Editorial #1 Getting drunk, on homoeopathy
Regulatory and Public Health Challenges of Alcoholic Tinctures in Homoeopathy
Introduction
A recent Supreme Court judgment in Bhagwati Medical Hall vs. Central Drugs Standard Control Organization & Ors. has once again highlighted the significant public health and regulatory challenges posed by alcoholic tinctures marketed as homoeopathic remedies in India. Despite attempts by the Union Government to regulate this issue, the powerful homoeopathic industry has persistently resisted through extensive litigation. The regulatory complexities, public health implications, and taxation concerns necessitate a deeper examination of this issue.
Regulatory Framework and Challenges
Constitutional Provisions
The regulation of alcoholic tinctures falls within a convoluted legal framework under the Constitution of India. As per Schedule VII, only State governments have the power to legislate on public health and the taxation of alcohol (Entry 6 and Entry 51 of List II). However, an exception exists in Entry 84 of List I, allowing the Union Government to regulate taxation on alcohol used for medicinal purposes. This dual jurisdiction creates regulatory ambiguity.
Pre-GST and Post-GST Taxation
Before the introduction of the Goods and Services Tax (GST), the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 taxed medicinal alcohol at a mere 4%. Following the 101st Constitutional Amendment, the taxation of medicinal alcohol became unclear. Nevertheless, the Union Government currently imposes an 18% GST on alcohol used for medicinal purposes, which remains significantly lower than State taxes on regular alcoholic beverages.
Drugs and Cosmetics Act, 1940
Under the Drugs and Cosmetics Act, 1940, homoeopathic medicines fall under the jurisdiction of the Union Government, restricting State governments from enacting independent quality control measures without presidential assent. This limitation has historically allowed manufacturers of alcoholic tinctures to evade stringent State regulations.
Affordability and Public Health Implications
Economic Factors and Misuse
Due to the lower taxation on homoeopathic tinctures, these products are significantly cheaper than conventional alcoholic beverages. Many homoeopathic tinctures contain up to 12% alcohol by volume, whereas most commercially available strong beers in India contain around 7% alcohol. Consequently, individuals seeking intoxication often consume these tinctures as substitutes for alcoholic beverages, leading to unintended health and social consequences.
State Governments’ Concerns
State governments primarily view this issue through the lens of revenue loss. Citizens consuming homoeopathic alcoholic tinctures instead of regular alcoholic beverages deprive States of tax revenue, exacerbating fiscal constraints. This concern prompted Uttar Pradesh’s administrative action under Section 22 of the Drugs and Cosmetics Act, 1940, but the Supreme Court ruled that only the Union Government has the authority to regulate such sales.
Health Hazards and Regulatory Shortcomings
Threat to Public Health
Beyond revenue concerns, the public health ramifications of unchecked alcoholic tinctures are severe. In alcohol-prohibited States such as Gujarat and Bihar, reports indicate deaths linked to the consumption of spurious homoeopathic remedies containing unregulated alcohol. Since States lack the power to regulate these products independently, their public health policies are undermined by Union laws permitting their sale.
Lack of Consumer Awareness
A significant risk stems from consumers using these alcoholic tinctures without full awareness of their alcohol content. Regular consumption can lead to alcoholic hepatitis and other health disorders. Indian doctors have reported increasing cases where patients exhibit symptoms associated with alcohol dependency despite not consuming conventional alcoholic beverages.
Legislative and Judicial Responses
Rule 106B of the Drugs and Cosmetics Rules, 1945
In response to a past tragedy, the Union Government introduced Rule 106B of the Drugs and Cosmetics Rules, 1945, in 1994. This rule restricts the retail sale of homoeopathic tinctures with 12% alcohol content to bottles of 30 ml, while allowing 100 ml bottles only for hospital use. However, experts argue that the rule lacks a scientific basis.
Litigation and Industry Resistance
The homoeopathy industry launched multiple legal challenges against Rule 106B, prolonging regulatory enforcement:
- First Round (1994-2014): The industry contested the rule’s constitutional validity, claiming it infringed on their fundamental right to trade. The Supreme Court upheld the rule, but litigation persisted for two decades.
- Second Round (2015-Present): In 2015, the industry filed 13 lawsuits in seven High Courts, arguing that Rule 106B was invalid since it was not placed before Parliament for 30 days as mandated by Section 38 of the Drugs and Cosmetics Act, 1940. Several High Courts temporarily stayed the rule’s implementation.
Bureaucratic Delays and Unresolved Issues
Despite having the option to present Rule 106B before Parliament to nullify legal challenges, the Union Government opted for further litigation by filing a transfer petition in 2017 to consolidate the cases before the Supreme Court. However, the matter remains pending, delaying critical public health safeguards.
Conclusion: The Need for Policy Reform
The ongoing issue of alcoholic tinctures highlights critical flaws in India’s regulatory framework. Key policy questions include:
- Should medicinal alcohol, including homoeopathic and ayurvedic preparations, be subject to stricter regulation?
- Should India follow international best practices and mandate health warnings on all alcohol-containing products?
