Daily Prelims Notes 9 August 2023

Daily Prelims Notes

9 August 2023

Table Of Contents

1. Referendum not an option under Constitution: SC
2. CBI Academy joining the INTERPOL Global Academy Network
3. CCD capital gain- Investors from Mauritius, Singapore, Cyprus face tax claim
4. Fiscal firepower necessary to handle exogenous shocks
5. Corporation tax rate cut results in loss of revenue for FY21
6. Row over Select Committee for Delhi Services Bill
7. Strategies for Mitigating Extreme Flooding: China and Slovenia Cases
8. India Defence Ministry to replace Microsoft OS with Maya
9. Learning from the CHIPS Act of the U.S.

1. Referendum not an option under Constitution: SC

Subject: Polity

Section: Constitution

Context: Seeking public opinion in a constitutional democracy like India has to be through established institutions. SC said that there is no question of referendum under the country’s Constitution.

Constitution:

It is described as the fundamental law of the land which contains the fundamentals of its polity and on the altar of which all other laws and executive acts of the state are to be tested for their validity and legitimacy.

Constitutionalism

Constitutionalism implies that the exercise of political power, should be bound by limitations, controls, checks and rules whether these exist in the form of a written or unwritten constitution. Constitutionalism becomes a living reality to the extent that these rules curb the arbitrary exercise of power and permit scope for the enjoyment of certain rights by the citizens.

Types of Direct Democracy

• Direct democracy has 4 devices – Referendum, Initiative, Recall and Plebiscite
  • Referendum – procedure in which a proposed legislation is referred to the electorate for acceptance through direct voting.
  • Initiative – method by means of which the people can propose a bill to the legislature for enactment.
  • Recall – way for voters to remove a representative or an officer before the expiry of his/her term, when he fails to discharge his duties properly.
  • Plebiscite – method of obtaining the opinion of people on any issue of public importance. It is generally used to solve territorial disputes.

2. CBI Academy joining the INTERPOL Global Academy Network

Subject: Polity

Section: National Body

• The Central Bureau of Investigation (CBI) Academy of India took a significant step towards enhancing international cooperation and bolstering law enforcement efforts by officially joining the INTERPOL Global Academy Network on 8 August as its 10th member.
• The move will help enhance regional and global police capacity as well as foster collaboration among law enforcement agencies worldwide.
• Launched in 2019, the INTERPOL Global Academy Network is led by INTERPOL’s Capacity Building and Training Directorate and aims to lead a global approach to law enforcement training.
• By assisting INTERPOL in delivering specialized trainings on its policing capabilities, offering programmes of continuing education, jointly developing and delivering new training programmes, and collaborating on joint research projects, Network members support INTERPOL in expanding upskilling opportunities for law enforcement around the globe.
• With a vast training catalogue and expertise, including advanced scientific investigations, cybercrime investigations, cyber forensics, economic crimes and anti-corruption, the CBI Academy of India will enrich the training offer available to INTERPOL member countries in the Asia region and beyond.

CBI

• Central Bureau of Investigation (CBI) is the premier investigating police agency in India.
• It functions under the superintendence of the of Personnel, Ministry of Personnel, Pension & Public Grievances, Government of India – which falls under the prime minister’s office.
• However for investigations of offences under the Prevention of Corruption Act, its superintendence vests with the Central Vigilance Commission.
• It is also the nodal police agency in India which coordinates investigation on behalf of Interpol Member countries.
• Its conviction rate is as high as 65 to 70% and it is comparable to the best investigation agencies in the world.
• The International Police Organization is commonly known as Interpol.
• It is an international organization facilitating international police cooperation against cross-border terrorism, trafficking, and other crime.
• INTERPOL has 194 member countries, making us the world’s largest police organization. State of Palestine is its member.
• All decisions regarding the activities of INTERPOL are made by the General Assembly which is it’s supreme governing body which meets annually.
• It is not a unit or part of united nation system. It is an independent international organization.
• HQ: Lyon in France.
• It was founded in 1923.
• Each country hosts an INTERPOL National Central Bureau (NCB), which links national police with our global network. in India, CBI is the NCB.
• Interpol notices: These are international alert/requests circulated by Interpol allowing police in member countries to share critical crime-related information. There are eight types of notices, seven of which are colour-coded by their function. An eighth Special Notice is issued at the request of the United Nations Security Council (UNSC).

