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GS Paper: India & Its Neighborhood – Relations

  • UAE withdraws from Combined Maritime Forces (CMF)

    Central Idea

    The United Arab Emirates (UAE) has announced its withdrawal from the U.S.-led Combined Maritime Forces (CMF), a maritime coalition responsible for securing Gulf waterways crucial to global oil trade.

    What is Combined Maritime Forces (CMF)?

    Establishment 2002
    Location Bahrain
    Objective Promoting security, stability, and prosperity across maritime regions
    Member Nations Over 30 member nations
    Primary Task Forces Combined Task Force 150 (CTF 150), Combined Task Force 151 (CTF 151), Combined Task Force 152 (CTF 152)
    Operations Counter-terrorism, counter-piracy, maritime security, and cooperation
    Collaborations United Nations, European Union, NATO, and regional partners
    Contributions Naval assets including warships, aircraft, and maritime patrol vessels
    Focus Areas Arabian Sea, Gulf of Oman, Gulf of Aden, Red Sea, Indian Ocean, Arabian Gulf, and surrounding areas

     

    Reasons for UAE’s withdrawal

    • UAE has not provided specific reasons for its withdrawal from the Combined Maritime Forces (CMF) in the official statement.
    • One potential factor could be a desire to distance themselves from perceived dependencies or entanglements with the US.
    • This could be part of a broader strategy by the UAE to assert its own regional influence, pursue independent foreign policies, or rebalance its relationships with China and Iran.

    Recent incidents and tensions in Gulf Waters

    • In late April and early May, Iran seized two tankers, one of which was empty and travelling between the UAE ports of Dubai and Fujairah.
    • Iran was also accused of launching a drone attack on an Israeli-owned tanker in November 2022, escalating tensions with the United States.
    • As a response to increasing harassment by Iran, the US announced the deployment of reinforcements to the Gulf, a vital route for a significant portion of the world’s sea-borne oil.

     

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  • Shifting US Policy: From Decoupling to De-risking in China Relations

    china

    Central Idea

    • The US is transitioning its policy on China from decoupling to de-risking, signalling a new approach.
    • The EU has already adopted a de-risking approach in its China policy, and the G-7 summit also expressed consensus on de-risking.

    Understanding the De-risking

    • After establishing diplomatic ties in 1979, the US and China developed a deep economic interdependence, benefiting China’s global engagement.
    • China’s rise challenged US global clout and impacted its domestic industries.
    • The Trump administration initiated a “decoupling” strategy to address the techno-economic challenge from China.
    • The Biden administration continues with a modified approach, shifting from decoupling to de-risking.
    • De-risking focuses on resilient supply chains to ensure the US is not subjected to coercion from other countries.

    Rationale behind De-risking

    • Geopolitical Competition: China’s rise as a strategic competitor challenges US global influence, prompting de-risking to reduce vulnerabilities and maintain an advantage.
    • National Security: Concerns about risks like intellectual property theft and cyber threats lead to de-risking to safeguard sensitive technologies and protect national security interests.
    • Resilient Supply Chains: The COVID-19 pandemic exposed vulnerabilities in supply chains, driving the need for de-risking to ensure diversified and resilient networks.
    • Fair Trade Practices: De-risking addresses concerns over China’s trade practices, such as intellectual property infringement and forced technology transfers, aiming for fairer trade by diversifying partners.
    • Alliance Building: De-risking aligns with allies’ interests, promoting collaboration and a united front against China’s rise.

    Geopolitical Ramifications

    • De-risking for Stronger Alliances: The US adopts de-risking to strengthen alliances in its rivalry with China, as seen in the G-7 summit declaration.
    • China’s Skepticism: China views de-risking as disguised decoupling, shifting blame for risks to China.
    • Aligning with Decoupling and United Front: De-risking aligns with decoupling by diversifying supply chains, while fostering a united front among allies.
    • Uncertain Effectiveness: The effectiveness of de-risking is uncertain, influenced by China’s response and challenges in diversifying supply chains.
    • Short-Term Indo-Pacific Impact: De-risking may temporarily divert focus from the Indo-Pacific, necessitating a balance with maintaining a robust strategy in the region.

    Way forward

    • The de-risking approach should be further developed and coordinated with allies to effectively counter China’s rise.
    • Balancing the benefits of de-risking with the need to maintain a robust Indo-Pacific strategy is crucial.
    • Engaging in strategic dialogues and strengthening alliances can help shape a cohesive approach in addressing China’s influence while minimizing risks.

     

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  • ‘Route of Development’: Iraq’s Ambitious Infrastructure Plan

    iraq development

    Central Idea

    • Iraq aims to establish itself as a regional transportation hub by enhancing its road and rail infrastructure.
    • The ambitious project, known as the “Route of Development,” is estimated to cost $17 billion.

