The Aakhya Weekly #15 | Battle Royale over OTT Apps
The Aakhya Weekly #15 | Battle Royale over OTT Apps
In Focus: Four-way ministerial deadlock over regulation of OTT apps
Key ministries – Ministry of Home Affairs (MHA), the Department of Telecommunications (DoT), Ministry of Electronics and Information Technology (MeitY), and Ministry of Information and Broadcasting (MIB) – are divided on the issue of regulating over-the-top (OTT) players like WhatsApp, Telegram, and Signal.
While the MHA and DoT are in favour of regulating OTTs in the interest of public safety and national security, MeitY is against any kind of regulation at this stage, instead advocating for a hands-off approach with a free hand to the market forces. Meanwhile, MIB has not issued any comments on the matter at all, although it reportedly believes that is ought to have the sole domain over content and news without the involvement of any other department.
The various comments from the Ministries come on the heels of a consultation taken up by the DoT over regulation of such apps. The DoT has made a reference to the Telecom Regulatory Authority of India (TRAI) to reconsider its position on regulation of OTT apps. TRAI had recommended, back in 2020, that there was no need for regulation, but that it would review its recommendations at a later stage. Both DoT and MHA are of the opinion that there should be real-time control and analysis of information circulated on such apps, to curb the spread of misinformation.
Industry stakeholders like the Cellular Operators Association of India (COAI) have called for OTT apps to be brought under the Unified License (UL) regime as they offer the same set of services. Presumably, this refers only to OTT communications services and not OTT content platforms which broadcast content over the internet and are currently subject to light-touch regulation under the Information Technology (Intermediaries Guidelines and Digital Ethics Code) Rules, 2021.
The deadlock has arisen today because of the differentiated responsibilities between ministries concerning services in sectors that are converging in the digital age. While OTT communication apps providing similar services to telecom would likely fall under DoT, MeitY has control over social media apps like Twitter and Facebook, with MIB having oversight with respect to OTT content delivery platforms.
Top Stories of the Week
First cohort of Cheetahs for Project Cheetah arriving Sept. 17
On Saturday, eight African cheetahs are set to arrive at Kunho National Park in Madhya Pradesh to be reintroduced in India, more than 70 years after they were declared extinct in the country. In the making for twelve years, Project Cheetah is the world’s first inter-continental large wild carnivore translocation project. The cheetahs were selected on the basis of an assessment of health, wild disposition, hunting skills, and ability to contribute genetics that will result in a strong founder population. While only three males and five females are coming in this cohort, fifty more cheetahs are expected to arrive over the next five years.
However, not everyone is convinced that this project will succeed. There are concerns around the ecological suitability of Kunho for the African Cheetah - specifically the lack of expansive ‘natural’ grasslands similar to the ones found in African Savannah. To assuage concerns regarding their well being at least temporarily, a 500-hectare predator proof enclosure has been designed to facilitate a ‘soft-release’ into India. Their long term survival prospects remain uncertain.
Despite Lifting Visa Ban, Medical Studies for Indian Students in China Not Ideal
The Indian Embassy in Beijing released a detailed advisory on studies in Chinese medical schools, in response to queries from prospective medical students and their parents who wanted to complete their studies in China. In the advisory, the Indian Embassy highlighted a study conducted by the National Board of Examination, which noted that only 16% Indian students who studied medicine in China from 2015 to 2021 passed the Foreign Medical Graduates Examination (FMGE) to practice medicine in India, showcasing the poor quality of medical education in China.
Apart from the low quality of education in China, other issues exist. One of them is the language barrier; despite courses being in English, past Indian students who had studied in China reported that they faced issues in understanding the professors. Another major issue since the beginning of pandemic has been China’s ‘Dynamic Zero Covid Policy’, which puts strict restrictions on movement and can affect studies. Additionally, this policy keeps changing constantly, leaving students away from home confused and helpless.
