The China-backed Niger-Benin Export Pipeline that would make Niger an oil-exporting country is being threatened by an internal security crisis and a diplomatic dispute with neighboring Benin.
These issues arose after last year’s coup that toppled Niger’s democratic government.
About Niger
Niger, located in West Africa, is a landlocked country known for its vast desert landscapes and significant cultural heritage.
The northern region of Niger is dominated by the Sahara Desert, comprising more than half of the country.
The central part of Niger is characterized by the Sahel, a semi-arid transition zone between the Sahara
The Aïr Mountains, located in the northern central part are a significant mountain range with the highest peak, Mont Idoukal-n-Taghès (2,022 m).
The Niger River is the country’s primary water source.
Lake Chad is a significant body of water shared with Nigeria, Chad, and Cameroon. Its size keep on fluctuating.
About Niger Benin Export Pipeline
The 1,930-kilometer pipeline runs from Niger’s Chinese-built Agadem oil field to the port of Cotonou in Benin.
It was designed to help Niger achieve an almost 5x increase in oil production through a $400 million deal with China’s state-run national petroleum company.
The pipeline faces significant challenges, including a recent diplomatic disagreement with Benin.
These issues threaten to strain Niger’s economy, heavily reliant on external support now withheld after a coup.
PYQ:
[2018] Which of the following has/have shrunk immensely/dried up in the recent past due to human activities?
Aral Sea
Black Sea
Lake Baikal
Select the correct answer using the code given below:
The Union Budget presented by Finance Minister Nirmala Sitharaman prioritized India-funded projects in neighbouring countries, receiving the majority of the Ministry of External Affairs’ allocation.
What are the India-funded projects in the neighbourhood?
India has provided significant aid to Nepal, including funding for hydroelectric power plants like Pardi, Trishuli and Devighat.
In Afghanistan, India has provided over $3 billion in assistance and was involved in over 400 projects across 34 provinces, including major infrastructure projects like the Salma Dam and the Zaranj-Dalaram Highway.
In Myanmar, Kaladan Multi-Modal Transit Transport Projects is $484 million project aims to connect the northeastern Indian state of Mizoram to the Sittwe port in Myanmar’s Rakhine state.
In the 2024-25 budget, India allocated ₹700 crore to Nepal (up from ₹550 crore), ₹245 crore to Sri Lanka (up from ₹150 crore), and ₹30 crore to Seychelles (up from ₹10 crore).
Reasons for reduced focus on Bhutan
Bhutan, the largest recipient of MEA’s annual allocation, saw a dip in funding by ₹332.02 crore to ₹2,068.56 crore.
However, this slight reduction does not indicate a decrease in funding for projects in Bhutan, as India and Bhutan recently cleared 61 projects amounting to ₹4,958 crore.
Importance of Bhutan for India:
Strategic Importance:
Bhutan shares borders with India and China, acting as a buffer state between the two. Its strategic location is crucial for India’s security interests.
India has provided assistance to Bhutan in areas like defence, infrastructure, and communication to maintain its sovereignty and territorial integrity.
During the 2017 Doklam standoff between India and China, Bhutan allowed Indian troops to enter its territory to resist Chinese incursions.
Economic Importance:
India is Bhutan’s largest trading partner, accounting for 98% of its exports and 90% of its imports.
Bhutan’s hydropower potential is a significant source of revenue, and India has been instrumental in assisting Bhutan in developing these projects.
India provides substantial economic support to Bhutan. In 2015-16, India’s budgetary support to Bhutan stood at ₹61.60 billion, making it the largest recipient of India’s foreign aid.
Cultural Ties: Bhutan and India share strong cultural ties, as both countries are predominantly Buddhist
Future scope for India’s Neighbourhood Policy (Way forward)
Strengthening Bilateral Ties: Need to negotiate free trade agreements, promote investments, and collaborate on infrastructure projects to boost economic ties.
