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Subject: Bilateral Relations

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

  • Centre extends relief to Tibetan Committee by 5 years

    The Union government has extended the scheme to provide ₹40 crore grants-in-aid to the Dalai Lama’s Central Tibetan Relief Committee (CTRC) for another five years, up to fiscal year 2025-26.

    Do you think that India’s support for the Tibetan cause is the root cause of all irritants in India-China relations?

    What is CTRC?

    • The Dalai Lama’s Central Tibetan Relief Committee (CTRC) was formed and registered as Charitable Society under Indian Societies Registration Act XXI of 1860.
    • It effectively acts as the Relief and Development Wing of Home Department, Central Tibetan Administration.
    • All the CTRC activities are carried out with consent and support from Board of Directors and approval from TPiE (Tibetan Parliament in Exile).

    Tibetan Parliament-in-Exile (TPiE)

    • The Tibetan Parliament-in-Exile (TPiE) has its headquarters in Dharamsala, in the Kangra district of Himachal Pradesh.
    • According to the Green Book of the Tibetan government-in-exile, over 1 lakh Tibetans are settled across India.
    • The remaining are settled in United States, Australia, Brazil, Canada, Costa Rica, France, Mexico, Mongolia, Germany, United Kingdom, Switzerland and various other countries.

    Working of the TPiE

    • The Speaker and a Deputy Speaker head the Tibetan Parliament-in-exile.
    • It includes two members from each of the four schools of Tibetan Buddhism and the pre-Buddhist Bon religion.
    • Other representatives are from the Tibetan Communities in North America and Europe; and from Australasia and Asia (excluding India, Nepal and Bhutan).
    • Till 2006, it used to be called as Assembly of Tibetan People’s Deputies (ATPDs) with the chairman as its head and a vice-chairman.

    Tibetan Constitution

    • The Central Tibetan Administration exists and functions on the basis of the Constitution of the Tibetan government called the ‘The Charter of the Tibetans in Exile’.
    • In 1991, The Constitution Redrafting Committee instituted by the Dalai Lama prepared the Charter for Tibetans in exile. The Dalai Lama approved it on June 28, 1991.
    • In 2001, fundamental changes happened with the amendment of the Charter that facilitated the direct election of the Kalon Tripa by the Tibetans in exile.
    • The Kalon Tripa is called Sikyong or president of the Central Tibetan Administration.

    The Kashag (Cabinet)

    • The Kashag (Cabinet) is the Central Tibetan Administration’s highest executive office and comprise seven members.
    • It is headed by the Sikyong (political leader) who is directly elected by the exiled Tibetan population.
    • Sikyong subsequently nominates his seven Kalons (ministers) and seeks the parliament’s approval. The Kashag’s term is for five years.

    A backgrounder: Democracy for Tibet

    • The Dalai Lama began democratization soon after he came to India during the 1959 Tibetan National Uprising.
    • He reportedly asked Tibetans in exile to choose their representatives through universal adult suffrage, following which polls were held for electing Tibetan Parliamentarians in 1960.
    • Democracy for the Tibetans, thus, began in exile.
    • The Dalai Lama, however, continued to remain the supreme political leader. On March 14, 2011, he relinquished his political responsibilities, ending a 369-year-old practice.

    Is TPiE officially recognized by any country?

    • Not exactly, it is not recognised officially by any country, including India.
    • But, a number of countries including the USA and European nations deal directly with the Sikyong and other Tibetan leaders through various forums.
    • The TPiE claims its democratically-elected character helps it manage Tibetan affairs and raise the Tibetan issue across the world.
    • The incumbent Sikyong, Lobsang Sangay, was among the guests who attended the oath-taking ceremony of our PM in 2014, probably a first.

     

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  • India-Australia sign Economic Cooperation and Trade Agreement (ECTA)

    India and Australia signed an Economic Cooperation and Trade Agreement (ECTA) in the presence of PM Narendra Modi and his counterpart in Canberra Scott Morrison.

