjab, this extension encompasses all major cities.
  • In other states like Gujarat and Rajasthan, where the extension might be considered, Gujarat has substantial marshland, and extending jurisdiction there might be reasonable as it doesn't encompass major urban centres.
    • Similarly, in Rajasthan, the presence of a desert reduces the impact of jurisdiction extension.

Way Ahead

  • Emphasis on State Consent: Considering the security dynamics in India's vicinity, the existing collaboration between Central armed forces and State civil authorities remains suitable.
    • Nonetheless, consulting with the State Government before deploying armed forces by the Union Government is recommended, whenever possible.
  • State Empowerment: Each State Government, in coordination with the Union Government, should devise both short-term and long-term strategies to fortify its Armed Police.
    • The aim is to achieve substantial self-reliance in managing Armed Police matters, necessitating the Central armed forces' intervention only during exceptionally severe disturbances.
  • Regional Collaboration: Neighboring States can collaboratively establish a framework for utilizing each other's Armed Police in times of necessity through consensus.
    • The Zonal Council stands out as the most apt platform for States within a zone to reach a consensus and formulate such arrangements.

PLI is good for high-end manufacturing, but industrial policy is the best bet for mass job creation (Indian Express)

  • 27 Dec 2023

Why is it in the News?

  • While India has experienced positive outcomes from liberalization efforts, it is important to acknowledge a significant shortcoming—the country did not successfully establish a robust manufacturing foundation and underwent premature de-industrialization.
  • It's crucial to recognize that no nation has achieved industrialization solely through deregulation.
  • To facilitate the structural transformation of the economy, the implementation of a well-crafted industrial policy becomes imperative, with thoughtfully selected import restrictions serving as a key component of this policy mechanism.

The Make in India (MII) Initiative and Its Goals:

  • Make in India Campaign: Officially inaugurated by Prime Minister Modi in September 2014, the Make in India campaign is a strategic effort aimed at advancing manufacturing, attracting foreign direct investment (FDI), fostering innovation, and generating employment opportunities within the nation.

Objectives of the Make in India:

  • Advancing Manufacturing: The initiative strives to elevate India's status to a global manufacturing hub by encouraging both domestic and international companies to establish manufacturing units within the country.
  • Attracting Foreign Investment: Make in India seeks to allure foreign direct investment by streamlining the business environment, simplifying regulatory norms, and providing incentives to foreign companies for investing in India's manufacturing sector.
  • Infrastructure Enhancement: Emphasizing infrastructure development, the campaign focuses on improving key elements such as roads, ports, and logistics to ensure the seamless operation of manufacturing units.
  • Skill Development: Recognizing the pivotal role of a skilled workforce in a thriving manufacturing sector, Make in India incorporates initiatives to enhance the skill sets of the Indian workforce, aligning them with the requirements of modern manufacturing.
  • Innovation and Technology: The campaign places a significant emphasis on fostering innovation and integrating modern technology into manufacturing processes.
    • This strategic approach aims to enhance efficiency and competitiveness in the manufacturing sector.

Differentiating Made in India (MII) from Previous Policies:

  • The Make in India campaign, launched in 2014, represents a departure from the self-sufficiency doctrine that India adopted in the 1970s.
    • It does not bring back memories of the licensing raj or import-substituting industries of the past.
  • While concerns have been expressed about the implementation of Make in India, particularly in certain sectors where tariff duties are raised to provide protection and incentivize the establishment of domestic industries, it is crucial to note that the campaign is fundamentally different.
    • Worries about a potential spread of protectionist tendencies to other sectors, though possibly overstated, are not entirely unfounded, especially for those who experienced the challenges of the 1970s and 1980s.
  • During those years, indiscriminate protectionism led to shortages, black markets, and widespread rent-seeking, all ostensibly in the name of the poor and distributive justice.
    • Producers who benefited from such protection actively advocated for its continuation.
    • Importantly, considering that an average mobile phone manufactured in India consists of 80-85 percent imported content (India Cellular and Electronics Association, 2022), it is empirically evident that Make in India significantly differs from the concept of self-sufficiency.
  • Given these empirical distinctions, it is imperative to move beyond baseless comparisons and recognize the unique nature of the Make in India initiative.

