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

  • [22nd March 2025] The Hindu Op-ed: Charting a route for IORA under India’s chairship

    PYQ Relevance:

    Question: Do you think that BIMSTEC is a parallel organisation like the SAARC? What are the similarities and dissimilarities between the two? How are Indian foreign policy objectives realized by forming this new organisation? (2022)

    Reason: This question explores India’s engagement with other regional groupings. India’s experience with BIMSTEC, its objectives, and the lessons learned in fostering regional cooperation can inform its approach and strategy as the chair of IORA. It also touches upon how India uses multilateral platforms to achieve its foreign policy goals, a key aspect of its IORA leadership.

     

    Mentor’s Comment: The Indian Ocean Rim Association (IORA) held its Council of Ministers (COM) meeting in Colombo on October 11, 2024, with the theme “Reinforcing Indian Ocean Identity.” Foreign ministers and senior officials from its 23 member countries attended the event. In 2024, many other countries, especially “dialogue partners” or those wanting to join as dialogue partners, showed great interest in the organization. IORA, founded 26 years ago, is believed to have been an idea originally proposed by former South African President Nelson Mandela.

    Today’s editorial discusses issues related to the Indian Ocean Rim Association (IORA) and India’s role in it, which is useful for GS Paper 2 in International Relations.

    _

    Let’s learn!

    Why in the News?

    New Delhi should create a strong base for effective governance that works at the local level and brings real impact.

    What are the key priorities for India as it prepares to chair the Indian Ocean Rim Association (IORA)?

    • Enhancing Funding Opportunities: India can engage private sector players like shipping companies (Maersk, Adani Ports), oil & gas firms (ONGC, Reliance), and marine tourism operators to contribute financially to IORA’s initiatives.
    • Strengthening Maritime Security & Safety: Expanding India’s Information Fusion Centre – Indian Ocean Region (IFC-IOR) in Gurugram to enhance real-time maritime surveillance and counter threats like piracy, illegal fishing, and trafficking.
    • Integrating Technology for Data Management & Policy Analysis: Promoting AI-driven marine data analytics to track ocean health, predict climate change impacts, and improve fisheries management across IORA nations.
    • Developing Maritime Education & Skill-Based Training: Partnering with institutions like IIT-Madras and NIOT (National Institute of Ocean Technology) to create specialized courses in marine economy, deep-sea exploration, and coastal governance.
    • Strengthening Blue Economy & Sustainable Practices: Collaborating with Australia for marine research, UAE for investment in sustainable fisheries, and Seychelles for traditional knowledge on marine conservation to develop eco-friendly economic growth models.

    Why is funding a major challenge for IORA? 

    • Dependence on Member Contributions: IORA’s budget is primarily dependent on contributions from its 23 member states, most of which are developing economies. For example, Only a few countries like Singapore, UAE, and France have the financial capability to contribute significantly, while others struggle to meet commitments.
    • Limited Private Sector Involvement: IORA lacks strong partnerships with private enterprises, which could provide alternative funding sources. For example, Industries related to shipping, oil & gas, fisheries, and marine tourism are key players in the region but are not formally involved in IORA’s funding model.
    • Comparatively Small Budget: IORA’s total annual budget is just a few million dollars, making it insufficient for large-scale maritime security, climate resilience, and economic development projects. For example, The Indian Ocean Commission (IOC), despite having only five members, has a $1.3 billion budget (2020-25)—significantly larger than IORA’s budget.
    • Expanding Scope of Activities: IORA is expanding into maritime safety, disaster management, technology, and blue economy initiatives, all of which require resource-intensive investments. For example, Implementing maritime surveillance systems and disaster risk management programs demands consistent funding, which is currently lacking.
    • Lack of a Dedicated Fundraising Mechanism: Unlike organizations like the ASEAN Development Fund, IORA does not have a structured mechanism to raise funds through external donors, financial institutions, or international aid agencies. For example, ASEAN collaborates with ADB (Asian Development Bank) and the World Bank for project funding, while IORA lacks such institutional financial backing.

    How can it be addressed?

    • Diversifying Funding Sources: IORA should explore alternative funding mechanisms such as public-private partnerships (PPPs), external grants, and contributions from international financial institutions. Example: ASEAN collaborates with the Asian Development Bank (ADB) and the World Bank for project funding, which IORA can emulate.
    • Enhancing Private Sector Engagement: Establish formal partnerships with shipping, energy, fisheries, and tourism industries to attract investment in key maritime projects. Example: Creating an IORA Business Forum to facilitate corporate sponsorships and private sector-driven development projects.
    • Setting Up a Dedicated IORA Development Fund: Establish a structured IORA Development Fund where member states, international donors, and regional banks contribute for long-term sustainability. Example: The ASEAN Development Fund (ADF) pools resources for regional projects, which IORA can replicate to support blue economy and maritime security initiatives.
    • Strengthening Bilateral and Multilateral Cooperation: Strengthen financial partnerships with G20 economies, UN agencies, and regional economic blocs to access technical and financial assistance. Example: IORA can seek support from India’s Development Partnership Administration (DPA) or Japan’s Official Development Assistance (ODA) for infrastructure and capacity-building programs.
    • Implementing a Tiered Membership Contribution Model: Introduce a differentiated contribution system where larger economies contribute more while smaller nations have flexible or in-kind contributions. Example: Organizations like the International Maritime Organization (IMO) use GDP-based contribution tiers to ensure fair burden-sharing among members.

    India’s Role in IORA – Timeline of Key Initiatives

    How does the Indian Ocean Region contribute to global trade and economic activities?

