UPSC Daily Current Affairs- 4th August 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS-I

Why in News?

Recently, seven products from across India, including Jalesar Dhatu Shilp, were given the Geographical Indication (GI) tag.

Background:-

• The GI tags were secured by ‘Jalesar Dhatu Shilp’ (a metal craft), ‘Goa Mankurad Mango’, ‘Goan Bebinca’, ‘Udaipur Koftgari Metal Craft’, ‘Bikaner Kashidakari Craft’, ‘Jodhpur Bandhej Craft’, and ‘Bikaner Usta Kala Craft’.

Jalesar Dhatu Shilp:-

• Jalesar is located in the Etah district of Uttar Pradesh.
• It was the capital of Magadha King Jarasandha.
• The metal art of Jalesar is highly esteemed for its intricate designs and exceptional craftsmanship, blending elements of both traditional and contemporary styles.
• Skilled artisans employ various techniques such as casting, molding, hammering, engraving, and filigree work to create a diverse array of metal products.

The Jodhpur Bandhej Craft:-

• It is the Rajasthani art of tying and dyeing.
• It is one of the most famous textile art forms of Rajasthan.
• The fabrics used: muslin, silk, and voile.
• Cotton thread is used for tying the fabric.

The Bikaner Usta Kala Craft:-

• It is also known as gold nakashi or gold manauti
• It shows the prominence of its long-lasting golden colour.
• Untreated raw camel hide is processed and molded by the Dapgar community of leather craftspeople for the requirements of the Usta.

Udaipur Koftgari Metal Craft:-

• The ancient art of Koftgari is used to create exquisitely ornamental weaponry.
• Technique: This damascene technique involves a complex process of etching designs, heating, and cooling the metal, while also embedding gold and silver wire into the surface.
  • Unlike inlaid metal ornamentation, the wire does not sink into the iron; instead, it remains on the surface and is mechanically bound through pressing, burnishing, and polishing.
  • After the design is complete, burnishing tools known as Opani are used to push and bind the overlaid silver firmly.
  • Lastly, the surface is polished using a hakek stone to achieve the final stunning appearance.
• The term ‘Koftgari’ originates from the Persian and Urdu words ‘kuft-gari,’ meaning ‘beaten work’.
• The artisans who practice this art are called ‘kuftgars’ or gilders.
• Historically, Koftgari was brought to India by Persian craftsmen during the 16th century when they served Mughal rulers.
• The Mughal Emperors had a significant iron workshop called the Mughal Silehkhana that produced ornamented swords and weapons for the imperial army.

Bikaner Kashidakari Craft:-

• It is traditionally created on cotton, silk, or velvet with a variety of fine stitches and mirror-work, mainly for objects associated with marriage, especially gift items.
• The mirrors are believed to repel the ‘evil eye’ with their reflective surfaces.
• The weaving of fabrics by hand used to be done by the Meghwal community in Bikaner and nearby districts.

Goa Mankurad mango:-

• The mango was given the name ‘Malcorada’ by the (GI Tag for Mithila Makhana)
• The name translates to ‘poor coloured.
• Over time, this word evolved into ‘Mankurad’.
• In the Konkani language, it came to be known as ‘aamo’, which means mango.

Goan Bebinca:-

• Bebinca, a traditional Indo-Portuguese dessert. 
• It is a type of pudding widely recognized as the ‘Queen of Goan desserts.’

Source:  The Hindu

GS-II

Police Reforms in India

Why in News?

Incidents like an outbreak of communal violence in Delhi region and violence in Manipur’s Imphal Valley raises concerns over the role of law enforcement.

About Police and Policing Framework in India

• The primary role of police forces is to uphold and enforce laws, investigate crimes and ensure security for people in the country.
• In a large and populous country like India, police forces need to be well equipped, in terms of personnel, weaponry, forensic, communication and transport support, to perform their role well.

Constitutional and legal provisions:

• Under the Constitution, ‘Police’ and ‘Public Order’ are state subjects under the Seventh Schedule to the Constitution of India.
  • Therefore, each state has its own police force.
• The center is also allowed to maintain its own police forces to assist the states with ensuring law and order.
• The basic framework for policing in India was laid down in the pre-independence era through the Police Act, 1861.
• Apart from the above, several other laws and regulations govern police functioning in India.
  • These include the Criminal Procedure Code (CrPC), Indian Penal Code (IPC), Evidence Act and various state-specific laws.

