Weekly Current Affairs (8th to 14th March 2025) - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

District-Level GDP Estimation in India

Why in News?

• India's economic growth has primarily been evaluated through national and state-level Gross Domestic Product (GDP) estimates, often neglecting the contributions from districts, referred to as District Domestic Product (DDP) estimation. Prime Minister Narendra Modi has emphasized that achieving a USD 5 trillion economy requires understanding district-wise contributions and implementing localized development strategies.

Key Takeaways

• Current GDP estimation methods overlook district-level contributions.
• Implementation of district-level GDP data can enhance economic policies and localized development.

Additional Details

• Current GDP Estimation Methodology:India’s GDP is assessed using a combination of top-down and bottom-up approaches, depending on the sector:
  • The primary sector (agriculture, forestry, fishing, and mining) utilizes a bottom-up method, aggregating data from districts.
  • The secondary (manufacturing, construction) and tertiary (services, trade, banking) sectors often follow a top-down approach, distributing national GDP to states and districts based on indicators like employment and infrastructure.
• Limitations:The current methodologies have several drawbacks:
  • They overlook local sectoral strengths, particularly in secondary and tertiary sectors.
  • Economic growth varies across districts but is often assessed generically due to a lack of granular data.
  • Inaccuracies arise from data gaps, particularly in the unorganized sector.
• Challenges in Implementing District-Level GDP Estimation:
  • High reliance on informal labor complicates accurate DDP assessment.
  • Significant investment is needed to establish a robust statistical framework.
  • Fragmented data collection processes hinder consistency and accuracy.
• Benefits of District-Level GDP Estimation:
  • Empowers local administrations for tailored economic strategies.
  • Improves equitable growth by incorporating rural and underdeveloped districts.
  • Facilitates better resource allocation through performance-based grants.

To move forward with DDP estimation, pilot projects in economically vibrant districts should be initiated. Collaboration between states and research institutions is essential to develop localized economic strategies. Strengthening local data collection mechanisms and leveraging digital tools can significantly enhance district-level economic measurements.

India’s Pharma Industry

Why in News?

• The Indian Pharmaceutical Alliance (IPA) has proposed zero customs duty on US medicine imports to prevent reciprocal US tariffs and maintain India's dominance in the American pharmaceutical market.

Key Takeaways

• The US imports USD 9 billion worth of pharmaceutical formulations from India annually, accounting for one-third of India's total pharmaceutical exports.
• A zero-duty policy helps counter and safeguard exports, minimizing import duties on life-saving medicines.
• Amending India's Patents Act, 1970 is a concern as it could restrict reverse engineering and delay generic drug production.

Additional Details

• Importance of US Market: The US market is crucial for India's pharmaceutical industry, making it essential to maintain favorable trade conditions.
• Amending Patent Act, 1970: The US and other western countries urge India to dilute this Act, which currently prevents evergreening of patents, potentially threatening Indian pharma companies.
• India ranks 3rd globally in pharmaceutical production by volume and is the 14th largest in terms of value, supplying over 50% of global vaccine demand and 40% of generic medicines in the US.

India's pharmaceutical sector is valued at USD 50 billion for FY 2023-24, contributing around 1.72% to the GDP, with projections to reach USD 130 billion by 2030. The biotechnology sector is also significant, valued at USD 137 billion in 2022 and aiming for USD 300 billion by 2030.

Growth Drivers

• Affordable Pricing: Indian drugs are significantly cheaper than Western alternatives.
• Government Support: Initiatives like the Production-Linked Incentive (PLI) scheme promote domestic manufacturing.
• Strong R&D Base: India ranks 6th globally in patent applications with 64,480 filings in 2023.
• Increasing Global Demand: Rising chronic diseases and an aging global population fuel the need for cost-effective medicines.

Challenges Facing the Pharma Industry

• Quality Issues: Concerns over the quality of Indian medicines have arisen due to incidents like the Gambia cough syrup deaths.
• Regulatory Hurdles: Compliance with evolving Good Manufacturing Practice (GMP) regulations is costly.
• Dependence on API Imports: India imports 70% of its Active Pharmaceutical Ingredients (APIs), mainly from China.
• Pricing Pressures: Strict price controls under the National List of Essential Medicines (NLEM) affect profitability.
• Global Competition: Rising competition from countries like China, the US, and the EU, along with emerging manufacturing hubs like Vietnam and Indonesia, poses challenges.
• Skill Shortage: There is a lack of trained professionals in biotechnology and drug discovery, affecting global competitiveness.

Way Forward

• Domestic API Manufacturing: Initiatives like PLI 2.0 and bulk drug parks can strengthen API production, ensuring self-reliance.
• Expanding High-Value Drug Markets: Focus on R&D in gene therapies and personalized medicine can open new avenues.
• Enhancing R&D: Providing incentives through tax benefits and public-private partnerships will boost innovation.
• Regulatory & Quality Compliance: Faster approvals for innovative drugs and better drug safety monitoring will enhance consumer trust.
• Global Market Penetration: Expanding exports to Africa, Latin America, and ASEAN through trade deals will overcome barriers and promote growth.

In conclusion, India's pharmaceutical industry is set for significant growth driven by exports, affordability, and government support. However, challenges such as API dependence, regulatory hurdles, and global competition must be tackled. Strengthening R&D, domestic API production, and global market penetration will ensure India's continued leadership in the global pharmaceutical sector.

Mains Question:

• Evaluate India's role as the 'Pharmacy of the World.' What factors contribute to its leadership, and what challenges does it face?

