The Karnataka Waqf Board has identified 17 monuments within the historic Bidar Fort as its own property.
These include the 16-Khamba Mosque (Sixteen Pillar Mosque) and 14 tombs of Bahmani rulers and their family members, including Ahmed Shah-IV, Allauddin, Hassan Khan, and others.
AboutBidar Fort:
It is situated in Bidar City on the northern plateau of Karnataka, India.
The fort’s history dates back over 500 years, beginning with the Western Chalukya dynasty.
Sultan Ahmed Shah Wali of the Bahmani dynasty made Bidar his capital in 1430 and renovated it into a strong citadel.
Architectural Features:
Constructed from trap rock with stone and mortar used for walls.
Notable for its Islamic and Persian architectural elements, including:
Seven main entrances
37 octagonal bastions equipped with metal-shielded cannons
Mosques, mahals, and over 30 Islamic monuments
The entrance gate features a lofty dome painted in bright colors.
About the Bahmani Kingdom
The Bahmani Kingdom was established in 1347 when Ala-ud-din Hassan Bahman Shan revolted against Muhammad Bin Tughlaq of the Delhi Sultanate.
This marked the creation of the first independent Islamic kingdom in South India.
The kingdom covered areas in present-day Karnataka, Maharashtra, and Andhra Pradesh.
Initially, the capital was set in Ahsanabad (Gulbarga) but was later moved to Bidar.
The Bahmani Kingdom had 14 sultans in total, with prominent rulers like Alauddin Bahman Shah, Muhammad Shah I, and Firoz Shah.
One of the kingdom’s notable statesmen, Mahmud Gawan, served as the Prime Minister for 23 years, from 1458 to 1481.
Under his guidance, the kingdom expanded its territories, including reclaiming Goa from the Vijayanagar Empire.
The Bahmani Kingdom began to decline around 1518 when Krishnadeva Raya of the Vijayanagar Empire defeated its last ruler, leading to the dissolution of the Bahmani rule in the region.
PYQ:
[2021] With reference to Indian history, which of the following statements is/are correct?
1. The Nizamat of Arcot emerged out of Hyderabad State.
2. The Mysore Kingdom emerged out of Vijayanangara Empire.
3. Rohilkhand Kingdom was formed out of the territories occupied by Ahmad Shah Durrani.
Select the correct answer using the code given below:
Philippine forces conducted combat exercises in the South China Sea to practice retaking the Loaita Island in the disputed waters.
About Loaita Island:
Loaita Island, also known as Kota Island, has an area of 6.45 hectares and is the 10th largest of the naturally-occurring Spratly Islands.
The island is administered by the Philippines as part of Kalayaan, Palawan, and is also claimed by China, Taiwan, and Vietnam.
Loaita Island fringes the Loaita Bank, which includes shoals and reefs, and its western side features calcarenite outcrops visible at low tide.
The island is covered with mangrove bushes, coconut palms, and other small trees.
On May 22, 1963, a sovereignty stele was rebuilt on Loaita Island by South Vietnam, marking its claim.
The Philippines has stationed soldiers on the island since 1968, and the island contains minimal structures serving as shelters for the soldiers.
China also reasserted its claim over Flashpoint Reef (the Scarborough Shoal) in the South China Sea following Philippines’ establishment of defined sea boundaries.
About the Flashpoint Reef
Flashpoint Reef generally refers to Scarborough Shoal (part of the
Spratly Islands), a contested reef in the South China Sea.
Known as Huangyan Dao in China, this reef has become a focal point of territorial disputes between China and the Philippines.
Flashpoint Reef lies close to the Philippines’ Exclusive Economic Zone (EEZ); which asserts control over the entire South China Sea under its nine-dash line claim.
China took control of the shoal in 2012 after a standoff with the Philippines, despite an international tribunal ruling in 2016 that invalidated China’s claims.
Do you know?
Fiery Cross Reef is a rock located in the Spratly Islands. China first took possession of the feature in 1988.
