TTBR (Topics To Be Read) 13 January 2024

Today's Topics To Be Read (TTBR)

1
Right-sizing the Army (The Tribune)
2
Inflation: A matter of interest (Indian Express)
3
Cervical cancer vaccine drive: A healthy new year (Indian Express)
4
How will the Telecommunication Act impact competition, tech
neutrality in India? (Indian Express)
5
Robust revenues: On direct tax collection target and fiscal
consolidation (The Hindu)
6
Numbers game: On the Swachh Survekshan awards (The Hindu)
7
A case diary for the Indian police (The Hindu)
8
Lakshadweep needs a supply-side focus (Financial Express)
9
Vying for investments: Investor summits signify competitive
federalism, but the Centre must ensure no state loses out (Financial
Express)
10
GST on health insurance is too high (Business Line)
11
Mental health gains material wealth (Economic Times)
TTBR (Topics To Be Read) 13 January 2024

Right-sizing the Army (The Tribune)

Undertake exercise cautiously, pragmatically

ARMY Chief Gen Manoj Pande has stated that a plan to right-size the Army has been
submitted to the Ministry of Defence (MoD). ‘We have a plan to optimise our strength
by 2027. We will achieve optimisation by 1 lakh troops,’ he said in the run-up to Army
Day, which falls on January 15. The roadmap includes optimising or even phasing out
British-era units that are now considered redundant. General Pande has mentioned,
for instance, the right-sizing of animal transport units, which are being replaced by
drones and all-terrain vehicles. The move is also part of the ongoing efforts to
decolonise the Indian military. In its year-end review (2023), the MoD had said: ‘Given
the global trends and rightsizing initiatives, the Indian Army is attempting to make the
Short Service Commission more attractive.’ It seems that greater emphasis is being
laid on quality than quantity.
Force restructuring, rationalising and reorganising are a must to optimise manpower.
The proposed creation of integrated triservice commands also envisages such
interventions to make the defence forces self-reliant and future-ready. Finding the
right ‘teeth to tail’ ratio is a big challenge, considering the existing heavy deployment
of troops along the Line of Actual Control in eastern Ladakh. Indian soldiers have been
maintaining a ‘very high state’ of operational preparedness along the borders with
China and Pakistan.
The right-sizing exercise has to be undertaken cautiously and pragmatically so that
there is no compromise on national security. A clear distinction has to be made
between what is expendable and what is not. The primary consideration should be to
create a leaner and meaner military which can deal more effectively with the enemy.
Making tweaks mainly for the sake of reducing expenditure is not advisable. The long-
delayed integration of triservices should also be prioritised to make the forces better
prepared for contemporary as well as future warfare.
TTBR (Topics To Be Read) 13 January 2024

Inflation: A matter of interest (Indian Express)

Inflation edges upwards, in line with expectations. RBI must provide

forward guidance on possible trajectory of rates

AAZData released by the National Statistical Office on Friday showed that retail
inflation had edged marginally upwards last month. As measured by the consumer
price index, it rose to 5.69 per cent in December, up from 5.55 per cent in November,
driven largely by higher food inflation. This increase was expected. In his statement on
the last monetary policy committee meeting, RBI Governor Shaktikanta Das had noted
that the “the near-term outlook, however, is masked by risks to food inflation which
might lead to an inflation uptick in November and December.” Das had cautioned that
“this needs to be watched for second round effects, if any.”
The disaggregated data shows that the consumer food price index rose to 9.53 per
cent in December, up from 8.7 per cent in November. Within the food basket, inflation
remains elevated in cereals, vegetables, pulses and products, sugar and spices. As per
analysts, the outlook for some of these items like rice, wheat and pulses remains
uncertain. However, core inflation, which excludes the more volatile components such
as food and fuel, has moderated further. Alongside, data also released by the NSO
showed that the index of industrial production slowed down to just 2.4 per cent in
November, in part, due to the base effect. For the first eight months of the year (April-
November), industrial output is up 6.4 per cent.
In a few weeks from now, Finance Minister Nirmala Sitharaman will present the
interim Union budget. A few days later, the monetary policy committee of the Reserve
Bank of India will meet for the last time this financial year.
In its last meeting, the MPC had voted to maintain the status quo on both rates and
stance, as it decided to remain focused on the “withdrawal of accommodation to
ensure that inflation progressively aligns to the target”.
In his statement Shaktikanta Das had said that “the target of 4 per cent CPI is yet to be
reached and we have to stay the course.” However, in an interview to this paper, MPC
TTBR (Topics To Be Read) 13 January 2024

