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In less than a year since India enforced a strict quality control order (QCO) in April on viscose staple fibre (VSF), a key raw material in the textiles supply chain, its imports dropped 65 per cent, helped Aditya Birla Group-owned Grasim Industries consolidate its market share to 95 per cent from 90 per cent, and has started hurting the operations of small and medium sized spinning mills since it restricted access to cheaper raw material imports.
A QCO is a non-tariff trade barrier that bars manufacturers, importers, and distributors from storing or selling a product without a licence from BIS that certifies specific quality standards being met.
Grasim Industries, the largest VSF producer, had about 18 months before the QCO, lobbied the Ministry of Textiles complaining of substandard imports from Indonesia and China.
Since the QCO was imposed, midstream VSF buyers like small- and medium-sized spinning mills have repeatedly raised concerns with the textiles ministry that such orders have held them back from cheaper VSF, which otherwise, helped them competitively export spun yarn and fabric.
For MSME mills, these challenges come at a time when the textiles industry is reeling from a prolonged period of economic distress due to weak global demand.
Govt & Politics
Rethink decision to seal India – Myanmar border, Nagaland urges Centre (Page no. 6)
(GS Paper 2, Environment)
The legislative Assembly in Nagaland, where the Nationalist Democratic Progressive Party and the BJP are in power in a coalition government, unanimously passed a resolution urging the Centre to reconsider its decision to seal the Indo-Myanmar border.
Earlier this week, the Mizoram Assembly had passed a similar resolution. In February, the Union government announced its decision to end the Free Movement Regime (FMR) agreement with Myanmar and fence the entire length of the border.
The FMR agreement had allowed tribes living along the border on either side to travel up to 16 km inside the other country without a visa and stay up to two weeks.
The Indo-Myanmar border is 1,643 kilometres long and runs along Arunachal Pradesh, Mizoram, Nagaland and Manipur.
While the Manipur and Arunachal Pradesh governments welcomed the decision to scrap FMR, civil society groups and the governments in Mizoram and Nagaland have opposed it.
Change in rules : Postal ballot only for those aged 85 or above (Page no. 7)
(GS Paper 2, Governance)
For the upcoming Lok Sabha and State Assembly elections, senior citizens who are 85 years and older will be able to opt for postal ballots as the government amended the rule to increase the eligibility from the current limit of 80 years and above.
In a gazette notification, the Union Law Ministry amended the Conduct of Elections Rules-1961 to change the definition of senior citizens who are eligible to choose the postal ballot facility from those “above 80 years” to those “above 85 years”. This, the notification said, was “after consulting the Election Commission of India”.
The rules enable postal ballot voting for a “notified class of electors”, which includes essential services workers, persons with disabilities, Covid-19-infected or suspected cases and senior citizens. In Section 27(A) (e), senior citizens had been defined as those above 80 years.
“In the conduct of Elections Rules-1961, in rule 27A, in clause (e), for the words and figures ―above 80 years, the words and figures ―above 85 years shall be substituted,” the notification said.
Express Network
This summer, brace for above normal max temperatures prolonged heatwaves : IMD (Page no. 8)
(GS Paper 3, Environment)
The summer of 2024 will be hot, as the season would witness above-normal temperatures and above-normal number of heatwave days from March to May, an India Meteorological Department (IMD) forecast predicted. This comes with El Nino conditions that are set to persist till May.
“El Nino conditions will continue this summer, and we have seen in the past that El Nino conditions help in provoking heatwave conditions overall, El Nino could have an impact on heatwave conditions, leading to higher-than-normal number of heatwave days.
Above-normal maximum and minimum temperatures are expected over most parts of the country from March to May, stated the IMD forecast for the season.
With the summer setting in over south peninsular India in March, above-normal maximum and minimum temperatures are expected over the region during the month, with heatwave conditions expected in northeast peninsular India, including parts of Andhra Pradesh, Telangana, and adjoining Karnataka and some areas of Odisha, going by the forecast.
Defence signs deals worth 39k cr with Indian firms (Page no. 8)
(GS Paper 3, Defence)
With the financial year drawing to a close, the Ministry of Defence signed five major capital acquisition contracts worth Rs 39,125 crore.
All the deals — for BrahMos missiles to fighter jet engines and high-power radars — were signed with domestic manufacturers, both state-owned and private.
“These deals will further strengthen indigenous capabilities, save foreign exchange and reduce dependency on Foreign Origin Equipment Manufactures in future.
Two contracts — worth Rs 20,506 crore — were signed with BrahMos Aerospace Private Limited for procurement of BrahMos supersonic cruise missiles and ship-borne BrahMos systems, which was recently cleared by the Cabinet Committee on Security headed by Prime Minister Narendra Modi.
