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GS Paper: GS2-18.Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

  • India, Bangladesh, Pakistan: What east can teach west

    Context

    The bilateral relationship between India and Bangladesh dominated by endless contentions at the turn of the millennium has transformed into a very productive partnership.

    Contrast between India’s relations with Bangladesh and Pakistan

    • The persistence of cross-border terrorism, the conflict over Kashmir, the militarisation of the frontier, little connectivity, poor trade relations and no formal inter-governmental negotiations paint a bleak picture of the India-Pak border.
    • The inability of successive generations of Indian and Pakistani leaders to bring a closure to Partition in the west makes the talk of a “100-year war” credible.
    • The only trend that can counter this pessimism is the good news from India’s eastern frontier with Bangladesh.
    • In contrast to the talk of a 100-year war between India and Pakistan, India and Bangladesh have proclaimed a “sonali adhyay” or “golden chapter” in bilateral relations.
    • While the unresolved land and maritime territorial disputes constitute one of the main problems in India’s relations with Pakistan, their resolution with Bangladesh transformed the context of bilateral relations.
    • For both Delhi and Dhaka, the reinvention of the bilateral relationship has been one of the most significant successes of their recent foreign policies

    Rebuilding the Bangladesh-India ties after 2010

    • The work on rebuilding ties began in earnest in 2010, when Sheikh Hasina came to India after taking charge of Bangladesh as prime minister for the second time in 2009.
    • Addressing bilateral problems: Both sides embarked on an extraordinary effort to address most bilateral problems—including border settlement, river water sharing, cross-border terrorism, market access to Bangladeshi goods, and connectivity.
    • The land boundary deal got parliamentary approval in 2015 in India.
    • India also accepted the award of the Permanent Court of Arbitration in The Hague on settling the maritime boundary dispute between Delhi and Dhaka. 
    • Security cooperation: Cooperation on cross-border terrorism that began a couple of years earlier helped build much-needed political trust between the two national security establishments.
    • Connectivity: On the connectivity front, we have seen a substantive movement towards reopening the border that was largely shut down after the 1965 war between India and Pakistan.
    • Trans-boundary bus services, reopening of railway lines, and the revitalisation of waterways are restoring connectivity in the eastern subcontinent that was severed.
    • Bilateral trade: Bilateral trade volumes have grown by leaps and bounds in recent years touching nearly $16 billion last year.
    • Bangladesh is one of India’s top export markets.
    •  India and Bangladesh have also developed inter-connected power grids facilitating Dhaka’s purchase of power from India.
    • It currently buys about 1200 MW of power from India and an additional 1500 MW is in the pipeline.
    • Development of the northeastern India: Today the northeastern states have realised the immense benefits of deeper economic engagement with Bangladesh — none of them more important than ending the geographic isolation of the region.
    • Assam today is at the forefront of imagining a bolder agenda for deepening economic ties with Bangladesh.
    • Peace and prosperity in the region: For India, the expansive partnership with Bangladesh has significantly eased its security challenges and laid the basis for peace and prosperity in the eastern subcontinent.
    • For Bangladesh, discarding the temptation to balance India and embark on a cooperative strategy has allowed Dhaka to focus on its economic growth and lift itself in the regional and global hierarchy.

    Way forward

    • Consolidating the gains: Rather than regret the unfortunate dynamic on the western frontier and bemoan Pakistan’s reluctance to let the SAARC become a vehicle for regional cooperation, Delhi should focus on consolidating the “golden moment” in the east.
    • The issues that need resolution are protecting the rights of minorities, sharing the waters of more than 50 rivers, promoting cross-border investments, managing one of the longest borders in the world, facilitating trade and preventing illegal migration, countering forces of religious extremism, promoting maritime security in the Bay of Bengal, expanding defence cooperation, and mitigating climate change in the shared regional environment to name a few.
    • Solving problems and tending to the relationship must necessarily be a continuous effort rather than episodic.

    Conclusion

    Nor can Delhi and Dhaka take each other for granted and let domestic politics overwhelm the logic of bilateral cooperation. The 75th anniversary of independence offers Delhi and Dhaka a special opportunity to elevate the ambition for their bilateral partnership.

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  • India-UK Relations

    Context

    • The year 2022 is significant for both India and the UK as our country commemorates the 75th anniversary of its Independence and the two celebrate 75 years of bilateral ties.
    • India-UK relations were elevated to a Comprehensive Strategic Partnership in 2021, based on a shared commitment towards democracy, fundamental freedoms and multilateralism.

    Background of the India-UK ties

    • Partnership: The historical legacy has its own imprint on the relationship. But what is truly remarkable is the broad range of partnerships that have evolved between the two countries, transcending trade, investment and strategic affairs.
    • Close ties: This broader partnership between the world’s fifth and sixth largest economies has its foundations on three critical aspects: education, common law system and the increasingly influential role and impact of the Indian diaspora in the UK.
    • Shared values: The India-UK partnership is based on shared values, respect for the rule of law and common law, and institutional integrity protected by democratic institutions in the both the countries.

    What progress has been made in the India-UK relationship?

    1.Economic: During 2019-20, trade between the two countries stood at US$ 15.45 billion with the balance in favor of India. Between April 2021-February 2022, Indian exports to the UK stood at US$ 9.4 billion (2.5% of India’s exports). The imports in the corresponding period were US$ 6.59 billion (1.2% of India’s imports). There is a scope for significant improvement. Both countries expect that the bilateral trade can reach US$ 100 billion by 2030.

    2.Defense and Security: India and the UK signed the Defence and International Security Partnership (DISP) in November 2015. It provides a strategic roadmap and direction to the evolving India-UK Defence Relations. At present some 70 companies in the UK supply goods for aircraft and related equipment besides supporting platforms like the Jaguar, Mirage and Kiran aircraft.

    3.Indian Diaspora: Around 1.5 million people of Indian origin live in Britain. Indian diaspora are making significant contributions to the British Society. This includes 15 Members of Parliament, three members in Cabinet, and two in high office as Finance and Home Ministers.

    4.Education: The UK-India Education and Research Initiative (UKIERI) was launched in 2005. A new ‘UKEIRI Mobility Programme: Study in India’ was also launched in 2019. Under this Britain’s universities collaborate with Indian partners and send UK students to India.

    5.Health: The successful partnership between Oxford University, AstraZeneca and SII on COVID-19 vaccine demonstrated the potential of Indian and UK expertise working together to solve international challenges. The two sides are also working on pandemic preparedness, Antimicrobial Resistance (AMR), digital health, Ayurveda and alternative medicines, as well as health worker mobility.