member Jayant Varma recently said that “we are approaching the point where an
interest rate cut is necessary to prevent an excessive real interest rate.”
Varma argued that monetary policy can be “less restrictive” if there was expectation
of inflation nearing the central bank’s target of 4 per cent. The RBI has projected
inflation to moderate from 5.2 per cent in the first quarter of 2024-25 to 4 per cent in
the second quarter and 4.7 per cent in the third quarter. Considering that the US
Federal Reserve has also hinted at the possibility of rate cuts next year, in its coming
meetings, the MPC should provide some forward guidance on the possible trajectory
of interest rates.

Cervical cancer vaccine drive: A healthy new year

(Indian Express)

Decision to inoculate against cervical cancer is welcome, could help root

out a major disease that afflicts Indian women

The Centre will roll out vaccines for cervical cancer in the second quarter of this year.
The campaign will begin once the government has a stock of 6.5-7 crore doses of the
vaccine needed for the first phase of the inoculation drive. This is a significant and
enormously welcome public health move. India accounts for a fifth of the world’s
cervical vaccine burden. It is the second-most common cancer among Indian women,
after breast cancer.
Cervac, an indigenous vaccine, developed by the Serum Institute of India (SII), has been
in the commercial market for about a year.
The Pune-based company currently has an annual capacity of manufacturing 20-30
lakh doses. However, at Rs 2,000 a shot, the vaccine is expensive for a large section of
the country’s population. Also, the overwhelming lack of awareness about the disease
TTBR (Topics To Be Read) 13 January 2024

means that a mass inoculation drive is imperative to tackle the human papillomavirus
(HPV) that’s responsible for close to 85 per cent of cervical cancer cases. The
vaccination drive that will target girls in the age group of nine to 14 could be a game
changer.
HPV is a common microbe. A combination of vaccination and screening facilities has
stemmed its virulence in most developed countries. The global strategy encourages a
minimum of two screenings of women by the time they are 35 and again by age 45. By
all accounts, that doesn’t happen in India. In 2018, the National Technical Advisory
Group on Immunisation recommended the inclusion of HPV vaccines in the country’s
Universal Immunisation Programme (UIP). But the high costs of vaccines, then
manufactured by the pharma multinationals Merck and Glaxo Smithkline, proved a
deterrent — the regimen costs upwards of Rs 4,000. The UIP — it targets more than
2.5 crore newborns and nearly 3 crore pregnant women every year — has
demonstrated the capacity to surmount difficulties that have kept young women from
accessing the vaccines. It has especially been effective in overcoming the hurdles
posed by the country’s traditional public health care deficiencies. India’s success in
inoculating people against Covid is also well-known. The work during the public health
emergency to bust myths around the shots could especially prove handy for
vaccinators.
Cervac was approved by the Drugs Controller General of India in 2022 on the back of
encouraging results in clinical trials — it generated an antibody response 1,000 times
more than the baseline required against all HPV variants. SII’s admirable track record
during the pandemic is ample proof of its capabilities to upscale production in a crisis.
In the coming months, health authorities and the Pune-based institute will be keenly
watched, with hope.
TTBR (Topics To Be Read) 13 January 2024

How will the Telecommunication Act impact

competition, tech neutrality in India? (Indian
Express)

