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Subject: Bilateral Relations

1. Major World Events
2. India’s Interests in neighbourhood
3. Effects of our Policies

  • [29th August 2024] The Hindu Op-ed: ​A Silent democratic backlash in South Asia 

    [29th August 2024] The Hindu Op-ed: ​A Silent democratic backlash in South Asia 

    PYQ Relevance:

    Q The proposed withdrawal of the International Security Assistance Force (ISAF) from Afghanistan in 2014 is fraught with major security implications for the region’s countries. Examine in light of the fact that India is faced with a plethora of challenges and needs to safeguard its own strategic interests. (UPSC IAS/2013)

    Q ‘India is an age-old friend of Sri Lanka.’ Discuss India’s role in the recent political crisis in Sri Lanka in the light of the preceding statement. (UPSC IAS/2022)

    Mentor comment: The political landscape in countries like India, Pakistan, and Bangladesh, where governments have faced criticism for undermining democratic institutions and processes. Elections in Bangladesh (January 7, 2024) resulted in PM Sheikh Hasina securing a fourth consecutive term. However, the elections were widely condemned by boycotting, demanding a caretaker government to oversee the electoral process. Similarly in Pakistan, the elections (February 8, 2024), were marred by allegations of irregularities and military influence. International observers and analysts have raised alarms about the military’s increasing control over political processes, which has led to Pakistan being classified as an authoritarian regime by the Economist Intelligence Unit.

    This backlash may be attributed to various factors, including economic challenges, social unrest, and the manipulation of electoral systems, which have led to a deterioration of public trust in democratic norms and practices. Today’s editorial emphasizes the importance of recognizing these trends as they pose risks to the stability and future of democracy in South Asia, urging a reevaluation of the political dynamics at play in the region.

    Let’s learn!

    __

    Why in the News?

    South Asian region is experiencing a subtle yet significant backlash against democratic governance, characterized by increasing authoritarian tendencies and a decline in civil liberties.

    On Emerging Democratic Backlash in India and Pakistan:

    • Middle-Class Attitudes: Historically, the middle classes in both countries have shown ambivalence towards democracy, sometimes favoring military rule, though a younger generation in Pakistan is becoming critical of military involvement in politics.
      • Presently, in India, there has been a democratic pushback against the BJP’s authoritarianism. People also fought against the dictatorship during the Emergency in 1975.
      • In Pakistan, the PTI emerged as a major political force, resonating with public sentiment against military influence, despite state machinery working against it.
    • Digital Backlash: Both countries are witnessing a silent democratic backlash, with citizens utilizing digital platforms and electoral participation to reclaim democratic spaces.

    What are the main causes of the democratic backlash in South Asia?

    • Authoritarian Tendencies: The noticeable shift towards authoritarianism is often characterized by the erosion of civil liberties, media suppression, and the undermining of democratic institutions.
      • For example, in India, the Modi government has been accused of implementing divisive policies and attacking minority rights, leading to a downgrade in its democratic status.
    • Electoral Integrity Issues: In Bangladesh, the 2024 elections were described as a “sham” and  Pakistan’s elections faced accusations of military interference and manipulation, particularly against the Pakistan Tehreek-e-Insaf (PTI) party.
    • Polarization and Social Unrest: Politically, there are rising tensions between various social and ethnic groups. This leads to social unrest and can create an environment where authoritarian measures are justified as necessary for maintaining order.
    • Political Culture: In India, the middle class has at times expressed a preference for authoritarian rule when faced with perceived chaos, reflecting a complex relationship with democracy.
      • Similarly in Pakistan, the military’s historical role in politics has fostered a culture where military intervention is sometimes seen as a stabilizing force.
    • Economic Challenges: Issues such as poverty and unemployment exacerbate political discontent and can lead citizens to support more authoritarian governance as a means of achieving stability and order.
    Pakistan towards authoritarianism since its inception:

    • 1971 Events: Major protests led to significant political changes, including the first general election in 1970 and the eventual disintegration of East Pakistan in 1971, countering military intentions.
    • 2008 Events: Since 2008, Pakistan has experienced a relative transition to democracy with four general elections, but this has been met with military pushback.
    • Present Dynamics: Recent elections (2018 and 2024) reveal a troubling trend of political elites forming alliances with the military, undermining democratic processes and targeting political opponents.

