DNA Technology Regulation Bill
DNA Technology Regulation Bill The DNA Technology Regulation Bill was introduced in the Lok Sabha in July 2019. The Bill was then referred to the Parliamentary Standing Committee on Science and Technology. The committee recently, in a draft report, pointed out that some of the provisions in the bill could be misused in different ways. The standing committee pointed out that the DNA profiles can reveal extremely sensitive information of an individual & hence could be misused for caste/community-based profiling. There are criticisms that the DNA profiling bill is a violation of human rights as it could also compromise with the privacy of the individuals. Also, questions are being raised on how the bill plans to safeguard the privacy of DNA profiles stored in the databanks Purpose The primary intended purpose of “The DNA Technology (Use and Application) Regulation Bill, 2019” is for expanding the application of DNA-based forensic technologies to support and strengthen the justice delivery system of the country. The utility of DNA based technologies for solving crimes, and to identify missing persons, is well recognized across the world. By providing for the mandatory accreditation and regulation of DNA laboratories, the Bill seeks to ensure that with the proposed expanded use of this technology in this country, there is also the assurance that the DNA test results are reliable, and furthermore that the data remain protected from misuse or abuse in terms of the privacy rights of our citizens. DNA Technology Regulation Bill The proposed legislation will empower the criminal justice delivery system by enabling the application of DNA evidence, which is considered the gold standard in crime investigations. Establishment of the National and Regional DNA Data Banks, as envisaged in the Bill, will assist in forensic investigations. The proposed Bill will give fillip to the development of uniform code of practices in all laboratories involved in DNA testing throughout the country . This will aid in scientific up gradation and streamlining of the DNA testing activities in the country with appropriate inputs from the DNA Regulatory Board which would be set up for the purpose. It is expected that the expanded use of this scientifically driven technology would empower the existing justice delivery system. Challenges The DNA profiles can reveal extremely sensitive information of an individual & hence could be misused for caste/community-based profiling. DNA profiling bill is a violation of human rights as it could also compromise the privacy of the individuals. One of the longstanding defects of India’s criminal justice system is the lack of legal aid systems to help both victims and accused, especially those from marginalized sections of society. Biological Surviallnce Lack of infrastructure for conducting DNA tests in the country. DNA database will exacerbate rather than solve problems in the criminal justice system. Way Forward To establishing Independent Regulator The number of labs need to be addressed Ensuring Transparency To protecting the citizens’ privacy. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Rescue efforts resume in Tapovan dam tunnel
Rescue efforts resume in Tapovan dam tunnel Rescue operations at the NTPC’s Tapovan hydel project tunnel in Uttarakhand’s Chamoli district, where about 35 workers were trapped after a snow avalanche triggered flash floods on Sunday, continued There was, however, a brief halt due to reports of an increase in the water level of Dhauliganga river, on which the project is built. With two more bodies being recovered, the toll in the accident has risen to 36. Joint rescue team “The joint team has now resumed work inside the tunnel. Earlier, following information about a rise in the water level, we had taken some precautionary measures for about an hour,” said an official. Union Home Secretary Ajay Kumar Bhalla chaired a meeting to review the progress of the rescue and relief work. “Secretary, Defence Research and Development Organisation, has been asked to depute experts for analysis of the situation and for taking appropriate remedial measures in coordination with the Central and State agencies,” said a Ministry statement. In the early hours of Thursday, the team started a drilling operation to peep into an interlinked silt tunnel, in the hope of establishing contact with the trapped workers. The joint team had been clearing sludge and debris from the main project tunnel for the past four days, but was not able to reach the T-junction where workers are suspected to be trapped. Read Also Rat hole mining Tapovan dam tunnel: Tapovan Hydro-Electric Power Dam, also known as Rishi Ganga Project was completely washed off following a glacier burst in the Chamoli district, said the Indian Air Force’s initial report as Advanced Light Helicopter (ALH) deployed at Joshimath has undertaken recce of affected areas. “The dam is called Tapovan Hydro-Electric Power Dam. It is on the confluence of Dhauli Ganga and Rishi Ganga. As per the recce Tapovan dam also called Rishi Ganga Project has been completely washed off,”. It said that two bridges at the entrance of Malari valley and near Tapovan are also washed away, while the main road between Joshimath to Tapovan is intact. “Construction work and hutments on valley bottom are damaged. Rubble was seen from the entrance of Nanda Devi glacier till as down as Pipalkoti and Chamoli along Dhauliganga and Alaknanda,”. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
New York Convention
