Month: December 2022

Pralay: India’s first tactical quasi-ballistic missile

Post author By balancedreport
Post date December 28, 2022

The Defence Ministry has decided to station surface-to-surface ‘Pralay’ ballistic missiles developed in-house near India’s borders with China and Pakistan.

What exactly are Tactical Missiles?

Short-range missiles are classified as tactical, while long-range missiles are classified as strategic.
A tactical missile is one that is used to destroy tactical enemy targets such as bunkers, mortar positions, artillery positions, and so on.
Battlefield missiles are tactical, whereas long-range missiles aimed at larger targets such as cities are strategic.

These missiles have the following characteristics:

Tactical missiles have a range that is somewhere between long-range rockets and short-range ballistic missiles, with a typical range of 100 to 200 kilometers.
Extreme precision and accuracy: These missiles are extremely precise and can destroy small, steady, and moving targets with pinpoint accuracy.

‘Pralay’ Missile

Pralay is a Hindi word that means “apocalypse” or “great destruction” or “damage”.
The Pralay missile project, which was approved in 2015, is a development of the Prahaar missile programme, which was first tested in 2011.
The DRDO-developed ‘Pralay’ ballistic missile is a tactical, surface-to-surface, and short-range ballistic missile (SRBM) for battlefield use.
It can hit targets from 150 to 500 kilometres away and is extremely difficult to intercept by enemy interceptor missiles.
Pralay is a high explosive preformed fragmentation warhead that weighs between 350 and 700 kg and is powered by a solid fuel rocket motor.
It also accounts for its PCB and RDP (Runaway Denial Penetration Submunitions) (RDPS).

Unique features

Precise targeting: The missile is designed to destroy enemy radar, communication installations, command centers, and airfields.
Quasi Ballistic Trajectory: When an object is shot, it follows a low curved path.
Pralay has the ability to avoid anti-ballistic missile (ABM) interceptors by performing mid-air maneuvers with a maneuverable re-entry vehicle.
Destruction capability: When a high-explosive warhead, such as the one carried by the Pralay missile, explodes, its pieces are thrown at high speeds, inflicting heavy damage.

What makes Pralay lethal?

The Indian missile is similar to China’s Dong Feng 12 and Russia’s Iskander missile, both of which have been used in the ongoing conflict with Ukraine.
The US Army is working to extend the range of a similar short-range ballistic missile known as the Precision Strike Missile (PrSM).
Pralay is lethal because it is a quasi-ballistic weapon, which means that, while it has a low trajectory and is mostly ballistic, it can manoeuvre in flight.
Short-range ballistic missiles, as opposed to intercontinental ballistic missiles, remain within the Earth’s atmosphere.

Way ahead

Pralay, along with the BrahMos supersonic cruise missile, will form the crux of India’s planned Rocket Force — a concept that was envisaged by former Chief of Defence Staff (CDS), the late General Bipin Rawat.
Only conventional missiles would come under the planned Rocket Force as and when it’s ready, while nuclear weapons would continue to be under the ambit of the Strategic Forces Command.

Source: https://m.economictimes.com/news/defence/india-clears-pralay-tactical-ballistic-missiles-for-armed-forces-to-be-deployed-along-china-border/articleshow/96500010.cms

Economics

AVGC-Extended Reality Mission for the Gaming Industry

Post author By balancedreport
Post date December 28, 2022

According to the report of the Animation, Visual Effects, Gaming, and Comics (AVGC) Promotion Task Force, a national AVGC-Extended Reality Mission with a budget outlay is to be created for integrated promotion and growth of the sector.

AVGC

While the word’s etymology refers to everything related to Animation, Visual Effects, Gaming, and Comics, the overarching term refers to all of the sub-sectors that contribute to India’s digital economy.

This includes-

Animation Studios
VFX Studios
Game Development Studios
Platforms
Hardware Manufacturers
Software developers
Virtual Production Studios and many more entities
The sector saw immense growth with technological adoption as is, but it witnessed steep uptake with the onset of the pandemic.

