Content

1. Countering the tariff
2. 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.