Nigerian health agency has flagged off two drugs — oral paracetamol and another cough medicine — manufactured by companies based in Mumbai and Punjab for being “sub-standard or found to be containing toxins”.
Since October last year, Indian pharma companies have been under constant international scrutiny for exporting allegedly contaminated drugs, which have led to deaths of children.
Apart from Nigeria, Cameroon also sounded an alarm over another cough syrup reportedly made in India when several children died.
Sri Lanka called out two drugs manufactured in India linking them to adverse reactions in several patients.
Most recently, Gambia has declared that from July 1, it is running strict quality control checks on all pharma products shipped into the country, before they leave Indian shores.
Gambia had reported deaths of at least 70 children related to a contaminated cough syrup made in India, in December last year.
Uzbekistan had reported death of at least 18 children after consuming cough syrup contaminated with high amounts of diethylene glycol (DEG) or ethylene glycol poured in.
The complaints from across the world on quality of Indian drugs does not seem to stop.
Soon after the deaths of children in Gambia and Uzbekistan, the Central Drugs Standard Control Organisation (CDSCO) had cancelled the licence of a pharma company named Marion Biotech.
Why Are Regulators Failing to Take Action Against Faulty Manufacturing Practices?
Ideally, when a manufacturer is found to be violating laws especially in cases where there is a threat to life or alleged deaths, a criminal prosecution of the persons who are responsible for manufacturing and marketing the drug should be launched.
Instead of doing that, the Ministry of Health, CDSCO and the state regulator keep passing the buck.
Also, State Food and Drug Administration bodies are not mandated to disclose the reports of inspections conducted by them on the pharma manufacturing facilities that fall under their jurisdiction.
Why Are Pharma Companies Not Punished?
It is important to note that the licensing and prosecutions of pharma companies is the responsibility of State governments.
Under the Drugs and Cosmetics Act, 1940, manufacturers not adhering to good manufacturing practices can be subjected to a maximum punishment of imprisonment for life.
However, when prosecutions are filed, the cases move at a snail’s pace in courts.
For instance, in Andhra Pradesh, of the 54 judgments in cases filed against pharma companies between 1999 and 2017, the state was able to secure convictions in only eight cases.
Poor conviction rate was due to glaring errors committed by drug inspectors including shoddy paperwork, failure to seize, record its condition of storage and label the samples properly, as also the failure to complete the testing process of samples before its expiry date.
CDSCO is perennially reeling under a shortage of drug inspectors.
A 2019 report said that while there ought to be one drug inspector for every 50 manufacturing units and 200 pharmacists, there were vacancies in most States waiting to be filled.
Karnataka was working at nearly half its sanctioned capacity for drug inspectors, while Himachal Pradesh had 27% vacant posts.
Drug Controller General of India (DCGI):
Drugs Controller General of India is the head of department of the Central Drugs Standard Control Organization (CDSCO).
The CDSCO is the Central Drug Authority for discharging functions assigned to the Central Government under the Drugs and Cosmetics Act, 1940.
Nodal Ministry – Ministry of Health & Family Welfare
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Scientists have found evidence to suggest that the universe is filled with low-frequency gravitational waves.
They have also contended that these waves create a cosmic background hum (which they could hear), that permeates outer space.
What are Gravitational Waves?
These are ripples in the fabric of space-time that are created by huge objects moving around, colliding, and merging with each other.
They were predicted by Albert Einstein’s General Theory of Relativity more than 100 years ago and were first detected in 2015 using an experiment involving Laser Interferometer Gravitational Observatory (LIGO)
In his General Relativity Theory, Einstein proposed that gravitational attraction was a result of the bending of the fabric of spacetime by the equivalent of a heavy object.
This is very often elucidated by an animation in which a large ball is placed on a rubber sheet, creating a curvature in the sheet.
When a smaller ball is rolled on the rubber sheet, it moves around the large ball along the curvature for a while before falling into it.
Einstein said the Sun, the Earth and all other bodies formed similar curvatures around them, and this was the reason for smaller objects getting pulled towards them.
But since the Earth, sun and everything else are also moving, the curvature around them moves too.
This creates ripples in spacetime (called gravitational waves), just like a moving boat in water creates ripples.
The experiment detected waves of high frequency, believed to be produced by the merger of two relatively small black holes that took place about 1.3 billion years ago.
All the subsequent detections after that were also of high-frequency waves. This, however, has changed now.
Why is the Detection of Gravitational Waves Important?
Everything that is known about faraway objects has come through the detection of the electromagnetic waves either emitted or reflected by them.
