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Feb 16, 2022

MIGRATION OF FOREIGN COMPANIES TO INDIA Measures taken by the Government including FDI Policy reforms have resulted in increased FDI inflows in the country year after year. India registered its highest ever annual FDI inflow of US$ 81.97 billion (provisional figures) in the financial year 2020-21 despite the COVID related disruptions.
  • These trends in India's FDI are an endorsement of its status as a preferred investment destination amongst global investors. In the last seven financial years (2014-21), India has received FDI inflow worth US$ 440.27 billion which is nearly 58 percent of the FDI reported in the last 21 years (US$ 763.83 billion). This indicates increasing inclination of global companies to set up their business in India.
Why migration of Foreign Companies to India?
  • India’s economic growth has been exceptional in recent years.
  • Buoyed by a robust democracy, key structural reforms, private consumption, and a rise in government investment, India has achieved a high macroeconomic stability ranking in the World Economic Forum’s (WEF) Global Competitiveness Index.
  • In a bid to attract foreign investment, the Indian government has eased foreign direct investment (FDI) restrictions, such as raising foreign equity caps for insurance and defense, leading to significant progress in terms of improving its overall business environment.
  • New business reforms have also earned India a place among the world’s top ten improvers for the third consecutive year according to the same study.
  • India has become a powerhouse in terms of technology innovation.
  • High-tech companies in sectors such as telecommunications, information technology, pharmaceuticals, textiles, and engineering are equal in their sophistication and prominence to international counterparts.
  • Indeed, India is now recognized as a major force in global technology innovation alongside the United States and China.
  • India has a large and healthy middle class, making it an attractive consumer market.
  • Indeed, India is the world’s largest market for manufactured goods and services, and ranks number 3 out of 141 economies for market size according to the WEF’s Global Competitiveness Index.
Risk faced by Foreign Companies in India for investment
  • India still lags behind many larger nations in critical metrics such as starting a business, enforcing contracts and registering property.
  • There are indications of a rise in protectionist policies.
  • In fact, India has increased import tariffs to reduce the market for cheap goods from overseas and support small- and medium-sized manufacturers within its own borders.
  • The sheer size and fragmented nature of the Indian market can also present a challenge for investors and businesses.
  • Indian states are often compared to individual nations, given their size and diversity in language, culture, talent and infrastructure. This creates a considerable variance in business landscapes.
  • Additionally, regulations, rules, and policies can vary from state to state, as can subjective interpretations of prevailing laws.
  • Massive population growth, growing urbanization, and rising incomes put pressure on the government to improve the country’s infrastructure.
  • It's important to understand intellectual property issues within India. Bureaucratic delays and a general lack of transparency are both areas of concern in terms of protecting sensitive intellectual assets.
Advantages enjoyed by India after immigration
  • Job vacancies and skills gaps can be filled.
  • Economic growth can be sustained.
  • The pension gap can be filled by the contributions of new young workers and they also pay taxes.
  • Infrastructural development in the country.
  • Technological advancement brought by foreign countries.
Steps taken by Government of India to attract Foreign Companies
  • The Make in India programme was launched on 25th September, 2014 with aim of facilitating enhanced investment, foster innovation, build best in class infrastructure, and make India a hub for manufacturing, design, and innovation.
  • Measures have been taken to improve the country’s investment climate, as a result of which India jumped to 63rd place in World Bank’s Ease of Doing Business [EODB] ranking as per World Bank’s Doing Business Report (DBR) 2020 from a rank of 142 in 2014.
  • Department for Promotion of Industry and Internal Trade (DPIIT), in consultation with the State Governments, has also started a comprehensive reform exercise in States and UTs under Business Reforms Action Plan (BRAP).
  • An Empowered Group of Secretaries has been constituted to fast-track investments in the country.
  • Similarly, Project Development Cells (PDCs) have been set up across Central Government Ministries/Departments to handhold investors and spur sectoral and economic growth.
  • Further, a GIS-enabled India Industrial Land Bank has been launched to help investors identify their preferred location for investment.
  • National Single Window System (NSWS) has also been soft launched in September, 2021 to facilitate clearances for investors.
  • Keeping in view India’s vision of becoming ‘Atmanirbhar’ and to enhance India’s manufacturing capabilities and exports, an outlay of INR 1.97 lakh crore (over US$ 26 billion) has been announced in Union Budget 2021-22 for Production Linked Incentives (PLI) schemes for 14 key sectors of manufacturing starting from fiscal year (FY) 2021-22.
  • With the announcement of PLI Schemes, significant creation of production, employment, and economic growth is expected over the next 5 years or more.
  • Government has taken various other steps in addition to ongoing schemes to boost domestic and foreign investments in India. These include measures to reduce compliance burden for industry, opportunities under:
    • National Infrastructure Pipeline,
    • Reduction in Corporate Tax,
    • Easing liquidity problems of NBFCs and Banks,
    • Policy measures to boost domestic manufacturing through Public Procurement Orders,
    • Phased Manufacturing Programme (PMP), etc.
Road Ahead:
  • It is clear that immigration can be beneficial for migrants, but only if their rights are protected properly. It can also be economically beneficial for both countries of origin and host countries; however, with present economic and trading structures it is the rich and powerful countries that benefit most.
  • Migration brings social and cultural pressures that need to be taken into account in planning for future services. Migration also has the potential for bringing peoples together culturally but friction occurs if efforts are not made to dispel negative myths held by local people. It is also essential to provide good information about the local way of life to newcomers and ensure opportunities for people to mix and integrate. Where the economic preconditions exist, migration is inevitable.
Additional Information Foreign Direct Investment vs Foreign Portfolio Investment Foreign Direct Investment (FDI):
  • Foreign investors take the FDI route when they have a long-term interest in mind.
  • In FDI, an investor usually acquires foreign business assets, establishing ownership or controlling interest in a company.
  • With FDI, foreign companies are directly involved with day-to-day operations in the other country. This means they are not just bringing money with them, but also knowledge, skills and technology.
  • According to the rules prescribed by the Indian government, FDI can either come via automatic route or via government route.
