Impact of Rupee Depreciation on India's Pharmaceutical Exports

The recent depreciation of the Indian rupee against the US dollar has sparked discussions regarding its impact on India's pharmaceutical exports.

• Experts are divided on the immediate effects: 
  • Some believe that annual contracts, which are hedged against currency fluctuations, will see little immediate impact.
  • Others caution that smaller exporters may reduce prices due to the currency benefit, potentially leading to price renegotiations.
• Concerns have been raised about the increased import costs of active pharmaceutical ingredients (APIs), which could negate any benefits from a surge in exports.
• Last week's currency movement saw the rupee reaching a fresh closing low against the US dollar.

Meeting of Commerce Ministry and Indian Missions

Senior officials from the commerce ministry, along with representatives from the commercial wings of Indian Missions in 20 countries, are set to hold a three-day meeting to discuss strategies for enhancing the export of goods and services.

Participants and Schedule

• Commerce and Industry Minister Piyush Goyal will interact with the representatives.
• The meeting will address both opportunities and challenges faced in significant countries.

Key Discussion Topics

• Opportunities and challenges in six focus sectors for goods and services.
• Non-tariff barriers impacting trade.
• Logistics issues related to export and import.
• World Trade Organization (WTO) matters.
• The importance of the Market Access Initiative (MAI).

Export Strategy

• Focus on six key product categories, including engineering goods and electronics.
• Targeted 20 countries: US, Australia, France, China, Russia, UK, Japan, South Korea, Singapore, and Indonesia.
• These countries represent a significant portion of India's total exports.

Participants

• Commerce Secretary.
• Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) .

Export and Import Data

• October 2024 showed double-digit growth in exports.
• November exports contracted by 4.85% year-on-year to USD 32.11 billion.
• Trade deficit reached an all-time high of USD 37.84 billion due to gold imports surge.
• Imports rose 27% year-on-year to a record USD 69.95 billion in November.
• Cumulative data (April-November): Exports rose 2.17% to USD 284.31 billion; imports increased by 8.35% to USD 486.73 billion.
• Trade deficit widened to USD 202.42 billion from USD 170.98 billion (April-November 2023).

Focus Areas for Boosting Shipments

• Targeting 20 countries and six service and manufacturing sectors, including IT/ITeS.
• Services exports reached an all-time high of USD 34.31 billion in October, marking a 22.3% increase year-on-year.

Inauguration of the Delhi-Meerut RRTS

Prime Minister inaugurated the first section of the Delhi-Meerut Rapid Rail Transit System (RRTS) and interacted with children aboard the Namo Bharat Train. The newly opened section connects New Ashok Nagar to the operational segment between Sahibabad and Meerut.

Infrastructure Development

Over the past decade, the Indian government's primary focus has been on infrastructure development.

• Ten years ago, the budget for infrastructure was around Rs 2 lakh crore, now it exceeds Rs 11 lakh crore.
• Emphasis on modern connectivity within and between cities to ensure a dignified life for all citizens, especially the poor and middle class.

Metro Network Expansion

PM  inaugurated a 2.8-km stretch of the Delhi Metro’s Magenta line between Janakpuri West and Krishna Park stations.

• India will have the second-largest Metro network in the world.
• From just 248 km in 2014, the Metro network has expanded by over 752 km in the last decade.
• Foundation stone laid for the Rithala-Narela-Kundli Metro corridor, a future long section of the network.

Economic Development and Public Transport

Delhi CM emphasized the significance of the new projects in advancing economic development.

• Delhi is seen as a model of public transport for India and the world.
• The RRTS is a collaborative project involving the Centre and the governments of Delhi, UP, and Haryana.
• The Delhi government has invested Rs 1,260 crore in the RRTS line to boost the city’s economic development.

Central Ayurveda Research Institute

PM laid the foundation stone for constructing a new state-of-the-art building for the Central Ayurveda Research Institute in Rohini, costing Rs 185 crore.

Enhancing Social Security for Unorganised Workers

The Labour and Employment Ministry is set to introduce measures aimed at improving social security coverage for over 380 million unorganised workers in India. This initiative is part of a broader effort to ensure ease of living for these workers.

Key Measures and Reforms

• Common Application Form:
  • A common application form will be introduced on the e-Shram portal.
  • This form will enable unorganised workers to access benefits from at least 12 social security schemes.
  • Expected to be ready within six months, making e-Shram a one-stop solution for social security benefits as envisaged in the Budget 2024-25.
• Targeted Enrolment:
  • Specific enrolment of gig and platform workers through a dedicated module on the e-Shram portal.
  • Building and construction workers will be brought on board for social security coverage.
• Platform Aggregators:
  • All platform aggregators have been advised to register themselves and their workers on the e-Shram portal for availing social security benefits.

Integration and Data Analysis

• Data Integration:
  • States and union territories are being assisted to integrate their data on building and construction workers (BoCW) with e-Shram for benefit analysis.
  • 10 states have completed this data integration, and 12 have agreements with state health agencies for extending Ayushman Bharat-PM Jan Aarogya Yojana benefits.
• Platform Worker Module:
  • A module for verifying platform workers has been developed.

e-Shram Portal as a One-Stop Solution

• The e-Shram portal aims to verify workers' eligibility and ensure the saturation of schemes at state and district levels efficiently.
• A dozen schemes from various central ministries and departments have been integrated, including: 
  • PM-Jan Aarogya Yojana (PM-JAY)
  • PM Jeevan Jyoti Bima Yojana (PM-JJBY)
  • PM Suraksha Bima Yojana (PM-SBY)
  • PM Awas Yojana (PMAY)
  • One Nation One Ration Card (ONORC)
  • Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

‘CCI will Focus on Boosting Enforcement, Leveraging Tech for Fair Competition’

The Competition Commission of India (CCI) is focused on enhancing fair competition within the nation by improving enforcement, fostering collaborations, and using technology strategically.

Key Focus Areas

• Enforcement Strengthening: The CCI aims to reinforce its enforcement mechanisms to better manage competition and curb anti-competitive practices.
• Collaborations Enhancement: By enhancing collaborations, CCI intends to foster a more cooperative environment for fair competition.
• Technological Leverage: Emphasizing the integration of technology to ensure a competitive market landscape.

Regulatory Approach

According to CCI's, there is a need for a nimble and proactive regulatory approach to address emerging market challenges, especially those driven by technology and innovation.

Recent Amendments and Initiatives

• Competition Act Amendments (2023): New mechanisms introduced, such as settlement, commitment, and deal value thresholds.
• Balance in Oversight: Striking a balance between effective oversight and a simplified regulatory regime is a priority.

Future Plans and Recruitment

• Hiring Domain Experts: Recruitment in fields like AI, data analytics, and digital markets to stay future-ready and tackle technological challenges.
• Market Studies: Conducting studies on competition issues related to artificial intelligence and renewable energy within BRICS nations.