    • Major Trade and Energy Corridor: The Indian Ocean facilitates 75% of global maritime trade and 50% of daily oil consumption, making it a critical route for global commerce. The Strait of Malacca, Bab-el-Mandeb, and the Strait of Hormuz are key chokepoints for oil and goods transportation.
    • Rich Blue Economy and Marine Resources: The region generates $1 trillion in goods and services, including fisheries, aquaculture, and seabed resources. India, Indonesia, and Thailand have thriving fishing industries, while Mozambique and Madagascar are rich in offshore gas reserves.
    • Strategic Economic Hubs and Ports: Major ports like Singapore, Mumbai, Colombo, and Dubai serve as global transhipment and logistics hubs, driving regional and global trade. Gwadar (Pakistan) and Hambantota (Sri Lanka) are being developed as part of strategic maritime infrastructure projects.

    Where can India leverage its strengths and partnerships to enhance IORA’s governance and effectiveness?

    • Maritime Security and Disaster Resilience: India can take the lead in strengthening maritime surveillance, anti-piracy measures, and disaster preparedness in the Indian Ocean region. Example: India’s Information Fusion Centre – Indian Ocean Region (IFC-IOR) can be expanded to assist IORA members in real-time maritime domain awareness.
    • Capacity Building and Skill Development: India can offer training programs, scholarships, and technical assistance to IORA members in areas like blue economy, digital governance, and climate adaptation. Example: The Indian Technical and Economic Cooperation (ITEC) program can be expanded to provide skill development for professionals from IORA nations.
    • Sustainable Blue Economy Initiatives: India can collaborate with IORA countries to promote marine biotechnology, sustainable fisheries, and ocean-based renewable energy. Example: India’s Deep Ocean Mission and expertise in offshore wind energy can be shared with IORA nations for sustainable development.
    • Trade and Connectivity Infrastructure: India can enhance regional trade and connectivity through port modernization, maritime logistics, and blue economy-driven trade facilitation. Example: The Sagarmala Project can be leveraged to assist IORA nations in upgrading port infrastructure and coastal shipping networks.
    • Multilateral Partnerships and Development Finance: India can work with Quad, G20, BRICS, and ASEAN to secure additional funding and policy coordination for IORA’s initiatives. Example: India’s leadership in the Coalition for Disaster Resilient Infrastructure (CDRI) can be extended to help IORA nations build climate-resilient maritime infrastructure.

    Way forward: 

    • Institutional Strengthening & Financial Sustainability: IORA should establish a dedicated development fund, diversify revenue streams through public-private partnerships, and enhance cooperation with global financial institutions like the World Bank and ADB to ensure long-term financial stability.
    • Strategic & Inclusive Engagement:  India must promote technology-driven governance, capacity-building initiatives, and regional connectivity projects while fostering multilateral partnerships with ASEAN, Quad, and BRICS to enhance IORA’s strategic relevance and effectiveness.

  • India and the Arctic

    Why in the News?

    The Russian Ambassador to India recently stated that Russia views India’s interest in the Arctic as a “stabilizing factor.”

    India-Russia Collaboration in the Arctic

    India and Russia have strengthened their cooperation in the Arctic, focusing on scientific research, energy resources, and shipping routes:

    • Energy Resources: Joint ventures in Arctic oil and gas extraction, particularly in the Dolginskoye oil field and Vostok oil cluster.
    • Northern Sea Route (NSR): India and Russia are working to improve shipping through the NSR, aiming to reduce shipping costs and improve connectivity.

    About India’s Arctic Policy

    • India’s Arctic Policy was launched by the Ministry of Earth Sciences in 2022, taking a comprehensive approach that involves multiple sectors, including scientific, environmental, economic, and strategic interests.
    • It focuses on sustainability, aiming to protect the environment while exploring opportunities in energy resources, shipping routes, and scientific collaboration.
    • The policy includes 6 key pillars:
    1. Science and Research: Focus on climate change, geosciences, and polar biology.
    2. Climate and Environmental Protection: Ensuring development does not compromise the Arctic ecosystem.
    3. Economic and Human Development: Exploring opportunities in energy extraction and shipping.
    4. Transportation and Connectivity: Enhancing access to Arctic shipping routes.
    5. Governance and International Cooperation: Strengthening ties with international partners like the Arctic Council.
    6. National Capacity Building: Developing expertise in Arctic research and polar navigation.
    • The policy acknowledges the geopolitical dynamics of the Arctic and seeks to balance scientific, economic, and strategic interests.

    India’s Mission to the Arctic

    • India’s Arctic mission began in 2007, with its first research mission focused on microbiology, atmospheric sciences, and geology. India also established its research base, Himadri, in the Arctic in 2008. Recent advancements include:
      • In 2023, India conducted winter expedition in polar night conditions to study climate change, sea-ice dynamics, and ocean circulation.
      • India collaborates with Russia, Norway, and other Arctic nations through research institutes and joint expeditions.
    • India’s focus is on understanding the Arctic’s impact on climate change and its effects on weather patterns, particularly in South Asia.

    Back2Basics: Arctic Council

    • The Arctic Council, established in 1996, is an intergovernmental forum for cooperation among Arctic states.
    • The Council includes 8 Arctic countries and permanent participants from indigenous Arctic communities. Its focus is on environmental protection, sustainable development, and scientific research.
    • India has been an observer since 2013, contributing to scientific research, climate change discussions, and policy frameworks.
    • The Council’s activities were suspended in 2022 due to rising tensions from militarization by NATO countries.
      • Despite this, India continues to engage constructively with the Council.
    • India’s participation in the Arctic Council highlights the global importance of Arctic issues, particularly regarding climate change and energy security.

     

    PYQ:

    [UPSC 2015] The term ‘IndARC’, sometimes seen in the news, is the name of:

    (a) an indigenously developed radar system inducted into Indian Defence

    (b) India’s satellite to provide services to the countries of Indian Ocean Rim

    (c) a scientific establishment set up by India in Antarctic region

    (d) India’s underwater observatory to scientifically study the Arctic region

    [UPSC 2018] Why is India taking keen in resources of Arctic region?

