What is Intellectual Property?

• Most of the value of new medicines and other high

technology products lies in the amount of invention,
innovation, research, design and testingail.coinvolved.
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• Films, music recordings, books,
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and on-line services are bought and sold because of
the information and creativity they contain, not
usually because of the plastic, metal or paper used to
make them
• Creators can be given the right to prevent others
from using their inventions, designs or other
creations — and to use that right to negotiate
payment in return for others using them. These are
“intellectual property rights”.
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• The extent of protection and enforcement of these

rights varied widely around the world; and as
intellectual property became more important in
trade, these differences became a source of tension
in international economic relations.
• Copyright
• Copyright is a legal term used to describe the rights that creators
have over their literary and artistic works. Works covered by
copyright range from books, music, paintings, sculpture and
films, to computer programs, databases, advertisements, maps
and technical drawings.

• Patents il.c
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• A patent is an exclusive right granted for an invention. Generally
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published patent document.

• Trademarks
• A trademark is a sign capable of distinguishing the goods or
services of one enterprise from those of other enterprises.
Trademarks date back to ancient times when artisans used to
put their signature or "mark" on their products.
• Industrial designs
• An industrial design constitutes the ornamental or aesthetic
aspect of an article. A design may consist of three-dimensional
features, such as the shape or surface of an article, or of two-
dimensional features, such as patterns, lines or color.

• Geographical indications
• Geographical indications and appellations of morigin
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used on goods that have a specific geographical 80
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• Trade secrets
• Trade secrets are IP rights on confidential information which may
be sold or licensed. The unauthorized acquisition, use or
disclosure of such secret information in a manner contrary to
honest commercial practices by others is regarded as an unfair
practice and a violation of the trade secret protection.
TRIPS
• he WTO’s TRIPS Agreement is an attempt to narrow the gaps in
the way these rights are protected around the world, and to
bring them under common international rules. It establishes
minimum levels of protection that each government o m
has to
give to the intellectual property of fellow WTO
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• The agreement covers five broad
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• how basic principles of the trading
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intellectual property agreements should be applied
• how to give adequate protection to intellectual property rights
• how countries should enforce those rights adequately in their own
territories
• how to settle disputes on intellectual property between members of
the WTO
• special transitional arrangements during the period when the new
system is being introduced.
• The purpose is to ensure that adequate standards of
protection exist in all member countries. Here the
starting point is the obligations of the main
international agreements of the World Intellectual
Property Organization (WIPO) that already existed
before the WTO was created:
• the Paris Convention for the Protection ofail.Industrial co
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• the Berne Convention for the Protection
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• Some areas are not covered by these conventions. In

some cases, the standards of protection prescribed
were thought inadequate. So the TRIPS agreement
adds a significant number of new or higher
standards.
• An issue that has arisen recently is how to ensure
patent protection for pharmaceutical products does
not prevent people in poor countries from having
access to medicines — while at the same time
maintaining the patent system’s role in providing
incentives for research and development a il . co into new
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Doha Declaration on TRIPS-2001

The declaration adopted that TRIPS does not and

should not prevent members from taking measures to
protect public health. It should be interpreted and
implemented in a manner supportive of l.WTO co
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• The Doha Declaration on TRIPS and tsin
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subsequently exported into the countries that could not
produce the medicines themselves.

