The Prayas ePathshala

Exams आसान है !

Q1. What are the issues associated with the pharmaceutical sector of India? Also, discuss some of the government initiatives in this regard.

Paper & Topic: GS II – Government Initiatives

Model Answer:

How large is India’s pharmaceutical industry?

FDI inflows into the pharmaceutical industry alone were $16.2 billion from 2000 to 2019, and it is anticipated that this sum will increase throughout the COVID pandemic.
According to a recent economic evaluation, the pharmaceutical industry is among the top 5 industries that help India reduce its trade imbalance.
India is the source of more than 80% of the anti-retroviral medications used globally.
Prior to the COVID epidemic, India dominated the world vaccine industry and generated more than 50% of all immunizations.
With 62% of total revenues, the largest industry is biopharmaceuticals.
An estimated 20% of generic medications supplied worldwide are owned by India, making medical tourism there a $9 billion sector this year.

How is the pharmaceutical industry in India governed?

The primary piece of legislation governing the importation, manufacture, distribution, and sale of medications and cosmetics in India is the Medications and Cosmetics Act of 1940. (For Source check here).
The Act gives a detailed definition of fake drugs, contaminated drugs, and incorrectly labelled drugs.
The Central Drugs Standard Control Organization was created as a result, among other things (CDSCO).

Challenges in the Pharmaceutical Sector:

Regulator Side:

The examination of the drugs following their sale is comparable to performing a post-mortem.
Poor drug data collection and insufficient drug inspector training contribute to widespread drug dealer fraud.

In terms of marketing:

Patients’ lives are at greater risk as a result of medical representatives’ and medication salespeople’s lack training to meet demand and the predominance of quacks (false doctors).
Pharmaceutical corporations engage in the dubious practise of distributing gifts and freebies to doctors in order to promote their products.
The demand for pharmaceuticals is so great that the quality is being reduced. This is demonstrated by the huge medication recall in India.
Low R&D spending India allocates 0.7% of its GDP to R&D expenses. When compared to the demands of the industry, this is incredibly modest.

Solutions:

putting into practise the Malshekar committee’s proposals for drug regulation.
In order to create a new national framework for drug regulation, support the creation of the National Drug Authority.
State drug enforcement agencies have been told to support them right now.
establishing an electronic database for patients, drug use, and potential risks.
Make it against the rules for pharmaceutical corporations to give away things and give freebies.
It is necessary to raise the bar that the government has set for medical consultants and medication salespeople.

Conclusion:

Despite having a significant capital requirement, the industry has grown to become the world leader in pharmaceutical products. In order to reduce overdependence, better regulatory procedures must now be put in place, and the industry must be pushed to increase API production in India.

Q2. What is a centralized market of electricity? Also, discuss its significance and associated issues.

Paper & Topic: GS II Government Initiatives

Model Answer:

About:

The Union Power Ministry’s proposed Market-based Economic Dispatch (MBED) system calls for centralised dispatching of the 1,400 trillion units of power used annually.
Both intrastate and interstate dispatches must adhere to this schedule.
According to the Constitution, the topic of power is concurrent. State Load Dispatch Centers categorise electrical networks into various control zones in accordance with each state. The regional and national load dispatch centres are in charge of these SLDCs.
Each control area must manage its demands with generation resources in real time under the current architecture.

Importance:

To expand India’s electricity markets and promote the “One Nation, One Grid, One Frequency, One Price” programme, the Union Electricity Ministry is promoting this notion.
The concept might make it possible to distribute the cheapest electricity that is easily accessible across the country to satisfy demand throughout the entire system.
There would be a “universal clearing price” under this paradigm. The price at which supply and demand are balanced is known as the clearing price, market clearing price, or equilibrium price.

What is the cause of the states’ concern?

The power sector has been a more significant source of tension between center-states over time. The distribution industry, which is the weakest link in the electricity network, is to blame for the majority of the current tensions.
The central government has been developing several programmes to help the state discoms’ financial and operational circumstances. Despite numerous attempts, the discoms’ financial situation is unstable, and growing losses threaten the economies of the provincial and federal governments.
An RBI study found that saving the discoms in 18 states could end up costing those states 2.3% of their GDP.

How do we approach it?

Prudence is required because the suggested MBED technique has system-wide consequences and drastically changes the infrastructure and activities of the participants.
Worldwide research is also being done on this paradigm. The current European gas crisis, for instance, has highlighted the weaknesses in markets where marginal electricity prices are associated with the pricing of the lowest cost producers (usually a gas plant). There are negatives, though, like the need to make up for a nuclear power plant’s 5X increase in input costs when gas prices rise. So it’s not a good idea to start using the MBED model right away.

Conclusion:

The MBED concept was developed to solve the discoms’ dire financial conditions as well as the electricity industry as a whole. To determine whether such centralization might truly accomplish these goals, thorough conversations with the stakeholders are needed because it could interfere with state authority and raise legal issues.