    [UPSC 2015] What are the economic significances of discovery of oil in Arctic Sea and its possible environmental consequences?

     

  • Indo-Pacific Oceans Initiative (IPOI)

    Why in the News?

    New Zealand has expressed its willingness to join the Indo-Pacific Oceans Initiative (IPOI).

    About Indo-Pacific Oceans Initiative (IPOI)

    • India launched the IPOI at the East Asia Summit in November 2019 to promote cooperation for a free, open, and rules-based Indo-Pacific.
    • The initiative aims to strengthen maritime security, stability, and development in the region by fostering multilateral engagement among Indo-Pacific nations.
    • It builds on India’s Security and Growth for All in the Region (SAGAR) vision, which emphasizes the importance of collaborative efforts in regional maritime governance.
    • The IPOI operates as a voluntary, non-treaty-based arrangement, relying on existing frameworks like the EAS mechanism, ensuring flexibility and adaptability in cooperation.
    • The IPOI is structured around 7 key pillars, with specific countries taking the lead in each area:
    1. Maritime Security: UK and India
    2. Maritime Ecology: Australia and Thailand
    3. Maritime Resources: France and Indonesia
    4. Capacity Building and Resource Sharing: Germany
    5. Disaster Risk Reduction and Management: India and Bangladesh
    6. Science, Technology, and Academic Cooperation: Italy and Singapore
    7. Trade, Connectivity, and Maritime Transport: Japan and the US

    Mandate of IPOI:

    • The IPOI seeks to establish a rules-based regional order in the Indo-Pacific, facilitating the free movement of goods, services, and people while respecting the sovereignty of nations.
    • The initiative enhances regional maritime security by fostering cooperation among countries to tackle shared challenges such as piracy, illegal fishing, smuggling, and other maritime crimes.
    • IPOI aims to boost regional capacity for disaster risk reduction and management, encouraging collaboration on disaster preparedness and response, thus minimizing the effects of natural disasters.
    • As a non-treaty, voluntary initiative, IPOI offers flexibility, allowing nations to participate according to common interests without adding new institutional responsibilities.
    PYQ:
    [UPSC 2011]     The strategic significance of South-East Asia lies in its:
    (a) It was the hot theatre during the Second World War.
    (b) Its location between the Asian powers of China and India.,
    (c) It was the arena of superpower confrontation during the Cold War period.,
    (d) Its location between the Pacific and Indian Oceans and its preeminent maritime character.

     

  • 30th Session of International Seabed Authority (ISA)

    Why in the News?

    The 30th Session of the International Seabed Authority (ISA) has officially commenced in Kingston, Jamaica, on March 17, 2025.

    About the International Seabed Authority (ISA)

    • ISA is an autonomous international organization created under the 1982 United Nations Convention on the Law of the Sea (UNCLOS) and the 1994 Agreement relating to Part XI of the UNCLOS.
    • It regulates and manages mineral-resource activities in the “Area”—the seabed and ocean floor beyond national jurisdictions.
    • It is headquartered in Kingston, Jamaica
    • It has 168 Member States, including India, and the European Union
    • Mandate:
      • Regulate exploration and exploitation of deep-sea minerals.
      • Protect the marine environment from harmful effects of seabed activities.
      • Encourage marine scientific research and promote the sustainable use of oceans.
    • The ISA manages about 54% of the world’s oceans, ensuring activities are carried out for the benefit of all humankind and to protect the marine environment.

    Role in Regulating Deep-Sea Mining

    The ISA is responsible for enforcing the Mining Code, which governs all mineral activities in the International Seabed Area. It includes:

    • Regulation of Exploration: Grants exploration licenses for assessing mineral deposits in deep-sea areas, ensuring scientifically responsible activities.
    • Environmental Protection: Sets environmental standards and ensures impact assessments before mining starts.
    • Development of Mining Code: Continuously updates the Mining Code to address scientific, technological, and environmental concerns.
    • Oversight and Compliance: Monitors activities of contractors and member states, ensuring regulatory compliance and environmental safeguards.

    India and ISA

    • In January 2024, India submitted two exploration applications in the Indian Ocean for:
      • Polymetallic sulphides in the Carlsberg Ridge.
      • Cobalt-rich ferromanganese crusts in the Afanasy-Nikitin Seamount.
    • India holds two active exploration contracts for polymetallic nodules and sulphides in the Central Indian Ocean Basin and Ridge.
    • India seeks access to critical minerals for energy transition and technological growth, balancing economic needs with sustainable practices.
    • India actively participates in Mining Code negotiations, aligning its actions with international legal standards and environmental protocols.

    PYQ:

    [UPSC 2021] Consider the following statements:
    1. The Global Ocean Commission grants licences for seabed exploration and mining in international waters.
    2. India has received licences for seabed mineral exploration in international waters
    3. ‘Rare earth minerals’ are present on the seafloor in international waters.
    Which of the statements given above are correct?
    (a) 1 and 2 only
    (b) 2 and 3 only
    (c) 1 and 3 only
    (d) 1, 2 and 3

     

  • Five Eyes Alliance (FVEY)

    Why in the News?

    Recently a White House official has proposed expelling Canada from the Five Eyes intelligence-sharing alliance. This comes as Donald Trump pressures Canada, even suggesting it could be transformed into the 51st U.S. state.