AVGC sector

Emerging sector: The global AVGC industry is worth $800 billion, and the Indian AVGC sector has the potential to capture up to 5% of the global share ($40 billion).
India’s IT prowess: India currently contributes approximately $2.5-3 billion to the estimated $260-275 billion global AVGC market.
Availability of skilled labor: According to industry experts, the Indian market, which currently employs approximately 1.85 lakh AVGC professionals, will grow by 14-16% over the next decade.
Employment generation: Not only does the sector contribute significantly to the economy, but it also creates a plethora of employment opportunities for a variety of skilled sectors, with over 160,000 jobs potentially available each year.

Key recommendations by the task force

“Create in India” campaign focuses solely on content creation
In academic institutions, AVGC accelerators and innovation hubs will be established.
Democratizing AVGC technologies through subscription-based pricing models for MSME, startups, and Institutions; Indigenous technology development through incentive schemes and Intellectual Property creation; and Establishing a dedicated production fund for domestic content creation from across India to promote the country’s culture and heritage globally.
Memorandum of Understanding with developed global AVGC markets such as the United States, Japan, South Korea, and Germany, among others.

Way ahead

Policy vision: Because of the wide range of sub-sectors that are amassing under AVGC’s broad umbrella, a broad vision is required to help further incubate this industry.
Upskilling: The sector requires not only financing and resource allocation, but also education and talent development.
Collaboration: The gaming, VFX, and animation markets, for example, in the United States and South Korea, have been heavily incubated, and are thus at the crest of the wave on a global scale today.

@the end

If given the right environment to grow in, especially one that covers all bases, the Indian AVGC sector has the potential to become the pinnacle of Digital India and the hallmark of the PM’s ‘Brand India’ dream.

Source: https://www.newindianexpress.com/nation/2022/dec/27/avgc-task-force-suggests-measures-to-make-india-animation-gaming-content-hub-2532219.html

International Relations

Understanding Russia through the lens of the Ukraine War

Post author By balancedreport
Post date December 28, 2022

Russia is commemorating two anniversaries: the 100th anniversary of the Soviet Union’s founding and the 31st anniversary of its dissolution. The Soviet Union was established on December 30, 1922, following the Bolshevik Revolution of November 1917. Until December 26, 1991, when it was dissolved.

What does India think of Russia?

Special Strategic Partner: Vladimir Putin’s Russia is still regarded as the Soviet Union’s heir and as a special strategic partner.
The Ukraine war has had little impact on the ties: Putin’s aggression against Ukraine and his brutal bombing of its civilian population, which Moscow claims is an integral part of Russia, has had little impact on how the Indian political classes view the crisis.
Russia as an anti-imperialist power: The Soviet Union has been viewed solely through the ideological lens of progressive politics nationalist, internationalist, communist, and anti-imperialist on the left and center of the Indian political spectrum. That lens, however, is divorced from Russia’s history and the ongoing battle for its political soul.
Russia as a lifelong friend: Within the strategic community, the belief that Russia is India’s “forever best friend” leaves little room for a more nuanced view of Russia’s domestic and international politics.

Russia’s behavior through Russian History

The Bolshevik Revolution: Initially aimed at destroying the Russian Orthodox Church, it was eventually used to deify the Soviet state and lent a religious hue to the claim of Russian exceptionalism.
Alliance with Orthodoxy: Putin has elevated his relationship with the Russian Orthodox Church. Today, the effort to retake Ukraine is considered a “holy war” by Russian nationalists.
After WWII, Soviet Russia insisted that fellow communist states had only “limited sovereignty,” and that Moscow had the right to intervene to keep them on the straight and narrow path of socialism and prevent their destabilization. This impulse drove military incursions into Hungary (1956), Czechoslovakia (1968), and Afghanistan (1979).
Russia has not given up Imperialist tradition: In claiming that Ukraine has no sovereignty of its own, Putin is merely following that imperial tradition as well as the conviction that Ukraine, Belarus and Russian-speaking people everywhere are part of the “Russkiy Mir” or the “Russian world”.
Mao’s assessment of Russia: Mao began to characterize Russia as an “imperial power” after separating from the Russian communists. Mao was well aware of the ongoing conflict between the Chinese and Russian empires.