The sustained growth of India’s telecom industry sits at the centre of

India’s digital revolution. This time it cannot be case of so near, yet so
far

The Telecommunication Act 2023, replaces the hoary Telegraph Act 1885 and the
Wireless Telegraphy Act 1933. Through these years, as technology evolved, service
providers entered and exited, and communications changed from voice to data, the
Telegraph Act stood tall, albeit through a series of amendments and intermittent
policy reforms. The life span of this new Act may not be as long, but it will need to see
through the next few generations of communications technology including a multitude
of innovations spanning human-human (voice calls, messaging, video calls), human-
machine (wearables), and machine-machine (Industry 4.0) communications. The use
of computing and other complementary technologies such as artificial intelligence,
internet of things, and quantum computing, will become inseparable from
communications technology.
The Act has introduced several vital changes, though not without the contested
provisions for safety standards and public emergencies which give the government
unfettered power that can infringe on citizen privacy with little or no accountability
for governing officers. The positive changes — providing flexibility for allocation of
spectrum, mechanisms for improving right of way and building common ducts and
cable corridors, expanding the application of USOF (now Digital Bharat Nidhi) and
improving fund utilisation — are certainly steps in the right direction. In this piece we
focus on two important, and perhaps overlooked objectives: (i) The promotion of
competition and (ii) resource mobilisation for infrastructure upgrade in a debt laden
industry.
TTBR (Topics To Be Read) 13 January 2024

On 5G, India, like most other countries, is stuck in a vicious cycle of unattractive use
cases, poor monetisation and underinvestment in infrastructure. The publicly
committed capex of Rs 42,000 and Rs 33,000 crore for 2023-24 by Reliance Jio and
Bharti Airtel respectively, is driven by their roll out targets, after which both companies
are expected to substantially lower capex, between 30-40 per cent of previous year’s
levels. Investments in 5G start-ups have shrunk from $639 million in 2022 to $134.1
million in 2023. One of the reasons cited by venture capitalists was the limited
availability of 5G connectivity beyond the metros. Opening up the market to new
players and improving competition can attract more investments and consequently
innovation in the industry.
The Act’s section on Powers of Authorisation and Assignment rightly provides for
technology neutrality of spectrum use, but does not reflect the same in the delivery of
communication services. Telecom services are no longer distinguishable by technology
type. A combination of technologies can be used to deliver voice and data services. It
is important that any new player in the services market has non-discriminatory and
non-exclusive access to infrastructure on a commercial basis for it to compete against
integrated entities. In the new Act, the spirit of infrastructure unbundling that is
manifest in the section on right of way for facilities providers needs to find expression
in the section on authorisations. The aim should be to facilitate what is referred to in
the literature as equivalence of inputs (products and processes offered to competitors
at the same terms as to the operator’s own retail arm) and/or equivalence of outputs
(products and services offered by the operator to its own retail business and to other
operators, are functionally comparable). What we are pointing towards is merely the
old idea of functional separation that was first brought up in the Communications
Convergence Bill of 2001.
Functional separation has been used as a regulatory remedy by many countries to
address market concentration. Some common examples include Sweden, UK,
Australia, Ireland and Poland. However, no regulation is without risk. The remedies
when disproportionate can lead to counterproductive outcomes including lower
investments and lower innovation. Voluntary transitions, as implemented by Italy,
always work better for infrastructure industries served by incumbents. When
incentivised through lower taxation or other fiscal benefits, we expect to see the
industry settle into a range of configurations from fully integrated telcos to network
aggregators and pure play service providers.
Further, for India to move to high quality digital applications, it has to lend itself to
multiple technology configurations and transition from wireless to a wireline led
architecture. The emphasis on Right of Way in the provisions of the new Act,
acknowledges this need as well. Besides creating an enabling business environment
that lowers cost for business, investing in fibre infrastructure will require a significant
TTBR (Topics To Be Read) 13 January 2024

amount of resource generation for both urban and rural areas. The government
through the USOF, should also contribute through explicit targets for infrastructure
buildout in rural and non-rural areas, while creating a competitive space for
investments by the private sector.
Finally, just as this Act has integrated two acts whose separation had become
superfluous, the siloed view of telecommunications and internet will soon become
inhibiting. Regulatory convergence is no longer a new idea for digital technologies,
telecommunications and broadcasting. TRAI’s Consultation paper of January 2023,
raised the challenge of fragmented oversight over converged services. It asked
questions on the efficacy of separate licences and distinctive administrative
departments to handle converged services. In a world where the functional distinction
between telcos and over-the-top services is blurring, with the two playing both
complementary and competitive roles with respect to each other, an integrated view
is essential. Adding broadcasting to the mix is also important. A unified vision of the
government of India should bring synergies in licensing, standards, skilling and
governance across different departments.
The sustained growth of India’s telecom industry sits at the centre of India’s digital
revolution. Unleashing competition in services and facilitating the transition to fibre-
based networks, while promoting technology dynamism are lodestars for the new era
ushered in by the Telecommunications Act, 2023. This time it cannot be a case of so
near, yet so far.
Mansi Kedia is Senior Fellow, ICRIER and Rohit Prasad is Professor, MDI Gurgaon.
Views are personal
TTBR (Topics To Be Read) 13 January 2024

