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Current Affairs
Jan. 13, 2025

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme
Amid global economic uncertainties, the industry has urged the government to extend key export-boosting scheme Remission of Duties and Taxes on Exported Products (RoDTEP) for export-oriented units (EOUs) and special economic zones (SEZs) till September-end.
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About RoDTEP Scheme:

  • This scheme was introduced through an amendment to the Foreign Trade Policy 2015-20, and it became effective for exports starting January 1, 2021.
  • The primary aim of this scheme is to offset the taxes and duties incurred on exported goods that wouldn't otherwise be credited, reimbursed, or refunded in any way and are integrated into the exported goods.
  • It was enforced to repeal and reduce taxes for exported products, thereby encouraging the conditions of exports and increasing the amount of exports in the country.
  • The scheme is administered by the Department of Revenue, Ministry of Finance.
  • It is a WTO-compliant scheme and follows the global principle that taxes/duties should not be exported.
  • It replaced the Merchandise Export Incentive Schemes (MIES), in response to the US challenging the Indian export subsidies under the MEIS at the WTO. 
  • When the WTO dispute panel ruled against India, RoDTEP was framed to ensure that India remains WTO-compliant, while also supporting low-volume exports of commodities from India.
  • Tax reimbursement under RODTEP:
  • The scheme provides a mechanism for reimbursement of taxes, duties, and levies, which are currently not being refunded under any other mechanismat the central, state, and local levels but which are incurred by the export entities in the process of manufacture and distribution of exported products.
  • This does not only include the direct cost incurred by the exporter but also the prior stage cumulative indirect taxes on goods.
  • Eligibility:
  • It is applicable to all the sectors involved in the export of goods irrespective of their turnover, provided the country of manufacturing of the exported goods should be in India.
  • Such an exporter may either be the merchant or manufacturer However, such goods should have been directly exported by such a person.
  • Labor-intensive sectors that enjoy benefits under the MEIS Scheme will be given a priority.
  • Special Economic Zone Units and Export-Oriented Units are also eligible to claim the benefits under this scheme.
  • Goods exported through e-commerce platforms are also eligible under this scheme.
  • Re-exported products are not eligible under this scheme.
  • Process of Refund:
  • Rebate under the scheme is provided to eligible exporters as a percentage of the freight on board (FOB) value of exports.
  • Remission is issued in the form of transferrable e-scrips(a type of certificate with some monetary value) maintained in an electronic credit ledger by the CBIC (Central Board of Indirect Taxes and Customs).
  • e-scrips can be used for paying basic customs duty on the import of goods or may be transferred electronically to another party.
Economy

Article
13 Jan 2025

India’s Data Protection Rules Need Some Fine-Tuning

Context

  • On January 3, 2025, India reached a significant milestone in its data protection journey with the Ministry of Electronics and Information Technology (MeitY) releasing the Draft Digital Personal Data Protection (DPDP) Rules.
  • This development follows the passage of the DPDP Act, 2023, marking a crucial step towards operationalising a robust framework for safeguarding personal data.
  • The draft rules symbolise a pragmatic departure from India’s earlier, more rigid data protection efforts, emphasising a balanced approach that avoids overreach while promoting flexibility.

India’s Journey Toward the DPDP Rules

  • The Fall of the Personal Data Protection Bill (PDPB)
    • The PDPB's downfall can be traced to its failure to balance privacy with economic and operational feasibility.
    • It sought to impose rigorous obligations on businesses, mirroring the European Union’s General Data Protection Regulation (GDPR) approach.
    • Although the GDPR was widely regarded as a benchmark for privacy laws, its rigid rules inadvertently created barriers to innovation and imposed significant compliance costs, particularly on small and medium enterprises (SMEs).
    • India's PDPB similarly drew concerns for being too interventionist and industry-hostile.
    • It mandated exhaustive consent requirements and strict data localisation, creating fears that the compliance burdens would deter foreign investment, stifle startups, and limit technological innovation.
  • The Shift to a Principles-Based Framework
    • The shift from the PDPB to the DPDP Act and its draft rules represents a fundamental change in philosophy.
    • Learning from the challenges of the PDPB and the limitations of global models like the GDPR, India adopted a less prescriptive, more principles-driven framework.
    • The DPDP rules focus on empowering users without micromanaging businesses, emphasising simplicity, flexibility, and proportionality.
    • This pragmatic approach reflects an understanding of India’s unique socio-economic and technological landscape.
    • Unlike the EU, where a mature digital economy can absorb the costs of stringent regulations, India’s ecosystem is characterised by diverse entities, ranging from multinational corporations to fledgling startups.
  • Avoiding the Brussels Effect
    • India’s decision to move away from the Brussels Effect, a global trend of replicating the EU’s interventionist regulatory ethos, is a notable aspect of this journey.
    • The EU’s GDPR, once hailed as a gold standard, has faced growing criticism for its unintended consequences.
    • These include favouring well-resourced corporations capable of absorbing high compliance costs, marginalizing SMEs, and failing to significantly enhance public trust in digital platforms.
    • India has instead chosen a path that prioritises outcomes over processes.
    • By focusing on what needs to be achieved rather than dictating how to achieve it, the DPDP rules aim to minimise unnecessary complexity and compliance fatigue.