India presses pause on IPEF’s trade pillar negotiations
IPEF, or the Indo-Pacific Economic Framework, is a joint collaboration between India and 13 other partner nations (including the United States) from the Indo-Pacific as part of an ongoing strategy of the US to counter growing Chinese influence in Asian economies. Negotiations over the IPEF are being considered along 4 pillars - supply chains, anti-corruption practices and taxation, clean energy, and trade. India has expressed its intention to be part of the first three pillars but has pulled out of the fourth one - trade - owing to concerns about ‘sensitive’ sectors.
This move by India to avoid a multilateral trade deal is not entirely unexpected. New Delhi, while aggressively pursuing bilateral free-trade agreement negotiations with countries like the UK, Israel and the EU, has always maintained a cautious approach to large, powerful regional trade blocs (such as the US-led Trans-Pacific Partnership and the China-centric Regional Comprehensive Trade Partnership.
Commerce and Industry Minister Piyush Goyal has stated that India would wait for broader consensus to emerge on some aspects before taking a final decision. Some of the key issues tied into the IPEF’s trade pillar - digital economy, data flows, labour and environmental standards, and public procurement - explain India’s reluctance, as India’s domestic policies around these issues are still a work in progress.
This Week in Policy
Macroeconomics and Taxation
India’s industrial production growth, measured by the Index of Industrial Production (IIP), dropped to a four month low of 2.4% in the month of July, compared to 12.3% in June. A sharp contraction of 3.3% in mining in the month contributed to the drop.
Retail inflation rose to 7.1% in the month of August, inching up from 6.7% in July. The increase was caused, in part, by a 7.62% increase in food prices.
India’s wholesale inflation eased to 12.41% in August, from 13.93% in July. This marks the seventeenth consecutive month for which wholesale inflation has been in the double digits.
The RBI sold USD 13 billion in the spot market in August, in a bid to defend the Rupee exchange rate against the psychological mark of INR 80 to the USD.
Labour
The Government is looking to permit 100% work-from-home for employees in Special Economic Zones. The move is aimed at creating more employment opportunities in small cities and increase services exports.
The Rajasthan Government launched its flagship ‘Indira Gandhi Shehari Rojgar Yojana’, an urban employment guarantee scheme for those between 18 and 60 years of age.
Agriculture and FMCG
India’s agricultural and food exports are up by 30% year-on-year for the quarter of April-July, with processed fruits and vegetables recording a significant growth of 51%.
Aiming to increase domestic availability, the Government has banned the export of broken rice. The decision comes on the heels of the imposition of a 20% export duty on non-basmati rice.
Healthcare
The country’s total health expenditure dropped from 4% of the GDP in 2013-14 to 3.2% of the GDP for 2018-19, as per National Health Accounts estimates. Government expenditure on health as a percentage of GDP rose marginally over this period, from 1.15% in 2013-14 to 1.28% in 2018-19.
The Union Health Ministry shall hold the ‘Raktdan Amrit Mahotsav’, a voluntary blood donation campaign, from September 17 to the National Voluntary Blood Donation Day, on October 1.
The Parliamentary Standing Committee on Health and Family Welfare has recommended that the Union Health Ministry examine deaths due to oxygen shortage during the COVID-19 pandemic, and ensure compensation to victims’ families.
Foreign affairs
In a massive breakthrough after a protracted stalemate, India and China have announced a disengagement of their troops from Patrolling Point 15 in the Gogra-Hotsprings area of Eastern Ladakh.
India will host the G20 Leaders’ Summit, an inter-governmental forum of the world’s major developed and developing economies, comprising 19 countries and the European Union, on September 9th and 10th 2023.
Technology, Media and Telecommunications
Finance Minister Nirmala Sitharaman, in a meeting with IMF Managing Director Kristalina Georgieva, urged the organisation to take the lead role on regulation of crypto assets and to define a globally coordinated approach.
The Department of Telecommunications is set to unveil a ‘forward looking’ draft telecom bill that is expected to address sectoral issues arising out of new technologies, including the rise of over-the-top (OTT) applications.
International trade and commerce
The Ministry of Commerce and Industry is reviewing in detail a proposal to redesign the Department of Commerce and also plans to set up a trade promotion body.
The United States commerce department is leading an education trade mission in India from September 12th to 16th to identify and promote opportunities for collaboration between Indian and American institutes of higher education.