Mischief Reef is a Low-Tide Elevation (LTE) within the Philippines’ EEZ. It is part of the submerged continental shelf of the adjacent coastal state, which is the Philippines.
PYQ:
[2018] Consider the following pairs:
Regions sometimes Country mentioned in news
Catalonia — Spain
Crimea — Hungary
Mindanao — Philippines
Oromia — Nigeria
Which of the pairs given above are correctly matched?
The Indian Navy conducted the 3rd edition of MAHASAGAR Initiative, a high-level virtual interaction led by the Chief of Naval Staff.
Theme: “Training Cooperation to Mitigate Common Maritime Security Challenges in IOR,” emphasizing the importance of training cooperation to address shared maritime challenges.
About MAHASAGAR Initiative:
Details
About
MAHASAGAR stands for “Maritime Heads for Active (MAHA) Security and Growth for All in the Region (SAGAR)”
SAGAR Doctrine was culminated out of PM’s vision in 2015.
Launched by Indian Navy in 2023 as part of India’s commitment to maritime security and regional cooperation.
Held bi-annually.
Aims
Training Cooperation: Collaborative training efforts among IOR nations.
Capacity Building: Developing skilled manpower to address maritime security challenges.
Members
Countries bordering the Indian Ocean, include Bangladesh, Comoros, Kenya, Madagascar, Maldives, Mauritius, Mozambique, Seychelles, Sri Lanka, and Tanzania.
Chief of Naval Staff of India leads the interactions.
Heads of Navies, Maritime Agencies, and Senior Leadership from each participating country.
PYQ:
[2017] Consider the following in respect of Indian Ocean Naval Symposium (IONS):
1. Inaugural IONS was held in India in 2015 under the chairmanship of the Indian Navy.
2. IONS is a voluntary initiative that seeks to increase maritime cooperation among navies of the littoral states of the Indian Ocean Region.
Which of the statements given above is/are correct?
The Ministry of Law and Justice is inviting comments on the draft Commercial Courts (Amendment) Bill, 2024.
The GoI has enacted and amended the Commercial Courts Act, 2015 to ensure that commercial cases are resolved quickly, effectively, and affordably.
Amendment History:
The original Commercial Courts Act was enacted in 2015.
Further amendments were made in 2018 to enhance the dispute resolution system.
Keyfeatures and provisionsoftheCommercial Courts (Amendment) Bill, 2024:
Details
Purpose
To enhance the speed and efficiency of resolving commercial disputes through specialized courts and procedures.
Dedicated Commercial Courts
Creation of Commercial Courts at the District level and High Court level to exclusively handle commercial disputes.
Arbitration Matters
Provisions to establish specific courts for handling arbitration-related disputes.
Electronic Communication
Includes provisions for the use of audio-video electronic means (video conferencing) for court proceedings, recording of evidence, and communications.
Pre-Institution Mediation
Mandatory mediation before filing a commercial suit, unless urgent relief is required, aimed at reducing litigation burden.
Time-bound Decisions
Judgment must be pronounced within 60 days of the conclusion of arguments. The judgment must be delivered to the parties via email or other electronic means.
Injunction Applications
Courts must dispose of injunction applications within 90 days of filing, with reasons provided for any delay.
Infrastructure
Provisions for setting up infrastructure like video conferencing facilities and other necessary resources for the functioning of Commercial Courts.
Appeals Process
New provisions for expediting appeals, requiring prior notice to the opposing party before filing.
Witness Management
Provisions to streamline the witness list format, requiring comprehensive details, including addresses and documents, and facilitating electronic submission.
Execution Proceedings
Execution proceedings must be disposed of within six months from the date of filing the application.
Present an account of the Indus Water Treaty and examine its ecological, economic and political implications in the context of changing bilateral relations. (UPSC CSE 2016)
Q) With reference to the Indus river system, of the following four rivers, three of them pour into one of them which join the Indus direct. Among the following, which one is such river that joins the Indus direct? (UPSC CSE 2021)
a) Chenab b) Jhelum c) Ravi d) Sutlej
Mentor’s Comment: The Indus Water Treaty was signed in 1960 after extensive negotiations facilitated by the World Bank. It has successfully governed water sharing between India and Pakistan for over six decades, surviving numerous conflicts between the two nations.
