💥UPSC 2027,2028 Mentorship (May Batch) + Access XFactor Notes & Microthemes PDF
Talk to mentor

Civilsdaily

Login

Archives: News

  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    ICJ and Climate Justice

    | Enviro & Biodiversity | Mains Paper 1: Important Geophysical Phenomena

    Central idea: On March 29, the United Nations General Assembly passed a resolution that requested an advisory opinion from the International Court of Justice (ICJ) regarding the obligations countries have towards climate change reduction.

    Facts for prelims: International Court of Justice (ICJ)

    • The ICJ is the principal judicial organ of the United Nations (UN).
    • It was established in June 1945 by the Charter of the United Nations and began work in April 1946.
    • The court is the successor to the Permanent Court of International Justice (PCIJ), which was brought into being through, and by, the League of Nations.
    • It held its inaugural sitting at the Peace Palace in The Hague, Netherlands, in February 1922.
    • After World War II, the League of Nations and PCIJ were replaced by the United Nations and ICJ respectively.
    • The PCIJ was formally dissolved in April 1946, and its last president, Judge José Gustavo Guerrero of El Salvador, became the first president of the ICJ.
    • Four Indians have been members of the ICJ so far.
    • Justice Dalveer Bhandari, former judge of the Supreme Court, has been serving at the ICJ since 2012.

     

    Vanuatu seeks climate reparations

    • The resolution, which was passed by consensus, was pushed through by the Pacific Island of Vanuatu, which was devastated by Cyclone Pam in 2015.
    • This resolution is significant because it invokes article 96 of the U.N. Charter and seeks to clarify the legal obligations of states to protect the climate system.

    Resolution A/77/L.58: What does it seek?

    The draft resolution (A/77/L.58) asks the ICJ to deliberate on two questions:

    1. Obligations of states: Under international law to ensure the protection of the climate system for present and future generations
    2. Legal consequences: For states that have caused significant harm to the climate system, particularly for Small Island Developing States (SIDS) and for people who are harmed?

    Frameworks invoked by Vanuatu

    The resolution refers to several international protocols, including the-

    1. Paris Agreement
    2. United Nations Convention on the Law of the Sea and
    3. Universal Declaration of Human Rights

    What do sponsors of the resolution want?

    • The sponsors of the resolution expect an advisory opinion from the ICJ to bolster the efforts under the global climate pledge.
    • The opinion is also expected to clarify more contentious issues, such as-
    1. Climate reparations by the developed world,
    2. Legal culpability for countries that don’t achieve their NDC promises
    3. Climate support to the most vulnerable parts of the world

    Where does India stand over this?

    • India has been silent about the resolution, although it is generally supportive of climate justice and holding the developed world accountable for global warming.
    • India did not co-sponsor the draft resolution, unlike its neighbors Bangladesh, Maldives, Nepal, and Sri Lanka.

    If ICJ intervenes, what would change?

    • Only advisory opinion: The ICJ is being asked for an advisory opinion, which would not be legally binding as an ICJ judgment.
    • Puts moral obligation: The ICJ carries “legal weight and moral authority”.
    • Symbolic significance: ICJ’s clarification of international environmental laws would make the process more streamlined, particularly as the COP process looks at various issues like climate finance, climate justice, and the most recently agreed to “loss and damages” etc.

    Conclusion

    • The resolution passed by the UNGA requesting an advisory opinion from the ICJ is a step in the right direction towards clarifying the legal obligations of states to mitigate climate change and protect the environment for future generations.
    • To ensure the success of this effort, countries need to continue to engage in diplomatic efforts and work towards shared goals.
    • Countries should also actively participate in the ICJ process and respect the advisory opinion it delivers.

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    India and Malaysia to settle trade in INR

    | Economics | Mains Paper 3: Indian Economy

    india

    India and Malaysia have agreed to settle their trade in Indian rupees instead of the US dollar.

    What is the move?

