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  • Putting neighbours first

    Context

    India has promoted regional cooperation in South Asia in a spirit of generosity, without insisting on reciprocity.

    Relations with Sri Lanka

    • Beginning of new chapter in ties: The visit of Sri Lankan Prime Minister Mahinda Rajapaksa to India in February marked the beginning of a new chapter in ties with a friendly neighbour.
      • The neighbour with which India has close historical bonds straddling culture, religion, spirituality, art and language.
    • Growing convergence against terrorism: More relevantly, there is a growing convergence against terrorism following the Easter attacks in Sri Lanka last April.
    • There is deep appreciation in Sri Lanka for the free emergency services provided through 280 ambulances gifted by India, now operational in eight of the country’s nine provinces.
    • Prospects for tri-lateral cooperation: There are much better prospects today for tri-lateral cooperation between India, Japan and Sri Lanka in the development of the East Container Terminal at Colombo port and the proposed joint development of the Trincomalee oil storage tanks.
    • Indicators of a new warmth in relations:
      • Several infrastructure projects.
      • Direct flights between Chennai and Jaffna.
      • Resumption of ferry services.
      • India’s new lines of credit and construction of houses for the internally displaced.
      • Homeless and landless people are indicative of a new warmth in relations.
    • First visit to India: That both Mahinda Rajapaksa and his brother President Gotabaya chose India as the destination for their first overseas visits after assuming office bodes well.

    Relations with Maldives

    • First visit by PM Modi: After the general elections last year, PM Modi’s first foreign visit was to the Maldives in June 2019.
      • India first: The visit was to establish warm and friendly relations with President Ibrahim Solih, who has done much to promote closer relations with India through his “India First Policy”.
    • First visit to India: India was the first country that Solih had visited in December 2018, a far cry from his predecessor’s brazen anti-India slant.
      • Soon after assuming office, Solih’s government annulled a controversial 2015 law that was meant to allow foreigners, particularly from China, to arbitrarily own islands.
    • Projects worth 180 crores inaugurated: The inauguration during Modi’s visit of two projects worth Rs 180 crore-the Coastal Surveillance Radar System and the Composite Training Center of the Maldivian National Defence Forces-has deep significance for the success of India’s neighbourhood policy.
    • $800 million worth lines of credit: India’s offer of lines of credit worth about $800 million and other capacity-building projects for water supply and sewerage are strong planks in our economic ties.
    • Terrorism and radicalisation are subjects of common concern.
    • DOSTI exercise: The agreement to restart the tri-lateral DOSTI naval exercise as also the tri-lateral NSA-level dialogue between India, Maldives and Sri Lanka lay the ghost of the Yameen era to rest.

    Relations with Nepal

    • Inauguration of first cross-border petroleum pipeline: In September last year, India and Nepal jointly inaugurated South Asia’s first cross-border petroleum products pipeline from Motihari in India to Amlekhgunj in Nepal.
    • Prioritising the rebuilding of houses: India is also prioritising the rebuilding of houses in Gorkha and Nuwakot districts, with “Build Back Better” as the guiding principle in keeping with Modi’s clarion call for a Coalition for Disaster Resilient Infrastructure (CDRI).
    • Role played by geography: Geography plays a determining role in creating inter-dependence.
      • Even as Nepal, like other South Asian countries, seeks closer ties with China, there is a much better appreciation today that India’s role as a key economic and developmental partner is unique and indispensable.

    Relations with Bangladesh

    • Model partnership: India’s relations with Bangladesh under Modi and Sheikh Hasina have evolved into a model partnership, consolidated by-
      • High-level exchanges.
      • Mutual trust and-
      • Enhanced cooperation on security matters.
    • Border firing incidents: Incidents of border firing, though rare, have an adverse fall-out on public perception and need to be handled with sensitivity.