• In 2005, the General Council decided to transform this

temporary waiver into a permanent amendment to the
TRIPS Agreement. The amendment will enter into force
once two-thirds of WTO members confirm their
acceptance by ratifying it.
Free Accessible Route and Voluntary Retention
Route
• FAR-The Reserve Bank, in consultation with the Government of India, introduces
a separate channel, called the ‘Fully Accessible Route’ (FAR), to enable non-
residents to invest in specified Government of India dated securities. Eligible
investors can invest in specified Government securities without being subject to
any investment ceilings. a il . co
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• VRR-The Reserve Bank, in consultation withrathe sh
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Securities and Exchange Board of India (SEBI),
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introduces a separate channel,
called the ‘Voluntary Retention Route’ (VRR),
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to enable FPIs to invest in debt
markets in India. Broadly, investments through the Route will be free of the
macro-prudential and other regulatory norms applicable to FPI investments in
debt markets, provided FPIs voluntarily commit to retain a required minimum
percentage of their investments in India for a period. Participation through this
Route will be entirely voluntary.
• Investment through this Route shall be in addition to the General Investment
Limit
• The NDF market essentially permits investors to trade in non- or
partially convertible currencies (such as the Indian rupee) with the
settlement of contracts taking place in convertible currencies such
as the US dollar.
• NDFs are types of derivatives for trading in non-convertible or
restricted currencies without delivery of the underlying
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• In this market, no exchange takes place gh
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between the NDF rate and the prevailing

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spot market rate and this
amount is settled on the settlement date in a convertible currency,
generally in US dollars in an offshore financial centre.

• Being offshore, the market has remained outside the regulatory

purview of the local monetary authorities.
Regional Trading
• Regional Trade Agreement (RTAs) are defined as
reciprocal trade agreements amongst two or more
partners, not necessarily belonging to the same
region. These are arrangements by which a il . co countries
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greater ease-of-trade by eliminationp ras
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• RTAs structure trade in a way that can

• increase domestic productive capacity,
• promote upward harmonization of standards,
• improve institutions,
• introduce technical know-how into the domestic market and
• increase preferential access to desirable markets
Preferential Trade Agreement (PTA)
• In a PTA, two or more partners agree to reduce tariffs
on agreed number of tariff lines. The list of products
on which the partners agree to reduce duty . c o m is called
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positive list. 80
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• India MERCOSUR PTA is such an example.
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• However, in general PTAs do not cover substantially all

trade.
Free Trade Agreement(FTA)
• FTAs are arrangements between two or more
countries or trading blocs that primarily agree to
reduce or eliminate customs tariff and non m
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barriers on substantial trade between
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• FTAs, normally cover trade On
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ly in goods (such as
agricultural or industrial products) or trade in services
(such as banking, construction, trading etc.).

• The partner countries maintain their own tariff rates

for trade with non-members.
Difference between PTA and FTA
• While in a PTA there is a positive list of products on
which duty is to be reduced; in an FTA there is a
negative list on which duty is not reduced or
eliminated. a il . co
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• Thus, compared to a PTA, FTAs
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are generally more
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ambitious in coverage of Otariff lines (products) on
which duty is to be reduced.
Framework Agreement
• Prior to negotiating trade accords, potential trading
partners sign framework agreements, which set the
period for future substantive liberalization by
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• India has previously signed framework
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the ASEAN (Association ofOSoutheast
nly Asian Nations) and
MERCOSUR (Southern Common Market in Spanish) trade
blocs, and countries like Japan and Korea.
Early Harvest Scheme
• Early harvest scheme is a precursor to a free trade
agreement (FTA) between two trading partners. This
is to help the two trading countries to aidentify il.c
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certain products for tariff liberalisation h 9 80

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• The EHS has been used as a mechanism to build

greater confidence amongst trading partners to
prepare them for even bigger economic engagement.
Comprehensive Economic Cooperation
Agreement (CECA) and Comprehensive
Economic Partnership Agreement
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• These terms describe agreements t sing
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consist of an
integrated package on goods, o r pr a sservices
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and
investment along with other
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competition etc.