For example, India and Bangladesh have made significant progress in recent years, with the inauguration of the Maitri Setu bridge connecting Tripura to Bangladesh. The two countries are also working on the Akhaura-Agartala rail link to enhance connectivity.
Promoting Regional Cooperation: Need to collaborate on regional initiatives such as the BBIN (Bangladesh, Bhutan, India, Nepal) Motor Vehicles Agreement for seamless movement of goods and people.
For instance, India has been actively involved in the BIMSTEC Coastal Shipping Agreement and the BIMSTEC Grid Interconnection project to enhance regional connectivity and energy cooperation.
Mains PYQ:
Q Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (UPSC IAS/2016)
At least 130 people have died in clashes during student protests over government job quotas in Bangladesh.
Why have students in Bangladesh taken to the streets?
Opposition to Quota System: Students are protesting against the quota system for government jobs, specifically the 30% reserved for freedom fighters and their descendants, which they believe limits merit-based opportunities.
Reversal of Quota Reforms: The protests intensified after the Supreme Court restored the quota system, reversing the previous decision to abolish it. Students demand a more balanced and inclusive quota system.
Why Is the 30% quota for Freedom fighters and their descendants an emotive matter for the Awami League?
Legacy of Sheikh Mujib: The quota system was introduced by Sheikh Mujibur Rahman, and continuing it is seen as fulfilling his legacy and honouring the sacrifices of freedom fighters.
Political Significance: The Awami League views the quota as a means to reinforce support within the bureaucracy and maintain political loyalty, linking it closely to the party’s historical and ideological narrative.
How did the protests turn violent?
The violence escalated when Prime Minister Sheikh Hasina labeled protesters as “razakars” or traitors, which enraged students and led to violent clashes with the police and Rapid Action Battalion (RAB).
The situation deteriorated to the point where the military had to be deployed to control the unrest, further intensifying the violence and confrontation between protesters and authorities.
Have the Quotas Been Misused?
Allegations of Abuse: There have been claims that the quota system has been misused, with reservations extended to party operatives and not just deserving freedom fighters’ descendants.
Dilution and Extension: The quota system, initially meant for freedom fighters and war survivors, has been criticized for being extended to broader categories over time, leading to concerns about fairness and effective utilization.
India’s recent Initiatives – ‘Strengthening Ties and Empowering Governance’
Economic Cooperation: India and Bangladesh agreed to strengthen trade and investment linkages, including the early commencement of negotiations for a Comprehensive Economic Partnership Agreement (CEPA).
Capacity Building for Civil Servants: India has been providing training and capacity-building programs for Bangladeshi civil servants through the National Centre for Good Governance (NCGG).
Development Assistance: India is the largest development partner for Bangladesh, having extended approximately $8 billion in Lines of Credit (LOC) over the past eight years for infrastructure development in sectors such as roads, railways, and shipping.
Way forward:
Balanced Approach: The Bangladesh government should consider a transparent and balanced quota reform that addresses both merit-based and reservation needs.
Monitoring and Accountability: Establishing mechanisms to monitor the implementation of quotas and prevent misuse is crucial.
Recently, the Quad Foreign Ministers’ meeting in Japan highlighted the UNSC’s paralysis, ongoing violations of international law, and the growing influence of China and an axis of Russia, China, North Korea, and Iran.
Present State of the UNSC:
Paralysis and Ineffectiveness: The United Nations Security Council (UNSC) is currently paralyzed, unable to effectively address or resolve significant global conflicts. Efforts to reform the UNSC have stalled, leaving it incapable of adapting to contemporary geopolitical realities.
Impunity in Violations of International Law: International law is being violated with impunity in conflicts such as the Ukraine war and the assault on Gaza by Israel.
The UNSC’s inability to act decisively has contributed to a growing disregard for its authority and mandates.
Role of India in QUAD:
Strategic Partnership: India’s involvement in QUAD enhances its strategic partnerships with the other member nations, allowing for collaborative efforts in maritime security, humanitarian assistance, and disaster relief operations.