Cairn files case in U.S. to push India to pay $1.2 bn award Cairn Energy has filed a case in a U.S. district court to enforce a $1.2 billion arbitration award it won in a tax dispute against India, a court document showed, ratcheting up pressure on the government to pay its dues. In December, an arbitration body awarded the British firm damages of more than $1.2 billion plus interest and costs. The tribunal ruled India breached an investment treaty with Britain and said New Delhi was liable to pay. Cairn asked the U.S. court to recognise and confirm the award, including payments due since 2014 and interest compounded semi-annually, according to the Feb. 12 filing seen by Reuters. The case marked a first step in Cairn’s efforts towards recovering its dues, potentially by seizing Indian assets, if the government did not pay, a source with knowledge of the arbitration case told Reuters. “If Cairn wins the case, it will be a step towards attaching and seizing Indian assets overseas, especially in the U.S.,”. Reuters reported last month that Cairn was identifying India’s overseas assets, including bank accounts and even Air India planes or Indian ships, that could be seized in the absence of a settlement. New York Convention Cairn aims to enforce the award under international arbitration rules, commonly called the New York Convention, and recover losses caused by India’s “unfair and inequitable treatment of their investments”, the court filing showed. Read India Foreign Policy Objectives of New York Convention: Recognizing the growing importance of international arbitration as a means of settling international commercial disputes, the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the Convention) seeks to provide common legislative standards for the recognition of arbitration agreements and court recognition and enforcement of foreign and non-domestic arbitral awards. The term “non-domestic” appears to embrace awards which, although made in the state of enforcement, are treated as “foreign” under its law because of some foreign element in the proceedings, e.g. another State’s procedural laws are applied. The Convention’s principal aim is that foreign and non-domestic arbitral awards will not be discriminated against and it obliges Parties to ensure such awards are recognized and generally capable of enforcement in their jurisdiction in the same way as domestic awards. An ancillary aim of the Convention is to require courts of Parties to give full effect to arbitration agreements by requiring courts to deny the parties access to court in contravention of their agreement to refer the matter to an arbitral tribunal. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Digital Services Tax
Digital Services Tax The United States Trade Representative (USTR) published a report concluding that the 2 per cent digital services tax (DST) introduced by the Indian government vide the 2020 Finance Act discriminates against US businesses, contravenes settled principles of international tax law, and restricts US commerce. The report was published following an investigation conducted by USTR under section 301 of the US Trade Act, 1974, which authorises it to appropriately respond to a foreign country’s action that is discriminatory and negatively affects US commerce. India ’s response: India’s 2 per cent DST is levied on revenues generated from digital services offered in India, including digital platform services, digital content sales, and data-related services. Pertinently, India was one of the first countries in the world to introduce a 6 per cent equalisation levy in 2016, but the levy was restricted to online advertisement services (commonly known as “digital advertising taxes” or “DATs”). The 2020 DST, however, is broader in scope and extends to all kinds of digital transactions. The DST is aimed at ensuring that non-resident, digital service providers pay their fair share of tax on revenues generated in the Indian digital market. Currently, Indian double taxation avoidance agreements (tax treaties) with foreign jurisdictions do not permit the source-based taxation of business profits of non-resident companies in India in the absence of what is called a “permanent establishment” (PE). By definition, a PE is a fixed place of business through which the business activities of a non-resident company are carried on in India. Importantly, while non-resident, non-digital service providers pay Indian corporate tax on income attributed to a PE in India, business models employed by non-resident digital service providers obviate the need for a physical presence in India and profits attributed to the Indian market could easily escape the Indian income tax net. sections 301(b) and 304(a)(1)(B) of the Trade Act provide that if the U.S. Trade Representative determines that an act, policy, or practice of a foreign country is unreasonable or discriminatory and burdens or restricts United States commerce, the U.S. Trade Representative shall determine what action, if any, to take under Section 301(b). USTR Report Findings: The USTR report finds the DST to be discriminatory on two counts. First, it states that the DST discriminates against US digital businesses because it specifically excludes from its ambit domestic (Indian) digital businesses. And second, according to the report, the DST does not extend to identical services provided by non-digital service providers. While both these findings may seem justified at first glance, they are wholly misplaced and disregard the background and context in which the DST was introduced. Several aspects of the DST exacerbate this tax burden, including the DST’s extraterritorial application, its taxation of revenue rather than income, and its low domestic revenue threshold which allows India to tax U.S. firms that do relatively little business in India. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
