What’s in today’s article?

• Why in News?
• Electronics sector in India
• Key highlights of the report

Why in News?

NITI Aayog has released a report titled “Electronics: Powering India’s Participation in Global Value Chains”. Through this report, the Aayog has recommended a slew of measures to help grow India’s electronics sector from $100 billion to $500 billion by 2030.

Electronics sector in India

• Background
  • Presently, India's electronics manufacturing primarily involves the final assembly of electronic goods. 
  • Brands and design firms have started increasingly outsourcing assembly, testing, and packaging tasks to Electronic Manufacturing Services (EMS) companies in India.
  • However, the ecosystem for design and component manufacturing is at a nascent stage.
• Statistics
  • India’s electronics sector has experienced rapid growth, reaching USD 155 billion in FY23. 
  • Production nearly doubled from USD 48 billion in FY17 to USD 101 billion in FY23, driven primarily by mobile phones, which now constitute 43% of total electronics production. 
    • This comprises USD 86 billion in finished goods production and USD 15 billion in components manufacturing.
  • India has significantly reduced its reliance on smartphone imports, now manufacturing 99% domestically.
• Global scenario
  • The global electronics market, valued at USD 4.3 trillion, is dominated by countries like China, Taiwan, USA, South Korea, Vietnam and Malaysia. 
  • India currently exports approximately USD 25 billion annually, representing less than 1% of the global share despite 4% share in global demand.
• Various initiatives by the govt
  • 100% FDI is allowed under the automatic route. 
    • In the case of defence electronics, FDI up to 49% is allowed through automatic route and beyond 49% requires government approval.
  • In order to position India as a global hub for ESDM, various schemes have been released. These include:
    • the Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing;
    • Production Linked Incentive Scheme (PLI) for IT Hardware; 
    • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS); 
    • Modified Electronics Manufacturing Clusters Scheme (EMC 2.0).
  • Additionally, the Semicon India Program with an incentive outlay of $10 Bn was launched with the vision to develop a sustainable semiconductor and display ecosystem in the country. 
    • This program will establish India as global hub for semiconductor and display manufacturing, promote self-reliance, strengthen resilience in global supply chains.
  • Other schemes such as – Digital India, Make In India, Phased Manufacturing Program, Electronic Cluster Manufacturing Scheme, Electronics Development Fund etc. have been launched to support the growth of this sector.
• Challenges
  • Relatively high import tariffs lead to higher costs of input parts, making the assembled product uncompetitive in global market.
    • India currently has one of the most complex tariff structures with multiple tariff slabs at 0%, 5%, 10%, 15% and 20%+, along with variety of surcharges.
    • Not only it increases costs of several sub-assemblies and components, it also leads to misinterpretations and disputes, thereby increasing compliance costs.
• Lack of robust electronics component ecosystem 
  • An ecosystem for high-complexity components such as SMD grade passives, semiconductors etc. does not currently exist.
  • Lack of access to the global demand as it has failed to proactively attract top brands from different electronics segments to establish large-scale operations in India.
• High cost of capital due to India’s relatively high cost of financing, which ranges from 9% to 13%.
  • India’s tariffs are higher than China (4 per cent), Malaysia (3.5 per cent), and Mexico (2.7 per cent).
• Lack of R&D and design ecosystem
• Inadequate infrastructure facilities
• Inadequate talent and skilling