    About the Five Eyes Alliance (FVEY):

    • The FVEY is a global intelligence-sharing network comprising 5 Anglosphere countries: Australia, Canada, New Zealand, United Kingdom, and the United States.
    • Established in 1946 following the UKUSA Agreement between the United States and the United Kingdom, it is one of the most secretive and influential alliances in global intelligence and security.
    • The alliance primarily focuses on sharing intelligence, especially signals intelligence (SIGINT), and collaborates on security matters like counterterrorism, cybersecurity, and geopolitical monitoring.
    • It plays a pivotal role in global surveillance programs, such as ECHELON, and is a key player in shaping international intelligence policy.
    • Members of the FVEY:
      1. Australia: Plays a key role in monitoring the Asia-Pacific region and contributes to SIGINT and cybersecurity efforts.
      2. Canada: Contributes significantly to global communications intelligence, focusing on networks and signals intelligence.
      3. New Zealand: Has a relatively reserved role but provides valuable intelligence, particularly in the Pacific region.
      4. United Kingdom: Works closely with the United States and is instrumental in intelligence gathering across Europe and the Middle East.
      5. United States: The largest contributor of intelligence, particularly in global SIGINT, and leads the alliance in intelligence operations.
    • Mandate:
      • The Five Eyes primarily focuses on intelligence sharing, especially signals intelligence (intercepted communications, satellite data, etc.), but has expanded to include human intelligence (HUMINT), geospatial intelligence (GEOINT), and cybersecurity.
      • The alliance works on global surveillance programs, collecting data on adversarial governments, counterterrorism efforts, and counterintelligence operations.
      • A key principle of the alliance is the “no third-party rule,” meaning intelligence shared among member countries is not passed on to non-member states without permission.

    PYQ:

    [2020] “Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss.”

     

  • India, New Zealand resume trade deal talks after decade

    Why in the News?

    After nearly 10 years, India and New Zealand have resumed talks on a free trade agreement (FTA) to strengthen economic relations.

    What is the main objective of resuming India-New Zealand FTA negotiations?

    • Enhancing Market Access & Trade Growth: The FTA aims to expand trade opportunities by reducing tariffs and trade barriers. Example: Bilateral trade surpassed USD 1 billion (April-January 2025), highlighting the potential for further growth.
    • Strengthening Supply Chain Integration: The agreement seeks to improve logistics and supply chain efficiency between the two countries. Example: New Zealand’s dairy and agricultural products could find structured entry into India, while India’s IT and pharmaceutical sectors could benefit from easier access to the New Zealand market.
    • Boosting Investment & Business Opportunities: The FTA will help attract investments and foster job creation in sectors like IT, services, and agriculture. Example: India seeks better mobility for skilled professionals, benefiting industries like software services and engineering.

    Why did the India-New Zealand trade talks stall in 2015?

    • Disagreements Over Dairy Market Access: New Zealand demanded greater access to India’s dairy market, but India resisted to protect its millions of dairy farmers. Example: India’s dairy imports from New Zealand were minimal (~$0.57 million), and India remained firm against allowing raw dairy imports.
    • Tariff Reduction Challenges: New Zealand had a low average tariff of 2.3%, while India had a higher average tariff of 17.8%, making tariff reductions challenging. Example: India was reluctant to lower tariffs on New Zealand’s dairy, meat, and wine exports, fearing a negative impact on domestic industries.
    • Limited Gains for India in Goods Trade: Since New Zealand already had low tariffs and duty-free access for many goods, India saw fewer advantages in an FTA. Example: Indian exports such as textiles, apparel, and pharmaceuticals already had significant access to the New Zealand market.
    • Concerns Over Skilled Labor Mobility: India wanted easier movement of skilled professionals in IT and services, but New Zealand was hesitant. Example: India sought better visa provisions for IT and engineering professionals, which faced resistance.
    • External Trade Pressures: India faced pressure from other countries like the U.S. to open its dairy and agricultural sectors, complicating negotiations. Example: Allowing New Zealand’s dairy products could have set a precedent for other trade partners demanding similar concessions.

    How does the tariff disparity between India and New Zealand pose a challenge to the negotiations?

    • Significant Difference in Average Tariff Rates: New Zealand’s average import tariff is only 2.3%, with over half of its tariff lines duty-free, while India’s average tariff stands at 17.8%. Example: Indian goods already have substantial access to the New Zealand market, making a traditional FTA less beneficial for India.
    • Limited Market Access Gains for India: Since New Zealand already imposes low or no tariffs on many products, India’s exporters may not gain significant new access. Example: Sectors like textiles, pharmaceuticals, and auto components already enter New Zealand with minimal restrictions, reducing the FTA’s potential benefits for India.
    • Pressure on India to Lower Tariffs on Sensitive Sectors: New Zealand is pushing for tariff reductions on dairy, meat, and wine exports, but India is reluctant to protect domestic farmers and industries. Example: India’s dairy sector supports millions of small farmers, making it difficult to allow imports that could undercut local production.
    • Imbalance in Reciprocal Concessions: If India significantly lowers its tariffs, New Zealand would gain more than India, creating an imbalance in trade benefits. Example: India would have to make greater tariff cuts, while New Zealand’s market access would remain largely unchanged.
    • Potential Precedent for Other Trade Partners: If India agrees to major tariff cuts for New Zealand, other countries in future FTAs may demand similar concessions, complicating trade policy. Example: Countries like Australia, the EU, and the U.S. could push India to open up its agriculture and dairy sectors, which India has traditionally protected.

    Way forward: 

    • Balanced Trade Concessions & Sectoral Safeguards: India and New Zealand should explore sector-specific agreements rather than blanket tariff reductions. Example: India can allow limited access to value-added dairy products while ensuring safeguards for domestic farmers. Similarly, New Zealand can offer better terms for India’s IT and services sector.
    • Enhanced Collaboration in Non-Tariff Areas: Both nations should focus on investment facilitation, technology exchange, and regulatory cooperation to maximize mutual benefits beyond tariff cuts. Example: Joint ventures in agritech, renewable energy, and pharmaceuticals can create new trade opportunities without tariff-related conflicts.

    Mains PYQ:

    Q Critically analyse India’s evolving diplomatic, economic and strategic relations with the Central Asian Republics (CARs) highlighting their increasing significance in regional and global geopolitics. (2024)

    Reason:  It highlights the importance of analyzing India’s evolving economic relations with other regions, which is similar to the context of resuming talks with New Zealand.