These electromagnetic waves (of which visible light is also a part) very often carry information that is characteristic of the objects they are emitted by.
However, ~95% of the universe is known to consist of dark matter and dark energy, which don’t emit any light or any other electromagnetic waves.
Hence, most of the cosmos remains ‘invisible’ to astrophysicists and astronomers.
This changed with the detection of the gravitational waves, which can tell about origin and answer fundamental questions about outer space, such as how different galaxies have emerged and evolved over the entire course of the universe.
How were Low-frequency Gravitational Waves Detected?
Like a whole spectrum of electromagnetic waves, from microwaves to radio waves, there is a wide range of gravitational waves of different wavelengths, frequencies and energies.
The gravitational wave that was detected in 2015, and all subsequent detections after that, involved mergers of black holes that were relatively small in size. The gravitational waves produced by them are relatively feeble.
Only the waves produced just ahead of the merger, when the energy released was maximum, could be detected. These are like flashes of gravitational waves, lasting for maybe a few milliseconds
In a bid to discover low-frequency gravitational waves, scientists used an entirely different technology.
The researchers used six large radio telescopes around the world (including the one in Pune) to study objects called pulsars - distant rapidly-rotating neutron stars that emit pulses of radiation, observed from the Earth as bright flashes of light.
These bursts take place at extremely precise intervals, and therefore scientists use pulsars as ‘cosmic clocks’.
Some of the signals from these neutron stars arrived a little early while a few others were late, the discrepancies ranging in millionths of seconds.
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As per Moody’s, the Indian economy has recently crossed $3.5 trillion in size. The IMF expects it to exceed $3.7 trillion this year.
Currently, Indian economy's size is about that of China in 2007. But without a spur to manufacturing, it will be extremely difficult for India to follow China's growth trajectory.
A Comparison of Chinese and Indian Economy
A decade and a half ago, China had a per capita income of $2,694, while the IMF expects India’s per capita income to rise from $2,379 in 2022 to $2,601 in 2023.
According to World Bank, India’s gross domestic product was 64% of China’s in 1980.
By 2001 when China joined the World Trade Organization, India’s economy was only 28% as large as China’s.
And, despite several years of rapid growth in the 21st century, by 2021 India’s economy had fallen even further behind and equalled only 17% of the Chinese economy.
Points of Divergence between Indian and Chinese Economy:
Different Drivers of Growth
Investments and Exports
China’s meteoric rise has been driven by investments and exports.
Between 2003 and 2011, the country’s investment to GDP ratio (gross fixed capital formation) averaged 40 per cent.
In comparison, even during this high growth phase, the investment ratio in India averaged only around 33 per cent. Worryingly, the gap between the two countries has widened since.
In the years from 2012 to 2021, as the Chinese economy pulled further away, its investment ratio climbed even higher, averaging almost 43 per cent. In India, it fell to around 29 per cent as the investment momentum tapered off.
In 2022-23, India’s exports of goods and services surpassed $770 billion, while imports were around $890 billion.
In 2007, when the Chinese economy was of comparable size, the country’s exports had crossed $1.2 trillion, driven by exports of goods not services, while imports stood at $950 billion, signalling its deeper integration with the global economy.
Between 2007 and 2021, China’s exports averaged about 24 per cent of GDP. While India’s exports have averaged roughly 21 per cent over this period, they were almost stagnant at around 19 per cent between 2015 and 2020.
Tariff Rates
China’s emergence as the epicentre of global supply chains over the decades has been facilitated in part by the lowering of tariffs.
The country’s tariff rate (simple mean) fell from 10.69 per cent in 2003 to 8.93 per cent in 2007, declining further to 5.32 per cent in 2020.
In comparison, while India’s tariff rate fell from 25.63 per cent in 2003 to 8.88 per cent in 2017, it has risen thereafter.
High Participation of Female Labour Force
China also had and continues to have a considerably higher labour force participation rate.
In 2007, its labour force participation stood at almost 73 per cent (ages 15 and above).It has since declined to 67 per cent.
In India, the participation rate is estimated at around 50 per cent in 2022.
As the male labour force participation rate in both countries is roughly the same, the difference is largely due to female participation.
In China, the female labour force participation rate stood at 66 per cent in 2007. By 2022, it had declined to 61 per cent.
In India, it was considerably lower at 30 per cent in 2007, and has since fallen even further to 24 per cent in 2022.
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US-India Cooperation in Semiconductor Field Amidst Global Chip War
Quad: The leaders of Australia, Japan, India, and the US committed themselves to building resilient, diverse and secure supply chains of critical and emerging technologies including Semiconductors.
