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

  • The Chinese challenge

    Context

    Nearly 20 months after the border crisis began in Ladakh, China has pressed on with aggressive diplomatic and military gestures against India.

    Recent anti- India moves by China

    • Beijing recently renamed 15 places in Arunachal Pradesh, following the six it had done in 2017.
    • China justifies the renaming as being done on the basis of its historical, cultural and administrative jurisdiction over the area — these old names existed since ancient times which had been changed by India with its “illegal occupation”.
    • On January 1, 2022, Beijing’s new land border law came into force, which provides the People’s Liberation Army (PLA) with full responsibility to take steps against “invasion, encroachment, infiltration, provocation” and safeguard Chinese territory.

    India’s response

    • Delhi has run out of proactive options against Beijing that will force the Chinese leadership to change course on its India policy.
    • The two countries have an increasingly lopsided trade relationship driven by Indian dependency on Chinese manufacturing, a situation further worsened by the Government’s mishandling of the novel coronavirus pandemic.
    • To restore the status quo ante on the LAC as of April 2020, India undertook internal balancing of its military from the Pakistan border to the China border and external rebalancing through a closer partnership with the United States in the Indo-Pacific.
    • Because of the China factor, the U.S. is currently looking away even as India mistreats its minorities and its democracy stands diminished.
    •  India’s difficult diplomatic and military engagement with China is going to leave it more dependent on U.S. support, rendering India more vulnerable to American pressure on ‘shared values’.
    • With a rising China as its neighbour and a more self-centred U.S. – which is uncomfortable with India’s reliable partner, Russia — as its friend, Delhi continues to face difficult choices.

    Conclusion

    Put under the harsh glare, India has been found wanting in its ability to deal with future challenges. The immediate challenge, however, remains China. It cannot be wished away and must be tackled.

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  • China’s new land boundary law fits in with its expansionism

    Context

    The latest in the series of aggressive Chinese actions is the use of lawfare through the passing of the “Land Boundary Law” on October 21 which became effective this week.

    Background of the Chinese approach

    • The last residue of the Qing dynasty was wiped out in the 1911 revolution when China was established as a republic.
    • The republic was again overthrown in 1949 by the Chinese Communist Party.
    • Three successive Chinese governments in China refused to delineate or demarcate the boundary with either Tibet or India.
    • British archival records, many declassified points to attempts made by Imperial Britain to formally formulate a boundary with China.
    • Yet, all three regimes were united in their refusal to accept a formal limiting of China’s territorial expanse and kept their response ambiguous.
    • Even during the Simla Convention of 1913-14, when the Republic was ascendant in China, there was a vehement refusal to recognise any demarcation of boundaries between Tibet and China.

    Strong-arm tactics against India

    • Having operated from a maximalist position to settle its borders with 12 of its 14 neighbours so far, China has attempted to use the same strong-arm tactics with both India and Bhutan.
    • It has offered to forgo its claims in the larger parts of North Bhutan in lieu of gaining a relatively smaller area in West Bhutan.
    • Threat to Siliguri corridor: This seeming magnanimity is calculated to expand into the Chumbi Valley in the South, threatening the narrow and strategic Siliguri corridor in India.
    • In its latest move, China has made a new claim on Sakteng sanctuary in Bhutan which may form a launchpad for future operations against Tawang in Arunachal Pradesh.
    • China has also strengthened its collusion with Pakistan.
    • There is a deliberate attempt by China to physically link with Pakistan in the Northern Areas by removing the Indian wedge of DBO, the doorway to the Karakoram Pass.
    • A Training Mobilisation Order (TMO) issued by Xi Jinping in January 2020 called for “confrontational training” for its troops and officers to assess their preparedness, especially in light of the new reforms undertaken by the PLA.
    • These factors seem to be the tactical beginnings of China’s grand strategy which also saw China flexing in the South China Sea and Taiwan, almost simultaneously.