  • [15th March 2025] The Hindu Op-ed: Modern day summitry, its perils and its prospects

    PYQ Relevance:

    Q)  The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.’ Explain this statement with examples. (2023)

    Mentor’s Comment: This question focused on India’s strategic positioning and alliances with the West, relates to the broader context of high-level summit diplomacy and strategic interactions between nations

    A strong leader is often seen as someone who holds significant power, shaping both government policies and their political party. This leadership style is debated, but many agree it can be useful in politics and diplomacy. Leaders like Donald Trump and Narendra Modi are considered strong leaders. Both actively engage in summit diplomacy, which has both advantages and risks. While decisive leadership can bring benefits, relying too much on personal judgment can lead to problems. Despite these challenges, summit diplomacy has become a key tool for powerful leaders in handling major global issues like war and peace.

    Today’s editorial highlights the importance of summit diplomacy and the key traits of a strong leader. This topic is useful for GS Paper 2 in the UPSC Mains exam.

    _

    Let’s learn!

    Why in the News?

    Despite unplanned meetings like Trump’s, summit diplomacy will remain important in global relations.

    What are the key characteristics of a “strong leader” in the context of modern politics and diplomacy?

    • Centralization of Power: A strong leader often consolidates power, making key policy and political decisions with minimal consultation. Example: Vladimir Putin’s centralized control over Russian politics and military decisions.
    • Assertive Foreign Policy and Summit Diplomacy: They engage directly in high-profile diplomatic negotiations, often prioritizing personal rapport over traditional diplomatic channels. Example: Donald Trump’s direct summits with Kim Jong-un to negotiate North Korea’s nuclear program.
    • Image Building and Popular Appeal: They craft a strong public persona through rhetoric, social media, and large-scale events to project authority and national pride. Example: Recep Tayyip Erdoğan’s use of mass rallies and media control to consolidate power in Turkey.
    • Decisive but Controversial Decision-Making: They make bold decisions, sometimes bypassing institutional checks, which can lead to both positive reforms and authoritarian tendencies. Example: Xi Jinping’s removal of term limits in China, allowing him to rule indefinitely.
    Why is summit diplomacy considered both beneficial and problematic in resolving international conflicts?

    Benefits of summit diplomacy: 

    • Direct and Efficient Decision-Making: Summits allow leaders to bypass bureaucratic delays and make high-stakes decisions quickly. Example: The Cuban Missile Crisis (1962) saw U.S. President John F. Kennedy and Soviet Premier Nikita Khrushchev negotiate directly, preventing nuclear war.
    • Confidence-Building and Diplomatic Trust: Face-to-face interactions help build mutual trust and diplomatic relationships between nations. Example: The Reagan-Gorbachev Summits (1985-1988) played a key role in reducing Cold War tensions and leading to nuclear arms reduction.
    • Breakthroughs in Long-Standing Disputes: Summit diplomacy has resolved historical disputes that traditional diplomacy failed to address. Example: The Camp David Accords (1978) led to peace between Egypt and Israel after decades of hostility.
    • Symbolic and Strategic Value: High-profile summits reinforce a country’s global leadership and strategic partnerships. Example: The Singapore Summit (2018) between Donald Trump and Kim Jong-un, which temporarily reduced tensions on the Korean Peninsula.
    • Crisis Management and De-escalation: Summits provide a platform for crisis diplomacy, helping to prevent conflicts from escalating into full-scale wars. Example: The Dayton Accords (1995) ended the Bosnian War by bringing together leaders of Bosnia, Croatia, and Serbia for direct negotiations.

    Problems of summit diplomacy: 

    • Risk of Superficial Agreements: Leaders often prioritize political optics over substantive solutions, leading to vague or unenforceable agreements. Example: The Minsk Agreements (2014-2015) aimed at resolving the Ukraine conflict but lacked effective implementation mechanisms.
    • Personal Egos and Power Imbalances: Strong-willed leaders may focus more on personal victories rather than genuine conflict resolution. Example: The Trump-Zelenskyy Summit (2025), where public confrontations and political grandstanding overshadowed meaningful negotiations on Ukraine.

    How did the Trump-Zelenskyy exchanges highlight the complexities and risks of pseudo-summit diplomacy?

    • Blurred Lines Between Diplomacy and Personal Interests: Instead of focusing purely on state interests, pseudo-summit diplomacy can be influenced by personal or political gains. Example: The Trump-Zelenskyy phone call (2019) became controversial when Trump allegedly pressured Zelenskyy to investigate Joe Biden’s son, intertwining diplomacy with U.S. domestic politics.
    • Lack of Institutional Safeguards: Informal or direct leader-to-leader diplomacy can bypass traditional diplomatic channels, reducing oversight and accountability. Example: The absence of career diplomats in the Trump-Zelenskyy exchanges led to concerns over improper diplomatic conduct and potential abuse of power.
    • Vulnerability to Misinformation and Manipulation: Without structured diplomatic engagement, such interactions can be misused for propaganda or misinterpreted in ways that escalate tensions. Example: The impeachment inquiry against Trump was fueled by the whistleblower complaint alleging that the U.S. was leveraging military aid for political favors.

    What should India learn from this? (Way forward)

    • Institutionalize Diplomatic Processes: Informal leader-to-leader diplomacy should not replace structured diplomatic engagement involving foreign service professionals.
      • India should prioritize institutional mechanisms (e.g., MEA-led negotiations) to ensure consistency and avoid undue political influence in international relations.
    • Avoid Mixing Domestic Politics with Foreign Policy: Diplomatic engagements must remain separate from electoral or partisan interests to maintain credibility.
      • India must ensure that foreign policy decisions are not dictated by short-term political gains and avoid using international diplomacy for domestic political narratives.
    • Strengthen Transparency and Accountability: Diplomatic engagements should be conducted with oversight to prevent misuse or misinterpretation.
      • India should continue using parliamentary committees and professional diplomats to maintain transparency and avoid secretive deals that could lead to unintended consequences.