International Atomic Energy Agency
International Atomic Energy Agency The International Atomic Energy Agency is the world’s central intergovernmental forum for scientific and technical co-operation in the nuclear field. It works for the safe, secure and peaceful uses of nuclear science and technology, contributing to international peace and security and the United Nations’ Sustainable Development Goals. Widely known as the world’s “Atoms for Peace and Development” organization within the United Nations family, the IAEA is the international centre for cooperation in the nuclear field. The Agency works with its Member States and multiple partners worldwide to promote the safe, secure and peaceful use of nuclear technologies. IAEA The IAEA was created in 1957 in response to the deep fears and expectations generated by the discoveries and diverse uses of nuclear technology. The Agency’s genesis was U.S. President Eisenhower’s “Atoms for Peace” address to the General Assembly of the United Nations on 8 December 1953. From the beginning, it was given the mandate to work with its Member States and multiple partners worldwide to promote safe, secure and peaceful nuclear technologies. The objectives of the IAEA’s dual mission – to promote and control the Atom – are defined in Article II of the IAEA Statute. For the 2020-2021 period, the new composition of the 35-member IAEA Board will be as follows: Argentina, Australia, Austria, Brazil, Canada, China, Egypt, Estonia, France, Germany, Ghana, Greece, Hungary, India, Japan, Kuwait, Malaysia, Mexico, Mongolia, New Zealand, Nigeria, Norway, Panama, Paraguay, Peru, Poland, Russian Federation, Saudi Arabia, Senegal, South Africa, Sweden, Switzerland, United Arab Emirates, United Kingdom of Great Britain and Northern Ireland, and United States of America. The newly elected Board members are the following: Argentina, Austria, Egypt, Malaysia, Mexico, New Zealand, Peru, Poland, Senegal, Switzerland, United Arab Emirates. Read Nuclear Magnetic Resonance India – IAEA: India has become the 35th country to join the International Atomic Energy Agency (IAEA) Response and Assistance Network(RANET), a group of states which offer assistance to mitigate the consequences of nuclear or radiological emergencies. Through RANET, states can register their emergency preparedness and response capabilities, including support for radiation measurements, medical advice or treatment, and specialized equipment. This enables the IAEA’s Incident and Emergency Centre to promptly mobilize an assistance team upon request of a state affected by an emergency. “India’s emergency preparedness and response capabilities can now be offered to countries during an emergency, if these countries ask for assistance. This shows a strong commitment by India to strengthen the international framework for nuclear and radiological emergency preparedness and response,” which serves as a focal point for coordinating and facilitating international assistance. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
High-security number plates to be mandatory in Karnataka
High-security number plates to be mandatory in Karnataka Motorists who registered their vehicles more than two years ago will have to change the number plates as Karnataka is making the installation of High-Security Registration Plates (HSRP) mandatory for all vehicles. As per the Transport Department’s data, 2.10 crore vehicles were registered till March 2019, of which 80.49 lakh were registered in Bengaluru alone. The owners will have to pay to replace the number plates. The rule for installing HSRPs is already applicable for vehicles registered after April 1, 2019. The State government had initiated the implementation of HSRP in 2010-11. However, the tender process was embroiled in various controversies and the matter also reached the courts. HSRP: A high security registration plate is made up of aluminium and is fixed on the vehicle using two non-reusable locks. The registration plate comes with a hot-stamped chromium-based hologram of Ashoka Chakra on the top left corner which is blue in colour and precisely measures 20mm x 20mm. At the bottom left corner of the plate is a 10-digit PIN (permanent identification number) that is laser-engraved on the reflective sheet. Similarly, the HSRP also comes with a hot-stamped film applied on the registration numerals and letters bearing the inscription ‘India’ at a 45-degree angle. Once the unique registration is fixed, it is then electronically linked to the vehicle. The central govt has not capped the price of HSRP which means the cost could differ in various states. On average, the HSRP costs around Rs 400 for two-wheelers, up to Rs 1,100 for four-wheelers depending on the category. The colour-coded stickers can be fitted for Rs 100 for vehicles with an HSRP. Benefits: The primary reason behind this mandate is that the old number plates are quite easy to tamper with and can be taken out or switched easily. A stolen vehicle always ends up with a replaced registration plate, making it difficult for the authorities to track it down, but the HSRPs come with a non-removable snap-on lock and are quite difficult to replace. The HSRPs are also beneficial because essential details of a car including engine number and chassis number are stored in a centralized database. The stored data along with the 10-digit PIN becomes crucial in identifying a stolen car. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Theatre High Altitude Area Defense – Missile System