    What is the significance of India-UK Relationship?

    1.Regional and global issues of mutual interest: A healthy relationship between the two is imperative for enhancing cooperation in the Indo-Pacific, Afghanistan, UNSC, G20 and Commonwealth. For instance, India welcomed the UK’s accession in the Indo-Pacific Ocean’s Initiative under the Maritime Security pillar.

    2.Tackling Climate Change: The cooperation between them can be helpful to achieve the goals of the Paris Agreement and in implementing the Glasgow Climate Pact. For instance, the countries have agreed to work for early operationalisation of the Global Green Grids-One Sun One World One Grid Initiative (OSOWOG) under ISA. They are also working on the IRIS platform under CDRI which was jointly launched by India and UK at COP26.

    3.Supporting 3rd World Countries: Through the Global Innovation Partnership, India and UK have agreed to co-finance up to £ 75 million to support the transfer and scale up of climate smart sustainable innovations to third countries. The novel GIP Fund created under this Partnership will also aim to raise additional £ 100 million from the market to support Indian innovations.

    3.Strategic Considerations: India can engage with the UK to counter China’s rise in the Indian Ocean Region. The UK on other hand can use India as an alternative destination to China and its companies can invest in India as part of China plus one strategy. It is the business strategy to avoid investing only in China and diversify business into other countries.

    Challenges in India-UK relations

    1.BREXIT

    • Impact on Diaspora– Many members of Indian Diaspora in Britain had voted against BREXIT because it is likely that Indian IT Professional in Britain will face tough competition when UK will open up its border for more skilled migration.
    • Impact on Indian Companies in UK– A hard Brexit would inevitably impact more than 800 Indian companies in UK in crucial sectors of British economy Indian. But data has shown that companies are increasing investments in the UK and creating many thousands of new jobs. This demonstrates that, Brexit or no Brexit, India supports Britain.
    • Impact on India-EU Relations –With €72.5 billion worth of India-EU trade and €19.4 billion of India UK trade at stake, all partners needed to think through this issue carefully in the business and commercial context. Brexit seems to be a challenge to the India EU strategic partnership but India would need to learn to manage its relations with the EU without UK
    • Impact on Trade–Forging a Free Trade Agreement with India will not be a priority for UK as it leaves EU. Instead, Britain would initially focus on tackling existing barriers to trade. But India should grab the opportunity to fill the trade gap in UK, post-Brexit.

    2.Visas and Immigration

    • Illegal Migration: There are more than 1 lakh illegal Indian immigrants in UK. Britain has started putting pressure on Indian government to ensure that Indians who have no right to remain in UK be sent back to India
    • Latest Measures: On the other hand, a white paper on post-Brexit visas and immigration strategy has been unveiled. It is expected to benefit Indian students and professionals, with a focus on skills rather than country of origin. An annual cap of 20,700 on the number of skilled work visas issued will also be removed.

    3.Terrorism

    • In the context of Brexit, unlike the United States’ contemporary view, India continues to be hyphenated with Pakistan in London’s outlook.
    • India states the fact that bilateral relations went beyond the economic realm to issues such as security and terrorism were not being heeded in Britain, despite continuous efforts by India over the past decades.

    4.Totalization agreement

    • The UK government has also made it mandatory for people to pay a health care surcharge as part of their immigration application.
    • When employees are there for a short term as part of their work, it is important that they get to keep their hard-earned money rather than giving UK thousands of pounds of free money as social security taxes.
    • Therefore, it is important for UK and India to sign the totalization agreement at the earliest.
    • The totalization agreement with the UK would have exempted Indian professionals who are working for a certain period of time in the UK from paying those social security taxes if they are paying such taxes in India.

    Way forward

    • The historical baggage also needs to be addressed cooperatively to diminish the possibility of hindrance in future cooperation.
    • The India-United Kingdom are dynamic democracies and the world’s leading economies with impressive advancements in human resources, manufacturing, innovation, research, education, space, defence, green technologies, and clean energy, among other areas.
    • This relationship can be utilized for the betterment of the fields and more collaborations should be undertaken.

    Conclusion

    • As we celebrate the historic collaboration between the UK and India in producing the Covishield vaccine, and look forward to the much-awaited signing of the bilateral Free Trade Agreement, we should not lose sight of the tremendous power that transnational university-wide collaborations can leverage in the accord. Education, research and knowledge partnership ought to become the centre-piece of the India-UK relationship at 75, as we move forward.

    Mains question

    Q.Analyse India-UK bilateral relations with scope of upscaling and challenges they need to overcome .

     

  • India-EU Relations

    Context

    • While India celebrates its 75th year of Independence, it also celebrates 60 years of diplomatic relations with the European Union (EU).
    • A cooperation agreement signed in 1994 took the bilateral relationship beyond trade and economic cooperation.

    Definition

    • Relations between the European Union and the Republic of India are currently defined by the 1994 EU–India Cooperation Agreement. The EU is a significant trade partner for India and the two sides have been attempting to negotiate a free trade deal since 2007.

    Common roadmap and shared vision

    • The road map highlights engagement across five domains: foreign policy and security cooperation; trade and economy; sustainable modernisation partnership; global governance; and people-to-people relations.

     

    Brief history

    • India-EU relations date to the early 1960s, with India being amongst the first countries to establish diplomatic relations with the European Economic Community.
    • At the 5th India-EU Summit at The Hague in 2004, the relationship was upgraded to a ‘Strategic Partnership’.
    • The two sides adopted a Joint Action Plan in 2005 (which was reviewed in 2008) that provided for strengthening dialogue and consultation mechanisms in the political and economic spheres, enhancing trade and investment, and bringing peoples and cultures together.

    What is strategic partnership?

    • A ‘strategic partnership’, as the term suggests, involves a shared understanding between the two or more states involved on the nature of threats in the environment and the place of their collective power in helping mitigate the threats.

    Why they are important?

    • As the world’s two largest democracies, the EU and India share a commitment to protecting and promoting human rights, a rules-based global order, effective multilateralism, sustainable development and open trade.

    Significance

    [A] Political Partnership

    • The Joint Political Statement signed in 1993, opened the way for annual ministerial meetings and a broad political dialogue.
    • The Cooperation Agreement signed in 1994 took the bilateral relationship beyond trade and economic cooperation.
    • A multi-tiered institutional architecture of cooperation has since been created, presided over by the India-EU Summit since 2000.
    • Today EU stands as a major reference for India’s legislative process in the field of Data security and privacy.

