PIB Summary- 12th August, 2022 | PIB (Press Information Bureau) Summary - UPSC PDF Download

India and UK Free Trade Agreement

Why in News?
India and UK conclude fifth round of talks for India-UK Free Trade Agreement

What are Free Trade Agreements (FTAs)?

Key features of Free Trade Agreements (FTAs) are as follows

• The member nations of FTAs explicitly identify the duties and tariffs that are to be imposed on member countries when it comes to imports and exports.
• FTAs typically cover trades in  (a) merchandise — such as agricultural or industrial products (b) services — such as banking, construction, trading and so forth (c) intellectual property rights (IPRs) (d) investment (e) government procurement (f) competition policy and so on.
• FTAs additionally, for the most part, provide criterion called the ‘Rules of Origin (RoO)’, required for the determination of product’s country of origin for the imposition of the preferential tariff on International trade.   Note: Rules of Origin (RoO) are enforced with the issuance of a Certificate of Origin (CoO) by authorized agencies of the trading partner.
• FTAs act as an exception to the Most Favoured Nation principle adopted by WTO (World Trade Organization).

Benefits of India-UK FTA

• The FTA negotiations with the UK is expected to increase our exports in Leather, Textile, Jewellery and processed Agri products.
• It also expected to register a quantum jump in the export of Marine Products through the recognition of 56 marine units of India.
• The Mutual Recognition Agreements (MRAs) on Pharma could provide additional market access.
• There is also great potential for increasing exports in service sectors like IT/ITES, Nursing, education, healthcare, including AYUSH and audio-visual services.
• Observing that UK was a major trade partner of India with substantial bilateral volume of trade in goods and services, the cooperation extended across areas like tourism, tech, startups, education, climate change, etc.
• The two nations were looking forward to a mutually beneficial trade deal with balanced concessions and market access package in a wide range of sectors.
• It will also contribute in integrating value chains and help augment our mutual efforts to strengthen the resilience of supply chains.

Areas of cooperation between India and UK

• Institutionalised dialogues: India and UK have a number of bilateral dialogue mechanisms in place, covering a wide spectrum of areas including political, trade, education, science & technology, defence etc.
• Trade: UK is among India’s major trading partners and during the year 2014-15, UK ranked 18th in the list of India’s top 25 trading partners. India’s main exports to the UK are garments and textiles, machinery and instruments, petroleum products, footwear and leather.
• Services: As per UK’s Office for National Statistics, India-UK bilateral trade in services in the year 2014 amounted to approx. £2.5 billion.
• Investment: UK is the 3rd largest inward investor in India, after Mauritius, and Singapore with a cumulative equity investment of US $22.56 billion.
• Economic Dialogue: Bilateral mechanisms like India-UK Economic & Financial Dialogue (EFD) and India-UK Joint Economic and Trade Committee (JETCO) form the basis of institutional engagements between the two countries.
• Education: Education is an important plank of the India-UK bilateral relationship. Over the last 10 years, the relationship has grown substantially with the introduction of bilateral mechanisms such as the India-UK Education Forum UK-India Education and Research Initiative (UKIERI).
• Indian Students: UK has traditionally been a favourite destination for international students. At present, there are approximately 20,000 Indian students pursuing Undergraduate and Postgraduate courses in the UK.
• Cultural Linkages: Cultural linkages between India and UK are deep and extensive, arising out of shared history between the two countries. There has been a gradual mainstreaming of Indian culture and absorption of Indian cuisine, cinema, languages, religion, philosophy, performing arts, etc.
• Indian Diaspora: The India Diaspora in UK is one of the largest ethnic minority communities in the country, with the 2011 census recording approximately 1.5 million people of Indian origin in the UK equating to almost 1.8 percent of the population and contributing 6% of the country’s GDP.
• Geopolitical Significance: The Indian Ocean is identified as a vital arena for closer defence and security cooperation between the two countries. Further, India needs UK’s support on international for a for its aim to have a permanent seat in UNSC and full membership of NSG.

Issues in India-UK relations

• The UK does not have a government-to-government framework for arms sales to India, relying instead on commercial-led transactions.
• UK is an active participant in Belt and Road Initiative of China for which India raised sovereignty issues.
• Colonial hangover in public is affecting the policy makers of India to take decisions for close relations with UK.
• Brexit raises major issues for Indian business: o Political uncertainty and oscillating business policy along with fluctuating market share and prospect. o Restructuring to set up EU subsidiaries of Indian companies.

Fortified Rice

Why in News?
One Year of Announcement of Rice Fortification. 151 districts in 24 states lifted fortified rice; 6.83 LMT distributed by the States/UTs in Phase II.

What is rice fortification?

• The Food Safety and Standards Authority of India (FSSAI) defines fortification as “deliberately increasing the content of essential micronutrients in a food so as to improve the nutritional quality of food and to provide public health benefit with minimal risk to health”.
• The cooking of fortified rice does not require any special procedure.
• After cooking, fortified rice retains the same physical properties and micronutrient levels as it had before cooking.
• Fortified rice will be packed in jute bags with the logo (‘+F’) and the line “Fortified with Iron, Folic Acid, and Vitamin B12”.
• Various technologies are available to add micronutrients to regular rice, such as coating, dusting, and ‘extrusion’.
• The last mentioned involves the production of fortified rice kernels (FRKs) from a mixture using an ‘extruder’ machine.
• It is considered to be the best technology for India.
• The fortified rice kernels are blended with regular rice to produce fortified rice.

Need of rice fortification

• India has very high levels of malnutrition among women and children.
• According to the Food Ministry, every second woman in the country is anaemic and every third child is stunted.
• Fortification of food is considered to be one of the most suitable methods to combat malnutrition.
• Rice is one of India’s staple foods, consumed by about two-thirds of the population.
• Per capita rice consumption in India is 6.8 kg per month.
• Therefore, fortifying rice with micronutrients is an option to supplement the diet of the poor.

What are the standards for fortification?

• Under the Ministry’s guidelines, 10 g of FRK must be blended with 1 kg of regular rice.
• According to FSSAI norms, 1 kg of fortified rice will contain the following: iron (28 mg-42.5 mg), folic acid (75-125 microgram), and vitamin B-12 (0.75-1.25 microgram).
• Rice may also be fortified with zinc (10 mg-15 mg), vitamin A (500-750 microgram RE), vitamin B-1 (1 mg-1.5 mg), vitamin B-2 (1.25 mg-1.75 mg), vitamin B-3 (12.5 mg-20 mg) and vitamin B-6 (1.5 mg-2.5 mg) per kg.