(12/3/2024) : Indian Express Editorial Micro Notes Summary (Penicillin-G production in India and Household Consumption Expenditure Survey)

Question : What were the main factors that led to the cessation of Penicillin-G production in India in the 1990s, and how did the influx of cheaper alternatives, primarily from China, contribute to this decline?

Or

Question : How did supply chain disruptions and China’s dominance in Penicillin-G production during recent times, especially highlighted by the COVID-19 pandemic, influence India’s decision to resume domestic production?

GS-2 Health : GS Penicillin Production in India 

India to Resume Penicillin-G Production:

• After 30 years, India restarts domestic production of Penicillin-G, an antibiotic.
• Penicillin-G treats infections but is administered via injection due to poor absorption.

Why Production Stopped?

• 1990s: Cheaper alternatives (mainly from China) flooded the market.
• Recent supply chain disruptions and China’s low production highlighted the need for domestic production.
• COVID-19 pandemic exposed India’s dependence on imported APIs (Active Pharmaceutical Ingredients).

Challenges of Penicillin-G Production:

• Complex and expensive fermentation process discourages domestic production.
• Government’s “Make in India” initiative initially faced hurdles.

Why Resume Production Now?

• India has high rates of rheumatic fever requiring penicillin treatment.
• Broad-spectrum substitutes harm essential gut bacteria.

Government’s Production Linked Incentive (PLI) Scheme:

• Offers financial support to companies producing Penicillin-G and other essential drugs.
• Aims to reduce dependence on imported APIs.
• Balancing affordability and long-term sustainability remains a challenge.

Conclusion:

• Resuming Penicillin-G production is a positive step towards self-reliance in bulk drugs.
• Ensuring affordability and long-term sustainability are crucial for success.

 

 

Question : What were the updated poverty lines according to the SBI report for rural and urban areas in 2022-23, and how did they compare to previous figures?

Or

Question : What were the notable changes in rural and urban poverty rates from 2011-12 to 2022-23 according to the HCES, and how do they differ when using the Tendulkar and Rangarajan poverty lines?

 

GS-3 Mains : Economy : Summary of Household Consumption Expenditure Survey (HCES), 2022-23 Insights:

1. Trends in Poverty:

• SBI report updates poverty lines: Rs 1,622 rural, Rs 1,929 urban.
• Rural poverty down from 25.7% (2011-12) to 7.2% (2022-23); urban down from 13.7% to 4.6%.
• Poverty ratio: Tendulkar (6.3%), Rangarajan (10.8%).
• HCES changes: item coverage, questionnaire, data collection method.
• NSSO, NAS difference: widened over time, implications for poverty ratio.

2. Difference between NSSO and NAS:

• NSSO, NAS aggregate private consumption expenditure difference widening.
• Implications for poverty ratio computation.
• NSSO Advisory Group analysis needed.

3. Consumption Patterns & CPI Implications:

• Rural food share decline: 52.9% (2011-12) to 46.4% (2022-23); urban from 42.6% to 39.2%.
• Cereals share decline: rural (10.8% to 4.9%), urban (6.7% to 3.6%).
• Increase: fruits, beverages, processed food; decrease: vegetables.
• Non-food items increase: toiletries, household items, conveyance, durable goods.
• CPI basket weight adjustments needed based on new consumption patterns.
• Food share decline positive, but impact on inflation questioned.
• Monetary policy implications: new price index consideration.

Conclusion:

• New consumption survey necessitates new indices.
• Fresh poverty estimates due to survey insights.
• Inflation and monetary policy affected by consumption changes.

Key Observations:

• Poverty decline significant, but methodology differences impact ratios.
• NSSO, NAS difference widening, warrants deep analysis.
• Consumption pattern shifts prompt CPI weight adjustments.
• Food share decline may temper inflation, but impact uncertain.
• Monetary policy committee to consider new price index for policy decisions.

Implications:

• Policy adjustments required for accurate poverty estimation.
• Improved data collection methodologies crucial for reliable statistics.
• CPI revisions essential for effective inflation management.
• Monetary policy formulation to accommodate changing consumption patterns.

Note: The summary encapsulates key findings and implications from the HCES 2022-23, addressing poverty trends, NSSO-NAS disparities, consumption pattern shifts, and CPI implications.