What to Read in The Hindu Editorial( Topic and Syllabus wise)

Editorial 1: Getting drunk, on homoeopathy

Context

Alcoholic tinctures marketed in India as homoeopathic remedies are a significant public health hazard.

 

Introduction

A recent judgment of the Supreme Court of India, in Bhagwati Medical Hall vs Central Drugs Standard Control Organization & Ors., has, once again, turned the spotlight on the impossible challenge faced by State governments in regulating a significant public health hazard — that posed by alcoholic tinctures marketed in India as homoeopathic remedies. Feeble attempts by the Union Government to tackle the problem have often been frustrated by ruthless lawfare conducted by the very formidable homoeopathic industry.

 

The regulatory maze

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  • A good starting point to explain this issue is the exceptionally complicated regulatory architecture under the Constitution for these alcoholic tinctures, which are liquid extracts of herbs dissolved in alcohol.
  • As per Schedule VII of the Constitution, only States can enact legislation in relation to public health and the taxation of alcohol.
  • The exception to this rule of taxation is if the alcohol is meant for medicinal purposes, in which case, Entry 84 of List I allowed the Union to decide the rate of taxation.

 

Pre-GST Era and Medicinal Alcohol Taxation

•  
  • In the pre-Goods and Services Tax (GST) era, alcohol for medicinal preparation was taxed at a tiny 4%under the now repealed Medicinal and Toilet Preparations (Excise Duties) Act, 1955.
  • Post the 101st Constitutional amendment which paved the way for the GST, the issue of taxation of alcohol meant for medicinal purposes is not clear since the exception created for alcohol meant for medicinal purposes is no longer mentioned in Entry 84.
  • Nevertheless, the Union has prescribed a 18% tax slab for alcohol meant for medicinal purposes, which is still significantly lower than State taxes on alcoholic beverages.

 

Drugs and Cosmetics Act and Concurrent List

•  
  • The third aspect of this regulatory architecture is that drugs are on the Concurrent list, which means that both the Union and States can enact law but since the Drugs and Cosmetics Act, 1940 is the Union lawlaying down quality standards for homoeopathic products, States need presidential approval for State-specific amendments.
  • Lack of Regulation and Affordability: This complex regulatory architecture has meant that manufacturers of these homoeopathic alcoholic tinctures have historically been immune from any form of quality regulation or taxation by States despite having a direct impact on public health, which again is the responsibility of States, per List II of Schedule VII.
  • Moreover, due to the difference in taxation rates for alcoholic tinctures sold as homoeopathic remedies and alcoholic beverages, alcoholic tinctures manufactured by the homoeopathic industry are more affordable than alcoholic beverages.
  • For a less discerning consumer of alcohol whose sole aim is to get intoxicated, these alcoholic tinctures are the perfect substitute for alcoholic beverages especially since many of these tinctures contain a very high volume of alcohol. The Drugs and Cosmetics Act permits alcoholic tinctures for homoeopathy to contain 12% alcohol by volume. For comparison, the most popular varieties of “strong beer” sold in India generally contain 7% alcohol.

 

State Governments' Concerns and Revenue Loss

•  
  • State governments have viewed the issue primarily through the lens of revenue loss caused by citizens who consume homoeopathic alcoholic tinctures as a substitute for alcoholic beverages taxed at a higher rate.
  • This loss of revenues was one of the reasons for the administrative actions taken by the Government of Uttar Pradesh, under Section 22 of the Drugs and Cosmetics Act, 1940 in the Bhagwati Medical Hall case, except, as correctly held by the Supreme Court, only the Union government can regulate the sale of homoeopathic tinctures.

 

Health concerns, industry lawfare

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  • The taxation story pales in comparison to the public health nightmare posed by these alcoholic tinctures.
  • Since States have no ability to regulate alcoholic tinctures, they are required to permit the sale of these products even if the State law prohibits the sale of alcoholic beverages, as in Gujarat and Bihar.
  • Both States have reported a string of deaths from the consumption of homoeopathic remedies containing spurious alcohol.
  • In effect, the public health objectives of these State prohibitions on alcohol have been frustrated by a Union law.
  • Technically, States can enact a State-specific amendment to the Drugs and Cosmetics Act, 1940, but this requires presidential assent.

 

Public Health Hazards of Alcoholic Tinctures

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  • The larger public health hazard of these alcoholic tinctures are unsuspecting citizens who consume these products under the assumption that they are going to be cured of their ailments, without being fully aware of the alcoholic content.
  • Consuming such products containing high levels of alcohol on a daily basis can cause serious illnesses such as alcoholic hepatitis in otherwise healthy individuals.
  • Indian doctors have been presenting an increasing amount of anecdotal data of patients showing symptoms consistent with those of alcoholics.