    • The Reserve Bank of India (RBI) had allowed the settlement of international trade in the Indian rupee in July 2022.
    • Malaysia was one of the eighteen countries that were permitted to open Special Rupee Vostro Accounts (SRVAs) to settle payments in Indian rupees.

    Volume of bilateral trade

    • India-Malaysia bilateral trade reached $19.4 billion during 2021-22.
    • Malaysia is the third-largest trading partner of India in the ASEAN region, after Singapore and Indonesia, with $30.1 billion and $26.1 billion in bilateral trade with India.

    Facts for prelims: Nostro and Vostro Accounts

    Nostro and vostro accounts are two types of accounts used in international trade and banking to facilitate foreign currency transactions.

    A Nostro account is a foreign currency account held by a domestic bank in a foreign bank. It is used to facilitate international transactions, such as foreign currency payments, and to hold foreign currency deposits. The word “nostro” means “ours” in Italian, and the term reflects the fact that the foreign bank holds the domestic bank’s funds on its behalf.

    A Vostro account, on the other hand, is a domestic currency account held by a foreign bank in a domestic bank. It is used by the foreign bank to hold domestic currency deposits, and to facilitate domestic currency transactions such as payments to local vendors. The word “vostro” means “yours” in Italian, and the term reflects the fact that the domestic bank holds the foreign bank’s funds on its behalf.

     

    What are Special Rupee Vostro Accounts (SRVAs)?

    • SRVAs are a mechanism introduced by the RBI to allow banks from certain countries to open accounts in Indian rupees with Indian banks.
    • These accounts can be used to settle trade transactions between the two countries in Indian rupees, instead of using other currencies.
    • The aim of this initiative is to facilitate the growth of global trade and to support the interests of the global trading community in Indian rupees.
    • The Union Bank of India has become the first bank in India to operationalize this option by opening a SRVA through its corresponding bank in Malaysia – India International Bank of Malaysia.
    • Banks from 18 countries so far are allowed by the RBI to open Special Rupee Vostro Accounts (SRVAs) to settle payments in Indian rupees.

    Significance of the move

    • The move aims to provide better pricing for goods and services traded between the two countries and overcome currency-related obstacles that have affected bilateral trade.
    • This shift away from the US dollar signals India’s de-dollarization efforts.
    • The decision also comes against the backdrop of ongoing official efforts to safeguard Indian trade from the impact of the Ukraine crisis.

    Broader implications

    • The sanction on the Russian economy and the ongoing war in Ukraine have made it increasingly difficult to make payments to Russia in US dollars.
    • Many countries are exploring alternatives to the US dollar as the dominant reserve currency for international trade.

     

    Try this MCQ

    Q. Which of the following is a key difference between Nostro and Vostro accounts?

    A) A Nostro account is held by a bank in a foreign country, while a Vostro account is held by a bank in the home country.

    B) A Vostro account is used for incoming transactions, while a Nostro account is used for outgoing transactions.

    C) A Nostro account is denominated in the local currency of the home country, while a Vostro account is denominated in a foreign currency.

    D) A Vostro account is used for trade financing, while a Nostro account is used for personal banking transactions.

     

    Post your answers here.

     

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

    Bharat 6G project: India plans to roll out high-speed internet by 2030

    | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    6g

    Central idea: Despite over 45,000 Indian villages lacking 4G connectivity and ongoing efforts to build out 5G networks, the Indian government has set its sights on 6G.

    Why in news?

    • On March 22, PM Modi unveiled the Bharat 6G Vision Document, aimed at gearing up policymakers and the industry for the next generation of telecommunications.

    What is 6G?

    • 6G is the next generation of wireless telecommunications technology, which is expected to offer significantly faster data speeds, higher bandwidth, and lower latency than 5G.
    • It is still in the development stage, and its commercial rollout is not expected for several years.
    • However, many countries, including India, are already working on developing 6G technology and setting standards for its implementation.