3. CCD capital gain- Investors from Mauritius, Singapore, Cyprus face tax claim

Subject :Economy

Section: Capital Market

In News: Foreign investors from Mauritius, Cyprus and Singapore have been on the receiving notices for gains from investment in fully or compulsorily convertible debentures (CCDs) issued by Indian companies.

Key Points: 

• CCDs, which are compulsorily converted into equity after a specified period, became popular after the tax treaties of these regions with India were amended in 2017, with the aim of taxing capital gains on shares in India.
• Government view:
  • The tax authorities believe that capital gains accruing or arising to a tax resident is now taxable in India irrespective of the nature of instruments that are being sold.
  • FDI guidelines treat CCDs as equity for the purposes of reporting to the Reserve Bank of India. However, they are treated as debt for the purpose of income tax till the time of conversion.
• Foreign investor view:
  • Foreign investors believe that the sale of securities other than shares continue to remain non-taxable.
  • As CCD are debt instruments, there is no capital gains tax to be paid in India by, say, a Mauritius investor subscribing to CCDs of an Indian company.
  • Investors in CCDs are legitimately using these instruments for earning interest income and do not have the rights enjoyed by an equity holder until converted
• What does the treaty say?
  • The treaties, post amendment, made capital gains on “shares” taxable in India. However, the amendments do not apply to debt instruments.
  • Debt instruments still fall under the residual clause in the tax treaties, according to which the gains on such instruments will be taxable only where the resident is based.
• What do the Authority for Advance Ruling (AAR) and High court say?
  • The Authority for Advance Ruling had ruled that the gains arising on sales of equity shares and CCDs were taxable as interest income.
  • The HC, however, held that these gains should be treated as capital gains.
• What may be the solution?
  • Tax department can decide to treat CCDs as shares because the RBI treats these instruments at par with equity.
  • Alternatively authorities may apply GAAR to these transactions.

4. Fiscal firepower necessary to handle exogenous shocks

Subject :Economy

Section: Monetary Policy

In News: Finance ministry expressed inability to release the Medium-Term Expenditure Framework (MTEF)

Concept

Delayed Release of MTEF:

• Global uncertainties prompt Finance Ministry to hold back Medium-Term Expenditure Framework (MTEF) release.
• MTEF necessitates growth and revenue assumptions for meaningful expenditure projections.
• Maintaining “fiscal firepower” is crucial for managing external shocks.

Understanding FRBM and MTEF:

• Fiscal Responsibility and Budget Management (FRBM) Act guides fiscal planning.
• MTEF provides a roadmap for expenditure planning over a specified period.
• Flexible expenditure management and adherence to FRBM law enable effective responses to uncertainties.

FRBM Act, 2003

The act is officially titled the “Fiscal Responsibility and Budget Management Act, 2003.”

Objective:

• The primary objective is to ensure inter-generational equity in fiscal management and long-term macroeconomic stability.
• This includes reducing fiscal imbalances and preventing excessive government borrowing.

Fiscal Indicators:

• The act focuses on fiscal indicators such as fiscal deficit, revenue deficit, and effective revenue deficit to assess fiscal health.
• Fiscal deficit represents the excess of total expenditure over total receipts (excluding borrowings).
• Revenue deficit signifies the excess of revenue expenditure over revenue receipts (excluding borrowings).
• Effective revenue deficit denotes revenue deficit minus grants for the creation of capital assets.

Fiscal Responsibility and Budget Management Rules:

• The central government has the authority to prescribe rules for better fiscal management.
• These rules provide detailed guidelines for calculating fiscal indicators and ensuring consistency in computation.

Medium-Term Fiscal Policy Statement:

• The central government is required to present a Medium-Term Fiscal Policy Statement along with the annual budget.
• The statement outlines the government’s fiscal policy strategy for the next three years, ensuring alignment with fiscal consolidation objectives.

Fiscal Policy Strategy Statement:

• Presented along with the annual budget, this statement outlines fiscal policies and strategies for the upcoming year.
• It establishes how the government intends to adhere to fiscal targets and achieve its fiscal policy objectives.

Macroeconomic Framework Statement:

• The Macroeconomic Framework Statement is an integral part of the fiscal framework under the act.
• It outlines the assumptions and projections for key macroeconomic indicators such as GDP growth, inflation, and fiscal indicators.
• This statement provides a macroeconomic context for the fiscal policy strategy presented in the annual budget.

Medium-Term Expenditure Framework (MTEF):

• MTEF is a government planning tool that aligns policy priorities with budget allocations over 3-5 years, improving resource utilization and fiscal management.