    India-Australia ECTA

    • It is the first trade agreement of India with a developed country after more than a decade.
    • The Agreement encompasses cooperation across the entire gamut of bilateral economic and commercial relations between the two friendly countries.
    • It covers areas like Trade in Goods, Rules of Origin, Trade in Services, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, Movement of Natural Persons, Telecom, Customs Procedures, Pharmaceutical products, and Cooperation in other Areas.
    • Eight subject specific side letters covering various aspects of bilateral economic cooperation were also concluded as part of the Agreement.

    Background of the ECTA

    • The negotiations for India-Australia ECTA were formally re-launched on 30 September 2021 and concluded on a fast-track basis by the end of March 2022.
    • India and Australia enjoy excellent bilateral relations that have undergone transformative evolution in recent years, developing along a positive track, into a friendly partnership.
    • Growing India-Australia economic and commercial relations contribute to the stability and strength of a
    • Australia is the 17th largest trading partner of India and India is Australia’s 9th largest trading partner.

    Features of the agreement

    • The ECTA between India and Australia covers almost all the tariff lines dealt in by India and Australia respectively.
    • India will benefit from preferential market access provided by Australia on 100% of its tariff lines.
    • This includes all the labour-intensive sectors of export interest to India such as Gems and Jewellery, Textiles, leather, footwear, furniture, food, and agricultural products, engineering products, medical devices, and Automobiles.
    • India will be offering preferential access to Australia on over 70% of its tariff lines, including lines of export interest to Australia which are primarily raw materials and intermediaries such as coal, mineral ores and wines etc.
    • As regards trade in services, Australia has offered wide ranging commitments in around 135 sub sectors and Most Favoured Nation (MFN) in 120 sub sectors which cover key areas of India’s interest like IT, ITES, Business services, Health, Education, and Audio visual.
    • Both sides have also agreed to a separate Annex on Pharmaceutical products under this agreement, which will enable fast track approval for patented, generic and biosimilar medicines.

    Way ahead

    • The India-Australia ECTA will further cement the already deep, close and strategic relations between the two countries.
    • It will significantly enhance bilateral trade in goods and services, create new employment opportunities, raise living standards, and improve the general welfare of the peoples of the two countries.

     

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  • State of Emergency in Sri Lanka

    A day after angry mob converged in front of President Gotabaya Rajapaksa’s Colombo residence, demanding he step down immediately, he declared a state of Emergency in Sri Lanka.

    Sri Lankan Crisis: A backgrounder

    • Sri Lanka’s economic crisis can be traced to two key developments— the Easter Sunday bombings of 2019 that deterred tourists, and the pandemic since early 2020.
    • These events stalled recovery and further drained the economy.
    • As it grappled with an unprecedented challenge, the Rajapaksa regime made policy choices that are now proving to be costly.
    • It cut the government’s tax revenue substantially and rushed into an ‘organic only’ agricultural policy that will likely slash this year’s harvest by half.
    • The weak and debt-ridden economy with the lingering strain of the pandemic, and ill-advised policies accelerated the downward spiral.

    What were the economic indicators?

    • COVID-19 hit Sri Lanka’s key foreign revenue earning sectors hard.
    • Earnings from tourism, exports, and worker remittances fell sharply in the last two years.
    • But the country could not stop importing essentials, and its dollar account began dwindling.
    • Fast draining foreign reserves, a glaring trade deficit, and a related Balance of Payments problem came as crucial signals.
    • Colombo’s huge foreign loan obligations and the drop in domestic production compounded the economic strain.

    When did things begin to worsen?

    • The long-simmering crisis made its first big announcement during last August’s food emergency, when supplies were badly affected.
    • It was soon followed by fears of a sovereign default in late 2021, which Sri Lanka averted.
    • But without enough dollars to pay for the country’s high import bill, the island continued facing severe shortage of essentials — from fuel, cooking gas, and staple foodgrains to medicines.

    How did the crisis manifest itself on the ground?