Analyzing Russia’s internal politics

Weak federalism by Lenin: The founder of the Soviet Union, Vladimir Lenin warned against the dangers of “great Russian chauvinism”. He was adamant about establishing a federal polity with the right of various nationalities to secede.
Strong soviet by Stalin: Stalin, however, turned Russian federalism into a hollow shell and erased the difference between the “Soviet Union” and “Soviet Russia”.
Putin refuses to recognize Ukraine: Putin chastised Lenin for giving Ukraine a separate identity. “Modern Ukraine can rightly be called ‘Vladimir Ilyich Lenin’s Ukraine,” Putin said.
Stalling the democratic process: Moscow’s enduring autocratic impulse, rooted in the stalled democratic revolution. Historically, Russia’s fear of disorder has led to a high level of trust in strong leaders.
The tendency to centralize: The frequent but unsuccessful attempts at political liberalization in Russia have created fertile ground for leaders like Putin to consolidate power, increasing the likelihood of grave miscalculation.

What should India’s policy toward Russia be?

Not criticizing Russia directly: Official India is not blind to the fact that Putin’s “special military operation” has gone horribly wrong, despite its reluctance to directly criticize Russian aggression.
Observing the changing world order: India will inevitably find ways to adjust to the tectonic shifts in the world order caused by Putin’s miscalculation.
Learning from Putin’s blunder: The Indian political and strategic communities must confront the numerous complex factors that contributed to Putin’s egregious mistakes in Ukraine.

@the end

To understand how the Ukrainian conflict will unfold and its long-term implications for India, India’s discourse must pay more attention to Russia’s turbulent history and its troubled relations with its Central European neighbors.

Source: https://www.researchgate.net/publication/361450288_The_Russian-Ukrainian_war_An_explanatory_essay_through_the_theoretical_lens_of_international_relations

Science & Tech

Animal suffering as a result of neurolink

Post author By balancedreport
Post date December 28, 2022

Neuralink, Elon Musk’s medical company, has been accused of causing unnecessary suffering and death to approximately 1,500 animals in just a few years. According to sources, animal testing is moving too quickly, causing unnecessary suffering and death for the animals.

Neuralink company and its objective

The 2016-founded company Neuralink is developing a brain implant that will allow paralyzed people to walk again and cure other neurological conditions.

What Is Neuralink?

A brain implant: Neuralink is a device that will be surgically implanted into the brain using robotics. A chipset known as the link is implanted in the skull during this procedure.
Insulated wires connected to electrodes: It has several insulated wires connected to the electrodes used in the process.
This device can then be used to operate smartphones and computers without the need for human intervention.

The science behind the human brain

Neurons in the Brain: Neurons in the brain transmit signals to cells throughout the body, including muscle, nerve, gland, and other neuron cells.
Each part of the brain performs the following functions: Every neuron is composed of three components: the dendrite, the soma (cell body), and the axon. Each of these parts serves a specific purpose. The signals are received by the dendrite. These signals are processed by the soma. The signals are then transmitted to the other cells by the axon.
Neurotransmitters: Neurons are linked together by synapses, which release neurotransmitters. These chemical substances are then sent to the dendrite of another neuron cell, causing current to flow across the neurons.

Working of Neuralink

Electrodes can read electrical signals: The electrodes in the Neuralink can read electrical signals produced by various neurons in the brain. The signals are then output as an action or movement.
The device is implanted directly in the brain, according to the company’s website, because placing it outside the head will not accurately detect the signals produced by the brain.

What Does Neuralink Do?

In order to operate encephalopathy, Neuralink can be used.
People who are paralyzed can be operated on; it can also serve as a link between the human brain and technology. This means that people who are paralyzed can use their brains to handle their phones and computers.
It will assist people in communicating: Its primary purpose is to assist people in communicating via text or voice messages.
Neuralink has a wide range of applications, including the ability to draw pictures, take photographs, and perform other tasks.

