Rising Servicification of Manufacturing and Its Impact on Wage Growth
23-02-2025
10:20 AM

What’s in Today’s Article?
- Servicification of Manufacturing Latest News
- Servicification of Manufacturing
- Economic Survey Flags Wage Growth Concerns
- Industry Perspective on Wage Trends
- Call for Balanced Growth
- Servicification of Manufacturing FAQ’s

Servicification of Manufacturing Latest News
- The Economic Survey 2024-25 highlighted that while corporate profits have surged in recent years, wage growth has lagged. However, the president of Confederation of Indian Industry (CII) argued that businesses are regularly increasing salaries.
- He suggested that recent wage trends may not be directly comparable to the past due to the growing servicification of manufacturing, where firms increasingly integrate services with traditional manufacturing, altering employment structures and wage patterns.
Servicification of Manufacturing
- Servification of manufacturing refers to the increasing integration of services with traditional manufacturing processes.
- It involves manufacturers offering value-added services such as maintenance, consulting, customization, and digital solutions alongside physical products.
- This shift is driven by changing consumer preferences, technological advancements, and competitive pressures.
Levels where Servification Takes Place
- Production Stage – Incorporating automation, AI, and data analytics to enhance efficiency.
- Product Enhancement – Bundling services like installation, maintenance, and software updates with products.
- Business Model Transformation – Moving from selling products to offering solutions (e.g., subscription-based models, leasing instead of selling machinery).
Benefits of Servification
- Increased Revenue – Generates new income streams beyond product sales.
- Customer Retention – Enhances customer engagement and loyalty through ongoing services.
- Differentiation – Provides a competitive edge in markets dominated by commoditized products.
- Sustainability – Encourages circular economy practices like remanufacturing and extended product lifecycles.
Challenges of Servification
- High Initial Investment – Requires technological and skill upgradation.
- Complexity in Execution – Managing both manufacturing and service aspects can be challenging.
- Workforce Transformation – Employees need new skills, such as data analysis and customer service.
- Market Adaptation – Customers may be resistant to paying for added services initially.
Economic Survey Flags Wage Growth Concerns
- The Economic Survey 2024-25 highlighted that while corporate profits have surged, wage growth has slowed, potentially dampening demand and economic growth.
- It noted that revenue for 4,000 listed firms grew by 6% in 2023-24, while corporate profits rose by 22.3%, but employment expanded by just 1.5%.
- Wage growth for employees and contract workers has not kept pace with inflation, raising concerns about weakening consumer demand.
Industry Perspective on Wage Trends
- Confederation of Indian Industry (CII) president countered that businesses are regularly revising wages based on inflation and industry benchmarks to retain talent.
- However, he argued that wage comparisons with the past may be misleading due to the increasing servicification of manufacturing, where firms outsource various functions to specialized service providers instead of employing in-house staff.
Impact of Servicification on Employment
- Manufacturing firms now rely more on external agencies for non-core functions like utility management and logistics.
- This shift leads to structural changes in employment patterns, as many workers are now employed by service providers rather than manufacturers directly, making traditional wage comparisons less relevant.
Call for Balanced Growth
- There is an urgent need to balance profitability with wage growth, cautioning that without higher wages, consumer demand may weaken, affecting long-term growth.
- The Economic Survey echoed this, stressing that sustained economic expansion requires stronger employment incomes, which fuel consumption and investment.
Servicification of Manufacturing FAQs
Q1. What is servicification of manufacturing?
Ans. Servicification of manufacturing refers to integrating services like maintenance, consulting, and digital solutions with traditional manufacturing processes.
Q2. What are the 3 P's of manufacturing?
Ans. 3P (aka Production, Preparation and Process) is an event-driven process for developing a new product concurrently with the operation that will produce it.
Q3. What are the three elements of manufacturing?
Ans. The three key elements are materials, labor, and processes, which together define the efficiency and output of a manufacturing system.
Q4. What is the CII (Confederation of Indian Industry)?
Ans. CII is a leading business association in India that promotes industry growth, economic development, and policy advocacy.
Q5. What is the purpose of CII?
Ans. CII works to support industrial competitiveness, economic reforms, and business networking while advocating for policy changes to enhance growth.
The Blocking of Vikatan: Examining Government Censorship and Digital Regulations in India
23-02-2025
12:30 PM

What’s in Today’s Article?
- Tamil Magazine Ban Latest News
- Introduction
- Background
- Legal Basis for Website Blocking in India
- Blocking Mechanism Under Indian Law
- How Vikatan was Blocked
- Implications for Press Freedom and Digital Rights
- Way Ahead
- Conclusion
- Vikatan’s Website Blocking FAQs