    • Consumers could not find the most basic things such as petrol, LPG cylinders, kerosene, or milk in the market.
    • They spent hours waiting in long queues outside fuel stations or shops.
    • Supermarket shelves were either empty or had products with high price tags that most could not afford.
    • For instance, the price of one kg of milk powder, a staple item in dairy-deficient Sri Lanka, suddenly shot up to nearly LKR 2000 in March.
    • Be it cooking gas, oils, rice, pulses, vegetables, fish, meat, consumers found themselves paying substantially more, or simply had to forego the item.
    • The fuel shortage has led to long blackouts — up to 13 hours — across the island.

    What is the situation now?

    • The value of the Sri Lankan rupee has dropped to 300 against a U.S. dollar (and even more than 400 in the black market), putting importers in a difficult spot.
    • The government is unable to pay for its import shipments, forcing consignments to leave the Colombo port.
    • For the average citizen contending with COVID-induced salary cuts and job losses, the soaring living costs have brought more agony.

    How did India help mitigate the crisis?

    • India has extended $2.4 billion this year.
    • China, that is considering a fresh request from Colombo for $2.5 billion assistance, in addition to the $2.8 billion it has extended since the pandemic broke out.
    • The government has decided to negotiate an International Monetary Fund programme, while seeking support from other multilateral and bilateral sources.
    • But even with all this help, Sri Lanka can barely manage.

    How has it affected the people?

    • Sri Lankans are seething with anger, going by public demonstrations and protests.
    • They want the President to step down immediately and the ruling clan to leave the country’s helm.
    • They have been agitating in different parts of the country, including near the President’s home.
    • Former military man Gotabaya Rajapaksa, who came to power on a huge mandate in 2019, is Sri Lanka’s most unpopular leader today.
    • Following the protests near his home, Mr. Rajapaksa said “extremists” were plotting an ‘Arab Spring’ and hence he declared a state of Emergency.

    Back2Basics: Financial Emergency in India

    • The President of India can declare the Financial Emergency on the aid and advise of the Council of Ministers.
    • She/ He has to be satisfied that a situation has arisen due to which the financial stability or credit of India or any part of its territory is threatened.
    • Article 360 gives authority to the President of India to declare a financial emergency.
    • However, the 44th Constitutional Amendment Act of 1978 says that the President’s ‘satisfaction’ is not beyond judicial review.
    • It means the Supreme Court can review the declaration of a Financial Emergency.

    Parliamentary Approval and Duration

    • A proclamation of financial emergency must be approved by both the Houses of Parliament within two months from the date of its issue.
    • A resolution approving the proclamation of financial emergency can be passed by either House of Parliament (Lok Sabha or Rajya Sabha) only by a simple majority.
    • Once approved by both the Houses of Parliament, the Financial Emergency continues indefinitely till it is revoked.
    • It may be revoked by the President anytime without any Parliamentary approval (but with the usual aid and advice).

    Effects of Financial Emergency

    • During the financial emergency, the executive authority of the Center expands and it can give financial orders to any state according to its own.
    • All money bills or other financial bills, that come up for the President’s consideration after being passed by the state legislature, can be reserved.
    • Salaries and allowances of all or any class of persons serving in the state can be reduced.
    • The President may issue directions for the reduction of salaries and allowances of: (i) All or any class of persons serving the Union and the judges of the Supreme Court and the High Court.

    Try this PYQ:

    Q. With reference to the Constitution of India, prohibitions or limitations or provisions contained in ordinary laws cannot act as prohibitions or limitations on the constitutional powers under Article 142. It could mean which one of the following?

     

    (a) The decisions taken by the Election Commission of India while discharging its duties cannot be challenged in any court of law.

    (b) The Supreme Court of India is not constrained in the exercise of its powers by laws made by the Parliament.

    (c) In the event of grave financial crisis in the country, the President of India can declare Financial Emergency without the counsel from the Cabinet.

    (d) State Legislatures cannot make laws on certain matters without the concurrence of the Union Legislature.

     

    [wpdiscuz-feedback id=”b9fdxoon9b” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • BIMSTEC

    Context

    The fifth summit of the regional grouping, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), held virtually in Colombo on March 30, has advanced the cause of regional cooperation and integration.