@the end

Despite the fact that the Neuralink innovation is pushing the boundaries of neural engineering, animal cruelty cannot be ignored.

Source: https://www.washingtonpost.com/technology/2022/12/06/elon-musk-neuralink-animal-creulty/

Environment & Biodiversity

What is Purse Seine Fishing?

Post author By balancedreport
Post date December 27, 2022

The Centre has told the Supreme Court that a ban on purse seine fishing imposed by certain coastal states, which is known to harm endangered species, is unjustified.

Purse seine fishing

It surrounds dense shoals of pelagic or midwater fish in the open ocean with a large vertical net, then draws in the edges like a drawstring purse.
A vertical net ‘curtain’ is used to surround the school of fish, with the bottom drawn together to enclose the fish, similar to tightening the cords of a drawstring purse.
It is widely used on India’s western coasts.

The issue

Tamil Nadu, Kerala, Puducherry, Odisha, Dadra and Nagar Haveli, and Daman and Diu Andaman and Nicobar Islands all prohibit this type of fishing within their respective territorial waters of up to 12 nautical miles.
However, states such as Gujarat, Andhra Pradesh, Goa, Karnataka, and West Bengal have not banned purse seine fishing.

Why states are divided over this?

Concerns about the declining stocks of small, pelagic shoaling fish such as sardines, mackerel, anchovies, and trevally on the western coasts have been raised in some states.
The scientific community contends that climatic conditions, including the El Nino phenomenon, are to blame for the ten-year decline in such fish catch.
Fishermen who use traditional methods have blamed the rise of purse seine fishing.
They are concerned that if the ban is lifted, the availability of these small fish will decrease even further.

Centre’s point of view

The Union government’s Fisheries Department has recommended that the purse seine fishing ban be lifted.
The expert panel has said that this mode of fishing has “per se has not resulted in any serious resource depletion so far, given the available evidence”.
It advised purse seiners to fish in territorial waters and the Indian Exclusive Economic Zone (EEZ) under certain conditions.

Way Forward

Purse seine fisheries should have a national management plan.
A partial ban in some states may disadvantage fishermen in other states.

Source: https://www.thehindu.com/news/national/purse-seine-fishing-reveals-faultlines-in-fisher-community/article66301883.ece#:~:text=Purse%20seine%20fishing%2C%20deployed%20widely,cords%20of%20a%20drawstring%20purse.

Environment & Biodiversity

Orans?#

Post author By balancedreport
Post date December 27, 2022

Oran Bachao Yatras are being held in Rajasthan to protect orans, or sacred groves, that are under threat of destruction as a result of land being allotted for renewable energy infrastructure and high-tension power lines.
Orans are Community Conserved Areas that are protected because of their sacred values.
They include woodlots, pastures, orchards, sacred groves, and habitats that are typically centered on water sources such as natural springs, rivulets, or man-made ponds.
In addition, at the heart of an Oran, there is usually a shrine dedicated to a local deity.
Their traditional boundaries are defined by landmarks or geographical landmarks established by indigenous and agro-pastoral communities.
Orans are typically distinguished by a strong community-territory bond and a well-functioning governance system.

Reasons for the Yatra

As small forest patches in the middle of the vast Thar desert, orans, named after local deities and mediaeval warriors, hold religious and social significance.
The natural habitat of India’s most critically endangered bird, the Great Indian Bustard (GIB), a protected species under the Wildlife Protection Act and the State bird of Rajasthan, is also formed by orans.
GIBs have died in recent years as a result of collisions with power lines, making this the most serious threat to the majestic birds.

Historical references

Sacred groves in India are frequently associated with temples, monasteries, shrines, pilgrimage sites, or burial grounds.
Sacred groves are mentioned in Hindu, Jain, and Buddhist texts, ranging from sacred tree groves in Hinduism to sacred deer parks in Buddhism.
Sacred groves are loosely defined as natural habitat that is protected on religious grounds.
Other historical references to sacred groves can be found in Vrukshayurveda, an ancient treatise, as well as ancient classics like Kalidasa’s Vikramuurvashiiya.
Green patches, such as Nakshatravana, are becoming increasingly popular.