The IWT has survived multiple conflicts between India and Pakistan, including three wars and ongoing military tensions. Pakistan has consistently raised objections to hydropower projects initiated by India, particularly the Kishanganga and Ratle river developments, claiming they violate the treaty’s provisions.
However, recent tensions have prompted India to reconsider its obligations under this long-standing agreement. Today’s editorial discusses several critical aspects related to India’s recent formal notice to Pakistan regarding the treaty.
_
Let’s learn!
Why in the News?
Indian Government has issued a formal notice to Pakistan requesting modifications to the Indus Water Treaty, citing “fundamental and unforeseen changes“.
Overview of the IWT and Recent Developments:
The Indus Waters Treaty (IWT), signed in 1960 between India and Pakistan, governs the allocation and management of water resources from the Indus River system. This treaty allows India unrestricted use of the eastern rivers (Sutlej, Beas, and Ravi) while allocating the western rivers (Indus, Jhelum, and Chenab) primarily to Pakistan. However, recent tensions have prompted India to formally request modifications to the treaty, raising significant geopolitical implications.
What prompted India to seek modifications to the Indus Waters Treaty?
Demographic Changes: Increasing population pressures necessitate greater water resource management.
Environmental Issues: The need for sustainable practices and clean energy development to meet emission targets.
Security Concerns: The impact of persistent cross-border terrorism on water management and treaty implementation.
Disputes over Hydropower Projects: Tensions have arisen over India’s hydroelectric projects on rivers like Kishanganga and Ratle, which Pakistan claims violate the treaty. India believes these projects comply with the agreement.
Perceived Imbalance: India feels the treaty disproportionately favors Pakistan, which receives about 80% of the Indus river system’s water, while India manages only 20%. This perceived imbalance has led to calls for a fairer distribution of resources.
How does the proposed modification process work under the treaty?
India has issued a formal notice to Pakistan that requires a reassessment of the treaty’s obligations as follows:
According to Article XII (3), any modifications to the treaty must be made through a duly ratified treaty concluded between the two governments.
Once a formal notice is issued, Pakistan has a specified period (typically three months) to respond to the request for renegotiation. The outcome of this response will determine the next steps in the modification process.
If Pakistan agrees to negotiate, both countries will enter discussions aimed at revising the treaty. This process is expected to address various concerns raised by India, including demographic changes, environmental issues, and security threats.
If Pakistan does not accept India’s proposal for modification, India retains the option to call for the termination of the treaty, although this would likely escalate tensions further.
The IWT also includes a graded Dispute Resolution Mechanism, which operates at three levels:
Level 1: Initial discussions occur at the level of the Permanent Indus Commission (PIC), where both parties can clarify any questions regarding planned projects. Level 2: If differences remain unresolved, they escalate to involve a Neutral Expert, who provides technical advice. Level 3: Finally, if disputes persist, they can be taken to a Court of Arbitration for binding resolution.
What implications could this modification have for India-Pakistan relations?
Diplomatic Strain and Increased Tensions: Pakistan may view India’s request as a threat to its water rights, leading to escalated tensions and potential conflicts over water resources.
The process of negotiating modifications could be challenging due to historical mistrust, making it hard for both countries to reach a consensus.
Water Scarcity Concerns: Modifying the treaty could either improve or worsen water security for both nations. Pakistan, which relies heavily on the Indus system, may feel particularly vulnerable, increasing the risk of conflict.
Geopolitical Ramifications: Changes to the treaty might destabilize the region, potentially leading to increased militarization or conflict, especially given both countries’ nuclear capabilities.
International Involvement: The World Bank and other international bodies may need to intervene if negotiations fail, complicating the situation and potentially drawing in other regional powers.