    Colombo package

    • Economic challenges: Representing a fifth of the world’s population that contributes only 4% of the global GDP, can this multilateral grouping trigger accelerated economic development?
    • It was clear that BIMSTEC first needed to strengthen itself — by re-defining its purpose and rejuvenating its organs and institutions.
    • The eventual result is now seen in the package of decisions and agreements announced at the latest summit.

    Achievement of Colombo Summit

    • 1] Adoption of Charter: Adopted formally, it presents BIMSTEC as “an inter-governmental organization” with “legal personality.”
    • BIMSTEC’s purposes: Defining BIMSTEC’s purposes, it lists 11 items in the first article.
    • Among them is acceleration of “the economic growth and social progress in the Bay of Bengal region”, and promotion of “multidimensional connectivity”.
    • The grouping now views itself not as a sub-regional organisation but as a regional organisation whose destiny is linked with the area around the Bay of Bengal.
    • 2] Reduction in the sectors of cooperation: The second element is the decision to re-constitute and reduce the number of sectors of cooperation from the unwieldy 14 to a more manageable seven.
    • Each member-state will serve as a lead for a sector: trade, investment and development (Bangladesh); environment and climate change (Bhutan); security, including energy (India); agriculture and food security (Myanmar); people-to-people contacts (Nepal); science, technology and innovation (Sri Lanka), and connectivity (Thailand).
    • 3] Adoption of the Master Plan for Transport Connectivity:  the summit participants adopted the Master Plan for Transport Connectivity applicable for 2018-2028.
    •  It was devised and backed by the Asian Development Bank (ADB).
    • It lists 264 projects entailing a total investment of $126 billion.
    • Projects worth $55 billion are under implementation. BIMSTEC needs to generate additional funding and push for timely implementation of the projects.
    • 4] Signing of three new agreements: Finally, the package also includes three new agreements signed by member states, relating to mutual legal assistance in criminal matters, cooperation between diplomatic academies, and the establishment of a technology transfer facility in Colombo.

    Challenges

    • The pillar of trade, economic and investment cooperation needs greater strengthening and at a faster pace.
    • Absence of FTA: Despite signing a framework agreement for a comprehensive Free Trade Agreement (FTA) in 2004, BIMSTEC stands far away from this goal.
    • Lack of legal instruments: The need for expansion of connectivity was stressed by one and all, but when it comes to finalising legal instruments for coastal shipping, road transport and intra-regional energy grid connection, much work remains unfinished.
    • There needs to be mention of the speedy success achieved in deepening cooperation in security matters and management of Humanitarian Assistance and Disaster Relief (HADR).
    • Focus more on new areas: BIMSTEC should focus more in the future on new areas such as the blue economy, the digital economy, and promotion of exchanges and links among start-ups and Micro, Small and Medium Enterprises (MSMEs).
    •  Step up the personal engagement of political leadership: The personal engagement of the political leadership should be stepped up.
    • The decision taken in Colombo to host a summit every two years is welcome if implemented.
    • Greater visibility:  BIMSTEC needs greater visibility.
    • India’s turn to host the G20 leaders’ summit in 2023 presents a golden opportunity, which can be leveraged optimally. Perhaps all its members should be invited to the G20 summit as the chair’s special guests.
    • Simplify the groupings name: The suggestion to simplify the grouping’s name needs urgent attention.
    • The present name running into 12 words should be changed to four words only — the Bay of Bengal Community (BOBC).
    • It will help the institution immensely. Brevity reflects gravitas.

    Conclusion

    BIMSTEC is no longer a mere initiative or programme. The question to address is whether it is now capable of tackling the challenges facing the region.

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  • India to set up Maritime Rescue Co-ordination Centre (MRCC) in Colombo

    India and Sri Lanka have signed an MoU for the Indian public sector Bharat Electronics Ltd (BEL) to set up a state of the art Maritime Rescue Co-ordination Centre (MRCC) in Colombo.