  • Resolving the vexatious Fishing dispute

    Why in the News?

    Last week, Bimal Rathnayake, the Leader of the House in Sri Lanka’s Parliament and the country’s Transport and Highways Minister, urged the Indian and Tamil Nadu governments to take strong action against illegal fishing in Sri Lankan waters.

    How do domestic factors in both India and Sri Lanka influence their respective foreign policies concerning the fishing dispute?

    For India: 

    • Livelihood Dependency and Economic Pressure: Thousands of fishermen in Tamil Nadu and Puducherry rely on fishing in the Palk Bay for their livelihoods. Limited fishing zones and declining fish stocks in Indian waters push them into Sri Lankan territory.
      • Example: Fishermen from districts like Ramanathapuram and Nagapattinam regularly cross the International Maritime Boundary Line (IMBL) due to insufficient catch within Indian waters.
    • Political and Electoral Pressures: Tamil Nadu’s regional parties, such as the DMK and AIADMK, often raise the fishing dispute to secure voter support, pressuring the central government to prioritize the issue in foreign policy.
      • Example: Before elections, Tamil Nadu politicians routinely demand stronger diplomatic efforts to release Indian fishermen detained by the Sri Lankan Navy.
    • Legal and Regulatory Constraints: Indian regulations, like the Tamil Nadu Marine Fishing Regulation Act (1983), restrict the use of mechanized boats close to the shore, limiting fishing areas and driving fishermen toward Sri Lankan waters.
      • Example: The 1983 Act bans trawling within three nautical miles of the Indian coastline, making deeper Sri Lankan waters more attractive despite the legal risks.

    For Srilanka: 

    • Protection of Northern Province Fishermen’s Livelihoods: Sri Lankan Tamil fishermen in the Northern Province rely on traditional fishing methods and face competition from Indian trawlers, which threatens their livelihoods.
    • Post-Civil War Economic Recovery: The Northern Province, which was heavily affected by the civil war, is still recovering economically. Safeguarding local fishing areas is seen as vital for the region’s rehabilitation and economic stability.
      • Example: The Sri Lankan government prioritizes protecting fishing zones to support the economic revival of communities affected by the civil war.
    • Political and Nationalist Sentiments: There is domestic pressure on the Sri Lankan government to take a strong stance against perceived violations of territorial waters, especially from nationalist groups and local political parties.
      • Example: In 2015, then-Prime Minister Ranil Wickremesinghe defended the Sri Lankan Navy’s actions against Indian fishermen, reflecting nationalist sentiments on protecting maritime boundaries.

    Why is resolving the “festering Palk Bay sheries dispute” considered crucial for the Tamil-speaking fishermen of Sri Lanka’s Northern Province?

    • Protection of Livelihoods: Tamil-speaking fishermen in Sri Lanka’s Northern Province depend on local marine resources for their survival. Illegal fishing by Indian trawlers reduces fish stocks, threatening their primary source of income.
      • Example: Frequent incursions by Indian fishermen using bottom trawling disrupt the local fishing economy, making it difficult for Sri Lankan fishermen to sustain their livelihoods.
    • Environmental Sustainability: Bottom trawling by Indian fishermen causes severe damage to marine ecosystems, affecting fish breeding and long-term marine biodiversity.
      • Example: The destruction of fish habitats due to bottom trawling reduces future fish yields, directly impacting the sustainability of fishing communities in the Northern Province.
    • Socio-Economic Recovery Post-Civil War: The Northern Province is still recovering from the socio-economic impacts of Sri Lanka’s civil war. Protecting their fishing waters is vital for long-term economic stability and community rebuilding.
      • Example: Ensuring exclusive access to local waters helps these communities rebuild their economy and strengthens their post-war rehabilitation efforts.

    What role can India play in resolving the Palk Bay fishing dispute? (Way forward)

    • Promoting Sustainable Fishing Practices: India can encourage and support its fishermen to adopt sustainable fishing methods, reducing the harmful impact of bottom trawling in Sri Lankan waters.
      • Example: Expanding the Palk Bay deep-sea fishing scheme and integrating it with the Pradhan Mantri Matsya Sampada Yojana can help Indian fishermen transition to deep-sea fishing, reducing pressure on the Palk Bay region.
    • Facilitating Bilateral Talks: India can work with Sri Lanka to resume and mediate talks between fishermen from both countries, fostering dialogue and finding mutually beneficial solutions.
      • Example: India previously supported fishermen-level talks in 2016, which allowed both sides to voice concerns and seek collaborative solutions. Restarting such discussions can ease tensions.
    • Strengthening Legal and Diplomatic Cooperation: India can strengthen legal frameworks and diplomatic channels to enforce maritime boundaries while ensuring the protection of its fishermen’s rights.
      • Example: The Joint Working Group on Fisheries (established in 2016) provides a platform for both governments to discuss and implement measures to prevent illegal fishing and resolve disputes amicably.

    Mains PYQ: 

    Q In respect of India-Sri Lanka relations, discuss how do mestic factors influence foreign policy. (2013)

  • [11th March 2025] The Hindu Op-ed: An India-U.S. trade agreement and the test of WTO laws

    PYQ Relevance:

    Q)  Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (UPSC CSE 2020)

     

    Mentor’s Comment: UPSC mains have always focused on the Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc  (2020) and WTO has to survive in the present context of ‘Trade War’ (2018).

    During Prime Minister Narendra Modi’s U.S. visit on February 13, 2025, India and the U.S. agreed to begin talks on a multi-sector Bilateral Trade Agreement (BTA) by fall 2025. As both countries are WTO members, the agreement must follow WTO rules. While details remain unclear, the agreement’s content matters more than its label.

