IT Ministry Approves 22 More Firms Under Electronics Component Manufacturing Scheme

What’s the News?

• The Ministry of Electronics and Information Technology (MeitY) approved 22 new projects under the third tranche of the Electronics Component Manufacturing Scheme (ECMS).
• These projects involve a projected investment of ₹41,863 crore and are expected to generate production worth ₹2.58 lakh crore.
• The initiative aims to strengthen domestic supply chains, reduce import dependence, and create approximately 33,791 direct jobs.
• Major companies receiving approval include Tata Electronics, Samsung Display, Foxconn (Yuzhan Technology), Dixon, and Hindalco.

Third Tranche Highlights

• Product Categories: The approvals cover 11 target-segment products across three main categories:
  • Bare Components (5): Printed Circuit Boards (PCBs), Capacitors, Connectors, Enclosures, and Lithium-ion cells.
  • Sub-assemblies (3): Camera Modules, Display Modules, and Optical Transceivers.
  • Supply Chain Items (3): Aluminium Extrusion, Anode Material, and Copper-Clad Laminate.
• Geographic Distribution: The approved units will be set up across eight states: Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh, and Rajasthan.
• Cumulative Progress: Including previous tranches, total approvals have now reached 46 companies with a cumulative investment of ₹54,567 crore.

Electronics Component Manufacturing Scheme (ECMS) Overview

• Outlay & Tenure: The scheme has a total financial outlay of ₹22,919 crore and a tenure of six years.
• Incentive Types:
  • Turnover-linked: Based on incremental sales over a base year (for segments like sub-assemblies and bare components).
  • Capex-linked: Based on eligible capital investment (for supply chain ecosystem and capital equipment).
  • Hybrid: A combination of both for specific industry needs.
• Primary Objective: To develop a robust electronics component ecosystem and integrate Indian companies with Global Value Chains (GVCs).

Additional Info

• Strategic Vision:
  • The government aims to build a $500 billion domestic electronics manufacturing ecosystem by 2030–31.
  • India has already emerged as the world's second-largest mobile phone manufacturer.
• Operational Guidelines:
  • Six Sigma Standards: The IT Ministry has urged manufacturers to adhere to Six Sigma quality standards to ensure global competitiveness.
  • Design Focus: Companies are encouraged to establish in-house design teams to build indigenous intellectual property.
• Related Ecosystems:
  • India Semiconductor Mission (ISM): Complements ECMS by focusing on chip fabrication and assembly.
  • Production-Linked Incentive (PLI): Target large-scale electronics manufacturing (e.g., mobile phones, IT hardware).

Sources

• PIB
• The Hindu

India Jumps to 8th Rank Globally in WHO Pharmacovigilance Contributions

What’s the News?

• India has achieved a significant milestone by rising from 123rd to 8th rank globally in terms of pharmacovigilance contributions to the World Health Organization (WHO).
• Union Health Minister J.P. Nadda announced this achievement, highlighting India's strengthened mechanism for monitoring Adverse Drug Reactions (ADRs).
• This jump reflects a robust increase in reporting drug safety data to the WHO-Uppsala Monitoring Centre (UMC), ensuring safer medicine usage globally.

What is Pharmacovigilance?

• Definition: The science and activities relating to detection, assessment, understanding, and prevention of adverse effects or any other medicine- or vaccine-related problems.
• WHO’s Role: Coordinates global efforts through VigiBase, managed by the Uppsala Monitoring Centre (UMC), Sweden.
• Key Functions:
  • ADR collection & analysis from national centres.
  • Signal detection (early warning of emerging risks).
  • Risk–benefit evaluation for regulatory actions.
  • Capacity-building in low- and middle-income countries.

India's Pharmacovigilance Progress

• Data Contribution: India now contributes approximately 5% of the total global ADR reports sent to the WHO database, VigiBase.
• Reporting Numbers: The number of ADR reports from India increased from a few hundred annually a decade ago to over 1.5 lakh reports in recent years.
• Institutional Growth: The expansion of Adverse Drug Reaction Monitoring Centres (AMCs) across the country, from a handful to over 800, has been a key driver of this progress.
• Digital Integration: Use of the VigiFlow software and the PvPI (Pharmacovigilance Programme of India) mobile app has streamlined the reporting process for healthcare professionals and consumers.