    Differences between 6G and 5G

    • While 6G will offer faster loading times, improved video quality, and faster downloads, like every new generation of technology, it is unclear how much better it will be.
    • With latency already at the speed of light on existing networks, the benefits of 6G will depend on how different groups plan to use the spectrum.
    • Satellite constellations will join telecom towers and base stations, integrating networks and extending them to rural areas.

    Motivations for pursuing 6G

    • Encourage local industry: The Indian government hopes to encourage local manufacturing of telecom gear and support Indian companies and engineers in international discussions around standardization.
    • Avoid delay unlike 5G: India aims to avoid the delay in previous generations of telecommunications technology, which started rolling out in India years after countries like South Korea and the United States.
    • Increased connectivity: Additionally, the lower frequency in 4G networks may not be able to keep up with the demand for traffic with increasing data usage, making 6G a necessity.

    Government Plans for 6G

    • The Indian government plans to financially support “research pathways” to advance connectivity goals and establish an “apex body”.
    • India’s 6G goals include-
    1. Guaranteeing every citizen a minimum bandwidth of 100Mbps
    2. Ensuring every gram panchayat has half TB (terabyte) per second of connectivity, and
    3. Providing over 50 million internet hotspots with thirteen per square kilometre.

    Roadmap for 6G in India

    • The government plans to implement 6G in two phases.
    1. Phase 1 will support explorative ideas, risky pathways, and proof-of-concept tests.
    2. Phase 2 will support ideas and concepts that show promise for global acceptance, leading to commercialisation.
    • It would appoint an apex council to oversee the project and deal with standardisation, identification of spectrum, finances for research and development, and more
    • The council will finance research and development of 6G technologies by Indian start-ups, companies, research bodies, and universities.
    • Key focus of the council will be on new technologies such as Terahertz communication, radio interfaces, tactile internet, and artificial intelligence.
    • Bharat 6G Mission aligns with the national vision of Atmanirbhar Bharat and aims to make India a leading supplier of advanced telecom technologies that are affordable and contribute to the global good.

    Approaches to 6G in Other Countries

    • South Korea plans significant investments in 6G technology development, with a focus on laying the ground for key original technologies and domestic production of core equipment and components.
    • Countries are also starting to work together, with Japan and Germany planning a workshop to work on everything from “fundamental technologies to demonstrations.”
    • Europe’s equivalent of the Indian 6G Vision Document emphasizes leadership in strategic areas and establishing secure and trusted access to key technologies.

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

    UN allows Deep Sea Mining operations from July

    IOCR | Enviro & Biodiversity | Mains Paper 1: Important Geophysical Phenomena

    mining

    Central idea: The International Seabed Authority has announced that it will start accepting applications from companies for deep sea mining from July.

    Why in news?

    • This decision was made in the absence of a mining code that has not been put in place yet.

    What is Deep Sea Mining?

    • Deep-sea mining is the process of extracting minerals from the deep ocean floor.
    • The minerals that are extracted can include valuable metals such as copper, gold, nickel, and manganese, as well as rare earth metals that are used in high-tech devices such as smartphones, computers, and electric vehicles.
    • The minerals are found in the form of polymetallic nodules that are located on the ocean floor at depths of around 4 to 6 kilometers.
    • Deep-sea mining involves the use of specially designed equipment that can withstand the extreme pressure and temperature conditions found at these depths.

    About International Seabed Authority

    • The International Seabed Authority is a Jamaica-based organization established under the United Nations Convention on the Law of the Sea.
    • The authority holds jurisdiction over the ocean floors outside of the Exclusive Economic Zones of its 167 member states.

    Reasons behind undersea mining

    • The mining is aimed at extracting cobalt, copper, nickel, and manganese from the ocean’s floor.
    • The undersea mining will extract key battery materials from polymetallic nodules found at depths of 4 kilometers to 6 kilometers.
    • These nodules are potato-sized rocks containing cobalt, copper, nickel, and manganese.

    Key concern: Mining code missing

    • Despite 10 years of discussion, there is no mining code in place.
    • The governing council of ISA is uncertain about the process it should adopt for reviewing applications for mining contracts.