Significance of police reforms:

• Low police-to-population ratio: The global average ratio of police-population is 270 to 100,000, where it is 120 in India.
  • With far less police –ill-equipped and most of them posted to protect the political representatives, people of India are the least secured people on the globe.
• Corruption: In 2016, the vigilance department had conducted 55% more inquiries against its men.
  • A Delhi Police survey found 34% of the cops to be corrupt in 2015, down from 66% in 2014.
• Changing nature of crime: The recent social and technological changes fueled by the internet and the new social media are fast changing the nature, intensity and the reach of crime leading to unprecedented lawlessness and frightening dimensions of global terrorism.
• Insensitive towards backward classes: Representation of women and depressed caste is low which makes them insensitive towards them.
  • Escalating violence resulting from caste conflicts including the most recent Dalit uprising, farmers woes across the country.

Issues in Police Forces

Colonial Law:  Even at present, the police system in India is based on colonial law.

• Sometimes the British used the police as their instrument to suppress the voice of people and for their personal functions and at present our respected government is doing the same.

Huge vacancies: While the sanctioned police strength was 181 police per lakh persons in 2016, the actual strength was 137 police.

• This is excessively low when compared with the United Nations’ recommended standard of 222 police per lakh persons.
• Further, a high percentage of vacancies within the police forces exacerbates an existing problem of overburdened police personnel.

Custodial Death: There are many cases on custodial death means Death by torture/pressure in police/judicial custody.

• During 1996-1997 in D.K.Basu judgment, the Supreme Court (SC) issued a guideline against custodial death in India.

Police Infrastructure (weapons, vehicle etc.): Modern policing requires strong communication support, state-of-the-art or modern weapons, and a high degree of mobility.

• Even the fund’s allotted face Underutilization.

Law on Torture:  India has only signed the “United Nation Convention on torture” but yet to pass by the Parliament.

• India does not have a specific law for torture.

Political Interference: Police officers are not able to do their work due to the interference of political leaders.

• There is no minimum tenure security for officers at the higher post and not even place posting security.

Promotions and working conditions: Qualifications and training of police personnel are not up to the mark, especially for lower levels of officials.

• The lower ranks of police personnel are often verbally abused by their superiors or they work in inhuman conditions.
• This non-harmonious work environment ultimately affects their relationship with the public.

Way Forward: Seven Directives of the Supreme Court (SC)

• Limit political control: Ensure that the state government does not exercise unwarranted influence or pressure on the police.
• Appoint based on merit: Ensure that the Director-General of Police is appointed through a merit-based, transparent process, and secures a minimum tenure of 2 years.
• Fix minimum tenure: Ensure that other police officers on operational duties (Including Superintendents of Police in charge of a district and Station House Officers in charge of a police station) are also provided with a minimum tenure of 2 years.
• Separate police functions: Separate the functions of investigation and maintaining law and order.
• Set up fair and transparent systems: Set up a Police Establishment Board to decide and make recommendations on transfers, postings, promotions and other service-related matters of police officers of and below the rank of Deputy Superintendent of Police.
• Establish a Police Complaints Authority in each state: At the state level, there should be a Police Complaints Authority to look into public complaints against police officers of and above the rank of Superintendent of Police in cases of serious misconduct, including custodial death, grievous hurt or rape in police custody.
  • At the district level, the Police Complaints Authority should be set up to inquire into public complaints against the police personnel of and up to the rank of Deputy Superintendent of Police in cases of serious misconduct.
• Set up a selection commission: A National Security Commission needs to be set up at the union level to prepare a panel for selection and placement of chiefs of the Central Police Organizations with a minimum tenure of 2 years.

Source: Live Mint

Money Bills vs Financial Bills: What are the Differences, what the Court has ruled

Why in News?

Recently, the dispute over the Kuril Islands between Tokyo and Moscow came up again in the midst of the Russia -Ukraine war.