Robust revenues: On direct tax collection target

and fiscal consolidation (The Hindu)

Strong direct tax receipts create a fiscal cushion and room for more
reforms

With little under a quarter left in the financial year 2023-24, the government has met
nearly 81% of its direct tax collection target. At ₹14.7 lakh crore, direct tax inflows net
of refunds, as of January 10, were 19.4% higher than a year ago. Economists believe
the exchequer’s net direct tax kitty will end up surpassing the Budget estimate of ₹17.2
lakh crore by about a lakh crore if not more, with the full-year growth settling at
around 18%. With Goods and Services Tax inflows also likely to beat the Budget math
and non-tax revenues bolstered by a generous dividend from the central bank, overall
revenues are likely to go beyond Budget hopes despite a relatively tepid intake from
excise duties. Within direct taxes, corporate taxes have grown 12.4% while personal
income taxes have yielded 27.3% higher revenues and this dichotomy may persist in
coming years with the number of income-tax returns filed this assessment year hitting
record levels (8.2 crore by December 31).
The healthy revenue uptick and appreciable widening of the tax filing base offers some
comfort for the government’s fiscal consolidation hopes going forward, amid
apprehensions that this year’s deficit target of 5.9% of GDP may be missed by a small
margin. It also creates room for the Centre to undertake more reforms in taxation with
a focus on simplifying it further for corporates and individuals. For instance, the
multiple withholding tax rates for firms, that often lead to disputes, can be minimised
to a handful of lower rates, if not one. Tax deduction and collection at source (TDS and
TCS) rates, including the much-debated levy to track overseas spends, may be brought
down a few notches — the taxman can continue to derive intelligence from them,
irrespective of the rates. The new exemption-less personal income tax regime with
lower rates and paperwork is gaining traction. Yet, the government can mull some
mechanisms to nudge people into better life choices aligned with public policy goals
that can also deepen financial markets and strengthen macro-fundamentals —
TTBR (Topics To Be Read) 13 January 2024

encouraging retirement savings and health insurance, for instance. The 18% GST levy
on health insurance must also be reconsidered, even as a broader rationalisation of
GST rates is awaited, as it entails significant costs for lower- and middle-income
households who face a real risk of slipping into poverty in the aftermath of a health-
care crisis for a single member. Finance Minister Nirmala Sitharaman has signalled the
Interim Budget 2024-25 will have no spectacular moves, so a repeat of the 2019 pre-
election exercise that rejigged income-tax slabs may be unlikely. But the revenue
buoyancy must enthuse policymakers to keep more reform options on the table for
the new government to consider.

Numbers game: On the Swachh Survekshan

awards (The Hindu)

Factors that hinder general improvement in sanitation must be

overcome

For the eighth year running, the Centre has announced the Swachh Survekshan
Awards, its annual exercise of awarding cities, towns and States which have performed
impressively on various parameters of public sanitation. In an exercise that has now
become predictable, the city of Indore, in Madhya Pradesh, has been adjudged India’s
cleanest city for the seventh year in a row. The only change is that this year, it has to
share honours with Surat, Gujarat. Last year, Surat came second, which is not
surprising as it usually occupied the higher echelons of the ranking ladder in earlier
editions. Bhopal, Indore, Surat and Visakhapatnam have entrenched themselves over
the years. There is a certain volatility beyond the top 10 — Ahmedabad, Chandigarh
and Gwalior, for instance, are volatile cities — but the top cities are consistent. All of
this is suggestive of a degree of stagnation.
TTBR (Topics To Be Read) 13 January 2024