    What is MRCC?

    • MRCCs are part of an international network under the UN’s International Maritime Organisation.
    • They aim to monitor the sea lanes with the objective of swift response to emergencies, such as vessels in distress, rescue and evacuation of people, and prevention of and containing environmental disasters such as oil spills.
    • Each country is responsible for its own Search and Rescue Region (SRR).
    • The work of MRCCs is co-ordinated by the Navy or Coast Guard in each country.
    • In India, the Coast Guard is the co-ordinating agency. In Sri Lanka, it is the Navy.
    • The MRCC will be established with a grant of $6 million from India.

    Benefits offered

    • MRCC enhances co-operation on maritime security between the two countries in a part of the Indian Ocean region where the India-China rivalry has taken centre stage over the last decade.
    • This engagement will augment interoperability and seamless maritime actions like carrying out anti-smuggling operations in the Indian Ocean Region.

    Why such a move by India?

    • Sri Lanka’s SRR is a wide swathe of 1,778,062. 24 sq kms of the Indian Ocean, and nearly 200 ships pass through these waters every day.
    • The MRCC agreement appears to be part of India’s SAGAR (Security and Growth for all in the Region) initiative in the Indian Ocean.

    Issues with MRCC

    • The MRCC has been controversial in Sri Lanka who see every development by India suspicious.
    • Sri Lanka’s Defence Ministry issued a clarification on the MRCC, as well as on recent agreements with India for a naval floating dock and Dornier aircraft.
    • The clarification has provided more details about the agreements than have been in the public domain so far.

     

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  • Significance of India-Australia Economic Cooperation and Trade Agreement

    Context

    Prime Ministers of India and Australis will preside virtually over the signing of a bilateral Free Trade Agreement(ECTA) negotiated in torturous detail over the last decade.

    Background

    • Negotiations for a bilateral Comprehensive Economic Cooperation Agreement began in May 2011.
    • But the negotiations continued in fits and starts, without significant progress or indeed real political direction.
    • In June 2020, as part of the Joint Statement after establishing a Comprehensive Strategic Partnership, it was decided to re-engage on a CECA.
    • Consequently, at the 17th India-Australia Joint Ministerial Commission meeting in September 2021, CECA negotiations were re-launched.
    • During virtual summit in 2022, India-Australia fleshed out areas of cooperation ranging from science and technology to climate change and defence to people-to-people ties, and included possibilities of joint surveillance and real-time intelligence sharing.
    • On the eve of the summit, the Morrison government invested over USD 280 million to give a fillip to cooperation with India; to further grow its economic relationship and support jobs and businesses in both countries; as well as to empower the Indian diaspora.

    About INDAUS-ECTA

    • The INDAUS ECTA (India-Australia Economic Cooperation and Trade Agreement), reflects vision of the essential unity of the two countries.
    • The ECTA deal is apparently fully in compliance with WTO rules and Article 24 of GATT.
    • Article 24 of GATT allows countries to grant special treatment to one another by establishing a free-trade association, provided that “(1) duties and other trade restrictions would be eliminated on substantially all the trade among the participants, (2) the elimination of internal barriers occurred within a reasonable length of time….”
    • The ECTA should give a boost to India’s labour-intensive manufacturing sector, with a considerable leg-up to the pharma, textile, gemstone and jewellery sectors.
    •  Indian students in Australia will find an easier pathway to employment, and there will be greater ease of visa for a range of skilled human capital from India in demand in Australia, including chefs and yoga instructors.
    • Most of the farming and dairy sector seems to have been kept away from the present agreement.
    • Australian coal will probably get relatively unfettered access to India.

    Significance of the ECTA for India-Australia relations

    • The ECTA represents a watershed moment in bilateral relations.
    • ECTA is also a significant turning point for India’s foreign policy — both in terms of geo-strategy as well as geo-economics.
    • Partnership with the convergence of interests: India and Australia today represent a partnership with a near complete convergence of interests and values.
    • Shared concerns over China: Two multicultural, federal democracies that share concerns about stability in the Indo Pacific, are apprehensive about Chinese hegemonic designs, and are increasingly coordinating their policies, are natural partners of the future.