Theatre High Altitude Area Defense THAAD – Missile System The THAAD terminal (formerly theatre) high-altitude area defence missile system is an easily transportable defensive weapon system to protect against hostile incoming threats, such as tactical and theatre ballistic missiles, at ranges of 200km and altitudes of up to 150km. The THAAD terminal (formerly theatre) high-altitude area defence missile system is an easily transportable defensive weapon system to protect against hostile incoming threats, such as tactical and theatre ballistic missiles, at ranges of 200km and altitudes of up to 150km. THAAD system provides the upper tier of a ‘layered defensive shield’ to protect high-value strategic or tactical sites such as airfields or populations centres. The THAAD missile intercepts exo-atmospheric and endo-atmospheric threats. The sites would also be protected with lower and medium-tier defensive shield systems, such as the Patriot PAC-3, which intercepts hostile incoming missiles at 20 to 100 times lower altitudes. THAAD system has maintained a 100% success rate over its last 16 intercept tests since the beginning of production. The system used a government-developed remote launcher kit in its 16th attempt in August 2019, for the first time, to extend the range of the defended area. THAAD- China: China has issued a statement reiterating its long-standing objections to the presence of the US THAAD missile defence system in South Korea overnight operation to bring in new, replacement interceptor missiles to the US base in South Korea. China has been objecting to the defence system since it was first deployed in South Korea three year ago, causing a deterioration in ties between the two countries. South Korea-China: In South Korea, the THAAD missile defense system is operated by the US army stationed in the country. The US had previously announced that the deployment of this missile defense system was a countermeasure against potential attacks by North Korea, particularly after the country had engaged in testing ballistic missiles. In 2017, matters escalated in the Korean Peninsula after North Korea test fired a few missiles in the direction of US bases in Japan. Following this incident, the US amended its plans and moved the systems to its army base in Osan, South Korea while the final deployment site was being prepared. These moves by the US and by extension, South Korea, particularly angered China. For a while the dispute has temporarily subsided, if not resolved. However, with the latest developments, it appears the controversy has resurfaced. China opposing THAAD in South Korea: China’s opposition has little to do with the missiles itself and is more about the system’s inbuilt advanced radar systems that could track China’s actions. The controversy also has much to do with the geo-politics and complex conflicts in East Asia, with the US having a presence in the region particularly through its many military bases in Japan and South Korea. China believes the US exerts influence over South Korea and Japan and may interfere with Beijing’s long-term military, diplomatic and economic interests in the region. China had issued a statement urging the US not to harm bilateral relations between Beijing and Seoul. The US and South Korea have consistently maintained that these missiles are only to counter potential threats by North Korea. South Korea also issued a statement saying the number of missiles had not increased, but had only been replaced with newer versions. China could change its approach to North Korea, making this THAAD business less necessary in the short-term. Source: The Indian Express Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Udyamimitra Portal
Udyamimitra Portal Udyamimitra Portal is an enabling platform, aims to provide ‘End to End’ solutions not only for credit delivery but also for the host of credit plus services by way of handholding support, application tracking, multiple interface with stakeholders (i.e. lenders, service providers, applicants). Small Industries Development Bank of India (SIDBI) which is the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities in the country. Benefits: The portal provides access to both financial (1.25 lakh lender branches) and non financial services (17000+ handholding agencies) with three distinct features viz. seek handholding support; select and apply for loans to preferred banks enable faster loan processing. Further, New age lenders viz. Fintechs, NBFCs, Small Finance Banks, MFIs are being on-boarded on the platform for enhancing the flow of credit to MSMEs. Apart from linking prospective borrowers to lenders for loans, the web portal also provides handholding support through a network of agencies engaged in application filling/ report preparation, financial training, skill development, mentoring, entrepreneurship development programmes, work shed and subsidy schemes. Features Matchmaking platform– It provides a unique match making platform to MSME loan seekers, lenders as also handholding agencies. The portal has designed capability to accept varied MSME loan applications. Presently loans upto 10 crore can be accessed. On entering Portal, the user is guided for registration and login. Based on information furnished by a prospective entrepreneur the system categorizes the applicants into ‘trainee’ (those needing training or other help before they are ready for entrepreneurship) and ‘ready’ borrowers (borrower feels he/she is ready to approach lenders for loan). It then guides them to access handholding support or direct loan application module as per their requirement. Ready Borrower can submit its loan application online with instant acknowledgement through SMS/email. The submitted application flows to the preferred bank as selected by the loan applicant with online notification to the Nodal Officer of the bank as also Lead District Managers. It facilitates Access to Non Financial Services– The