Way Forward: India’s request for modifications to the Indus Waters Treaty signals a significant shift in its approach to water resource management with Pakistan. As both countries face mounting pressures from changing demographics, environmental challenges, and security concerns, the future of this treaty may hinge on their willingness to engage in constructive dialogue and negotiate terms that reflect current realities.
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The landmark passage of the Nari Shakti Vandan Adhiniyam (Women’s Reservation Bill) in 2023 saw the Vice President reshaping the Rajya Sabha panel, marking a significant shift in the perception of women’s roles. Questions on women empowerment are the most common questions that appear repeatedly. But since this topic is so common, the questions would demand a certain level of expertise on the topic. We have captured this essence by talking about the topic from empowerment to true women-led development, we’ve also covered the expanding influence of women as decision-makers, highlighting their growing impact across fields like the judiciary, politics, management, and more.
GS 1 Indian Society: Role of Women and Social Empowerment Note4Students: Analyze how women’s leadership and increased representation reshape Indian society, promoting social progress and governance reforms.
Microtheme: Women and Associated concerns
GS 2 Governance, Polity, Social Justice: Women in Legislatures and Welfare Schemes Note4Students: Understand the impact of women’s reservation in parliament and women-led welfare schemes on gender equality and governance.
Microtheme: Women
GS 3 Economic Development, Technology, Environment: Inclusive Growth and Employment Note4Students: Examine the role of women in fostering inclusive growth and the challenges they face in gaining leadership roles in employment sectors.
Microtheme: Inclusive Growth
GS 4 Ethics, Integrity & Aptitude: Gender and Ethical Governance Note4Students: Explore how gender representation influences ethical decision-making in public administration and promotes gender-sensitive policies.
Microtheme: Foundational values
What specific measures have been recently taken to promote women’s participation in Rajya Sabha?
Reconstitution of the Vice-Chairpersons Panel: The Chairman of the Rajya Sabha reconstituted the panel to include only women during the historic passage of the Nari Shakti Vandan Adhiniyam (Women’s Reservation Bill), 2023.
Increased Representation in the Vice-Chairpersons Panel: The practice of nominating four women members (50% of the panel) was introduced, including significant figures like S. Phangnon Konyak and P.T. Usha.
Training of Women Officers for House Duties: Women officers of the Secretariat were trained to perform House duties, breaking the stereotype that these tasks were a male domain. Women now largely manage the Table of the House.
Introduction of ‘Vahan’ Application: A system to facilitate safe commutation for women officers working late hours was introduced, ensuring their safety during odd hours.
Appointment of Women in Key Roles: Women officers were appointed to key positions in human resources, legislative sections, and parliamentary committees.
What are the key outcomes from Nari Shakti Adhiniyam (2023)?
33% Reservation for Women in Legislatures: The Bill reserves 33% of seats for women in the Lok Sabha and State Legislative Assemblies, aiming to increase women’s participation in governance.
Long-term Impact on Women’s Representation: The Bill ensures that women are better represented in the political process, potentially reshaping the political landscape by empowering women as decision-makers.
Women as Key Participants in Development: By providing more opportunities for women in legislatures, it aligns with the goal of women-led development, where women set the agenda for governance and development policies.
Moving from Women Development to Women-led Development
Parameter
Women Development
Women-Led Development
Definition
Focuses on improving the social, economic, and political conditions of women, ensuring their empowerment and inclusion in development.
Women take an active leadership role in driving economic, social, and political development, shaping policies and initiatives.
Approach
Primarily top-down, where external entities (governments, NGOs) design and implement policies for women’s benefit.
Bottom-up approach, where women are key decision-makers, leading change and actively contributing to the development process.
Role of Women
Women are often recipients of development programs aimed at improving their status and welfare.
Women are leaders and drivers of development, playing a central role in policy formulation, execution, and governance.
Objective
Achieve gender parity by reducing gaps in education, health, employment, and political representation.
Foster a more inclusive development model where women shape societal progress, ensuring their perspectives and needs are central.