In India, the MTEF was introduced to enhance transparency, accountability, and efficiency in government expenditure.

• MTEF comprises three components:
  • Rolling Multi-Year Perspective: Outlines government’s expenditure priorities over 3 years, allocating resources to sectors.
  • Linkage with Policy Priorities: Matches budget to government’s key policies, supporting economic and social goals.
  • Performance Measurement: Uses indicators to evaluate program impact, aiding monitoring and effectiveness assessment.

Fiscal Management Principles:

• The act lays down fiscal management principles including stability, equity, efficiency, and transparency.
• These principles guide the government’s fiscal decisions and actions.

Targets for Fiscal Indicators:

• The act sets targets for fiscal indicators to guide fiscal consolidation efforts.
• These targets include gradually reducing fiscal deficit and ultimately eliminating revenue deficit to achieve a balanced budget.
• Budget-2021: FRBM amended to provide a fiscal deficit of 6.8% (2021-22) and 4.5% (2025-26)-because a 4.5% target is recommended by 15th FC.

Escape Clauses:

• The act includes provisions allowing deviations from fiscal targets in exceptional circumstances.
• These escape clauses provide flexibility during times of natural disasters, national security concerns, and other exigencies.
• FRBM Act Section 4(2):
  • National Security / Act of War
  • National Calamity
  • If agriculture output and farm incomes collapse
  • Fall in real output/ GDP growth rate beyond x%
  • Structural reforms in the economy with unanticipated fiscal implications
• Govt may over cross/deviate from the fiscal deficit target by up to 0.5% of GDP, as recommended by NK Singh’s FRBM Review Committee.

Reporting and Transparency:

• The act emphasizes transparency by requiring the regular release of fiscal data and information.
• The government must report fiscal performance, adherence to targets, and reasons for deviations to the Parliament and the public.

Review and Amendments:

• The act permits periodic reviews and potential amendments to ensure its relevance in changing economic conditions.

Exemption for Special Category States:

• Special Category States may be exempted from certain provisions based on their unique circumstances.

Consequences of Non-Compliance:

• If the central government deviates from the targets, it must present reasons and corrective measures in the Budget.

The following documents to be released along with the budget annually – 

• Macroeconomic Framework Statement
• Medium-Term Fiscal Policy Statement
• Fiscal Policy Strategy Statement
• Medium-Term Expenditure Framework

5. Corporation tax rate cut results in loss of revenue for FY21

Subject :Economy

Section: Fiscal Policy

In News: Govt lost Rs 1 lakh crore revenue in FY21 after corporation tax rate cut

Key Points:

• A massive cut announced in 2019 effectively resulted in a 10-percentage-point drop in the tax rate.
• The corporation tax rate for all existing companies (manufacturing and non-manufacturing) was cut to 22 per cent (without surcharge and cess) from 30 per cent.
• Following the cut in corporation tax rate for companies in September 2019, the government faced a revenue loss of Rs 1,00,241 crore in the financial year 2020-21.
• Corporation tax collection data shared by Chaudhary, the provisional revenues stood at over Rs 8.28 lakh crore in the financial year 2022-23, higher than over Rs 7.12 lakh crore in 2021-22.

New Tax regime:

• Under the new regime introduced in September 2019, a tax rate of 15 per cent was announced under Section 115BAB for newly incorporated domestic companies, which make fresh investment by March 31, 2023, for manufacturing, production, research or distribution of such articles or things manufactured. This was later extended by one year to March 31, 2024.
• The corporation tax rate for all existing companies (manufacturing and non-manufacturing) was cut to 22 per cent (without surcharge and cess) from 30 per cent.

Criticism:

• The Reserve Bank of India had earlier noted that the new tax regime did not help kick-start the intended investment cycle.
• In its Annual Report for 2019-20, it said the tax rate cut may have been “utilised in debt servicing, build-up of cash balances and other current assets rather than restarting the capex cycle”.

6. Row over Select Committee for Delhi Services Bill

Subject :Polity

Section: Parliament

Context:

• Several MPs complained about their names being included in the proposed Select Committee for the Delhi Services Bill without their consent.
• Rajya Sabha Deputy Chairman Harivansh initiated a probe into the matter.
• The proposed committee was suggested by AAP MP Raghav Chadha.

What is the purpose of a Select Committee?