    Relations with Bhutan

    • The India-Bhutan friendship runs deep, with growing cooperation in the vital hydro-power sector providing it a fresh impetus.
      • Notably, the centrepiece Mangdechhu project (750 MW) was completed on schedule last year.
    • RuPay card in Bhutan: The introduction of the RuPay card in Bhutan and elsewhere in the neighbourhood will further cement economic and people-to-people ties.

    Relations with Myanmar

    • Security cooperation: When India shortly hands over to Myanmar the INS Sindhuvir, a Kilo Class submarine, it will propel security cooperation to a higher pedestal.
      • Cross-border strike in Myanmar: Close coordination with Myanmar was evident earlier in the cross-border strike on insurgents by Indian forces in 2015.

    Unrealised potential of South Asia

    • South Asia–some figures: has 1.8 billion people and a combined GDP of nearly $3.47 trillion, with India’s economy the largest by far.
    • South Asia has great potential but has been held back by Pakistan.
      • Hindrance for cooperation with Afghanistan: Pakistan has not only denied India and Afghanistan the overland transit route for trade, but has also thwarted Modi’s efforts to place at centre stage the common struggle against poverty, illiteracy and natural disasters.

    Cooperation within SAARC: Pakistan has held to ransom cooperation within SAARC by raising extraneous matters, perpetuating terrorism and rejecting the ineluctable logic of intra-South Asian trade, which remains abysmally poor.

    • Pakistan opt-out of satellite project: Islamabad decided to opt-out of the SAARC satellite project proposed by India, and it was finally launched in 2017 without Pakistan’s participation.
    • Motor Vehicle Agreement: Pakistan also played the role of a spoiler at the 18th SAARC Summit in November 2014, preventing progress on the proposed Motor Vehicle Agreement for the regulation of passenger and cargo vehicular traffic amongst SAARC member states.
    • Implications for Afghanistan: Pakistan’s intransigence on connectivity impairs Afghanistan’s ability to link up with other countries in South Asia.
      • The air corridor between India and Afghanistan cannot cater to the full potential of trade ties.
      • Sustainability of Chabahar port: Recent tensions between the US and Iran have cast a shadow on the sustainability of Chabahar port as an alternative maritime supply route to Afghanistan at a crucial juncture in its history.
      • India’s role in Afghanistan: India’s proactive role in recent years in building much-needed infrastructure and capacities in Afghanistan is widely recognised.
      • Deepened defence cooperation: Defence cooperation too has deepened under Modi, with India dropping its traditional coyness in such matters.
      • Much more may have to be done, though, to help Afghanistan achieve stability through economic prosperity.
      • Afghanistan’s true destiny lies with South Asia.

    Key aspects of Neighbourhood First Policy

    • Response to security challenges: Neighbourhood First involves India’s willingness to respond to security challenges with new grit.
    • Humanitarian assistance: It also involves for India to be an enthusiastic responder in providing humanitarian assistance and conducting disaster relief operations in Nepal, Sri Lanka, the Maldives and the extended neighbourhood.
    • Developmental assistance: Even more important is the steady progress made by India to expand developmental assistance and improve project execution based on collaborative partnerships.
      • India’s developmental assistance to six South Asian countries was over Rs 21,100 crore. 

    Progress on BIMSTEC

    • BIMSTEC, the other regional grouping, has done well.
    • Participation in disaster Management Exercise: In February this year, delegates and rescue teams from India, Bangladesh, Nepal, Sri Lanka and Myanmar enthusiastically participated in disaster management exercises conducted at Ramachandi Beach at Puri in Odisha.
    • Cross-border electricity grid: The signing of the MoU on BIMSTEC Grid Interconnection at the fourth BIMSTEC Summit, attended by all seven nations in Kathmandu in August 2018, provides a fillip to cross-border electricity trade.
    • India’s focus on BIMSTEC and its Act East Policy have served to highlight India’s key role in promoting cooperative growth and development in several parts of South Asia.