    Route of Development Project

    • Project Scope: The “Route of Development” will span 1,200 kilometers from the northern border with Turkey to the Gulf in the south.
    • Economic Objectives: The project aims to promote a sustainable non-oil economy and strengthen regional connectivity.
    • Port Capacity: The commercial port of Al-Faw will undergo expansion to handle cargo for the project.
    • Train Stations: Around 15 train stations will be constructed along the route, including major cities like Basra, Baghdad, Mosul, and up to the Turkish border.

    Challenges and Priorities

    • Infrastructure Condition: Iraq’s infrastructure, including roads, requires reconstruction and maintenance due to the impacts of war, corruption, and sanctions.
    • Focus on Electricity: Upgrading the failing electricity infrastructure is a priority for the government.

    Geopolitical Position and Economic Benefits

    • Strategic Geographical Location: Iraq aims to capitalize on its position by becoming a transportation hub for goods and people between the Gulf, Turkey, and Europe.
    • Port Expansion: The commercial port of Al-Faw will serve as a gateway for cargo before transportation through the new road and rail links.
    • Train Station Network: The construction of train stations in major cities along the route will facilitate efficient transportation.
    • Trade Opportunities: The Gulf presents significant trade prospects, especially in the transport of hydrocarbons.

    Challenges and Skepticism

    • Viability Concerns: Some experts question the project’s feasibility, highlighting the need for “fluidity” in transportation routes and the preference for direct shipping without intermediate loading and unloading.
    • Adaptation to Customer Preferences: Consideration should be given to evolving global transport dynamics and customer preferences.

     

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  • India-Gulf Partnership: Opportunities and Challenges

    Gulf

    Central Idea

    • The recent meeting in Riyadh between Saudi Crown Prince Mohammed bin Salman and the national security advisers of the US, UAE, and India highlights India’s new possibilities in the Arabian Peninsula. The growing strategic convergence between India and USA in the Gulf and the opportunities and challenges for India in the emerging.

    India-US Gulf Partnership: Departure from Traditional Approaches

    • Shedding the Anti-Western Lens: The Nehruvian foreign policy of keeping a distance from the US in the Middle East is being discarded, and India is working with the US in the Gulf region.
    • Building New Partnerships: The formation of a four-nation grouping called I2U2, comprising the US, India, Israel, and the UAE, highlights the growing strategic convergence between Delhi and Washington in the Gulf.
    • Rejection of Ideological Taboo: India is shedding its ideological taboo of keeping its distance from Israel, and transforming its relations with the two Arabian kingdoms, Saudi Arabia and the UAE, into solid strategic partnerships.
    • Expansion of Partnerships: In addition to the US, India is beginning to work with France in the Gulf and the Western Indian Ocean.
    • Change in Perception: The US is leading the West to discard its pro-Pakistan bias and rethink the relationship between the Subcontinent and the Gulf.

    New Strategic Opportunities for India in the Gulf

    • Economic growth: The emerging Arabian Peninsula presents enormous new possibilities for India’s economic growth, given the massive financial capital and ambitious economic transformation of Gulf kingdoms like Saudi Arabia and the UAE.
    • Connectivity and security: India can play a productive role in promoting connectivity and security within Arabia and between it and abutting regions, including Africa, the Middle East, Eastern Mediterranean, and the Subcontinent.
    • Overcoming extremism: The engagement with the Gulf can also help India overcome the dangerous forces of violent religious extremism within the Subcontinent.
    • Elevating India’s standing: The new opportunities in Arabia and the emerging possibilities for partnership with the US and the West position India to rapidly elevate its own standing in the region.

    Challenges that India may face in pursuing strategic opportunities in the Gulf

    • Regional instability: The Gulf region is prone to political and security instability due to ongoing conflicts, political tensions, and the presence of non-state actors. This can pose a challenge for India in pursuing its interests in the region.
    • Dependence on hydrocarbons: India is heavily dependent on hydrocarbon imports from the Gulf, which makes it vulnerable to supply disruptions and price volatility. The shift towards renewable energy sources and reducing dependence on hydrocarbons may take time and require significant investments.
    • Competition with other powers: India faces competition from other major powers such as China, the United States, and European countries, who are also seeking to expand their strategic presence in the Gulf region.
    • Cultural differences: There may be cultural differences between India and some Gulf countries, which could pose challenges in developing strong partnerships and cooperation in areas such as security and counter-terrorism.
    • Domestic political constraints: Domestic political constraints, such as political opposition to closer ties with certain Gulf countries, could hinder India’s efforts to deepen its strategic engagement in the region.