Regulation of activities in Sacred Grooves

Within these patches, hunting and logging are usually strictly prohibited.
Other forms of forest use, such as honey collection and deadwood collection, are occasionally permitted on a sustainable basis.
NGOs collaborate with local villagers to protect these groves.
Members of the community have traditionally, and in some cases still do, taken turns protecting the grove.

Threats to such grooves

Urbanization and resource over-exploitation are two threats to the groves.
While many of the groves are revered as the homes of Hindu deities, a number of them have recently been partially cleared for the construction of shrines and temples.

Total grooves in India

Around 14,000 sacred groves have been reported from all over India, which act as reservoirs of rare fauna, and more often rare flora, amid rural and even urban settings.

Experts believe that the total number of sacred groves could be as high as 100,000.

They are called by different names in different states:

Sarna in Bihar
Dev Van in Himachal Pradesh
Devarakadu in Karnataka
Kavu in Kerala
Dev in Madhya Pradesh
Devarahati or Devarai in Maharashtra
Lai Umang in Maharashtra
Law Kyntang or Asong Khosi in Meghalaya
Kovil Kadu or Sarpa Kavu in Tamil Nadu

Source: https://www.thehindu.com/news/national/other-states/225-km-long-yatra-in-jaisalmer-demands-the-protection-of-sacred-groves/article66301741.ece

Environment & Biodiversity Geography

What is a ‘Bomb Cyclone’?

Post author By balancedreport
Post date December 27, 2022

The bomb cyclone continued to wreak havoc as the death toll from weather-related incidents in the United States reached 34, leaving millions without power.

Bomb Cyclone

A bomb cyclone is a large, intense mid-latitude storm with low pressure at its core, weather fronts, and a variety of associated weather, ranging from blizzards to severe thunderstorms to heavy rain.
When its central pressure drops rapidly—by at least 24 millibars in 24 hours—it becomes a bomb.
When a cyclone “bombs,” or undergoes bombogenesis, it indicates that it has access to the best ingredients for strengthening, such as high temperatures, moisture, and rising air.

What is the significance of the term “bomb”?

Most cyclones do not intensify quickly in this manner.
Forecasters are on high alert because bomb cyclones can cause significant damage.

Etymology

The term “bombogenesis” is a combination of the terms cyclogenesis, which describes the formation of a cyclone or storm, and bomb, which is pretty self-explanatory.
When a cold air mass collides with a warm air mass, such as air over warm ocean waters, this can happen.
This rapidly strengthening weather system is formed through a process known as bombogenesis, which results in the formation of a bomb cyclone.

Occurrence

Heat and moisture are abundant over the warmer ocean.
However, as cool continental air moves overhead, creating a large temperature difference, the lower atmosphere becomes unstable and buoyant.
Clouds and precipitation form as air rises, cools, and condenses.
The US coast is one of the most common areas for bombogenesis.
Storms in the mid-latitudes – a temperate zone north of the tropics that includes the entire continental US – get their energy from large temperature contrasts.
During the winter, there is a naturally potent thermal contrast between the cool land and the warm Gulf Stream current along the US East Coast.

Source: https://www.thehindu.com/news/international/historic-bomb-cyclone-freezes-north-america/article66299698.ece#:~:text=A%20bomb%20cyclone%2C%20or%20bombogenesis,AFP

Economics

‘Right to Repair’ Portal unveiled by Consumer Affairs Ministry

Post author By balancedreport
Post date December 27, 2022

The Food and Consumer Affairs Minister unveiled a slew of new initiatives, including a portal for the right to repair.

Right to Repair portal

Manufacturers would share the manual of product details with customers on the ‘right to repair’ portal so that they could repair themselves or by third parties rather than rely on the original manufacturers.
Mobile phones, electronics, consumer durables, automobiles, and farming equipment would be initially covered.