    China making use of lawfare and implications for India

    • The latest in the series of aggressive Chinese actions is the use of lawfare through the passing of the “Land Boundary Law”.
    • Formalises and legalises land Chinese grab: The law formalises and legalises China’s geographic creep towards Tawang, Arunachal Pradesh and parts of eastern Ladakh and creates conditions for using newly-constructed border villages close to the LAC for claiming sovereignty over disputed areas.
    • The import of the law is most critical for India but will affect China’s disputes with other countries too.
    • What China has done, therefore, is convert a territory dispute over borders into a sovereignty dispute which precludes any give or take of territory.
    • China will attempt to settle its Han population in the Tibetan regions, reversing established demographic patterns and at the same time.
    •  Future negotiations over territory, if they occur, will then refer to the Border Defence Cooperation Agreements of 2005 and 2012 which call for border settlements to be done keeping in mind the local population in the border regions.

    Way forward

    • A deliberate thought process needs to be evolved to offset our disadvantages as purely military actions may not solve the situation in the long term.

    Conclusion

    What emerges clearly is that by adopting the Land Boundary Law, in conjunction with its physical actions on the LAC, China has consolidated its position in eastern Ladakh and kept possibilities open in Arunachal Pradesh.

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  • CSTO troops deployed in Kazakhstan

    A Moscow-led military alliance called Collective Security Treaty Organization (CSTO) dispatched troops to help quell mounting unrest in Kazakhstan.

    Ongoing situation in Kazakhstan

    • Long seen as one the most stable of the ex-Soviet republics of Central Asia, energy-rich Kazakhstan is facing its biggest crisis.
    • There are ongoing protests over rising fuel prices escalated into widespread unrest.
    • The nationwide protests are also signifying a wider, region-wide longing for political change.
    • Under increasing pressure, Kazakh President appealed to the Russia for CSTO army to be deployed in Kazakhstan.

    Concerns over CTSO troop’s deployment

    • It is argued that domestic turmoil could be utilized by Russian nationalists for asserting their claims in Northern Kazakhstan.

    What is CSTO?

    • The CSTO is a Russia-led military alliance of seven former Soviet states that was created in 2002.
    • Current CSTO members are Armenia, Belarus, Kazakhstan, Kyrgyzstan, the Russian Federation and Tajikistan.
    • Afghanistan and Serbia hold observer status in the CSTO.
    • Its purpose is to ensure the collective defence of any member that faces external aggression.

    Outlined functions of CSTO

    • Version of NATO: It has been described by political scientists as the Eurasian counterpart of NATO, which has 29 member states, while the CSTO has just six.
    • Arms trade and mutual defense: CSTO supports arms sales and manufacturing as well as military training and exercises, making the CSTO the most important multilateral defence organization in the former Soviet Union.
    • Non- proliferation of weapons:  CSTO also coordinates efforts in fighting the illegal circulation of weapons among member states and has developed law enforcement training for its members in pursuit of these aims.

    What does CSTO membership provide?

    • Barring relations with NATO: While CSTO membership means that member states are barred from joining other military alliances, limiting, for example, their relationship with NATO.
    • Benefits in arms import from Russia: Its members receive discounts, subsidies, and other incentives to buy Russian arms, facilitating military cooperation.
    • Assurance against military conquest: In the CSTO, aggression against one signatory is perceived as aggression against all. It however remains unclear whether this feature works in practice.

     

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  • China’s bridge over Pangong Tso

    China is building a bridge across the Pangong Tso area connecting the North and South Banks which will significantly reduce the time for moving troops and equipment between the two sides.

    About Pangong Tso

    • Pangong Tso or Pangong Lake is an endorheic lake in the Himalayas situated at a height of about 4,350 m.
    • It is 134 km long and extends from India to the Tibetan Autonomous Region, China.
    • Approximately 60% of the length of the lake lies within the Tibetan Autonomous Region.
    • The lake is 5 km wide at its broadest point. All together it covers 604 sq.km.
    • During winter the lake freezes completely, despite being saline water.
    • It is not a part of the Indus river basin area and is geographically a separate landlocked river basin.
    • Earlier, Pangong Tso had an outlet to Shyok River, a tributary of Indus River, but it was closed off due to natural damming.