• A Select Committee is a temporary (ad-hoc) committee established to examine specific bills.
• It follows procedures outlined in the Rules of Procedure.
• Constituted by Parliament to consider and report on bills referred to them.

How are members selected for a Select Committee?

• Members are appointed by Parliament when a motion is adopted to refer a bill to the committee.
• Rule 125 of the Rajya Sabha Rules and Procedures allows any member to move an amendment for a bill to be referred to a Select Committee.
• Consent is required from the proposed member, and the mover needs to ascertain the member’s willingness to serve on the committee.
• Collecting signatures is not explicitly mentioned in the rules.

How does a Select Committee function?

• Quorum for each sitting is one-third of the total committee members.
• In case of tied votes, the chairman or presiding person has a second or casting vote.
• The committee can appoint sub-committees to examine specific aspects of the bill.
• Chairman of the Committee is appointed by the Chairman of the Rajya Sabha from among the committee members.
• If it is a Joint Committee, the proportion of members from the Rajya Sabha and the Lok Sabha is 1:2
• The member or Minister in charge of the Bill is generally included as a member of the Committee.
• The report is signed by the committee chairman, and dissenting opinions can be recorded.
• The report and dissenting notes are presented in parliament, printed, and circulated among all members.

What is the role of a Select Committee?

• The main task is to scrutinize the bill’s text clause by clause, ensuring a clear reflection of intent and objectives.
• The committee can invite experts, gather oral evidence, and have government officials explain provisions.
• After considering the evidence, conclusions are formulated, and amendments may be proposed to clarify intent.
• The Committee may also visit organizations and institutions for an on-the-spot study of matters connected with the bill.

What happens after a Select Committee’s report is submitted?

• The committee’s report is of a recommendatory nature.
  • The government can choose to accept or reject the committee’s recommendations.
• The committee can introduce its version of the bill, which can be discussed and passed if moved by the bill’s minister in charge.
• The government’s response to the committee’s recommendations is usually presented before the bill is further discussed or voted on in the Parliament.

What is a standing committee?

• The Standing Committees are permanent (constituted every year or periodically) and work on a continuous basis.
• Standing Committees can be classified into the following six categories:
  • Financial Committees
  • Departmental Standing Committees
  • Committees to Enquire
  • Committees to Scrutinise and Control
  • Committees Relating to the Day-to-Day Business of the House
  • House-Keeping Committees or Service Committees

What rules govern committees?

• They draw their authority from Article 105 and Article 118.
  • Article 105 deals with the privileges of MPs.
  • Article 118 gives Parliament authority to make rules to regulate its procedure and conduct of business.

What is a Committee on Privileges?

• This is a standing committee consisting of 15 members in Lok Sabha( 10 in Rajya Sabha) nominated by the Speaker (Chairman in case of Rajya Sabha).
• In the Rajya Sabha, the deputy chairperson heads the committee of privileges.

Powers and Functions:

• The committee examines every question involving a breach of privilege of the House or of the members or of any Committee thereof referred to it by the House or by the Speaker/Chairman.
• It also determines with reference to the facts of each case whether a breach of privilege is involved and makes suitable recommendations in its report.
• It also states the procedure to be followed by the House in giving effect to its recommendations.
• When a question of privilege is referred to the Committee by the House, the report of the Committee is presented to the House by the Chairman or, in his absence, by any member of the Committee.
• Where a question of privilege is referred to the Committee by the Speaker, the report of the Committee is presented to the Speaker who may pass final orders thereon or direct that it be laid on the Table of the House.
• The Speaker/Chairman may refer to the Committee any petition regarding the disqualification of a member on the ground of defection for making a preliminary inquiry and submitting a report to him.
  • The procedure to be followed by the Committee in these cases is so far as may be the same as inapplicable to questions of breach of privilege.

7. Strategies for Mitigating Extreme Flooding: China and Slovenia Cases

Subject :Geography

Section: Places in news

Deadly Flooding in China and Slovenia

• China’s Impact:
  • Typhoon Doksuri led to severe flooding and 40+ deaths in northeast China, including historic rainfall in Beijing.
• Slovenia’s Situation:
  • Heavy rain caused flooding, landslides, and a dam breach affecting two-thirds of Slovenia.
  • Other European countries also faced harsh weather.