    Issues with deep-sea mining

    • Deep-sea mining is a controversial issue that has raised concerns among non-governmental organizations, experts, and some countries.
    • One major concern is the potential damage to the seabed and the essential function of deep-sea ecosystems in regulating the climate.
    • Mining activities can also have wider impacts on fish populations, marine mammals, and other ocean life.

    Tap to read more about

    India’s Deep Ocean Mission

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

    IIT Mandi’s novel catalyst to make Hydrogen more viable fuel

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    hydrogen

    Scientists at IIT Mandi have created an innovative carbon-based catalyst that can enhance the efficiency of water electrolysis to generate green hydrogen.

    Water electrolysis and its Challenges

    • Water electrolysis is the process of splitting water molecules into hydrogen and oxygen using electricity inside an electrolyser.
    • However, this process consumes a lot of electrical energy.
    • A well-known solution is to use a catalyst to induce the water molecules to split at a much lower energy.
    • The better catalysts are often based on the metals iridium and ruthenium, which are expensive, in great demand in other sectors, and not consistently stable as the reaction progresses.

    IIT’s breakthrough: Development of Laser Carbon

    • Researchers have developed a porous carbon material containing nitrogen that functions both as a catalyst and as the anode in electrolyser units.
    • This material, called “laser carbon,” was produced by exposing a sheet of a polymer called polyimide to a laser beam, which carbonised the exposed bits, leaving the remainder rich in nitrogen.

    How does laser carbon work?

    • The nitrogen atoms in laser carbon draw electron clouds towards themselves, rendering the nearby carbon atoms to bond with atoms or molecules containing electron pairs.
    • This makes the location of these atoms active sites for the oxygen evolution reaction (OER).
    • OER is a bottleneck in this ideal reaction process because it proceeds slowly, with many intermediate steps, lowering the total reaction efficiency.
    • Laser carbon offers to fix this problem by reducing the OER overpotential, which means the reaction kicks off sooner and proceeds with more vigor.

    Advantages of laser carbon

    Laser carbon has several advantages over other carbon-based catalysts.

    • It is “highly power efficient,” cheaper to produce, has a simpler synthesis technique, and “can be batch-manufactured with a laser.”
    • The manufacturing process is also environment-friendly, as no waste is generated, and there are no wet chemicals that would require disposal.
    • Additionally, it does not require a substrate as it is self-supported in the form of a film, acting as both electrode and electrocatalyst.

    Challenges

    • The catalytic activity of laser carbon may not be as high as that of some metals but is comparable.
    • Further improvements in the fabrication process and use of other polymers may address this challenge.

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Innovations in Biotechnology and Medical Sciences

    Novel compound to treat Kala-Azar Infection

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    kala-azar

    Central idea: The Kolkata-based Indian Association for the Cultivation of Science (IACS) have established the potential of quinoline derivatives to treat drug-resistant leishmaniasis, which is also called kala-azar or black fever.

    What is Kala Azar?

    • Kala-Azar is a vector-borne (sandfly) neglected tropical disease caused by the protozoan parasites of the genus leishmania.
    • It afflicts the world’s poorest populations in over 90 countries throughout Asia, Africa, the Middle East, and Central and South America.
    • Current annual estimates of kala-azar are about 1,00,000.
    • More than 95% of cases reported to the WHO are from India and other tropical countries, most importantly co-infection with HIV, which leads to an immunocompromised state.

    How does Quinoline work over this?

    • The quinoline derivative is a potent inhibitor of an enzyme called topoisomerase 1 (LdTop1).
    • This enzyme is essential for the maintenance of DNA architecture in parasites and is distinct from the one found in humans.
    • Poisoning LdTop1 imparts significant cytotoxicity to both Leishmania parasites found in the gut of sandfly vectors (promastigotes) and those found in infected humans (amastigotes) of both the wild type and the antimony-resistant isolates.
    • This is done without inducing lethality to human and mice host cells.