Pharmacovigilance Programme of India (PvPI)

• Launch & Management: Launched in 2010, PvPI is coordinated by the Indian Pharmacopoeia Commission (IPC), Ghaziabad, which acts as the National Coordination Centre (NCC).
• Objective: To monitor the safety of medicines, vaccines, and medical devices to reduce the risks associated with their use.
• Regulatory Link: Data generated by PvPI assists the Central Drugs Standard Control Organization (CDSCO) in making informed regulatory decisions, such as changing drug labels or banning unsafe medicines.

Sources

• NDTV
• Edex Live

Know Your Survey: A User Guide to ASUSE

What’s the News?

• The Ministry of Statistics and Programme Implementation (MoSPI) has released a comprehensive user guide for the Annual Survey of Unincorporated Sector Enterprises (ASUSE).
• This guide aims to help researchers, policymakers, and the general public navigate the complex data collected regarding India's vast informal or unincorporated sector.
• ASUSE replaces previous periodic surveys to provide an annual and more frequent data series, filling a critical gap in understanding the economic contribution of non-agricultural informal enterprises.

Key Features of ASUSE

• Scope: Covers unincorporated non-agricultural enterprises in manufacturing, trade, and other services sectors.
• Exclusions: It excludes enterprises involved in agriculture (though some post-harvest activities may be included), government/public sector units, and cooperatives.
• Data Points: Collects detailed information on:
  • Operational Characteristics: Nature of activity, location, and type of ownership.
  • Employment: Number of workers (including family members), emoluments, and gender breakdown.
  • Economic Metrics: Gross Value Added (GVA), output, intermediate consumption, and fixed assets.
• Frequency: Unlike the quinquennial (five-yearly) surveys of the past, ASUSE is conducted annually to track high-frequency economic shifts.

Significance of the Survey

• Economic Contribution: The unincorporated sector accounts for a massive portion of India's GDP and employment, yet it remains largely "invisible" in formal data.
• Policy Formulation: Provides the necessary data for the National Accounts Statistics (NAS) to estimate the contribution of the informal sector to the national income.
• MSME Tracking: Helps in monitoring the health of Micro, Small, and Medium Enterprises (MSMEs) that do not fall under the Factories Act.

Additional Info

• Institutional Framework:
  • Conducted by the National Sample Survey Office (NSSO) under MoSPI.
• Key Concepts:
  • Unincorporated Sector: Refers to enterprises that are not "incorporated" as separate legal entities, often including sole proprietorships and partnerships.
  • Gross Value Added (GVA): Calculated as the value of output minus the value of intermediate consumption; it reflects the actual contribution of an enterprise to the economy.
• Evolution:
  • Previously, this data was captured through the NSS 73rd Round (2015-16) and similar periodic rounds.
  • The shift to ASUSE represents a modernization of India's statistical system to provide real-time insights for evidence-based governance.

Centre Launches Digital e-Bill System for ₹2 Lakh Crore Fertilizer Subsidy

What’s the News?

• Union Minister for Chemicals and Fertilizers Jagat Prakash Nadda launched an integrated e-Bill System to digitally process fertilizer subsidies worth approximately ₹2 lakh crore.
• The system marks a complete transition from manual, paper-based workflows to a fully digital, system-to-system workflow, eliminating the physical movement of bills.
• Launched at Kartavya Bhawan, New Delhi, this reform is a collaborative technological effort between the Integrated Fertilizer Management System (iFMS) of the Department of Fertilizers and the Public Financial Management System (PFMS) of the Ministry of Finance.