Examples
Programs aimed at improving maternal health, increasing female literacy, and reducing gender violence.
Women-led grassroots movements, women entrepreneurs driving economic change, and female politicians spearheading reform.
Women as Decision Makers
Women’s participation in decision-making is essential for a country’s development and social progress. When women are involved in decision-making, it leads to positive societal changes, including improved laws, policies, and social norms. Ensuring that women have an equal voice alongside men in decisions that impact their lives, families, and communities is crucial for advancing gender equality and improving quality of life. Society must actively promote women’s equal representation and power in all areas of decision-making to build inclusive and diverse institutions.
Women’s Political Participation in India
National Politics
Central Council of Ministers: Women’s representation peaked at 17.8% in 2015, currently at 14.5%.
Election Success: Women have a higher success rate than men in elections, yet participation remains low.
17th Lok Sabha: Highest women MPs in Odisha (33%), lowest in Kerala (5%).
Local Governance
73rd and 74th Amendments (1990s): Mandated 33% reservation for women in local bodies.
State-Level Initiatives: 20 states now have 50% reservation for women in Panchayati Raj Institutions.
Impact: Over 1 million women elected at local levels, improving grassroots political involvement.
Women’s Voter Turnout
Improved Participation: Women’s turnout in 2019 was 67.2%, surpassing men in states like Bihar and Goa.
Reason for Growth: Increased literacy has led to higher political awareness among women.
Women in Judicial Decision-Making
Current Representation in India
Supreme Court (2022): Out of 29 judges, only 3 are women.
High Courts: Only 13% of judges are women.
Global Issue: Low representation of women in the judiciary is not unique to India; it is a global challenge.
Women’s Representation in Management in India
Data Overview
Periodic Labour Force Survey (2020-2021):
Women in managerial positions:
2020: 18.8%
2021: 18.1%
Highest Representation (2021):
Mizoram: 41.5%
Sikkim: 32.5%
Manipur: 31.1%
Meghalaya: 30.9%
Andhra Pradesh: 30.3%
Lowest Representation (2021):
Dadra & Nagar Haveli and Daman & Diu: 1.8%
Uttarakhand: 3.4%
Jammu & Kashmir: 4.6%
Andaman & Nicobar Islands: 7.2%
Bihar: 7.3%
Women in Legislative and Senior Roles: As of 2022, 22.2% of those in positions like Legislators, Senior Officials, and Managers were women.
State Comparisons:
Better Performing States: Mizoram, Manipur, Meghalaya, and Andhra Pradesh show higher representation of women in management roles.
Lagging States: Dadra & Nagar Haveli, Daman & Diu, Uttarakhand, Andaman & Nicobar Islands, Punjab, and Nagaland have much lower representation of women in management.
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Ten years ago, India became the first country to legally mandate Corporate Social Responsibility (CSR). The section 135 of the Companies Act 2013 establishes the rules governing CSR.
According to the National CSR Portal, ₹1.84 lakh crore in CSR funds was disbursed between 2014 and 2023.
About CSR:
Corporate Social Responsibility (CSR) is a business practice where companies contribute to social, economic, and environmental betterment, addressing societal needs alongside their profit-making objectives.
In India, the minimum percentage of a company’s net profit that must be spent on corporate social responsibility (CSR) is 2%.
Sectoral division of CSR:
Education: Receives the highest CSR share (33%-40%) for building schools, scholarships, infrastructure, and vocational training.
Health Care: Allocates 20%-30% of CSR funds to hospitals, health camps, sanitation, and disease prevention.
Environmental Sustainability: Accounts for 5%-10% of CSR funds, with projects in biodiversity conservation, waste management, and renewable energy.
CSR’s Role in Agriculture
Claims 10%-15% of CSR funds, targeting infrastructure, agricultural practices, and livelihood support.
Since the enactment of the Companies Act in 2013, which mandates CSR spending, a total of Rs 1.84 lakh crore has been disbursed in CSR funds from 2014 to 2023.
