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[Burning Issue] The Adani-Hindenberg Issue
Context
- In a little over a week since New York-based investor research firm Hindenburg Research has accused industrialist Gautam Adani-led conglomerate of “brazen stock manipulation and accounting fraud scheme over the course of decades”.
- This edition of the Burning issue will elaborate on the Hindenberg research issue and other factors coming out of the issue.
About the Hindenberg group and its report
- Hindenburg Research is a company that specializes in forensic financial research.
- It especially looks for accounting irregularities; undisclosed related-party transactions; illegal/ unethical business or financial reporting practices; and undisclosed regulatory, product, or financial issues in companies.
- In late January, Hindenburg Research, which specializes in short selling, published a report critical of the group’s finances.
- The research firm, which has short positions in Adani companies through US-traded bonds and non-Indian-traded derivative instruments, said key listed companies in the group had “substantial debt” which has put the entire group on a “precarious financial footing”.
Outcome of the report
- The seven listed firms have still lost about half their market value – or more than USD 100 billion combined – since the US-based short-seller last week questioned the group over its debt levels, Reuters reported. The listed Adani firms now have a combined market value of USD 108 billion, versus USD 218 billion before Hindenburg’s report.
- Political storm: The report has also caused a political storm in the country with opposition stalling the parliament and demanding a JPC or Supreme court led investigation of the allegations against the Adani Group on the basis of the Hindenburg report.
UPSC exam perspective
- Since the issue is still evolving and both sides are claiming them to be true, the actual truth remains unknown.
- Therefore, this article will tell about both facets of the issue.
The Brighter Picture
Importance of Billionaires for a Nation
- Development of industries: Companies established by these billionaires invest in the development of industries in a nation which in turn helps in the development of the nation. The Reliance group’s telecom giant Jio, Reliance petrochemical plants and Adani Ports, energy are to name a few.
- The face of nation: billionaires represent the face of their nation. Bill Gates, Elon musk, Jack Ma, Mukesh Ambani are well-known billionaires recognized around the world.
- Brings investment: the companies of these billionaires attract a huge amount of foreign investments which help a lot in bringing new technologies and also capital in the domestic economy. For example- Google has paid ₹33,737 crores to Jio Platforms Limited, a subsidiary of the Mukesh Ambani-owned Reliance Industries Limited (RIL).
- Reduce import dependence: With the coming of new technologies or establishing industries for the manufacturing of the products not produced in the country, companies of these billionaires help in reducing imports of the nation. For example, the TATA group, Reliance and Adani have established their defense manufacturing companies which are helping in reducing defence imports and indigenization of defence products.
- Represent face of emerging India– Oxfam India’s latest report which was released on the opening day of the World Economic Forum in Davos, Switzerland reveals that the total number of billionaires in India increased from 102 in 2020 to 166 billionaires in 2022. It’s an indication of the growing economy in India.
- High taxes to government: The billionaires and their companies pay high amounts of taxes to the government, therefore, helping the nation grow. According to an estimate, A 2% tax on the top 100 billionaires would give the government enough money to raise health expenditure to 3% of the GDP.
- Philanthropy: Billionaires in India are well known for their philanthropy. Billionaires Gautam Adani, HCL Technologies’ Shiv Nadar, and Happiest Minds Technologies’ Ashok Soota are the three Indians who have been named in the 16th edition of Forbes Asia’s Heroes of Philanthropy list.
The case of Adani group and its contribution to India’s growth
- Adani Group is one of India’s largest conglomerates and is involved in a wide range of industries and activities, including energy, infrastructure, logistics, resources, agribusiness, and real estate.
- Adani has been instrumental in the development of India’s energy security, with the Adani Group owning and operating the world’s largest solar power plant in Gujarat. Additionally, Adani’s efforts have resulted in the development of numerous infrastructure projects across India, such as ports, airports, roads, and highways. His company is also involved in activities such as mining, power generation, and transmission, and is a major player in the renewable energy sector.
- In addition to his business accomplishments, Adani has also been involved in several philanthropic initiatives, such as the Adani Foundation, which provides education and healthcare services to underprivileged communities.
The Darker Picture
- Leads to crony capitalism: A political-economic system in which success in business depends on close relationships between business people and government officials, rather than on merit and competition. Adani Group (CAG report highlighted “undue benefits” that the Gujarat government gave to Adani Ports by waiving waterfront and other charges); The 2G spectrum scam; Coalgate Scandal etc. Also, India was ranked in 9th position in crony capitalism where crony sector wealth accounted for 3.4% of Gross Domestic Product (GDP)
- Creates Distrust in the economy: The revelation of facts, such as by the Hindenberg Report, creates distrust in the economy leading to decreased capital inflows and thus investments.