Evaluation of Commitments and Performance of Make in India:

  • A Sizeable Domestic Market Falls Short of Competitiveness in Exports: Make in India (MII) encompasses two related concepts, namely Made in India and Make for India, with MII serving as the foundational and overarching policy.
    • While Made for India focuses on manufacturing for the domestic market, it is essential to recognize that a substantial domestic market alone does not substitute for the crucial aspect of export competitiveness.
      • Historical examples, such as Japan, Korea, and China, underscore that export competitiveness has been a common feature of nations that have experienced significant economic growth.
  • The necessity of an Effective Make in India Operation: Made in India functions as a branding strategy, promoting manufacturers rooted in Indian factors of production—land, labor, capital, entrepreneurship, technology, etc.
    • However, the success of Made in India hinges on the effectiveness of the broader Make in India operation.
  • Alignment with National Manufacturing Policy (NMP 2011): Make in India was launched as a follow-up to prior initiatives, particularly the National Manufacturing Policy (NMP) of 2011, which aimed to cultivate a robust and competitive manufacturing sector.
    • The NMP 2011 identified challenges such as inadequate physical infrastructure, a complex regulatory environment, and insufficient availability of skilled manpower hindering manufacturing growth.
    • The policy set ambitious targets, including raising the manufacturing contribution to GDP from a stagnant 15 percent since the 1980s to at least 25 percent and generating 100 million additional jobs.
  • Dynamic Objectives of Make in India: Beyond the objectives outlined in the NMP 2011, Make in India aspires to elevate India into a global design and manufacturing export hub.
    • In essence, Make in India envisions a transformation where India becomes a manufacturing powerhouse catering to the global market.

Requirement for Supplementary Industrial Policy Measures During Ongoing PLI Implementation:

  • Diversified Articulation Beyond Production Linked Incentive (PLI): Beyond the current implementation of the Production Linked Incentive (PLI) scheme, there is a crucial need for an additional industrial policy tailored to sectors such as toys, readymade garments, and footwear.
    • A more nuanced and sector-specific articulation of industrial policies is essential to meet the unique requirements of diverse sectors.
  • Emphasis on Job Creation: Industrial policy must prioritize job creation, especially in a country abundant in labour but with average educational attainments and skills.
    • Policies should be designed to create productive job opportunities, particularly focusing on labour-intensive manufacturing and opening avenues for women in the workforce.
  • Addressing the Jobless Growth Critique: Acknowledging the criticism of jobless growth, the absence of quality jobs with social protection has contributed to this narrative.
    • Industrial policies should explicitly target mass job creation, considering both job quality and the provision of social protection.
  • Navigating the Challenges of Inclusive Policy Formulation: The government should confront the complexities of formulating industrial policies that foster mass job creation, especially in comparison to policies solely focused on exports.
    • Inclusive policies that align with the overarching goal of creating high-quality jobs and ensuring social protection are essential.
  • Treating Job Creation as the Benchmark: The effectiveness of industrial policies should be assessed based on their impact on mass job creation in India.
    • This underscores the significance of addressing concerns related to jobless growth and prioritizing policies that generate inclusive and high-quality employment opportunities.
  • Confronting Labor Market Challenges: India's labour market research indicates the prevalence of low-paying, low-productivity, and largely informal jobs in the unorganized sector.
    • With more than 99 percent of India's 63 million micro, small, and medium enterprises (MSMEs) in the unorganized sector, there is limited flexibility for creating productive jobs.
  • The assessment of how Make in India, complemented by other policies, has addressed these challenges is crucial.
    • However, the lack of frequent and short-interval official data poses a significant hurdle, necessitating attention to enhance policy efficacy through more regular and timely data collection.

Conclusion

A thorough examination of the nation's circumstances and capabilities is imperative for effective government decision-making.

  • India must formulate an industrial policy that extends the advantages of technological advancements beyond just the privileged laptop class.
  • However, it is essential to exercise caution in steering discussions on industrial policy, avoiding the pitfalls of showmanship, theoretical oversimplification, or misleading historical comparisons.
  • The global landscape demands that India adopt a substantive industrial policy, placing a genuine emphasis on the significance of manufacturing.
  • In this context, it is evident that there is no substitute for a well-considered and serious industrial policy.

Women, Marriage and Labour Market Participation (The Hindu)

  • 26 Oct 2023

Why is it in the News?