    Way ahead: Steps is to continue building on the momentum

    • Strengthening economic ties: India should focus on deepening its economic relations with the Gulf countries, including diversifying its trade and investment portfolio, exploring opportunities in non-oil sectors, and leveraging its expertise in areas such as technology, healthcare, and renewable energy.
    • Enhancing security cooperation: India should work with its Gulf partners to enhance security cooperation, including counter-terrorism and intelligence sharing, and contribute to regional stability and security.
    • Promoting people-to-people ties: India should encourage greater people-to-people exchanges with the Gulf countries, including through cultural and educational exchanges, tourism, and sports.
    • Supporting regional initiatives: India should support regional initiatives aimed at promoting stability, connectivity, and development in the Gulf and the wider Middle East region.
    • Balancing relations with various actors: India should strive to balance its relations with various actors in the region, including the US, France, Saudi Arabia, the UAE, and Iran, and avoid getting embroiled in regional rivalries.

    Conclusion

    • The emerging India-US partnership in the Gulf region presents a new era of cooperation that has the potential to promote economic growth, connectivity, and security within the region. The partnership marks a departure from traditional approaches to the Middle East and has the potential to elevate India’s standing in the Gulf.

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    Also Read:

    India and Saudi Arabia: Strengthening the Bond

     

  • CPEC to be extended to Afghanistan

    cpec

    Central Idea: Pakistan, China and Afghanistan have agreed to extending the Beijing-backed China-Pakistan Economic Corridor (CPEC) to Afghanistan to fully harness the country’s potential as a hub for regional connectivity.

    What is CPEC?

    • The CPEC, one of the most ambitious components of Beijing’s Belt and Road Initiative (BRI), was announced to great fanfare in 2015.
    • CPEC is a collection of infrastructure projects that are under construction throughout Pakistan beginning in 2013.
    • Originally valued at $47 billion, the value of CPEC projects is worth $62 billion as of 2020.
    • It is intended to rapidly upgrade Pakistan’s required infrastructure and strengthen its economy by the construction of modern transportation networks, numerous energy projects, and SEZs.
    • On 13 November 2016, CPEC became partly operational when Chinese cargo was transported overland to Gwadar Port for onward maritime shipment to Africa and West Asia.

    India’s reservation against CPEC

    Ans. Sovereignty breach

    • India which shares tense relations with Pakistan, objects to the CPEC project as upgrade works to the Karakoram Highway are taking place in Gilgit-Baltistan.
    • This is the territory illicitly occupied by Pakistan in 1947-48.
    • During the visit of Indian PM Modi to China in 2015, the Indian FM, Sushma Swaraj reportedly told the Chinese.
    • India did not object to the Chinese construction of the Karakoram Highway which was built between 1959 and 1979.

    Why CPEC?

    • Economic push for Pak: CPEC has consistently been held up as a “gamechanger” for Pakistan’s economy.
    • Debt trap diplomacy: At the same time, China is the only country that is heavily investing in Pakistan.

    Progress status

    • Slow pace: Gwadar, despite being the epicenter of multibillion-dollar projects, lacks basic necessities like reliable access to water and electricity, let alone other facilities.
    • At standstill: But the road to completion has proved long and winding. Reports indicate that the pace of CPEC projects has been slowing down in Pakistan in recent years.
    • Baloch freedom movement: This is another impediment to the stalled project where Chinese officials are targeted and killed.
    • Consistent security threat: China is also seeking to deploy its Army in the CPEC projects, to which Pakistan has contested.

     

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  • UTF (Uthuru Thila Falhu- Island) Harbour Project

    utf

    Central Idea: The article discusses the recent commissioning of the Indian grant-in-aid UTF (Uthuru Thila Falhu- Island) Harbour Project, the coastal surveillance radar system, in the Maldives. The project is a significant milestone in the growing defence ties between the two countries.

    What is the UTF Project?

    • The UTF project was announced during External Affairs Minister S Jaishankar’s visit in February 2021.
    • It is among the biggest Indian grant-in-aid projects in the Maldives.
    • It is aimed at developing a maintenance and repair hub for naval vessels and will help the Maldives become self-sufficient.

    Importance of the Project

    • The project marked a major step in growing defence cooperation between India and Maldives.
    • The facility will strengthen the capability of the Maldivian Coast Guard and facilitate regional humanitarian assistance and disaster relief efforts.

    Controversy Surrounding the Project

    • There were allegations that the project was a cover for Indian military presence in the Maldives.
    • An “India Out” campaign was launched in the island nation backed by its opposition leader Abdulla Yameen.
    • Maldives President Ibrahim Solih banned anti-India protests as a threat to national security.