Challenges and Ambiguities

  • The Complexity of Cross-Border Data Flows
    • One of the most contentious provisions in the draft rules is the restriction on cross-border data flows, particularly the mandate for Significant Data Fiduciaries (SDFs) to localise certain data within India.
    • The DPDP Act allows the government to notify specific countries where personal data can be transferred, but the rules extend beyond this provision, introducing added complexities for SDFs.
    • Such localisation mandates can have far-reaching implications. For global businesses operating in India, maintaining separate infrastructure for data storage can significantly increase operational costs.
  • Gaps in Safeguards Against Misuse
    • The draft rules lack clarity on mechanisms to verify the legitimacy of user requests for information on data processing activities.
    • Without adequate safeguards, businesses may face a barrage of excessive or frivolous requests, diverting resources away from their core operations.
    • For example, malicious actors could exploit the lack of verification processes to overwhelm a company’s compliance infrastructure or gain access to sensitive information.
    • Furthermore, the rules do not specify whether businesses can charge a reasonable fee for processing such requests, especially if they are excessive or unfounded.
  • Ambiguity Around Government Access to Data
    • A particularly concerning gap in the draft rules pertains to the government’s potential access to sensitive business data.
    • While the rules grant the government the authority to demand information, they do not provide clear safeguards to protect this data from misuse or exposure.
    • For instance, businesses may have to share proprietary information, trade secrets, or confidential data with the government, raising questions about how this information will be protected from competitors or malicious actors.
    • The absence of specific provisions addressing these scenarios creates uncertainty and creates apprehension among businesses, particularly those operating in industries where intellectual property and trade secrets are critical assets.

Necessary Measures to Address these Challenges

  • Strengthening Procedural Clarity
    • A critical aspect of the way forward is to address the procedural gaps in the current draft rules.
    • Clear guidelines must be established to manage potential conflicts between user rights and business operations.
    • For instance, in scenarios where users request data correction or erasure, businesses need clarity on the extent of their obligations, especially if such requests conflict with operational or legal requirements.
  • Addressing Cross-Border Data Flow Concerns
    • The draft rules' provisions for restricting cross-border data flows require careful reconsideration.
    • While data localisation can address legitimate concerns around law enforcement access, it risks deterring foreign investment and stifling innovation if applied indiscriminately.
    • A more nuanced, sector-specific approach could provide a solution.
    • For example, the Reserve Bank of India’s 2018 mandate for payment data localisation struck a balance between regulatory oversight and business needs.
    • A similar strategy tailored to industries handling sensitive data, such as finance, healthcare, and national security, could address law enforcement concerns without burdening all businesses equally.
  • Rethinking the Consent Model
    • The reliance on the notice-and-consent model, while traditional, is increasingly inadequate in the face of modern technologies like IoT, AI, and 5G.
    • These advancements enable vast, often invisible data collection in public and digital spaces where obtaining informed consent is impractical.
    • To address this, India must explore alternative mechanisms that go beyond consent-based frameworks.
  • Anticipating Emerging Technologies
    • India’s data protection framework must also account for the rapid evolution of technology.
    • Innovations such as generative AI, augmented reality, and autonomous systems are redefining how data is collected, processed, and used.
    • The convergence of these technologies with 5G and IoT is creating a hyper-connected environment, increasing the complexity of privacy challenges.
    • Future-proofing the DPDP rules will require integrating flexible, principles-based approaches that can adapt to technological changes.

Conclusion

  • The Draft DPDP Rules mark a pivotal moment in India’s journey toward a modern data protection
  • However, their potential will only be realised if the government addresses the challenges, clarifies ambiguities, and prepares for the complexities of the digital future.
  • By focusing on innovation, ensuring procedural integrity, and building public trust, India can establish a framework that protects privacy while enabling economic growth and technological leadership.