    Today’s editorial discusses how the ongoing Bilateral Trade Agreement (BTA) negotiations may affect both countries. This information is useful for GS Paper 3 in the UPSC Mains exam.

    _

    Let’s learn!

    Why in the News?

    Since both the U.S. and India are members of the World Trade Organization, their trade agreements must follow WTO rules.

    What are the key legal challenges India and the U.S. may face while negotiating a Bilateral Trade Agreement (BTA) under WTO law?

    • Violation of the Most Favoured Nation (MFN) Principle: WTO law mandates that any trade advantage granted to one member must be extended to all members (Article I of GATT). A BTA providing preferential tariffs only to India or the U.S. may violate this principle.
      • Example: If the U.S. lowers tariffs on Indian textiles under the BTA without extending the same benefit to other WTO members like China, it breaches the MFN principle.
    • Meeting the “Substantially All Trade” Requirement: Article XXIV.8(b) of GATT requires that Free Trade Agreements (FTAs) must cover “substantially all trade.” A limited-scope BTA focusing only on select sectors (e.g., pharmaceuticals or agriculture) may not satisfy this condition.
      • Example: If the India-U.S. BTA only includes technology and defense products while excluding key areas like agriculture, it may not qualify as a valid FTA under WTO law.
    • Notification and Transparency Obligations: WTO members must notify the organization of any new regional trade agreements (RTAs) or BTAs and demonstrate compliance with Article XXIV of GATT. Failure to provide transparent schedules may lead to legal disputes.
      • Example: If India and the U.S. do not submit a clear implementation timeline for tariff reductions under an interim BTA, other WTO members could challenge the agreement.
    • Bound Tariff Commitments: Both countries have pre-committed to maximum tariff limits (bound tariffs) under WTO rules. Any preferential treatment exceeding these limits may violate their commitments.
      • Example: If India agrees to reduce tariffs on American agricultural imports below its bound tariff rates, it could be accused of breaching its WTO commitments.
    • Misuse of the “Interim Agreement” Clause: Article XXIV.5 allows “interim agreements” only if they lead to a full FTA within a reasonable period (usually 10 years). Using an interim BTA to delay full liberalization may face legal scrutiny.
      • Example: If the India-U.S. BTA remains a partial agreement for an extended period without progressing toward an FTA, it could be deemed a violation of WTO norms.

    Why is the “most favoured nation” (MFN) principle significant in evaluating the legality of the proposed India-U.S. BTA?

    • Prevents Discrimination Between Trading Partners: The MFN principle under Article I of GATT ensures that any trade advantage (e.g., lower tariffs) given to one WTO member must be extended to all members. A BTA offering exclusive benefits violates this core principle.
      • Example: If the U.S. reduces tariffs on Indian pharmaceuticals but does not extend the same reduction to other countries like Vietnam, it breaches the MFN rule.
    • Limits Preferential Bilateral Deals: WTO law only allows exceptions to the MFN rule through comprehensive trade agreements covering “substantially all trade” under Article XXIV of GATT. A narrowly focused BTA risks legal challenges.
      • Example: If India and the U.S. sign a BTA that only includes high-tech products while excluding major sectors like agriculture, it may not qualify for an MFN exemption.
    • Ensures Transparency and Fair Competition: The MFN principle promotes a transparent, rule-based trading system where no country receives hidden advantages, ensuring fair market access for all WTO members.
      • Example: If India provides exclusive tariff cuts on American dairy products without offering similar terms to New Zealand, it would violate WTO transparency obligations.
    • Prevents Trade Fragmentation: Upholding the MFN principle avoids trade fragmentation by ensuring consistent rules for all members. Bilateral deals that bypass MFN could undermine the multilateral trade system.
      • Example: If the U.S. grants Indian textiles preferential access through a BTA but not to countries like Bangladesh, it could distort global supply chains.
    • Requires WTO Notification and Review: Any departure from the MFN principle through a BTA must be notified to the WTO and subjected to legal scrutiny under Article XXIV to confirm its compliance.
      • Example: If the India-U.S. BTA is not notified to the WTO or lacks a clear transition plan toward an FTA, it may be legally contested by other members like China or the EU.

    How can the proposed BTA be structured as an “interim agreement” under Article XXIV of the GATT without violating WTO norms?

    • Commitment to Full Free Trade Area (FTA) or Customs Union: The BTA must outline a clear plan to eventually form a Free Trade Area (FTA) or Customs Union within a reasonable time frame (generally within 10 years).
      • Example: The India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) started as an interim agreement with the goal of expanding into a broader trade framework.
    • Transparency and Notification to WTO: The parties must notify the WTO of the interim agreement and submit detailed information on trade coverage, timelines, and implementation steps for review by the Committee on Regional Trade Agreements (CRTA).
      • Example: The European Union (EU)-UK Trade and Cooperation Agreement was notified to the WTO during the Brexit transition, ensuring compliance with Article XXIV.
    • Non-Discriminatory Transition: The interim agreement must not create unjustifiable discrimination against other WTO members, and the removal of trade barriers should cover substantially all trade between the parties.
      • Example: The US-Mexico-Canada Agreement (USMCA) complies with this by covering a broad range of goods and services, ensuring that trade barriers are progressively reduced.

    Way forward: 

    • Ensure Comprehensive Coverage and Timely Transition: Design the BTA to cover substantially all trade sectors with a clear roadmap toward a full Free Trade Area (FTA) within the 10-year WTO guideline to comply with Article XXIV.
    • Enhance Transparency and Legal Compliance: Notify the WTO promptly, providing detailed schedules on tariff reductions and implementation timelines, ensuring non-discrimination and regular compliance reviews by the Committee on Regional Trade Agreements (CRTA).