Building Indo-In Pacific Policy: One of the primary objectives of QUAD is to mitigate China’s assertive actions in Indo Pacific region.
India is positioned to take on a leadership role in regional security.
Economic Collaboration: The QUAD nations are working towards strengthening economic ties, including infrastructure development at ‘Strait of Malacca’ and alternative financing options for Indo-Pacific countries.
Humanitarian Assistance and Disaster Relief: India has actively engaged in humanitarian efforts, exemplified by its Operation Sanjeevani, which provided medical assistance to several Indo-Pacific nations during the COVID-19 pandemic.
Silverlining on BRICS
Promoting South-South Cooperation: BRICS represents a significant non-Western global initiative in the post-Cold War era. It can bring together major emerging economies from different parts of the world.
Amplifying Voices in Global Governance: The BRICS Population is around 40% of the world so the BRICS nations can amplify their voices in global governance and expand their choices of international partners through this grouping.
Fostering Economic Resilience: Despite the ongoing COVID-19 pandemic, BRICS has emerged as a more effective and efficient institution in fostering economic resilience among its member nations.
Exploring Alternative Financial Mechanisms: BRICS has taken steps to establish alternative financial mechanisms, such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA).
Role BRICS group in G20: The BRICS group has consistently pushed for the inclusion of development issues in the G20 agenda. They argue that the G20 should prioritize the needs of developing countries, particularly in terms of infrastructure investment and social sector support
Promoting Sustainable Development: The BRICS nations have emphasized the importance of responsible financing for green and sustainable development.
Initiatives like the NDB’s focus on sustainable infrastructure projects which would help in achieving of SDG Goal 9.
Conclusion: Need to support and advocate for comprehensive reforms of the UNSC to address its paralysis and enhance its effectiveness. This includes expanding permanent membership to better represent contemporary global dynamics and improving decision-making processes to tackle conflicts with greater agility.
Mains PYQ:
Q Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (2020)
Q What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. (UPSC IAS/2020)
Q Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (UPSC IAS/2020)
Mentor comment: India’s strategic autonomy refers to its ability to pursue national interests and foreign policy without external constraints. This concept has gained renewed significance in the context of a multipolar world, where India seeks to balance relationships with major powers like the U.S. and Russia while navigating regional dynamics, particularly in the Indo-Pacific. However, India’s strategic autonomy is often challenged by external pressures, as seen in its cautious approach to alliances like the Quad and its historical non-alignment stance. The effectiveness of this autonomy remains variable, influenced by geopolitical developments and internal policy decisions
Let’s learn!
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Why in the news?
On July 11, 2024, U.S. Ambassador Garcetti stated, “In times of conflict there is no strategic autonomy,” after PM Modi’s visit to Moscow, highlighting U.S. concerns about India’s stance.
Current State of India-U.S. Relations:
Steady Trajectory with Stress Points: The strategic partnership between India and the U.S. remains steady overall, but stress points have emerged, particularly concerning India’s stance on the Ukraine war.
Ukraine War and India’s Neutrality: India maintained its strategic partnership with Russia, expanded energy cooperation, and refused to condemn the invasion, which caused friction with the U.S. and its allies.
Western Perception: The West views India’s position as economic support for Russia, widening the stress points in the India-U.S. partnership over the past two and a half years.
Strategic Autonomy:
Strategic autonomy means making decisions that best serve a nation’s interests, free from external pressures. It involves having the conviction, will, and resources to take autonomous decisions.
All Indian governments since Independence have followed strategic autonomy, reflected in policies like non-alignment, multi-alignment, and multi-directional foreign policy.
U.S. Criticism:
Ambassador Garcetti’s Comments: He questioned India’s ability to exercise strategic autonomy during crises, suggesting that it becomes meaningless during such times.
India’s Response: India asserts its right to take autonomous foreign policy decisions, emphasizing strategic autonomy as a cornerstone of its international relations.