    Significance of quinoline treatment

    • Overcoming drug resistance in clinical leishmaniasis is a severe challenge in rural India.
    • The current treatment regimens against kala-azar use formulations that are toxic and induce high levels of drug-resistance.

    What is the breakthrough?

    • The novel inhibitor targeting the leishmania parasites was identified by screening them against recombinant Leishmania topoisomerase 1 enzyme.
    • In all, 21 derivatives were prepared and evaluated for their antileishmanial activity, and one of them was found to be effective.

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Tiger Conservation Efforts – Project Tiger, etc.

    Bandipur completes 50 years as Project Tiger Reserve

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    tiger

    Central idea: Bandipur completed 50 years as a Project Tiger Reserve on April 1, 2023.

    Bandipur Tiger Reserve

    • The reserve is located in the Indian state of Karnataka and is spread over an area of 912.04 sq. km.
    • It is recognized as one of the prime tiger habitats in the world and is an important component of the country’s first biosphere reserve – Nilgiri Biosphere Reserve.

    Tiger Population in Bandipur

    • When Project Tiger was launched in 1973, there were 12 tigers in Bandipur, according to Ramesh Kumar, director, of Bandipur Tiger Reserve.
    • Today, the number of tigers utilizing the park is 173 while the number of tigers within the reserve has been pegged at 126 as per the Status of Tigers Co-predators and Prey in India, 2018.

    History of conservation efforts in Bandipur

    • Much before the Wildlife Conservation Act, 1972, was passed, the erstwhile rulers of Mysuru had realized the importance of conserving flora and fauna.
    • The Mysore Game and Fish Preservation Act was passed in 1901, and several forest areas were preserved as Game Reserves, and Tiger Blocks were identified with shooting restrictions imposed.
    • Initially, an area spread over 35 sq miles was declared as a Game Sanctuary in Chamarajanagar State Forest of Mysore district in 1931 and was protected for 10 years.

    Bandipur’s inclusion in Project Tiger

    • When Project Tiger was launched in 1973, Bandipur was among the first nine reserves to be brought under the flagship program, and it included most areas that were already protected under the Venugopal Wildlife Park.
    • The park was upgraded to a national park and renamed Bandipur, and the adjacent reserve forests were included under it to extend its area to 874.20 sq km.

    Significance of the area

    • The landscape spanning Bandipur, Nagarahole, Mudumalai, and Wayanad complex is home not only to the highest number of tigers in the country – about 724 – but also to the largest Asian Elephant population.
    • The Bandipur Tiger Reserve is an important component of the country’s first biosphere reserve – Nilgiri Biosphere Reserve.

    Tap to read more about:

    [Sansad TV] Perspective – Project Tiger: Reclaiming Territories

     

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

    India’s Semiconductor Dreams: A Strategic Shift in Focus and Incentives

    op-ed snap | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    India’s Semiconductor

    Central Idea

     

    • India’s semiconductor policy should shift focus from attracting global giants like Intel to leveraging existing facilities and developing domestic solutions for electronics markets.

     

    Background

    • The US Department of Commerce and India’s Ministry of Commerce and Industry recently signed a memorandum of understanding to ensure subsidies do not hinder India’s semiconductor ambitions.
    • However, the likelihood of Intel investing in a greenfield 300mm wafer fabrication plant in India remains low due to its focus on fabs in the US.

     

    Facts for prelims: Semiconductors

    • Semiconductors are materials that have properties that are in between those of conductors (such as copper) and insulators (such as rubber).
    • They have the ability to conduct electricity under certain conditions, but not under others.
    • The conductivity of semiconductors can be manipulated through the introduction of impurities or doping with other materials. This process alters the electronic properties of the material and creates regions of excess or deficit of electrons, called p-type and n-type regions respectively. The interface between these regions is known as a p-n junction, which is a fundamental building block of many semiconductor devices.