applicant may search for contact details of the required handholding agency in the vicinity of his place of proposed enterprise (based on the state and district given at the time of registration) to avail services. The portal has mapped hand holding agencies in different areas of expertise viz. financial training, skill development, project report preparation, application filing, work sheds and access to margin money/subsidy support being operated by various state/central organizations/corporations. The aim is to evolve this as a portal attending to the entrepreneurs need during entire enterprise development cycle. Access to Finance – Presently, 1.25 lakh branches (public sector banks, private sector banks, foreign banks, NBFCs, Fintechs, Small Finance Banks) are mapped on the portal. The portal replaces the manual operations with electronic platform where pre-sanction process shall get standardized in a simpler way in all banks. The portal has a MARKET PLACE where bankers would be able to compete themselves in their loan delivery mechanism. The Portal is designed to obtain application forms, gather and provide information, enable registration, provide links for handholding and assist in tracking request for handholding or loan. At the loan market place, a preferred banker or any other banker who are active, undertake P3 (peruse, pick and process) on the loan applications offline as also mark their sanctions and rejections online. Applications from the virtual loan market are picked up by lenders and disposal of the applications are expected to be ensured as per Code of Commitment for its Customers adopted by respective banks. All submitted applications will be available at virtual market place for credit access to entrepreneurs and status visible to all stakeholders viz. lenders, handholding agencies, applicants, SIDBI and Govt. agencies till the same is disbursed by one of the lenders. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Ghana first country to receive COVAX vaccines
Ghana first country to receive COVAX vaccines Ghana received the world’s first delivery of coronavirus vaccines from the United Nations-backed COVAX initiative on Wednesday — the long-awaited start for a program that has thus far fallen short of hopes that it would ensure shots were given quickly to the world’s most vulnerable people. The arrival of 600,000 doses of the AstraZeneca vaccine in the West African country marks the beginning of the largest vaccine procurement and supply operation in history, according to the World Health Organization and UNICEF. It is a linchpin of efforts to bring the pandemic to an end and has been hailed as the first time the world has delivered a highly sought-after vaccine to poor countries during an ongoing outbreak. With the first shipment of doses, we can make good on the promise of the COVAX facility to ensure people from less wealthy countries are not left behind in the race for life-saving vaccines. However, the initiative has been hampered by the severely limited global supply of doses and logistical problems. Although it aims to deliver 2 billion shots this year, it currently has agreements only for several hundred million shots. COVAX: COVAX is one of three pillars of the Access to COVID-19 Tools (ACT) Accelerator, which was launched in April by the World Health Organization (WHO), the European Commission and France in response to this pandemic. Bringing together governments, global health organizations, manufacturers, scientists, private sector, civil society and philanthropy, with the aim of providing innovative and equitable access to COVID-19 diagnostics, treatments and vaccines. The COVAX pillar is focussed on the latter. It is the only truly global solution to this pandemic because it is the only effort to ensure that people in all corners of the world will get access to COVID-19 vaccines once they are available, regardless of their wealth. Why we need COVAX: Developing a vaccine against COVID-19 is the most pressing challenge of our time – and nobody wins the race until everyone wins. The global pandemic has already caused the loss of hundreds of thousands of lives and disrupted the lives of billions more. As well as reducing the tragic loss of life and helping to get the pandemic under control, introduction of a vaccine will prevent the loss of US$ 375 billion to the global economy every month. Global equitable access to a vaccine, particularly protecting health care workers and those most-at-risk is the only way to mitigate the public health and economic impact of the pandemic. Enroll today with the best civils service academy and take your first step towards your Civils journey. Feel free to reach out to us for any inquiries, collaborations, or support. We’re here to help. join now
Food processing revolution needed
Food processing revolution needed The time has come to increase the private sector participation in all areas of agricultural research and development as well as in the food processing space, according to Prime Minister Narendra Modi. Food processing: Food processing is the transformation of raw ingredients into food, or of food into other forms (ie. food processing may denote direct manufacturing of food or value addition on existing food). Food processing typically takes harvested crops or butchered animal products and uses these to produce long shelf-life food products. Significance: Food processing sector in India is a composite sector comprising two broad segments viz. organized and unorganized segments. There are an estimated 25-lakh micro food processing enterprises in the country, which are unorganized and unregistered. With 7% of investment in plant & machinery, the unorganized enterprises contribute of 