Historical Evolution of India’s Foreign Policy:
Non-Alignment: Initially, India maintained equidistance from both the capitalist and communist blocs, leveraging non-alignment and Asian solidarity to mobilize Third World voices and pursue its interests.
Cold War Dynamics: With shifting global alliances, India strengthened ties with the Soviet Union while retaining strategic autonomy.
Post-Cold War Era: After the collapse of the Soviet Union and the communist bloc, India sought greater economic integration and a closer strategic partnership with the West.
Great power rivalry
Multipolar Global Order: The world is transitioning from a unipolar to a multipolar order, with the U.S. maintaining its position as the most powerful country, while China is rising as a strong competitor, and Russia is challenging Western security architecture.
This shift impacts global dynamics, especially in regions like West Asia, where conflicts like the shadow war between Israel and Iran further complicate the power balance.
India’s Strategic Autonomy: India aims to maintain its strategic autonomy by balancing relations between great powers without joining any alliance system.
Strategic autonomy is essential for India to navigate the complexities of global power rivalries and pursue its national interests independently.
Recasting India-Russia Partnership: Despite Russia’s deepening ties with China, India seeks to recast its historical partnership with Russia into a more equal bilateral relationship.
Way Forward:
Strengthening Strategic Partnerships While Ensuring Autonomy: Indian Govt. needs to deepen strategic ties with the U.S. and Europe, emphasising shared values in defense, technology, and economic cooperation while maintaining a robust partnership with Russia. Simultaneously need to ensure these relationships are based on mutual respect and recognition of India’s strategic autonomy, allowing India to independently navigate complex global dynamics.
Diversification of Alliances: Govt. shoulddevelop and strengthen ties with other emerging powers such as Japan, Australia, and Southeast Asian nations.
Domestic Capability Building: Indian Govt. should focus on self-reliance in critical sectors such as defence, technology, and energy through initiatives like ‘Make in India.’ Reduce dependency on foreign suppliers by investing in domestic manufacturing and innovation.
Turkish delegation visited to strengthen military cooperation with the junta, shifting alliances to Turkey and Russia.
Geography: Landlocked in West Africa, bordered by Algeria, Libya, Chad, Nigeria, Benin, Burkina Faso, and Mali. Population ~26.3 million; capital Niamey.
Key Points:
Gained independence from France in 1960.
Political instability with coups and a military junta in 2023.
It faces significant challenges including desertification, water scarcity, and economic development issues.
It is one of the world’s poorest nations despite having large uranium reserves.
Ivory Coast
Recent discoveries have revealed substantial oil reserves estimated at six billion barrels, potentially making Ivory Coast a net oil exporter by the end of the decade.
The Baleine field, operated by Eni, aims to reach significant production levels by 2026.
Geography: Located on the southern coast of West Africa; bordered by Liberia, Guinea, Mali, Burkina Faso, Ghana, and the Gulf of Guinea. Population ~30.9 million; capital Yamoussoukro.
Key Points:
Gained independence from France in 1960.
Experienced political instability, now relatively stable since 2016.
Fast-growing economy dependent on cocoa, coffee, and expanding into gold mining and oil refining.
Abidjan is a major hub for West African economic activities.
Pacific Island States
Participated in a summit with Japan expressing concerns over military build-ups and the need for regional peace and security.
Geography: Vast region in the Pacific Ocean, categorized into Melanesia, Micronesia, and Polynesia; diverse climates and ecosystems.
They face challenges such as climate change impacts, biodiversity loss, and varying levels of development.
Economic activities include tourism, agriculture (especially coconut and palm oil), and fishing.
These islands play a crucial role in global biodiversity and climate resilience efforts.
PYQ:
[2022] Consider the following pairs:
Region often mentioned in the news: Country
Anatolia: Turkey
Amhara: Ethiopia
Cabo Delgado: Spain
Catalonia: Italy
How many pairs given above are correctly matched?