    Defence Cooperation and Other Projects

    • India has gifted a Dornier aircraft and a patrol vessel to the Maldives in the past.
    • India has provided 24 vehicles and a naval boat and will build police facilities on 61 islands in the country.
    • The joint statement released by India and Maldives after Defence Minister’s visit highlighted ongoing defence cooperation between the two neighbours.
    • The countries have agreed to explore additional avenues for cooperation, including in areas of defence trade, capacity building, and joint exercises.
    • Both the countries are working closely to address challenges, including those on maritime security, terrorism, radicalisation, piracy, trafficking, organised crime, and natural disasters.
    • India has financed the Greater Male Connectivity Project (GMCP), a $500 million project, to build a 6.74 km bridge and causeway linking the capital of Maldives, Male, with neighboring islands.

    India-Maldives Relations: A backgrounder

    • India and Maldives are neighbors sharing a maritime border.
    • Both nations established diplomatic relations after the independence of Maldives from British rule in 1966.
    • India was one of the first nations to recognize Maldives’ independence.
    • Since then, India and Maldives have developed close strategic, military, economic and cultural relations.
    • Maldivians generally regard Indians and India as a friend and trusted neighbor in the field economic, social and political.

    Causes for the anti-India sentiments

    • Political instability: The anti-India sentiment is nearly a decade old and can be traced back to when Abdulla Gayoom became president in 2013. He used anti-India sentiments for his political mobilization and started tilting China.
    • Controversy over helicopter gift: Two Dhruv Advanced Light Helicopters (ALF) that were given by India to the Maldives for ocean search-and-rescue operations. Opposition tried to portray this as military presence in the country.
    • Confidential agreements: Most agreements being signed between the Ibrahim Solih government and India are backdoor and has not been publicly discussed in the Maldives Parliament.
    • Alleged interference in domestic politics: India being a big neighbour, there are unsubstantiated perceptions & allegations on Indian Diplomats stationed in Maldives interfering in Domestic affairs.

    Restoration of ties

    Ibrahim Mohamed Solih who became President in 2018 has restored Maldives close ties with India.

    Major irritants in ties

    • Political Instability: India’s major concern has been the impact of political instability in the neighborhood on its security and development.
    • Increasing radicalization: In the past decade or so, the number of Maldivians drawn towards terrorist groups like the Islamic State (IS) and Pakistan-based jihadist groups has been increasing.
    • Inclination towards terror: Radicalism in the island nation has increased the possibility of Pakistan based terror groups using remote Maldivian islands as a launch pad for terror attacks against India and Indian interests.
    • Chinese affinity: China’s strategic footprint in India’s neighborhood has increased. The Maldives has emerged as an important ‘pearl’ in China’s “String of Pearls” construct in South Asia.

    Recent gestures by India

    [1] 2014 Male drinking-water crisis

    • In the wake of a drinking water crisis in Malé in December 2014, following collapse of the island’s only water treatment plant, Maldives urged India for immediate help.
    • India came to rescue by sending its heavy lift transporters like C-17 Globemaster III, Il-76 carrying bottled water.

    [2] 2020 Covid-19 crisis

    • During the COVID-19 crisis of 2020, India extended help to Maldives in the form of financial, material and logistical support.
    • Also, the IAF airlifted 6.2 tonnes of essential medicines and hospital consumables to Maldives, as part of ‘Operation Sanjeevani’.

    [3] Greater Male Connectivity Project

    • India has recently announced the signing of a $500-million infrastructure project for the construction of the Greater Malé Connectivity Project (GMCP).
    • This infrastructure project, the largest-ever by India in the Maldives, involves the construction of a 6.74-km-long bridge and causeway link.

    Maldives’ significance for India

    • Increasing maritime cooperation: As maritime economic activity in the Indian Ocean has risen dramatically in recent decades, the geopolitical competition too in the Indian Ocean has intensified.
    • Toll Gate in Indian Ocean: It is situated at the hub of commercial sea-lanes running through the Indian Ocean. More than 97% of India’s international trade by volume and 75% by value passes through the region.
    • Naval cooperation: Maldives is an important partner in India’s role as the net security provider in the Indian Ocean Region.
    • Important SAARC member: Besides, Maldives is a member of the South Asian Association for Regional Cooperation (SAARC) and the South Asia Subregional Economic Cooperation (SASEC).
    • People To People Contact: There is a significant population of Maldivian students in India. They are aided by a liberal visa-free regime extended by India. There is also medical tourism.
    • Major destination for Tourists: Tourism is the mainstay of the Maldivian economy. The country is now a major tourist destination for some Indians and a job destination for others.