Background:-

• As Russia’s invasion of Ukraine drags on, Moscow is forced to funnel more and more of its military and economic resources to its western border.
• In Tokyo, conservative voices are hinting that the war could give Japan a chance to take control of what the Japanese call the Northern Territories.

About the Kuril Islands dispute:-

• Historical Background: Soviet forces seized the strategically located Kuril Islands in Russia, in the closing days of WWII.
  • Russia administers all the Kuril Islands.
  • However, Japan considers them as part of its Northern Territories.
  • These are Iturup (Etorofu in Japanese), Kunashir (Kunashiri), Shikotan, and Habomai Islets.
• No Treaty so far: Moscow and Tokyo have held talks about these islets several times in the past but failed to agree on a solution.
  • This led to the two sides never formally signing a peace treaty to end the war.
• China’s interest: There are speculations that China may have a vested interest in taking over the Kuril islands.
• The Kuril Islands would give China access to the Arctic region as well as naval ports directly in the North Pacific.

About the Kuril Islands:-

• The Kuril Islands are a chain of islands stretching from the Japanese island of Hokkaido to the southern tip of Russia’s Kamchatka Peninsula.
• The islands separate the Okhotsk Sea from the North Pacific Ocean.
• The archipelago comprises 22 major islands, 36 smaller islets, and several rocks covering.
• The Kuril Islands are part of the Pacific Ring of Fire, which is a region in the Pacific Ocean that experiences frequent earthquakes and volcanic eruptions.
• Administration: Russia administers all the Kuril Islands as part of its easternmost territory.

Importance of South Kuril Islands:-

Natural resources:

• Rich fishing grounds surround the islands.
• They are thought to have offshore reserves of oil and gas.
• Rare rhenium deposits have been found on the Kudriavy volcano on Iturup.
• Nickel-based superalloys of rhenium are used in the combustion chambers, turbine blades, and exhaust nozzles of jet engines.
• Tourism is also a potential source of income, as the islands have several volcanoes and a variety of birdlife.

Strategic Importance:

• Russia has deployed missile systems in the region. 
• Russia also plans a submarine project and intends to prevent any American military use of the islands.

Cultural Importance:

• The Japanese people, especially conservatives in Hokkaido, are emotionally attached to the islands.

Source: Indian Express

Digital Personal Data Protection Bill 2023: Amid Row, Bill Tabled in Lok Sabha

Why in News?

The Lok Sabha allowed the introduction of the long-awaited Digital Personal Data Protection Bill, 2023, amid demands from opposition parties that the proposed law be referred to a Parliamentary committee.

• The Bill seeks to provide for the protection of personal data and the privacy of individuals. 

Need for Digital Personal Data Protection Bill, 2023:

• Personal data is defined as any data about an individual who is identifiable by or in relation to such data.
• Ministry of Electronics and Information Technology has drafted the Bill to provide guidance and best practice rules for organisations and the government to follow on how to use personal data including – regulating the processing of personal data.
• Applicability –
  • The Bill will apply to the processing of digital personal data within India.
  • It will also apply to the processing of personal data outside India, if it is for offering goods or services or profiling individuals in India.
• Consent –
  • Personal data may be processed only for a lawful purpose for which an individual has given consent. A notice must be given before seeking consent. 
  • Notice should contain details about the personal data to be collected and the purpose of processing. Consent may be withdrawn at any point in time.
  • For individuals below 18 years of age, consent will be provided by the legal guardian.
• Rights and Duties of Data Principal –
  • An individual, whose data is being processed (data principal), will have the right to
    • obtain information about processing,
    • seek correction and erasure of personal data,
    • nominate another person to exercise rights in the event of death or incapacity
• Transfer of Personal Data outside India –
• 
  
  • The central government will notify countries where a data fiduciary may transfer personal data.
  • Transfers will be subject to prescribed terms and conditions.
• Exemptions –
  • Rights of the data principal and obligations of data fiduciaries (except data security) will not apply in specified cases. These include
    • prevention and investigation of offences, and
    • enforcement of legal rights or claims.
  • The central government may, by notification, exempt certain activities from the application of the Bill. These include
    • processing by government entities in the interest of the security of the state and public order, and
    • research, archiving, or statistical purposes.
• Data Protection Board of India –
  • The central government will establish the Data Protection Board of India.
  • Key functions of the Board include
    • monitoring compliance and imposing penalties,
    • directing data fiduciaries to take necessary measures in the event of a data breach, and
    • hearing grievances made by affected persons.
• Penalties –
  • Rs 200 crore for non-fulfilment of obligations for children, and
  • Rs 250 crore for failure to take security measures to prevent data breaches.

