28 Jun 2023: UPSC Exam Comprehensive News Analysis

A. GS 1 Related

Nothing here for today!!!

B. GS 2 Related

Category: INTERNATIONAL RELATIONS

1. The concerns about India-U.S. digital trade

Syllabus: Bilateral groupings and agreements involving India and/or affecting India’s interests.

Prelims: About various hurdles hindering digital trade between India and the U.S.

Mains: India-U.S. bilateral relations

Context:

Current status of India-U.S. technology trade and the concerns raised by U.S. tech firms regarding policy barriers in different sectors.

Key Details:

• During Prime Minister Narendra Modi’s state visit to the U.S., technology cooperation was a significant topic of discussion. 
• However, according to the Computer & Communications Industry Association (CCIA), digital trade between the two nations faces policy hurdles.
  • Computer & Communications Industry Association (CCIA) represents major U.S. tech companies.
• This article summarizes the current status of India-U.S. technology trade and highlights the concerns raised by U.S. tech firms.

Bilateral Trade Overview:

• In FY2023, the U.S. became India’s largest trading partner, with a bilateral trade increase of 7.65% to $128.55 billion in 2022-23.
• However, digital or technology services have not played a prominent role in bilateral trade.
• The U.S. ran a $27 billion deficit in trade in digital services with India in 2020.

Initiative on Critical and Emerging Technology (iCET):

• The iCET, announced by President Joe Biden and Prime Minister Narendra Modi, aims to strengthen the tech partnership.
• It established a Strategic Trade Dialogue to address regulatory barriers, align export controls, and promote deeper cooperation in critical areas.

Concerns Raised by U.S. Tech Firms:

• Discriminatory Regulations and Policies:
  • The CCIA highlights the “significant imbalance” and “misalignment” in the U.S.-India economic relationship.
  • U.S. digital service providers face policy barriers and a protectionist posture from India.
  • India’s guidelines on sharing geospatial data favour Indian companies, providing preferential treatment.
  • India’s shift towards greater government censorship and control over political speech hinders U.S. companies’ operations.
• Taxation Measures:
  • U.S. tech firms object to India’s expanded version of the “equalization levy” on digital services.
  • The equalization levy imposes taxes on non-resident suppliers of digital services in India.
  • The levy has led to double taxation, constitutional validity concerns, and compliance issues.
• India’s IT Rules 2021:
  • The IT Rules burden social media intermediaries (SMIs) with compliance requirements.
  • The rules include impractical compliance deadlines and content takedown protocols.
  • SMIs must appoint local compliance officers and comply with Grievance Appellate Committees’ decisions.
• Draft Data Protection Law:
  • Ambiguities exist in the new draft of the Digital Personal Data Protection Bill, impacting cross-border data flows and compliance timelines.
  • India’s policy on data flows will have global implications, similar to the EU’s GDPR.
  • Data localization requirements increase operating costs and may be seen as discriminatory.
• Telecom Bill:
  • The draft Telecommunications Bill, 2022, expands the regulatory scope to cover internet-enabled services.
  • Over-the-top (OTT) communication services, such as messaging platforms, would face onerous obligations.
  • The law would impose licensing requirements, government access to data, encryption rules, and more.
• Other Policy Barriers:
  • A proposed “Digital Competition Act” aims to address anti-competitive practices by big tech companies.
  • The proposal includes estimated taxes for significant digital intermediaries, perceived as targeting U.S. tech firms.

Conclusion:

• Cooperation on technology is a key aspect of India-U.S. relations, but policy barriers hinder digital trade. 
• Addressing these concerns will be crucial for fostering a balanced and mutually beneficial technology trade relationship between India and the U.S.

Nut Graf: During Prime Minister Narendra Modi’s U.S. visit, technology cooperation was emphasized, but U.S. tech firms flagged policy hurdles hindering digital trade and fair competition with India.

C. GS 3 Related

Nothing here for today!!!