Key highlights of the report

• USD 500 billion in electronics manufacturing by 2030
  • India should aim USD 500 billion in electronics manufacturing by 2030.
    • This ambitious target comprises USD 350 billion from finished goods manufacturing and USD 150 billion from components manufacturing.
  • The report added that such growth would create employment for about 6 million people.
• Projection in a business as usual (BAU) scenario
  • In a BAU scenario, the report noted that the projections indicate India's electronics manufacturing could escalate to USD 278 billion by FY30. 
  • This includes USD 253 billion from finished goods and USD 25 billion from components manufacturing.
• Strategic interventions needed to achieve the goal of USD 500 billion by 2030
  • These include: 
    • promoting components and capital goods manufacturing, 
    • incentivising R&D and Design, 
    • tariff rationalization, 
    • skilling initiatives, 
    • facilitation of technology transfers, and 
    • infrastructure development to foster a robust electronics manufacturing ecosystem in India.
  • The report emphasised scaling up production in established segments such as mobile phones and establishing foothold in component manufacturing.
    • Additionally, it said there should be a strong focus on diversifying into emerging areas such as wearables, IoT devices, and automotive electronics.
  • To enhance competitiveness, India needs to localize high-tech components, strengthen design capabilities through R&D investments, and forge strategic partnerships with global technology leaders, the report noted.
  • The report also identified fiscal support to design-focussed companies alongside easing the process for technology transfer as key to boosting domestic electronics manufacturers’ role in global value chains (GVCs).
  • It also provides suggestions around improving access to skilled labour, by expediting visa approvals for professional visiting for training purposes and setting up Electronics Skill Training Hubs, and easing processes around technology transfer.
  • There is a need to develop a mechanism to fast-track approvals under Press Note 3 (2020) for specific proposals where foreign companies are critical for ecosystem development.
    • Press Note 3 (PN3) of 2020 was a policy amendment issued by the Government of India in April 2020 to regulate foreign direct investment (FDI) in Indian companies. 
    • The note was intended to protect Indian companies from opportunistic takeovers during the COVID-19 pandemic and to ensure national security.

Q.1. What is Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)? 

The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) is an Indian government initiative aimed at enhancing the domestic manufacturing of electronic components and semiconductors. It provides financial incentives for setting up production facilities, fostering innovation, and boosting the industry’s growth and self-reliance.

Q.2. What is Semicon India Program? 

The Semicon India Program is an Indian government initiative to develop a robust semiconductor ecosystem. It offers financial support, infrastructure development, and policy incentives to attract investments in semiconductor manufacturing and design. The program aims to enhance domestic production capabilities and reduce dependency on imports.

Source: NITI Aayog proposes simpler tariffs, fresh incentives to boost electronics sector | PIB | NITI Aayog | Invest India | Money Control

What’s in today’s article?

• Why in News?
• What is Narcotics Control Bureau (NCB)?
• What is Narco-Coordination Centre (NCORD)?
• Fight against drug menace – India’s regulatory framework
• Key highlights of the speech made by the minister

Why in News?

While chairing the 7th apex level meeting of Narco-Coordination Centre (NCORD), Union Home Minister Amit Shah has called for ruthless action against drug smuggling syndicates.

The Minister launched a toll-free helpline called MANAS (Madak Padarth Nishedh Asuchna Kendra) with the number 1933. Along with this, a web portal and a mobile app were introduced to allow citizens to connect with the Narcotics Control Bureau (NCB) 24/7. 

People can use these platforms to share anonymous information about drug dealing and trafficking or to seek advice on issues like drug abuse, quitting drugs, and rehabilitation.

What is Narcotics Control Bureau (NCB)?

• About
  • NCB is the apex drug law enforcement and intelligence agency of India, established in 1986 under the Narcotic Drugs and Psychotropic Substances Act (NDPS Act), 1985. 
  • The NCB is responsible for combating drug trafficking and the abuse of illegal substances.
• Nodal ministry
  • The NCB operates under the Ministry of Home Affairs, Government of India.

What is Narco-Coordination Centre (NCORD)?

• About
  • The NCORD mechanism was formed in 2016 for better coordination between states and Ministry of Home Affairs. 
  • It has been further strengthened through a four-tier system in 2019. 
• Aim
  • NCORD has been established to enhance coordination among various central and state agencies involved in combating drug trafficking and abuse. 
  • It is designed to facilitate better communication, cooperation, and intelligence sharing among law enforcement and drug control agencies. 
• Structure
  • Apex Level NCORD Committee, headed by Union Home Secretary;
  • Executive Level NCORD Committee, headed by Special Secretary, Ministry of Home Affairs;
  • State Level NCORD Committees, headed by Chief Secretaries; and 
  • District Level NCORD Committees – headed by District Magistrates.