     

    Applications

    • Semiconductors are a fundamental component of modern technology and have significant importance in many areas of our daily lives.
    • Electronics industry: Semiconductors are a crucial component in the electronics industry, which is one of the fastest-growing industries in the world. Semiconductors are used in a wide range of electronic devices, from smartphones and computers to medical equipment and home appliances.
    • Miniaturization: The ability to miniaturize electronic components using semiconductors has led to the development of smaller, more powerful, and more energy-efficient devices. This has enabled the development of portable devices, such as smartphones and laptops, which have become an essential part of our daily lives.
    • Energy efficiency: Semiconductors have enabled the development of energy-efficient devices, which are crucial in the context of climate change and global warming. Energy-efficient lighting, for example, uses semiconductor materials such as LEDs, which consume far less energy than traditional incandescent bulbs.
    • Renewable energy: Semiconductors are also essential in the development of renewable energy technologies such as solar cells and wind turbines. Solar cells, for example, use semiconductor materials to convert sunlight into electrical energy.
    • Medical applications: Semiconductors are also used in a wide range of medical applications, from imaging devices to implantable medical devices. In particular, semiconductor-based biosensors are becoming increasingly important for disease diagnosis and monitoring.

     

    All you need to know about India’s semiconductor policy

     

    • India has launched a new semiconductor policy called the National Policy on Electronics (NPE) in 2019, with the aim of creating a globally competitive electronics manufacturing industry in the country.
    • The policy aims to attract investment in semiconductor fabrication units, also known as fabs, and encourage the development of a domestic ecosystem for semiconductor design and manufacturing.

     

    The key objectives of the policy

     

    • Attracting investment: The policy aims to attract global semiconductor companies to set up manufacturing units in India by providing them with incentives such as financial support, tax incentives, and land at subsidized rates.
    • Promoting domestic manufacturing: The policy aims to promote domestic manufacturing of semiconductor components by providing incentives such as production-linked incentives, subsidies, and preferential market access to products made in India.
    • Developing human resources: The policy aims to develop a skilled workforce in the semiconductor sector by providing training and education programs in collaboration with leading academic institutions.
    • Encouraging research and development: The policy aims to encourage research and development in the semiconductor sector by providing financial support to research institutions and startups.

     

    India’s semiconductor policy: What it needs?

    1. India’s Semiconductor History
    • The Semi-Conductor Laboratory (SCL) was established in Mohali in 1983 to create an electronics ecosystem.
    • Market liberalization in 1991 and a fire in 1989 derailed these plans, but the facility still has the potential to support India’s semiconductor ecosystem.
    1. Shifting Focus:
    • The Ministry of Electronics and Information Technology (MeITy) has been trying to attract Intel to India, but their efforts may not be fruitful.
    • A better approach would be to leverage SCL’s existing assets and focus on the More than Moore segment of semiconductors (>180 nm node) for automotive electronics, PV-Inverters, 5G infrastructure, and railway electronics.
    1. Incentives and Subsidies:
    • Subsidies should target fabless design houses with proven designs willing to fabricate at the SCL in the 180nm+ node.
    • Incentives should also be provided to global design companies with products aimed at India-specific markets.
    • The existing DLI/PLI schemes do not provide such incentives, and a course correction is needed.
    1. Leveraging Existing Infrastructure:
    • Efforts to open up subsidies to global small and medium-sized enterprises in the upstream supply chain are welcome.
    • However, coupling these efforts with the defined incentives and targeted upgrades is essential for success.
    1. Leadership and Execution: To achieve this vision in the next five years, the SCL needs a full-time director with prior “More than Moore” foundry experience, as opposed to a career scientist from the Department of Space.

    India’s Semiconductor

    Conclusion

    • India’s semiconductor policy should shift focus from attracting global giants like Intel to leveraging existing facilities and developing domestic solutions for electronics markets. This will require a strategic shift in focus, targeted incentives, and strong leadership. Failure to act may result in India missing out on the semiconductor fabrication bus once again.