Banking, Finance and Insurance
Finance ministry mulling changes in insurance laws, including reduction in minimum capital requirement, with a view to increasing the insurance penetration in the country.
Manufacturing
In the wake of increased demand in sectors like electronic components, toy, furniture, bicycles, pharma and medical devices, the Government of India is engaged in discussions to extend PLI schemes to more sectors.
Government warns multinational auto companies of serious action if they pressure component makers to import from preferred suppliers in areas with an opportunity to localise manufacturing.
Retail and e-commerce
Department of Consular Affairs to finalise changes in norms related to fake reviews on e-commerce platforms, which which were formed by the Bureau of Standards in 2021
Logistics
Prime Minister is expected to launch the National Logistics Policy on September 17. The proposed policy will work in tandem with the PM GatiShakti to create logistics efficiency, reduce logistics cost and enhance a data driven systems.
Government underway to mainstraim Logistics and Supply Chain Resiliance courses in more than 100 universities.
Sustainability
EU-India Green Hydrogen Forum inaugurated, with the European Union keen to explore the possibility of building a pipeline of hydrogen projects in India via private sector investments.
National Green Tribunal orders the Maharashtra government to pay Rs. 12,000 crore in fines as environmental compensation for improper waste management.
Upcoming Events
India ESG Conclave 2022
September 23 | ITC Maurya, New Delhi
ASSOCHAM is organising the India ESG Conclave 2022 - ‘Challenges, Opportunities & The Way Forward’ on September 23, 2022 at the ITC Maurya, New Delhi. The conclave will provide a platform for the industry, government and other related stakeholders to discuss the key challenges and learn global best practices with key focus on framework, compliances and regulatory procedures. Discussions will revolve around the themes of evolving ESG reporting landscape in India, Green Finance for ESG, Decarbonization, and Circular Economy to name a few. More Details
LEADS 2022 - Leadership for the Future
September 20-21 | The Lalit, New Delhi
FICCI is hosting LEADS 2022 with an overarching theme “Leadership for Future” on September 20-21 at The Lalit, New Delhi. LEADS (Leadership, Excellence, Adaptability, Diversity, Sustainability) is a global thought leadership initiative, now in its third edition. The programme is curated as a strategic platform for confluence of global leaders, influencers, and opinion shapers across the spectrum of world economy. The two-day event will see the participation of 45 countries. Read more | Registration Link
17th Sustainability Summit
September 21-22 | Le Meridien, New Delhi
CII is organising the 17th iteration of Sustainability Summit on September 21-22 at Hotel Le Meridien, New Delhi. The summit aims to bring to fore global ideas and thought leadership that will inspire action at the local level to drive sustainability transition, and will cover tracks such as climate change, sustainable cities, value chains, ESG, circularity, and technology and innovation. Read more | Registration Link
A Few Good Reads
Read Shruti Jain’s excellent paper for the Observer Research Foundation on the G-20 Digital Economy Agenda for India.
Helen Gao describes the breakdown of the fundamental compact between the CCP and the Chinese people, as the Government increasingly becomes an agent of chaos.
This Ideas for India e-Symposium carries an excellent set of articles on how India can tackle its employment woes.
With Queen Elizabeth II’s passing, see Andrew Marr’s piece on what she stood for, and the challenges that new generations of the British monarchy shall face.
In the context of an RBI discussion paper broaching the topic of permitting a fee for the UPI, Deepak Shenoy argues for the UPI being kept free.
Tweets of the Week
Prime Minister Modi pays his respects to the late Queen Elizabeth II:
This thread by Tanvi Madan provides a succinct analysis of India’s considerations vis-a-vis the SCO:
A special plane to bring Namibian cheetahs home:
Key Notifications
The Government approves first PLI disbursement in large scale electronics manufacturing.
The International Financial Services Centres Authority launches the IFSCA (FinTech Incentive) Scheme for providing financial support to FinTech activities in the form of specific grant(s), issuing guidelines and an application form.
MoRTH issues a draft notification to promote ease of doing business and transparency in the sale and purchase of registered vehicles through dealers.