• The India Korea CEPA is one such example and it

covers a broad range of other areas like trade
facilitation and customs cooperation, investment,
competition, IPR etc.
Difference between FTA and
CECA/CEPA
• CECA/CEPA are more comprehensive and ambitious that
an FTA in terms of coverage of areas and the type of
commitments. While a traditional FTA focuses mainly on
goods; a CECA/CEPA is more ambitious in terms l . co
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• CECA/CEPA looks deeper at the regulatory aspects of

trade than an FTA. It is on account of this that it
encompasses mutual recognition agreements (MRAs)
that covers the regulatory regimes of the partners.
• A Mutual Recognition Agreement (MRA) is an agreement by
which two or more countries agree to recognize one another's
conformity assessments.
Customs Union
• In a Customs union, partner countries may decide to trade at zero
duty among themselves, however they maintain a il . co common tariffs
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• An example is Southern African Customs Union (SACU) amongst
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South Africa, Lesotho, Namibia, Botswana and Swaziland. European

Union is also an outstanding example.
Common Market
• Integration provided by a Common market is one step
deeper than that by a Customs Union. A common
market is a Customs Union with provisions a il . co
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facilitate free movements of labour h 9 80
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harmonize technical standardsas
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• European Common Market is an example.

Economic Union
• Economic Union is a Common Market extended through further
harmonization of fiscal/monetary policies andail.shared
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judicial & legislative institutions. 98
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• European Union (EU) is an example.
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Commonly Used terms
• Rules of Origin- Rules of origin (ROO) are the criteria
needed to determine the country of origin of a
product for purposes of international trade. Their
importance is derived from the fact that duties and
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• The criteria in the rules of origin sets out specific and
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detailed conditions on the level of processing that an

imported item from a non FTA partner country must
undergo in the FTA partner country (or other eligible
countries in the region) before being eligible to be called an
originating product of a FTA partner country.
• Significance of ROO- The Rules of Origin are
important in the context of making an assessment on
the application of preferential tariff under an FTA.
Hence, without the rules of origin, the preferential
tariffs under an FTA cannot be implemented.
Moreover, the non-members to the FTAl.coare m not
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agreed between the FTA partners.
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• The rules of origin are enforced through a certificate

of origin that is issued by authorised agencies of the
trading partner.
India-PTAs

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• Asia Pacific Trade Agreement (APTA), a preferential
regional trade agreement formerly known as the Bangkok
Agreement was signed in 1975. Its current members are
Bangladesh, China, India, South Korea, Lao and Sri
Lanka. It’s a goods only agreement and four rounds of
negotiations have been concluded by July, 2018. The 5th
Round subsequently began in 2018 to broaden m
the scope
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and make it more comprehensive. On 29gmSeptember ail.
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2020,
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Mongolia acceded to the Asia Pacific n gh
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its seventh member. ra s ha
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• MERCOSUR or the Southern Common Market, is an

economic and political bloc originally comprising
Argentina, Brazil, Paraguay, and Uruguay. Mercosur
functions as a customs union and free-trade area, and
has ambitions to become a common market along the
lines of the European Union.
India’s FTA/CECA/CEPA

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FTAs under Negotiation

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Washington Consensus
• Greater fiscal discipline,

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redirecting it to health, education, and
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• Tax reform,

• Financial liberalization leading to market-determined

interest rates,

• Market determined exchange rates

• Trade liberalization and a systematic reduction of
tariffs to about 10-20%,

• Allowing foreign direct investment,

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• Privatizing large public sector enterprises,
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• Deregulation, and

• Securing property rights

Cornwall Consensus- G7
• Whereas the Washington Consensus minimised the state’s role in the
economy and pushed an aggressive free-market agenda of deregulation,
privatisation, and trade liberalisation, the Cornwall Consensus (reflecting
commitments voiced at the G7 summit in Cornwall last June) would invert
these imperatives. a il . co
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• By revitalising the state’s economic role, it would sing
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allow us to pursue
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societal goals, build international solidarity, pr a s ha
n
and reform global
r
governance in the interest of the common
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o
good
• The Cornwall Consensus also would have us move from reactively fixing
market failures to proactively shaping and making the kinds of markets
we need to nurture in a green economy. It would have us replace
redistribution with pre-distribution.
• The state would coordinate mission-oriented public-private partnerships
aimed at creating a resilient, sustainable, and equitable economy..
Principles
• Solidarity: Accelerate reform of global economic governance to promote the
common good; ensure that national economic policies not only respect each
others’ interests, but advance common goals; and respond more collectively to
economic crises, coercion and market distortions.
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• Better Risk Management: Establish collective mechanisms 9@
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and invest in addressing emergent economic,shaenvironmental
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risks; ly f or
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• Sustainable and Purposeful Supply: Collaborate with business to design open