74.3% of employment (a third of which are women), 12% of output and 27% of value addition in the food-processing sector. Nearly 66 per cent of these units are located in rural areas and about 80 per cent of them are family-based enterprises. The organized sector5 with nearly 40,000 units accounts for 93% of the plant & machinery in the sector, in value terms. This segment accounts for 26% of employment and contributes around 90% of output and 72% GVA The Indian food processing industry has remarkable capability to grow, considering the still promising levels of processing currently. Though India’s agricultural production base is practically strong, wastage of agricultural produce is large. Goals and Roles: A strong and dynamic food processing sector plays a vital role in reduction in the wastage of perishable agricultural produce, enhancing shelf life of food products,ensuring value addition to agricultural produce, diversification &commercialization of agriculture, generation of employment, enhancing income of farmers and creating surplus for the export of agro & processed foods. In the era of economic liberalization, all segments including; private,public and co-operative sectors have defined roles to play and the Ministry promotes their active participation. The Ministry of Food Processing Industries has a clear goal of attaining these objectives by facilitating and acting as a catalyst to attract quality investments from within India and abroad into this sector with the aim of making food processing a national initiative.With this overall objective, the Ministry aims to: Enhance farmer’s income by better utilization and value addition of agricultural produce Minimize wastage at all stages in the food processing chain by the development of infrastructure for storage, transportation and processing of agro-food produce; Introduce of modern technology into the food processing industries from both domestic and external sources; Encourage R&D in food processing for product and process development and improved packaging; Provide policy support, and support for creation of Infrastructure, capacity expansion/ Upgradation and other supportive measures form the growth of this sectors; Promote export of processed food products. Food processing revolution – Challenges: · Availability of raw materials · Storage Constraints · Transportation Issues · Technological equipment · High competition Government Initiatives: Recognising the role that FPI can play in promoting employment and income in the rural sector, the Government of India has identified it as a priority sector under the ‘Make in India’ Programme. FPI offers an opportunity to reduce dependence on agriculture in the rural areas as the main employment generating sector. Various initiatives have been taken by the Government to promote this sector considering the challenges faced by the sector. The Ministry of Food Processing Industries has identified six key challenges faced by the food processing industry: (i) gaps in supply chain infrastructure (i.e., lack of primary processing, storage and distribution facilities); (ii) inadequate link between production and processing; (iii) seasonality of operations and low capacity utilisations; (iv) institutional gaps in supply chain, viz., dependence on APMC markets, etc.; (v) inadequate focus on quality and safety standards; and (vi) lack of product development and innovation (Government of India, 2018). Accordingly, the focus has been to smoothen the supply chain by creating infrastructure, promoting exports, improving quality standards, expanding supply of formal credit, particularly to small and medium enterprises, and broadening skilled labour pool in the economy. Way Forward: Food processing revolution was now overdue for several decades. “In the 21st century, in a time of increasing agricultural production, India needs a post-harvest food processing revolution, with a focus on value addition. It would have been good for the country had this been done two to three decades back,”. In order to ensure that such a revolution takes place speedily, apart from the participation of farmers, public private partnerships were also needed. It was critical that storage facilities and processing units were available near the fields. Seaweed, beeswax, millets, coarse cereals and organic vegetables were the other sectors with significant potential. Conclusion: Though India is a major producer and exporter of agricultural produce at raw material stage, only less than 10 per cent of them are processed and traded. One major reason for this is the large consumer base domestically and having preference for fresh produce over processed food. Slow pace of urbanisation and low labour force participation of women have resulted in the preference for fresh foods at the All-India level. India has the potential to emerge as a major exporter of processed food by adhering to the quality standards. The Government initiatives for strengthening quality standards can provide impetus to the sector An analysis of corporate data showed that profitability of food processing firms has been either higher or comparable with the levels of other firms. However, the value-added component in food processing firms was found to be lower than other firms operating in the industrial sector. The econometric analysis on credit reveals the importance of credit for growth in this sector. Relative to the share of the food processing sector in industrial GVA, sectoral credit data suggest adequate availability of credit for the sector. With the bourgeoning urban and young population, demand for processed food items is set to increase in the coming years. The food processing industry in India needs to gear up to meet