  • FDIs own controlling stake in a company by investing in its physical assets.
  • FDI is a more stable long-term investment.
Foreign Portfolio Investment (FPI):
  • Foreign Portfolio Investment or FPI is meant for short-term profit booking.
  • Through this route, foreign investors put capital into financial assets, such as stocks and bonds.
  • FPI involves the purchase of securities that can be easily bought or sold.
  • Such an investment is made with the aim of making a short-term financial gain and not for obtaining significant control over managerial operations of the enterprise.
  • FPIs invest only in financial assets.
  • FPI money is usually considered ‘hot money’.
  • FDI and FPI are both important sources of funding for most economies. However, FDI is preferred by most countries for attracting foreign investment, since it is much more stable than FPI and signals long-lasting commitment.
  • FPIs, on the other hand, have a higher degree of volatility because of their tendency to flee at the first signs of trouble in an economy. These massive portfolio flows can exacerbate economic problems during periods of uncertainty.
PRODUCT LINKED INCENTIVE (PLI) SCHEME FOR FOOD PROCESSING INDUSTRY (FPI) Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has been formulated by the Ministry of Food Processing Industries as part of “Aatma Nirbhar Bharat Abhiyaan” for enhancing India's manufacturing capabilities and enhancing exports with an outlay of Rs 10,900 crore. What is an FPI?
  • Food processing, any of a variety of operations by which raw foodstuffs are made suitable for consumption, cooking, or storage.
  • Food processing generally includes the basic preparation of foods, the alteration of a food product into another form (as in making preserves from fruit), and preservation and packaging techniques.
  • A number of food-processing innovations have even resulted in new products, such as concentrated fruit juices, freeze-dried coffee, and instant foods.
  • Foods and food supplements have also been processed from such hitherto untapped sources as oilseeds (chiefly protein-rich soybeans and cottonseeds); mutant varieties of crops; leaves, grasses, and aquatic plants; and highly nutritious fish meal and concentrates.
Why Food Processing?
  • Enhance farmer's income by better utilization and value addition of agricultural produce.
  • Minimize wastage at all stages in the food processing chain by the development of infrastructure for storage, transportation and processing of agro-food produce;
  • Introduce modern technology into the food processing industries from both domestic and external sources;
  • Encourage R&D in food processing for product and process development and improved packaging;
  • Provide policy support, and support for the creation of Infrastructure, capacity expansion/ Upgradation and other supportive measures form the growth of these sectors;
What are the advantages of FPI?
  • Increasing availability and convenience.
  • Use-by dates on perishable foods that show us how long it is safe to eat, and labelled storage guidance to help us keep our food correctly.
  • Increased choice allows us to have a more varied diet, which is more likely to provide all the nutrients required for good health and ensuring food safety.
  • We fortify and enrich foods to add micronutrients, like trace minerals and vitamins. The main aim is to address dietary deficiencies.
What are the disadvantages of FPI?
  • Food processing removes some of the nutrients, vitamins and Fiber present in the food.
  • Processed foods are obtained from laboratories and not nature. The foods are genetically modified and may cause gastrointestinal disorders, infertility and can damage your organs.
  • The trans fats and sugar present in processed items can cause inflammation, an unhealthy condition that leads to asthma.
  • Tightly regulated labelling systems that have exceeded their sell-by dates result in wasting large amounts of food that is still safe.
  • There are significant environmental costs associated with producing and disposing of plastic and routine transportation of foods by air.
Recommendations for making India self-reliant in FPIs?
  • The problem of wastage can be addressed by charities and by some governments
  • France has become the first country to prohibit supermarkets from throwing away unsold food, enabling them to donate it to charities instead.
  • A storage room where the concentrations of oxygen, carbon dioxide and nitrogen, as well as the temperature and the humidity are regulated to maintain the quality and safety of food products.
  • Make processed food with varied diet include in Mid-day Meal scheme and eliminate child malnourishment.
  • Help women with processed food to eliminate issues of anaemia.
  • It will help India to achieve its goal of 5 trillion-dollar economy as well as it will help to improve its ranking in Global Hunger Index.
Road Ahead:
  • India’s food processing sector is one of the largest in the world and its output is expected to reach $535 bn by 2025-26. The Food Processing sector in India has a quintessential role in linking Indian farmers to consumers in the domestic and international markets. The Ministry of Food Processing Industries (MoFPI) is making every effort to encourage investments across the value chain.
  • Going forward, the adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP) by the food processing industry offers several benefits.
Additional information PLI Scheme
  • The government announced the PLI scheme for the food processing sector with an outlay of Rs. 10,900 crores.
  • The incentive is linked to local production and sale of products.
  • The scheme was launched to support the creation of global food manufacturing champions commensurate with India’s natural resource endowment and to support Indian brands of food products in international markets.
  • The scheme has three broad components.
    • The first component relates to incentivizing manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) including millet-based foods, Processed Fruits & Vegetables, Marine Products and Mozzarella Cheese.
    • The second component is intended for incentivizing Innovative/ Organic products of SMEs across all the above four food product segments including Free Range - Eggs, Poultry Meat and Egg Products.
    • The third component relates to support for branding and marketing abroad to incentivize the emergence of strong Indian brands.
SPREADING AWARENESS ON ORGANIC FOOD Government of India (GOI) has been promoting Organic farming in the country through dedicated schemes of Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development in North East Region (MOVCDNER) since 2015.
  • In addition, organic farming is also supported under Rastriya Krishi Vikas Yojana (RKVY), Mission for Integrated Development of Horticulture (MIDH) and National Project on Organic Farming (NPOF), Network Project on Organic Farming under Indian Council of Agricultural Research (ICAR).
What is organic food?
  • Organic foods are safe, healthy and free from chemicals and pesticides.
  • Organic food, fresh or processed food produced by organic farming methods.
  • Organic food is grown without the use of synthetic chemicals, such as human-made pesticides and fertilizers, and does not contain genetically modified organisms (GMOs).
  • Organic foods include fresh produce, meats, and dairy products as well as processed foods such as crackers, drinks, and frozen meals.