    Conclusion

    In a world increasingly characterised by a “my country first” approach, India has endeavoured to harness the impulse for regional cooperation in a spirit of generosity, without insisting on reciprocity, to realise the motto of Security And Growth For All In The Region (SAGAR).

     

     

     

  • Explained: The EU data strategy

    The European Commission has recently released a “European strategy for data… to ensure the human-centric development of Artificial Intelligence” and a white paper on artificial intelligence.

    EU data strategy

    • The new documents present a timeline for various projects, legislative frameworks, and initiatives by the European Union, and represent its recognition that it is slipping behind American and Chinese innovation.
    • The strategy lays out “why the EU should act now”.
    • The blueprint hopes to strengthen Europe’s local technology market by creating a “data single market” by 2030 to allow the free flow of data within the EU.
    • To aid a “data-agile economy”, the Commission hopes to implement an “enabling legislative framework for the governance of common European data spaces” by the latter half of the year.
    • By the beginning of 2021, the Commission will make high-value public sector data available free through Application Programming Interfaces (APIs) — a pathway for two different applications to speak to each other.
    • Between 2021 and 2027, the Commission will invest in a High Impact Project to jump-start data infrastructure. Several other initiatives are laid out, including a cloud services marketplace.

    Why such strategy?

    • The EU has the potential to be successful in the data-agile economy. It has the technology, the know-how and a highly skilled workforce.
    • However, competitors such as China and the US are already innovating quickly and projecting their concepts of data access and use across the globe, the strategy states.
    • With American and Chinese companies taking the lead on technological innovation, Europe is keen to up its own competitiveness.

    What does the EU move mean for legislation?

    • Europe has been a frontrunner when it comes to technology regulation.
    • Its General Data Protection Regulation (GDPR) released in 2018 was a game-changer across the industry. In the recent strategy, the GDPR is seen as giving the “solid framework for digital trust.”
    • Parliamentarians are discussing India’s current Personal Data Protection (PDP) Bill in a Joint Select Committee.
    • The recent draft of the PDP introduced a clause on non-personal data, mandating entities to hand over such data to the government on command.
    • This was not included in the draft proposed by the Justice B N Sri Krishna Committee in October 2018.
    • Some of the movement around the PDP Bill comes from a desire to strengthen India’s own data economy, similar to the EU’s desire.

    Has India done anything similar?

    • The Union Cabinet approved the National Data Sharing and Accessibility Policy (NDSAP) in 2012.
    • As part of the initiative, the government worked with the US government to release data.gov.in, a site of government data for public use.
    • The Economic Survey of 2018 envisioned a similar use of non-personal data.
    • Just as the EU’s strategy discusses “data for public good”, the chapter titled “Data ‘Of the People, By the People, For the People’” advocated that the government step in to sectors that private players ignore, marking the first time India’s Economic Survey has isolated “data” as a strategic focus.
    • Other data integration efforts have been announced or implemented by NITI Aayog (the National Data & Analytics Platform), the Smart Cities Mission (India Urban Data Exchange), and the Ministry of Rural Development (DISHA dashboard).
    • In 2018, the National Informatics Centre worked with PwC and other vendors to create a Centre of Excellence for Data Analytics aimed at providing data analysis help to government departments.

  • Changes in Crop Insurance Scheme

    The Centre has decided to restrict its premium subsidy in its flagship crop insurance schemes to 30% for unirrigated areas and 25% for irrigated areas (from the existing unlimited), and to make enrolment of farmers in the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) voluntary from the 2020 Kharif season.

     Other changes in crop insurance schemes

    • The government has given flexibility to states/UTs to implement PMFBY and RWBCIS, and given them the option to select any number of additional risk covers/features like prevented sowing, localised calamity, mid-season adversity, and post-harvest losses.
    • Earlier, these risk covers were mandatory.

    Why such a move?

    By capping the subsidy for premium rates up to 30%, the Centre wants to dis-incentivize certain crops in such areas where growing these crops involve high risks in terms of crop insurance premiums.