  • With the high percentage of married women in the working-age population, there is growing concern about the economic impact of their non-participation in India's workforce.
  • Women who work have better economic opportunities and more household decision-making authority.
  • The work of Nobel laureate Claudia Goldin draws attention to differences in women's employment outcomes.

What is the Labour Force Participation Rate (LFPR)?

  • The Labour Force Participation Rate (LFPR) is an important indicator in labor market studies because it represents the proportion of a country's working-age population that is either employed or actively looking for work.
  • The female labor force participation rate (FLFPR) is the percentage of working-age women who are currently employed or looking for work.

Data on Women’s Labour Participation:

  • In 2022, the global LFPR for women was 47.3%.
  • Women's LFPR decreased in developing nations;
  • For example, in India it fell from 28% in 1990 to 24% in 2022.
  • Based on data from India's NSSO Periodic Labour Force Survey (PLFS) for individuals aged 25 to 49, the following trends have been noted::
  • Compared to the Usual Principal and Subsidiary Status (UPSS) status, married women exhibit a significantly lower employment proportion under the Usual Principal Status (UPS) status.
  • Marriage has a significant impact on women's labor-force outcomes.
  • The female labor force participation rate (FLFPR) among married women between the ages of 25 and 49 decreased by 5% in 2022–2023.
  • The FLFPR for this group decreased to 45% in 2022–2023 from 50% in 2004–05.
  • Most of the FLFPR decline is concentrated in the 25–29 age range.

What is the Periodic Labour Force Survey?

  • The Periodic Labour Force Survey (PLFS) was introduced by the NSO in April 2017 in response to the growing need for labor force data to be available at more frequent intervals.
  • PLFS aims to accomplish two main goals:
  • to estimate, for the urban areas only in the CWS, the major employment and unemployment indicators (i.e., the worker population ratio, labor force participation rate, and unemployment rate) in a brief period of three months.
  • to annually estimate the indicators of employment and unemployment in both CWS and usual Status in both rural and urban areas.

What is NSSO?

  • The National Sample Survey Office (NSSO) is an organization within the Government of India's Ministry of Statistics and Programme Implementation.
  • It is in charge of carrying out extensive nationwide sample surveys on a range of socioeconomic topics.
  • The NSSO was established in 1950 to meet the data needs of post-independence India.
  • The National Sample Survey (NSS) Commission, which is composed of state officials, academics, and subject-matter experts, provides overall direction for the organization's operations.
  • Regular "rounds" of surveys are carried out by the NSSO, and they typically last for a year. These rounds are usually named after the year they begin, such as "68th round" or "75th round."
  • In 2019, the NSSO merged with the Central Statistics Office (CSO) to form the National Statistical Office (NSO) in order to streamline and consolidate the country's statistical system.

What is the reason behind the decline/low participation rate of women in labor force?

  • Movement of Production: According to economist Claudia Goldin (1994), adult women's LFPR shows a U-shaped pattern during periods of economic expansion.
  • She also mentioned that the shift in production from the family farm, small business, and home to the larger market is the reason for the initial drop in the participation rate.
  • Marriage Issues: When married women indicate a desire to enter the workforce, the problem gets worse.
  • Women's LFPR tends to decline after marriage for a variety of reasons.
  • When comparing the Usual Principal Status (UPS) to the Usual Principal and Subsidiary Status (UPSS), married women exhibit a significantly lower employment proportion, according to the PLFS data (25 to 49 years).
  • The age range of 25 to 29 is where the majority of the decline in the female LFPR is found.

What are the Problems Faced by Married Women?

  • Growing Family Obligations: Due to women's lower educational attainment and restricted mobility, there is a growing social disapproval of women working outside the home, which in turn leads to an increase in family obligations.
  • Marriage Increases Domestic Responsibilities: In addition to increasing women's domestic responsibilities, the institution of marriage places numerous social and cultural constraints on them that limit their ability to engage in the workforce.
  • Social Elements: Women's limited labor participation is also influenced by a number of other societal factors, including their location and affiliations with particular castes and religions.
  • The level of wealth in their home and the social norms that are in place regarding women working outside the home also influence how many women enter the workforce.