- Stock market crashes: Such a report causes economic loss to companies as happened recently with Adani company’s stocks.
- Propaganda against India: such reports are also claimed to be part of the propaganda to tarnish India’s image at the global level. The timing of the release of the Hindenburg report is susceptible- just before release of Rs 20,000 crore FPO by Adani group and the Budget session of Indian parliament.
Ethical issues with billionaires
- Tax Avoidance: Many billionaires take advantage of loopholes and offshore accounts to avoid paying taxes on their income, depriving governments of much-needed revenue.
- The exploitation of Workers: Billionaires often employ workers from developing countries, paying them low wages and subjecting them to poor working conditions.
- Political Power: Some billionaires use their wealth to influence politicians and governments, creating a system of unequal power and privilege.
- Concentration of Wealth: The vast wealth of billionaires is often seen as morally wrong when so many people in the world live in poverty.
Conclusion
- The ultimate major loser in this row is the investors in Adani Group who suffered losses after the short-seller Hindenburg Research’s report. Thus, currently, there is a need to safeguard the investors.
- The Securities and Exchange Board of India (SEBI) should suggest measures to ensure the protection of Indian investors after the short selling.
- Simultaneously, the allegations against Adani Group must be verified by SEBI through an independent inquiry along with the role of Hindenberg Research in the whole issue.
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Discovery of Lithium Deposits in J&K
The Geological Survey of India found “inferred resources” of 5.9 million tonnes of lithium in the Salal-Haimana area of Reasi district in Jammu and Kashmir.
What is Lithium?
- Lithium is a chemical element with the symbol Li and atomic number 3.
- It is a soft, silvery-white alkali metal and is the lightest metal on the periodic table.
- It is used in a variety of applications, including batteries, lubricants, pharmaceuticals, and nuclear weapons.
What are Inferred Resources?
- According to the mines and minerals act, the exploration for any mineral deposit involves four stages: reconnaissance survey (G4), preliminary exploration (G3), general exploration (G2) and detailed exploration (G1).
- Resources identified after G4 are called ‘reconnaissance mineral resource”, those identified after G3 are “inferred mineral resource”, G2 leads to “indicated mineral resource” and G4 precedes “measured mineral resource.”
Applications of Lithium
- Lithium-ion batteries: Lithium-ion batteries are widely used in consumer electronics such as laptops, cellphones, and portable music players due to their high energy density and low self-discharge rate.
- Pharmaceuticals: Lithium is used in the treatment of bipolar disorder and other mental health disorders. It can be used to treat symptoms such as depression, anxiety, and aggression.
- Heat transfer fluids: Lithium is used as a heat transfer fluid in nuclear power plants, as it can absorb and store large amounts of heat.
- Air conditioning: Lithium-based compounds are used in air conditioning systems to absorb and store heat, which helps to cool air.
- Alloy production: Lithium is used to produce lightweight alloys for aircraft and spacecraft, as well as components for other vehicles.
- Grease lubricants: Lithium-based grease lubricants are used in automotive and industrial applications due to their high temperature and pressure tolerance.
Significance of this discovery
- Clean energy goals: This has raised hopes of India possibly developing its own source of a metal key to its clean energy goals.
- Import cuts: It would reduce the need for imports. The government was taking several measures to secure minerals, including lithium, from Australia and Argentina.
- Enhance battery production: The find is a major boost to the manufacture of rechargeable batteries for smartphones, laptops and electric cars.
Back2Basics: Mines and Minerals (Development and Regulation) Act, 1957
- It is an Act of the Parliament enacted to regulate the mining sector in India.
- It regulates all activities related to the prospecting for, extraction and disposal of minerals in India.
- The Act was amended in 2015 to incorporate the changes brought about by the Mines and Minerals (Development and Regulation) Amendment Act, 2015.
- The amendment Act has been enacted to ensure that the mining sector is developed in a sustainable and efficient manner, taking into account the interests of stakeholders including the local communities.
- The Act also provides for the sharing of revenues between the Union and the States.
Types of Minerals Covered
- Metallic Minerals: Iron ore, manganese ore, chrome ore, bauxite, copper ore, gold ore, lead ore, zinc ore, etc.