Integrated e-Bill System: Key Features

• Technology Integration:
  • Built on convergence of Integrated Financial Management System (IFMS) (Dept. of Fertilizers) and Public Financial Management System (PFMS) (Ministry of Finance).
• End-to-End Workflow Automation:
  • Online submission of subsidy claims by fertilizer companies.
  • Real-time tracking of payment status and processing stage.
  • First-In-First-Out (FIFO) processing to ensure fairness and timeliness.
• Enhanced Controls & Auditability:
  • Every transaction logged with tamper-proof digital audit trail.
  • Pre-validation checks against eligibility criteria (e.g., verified sales data, DBT linkage).
  • Fraud mitigation through multi-layered authorization and anomaly detection.
• Operational Gains:
  • Weekly subsidy disbursements accelerated; eliminates physical bill movement and manual follow-ups.
  • Reduces processing time by ~60% (per pilot data from 10 companies).

Additional Info

• Fertilizer Subsidy Overview:
  • India is the world's second-largest user and third-largest producer of fertilizers.
  • Urea Subsidy: Farmers purchase urea at a fixed MRP (₹242 per 45kg bag); the government pays the difference to manufacturers.
  • Nutrient Based Subsidy (NBS): Fixed subsidy rates for Phosphatic and Potassic (P&K) fertilizers based on their nutrient content.
• Budgetary Context:
  • The budget for 2025–26 allocated approximately ₹1.67 lakh crore for fertilizer subsidies.
  • This digital reform aligns with the Digital India vision and the goal of Viksit Bharat @ 2047.

Sources

• pib
• cnbctv18

Surat Set to Become India’s First Slum-Free City

What’s the News?

• Surat, widely known as India's "Diamond City," is on track to become the first city in the country with a population of over 70 lakh to be officially declared slum-free.
• The Gujarat State Government announced that the city has successfully rehabilitated thousands of slum dwellers into formal housing, transforming the urban landscape.

Slum-Free Urban Strategy

• In-Situ Redevelopment Model:
  • Slum clusters replaced with multi-storey apartment complexes on the same land, minimizing displacement and preserving livelihood linkages.
  • Over 4.5 lakh households rehabilitated since 2015 (as per SMC data).
• Scheme Convergence:
  • Pradhan Mantri Awas Yojana (Urban) provides central assistance (up to ₹1.5 lakh per EWS house).
  • Gujarat Affordable Housing Policy offers additional state subsidies and fast-tracked approvals.
• Civic Infrastructure Integration:
  • All new housing colonies equipped with:
    • Piped water supply & individual metering
    • Underground drainage & sewage connectivity
    • Paved internal roads, street lighting, and open spaces
    • Community facilities (anganwadis, health sub-centres, skill centres)

Challenges & Governance Innovations

• Migrant Workforce Management:
  • Surat attracts ~3 lakh seasonal migrants annually for diamond/textile work; SMC introduced rental housing modules and transit shelters for short-term workers.
• Land Titling & Participation:
  • Slum enumeration drives with biometric verification ensured inclusive beneficiary lists.
  • 70:30 cost-sharing model: 70% by govt (central + state), 30% by beneficiaries (waived for poorest).
• Technology Use:
  • GIS mapping of all slum pockets (2018 baseline) → real-time progress dashboard for officials and citizens.

Sources

• news18
• gktoday
• timesofindia

New Tax Regime for Tobacco and Pan Masala Effective February 1

What’s the News?

• The Ministry of Finance has notified a major overhaul of the taxation framework for tobacco products and pan masala, set to take effect from February 1, 2026.
• This new regime replaces the existing GST compensation cess with a combination of Additional Excise Duty and a new Health and National Security Cess.
• The move follows parliamentary approval of the Central Excise (Amendment) Act, 2025 and the Health Security and National Security Act, 2025.
• The restructuring aims to curb tax evasion, plug revenue leakages, and maintain high levies on "sin goods" as the compensation cess sunsets.

Revised Tax Structure and Rates

• GST Rate Changes:
  • Pan masala, cigarettes, and most tobacco products will attract a uniform 40% GST.
  • Bidis have been moved to the 18% GST category.
• Cigarette Taxation (per 1,000 sticks): The new excise duty is linked to stick length and filter type:
  • Unfiltered (<65 mm): ₹2,050.
  • Filtered (<65 mm): Approximately ₹2,100.
  • Filtered (70–75 mm): ₹5,400.
  • Premium/Other categories: Up to ₹8,500.
• Smokeless Tobacco and Pan Masala:
  • Pan masala will be subject to a Health and National Security Cess based on production capacity.
  • Gutkha will attract an additional excise duty of 91%.
  • Chewing tobacco and jarda scented tobacco will face an excise duty of 82%.

