Nobel Prize for Physics goes to AI Pioneers, Global Digital Compact, Fairwork India Ratings 2024: Labour Standards in the Platform Economy

(General Studies III – Economy Section – Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.)

• India’s textile industry, a critical sector for the country’s economy, was valued at $153 billion in 2021.
• Aiming for $350 billion by 2030, the industry faces several challenges but remains resilient due to its diversity, labour intensity, and global significance​.
• The sector contributes 2.3% to the national GDP and employs about 105 million people directly and indirectly​.

Key Characteristics of the Indian Textile Industry –

1. Diverse Product Range: The industry covers a wide range of products, including natural fibres like cotton, silk, jute, and synthetic fibres such as polyester and viscose. India is the second-largest producer of man-made fibres (MMF) and the largest producer of cotton globally​
2. Labor-Intensive Nature: The textile industry is highly labor-intensive, especially in rural regions, with MSMEs (Micro, Small, and Medium Enterprises) accounting for 80% of the sector’s operations​
3. Global Standing: India ranks as the third-largest exporter of textiles, with a global market share of 5.4%​. The country also ranks second in apparel manufacturing.
4. Emerging Sectors: There is increasing demand for technical textiles, such as those used in automotive, healthcare, and construction industries. Additionally, sustainable textiles are becoming more important as the global market shifts toward eco-friendly materials, such as organic cotton and bamboo fibre​

Major Challenges Facing the Industry –

1. Raw Material Price Volatility: The 10% import duty on cotton and fluctuating prices of MMF have hurt the competitiveness of Indian textiles internationally. Local manufacturers are also struggling due to increased imports from Bangladesh, especially in the knitted fabric segment, which benefits from free trade agreements (FTAs)​
2. Technological Gaps: One of the industry’s most pressing challenges is the lack of advanced technology, particularly in finishing and processing. Many manufacturers rely on outdated methods, which limits the quality and output of Indian textiles. As a result, they are forced to import high-quality finished fabrics, which reduces cost efficiency​
3. Geopolitical and Supply Chain Disruptions: The ongoing Russia-Ukraine conflict and rising freight costs due to instability in global shipping routes have severely affected the industry. India’s exports to its major markets, like the US and EU, have declined due to reduced consumption amid recessionary trends​
4. Sustainability Pressure: Global brands are increasingly focused on sourcing materials that adhere to Environmental, Social, and Governance (ESG) standards. This means Indian manufacturers must meet higher sustainability targets, which can be expensive and difficult to achieve without significant investment​
5. Changing Consumer Preferences: Consumer preferences are evolving, with a growing demand for comfort wear, athleisure, and sustainable fashion. Indian manufacturers need to adapt to these trends to remain competitive both domestically and internationally​.

Government Initiatives and Future Prospects –

1. Production-Linked Incentive (PLI) Scheme: Launched in 2021, this ₹10,683 crore scheme aims to boost the production of MMF-based textiles and technical textiles. Investments worth ₹2,119 crore have already been made, creating over 8,000 jobs​
2. Scheme for Integrated Textile Parks (SITP): This initiative focuses on improving infrastructure across the textile value chain. With 54 textile parks approved, the aim is to develop world-class facilities that enhance operational efficiency​
3. Sustainability Initiatives: The focus on sustainable practices is growing. The demand for organic and recycled fibres is increasing, while digital textile printing is helping reduce waste and meet consumer demand for environmentally friendly products​
4. Technical Textiles Growth: Technical textiles, known for their durability and advanced applications in healthcare, automotive, and defense, are a key growth area. This sector is expected to expand rapidly, driven by both government support and rising global demand​

The Indian textile industry, despite facing significant challenges such as raw material volatility, technological gaps, and global disruptions, has immense growth potential. Key government initiatives like the PLI and SITP schemes are expected to drive future growth, particularly in the technical textiles and sustainable fashion segments. For the industry to achieve its ambitious goal of $350 billion by 2030, it must address these challenges through innovation, investments in infrastructure, and aligning with global sustainability trends​

• The 2024 Nobel Prize in Physics was awarded to John J. Hopfield and Geoffrey E. Hinton for their foundational contributions to artificial neural networks (ANNs) and machine learning, technologies that have revolutionised various fields of science and technology.
• Artificial Neural Networks (ANNs): ANNs are networks of interconnected neurons (or processing units) designed to mimic the brain’s function. Each neuron processes information and passes it along to others, forming a network capable of learning and performing complex tasks.