Other challenges faced by married women:

  • When women choose to return to the workforce after marriage, they typically show a preference for jobs that are located close to their homes and provide more flexibility.
  • Due to a number of social restrictions, women also face gender-asymmetrical professional costs.
  • It causes gender differences in decisions about fertility, age at marriage, income inequality, and premarital career choices.
  • It has been noted that women in higher social classes typically fulfill home duties in order to conform to strict social norms.
  • Women from lower socioeconomic classes are more likely to work, mainly due to financial limitations brought on by poverty.
  • When compared to their more educated counterparts, women who are illiterate are more likely to enter the workforce following marriage.
  • According to empirical research on the distribution of female labor across various industry sectors in India, the agricultural sector continues to be the most popular choice for women seeking employment.

What can be solutions to promote greater participation of married women in the labour market?

  • Offering Child Care Services: By helping women handle their caregiving duties, this program will allow them to dedicate enough time to gainful employment.
  • It is also crucial to invest in the establishment of childcare services in office buildings through cooperative models and in industrial corridors with industry associations.
  • Public crèches can be run in worksite clusters like labor nakas, close to markets, industrial areas, and densely populated low-income residential areas.
  • Additionally, the establishment of work environments that give precedence to the requirements and welfare of female employees, the supply of safe modes of transportation, and the growth of opportunities for part-time employment would function as inducers for increased female participation in the Indian labor market.

Government Initiatives to increase female labor participation rate:

The government has targeted the issue by taking various prominent steps to increase the female labour participation rate which includes:

  • Enactment of the Maternity Benefit (Amendment) Act, 2017 which provides for enhancement in paid maternity leave from 12 weeks to 26 weeks.
  • Provisions for mandatory crèche facility in establishments having 50 or more employees.
  • Issue of an advisory to the States under the Factories Act, 1948 for permitting women workers in the night shifts with adequate safety measures.

Conclusion

  • Married women's lower participation in the labor force and their propensity to leave the workforce after marriage are caused by a variety of factors.
  • In light of this, it is critical to consider appropriate strategies for advancing women's empowerment during this period of rapid economic expansion.
  • Empowering women in the workforce is not only economically necessary, but also a crucial first step toward achieving gender equality and inclusive economic growth.

Strategic Partnership Council (SPC) Meeting Between India & Saudi Arabia (Indian Express)

  • 12 Sep 2023

Why it is in News?

Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud and Prime Minister Narendra Modi held extensive talks on Monday, agreeing to expand trade and security ties. The leaders also co-chaired the first summit-level meeting of the India-Saudi Arabia Strategic Partnership Council (SPC).

What is India-Saudi Arabia Strategic Partnership Council (SPC)?

  • The agreement to create the SPC was inked during Prime Minister Modi's official visit to Saudi Arabia in October 2019. This partnership was conceived to establish a top-tier council to guide and enhance the Indo-Saudi relationship.
  • Key Pillars:
  • The SPC operates through two primary pillars:
  • Committee on Political, Security, Social, and Cultural Cooperation.
  • Committee on Economy and Investments.
  • These sub-committees engage at four distinct levels:
  • Summit Level (Involving the Prime Minister and Crown Prince)
  • Ministerial Level
  • Senior Officials' Meetings
  • Joint Working Groups (JWGs)

Key Highlights From the Recent Meeting Between Saudi's Crown Prince Mohammed bin Salman and PM Modi:

  • Notable Developments:
  • Advancing the $50-billion West Coast refinery project, a massive undertaking with a capacity of 60 million tonnes.
  • It will be a refinery and petrochemical complex situated on the Maharashtra coast.
  • Identifying energy, defense, semiconductors, and space as sectors where cooperation will be intensified.
  • Recognizing various other areas of collaboration, including security, education, technology, transportation, healthcare, tourism, and culture.
  • Expanding the Relationship:
  • Both parties agreed to transform their existing hydrocarbon relationship into a more comprehensive energy partnership.
  • Signed Agreements:
  • Additionally, eight agreements were formally signed to enhance cooperation in various domains, encompassing digitization and investment.

India-Saudi Arabia Bilateral Relations:

  • India and Saudi Arabia share warm and amicable bilateral relations that are a testament to their deep-rooted economic and socio-cultural connections spanning centuries.
  • These relations were formalized with the establishment of diplomatic ties in 1947, and since then, both nations have engaged in high-level exchanges and visits.

