Content
- Countering the tariff
- Addiction, Not Play
Countering the tariff
Context
- The US imposed a “secondary tariff” of 25% on Indian products (from Aug 25).
- This was in retaliation to India’s earlier tariff increases (reciprocal measure).
- Tariff exclusions: pharmaceuticals, semiconductors, mobile phones, lumber, some chemicals.
- Broader backdrop: India-US negotiations to elevate bilateral trade to $500 billion by 2030.
Relevance : GS 2(International Relations) , GS 3(Indian Economy)
Practice Question : Discuss India’s options in dealing with rising US protectionism while safeguarding its export sectors and strategic interests.(150 Words)
Trigger Event
- Trump administration’s aggressive protectionist stance.
- Pressures on India to:
- Reduce tariff barriers.
- Open markets wider to US products.
- Address bilateral trade deficit (India’s surplus, US deficit).
India’s Trade Landscape
- India had imposed retaliatory tariffs on bourbon, motorcycles, apples, almonds, etc. after US withdrew GSP (Generalised System of Preferences) benefits.
- US objections:
- High import duties, non-tariff barriers.
- Price controls in pharma & medical devices.
- Agricultural restrictions (GMO crops not allowed).
US Expectations from India
- Buy more energy (oil, LNG, coal) from the US.
- Reduce tariffs on agriculture, medical devices, ICT products.
- Bilateral FTA (Free Trade Agreement) discussions.
- Align more closely with US on trade policy rather than China/Russia.
Why India is Vulnerable
- 55% of India’s exports to the US are high-skill manufactured goods:
- Pharmaceuticals
- Engineering goods
- Textiles
- Auto components
- Any tariff hikes hurt India’s high-value sectors.
- India’s major export competitors (Vietnam, Bangladesh, ASEAN countries) enjoy lower tariffs with US.
US Focus Areas
- Shift away from agriculture/GMOs.
- More emphasis on energy exports (oil, gas, coal).
- India pressured to reduce Russian energy imports and switch to US suppliers.
- US wants currency/trade alignment, not rupee-based bilateral trade with others.
India’s Counter-Options
- Diversify exports & markets:
- ASEAN, EU, Japan, Africa, Latin America.
- Reduce overdependence on US market.
- Leverage WTO:
- Appeal against unilateral tariffs as violation of WTO commitments.
- Highlight US hypocrisy (tariffs without legal sanction).
- Strategic balancing:
- Negotiate concessions without over-dependence.
- Avoid being forced into binary US vs China/Russia choices.
Risks for US
- Tariffs could:
- Increase input costs for US industries (pharma, auto, textiles).
- Lead to supply chain disruptions.
- Push India closer to China or EU for trade alignment.
- May result in job losses in US and reduce competitiveness.
Structural Issues
- US insists on WTO-plus trade terms (outside WTO framework).
- Rising trend of bilateral & regional FTAs (instead of multilateral rules).
- WTO dispute settlement system itself weakened since US blocked new judges in Appellate Body.
Key Takeaways
- US tariffs on India violate WTO norms and are unilateral.
- India’s challenge:
- Protect its export sectors.
- Avoid excessive reliance on US.
- Strategically diversify export basket and destinations.
- Larger trend:
- US protectionism rising under Trump.
- Global trade moving away from WTO-led multilateralism.
- India must strengthen competitiveness and negotiate smartly in future trade pacts.
Addiction, Not Play
Context
- The article debates ban on online real-money gaming.
- Trigger: Concerns around economic, legal, psychological, and regulatory implications.
- Key argument: Ban is not merely about regulation but about mental health protection of youth, especially adolescents.
Relevance : GS 2(Social Issues, Governance)
Practice Question : “Online real-money gaming is not merely an issue of regulation but a growing public health challenge.” Discuss in the context of youth mental health in India.(250 Words)
Nature of Online Real-Money Gaming
- Involves:
- Psychological principles (operant conditioning, reward-based mechanisms).
- Immediate gratification via points, rewards, payments.
- When introduced early to children/adolescents → leads to dependency, addiction, and harmful behavioral patterns.
- Often transitions from leisure activity → compulsive addiction.
Why it’s a Serious Issue
- Parents & educators already see impact:
- Decline in academic performance.
- Mental health breakdowns in adolescents.
- Adolescents:
- More vulnerable to addiction.
- Lack maturity to control impulses.
- Leads to financial ruin: draining family bank accounts, debts, impulsive spending.
Psychological Mechanisms
- Games use behavioral psychology tools (reward loops, variable reinforcement).
- Creates a compulsion loop → brain seeks repeated small rewards → risk of dependency.
- Similar to gambling addiction (lottery, slot machines).
- Results in:
- Losing track of time.
- Depression, anxiety.
- Isolation and poor social interaction.
- In extreme cases → suicidal ideation/self-harm.
Social Consequences
- Rising household financial distress (bankruptcy, debts).
- Disruption of family relationships.
- Strain on parent-child trust.
- Broader public health concern: impacts millions of families, increasing cases of psychological crisis.
Why Ban Is Justified
- Reframing online gaming as:
- Mental health issue, not just legal/financial.
- Addiction disorder requiring state intervention.
- Ban helps:
- Provide immediate relief to families facing crisis.
- Prevent normalisation of addictive behaviour.
- Sends a strong public policy signal on prioritising youth well-being.
Counter-View
- Industry often argues:
- Gaming generates revenue, jobs, economic activity.
- Banning may push users to illegal platforms.
- However, article stresses public health > profits.
Long-Term Solutions Beyond Ban
- Ban is necessary but not sufficient.
- Requires:
- Thoughtful regulation.
- Counselling services for affected adolescents.
- Awareness programs in schools & communities.
- Recognising gaming disorder as public health challenge (like tobacco/alcohol).
Global Parallels
- Countries like China, South Korea, EU states have already moved towards strict regulation of gaming hours and spending limits for youth.
- India needs a similar framework, considering its massive young population.
Key Takeaways
- Online real-money gaming = addiction risk → should be treated as mental health epidemic.
- Adolescents most vulnerable → early intervention critical.
- Ban = necessary first step to prevent long-term harm.
- Must combine ban + regulation + awareness + counselling to create a safe digital ecosystem.