(a) Only one pair
(b) Only two pairs
(c) Only three pairs
(d) All four pairs
[2018] Consider the following pairs:
Towns sometimes mentioned in news: Country
1. Aleppo: Syria
2. Kirkuk: Yemen
3. Mosul: Palestine
4. Mazar-i-Sharif: Afghanistan
Which of the pairs given above are correctly matched?
Q) ‘The long-sustained image of India as a leader of the oppressed and marginalised nations has disappeared on account of its new found role in the emerging global order.’ Elaborate. (UPSC IAS/2019)
Prelims: Consider the following statements: (UPSC IAS/2020) 1) The value of Indo-Sri Lanka trade has consistently increased in the last decade. 2) “Textile and textile articles” constitute an important item of trade between India and Bangladesh. 3) In the last five years, Nepal has been the largest trading partner of India in South Asia.Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 2 only (d) 3 only
Note4Students:
Prelims: India-Nepal Bilateral Ties;
Mains: Neighbourhood First Policy; Panchasheel Principles;
Mentor comment: India and Nepal share deep geographical, civilizational, historical, economic and cultural ties. They have an open border and close people-to-people connections. The 1950 India-Nepal Treaty of Peace and Friendship forms the bedrock of their special relationship, granting citizens of both countries equal economic and educational opportunities. India is Nepal’s largest trade partner and source of foreign investment. The two countries have extensive cooperation in areas like defense, disaster management, infrastructure development, water resources, and education. During recent years, the Indian government has been observing some strains and gaps in this relationship, which needs urgent attention seeing the regional geopolitical situations.
Let’s learn!
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Why in the news?
India-Nepal relations have involved a significant decline in bilateral ties since 2015, which has now presented an opportunity for improvement.
Key events and issues that contributed to the strain include:
•New Constitution in Nepal: In 2015, Nepal’s Constituent Assembly adopted a new constitution, which India had wanted to be reworked. Despite promises made during visits to New Delhi, the draft was promulgated unamended, leading to tensions. •Economic Blockade: India imposed an economic blockade on Nepal, which lasted nearly six months. This blockade was seen as a response to the new constitution and was widely criticized for its impact on Nepal’s economy and relations with India. •Increased Chinese Influence: Nepal’s PM Khadga Prasad Oli reacted to the blockade by signing 10 agreements with China, covering areas such as trade, transit, power, and transport. This move further strained the India-Nepal relationship. •Political and Diplomatic Tensions: The Indian government became more involved in Nepali governance and politics, leading to accusations of interference. The RSS and the BJP were also accused of attempting to influence Nepal’s politics and culture to align with India’s image. •Border Disputes: The publication of an updated political map by India in October 2019, which included the disputed Limpiyadhura-Kalapani triangle, led Nepal to amend its constitution to include the same region on its map. This further exacerbated the border disputes between the two countries.
The present context of Power and Prowess between both countries:
Conjecture in Nepal: There is speculation in Nepal about what Narendra Modi’s third term as Prime Minister means, given the legacy of the blockade, Hindutva activism, economic stifling, and geopolitical coercion.
Indian Exceptionalism: India’s long history of interfering in Nepal’s politics and governance goes against the principle of non-interference, as seen in the Panchsheel doctrine.
India’s overbearing attitude towards Nepal seems to be based on power rather than prowess (skill or expertise), which could lead to a more stable and economically energized Nepal, benefiting India’s National Security and Economy.
Legacy of India’s existing Policies: Modi’s foreign policy and national security teams remain unchanged, leading to questions about whether he will become more moderate or aggressive to compensate for the BJP’s domestic slowdown.
Modi’s“Neighbourhood First“ initiative has been unsuccessful, and he may need to correct his policies on Nepal as the closest neighbor.
Nepal is not just a basket-case neighbor but the seventh largest remittance-sending country to India, helping support livelihoods in India’s poorest regions.