F. Prelims Facts

1. Aadhaar Authentication for Registration of Births and Deaths in India

Syllabus: GS-2; Government policies and intervention

Prelims: About Aadhar authentication

Context: 

The Centre has granted permission for voluntary Aadhaar authentication during the registration of births and deaths in India, according to a recent Gazette notification by MEiTY.

Details:

• Centre’s Permission for Aadhaar Authentication:
  • The Centre has allowed the Office of the Registrar-General of India (RGI) to perform Aadhaar authentication during the registration of births and deaths in the country.
  • The permission is not mandatory but voluntary.
• Gazette Notification by Ministry of Electronics and Information Technology (MEiTY):
  • A Gazette notification states that MEiTY has permitted the RGI office to utilize the Aadhaar database for authenticating identity details provided during the registration of births and deaths.
  • The Registrar has the authority to perform Yes or No Aadhaar authentication voluntarily to verify the Aadhaar number along with other details provided in the reporting forms.
  • The purpose of authentication is to establish the identity of the child, parent, and informant in the case of births, and the parent, spouse, and informant in the case of deaths during registration.
• Adherence to Guidelines:
  • State governments and Union Territories are required to adhere to the guidelines set by the Ministry regarding the use of Aadhaar authentication.
• Rules Notified in 2020:
  • In 2020, rules were notified stating that the Centre may allow Aadhaar authentication by requesting entities in the interest of good governance, prevention of leakage of public funds, and promoting ease of living.
  • Ministries or States that wish to utilize Aadhaar authentication must prepare a proposal justifying its necessity and submit it to the Centre.
  • The Centre will then make a reference to the Unique Identification Authority of India (UIDAI) based on the proposal.

G. Tidbits

1. Prime Minister Narendra Modi Flags Off Vande Bharat Express Trains

• Prime Minister Narendra Modi flagged off five additional Vande Bharat Express trains from Bhopal, Madhya Pradesh.
• The total number of Vande Bharat Express trains in operation has now reached 23.
• Though these trains are designed to run at a speed of 110 kmph to 130 kmph, their average running speed ranges between 63 kmph and 96 kmph.
• By increasing the average speed, the trip time could be shortened drastically.
• Passengers prefer an eight-hour journey to be a sleeper one rather than a chair car one.
• Some passengers on social media have expressed their preference for overnight journeys.
• Fastest Vande Bharat Train:
  • Among the 23 Vande Bharat trains, the New Delhi-Varanasi train is the fastest.
  • It runs at an average speed of 96 kmph, with a maximum speed of 130 kmph and covers a distance of 759 km in eight hours.

H. UPSC Prelims Practice Questions

Q1. National Institutional Ranking Framework (NIRF) was established to rank:

1. Higher Education Institutions
2. Primary Educational Institutions
3. Both a and b
4. Neither a nor b

Q2. ‘Equalisation Levy’ often seen in the news is a

1. Indirect Tax
2. Direct Tax
3. Central Tax
4. None of the Above

Q3. Recently ‘Amroha Dholak’, ‘Mainpuri Tarkashi’, and ‘Sambhal Horn Craft’ have been 
given a Geographical Indication (GI) Tag for which of these states?

1. Manipur
2. Madhya Pradesh
3. Uttar Pradesh
4. Bihar

Q4. Consider the following statements with reference to ‘Chinar Corps’:

1. It is a unit of the Indian Army.
2. It guards the Line of Actual Control.
3. It is also known as XV Corps or 15 Corps.

How many of these statements is/are correct?

1. Only one
2. Only two
3. All three
4. None

Q5. India is a signatory to:

1. Nuclear Non-Proliferation (NPT) Treaty
2. Comprehensive Nuclear-Test-Ban Treaty
3. Both a and b
4. Neither a nor b

I. UPSC Mains Practice Questions

1. The India-U.S. relationship has moved from ‘American exceptionalism’ to a more pragmatic era of ‘American exceptionism’ for India. Do you agree? (10 marks, 150 words) [GS-2, IR]
2. Discuss the irritants in the digital trade between India and the U.S. (10 marks, 150 words) [GS-2, IR]

Read the previous CNA here.