    Conclusion

    The ECTA signals that India’s relations with Australia — two central pivots of the Quad — are as strong and resilient as ever.

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  • For deeper, richer India-Mexico ties

    Context

    In 2021, Mexico and India commemorated 71 years of the establishment of diplomatic relations. This article is written by the Foreign Minister of Mexico, who has been on his official visit to India.

    Areas of cooperation between two countries

    • Mexico and India are members of the G-20, which brings together 20 of the largest economies in the world and whose presidency in 2023 will be assumed by India.
    • Non-permanent members of the security council: Both countries are non-permanent members of the United Nations Security Council this year.
    • At both forums, India and Mexico will contribute decisively to world peace and security, and will put poverty reduction at the centre of the multilateral debate.
    • The health sector is another cornerstone of our exchanges.
    • Mexico will strengthen its cooperation with India as one of the leading global producers of medicines and will also seek joint pharmaceutical manufacturing.
    • Another key focus area of cooperation will be aerospace.
    • Although it was started less than a decade ago, this has enormous potential for the Mexican Space Agency and for regional initiatives such as the recently established Latin American and Caribbean Space Agency (ALCE) of which Mexico is the founder.
    • In the economic sphere, Mexico’s links with India, the sixth-largest economy in the world and our tenth-largest trading partner, undoubtedly offers a wide range of prospects for Mexico’s productive sectors.

    Conclusion

    Links between India and Mexico have evolved positively in recent years, demonstrating the complementarities between two ancient countries, rich in history and diversity. In this spirit, we will take a firm step towards a tangible alliance to showcase this evolution, which could result in mutual benefits.

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  • Bridging the bay in quest of a stronger BIMSTEC

    Context

    Sri Lanka is gearing up to host the Fifth Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit, now in its silver jubilee year. The summit is being held in virtual/hybrid mode and Sri Lanka is the current BIMSTEC chair.

    Why BIMSTEC matters for India and the region

    • The unique ecology of BIMSTEC is witnessing enriched political support and commitment from India.
    • India has made the Bay of Bengal integral to India’s ‘Neighbourhood First’ and ‘Act East’ policies which can accelerate the process of regional integration.
    • Significance in economic and strategic space: Finalising the BIMSTEC Charter; BIMSTEC Master Plan for Transport Connectivity; BIMSTEC Convention on Mutual Legal Assistance in Criminal Matters; BIMSTEC Technology Transfer Facility (TTF); cooperation between diplomatic academies/training institutions; and a template of Memorandum of Association for the future establishment of BIMSTEC centres/entities present signs of optimism.
    • BIMSTEC as a centre of Indo-Pacific: With a re-emergence of the idea of the ‘Indo-Pacific’ region, the growing economic, geopolitical and security connections between the Western Pacific and the Indian Ocean regions are creating a shared strategic space.
    • The Bay of Bengal is evolving as the centre of the Indo-Pacific region again.
    • The renewed focus has given a new lease of life to the developmental efforts in the region, in particular BIMSTEC.

    Way forward for BIMSTEC

    1] Political support and strong commitment from all member countries

    • With a changed narrative and approach, the Bay of Bengal has the potential to become the epicentre of the Indo-Pacific idea — a place where the strategic interests of the major powers of East and South Asia intersect.
    • Potential of BIMSTEC: There is a greater appreciation of BIMSTEC’s potential due to geographical contiguity, abundant natural and human resources, and rich historical linkages and a cultural heritage for promoting deeper cooperation in the region.
    • Political support and strong commitment from all member countries are crucial in making BIMSTEC a dynamic and effective regional organisation.

    2] Boost connectivity

    • Connectivity is essential to develop a peaceful, prosperous and sustainable Bay of Bengal region.
    • The BIMSTEC Master Plan for Transport Connectivity will provide the necessary boost to connectivity.
    •  Therefore, BIMSTEC needs to address two dimensions of connectivity – one, upgrading and dovetailing national connectivity into a regional road map; and two, development of both hard and soft infrastructures.

