TTBR (Topics To Be Read) 29 February 2024

Today's Topics To Be Read (TTBR)

1 Supreme Court slams Patanjali (The Tribune)

2 Enforcing new set of criminal laws poses challenges (The Tribune)
3 Gaganyaan: Sky’s not the limit (Indian Express)
4 Why India’s youth chasing the sarkari naukri (Indian Express)

5 AI, sovereignty and Isaac Asimov’s warning (Indian Express)

6 Lives and livelihoods: On perils and the Indian emigrant (The Hindu)
7 Strength vs reason: On legislation and reservation to certain social
groups (The Hindu)
8 India’s fight against rare diseases (The Hindu)
9 Household consumption lagging GDP, needs course correction
(Financial Express)
10 Liberalised FDI can turn India into a global space hub (Business Line)

11 Welfare schemes are here to stay (Business Line)

TTBR (Topics To Be Read) 29 February 2024

Supreme Court slams Patanjali (The Tribune)

Principle of integrity in advertising upheld

IN a scathing indictment of Patanjali Ayurved’s advertising practices through which the

‘entire country is being taken for a ride’, the Supreme Court on Tuesday issued
contempt notices to the company and its Managing Director, Acharya Balkrishna.
Stemming from a petition by the Indian Medical Association, the case highlights the
menace of misleading advertisements, which continue unabated despite previous
warnings to the company. The SC had in November warned Patanjali that a fine of Rs
1 crore would be imposed per product if a false claim was made regarding its efficacy
in curing a particular disease. The court also restrained the firm from advertising
products intended to treat specific diseases listed under the Drugs and Magic
Remedies (Objectionable Advertisements) Act, 1954. The message is loud and clear:
deceptive advertising aimed at increasing commercial gains will not be tolerated,
especially in the critical field of healthcare. Such measures are crucial to preventing
erosion of public trust.
The SC has cautioned the firm against making adverse statements about other systems
of medicine. Underpinning the significance of strict enforcement of rules, the court
has also rightly questioned the functioning of the regulatory bodies and government
agencies concerned. The clarification sought by the court on the action taken by the
Centre under various laws should help in exposing the gaps in the implementation of
policies intended to uphold advertising standards.
The SC’s firm stance sets a precedent for accountability in the health sector and
reaffirms the principle that commercial interests must not eclipse public welfare.
Those who indulge in unethical practices must face the consequences of their actions.
It is hoped that intense judicial scrutiny will finally prompt the serial offenders to mend
their ways.
TTBR (Topics To Be Read) 29 February 2024

Enforcing new set of criminal laws poses

challenges (The Tribune)

Assistance and allocation of funds by the Centre will be a crucial factor

in determining the pace of implementation of the statutes.

THE Union Government has issued a notification to enforce the Bharatiya Nyaya
Sanhita (BNS), Bharatiya Nagarik Suraksha Sanhita (BNSS) and Bharatiya Sakshya
Adhiniyam (BSA) with effect from July 1. It is obvious that laws do not become
operational in a vacuum. It requires a lot of preparation, including the creation of
infrastructure and a framework for the rules, operating procedures, forms and
formats. It needs to be examined how far the system is ready to give effect to the new
penal statutes.
The criminal laws have been overhauled with the aim of meeting the demands of
nyaya (justice) and nagarik suraksha (citizens’ security). Political rhetoric apart, the
proverbial devil lies in the details, especially with regard to enforcing the legislation.
The new set of laws is said to be prospective in operation. Consequently, pending
investigations and trials on the date of commencement would continue to be
conducted as per the old procedures. It means that two parallel sets of laws would
remain in force until the pending proceedings are concluded. This aspect alone has
major implications and requires meticulous planning.
Professionals who are part of the criminal justice system, namely lawyers, police
officials, prosecutors and judges, have to study and practise both the old and new sets
of laws for at least a decade. Accordingly, the syllabus of law degree courses is to be
modified and law books revised. Though investigators, prosecutors and judges are
being trained under government-sponsored programmes to implement the new
statutes, the training of lawyers has taken a back seat so far.
TTBR (Topics To Be Read) 29 February 2024