The Economic Cooperation Between India and Saudi Arabia:

Trade:

  • In the fiscal year 2022-23, the bilateral trade volume between India and Saudi Arabia surged to a historic high of $52.75 billion.
  • India's exports to Saudi Arabia saw significant growth, reaching $10.7 billion, compared to $8.8 billion in 2021-22.
  • India stands as the second-largest trading partner for Saudi Arabia, while Saudi Arabia ranks as the fourth-largest trading partner for India.

Investment:

  • Indian investments in the Kingdom of Saudi Arabia have now reached approximately USD 2 billion.
  • Saudi Arabia, on the other hand, is recognized as the 18th largest investor in India, with investments amounting to $3.14 billion as of March 2022.
  • During the visit of the Saudi Crown Prince to India in February 2019, he made a significant announcement of the Kingdom's plans to invest a substantial sum of US $100 billion across various sectors in India.

Energy Partnership Between India and Saudi Arabia:

Vital Energy Collaboration:

  • Energy collaboration stands as a foundational element of the bilateral relationship between India and Saudi Arabia, playing a crucial role in ensuring India's energy security.
  • Saudi Arabia maintains its position as one of India's key partners in the sourcing of crude oil and petroleum products.

Crucial Import Destination:

  • During the fiscal year 2022-23, Saudi Arabia retained its status as India's third-largest supplier of crude oil and petroleum products.
  • India imported a substantial 39.5 million metric tonnes (MMT) of crude oil from Saudi Arabia in FY23, constituting 16.7% of its total crude oil imports.

LPG Contribution:

  • India also benefitted from Saudi Arabia as a significant source of LPG (liquefied petroleum gas) imports, with 7.85 MMT of LPG imported from Saudi Arabia in FY23. This accounted for 11.2% of India's total petroleum product imports during that fiscal year.

Defense Partnership Between India and Saudi Arabia:

High-Level Engagement:

  • In a significant diplomatic move, General Manoj Mukund Naravane, the Chief of Naval Staff of India, paid a landmark visit to Saudi Arabia in December 2020.

Naval Exercises:

  • The two nations have successfully conducted two editions of their bilateral naval exercise titled 'Al Mohed al Hindi.'

Collaborative Defense Endeavors:

  • India and Saudi Arabia are actively engaged in fostering collaboration within the realm of defense industries and capacity building, further strengthening their partnership in the defense domain.

Indian Community Living in Saudi Arabia:

  • Prominent Expatriate Community:
  • The Indian community in Saudi Arabia is a substantial one, numbering around 2.2 million people.
  • This makes it the largest expatriate community within the Kingdom.
  • Economic Contribution:
  • Indians constitute approximately 7% of Saudi Arabia's total population, and they play a significant role in driving the country's economic growth.
  • Migration Process Enhancement:
  • During Prime Minister Modi's visit to Riyadh in October 2019, a noteworthy development was announced. India's e-Migrate system would be integrated with Saudi Arabia's e-Thawtheeq system, streamlining the migration process for workers.
  • Hajj Pilgrimage:
  • The annual Hajj pilgrimage holds immense importance in the Indo-Saudi bilateral relationship.
  • During the visit of the Saudi Crown Prince to New Delhi in February 2019, it was revealed that India's Hajj quota would be expanded by 24,975 in 2019, allowing 200,000 Indians to partake in the Hajj pilgrimage in August 2019.

Recent Diplomatic Engagements:

  • In 2019, the then Indian Prime Minister, Manmohan Singh, undertook a significant visit to Saudi Arabia, culminating in the signing of the 'Riyadh Declaration.'
  • This landmark agreement elevated the bilateral relationship between the two nations to the status of a 'Strategic Partnership.'
  • During Prime Minister Modi's visit to Saudi Arabia in 2016, King Salman bestowed upon him the Kingdom's highest civilian honor.
  • In February 2019, Crown Prince Salman of Saudi Arabia visited India and announced the Kingdom's decision to invest approximately US$100 billion in India.

Later in the same year, during Prime Minister Modi's visit to Riyadh, the two nations signed the Strategic Partnership Council (SPC) Agreement, marking a pivotal moment in their diplomatic relations.

Curbs on Rice Exports (The Hindu)

  • 31 Aug 2023

Why in the News?

In a move to check domestic rice prices and ensure domestic food security, the Indian government has prohibited the export of white rice, levied a 20% export duty on par-boiled rice till October 15, and permitted the export of Basmati rice for contracts with value of $1,200 a tonne or above.