    What were the schemes?

    • At present, under PMFBY and RWBCIS, farmers pay a premium of 2% of the sum insured for all foodgrains and oilseeds crops of Kharif; 1.5% for all foodgrains and oilseeds crops of Rabi; and 5% for all horticultural crops.
    • The difference between actual premium rate and the rate of insurance premium payable by farmers, which is called the Rate of Normal Premium Subsidy, is shared equally between the Centre and the states.
    • However, states and UTs are free to extend additional subsidy over and above the normal subsidy from their budgets.
    • Until now, there was no upper limit for the central subsidy.
    • The Cabinet decided to cap the Centre’s premium subsidy under these schemes for premium rates up to 30% for unirrigated areas/crops and 25% for irrigated areas/crops.

    How many farmers are covered under these two schemes?

    • During 2018-19, about 5.64 crore farmers are enrolled with PMFBY for an insured sum of Rs 2,35,277 crore, and 30% of the gross cropped is insured.
    • When the government approved PMFBY four years ago, it was described as a path-breaking scheme for farmers’ welfare” under which there was no upper limit on government subsidy.
    • Even if balance premium was 90%, it was to be borne by the Government
    • While PMFBY is based on yield, RWBCIS is based on proxies and farmers are provided insurance protection against adverse weather conditions such as excess rainfall, wind and temperature.
    • The number of insured farmers under RWBCIS is relatively low.

    Impact of the move

    This change will have two main implications.

    • First, it may bring down the rates of overall premium as the state governments now will not be required to invite bids factoring these risks.
    • Second, it will make these schemes less attractive for farmers.
    • However, states/UTs can offer specific single peril risk/insurance covers like hailstorm etc under PMFBY.

    Burden of premium

    • One interpretation of this decision is that the burden of premium subsidy will go up for the states.
    • Example: In the old regime, if a farmer’s Kharif crop was insured for Rs 1,00,000 and the rate of actuarial premium was 40%, then the premium paid by the farmer was 2% (Rs 2,000), and the remaining premium was shared by the Centre and the state equally (19% or Rs 19,000).
    • In the new regime, for the same sum insured (Rs 1,00,000) and the same rate of premium (40%), the Centre will give subsidy for premium rates up to 30%.
    • This means that from the Kharif 2020 season , the Centre will have to pay premium at the rate of 14% (out of 30%, the farmer’s share is 2%, and the Centre’s and state’s 14% each).
    • The state has to bear the entire burden of the premium subsidy in cases where the rate of premium goes beyond the threshold of 30%.

    No insurance of certain crops

    • Another interpretation is that the Centre may stop supporting insurance of certain crops in certain areas where the rate of premium is more than 30%.
    • The Department of Agriculture, Cooperation and Farmers Welfare in consultation with other stakeholders/agencies will have to prepare State specific, alternative risk mitigation programme for crops/areas having high rate of premium.
    • While the average premium rate under PMFBY and RWBCIS at the national level was 12.32% for 2018-19, for some crops in certain districts, the rate of premium has been higher than 30% in recent years.
    • For instance, the rate of premium for Kharif groundnut has reached 49% in Rajkot of Gujarat, and the rate for Rabi paddy crop Ramnathapuram (Tamil Nadu) has reached 42%.

    Impact on states

    • The states are already defaulting on their share, and the Centre’s new cap will put an additional financial burden on them.
    • Madhya Pradesh has not paid its share of premium even for Kharif 2018, which comes to Rs 1,500 crore. As a result, farmers have not got their claims.
    • In fact, most states have delayed the payment of their share of premium.
    • Sources said that in some states, the expenditure on premium of PMFBY is more than 50% of their budget for agriculture.

    Immediate implications

    • That move will lead to a rise in the rates of premium, as the area covered under insurance and the number of enrolled farmers is expected to come down significantly.
    • As of now the schemes are compulsory for all loanee farmers and optional for other farmers.
    • Non-loanee farmers under the crop insurance schemes are much fewer than loanee farmers.
    • If the latter opt out of the schemes, the number of insured farmers will drastically come down.
    • In such a scenario the rate of premium of certain crops in some areas may go beyond 30%.