Besides training, it is imperative to frame new rules and revise the existing forms and
operating procedures. Incorporating corresponding amendments in the relevant
software and special laws is equally important. Many states have introduced
amendments to the existing criminal procedures as per local needs. Inserting the same
provisions in the BNSS would take time as it can be done only with the President’s
assent. This process has not yet started in many states.
The procedural law contained in the BNSS has several provisions related to nyaya and
suraksha, including the use of digital technology, community service, victim
protection, trial in absentia, mandatory visit of forensic experts at the scene of the
crime, time-bound disposal of case properties and videography of investigation
processes. It would not be possible to give effect to these reform-oriented provisions
unless the required infrastructural support systems and operational protocols are in
place. It also calls for recruitment and training of the staff.
Several provisions of the BNSS cannot be put into practice unless relevant guidelines
are formulated. Monitoring is required to examine the progress on this front. In order
to bring in uniformity and procedural integrity, mobile phones are to be provided to
investigating officers and magistrates for videography. The record-keeping assigned to
designated police officers needs to be standardised. The protocol to serve summons
and warrants through electronic means and documentation must be institutionalised.
Rules to provide for attachment of proceeds of crime and its distribution among the
victims should also be formalised.
Provisions relating to mandatory visit of forensic experts at the scene of the crime in
heinous cases entailing punishment of more than seven years would require adequate
manpower and infrastructure. It would be difficult for the states to create these
facilities from their own resources. The witness protection scheme and rules to
enforce the community service sentence are to be standardised and notified.
Besides the issues of infrastructure development and human resource training, there
are administrative and managerial problems which require immediate attention.
Almost all police stations in the country are connected with the Crime and Criminal
Tracking Network and Systems (CCTNS) to access and share workable information with
stakeholders. Upgrade of the CCTNS and other software having an interface with
different wings of the justice delivery system and governance, including courts and
prisons, would be a big challenge as two parallel systems have to operate side by side.
This task requires close coordination between Central and state agencies.
Collection, compilation, comparing and sharing of data related to crimes and criminals
are the key to ensuring optimum use of manpower and resources for effective policing.
The National Crime Records Bureau is performing this task by publishing a report,
Crime in India, every year. Till the pending cases are concluded, the NCRB has to
TTBR (Topics To Be Read) 29 February 2024

prepare two reports comparing crime figures of both the old and new systems.
Extrapolation of statistics of different origins is going to be a Herculean task.
The majority of the states are not financially sound. Assistance and allocation of funds
by the Centre is going to be a crucial factor in determining the pace of implementation
of the statutes. It is desirable that the Union Government take the lead in identifying
areas where states need support and intervention. It is a given that states cannot tread
this tricky path without handholding by the Centre.
The Centre should constitute dedicated teams for each area of concern to guide the
states in removing bottlenecks in the implementation of the new statutes. At the same
time, steps taken by the states towards enforcement also need a periodic review and
stock-taking. Haphazard initiatives taken by states would only create confusion and
complicate the transition process.
KP Singh, Former DGP, Haryana

Gaganyaan: Sky’s not the limit (Indian Express)

With announcement of astronaut-designates for Gaganyaan, ISRO is a

step closer to made-in-India human space flight. It should not stop there

Preparing to join their names in history books with Rakesh Sharma, the air force
captain who became the first Indian in space in 1984, are Group Captain Prasanth
Balakrishnan Nair, Group Captain Ajit Krishnan, Group Captain Angad Pratap, and Wing
Commander Shubhanshu Shukla — the astronaut-designates for India’s first human
space flight mission, Gaganyaan. Having trained in anonymity for the last four years,
they received their “astronaut wings” on February 27 at the Vikram Sarabhai Space
Centre in Thumba, Kerala, from Prime Minister Narendra Modi, who described them
as “the four forces” representing the dreams of 1.4 billion Indians. What may have
seemed like a dream almost too big, has acquired a human dimension.
TTBR (Topics To Be Read) 29 February 2024

Announced in 2018, Gaganyaan is one of India’s most ambitious space programmes.

The task of sending humans into the vast unknown and bringing them back safely is
more expensive and challenging than the Mars and Moon missions. A successful
execution would put India in the company of the US, Russia and China. As stated on
the ISRO website, the short-term goal is to demonstrate human spaceflight to Low
Earth Orbit, while the long-term goal is to lay the foundation for a “sustained Indian
human space exploration programme”. Success in its ultimate objective — proving
that India is capable of indigenously developing this complex technology — would be
a huge boost for ISRO.
The excitement around Gaganyaan is not only a sign of how much ISRO’s public profile
has grown over the last few years, but also the increasing reach and scale of its
ambitions. The success of recent missions like Mangalyaan and Chandrayaan, while
exhilarating in themselves, can become the start of something larger. The
demonstrations of technological capabilities must be built on, if India wishes to
eventually operate in the same league as the US or China. This can only happen if these
successes help move towards an ecosystem that is able to compete with the most
advanced. Opening up of the sector to private parties and allowing 100 per cent
foreign direct investment are steps in the right direction. Indeed, a similar ambitious
thrust is needed across sectors of scientific research. On several indicators, such as the
share of GDP spent on research and development, nurturing universities to be centres
for R&D and number of patents filed, India lags woefully. If putting Indians in space
using made-in-India technology will be a dream come true, making Indian science and
technology competitive at the highest level will mean the realisation of many more.
TTBR (Topics To Be Read) 29 February 2024

Why India’s youth chasing the sarkari naukri

(Indian Express)

It isn't the money but perks, respect and job security that drives people
to seek public sector employment