    [B] Economic Ties

    • Bilateral trade: The EU is India’s largest trading partner, while India is the EU’s 9th largest trading partner. It is the second-largest destination for Indian exports after the United States.
    • Investment: The EU’s share in foreign investment inflows to India has more than doubled from 8% to 18% in the last decade. This makes the EU an important foreign investor in India.
    • Preferential treatment: India is the benefactor of the unilateral preferential tariffs under the EU Generalised Scheme of Preferences (GSP).
    • Energy: Both sides have finalised civil nuclear cooperation agreement after 13 years of negotiations called as the European Atomic Energy Community (EURATOM). It involves collaboration in the civil nuclear energy sector.
    • Development cooperation: Over €150 million worth of projects by EU are currently ongoing in India. European Investment Bank (EIB) is providing loans for Lucknow, Bangalore, and Pune Metro Projects.

    [C] Defence & Security

    • EU and India have instituted several mechanisms for greater cooperation on pressing security challenges like counterterrorism, maritime security, and nuclear non-proliferation.
    • Information Fusion Centre – Indian Ocean Region in New Delhi (IFC-IOR) has recently been linked-up with the Maritime Security Centre – Horn of Africa (MSC-HOA) established by the EU Naval Force (NAVFOR).

    [D] Climate Change

    • EU and India also underline their highest political commitment to the effective implementation of the Paris Agreement and the UNFCCC despite US withdrawing from the same.
    • India-EU Clean Energy and Climate Partnership was agreed at the 2016 Summit – to promote access to and disseminate clean energy and climate friendly technologies and encourage R&D.
    • Energy cooperation is now ongoing on a broad range of energy issues, like smart grids, energy efficiency, offshore wind and solar infrastructure, and research and innovation.
    • EU and India also cooperate closely on the Clean Ganga initiative and deal with other water-related challenges in coordinated manner.

    [E] Research and Development

    • India-EU Science & Technology Steering Committee meets annually to review scientific cooperation.
    • Both have official mechanisms in fields such as Digital Communications, 5G technology, Biotechnology, artificial intelligence etc.
    • ISRO has a long-standing cooperation with the European Union, since 1970s. It has contributed towards the EU’s satellite navigation system Galileo.

    Future scope

    • Trade figures and Investments: Bilateral trade between the two surpassed $116 billion in 2021-22. The EU is India’s second largest trading partner after the U.S., and the second largest destination for Indian exports.
    • Job creation: There are 6,000 European companies in the country that directly and indirectly create 6.7 million jobs.
    • Green strategic partnership: between India and Denmark aims to address climate change, biodiversity loss and pollution, and the India-Nordic Summit focused on green technologies and industry transformation that are vital for sustainable and inclusive growth.
    • Energy security: Energy serves as an important aspect of the relationship between India and the EU. Given the impacts of climate change, this aspect has become extremely crucial today. Both entities have been pursuing cooperation for the joint development of clean energy.
    • Political cooperation: India and the EU may benefit from increasing cooperation in the resolution of issues such as terrorism and radicalization, cyber-security, coordinating on certain key and relevant aspects of foreign policy, and other humanitarian issues.
    • International support: It is crucial that Europe recognize India as a partner for peace that is committed to human rights, both regionally and internationally.

    Challenges before them

    • Deadlock over BTIA: The negotiations for a Broad-based Bilateral Trade and Investment Agreement (BTIA) were held between 2007 to 2013 but have remained dormant/suspended since then.
    • Export hurdles: Indian demands for ‘Data secure’ status (important for India’s IT sector) to ease norms on temporary movement of skilled workers, relaxation of Sanitary and Phytosanitary (SPS), etc. stands largely ignored.
    • Trade imbalance: This heavily leans towards China. India accounts for only 1.9% of EU total trade in goods in 2019, well behind China (13.8%).
    • Brexit altercations: In the longer term of balancing of global powers, a smaller Europe without the key military and economic force UK, is much weaker in the wake of an ambitious China and an increasingly protectionist US.
    • EU primarily remains a trade bloc: This has resulted in a lack of substantive agreements on matters such as regional security and connectivity.
    • Undue references to sovereign concerns: The European Parliament was critical of both the Indian government’s decision to scrap Jammu and Kashmir’s special status in 2019 and the Citizenship (Amendment) Act.
    • China’s influence: EU’s affinity lies with China. This is because of its high dependence on the Chinese market. It is a major partner in China’s Belt and Road Initiative (BRI).
    • Ukrainian war: EAM S. Jaishankar’s witty reply about EU’s oil import from Russia has not been welcomed across the EU. It still expects India to criticize Russia.

    EU’s interests in India

    • Reducing dependence on China: It is necessary for both sides as it is making them highly vulnerable to Chinese aggression.
    • Western lobby: EU acknowledges its supply chain’s vulnerability, the risk posed by overdependence on China, and the need to strengthen the global community of democracies.
    • Healthcare: The on-going pandemic has shown the need for cooperation in global health. India and the EU have called for a reform of the World Health Organisation (WHO).
    • Perception of India as a huge market: EU still largely perceives India as huge market rather than a partner.
    • Promotion of multilateralism: Both sides are facing issues related to US-China trade war and uncertainty of the US’ policies. They have common interest in avoiding a bipolarised world and developing a rules-based order.

    India’s stakes in EU

    • Global leadership vacuum: Retreat of the U.S. from global leadership has provided opportunities for EU- India cooperation and trilateral dialogues with countries in the Middle Fast, Central Asia, and Africa.
    • Chinese Aggression: China’s increasing presence in Eurasia and South Asia is creating similar security, political and economic concerns for Europe and India.
    • Fall of the conventional global order: Trade war, crumbling WTO and break down of TPP etc. has made EU understand the economic importance of India.
    • BREXIT: Brexit is pushing India to look for new ‘gateways’ to Europe, as its traditional partner leaves the union. A renewed trade and political cooperation are the need of the hour.
    • Conformity over Indo-Pacific: The Indo-Pacific is the main conduit for global trade and energy flows. Rule-based Indo-pacific is of everyone’s interest with EU no exception.

    Way forward

    • A close bilateral relation between India and the EU has far-reaching economic, political and strategic implications on the crisis-driven international order.
    • Both sides should realise this potential and must further the growth of the bilateral ties with a strong political will.
    • As highlighted by EU strategy on India 2018, India-EU should take their relations beyond “trade lens”, recognizing their important geopolitical, strategic convergences.
    • India can pursue EU countries to engage in Indo-pacific narrative, geo-economically if not from security prism.