These funds have increasingly targeted sustainability initiatives within agriculture, with 23% of surveyed companies prioritizing “environment and sustainability” in their CSR activities.
Over 90.8% of farmers involved in CSR programs reported improvements in income or risk reduction due to these initiatives.
How much of an impact does Agriculture have on India’s GDP?
Agriculture contributes approximately 15% to 18.2% of India’s GDP, reflecting a decline from 35% in 1990-91 due to rapid growth in the industrial andservice sectors. The average annual growth rate of the agricultural sector has been around 4% over the last five years. (acc to pib data)
Agriculture remains crucial for employment, providing livelihoods for about 42% of the population, which is significantly higher than the global average of 25%.
What are the key requirements to improve agricultural sustainability?
Investment in Infrastructure: There is a pressing need for capital investment in infrastructure development, including irrigation systems, cold storage, and transportation networks to reduce post-harvest losses and improve market access.
Technological Advancements: Adoption of modern agricultural practices and technologies is essential. This includes better seed varieties, efficient irrigation methods, and sustainable farming techniques to enhance productivity.
Environmental Sustainability Initiatives: Projects focusing on water conservation, energy-efficient irrigation, and agroforestry are critical for maintaining ecological balance while improving agricultural output.
What hinders CSR’s potential for agriculture?
Lack of Clear Reporting Mechanisms: One of the main obstacles is the absence of robust frameworks to track and categorize CSR funding specifically directed towards agricultural initiatives. Current reporting practices do not emphasize agriculture-related CSR activities adequately.
Diverse Allocation Categories: CSR activities can fall under multiple categories (e.g., gender equality, and environmental sustainability), making it difficult to isolate funds specifically aimed at agricultural sustainability. This lack of specificity hampers effective monitoring and impact assessment.
Need for Distinct Sector Identification: To maximize CSR contributions to agriculture, it is crucial to identify agriculture as a distinct sector within CSR activities. This would streamline funding processes and enhance transparency and accountability in how funds are utilized for agricultural development.
Way forward:
Establish Agriculture as a Separate CSR Category: Need to create a distinct sector for agriculture in CSR reporting to streamline funding, improve transparency, and enable targeted monitoring of agriculture-focused initiatives.
Implement Comprehensive Reporting Frameworks: The government should develop robust mechanisms for tracking CSR funds specifically allocated to agricultural projects, ensuring clear categorization and facilitating better impact assessments.
Mains PYQ:
Q With a consideration towards the strategy of inclusive growth, the new Companies Bill, 2013 has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also discuss other provisions in the Bill and their implications. (UPSC IAS/2013)
The Union Minister of Fisheries, Animal Husbandry, and Dairying launched the ‘Animal Health Security Strengthening in India for Pandemic Preparedness and Response’ initiative in New Delhi.
What is the primary aim of the Animal Health Security Project?
The Animal Health Security Project aims to strengthen India’s capacity to prevent, detect, and respond to animal health threats, reducing zoonotic disease risks through enhanced surveillance, laboratory systems, and regional collaboration.
What are the objectives of the Animal Health Security Project?
Prevention, Detection, and Response: Enhance India’s ability to prevent, detect, and respond to animal health threats, minimizing risks of pathogens transmitting from animals to humans.
Strengthen Surveillance Systems: Improve and integrate animal disease surveillance and early warning systems to promptly identify potential threats.
Laboratory and Vaccine Infrastructure: Upgrade and expand laboratory networks and vaccine manufacturing facilities to ensure preparedness.
Data Systems and Analytics: Strengthen interoperable data systems and analytics capabilities to support informed decision-making and risk communication.
Cross-Border Collaboration: Promote regional cooperation for transboundary animal disease control through cross-border collaborations.
How is the project funded and what is its timeline?
The project is funded by the Pandemic Fund established by the G20 countries, which aims to help low- and middle-income countries improve their pandemic preparedness.
The fund’s first round raised $2 billion, and India’s project received a $25 million grant.