In some 40 years of teaching postgraduate students, discussions have always veered

towards their aspirations. Invariably, all of them hope to get into some regular
government employment. The certainty of having a wage through their entire working
life seems to be most attractive to them. Associated with this are other unstated
benefits of a government job, which come by way of access to good and cheap
healthcare, subsidised housing and a belief that such a job provides access to power.
The ones who could not land a government job often felt genuinely disheartened.
Those who did get into government employment would complain that they were
underpaid. To make sense of these moans and groans from the young, we checked out
the details about earnings that are available in the Periodic Labour Force Survey (PLFS).
It has been carried out every year since 2017-18 and covers over 4,00,000 people in
roughly 1,00,000 households.
Just about 11 per cent earn enough to be able to pay income tax. Among those who
do earn, about 57 per cent are self-employed, 21 per cent earn a wage or salary and
22 per cent earn episodically from casual labour. The number of those employed in
government service is 9 per cent and 12 per cent are in private employment. The
average income of a salaried employee in India is about Rs 20,000. The average income
of someone self-employed is about Rs 13,347. Digging deeper into the data shows how
this income varies across different income groups.
Among the lowest three deciles of all earners, income from wage or salaried
employment far outstrips income through self-employment. Similarly, among the big
earners, the ones who are part of the top two decile of income earners in India, (once
we exclude the outliers such as those earning more than Rs 8,00,000 per month),
TTBR (Topics To Be Read) 29 February 2024

working in a salaried job brings in more income than does having a business. It is only
in the two highly urbanised states of Delhi and Goa that the self-employed earn more
than the salaried. At the other end of the spectrum are small enclaves like Puducherry,
Ladakh and the North Eastern states where salary earners make more money than the
self-employed do.
In other states, broadly speaking, in money terms, for the bottom deciles where
monthly income is in the range of Rs 4,000 to Rs 10,000, the salary earners make more
money than the self-employed do. For monthly incomes in the range of Rs 11,000 to
Rs 25,000, the self-employed earn more. And for monthly incomes above Rs 25,000 in
general, it is the salary earners who earn more money.
States show significant variation in the numbers. Punjab, for instance, is the only state
where the average earning for farmers is similar to others who are self-employed. The
monthly middle income for farmers in Punjab (the value that divides the group into
two halves) is Rs 15,000, which is the same as for others who are self-employed.
However, in Punjab, traders earn more than farmers. For monthly incomes between
Rs 4,000 to Rs 22,000, the self-employed earn more money than wage/salary earners.
For the lower deciles, both groups earn similar incomes which is also unique.
In Tamil Nadu, for the lowest three deciles with incomes below Rs 14,000 per month
and also for the highest three deciles with incomes more than Rs 22,000 per month, it
is the salary earners who earn a higher income than the self-employed. For the middle
four deciles, the self-employed earn more. The median income that divides the values
for self-employed into two halves is Rs 15,500. The self-employed who are engaged in
manufacturing activity, earn about 55 per cent of this, which is Rs 8,550. In most states,
incomes for the self-employed in manufacturing are considerably lower than what the
self-employed engaged in trade or construction earn.
Are government salaries disproportionately high? What seems to make government
service so attractive is the availability of various facilities for health, housing, education
and transport. Everyone else, irrespective of their income level has to bear a
disproportionately high cost to access analogous facilities.
If the government were to provide equitable access to good and reliable facilities in
education, health, housing and public transportation for all people at nominal rates or
free of cost, it would go a long way to make self-employment an attractive option.
After all, we already have the experience of how much the government helped people
during Covid times when it provided free grain.
The writer M. Rajivlochan teaches history at Panjab University, Chandigarh
TTBR (Topics To Be Read) 29 February 2024

AI, sovereignty and Isaac Asimov’s warning

(Indian Express)

From democracy to arms race, artificial intelligence poses significant

risks. The world urgently requires a robust global AI governance body to
ensure that AI advancements serve humanity

Isaac Asimov’s classic I, Robot (1950) insightfully explored the ethical and moral
implications of robotics and artificial intelligence. The book’s interconnected stories
about robots guided by the Three Laws of Robotics highlight the challenges in ensuring
AI’s safety and alignment with human values. Asimov illustrates the limitations of
these laws and AI’s unpredictable nature, with quotes like, “You can’t argue with a
robot. They’re terribly rational”, reflecting concerns about AI acting against human
interests. The book forces one to ponder about the dangers of AI being manipulated
by adversaries, potentially turning against humans. As a fictional yet prescient work, I,
Robot underscores the importance of ethical standards and security measures in AI
development to prevent it from undermining national sovereignty.
Since algorithms are devoid of national allegiance or moral judgement, the challenge
before the world is not just to develop this technology but to develop the frameworks
to ensure it serves humanity and not the other way around. The lack of a unified global
framework for overseeing AI, coupled with the absence of national-level regulatory
measures, poses a significant risk to national security and sovereignty in four distinct
ways.
First, AI is reshaping traditional notions of sovereignty, challenging the power
dynamics between states, private technology companies, and individuals. As AI
systems become more autonomous, they are creating new digital spaces that are not
governed by traditional laws or state control. These digital spaces, defined by code
and data, can be seen as new forms of sovereignty where power is wielded by those
who control the AI systems.
TTBR (Topics To Be Read) 29 February 2024