Nepalian Viewpoint:
Eroded Ability to Engage Equally
Nepal’s political, civil society, bureaucratic, and security institutions have lost the ability to engage with their Indian counterparts as equals. This is due to the ongoing political turmoil in Nepal.
Nepal’s political leadership has included both weak and subservient figures. The worst example was during the prime ministership of Pushpa Kamal Dahal (‘Prachanda’), the Maoist leader.
Dahal’s Subservience to India
During his 2023 visit to India, Nepali PM Pushpa Kamal Dahal avoided raising issues that could have upset Modi. He failed to discuss pending bilateral matters like air routes, the Limpiyadhura-Kalapani dispute, and the Eminent Persons’ Group (EPG) report.
To please the RSS, Dahal and his team wore saffron robes at a temple in Madhya Pradesh.
Dahal signed a power trade deal that let India refuse imports from Nepal’s Chinese-backed hydropower plants and allowed the Indian embassy to distribute grants in Nepal.
Considering the South Asian Region and India’s Peaceful Existence:
Nepal’s Cordiality towards India: Presently, New Delhi is far from considering Nepal as the future connectivity gateway to the Chinese mainland via railways and roadways breaching the Himalayan rampart.
A continuing ‘Himalayan paranoia’, with its origins in the 1962 debacle with China, fuels geo-strategic insecurity in New Delhi think-tanks.
India’s Missed Opportunities: Indian economists fail to note the enormous savings in Military expenditure represented by Nepal’s presence as a ‘benign buffer’along the central stretch of the Himalaya, especially after the concerns over the Indian exchequer’s inability to bear military costs and pensions (Agniveer Scheme).
The open Nepal-India border is the prototype for a future South Asia at peace, but New Delhi analysts constantly harp on the insecurity it represents for India.
Nepal’s Suffering and India’s Misconceptions
The Maoists used shelters across the unregulated border during their decade-long insurgency against the Nepali state.
Every summer, the Indian media claims Nepal “releases” monsoon waters into the Ganga plain, but Nepal has no significant storage dams, and the Gandaki and Kosi barrages are controlled by India.
‘Nepal studies’ is not an academic discipline in India, which contributes to Indian citizens viewing Nepal as poor, ungrateful, and even malevolent.
Conclusion: Frustrated Nepalis want India to treat them as an equal partner, not a “big brother”. India’s policymakers should accept that Nepal is a separate country from India. Nepal should try to clear up misconceptions about itself and suggest ways to improve relations.
China’s Communist Party commenced and formulated a strategy for achieving self-reliant economic growth amidst heightened National security concerns and restrictions on American technology access.
What are the plenums of the Chinese Communist Party?
The Chinese Communist Party holds a major congress twice a decade, where members of the Central Committee are elected. In between the party congresses, the Central Committee holds seven plenums attended by all its current members.
The plenums are numbered from 1st to 7th, with each focusing on different aspects:
1st, 2nd, and 7th plenums typically focus on power transitions between Central Committees.
4th and 6th plenums generally center on party ideology.
3rd plenums have historically focused on long-term economic reforms.
5th plenums are associated with deliberations for the country’s five-year development plans.
What are the major decisions taken at these meetings?
Chinese govt is planning to take measures to restore and expand domestic consumption, focusing on sectors like automobiles, real estate, and services.
Reforms are also planned to transform the mechanisms of economic development by making the domestic market and technological innovation the main drivers of growth and emphasis on advancing the “New Development Pattern“ adopted in the 14th Five-Year Plan (2021-2025)
Provisions that provided relaxation of restrictions on home purchases and funding curbs on property developers in some cities are incorporated to boost the struggling real estate market.
Focus on advancing science and technology sectors like Artificial Intelligence, Green Energy and Electric Vehicles under the “New Quality productive Forces” initiative
What are the expected implications shortly for regional trade and politics?
Trade and Economic Relations: Policies discussed at plenums can impact China’s trade strategies on economic reforms, market regulations, and industrial policies could influence trade volumes, tariffs, and investment flows.