Another quirk of the survey is that it creates multiple sub-categories, so that many
more cities have a chance at top-scoring in some category or the other. Thus, while it
is meaningful to create sub-categories based on population, some classifications
stretch credulity. Mhow in Madhya Pradesh has been awarded as the cleanest
‘cantonment’ town. Varanasi and Prayagraj are proud winners of the ‘Cleanest Ganga
town’ and Chandigarh is the cleanest ‘Best Safaimitra Surakshit Sheher’ (Cities safest
for sanitation workers). Other than obvious criticisms of parochialism — why for
instance cannot there be the cleanest Cauvery or Narmada town? — it ends up
focusing too much attention on the top. The underlying principle of several ranking
schemes put in place by the Centre is to ‘motivate’ sections — cities, villages, schools
— to pull themselves up on their own mettle. While this works well for sporting
contests, public sanitation is not something that is the result of a town or city actively
choosing to be lazy or industrious in improving themselves. It is heavily influenced by
their history, economic conditions and proximity to power. That a few cities are
perpetually at the top means that there is less attention paid to the factors that hinder
a general improvement in sanitation. One way to make future editions of the survey
work as a useful barometer of progress is to acknowledge that consistent toppers have
already put in place a well-oiled system and having done so, retire them from future
rankings for a few years. This will throw focus and highlight challenges that stymie
other cities. For civic sanitation to remain a sustainable movement, it is high time that
the government intervenes and prevents it from being a numbers game.

A case diary for the Indian police (The Hindu)

The higher ranks in the police force have to be conscious of the many
problems that confront policing

The three-day conference in Jaipur (in the first week of January) of police officers
(Director General of Police level) from across India, was a kind of stocktaking exercise
TTBR (Topics To Be Read) 13 January 2024

as well as learning experience, as many subjects of contemporary relevance in the area

of Information Technology formed the core of the agenda.
The Prime Minister, Narendra Modi, who spoke at the meet, also interacted with most
of the officers individually. The sign is that there is growing importance being attached
to law enforcement in the country and the high stakes that the administration has in
efficient policing.
Public image, federal issues
However, what cannot be swept under the carpet is the undeniable fact that the police
have still to earn the trust and confidence of a majority of the populace. Their image
in the public eye continues to be abysmal and no respectable citizen would ever want
to go into a police station in India to seek help unless he is in extreme distress.
It is unfortunate that even seven decades after India’s Independence, citizens do not
have a guardian organisation that will reach out to the poorest in the community. This
is why despite the honest intentions of the executive, there has been no upgradation
in the reputation of our police forces. No police commission has been able to do much
in this regard except to make a few inane observations.
An added complexity is the growing discord between the Centre and a few Opposition-
led States. The ‘New Delhi-conceived and managed’ Indian Police Service (IPS) is
perceived to be ‘a permanent irritant’ to some States who look upon the IPS as
unreliable intruders over whom they have no control. States would prefer to have their
own recruits vis-à-vis those with divided loyalties. This is likely to exacerbate itself in
the years to come. I wonder whether this delicate subject was discussed at all in Jaipur.
The role of the Enforcement Directorate (ED) and the implications it has for federal
governance will have to be sorted out sooner rather than later. The attacks on ED
officers in a few places in India is unfortunate and poses a danger to relations between
New Delhi and States.
More technology adept
In fairness to the police, however, it must be said that they have become more
technology-savvy. It is possibly because we have more educated policemen in the
lower echelons than before. It is not because Indian youth rate a career in the police
force very high. It is the sheer high rate of unemployment in India that is driving many
to opt for a police job.
This is good so far as it goes. The question is whether the young men and women who
become constables or sub-inspectors — the two ranks to which there is direct entry
— will get an opportunity to display their talent.
TTBR (Topics To Be Read) 13 January 2024