Fight against drug menace – India’s regulatory framework

• Article 47 of the Indian Constitution
  • The National Policy on Narcotic Drugs and Psychotropic Substances is based on the Directive Principles, contained in Article 47 of the Indian Constitution.
  • The Article directs the State to endeavour to bring about prohibition of the consumption, except for medicinal purposes, of intoxicating drugs injurious to health.
• Signatory to international conventions
  • India is a signatory to: 
    • the single Convention on Narcotic Drugs 1961, as amended by the 1972 Protocol,the Conventions on Psychotropic Substances, 1971 and 
    • the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988.
• Existing Laws 
  • The broad legislative policy is contained in the three Central Acts:
  • Drugs and Cosmetics Act, 1940, 
  • The Narcotic Drugs and Psychotropic Substances Act, 1985, and 
  • The Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988.
• Institutions involved
  • The Narcotics Control Bureau (NCB) was created in 1986 as a nodal agency to fight against this menace. 
  • Ministry of Health and Family Welfare (MoHFW) and Ministry of Social Justice and Empowerment (MSJE) are involved with alcohol and drug demand reduction policies and drug de-addiction programme.
  • In order to prevent misuse of dual-use drugs, a permanent inter-ministerial committee has been formed with the ministry of health and family welfare and the ministry of chemicals.
• Technological intervention
  • The NCORD portal has been launched as an effective mechanism for information exchange between various institutions/agencies.
  • A toll-free helpline called MANAS (Madak Padarth Nishedh Asuchna Kendra) with the number 1933 has been launched.
• Other measures
  • The government aims to achieve drug-free India by 2047 through a 3 points strategy - strengthening of institutional structure, coordination among all narco agencies and extensive public awareness campaign.
  • As part of this strategy a number of steps have been taken which includes:
    • Establishment of a dedicated Anti-Narcotics Task Force (ANTF) in each state/UTs.
    • High priority to Drug Disposal drive.
    • Launch of NIDAAN Portal for Narco offenders. 
    • Creation of canine squads for drug detection.
    • Strengthening the forensic capabilities.
    • Establishment of Special NDPS Courts and Fast Track Courts.
    • Nasha Mukt Bharat Abhiyan (NMBA) for generating Awareness against drug Abuse.

Key highlights of the speech made by the minister

• Highlighted major challenges posed by synthetic drugs
  • The entire business of such substances is getting linked with terrorism and the money coming from drugs has emerged as the most serious threat to the security of the country.
  • Due to the drugs trade, other channels of economic transactions meant to weaken the economy have also been strengthened. 
    • Many such organisations have been formed that are getting involved not only in drugs trade but also in illegal hawala dealings and tax evasion.
• Maritime routes were being used for smuggling drugs
  • Maritime routes were being used for smuggling drugs thereby threating India’s maritime security as well.
• Need to shift from a "Need to Know" policy to a "Duty to Share" approach
  • The Minister emphasized that agencies should shift from a "Need to Know" policy to a "Duty to Share" approach. 
  • He stated that there should be a strict approach to cutting off drug supply, a strategic approach to reducing demand, and a compassionate approach to minimizing harm. 
  • He highlighted that although these three aspects are different, all must be addressed to achieve success in combating drug issues.
• Drug seizure statistics
  • The Minister said that from 2004 to 2023, 1.52 lakh kg of drugs worth ₹5,933 crore were seized.
  • In the 10 years from 2014 to 2024, this quantity increased to 5.43 lakh kg, which is worth more than ₹22,000 crore.

Q.1. What is Nasha Mukt Bharat Abhiyan (NMBA)?

The Nasha Mukt Bharat Abhiyan (NMBA) is an Indian government initiative aimed at creating a drug-free society. It focuses on prevention, awareness, and rehabilitation programs to reduce substance abuse and addiction. The campaign involves community engagement, educational activities, and support services to promote overall well-being.

Q.2. What is NIDAAN Portal?

The NIDAAN Portal is an Indian government platform designed to streamline and manage the process of drug and substance abuse treatment. It provides a comprehensive database of treatment facilities, rehabilitation centers, and support services, facilitating access to resources and helping individuals seek appropriate care and support.

Source: Amit Shah calls for ruthless action against drugs syndicate | NCB | PIB

What’s in today’s article?

• Why in News?
• Green Revolution in India
• Green Revolution in Maize

Why in News?