Tamil Magazine Ban Latest News
- Recently, a Tamil magazine’s website was blocked by the Department of Telecommunications (DoT) after publishing a controversial cartoon, sparking outrage and legal challenges.
Introduction
- On February 15, 2025, a Tamil magazine Vikatan’s website became inaccessible for many users following a complaint by BJP Tamil Nadu President K. Annamalai to the Ministry of Information and Broadcasting (MIB).
- The complaint was triggered by a cartoon depicting Prime Minister Narendra Modi alongside former U.S. President Donald Trump, referring to the deportation of migrants from the U.S. to India.
- While the Union Government did not officially confirm or deny the website blocking, sources revealed that the Department of Telecommunications (DoT) issued the directive based on MIB’s instructions.
- The incident has sparked a debate on digital censorship and press freedom in India.
Background
- The February 10 edition of Vikatan Plus (the magazine’s digital version) published a cartoon portraying PM Modi in shackles, symbolizing the forcible deportation of Indian migrants from the U.S..
- The BJP’s Tamil Nadu unit viewed the illustration as offensive, prompting Annamalai to demand action. Following the complaint:
- The MIB directed the DoT to block Vikatan’s website, resulting in restricted access on multiple internet networks.
- No official public statement or notice was issued explaining the reason for the blocking.
- The magazine, along with political figures like Tamil Nadu CM M.K. Stalin, condemned the move as an attack on press freedom.
Legal Basis for Website Blocking in India
- The government can legally block websites under Section 69A of the Information Technology (IT) Act, 2000, which allows restrictions in cases of:
- Threat to national security, sovereignty, and public order.
- Defamation or incitement of violence.
- The blocking process is confidential, and affected websites often receive no formal notice.
Blocking Mechanism Under Indian Law
- 2009 IT Blocking Rules
- Ministries or state departments can recommend website blocking to a designated IT officer.
- A review committee decides on the action, and the DoT directs telecom providers to enforce the block.
- 2021 IT Rules (Intermediary Guidelines & Digital Media Ethics Code)
- Empower the I&B and IT Ministries to issue emergency content removal orders.
- Unlike Section 69A, which blocks entire websites, these rules focus on specific content takedowns.
- Since most websites now use HTTPS encryption, blocking individual pages is challenging unless the publisher removes them voluntarily.
How Vikatan was Blocked
- Telecom operators restricted access to Vikatan's website after receiving DoT orders.
- The magazine was not given prior notice, violating the usual 2009 blocking procedure.
- On February 16, Vikatan received a separate notice under the 2021 IT Rules, addressing the cartoon’s content but not the full website block.
- A hearing was scheduled for February 20, where Vikatan defended its case, stating it violates press freedom principles.
Implications for Press Freedom and Digital Rights
- Lack of Transparency in Website Blocking
- No public acknowledgment of the order has been made by the government.
- Blocking orders under Section 69A are confidential, reducing accountability.
- Rising Concerns Over Political Censorship
- Critics argue that website blocking is being used as a political tool rather than for national security concerns.
- Press organizations worry that restrictions on digital media are increasing.
- Press Freedom vs. Government Regulation
- Media houses argue that Vikatan’s cartoon falls under political satire, a protected form of expression in a democracy.
- The government’s broad discretionary powers in blocking websites raise concerns over potential misuse.
Way Ahead
- Need for Greater Transparency
- Experts suggest making blocking orders public and subject to judicial review.
- Affected parties should receive formal notices to present their case before a decision is made.
- Balancing National Security with Press Freedom
- The government must differentiate between genuine security threats and political dissent.
- A clearer framework on digital content restrictions will help avoid arbitrary censorship.
- Strengthening Legal Safeguards
- The Supreme Court may be called upon to define the limits of website blocking, ensuring it aligns with constitutional rights.
- Reforms in IT laws could bring more accountability to the process.
Conclusion
- The Vikatan website block raises important concerns about government censorship, transparency, and press freedom.
- While blocking laws exist to safeguard national security, their application to political content remains controversial.
- Moving forward, greater legal clarity and accountability will be essential to protect both media independence and responsible governance.
Vikatan’s Website Blocking FAQs
Q1. Why was Vikatan’s website blocked?
Ans. The website was blocked after BJP Tamil Nadu’s K. Annamalai complained about a political cartoon featuring PM Modi.
Q2. Under which law can the government block websites?
Ans. Websites can be blocked under Section 69A of the IT Act, 2000, for reasons including national security and public order.
Q3. How does the website blocking process work in India?
Ans. A designated IT committee reviews blocking requests, and if approved, the DoT directs telecom providers to enforce the block.
Q4. What legal options does Vikatan have?
Ans. Vikatan can challenge the blocking order through the review committee or file a petition in the High Court.
Q5. Why is this case important for press freedom?
Ans. The lack of transparency and political nature of the complaint raise concerns about censorship and media independence in India.
Source: TH
Three-Language Policy Controversy: Tamil Nadu vs NEP 2020
23-02-2025
12:20 PM