    Mains Question

    Q. Semiconductors are a fundamental component of modern technology. In this light analyze India’s semiconductor policy.

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    Foreign Trade Policy 2023: Aiming for $2 Trillion in Exports and Streamlining Processes

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Central Idea

     

    • Foreign Trade Policy 2023 focuses on shifting from an incentive to a tax remission-based regime, improving the ease of doing business, promoting exports through collaborations, and targeting emerging areas. It aims to achieve $2 trillion in export of goods and services by 2030, up from the previous $900 billion target.

     

    Foreign Trade Policy 2023

     

    1. Reducing Friction Points:
    • Automatic approvals for various permissions will streamline processes and reduce bureaucratic hurdles for businesses.
    • Reduced processing times for revalidation of authorizations (expected to be brought down to one day), extension of export obligation periods, advance authorizations, and EPCG issuances will expedite export activities.
    • Lowered application fees for MSMEs will provide financial relief and encourage more small businesses to participate in global trade.
    1. Supporting Export Growth:
    • Facilitating e-commerce exports will enable Indian businesses to tap into the growing global e-commerce market, estimated to reach $6.07 trillion by 2024.
    • Widening the basket covered under RODTEP will ensure more exporters benefit from tax remission, increasing competitiveness.
    • Boosting manufacturing, particularly in labor-intensive sectors, will create more jobs and enhance the export potential.
    • Rationalizing thresholds for exporter recognition will make it easier for businesses to be acknowledged and incentivized for their export performance.
    • Merchanting trade reform will promote services exports and reduce transaction costs.
    • Promoting the use of the rupee in international trade can help reduce exchange rate risks and increase trade with countries facing currency restrictions.
    1. One-time Amnesty Scheme: The amnesty scheme aims at faster resolution of trade disputes, clearing pending cases, and improving the overall trade environment.

     

    Supplemental Measures

     

    • Boost to domestic manufacturing: Lowering import tariffs will make raw materials and intermediate goods more affordable, boosting domestic manufacturing and export competitiveness.
    • Competitive Indian goods and services: Ensuring a competitive exchange rate will enhance the affordability of Indian goods and services in global markets.
    • FTA’s: Signing broader and deeper free trade agreements can open new markets for Indian exporters and attract foreign investments.

     

    Conclusion

     

    • The Foreign Trade Policy 2023 comes at a time of global uncertainty, but with India’s small share in global trade (around 1.8% in merchandise exports and roughly 4% in services), there is significant room for improvement. The new policy, along with additional measures, can enhance the country’s trade performance and achieve the ambitious $2 trillion export target by 2030. However, it is crucial to monitor the policy’s implementation and address potential challenges for businesses to fully reap the benefits.

    Get an IAS/IPS ranker as your 1: 1 personal mentor

  • Foreign Policy Watch: India-China

    Taiwan- China: India in the Event of a Cross-Strait Conflict

    op-ed snap | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Conflict

    Central Idea

     

    • India needs to proactively consider its military, diplomatic, and economic responses to a potential cross-strait conflict between China and Taiwan.

     

    Background

     

    • PLA’s frequent military exercises near Taiwan: The People’s Liberation Army (PLA) is conducting frequent military exercises near Taiwan, increasing the risk of escalation in the Taiwan Strait.
    • Forceful reunification: Some analysts believe that China, under President Xi Jinping, is preparing for a forceful reunification campaign by 2027.

     

    Conflict

    The impact of a cross-strait conflict between China and Taiwan on India

     