    Tactical significance of the lake

    • It lies in the path of the Chushul approach, one of the main approaches that China can use for an offensive into Indian Territory.
    • During the 1962 war, this was where China launched its main offensive — the Indian Army fought heroically at Rezang La under Maj. Shaitan Singh.
    • Not far away, to the north of the lake, is the Army’s Dhan Singh Thapa post, named after Major Dhan Singh Thapa who was awarded the country’s highest gallantry award, the Param Vir Chakra.
    • Major Thapa and his platoon were manning the Sirijap-1 outpost which was essential for the defense of the Chushul airfield.

    Connectivity in the region

    • Over the years, the Chinese have built motorable roads along their banks of the Pangong Tso. This points to the importance accorded by the Chinese to the area.
    • Even during peacetime, the difference in perception over where the LAC lies on the northern bank of the lake makes this contested terrain.
    • In 1999, when the Army unit from the area was moved to Kargil for Operation Vijay, China took the opportunity to build 5 km of a road inside the Indian Territory along the lake’s bank.
    • From one of these roads, Chinese positions physically overlook Indian positions on the northern tip of the Pangong Tso Lake.

    What is the importance of the bridge over Pangong Tso?

    • The bridge over Pangong Tso is located around 25 kms ahead of the LAC in Chinese territory and will significantly reduce the time for movement of Chinese army.
    • The Indian Army gained tactical advantage over the PLA on the south bank in end August 2020 by occupying several peaks lying vacant since 1962 gaining a dominating view.
    • This has prompted China to build deep alternate roads behind the friction points away from the line of sight.

    How is India responding to developments on the ground?

    • The bridge is well within Chinese territory.
    • The implications of this new bridge will have to be factored in the Indian Army’s operational planning for the future.
    • On its part, over the last few years India has been focusing on infrastructure development in forward areas and improving connectivity to the forward areas.
    • Large-scale construction of roads, bridges and tunnels is underway all along the LAC.

     

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  • What America’s Indo-Pacific policy mean

    Context

    The visit by United States Secretary of State  Antony J. Blinken to Southeast Asia in December 2021 underscores the importance that is being accorded to this region by the Joe Biden administration.

    Take aways from the visit

    [1] Projecting the US as reliable partner

    • The idea was to present the U.S. as a reliable partner in meeting the challenges that the Indo-Pacific region is facing.
    • For instance, completely aware that the Southeast Asian nations are averse to choosing sides in this U.S.-China competition, Mr. Blinken made it a point to mention that “individual countries will be able to choose their own path and their own partners.

    [2] Tackling China challenge

    • Both China and the U.S. are trying to lure the Association of Southeast Asian Nation (ASEAN) countries to their side — China with its grand economic infrastructure investment deals and the U.S. through recent high profile official visits as well as through the Build Back Better World initiative and Blue Dot Network.
    • In Southeast Asia, the U.S.-China competition is most visible in two areas; one is the South China Sea and the second is the investment in fulfilling the infrastructure development needs of Southeast Asian countries.
    • The U.S. has continued its Freedom of Navigation operations in the disputed waters of the South China Sea.
    • In his remarks in Indonesia, Mr. Blinken stressed America’s determination “to ensure freedom of navigation in the South China Sea, where Beijing’s aggressive actions there threaten the movement of more than $3 trillion worth of commerce every year”.

    [3] Closing the gap on infrastructure

    • Southeast Asia has been one of the top recipients of Chinese investments under its Belt and Road Initiative (BRI).
    • How these investments have driven countries such as Cambodia and Laos to do China’s bidding in the ASEAN even at the cost of compromising ASEAN’s unity is a known fact.
    • Mr. Blinken reiterated that the U.S. remains committed to help close the gap on infrastructure.
    • The infrastructure coordination group launched by the Quad members is seeking to catalyse even more investment and is looking to partner with Southeast Asia on infrastructure and many other shared priorities.
    • Washington is promising to do more under the Build Back Better World initiative and the Blue Dot Network.