• India is a success story of the green revolution in maize driven by the private sector, with maize production having more than tripled over the past 20 years.

Green Revolution in India:

• About:
  • The history of the Green Revolution in India goes back to the 1960s when high-yielding rice and wheat was introduced to increase food production.
  • It was a period during which agriculture in India was converted into a modern industrial system by the adoption of technology, such as
    • The use of high yielding variety (HYV) seeds,
    • Mechanised farm tools,
    • Irrigation facilities,
    • Pesticides and fertilisers.
  • Mainly led by agricultural scientist M. S. Swaminathan in India, this period was part of the larger Green Revolution endeavour initiated by Norman Borlaug -
    • for increasing agricultural productivity in the developing world,
    • by leveraging agricultural research and technology.
• Impact:
  • Crop varieties can be chosen by breeding for a variety of beneficial traits, including high yields, resistance to disease, fertiliser responsiveness, and product quality.
  • It resulted in an increase in food grain production (especially in Punjab, Haryana, and Western UP), reduction in imports (leading to self-sufficient), industrial development, rural employment generation, etc.
• Criticism: Despite its initial success, the Green Revolution was met with much controversy throughout India. This is mainly due to -
  • Increased input cost: This resulted in the indebtedness of the small farmers due to increased borrowing to finance the change from traditional seed varieties.
  • Environmental damage and reduced soil fertility: Due to excessive and inappropriate use of fertilisers and pesticides.
  • Increased regional disparities: This is becausethe green revolution spread only in irrigated and high-potential rainfed areas.
  • Largely limited to wheat and rice.

Green Revolution in Maize:

• Maize crop in India:
  • In India, maize is principally grown in two seasons, rainy (kharif) and winter (rabi).
  • Kharif maize represents around 83% of maize area in India, while rabi maize corresponds to 17% maize area.
  • Among the maize growing countries, India ranks 4th in area and 7th in production, representing around 4% of the world maize area and 2% of total production.
• Maize production in India:
  • There is another less celebrated revolution that has taken place in India.
  • Between 1999-2000 and 2023-24, annual production of maize has more than tripled, with average per-hectare yields rising from 1.8 to 3.3 tonnes.
• Another feature of maize in India:
  • Maize is a fuel crop rather than a feed crop. Less than 25% of the maize produced is consumed directly by humans.
  • An estimated 60% goes as feed for poultry and livestock, which is indirectly consumed as food by households (as chicken, egg or milk).
  • 14-15% of India’s maize utilisation is for industrial purposes. Maize grains have 68-72% starch, and 1-3% of other simple carbohydrates.
  • Starch has applications in the textile, paper, pharmaceutical, food and beverage industries.
  • The usage of maize as a feedstock for ethanol, which is mixed with petrol, is more recent.
• New varieties of maize:
  • The Indian Agricultural Research Institute (IARI) has bred India’s first “waxy” maize hybrid with high starch content, making it better suited for ethanol production.
  • The Mexico-based CIMMYT (International Maize and Wheat Improvement Center) has opened a maize doubled haploid (DH) facility at Kunigal, Karnataka.
    • It produces genetically pure maize that can be used as parents for further crossing and breeding of hybrids.
• What advantage does maize have over wheat and rice?
  • Rice and wheat are resistant to hybridization because they are self-pollinating plants, meaning that both the male and female reproductive organs are present in their flowers.
  • This contrasts with maize, whose ability to cross-pollinate makes hybrid breeding a profitable endeavour.
• Role of private sector in green revolution in maize:
  • More than 80% of India's maize crop is hybridised by the private sector.
  • CIMMYT is sharing its improved inbred lines with both public sector institutions and 25-odd private seed companies.

Q.1. What is the Indian Agricultural Research Institute (IARI)?

The IARI, commonly known as the Pusa Institute, is India's national institute for agricultural research, education and extension. Currently located in Delhi, it is financed and administered by the Indian Council of Agricultural Research (ICAR).

Q.2. What is Green Revolution 2.0?

Green Revolution 2.0 places an emphasis on sustainability by promoting less water-intensive crops, introducing water pricing mechanisms, and addressing unsustainable practices.

Source: The green revolution in maize | ICAR