While the medicinal efficacy of homoeopathic and ayurvedic products remains debatable, their potential harm to uninformed consumers necessitates stronger regulatory interventions. The Union and State governments must collaborate to formulate clear, enforceable policies that balance traditional medicine with modern public health priorities.
Editorial #2 The Union Budget as a turning point for climate action
The Union Budget as a Turning Point for Climate Action
Context:
The upcoming Union Budget must reflect the government’s commitment to integrating climate resilience and sustainability into India’s fiscal framework. Given the increasing frequency of extreme weather events and the pressing need to meet climate commitments, the Budget presents an opportunity to drive a decisive shift toward a greener economy.
Introduction:
On February 1, Union Finance Minister Nirmala Sitharaman will present the Union Budget, a crucial fiscal document that must address both economic growth and climate action. With only five years remaining to achieve India’s first interim Net-Zero target, the Budget must prioritize measures to protect vulnerable communities and accelerate the green transition. Previous Budgets have introduced initiatives such as the PM Surya Ghar Muft Bijlee Yojana, incentives for electric vehicle infrastructure, viability gap funding for offshore wind energy, and allocations for the National Green Hydrogen Mission. However, with a renewable energy installed capacity of 203.18 GW—far below the 2030 target of 500 GW—significant policy and financial interventions are required.
Strengthening India’s Climate Response
1. Accelerating the Green Energy Transition:
PM Surya Ghar Muft Bijlee Yojana: Addressing Implementation Gaps Despite 1.45 crore registrations, only 6.34 lakh installations (4.37%) have been completed, indicating major implementation challenges. A comprehensive review is essential to enhance execution efficiency.
Fiscal Reforms in Renewable Energy Sector
- Expanding the Renewable Energy Service Company (RESCO) Model: Allocations should prioritize the RESCO model to reduce upfront costs for lower-income households through innovative financial instruments and credit guarantees.
- Enhancing Production-Linked Incentives (PLI): Expanding PLIs across the solar module supply chain is critical to address the supply-demand mismatch, as domestic manufacturing currently meets only 40% of requirements. Strengthening domestic capacity can also reduce costs, which remain 65% higher for domestically manufactured solar panels compared to imports.
2. Leveraging Railway Infrastructure for Renewable Energy:
India’s railway network has significant untapped potential for renewable energy generation. Estimates suggest that railway land and track corridors could host up to 5 GW of solar and wind energy installations. The Budget should facilitate public-private partnerships (PPP) to capitalize on this opportunity and integrate railways into the green energy framework.
Addressing Global Climate Policy Challenges
1. Mitigating the Impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM):
The EU’s CBAM, set to be enforced from January 1, 2026, will impose carbon levies of 20%-50% on Indian exports valued at $8.22 billion. This poses a substantial challenge to India’s Micro, Small, and Medium Enterprises (MSMEs), which contribute 30% to GDP and 45% to exports.
Key Budgetary Interventions:
- Establishment of a ‘Climate Action Fund’—Modeled after Japan’s Green Transformation (GX) Fund, this would support industrial decarbonization in vulnerable export sectors.
- Capacity Building for MSMEs—Financial support should be extended to enable MSMEs to comply with CBAM regulations, ensuring continued access to European markets.
Promoting a Circular Economy:
A study by the Council on Energy, Environment, and Water projects that a transition to a circular economy could generate an annual profit of ₹240 lakh crore ($624 billion) by 2050 while reducing greenhouse gas emissions by 44%.
Policy Measures:
- Weighted Deductions on Recycling Investments: Introducing a 150% weighted deduction for investments in recycling and refurbishment technologies, complemented by accelerated depreciation benefits, would incentivize businesses to adopt circular economy principles.
- Sovereign Green Bonds: Establishing a sovereign green bond framework specifically for financing circular economy infrastructure would drive capital infusion into sustainable projects.
Strengthening Green Finance and Climate Resilience:
1. Expanding Climate-Linked Insurance:
India’s insurance penetration remains low, declining from 4% in FY23 to 3.7% in FY24 (IRDAI Annual Report). To enhance climate resilience:
- Tax deductions should be offered on income from climate-linked insurance policies.
- Goods and Services Tax (GST) rates on premiums for climate-resilient insurance products should be lowered to encourage adoption.
2. Standardizing Green Finance Definitions:
Establishing a standardized green finance taxonomy could enhance investor confidence and mobilize funds toward achieving India’s Nationally Determined Contributions (NDCs), requiring an estimated ₹162.5 trillion ($2.5 trillion) by 2030.
Budgetary Interventions:
- Allocating resources for institutional and technical infrastructure to implement green finance standards.
- Introducing differential tax treatment for investments aligned with green finance taxonomy.
- Committing to classifying government expenditures based on sustainability criteria.
Conclusion:
Climate-centric economic policies are no longer optional but essential for maintaining India’s global competitiveness in trade and investment. With international markets increasingly prioritizing sustainability metrics, India must integrate climate resilience into its fiscal strategy. The Union Budget is a crucial indicator of the government’s commitment to this transition and must adopt a forward-looking approach to secure a sustainable future.