    • Disruption of trade: India’s trade through the South China Sea (SCS) accounts for nearly 55% of its total trade with the Indo-Pacific region. A conflict in the Taiwan Strait could severely disrupt this trade, affecting India’s economy. Additionally, trade with Taiwan, China (India’s second-largest trading partner), East Asia, and some Southeast Asian countries would also be severely impacted.
    • Strategic implications: As a member of the Quad, India would face serious strategic consequences in the event of a cross-strait conflict. New Delhi would be expected to respond in support of its partners, particularly the United States, which may lead to a significant shift in the regional balance of power and India’s international commitments.
    • Escalation along the Line of Actual Control (LAC): India’s involvement in a conflict over Taiwan may prompt China to escalate tensions along the LAC, leading to an increased risk of military confrontation between India and China. This would put additional pressure on India’s military and resources, as it would have to prepare for a potential two-front conflict.
    • Diplomatic challenges: India’s involvement in a conflict over Taiwan would strain its diplomatic relations with China and complicate its foreign policy priorities in the region. New Delhi would have to balance its commitments to its allies and partners with the need to maintain a stable relationship with Beijing.
    • Economic costs: The economic fallout from a cross-strait conflict could be considerable for India, with potential disruptions to supply chains, investment flows, and regional economic integration efforts. This could hinder India’s economic growth and development objectives in the short to medium term.
    • Security concerns: A cross-strait conflict could lead to increased military deployments, escalations, and proxy conflicts in the region, raising security concerns for India. This would necessitate greater vigilance and preparedness from the Indian military and intelligence agencies to address potential threats.
    • Humanitarian consequences: In the event of a large-scale conflict, India may face the challenge of responding to humanitarian crises resulting from displaced populations, refugees, and the disruption of essential services in the region. This could put additional strain on India’s resources and infrastructure.

     

    India’s likely responses

     

    • Military response: India could assist partner countries, including the US, by sharing experience and intelligence on dealing with the PLA. It could also offer its mainland for refuelling aircraft and access to its Andaman and Nicobar Island bases.
    • Diplomatic response: India could participate in a United Nations General Assembly resolution condemning Chinese aggression.
    • Economic response: India is unlikely to impose targeted sanctions on China due to the negative trade balance between the two countries.

     

    Conflict

    India’s proactive measures

     

    • Information sharing: India can establish a secure communication channel with Taiwan to exchange vital intelligence and real-time information on Chinese military movements and strategies. This would help Taiwan to better anticipate potential threats and improve its defensive capabilities.
    • Training Taiwanese armed forces personnel: India can secretly collaborate with Taiwan to train its armed forces personnel in specific operations and tactics. This may include joint exercises and training programs in areas like counterinsurgency, mountain warfare, and special operations, which could enhance Taiwan’s military preparedness.
    • Consultative mechanisms: India can set up consultative mechanisms with Taipei, Tokyo, and Washington to discuss and coordinate their strategic approaches towards deterring a Chinese attack on Taiwan. This collaboration can lead to the development of joint strategies, contingency plans, and a coordinated response in case of a conflict.
    • Strengthening defense ties: India can explore options to strengthen defense ties with Taiwan by providing it with military equipment, technology, and logistical support. This could help Taiwan build a more robust defense system and deter potential Chinese aggression.
    • Economic diversification for Taiwan: India can play a significant role in helping Taiwan diversify its trade and economic dependencies away from China. By increasing bilateral trade, investment, and technological cooperation, India can provide Taiwan with the scale it needs to reduce its overdependence on Beijing.
    • Soft power diplomacy: India can leverage its soft power and cultural ties to build stronger relationships with Taiwan, promoting people-to-people exchanges, educational collaborations, and cultural events. This would not only strengthen the bond between the two countries but also raise awareness and support for Taiwan’s cause on the international stage.
    • Encouraging international support: India can work with its allies and partners in the Quad, as well as other regional and global forums, to build a broader coalition supporting Taiwan’s sovereignty and security. By advocating for Taiwan’s inclusion in international organizations and platforms, India can help raise its global profile and encourage other countries to support Taiwan in the event of a conflict.

     

    Conclusion

     

    • While India would face challenges in the event of a cross-strait conflict, it is crucial for New Delhi to plan for the inevitable and proactively consider its military, diplomatic, and economic responses to such a crisis.

    Mains Question

    Q. There are signs of potential cross-strait conflict between China and Taiwan. In this backdrop discuss its impact on India

    Get an IAS/IPS ranker as your 1: 1 personal mentor

Join the Community

Join us across Social Media platforms.