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With a slowdown in exports being seen as a cause of concern in the context of a widening trade deficit, the government is planning to regulate imports of “non-essential items” through hikes in import duties.
The economic ministries in the Central government are in the process of carrying out an exercise to select a list of items on a granular basis to ensure that the proposed duty hikes are restricted to those items for which there is enough manufacturing capacity in the country, but not for other items in the categories that come under the same Harmonized System of Nomenclature (HSN) code.
We are looking at non-essential imports for which there is enough manufacturing capacity. It is to identify non-essential items, where there is sufficient production capacity and allow for higher import substitution.
In the current form, HSN codes are seen as subsuming a broad sweep of items, even at the six or eight-digit classification levels. For instance, there are different types of materials for bicycle hubs including steel, alloy, ceramics but all bicycle hubs come under the same HSN code.
But with the government considering a higher import duty only for steel due to excess capacity domestically, it has to think of ways to separate other materials of bicycle hubs from the HSN category to ensure the higher import duty doesn’t affect them, the official explained.
Similarly, to regulate imports of LED lights, the government may consider levying higher duty only for the single-wire LED light but doesn’t intend to put a higher duty on LED bulbs.
Hence, the government has to segregate the different types of LED lights to make sure it’s levied only on the types it wants to stop.
To reduce trade deficit, the government’s policy options are to push exports or disincentivise imports. But a poor outlook on global growth means India’s exports will suffer just like most other countries.
The other way is to hike duties on imports, particularly those that are not critical and are produced in India. This will keep the deficit down.
Govt & Politics
PM: Govt showed red card to challenges in NE development (Page no. 8)
(GS Paper 3, Internal Security)
The BJP-led NDA “government has shown the red card to challenges in the Northeast region, including corruption, political nepotism and unrest”, Prime Minister Narendra Modi said Sunday in Meghalaya’s Shillong, hours ahead of the FIFA World
PM Modi, who is in Shillong to head the North East Council (NEC) meeting, will also visit Tripura later in the day. Coincidentally, when I’m here holding a rally at a football field in the midst of football fans, the Football World Cup final will be held. Football mania is going on there and development mania is going on here.
The football World Cup is being held in Qatar this time, but it won’t be long before India organises such global events, he said, adding that the Indian Tricolour will fly high in those events.
Taking a dig at erstwhile Congress-led governments at the Centre, he said those governments used an approach of “divide” in the Northeast region, while the BJP-led government in New Delhi has adopted a “divine” approach towards the region.
In an oblique reference to his government’s ongoing peace talks with the National Socialist Council of Nagaland (IM) and Naga nationalist political parties, PM Modi said his government was working towards peace in the region and in solving conflicts. Border areas in Northeast India are not the last miles of the country for us. Instead, they are our main pillars. We are working on developing the border villages, like the Vibrant Border Village project.
Blaming Congress-led governments, PM Modi said the previous governments thought developing bordering areas would only prove beneficial to enemy countries and pointed out that his government, on the other hand, started working for better connectivity, roads, etc to border villages and strived to turn border areas into India’s strongest bastions.
Speaking on the progress in Meghalaya, he said nearly 2 lakh households received electric connection for the first time and 3 lakh households got safe drinking water.
Express Network
‘INS Mormugao shining example of our defence production capabilities’ (Page no. 9)
(GS Paper 3, Defence)
Indigenous stealth guided-missile destroyer INS Mormugao was commissioned into the Indian Navy in the presence of Defence Minister Rajnath Singh at a ceremony in Mumbai on Sunday.
It’s the second of four ‘Visakhapatnam-class’ destroyers indigenously designed by the navy’s in-house Warship Design Bureau and constructed by Mazagon Dock Shipbuilders Ltd (MDL).
Speaking at the commissioning ceremony, Singh said, “INS Mormugao is one of the world’s most technologically advanced warships.
With over 75 per cent indigenous content, it’s a testimony to India’s excellence in design and development of warships and a shining example of our growing indigenous defence production capabilities. The warship will meet the present and future needs of our country as well as of our friendly countries across the globe.”