What are the advantages of organic food?
  • No pesticides, antibiotics, or hormones make it more sustainable compared to conventional food.
  • Since it is more nutrient-rich, it brings positive human health effects.
  • Generally fresher in taste.
  • Better for the environment. Less soil pollution and water pollution.
  • Animals are treated better in organic farming.
  • Avoidance of genetically modified organisms (GMOs) and hormonal treatments.
What are the disadvantages of organic food?
  • May have a shorter shelf-life due to fewer preservation.
  • Health risks if production chain is not optimized.
  • Many different organic food labels may confuse customers.
  • Limited choice of products leads to limited acceptance in the general public.
  • Production of organic food implies plenty of work.
  • Due to higher costs, it may not be suitable to feed billions of people as it may contribute to poverty.
  • Quality of organic food greatly varies across producers.
Road Ahead:
  • Organic food has become quite popular over the past decade and will continue to play an important role in the lives of many people.
  • Organic foods have many important advantages. However, there are also some issues related to organic food products that our governments have to address in order to supply humanity with healthy food while solving the problems related to organic farming at the same time.
  • To be an inspiring, trustworthy and innovative global leader in providing genuine organic products and solutions for Healthy Conscious Living. To be a vehicle of consciousness in the global market by creating a holistic, sustainable business model that inspires, promotes and supports true wellness.
Additional information Paramparagat Krishi Vikas Yojana
  • "Paramparagat Krishi Vikas Yojna (PKVY)" a sub-component of Soil Health Management (SHM) scheme under National Mission of Sustainable Agriculture (NMSA) aims at development of sustainable models of organic farming through a mix of traditional wisdom and modern science to ensure long term soil fertility build-up, resource conservation and helps in climate change adaptation and mitigation.
  • It primarily aims to increase soil fertility and thereby helps in production of healthy food through organic practices without the use of agro-chemicals.
  • PKVY also aims at empowering farmers through institutional development through clusters approach not only in farm practice management, input production, quality assurance but also in value addition and direct marketing through innovative means.
  • Participatory Guarantee System under PGS-India programme will be the key approach for quality assurances under the PKVY.
  • The farmers will have option to adopt any form of organic farming in compliance of PGS-India standards. While adopting a system it must be ensured that the system adopted is compatible with the area and crop and assures optimum yield and provides adequate measures to manage nutrients, pests and diseases.
Mission Organic Value Chain Development in North East Region (MOVCDNER)
  • Mission Organic Value Chain Development for North East Region (MOVCD-NER) is a Central Sector Scheme, a sub-mission under National Mission for Sustainable Agriculture (NMSA), launched by the Ministry of Agriculture and Farmers Welfare for implementation in the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura, during the 12th plan period.
  •  The scheme aims to development of certified organic production in a value chain mode to link growers with consumers and to support the development of entire value chain starting from inputs, seeds, certification, to the creation of facilities for collection, aggregation, processing, marketing and brand building initiative.
INDIA’s 2030 NATIONAL RAIL PLAN EYES A GREENER AND CHEAPER NETWORK Indian Railways have prepared a National Rail Plan (NRP) for India – 2030. The Plan is to create a ‘future ready’ Railway system by 2030. About NRP The objectives of NRP: 
  • The NRP is aimed to formulate strategies based on both operational capacities and commercial policy initiatives to increase modal share of the Railways in freight to 45%.
  • The objective of the Plan is to create capacity ahead of demand, which in turn would also cater to future growth in demand right up to 2050 and also increase the modal share of Railways to 45% in freight traffic and to continue to sustain it.
  • To achieve this objective all possible financial models including Public Private Partnership (PPP) are being considered.
  • NRP is aimed to reform Railways to make it more efficient, greener and modern which will translate into cheaper, safer and assured mode of transport to the common man be it in passenger or freight segment.
Main features of the National Rail Plan have been identified: -
  • Formulate strategies based on both operational capacities and commercial policy initiatives to increase modal share of the Railways in freight to 45%.
  • Reduce transit time of freight substantially by increasing average speed of freight trains to 50Kmph.
  • As part of the National Rail Plan, Vision 2024 has been launched for accelerated implementation of certain critical projects by 2024 such as
    • 100% electrification,
    • multi-tracking of congested routes,
    • upgradation of speed to 160 kmph on Delhi-Howrah and Delhi-Mumbai routes,
    • upgradation of speed to 130kmph on all other Golden Quadrilateral-Golden Diagonal (GQ/GD) routes and elimination of all Level Crossings on all GQ/GD routes.
  • Identify new Dedicated Freight Corridors and new High Speed Rail Corridors.
  • Sustained involvement of the Private Sector in areas like operations and ownership of rolling stock, development of freight and passenger terminals, development/operations of track infrastructure etc.
Advantages of NRP
  • It will help to reduce emissions via adopting greener technologies.
  • It will provide employment opportunities.
  • It will help India to achieve 5 trillion-dollar economy.
  • It will help India to stand on the terms of Paris agreement.
  • It will help to connect the areas which are still disconnected from such public transport.
  • Through the development of Direct Freight Corridors, the railway will be more able to fulfill its promises of efficiency and timeliness as well as bring down logistics costs.
Road Ahead:
  • In effect the National Rail Plan envisages an initial surge in capital investment right up to 2030 to create capacity ahead of demand and increase the modal share of the Railways in freight by 45%.
  • Post 2030, the revenue surplus generated would be adequate to finance future capital investment and also take the burden of debt service ratio of the capital already invested. Exchequer funding of Rail projects would not be required.
COVID-19: INDIA TRIPS ON ITS PATENT WAIVER PROPOSAL Reports from Brussels speak of secret parleys in Geneva involving the European Union, US, India and South Africa at a senior political level, to thrash out a deal on the proposal that has been moribund since October 2020.
  • The waiver will allow generic manufacturers to override IPRs on medical products, especially vaccines and make these available sufficiently across geographic locations at a much cheaper cost.