Significance of the Bill:

• The Bill frames out the rights and duties of the citizen (Digital Nagrik) on one hand and the obligations to use collected data lawfully of the Data Fiduciary on the other hand.
• The Bill will keep the personal data of a user safe, and give them more liberty on how to port their personal data.
• The bill aims to make entities like internet companies, mobile apps, and business houses more accountable and answerable about collection, storage and processing of the data of citizens as part of "Right to Privacy".

What are the Concerns w.r.t. the Bill?

• Some of the most contentious issues include –
  • Wide-ranging exemptions to the government and its agencies,
  • Dilution of powers of the data protection board,
  • Amendment to the Right to Information Act, 2005.
• The concerns around diluting the RTI Act emanate from the fact that the Bill has a provision to amend the Act that would prohibit sharing of details linked to personal information of government officials.
  • Currently, the exemption only applies when such information does not serve larger public interest.
  • However, the Bill proposes to remove the public interest caveat.
• Also, the Bill overrides Section 43A of the Information Technology Act, 2000 which requires companies which mishandle user data to compensate users.
  • Government sources said this was because “compensation is a judicial process”.

How do Other Countries Regulate Data Privacy?

• About 70% of countries worldwide have some form of legislation for data protection, according to the United Nations trade agency UNCTAD.
• The EU's General Data Protection Regulation, which came into effect in 2018, is claimed to be the "toughest privacy and security law in the world," and seen as the global benchmark.
• Several nations including China and Vietnam have recently tightened laws governing the transfer of personal data overseas.
• Australia in 2018 passed a bill that gave police access to encrypted data.

Conclusion:

• The Bill provides for a legislative backing to the Supreme Court’s landmark judgement in Justice K. S. Puttaswamy (Retd) Vs Union of India Case (2017).
  • A nine-judge bench of the Supreme Court unanimously held that Indians have a constitutionally protected fundamental right to privacy that is an intrinsic part of life and liberty under Article 21.
• By addressing above mentioned concerns, the proposed law can extend substantial rights to individuals and provides them with better visibility, awareness, decisional autonomy and control over their data.

Source: The Hindu

GS-III

Space Junk

Why in News?

The Australian Space Agency has confirmed that a large object found on the shores of Western Australia to be the debris of an Indian Space Research Organisation (ISRO) rocket.

About Space Debris:

• Space debris refers to the artificial objects, including defunct satellites, spent rocket stages, and other man-made objects, that are in orbit around the Earth and pose a risk to operational spacecraft and astronauts.
• Kessler Syndrome: It is a theoretical scenario in which a cascade of collisions between artificial objects in low Earth orbit leads to a rapidly increasing amount of space debris, making the use of near-Earth space impossible for an extended period.
• The scenario was first proposed by Donald J. Kessler in 1978 and is considered a major concern for the long-term sustainability of human activities in space.
• The potential for a Kessler Syndrome event underscores the importance of efforts to reduce the generation of space debris and to mitigate its impact on the operational space environment.

Need for removing space debris

• Protecting Active Satellites: Removing space debris will reduce the risk of collisions with operational satellites, protecting them from damage and ensuring their continued functionality.
• Ensuring Safe Human Spaceflight: Space debris removal will create a safer environment for human spaceflight, reducing the risk of collision and damage to spacecraft.
• Cost-Effective: Removing space debris is more cost-effective than constantly avoiding collisions and repairing or replacing damaged satellites.
• Maintaining the Use of Outer Space: By removing space debris, we can maintain the use of outer space for scientific, commercial, and military purposes, ensuring its continued sustainability.
• Protecting the Space Environment: Removing space debris will help to prevent the long-term impacts on the space environment, reducing the potential for a “debris belt” that could limit future missions.
• Compliance with International Regulations: The need for removing space debris is recognized by international agreements, such as the Outer Space Treaty, which requires the responsible use of outer space and the prevention of harmful interference with other nations’ activities in space.