    India’s Democratic Trajectory:
    • 1975 Events: India was seen as a model democracy with a history of free elections and separation of powers, barring the Emergency period in 1975.
    •Since 2014: Indian Politics marked a shift towards an authoritarian model of governance characterized by executive overreach and a campaign for an “Opposition-free democracy”.
    •Judicial Activism and Overreach: Judicial activism has played a role in protecting rights and promoting social justice in India, filling legislative vacuums and enhancing administrative efficiency.
    However, judicial overreach can undermine parliamentary democracy by interfering with the functioning of the legislative and executive branches, damaging the balance between organs of government.

    Implication for South Asia

    • Silent democratic backlash: Factors like authoritarian tendencies, electoral integrity issues, military influence, economic challenges, and social unrest have contributed to the erosion of democratic norms and public trust in the region.
      • The international community has expressed concerns about the deteriorating state of democracy in South Asia, particularly in Pakistan where the military’s influence has led to its classification as an authoritarian regime.

    Conclusion: As citizens in both countries increasingly advocate for democratic governance, it is crucial to observe how these movements evolve, particularly in Pakistan, where the political landscape is more volatile.

    https://www.thehindu.com/opinion/lead/a-silent-democratic-backlash-in-south-asia/article68577856.ece

  • How Canada’s policy of ‘reducing low-wage, temporary workers’ may impact Indians?       

    Why in the News?

    On Monday, August 26, Canadian PM Justin Trudeau announced that Canada would be “reducing the number of temporary foreign workers in low-wage jobs.”

    Who are these “Temporary Workers” in Canada?

    Temporary workers in Canada encompass various categories of individuals, including:

    • Temporary Work Visa Holders: These individuals come to Canada for a fixed duration, typically two years, to work in low-wage jobs that pay between CAD 13-19 per hour (approximately Rs 800-1,200 per hour).
    • International Students: After completing their studies, many international students remain in Canada on work visas for one to three years while applying for Permanent Residency (PR).
    • Spouse Open Work Permit Holders: Many international students bring their spouses to Canada, who can work in low-wage jobs under this permit.
    • Labour Market Impact Assessment (LMIA) Workers: These workers are hired under LMIA contracts, which allow employers to recruit foreign workers when they cannot find Canadians to fill job openings.
    • Humanitarian Arrivals and Youth Program Participants: This category includes individuals arriving through special humanitarian pathways, such as the Canada-Ukraine Authorization for Emergency Travel (CUAET), asylum seekers, and participants in reciprocal youth programs that allow Canadians to work abroad.

    How will Canada’s Policy of “Reducing” Such Workers Impact Indians?

    • Reduced Opportunities: The restrictions on temporary workers will limit job opportunities for many Indians, particularly students and their spouses, who make up a significant portion of the temporary workforce.
    • Impact on International Students: Indians constitute around 40% of Canada’s international student population, with a majority coming from Punjab. The new policy may restrict their ability to transition from temporary work to permanent residency.
    • Shift in Immigration Dynamics:  The introduction of restrictions emphasizes a policy shift that could deter potential migrants from considering Canada as a destination.

    Indians in Canada: 

    • The Indian community in Canada has grown significantly in recent years. Between 2000 and 2020, the registered Indian population increased from 670,000 to over 1 million.
    • As of 2021, there were approximately 1.8 million people of Indian origin in Canada, representing over 5% of the total population.
    • Indian students are the largest international student group in Canada, accounting for 20% of all international students in 2021. There were over 319,000 Indian students enrolled in Canadian institutions, contributing approximately US$ 4.9 billion to the Canadian economy in 2021
    • Many highly skilled Indian professionals contribute to various sectors, including technology, healthcare, and engineering. In 2022, over 15,000 Indian tech workers moved to Canada, enhancing the labor market with their expertise.

    Way forward: 

    • Strengthen Domestic Opportunities: India should focus on creating more job opportunities and enhancing skill development programs within the country to reduce dependency on foreign employment, ensuring that young professionals and students have viable career options at home.
    • Bilateral Engagement and Negotiation: Engage in diplomatic discussions with Canada to advocate for the interests of Indian workers and students, seeking to ensure continued access to work and study opportunities under fair and equitable conditions.

  • What is the Pacific Islands Forum (PIF)?

    Why in the News?

    The annual meeting of the Pacific Islands Forum (PIF) has begun in Nuku’alofa, the capital of Tonga.