  • This has become an imperative since Big Pharma, in particular Pfizer-BioNTech and Moderna, has been supplying its costly vaccines to rich nations and leaving the populations of poor countries in Africa, Asia and Latin America majorly unprotected.
Patent:
  • A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. To get a patent, technical information about the invention must be disclosed to the public in a patent application.
  • The protection is granted for a limited period, generally 20 years from the filing date of the application.
  • In principle, the patent owner has the exclusive right to prevent or stop others from commercially exploiting the patented invention. In other words, patent protection means that the invention cannot be commercially made, used, distributed, imported or sold by others without the patent owner's consent.
  • Patents are territorial rights. In general, exclusive rights are only applicable in the country or region in which a patent has been filed and granted, in accordance with the law of that country or region.
WIPO play with regards to patents?
  • WIPO works to develop a balanced and effective international intellectual property (IP) system, a key part of which is dedicated to patents.
  • WIPO’s member states collaborate in various areas, including on agreeing the treaties and conventions that underpin the international IP system and that make the global exchange of creativity and innovation possible.
  • The IP services that WIPO offers, such as the facilitation of international patent protection under the PCT System, complement services available at the national and/or regional level.
  • It’s important to remember that WIPO does not actually grant patents per se; the grant or refusal of a patent still rests with the relevant national or regional patent office.
TRIPS
  • The TRIPS Agreement, which came into effect on 1 January 1995, is to date the most comprehensive multilateral agreement on intellectual property.
  • The areas of intellectual property that it covers are:
    • copyright and related rights;
    • trademarks including service marks;
    • geographical indications including appellations of origin;
    • industrial designs;
    • patents including the protection of new varieties of plants;
    • the layout-designs of integrated circuits; and
    • undisclosed information including trade secrets and test data.
  • The three main features of the Agreement are:
    • the Agreement sets out the minimum standards of protection to be provided by each Member. Each of the main elements of protection is defined, namely the subject matter to be protected, the rights to be conferred and permissible exceptions to those rights, and the minimum duration of protection.
    • The Agreement lays down certain general principles applicable to all IPR enforcement procedures. In addition, it contains provisions on civil and administrative procedures and remedies, provisional measures, special requirements related to border measures and criminal procedures
    • The Agreement makes disputes between WTO Members about the respect of the TRIPS obligations subject to the WTO's dispute settlement 
TRIPS and India
  • The patent law system in India has undergone significant changes and amendments since the country’s incorporation of the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights
  • In 2001, the WTO signed the Doha Declaration, which clarified that in a public health emergency, governments could compel companies to license their patents to manufacturers, even if they did not think the offered price was acceptable.
  • This provision, commonly referred to as “compulsory licensing”, was already built into the TRIPS Agreement and the Doha declaration only clarified its usage.
  • Under Section 92 of the 1970 Indian Patents Act, the central government has the power to allow compulsory licenses to be issued at any time in case of a national emergency or circumstances of extreme urgency.
  • In view of the COVID-19 pandemic, India and South Africa had proposed to the WTO in October 2020 that the TRIPS Agreement (that included patent protection to pharmaceutical products including COVID vaccines) be waived off for COVID vaccines, medicines and diagnostics for the time period of the pandemic in order to make vaccines and drugs for COVID available to a maximum number of people worldwide.
Significances of relaxing TRIPS rules
  • This would make the vaccines more available to people of developing countries and also LDCs.
  • Ethically, life-saving drugs and vaccines should be made available to everyone and pharmaceutical companies should not be looking to make profits out of these.
  • With particular reference to the COVID-19 pandemic, it is said that no one is safe unless everyone is safe. In this respect, it is imperative that vaccines are made available to everyone in countries affected since it can easily spread to all countries as seen in the first wave.
  • Rules granting monopolies that place the right to access basic healthcare in a position of constant peril must end.
Challenges associated with TRIPS waiver
  • Unless corporations are rewarded for their inventions, they would be unable to recoup amounts invested by them in research and development.
  • Without the right to monopolise production there will be no incentive to innovate.
  • They also claim that companies in the developing world do not have the capacity to manufacture vaccines or drugs on a large scale.
Road Ahead:
  • Waiving of intellectual property rights will neither lead to increased production of vaccines or increased deployment nor practical solutions to fight the virus of COVID-19 vaccines since IP is not the barrier. Waiving of intellectual property rights could impact patient safety by opening doors for counterfeit vaccines to enter the supply chain.
  • Our top most priority should be to address the supply side constraints, including IP barriers, to augment the manufacturing of vaccines, therapeutics and diagnostics, essential for treatment, prevention and control of the ongoing pandemic.
  • The Indian Drug Manufacturers Association on the other hand has supported, with a caveat, the waiving off of intellectual property rights for covid drugs to expand availability.
  • What is more important is grant of voluntary licenses by the patent holders to Indian companies with sufficient expertise in this field and similarly transfer technology to Indian companies against reasonable royalties.
EXPLAINED | WHO IS MANUFACTURING INDIA’S mRNA VACCINE? The Pune-based Gennova Biopharmaceuticals is expected to roll out India’s first home-grown mRNA (messenger ribonucleic acid) vaccine by April.
  • The two of the first vaccines that emerged in late 2020, Pfizer-BioNTech and Moderna, used this technology.
  • Now, an Indian company is developing an mRNA vaccine from scratch, signalling possibilities of the use of the molecule in a variety of diseases beyond COVID-19.
What is an mRNA vaccine?
  • Like other vaccines, the mRNA vaccine strives to activate the immune system to produce antibodies that help counter an infection from a live virus.
  • While the traditional method to do this involves introducing a part or the whole virus in a way that it cannot replicate, there is always the risk of an adverse reaction in the case of the SARS-CoV-2 virus.
We need a vaccinology to tease out an immune response that is effective and relatively safe
  • The less of a foreign body injected, the fewer the odds of an adverse response.
  • A common approach by vaccine makers during the pandemic was to introduce a portion of the spike protein, the key part of the coronavirus, as part of a vaccine.
  • AstraZeneca or Sputnik V, wrapped the gene that codes for the spike protein into an inactivated virus that affects chimpanzees, called the chimpanzee adenovirus.