This is because officers of the IPS alone hog all attention and the glory, depriving the
lower ranks of any chance to prove themselves. The situation in most of the world is
different. Every recruit, barring a few highly qualified candidates needed for their
knowledge of science and technology, starts at the lowest rung of the ladder and rises
up the ranks.
This is the argument against the IPS, notwithstanding the fact the IPS officer is rated
highly for his or her sharp mind and zeal. A major restructuring that narrows the gap
between the higher ranks and the lower ranks could help in any exercise to drastically
improve the quality of policing. Knowledge and integrity will have to go together
alongside genuine empathy for the common man if the image of India’s police force
has to improve.
This is ambitious but the blending can be achieved if senior police officers make an
earnest attempt to change things. An anxiety to educate those at the lowest level in
the forces is, unfortunately, not evident among IPS officers. It is unfortunate that the
structure of the hierarchy works against spending quality time with the constabulary.
Why cannot DGPs and their immediate subordinates spend an hour a day to teaching
their ranks how to expand their frontiers of knowledge and in turn, how to use it for
the benefit of the common man?
The shadow of politics
No discussion of policing can be concluded without referring to the eternal complaint
of the politicisation of the police force. The nagging question of how to insulate our
policemen from political caprice dominates all debates on the police. This knotty
problem is intertwined with the democratic system of government. It is an art to
politely say ‘no’ to a downright illegal demand made by grassroots politicians. Not
many can do it with tact. This is an aspect of policing that will continue for decades to
come. Ensuring the independence and the autonomy of operation for the police force
is a pipe dream until the whole polity changes. To chastise the police alone as being a
slave to political directives is dishonesty to the core.
R.K. Raghavan is a former Central Bureau of Investigation Director. The views
expressed are personal
TTBR (Topics To Be Read) 13 January 2024

Lakshadweep needs a supply-side focus

(Financial Express)

The attention the archipelago is receiving must be leveraged through

strategic marketing campaigns, both by government and private
stakeholders

Lakshadweep, a uni-district and the smallest Union Territory of India, is getting

attention like never before after Prime Minister Narendra Modi posted pictures of his
“exhilarating experience” during his visit to the UT, early this month. In a matter of
four days, there has been a jaw-dropping rise of 3400% in Lakshadweep searches on
travel sites; “Lakshadweep” became the 10th most searched word on Google in India;
and the worldwide search for Lakshadweep was the highest in the last 20 years.
What else do we know about Lakshadweep? Formed in 1956, Lakshadweep, meaning
a hundred thousand islands, is an archipelago of 36 islands, of which only 10 are
inhabited with a population of about 64,473 as per the 2011 census. Despite a very
small population, the region showcases a harmonious coexistence of diverse customs
and practices. Malayali Muslims form the majority, contributing to the cultural mosaic
with their language, cuisine, and religious traditions.
Little can be stated about its economy. No official Gross State Domestic Product
(GSDP) statements are available for the island. It might be contributing a small fraction
to the country’s GDP. But what is known is that its economy revolves around fisheries,
coconut cultivation, and tourism, thanks to the archipelago’s pristine coral reefs, clear
blue waters, and tranquil landscapes. The local administration has been making efforts
to promote sustainable tourism, striking a balance between economic development
and environmental conservation.
So far, both domestic and international tourist arrivals to Lakshadweep, as per the
ministry of tourism’s India Tourism Statistics, have been extremely meagre. The UT
hosts just about 10,000 domestic and less than a thousand international tourists each
year. Despite this, tourism is a significant contributor to the UT’s economy. According
TTBR (Topics To Be Read) 13 January 2024

to a report by the National Council of Applied Economic Research (NCAER) on

Lakshadweep’s Tourism Satellite Account, which estimated tourism economy in terms
of both GDP and employment, tourism contributed 4.3% to the UT’s GDP and a
sizeable 22% to its employment in 2015-16. This is much above the national average
of 2.8% and 5.4% , respectively for the same year. Any escalation in the number of
tourists to the UT can give a significant boost to not just its tourism economy but also
to its overall economy, not to mention the strong multiplier effect of tourism.
The recent spat with Maldives has already served as a catalyst to increasing its visibility
and promoting it as a sought-after tourist destination. The media coverage and
publicity surrounding the PM’s trip would naturally generate widespread interest and
curiosity among the general public. This heightened attention should be leveraged
through strategic marketing campaigns, both by the government and private tourism
stakeholders.
The need of the hour is to focus on the supply side of tourism in order to meet the
growing tourism demand. The supply side refers to the tourism-supplying industries
like accommodation, transportation, restaurants, recreation, culture, and more.
Lakshadweep needs to be developed as a tourist destination. This very much falls in
line with the government’s agenda to develop 50 new tourism destinations across the
country, with a focus on green tourism.
Destination development with strategic planning must be the focus to improve or
augment the supply -side of tourism when the demand side is expected to flourish.
Such planning is expected to provide compelling experiences, quality infrastructure,
and remarkable services to entice repeat visitation by the tourists.
Beyond the current lodging and hotel options, the Tata Group has recently declared
its intention to establish two luxurious resorts by 2026 on the islands of Suheli and
Kadmat in Lakshadweep. These forthcoming Taj resorts are poised to become world-
class destinations, catering to both international and national tourists.
Regarding its comparison with Maldives, Lakshadweep may turn out to be a preferred
destination for more reasons than have been highlighted in social media. Its
geographical proximity to the Indian subcontinent, merely 500 km away from the
southwestern coast, makes it easily accessible and potentially cost-effective
destination. It offers a unique, less explored, and offbeat experience. With thoughtful
planning, sustainable practices, and the allure of untouched beauty, Lakshadweep has
the potential to emerge not only as a sought-after tourist destination but also as a
beacon of responsible tourism, balancing growth with environmental conservation.
Poonam Munjal & Palash Baruah, respectively, professor and associate fellow,
National Council of Applied Economic Research (NCAER)
TTBR (Topics To Be Read) 13 January 2024