innovation-friendly market systems which are resilient to natural or deliberate
disruption in critical sectors affecting national, economic or human security;
• Better Governance: Promote common global standards, rules and
norms for the new economy which conform with our values, promote
sustainability, uphold labour standards, and encourage national and
international regulations that strengthen our collective economic
resilience; and
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• Inclusion: Accelerate investment in the nSustainablegh
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Development
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Goals, promote digital inclusion, eliminate
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full access for developing countries to global markets; alongside
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national policies to tackle inequality and support traditionally under-

represented groups such as women and minoritiesmy which conform
with our values, promote sustainability, uphold
Periodic Labour Force Survey
• Prior to the present PLFS, the then NSSO used to have
quinquennial surveys on employment and
unemployment (EUS). The first such survey . c o m was done
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• The NSO did not conduct any national level

employment surveys after 2011-12 and instead a
program of periodic surveys on employment was
instituted from 2017-18 with the idea of providing
annual and quarterly indicators of employment and
unemployment.
• There are two types of reports published by the NSO
from the PLFS.

• The main report published annually is based only on

the data collected from the first visit for both rural
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• The panel survey data of urban
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households are used
to produce quarterly reports for the urban sector.
The quarterly reports for the urban sector use the
current weekly status approach, while the first visit
data include both the usual status approach and the
current weekly status approach.
• The PLFS classifies workers into self-employed,
regular wage/salaried workers and casual labourers.

• The self-employed includes

• own account workers (who run small enterprises o m
alone or
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with help from family members but without ail hiring
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workers); sing
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• unpaid family helpers; and or prasha
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• employers (who hire workers for their enterprise).
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• It is worth noting that the usual status WPR for the same age group
was 80 percent and 74 percent for rural and urban sectors
respectively in the last EUS of 2011-12.

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• For women, we see an increase in the WPR both in rural and urban
areas, the former around an 8 percentage point jump compared to
the post demonetization year 2017-18. For urban areas this works out
to a moderate 3 point increase.
• These numbers for the 2011-12 survey were 35.2 percent and 19.5
percent showing that the WPR for rural women gm
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earlier levels and is not much different from

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• There is also an increase in the percentage of casual workers and a
small increase of the self-employed women. These categories of
employment could be distress driven and not necessarily any
improvement in the overall economic activity as that would have
shown up in an improved WPR for men in the first instance.
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• It is also noteworthy that the share ofshemployment
a
gh
n tsin in the agriculture
and allied sector has gone up fromnly71.1
f o r pra
percent in 2018-19 to 75.5
percent for rural women. The improvement
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in their WPR has
happened due to increased employment in the primary sector.

• For urban women there is an increase in wage employment, which is

encouraging with the overall WPR crossing the 2011-12 level of 19.5
percent.
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• Labour Bureau, is conducting the following All-India Surveys under
the overall guidance of an Expert Group (chaired by Prof S. P.
Mukherjee and co-chaired by Dr Amitabh Kundu) :

• All India Survey on Migrant Workers. (Launched on 1st April, 2021.)- To study
the kind of employment related migration undertaken by workers, the details
of working and living conditions faced by them andil.cimpact
om of COVID 19 on
their world of work. 9@
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• All India Quarterly Establishment based for
p
h
rasEmployment Survey (AQEES)
st
(launched with effect from 1 April O2021.)-
n ly
the employment and related
variables of establishments, in both organised and unorganised segments of
nine selected sectors. These nine selected sectors are Manufacturing,
Construction, Trade, Transport, Education, Health, Accommodation and
Restaurant, IT/ BPO and Financial Services.