The emergence of AI has ushered in a new era of digital sovereignty, fundamentally

altering the concept of territorial sovereignty. This transition impacts how nations
control their digital domains and AI technologies. Countries lacking in AI development
and regulation may find themselves reliant on more advanced nations, risking their
sovereignty across sectors like defence, infrastructure, and healthcare. Additionally,
the rise of AI shifts power from states to private tech companies and individuals who
dominate these digital spaces. Though these entities don’t possess traditional
sovereignty, their influence challenges state authority and could reshape global
political dynamics.
Second, AI has the potential to significantly impact democracy, particularly when
leveraged by foreign powers. It can be used to manipulate information and influence
public opinion, which is a critical aspect of democratic societies. For example, AI can
generate disinformation and misinformation at scale, which can trigger tensions and
even electoral-related conflict and violence. Such AI-driven false information can
spread biases or opinions that do not represent public sentiment, thereby affecting
the democratic process negatively.
Moreover, foreign powers can utilise AI to conduct influence campaigns that are more
sophisticated and less detectable. These campaigns can exacerbate divisions within
societies, seed nihilism about the existence of objective truth, and weaken democratic
systems from within. The borderless nature of AI makes it difficult to control or
regulate, and as AI technology becomes more advanced, it could be used by
authoritarian regimes, terrorist groups, and organised crime groups to cause great
harm.
Third, Lethal Autonomous Weapons Systems (LAWS), often termed “killer robots”,
present a profound threat to national security and sovereignty, raising critical ethical
and technical challenges. From a technical standpoint, LAWS, equipped with advanced
AI algorithms, can independently search for, identify, and engage targets without
human intervention. This capability poses a risk of unintended escalation in military
conflicts, as these systems might act based on pre-programmed criteria, lacking
human judgement and context awareness, potentially leading to indiscriminate or
erroneous targeting. Moreover, the risk of hacking or malfunctioning of these systems
could result in catastrophic incidents, undermining national security.
Ethically, the deployment of LAWS challenges the fundamental principles of
humanitarian law and responsibility. The absence of human oversight in the decision-
making process of life and death raises significant moral questions about
accountability. The principle of distinction, a cornerstone of international
humanitarian law, mandates the differentiation between combatants and non-
combatants. LAWS, reliant on algorithms for decision-making, may lack the nuanced
TTBR (Topics To Be Read) 29 February 2024

understanding necessary to make these distinctions, risking civilian lives and violating
international norms.
The proliferation of LAWS could lead to an arms race, destabilising international peace
and security. As these weapons become more accessible, the barrier to entering
conflicts lowers, potentially leading to increased warfare and undermining national
sovereignty. The lack of regulation and control over LAWS also presents a threat to the
global order, as non-state actors might acquire and use these systems for terrorism or
insurgency. This autonomy undermines deterrence theory, which relies on rational
human actors to maintain balance and avoid conflict through the threat of retaliation.
The unpredictability of LAWS disrupts this balance, potentially leading to uncontrolled
escalations. Furthermore, the prospect of an arms race in autonomous weapons
technology threatens global stability as nations prioritise technological advancement
over diplomatic and strategic equilibrium.
Fourth, the integration of AI into cybersecurity represents a dual-edged sword, where
its potential for sophisticated cyberattacks directly threatens national security and
sovereignty. AI-enhanced methods, such as advanced persistent threats and spear
phishing, can penetrate and disrupt critical national infrastructures, undermining the
stability and functioning of a state. Such disruptions not only pose immediate security
risks but also threaten the economic and social well-being of nations. These threats
extend beyond physical borders, as cyberattacks can originate from any location,
making safeguarding national interests in the increasingly interconnected digital world
challenging. The implications for national security are profound, requiring nations to
reassess their cybersecurity strategies and invest in advanced defences. Safeguarding
against these AI-enhanced threats is crucial for maintaining national sovereignty,
ensuring that states retain control over their critical infrastructure, information
systems, and the democratic processes that define their governance.
In light of these challenges, it becomes evident that the world urgently requires a
robust global AI governance body. Such an entity is essential to ensure that AI
advancements serve humanity’s broader interests, rather than the contrary. Alongside
this, there is a critical need for evolving national-level regulations tailored to address
AI’s unique threats to sovereignty and national security.
Bibek Debroy is chairman and Sinha is OSD, Research, Economic Advisory Council to
the Prime Minister. Views are personal
TTBR (Topics To Be Read) 29 February 2024

Lives and livelihoods: On perils and the Indian

emigrant (The Hindu)

