World Press Freedom Index (2024)

Why in news?

• Recently, the Reporters Without Borders (RSF) released its latest edition of World Press Freedom Index.

About the Press Freedom

• RSF definespress freedom as ‘the ability of journalists as individuals and collectives to select, produce, and disseminate news in the public interest independent of political, economic, legal, and social interference and in the absence of threats to their physical and mental safety’.

World Press Freedom Index

• It is published annually by Reporters Without Borders (RSF)that ranks 180 countries and regions according to the level of freedom available to journalists.
  • It has been published every year since 2002.
• It provides a snapshot of the media freedom situation based on an evaluation of pluralism, independence of the media, quality of legislative framework, and safety of journalists in each country and region.
• It is based on the principle of emulationbetween states and has grown in influence over governments due to its well-known status.
• The press freedom questionnairecovers five categories — political context, legal framework, economic context, socio-cultural context and security.

Key Findings of the World Press Freedom Index (2024)

• Threat to Press Freedom: Press freedom around the world is being threatened by the very people who should be its guarantors – political authorities.
• Decline in Political Indicator: Of the five indicatorsused to compile the ranking, it is the political indicator that has fallen most, registering a global average fall of 7.6 points.
  • It indicates a worrying trend of political pressures impacting journalism.
• Failure of Governments to Protect Journalism: A growing number of governments and political authorities are not fulfilling their role as guarantors of the best possible environment for journalism and for the public’s right to reliable, independent, and diverse news and information.
• Increase in State Pressure and Hostile Actions:There is an increase in pressure from the state or other political actors that undermine the role of journalists, or even instrumentalise the media through campaigns of harassment or disinformation.
• Lack of International Will:At the international level, there is a clear lack of political will on the part of the international community to enforce the principles of protection of journalists, especially UN Security Council Resolution 2222 (on protection of journalists and associated media personnel in armed conflict).

Global Scenario

• The World Press Freedom Index (2024) revealed a two-fold increase in ‘polarisation’amplified by information chaos.
  • It refers to media polarisation fuelling divisions within countries, as well as polarisation between countries at the international level.
• Norway, Denmark, and Swedenoccupied the top positions in press freedom, while Afghanistan, Syria and Eritrea constituted the bottom three.

India’s Standing in the Index

• India’s ranking in the World Press Freedom Index has seen a decline over the years.
• In 2022, India was ranked 150th out of 180 countries.
• However, in 2023, India’s ranking slipped further to 161st.
• In 2024,India’s score in the World Press Freedom Index fell from 36.62 to 31.28, but its rank improved from 161 in 2023 to 159 in 2024.
  • It was due to other countries slipping in their rankings.

Conclusion

• The freedom of the press is a fundamental right enshrined in the Indian Constitution. It plays a crucial role in the functioning of a democratic society. However, with this freedom comes responsibility.
• The press must ensure that the news they present is accurate and serves the interest of the people.
  • The balance between freedom and responsibility is key to maintaining a healthy democracy.
• The World Press Freedom Index highlights the challenges faced by journalists and the media, and underscores the importance of a free press in maintaining a healthy democracy.
  • Despite the concerning decline in rankings for some countries, the index continues to be a beacon of hope, advocating for the rights of journalists and the media worldwide.

E-commerce Market in India

Why in news?

• Recently, Invest India found that India, with its rapidly growing digital economy and expanding internet user base, is poised to become a global ecommerce powerhouse by 2030.

About the e-commerce market in India

• India, with its rapidly growing digital economy and expanding internet user base, is on the brink of a massive transformation in its retail sector.
• At present, the e-commerce market in India is valued at $70 billion, which accounts for around 7% of the nation’s overall retail market.
• It is predicted to grow to a staggering $325 billion, and the country’s digital economy is expected to reach $800 billion.
• The number of online shoppers in India is projected to increase with a compound annual growth rate (CAGR) of 22% to 88 million in rural India and 15% to 263 million across urban India between 2019 and 2026.
• It is expected to lead to India surpassing the US as the second largest online shopper base in one to two years.

Attractive Opportunities

• India’s e-commerce platforms achieved a significant milestone, hitting a GMV of US$ 60 billion in fiscal year 2023, marking a 22% increase from the previous year.
• The e-retail market in India is projected to surpass US$ 160 billion by 2028.

Rise of the Digital Economy

• India currently boasts the second-largest internet user basein the world, with over 900 million users.
• By 2030, it is expected to rise to the third position in the online retail industry.
• This growth is driven by increasing internet penetration, with around 87% of Indian households expected to have internet connections by 2025.
• The duration of internet access through mobiles has seen a 21% risecompared to 2019.

Role of Mass Consumers

• Indian consumers with annual incomes ranging from INR 2.5 lakh to INR 10 lakh will be responsible for driving nearly half of the growth in India’s $300 billion e-commerce market by 2030.
• These ‘mass’ consumers are projected to contribute around $135 billion (45%) to the Gross Merchandise Value (GMV) of the e-commerce market by 2030.
• Invest India predicted a significant increase in the number of households engaging in e-commerce transactions, from 60-70 million in 2022 to 120-130 million by 2030.
  • Notably, mass consumers are anticipated to drive over 80% of this growth.

Challenges associated with e-commerce market in India

• Digital Infrastructure and Internet Penetration:The robustness of digital infrastructure is crucial for smooth and seamless online transactions.
  • Any disruption in the digital infrastructure can lead to transaction failures, affecting the trust and confidence of consumers in e-commerce.
  • While internet penetrationis increasing in India, there is still a significant portion of the population, particularly in rural areas, that does not have access to the internet.
• Platform Neutrality and Fairness:There are concerns about lack of platform neutrality, unfair platform-to-business contract terms, exclusive contracts between online marketplace platforms and sellers/service providers, platform price parity restrictions, and deep discounts.
• Taxation:The provisions on carry-forward of losses need to be more accommodative of business restructuring, and withholding tax norms need more clarity.
• Inclusion of Small and Medium Enterprises (SMEs):SMEs often find it challenging to participate in the e-commerce ecosystem due to the need for separate infrastructures for different platforms, distinct terms and conditions of each platform, and the costs associated with these.
• Regulatory Challenges:E-commerce businesses in India also face regulatory challenges including issues related to data protection, consumer protection, taxation, and other legal and regulatory compliances.

Related Initiatives to Overcome Challenges

• Policy Support: 100% FDI is allowed in B2B e-commerce.
  • 100% FDI under the automatic route is permitted in the marketplace model of E-commerce.
• Government e-Marketplace (GeM):It has facilitated government procurement, crossing an impressive INR 4 Lakh Cr in GMV.
• Open Network for Digital Commerce (ONDC): It aims to provide equal opportunities to MSMEs to thrive in digital commerce and democratise e-commerce.
• Other major initiatives include Digital India(to transform India into a digitally empowered society and knowledge economy), Skill India (to train people in different skills), Startup India (to build a strong ecosystem for nurturing innovation and startups in the country), Make in India (to encourage companies to manufacture their products in India), Innovation Fund (aimed at encouraging entrepreneurship and innovation in the country), and BharatNet (to grow rural broadband penetration)

Conclusion

• The rapid growth of India’s digital economy, coupled with the increasing internet penetration and the rise of the mass consumer segment, is set to propel India to become the world’s third-largest ecommerce market by 2030.
• It presents a tremendous opportunity for businesses and investors alike, making India one of the most attractive markets for ecommerce in the world.