- Non-Metallic Minerals: Mica, limestone, dolomite, gypsum, phosphorite, graphite, quartz, sandstone, etc.
- Atomic Minerals: Uranium, thorium, and other radioactive minerals.
- Fossil Fuels: Oil, natural gas, coal, etc.
- Minor Minerals: Building stones, gravel, ordinary clay, ordinary sand, etc.
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Religious Excommunication of Members
A Constitution Bench of the Supreme Court referred to a larger Bench of nine judges a series of petitions challenging the authority of minority community leaders to excommunicate their members.
Excommunication case: A quick backgrounder
- On November 1, 1949, the Bombay Prevention of Excommunication Act (now repealed) was enacted, which sought to prevent the practice of excommunication prevalent in certain communities.
- Excommunication has led to the deprivation of legitimate rights and privileges of its members and in “keeping with the spirit of changing times and in public interest”.
What is Excommunication?
- The law defined excommunication as the “expulsion of a person from any community of which he is a member, depriving him of rights and privileges which are legally enforceable by a suit of civil nature”.
- It invalidated excommunication of any member, “notwithstanding anything contained in law, custom, usage” for the time being in force.
Issues with Excommunication
- Discriminatory: Excommunication is a serious and permanent punishment that can have a negative impact on a person’s life.
- Loss of identity: It can lead to a person feeling isolated, ostracized and excluded from the religion and community.
- Social boycott: It may also lead to feelings of guilt, shame and alienation. Furthermore, it can lead to a loss of faith and a sense of mental despair.
How did the matter reach the Supreme Court?
- A cleric of the community challenged the constitutional validity of the Act, stating it violated fundamental rights guaranteed by the Constitution under:
- Article 25 (Freedom of conscience and free profession, practice and propagation of religion) and
- Article 26 (Freedom to manage religious affairs)
- It was submitted that the power of excommunication was part of the management of community affairs in matters of religion.
- The cleric also held that the power to excommunicate is not absolute or arbitrary.
What has been happening in the matter more recently?
- A Constitution Bench of the SC held in 1962 that the cleric’s position is an essential part of the community and the power to excommunicate is to enforce discipline and preserve the denomination, not to punish.
- A challenge to the 1962 judgment was filed in 1986.
- While that petition was still pending, the Maharashtra Protection of People from Social Boycott (Prevention, Prohibition and Redressal) Act, 2016, was passed.
- The 2016 Act prohibits the social boycott of a person or a group of persons, and terms it a violation of fundamental rights.
- The Act describes a social boycott as “inhuman”, and defines 16 types of social boycott — including preventing members of a community from having access to facilities including community halls, burial grounds, etc.
What exactly did the Supreme Court say now?
- A Constitution Bench said that the 1962 judgment needed a relook.
- The court held that the consideration was needed mainly on two grounds: Balancing the rights under-
- Article 26(b) — right of religious denominations to manage their own affairs in matters of religion — and
- Article 21 — whether the practice can be protected under Article 26(b) when tested on the touchstone of constitutional morality.
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In news: Delhi-Mumbai Expressway
Photos of the soon-to-be-inaugurated Delhi-Mumbai Expressway have gone viral, receiving widespread appreciation online.
Delhi-Mumbai Expressway
- The Delhi-Mumbai Expressway is a proposed 1380 km expressway that will link the capital city of Delhi to Mumbai, India.
- The expressway is being planned as a six-lane expressway and will pass through the states of Uttar Pradesh, Rajasthan, Madhya Pradesh and Maharashtra.
- Started in 2018, the project is set to be completed by the end of 2023.
- The expressway is expected to reduce the travel time between Delhi and Mumbai by up to 12 hours.
- The expressway will also have several rest stops and will be equipped with advanced technology such as electronic toll collection, smart traffic management and surveillance systems.
- The expressway will be built in a Public-Private Partnership (PPP) model.
Some basic details
- The expressway is being constructed with an initial budget of INR 98,000 crore.
- According to claims by the Ministry of Road Transport and Highways, it will reduce the distance between Delhi and Mumbai by 180 km (from 1424 km to 1242 km).
- Depending on the volume of traffic the expressway sees, there are plans in place to expand it to a 12-lane expressway in the future.
- The reduction in distance and travel time is set to result in annual fuel savings of more than 320 million litres and reduce CO2 emissions by 850 million kg.