Views are personal

Vying for investments: Investor summits signify

competitive federalism, but the Centre must
ensure no state loses out (Financial Express)

As centralised planning is replaced by a largely market-driven

development model, states and city governments have to compete to
spur economic growth and development.

The 10th Vibrant Gujarat Summit concluded on Friday with investment pledges of Rs
26.3 trillion, a little more than the gross domestic product (GDP) of the coastal state.
Earlier in the month, Tamil Nadu’s Global Investor Meet (GIM) yielded commitments
of Rs 6.6 trillion. Last February, Uttar Pradesh flaunted investment promises to the
tune of Rs 33.5 trillion, or 1.6 times the size of its economy, after a similar meet. States
organising such summits to lure domestic and foreign investors has been the norm for
the last two decades, though the origin of these now-regular events is traceable to the
economic liberalisation of the 1990s. These summits are exemplars of competitive
federalism in a diverse country. Though only a fraction of the promised investments
eventually materialise, beckoning investors in this manner has acknowledged utility in
a world where supply chains are being overhauled. Moreover, the recent summits are
marked for investments in frontier areas—solar modules, wind turbines, hydrogen
electrolysers, lithium ion storage, semiconductor wafers, etc. This is unlike the past,
when assimilation of new technologies in the country was inordinately delayed.
As centralised planning is replaced by a largely market-driven development model,
states and city governments have to compete to spur economic growth and
development. States like Maharashtra, Karnataka and Gujarat lead in investments, but
TTBR (Topics To Be Read) 13 January 2024

Telangana and tiny Chandigarh too punch above their weight, while more populated
ones like Bihar lag. In these times, therefore, states have a compelling reason to guard
against scarce allocation of (national) resources, given that non-government actors
have a rapidly increasing role not only in the markets of manufactured products and
services, but also in the deployment of finance capital, creation of fixed assets, and
even in appropriation and utilisation of natural resources.
This inevitably means each state or urban body is free to offer fiscal and other
incentives to attract investors, including easier approvals and a cordial front-line
bureaucracy. However, the spirit of competitive federalism would have the desired
wholesome outcome only if the state governments are duly empowered. Regional
disparities cannot be addressed without the Centre being a neutral arbiter. To be sure,
the Narendra Modi government has created a comprehensive template for gauging
the states, on various parameters. But the development polices and resource
allocations are yet to be fully in consonance with what these objective assessments
bring to the fore. Policies and programmes must be tailored to address regional
deprivations, while retaining incentives for performance, and being mindful of the
differences in needs.
The scope of private investors bridging the country’s infrastructure deficit is limited.
While the `111 trillion National Infra Pipeline (FY20-FY25) was envisaged with a 6:4
investment ratio between the government and the private sector, it is now clear that
the target would be missed by a wide margin, mainly because private investors looked
the other way. The Goods and Services Tax has created a pan-India market, and
reduced the scope for tax arbitrage as a tool to promote regional investments. Natural
resources—the sun, land, water, wind, coastline, soil fertility, minerals—vary across
states, and so does labour productivity. So, to provide a level playing field to states for
industrial investments, public funds need to be more judiciously invested to build
physical infrastructure, and ensure harmonious social development.
TTBR (Topics To Be Read) 13 January 2024

GST on health insurance is too high (Business

Line)