What’s in Today’s Article?
- Three-Language Policy in NEP 2020 Latest News
- Three-Language Formula in NEP 2020
- Opposition to this Policy in Tamil Nadu
- Perceived Imposition of Hindi
- The Way Forward
- Three-Language Policy in NEP 2020 FAQs

Three-Language Policy in NEP 2020 Latest News
- The Union Government has withheld ₹2,152 crore in Samagra Shiksha funds from Tamil Nadu for refusing to join the PM SHRI scheme due to its opposition to implementing the National Education Policy (NEP) 2020.
- While the State is willing to participate in PM SHRI, it rejects the NEP’s three-language formula, preferring its longstanding two-language policy.
- Centre insists on compliance, citing constitutional alignment, but Tamil Nadu government refuses to yield, calling it “blackmail” and questioning the constitutional basis of such mandates.
Three-Language Formula in NEP 2020
- NEP 2020 retains the three-language formula, originally introduced in the 1968 NEP.
- However, unlike the earlier policy, which mandated Hindi across India, NEP 2020 provides more flexibility without imposing any specific language on States.
Language Flexibility and Choice
- The policy allows States, regions, and students to choose the three languages, ensuring that at least two are native to India.
- This means non-Hindi-speaking States are not necessarily required to adopt Hindi.
Emphasis on Bilingual Education
- NEP 2020 promotes bilingual teaching, encouraging instruction in the home language/mother tongue along with English.
Role of Sanskrit
- The policy highlights Sanskrit as an optional language within the three-language framework, giving it special emphasis.
Opposition to this Policy in Tamil Nadu
- Tamil Nadu has a long history of resisting the imposition of Hindi.
- In 1937, the Justice Party opposed the Rajaji-led Madras government’s attempt to make Hindi compulsory in schools.
- Protests led to the deaths of two activists, Thalamuthu and Natarajan, and the policy was eventually withdrawn.
1965 Anti-Hindi Agitation
- In 1965, violent protests erupted in Tamil Nadu against making Hindi the sole official language, resulting in at least 70 deaths.
- The unrest resurfaced in 1968 when the Parliament mandated Hindi teaching under the three-language formula.
Dravidian Movement’s Stand
- In 1968, the DMK government under C.N. Annadurai passed a resolution rejecting the three-language formula, reinforcing Tamil Nadu’s two-language policy of Tamil and English.
- Since then, successive governments have opposed any changes to this policy.
Recent Opposition and Policy Adjustments
- In 2019, strong resistance from Tamil Nadu led to the removal of mandatory Hindi learning from the draft NEP proposed by the Kasturirangan Committee.
- The State continues to uphold its two-language system, resisting any attempts to introduce Hindi in schools.
Perceived Imposition of Hindi
- Political parties and activists in Tamil Nadu see the three-language policy as a covert attempt to impose Hindi.
- They argue that practical constraints, such as the lack of resources for additional language teachers, would naturally lead to Hindi being the default third language.
Government Actions Fueling Suspicion
- The Union Government’s promotion of Hindi, including a ₹50 crore allocation in 2019 for appointing Hindi teachers in non-Hindi-speaking States, has reinforced concerns.
- Critics point out the lack of similar efforts to promote south Indian languages in northern schools or Kendriya Vidyalayas.
The Way Forward
- A constructive dialogue and a practical compromise between the Centre and Tamil Nadu are essential.
- Education, moved to the concurrent list during the Emergency, requires cooperative policymaking.
- Tamil Nadu’s two-language policy has yielded strong outcomes in enrolment and dropout rates.
- Disagreements over the three-language policy should not obstruct crucial funding for Samagra Shiksha.
Three-Language Policy in NEP 2020 FAQs
Q1. What is the main aim of NEP 2020?
Ans. NEP 2020 aims to transform education by emphasizing flexibility, holistic development, skill-based learning, and multilingualism in schools.
Q2. What is the meaning of 5+3+3+4 in the new education policy?
Ans. It refers to the new school structure: 5 years of foundational, 3 years of preparatory, 3 years of middle, and 4 years of secondary education.
Q3. What are the 4 pillars of NEP?
Ans. The four pillars are Access, Equity, Quality, and Affordability, ensuring inclusive and high-quality education for all students in India.
Q4. What is the three-language formula in the education policy?
Ans. It requires students to learn three languages, with at least two being Indian, offering flexibility in language selection by States.
Q5. What is mother tongue education in NEP 2020?
Ans. NEP 2020 promotes mother tongue-based education, encouraging early schooling in home languages for better comprehension and cognitive development.
Regulating Digital Content - Need for a New Legal Framework
23-02-2025
12:50 PM