Singh commended the navy and MDL for the commissioning of INS Mormugao, describing it as the result of the hard work, dedication and aspirations of the engineers, technicians, designers and scientists.
Aim is to make India an indigenous shipbuilding hub. Bolstering security apparatus is our top priority. Singh described INS Mormugao as one of the most powerful indigenously built warships, which will significantly enhance the country’s maritime capabilities and secure national interests.
Chief of the Naval Staff Admiral R Hari Kumar said the commissioning of INS Mormugao is indicative of the large strides India has taken in warship design and building capability over the last decade.
He said the warship is a true illustration of ‘Aatmanirbhar Bharat’ and ‘Make in India’ initiative and reinforces the navy’s commitment to supporting India’s transformation into a global ship-building hub.
The warship, with her multi-dimensional combat capability, will form part of the Western Fleet, the sword arm of the Navy.
Goa Chief Minister Pramod Sawant, Chief of Defence Staff General Anil Chauhan and Goa Governor P S Sreedharan Pillai were present at the ceremony.
Named after the historic port city of Goa, INS Mormugao, which is 163 m in length and 17m in breadth with a displacement of 7,400 tonnes, is packed with sophisticated state-of-the-art weapons and sensors such as surface-to-surface missiles and surface-to-air missiles.
Editorial Page
Walking a tightrope (Page no. 10)
(GS Paper 3, Economy)
It may seem inconceivable to contemplate the notion that policymaking in 2023 could be more challenging than the last three years.
As difficult as that was, at least the direction of travel was clear. The pandemic’s impact on output was so tangible that it necessitated a coordinated fiscal-monetary response.
Similarly, the war-induced supply shock to commodities was so outsized that the imbalances it spawned — surging inflation and pressure on current account deficits — meant the policy implications were obvious.
Fiscal policy had to buffer the impact on households and firms. But precisely because fiscal had to accommodate the shock, monetary policy had to go the other way. And in a hurry. Global policy rates have been hiked by about 300 bps — the most aggressive tightening since the 1980s.
So, what will make policymaking so challenging in 2023? Quite simply, the multiple cross currents at play. The impact of the pandemic and the war has meant emerging markets (EMs) are a sizeable 4-5 per cent below their pre-pandemic potential path (versus 1 per cent for developed markets).
And this is before the sharp slowing of global growth in 2023 that we must brace for. Even in a relatively soft-landing scenario, global growth is expected to slow to 1.7 per cent next year from 3 per cent this year.
The implications for growth, jobs and livelihoods in emerging markets are ominous. Ordinarily, policy should turn more supportive.
Yet emerging markets will be constrained both because inflation and current account deficits (CAD) are still too sticky and because a high-for-long Fed could make EM easing fraught with risk.
Therein lies the conundrum. Should policy keep tightening to quell imbalances and break the back of inflation and current accounts but risk more scarring? Or gamble that slowing growth will have a curative effect on imbalances such that policy can slowly start getting more supportive? Precisely because the direction of travel is not clear, 2023 will be so uncertain and challenging.
Ideas page
The sovereign, undermined (Page no. 11)
(GS Paper 2, Polity and Governance)
India is at the cusp of making history. It is, perhaps, a defining moment in the country’s trajectory to take the leadership role in Industrial Revolution 4.0.
We need to take control of the data and information emerging out of Indian consumers and help younger minds to process it and develop artificial intelligence, internet of things, and robotics while respecting individual privacy.
The fresh draft of the Digital Personal Data Protection Bill, 2022, released by the Ministry of Electronics and Information Technology (MeitY), appears to be well intended and in the correct direction.
It is crisp, to the point and easy to read. It is the first attempt to define who can possess data — the Data Fiduciary — and what their legal obligations are. It doesn’t get into issues such as critical and non-crucial data.
There is a very simple definition of personal and non-personal data. And above all, the new draft is neither a copy nor an adaptation of Anglo-Saxon laws, like the EU’s General Data Protection Regulations or the CLOUD Act. It is designed for India’s requirements.