    Way forward

    • The ASEAN countries, even after the release of the ASEAN Outlook on the Indo-Pacific, do not have a uniform approach when it comes to dealing with the U.S. and China.
    • These differing approaches are also challenging the much vaunted ASEAN centrality in the Indo-Pacific.
    • Though external players will have a limited role in ensuring that the unity within ASEAN is restored, providing proper alternative models of investments for development in sectors such as infrastructure, digital economy, supply chain, and health for the Southeast Asian nations will be critical.

    Conclusion

    The economic framework, investment plans and promises outlined need to be made operational quickly if Washington is to show that it is indeed serious about sustained commitment toward the Indo-Pacific.

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  • Pakistan ready to host SAARC Summit

    Pakistan Foreign Minister Shah has said that his country was ready to host the 19th SAARC Summit and invited India to join it virtually if it is not willing to visit Islamabad.

    About SAARC

    • The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization and geopolitical union of states in South Asia.
    • Members: Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.
    • It was established in Dhaka on 8 December 1985. Its secretariat is based in Kathmandu, Nepal.
    • The organization promotes the development of economic and regional integration.
    • It maintains permanent diplomatic relations at the United Nations as an observer and has developed links with multilateral entities, including the European Union.

    Formation of SAARC

    • After the USSR invaded Afghanistan in 1979, the security situation in South Asia rapidly deteriorated.
    • In response, the foreign ministers of the initial seven members met in Colombo in 1981.
    • At the meeting, Bangladesh proposed forming a regional association that would meet to discuss matters such as security and trade.
    • While most of the countries present were in favour of the proposal, India and Pakistan were skeptical.
    • Eventually, both countries relented and in 1983 in Dhaka, joined the other five nations in signing the Declaration.

    Economic significance of SAARC

    • The SAARC comprises 3% of the world’s area, 21% of the world’s population and 4.21% (US$3.67 trillion) of the global economy, as of 2019.
    • It launched the South Asian Free Trade Area in 2006.

    Major accomplishments

    • Forum for discussions: It has provided a platform for representatives from member countries to meet and discuss important issues, something that may have been challenging through bilateral discussions.
    • Diplomatic tool: India and Pakistan for example would struggle to publicly justify a meeting when tensions between the two are particularly high, but both countries often come together under the banner of SAARC.
    • Crisis management: The bloc has also made some headway in signing agreements related to climate change, food security and combating the Covid-19 crisis.
    • Technology: It has been another avenue of cooperation marked by the launch of South Asia Satellite by India.

    Limitations to SAARC

    • Small scale: Despite its lofty ambitions, SAARC has not become a regional association in the mould of the European Union or the African Union.
    • Internal divisions: Its member states are plagued by internal divisions, most notably the conflict between India and Pakistan.
    • Trade disputes: This in turn has hampered its ability to form comprehensive trade agreements or to meaningfully collaborate on areas such as security, energy and infrastructure.
    • Terrorism: The last SAARC summit to be held in Pakistan has been cancelled several times due to many nations pulling out of the summit citing fears of regional insecurity.

    Why must India rethink on SAARC?

    • Extended diplomacy: India continued to attend Shanghai Cooperation Organisation (SCO) meetings along with their Pakistani counterparts.
    • Pandemic mitigation: Reviving SAARC is crucial to countering the common challenges brought about by the pandemic.
    • Economic cooperation: Apart from the overall GDP slowdown, global job cuts has led to fall in revenue for migrant labour and expatriates from South Asian countries.
    • Countering China: While dealing with China, a unified South Asian platform is a crucial countermeasure for India.

     

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  • Selective alignment to universal engagement of Indian diplomacy

    Context

    In 2021, Indian diplomacy was characterised by a readiness to deal with friends and foes alike.