Causes of Space Debris:

• Satellites that are no longer in use: When a satellite’s batteries run out or it experiences a technical issue, it is left drifting in space.
• Equipment loss: Astronauts occasionally misplace tools or other items while on spacewalks. For instance, in 2008, astronaut Heidemarie Stefanyshyn-Piper misplaced a box of gear.
• Phases of a rocket: Some rocket stages crash to Earth shortly after take-off and are lost in low orbits. The higher ones, however, are left to drift in space and occasionally explode because they still carry fuel leftovers. These explosions result in the production of thousands of fragments.
• Weapons: Both the Soviet Union and the United States tested anti-satellite weapons in the 1960s and 1970s. In 1985, the United States utilized one of these weapons, such as Mission Shakti of India, to destroy a one-ton satellite (Sol wind).
• Impacts of micrometeoroids: Micrometeoroids, which are dust-sized fragments of asteroids and comets, collide and naturally produce some trash.

Measures taken at global:

• Inter-Agency Space Debris Coordination Committee (IADC): IADC is a multilateral organization that was created in 1993 with the aim of coordinating responses to debris in Earth’s orbit.
• NEO-01: The “NEO-01” low-Earth orbit robot prototype has been launched by China.
  • It can gather space trash left over by other spacecraft thanks to its enormous net.
• Kounotori experiment: It is a Japanese experiment that uses an original method to get rid of space junk that is in orbit around the earth.
• Get rid of the DEBRIS mission: This satellite research effort aimed to demonstrate several methods for removing space trash. The Surrey Space Centre from the University of Surrey oversaw the project.
• United Nations Committee on the Peaceful Uses of Outer Space (UNCOPUOS): It was created by the General Assembly in 1959 with the intention of governing space exploration and usage for world peace, security, and economic growth.

India:

• In 2022, ISRO set up the System for Safe and Sustainable Operations Management (IS 4 OM) to continually monitor objects posing collision threats, predict the evolution of space debris, and mitigate the risk posed by space debris.
• ISRO also carried out 21 collision avoidance maneuvers of Indian operational space assets in 2022 to avoid collisions with other space objects.
• ISRO has also set up a Centre for Space Debris Research to monitor and mitigate the threat of space debris.
• ‘Project NETRA’ is also an early warning system in space to detect debris and other hazards to Indian satellites.

Way Forward:

The issue of space debris highlights the need for continued efforts to mitigate and prevent the growth of debris in orbit to ensure the sustainability and safe use of outer space for future generations.

The need to remove space debris is crucial for the continued safe and sustainable use of outer space. Efforts to remove debris should be a priority for the international community to ensure the continued growth and exploration of space.

Source: Indian Express

The Biological Diversity (Amendment) Bill 2021: Why is the Bill Facing Opposition?

Why in News?

The Rajya Sabha passed the Biological Diversity (Amendment) Bill 2021 about a week after it was cleared by the Lok Sabha.

• The Act aims to conserve biodiversity, promote its sustainable use and equitable sharing of benefits that arise therein.

The Biological Diversity Act, 2002:

• The Biological Diversity Act, 2022 provides for the preservation of biological diversity in India and provides a mechanism for equitable sharing of benefits arising out of the use of traditional biological resources and knowledge.
• The Act was enacted to meet the obligations under the Convention on Biological Diversity (CBD), because India is a party of the convention.
• Salient Features of the Act:
  • Defines ‘Biodiversity’ and ‘Biological Resource’:
    • Biodiversity is the variability among living organisms from all sources and includes diversity within species or between species and of eco-systems.
    • Biological resources are plants, animals and microorganisms, their genetic material and by-products (excludes value added products, human genetic material) with actual or potential use or value.
  • Provides for National Biodiversity Authority (NBA) and State Biodiversity Boards:
    • The NBA is a statutory autonomous body, under the Ministry of Environment Forests and Climate Change, established in 2003 to implement the provisions under the Act.
    • State Biodiversity Boards (SBB) have been created in 28 States along with 31,574 Biological management committees (BMCs for each local body) across India.
    • Under the Act of 2002, NBA and SBBs are required to consult the BMCs while taking any decision relating to the use of biological resources.
  • Access and Benefit Sharing (ABS): The provision of ABS of biological resources or associated knowledge is intended to compensate local communities fairly for the use of biological resources conserved by them.
  • Penalties: Any offence under this Act is non-bailable and is cognisable and a violator can be imprisoned for a term up to 5 years or fined up to 10 lakh rupees.