India must have protocols in place to protect emigrants from conflicts

In its first such confirmation, the government has conceded that Indians have been
recruited by the Russian Army and positioned inside the Ukrainian border in land now
under Russian control. The Ministry of External Affairs (MEA) says a “few” Indian
nationals had signed up for support jobs, as military helpers and loaders, something
the government actively discourages. It said that the Indian Embassy had pressed
Russia for their “early discharge”, and denied accusations by the families that Indian
officials had not been responsive. Despite evidence that dozens of Indians have joined
the war, lured by online advertisements and middlemen promising lucrative jobs, the
government failed to make any statement, but spoke only after a series of reports in
The Hindu, that included news of the death of a man from Surat who was hit by a
Ukrainian drone-operated missile. An early acceptance of the problem, and more
awareness drives against those duping Indians may have deterred others from signing
up and facing harm. The government must also investigate the networks of
unscrupulous recruiters who charge high fees from Indians seeking jobs abroad
without fully explaining the nature of work. The truth is that even after awareness of
their menial roles in a war zone, they have few options. Having spent their family’s
savings or availed of loans, the men cannot return without earning some of it back.
The government must review its procedures for countries in conflict, updating the list
of 18 “Emigration Check Required” countries, so that the contracts of Indians travelling
abroad for such work are vetted more thoroughly, they are advised better and also
provided protection. Given that Nepal, Pakistan and Bangladesh face similar issues, it
may help to seek more regional cooperation in thwarting the networks that market
unsafe employment opportunities. The MEA’s pleas to “stay away from conflict” are
clearly insufficient. It is equally disturbing that the government has green-lighted
TTBR (Topics To Be Read) 29 February 2024

recruitment drives to other conflict zones, including, more recently, Israel, for Indian
construction and elder-care workers to replace Palestinians who have been denied
entry to the country since October 7. More broadly, the numerous cases of Indians
travelling to dangerous zones internationally, or even undertaking arduous journeys
as illegal immigrants, reflect the deep economic distress and job shortages in India.
While there are few quick fixes to such entrenched economic issues, the government
must evince more empathy for the situation many find themselves in, putting more
comprehensive protocols in place for emigrants, and support structures for those in
peril.

Strength vs reason: On legislation and

reservation to certain social groups (The Hindu)

The Bill to grant reservations for Marathas may not pass judicial muster

The legitimacy of any demand for a change in public policy lies in the rationale behind
it and not in the strength in support for it. There is a reason why even after States have
bowed down to popular demands for reservation to social groups which were not
considered backward earlier, their actions have been reversed or nullified by the
higher judiciary. This has been true of previous pieces of legislation passed by the
Maharashtra government to grant reservation to the Maratha community. Yet, the
community’s political dominance is evident in the fact that the State Assembly
unanimously passed a Bill on February 20, granting Marathas 10% reservation in
education and government jobs. This is the third time in a decade that such legislation
for the community has been passed; earlier, there was the Socially and Educationally
Backward Classes Act, 2018 under the Bharatiya Janata Party-Shiv Sena-led coalition.
The two pieces of legislation are similar, but the current Bill is based on a report by the
TTBR (Topics To Be Read) 29 February 2024

Maharashtra State Backward Class Commission, which expands the total quota for
reservations to 72% with the inclusion of 10% for Marathas after the application of a
“creamy layer” criterion. This also includes 10% reservation for “Economically Weaker
Sections” focusing on the poor among the Maratha community.
It is understandable why the political class in Maharashtra has chosen the easier, even
if legally dubious, path of expanding the reservation pie. The other alternative of
treating Marathas as a backward class community and providing reservations from
within the 19% quota for OBCs was always going to be a problem with OBC groups
expressing opposition. But the legislation is bound to face problems if and when it is
challenged in the Supreme Court. The top court had struck down the 2018 Act in May
2021 by citing the Indra Sawhney judgment (1992) that limited reservations to 50%
and also held that only the Union government is empowered to identify socially and
educationally backward classes to include them in the central list to avail reservations.
Yet, the Court’s November 2022 judgment upholding the 10% quota for EWS, over and
beyond the 50% limit, has opened a Pandora’s box. The vagaries of addressing
demands of politically dominant groups such as the Marathas, which have
stratifications due to significant intra-community variations in terms of income and
educational outcomes, suggest a case for a comprehensive socio-economic census
alongside the delayed decennial Census. Such a census will establish the true nature
of backwardness and discrimination across States and could even clarify a new means
of providing affirmative action based on the data while staying true to principles of
social justice.
TTBR (Topics To Be Read) 29 February 2024

India’s fight against rare diseases (The Hindu)

Resource constraints apart, India languishes near the bottom on

awareness, diagnosis, and drug development for rare diseases

The tragic death of 19-year-old child actress Suhani Bhatnagar from dermatomyositis,
a rare disorder that causes inflammation in muscles, came in the same month as Rare
Disease Day, which is marked today. The last day of February every year is consecrated
to support crores of individuals who, because of their rare medical conditions, have
long been neglected and stigmatised.
According to the World Health Organization, rare diseases afflict 1 or less per 1,000
population. Barely 5% of the over 7,000 known diseases worldwide are treatable. Most
patients typically receive only basic treatment that alleviates symptoms. Some require
exorbitantly priced antidotes and supportive medication throughout their lives, which
they can’t afford.
Rare diseases in India
India accounts for one-third of the global rare disease incidence, with over 450
identified diseases. These range from widely known ones such as Spinal Muscular
Atrophy and Gaucher’s disease to lesser-known ones such as Mucopolysaccharidosis
type 1 and Whipple’s disease. Roughly about 8 crore-10 crore Indians suffer from one
rare disease or another; over 75% are children. Yet these diseases are largely
overlooked. Resource constraints apart, India languishes near the bottom on
awareness, diagnosis, and drug development for rare diseases.
After many nudges from the courts, the Ministry of Health and Family Welfare
formulated a national policy to treat rare diseases in 2017 but withdrew it in 2018
owing to “implementation challenges” and confusion regarding disease coverage,
patient eligibility, and cost-sharing. A revised policy, the National Policy for Rare
Diseases (NPRD), was announced in 2021, but problems persist. We still don’t define
TTBR (Topics To Be Read) 29 February 2024