    Challenges faced by India diplomacy in 2021

    • The US leadership change: Coping with the change from President Donald Trump to President Joe Biden and the consequent changes in U.S. policy were big enough to keep the world leaders on tenterhooks.
    • Pandemic:  With the increased onslaught of the pandemic, India suddenly became the epicentre of the tragedy.
    • The exposure of the inefficiency of India’s health system and put the country in the defensive and weakened its credibility as it tried to contribute to the resolution of global issues.
    • Aggression by China: For India, the biggest preoccupation of 2021 was the effort to get China to disengage in areas in Ladakh.
    • Dialogue, military preparedness and economic pressure met with limited success.
    • Afghanistan crisis: Afghanistan turned out to be a bigger crisis than expected, with the Taliban’s walkover in Kabul.
    • Bringing some civility to the Taliban in Kabul became a high priority in the face of a Pakistan-China-Taliban axis with some support from Russia and Iran.
    • Issue of permanent membership of the UN Security Council: Unprecedented in the history of the UN, an event at the Security Council was chaired by the Prime Minister.
    • Significant inputs were provided during discussions on issues like maritime security, peacekeeping and anti-terrorism for active consideration in the future.
    • Although it is illusory to believe that the way has been cleared for India’s permanent membership of the Security Council, India’s diplomatic capabilities and its commitment to the UN have demonstrated yet again.

    What marks the change in the style of Indian diplomacy?

    • From selective alignment, India moved to universal engagement, even to the extent of convening meetings with antagonists.
    • Engagements with the U.S. went beyond familiarisation with the new government to increased commitment to Quad and acceptance of AUKUS and formation of the ‘western Quad’, with the U.S., Israel and the UAE.
    • Engagement with Russia: Major agreements were signed with Russia, despite the American threat of CAATSA against S-400 missiles and the Russian inclination to align with China in the days to come.
    • The engagement with China at the level of commanders and diplomats was intense, and ministerial interaction continued even when China tore up many fundamental agreements that sustained the dialogue for many years.
    • Patience, diligence and firmness: India attended a Shanghai Cooperation Organisation meeting, where a sub-group led by China took its own decisions on Afghanistan.
    • We also attended a meeting of Russia, China and India.
    • Perhaps because of the unique geopolitical situation, India gave particular importance to its presidency of the UN Security Council in August 2021.
    • Engagement with Myanmar: The Foreign Secretary’s visit to Myanmar to engage the military junta at a time when opposition leaders are in prison may raise eyebrows in many countries, but this is another instance of India’s readiness to engage those in power to explore possibilities of friendship and co-operation.
    •  The intention is to prevent China from having a field day in Myanmar.

    Conclusion

    Sadly, the extraordinary efforts made by India have not been fruitful in the cases of China and Afghanistan.  But India’s new style of diplomacy will have an impact in shaping the world of the future.

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  • Taiwan: An important ally in the battle against authoritarianism

    Context

    President Joe Biden-led Summit for Democracy was held on December 9-10. The summit was driven by the idea that in the face of populism, authoritarianism it is critical to keep the “democratic” flock together.

    The salience of Summit for Democracy

    • As a goal in itself: The salience of this summit lies in a deeper understanding that democracy is not just a form of government, it is a goal in itself, a value that must be cherished, preserved and celebrated.
    • Democracy as a way of life: Unlike other political systems, democracy is also a way of life — a work in progress that needs sustained attention and careful nurturing to make it more resilient.