• All India Survey on Domestic Workers. (Survey has been flagged off on 22nd
November 2021.
• All-India Survey on Employment generated in Transport Sector –
Estimates for employment generated in the transportation sector in
the country will be generated using this survey.

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• All-India Survey of Employment Generated by Professionals – The
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survey will help in the estimation of employment n tsin
g h generated by
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professions such as lawyers, medical ly for
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and chartered accountants.
SAS-Agriculture
• Agricultural households are defined as households having
at least one member self-employed in farming and whose
annual value of produce from such activity exceeds Rs
4,000. .co
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• Farming or “agricultural activity”shincludes a
gh
n tsin cultivation of
crops (field, horticultural, plantation
f o r pra and fodder) as well
as animal husbandry (dairying,On
ly
poultry, goat/sheep-
rearing, piggery, inland fishery, beekeeping, sericulture,
etc.).

• Self-employment in agriculture can further be either in

“principal” or even “subsidiary” status not less than 30
days during the survey reference period of six months
• India, as per this report, had 93.09 million “agricultural households”
in 2018-19 (July-June) and 101.98 operational holdings. Of these,
89.58 million holdings were possessed by agricultural households,
while 12.40 holdings were possessed by non-agricultural households

• According to the SAS, average monthly income of an agricultural

household is ₹10,218. Out of which,
• income from wages ₹4,063 (39.8%) l . co
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• income from crop production ₹3,798 (37.2%), @gma
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• income from farming of animals ₹1,582 (15.5%), h 9 80
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• income from non-farm business ₹641 (6.3%), s ha
n t s
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• income from leasing out of land ₹134
y f
pr
or (1.3%)
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• The income was calculated after factoring in paid-out costs. When

imputed costs--i.e., use of self-owned inputs like machinery and
seed stock, owned animals and unpaid family labour--were factored
in, the average monthly income of farmers' households in 2018-19
was Rs 8,337

• The income of agricultural households increased in nominal terms

by 59% between 2013 and 2019 (from 6,426 to 10,219).
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• In large states like Bihar, Uttar Pradesh, Madhya Pradesh,
Telangana, West Bengal and Chhattisgarh, incomes
were lower than the national average.

• Jharkhand and Odisha reported the lowest atm Rs 4,985

and Rs 5,112 per month, respectively. Punjab gm
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and Haryana
reported the highest monthly farmer n g h incomes
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among
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large states, at Rs 26,701 and Rsras22,841,
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• Of the 28 States for which SAS data is available for 2018-

19, the average monthly income is more than ₹10,000
only in 12 States, of which four are from the north-eastern
region. The rest of the 16 States’ incomes are in the range
of ₹4,013-9,995
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• The 50% farm income-to-total agricultural household
income threshold is crossed at an all-India level only when
the land possessed size exceeds one hectare or 2.5 acres.

• Farming income contributes 50 percent or more of overall

income for only 39 percent of agricultural ahouseholds
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India or approximately 36 million households.
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• Conclusion- Given the very small size of landholding

possessed by most farming households, it is a reality that
most agricultural households are increasingly dependent
on income from wages and other sources to meet their
needs.
Indebtness
• Over the six years, although indebted agricultural
households fell to 50.2% in 2018-19 from 52% in
2012-13, the average outstanding loan among
agricultural households increased 59%--from ma il . co
m
Rs
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47,000 to Rs 74,121. gh
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• Among indebted agricultural households, 82.9% were
landless, marginal and small farmers.
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• In 11 of the 28 states, agricultural households
reported borrowing more than the national average,
with at least eight having an average outstanding loan
of more than Rs 1 lakh.

• All southern states--Telangana, Andhra Pradesh, om

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Karnataka, Kerala and Tamil Nadu--reported t sing
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more
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than Rs 1 lakh outstanding loansf or
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per household, on
ly
average. On

• The top three states with indebtedness,

• Andhra Pradesh (93.2%)
• Telangana (91.7%), and
• Kerala (69.9%)