  • The aim is to have the body use its own machinery to make spike proteins from the given genetic code.
  • The immune system, when it registers the spike protein, will create antibodies against it.
 What other vaccines do?
  • Other vaccines use a piece of DNA to envelope the spike protein genes.
  • In mRNA vaccine works in similar ways that it a piece of genetic code inserted into the body to stimulate an immune response.
How are these vaccines different?
DNA mRNA
A piece of DNA must be converted into RNA for a cell to be able manufacture the spike protein.   While an mRNA vaccine might look like a more direct approach to getting the cell to produce the necessary proteins, mRNA is very fragile and will be shred apart at room temperature or by the body’s enzymes when injected.  
DNA is much more stable and can be more flexibly integrated into a vaccine-vector.   To preserve its integrity, the mRNA needs to be wrapped in a layer of oily lipids, or fat cells.  
In terms of performance, both are expected to be as effective. In terms of performance, both are expected to be as effective.
Challenge with mRNA vaccines
  • It is that they need to be frozen from (-90) degree Celsius to (-50) degree Celsius.
  • They can be stored for up to two weeks in commercial freezers, if for a week then they have to be thawed at 2 degrees Celsius to 8 degrees Celsius at which they can remain for a month.
Why mRNA vaccines never made it to India?
  • It was the stringent freezer conditions that made them expensive.
Advantage of mRNA:
  • A major advantage of mRNA vaccines is that they only need the genetic code, it is possible to quickly update vaccines to emerging variants and even use them for a variety of diseases.
  • But none of the vaccines has been updated for the Delta or Omicron variant yet.
Is Genova’s mRNA vaccine different?
  • The prospective vaccine uses a concoction of lipids and enzymes that allows the vaccine to be stored at 2°C to 8°C.
  • Indian mRNA vaccine will be cheaper than their imported versions but probably costlier than Covishield or Covaxin.
 What is the progress on the vaccine candidate so far?
  • The mRNA vaccine is currently in phase 2/3 trial to evaluate the safety, tolerability and immunogenicity of the candidate vaccine in healthy subjects.
  • Around 4,000 volunteers have been recruited for the trial. Results from a phase-1 trial are expected to be published soon.
  • Gennova has got 125 crores from the Department of Biotechnology.
Road Ahead:
  • India has now fully vaccinated more than half its population and at least seven homegrown vaccines have been cleared by authorities. But there is a wide gap between readying vaccines and supplying them commercially because of the challenges of scaling up production.
  • Covaxin, despite being approved in January 2021 and developed by Bharat Biotech, an experienced vaccine maker, has only contributed to 14% of India’s vaccination drive. This has to be taken care off and should proceed in making vaccines affordable to India and third world countries.
PROTESTS AGAINST THE VACCINE MANDATE HAVE PARALYSED CANADA’S CAPITAL - FREEDOM CONVOY For more than two weeks now, thousands of Canadian truckers and their supporters have orchestrated blockades in protest against vaccine mandates and COVID-related restrictions. Impact:
  • Traffic on Ambassador Bridge, which connects Windsor, Ontario, with Detroit, Michigan, and is the busiest land border crossing in North America, accounting for 30% of the annual trade between the U.S. and Canada.
  • It came to a halt, disrupting supply chains and production schedules in both countries.
Freedom Convoy 2022
  • The second site was at Coutts, Alberta, at its border with the U.S. State of Montana.
  • It saw the largest convergence of heavy-duty trucks.
  • The convoy, calling itself ‘Freedom Convoy 2022’ and numbering around 500, consisted of truckers who had driven from different parts of Canada to pressure the federal government.
 Reason for the protests?
  • Vaccine mandates for cross-border truckers came into force.
  • Until January, truckers were considered as essential workers and could freely cross the border with goods, while non-essential travel remained banned.
  • But from January 15, any foreign trucker entering Canada needed to be vaccinated, while a similar rule, applicable to Canadian truckers entering the U.S., kicked in on January 22.
  • Those not vaccinated have to show a COVID-negative test taken within 72 hours and go into quarantine for 14 days.
What’s their demand?
  • Terminate “the vaccine passports and all other obligatory vaccine contact tracing programmes, or inter-Canada passport systems” and “terminate COVID vaccine mandates and respect the rights of those who wish to remain unvaccinated”.
Response from the government?
  • The federal government has shown little interest in engaging with the protesters or their demands.  Asking the participants to go home.
Protester’s point of view apart from the vaccine mandates
  • A deep-rooted loathing of intrusive government surveillance in the name of public health threat on privacy.
  • Fear that such intrusiveness could become permanent, resentment at the loss of a ‘way of life’.
Challenges:
  • Industry is getting restless over the disruption in supply chains.
  • Truckers are in no mood to back down.
  • Trudeau government negotiating with the truckers after having dismissed them as a ‘fringe’ would seem a sign of weakness, evicting them by force carries heavy political costs.
Road Ahead:
  • Meanwhile, the Convoy has already inspired copycat protests in different parts of the world, including Europe, Australia and New Zealand. Hope it doesn’t spread to India as Government is already in logjam over various issues.
WHAT IS THE DOCTRINE OF ESSENTIALITY - SUPREME COURT’S? Shirur Mutt’ case in 1954: Invented doctrine of essentiality. The court held that the term “religion” will cover all rituals and practices “integral” to a religion, and took upon itself (in the hands of judiciary) the responsibility of determining the essential and non-essential practices of a religion. The essentiality/integrity doctrine has tended to lead the court into an area that is beyond its competence, and given judges the power to decide purely religious questions. Why is the issue of the essential practice test in news?
  • A pre-university college in Karnataka refused entry to Muslim girl students wearing hijabs, or head-scarves.
  Communal colour a threat to integrity
While the girls have been protesting against being denied access to education. There is a counter-protests by a section of Hindu students wearing saffron shawls and turbans have led to a tense situation outside some campuses.
Judicial response
  • The action of the college is now being questioned in the Karnataka High Court.