Additional Info

• GST Compensation Cess History:
  • Originally introduced in 2017 for five years to offset state revenue losses.
  • Extended until March 2026 specifically to repay ₹2.69 lakh crore in loans taken during the pandemic.
  • The new excise/cess regime ensures the tax incidence does not drop sharply once these loans are repaid by January 31, 2026.
• Public Health Context:
  • WHO Benchmark: The World Health Organization recommends a total tax incidence of 75% on tobacco products.
  • Even with these hikes, India’s total tax incidence on cigarettes remains at approximately 53% of the retail price.
• Purpose of the New Cess:
  • Unlike general taxes, the Health and National Security Cess creates a non-lapsable resource stream for dedicated health awareness and security programs.

Sources

• WION
• India Today
• Indian Express

India Records 166 Tiger Deaths in 2025: Highest in Recent Years

What’s the News?

• India recorded the deaths of 166 tigers in 2025, a significant increase from the 126 deaths reported in 2024.
• The data, released by the National Tiger Conservation Authority (NTCA), highlights a growing trend of mortality linked to habitat saturation and territorial conflicts.
• Of the total fatalities, 31 were cubs, and alarmingly, 60% of deaths (approximately 100 tigers) occurred outside protected areas.

State-wise Mortality Patterns

• Madhya Pradesh: For the third consecutive year, the "Tiger State" recorded the highest mortality with 55 deaths.
• Maharashtra: Followed with 38 deaths, including the first fatality of the year reported in the Bramhapuri forest division.
• Other States: Significant numbers were reported from Karnataka (15), Kerala (13), and Assam (12).
• Context of Growth: High mortality in states like Madhya Pradesh is often correlated with their large populations; the state's tiger numbers grew by nearly 60% since 2014, reaching 785 in the 2022 estimation.

Causes of Death and Habitat Challenges

• Territorial Infighting: Approximately 70% of deaths were attributed to natural causes, predominantly fierce battles between tigers over limited territory.
• Habitat Saturation: Experts state that many reserves have reached their carrying capacity, forcing young and dispersing sub-adults to move into human-dominated landscapes.
• Human-Induced Factors:
  • Electrocution: Seven cases nationwide were directly linked to illegal electric fences.
  • Accidents: Road and rail accidents remain a persistent threat to tigers moving through fragmented corridors.
  • Poaching: While the majority of deaths are natural, at least 10 deaths in MP were confirmed as poaching, often involving "non-targeted killings" meant for other wildlife.
• Staffing Shortages: A critical challenge cited is that 1 in 5 staff positions across tiger reserves remain vacant, hindering anti-poaching vigilance and forensic responses.

Additional Info

• National Tiger Conservation Authority (NTCA):
  • A statutory body under the Ministry of Environment, Forest, and Climate Change (MoEFCC).
  • Established in 2006 following an amendment to the Wildlife (Protection) Act, 1972.
  • Mandated to strengthen tiger conservation, approve Tiger Conservation Plans, and set standard operating procedures for mortality investigations.
• Project Tiger:
  • Launched in 1973 as a Centrally Sponsored Scheme to ensure a viable population of Bengal tigers in their natural habitats.
• Constitutional and Legal Context:
  • Article 48A: The State shall endeavor to protect and improve the environment and safeguard the forests and wildlife of the country.
  • Article 51A(g): It is the fundamental duty of every citizen to protect and improve the natural environment including forests, lakes, rivers, and wildlife.
  • Wildlife Protection Act (WPA), 1972: Empowers the government to notify Tiger Reserves and core/critical habitats.
• Global Standing: India hosts nearly 75% of the world's wild tiger population, estimated at 3,682 as of the 2022 census.

Sources

• Economic Times
• Outlook India
• Deccan Herald