India-US iCET (Initiative on Critical and Emerging Technology)
It was launched by the US President and Indian Prime Minister on the sidelines of the Quad summit on May 2022.
The primary goal is to elevate and expand Indo-U.S. strategic technology partnership and defence industrial cooperation between the governments, businesses, and academic institutions of the two countries.
Resilient Semiconductor Supply Chains is one of the identified six focus areas of co-development and co-production under iCET.
Joint Task Force
A task force set up jointly by the US Semiconductor Industry Association and India Electronics Semiconductor Association together with the government’s Semiconductor Mission.
It will make a “readiness assessment” to identify “near term opportunities and facilitate long-term strategic development of complementary semiconductor ecosystems”.
The task force would also flag opportunities and challenges for India’s role in the global semiconductor value chain.
MoU on Semiconductor Supply Chain and Innovation Partnership: During the PM’s US state visit, an MoU was signed on Semiconductor Supply Chain and Innovation Partnership to promote commercial opportunities, research, talent, and skill development.
Announcement by US Companies for India’s Semiconductor Field
Micron Technology, a leading US semiconductor firm, announced a proposed investment of up to $825 million to build a facility in India, with the Indian government pitching in to take the combined investment value to $2.75 billion.
This will create up to 5,000 new direct and 15,000 indirect job opportunities in the next five years.
Lam Research announced a proposal to train 60,000 Indian engineers through its Semiverse Solution virtual fabrication platform.
Applied Materials announced a proposed investment of $400 million to establish a collaborative engineering centre in India.
India’s Chip Challenges
Similar attempts failed earlier: Three companies that applied to set up fabrication plants (Foxconn-Vedanta joint venture, Singapore’s IGSS, etc) failed to get off the ground for separate reasons.
Expensive Fab Setup: A semiconductor fabrication facility (or fab) can cost multiples of a billion dollars to set up even on a relatively small scale and lagging by a generation or two behind the latest in technology.
Resource Inefficient Sector
Chip fabs are also very thirsty units requiring millions of litres of clean water, an extremely stable power supply, a lot of land and a highly skilled workforce.
At the moment, there is no place in India that can guarantee 24×7 power or water supply.
Lack of Highly Skilled Workforce: Chip manufacturing also requires a highly skilled workforce. Industry experts have repeatedly said that chip making is “not like assembling a phone”.
Absence of “Chip Ecosystem”
The absence of a “chip ecosystem” is why, despite the political will, no big international chip makers have yet shown interest in India.
Taiwan has long been pushing India for a free trade agreement and a bilateral investment agreement to make it more attractive for TSMC, the world’s biggest chip maker, to set up base here, but Delhi has been reluctant.
Lack of Fabrication Capacities: India has a decent chip design talent but it never built-up chip fab capacity. India’s only government-owned semiconductor fabrication unit is in Mohali, Punjab.
Conclusion
India is at least two decades behind the chip curve. It could take the country 10-20 years to establish itself as a serious player in the semiconductor industry.
But for now, India has positioned itself in the global chip war, with a technology partnership that promises to take bilateral ties with the US to the next level.
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Why is Discovery Important?
Scientists have been looking for low-frequency gravitational waves for decades.
They believed that such ripples are perpetually rolling through space like background noise.
The latest breakthrough provides enough data to suggest that there is a gravitational wave background, which exists in our universe.
The discovery will help scientists expand their knowledge about the nature and evolution of the universe.
It will also help them gain more information about the environment around massive black holes.
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Challenges for Indian Economy
Employment Generation for Agriculture Dependent Labour Force
In China, the labour force employed in agriculture fell by roughly 1.5 percentage points per year between 2003 and 2019 (prior to the pandemic).
In India, it declined by around 1 percentage point.
Considering India’s labour force in agriculture continues to fall at its pre-pandemic pace over the coming decade the challenge before Indian economy is where they will be employed.
Semi-Skilled Employment in Manufacturing Sector
In the past, the bulk of jobs in India have been created, not in manufacturing, but in construction and services like trade and transport.
However, as formal manufacturing is much more productive than these sectors — it is twice as productive as transport, 2.5 times more productive than trade, and 3.75 times more productive than construction
The lack of employment generation in this sector has been and still remains India’s biggest growth challenge.
Export of Goods
Though exports, especially of services, have picked up over the past few years whether this momentum be sustained is a question.
Goods exports also need to pick the pace of services exports. This will have implications for job creation and the broader economy.