  • India, Mauritius and a visit to deepen long-standing ties

    Why in the News?

    Prime Minister Modi will visit Mauritius on March 11-12, 2025, to strengthen relations with the new government and confirm India’s support for the island’s security and growth.

    What are the key historical and cultural ties between India and Mauritius?

    • Indentured Labor Heritage (1834 Onwards): Nearly 70% of Mauritians are of Indian origin, descendants of indentured laborers brought by the British to work on sugar plantations. Example: The Aapravasi Ghat in Port Louis, a UNESCO World Heritage site, marks the arrival point of Indian laborers.
    • Shared Freedom Struggles: Sir Seewoosagur Ramgoolam, Mauritius’ first Prime Minister, worked closely with Netaji Subhas Chandra Bose during Bose’s stay in London (1919-21). Example: Sir Ramgoolam proofread Bose’s famous book “ The Indian Struggle” and received an autographed copy in appreciation.
    • Linguistic and Cultural Preservation: Various Indian languages, including Bhojpuri, Tamil, Telugu, and Marathi, are actively spoken and preserved through cultural institutions. Example: The Mahatma Gandhi Institute (established in 1976) promotes Indian languages, arts, and culture in Mauritius.
    • Religious and Festival Ties: Hinduism is practiced by over 48% of the population, and Indian festivals like Diwali, Holi, and Thaipusam are widely celebrated. Example: The Ganga Talao (Grand Bassin) pilgrimage site is considered sacred and draws thousands during Maha Shivaratri.
    • Institutional and Diplomatic Links: India actively supports Mauritius through diplomatic and cultural outreach programs. Example: Mauritius hosts the World Hindi Secretariat, which is supported by India to promote the Hindi language globally.

    Why is maritime security cooperation between India and Mauritius crucial? 

    • Strategic Location in the Indian Ocean: Mauritius lies at a key maritime crossroads in the western Indian Ocean, making it vital for monitoring international shipping lanes and securing regional trade. Example: The Colombo Security Conclave (including India, Mauritius, Sri Lanka, Maldives, and Bangladesh) enhances cooperation to ensure maritime safety.
    • Countering China’s Expanding Influence: With China increasing its presence in the Indian Ocean Region (IOR) through infrastructure projects and naval activities, India’s partnership with Mauritius helps balance regional power. Example: India’s Agaléga Island redevelopment supports surveillance and counters China’s maritime ambitions.
    • Securing Exclusive Economic Zones (EEZs): Mauritius has an EEZ of 2.3 million sq. km, rich in marine resources. Collaboration ensures these areas are protected from illegal activities like fishing and piracy. Example: India’s INS Sarvekshak recently completed an ocean survey of 25,000 sq. km in Mauritius’ EEZ to enhance maritime mapping and security.
    • Joint Surveillance and Intelligence Sharing: Surveillance cooperation enhances maritime domain awareness and secures trade routes against piracy, trafficking, and other threats. Example: Mauritius has access to India’s Information Fusion Centre-Indian Ocean Region (IFC-IOR) in Gurugram for real-time maritime intelligence.
    • Humanitarian Assistance and Disaster Relief (HADR): Close maritime ties enable swift disaster response and the delivery of humanitarian aid in times of crisis. Example: India provided naval assistance to Mauritius during the MV Wakashio oil spill disaster in 2020.

    Where has India invested in maritime infrastructure and security cooperation with Mauritius?

    • Agaléga Island Development: India is redeveloping Agaléga Island to establish airstrips and port facilities for joint surveillance and maritime domain awareness. Example: This facility enhances monitoring of maritime traffic and strengthens anti-piracy and anti-smuggling operations.
    • Coastal Radar Surveillance Network: India has installed a network of coastal radar stations in Mauritius to improve maritime security and real-time surveillance of the Indian Ocean Region (IOR). Example: This system helps track illegal maritime activities like smuggling and unauthorized fishing.
    • Access to the Information Fusion Centre (IFC-IOR): India provides Mauritius access to its Information Fusion Centre – Indian Ocean Region (IFC-IOR), which enables intelligence sharing and coordinated maritime operations. Example: Mauritius can monitor maritime traffic, enhancing its ability to protect its Exclusive Economic Zone (EEZ) and respond to emerging threats.

    What role does the Double Taxation Avoidance Agreement (DTAA) play in their economic partnership?

    • Facilitating Foreign Investments: The DTAA between India and Mauritius prevents double taxation on income, encouraging foreign investments to flow through Mauritius into India. Example: As of March 2024, Mauritius remained India’s fourth-largest source of FPI, contributing ₹4.19 lakh crore, accounting for 6% of India’s total FPI of ₹69.54 lakh crore.
    • Strengthening Mauritius as a Financial Hub: The agreement has helped Mauritius become a major international financial centre, particularly for investments into India and African markets. Example: Many private equity and venture capital funds use Mauritius as a base to invest in Indian businesses due to favorable tax treatment.
    • Impact of Treaty Amendments on Investment Flows: In March 2024, India and Mauritius revised the DTAA to include the Principal Purpose Test (PPT), aiming to prevent treaty abuse and tax evasion. Following these amendments, FPIs withdrew ₹8,671 crore from Indian equities in April 2024, reflecting concerns over the revised tax implications.

    Way forward: 

    • Enhance Maritime Security Collaboration: There is a need to strengthen joint surveillance, intelligence sharing, and capacity-building initiatives to secure the Indian Ocean Region (IOR) and safeguard maritime trade routes.
    • Deepen Economic and Financial Cooperation: The Government should adapt the DTAA framework to maintain investor confidence while fostering transparent, sustainable investment flows between the two nations.

    Mains PYQ:

    Q Why was indentured labour taken by the British from India to their colonies? have they been able to preserve their cultural identity over there? (UPSC IAS/2018)