 

Rule 106B of the Drugs and Cosmetics Rules

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  • The Union government has been aware of the public health hazards posed by these alcoholic tinctures and introduced Rule 106B of the Drugs and Cosmetics Rules, 1945 in 1994 after a tragedy took many lives.
  • This rule, which appears to lack scientific basis, allows the homoeopathy industry to sell in the retail market alcoholic tinctures containing 12% alcohol in a bottle of maximum 30 ml.
  • Larger bottles of 100 ml can only be sold to hospitals.

 

Litigation Against Rule 106B

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  • As soon as Rule 106B came into force, the homoeopathy industry launched a campaign of unmitigated lawfare against the rule to sell tinctures with higher alcoholic content.
  • In the first round of litigation, the homoeopathy industry challenged the constitutional validity of the rule, arguing that it was an unreasonable restriction on its fundamental right to conduct trade and that the government lacked the power to make the rule.
  • The industry lost before five High Courts and eventually the Supreme Court, but the litigation took until 2014 to resolve.
  • Second Round of Litigation (2015): In 2015, the homoeopathy industry launched a second round of lawfare by filing 13 lawsuits before seven different High Courts.
  • The lawsuits claimed that Rule 106B was invalid because it was not placed before Parliament for 30 days, as required by Section 38 of the Drugs and Cosmetics Act.
  • At least four High Courts temporarily stayed the operation of the rule in 2015, restraining the government from enforcing it until the legal challenge was disposed.

 

Bureaucratic Delay and Further Litigation

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  • The simplest solution to these lawsuits was for the Union Government to lay Rule 106B before Parliament for 30 days, thereby knocking out the basis of the legal challenge.
  • However, India’s bureaucracy chose to pursue more litigation by filing a transfer petition in 2017, requesting that all 13 cases be transferred to the Supreme Court.
  • The Court agreed to transfer the cases in 2017, where the matter has since languished unheard.
  • Delays of this nature, especially when it comes to regulations meant to protect public health, are not unusual and end up costing the lives of citizens.

 

Conclusion: Key question

The more important question is whether the law should permit the use of any alcohol in not just homoeopathic products but also ayurvedic products, especially when other countries are contemplating compulsory cancer warnings on regular alcoholic beverages. It is one thing for these homoeopathic and ayurvedic products to not cure any ailments, as claimed by their manufacturers, but quite another for them to cause further harm to unsuspecting and poorly informed citizens.

Editorial 2: The Union Budget as a turning point for climate action

Context

The Budget should reflect the seriousness of the government in integrating climate competitiveness into India’s fiscal framework.

 

Introduction

All eyes will be on Union Finance Minister Nirmala Sitharaman when she takes centre stage on February 1 to present the Union Budget. As the nation grapples with increasingly frequent extreme weather events and mounting pressure to meet its climate commitments, the FY26 Budget carries the weight of both urgency and opportunity. With just five years left to achieve India’s first interim Net-Zero target, the Budget must take decisive steps to protect those on the frontlines of climate change.

• Previous Budgets have demonstrated the government’s commitment to climate action. Notably through initiatives such as
  1. the PM Surya Ghar Muft Bijlee Yojana,
  2.  support for electric vehicle charging infrastructure, viability gap funding for offshore wind energy, and
  3. increased allocations for the National Green Hydrogen Mission.
• Yet, with a total renewable energy installed capacity of 203.18 GW, far short of the 2030 target of 500 GW, accelerated investment and policy support are imperative.

 

There is much work to be done

• Strengthening India's climate response: The Budget must prioritise key policy measures to strengthen India’s climate response and accelerate progress on both adaptation and mitigation fronts.
• Accelerating India's Green Energy Transition
  1. PM Surya Ghar Muft Bijli Yojana Needs a Comprehensive Review
     • While the scheme has seen around 1.45 crore registrations, the completion rate of only 6.34 lakh installations (4.37%) indicates the presence of significant implementation gaps.
• Fiscal Approach in the FY26 Budget
  1. Prioritise the Renewable Energy Service Company (RESCO) Model
     • Fiscal allocations should prioritise the RESCO model, effectively transforming the prohibitive upfront costs into manageable operating expenses for lower-income households through innovative financial instruments and credit guarantees.
  2. Expand the Scope of Production-Linked Incentives (PLI): The Budget must expand the scope of production-linked incentives (PLI) across the solar module supply chain, addressing the critical supply-demand mismatch, where domestic manufacturing fulfils only 40% of current requirements.
     • This expansion would boost manufacturing capacity and create economies of scale, potentially reducing costs that are 65% higher for domestically manufactured panels than those imported to the country.
• Leveraging India's railway network for Renewable Energy
  1. Untapped Potential of Railway Land and TracksL India’s vast railway network offers untapped potential for renewable energy generation. Estimates suggest that the Railways’ extensive land banks and track corridors could host up to 5 GW of solar and wind installations.
  2. Encourage Public-Private Partnership ModelsL The Budget should encourage innovative public-private partnership models to unlock this opportunity.