    Taiwan as a desired partner of like-minded democracies

    • Taiwan’s New Southbound Policy (NSP) was launched in 2016 to bring Asia closer to Taiwan and vice-versa.
    • The NSP is aimed to be a pivotal tool to engage like-minded democracies in the region.
    • Role in the post-pandemic world: The post-pandemic world would be more invested in some of these areas — for example, health diplomacy and collaboration in the medical sector, climate change mitigation, and developing sustainable and resilient supply chains.
    • Platform for semiconductor industry: Taiwan is already proving its efficacy as a viable platform for the semiconductor industry.
    • Resilient supply chain mechanism: The US and its friends in the region, particularly India, Japan and Australia, have been proactively exploring possibilities of creating resilient supply chain mechanisms.
    • With its technological knowhow, and shared interests and concerns, Taiwan fits perfectly in this agenda.
    • EU’s renewed interest in Indo-Pacific: Greater interactions between Taiwan and EU on the technology cooperation front, stimulated by the latter’s renewed interest in the Indo-Pacific region, makes Taiwan a desired partner of fellow democracies.
    •  As an industrialised democracy, Taiwan could play an important role, especially since countries are trying to reduce dependence on China and establish supply chain resilience.

    Conclusion

    It is important for liberal democracies to acknowledge that they are facing similar challenges and view Taiwan as an indispensable partner. Deft diplomacy is in order since transnational challenges demand joint efforts by liberal democracies.

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  • India-Australia soon to have FTA

    India and Australia are expected to complete negotiations for an interim free trade agreement (FTA) soon, a move aimed at boosting economic ties between the two countries.

    Comprehensive Economic Cooperation Agreement (CECA)

    • The final agreement is officially dubbed as the CECA is expected to be completed by the end of 2022.
    • The pact covers areas such as goods, services, investment, rules of origin, customs facilitation, legal and institutional issues.
    • This new strategic economic agreement is expected to increase bilateral trade in goods to $100 billion within five years.

    What is a Free Trade Agreement (FTA)?

    • A FTA is a pact between two or more nations to reduce barriers to imports and exports among them.
    • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
    • The concept of free trade is the opposite of trade protectionism or economic isolationism.

    Key benefits offered by FTA

    • Reduction or elimination of tariffs on qualified: For example, a country that normally charges a tariff of 12% of the value of the incoming product will rationalize or eliminate that tariff.
    • Intellectual Property Protection: Protection and enforcement of intellectual property rights in the FTA partner country is upheld.
    • Product Standards: FTA enhances the ability for domestic exporters to participate in the development of product standards in the FTA partner country.
    • Fair treatment for investors: FTA provides treatment as favorably as the FTA partner country gives equal treatment for investments from the partner country.
    • Elimination of monopolies: With FTAs, global monopolies are eliminated due to increased competition.

    How many FTAs does India have?

    • India has signed it’s first Free Trade Agreement (FTA) with Sri Lanka in 1998.
    • Likewise, India had FTAs with: Nepal, Bhutan, Thailand, Singapore, ASEAN, Japan and Malaysia.
    • India has signed Preferential Trade Agreements such as:
    1. Asia Pacific Trade Agreement (APTA) with Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka
    2. Global System of Trade Preferences (GSTP)
    3. India – MERCOSUR PTA etc. with South American countries

    Back2Basics: Types of Trade Agreements

    (1) Free Trade Agreement

    (discussed above)

    (2) Preferential Trade Agreement

    • In this type of agreement, two or more partners give preferential right of entry to certain products.
    • This is done by reducing duties on an agreed number of tariff lines.
    • Here a positive list is maintained i.e. the list of the products on which the two partners have agreed to provide preferential access.
    • Tariff may even be reduced to zero for some products even in a PTA.
    • India signed a PTA with Afghanistan.

    (3) Comprehensive Economic Partnership Agreement

    • Partnership agreement or cooperation agreement are more comprehensive than an FTA.
    • CECA/CEPA also looks into the regulatory aspect of trade and encompasses and agreement covering the regulatory issues.
    • CECA has the widest coverage. CEPA covers negotiation on the trade in services and investment, and other areas of economic partnership.
    • It may even consider negotiation on areas such as trade facilitation and customs cooperation, competition, and IPR.
    • India has signed CEPAs with South Korea and Japan.

    (4) Comprehensive Economic Cooperation Agreement

    • CECA generally cover negotiation on trade tariff and Tariff rate quotas (TRQs) rates only.
    • It is not as comprehensive as CEPA.
    • India has signed CECA with Malaysia.