    About Pacific Islands Forum (PIF):

    Details
    Establishment 1971
    Members 18 members: Australia, Cook Islands, Federated States of Micronesia, Fiji, French Polynesia, Kiribati, Nauru, New Caledonia, New Zealand, Niue, Palau, Papua New Guinea, Republic of Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.
    Vision Promote peace, harmony, security, social inclusion, and prosperity in the Pacific region.
    Framework Operates under the Framework for Pacific Regionalism which outlines strategic visions and objectives.
    Dialogue Partners 18, including major nations like the USA, China, India, and members of the EU.
    Key Focus Areas Environmental sustainability, economic growth, cultural development, and regional security.
    Leadership Directed by a Secretary-General, with annual meetings among leaders of member countries.

    Significance of PIF

    • The PIF advocates for global climate action and funds resilience efforts through the Pacific Resilience Facility (PRF) to support vulnerable Pacific nations.
    • It enhances cooperation among its 18 small island states, fostering joint decision-making on key regional issues.
    • The forum strengthens the Pacific’s ability to navigate geopolitical tensions between major powers like the US and China.
    • PIF promotes sustainable economic development through regional trade and investment initiatives.
    • It focuses on protecting the Pacific’s ecosystems by addressing challenges like ocean pollution and overfishing.

    PYQ:

    [2016] With reference to the ‘Trans-Pacific Partnership’, consider the following statements:

    1. It is an agreement among all the Pacific Rim countries except China and Russia.

    2. It is a strategic alliance for the purpose of maritime security only.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • On the unrest in the Balochistan region

    Why in the News?

    The recent protests are a significant part of Balochistan’s long history of political struggles. They highlight the difficulties Pakistan faces in creating a country based solely on religion.

    Causes and Reasons for the Recent Protests in Balochistan:

    Balochistan has a long history of resistance against central authority, dating back to the forced accession of the region to Pakistan in 1948.

    • Political Discontentment: The continued centralization of power, lack of genuine federalism, and repeated dismissals of provincial governments have fueled discontent.
    • Economic Neglect: Despite being rich in resources like copper, gold, coal, and natural gas, Balochistan remains one of the poorest regions in Pakistan. The benefits of resource exploitation have not trickled down to the local population, exacerbating feelings of economic injustice.
    • Cultural and Ethnic Identity: Balochistan has a distinct cultural and historical identity, which has often clashed with the central government due to assimilation policies.
    • Human Rights Violations: The region has seen widespread reports of enforced disappearances, custodial killings, and fake encounters as part of Pakistan’s counter-insurgency strategy.

    China’s Role in the Region:

    • Gwadar Port and Militarization Concerns: The Gwadar port, leased to a Chinese firm for 40 years, has raised fears of potential militarization, which could disrupt local livelihoods, especially those of the fishing communities.
      • The presence of Chinese trawlers has also sparked protests due to concerns about illegal fishing.
    • CPEC influence: The influx of non-locals into Balochistan for CPEC-related projects has led to fears of demographic changes, further alienating the local population.

    Indian perspective: 

    • Strategic Implications: India’s interest in Balochistan primarily stems from the region’s strategic importance, given its location and the Gwadar port’s proximity to the Strait of Hormuz.
    • Diplomatic Stance: India has occasionally highlighted human rights issues in Balochistan, especially in international forums, as a counter-narrative to Pakistan’s stance on Kashmir. However, India’s involvement remains cautious to avoid escalating tensions with Pakistan.
    • Impact on Regional Stability: The unrest in Balochistan, coupled with Chinese involvement, complicates the security situation in South Asia.
      • India’s approach will likely focus on balancing its strategic interests while advocating for the rights of the Baloch people within international norms.

    Way forward: (What should India do?)

    • Diplomatic Advocacy: India should continue to highlight human rights issues in Balochistan at international forums, positioning itself as a defender of human rights while maintaining a balanced approach to avoid escalating tensions with Pakistan.
    • Strategic Monitoring: India should closely monitor developments in Balochistan, particularly regarding Chinese activities in the Gwadar port, to safeguard its strategic interests and regional stability.

    Mains PYQ: 

    Q The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (150 Words, 10 Marks)  (UPSC IAS/2018)

    Q ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC CSE 2017)

    Q China and Pakistan have entered into an agreement for development of an economic corridor. What threat does this pose for India’s security? Critically examine (UPSC CSE 2014)

  • PM Modi presents BHISHM Cube to Ukraine

    Why in the News?