‘rare diseases’, a failure the policy attributes to a lack of sufficient data, as if regular
data collection and epidemiological assessments are not the government’s job.
Timely and accurate diagnosis is indispensable for the robust management of any
disease, yet for rare disease patients, it takes an average of seven years for their
conditions to be diagnosed (if at all). Physicians are generally unaware of how to
interpret the signs and symptoms; healthcare professionals must be trained to
improve their diagnostic accuracy. Expectant mothers with a history of rare diseases
in their family must undergo mandatory pre-natal screening and post-natal diagnosis
and care.
Less than 50% of the 450-odd rare diseases identified in India are treatable. Worse,
treatments approved by the Drugs Controller General of India are available for just
about 20 rare diseases and can be availed only from Centres of Excellence (CoEs). Since
CoEs are few (12), unevenly distributed, and uncoordinated, late diagnosis,
inadequate therapies and lack of timely availability are the norm.
Funds are a major challenge too. The Budget’s allocation for rare diseases, although
increasing over the years, remains low at ₹93 crore for 2023-2024, with previous years
having seen reductions of up to 75% from the Budget Estimate stage to the Revised
Estimates and an even worse reduction of 90% in actual expenditure. Under the NPRD
guidelines, up to ₹50 lakh is allowed per patient, which will be disbursed to the
concerned CoE. As chronic rare diseases usually require lifelong management and
therapy, this amount is woefully inadequate. Consequently, the CoEs are wary of
beginning any treatment that they may need to suspend later, leaving them vulnerable
to judicial action from patients and their kin.
The confusion shows in the fund utilisation. For instance, more than ₹47 crore of the
₹71 crore financial assistance allocated to the 11 CoEs for the current year remains
unused. There is no parity between CoEs, with Mumbai exhausting all its funds (while
treating only 20 of 107 patients) and Delhi utilising less than 20%. And in a classic case
of abdication of governmental responsibility, NPRD has urged the CoEs to crowdfund
to treat rare disease patients. A portal with over 1,400 registered patients has
collected less than ₹3 lakh in three years. Can crowdfunding ever be a sustainable
national policy?
The way forward
Admittedly, the situation is not easy for the government, and to its credit, India has at
least recognised rare diseases. However, the efforts are far from satisfactory. It is
imperative for the Central government to frame a standard definition of rare diseases,
increase budgetary outlays, dedicate funding for drug development and therapy, and
increase the number of CoEs while also ensuring better coordination and responsible
utilisation of funds. State governments must introduce social assistance programmes
TTBR (Topics To Be Read) 29 February 2024

and develop satellite centres under the CoEs. Public and private companies could be
co-opted for funding; CSR initiatives and partnerships can be leveraged to meet
shortfalls.
Finally, the issue of exorbitant drug prices and availability must be addressed. Last
year, the government waived off GST and customs duty on medicines for rare diseases.
But this exemption applies only to drugs which are to be “imported for personal use”
and not to the ones commercially available in India. Given the exorbitant prices, how
many patients can afford to import these life-saving drugs? Rare diseases cannot be
left to market forces: there just aren’t enough market incentives for drug
manufacturers. The government must incentivise domestic manufacturers under the
Production-Linked Incentive Scheme, reduce clinical trial requirements in appropriate
cases, and look into options such as repurposed drugs and bulk-import. But first, it
must withdraw GST on life-saving drugs. February 29 reminds us that we can find a
way around the rarest of problems.
Shashi Tharoor is third-term MP (Congress) for Thiruvananthapuram in the Lok
Sabha and the Sahitya Akademi Award-winning author of 25 books; Shashank
Shekhar is his Legislative and Legal Adviser

Household consumption lagging GDP, needs

course correction (Financial Express)

The extended consumption stimulus after the global financial crisis

could be one reason for this.