    Way forward

    • India continues to be an important partner of the Maldives.
    • India must not grow complacent over its position and must remain attentive to the developments in the Maldives.
    • India must play a key role within Indo-Pacific security space to ensure regional security in South Asia and surrounding maritime boundaries.
    • At present, the ‘India Out’ campaign has support from a limited population but this cannot be taken for granted by the Indian government.

     

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  • India’s Leadership of G-20 and SCO: Challenges and Realities

    Central Idea

    • India’s year-long presidency of the G-20 and leadership of the Shanghai Cooperation Organization (SCO) should not create unrealistic expectations about the dividends India can reap from these summits. The current geopolitical climate is characterized by a high level of distrust and tensions running high and the threat of conflict looming large. The need for India is to proceed with caution during its presidency.

    Overview of the current geopolitical climate

    • Tensions and distrust between the US-led camp and China/Russia-led camp pose a threat of global conflict.
    • China is on a major diplomatic-cum-strategic offensive across Asia, particularly in West Asia, and is flexing its naval and military muscle in the East and Southeast Asian seas.
    • India is facing challenges due to China’s offensive and its efforts to widen the arc of conflict with India.
    • The situation in Ukraine is fraught, with the US and its allies providing advanced weaponry and training to Ukrainian troops, while Russia is receiving support from its allies.
    • India’s ties with Russia are not necessarily anchored in defense cooperation, and India is looking more to the West, especially the US, for state-of-the-art weaponry.
    • India needs to proceed with caution while holding the presidency of the G-20 and the SCO and balance the contradictory demands of the two institutions and the Global South.

    Reasons for the distrust between the two camps; United States and China/Russia

    • Economic competition: The US and China are in a race for economic and technological supremacy, with both countries vying for dominance in fields such as artificial intelligence, 5G networks, and cybersecurity. This has led to tensions between the two countries.
    • Military competition: The US and China are also in a race for military supremacy, with both countries investing heavily in their armed forces and developing advanced weapons systems. This has led to concerns about a potential arms race between the two countries.
    • Territorial disputes: China has territorial disputes with several countries in the region, including India, Japan, Vietnam, and the Philippines. This has led to tensions and concerns about China’s expansionist policies.
    • Human rights issues: The US and other Western countries have criticized China and Russia for their human rights records, including issues such as the treatment of Uighur Muslims in China and the treatment of political dissidents in Russia. This has led to tensions between these countries and the West.
    • Political influence: The US has accused China and Russia of attempting to interfere in its political processes, including the 2016 US presidential election. This has led to concerns about the countries’ intentions and their influence in other countries.
    • Strategic competition: The US and China/Russia have differing visions for the international order, which has led to strategic competition and tensions between them. The US seeks to uphold the current order, while China and Russia seek to challenge it and establish a new order that reflects their interests and values.
    • COVID-19 pandemic: The COVID-19 pandemic has further exacerbated tensions between the US and China, with both countries blaming each other for the outbreak and its spread.

    Issues for India specifically with China

    • Border disputes: India and China have long-standing border disputes, which have led to multiple conflicts over the years. The recent clashes in the Galwan Valley in June 2020 resulted in the deaths of Indian and Chinese soldiers and have further escalated tensions between the two countries.
    • China’s aggressive behavior: China’s assertive stance and expansionist policies in the South and East China Seas, as well as its attempts to limit India’s influence in the Indian Ocean Region, have led to tensions between the two countries.
    • China’s regional initiatives: China’s regional initiatives such as the China-Pakistan Economic Corridor (CPEC) and the China-Indian Ocean Region Forum are of concern to India as they may limit India’s strategic and economic interests in the region.
    • The Quad: China sees India’s partnership in the Quad (an informal strategic grouping of India, Australia, Japan, and the US) as a threat to its regional ambitions, and has openly criticized the grouping.
    • Cyber warfare and hybrid tactics: India is also concerned about China’s ability to engage in cyber warfare and hybrid tactics, including the adoption of cyber tactics and the ‘politics of water’ by re-directing the Himalayan rivers.

    Other turmoil’s in India’s immediate neighborhood

    • Afghanistan: The situation in Afghanistan appears to be steadily worsening and is now beginning to affect nations on its periphery. India has lost all traction with the Taliban in Afghanistan.
    • Pakistan: The relations between India and Pakistan are strained due to various reasons, including cross-border terrorism.
    • Sri Lanka: The political situation in Sri Lanka has been unstable in recent years, and it has caused concerns for India.
    • Nepal: The political situation in Nepal has been unstable in recent years, with frequent changes in government and disagreements over the new constitution. India has also had strained relations with Nepal over various issues, including border disputes.
    • Myanmar: The military coup in Myanmar in February 2021 has led to widespread protests and violence, causing concerns for India’s security in its Northeast region as well as affecting India’s strategic interests in the region.