 

Editorial Analysis

Current Affairs
Jan. 13, 2025

Indravati National Park
Five Maoists, including two women, were killed in an encounter with security forces inside Indravati National Park in Chhattisgarh’s Bijapur district recently.
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About Indravati National Park:

  • It is located in the Bijapur district of Chhattisgarh.
  • It was established in 1981 and declared as a tiger reserve in 1983 under the Project Tiger of India.
  • The park derives its name from the Indravati River, which flows from east to west and forms the northern boundary of the reserve with Maharashtra.
  • It mainly comprises undulating hilly terrain with altitudes ranging between 177 to 599 m above sea level.
  • Three major forest types are recognized in Indravati are Moist Mixed Deciduous Forest with TeakMoist Mixed Deciduous Forest without Teak, and Southern Dry Mixed Deciduous Forest.
  • Some common species include teak, achar, karra, kullu, shisham, semal, haldu, arjun, bel, and Jamun.
  • Fauna:
  • It is home to one of the last populations of rare wild buffalo.
  • Other animals include Nilgai, Black Buck, Sambar, Gaur, Tiger, Leopard, Chital, Sloth bears, etc.
Environment

Current Affairs
Jan. 13, 2025

What is Neptune Missile?
During a joint operation of the Security Service of Ukraine (SBU) and the Ukrainian Navy, an ammunition storage depot in the Rostov region, Russia, was hit using the Neptune missile recently.
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About Neptune Missile:

  • An R-360 Neptune is a Ukrainian-developed subsonic cruise missile initially designed as an anti-ship missile and later modified for land attacks.
  • The design of this missile is based on a Russian Kh-35 cruise missile which goes by the North Atlantic Treaty Organization (NATO) name of AS-20 Kayak.
  • The system entered service with the Ukrainian Navy in March 2021.
  • Features:
    • The missile weighs 870 kg and is 5.05 meters long.
    • The missile travels at speeds of up to 900 km/h and can fly at altitudes ranging from 10 to 300 meters, dropping to just three meters during its final approach to avoid enemy air defenses.
    • It has a maximum range of 400 km and a combat weight of 350 kilograms (150 kg in the anti-ship version).
    • A satellite positioning system was installed to guide the missile during the flight’s marching phase.
    • In the final part of the flight, the missile is guided by an infrared homing system. 
Science & Tech

Current Affairs
Jan. 13, 2025

What is Universal Account Number (UAN)?
The Employee Provident Fund Organisation (EPFO) has extended the deadline for activating Universal Account Numbers (UAN) and linking Aadhaar with bank accounts.
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About Universal Account Number (UAN):

  • UAN is a number allotted to all salaried employees, who contribute a part of their income towards the Employee Provident Fund (EPF).
  • It is a 12-digit number that each member of the EPF is allotted against his/her name. 
  • It is generated and allotted by the Employees’ Provident Fund Organisation (EPFO) and authenticated by the Ministry of Labour and Employment, Government of India. 
  • This number is the same throughout an employee’s professional life.
  • When an employee changes his job, his EPF account number and Member Identification Number (Member Id) change, but UAN remains the same.
  • If a member has already been allotted a UAN, then s/he may provide the same to the new establishment/employer, which in turn will mark the new allotted Member Id to the UAN.
  • The UAN will act as an umbrella for the multiple Member Ids allotted to an individual by different establishments.
  • This will help the member to view details of all the Member Ids linked to it.
  • It is useful for EPFO to track multiple job switches of the employee.

About Employee Provident Fund (EPF):

  • EPF is the fund established under theEmployees' Provident Funds and Miscellaneous Act, 1952.
  • It is administered by the Employees' Provident Fund Organization(EPFO).
  • Every establishment with 20 or more employees is covered, and some organisations that employ fewer than 20 people are also covered, subject to certain constraints and exemptions.
  • The employee and employer each contribute 12% of the employee's basic salary and dearness allowance towards the EPF. 
  • After the employee retires, they receive a lump sum that includes both their own and the employer's contributions, in addition to interest on both.
Polity & Governance

Current Affairs
Jan. 13, 2025

Neduntheevu Island
As many as 17 Indian fishermen were arrested by the Sri Lankan Navy while fishing near the Neduntheevu island recently.
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About Neduntheevu Island:

  • The Neduntheevu, sometimes known as Neduntivu, is the largest island falling in the Palk Strait in the northern parts of Sri Lanka.
  • This is known as Delft Island also, as it was so called by the Dutch colonials.
  • The island's area is 50 sq.km. Its length is 8 km, and its maximum width is about 6 km.
  • It happens to be the biggest of the seven inhabitable islands in the region.
  • A unique feature of this island is that it is flat and oval-shaped, which is wind-swept at almost all times, which makes the place very soothing.
  • There are no streams on the island. The major source of freshwater is surface water, which is collected in natural depressions and artificial ponds.
  • On the island there are varied kinds of dry shrubs and semi-arid tropical plants. This island also has tall palm trees, which add to the overall beachy feel of the island. 
  • A Dutch fort made of dead coral chunks is also located on this island.
  • It is home to a population of 4,800 Tamil people, living in compounds only in the northern half of the island. 
Geography