One of the headline findings of the recently-released Household Consumption

Expenditure Survey (HCES) 2022-23 was that monthly per capita consumption “more
than doubled” in the 11 years to 2022-23—it grew by roughly 1.5 times from 2011-12.
TTBR (Topics To Be Read) 29 February 2024

During the period, the urban-rural gap continued to narrow, and food’s share in the
consumption basket continued to drop (although a bigger decline was expected). A
sharp fall in cereals’ share in the consumption basket in rural India was also highlighted
by the ministry of statistics. Within the food segment, the rising share of items like egg,
fish, meat, milk and fruits indicates, to an extent, a conscious shift to more nutritious
diet among larger sections. The Niti Aayog cited the HCES 2022-23 results to contend
that “poverty level has fallen below 5%.” The think tank had in January this year stated
that poverty might have fallen to 11.3% by 2022-23 from around 25% in 2015-16 and
that the country might have already achieved the Sustainable Development Goal to
halve poverty by 2030.
Consumption is indeed a proxy of poverty, but the latter has many facets including
deprivation in education, health etc., and on the socioeconomic front, which are
captured in the current multidimensional poverty index. The Niti Aayog would likely
throw more light on all these aspects, as it makes a more definitive assessment of the
poverty headcount ratio in due course. That said, the HCES 2022-23 indeed shows an
incremental momentum in monthly per capita consumption expenditure (MPCE) in
the last decade, over the previous one. However, nominal GDP expanded much faster
in the period– it was 3.1 times the FY12 level in FY23. In real terms, the MPCE growth
between 2011-12 and 2022-23—annual averages of 3.6% for rural and 3% for urban—
have been lower than between 2009-10 and 2011-12 (7.8% and 5.8% respectively).
The extended consumption stimulus after the global financial crisis could be one
reason for this.
But the policymakers would do well to understand why household consumption is
lagging not just overall GDP expansion, but even the private final consumption
expenditure that includes the large corporates. In fact, absolute consumption figures
revealed by the HCES betrays the dichotomy between the poverty thresholds adopted
and anecdotal understanding of the level of purchasing power that can be termed
“non-poor.” To be sure, 90% of rural Indians reported average MPCE of less than
`5,400/month, while those in 0-5% “fractile class,” at the bottom of the pyramid, a
measly `1,373, and persons in the 5-10% class, just `1,782. Gross—and worsening—
inequalities is evident: a person in the 50-60% fractile class for rural India with MPCE
of `3,455 is still below the national average of `3,773; top fractile class (95-100%) for
urban India had a MPCE of just `20,824 in 2022-23, while luxury car sales hit a record
42,731 units in 2023, up 20% on year.
Persisting regional disparities are another worry—urban-rural divide is Kerala is less
than a fifth while it’s 82% in Chhattisgarh. On top of this, while 2017-18 survey results
were junked for “data quality issues”, it isn’t clear how much some changes in
methodology, including inclusion of 405 items in the latest survey, compared with 347
in one conducted in 2011-12, might have dented comparability of data. The weakness
TTBR (Topics To Be Read) 29 February 2024

in consumption needs policy solutions that hinge on inclusiveness, and minimal

market distortions. Growth, after all, is the perfect antidote to poverty.

Liberalised FDI can turn India into a global space

hub (Business Line)

This is the right moment for India to become an international satellite

major

The Centre has amended its foreign direct investment (FDI) policy for the space sector,
tweaking how much percentage of equity a foreign entity may acquire in three
different sub-sectors through the automatic route – 49 per cent in launch vehicle
manufacture and spaceports, 74 per cent in satellite manufacture and 100 per cent in
components and sub-systems for satellites and ground station hardware. These
numbers are not FDI limits, but the percentages allowed through the ‘automatic route’
— higher holding is possible with government approval.
While the government has not explicitly disclosed the rationale behind these
categories, the logic is not hard to divine. Manufacturing of rockets (49 per cent
through automatic route) is governed by the Missile Technology Control Regime
(MCTR), an informal political understanding among member countries, which
discourages laxity in control. India, which was admitted into MCTR in 2016, would like
its policies to be devoid of any whiff of proliferation.
Allowing 74 per cent stake through the ‘automatic’ route in satellite making must be
viewed in the context of two factors: rising global conflicts and a global economic
slowdown. On the first, there has been a disruption on account of Ukraine, Russia and
China being major players in this industry. As for the second, India as a low cost
TTBR (Topics To Be Read) 29 February 2024

producer of satellites stands to gain. This is an opportune moment for India to amble
into satellite making, as tens of thousands of satellites are slated to be launched in
coming years. The amendment makes it alluring to foreign entities to manufacture
satellites in India, while reserving a slice for Indian businesses. However, satellite
manufacturing is fraught with suspicions of spyware. That is why the government has
allowed 100 per cent automatic FDI in components and sub-systems — a foreign
investor may have full control over manufacture and exports.
Two other broad trends have contributed to a liberalised space policy. One is the
‘China-plus-one’ approach, where investment is expected to fork away from China into
countries such as India. India would like to position itself as a credible alternative to
China in making satellites. The other is India’s ‘production-linked incentive’ (PLI)
scheme for electronics manufacture. For those who avail themselves of the PLI,
satellite manufacturing can be a ready market. Enlarging this market by inviting FDI
would spur the electronics industry.
The idea of private participation in space has somehow got hooked with start-ups. But
there are many MSMEs in this space which can now access foreign investment. It is
believed that this policy took about two years to make. IN-SPACe, the nodal agency for
facilitating private sector participation in the space sector has developed this policy
after numerous industry consultations. There is perhaps no need for government to
pore into every FDI deal — broad oversight is enough. FDI in space can work as a good
launching pad.
TTBR (Topics To Be Read) 29 February 2024