Some unique features
- Importantly, the Delhi-Mumbai Expressway is set to introduce certain features seldom seen in road construction in India.
- According to claims from the Ministry of Road Transport and Highways, the expressway will boast of a state-of-art traffic management system.
- There will also be a dedicated three metre wide corridor for laying utility lines including fibre optic cables, pipelines as well as solar power generation.
- The expressway will also have provisions for rain water harvesting at intervals of 500 m, with over 2000+ water recharge points.
Provisions for wildlife conservation
- A crucial feature of the project will be its provisions for “wildlife conservation”.
- The expressway is the first in Asia and only the second in the world to feature animal overpasses and underpasses to facilitate unrestricted movement of wildlife.
- Furthermore, the expressway has been aligned in a way to minimize the destruction of protected forests.
- Two iconic 8-lane tunnels will also be built, one through Mukundra sanctuary without disturbing the endangered fauna in the region and the second through the Matheran eco-sensitive zone.
- A 3 ft tall boundary wall and sound barriers will also be constructed in sections prone to wildlife.
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Today in History: Treaty of Alinagar
Signed on February 9, 1757, the Treaty of Alinagar between the Nawab of Bengal and the East India Company raised the curtains for British colonial expansion in India.
Treaty of Alinagar, 1757
- Signed on February 9, 1757, the Treaty of Alinagar was signed between Robert Clive of the East India Company and Mirza Muhammad Siraj Ud Daula, then Nawab of Bengal.
- It is said to be one of the key events leading up to the Battle of Plassey later that year.
- Plassey was where the English laid a significant blow, defeating the nawab. It paved the way for the East India Company’s takeover of Bengal.
- The name Alinagar was a short-lived reference to modern-day Kolkata, and the treaty came about after the nawab was faced with both the British and Afghan forces.
- He compromised with the former; however, the peace was short-lived.
British advent in India: A quick backgrounder
- After the Anglo-Mughal War which took place between 1686 and 1690, the British began consolidating their presence in the subcontinent.
- It had established the Fort St. George in what was Madras, Fort William in then Calcutta and Bombay Castle by the beginning of the 18th century.
- The British initially helped local princes and nawabs quell uprisings or revolts and they, in turn, gave them concessions.
Course of the treaty
- In January 1757, the British attacked the town of Hooghly, close to then Calcutta, with over 700 men.
- The Nawab of Bengal, Siraj-ud-daulah, who had just come to power a year earlier in his early 20s, mobilised forces.
- His troops would overpower the British and reach Calcutta on January 10, 1757, having lost over 600 men.
- However, the losses sustained in the war had resulted in the nawab losing confidence.
- He signed what came to be known as the Treaty of Alinagar with Robert Clive – who became the first British Governor of the Bengal Presidency – on February 9, 1757.
- Siraj-ud-daulah agreed to the restoration of the company’s factories and allowed for the fortification of Calcutta.
Aftermath of the battle
- The British then moved on to wrest the remaining territories in Bengal from the French, laying siege to Chandannagar.
- However, the move did not go down well with the nawab.
- But, Daulah was also wary of Afghan forces under Ahmad Shah Durrani and the Marathas.
- Traders in his kingdom were already wary of him and there was a conspiracy led by the likes of his military general, Mir Jafar.
- Events would later culminate in the Battle of Plassey on June 23, 1757.
- It resulted in the East India Company gaining hold of Bengal and was a significant event in its rise to power in the subcontinent.
Try this question.
Q.For most Indians, the history of British colonial rule in India begins in Plassey. However, the roots of it were sown long back. Discuss. (250W)
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Pulses: The sustainable crops
Context
- The United Nations General Assembly endorsed the request made by the Government of Burkina Faso regarding the annual observance of World Pulses Day on 10 February at its 73rd session in December 2018, building on the success of the 2016 International Year of Pulses, with Food and Agriculture Organisation (FAO) playing a leading role in the campaign.
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Theme for World pulses day 2023
- The 2023 World Pulses Day’s theme is Pulses for a Sustainable Future, which underlines the significance of pulses in fostering equity and generating chances for livelihood, both of which are essential elements of sustainable agrifood systems.
In short: All you need to know about Pulses
- Major pulses that are grown in India: Tur, urad, moong, masur, peas and gram.
- Chief Characteristics:
- Pulses are the major sources of protein in a vegetarian diet.
- Being leguminous crops, all the above-mentioned pulses (except tur) help in restoring soil fertility by fixing nitrogen from the air.