    Back2Basics

    Pradhan Mantri Fasal Bima Yojana – Min Premium, Max Insurance

  • [pib] International protection for Great Indian Bustard, Bengal Florican and Asian Elephant

    India’s proposal to include Great Indian Bustard, Asian Elephant and Bengal Florican in Appendix I of UN Convention on migratory species was unanimously accepted at the undergoing CMS CoP in Gandhinagar.

    Great Indian Bustard

    • The Great Indian Bustard, an iconic, critically endangered and conservation dependent species, exhibits transboundary movements, and its migration exposes it to threats such as hunting in the boundary area of Pakistan-India and power-line collisions in India.
    • Inclusion of the species in Appendix I of CMS will aide in transboundary conservation efforts facilitated by International conservation bodies and existing international laws and agreement.

    Asian Elephant

    • The Government of India has declared Indian elephant as National Heritage Animal. It is also provided with the highest degree of legal protection by listing it in Schedule I of the Wildlife (Protection) Act, 1972.
    • The Great Indian Bustard is a Critically Endangered species with a small population of about 100–150 individuals that is largely restricted to Thar desert in Rajasthan, India.
    • The species has disappeared from 90% of this range; their population has reduced by 90% within 50 years (six generations), and their threats are expected to increase in future.

    Bengal Florican

    • The Bengal Florican an iconic, critically endangered species of topmost conservation priority, exhibits transboundary movements, and its migration exposes it to threats such as land-use changes, collision with power transmission line at the boundary area of India-Nepal and probable power-line collisions.
    • Inclusion of the species in Appendix I of CMS will aid in transboundary conservation efforts facilitated by International conservation bodies and existing international laws and agreement.
    • It populations has declined as a result of habitat loss, hunting and the species no longer breeds outside Protected Areas in the Indian subcontinent, except in a few areas of Assam.

  • What did Harappan people eat?

    The National Museum in New Delhi has hosted “The Indus dining experience” a food event based on the food pattern of Indus valley civilization.

    Food of Harappans

    • Archaeological evidence from Indus Valley sites (c. 3300 BC to 1300 BC) in present-day India and Pakistan suggests that a purely vegetarian meal will not provide a complete picture of what the Harappan people ate.
    • To judge from the quantity of bones left behind, animal foods were consumed in abundance: beef, buffalo, mutton, turtles, tortoises, gharials, and river and sea fish.
    • Apart from meat, the people of the Indus Valley Civilisation grew and ate a variety of cereals and pulses.
    • There is archaeological evidence for cultivation of pea (matar), chickpea (chana), pigeon pea (tur/arhar), horse gram (chana dal) and green gram (moong).
    • Several varieties of wheat have been found at Harappan sites, as well as barley of the two-rowed and six-rowed kinds.
    • There is evidence that the Harappans cultivated Italian millet, ragi and amaranth, as well as sorghum and rice.
    • Oilseeds such as sesame, linseed, and mustard were also grown.

  • Buddah Nullah

    The Punjab govt. has approved ₹650 crore in the first phase for rejuvenation of the highly polluting Buddah Nullah — a seasonal tributary of Sutlej in Ludhiana.

    Buddah Nullah

    • Buddah Nullah or Budha Nala is a seasonal water stream that runs through the Malwa region of Punjab.
    • It passes through highly populated Ludhiana and drains into Sutlej River, a tributary of the Indus river.
    • It has also become a major source of pollution in the region as well the main Sutlej river, as it gets polluted after entering the highly populated and industrialized Ludhiana city, turning it into an open drain.
    • Also, since a large area in south-western Punjab solely depend on the canal water for irrigation, and water from Buddha Nullah enters various canals after Harike waterworks.

    Why such move?