What’s in Today’s Article?
- Regulating Digital Content in India Latest News
- Concerns Over Digital Content Regulation
- Existing Legal Framework
- Government Response to Concerns Over Digital Content Regulation
- Challenges in Regulation
- The Role of Youtube and Social Media Intermediaries
- Conclusion
- Regulating Digital Content in India FAQ’s

Regulating Digital Content in India Latest News
- The Indian government is examining the need for a new legal framework to regulate digital platforms amid concerns over violent and obscene content.
- The move comes in the wake of the Ranveer Allahbadia controversy and broader societal concerns regarding the misuse of the right to freedom of expression.
Concerns Over Digital Content Regulation
- The Union Information and Broadcasting (I&B) Ministry stated that the Supreme Court, multiple High Courts (HCs), MPs, and statutory bodies like the National Commission for Women have raised concerns regarding harmful content.
- For example, the SC granted Ranveer Allahbadia protection from arrest but strongly criticized his comments.
- The ministry acknowledges increasing public demand for stricter laws against harmful content on digital platforms, and is currently assessing the need for amendments or a new legal framework.
Existing Legal Framework
- The I&B Ministry has been reviewing statutory provisions and considering the need for a new regulatory framework.
- Existing regulations include:
- The Intermediary Guidelines and Digital Media Ethics Code (IT Rules, 2021): Mandate self-regulation and content classification.
- Indecent Representation of Women Act, 1986: Prohibits obscene depiction of women.
- Bhartiya Nyaya Sanhita (BNS), 2023: Contains provisions against obscene content.
- Protection of Children from Sexual Offences (POCSO) Act: Protects children from exposure to harmful content.
- Information Technology (IT) Act, 2000: Addresses publication of obscene or pornographic material.
- Recent government directives include:
- The I&B Ministry has asked social media channels and OTT platforms -
- To follow the Code of Ethics prescribed in the IT Rules 2021, and
- Implement “access control for A-rated content” to prevent children from consuming inappropriate material.
- The OTT platforms must not transmit any prohibited content and undertake age-based classification of content.
- The I&B Ministry has asked social media channels and OTT platforms -
Government Response to Concerns Over Digital Content Regulation
- The Standing Committee on Communications and Information Technology, led by BJP MP Nishikant Dubey, has sought clarification on necessary amendments to existing laws.
- The Ministry of Electronics and IT has been asked to assess the efficacy of existing laws and propose amendments to the IT Act, 2000.
Challenges in Regulation
- OTT platforms and social media currently lack a clear regulatory framework.
- The IT Rules, 2021, require a three-tier grievance redressal mechanism:
- Level 1: Self-regulation by the platform.
- Level 2: Industry-wide self-regulation.
- Level 3: Government oversight.
- This mechanism has been challenged in various HCs, with the Bombay and Madras HCs staying its enforcement.
- The Kerala HC has restrained coercive action over non-compliance with (Part III of) the IT Rules 2021.
- Over 15 petitions have been filed against these rules, and the SC has transferred all cases to the Delhi HC for a consolidated hearing.
The Role of Youtube and Social Media Intermediaries
- YouTube is regulated under the IT Rules but is not liable for user-generated content unless it violates government directives.
- Unlike traditional publishers, YouTube functions as a social media intermediary and has limited accountability for content uploaded by individual users.
- New media services like OTT platforms and YouTube currently operate without a specific regulatory framework, increasing demands for legal amendments.
Conclusion
- The debate over digital content regulation highlights the tension between freedom of expression and the need for responsible content dissemination.
- While there have been concerns regarding content censoring for extraneous reasons, the government is actively reviewing laws to create a more structured and enforceable legal framework for digital platforms.
- Judicial scrutiny and public discourse will play a key role in shaping the future of digital content regulation in India.
Regulating Digital Content in India FAQs
Q1. What is the primary concern driving the need for a new legal framework for digital content regulation in India?
Ans. The primary concern is the increasing misuse of the constitutional right to freedom of expression to showcase obscene and violent content on digital platforms.
Q2. What are the key legal provisions currently governing digital content in India?
Ans. Digital content is governed by the IT Rules, 2021, the Indecent Representation of Women Act, 1986, the Bhartiya Nyaya Sanhita (BNS), 2023, the POCSO Act, and the IT Act, 2000.
Q3. How does the IT Rules, 2021, regulate content on OTT platforms and social media?
Ans. The IT Rules, 2021, mandate a three-tier grievance redressal mechanism, require age-based classification of content, etc.
Q4. What challenges exist in regulating digital platforms like YouTube and OTT services?
Ans. Challenges include the absence of a specific regulatory framework, resistance from platforms advocating for self-regulation, the evolving nature of digital content, etc.
Q5. What is the Supreme Court’s stance on digital content regulation in the context of the Ranveer Allahbadia controversy?
Ans. The SC granted Allahbadia protection from arrest but strongly criticized his comments, urging the government to take steps to regulate obscene content.