    Prime Minister Modi has presented the BHISHM Cube, a state-of-the-art mobile hospital designed for rapid deployment in disaster zones to Ukraine.

    What is the BHISHM Cube?

    • The BHISHM Cube is an advanced mobile hospital unit designed for rapid deployment in disaster zones and emergency situations.
    • It is developed under the “Project BHISHM” (Bharat Health Initiative for Sahyog, Hita, and Maitri), reflecting India’s commitment to providing swift medical assistance in crisis areas.
    • The unit is capable of treating up to 200 casualties.
    • Key Features:
      • It weighs 720 kg and is composed of 72 components that can be easily transported by hand, bicycle, or drone.
      • The unit can be fully operational within 12 minutes of deployment, a critical feature in emergencies where every second counts.
      • It includes an operating theatre, X-ray machines, ventilators, and facilities for treating a wide range of injuries.
      • It incorporates AI and data analytics for real-time monitoring and coordination of medical services.
      • It also uses RFID-tagged equipment for efficient tracking and management of medical supplies.
      • The unit is robust and waterproof, making it suitable for diverse environments and capable of withstanding various weather conditions.

    Significance of the move

    • By providing the BHISHM Cube to countries in need, such as Ukraine, India demonstrates its commitment to global humanitarian efforts.
    • The project aligns with India’s broader initiatives like ‘Aarogya Maitri’, aimed at supporting developing countries affected by natural disasters or crises.
    • The deployment of the BHISHM Cube enhances disaster preparedness by ensuring that essential medical services are available when and where they are needed most.
    • The gifting serves as a tool of soft diplomacy, strengthening India’s international relations by contributing to global health and safety.

    PYQ:

    [2022] With reference to the Ayushman Bharat Digital Mission, consider the following statements:

    1. Private and public hospitals must adopt it.
    2. As it aims to achieve universal, health coverage, every citizen of India should be part of it ultimately.
    3. It has seamless portability across the country.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

  •  How South China Sea tensions pose a threat to international trade? 

    Why in the News?

    Tensions between China and the Philippines have sharply escalated after a violent clash between their sailors in the South China Sea (SCS) last week. Currently, escalating tensions in the South China Sea are heightening global security concerns over this vital trade route.

    How Important is the South China Sea for World Trade?

    • About a third of global maritime trade passes through the 3.5 million square kilometre South China Sea annually, according to UNCTAD.
    • Around 40% of petroleum products traded globally are delivered via the South China Sea every year.
    • In 2016, an estimated $3.4 trillion to $3.6 trillion worth of goods and commodities travelled the seaway.
    • Tens of thousands of cargo vessels move through the South China Sea every year, carrying around 40% of China’s, one-third of India’s and 20% of Japan’s trade with the rest of the world.
    • The South China Sea is a vital crossroads for both intra-Asian trade as well as for commerce with the rest of the world, especially Europe, the Middle East and Africa.

    What makes the South China Sea such a Controversial Issue?

    • Beijing claims almost all of the South China Sea as its own, angering its neighbours who say China’s territorial ambitions cut into their exclusive economic zones.
    • China ignored a 2016 ruling by an international arbitration court that Beijing has no legal or historical basis for its expansive claims under international law.
    • The Chinese military has staged increasingly aggressive actions in the seaway recently, including clashes with Filipino ships, fueling fears of a full-scale conflict.
    • Vietnam and the Philippines have filed claims with the UN for extended continental shelves in the South China Sea.
    • Concerns that Beijing may use military force to bring Taiwan under its control have further raised tensions in the region.

    Why is the South China Sea Contested?

    • Availability of Natural gas and oil: The South China Sea is estimated to hold about 5.38 trillion cubic meters of proven and probable natural gas and 11 billion barrels of oil reserves.
    • Rare earth elements: The disputed waters also contain large deposits of rare-earth minerals crucial to China’s technological ambitions, including electric vehicle batteries and advanced electronics.
      • Some estimates suggest the Pacific Ocean contains a thousand times more rare-earth minerals than the currently known land reserves, more than half of which are controlled by China.