Changes in China’s economic policies could include shifts in investment patterns, and infrastructure projects linked to China’s Belt and Road Initiative.
Security Dynamics: Discussions on National security policies and Military strategies can impact regional security dynamics, especially India’s Arunachal Pradesh region influencing alliances, defense postures, and regional stability.
Conclusion: The Indian Government needs to watch its ‘Neighbourhood First’ Policy very effectively keeping its stance assertive rather than passive this time.
Mains PYQ:
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 IAS/2017)
During a campaign rally in Butler, Pennsylvania, Donald Trump was the target of an apparent assassination attempt.
The suspected gunman, identified as 20-year-old Thomas Matthew Crooks, fired up to eight shots from an AR-15-style rifle before being killed by a Secret Service sharpshooter.
What is the U.S. Secret Service?
The U.S. Secret Service is a federal law enforcement agency under the Department of Homeland Security. It was originally established in 1865 to combat counterfeiting of U.S. currency.
After the assassination of President William McKinley in 1901, the Secret Service was given the additional responsibility of protecting the President.
About the Protective Mission:
The Secret Service is tasked with protecting the President, Vice President, President-elect, Vice President-elect, and their immediate families.
It also protects former Presidents and their spouses (unless remarried), as well as major presidential and vice presidential candidates within 120 days of a general election.
The Secret Service provides physical security for the White House, the Vice President’s residence, and foreign diplomatic missions in Washington D.C.
It secures major events designated as National Special Security Events, like the State of the Union address and presidential inaugurations.
What is the difference between SPG (Special Protection Group) and the US Secret Service?
Dimensions
India’s SPG
US Secret Service
Mandate and Origins
The SPG was formed in 1988 to provide proximate security to the Prime Minister of India
The U.S. Secret Service was established in 1865 to combat currency counterfeiting.
Scope of Protection
The SPG is mandated to provide security only to the serving Prime Minister and their immediate family.
The U.S. Secret Service protects the President, Vice President, their families, presidential/vice-presidential candidates, and former Presidents and their spouses for life.
Tenure and Resignation
SPG personnel have a fixed 6-year tenure and are not allowed to resign during their deputation.
U.S. Secret Service agents can resign freely and may be assigned to protective details for 3-5 years before being transferred.
Coordination with Foreign Agencies
When the Indian PM visits the U.S., the SPG takes a backseat while the U.S. Secret Service takes over primary security responsibilities.
The U.S. Secret Service coordinates with foreign agencies to protect visiting heads of state, including the Indian PM.
Operational Differences
The SPG has an unblemished record, while the U.S. Secret Service has lost one President (John F. Kennedy) to assassination.
SPG personnel are drawn from various paramilitary forces, while the Secret Service has its own dedicated agents.
Conclusion: While both the SPG and the U.S. Secret Service are elite protective agencies with distinct mandates, origins, and operational structures, they each play critical roles in safeguarding their respective leaders.
Mains PYQ:
Q Indian government has recently strengthed the anti-terrorism laws by amending the Unlawful Activities (Prevention) Act, (UAPA), 1967 and the NIA Act. Analyze the changes in the context of the prevailing security environment while discussing the scope and reasons for opposing the UAPA by human rights organisations. (UPSC IAS/2019)
New Delhi aims to boost trade with Moscow to $100 billion by 2030, but India faces a $57 billion trade deficit due to strong oil imports from Russia.
Background
India’s trade with Russia has been skewed since the onset of the Ukraine war in 2022. Russia has become India’s top oil supplier, while Indian exports to Russia have struggled, resulting in a large trade deficit.
The trade deficit in the bilateral trade stood at $57 billion in FY24, with a total trade value of $66 billion. This deficit is primarily driven by India’s significant oil imports from Russia.
Why is the widening trade gap with Russia benefiting the Yuan?
Increase in Balanced Trade with China: Unlike India, China has been able to maintain a more balanced trade relationship with Russia since the Ukraine war began in 2022.