The Biological Diversity Amendment Bill, 2021:

• The need to amend the Act of 2002:
  • Concerns have been expressed by the Ayush medicine sector, seed sector, industry and research sectors.
  • They are urging the government to simplify, streamline and reduce the compliance burden in order to create a conducive environment for collaborative research and investments.
  • They are also demanding to streamline the patent application process.
  • Ayush companies have been requesting to broaden the scope of ABS and to relax its provisions.
• Objectives/Salient Features of the Bill:
  • Reduce the pressure on wild medicinal plants by encouraging the cultivation of medicinal plants.
  • Exempts Ayush practitioners from intimidating biodiversity boards for accessing biological resources or knowledge.
  • Bring more foreign investments in biological resources, research, patent and commercial utilisation, without compromising the national interest.
  • Facilitates fast-tracking of research, simplify the patent application process, decriminalises certain offences.
  • Make violations of the law related to access to biological resources and benefit-sharing with communities as civil offences.
• Significance of the Bill:
  • It will promote “ease of doing business” and the AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy) industry.
• Criticism of the bill:
  • The Bill exempts "codified traditional knowledge" and the AYUSH industry from benefit sharing, denying local communities’ benefits from accessing biological resources.
  • The term "codified traditional knowledge" lacks a clear definition, leading to potential exploitation.
  • The proposed amendments allow for SBBs to represent BMCs to determine terms of benefit sharing, further marginalising BMCs.
  • The proposed Bill comes at a time when the Act hasn’t even been implemented in full.
    • For example, there was no data available on money received from companies and traders for ABS and in cases where money was collected, the same wasn’t shared with local communities.
• Way ahead:
  • The Joint Parliamentary Committee, to which the bill was referred, advised that the penalty structure shouldn't be too generous and should be proportionate to the profits realised by organisations using biological resources.

Source: The Hindu

Why in News?

The central government has placed restrictions on the import of laptops, tablets, and computers with immediate effect. As per the notification, the import would be allowed under a valid license for restricted imports.

Central Idea

• India has imposed restrictions on the import of personal computers, laptops, and other IT hardware from China to promote domestic manufacturing and reduce dependence on Chinese imports. This move is part of the government’s efforts to boost the electronics sector and strengthen India’s self-reliance in the production of IT hardware.

What does the notification for the restriction on imports state?

• Restricted Categories: The notification restricts the import of personal computers, laptops, palmtops, automatic data processing machines, microcomputers and processors, and large or mainframe computers falling under the HSN code 8471.
• Import Against a Valid License: Imports of laptops, tablets, all-in-one personal computers, and ultra-small form factor computers and servers under HSN 8741 will be allowed only against a valid license for restricted imports.
• Exemption for Research and Development: The government has granted exemption from import licenses for imports up to 20 items per consignment used for research and development, testing, benchmarking, evaluation, repair and re-export, and product development purposes. However, these imports can only be used for the stated purposes and not for sale.
• Exemption for Repair and Return: The license for restricted imports is not required for the repair and return of goods that were repaired abroad, as per the Foreign Trade Policy.