India’s Flood Vulnerability and Management:

• Monsoon Impact: Heavy monsoon rains trigger floods, affecting regions like Kerala and Assam. For instance, the 2018 Kerala floods led to extensive damage.
• Himalayan Rivers: Rapid melting of Himalayan glaciers can cause flash floods, as seen in the 2013 Uttarakhand disaster.
• Urban Challenges: Poor drainage in cities results in urban flooding during monsoons. Mumbai’s frequent waterlogging showcases this issue.
• Deforestation: Reduced forest cover amplifies flood risk. The 2019 floods in Karnataka’s Kodagu region highlighted this concern.
• Coastal Threats: Coastal areas like Odisha face cyclone-induced flooding, such as Cyclone Fani in 2019.
• Climate Change Influence: Changing weather patterns contribute to increased flood events. Bihar’s annual Kosi River flooding reflects this trend.

Key Flood Management Strategies:

• Flood Forecasting: Central Water Commission predicts flood events using river gauges and observatories.
• Disaster Management Framework: The Disaster Management Act guides preparedness and response, with the NDRF mobilizing during crises.
• Integrated River Basin Approach: Sustainable water use balancing agriculture and flood control.
• Floodplain Zoning: Regulating construction in flood-prone areas.
• Infrastructure Development: Building embankments, dams, and reservoirs.
• Community Involvement: Awareness campaigns in flood-prone regions.
• Climate Resilience: Adapting strategies to changing flood patterns due to climate change.

Places in News:

Slovenia:

Location: Central Europe, bordered by Austria, Hungary, Croatia, and Italy.

Coastline: Small Adriatic Sea coastline (Gulf of Trieste), with Koper as the main port.

Capital: Ljubljana.

Rivers: Sava, Drava, Mura.

Famous Sites:

• Lake Bled: Scenic glacial lake with island and castle.
• Postojna Cave: Extensive cave system with formations.
• Predjama Castle: Built into a cave mouth.
• Škocjan Caves: Canyon and biodiversity.
• Soca River: Emerald waters, adventure sports.
• Piran: Coastal town with Venetian charm.
• Triglav National Park: Alpine landscapes.

Geology: Karst landscape with caves, sinkholes, and rivers.

Mountains:

• Julian Alps: Triglav Peak is the highest in Slovenia.
• Kamnik-Savinja Alps: Known for diverse scenery.

Language: Official language is Slovene.

Mura-Drava-Danube (MDD) was declared as the world’s first ‘five-country biosphere reserve’ by UNESCO.

• Austria, Slovenia, Croatia, Hungary and Serbia

8. India Defence Ministry to replace Microsoft OS with Maya

Subject :Science and technology

Section: Awareness in IT

Background and Motivation

• Rising cyber and malware attacks on defense and critical infrastructure.
• The decision to replace Microsoft OS with indigenous “Maya” OS to counter threats.

Operating System:

• An operating system (OS) is software that manages computer hardware and provides a user interface for software interaction.
• Examples: Windows, macOS, Linux, Android, iOS.
• Ubuntu is a popular open-source operating system based on the Linux kernel.
  • It’s known for its user-friendly interface and community-driven development.

Cyber Threats:

• Malware: Harmful software that damages computer systems, e.g., viruses and ransomware.
• Phishing: Deceptive messages aiming to extract sensitive info or trigger malicious links.
• DoS (Denial of Service) Attacks: Flooding systems to disrupt availability through overwhelming traffic.
• Ransomware: Encrypts data and demands payment for release.
• Social Engineering: Manipulating people to share sensitive details.
• Hacking: Unauthorized access for data theft, modification, or disruption.
• Insider Threats: Data breaches by individuals within an organization.
• Malvertising: Distributing malware through online ads.
• Data Breaches: Unauthorized access to private information.
• IoT Vulnerabilities: Exploiting weak points in Internet of Things devices.

Maya Operating System: Seamless Transition

• Built on open-source Ubuntu, resembling Windows interface.
• Users are assured of minimal disruption during migration.

Chakravyuh: End-Point Detection and Protection

• Chakravyuh deployed alongside Maya OS.
• Designed to detect and prevent malware attacks.

Evaluation and Adoption by Armed Forces

• Indian Navy approves and adopts Maya OS.
• Indian Army and Air Force evaluating for future adoption.

Rapid Development of Maya OS

• Maya OS developed by government agencies in six months.
• Addresses escalating cyberattacks and malware incidents.

Implications and Future Outlook

• Maya OS adoption sets cybersecurity precedent.
• Encourages sectors to prioritize local, secure technologies.