Right to Repair

It refers to proposed government legislation allowing consumers to repair and modify their own consumer products (e.g. electronic, and automotive devices).
The name “right to repair” encapsulates the concept: if you own something, you should be able to repair it yourself or take it to a technician of your choice.
When it comes to older cars and appliances, people are used to this concept, but right-to-repair advocates argue that modern technology, particularly anything with a computer chip inside, is rarely repairable.

Aims:

Repairability: The device should be built and designed in such a way that repairs are simple.
Access to critical components: End users and independent repair providers should have fair market access to original spare parts and tools (both software and physical tools) required to repair the device.
There are no technical barriers: Repairs should be designed to be possible and should not be hampered by software programming.
Effective communication: The manufacturer should clearly communicate the repairability of a device.

How did it come into being?

The average consumer buys an electronic device knowing that it will quickly become obsolete as the manufacturer releases a newer, more powerful version.
As your device ages, problems begin to emerge — your smartphone may slow down to the point of being unusable, or your gaming console may require one too many hard resets.
When this occurs, you are frequently left at the mercy of manufacturers, who make repairs inaccessible and prohibitively expensive.

Why is such a right significant?

Exorbitant repair costs: Manufacturers frequently reduce product durability, forcing consumers to either repurchase the product or have it repaired at exorbitant prices set by the manufacturers.
Lifespan extension: The movement’s goal is to extend the life of products and keep them from ending up in landfills.
Against planned obsolescence: Electronic manufacturers are encouraging this culture so that devices are specifically designed to last a limited amount of time and then be replaced.
Natural resource scarcity: Obsolescence puts enormous strain on the environment and wastes natural resources.
Climate change mitigation: The production of an electronic device is a highly polluting process. It relies on polluting energy sources such as fossil fuels.
Boost to the repair economy: Proponents of the right to repair argue that this will help small repair shops, which are an important part of local economies.

Concerns with obsolete devices

Unfair trade practice: For manufacturers, either of these options is a win-win situation, because both high-priced repairs and new sales mean more profits.
High consumer costs: This frequently leads to higher consumer costs or drives consumers to replace devices rather than repair them.
E-waste generation: The global community is concerned about the ever-increasing size of the e-waste stream.
Recyclability: Up to 95% of the raw materials used to manufacture electronic devices can be recycled, whereas the vast majority of newly manufactured devices use little to no recycled material due to higher costs.

Why do electronic manufacturers oppose this movement?

Apple, Microsoft, Amazon, and Tesla, among others, have been lobbying against the right to repair.
IPR infringement through reverse engineering: Their argument is that opening up their intellectual property to third-party repair services violates their intellectual property rights.
Device safety risks: Amateur repairers may expose themselves to exploitation and jeopardize the safety and security of their devices.
Personal data security: Tesla, for example, has fought right-to-repair advocacy, claiming that such initiatives endanger data and cyber security.
Sheer casualization: The tech giant allows only authorized technicians to repair its devices and does not provide spare parts or DIY repair manuals.

Right to Repair in India

The ‘right to repair’ is not recognized as a statutory right in India, but certain antitrust pronouncements have implicitly recognized the right.
Consumer rights that are required: Monopoly over repair processes violates the “right to choose” recognized by the Consumer Protection Act of 2019.
Agency acknowledgment: The right to repair has also been partially recognized in the country’s consumer dispute jurisprudence.
Maintaining Competition: In Shamsher Kataria v Honda Siel Cars India Ltd (2017), the Competition Commission of India ruled that limiting independent automobile repair units’ access to spare parts was anti-competitive.
A component of consumer welfare: The CCI found that the practice was harmful to consumer welfare.
Recycling legislation: The e-waste (management and handling) rules address not only how to handle waste in an environmentally friendly manner, but also how it is transported, stored, and recycled.