China’s Dominance in IT Hardware Imports

• Increase in Electronic Goods Imports:
• India has witnessed a significant increase in imports of electronic goods and laptops/computers in recent years.
• During the April-June quarter, the import of electronic goods surged to $6.96 billion, accounting for 4–7 percent of the overall imports.
• Dominance in the Personal Computers Category:
• Among the seven categories of restricted imports, China holds a substantial share in the personal computer segment, which includes laptops and palmtops.
• In the April-May period, imports of personal computers from China amounted to $558.36 million, representing roughly 70–80 percent of India’s total imports in this category.
• Surge in imports from China:
• While there was a decline in imports from China in the previous financial year, it is crucial to address the sharp surge in imports in the two preceding years (2021–22 and 2020–21).
• In 2021–22, imports of personal computers and laptops from China saw a year-on-year increase of 51.5 percent, amounting to $5.34 billion.
• Similarly, in 2020–21, there was a significant year-on-year increase of 44.7 percent, with imports totaling $3.52 billion.

Reasons behind the restrictions

• Boosting Domestic Production: India aims to strengthen its domestic production capabilities in the electronics sector. By restricting imports, the government wants to push companies to manufacture these goods locally in India.
• Reducing Reliance on China: India has seen a significant increase in imports of electronic goods and laptops/computers from China in recent years. By imposing restrictions, India intends to reduce its reliance on Chinese imports and diversify its sources of electronic products.
• Supporting the PLI Scheme: The move is seen as a direct boost to the Center’s production-linked incentive (PLI) scheme for IT hardware. The restrictions aim to encourage companies to participate in the scheme and invest in local production.
• Addressing Trade Imbalance: India has faced a trade imbalance in the electronics sector with China. By limiting imports, India aims to address this imbalance and potentially improve its trade position.
• Strengthening the Domestic Electronics Industry: The restriction is part of India’s broader strategy to develop and strengthen its electronics manufacturing sector. By promoting domestic production, India seeks to create job opportunities and enhance its industrial capabilities.

Conclusion

• India’s decision to restrict IT hardware imports from China aims to reduce import reliance on a single country. With the right incentives and measures in place, this restriction could pave the way for a robust and competitive domestic IT hardware industry in India.

Source: The Hindu

Why in News?

The Centre has announced its plans to launch a fresh infrastructure investment trust (InvIT) for national highways.

About Infrastructure investment trust (InvIT):-

• An Infrastructure Investment Trust (InvITs) is a Collective Investment Scheme similar to a mutual fund.
• It enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return. ( FPI and InvITs)
• The InvIT is designed as a tiered structure with Sponsor setting up the InvIT which in turn invests into the eligible infrastructure projects either directly or via special purpose vehicles (SPVs).
• Regulated by: SEBI (Infrastructure Investment Trusts) Regulations, 2014.
• An InvIT has four parties namely: Trustee, Sponsor(s) and Investment Manager and Project Manager.
  • While the trustee (certified by Sebi) has the responsibility of inspecting the performance of an InvIT, sponsor(s) are promoters of the company that set up the InvIT.

Types of InvITs

As per current SEBI Regulations InvITs can be divided into 5 key types depending on the types of infrastructure they own or operate:

• Energy such as power generation and distribution.
• Transport & Logisticsg. operating highways and other toll roads
• Communicationsg. optical fiber networks and telecom towers
• Social and Commercial Infrastructure g. parks
• Water and Sanitationg. irrigation networks

From the perspective of the source of funds, InvITs can be of two types:

Privately-Held InvITs:-

• This type of InvIT is not listed on the stock exchange and units of this type of infrastructure trust cannot be bought or sold on a stock exchange.
• All units of this type of unit are held privately by a very limited number of individuals or institutions.

Public-Listed InvITs:-

• After an Infrastructure Trust lists itself on the stock exchange, it is known as a public-listed InvIT.
• Units of a public-listed InvIT can be bought and sold on stock exchanges by retail as well as institutional investors.
• Current SEBI regulations do not require a mandatory listing of InvITs on stock exchanges.

NHAI InvIT:-

• It is the infrastructure investment trust sponsored by the National Highways Authority of India (NHAI) to support the government’s National Monetisation Pipeline (NMP).
• It is a Trust established by NHAI.
• It is under the Indian Trusts Act, 1882, and SEBI (Security and Exchange Board of India) regulations.
• The advantages of an InvIT instrument are that it has stable and predictable cash flows and experienced professionals manage the InvIT, operate, and maintain the roads.

Source: Business Standard