    Mains question

    What do you understand by the term strategic partnership? India and EU are celebrating 60 years of diplomatic relations trace their journey with significance and challenges in their ties.

     

    B2BASICS

    About European Union (EU)

    • The EU is a political and economic union of 27 member states that are located primarily in Europe.
    • The union and EU citizenship were established when the Maastricht Treaty came into force in 1993.
    • The EU grew out of a desire to strengthen international economic and political co-operation on the European continent in the wake of World War II.
    • It has often been described as a sui generis political entity (without precedent or comparison) with the characteristics of either a federation or confederation.
    • The eurozone consists of all countries that use the euro as official currency. All EU members pledge to convert to the euro, but only 19 have done so as of 2022.

    Members of the EU

    • Through successive enlargements, the European Union has grown from the six founding states (Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands) to 27 members.
    • This entails a partial delegation of sovereignty to the institutions in return for representation within those institutions, a practice often referred to as “pooling of sovereignty“.
    • In the 2016 ‘Brexit’ referendum, the UK voted to leave the EU. The UK officially left the EU in 2020

     

    Mains question

    What do you understand by the term strategic partnership? India and EU are celebrating 60 years of diplomatic relations trace their journey with significance and challenges in their ties.

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  • In news: Commission of Global Notables

    Mexican President has proposed the setting up of a commission called ‘Commission of Global Notables’ comprising Prime Minister Narendra Modi.

    Commission of Global Notables

    • Apart from Mr. Modi, the proposed “commission of global notables” includes Pope Francis and the UN Secretary-General Antonio Guterres.
    • This is yet a proposal in writing presented to the UN
    • It is understood that the list will find mention during the annual session of the UN General Assembly that will convene in September.
    • PM Modi and other leaders of the Member States are expected to participate in the session when the global body will discuss the crises in Ukraine, Gaza Strip and the regional tension over Taiwan.

    Significance for India

    • This shows significance of India under the present regime under PM Modi. We have to admit that India’s soft power is ever increasing.
    • PM Modi has also received high honours from the United Arab Emirates, Russia, Saudi Arabia, Bhutan and several other countries since since the beginning of his first stint in May 2014.
    • That apart, he has also received awards from international non-government organisations.

     

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  • India, Australia Relations

    The Union Cabinet has approved the signing of an Audio Visual Co-production Treaty between India and Australia, which is aimed at facilitating joint production of films between the two countries.

    India – Australia Relations

    • Both the countries share the ethos and values of pluralism, liberal democracy, steadfast commitment to rule of law, Commonwealth traditions, international peace, development and security.
    • The establishment of diplomatic relations between them dates back to the Pre-independence era. It started with the opening of the Consulate General of India as a Trade Office in Sydney in 1941.
    • Since then the ties have blossomed and currently, they enjoy a multi-faceted cooperation spanning areas of political interactions, economic collaboration, scientific research, strategic convergence, friendly people-to-people ties especially diaspora links and sporting ties of hockey and cricket.

    Areas of cooperation

    1.Political Dimension

    • Both the countries are members of G-20, ASEAN Regional Forum (ARF), IORA (Indian Ocean Rim Association), Asia Pacific Partnership on Climate and Clean Development, East Asia Summit and the Commonwealth. Australia has been extremely supportive of India’s quest for membership of the APEC (Asia Pacific Economic Cooperation).
    • Australia whole-heartedly welcomed India s joining of the MTCR (Missile Technology Control Regime).

    2. Economic Dimension

    • In recent years, the India-Australia economic engagement has magnified significantly. Australia has been very appreciative of economic reforms undertaken by India and its improving ease of doing business rankings because of the reforms was undertaken by the current government. India has welcomed Australia to participate in its Make in India, Smart Cities, AMRUT (Atal Mission for Rejuvenation and Urban Transformation), Clean Ganga Project etc. initiatives.
    • India and Australia are partners in the trilateral Supply Chain Resilience Initiative (SCRI) arrangement along with Japan which seeks to enhance the resilience of supply chains in the Indo-Pacific Region.
    • Recently, India signed a historic trade agreement with Australia, the India-Australia Economic Cooperation and Trade Agreement (Ind- Aus ECTA).
    • It is the first Free Trade Agreement (FTA) that India has signed with a major developed country in over a decade.
      India reaches out to Australia, set to start trade talks again | Business Standard News
      Credit: Business Standard
    • The current government has invited Australia s private sector participation in Indian economy. It says red tape in India has been replaced by red carpet and has welcomed private investors.

    3.Trade and Economic

    • The establishment of India-Australia Joint Ministerial Commission (JMC) in 1989 encouraged dialogue at a government and business level on multiple issues of trade and investment.
    • India-Australia CEO Forum is a significant mechanism through which business leaders from both nations engage in mutually fruitful dialogue to enhance bilateral trade and investment relationship. The Forum consists of heads of Indian and Australian business from multiple sectors like energy and resources, agri-business, financial sector, telecommunications, IT, education and pharmaceuticals. The last meeting of the Forum was held in New Delhi on 29th August 2017.
    • The city of Canberra, Australia hosted the seventh India-Australia Economic Policy Dialogue during 16-18 July 2017.
    • India’s main exports to  Australia  are  Refined  Petroleum,  medicaments, while our major imports are Coal, copper ores & concentrates, Gold, and  education related  services.
    • India s major imports from Australia are coal, non-monetary gold, copper, wool, fertilizers, wheat, vegetables and education-related services.
    • India and Australia have been each other’s important trading partners.
      • Australia is the 17th largest trading partner of India and India is Australia’s 9th largest trading partner.
      • India-Australia bilateral trade for both merchandise and services is valued at USD 27.5 billion in 2021.
      • India’s merchandise exports to Australia grew 135% between 2019 and 2021. India’s exports consist primarily of a broad-based basket largely of finished products and were USD 6.9 billion in 2021.
      • India’s merchandise imports from Australia were USD 15.1 billion in 2021, consisting largely of raw materials, minerals and intermediate goods.

    4.Civil Nuclear Cooperation Agreement

    • A Civil Nuclear Cooperation Agreement between the two countries was signed in September 2014 during the visit of the Australian Prime Minister to India. The agreement came into force from 13 November 2015.
    • The Australian Parliament passed the “Civil Nuclear Transfer to India Bill 2016” on 01 December, 2016 which ensures that Uranium mining companies in Australia may fulfil contracts to supply Australian uranium to India for civil use with confidence that exports would not be hindered by domestic legal action challenging the consistency of the safeguards applied by the IAEA in India and Australia’s international non-proliferation obligations.
    • It also ensures that any future bilateral trade in other nuclear-related material or items for civil use will also be protected.