  • The court, has directed that student should not wear attire linked to “any religion” until it resolves the legal questions arising from the issue.
 What are the issues?
Article 25: Freedom of conscience and free profession, practice and propagation of religion. Subject to public order, morality and health and to the other provisions of this Part, all persons are equally entitled to freedom of conscience and the right freely to profess, practise and propagate religion. Whether students can be kept out of educational institutions merely because they are wearing a piece of clothing indicating their religion. Is the denial of entry a violation of their freedom of conscience and freedom to practise their religion?
Government’s stand: Compelling a student to remove the head-scarf is not a violation of Article 25.
  • Subject to public order:
  • The wearing of head-scarves will have an adverse impact on law and order by pitting two communities against one another, and thereby, enable the Government to prohibit religious attire in the interest of public order – one of the grounds on which a right under Article 25 can be curbed.
  • Subject to public morality and health: The educational institutions can bar religious attire as part of their power to prescribe uniforms for students is within the power to restrict freedom of religion in the interest of public order, health and morality.
  • Denial of entry into schools amounts to violation of the students’ right to education under Article 21A
  • The state shall provide free and compulsory education to all the children in the age of 6 to 14 years in such a manner as the state may, by law determine.
  • State of Tamil Nadu vs K Shyam sunder (2011): There cannot be discrimination on the ground of child’s economic, social and cultural backgrounds.
  • Muslim students’ point of view: They have a fundamental right to wear a hijab as part of their right to practise their religion.
  • The right asserted in contrast to the general rule, as well as arguments advanced in court on their behalf, the issue may boil down to a finding on whether the wearing of hijab is essential to the practice of their faith.
What is the constitutional position?
Bijoe Emmanuel vs. State of Kerala (1986): In this case three children belonging to the Jehovah’s Witnesses sect refusing to sing the national anthem during the morning assembly were expelled. The Supreme Court ruled holding that their expulsion violated: Article 19(1)(a): Their freedom of expression. Article 25(1): Their right to freely practise and profess their faith.
Article 25: The freedom of conscience and to profess, practise and propagate religion This freedom is subject to ‘public order, morality and health. It also makes it clear that there can be a law regulating any economic, financial, political or other secular activity which may be associated with religious practice or to provide for social welfare and reform, including throwing open Hindu religious institutions of a public character to all classes and sections of Hindus.
RELIGIOUS BELIEF OR PRACTICE APPEALS TO OUR REASON OR SENTIMENT (VS) WHETHER THE BELIEF IS GENUINELY AND CONSCIENTIOUSLY HELD AS PART OF THE PROFESSION OR PRACTICE
  • Justice O. Chinnappa Reddy: Observed that “The question is not whether a particular religious belief or practice appeals to our reason or sentiment but whether the belief is genuinely and conscientiously held as part of the profession or practice of religion.
  • Our personal views and reactions are irrelevant.
  • Article-25: Ensures protection “if the belief is genuinely and conscientiously held”, but subject of course, to the inhibitions contained therein.”
The test in this approach is to find out
  • Whether a student asserts religious freedom for a course of action that the authorities find objectionable genuinely and conscientiously holds that belief or not.
  • Whether such a belief is constitutionally protected.
Basis on which students support the issue
  • Wearing a hijab is an essential part of Islam: Kerala High Court judgment that had in 2016 allowed two Muslim students to take the All-India Pre-Medical Test while wearing a hijab, after holding that it was an essential part of Islam.
  • Madras High Court order: The court ruled that there is unanimity among Muslim scholars that the purdah is not essential, but covering the head by a scarf was obligatory.
Essential practice’ doctrine: Shirur Mutt’ case
  • The ‘essential practice’ doctrine can be traced to a 1954 decision of the Supreme Court in Commissioner, Hindu Religious and Charitable Endowments, Madras vs. Sri Lakshmana Tirtha Swamiar of Sri Shirur Mutt, commonly known as the ‘Shirur Mutt’ case.
  • This litigation involved action sought to be taken by the Madras government against a mutt over some disputes over the handling of financial affairs.
  • The madathipathi’s contention was that the Government could not interfere in the mutt’s right to manage its own affairs under Article 26.
  • Article 26: It protected the right “to manage its own affairs in matters of religion”.
  • This led to the Bench noting that the presence of this clause indicates that there could be affairs that were not matters of religion.
How does one draw the line between matters of religion and matters other than religion?
  • The court said: What constitutes the essential part of a religion is primarily to be ascertained with reference to the doctrines of that religion itself.
  • In 1983, the Supreme Court upheld the police decision to disallow ‘Tandava’, a ritual dance performed with a skull and a knife, in public places as part of a procession by Ananda Margis, holding that the ‘Tandava’ was not an essential religious practice among those in the sect.
  Different views on test of essential practice and decision are based on majority and not unanimous
  • Sardar Syedna Taher Saifuddin Saheb vs. Bombay (1962):
The Supreme Court struck down a law that prohibited the head of the Dawoodi Bohra community from excommunicating members. The majority ruled that the power of excommunication exercised by the religious head on religious grounds was part of the management of affairs on religious matters, and the Act infringed on the community’s rights. However, in a dissenting judgment, Chief Justice B. P. Sinha said the law was valid because it sought to uphold the freedom of conscience of individual members as well as their civil rights.  
  • Sabarimala case (2018):
The majority ruled that the bar on entry of women in the age-group of 10 to 50 was not an essential or integral part of the religion, and also denied the status of a separate religious denomination of devotees of Lord Ayyappa. However, in a dissenting judgment, Justice Indu Malhotra, said they constituted a distinct denomination and that the restriction on women of a particular age group is an essential part of their faith and is constitutionally protected.
Criticism against the essential practice test
  • Continuing emphasis on applying the essential practice test to determine the constitutionality of state action against any religious practice that claims protection despite being either discriminatory or exclusionary.
  • It was never intended to be a test to find out if a particular practice is essential to the practice of the religion, but was only made to distinguish a matter of religion from a matter other than religion.