    Way ahead

    • Identifying commonalities: India should focus on identifying areas of commonality between the G-20, the SCO, and the Global South, such as sustainable development, climate change, and economic cooperation, and work towards promoting these goals in each forum.
    • Prioritizing issues: India should prioritize the issues that are most important to its national interests, such as regional security and economic development, and work towards finding solutions that are mutually acceptable to all parties.
    • Engaging with all parties: India should engage with all parties in each forum, including the major powers, to ensure that its voice is heard and its interests are taken into account.
    • Building coalitions: India should work towards building coalitions with like-minded countries within each forum, such as other developing countries, to promote its interests and priorities.
    • Developing strategic partnerships: India should develop strategic partnerships with key players in each forum, such as China and Russia in the SCO, to promote regional stability and cooperation.

    Conclusion

    • India needs to be aware of the persisting challenges it faces, tone down the high expectations being generated of reaping a rich dividend from helming the G-20 and the SCO, and proceed with caution. It must chart a course that balances the contradictory demands of the G-20 and the SCO and even more so that of the Global South. India should not claim to have attained its goal of being a global power, as there are many obstacles that have to be overcome before India can achieve its predetermined goal.

    Mains Question

    Q. The current geopolitical climate is characterized by a high level of distrust and tensions running high and the threat of conflict looming large. In light of this discuss the issues for India specifically with China and how other turmoil’s in immediate neighborhood compounding the problems for India.

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    Also Read:

    India could lead the G20 agenda in a unique way

  • CEPA is the Growth Engine For India-UAE Bilateral Trade

    CEPA

    Central Idea

    • The India-UAE Comprehensive Economic Partnership Agreement (CEPA) signifies a deep, fraternal, and strategically important relationship between the two countries that goes beyond just economic cooperation. The success of the agreement in stimulating economic growth and providing investment opportunities has unlocked new possibilities for multi-sectoral collaboration and partnerships

    Background: India-UAE relationship

    • Historical ties: The India-UAE relationship has been shaped by centuries of cultural and economic engagement on the Indian Ocean’s network of exchange. The two countries share historical ties that go back to pre-modern times, with Arab traders having visited the west coast of India since the fourth century AD.
    • India’s third-largest trading partner: The UAE emerged as India’s third-largest trading partner, highlighting the two countries’ positive outlook towards economic cooperation.
    • Trade partnership strengthened with oil: The India-UAE partnership was forged first on the trade of traditional items, and then strengthened with oil. It found a formal dimension after the creation of the UAE Federation in 1971, and then accelerated in the 1990s when a liberalised India embraced the opportunity to export to the UAE and markets beyond.
    • Relationship is today more than an economic partnership: It speaks to the Emirates’s deep, fraternal, and strategically important relationship with India, reinforcing the UAE’s position as a key partner in India’s foreign policy. The two countries share strong cultural and people-to-people ties, with a significant Indian diaspora in the UAE.
    • key partner in India’s development agenda: The UAE has been a key partner in India’s development agenda, including investments in the oil and gas sector, renewable energy, and infrastructure. The UAE has also been supportive of India’s efforts in combating terrorism and enhancing security cooperation.

    India- UAE Comprehensive Economic Partnership Agreement (CEPA)

    • The India-UAE Comprehensive Economic Partnership Agreement (CEPA) is a bilateral trade agreement that aims to strengthen economic ties between the two countries.
    • The CEPA covers a wide range of subjects, including trade in goods, trade in services, investment, intellectual property rights, and competition policy.
    • The CEPA has been in the making for several years, with negotiations starting in 2017 and the agreement finally coming into force on May 1, 2022. The agreement builds on the decades of mutual enterprise between the two countries, with the UAE emerging as India’s third-largest trading partner.

    How India- UAE CEPA benefits both the countries?

    • Increased trade: The CEPA is expected to significantly increase trade volumes between India and the UAE, with the potential to create new investment opportunities and increase business partnerships. This will help both countries to diversify their trade relationships beyond their traditional trading partners.
    • Diversified trade: The CEPA covers a wide range of subjects, including trade in goods, trade in services, investment, intellectual property rights, and competition policy, allowing for a more diversified trade relationship between the two countries.
    • Access to new markets: The CEPA is inspiring innovators and investors, catalysing SMEs, startups, and India Inc to make decisive inroads into new markets, particularly the Emirati market, and from there to the Middle East, Africa, and Europe. This will benefit both countries in terms of access to new markets and opportunities.
    • Support for entrepreneurship: The CEPA provides support for startups in both India and the UAE, enabling them to explore growth and diversification into each other’s markets, as well as other markets in the region and beyond. The India-UAE Startup Bridge will also enable them to attract investment from venture capitalists and angel investors.
    • Addressing developmental challenges: The CEPA provides a trade lens to tackle issues such as energy and food security, agriculture, and sustainability, making it a strategic catalyst in addressing vital developmental challenges.