The draft, however, does require fine-tuning, including determining the quantum of penalties, whose upper ceiling has been fixed at Rs 500 crore — there are global examples, where the penalties are determined ad valorem, as a percentage of their global revenues.
In addition, there is still no clarity on the role and structure of the data protection board — if it will be a regulator or adjudicator — or how will it function independently, since there is no appellate authority.
People concerned about data sovereignty have long been advocating the housing of servers within India. Although the word “sovereign” is missing from the text of the Bill, the draft appears far too focused on individuals’ privacy issues (for personal data).
It is clear that during Industrial Revolution 4.0, there can’t be a handful of (global) corporations accumulating data — through ethical and unethical means — and controlling its flow to push their own products and services.
In many cases, they can manipulate the minds of consumers. Big data companies, search engines, geo-mapping players, healthcare service providers, insurance companies, financial institutions, and e-commerce players along with other entertainment apps, are accumulating data and often taking it to foreign lands.
Explained
INS Mormugao, the Navy’s new guided missile destroyer (Page no. 13)
(GS Paper 3, Defence)
The second of the Project 15B stealth-guided missile destroyers built by Mazagon Dock Shipbuilders Limited (MDSL), INS Mormugao (Pennant D67), was commissioned into the Indian Navy. The ship, named after a key port in Goa, was commissioned a day before the Goa Liberation Day celebrations.
Over the last decade, the Indian Navy has commissioned three guided missile destroyers of the Kolkata class — INS Kolkata, INS Kochi, and INS Chennai — under the project codenamed 15A. These ships were a step ahead of their precursor Delhi class of ships — INS Delhi, INS Mysore, and INS Mumbai.
All these ships were built by MDSL, one of the country’s most important Defence PSUs. A ship ‘class’ describes a group of vessels of similar tonnage, usage, capabilities, and weaponry.
The contract for four guided missile destroyers more advanced than the Kolkata class was signed in January 2011. This was Project 15B, and the lead ship, INS Visakhapatnam (Pennant D66) was commissioned into the Navy in November 2021.
Designed by the Warship Design Bureau, Indian Navy’s in-house warship design body, and built by MDSL in Mumbai, the four ships of Project 15B were to be named after four major cities around the country — Visakhapatnam, Mormugao, Imphal, and Surat. A ship class is identified by its lead ship, in this case, INS Visakhapatnam.
The keel of Mormugao (Yard 12705), was laid in June 2015 and the ship was launched in September 2016 by then Defence Minister late Manohar Parrikar.
The Visakhapatnam class has largely maintained the hull form, propulsion machinery, many platform equipment, and major weapons and sensors from the Kolkata class to benefit from series production.
But it incorporates advanced stealth features and a higher degree of automation. The sleeker hull design and the radar-transparent deck fittings make the vessels difficult to detect.
Y12705 (now INS Mormugao) completed basin trials on December 15, 2021, and undertook her first sea sortie on December 19, 2021, when Goa celebrated 60 years of liberation from Portuguese rule. The ship has around 75 per cent indigenous content.
“Review Petition”. (Page no. 13)
(GS Paper, Polity and Governance)
The Supreme Court has dismissed a petition filed by 2002 Gujarat riots victim BilkisBano, seeking review of its May 2022 order which said the Gujarat government was the appropriate government to decide the prayer for remission by one of the 11 convicts handed life terms in her case, and let the state’s 1992 remission policy apply in the matter.
According to the Constitution, any ruling by the Supreme Court is in the normal course final and binding, and it becomes the law of the land. It is considered final because it provides certainty for deciding future cases.
However, the Constitution also gives, under Article 137, the Supreme Court the power to review its judgments or orders. This provision forms the legal basis for the filing of a “review petition”.
A review petition must be filed within 30 days of pronouncement of the judgment. Except in cases of death penalty, review petitions are heard through “circulation” by judges in their chambers. They are usually not heard in open court.