9. Learning from the CHIPS Act of the U.S.

Subject :Science and technology

Section: Awareness in IT

What is the CHIPS Act and its significance?

• The CHIPS Act (Creating Helpful Incentives to Produce Semiconductors and Science Act) was enacted in 2022 in the U.S., allocating $52.7 billion over five years to boost American semiconductor competitiveness, innovation, and national security.

How does the CHIPS Act structure its implementation?

• Funding Allocation: The Act splits funds into four areas:
  • CHIPS for America Fund (CFAF) ($50B) for manufacturing and research,
  • Department of Defense (DoD) ($2B) for unique defense technologies,
  • Department of State ($0.5B) for supply chain security, and
  • National Science Foundation (NSF) ($0.2B) for workforce growth.
• Inter-Agency Collaboration: The Act emphasizes inter-agency coordination, reflecting the priority given to the semiconductor sector.

How does India’s semiconductor policy compare to the CHIPS Act?

• Indian Approach: India’s policy is managed by the Ministry of Electronics and Information Technology (MeitY), divided among the India Semiconductor Mission (ISM) and the Center for Development of Advanced Computing (C-DAC), lacking the holistic structure of the CHIPS Act.
• Suggested Synergy: India can enhance policy effectiveness by adopting the multi-departmental approach of the CHIPS Act.

How does the CHIPS Act emphasize workforce development?

• Workforce Plans: Companies seeking funding under the Act must submit workforce development plans, highlighting the importance of skilled personnel.
• National Semiconductor Technology Center (NSTC): The NSTC collaborates with industry and academia to build a skilled semiconductor engineering workforce.

What is India’s approach to building a semiconductor workforce?

• Chips2 Startup (C2S) Programme:
  • MeitY’sChips2 Startup (C2S) program collaborates with universities and colleges.
    • Goal: Establish India as a semiconductor hub.
    • Applicants: Open to academia, R&D, startups, and MSMEs.
    • Focus: Train 85,000 engineers in VLSI and Embedded System Design.
    • Development Targets: Create 175 ASICs and 20 SoC prototypes in 5 years.
    • ESDM Growth: Contribute to Electronics System Design & Manufacturing sector.
    • Collaboration: Involves academia, R&D, industry, startups, and MSMEs.
    • Value Chain: Covers research, hardware design, system development, and R&D.
    • Participants: Includes IITs, NITs, IIITs, private colleges, and around 100 academic/R&D institutions.
    • Startup Involvement: Through collaborative projects, challenges, and proposals.
    • Tracks: Divided into Systems/SoCs/ASICs development, Application-Oriented Working Prototypes, and Proof of Concept Research.
    • Nodal Agency: C-DAC (Centre for Development of Advanced Computing).
  • C-DAC: Centre for Development of Advanced Computing, an entity under MeitY
  • Established: Founded in 1988.
  • Purpose: Engaged in research, development, and innovation in advanced computing and electronics.
  • Notable Projects: Developed India’s first supercomputer PARAM, and contributed to language technologies.
• Inclusivity: To ensure an inclusive strategy, India should focus on certifying quality private training institutes alongside universities.

How is accountability structured in the CHIPS Act?

• CHIPS Program Office (CPO): The CPO guides project viability criteria, ensuring alignment with strategic goals.
• Investment Principals and Financial Structuring Directors: These roles catalyze private sector investment, diversifying funding sources.
• Transparency and Reporting: Regular monthly progress reports enhance transparency and accountability.

What areas of research does the CHIPS Act prioritize?

• Future Research Focus: The Act allocates $11B to future research, particularly advanced packaging for a competitive edge.
• Forward-Looking Approach: The Act’s focus on advanced packaging emphasizes the importance of continuous technological innovation.

How does India’s semiconductor strategy compare in terms of research focus?

• Advanced Manufacturing and Packaging: India could balance core manufacturing with investment in research on advanced techniques, aligning with the CHIPS Act’s approach.
• Strategic Balance: India should prioritize immediate manufacturing capacity while investing in research for long-term technological leadership.

What are the lessons that India can learn from the CHIPS Act?

1. Comprehensive Approach: India should adopt a holistic, multi-agency strategy akin to the CHIPS Act for consistent policy implementation.
2. Research Prioritization: India should allocate resources for research in emerging semiconductor trends, as per the Act’s emphasis.

Transparency and Management: Regular reporting, transparency, and accountability are crucial for successful policy execution.

Prelims Titbits

• Indonesia -largest nickel reserves in the world