The project will be implemented by the Asian Development Bank (ADB), the World Bank, and the Food and Agriculture Organization (FAO).
Timeline: Expected to conclude by August 2026.
Why is this project necessary for India?
Zoonotic Disease Threat: About two-thirds of infectious diseases in humans are zoonotic (transmitted from animals), with recent examples including COVID-19. India’s large population of 536 million livestock makes it vulnerable to zoonotic outbreaks.
Public Health Impact: With five of the six major global public health emergencies in recent decades being zoonotic, the project is crucial for India’s pandemic prevention and public health security.
Vulnerable Population Protection: By addressing animal health threats, the project aims to protect the health, nutritional security, and livelihoods of vulnerable populations reliant on livestock.
Way forward:
Strengthen Coordination Across Sectors: Enhance collaboration between animal health, public health, and environmental sectors to create an integrated response to zoonotic threats, ensuring swift data sharing and response mechanisms.
Sustain Capacity Building and Infrastructure Investments: Ensure continued investment in laboratory networks, vaccine production, and training to maintain preparedness, and bolster resilience against emerging animal-to-human diseases beyond the project’s timeline.
Mains PYQ:
Q COVID-19 pandemic has caused unprecedented devastation worldwide. However, technological advancements are being availed readily to win over the crisis. Give an account of how technology was sought to aid management of the pandemic. (UPSC IAS/2020)
According to NITI Aayog CEO, India should join the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
What are the implications of India joining RCEP and CPTPP?
Enhanced Trade Opportunities: Joining RCEP and CPTPP could significantly boost India’s trade by providing access to larger markets, particularly in Asia-Pacific regions.
These agreements encompass a wide range of goods and services, potentially increasing India’s exports, especially from its Micro, Small & Medium Enterprises (MSMEs), which account for 40% of exports.
Integration into Global Supply Chains: Participation in these trade blocs would facilitate India’s integration into global supply chains, allowing it to benefit from the ‘China plus one’ strategy that many countries are adopting to diversify their supply sources away from China.
This could enhance India’s manufacturing sector and attract foreign investment.
Regulatory Alignment: Being part of these agreements would necessitate aligning India’s regulatory frameworks with international standards, which could improve the business environment and attract more foreign direct investment (FDI).
How does India’s current tariff structure affect its competitiveness in global trade?
India’s current tariff structure is characterized by relatively high average tariffs compared to other major economies. For instance:
Average Tariffs: India has an average applied tariff of approximately 13.8%, which is higher than that of China (9.8%) and the U.S. (3.4%) but lower than some other countries when considering trade-weighted averages.
High Bound Tariffs: Many of India’s bound tariff rates on agricultural products are among the highest globally, ranging from 100% to 300%, creating significant barriers for foreign exporters.
What are the risks associated with joining RCEP, particularly concerning competition with China?
Increased Competition with China: One of the primary risks of joining RCEP is the potential for increased competition with Chinese firms, which may have cost advantages due to economies of scale and established supply chains.
Pressure on Domestic Industries: Opening up to international competition might pressure local industries, particularly in sectors where they are less competitive compared to their counterparts in member countries.
This could lead to job losses and require significant adjustments within certain sectors.
Easy geopolitical Impact on the economy: Increased reliance on trade agreements may expose India to external economic fluctuations, particularly if global demand shifts or if geopolitical tensions impact trade dynamics within these blocs.
Way forward:
Selective Tariff Reductions and Safeguards for Sensitive Sectors: India should negotiate phased tariff reductions and secure safeguards for vulnerable sectors like agriculture and small manufacturing.
This approach would protect local industries while allowing gradual integration into RCEP and CPTPP markets.
Strengthening Domestic Industries and MSMEs: India can boost competitiveness by enhancing MSME support through targeted subsidies, infrastructure improvements, and technology upgrades. Strengthening these sectors will help India leverage new market access and build resilience against foreign competition.
Mains PYQ:
Q Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (UPSC IAS/2016)