    • The pollution in the Buddah Nullah is a major threat to public health and environment and the main sources of pollution in the nullah are direct flow of pollutants by industries and dairies.
    • Also, treated effluents from existing STPs, based on UASB technology, does not meet the required quality and overflow from sewer lines add to the problem.
    • The NGT has already directed the government to take proactive steps to immediately address the problem.

  • Spontaneous Regression

    Patients sometimes make ‘miraculous’ recoveries from severe ailments. This is called spontaneous healing or spontaneous regression.

    Spontaneous healing/regression

    • A patient improves unexpectedly from a disease that usually progresses, such as cancer, and at times is even cured.
    • Such cases notwithstanding, the medical fraternity is often sceptical and takes “miraculous” recoveries as flukes.
    • A research explores patterns behind healing illnesses such as the deadliest kinds of cancers, and lays out physical and mental principles associated with recovery.
    • These include physically healing diets and immune systems, and mentally healing stress responses and identities.

    How does it occur?

    • The research states that much of our physical reality is created in our minds and perception changes our experiences, sometimes to the point of changing our bodies.
    • Therefore it argues that healing our identities may be a key tool to recovery.

  • 21st February 2020| Daily Answer Writing Enhancement

    Important Announcement: In the month of February, we will be covering UPSC Mains GS questions of 2019. This will give you real time experience of attempting GS questions of UPSC Mains.

     

    Question 1)

    How can the mountain ecosystem be restored from the negative impact of development initiatives and tourism? (15 Marks)

    Question 2)

    Individual parliamentarian’s role as the national lawmaker is on a decline, which in turn, has adversely impacted the quality of debates and their outcome. Discuss. (15 marks)

    Question 3)

    How is the government of India protecting traditional knowledge of medicine from patenting by pharmaceutical companies? (15 Marks)

    Question 4)

    Honesty and uprightness are the hallmarks of civil servants. Civil servants possessing these qualities are considered as a backbone of any strong organizations. In the line of duty, they take various decisions, at the time some become bonafide mistakes. As long as such decisions, are not taken intentionally and do not benefit personally, the officer cannot be said to be guilty. Though such decisions may, at times, lead to unforeseen adverse consequences in the long term. In the recent past, a few instances have surfaced wherein civil servants have been implicated for bonafide mistakes. They have often been prosecuted and even imprisoned. These instances have greatly rattled the moral fibre of the civil servants. How does this trend affect the functioning of civil services? What measures can be taken to ensure that honest civil servants are not implicated for bonafide mistakes on their part? Justify your answer. (20 marks)

    Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

    *In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

    For the philosophy of AWE and payment, check  here: Click2Join

  • Trading with America

    Context

    Trump has made India’s trade headache more acute. But he has also opened up opportunities.

    Political polarisation in both countries

    • Impeachment attempt: The Democrats in the US have struggled to oust Trump from the White House and rarely find anything they can agree with their President on.
    • The deeper political divide in India: While ousting Narendra Modi through a legal process of impeachment is not an option in India, the political divide is even deeper.
    • No consensus on foreign policy
      • Under Trump, consensus on foreign policy in Washington has broken down.
      • In Delhi, the Opposition has never been willing to acknowledge the diplomatic successes of the government.
      • But the usually bipartisan support for foreign policy in the strategic community has eroded.
      • Many leading voices of the establishment who have a long and distinguished service have become major critics of foreign policy.

    Comparison of India’s trade with the US and China

    • Trade with the US: In 1995, total two-way trade, including goods and services, between India and the US was $11 billion.
      • In 2018, it crossed $140 billion.
      • It is reported to be around $150 billion in 2019.
      • In trade with the US, India enjoys a surplus of nearly $23 billion.
      • A 14-fold increase in trade turnover in 25 years is certainly not something to sneer at.
      • Can India and the US do better on trade? Yes, of course.
      • Only a few years ago, the two sides were looking at an annual trade target of $500 billion. That looks rather ambitious amidst the current disputes
    • Trade with China: India’s China trade too has risen, even more rapidly.
      • From a couple of hundred million dollars in the mid-1990s to nearly $90 billion in 2019.
      • India has a deficit of nearly $57 billion with China.