Welfare schemes are here to stay (Business Line)

Finances are hard to scale down because of their role in reducing

deprivation. Fiscal constraint is an issue

Let us look at three thoughts which are at the forefront of economic policy. There is a
high level of urgency to ensure that the Indian economy hits the $5 trillion mark, which
is around ₹415-420-lakh crore. Going by the Budget, it is slated to touch ₹328-lakh
crore for FY25. The $5 trillion mark should be achieved in FY28 quite comfortably, if
not earlier. Further, as the next aspiration is to cross the $7 trillion mark, this should
be achieved by FY31 assuming growth in nominal GDP of 11-12 per cent per annum on
an average.
On the other side, the government seems determined to bring down the fiscal deficit
ratio to 4.5 per cent of GDP in FY26; and then presumably to 3 per cent in the three
subsequent years, before settling in this region. Hence when the GDP touches $5
trillion, the deficit would be around ₹15.7-lakh crore (against ₹16.5-lakh crore in FY24)
assuming deficit at 3.5 per cent and GDP at ₹448 lakh crore in FY28. This would decline
further as the 3 per cent norm is attained. What this means is that the level of overall
borrowing will also come down.
This means that future expenditures have to be aligned with these levels of borrowing
while working on the assumption of limited buoyancy in revenue growth. A lot of the
gains in the last few years under conditions of muted nominal growth in GDP is due to
better coverage and compliance.
Multi-dimensional poverty
And then there is another aspect distinct from the GDP and fiscal numbers but critically
interlinked with the two. This is the NITI Aayog concept of multi-dimensional poverty.
The institution has calculated poverty in a novel way where, interestingly, income does
not feature. This is a radical change from the generally accepted rule of income that is
proposed by multilateral agencies.
TTBR (Topics To Be Read) 29 February 2024

It instead looks at 12 indicators and then sees what proportion of the population is
deprived of these benefits. In case they fail in more than one-third of the indicators
then they are classified as multidimensionally poor. The indicators are nutrition, child
mortality, maternal health, access to schooling, school attendance, cooking fuel,
sanitation, water access, power, housing, assets and bank account. The concept is
hence broad and looks at access to a number of essential services/goods. The poverty
ratio for the nation has came down from 29.2 per cent to 11.3 per cent between FY14
and FY23.
Now, the important thing is that for most of these amenities/facilities that are
covered, the role of state is important. This is so because the Centre, in particular, has
certain aggressive programmes that ensure delivery of these services. The Table tries
to map the movement in the deprivation ratios under each of these indicators (the
extent of deprivation in each indicator) along with the Central scheme that is meant
to address these deprivations.
The conundrum is that going ahead, can the Budget funds be used to finance all these
programmes? In general, given the high levels of deprivation in the country at the start
of the middle of last decade, the government had two options. Do we bring about
growth and wait for the trickle-down or address issues at the grassroots directly?
As time was of essence the approach was quite radical where direct benefits were
provided through a plethora of programmes to alleviate the conditions of the poor.
Hence there has been remarkable progress here as in 9 of these 12 elements a large
role has been played by the state. The fragile condition of the lower income groups
can be gauged by the fact that even today 800 million people are dependent on
government for the supply of free foodgrains. Counter-intuitively it can be argued that
if there was no direct intervention by the government, this improvement in multi-
dimensional poverty indicators would not have been achieved.
Now with the economy moving ahead at a rapid pace, in the next 5-7 years there will
be real growth which should ideally address the issue of creation of more jobs so that
the people are able to handle their own affairs and are less dependent on the
government for direct support. The government has shown its resolve to lower the
fiscal deficit ratio and this can be taken as given. This could mean that a lot of these
development programmes will have to be either lowered in scale or financed by higher
buoyancy in revenue.
Difficult to withdraw
How much of growth is brought about in a broad-based manner across sectors such
that employment is generated which enables households to fend for themselves needs
to be watched. The observation over the years is that it becomes very difficult to
withdraw any development programme and often it is only the allocation which is
TTBR (Topics To Be Read) 29 February 2024

tinkered with at the margin. Hence intervention in terms of subsidy or direct benefits
through cash transfers on LPG cannot be eschewed.
After reaching this far in terms of reduction of the number of people who qualify as
poor under the new concept, there is always a risk of people’s well-being slipping in
case any of these benefits are withdrawn. MGNREGA is a classic instance where the
allocations have just been increasing over time from a modest ₹15,000 crore to over
₹1-lakh crore during the pandemic; for FY25, the allocation is ₹86,000 crore.
One cannot be sure if there can be any substantial gains in terms of tax revenue with
growth in economy being at around 12 per cent per annum in nominal terms and a
largely unchanged tax structure. Creating jobs with sustainable income streams is the
only way out.
The writer MADAN SABNAVIS is Chief Economist, Bank of Baroda. Views are personal