China’s exports to Russia have surged, with shipments increasing by 47% year-on-year to $111 billion in 2023.
95% of trade between China and Russia is conducted in domestic currencies, making the yuan the most popular currency in the Russian stock market.
Increase in volatility of Rubble and Rupee: Unlike the yuan, both the Indian rupee and Russian ruble have experienced considerable volatility, complicating trade in domestic currency.
The yuan’s relative stability compared to the rupee and ruble has made it a more attractive currency for settling Russia-India trade
Reluctance of Private Banks: The Indian private banks have been reluctant to facilitate trade with Russia due to fears of Western sanctions.
Most Indian private banks have significant business interests in Western countries and fear their branches could face sanctions if they engage with Russia.
As Russia prefers the yuan for payments, India’s limited exports to Russia have hindered the use of the rupee in bilateral trade.
What are the benefits of the Internationalisation of the Rupee?
Reduced Dependence on USD: Internationalizing the rupee would reduce India’s reliance on foreign currencies like the US dollar for international trade and financial transactions.
This would enhance India’s economic sovereignty and reduce exposure to currency fluctuations.
Enhanced Trade Efficiency: Using the rupee for international transactions can simplify trade processes and reduce transaction costs.
Internationalization of the rupee would eliminate the need for currency conversions, reducing transaction costs and simplifying cross-border trade.
Mitigating Risks: Protection from currency volatility not only reduces the cost of doing business but also enables better growth of business, improving the chances for Indian businesses to grow globally
Increased Global Influence: A widely accepted rupee would boost India’s economic and political influence on the global stage.
How can India internationalize the rupee?
The Reserve Bank of India permitted settling trade using the rupee through its circular in July 2022.
Trade invoicing: For the rupee to be recognized as an international currency, it needs to be increasingly used for trade invoicing.
Trade invoicing refers to the process of issuing invoices for goods or services exchanged between international trading partners. It includes detailing the terms of sale, such as prices, quantities, payment terms, and currencies used for settlement.
Increase Rupee Turnover: The rupee needs to achieve a global forex turnover share of around 4% to be regarded as an international currency, up from the current 1.6%.
Government Support: Strengthening industrial cooperation and addressing banking sector concerns can promote the use of the rupee.
Challenges involved:
Banking Sector Reluctance: Private banks are hesitant to facilitate trade with Russia due to fear of Western sanctions.
Rupee Settlement Mechanism: Indian exporters face difficulties using the rupee settlement mechanism due to the absence of a Standard Operating Procedure (SOP) for banks.
Note: A Standard Operating Procedure (SOP) for banks is a formal document outlining step-by-step instructions for routine processes and activities to ensure consistency and compliance.
Currency Volatility: Both the ruble and the rupee have experienced considerable volatility, complicating trade in domestic currencies.
International Sanctions: Private banks’ significant business interests in Western countries make them wary of facilitating trade with Russia.
How are Russia and India planning to boost trade?
Both countries have decided to eliminate non-tariff and tariff barriers in trade.
Negotiations for a trade deal with the Russia-led Eurasian Economic Union (EEU) could ease the flow of Indian products into the EEU.
Cooperation in manufacturing sectors like transport engineering, metallurgy, and chemicals.
Implementation of joint projects in priority areas and expanding reciprocal trade flows of industrial products.
Discussions on a Migration and Mobility partnership agreement to facilitate trade and movement between the two countries.
Way Forward
Enhanced Banking Support and Infrastructure: Develop a robust Standard Operating Procedure (SOP) for banks to facilitate smoother implementation of the rupee settlement mechanism for trade with Russia.
Strategic Economic Diplomacy: Strengthen bilateral economic ties through high-level diplomatic engagements to mitigate banking sector reluctance and enhance trust between Indian and Russian financial institutions.
Mains PYQ:
Q Craze for gold in Indian has led to surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization scheme. (UPSC IAS/2015)
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