    Trade disputes between India-US

    • Trade has long been a contentious issue between Delhi and Washington.
    • There had been enduring tension since the late 1980s between the US demand for-
      • Greater market access.
      • Intellectual property protection.
      • And a host of other demands and India’s own cautious approach to economic liberalisation.
    • Rise in pressure under Trump administration: All recent US administrations have applied continuous pressure on India for trade agreements.
      • The pressure has significantly risen under President Trump.
    • Trade dispute at the centre of the relationship: If his predecessors were willing to cut some slack for India by citing larger political and strategic considerations in the bilateral ties, Trump has put trade disputes at the front and centre of the relationship.
      • Officials in the Department of Commerce and the US Trade Representative’s office have adopted extremely aggressive tactics in the negotiation with India.
    • Result of a radical reorientation of US trade policy: Trump has undertaken a radical reorientation of US trade policy.
      • For Trump, this is a matter of long-standing ideological conviction as well as a political convenience.
      • He has bet that the anti-free-trade White working classes in the American rust belt are the key to his re-election.
    • No option but to deal with it: Given America’s pole position in the global trading system, you have no option but to deal with it.
      • Trump is getting away with his demand for the restructuring of trade relations with key economic partners.
      • He has renegotiated the NAFTA with neighbours Canada and Mexico and has compelled China to start reducing the massive trade deficit with the US.
    • The difference in India and China’s response to the US: In response to Trump’s pressure, Xi reaffirmed his commitment to economic globalisation and domestic liberalisation and wooed American investors with even greater vigour than before.
      • India embracing protectionism: India appears to be sending the opposite signal — of a definitive drift towards protectionism. India’s trade troubles are certainly not limited to the engagement with the US.

    Problem with India’s trade policies

    • India walking away from RCEP: Delhi walked away at the very last minute from signing the RCEP agreement last year to deep disappointment among its partners including the ASEAN, Australia, Japan and New Zealand.
      • The trade deficit with China: One of the main arguments cited by India was the massive trade deficit with China and the potential danger of it widening further under RCEP.
    • Failure in negotiations with the EU: The European Union is reluctant so far to restart trade negotiations that ended in great frustration for Brussels some years ago.
    • No deal with Australia and New Zealand: Australia and New Zealand have given up.
    • Neighbours complaint: India’s immediate neighbours complain that India’s rhetoric on connectivity and regionalism is matched by the multiple non-tariff barriers that continue to constrain commerce across the South Asian frontiers.
    • Why so many deals are pending? It is certainly probable, statistically, one in a million, that the fault lies, always, with India’s partners. But one would think there might be a real problem with Delhi’s own trade policies.

    Conclusion

    • New opportunity: Trump has certainly made India’s trade headache more acute. But he has also opened up opportunities.
      • His trade war on China has put pressure on the global supply chains centred around China.
      • India not the beneficiary of the US-China trade war: Many companies are moving their production out of China, but only a few are turning towards India.
      • While Delhi has talked the talk on taking advantage of the US-China trade war, it is yet to get its act together.
    • No opposition against protectionism at home: What makes Delhi’s devaluation of trade as a key instrument of economic growth potentially irreversible is the fact that there is little domestic political opposition to it.
    • Time to take a hard look at trade policy: For now, though, India’s partnership with the US might not only survive the current trade tensions but advance during Trump’s visit.
      • There is so much happening elsewhere in the relationship — especially in the defence and security domain.
      • But the time has come for Delhi to take a hard look at its current trade policy that threatens to undermine India’s regional and international prospects.

     

     

     

     

  • 20th February 2020 | Prelims Daily with Previous Year Questions

    [WpProQuiz 372]

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