  • The doctrine of essentiality appears to allow courts to go deeply into the scriptures and tenets of a religion or a religious denomination to find out if the practice or norm that is at the heart of the issue is essential.
  • This is seen as a theological or ecclesiastical exercise, which courts are forced to wade into.
Road Ahead:
  • A more reasonable approach will be to apply the test of constitutional morality and legitimacy to the issue at hand. Applying the principles of equality, dignity and civil rights to a particular practice may be better to decide the constitutionality of a practice than a theological enquiry.
WHY AND HOW BENGAL FORGOT MARICHJHAPI The West Bengal BJP’s Scheduled Caste Morcha led agitation in January to commemorate the Marichjhapi massacre of 1979 has thrown light on a dark incident in the state’s contemporary History which remains conveniently forgotten. What is the incident?
  • It involved violence and forceful action by the Left Front government between January and May 1979 against refugee settlers on the small Sundarbans Island of Marichjhapi.
  • The incident started with the Bengali Hindu migration into West Bengal from East Pakistan and, subsequently, independent Bangladesh.
POLITICAL CLOUT AND EFFECT OF PARTITION Before partition
  • The backward sections of the Bengali Hindu community (Particularly the Nama shudras) had forged a formidable alliance with the Muslim League and the Krishak Praja Party during the last decades of British rule to keep out the upper caste-dominated Congress from power in Bengal.  
Post partition first exodus
  • The clout of the Namashudras was, however, lost with Partition and Independence.
  • Recurrent riots and atrocities forced many of them to migrate into India along with upper caste Hindu Bengalis.
Second phase of the exodus
  • The second phase of the exodus involving more of these marginalized people occurred after the creation of independent Bangladesh, when Sheikh Mujibur Rahman’s assassination in 1975 and a vigorous turn towards a more Islamic identity for Bangladesh, witnessed a rise in communal riots.
Idea of Rehabilitating outside West Bengal
  • As large groups of refugees began to arrive, the government of West Bengal negotiated with the Centre along with other States to settle some of the refugee groups outside, like on the Andaman Islands, and more particularly in the arid and forested Dandakaranya, lying partly in Orissa, Andhra Pradesh and Madhya Pradesh then and now mostly in Chhattisgarh.
  • Such actions by the Congress government were opposed by the Left. So, the Left Coming to power for the first time, in1977, saw many refugee families trying to come back and settle down in parts of West Bengal.
Settlements in Marichjhapi
  • The islands of Sundarbans were a favoured area as earlier groups of refugees from East Pakistan had settled largely here and it provided opportunities in fishing and agriculture.
  • Marichjhapi was particularly important as the refugees had cleared the island and even set up a school and health center on their own initiative.
  • The Left Front government under Jyoti Basu, however, opposed such settlements as illegal encroachment in areas allocated for tiger projects.
No support from the Union government over atrocities on the refugees
  • The local press reported police atrocities on the settlers.
  • There was hardly any possibility of the refugees getting any support from the other end of the political spectrum as the Congress was a weak force after its defeat in 1977.
  • The coalition government at the Centre under Morarji Desai was dependent on Left support.
  • The All India Backward and Minority Communities Employees Federation (BAMCEF) led by Kanshi Ram also not yet powerful.
Atrocities
  • From January 1979, the state government initiated more punitive action. On 27th January, it prohibited all movement from and to Marichjhapi.
  • This was challenged by the refugees in the Calcutta High Court and a stay was obtained. The Left government reportedly did not follow the order and used police along with vigilante groups (mainly local goons) to evict the refugees.
  • Between May 14 and 16, 1979, severe atrocities were reported, including police firing on unarmed people, dumping of bodies in the river, raping of women and burning down of huts and boats.
  • The incidents, though reported in some local papers, did not evoke any protests. Opposition activities remained limited to raising the issue.
  • Strict press censorship limited the activities of reporters.
Grievance unredressed
  • Even today the exact number of people killed or displaced can only be estimated approximately. There was no large-scale inquiry and no government or police official was charged sheeted.
Silence in the Bengali intelligence community and acquiescence of this intellectual elite in the abuses
  • The subsequent silence in the Bengali intelligence community about what so many knew happened at Marichjhapi is indicative of the intellectual dominance of certain perspectives and the acquiescence of this intellectual elite in the abuses”.
  • This shows that the mainstream elite culture could ignore the pain and sufferings of the largely subaltern groups, who were perhaps not considered important enough to weave a narrative of pathos capable of Touching the heart chords of more cosmopolitan and intellectual urban elite, who still preferred to view the Leftist agenda and philosophy with rose-tinted glasses.
  AGRICULTURAL PRODUCTS’ EXPORT DEVELOPMENT AUTHORITY (APEDA) CELEBRATES 36TH FOUNDATION DAY Agricultural Products Export Development Authority (APEDA) celebrated its 36th Foundation Day. APEDA actively supported the Government in taking the export of agricultural products to USD 20.67 billion in 2020-21 from USD 0.6 billion in 1986 when it was founded.  APEDA also helped expand the export basket to 205 countries.
  • The share of APEDA exports (USD 20.67 billion) constituted 49% of overall Agri- product exports in 2020-21 out of which, Cereals and fresh horticulture comprised 59%, Cereal preparations and miscellaneous processed items 23% and animal products 18%.
About APEDA
  • The Government in 1986 had set up APEDA through an Act of Parliament under the Ministry of Commerce and Industry, Government of India.
  • The newly created body replaced the then existing Processed Food Export Promotion Council.
  • The APEDA had been undertaking most of the activities as per its mandate and scope of work allocated spanning its 14 product categories which mainly includes the sector of fruits and vegetables, processed fruits and vegetables, animal, dairy and poultry products and cereals.
  • Over the years, APEDA has been handling issues concerning product safety and global promotion for all its product categories, compromising more than 800 tariff lines.
  • APEDA has been constantly sensitizing its trade exporters about export requirements and also providing assistance for setting up of infrastructure facilities for common uses and as well as by the concerned member exporters for having export-oriented production for exports from the country.