Concerns with Great Nicobar Island Project

Why in News?

• The proposed Rs 80,000 crore mega infrastructure project on Great Nicobar Island (GNI) has raised serious concerns among environmental activists. The project, spearheaded by NITI Aayog, includes a transshipment terminal at Galathea Bay, a greenfield airport, a greenfield township, and a tourism project with a gas-powered plant.

Key Takeaways

• The project will lead to significant deforestation and biodiversity loss.
• It threatens the habitat of endangered species, including the nesting leatherback sea turtle.
• There are legal violations regarding tree felling and lack of tribal consultation.
• The project has strategic and economic significance for India.

Additional Details

• Environmental Concerns: The project will destroy 130 sq km of primary tropical rainforest, leading to biodiversity loss and ecological imbalance. Initial estimates of tree cutting have been found significantly lower than actual numbers, potentially exceeding 10 million trees.
• Impact on Wildlife: The project threatens species like the nesting leatherback sea turtle in Galathea Bay Wildlife Sanctuary, which was designated for conservation in 1997 but was denotified in 2021 for the port development, contradicting India's Marine Turtle Action Plan (2021).
• Compensatory Afforestation Issues: The diversion of pristine Nicobar forests is being compensated by land in Haryana and Madhya Pradesh, which does not replicate the biodiversity lost.
• Legal Concerns: The Supreme Court appointed the Shekhar Singh Commission in 2002, which recommended a total ban on tree felling in tribal reserves and national parks, a rule that is not being followed.
• Lack of Tribal Consultation: The project disregards the rights and survival of indigenous communities like the Shompens, whose existence is deeply tied to these forests.
• Government Stand: The Ministry of Home Affairs cites security concerns to withhold project details, while the Ministry of Shipping promotes high-end tourism, creating a strategic contradiction.

In conclusion, while the Great Nicobar Island Project holds significant strategic and economic promise for India, it raises profound environmental and social challenges that need to be addressed through careful planning and compliance with environmental laws.

Seagrass Conservation

Why in News?

• A recent study published in Nature highlights that seagrasses are experiencing a decline at an alarming rate of 1-2% annually, with nearly 5% of species categorized as endangered due to human activities. This situation underscores the urgent need to protect 30% of seagrass ecosystems by the year 2030 to help preserve marine biodiversity.

Key Takeaways

• Seagrasses are declining globally, necessitating immediate conservation efforts.
• They play a critical role in marine ecosystems and carbon sequestration.
• Human activities, such as pollution and coastal development, pose significant threats to their survival.

Additional Details

• What are Seagrasses?: Seagrasses are submerged, flowering marine plants found in shallow coastal waters like bays and lagoons. They have small flowers and elongated leaves, forming dense underwater meadows.
• Classification: Seagrasses belong to the order Alismatalesand are divided into 4 families comprising around 60 species. Notable species include:
  • Sea Cow Grass (Cymodocea serrulata)
  • Thready Seagrass (Cymodocea rotundata)
  • Needle Seagrass (Syringodium isoetifolium)
  • Flat-tipped Seagrass (Halodule uninervis)
• Key Features: Seagrasses perform photosynthesis, support marine biodiversity, enhance oceanic oxygen levels, and reproduce both sexually (through underwater pollination) and asexually (via rhizomes).
• Threats to Seagrass:Major threats include:
  • Pollution: Industrial and agricultural waste degrade seagrass ecosystems.
  • Coastal Development: Tourism and infrastructure projects disrupt fragile habitats.
  • Climate Change: Rising ocean temperatures and acidification threaten seagrass survival.
  • Weak Enforcement: Existing conservation laws lack strict implementation.

What is the Significance of Seagrasses?

• Carbon Sequestration: Seagrasses store 11% of oceanic organic carbon and absorb approximately 83 million tonnes of atmospheric carbon, sequestering carbon at a rate 35 times faster than rainforests.
• Biodiversity Hotspot: They provide habitat for marine species such as dugongs and green turtles, as well as support commercially important species like squids and cuttlefish.
• Ecological Importance: Seagrass meadows are crucial for around 750 fish species and 121 threatened marine species, contributing to 20% of global fishery landings.
• Coastal Protection: Seagrasses improve water clarity, trap sediments, filter pollutants, and prevent coastal erosion by stabilizing seabeds with their root systems.
• Livelihoods & Fisheries: They serve as safe breeding grounds for juvenile fish and protect marine organisms from strong currents, supporting vital ecosystems for fisheries and global food security.

Way Forward

• Integration into Policy Framework: Seagrass conservation should be embedded in India’s National Biodiversity Action Plan, ensuring policy support, funding, and sustainable management practices.
• Expansion of Marine Protected Areas (MPAs): The coverage of MPAs should be extended beyond the current 2.5% of India’s Exclusive Economic Zone (EEZ) to effectively protect and restore seagrass ecosystems.
• Recognition in Climate Strategy: Seagrass should be included in India’s Blue Carbon Initiative to support climate commitments and carbon neutrality goals.
• Assessment and Global Cooperation: Global cooperation is essential as seagrasses contribute to climate mitigation through carbon sequestration, coastal protection, and biodiversity conservation. The IUCN should assess their status for timely intervention, preventing extinction and enhancing conservation efforts.

In conclusion, seagrass meadows are vital to marine ecosystems, yet they face numerous challenges from human activities. It is imperative to implement effective conservation measures to safeguard these crucial habitats and ensure their sustainability for future generation