    CEPA

    Facts for prelims: UPI in UAE

    • Indian travelers can now seamlessly make payments in the UAE using the UPI-based apps.
    • National Payments Corporation of India (NPCI) has partnered with the Mashreq Bank’s NEOPAY to enable UPI-based payments in the Gulf Nation.
    • UPI payments will only be possible in UAE shops that have NEOPAY terminals. The user should have a bank account with an Indian bank account along with a mobile app like BHIM that supports UPI payments.
    • Currently, UPI payments are accepted in Bhutan and Nepal. It is likely to go live in Singapore by the end of this year.
    • Back in 2021, the UPI services were launched in Bhutan in collaboration with its central bank, the Royal Monetary Authority.

    Way ahead?

    • Looking ahead, the India-UAE CEPA presents a unique opportunity to further deepen economic and strategic ties between the two countries. Some of the key steps that can be taken to build on the success of the CEPA include:
    • Strengthening infrastructure: India and the UAE can collaborate to strengthen infrastructure, including ports, airports, and logistics networks, to facilitate the movement of goods and people between the two countries.
    • Enhancing cooperation in emerging sectors: The two countries can explore cooperation in emerging sectors such as renewable energy, artificial intelligence, and fintech, among others, to promote innovation and economic growth.
    • Promoting investment: Both India and the UAE can take steps to promote investment in each other’s markets, including through the creation of investment promotion agencies, bilateral investment treaties, and other measures.
    • Strengthening cultural ties: Cultural exchanges and people-to-people contacts can be further enhanced to deepen the historical and cultural ties between the two countries.
    • Addressing developmental challenges: The CEPA provides a platform for addressing key developmental challenges faced by both countries, such as energy and food security, sustainability, and agriculture. Further efforts can be made to leverage this platform to achieve meaningful progress in these areas.

    Conclusion

    • The UAE-India CEPA has unlocked new possibilities for multi-sectoral collaboration and partnerships, leading the nations to build competitive, resilient, sustainable, and vibrant economies.

    Mains Question

    Q. India-UAE completed its one year of Comprehensive Economic Partnership Agreement (CEPA) implementation. In this background discuss impact on the Bilateral Trade.

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    Also read:

    India-UAE Food Security Partnership Stands to Benefit From Multiple Points of Convergence

  • India-China Border Tensions: An Assessment of the Current Situation and Proactive Steps for India

    Border

    Central Idea

    • India needs to take proactive measures to address the ongoing border crisis with China in Ladakh, rather than relying on a status quo approach. The government’s silence and euphemistic language on the issue have given the impression of incompetence and inaction, leading to concerns over India’s capability to handle the situation

    Brief background on the Ladakh border issue

    • The border dispute dates back to the 1950s and 60s, when China made claims to the region and occupied large parts of it.
    • In 1962, the two countries fought a brief war over the issue, which ended in a Chinese victory and the establishment of a de facto border line known as the Line of Actual Control (LAC).
    • Since then, the two countries have had several standoffs and skirmishes in the region, with tensions escalating in recent years. T
    • he latest border standoff in Ladakh began in May 2020 and continues to remain unresolved.

    The Depsang crisis of 2013

    • Depsang Plains of Ladakh: The Depsang crisis of 2013 refers to a tense border standoff between India and China that took place in the Depsang Plains of Ladakh in April-May 2013.
    • Chinese troops set up a camp: The crisis began when Chinese troops set up a camp in the Depsang Plains, which is located about 19 km inside what India considers to be its territory.
    • Strategically important area: The area is strategically important as it overlooks the strategically important Darbuk-Shyok-Daulat Beg Oldie (DSDBO) road that India had built to improve its connectivity to the border areas.
    • Negotiations and agreement over the withdrawal: The situation was resolved after three weeks of negotiations, with the Chinese agreeing to withdraw their troops in exchange for a pledge from India to scale down its military presence in the area.
    • The crisis led to other standoffs: The crisis highlighted the long-standing boundary dispute between India and China, which has led to several other standoffs and skirmishes over the years.

    What is the current situation?

    • The current situation at the Ladakh border is that some areas have witnessed disengagement, while two areas, Depsang and Demchok, remain unresolved. Indian soldiers are not allowed to touch 26 of the 65 patrolling points in Ladakh.
    • Diplomatic meetings and talks between corps commanders have not elicited any progress since September last year. Regular meetings between Indian and Chinese Ministers, Foreign and Defence, have not yielded results either.
    • India needs to find a way to transfer the pressure back to China, as Beijing has never compromised unless it has been forced into an uncomfortable spot.