  • Considering the importance of food safety and traceability required by the importing countries of developed economies, APEDA took a number of initiatives in the area of quality development such as preparation of standards, procedures for identified potential products, development of residue monitoring protocol, recognition of laboratories and implementation of traceability systems, etc.
Significance of APEDA
  • With respect to the export of scheduled products, APEDA registration is mandatory.
  • Exporters can avail themselves of the various financial assistance schemes of APEDA.
  • It helps the exporters in brand publicity through advertisement, packaging development, database up-gradation and surveys etc.
  • Provides guidelines to exporters about the various products and countries for export.
  • Registered members can participate in training programmes organized by APEDA for various scheduled products and thereby improve their business.
Challenges in implementation of APEDA
  • The backward integration in India especially for perishables is inefficient and unorganized, resulting in quality and longevity issues.
  • From the export perspective, the importing nations are becoming more and more stringent with respect to the production norms/ traceability at the farm level.
  • Lack of synergy between the state and central government as agriculture is a state subject, while the state’s role for exports is undefined.
  • Certification & Signing authority at the ports are not available round the week and 24*7. For a consignment to be shipped on Sunday, the formalities need to be completed beforehand which affects the cost and longevity of the product.
  • Unregulated input (chemicals) usage at the farm level.
  • Inadequate harvest and post-harvest management affects quality and shelf life of the produce.
  • Delay in the Transport Assistance Scheme affects the working capital cycle of the exporters as the exporters consider TAS while determining the final selling price.
Road Ahead:
  • The experience of many countries world over suggests that export orientation of the agriculture sector is one of the prerequisites for its success in global trade. Further, it has also been observed that export orientation of the agriculture sector is sustained when complemented with quality produce, sizeable processing industry and a strong domestic market. As India lacks in these requirements, agri exports potential has not been fully tapped.
  • Though India is at the forefront of production of various agri commodities but there is a need for strategic interventions in line with prevailing export requirements to provide a boost to agri exports. Eight-pronged strategy covering Product Segmentation, Quality Enhancement, Market Diversification, Market Penetration, Value Addition, Agriculture Infrastructure Upgradation, Skill Development and Branding/ Promotion supported by conducive exports policy and regulations will be critical in ensuring competitiveness of India’s agri export trade globally.
RELIANCE INDUSTRIES SEEKS TO BE WORLD'S TOP BLUE HYDROGEN MAKER Reliance Industries Ltd (RIL) aims to become one of the largest producers of blue hydrogen globally, with a target of producing the zero-emission fuel at costs that will be half the global average.
  • In a presentation detailing the separation plan, RIL — the operator of the world’s largest oil refining complex — said it will repurpose a Rs 30,000 crore plant that currently converts petroleum coke into synthesis gas to produce blue hydrogen for $1.2-1.5 a kg.
About Hydrogen
  • Hydrogen is the cleanest form of known fuel.
  • Depending on production methods, hydrogen can be grey, blue or green.
  • Clean hydrogen would be useful in decarbonizing industrial heavy transportation like trucking, big industrial boats, and planes.
  • Grey hydrogen is the most common form and is generated from natural gas, or methane, through a process called ‘steam reforming’.
Blue Hydrogen
  • Hydrogen is labelled blue whenever the carbon generated from steam reforming is captured and stored.
  • Blue hydrogen is, therefore, sometimes referred to as carbon neutral as the emissions are not dispersed in the atmosphere.
What makes Hydrogen blue?
  • According to the International Energy Agency, 96% of hydrogen produced worldwide is made using fossil fuels – coal, oil and natural gas – in a process known as reforming.
  • This involves combining fossil fuels with steam, and heating them to around 800°C. Eventually, you get carbon dioxide (CO2) and hydrogen.
  • These two gases are then separated.
  • The CO2 is often emitted to the atmosphere where it contributes to global heating, and hydrogen is extracted and used in everything from car engines to boilers, releasing water vapour.
Advantages of Blue Hydrogen
  • Low-carbon fuel for generating electricity and storing energy, powering cars, trucks and trains and heating buildings.
  • CO2 that would ordinarily be released is captured and stored underground.
  • Carbon capture and storage equipment provides for low-carbon fuel production at a lower cost than green hydrogen.
  • It will help to enhance India's National Hydrogen Mission.
  • If implemented in a proper way, it will help to achieve the targets of the Paris Agreement.
Disadvantages of Blue Hydrogen
  • Carbon capture and storage equipment is expensive, raising the price of fuel.
  • The process of making blue hydrogen also requires a lot of energy.
  • In others words, if the hydrogen is used to heat a building, you would need to use 25% more natural gas to make blue hydrogen than if it was used directly for heat.
  • The primary component of natural gas is Methane and a by-product of using it to produce blue hydrogen – is a much more potent global warming gas than CO2 over shorter timescales.
  • Lack of proper infrastructure and production ecosystem.
Road Ahead:
  • The future is a transition from grey, through blue, to green hydrogen. One thing that is clear is the important role hydrogen will play in energy transition. To meet global energy demand, while achieving the national and global energy efficiency targets, the industry is looking at every potential technology.
  • There is great potential in both the blue and green hydrogen and both will play an important role in energy transition. With our knowledge and capability, we are there to support this transition.
Additional information Other forms of Hydrogen
  • Grey hydrogen is made from natural gas reforming like blue hydrogen, but without any efforts to capture carbon dioxide by-products.
  • Pink hydrogen is hydrogen made with electrolysis powered by nuclear energy, which does not produce any carbon dioxide emissions. (Although nuclear energy creates radioactive waste which must be stored safely for thousands of years.)
  • Yellow hydrogen is hydrogen made with electrolysis from the energy grid. The carbon emissions vary greatly depending on the sources powering the grid.
  • Turquoise hydrogen is hydrogen produced from methane pyrolysis, or splitting methane into hydrogen and solid carbon with heat in reactors or blast furnaces. Turquoise hydrogen is still in its nascent stages of being commercialized, and its climate-conscious value depends on powering the pyrolysis with clean energy and storing the physical carbon.






POSTED ON 16-02-2022 BY ADMIN
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