    5.Defence Cooperation

    • The Mutual Logistics Support Agreement has been signed during the summit that should enhance defence cooperation and ease the conduct of large-scale joint military exercises.
    • There is a technical Agreement on  White  Shipping Information  Exchange.
    • Recently Australia and India conducted AUSINDEX,their largest bilateral naval exercise, and there are further developments on the anvil, including Australia’s permanent inclusion in the Malabar exercise with Japan. 
    • In 2018, Indian Air Force participated for the first time in the Exercise Pitch Blackin Australia. The third edition of AUSTRAHIND(Special Forces of Army Exercise) was held in September 2018.
    • A broader maritime cooperation agreement with a focus on Maritime Domain Awareness (MDA) is also in the works and Australia has agreed to post a Liaison Officer at the Indian Navy’s Information Fusion Centre – Indian Ocean Region (IFC-IOR) at Gurugram. 

    6.Education 

    • Under the New-Colombo Plan of Australian government, 900 Australian undergraduates have studied and completed internships in India during the period 2015-16

    7.Diaspora

    • The Indian community in Australia has the population of nearly half a million (2.1 % of the population), and another over 1,50,000 persons of Indian descent immigrated from other countries (Fiji, Malaysia, Kenya and South Africa).
    • India is one of the top sources of skilled immigrants to Australia.

    8.Energy Cooperation

    • A Joint Working Group on Energy and Minerals was established in 1999 to expand bilateral relationship in the energy and resources sector. The 8th JWG meeting held in New Delhi in June 2013.
    • As energy is one of the central pillars of economic cooperation, both sides agreed during the visit of our Prime Minister to Australia in November 2014 to cooperate on transfer of clean coal technology and welcomed Australia’s desire to upgrade the Indian School of Mines, Dhanbad.

    9. International cooperation

    India and 62 other countries have backed a draft resolution led by Australia and the EU to ‘identify the zoonotic source’ of Covid-19 and its ‘route of introduction’ to humans.

    • Australia supports India’s candidature in an expanded UN Security Council.
    • Both  India  and  Australia  are members of the Commonwealth, IORA, ASEAN Regional Forum, Asia Pacific Partnership on Climate  and  Clean  Development,  and  have  participated  in  the  East  Asia  Summits.  
      • Australia   is   an   important   player   in   APEC   and   supports   India’s membership of the organisation. In 2008, Australia became an Observer in SAARC.
    • Both countries have also been cooperating as members of the Five Interested Parties (FIP) in the WTO context.

    An India Economic Strategy to 2035

    • In 2018, Australia’s Prime Minister has announced implementation of “An India Economic Strategy to 2035”, a vision document that will shape India-Australia bilateral ties.
    • It is based on three-pillar strategy- Economic ties, Geostrategic Engagement and Rethinking Culture-thrust on soft power diplomacy.
    • The focus of this report is on building a sustainable long-term India economic strategy.
    • The report identifies 10 sectors and 10 states in an evolving Indian market where Australia has competitive advantages, and where it should focus its efforts. These are divided into a flagship sector (education), three lead sectors (agribusiness, resources, and tourism) and six promising sectors (energy, health, financial services, infrastructure, sport, science and innovation).

    Significance of the Relations

    • Australia is one of the few countries that has managed to combat COVID-19 so far through “controlled adaptation” by which the coronavirus has been suppressed to very low levels. Two of the leaders of this great Australia-wide effort are Indian-born scientists.
    • From farming practices through food processing, supply and distribution to consumers, the Australian agribusiness sector has the research and development (R&D) capacity, experience and technical knowledge to help India’s food industry improve supply chain productivity and sustainability and meet the challenges of shifting consumption patterns.
    • Australia is the 13th largest economy in the world, following closely behind Russia which stands at $1.6 trillion.
      • Australia is rich in natural resources that India’s growing economy needs.
      • It also has huge reservoirs of strength in higher education, scientific and technological research.
      • The dominance of Indo-Pacific countries in India’s trade profile: Fostering deeper integration between India and Australia will provide the necessary impetus to the immense growth potential of the trade blocs in this region.
    • The two countries also have increasingly common military platforms as India’s defence purchases from the U.S. continue to grow.
      • Australia has deep economic, political and security connections with the ASEAN and a strategic partnership with one of the leading non-aligned nations, Indonesia. Both nations can leverage their equation with ASEAN to contain China.
      • The Indo-Pacific region has the potential to facilitate connectivity and trade between India and Australia.
      • Being geographically more proximate than the US or Japan, India and Australia can emerge as leading forces for the Quad.

    Associated Issues

    • Trade deficit: India’s trade deficit with Australia has been increasing since 2001-02 due to India-Australia Free Trade Agreement. It is also a contentious issue in the ongoing RCEP negotiations which India left.
    • India’s desire for visa reforms in Australia, which would permit more Indian workers to seek employment in Australia, remains unmet. India wants greater free movement and relaxed visa norms for its IT professionals, on which Australia is reluctant. Australia and India are yet to nurture a common bilateral ground to figure out the basis of their cooperation.
    • The formation of the Japan–America–India (JAI) partnership at the G20 summit in Buenos Aires in 2018 is cause for Australian concern. India’s unwillingness to invite Australia to participate in the Malabar naval exercise, despite Australian lobbying, has sparked speculation over the fate of the Quadrilateral Consultative Dialogue (the ‘Quad) involving India, Australia, Japan and the United States.
    • Building consensus on non-nuclear proliferation and disarmament has been a major hurdle given India’s status as a nuclear power. Trade and maritime security on the other hand seem the most viable points of collaboration. Although a defence agreement was signed in 2014, the defence relationship has yet to develop fully.
    • Although security has received a lot of significance in the relationship, in practice Australia-India defence cooperation remains relatively undeveloped. There are a considerable number of defence and security dialogues between the two countries, but none has been translated into more substantive cooperation.
    • Increasing Racist attacks on Indians in Australia has been a major issue. The relationship was further strained over the attacks on Indian students studying in Melbourne, and the resulting media coverage caused serious damage to Australia’s standing in India.