    Border

    Facts for prelims

    States

    		 Border with China

    Important Passes
    Jammu and Kashmir 1597 km Khardung La Pass, Chang La Pass, Marsimik La Pass, Saser La Pass
    Arunachal Pradesh

     

    		 1126 km

     

    		 Bum La Pass, Kibithu Pass, Tawang
    Uttarakhand 345 km Mana Pass, Lipulekh Pass, Niti Pass
    Sikkim 220 km Nathu La Pass, Jelep La Pass
    Himachal Pradesh 200 km Shipki La Pass, Kaurik Pass

    Way ahead: Steps to transfer the pressure back to China

    • Bold use of imagination: The political leadership needs to use its imagination boldly to find a way to impose its will upon China.
    • Be proactive: India needs to be proactive in dealing with China, as Beijing has never compromised unless it has been forced into an uncomfortable spot.
    • Tactful action on LAC: Tactical actions on the LAC need to be daring, and the military needs to be used as an instrument to pursue policy ends and try to impose its will upon the adversary.
    • Increase strategic thought: Strategic thought in Delhi needs to be bold and innovative to find a way to wrest the initiative from China.
    • Avoid fear of military escalation: India’s fear of military escalation is holding back progress in the Ladakh border issue, and the government needs to overcome this fear to take proactive steps.
    • Utilize diplomatic channels: India should leverage diplomatic channels and international forums to put pressure on China to resolve the border issue.
    • Strengthen domestic capabilities: India should focus on building domestic capabilities, including military and economic, to match up to China’s strengths and position itself better in negotiations.

    Border

    Conclusion

    • India needs to take proactive measures to address the ongoing border crisis with China in Ladakh. A status quo approach can no longer be the answer, and India will have to wrest the initiative from China. Failure to do so would be a national failure for India, and the government must show boldness and imagination to resolve the crisis.

    Mains Question

    Q. India is going through the tough phase over the issues of border with China. In this backdrop discuss what proactive measures that India needs to take considering the current developments situation of the border conflicts?

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    Also read:

    India-China: Border Management Mechanism

  • Operation Kaveri to evacuate stranded citizens from Sudan

    kaveri

    India has launched “Operation Kaveri” to evacuate its citizens from war-torn Sudan.

    What is Operation Kaveri?

    • It is the recent series of evacuations held by India over the last few years to rescue its nationals in crisis-hit countries. India rescued its nationals last year from war-hit Ukraine and Afghanistan.
    • The operation was launched in response to the conflict and breakdown of essential services in Sudan that had brought the country to a standstill.
    • India has positioned two transport aircraft of the IAF in the Saudi Arabian city of Jeddah and a naval ship at a key port in Sudan as part of its contingency plans to evacuate its stranded nationals.

    Behind the name ‘Kaveri’

    • The choice of naming this operation as ‘Operation Kaveri’ has a lot of significance.
    • Kaveri is one of the major Indian rivers flowing through the southern states of Karnataka and Tamil Nadu.
    • The river is sacred to the people of the region and is worshipped as the Goddess Kaveriamma (mother Kaveri).
    • Rivers reach their destination irrespective of barriers. It’s like a mother who will ensure she will bring her children back to safety.

    About Sudan

    kaveri sudan

    • Sudan is a country located in North Africa, bordered by Egypt to the north, Libya to the northwest, Chad to the west, the Central African Republic to the southwest, South Sudan to the south, Ethiopia to the southeast, and Eritrea to the east.
    • It is the third-largest country in Africa and has a diverse population of around 43 million people.
    • According to the World Bank, around 46% of the population lives below the poverty line, and many Sudanese people struggle to access basic services such as healthcare, education, and clean water.

    What is the crisis all about?

    • Sudan is facing a crisis due to fighting between two rival military factions.
    • The conflict involves the Sudanese army and the paramilitary Rapid Support Forces (RSF).
    • The fighting began in April 2022 after tensions rose following the coup that saw the two factions topple a civilian government in October 2021.
    • The conflict began when an internationally-backed plan to launch a new transition with civilian parties was floated.
    • Under the plan, both the army and the RSF had to cede power, but two issues were contentious: the formal placing of the army under civilian oversight and the timetable for the RSF to be integrated into the regular armed forces.

    Global Implications of the Conflict

    • The volatile region, which borders the Red Sea, the Sahel, and the Horn of Africa, could be destabilized if the fighting continues.
    • The conflict in Sudan has the potential to cause a refugee crisis, with people fleeing the country to escape the violence and instability.

     

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