- These crops are mostly grown in rotation with other crops.
- Pulses need less moisture and survive even in dry conditions.
- Important Producing Areas: The major pulse producing areas are Madhya Pradesh, Uttar Pradesh, Rajasthan, Maharashtra and Karnataka. It is grown on about 11% of the total sown area in India.
- India is largest producer and consumer: India is the largest producer as well as consumer of pulses in the world. About 25% of the pulses of the world are produced here.
In Depth: Why pulses are important?
- Pulses withstand drought: Pulses have a lower water footprint than other food crops and are better able to withstand drought and climate-related calamities making them a crucial tool for adjusting to and reducing climate change.
- Help farmers in water scarce region: They also help farmers in water-scarce regions have a better quality of lives.
- Can help to increase productivity and livelihood: In a number of farming systems, including agroforestry, intercropping, and integrated farming systems, pulses can help to increase productivity and improve the resilience of agricultural livelihoods.
- Pulses ensures wholesome food and sustainable use of natural resources: The global pulses industry which deals with the production and trade of pulses also demonstrates to be a beneficial force in ensuring the stability of regional and global supply chains, enabling consumers to access wholesome foods, and promoting the sustainable use of natural resources.
- Most Valuable Player for Health: Pulse grains have been acknowledged as being a “Most Valuable Player” in preventing obesity, lowering chronic diseases such as diabetes and heart disease, and fostering a varied microbiome in children who are at risk of stunting during the first 1,000 days of their life.
- Two to three times as much protein as cereals: Pulses are a great choice for populations with diets low in protein because they contain two to three times as much protein as cereals.
- Pulses provide a number of other assets to the climate change battle: They lessen the requirement for fertiliser throughout the entire crop cycle and reduce greenhouse gas emissions by fixing atmospheric nitrogen.
- Help to achieve SDG’s: A significant advantage in a changing climate is that many pulse crops are evolved to grow in arid circumstances and can withstand drought stress better than most other crops. Thus, achieving Sustainable Development Goals 2, 3, and 13 which call for improved human health, sustainable agriculture, food security, and climate action.
Pulse consumption in India
- Imports are necessary because of insufficient production: India is currently the world’s largest producer and consumer of pulses, but because production is insufficient to meet demand, imports are necessary.
- India’s demand for pulses has steadily increased: In keeping with the government’s measures to expand pulse production to meet domestic demand, the volume of imports has consistently decreased since 2014-15.
- National Food Security Mission-Pulses programme: To increase the production of pulses, the Government of India is implementing National Food Security Mission-Pulses programme across 644 districts of 28 States and Union Territories (UTs) of Jammu & Kashmir and Ladakh.
- In Indian diets, pulses are a crucial source of protein: Children, adolescent girls, and pregnant and lactating women receive half of the recommended dietary requirement of protein through the Government of India’s food security programmes.
Way ahead
- Pulses to combat malnutrition: Pulses can be included to cereal-based meals to help combat malnutrition. There is evidence to support the fact that people who eat pulses more frequently are more nutrient-secure.
- For example: During the pandemic, 5 kg of rice/wheat and 1 kg of selected pulses were provided to the poor under the Pradhan Mantri Garib Kalyan Yojana.
- PDS can be utilised for better accessibility and affordability: As a matter of policy, the PDS should offer pulses at discounted prices to increase their accessibility and affordability to vulnerable population.
- For instance: Some states, including Andhra Pradesh, Telangana, Haryana, and Himachal Pradesh, have been successful in distributing pulses under the Public Distribution System (PDS).
Conclusion
- India is moving closer to Aatmnirbharta on pulses with consistent efforts by the government. It is vital to raise awareness about the benefits of eating pulses that are high in macronutrients for both sustainability and dietary needs.
Mains question
Q. India is expanding its pulse production to meet domestic demand. In this light discuss what makes pulses a significant crop?
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Air Pollution in Mumbai: An unusual phenomenon needs to be studied
Context
- Anthropogenic emissions are central to environmental issues, whether climate change or air quality. During the peak winter months of November to January in 2022-23, air quality in India’s financial hub, Mumbai, noticeably deteriorated, a taste of what Delhi encounters frequently.
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Mumbai’s deteriorated air quality
- Out of the past 92 winter days, Mumbai observed 66 poor and very poor air quality days in 2022-23 as compared to just 28 in the past three years’ average. More so, it had just one day in the permissible limit (NAAQS) this year as against the average of 15 days in the recent past.