    (5) Framework Agreement

    • Framework agreement primarily defines the scope and provisions of orientation of the potential agreement between the trading partners.
    • It provides for some new area of discussions and set the period for future liberalisation.
    • India has previously signed framework agreements with the ASEAN, Japan etc.

    (6) Early Harvest Scheme

    • An Early Harvest Scheme (EHS) is a precursor to an FTA/CECA/CEPA between two trading partners. For example, early harvest scheme of RCEP has been rolled out.
    • At this stage, the negotiating countries identify certain products for tariff liberalization pending the conclusion of actual FTA negotiations.
    • An Early Harvest Scheme is thus a step towards enhanced engagement and confidence building.

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  • An opportunity for Digital India

    Context

    India is pioneering the concept of digital public goods, with it, there is an opportunity for India to embark on digital diplomacy.

    Digital public goods in India

    • Built on the foundation of Aadhaar and India Stack, modular applications, big and small, are transforming the way we make payments, withdraw our PF, get our passport and driving licence and check land records, to name just a few activities.
    • There is an opportunity for India to embark on digital diplomacy — to take its made-in-India digital public goods to hundreds of emerging economies across the world.

    How Digital Diplomacy can help India?

    • This could be a strategic and effective counter to China’s Belt and Road Initiative.
    • Enhancing the productivity of emerging economies: Emerging economies are characterised by gross inefficiencies in the delivery of government services and a consequent trust deficit.
    • Digital public goods spread speed, transparency, ease and productivity across the individual-government-market ecosystem and enhance inclusivity, equity and development at scale.
    • Acceptance in emerging economies: India’s digital diplomacy will be beneficial to and welcomed by, all emerging economies from Peru to Polynesia, from Uruguay to Uganda, and from Kenya to Kazakhstan.
    • Goodwill: It will enable quick, visible and compounding benefits for India’s partner countries and earn India immense goodwill.

    Benefits of Digital diplomacy

    • Reusability: The code is highly reusable
    • Low cost: The cost of setting up an open source-based high school online educational infrastructure, to supplement the physical infrastructure, for an entire country is less than laying two kilometres of high-quality road.
    • No debt trap: The investments required for transporting digital public goods are minuscule in comparison and there is no chance of a debt trap.
    • Short gestation period: Unlike physical infrastructures such as ports and roads, digital public goods have short gestation periods and immediate, and visible impact and benefits.
    • It plugs leaks: Digital infrastructure plugs leaks.
    • It eliminates ghost beneficiaries of government services, removes touts collecting rent, creates an audit trail, makes the individual-government-market interface transparent and provides efficiencies that help recoup the investments quickly.
    • Processes get streamlined and wait times for any service come down dramatically.
    • Increases productivity: Productivity goes up and services can be scaled quickly.
    • Benefits can be rapidly extended to cover a much larger portion of the population.
    • Compounding instead of depreciation: Above all, the digital public goods infrastructure compounds while physical infrastructure depreciates.

    Three ways in which digital public goods infrastructure compound

    • Compounding happens for three reasons.
    • [1] Growth of technologyy: Chips keep becoming faster, engines more powerful, and gene-editing technology keeps improving.
    • [2] Network effect: As more and more people use the same technology, the number of “transactions” using that technology increase exponentially — be it Facebook posts or UPI transactions.
    • [3] Rapid creation of new layers of technology: For example, the hypertext protocol created the worldwide web.
    • Then the browser was built on top of it, which made the worldwide web easier to navigate and more popular.
    • Thousands of new layers were added to make it what it is today.
    • Growth of UPI in India: To give an example, consider the surge in UPI-based payments in India.
    • This kind of growth doesn’t happen with a few entitled and privileged people using UPI more and more; it happens with more and more people using UPI more and more.
    • Use of Diksha: The use of Diksha, the school education platform built on the open-source platform Sunbird, has followed the same trajectory — today close to 500 million schoolchildren are using it.

    Conclusion

    Made in India digital tools can help other emerging economies deal with economic, governance challenges.

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