    Need of the Hour

    • Upgradation of 2+2 talks. In addition, it may be prudent too for New Delhi and Canberra to elevate the ‘two plus two’ format for talks from the Secretary level to the level of Foreign and Defence Ministers.
    • Utilising current innovations in digital trade; such digitisation of economic activities has changed the landscape of trade, enhancing associations between economies and, in particular, South-South flows.
    • Removal of trade barriers would lead to an increase in the exports of these commodities, although the increasing number of disputes at the WTO with regard to the Australian sector can act as a serious impediment.
    • India and Australia have a strong track record of collaborating in research and innovation. The $84 million Australia-India Strategic Research Fund (AISRF) is Australia’s largest. The Australian Government’s $1.1 billion National Innovation and Science Agenda presents new opportunities to engage with India. The agenda resonates well with India’s ‘Start-up India’ and ‘Make in India’ campaign.
    • It is evident in policy areas such as maritime security, climate change, energy security, law enforcement, governance and the politics of security institutions.
    • Engaging Indonesia, Japan, France and Britain for securing Indo-Pacific
    • An ‘engage and balance’ China strategy is the best alternative to the dead end of containment. The role of the US is of particular importance as it has recently been a driver of efforts towards bringing similarly aligned states in counterbalancing China.

    Conclusion

    • Their ties are extremely important for the Indo-Pacific region which is in flux. They stand out for their solemn commitment towards democratic values, international peace, rule of law, development and multiculturalism.a

  • Israel vs. Palestine Row over Gaza

    India has termed Gaza violence as grave concern and called for immediate resumption of talk between Israel and Palestine.

    Here we explain the roots of the Israel-Palestine conflict, the two-state solution and why it has not materialized.

    What is the Israel-Palestine conflict?

    • The land to which Jews and Palestinians lay claim to was under the Ottoman Empire and then the British Empire in early 20th century.
    • Palestinian people —the Arab people from the same area— want to have a state by the name of Palestine in that area.
    • The conflict between Israelis and Palestinians is over who gets what land and how it’s controlled.
    • Jews fleeing the persecution in Europe at the time wanted to establish a Jewish state on the land which they believe to be their ancient homeland.
    • The Arab at the time resisted, saying the land was theirs.
    • The land at the time was called Palestine.
    • In 1917’s Balfour Declaration, the United Kingdom declared its support for the establishment of a “national home for the Jewish people” in Palestine.
    • Arabs resisted it which led to violence.

    When did the migration begin?

    • Some 75,000 Jews migrated to Palestine from1922-26 and some 60,000 Jews emigrated in 1935, according to a history published by the University of Central Arkansas.
    • It adds that Palestinian Arabs demanded the UK to halt Jewish emigration, but the UK ignored such calls. There were violent incidents, leading to deaths of some 500 people.
    • In 1923, the British Mandate for Palestine came into effect.
    • The document was issued by the League of Nations, the failed predecessor of the United Nations (UN).
    • The Mandate gave the UK the responsibility for creating a Jewish national homeland in the region.
    • In 1936, the UK government, recommended the partition of Palestine into Jewish and Arab states.

    Issue at the UN

    • In 1947, Britain referred the issue of Palestine to the UN, which came up with a partition plan.
    • It put up two proposals. One, two separate states joined economically —the majority proposal— and, two, a single bi-national state made up of autonomous Jewish and Palestinian areas, the minority proposal.
    • The Jewish community approved of the first of these proposals, while the Arabs opposed them both.

    Israel declares independence

    • In May 1948, Israel declared its independence.
    • The Arab countries of Lebanon, Syria, Iraq, and Egypt invaded the newly-declared country immediately.
    • When the war ended, Israel gained some territory formerly granted to Palestinian Arabs under the UN resolution in 1947.
    • It also retained control over the Gaza Strip and the West Bank respectively.

    The two-state solution and why it hasn’t worked out

    • The two-state solution refers to an arrangement where Israeli and Palestinian states co-exist in the region.
    • However, such a solution has not materialised over the decades.
    • As outlined in the beginning and in the briefly explained roots of the conflict, the two-state solution means two separate states for Israelis and Palestinians.

    There are four main reasons why the two-state solution has not materialized by now:

    [1] Borders

    • There is no consensus as to how to draw the lines dividing the two proposed states.
    • Many people say borders should have pre-1967 lines.
    • In 1967 Israeli-Arab war, Israel captured Sinai Peninsula, Gaza Strip, West Bank, Old City of Jerusalem, and Golan Heights.
    • Israel is not willing to give up these gains. It returned Sinai to Egypt in 1982.
    • Moreover, there is the question of Israeli settlements in West Bank.

    [2] Question of Jerusalem

    • Both Israel and Palestinians claim Jerusalem as their capital and call it central to their religion and culture.
    • The two-state solution typically calls for dividing it into an Israeli West and a Palestinian East, but it is not easy to draw the line — Jewish, Muslim and Christian holy sites are on top of one another.
    • Israel has declared Jerusalem its ‘undivided capital’, effectively annexing its eastern half, and has built up construction that entrenches Israeli control of the city.

    [3] Refugees

    • A large number of Palestinians had to flee in the 1948 War.
    • They and their descendants —numbering at 5 million— demand a right to return. Israel rejects this.
    • The return of these people would end the demographic majority of Jews, ending the idea of Israel that’s both democratic and Jewish.

    [4] Security

    • Security concerns are also central to Israel as it’s constantly harassed by terrorist group Hamas that controls Gaza Strip.
    • Hamas and other Islamist group in Gaza launch rockets into Israel time-to-time.
    • Moreover, there are also concerns of Palestinians’ attack inside Israel.
    • This year in March-April, at least 18 Israelis were killed in Palestinian attacks inside Israel.
    • A total of 27 Palestinians were also killed in the period, including those who carried out attacks inside Israel. Palestinians too have their concerns.
    • For Palestinians, security means an end to foreign military occupation.

    Why the two-state solution is needed?

    • Besides fulfilling the basic desire of both Jews and Arabs of their own states, supporters of two-state solutions say it must be backed because its alternatives are simply not workable.
    • A single state merging Israel, West Bank, and Gaza would reduce Jews to a minority.
    • At the same time, in such a state, Jews would be a significant minority which would mean that the Arab majority would be miffed.

    Moral reasoning too for a two-state solution

    • It says that the aspirations of one person should not be overridden for others’ aspirations.
    • It’s a struggle for collective rights between two distinct groups of people.
    • Jews are the global micro-minority with a very small piece of land to exist.
    • Depriving Israeli Jews of a Jewish state or Palestinians of a Palestinian state would represent a subordination of one group’s aspirations to someone else’s vision.