Explained
Growth based on GDP GVA (Page no. 11)
(GS Paper 3, Economy)
India’s Gross Domestic Product (GDP) growth rate surpassed expectations to rise to a six-quarter high of 8.4% in the third quarter (October-December) of 2023-24, data released by the National Statistical Office (NSO) showed.
This was much higher than the 6.5% estimate for Q3 by the Reserve Bank of India (RBI), and similar estimates by economists.
The Q3 GDP helped push the estimate for the full year to 7.6% in the second advance estimates, from the 7.3% estimated in the first advance estimates released in January.
While there was an improvement in manufacturing, mining, construction, trade, hotels, transport and communication, and services related to broadcasting, the agriculture sector recorded a contraction in Q3.
Development of Agalega and India’s vision for its maritime neighbourhood (Page no. 1)
(GS Paper 2, International Relation)
Prime Ministers Narendra Modi and Pravind Jugnauth jointly inaugurated an airstrip and the St James Jetty on North Agaléga Island in the Indian Ocean.
Agaléga — a group of two islands with a total area of 26 sq km and a native population of about 300 people — lies approximately 650 nautical miles (1,050 km) north of Mauritius, and belongs to the island nation.
The development of the Agaléga Islands is in the socio-economic and national security interest of Mauritius, and also aligns with India’s maritime vision.
The islands, a dependency of Mauritius, were not developed for many years. Situated two days’ steaming distance away, the sustainability and well-being of the islands’ inhabitants presented a challenge, as even the most basic needs required referral to Mauritius. The near absence of an official government or security presence was a serious vulnerability.
Editorial
On the upside (Page no. 12)
(GS Paper 3, Environment)
India’s growth continues to surprise on the upside. The 7.6 per cent GDP growth as per the National Statistical Office’s second advance estimate has surpassed all previous estimates.
On January 5, the first advance estimates had pegged GDP growth at 7.3 per cent. Additional data for two months pushing up GDP growth implies a strengthening economic momentum in the third quarter — in addition to the gains from rising net taxes (taxes minus subsidies). In comparison, growth in gross value added without the net tax impact was lower at 6.9 per cent.
Considering that for this full fiscal year, growth is now seen at 7.6 per cent with the first three quarters growing at an average of 8.2 per cent, the implicit fourth-quarter growth turns out to be 5.9 per cent.
Although real GDP is still below where it would have been without the pandemic, domestic strengths and policy focus have pulled the economy closer to the 7 per cent growth path.
Strengthened bank and corporate balance sheets and the government’s focus on infrastructure have improved growth performance and potential. In its latest monetary policy statement, the RBI had projected India’s GDP growth at 7 per cent for next year.
Ideas Page
Intelligence as we don’t know it (Page no. 13)
(GS Paper 3, Science and Technology)
As a species, human beings have always been deeply innovative. Each major innovation has led to a reimagining of how we live.
In the early 1900s, Albert Einstein’s theories of relativity exploded our minds by explaining gravity, space and time. In 1941, the cultivation of penicillin for therapeutic use on humans exponentially helped the fight against disease and increased life spans.
In the contemporary era, especially in the last few years, it is innovations in artificial intelligence (AI) that will transform what constitutes intelligent life. For, soon, human beings will not be the only source of intelligence.
The developments in AI, especially generative AI, are transforming our conceptions of “work”, “worker” and “expertise”. In this column, I have written multiple articles on AI, and its deployment in many areas from legal adjudication to medical surgeries.
There is a need for legal regulation without hampering innovations in AI. Therefore, it is entirely unsurprising to see that globally, the most rapid growth in market capitalisation in the past 12 months has been in Nvidia — a company that is fuelling the growth of advanced AI. Perhaps, Nvidia is an indicator of what kind of company will be the most valuable in the future.
Economy
Thailand replaces WTO ambassador after India protests remarks on rice (Page no. 15)
(GS Paper 3, Economy)
Thailand has replaced its Ambassador to WTO Pimchanok Vonkorpon Pitfield from here following a strong protest lodged by India on her contentious comment on New Delhi’s rice procurement programme, a top government official said.
The official said that Pitfield has been asked to report back to Thailand after the 13th ministerial conference (MC), which has entered the fifth day of talks. She has been learnt to have replaced the Thai foreign secretary.
India has expressed strong disappointment over Pitfield’s remarks during a consultation meeting on Tuesday accusing New Delhi that India’s rice procurement programme at Minimum Support Price (MSP) for the public distribution system is not for people but for capturing the export market, the official said.
Following this, India has formally registered its protest with the Thai government and has also expressed displeasure with the WTO chief Ngozi Okonjo-Iweala, agri committee chair Kenya and UAE.
The Thai Ambassador has been replaced. She has ridiculed India’s PSH (Public Stockholding) programme the official said, adding that the language and behavior of the Thai ambassador were not in good taste.