 

EU mechanism and India

•  
  • The European Union’s Carbon Border Adjustment Mechanism (CBAM) will take effect on January 1, 2026.
  • India’s total exports of CBAM products to the EU amount to $8.22 billion annually and will likely face carbon levies ranging from around 20% to 50%.
  • This presents an existential challenge for India’s Micro, Small and Medium Enterprises (MSME), which contribute 30% of GDP and 45% of exports.
  • The Budget can establish a dedicated ‘Climate Action Fund’, modelled after successful initiatives such as Japan’s Green Transformation (GX) Fund for industrial decarbonisation, particularly across the most vulnerable export sectors.
  • The Climate Action Fund can also support capacity-building initiatives for MSMEs to ensure proper compliance and reporting under CBAM.

 

Accelerating India’s Transition to a Circular Economy

•  
  • A recent study by the Council on Energy, Environment and Water estimates that adopting a circular economy can yield an annual profit of ₹40 lakh crore ($624 billion) for India by 2050, while reducing greenhouse gas emissions by about 44%.
  • The Budget should introduce a weighted deduction of 150% on investments in recycling infrastructureand refurbishment technologies, complemented by accelerated depreciation benefits for circular economy assets.
  • This will encourage businesses to invest in recycling and refurbishment technologies.
  • The Budget should also establish a sovereign green bond framework specifically for financing circular economy infrastructure.

 

European Union’s Carbon Border Adjustment Mechanism (CBAM)

•  
  • The European Union’s Carbon Border Adjustment Mechanism (CBAM) will take effect on January 1, 2026.
  • India’s total exports of CBAM products to the EU amount to $8.22 billion annually and will likely face carbon levies ranging from around 20% to 50%.
  • This presents an existential challenge for India’s Micro, Small and Medium Enterprises (MSME), which contribute 30% of GDP and 45% of exports.
  • The Budget can establish a dedicated ‘Climate Action Fund’, modelled after successful initiatives such as Japan’s Green Transformation (GX) Fund for industrial decarbonisation, particularly across the most vulnerable export sectors.
  • The Climate Action Fund can also support capacity-building initiatives for MSMEs to ensure proper compliance and reporting under CBAM.

 

Accelerating India’s Transition to a Circular Economy

•  
  • A recent study by the Council on Energy, Environment and Water estimates that adopting a circular economy can yield an annual profit of ₹40 lakh crore ($624 billion) for India by 2050, while reducing greenhouse gas emissions by about 44%.
  • The Budget should introduce a weighted deduction of 150% on investments in recycling infrastructureand refurbishment technologies, complemented by accelerated depreciation benefits for circular economy assets.
  • This will encourage businesses to invest in recycling and refurbishment technologies.
  • The Budget should also establish a sovereign green bond framework specifically for financing circular economy infrastructure.

 

On insurance products, green finance

• There is a strong need to strengthen climate resilience.
• India’s insurance penetration remains worryingly low. According to the Insurance Regulatory and Development Authority of India (IRDAI) 2023-24 Annual Report, it has declined from 4% in FY23 to 3.7% in FY24.
• To address this challenge, the Budget could:
  1. Offer tax deductions to insurance companies on income from climate-linked policies.
  2. Advocate for lower Goods and Services Tax (GST) rates on premiums for insurance products specifically designed for climate resilience and disaster protection.

 

Standardising Green Finance Definitions

• Some estimates indicate that standardising green finance definitions could help build investor confidence and help India secure part of the ₹162.5 trillion ($2.5 trillion) needed to achieve the Nationally Determined Contributions (NDCs) by 2030.
• The Budget should allocate funds to build the institutional and technical infrastructure required to implement the climate finance taxonomy effectively, including for:
  1. Market readiness programmes
  2. Verification systems
  3. Capacity building of financial institutions
• The Budget can further catalyse this transition by:
  1. Introducing differential tax treatment for taxonomy-aligned investments.
  2. Committing to classify government expenditure according to green criteria.

 

Conclusion

Climate-linked economic policies are no longer peripheral but central to maintaining competitiveness in international trade and investment flows. With rising global demand for low-carbon goods and the increasing alignment of capital markets with sustainability metrics, India must act decisively and integrate climate competitiveness into its fiscal framework. The Budget will indeed signal the seriousness of the government’s intent in this regard.