Given the rising private healthcare costs, a cut in GST will encourage
more people to opt for health insurance

A growing economy like India needs to ensure that its citizens are healthy. It is often
stated that a healthy individual can contribute positively to the GDP of a country and
therein lies the importance of a robust health insurance system.
Health insurance can play a key role in ensuring that Indian citizens do not suffer a
setback due to the affordability aspect of quality healthcare.
However, as per estimates, health insurance penetration in India is at just 0.4 per cent
as compared to 4.1 per cent in the US, indicating both the future potential as well the
risks of a large segment of the population not being covered.
One segment of the population for healthcare is covered through the network of
government hospitals as well as through government sponsored health insurance
scheme at private hospitals. The second segment is covered by the group health
insurance schemes covering the employee only or in other cases their families through
the organisation.
The third segment of the population goes for health insurance voluntarily by paying
an annual premium and getting covered under networked hospitals. This article
focuses on this segment. A recent report states that growth in the coverage of
individual lives under health insurance in FY23 has been slow at just 2.5 per cent due
to relatively higher premium amounts and the higher level of GST on health insurance
has also acted as a deterrent.
Covid impact
TTBR (Topics To Be Read) 13 January 2024

During and Post Covid, insurance companies had to settle huge claims directly
impacting their bottom-line. As a consequence, they had to revise their premiums
upward to protect their margins. This in turn affected the business growth of insurance
companies.
The rising cost of private healthcare has also forced people to opt for health insurance.
The government charges GST on different goods and services as per a range that exists
from no tax to 5 per cent, 12 per cent, 18 per cent and 28 per cent based on the
recommendation of the GST Council.
The GST on health insurance is charged at 18 per cent of the premium amount thereby
constituting nearly one-fifth of the premium and falling in the slab which is considered
as penultimate to luxury. When we state that health insurance is a priority for the
citizens of India, 18 per cent GST on the premium is a dampener.
To many customers of health insurance 18 per cent seems high in absolute terms for
example if premium is ₹25,000 then GST @18 per cent comes out to ₹4,500 and total
amount payable becomes ₹29,500 which is perceived to be high. Due to this reason,
some customers, if they feel they are healthy will simply opt out of health insurance.
There were indications previously that the GST Council would take up this matter but
so far GST on health still remains at a high 18 per cent. To promote health insurance,
it is therefore suggested to the GST Council that a concessional GST of 5 per cent or no
GST may be levied on health insurance treating it on par with Jan Dhan Yojana or Bank
accounts.
This may go some distance in improving the penetration levels of the health insurance
market in India.
The writer VV RAVI KUMAR is Deputy Director, Symbiosis Institute of Business
Management, Views expressed are personal
TTBR (Topics To Be Read) 13 January 2024

Mental health gains material wealth (Economic

Times)

Earlier this week, Amaha, a mental health startup, announced that it has secured ₹50
crore in an extended Series A funding round led by Fireside Ventures, with other angel
investors contributing ₹15.6 crore. The Mumbai-based company plans to use this
funding to expand its treatment and care plans for anxiety, depression, bipolar
disorder, ADHD, OCD, schizophrenia and addictions.

India's mental health landscape is worrying. According to WHO, 10.6% of the

population suffers from mental health issues. The prevalence is higher in men than
women, and urban residents are more prone to such ailments than their rural
counterparts. The treatment gap - the difference in the proportion of people who have
a disorder and those individuals who receive care - for mental ailments ranges from
28% to 83%, and a government facility, which is mostly under-equipped, is the
commonest source of care. While the National Mental Health Policy 2014 and the
Mental Healthcare Act 2017 call for universal access to quality services and protection
of the rights of affected people, there is serious shortfall of doctors, counsellors and
facilities. Startups such as Amaha, Wysa, Evolve, Kaha Mind, Manah and Trijog are
trying to fill this gap, and using innovative tech-led solutions.

While social stigma remains a challenge, awareness is rising. People are seeking
professional help. According to the UnivDatos market research report, the Indian
mental health market is expected to grow at a substantial CAGR of 15% between 2022
and 2028. Currently, around 280 mental health startups operate in India. The
emergence of this support framework is a positive development. However, in the
competition to attract subscribers, quality of services should not suffer.