    Biggest Chokepoint in the South China Sea

    • The Malacca Strait, which lies between Malaysia, Indonesia and Singapore, is considered the biggest chokepoint in the South China Sea.
    • Last year, 23.7 million barrels of oil and petroleum products were moved through the strait per day, 13% higher than through the Strait of Hormuz.
    • The Malacca Strait is just 64 kilometers wide at its narrowest point and is already vulnerable to congestion and collisions.
    • Experts predict that if China invades Taiwan, the U.S. and its allies could blockade the Malacca Strait, limiting China’s access to oil and exports

    What should India do? (Way forward)

    • Enhance Strategic Partnerships: India should strengthen its maritime collaborations with key regional players like ASEAN nations, Japan, and Australia while deepening its involvement in forums such as the Quad to promote a rules-based order in the Indo-Pacific and ensure freedom of navigation in the South China Sea.
    • Bolster Naval Capabilities: India should continue to modernize and expand its naval presence in the Indo-Pacific, focusing on securing critical sea lanes and chokepoints like the Malacca Strait to safeguard its trade routes and energy supplies in the event of escalating tensions.

    Mains PYQ:

    Q South China Sea has assumed great geopolitical significance in the present context. Comment.(2016)

  • Dealing with Death at Work    

    Why in the News?

    On August 21, 2024, a deadly explosion at the Escientia plant in Atchutapuram SEZ killed 17 workers and injured over 50, triggered by a solvent leak involving MTBE. The incident, part of a troubling safety trend, has prompted a government inquiry and calls for stricter safety regulations, particularly due to the exemption from regular inspections for SEZ units.

    • Previous Incidents: This accident is part of a troubling pattern, as it follows another major explosion in the same SEZ last year, and recalls a deadly styrene vapour leak incident in 2020 that killed 12 people.
    • Government Response: The Andhra Pradesh government has ordered a high-level inquiry into the incident. Chief Minister N. Chandrababu Naidu has expressed condolences and promised support for the victims’ families.

    Importance of Safety Audits

    • Preventing Future Accidents: Regular safety audits can help identify potential hazards and ensure compliance with safety regulations, reducing the risk of catastrophic incidents.
    • Accountability: Audits enforce accountability among management to adhere to safety standards, promoting a culture of safety within organizations.
    • Regulatory Compliance: Conducting safety audits helps organizations ensure compliance with local, state, and national safety regulations.
    • Public Trust: Enhancing safety measures and transparency can restore public confidence in industrial operations, particularly in regions prone to industrial accidents.

    Safety Law and Guidelines:

    • Factories Act, 1948: Governs worker safety in factories, mandating safety audits and safety officer appointments. Requires safety committees with management and employee reps to address hazards.
    • IS 14489:1998: Provides guidelines for occupational safety and health audits, focusing on compliance, deviations, and safety management effectiveness across sectors.
    • Occupational Safety, Health and Working Conditions Code, 2020: Consolidates labor laws, mandates regular safety audits for hazardous processes, and grants inspectors authority to enforce compliance.
    • CIMAH Rules: Require industries with hazardous processes to prepare safety reports and conduct regular audits to prevent major accidents, enforced by state safety authorities.
    • Integrated Guidance Framework for Chemicals Safety: Offers guidance for safety audits in handling hazardous chemicals, emphasizing compliance with MSIHC Rules and robust audit practices.

    Note:

    IS 14489:1998 is an Indian Standard titled “Code of Practice on Occupational Safety and Health Audit.” It provides comprehensive guidelines for conducting occupational safety and health audits in various workplaces.

    Way forward: 

    • Implement Regular Safety Audits: Enforce routine safety audits for all industrial units, including SEZs, to identify hazards and ensure compliance with safety standards, thus preventing future incidents and promoting a culture of safety.
    • Strengthen Regulatory Oversight: Close regulatory gaps by applying safety standards uniformly across all sectors, including exempted units, and enhance transparency and accountability in safety practices to restore public trust.

  • India-Malaysia Comprehensive Strategic Partnership

    Why in the News?

    India and Malaysia have elevated their relationship to a ‘Comprehensive Strategic Partnership’ following talks between Prime Ministers Modi and Ibrahim, aiming to overcome past tensions.

    What is a Comprehensive Strategic Partnership (CSP)?

    • The Comprehensive Strategic Partnership (CSP) represents a deepened level of engagement between two nations, encompassing a broad spectrum of areas such as political, economic, cultural, and security cooperation.
    • This partnership reflects a commitment to working closely across these domains to achieve mutual goals.