    Way forward

    • India opines that long-term peace in Israel and Palestine can be achieved only through a negotiated two-State solution leading.
    • This can be done with the establishment of a sovereign, independent and viable State of Palestine living within secure and recognized borders.

     

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  • India Switzerland Relations

    Context

    Two countries will commemorate next year the 75th anniversary of the signing in New Delhi of the 1948 Treaty of Friendship.

    Cooperation between two countries in various area

    • Switzerland and Indian partners are collaborating on digital transformation, sustainability, health, life sciences, medtech, infrastructure, cleantech, fintech, blockchain, AI and robotics.
    • Innovation and investment continue to be the primary drivers of our bilateral relations.
    • With over 330 Swiss companies, Switzerland is the 12th largest investor in India.
    • About 100 Swiss companies manufacture locally and support the Make in India initiative.
    • Trade talks between Switzerland (European Free Trade Association EFTA) and India are high on the priority list.
    • Digitalisation is emerging as a relatively new area of engagement with enormous potential for Switzerland and India.
    • Switzerland plays a leading role in researching new technologies and is home to many innovative and world-leading technology companies.
    • As one of the most innovative countries of the world, Switzerland seeks to engage with India, the leader of the Industry 4.0 revolution, in areas ranging from digital governance to digital self-determination.

    Switzerland in UNSC as non-permanent member

    • Switzerland was elected to the United Nations Security Council as a non-permanent member for the first time this year in June.
    • Convergence in priorities at Security Council: There are convergences in Swiss and Indian priorities at the UN Security Council.
    • Switzerland, like India, is committed to a robust and effective multilateral system.
    • In the Security Council, Switzerland will do everything possible to ensure sustainable peace.
    • Many years ago, from 1971 to 1976, Switzerland represented India’s interests in Pakistan and vice versa.
    • In the Security Council, Switzerland will focus on the protection of civilians and on international humanitarian law.
    • Impact of climate change on security: Switzerland will also address climate change and its impact on security.
    • Reforms of Security Council: Switzerland desires effective UN institutions.
    • India has been advocating for a reform of the Security Council.
    • Switzerland’s fourth priority in 2023 and 2024 will be to contribute to improving the United Nations Security Council’s effectiveness towards greater transparency and accountability.

    Conclusion

    Two countries can together contribute to global good. This engagement is a result of not only our shared priorities, but also our shared democratic values and foreign policy independence.

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  • MEA lashes OIC for remark on Kashmir

    Context: India has said the statement by the Organisation for Islamic Cooperation on Jammu and Kashmir “reeked of bigotry”.

    What did the MEA say?

    • The Ministry of External Affairs said the Saudi Arabia -based OIC continued to issue statements on J&K at the behest of a serial violator of human rights and notorious promoter of terrorism, indicating Pakistan.

    What is OIC?

    • The OIC — formerly Organisation of the Islamic Conference — is the world’s second-largest inter-governmental organization after the UN, with a membership of 57 states.
    • The OIC’s stated objective is “to safeguard and protect the interests of the Muslim world in the spirit of promoting international peace and harmony among various people of the world”.
    • OIC has reserved membership for Muslim-majority countries. Russia, Thailand, and a couple of other small countries have Observer status.

    India and OIC

    • At the 45th session of the Foreign Ministers’ Summit in 2018, Bangladesh suggested that India, where more than 10% of the world’s Muslims live, should be given Observer status.
    • In 1969, India was dis-invited from the Conference of Islamic Countries in Rabat, Morocco at Pakistan’s behest.
    • Then Agriculture Minister Fakhruddin Ali Ahmed was dis-invited upon arrival in Morocco after Pakistan President Yahya Khan lobbied against Indian participation.

    Recent developments

    • In 2019, India made its maiden appearance at the OIC Foreign Ministers’ meeting in Abu Dhabi, as a “guest of honor”.
    • This first-time invitation was seen as a diplomatic victory for New Delhi, especially at a time of heightened tensions with Pakistan following the Pulwama attack.
    • Pakistan had opposed the invitation to Swaraj and it boycotted the plenary after the UAE turned down its demand to rescind the invitation.

    What is the OIC’s stand on Kashmir?

    • It has been generally supportive of Pakistan’s stand on Kashmir and has issued statements criticizing India.
    • Last year, after India revoked Article 370 in Kashmir, Pakistan lobbied with the OIC for their condemnation of the move.
    • To Pakistan’s surprise, Saudi Arabia and the UAE — both top leaders among the Muslim countries — issued nuanced statements, and were not as harshly critical of New Delhi as Islamabad had hoped.
    • Since then, Islamabad has tried to rouse sentiments among the Islamic countries, but only a handful of them — Turkey and Malaysia — publicly criticized India.

    How has India been responding?

    • India has consistently underlined that J&K is an integral part of India and is a matter strictly internal to India.
    • The strength with which India has made this assertion has varied slightly at times, but never the core message.
    • It has maintained its “consistent and well-known” stand that the OIC had no locus standi.
    • This time, India went a step ahead and said the grouping continues to allow itself to be used by a certain country “which has a record on religious tolerance, radicalism, and persecution of minorities”.

    OIC members and India

    • Individually, India has good relations with almost all member nations. Ties with the UAE and Saudi Arabia, especially, have looked up significantly in recent years.
    • The OIC includes two of India’s close neighbors, Bangladesh and Maldives.
    • Indian diplomats say both countries privately admit they do not want to complicate their bilateral ties with India on Kashmir but play along with OIC.

    Way ahead

    • India now sees the duality of the OIC as untenable, since many of these countries have good bilateral ties and convey to India to ignore OIC statements.
    • But these countries sign off on the joint statements which are largely drafted by Pakistan.
    • India feels it important to challenge the double-speak since Pakistan’s campaign and currency on the Kashmir issue has hardly any takers in the international community.

     

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  • India and Minerals Security Partnership (MSP)

    India is aspiring to join the 11-member US-led partnership for critical mineral supply chains called ‘Minerals Security Partnership (MSP)’.

    Why in news?

    • A group of western nations are cooperating to develop alternatives to China to ensure key industrial supplies.
    • This is a part of a global ‘China-plus-one’ strategy adopted post pandemic that caused massive supply-chain disruptions.
    • India is not part of this arrangement but New Delhi is working through diplomatic channels to fetch an entry.

    What is the Minerals Security Partnership (MSP)?