Current Affairs
Jan. 13, 2025

Hollongapar Gibbon Wildlife Sanctuary
The Standing Committee of the National Board for Wildlife (NBWL), chaired by Union Environment Minister has approved a proposal to carry out oil and gas exploration in the eco-sensitive zone of the Hollongapar Gibbon Wildlife Sanctuary in Assam's Jorhat district.
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About Hollongapar Gibbon Wildlife Sanctuary:

  • It is located in the Jorhat district of Assam, India.
  • It is the only sanctuary in India named after a gibbon due to its distinction for containing the densest gibbon populations in Assam.
  • It is situated at an altitude between 100 and 120 m (330 and 390 ft), the topography gently slopes downward from southeast to northwest.
  • The Bhogdoi River creates a waterlogged region dominated by semi-hydrophytic plants along the border of the sanctuary.
  • Flora:
  • The upper canopy of the forest is dominated by the Hollong tree, while the Nahar dominates the middle canopy.
  • The lower canopy consists of evergreen shrubs and herbs.
  • Fauna:
  • It contains India’s only gibbons–the hoolock gibbons, and Northeastern India’s only nocturnal primate–the Bengal slow loris.
  • Also found at the sanctuary are Indian elephants, tigers, leopards, jungle cats, wild boar, three types of civet, four types of squirrels, stump-tailed macaque, northern pig-tailed macaque, etc. 

National Board for Wildlife:

  • It was constituted by the Central Government under Section 5 A of the Wildlife (Protection) Act, 1972 (WLPA). 
  • The WLPA mandates that without the approval/recommendation of the NBWL, construction of tourist lodges, alteration of the boundaries of PAs, destruction or diversion of wildlife habitat and de-notification of Tiger Reserves, cannot be done.
  • It is a 47-member committee, headed by the Prime Minister and the Minister of Environment, Forest, and Climate Change (environment minister) as vice chairperson.
Environment

Current Affairs
Jan. 13, 2025

Surface-Enhanced Raman Spectroscopy
Recently, researchers have developed an efficient nano catalyst which can be used in in environmental remediation, nanoscale electronics, and surface-enhanced Raman spectroscopy (SERS).
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About Surface-Enhanced Raman Spectroscopy:

  • Surface-enhanced Raman spectroscopy or surface-enhanced Raman scattering (SERS) is a surface-sensitive technique that enhances Raman scattering by molecules adsorbed on rough metal surfaces.
  • It enhances the Raman scattering signals of molecules close to nanostructured metallic surfaces, typically gold or silver. 
  • It provides the same information that normal Raman spectroscopy does, but with a greatly enhanced signal.
  • Applications: It has become a powerful tool in chemical, material and life sciences, owing to its intrinsic features.

What is Raman spectroscopy?

  • It is a spectroscopic technique used in condensed matter physics and chemistry to study vibrational, rotational, and other low-frequency modes in a system.
  • It depends on the inelastic scattering, or Raman scattering of monochromatic light, usually from a laser in the visible, near-infrared or near-ultraviolet range of electromagnetic spectra.
  • It was discovered by the famous Indian physicist C V Raman in the year 1928.
Science & Tech

Current Affairs
Jan. 13, 2025

United Nations World Economic Situation and Prospects 2025
According to the United Nations (UN) flagship report, World Economic Situation and Prospects 2025 Indian economy is expected to grow by 6.6 per cent in 2025 and 6.7 per cent in 2026.
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About United Nations World Economic Situation and Prospects 2025:

  • It was produced by the United Nations Department of Economic and Social Affairs (UN DESA), in partnership with UN Trade and Development (UNCTAD) and the five UN regional commissions.

Key points about the report:

  • It projects that global growth will remain at 2.8 per cent in 2025, unchanged from 2024.
  • The report highlighted that capital expenditure on infrastructure development is expected to have strong multiplier effects on growth in the coming years.
  • Expansion in the manufacturing and services sectors will continue to drive the economy, while strong export growth in services and certain goods categories, such as pharmaceutical and electronics, will bolster economic activity,
  • It also noted that favourable monsoon rains in 2024 have improved summer-sowing areas for all major crops, boosting agricultural output expectations for 2025.
  • The UN report said that economic growth in South Asia is expected to remain robust in 2025, primarily driven by strong performance in India. The region is projected to grow at 5.7 per cent in 2025 and 6 per cent in 2026.
  • It also highlighted the opportunity for resource-rich developing countries, such as India, to boost growth, create jobs, and increase public revenues for investment through rising demand for critical minerals.
Economy
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