India's Rice Exports:

  • India is the biggest rice seller in the whole world, making up 45% of the global rice market.
  • In the months of April and May in 2023, the amount of rice sent out of the country was 21.1% more compared to the same time in the previous financial year.
  • Just in May, the export of Basmati rice was 10.86% higher than how much was exported in May of 2022.
  • The amount of non-Basmati rice being shipped out has been increasing for three years, and in the year 2022-2023, more Basmati rice was exported than the year before.
  • According to the information the government provided, until August 17 this year, the total rice exports (not including broken rice) were 15% more, reaching 7.3 million tonnes.
  • This is compared to 6.3 million tonnes during the same time last year.
  • Thailand thinks it will produce almost 25% less rice in 2023-2024; Myanmar has stopped sending out raw rice; and it seems like there might be less rice available in Iraq and Iran too.

Rice Production in Current Season:

  • The Department of Agriculture and Farmers Welfare has reported that during the Rabi season of 2022-2023, the amount of rice produced was 13.8% lower, reaching 158.95 lakh tonnes.
  • This is compared to 184.71 lakh tonnes in the Rabi season of 2021-2022.
  • For the Kharif season, the data about planting shows that rice has been planted on 384.05 lakh hectares this year as of August 25.
  • This is more compared to 367.83 lakh hectares during the same time last year.
  • People in the trading and rice milling business are saying that the new season's rice will start arriving after the first week of September.
  • They also mentioned that the effects of El Nino might have some impact on how much rice arrives.
  • Rice prices were ?27 per kilogram at this time last year, but now they've gone up to ?33 per kilogram.

Challenges in India’s Rice Export Strategy:

  • India managed to export a record-breaking 21 million metric tonnes (MMT) of rice in the fiscal year 2021-22 (FY22), which made up around 41 percent of the global exports in a market of about 51.3 MMT.
  • Exporting such large amounts of rice led to a drop in global rice prices by approximately 23 percent in March (compared to the previous year), while other cereal prices like wheat and maize were increasing significantly in the global market. In fact, in FY22, the price for each tonne of common rice exported was only $354, which was lower than the Minimum Support Price (MSP) for rice.
  • Buying below MSP or issues with distribution which means that either rice exporters were buying rice (paddy) from farmers and millers at prices below the MSP, or a significant portion of rice provided for free under the PM Garib Kalyan Ann Yojana (PMGKAY) was being sent for export at prices below the MSP.
  • Certain states, particularly Punjab, provide free electricity for irrigation, and highly subsidized fertilizers, especially urea, which gives Indian rice an artificial competitive edge in global markets.

What Can Indian Farmers and Consumers Anticipate?

  • The government has raised the Minimum Support Price (MSP) for rice, and rice millers are now buying paddy at a price higher than the MSP.
  • Because of this, farmers can expect that prices won't go down.
  • Limits on exports will make sure that rice prices in the market don't suddenly go up by a lot.
  • For people in India who are buying rice, there's a small increase in prices right now, but over time, there will still be enough rice available and prices aren't predicted to go way up.

Actions Taken by the Central Government:

  • To control the prices of rice in the country and make sure there's enough food for people here, the Union government has stopped exporting regular (non-basmati) white rice.
  • They have also put a 20% tax on exporting partially cooked rice until October 15.
  • For Basmati rice, the government says it can be exported if the contract's value is $1,200 per tonne or more.
  • Since last September, exporting broken rice has not been allowed.
  • However, in some cases, the government can allow exporting broken rice if other countries need it for their food security and if their government asks for it.

Opinions of Rice Exporters:

  • Indian par-boiled rice is still competitively priced in the global market, even with the 20% duty added.
  • When the world rice market is strong, it can handle higher prices as well. Overall, there's a lot of demand from other countries.
  • Countries like Indonesia, which usually sell rice, are now buying (raw rice) from other places.
  • According to rice exporters, instead of dividing rice into Basmati and non-Basmati, the government should think about categorizing it as regular rice and special rice for making export decisions.
  • Around 12 types of rice have something called Geographical Indication (GI) recognition, and these should be kept separate from general market rules.
  • For Basmati rice, the government could have let exports continue or set a minimum value for exports at $900 per tonne.
  • Basmati rice is unique, and there will be new rice arriving soon, so there's no real need for restrictions.
  • Since Indian rice quality is good and supply is steady, other countries will want it even more in the future.