    Upgradation of ties between India and Malaysia:

    • The recent upgrade includes agreements and MoUs in workers’ mobility, digital technology, culture, tourism, sports, and education.
    • India has also agreed to support Malaysia’s bid to join the BRICS grouping, which the Malaysian Prime Minister has been advocating for.
    • The leaders discussed new areas of cooperation, including semiconductors, fintech, defence industry, artificial intelligence (AI), and quantum technologies.
    • A special allocation of 200,000 metric tonnes of white rice was granted by India to Malaysia in response to Malaysia’s request, reflecting India’s role in Malaysia’s food security.

    Bilateral Friction between India and Malaysia:

    • Citizenship Amendment Act (CAA): During the Kuala Lumpur Summit in December 2019, Malaysian PM Mahathir Mohamad criticized India’s CAA, which provides a pathway to citizenship for non-Muslim refugees from Afghanistan, Bangladesh, and Pakistan.
    • Reorganisation of Jammu and Kashmir: Mahathir Mohamad also voiced strong criticism regarding India’s reorganization of Jammu and Kashmir, particularly after the revocation of its special status in August 2019.
    • Extradition of Zakir Naik: India’s repeated requests for the extradition of Zakir Naik, wanted on charges of hate speech and money laundering, have been denied by Malaysia, citing insufficient evidence.
    • COVID-19 Pandemic: During the pandemic, hundreds of Malaysians were detained in India due to the lockdown, further adding to tensions.

    Way forward: 

    • Enhance Diplomatic Engagement: Continue regular high-level dialogues to resolve sensitive issues and foster mutual trust, focusing on joint working groups for contentious matters like extradition and human rights.
    • Expand Strategic and Economic Collaboration: Prioritize joint ventures and research in emerging sectors such as fintech, AI, and quantum technologies to strengthen economic ties and minimize political friction.

  • [pib] 2+2 Ministerial Dialogue

    Why in the News?

    Japanese foreign and defence ministers have arrived in India to participate in the India-Japan 2+2 ministerial meeting.

    About 2+2 Ministerial Dialogue

    • The 2+2 Ministerial Dialogue is a diplomatic summit held annually since 2018, initially between India and the US.
    • It later expanded to include Japan, Australia, Russia, and the United Kingdom.
    • This dialogue involves the Foreign and Defense Ministers of participating countries and focuses on strengthening bilateral relations and addressing common concerns.
    • The dialogue replaced the Strategic and Commercial Dialogue during a 2017 agreement between PM Narendra Modi and President Donald Trump.
    • First Summit was held on September 6, 2018, between India and the US in New Delhi, involving discussions on defense partnerships and strategic cooperation.

    Key Milestones:

    What are the key priorities of the Indo-Japan 2+2 Dialogue?

    • Update Security Cooperation: Revising the 2008 security agreement to reflect current strategic needs.
    • Promote a Free Indo-Pacific: Collaborating to ensure a free, open, and stable Indo-Pacific region.
    • Engage in Strategic Talks: Holding strategic discussions between foreign and defense ministers to boost bilateral ties.
    • Address Regional Security: Discussing key issues like Chinese assertiveness, the Russia-Ukraine war, and the Gaza crisis.
    • Coordinate Quad Efforts: Exploring cooperation within the Quad framework, including a potential summit.

    PYQ:

    [2020] Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss.

  • India, UAE reviewing precious metals trade under CEPA

    Why in the News?

    India is seeking a review of certain provisions of the free trade agreement (FTA) with the UAE, which came into force on May 1, 2022.

    India-UAE Trade Relations: An Overview

    Concerns over Precious Metals Imports

    • There has been a significant increase in imports of precious metals from the UAE under the trade agreement.
    • Global Trade Research Initiative (GTRI) has raised concerns about the spurt in imports of gold, silver, platinum, and diamonds with zero tariffs in the coming years.
    • GTRI’s report highlights potential revenue losses and a shift in import business from banks to private traders, favouring Dubai-based firms.
    • It also claims that many imports do not meet the Rules of Origin conditions, making them ineligible for concessions.

    Review of IT Hardware Import Regime

    • When asked about the review of the new authorisation regime for monitoring imports of certain IT hardware products, Barthwal indicated that the government would make a decision at the appropriate time.
    • The government had previously adjusted import restrictions on laptops and computers, allowing importers to bring in shipments under an ‘authorisation’ system until September.