Lawyers in review petitions usually make their case through written submissions, and not oral arguments. The same judges who passed the original verdict usually also hear the review petition.
It is not necessary that only parties to a case can seek a review of the judgment on it. As per the Civil Procedure Code and the Supreme Court Rules, any person aggrieved by a ruling can seek a review. However, the court does not entertain every review petition filed.
There are narrow, specific grounds on which a review petition can be entertained. Therefore, the court has the power to review its rulings to correct a “patent error” — but not “minor mistakes of inconsequential import”.
In a 1975 ruling, Justice Krishna Iyer said a review can be accepted “only where a glaring omission or patent mistake or like grave error has crept in earlier by judicial fallibility”.
In another 2013 ruling (Union of India v. Sandur Manganese & Iron Ores Ltd), the court laid down nine principles on when a review is maintainable.
Acid attacks: the crime, the law, regulation and compensation (Page no. 13)
(GS Paper 1, Social Issues)
A 17-year-old girl was attacked with an acid-like substance in Delhi’s Dwarka by three assailants while she was on her way to school.
While the victim has suffered 8% burns and disfigurement of the face and neck area, the accused have been arrested by Delhi police.
The incident has once again brought back to focus the heinous crime of acid attacks and the easy availability of corrosive substances.
Though heinous, acid attacks on women are not as prevalent a crime as others against women. According to data compiled by the National Crime Records Bureau (NCRB), there were 150 such cases recorded in 2019, 105 in 2020 and 102 in 2021.
West Bengal and UP consistently record the highest number of such cases generally accounting for nearly 50% of all cases in the country year on year.
The chargesheeting rate of acid attacks stood at 83% and the conviction rate at 54% in 2019. In 2020, the figures stood at 86% and 72% respectively.
In 2021, the figures were recorded to be 89% and 20% respectively. In 2015, MHA issued an advisory to all states to ensure speedy justice in cases of acid attacks by expediting prosecution.
Until 2013, acid attacks were not treated as separate crimes. However, following amendments carried out in the IPC, acid attacks were put under a separate section (326A) of the IPC and made punishable with a minimum imprisonment of 10 years which is extendable to life along with fine.
The law also has provisions for punishment for denial of treatment to victims or police officers refusing to register an FIR or record any piece of evidence.
Denial of treatment (by both public and private hospitals) can lead to imprisonment of up to one year and dereliction of duty by a police officer is punishable by imprisonment of up to two years.
Economy
Meeting Indian safety but failing globally: A tossup between norms (Page no. 15)
(GS Paper 3, Growth & Development)
Four Indian cars were tested in the latest round of crash tests conducted by Global NCAP, a UK-based road safety NGO, with the three featured cars from India’s largest carmaker Maruti Suzuki faring poorly.
The results have triggered a fresh debate on safety of cars sold by global manufacturers in India and also the sanctity of these independent tests carried out by Global NCAP.
NCAP stands for New Car Assessment Programme, a series of safety tests instituted by Global NCAP, a British organisation that counts Bloomberg Philanthropies, FIA Foundation (the governing body for Formula 1 racing), International Consumer Testing and Research, and the Road Safety Fund among its promoters, and has editions in several car markets to assesses safety and build quality parameters in new vehicles. The higher the NCAP score, the safer the car is supposed to be.
The only non-Maruti Suzuki car in the list of the latest vehicles — the Mahindra Scorpio-N — scored five stars for adult occupant protection and three stars for child occupant protection.
The popular mid-range hatchback Suzuki Swift got one star each for adult and child occupant protection, while Suzuki’s entry level S-Presso and premium hatchback Ignis both scored only one star for adult occupant protection and zero stars for child occupant protection.
The three Maruti Suzuki models were tested in their basic safety specification with two frontal airbags and ABS (Anti-Lock Braking System), with none of the three models providing ESC (electronic stability control) or side curtain airbags as standard or as optional equipment.
Global NCAP’s updated protocols assess frontal and side impact protection for all tested models, while ESC, pedestrian protection and side impact pole protection assessments are also required for vehicles scoring the highest star ratings.