- Good days declined, but foul days have increased by a whopping 135 per cent, leaving residents more choked and breathless than they have been in years.
- On many days during these months, the air quality in Mumbai sank lower than in Delhi.
- These findings are from India’s first indigenously-developed forecasting framework, SAFAR.
What caused this unusual development in Mumbai?
- Mainly due to emissions from anthropogenic and natural sources: Air quality deteriorates mainly due to emissions from anthropogenic and natural sources, and weather manoeuvres.
- La Nina, attributed to climate change, has played an unusual role: The reason for the sudden spike in the current pollution cycle in Mumbai is part of a larger meteorological phenomenon that needs to be studied further. Research suggests that the unprecedented triple dip in La Nina, attributed to climate change, has played an unusual role.
- Extreme weathers due to climate change but linkage with air quality remains elusive: Scientists have discovered that climate change is leading to extreme weather, changes in the ecosystem, and human displacements, but linkages with air quality remain elusive.
Value addition
- The weather or climate cannot generate emissions.
- Some cities like Delhi have a disadvantage due to their geographical location, being landlocked.
- But coastal cities like Mumbai enjoys a natural cleansing advantage.
- Stronger surface winds favour faster dispersion and wind reversal cycles of strong sea breezes that sweep away air pollutants from the land.
How this phenomenon has played an unusual role?
- Change in wind patterns: This phenomenon has led to the change in wind patterns affecting Mumbai, with frequent calmer wind spells, and delayed cleaner sea wind reversal around the region.
- Reducing dispersal rate of pollutants: This, in turn, affects the natural cleansing mechanism of the city by reducing the dispersal rate of pollutants and trapping the newly generated high-flying dust emissions.
- Import of transboundary pollution: The import of transboundary pollution from more polluted regions due to wind pattern changes is also adding to the misery. An increase in all sizes of particles (coarser and finer) has been observed.
- Dust emission is the major reason: It is scientifically prudent to conclude that the major share in the current worsening of air quality is from dust emissions. Many redevelopment and construction projects are operational across the city. So, the increase is due to intensifying emissions at the source, which usually consist of PM 2.5 made up of transport (31 per cent), industries (20 per cent), and resuspended dust (15 per cent), besides other smaller sources.
All you need to know about “SAFAR”
- SAFAR stands for System of Air Quality and Weather Forecasting and Research.
- It is an initiative of the Union Ministry of Earth Sciences for greater metropolitan cities of India to provide location-specific information on air quality in near real time and its forecast 1-3 days in advance.
- It was started under the plan scheme Metropolitan Advisories for Cities for Sports, Tourism (Metropolitan Air Quality and Weather Services)
- The SAFAR system is developed by Indian Institute of Tropical Meteorology, Pune, along with ESSO partner institutions namely India Meteorological Department (IMD) and National Centre for Medium Range Weather Forecasting (NCMRWF)
- The implementation of SAFAR is done with an active collaboration with local municipal corporations and various local educational institutions and governmental agencies in that Metro city.
- It was started on a Pilot basis in the cities of Pune, Ahmadabad, New Delhi and Mumbai.
Way ahead
- The battle against air pollution is long and difficult, but success is achievable beyond doubt.
- Putting green curtains around construction sites, regularly sprinkling water on truck tyres and debris before loading and unloading material, and ensuring smooth traffic flow to overcome snarls are some of the immediate remedies.
- In the medium term, transitioning to electric vehicles, addressing solid waste management, dumping grounds, and industrial toxin management are some actions that will help us achieve better air quality.
Conclusion
- Before we start to address the problem, we need to recognise it. Acting together and strengthening the fight against air pollution should be the order of the day. The situation is not currently urgent, but it is a clear early sign of the impact climate change can have. Hence, we must address the root cause of the problem anthropogenic emissions instead of looking for shortcuts.
Mains question
Q. Anthropogenic emissions are central to environmental issues, whether climate change or air quality. Give examples to support your arguments.
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10th Feb 23 | Prelims Daily with Previous Year Questions
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India- France: Expanding strategic partnership
Context
- The celebration by India and France of 25 years of their strategic partnership (January 26) presents an important opportunity for both to introspect on their relations. Signed in 1998, the time-tested strategic partnership has continued to gain momentum over shared values and aspirations of peace, stability and, most importantly, their desire for strategic autonomy. There are no real substantive disagreements between the two nations.