• Hopfield Network:
• Introduced by John J. Hopfield in 1982, a recurrent neural network allows information to flow bidirectionally between neurons.
• Based on Hebbian learning, the Hopfield network can solve problems like image denoising by minimising system energy, analogous to reducing magnetic energy in physical systems.
• Boltzmann Machines:
• Geoffrey Hinton expanded on Hopfield’s work with the Boltzmann machine, which models a network where neurons minimise energy in a manner similar to spin glasses in physics.
• These systems can classify data and generate new patterns by reducing the value of an energy function.
• Hebbian Learning: A concept from neuropsychology, Hebbian learning underpins the functioning of ANNs by strengthening connections between neurons that frequently activate together.

Dig Deeper: Read about John Hopfield’s Associative Memory.

• The Centre’s crowdfunding portal for rare disease treatment, launched in August 2021, has raised a minimal amount of ₹3.49 lakh. 2,287 patients registered and 50 urgently need funds.

• Due to insufficient support, families turn to private crowdfunding platforms for help.
• Purpose of the Portal: The Health Ministry established the platform to gather voluntary donations from individuals or corporations for treating rare diseases.
• Challenges:

• The lack of Section 80G tax exemptions for donations.
• ₹50 lakh financial assistance limit provided by the government policy.
• The absence of corporate social responsibility (CSR) benefits for contributing firms has hindered the portal’s success.
• Epidemiological Data Collection:
• The Indian Council of Medical Research (ICMR) has initiated a National Registry to collect data on rare diseases and inherited disorders.
• There are more than 4000 rare diseases identified in government data including storage disorders, metabolic disorders, immune deficiencies, and neuromuscular disorders, have been collected.

Dig Deeper: Read about the “WHO Collaborative Global Network 4 Rare Diseases” and ICD-11.

• The Indian Space Research Organisation (ISRO) announced that the upper stage of the Polar Satellite Launch Vehicle (PSLV) C-37 mission re-entered the Earth’s atmosphere.
• The PSLV-C37 mission launched in 2017 created History as it carried Cartosat-2D as its main payload, along with 103 other satellites like INS-1A, INS-1B, and 88 Flock-3p satellites.
• After the satellites were deployed, the upper stage (PS4) was left in orbit at around 480 km altitude.
• Due to atmospheric drag, its orbit gradually decayed and re-entry into Earth’s atmosphere occurred as predicted by both ISRO and the U.S. Space Command.
• The re-entry was in full compliance with international space debris mitigation guidelines, specifically those of the Inter-Agency Space Debris Coordination Committee (IADC), which limit the post-mission orbital life of defunct objects in low-Earth orbit to 25 years.

Dig Deeper: Read about the Inter-Agency Space Debris Coordination Committee and ISRO’s IS4OM.

• The recently concluded “Summit of the Future” organized by the United Nations led to the adoption of the “Global Digital Compact” (GDC).
• It is a comprehensive framework for global governance of digital technology and artificial intelligence, Twenty years after the World Summit on the Information Society.
• The GDC is an ambitious instrument designed for the common good, although it is not legally binding.
• The GDC is a diplomatic initiative aimed at creating shared goals for governments, institutions, and stakeholders.
• It seeks to promote digital technologies to support Sustainable Development Goals (SDGs).
• Two panels are to be established under GDC. one on AI governance and another for global dialogue on AI regulation.
• The GDC promotes open-source software and AI models, to drive social change.
• Challenges: The GDC’s proposal for partnerships may face limitations due to restrictions like non-disclosure and intellectual property protection, calls for self-regulation by tech companies, but this has been ineffective in practice, lacks emphasis on strong personal data protection and privacy laws, gives corporate entities significant power but does not provide sufficient measures to prevent monopolistic practices.

Dig Deeper: Read about India’s steps for regulation of Digital Technologies.

• The World Health Organization (WHO) has recognized India for successfully eliminating trachoma, a bacterial eye infection, as a public health problem.
• India is the third country (alongside Nepal and Myanmar) in the Southeast Asia region to achieve this milestone.
• Effective surveillance, diagnosis, and management of active trachoma were crucial to the success.

Dig Deeper: Read about infectious diseases India has eliminated in recent times.

• A report by the Fairwork project- coordinated by the Oxford Internet Institute and the WZB Berlin Social Science Center.
• It assesses the working conditions of gig workers on major e-commerce platforms, evaluating them against five principles: fair pay, fair conditions, fair contracts, fair management, and fair representation.
• The report highlights the platforms’ lack of commitment to ensuring local living wages and recognizing collective representation through trade unions.
• No platform committed to a living wage, or provided sufficient evidence that all workers earn this amount.
• No platform scoring on all basic principles.

Dig Deeper: Read about the concept of Gig workers and the initiatives launched by the Government of India for the formalisation of the Workforce.