What Indian Economy Needs to Compete with China?
Increase Participation of Female Labour Force
A higher labour force participation rate and an expansion of the market will necessarily require female participation to increase in India.
A bigger labour force has implications for spending capacity. For example, passenger car sales in India stood at 3.8 million in 2022-23. In comparison, in 2007, 6.3 million cars were sold in China.
Mass Production
To make India an economic power, we need to do mass production. It will help achieve cost leadership and beat China’s pricing.
Around 80% of air conditioners, 70% of mobile sets, 60% of shoes, 74% of solar cells and 60% of premium luxury branded products in the world are now being manufactured in China.
We need to build clusters for that—and a one district one product strategy where MSMEs can share technology, expertise, and labour, and bring efficiency for mass production.
Skilling of Workforce
To have an edge on China or compete with China, India needs to impart skill development on a very large scale.
People transitioning from agriculture to industries need better skills. It will help for them to find better opportunities.
Diplomatic Strength
This is one area where it is not understood why India should have an asymmetry in power.
India needs to develop business skills in its diplomats.
We need to skill and re-skill them to focus and achieve both strategic and business goals from the relations with the countries they are stationed in.
Conclusion
Despite China’s runaway economic growth, there are possibilities for India to achieve extremely rapid growth over the next 20 years or soto compete directly with China.
India needs to fix some basic problems; labour force participation, tariffs, skilling workforce, etc.
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The new US-India technology partnership forged during recent visit of Indian PM to Washington DC identifies technology as the new geopolitical frontier.
A key element of the partnership is the resolve to diversify the global semiconductor supply chain, which is at the centre of the rivalry between the world’s two biggest economic powers, the US and China.
Semiconductor and its Importance
Semiconductor: It is usually comprised of silicon, which conducts electricity more than an insulator, such as glass, but less than a pure conductor, such as copper or aluminium.
Importance
Also known as semis/chips, semiconductors can be found in thousands of products such as computers, smartphones, appliances, gaming hardware, and medical equipment.
They are essential to almost every modern device, from a phone to advanced defence systems, and advanced artificial intelligence-powered machines.
But only a few countries are in the business of making chips, among the world’s most advanced technologies, and some specialise only in some aspects of it.
20th century was dominated by oil. In the 21st century Chips are the new oil.
US-China War on Semiconductors
Since 2020, the US has taken several steps aimed at
Denying semiconductor technology to China to prevent it from gaining high tech dominance over the world.
Pumping up its own domestic capacity for making chips.
For example, the Trump Administration listed the Chinese telecom giant Huawei and several ancillaries as a threat to US national security, and the Biden Administration retained restrictions on Huawei.
In 2020, China was the biggest market for semiconductor machines. Beijing’s “Made in China 2025” plan, launched in 2019 had prioritised achieving self-sufficiency in semiconductors.
But the export controls set in motion by the US and more are in the pipeline have made China’s mission look difficult.
In a retaliatory move, China has banned the US chipmaker company Micron from vital infrastructure projects.
In 2022, the US Congress passed the CHIPS and Science Act, providing $280 billion in new funding for domestic research and manufacturing of semiconductors in the US.
Current State of Chip Wars
Japan has also announced restrictions on semiconductor exports to China. The Japanese restrictions will take effect from July. China has warned of “consequences”.
As US works with key partners to restrict Chinese access to chip tech, China’s chip imports from Japan, South Korea and Taiwan, part of the US-led “Chip 4 Alliance”, fell by 20 per cent in the first five months of 2023.
US is also lobbying the Netherlands to take similar steps; the Dutch company ASML is the only maker in the world of deep ultraviolet lithography machines that are required to make certain kinds of chips.
Opportunities for India from the Ongoing Chip War
India is pushing itself as an alternative to China. India is aspiring for turning the ongoing war into its advantage.
India does not have native semiconductors firm but it is trying to attract foreign chipmakers companies by providing them incentives and various other benefits.
To realise this plan the government has announced a 10 billion dollars incentive plan which aims to boost manufacturing of semiconductors in India.
This is India’s chance to be a global player in the semiconductor sector, but success is not guaranteed.
India’s government must provide its homegrown industry with the needed help, both financially and material-wise, and strike the right balance between accepting U.S. partnership while not letting Washington dictate terms.
🔥मंजिलें बड़ी ज़िद्दी होती हैं हासिल कहाँ नसीब से होती हैं मगर, वहाँ तूफान भी हार जाते हैं जहाँ कश्तियाँ ज़िद पर होती हैं।
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