Way ahead

Avoiding blanket waivers: While necessary clauses for product quality can be included, a blanket waiver should be avoided.
The quality assurance clause, for example, can be incorporated for the use of company-recommended spare parts and certified repair shops.
Making the repair manual available: Making repair manuals available to certified business owners could help to balance consumer and manufacturer rights.
Sign a non-disclosure agreement to protect intellectual property rights: Manufacturers can sign a non-disclosure agreement with certified repairers/businesses to protect their intellectual property.
Certification/licensing: Furthermore, repair workers’ lack of certification/licensing is viewed as a reflection of their lack of skills.
Incorporate the right to repair into the Consumer Protection Act: The ‘right to repair’ is implied in Section 2(9) of the Consumer Protection Act of 2019.
Parameter for reparability: Section 84’s product liability clause can be amended and expanded to impose product liability for various reparability parameters of the product.
Product liability duration: The length of time required to impose product liability may vary depending on the product and its longevity.

Source: https://www.thehindu.com/business/consumer-affairs-minister-goyal-unveils-right-to-repair-portal/article66302356.ece

Economics

Investment in Research and development and Research Intensity

Post author By balancedreport
Post date December 27, 2022

Since World War I, the United States has maintained global leadership thanks to an innovative culture supported by a strong research and development foundation (R&D). Based on technology and innovation, China is challenging US leadership. If India wants to be a Vishwa guru, it must invest in research and development.

Innovation and missing R&D Investment

Growth engine: Innovation is rightly recognized as a driver of economic growth.
The government launched the Atal Innovation Mission (AIM) in 2016 to create an ecosystem to promote innovation and entrepreneurship in the country.
Actual expenditure is lower: All of these are positive steps, but the foundation of all of this is how much India actually spends on R&D, both in absolute terms and as a percentage of GDP, in comparison to other G20 countries.
Sustainable Goal: SDG Target 9.5 encourages nations to encourage innovation and significantly increase the number of researchers, as well as public and private R&D spending. The proposed aggregate to quantify a country’s commitment to R&D is gross domestic expenditure on R&D (GERD).

What is the global R&D investment scenario?

UIS (University Institute of Statistics): According to the latest report from UNESCO’s Institute for Statistics (UIS), the G20 nations accounted for 90.6 percent of global GERD (current, PPP$) in 2018.
R&D spending has increased to a record high of approximately 2.2 trillion current PPP$ (2018), while Research Intensity (R&D expenditure as a percentage of GDP) has gradually increased from 1.43 percent in 1998 to 1.72 percent in 2018.
Investment in PPP terms is misleading: Though spending in PPP terms is a reasonable metric for measuring economic welfare when it comes to technological prowess in high-end R&D activities, it all comes down to measuring hard currency in US dollars.

G20 countries’ R&D investment

G20 investment leader: The G20 countries, which will account for 86.2 percent of the global GDP and more than 60 percent of the global population in 2021, are the leaders in every way.
The United States spends the most on research and development (R&D), followed by the European Union ($323 billion) and China ($297.3 billion) in 2018.
India spends nothing: India lags far behind, with a pitiful R&D expenditure of only $17.6 billion in 2018. In terms of their relative shares of G20 R&D expenditure, the US leads with 36%, followed by the EU (20%), and China (3%). (18 percent). In dollar terms, India accounts for less than 1% of G20 R&D expenditure.

Connections between Research Intensity and Expenditure on R&D

Percentage to GDP: While absolute R&D expenditure provides a sense of scale, the percentage to GDP provides research intensity (RI).
South Korea has the highest RI: It is worth noting that, according to the most recent data, South Korea has the highest RI at 4.43 percent, followed by Japan (3.21 percent), Germany (3.09 percent), the United States (2.83 percent), France (2.19 percent), China (2.14 percent), and the European Union (2.14 percent) (2.02 percent). With a RI of 0.65%, India is ranked 17th in the G20 (see infographics).
Israel as an example: Israel is a non-G20 country with the highest RI of more than 5% despite having an R&D expenditure of only $18.6 billion, a population of only 9.3 million, and a per capita income of around $51,430. It’s no surprise that Israel is known for its innovations, whether in defense or agriculture.

Lessons from Israel

Growth and competition in innovation: Israel’s innovation system is a key driver of its economic growth and competitiveness.
The government has taken an active role in financing innovation, particularly in SMEs, as well as in providing well-functioning frameworks for innovation, such as venture capital (VC), incubators, strong science-industry links, and high-quality university education.
India can learn from Israel: Israel makes a strong case that, despite being a smaller country, sustainable growth can be achieved by prioritizing R&D investments. A lesson that India can take.