    3] Enhance cooperation in different areas

    • There is growing involvement of educational institutions, industries and business chambers through various forums and conclaves which are helping to enhance cooperation in the areas of education, trade and investments, information technology and communication among others.
    • India has implemented its promise to set up a Centre for Bay of Bengal Studies (CBS) at Nalanda University, Bihar for research on art, culture and other subjects related to the Bay of Bengal.

    4] Strengthen the institutional capacity of the BIMSTEC Secretariat

    • The BIMSTEC Secretariat coordinates, monitors and facilitates the implementation of BIMSTEC activities and programmes. The leaders must agree to strengthen the institutional capacity of the BIMSTEC Secretariat.
    • Charter for BIMSTEC: Approval of a charter for BIMSTEC during the summit will further augment its visibility and stature in international fora.

    Conclusion

    The quest for economic growth and the development of the BIMSTEC region can be achieved with single-minded focus and cooperation among the member counties. In this endeavour, India has a key role in accelerating regional cooperation under the BIMSTEC framework and in making it vibrant, stronger and result-oriented.

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  • Govt. steps in to tackle Russian trade hurdles

    The government has convened a multi-Ministerial group to look into how to overcome challenges in trade with Russia, including managing payments for exporters and importers.

    Recent course of updates

    • Many parliamentarians have raised concerns over India’s abstentions at the United Nations and the impact of Indian policy on India’s trade and ties with the US.
    • Developments indicate a possible revival of “rupee-rouble trade” in the wake of economic sanctions against Russian banks and entities by more than 40 US and European allies.
    • India’s position has been “steadfast and consistent”, and India has repeatedly called for the immediate cessation of violence and end to all hostilities.

    Gearing-up for a ‘Shaky’ response

    • FM responded to a question over India’s support on sanctions being “somewhat shaky” amongst Quad partners.
    • Leaders asked whether there would be any “negative impact” on India’s relations with its closest allies.

    India’s clear stance

    • Indian foreign policy decisions are made in Indian national interest and we are guided by our thinking, our views and our interests.
    • So, there is no question of linking the Ukraine situation to issues of trade, the FM clarified.

     

     

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  • Deepening investments in Australia-India strategic, economic, and community ties

    Context

    On March 21, Prime Ministers of India and Australia held their Virtual Summit and took stock of the pace of implementing the Australia-India Comprehensive Strategic Partnership.

    India-Australia relations

    • Since we elevated our relationship in 2020, we have advanced practical actions on cyber and critical technologies, maritime affairs, defence ties, economic and business links and Quadrilateral cooperation.
    • The two Prime Ministers announced a range of tangible and practical initiatives spanning the breadth of our shared economic, strategic, and regional interests.

    Areas of cooperation

    • Energy partnership: Both countries are working on a new and renewable energy partnership, to support the development of technologies such as green hydrogen and ultra-low cost solar.
    • We are also supporting research and investment to unlock Australian critical minerals for Indian advanced manufacturing.
    • We will boost collaboration on innovation, science and entrepreneurship, to scale up ideas that address global challenges.
    • Space sector: We are also increasing investments into our countries’ rapidly growing space sectors.
    • We are establishing the Australia-India Centre of Excellence for Critical and Emerging Technology Policy — and a Consulate-General — in Bengaluru.
    • Australians value highly the Indian diaspora and student contributions to its community — whether economic, social, or cultural.
    • Australia and India are also working to ensure a peaceful and stable region.
    • Both countries are committed to a free and open Indo-Pacific.
    • In our defence relationship, there is an enhancement in information sharing and operational cooperation.
    • Such arrangements also help continue delivering quality humanitarian support to the region, seen recently when India helped Australia’s Pacific family, Tonga and Kiribati.

    Conclusion

    These investments in strategic, economic, and community ties show what we can achieve when two multicultural democracies join in a spirit of trust and understanding.

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