    • The US and 10 partners — Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea (South Korea), Sweden, the United Kingdom, and the European Commission — have come together to form the MSP.
    • The new grouping is aimed at catalysing investment from governments and the private sector to develop strategic opportunities.
    • Demand for critical minerals, which are essential for clean energy and other technologies, is projected to expand significantly in the coming decades.
    • The MSP will help catalyse investment from governments and the private sector for strategic opportunities — across the full value chain — that adhere to the highest environmental, social, and governance standards.

    Focus of MSP

    • The new grouping could focus on the supply chains of minerals such as Cobalt, Nickel, Lithium, and also the 17 ‘rare earth’ minerals.
    • The alliance is seen as primarily focused on evolving an alternative to China, which has created processing infrastructure in rare earth minerals and has acquired mines in Africa for elements such as Cobalt.

    What are Rare Earth Elements?

    • The 17 rare earth elements (REE) include the 15 Lanthanides (atomic numbers 57 — which is Lanthanum — to 71 in the periodic table) plus Scandium (atomic number 21) and Yttrium (39).
    • REEs are classified as light RE elements (LREE) and heavy RE elements (HREE).
    • Some REEs are available in India — such as Lanthanum, Cerium, Neodymium, Praseodymium and Samarium, etc.
    • Others such as Dysprosium, Terbium, and Europium, which are classified as HREEs, are not available in Indian deposits in extractable quantities.

    Why are these minerals important?

    • Minerals like Cobalt, Nickel, and Lithium are required for batteries used in electric vehicles.
    • REEs are an essential — although often tiny — component of more than 200 consumer products, including mobile phones, computer hard drives, electric and hybrid vehicles, semiconductors etc.

    Where does India stand?

    • There is a dependence on countries such as China for HREEs, which is one of the leading producers of REEs, with an estimated 70 per cent share of the global production.
    • India is seen as a late mover in attempts to enter the lithium value chain, coming at a time when EVs are predicted to be a sector ripe for disruption.
    • The year 2022 is likely to be an inflection point for battery technology — with several potential improvements to the Li-ion technology.
    • India has an ambitious plan to convert a large percentage of its transport to electric, and would require these minerals.
    • According to the plan, 80 per cent of the country’s two- and three-wheeler fleet, 40 per cent of buses, and 30 to 70 per cent of cars will be EVs by 2030.

    What is India’s major concern at this moment?

    • If India is not able to explore and produce these minerals, it will have to depend on a handful of countries, including China, to power its energy transition plans to electric vehicles.
    • That will be similar to our dependence on a few countries for oil.

    Why was India excluded?

    • Industry watchers say that the reason India would not have found a place in the MSP grouping is that the country does not bring any expertise to the table.
    • In the group, countries like Australia and Canada have reserves and also the technology to extract them, and countries like Japan have the technology to process REEs.

     

     

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  • Taiwan between giants

    Context

    The US House of Representatives Speaker Nancy Pelosi visited Taiwan evoking strong protest from China.

    Brief history of China-Taiwan Tensions

    • Taiwan is an island about 160 km off the coast of southeastern China, opposite the Chinese cities of Fuzhou, Quanzhou, and Xiamen.
    • It was administered by the imperial Qing dynasty, but its control passed to the Japanese in 1895.
    • After the defeat of Japan in World War II, the island passed back into Chinese hands.
    • After the communists led by Mao Zedong won the civil war in mainland China, Chiang Kai-shek, the leader of the nationalist Kuomintang party, fled to Taiwan in 1949.
    • Chiang Kai-shek set up the government of the Republic of China on the island, and remained President until 1975.
    • Beijing has never recognised the existence of Taiwan as an independent political entity, arguing that it was always a Chinese province.

    The US and One-China Principle

    • With the shifting geopolitics of the Cold War, the PRC and the U.S. were forced to come together in the 1970s to counter the growing influence of the USSR.
    • This led to the US-China rapprochement demonstrated by the historic visit of then US President Richard Nixon to PRC in 1972.
    • The same year, the PRC displaced ROC as the official representative of the Chinese nation at the UN.
    • Diplomatic relations with the PRC became possible only if countries abided by its “One China Principle” — recognizing PRC and not the ROC as China.

    Why does China have a problem with Pelosi visiting Taiwan?

    • For China, the presence of a senior American figure in Taiwan would indicate some kind of US support for Taiwan’s independence.
    • This move severely undermined China’s perception of sovereignty and territorial integrity.

    China’s reaction

    • Increased military exercises around Taiwa : Military exercises around Taiwan have been expanded, with Chinese aircraft intruding more frequently across the informal median line which defines the zone of operations on each side.
    • Increased naval presence: Chinese naval ships are cruising within the Taiwan Straits and around the island itself.
    • Economic sanctions have been announced, prohibiting imports of a whole range of foodstuffs from Taiwan.
    • One item which will be left out is semi-conductors, a critical import for a range of Chinese high-tech industries.
    • Taiwanese firms like the Taiwan Semi-Conductor Manufacturing Company (TSMC) are world leaders in the most sophisticated brands of chips imported by a large number of countries.
    •  The main target of China’s escalating response will be Taiwan.
    • Taiwan is indeed caught in the crossfire between China and the US and being a proxy in a fight between giants.

    Implications for East Asia and South East Asia

    • Forced into making a choice: Just as Taiwan is caught in a crossfire between the US and China, so are the East Asian and South East Asian countries.
    • Prefer US military presence: They feel reassured by the considerable US military presence deployed in the region and tacitly support its Indo-Pacific strategy.
    • Strong economic ties with China: However, their economic and commercial interests are bound ever tighter with the large and growing Chinese economy.
    • This having it both ways strategy is beginning to fray at the edges with the escalating tensions between the US and China.
    • Most do not wish to be forced into making a choice.

    What should be India’s approach?

    • Advantageous for India: In one sense, China’s preoccupation with its eastern ocean flank of the Yellow Sea, the Taiwan Strait and the South China Sea is good for India.
    • It diminishes Chinese attention toward the Indian Ocean, India’s primary security theatre.
    • Adhere to One China Policy: Prudence demands that India hew closely to its consistent one China policy even while maintaining and even expanding non-official relations with Taiwan.
    • For the US, Japan and Australia, members of the Quad, Taiwan is a key component of the Indo-Pacific strategy.
    • It is not for India.

    Conclusion

    One should use the opportunity to expand India’s naval capabilities and maritime profile in this theatre before the Chinese begin to look to our extended neighbourhood with renewed interest and energy.

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