@the end

India has demonstrated global leadership in the information technology and digital worlds. If it can demonstrate similar breakthroughs in other sectors, it will be able to realize its dream of becoming a Vishwa guru.

Source: https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm

Economics International Relations

India-EU Free Trade Agreement

Post author By balancedreport
Post date December 27, 2022

The third round of free trade negotiations between India and the European Union (EU) recently concluded. The two parties are also negotiating an investment protection agreement (IPA), which will include investment protection standards and an independent dispute resolution mechanism under international law.

Why is the EU pursuing an Investor Protection Agreement?

India’s regulatory issues: Despite the government’s admirable desire to welcome them, foreign investors in India have frequently encountered numerous regulatory issues with the government.
Several foreign corporations, including Vodafone, Cairn Energy, Nissan, White Industries, Telenor, Nokia, and Vedanta, have sued India to enforce their rights under bilateral investment treaties (BITs). This is the primary reason why the EU is seeking an IPA with India.
India’s history of changing laws unilaterally: EU investors are protected by Indian law. However, Indian law can be changed unilaterally to the detriment of the investor.
Slow legal process: The Indian judiciary is excruciatingly slow to resolve disputes. As a result, the desire for international legal protection.

Hurdles in the finalization of INDIA-EU treaty

Non-justiciable tax regulations: India wishes to extend the scope of the treaty’s taxation provisions by making tax-related regulatory measures non-justiciable. Given India’s recent history of tax-related investment disputes with Vodafone, Cairn Energy, and Nissan, the EU finds this proposition difficult to accept.

Two-tier court system: According to the EU’s investment proposal to India, a two-tier court-like system with an appellate mechanism and tenured judges would be established to resolve treaty disputes between investors and the state.
The EU’s MIC proposal is linked to the EU’s international stand for the establishment of a multilateral investment court (MIC), for which negotiations are currently underway at the United Nations Commission on International Trade Law (UNCITRAL). The MIC aims to address the shortcomings of the current arbitration-based system for resolving investor-state disputes.
Lack of clarity on India’s part: India’s stance on establishing an investment court-like system is unknown. India has not publicly contributed to the ongoing UNCITRAL negotiations to establish a MIC.

Issues of MFN and FET

The EU wants MFN status: The EU’s investment proposal includes a most favored nation (MFN) provision to ensure that EU investors are not treated differently than other foreign investors.
India refuses to include MFN: On the other hand, India’s position is that the MFN provision should not be included in its investment treaties due to concerns that foreign investors will use the MFN clause to engage in disruptive treaty shopping. Negotiating for a qualified MFN provision rather than excluding it entirely is the solution to such disruptive treaty shopping.
Fair and equitable treatment: The EU investment proposal includes a fair and equitable treatment (FET) provision, which is absent from the Indian 2016 Model BIT.

Making the state accountable: The FET provision, for example, protects foreign investors by holding states liable if they breach specific assurances made to an investor to induce investments on which the investor relied while making the investment.

IPA: the need of the hour

Overall FDI to India has been stagnant for the past decade, hovering around 2% of GDP. While the EU’s share of foreign investment stock in India increased from €63.7 billion in 2017 to €87.3 billion in 2020, it remains significantly lower than the EU’s foreign investment stocks in China (€201.2 billion) and Brazil (€263.4 billion).
The Negative Effects of BIT Termination: According to recent research, India’s unilateral decision to terminate BITs has had a negative impact on FDI inflows to the country.
IPA required to attract FDI: India requires the IPA with the EU to attract FDI in order to reach the aspirational target of becoming a $10 trillion economy by 2030.

@the end

India must first clean up its own house. The Parliament’s standing committee on foreign affairs has also recommended that India review the 2016 Model BIT.

Source: https://indianexpress.com/article/opinion/columns/india-eu-free-trade-agreement-negotiations-8343807/