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France a largest foreign investor in India
- France has emerged as a key trading partner of India with annual trade of $12.42 billion in 2021-22.
- It is the 11th largest foreign investor in India with a cumulative investment of $10.31 billion from April 2000 to June 2022, which represents 1.70% of the total foreign direct investment inflows into India.
France a key defence trading partner of India
- Second largest defence supplier in 2017-2021: France has emerged as a key defence partner for India, becoming the second largest defence supplier in 2017- 2021. France has emerged as a major strategic partner for India with crucial defence deals and increased military to military engagement.
- For example: A key example of this is the inducting of the French Scorpene conventional submarines, being built in India under technology transfer agreement of 2005, and the Indian Air Force having received 36 Rafale fighter jets.
- Joint venture for aircraft manufacturing: The Tata group has also tied up with Airbus to manufacture C-295 tactical transport aircraft in Vadodara, Gujarat. This line is expected to be expanded into other civilian and military aircraft manufacturing in a joint venture with France.
- Regular joint exercises: These relations are further fortified with the robust network of military dialogues and regularly held joint exercises Varuna (navy), Garuda (air force), and Shakti (army).
- France is a willing partner for India: The importance of the defence partnership was further underscored in the recent statement by the French Ambassador to India, Emmanuel Lenain that France is a willing partner for India as it builds its national industrial base for the defence industry and for critical strategic defence projects.
Maritime ties
- Joint Strategic Vision of India-France Cooperation in the Indian Ocean Region: India and France are resident powers of the Indian Ocean and in the Indo-Pacific. The importance of the Indian Ocean Region was visible during the visit of French President Emmanuel Macron’s visit to New Delhi in 2018 when the leadership of both countries welcomed the Joint Strategic Vision of India-France Cooperation in the Indian Ocean Region which presented a blueprint for a strengthening of ties.
- Like-minded partners: In operational terms, Franco-Indian joint patrolling in the Indian Ocean signals New Delhi’s intent to engage with like-minded partners in expanding its footprint in the Indian Ocean.
- Common vision for open Indo-Pacific: Maritime security has further gained momentum as both countries have articulated their common vision for a free, fair and open Indo-Pacific. Both countries seeks to provide comprehensive solutions for maritime security, regional cooperation, climate change adaptation.
- Common concerns over China’s aggressive behaviour: Both countries share concerns over the rise of China and its aggressive behaviour, regionally and globally, and have committed to working together to ensure that there is no imbalance in the Indo-Pacific
- Indo-Pacific Trilateral Development Cooperation Fund: India and France in September 2022 agreed to set up an Indo-Pacific Trilateral Development Cooperation Fund that will support sustainable innovative solutions for countries in the region. The two partners have formed a trilateral grouping with the United Arab Emirates to ensure maritime domain awareness and security from the east coast of Africa to the far Pacific.
Other areas of cooperation
- Nuclear cooperation: France was among the first countries with which India signed a civil nuclear deal. Paris also played a critical role in limiting India’s isolation in the non-proliferation order after the 1998 nuclear tests.
- Support for India’s bid for permanent membership of UNSC: In a sign of expanding cooperation, France supports India’s bid for permanent membership of the United Nations Security Council as well as its entry into the Nuclear Suppliers Group.
- India supported France in the Paris Agreement: An area of importance for both is climate change, where India has supported France in the Paris Agreement expressing its strong commitment towards mitigating climate change impact. New Delhi and Paris, as part of their joint efforts on climate change, launched the International Solar Alliance in 2015.
- Deepening cooperation in complex geological order: As the complexities in the international geopolitical order have emerged, both countries have worked towards a deepening and broadening of their cooperation.
Way ahead
- India’s partnership with France is built on common values and goals.
- Both have underlined the importance of maintaining strategic autonomy with a shared understanding of global risks in many domains.
- There is a high-level India-France political dialogue that is ongoing in defence, maritime, counterterrorism and the Indo-Pacific.
- They are now forging ahead with cooperation in issues such as digitisation, cyber, green energy, a blue economy, ocean sciences, and space.
Conclusion
- India and France understand each other’s interests and dependencies, be it in relation to China or Russia. In the marking of a long strategic partnership, a common interest in enhancing strategic autonomy and improving resilience, there is much ground ahead for further collaboration.
Mains question
Q. India’s partnership with France is built on common values and goals. In recent times, France has emerged as a key defence trading partner of India. Discuss.
