Iran has said that its April 12 attacks on Israel were in response to Israeli war jets targeting an Iranian consulate in Syria earlier this month, leading to the death of its senior military commanders.
Context:
The Iran-Israel relationship has not always been as fraught as it is today. Iran was one of the first countries in the region to recognise Israel after its formation in 1948. It was only after 1979 that their diplomatic ties ended.
Iran–Israel Relations: This can be studied through four major phases:
Ambivalent (1947-1953);
Friendly (1953-1979);
Worsening (1979-1990);
Open Hostility (1991-present);
1953 to 1979 Iran–Israel Relations:
From 1953 to 1979, during the rule of the Pahlavi dynasty in Iran, the relationship between Iran and Israel was relatively friendly.
Iran recognized Israel as a sovereign state in 1950, making it the second Muslim-majority country to do so after Turkey.
Despite occasional tensions, Iran and Israel engaged in significant economic, political, and military cooperation during this period. This cooperation extended to various sectors and included joint projects.
Iran supported Israel during conflicts with Arab nations, indicating a level of alignment in their geopolitical interests.
One notable joint project between Iran and Israel was the construction of the Trans-Israel oil pipeline, showcasing the depth of their cooperation, particularly in the economic sphere.
Post 1979 Iran–Israel Relations:
After the 1979 Islamic Revolution, Iran became a religious state, with a significant shift in its foreign policy and worldview.
Iran, under the new regime, viewed Israel as an occupier of Palestinian land and referred to it as “Little Satan.” This represented a significant departure from the previous regime’s stance.
Iran, under Ayatollah Khomeini, also labeled the United States as the “Great Satan” and saw both Israel and the US as interfering in the region’s affairs.
Iran sought to expand its influence in the region, challenging traditional powers such as Saudi Arabia and Israel, both of which were US allies.
Initially at odds with pan-Arabism championed by leaders like Gamal Abdel Nasser, Iran’s relations with Arab countries, such as Egypt, warmed after Nasser died in 1970.
The signing of an accord between Iran and Iraq in 1975, which included Iran’s agreement to cease support for Kurdish-Iraqi separatists, led to a temporary easing of hostility between the two nations.
These shifts in Iran’s foreign policy and its improved relations with neighboring countries, as well as Iraq, led to a decrease in Israel’s strategic importance to Iran.
India’s Stance:
India’s Neutral Stance: India has adopted a neutral stance on the conflict between Iran and Israel, emphasizing the importance of peace and stability in the region.
Strategic Partnership with Israel: Despite its neutral stance, India maintains a strategic partnership with Israel, characterized by significant military and economic ties, including a substantial trade volume of around $7.5 billion.
Cultural and Linguistic Ties with Iran: India also has cultural and linguistic ties with Iran, along with strategic economic interests, such as the Chabahar port project, which connects India to Central Asia through Iran.
Focus on Citizen Safety: India’s primary focus amidst the escalating conflict is ensuring the safety and well-being of its citizens, with approximately 10,000 Indian nationals in Iran and an additional 18,000 in Israel.
Conclusion: Iran-Israel ties, once friendly, soured post-1979 due to Iran’s religious revolution. India maintains neutrality, balancing strategic partnerships with both nations while prioritizing citizen safety amid escalating tensions.
The review aims to address concerns such as the inverted duty structure, which puts local manufacturers at a disadvantage.
Trade deficit issue with ASEAN
High trade deficit: The trade deficit between India and the Association of Southeast Asian Nations (ASEAN) has been a significant issue, with the deficit widening to USD 43.57 billion in the last fiscal from USD 25.76 billion in 2021-22 and just USD 5 billion in 2010-11
Review AITIGA:This has led to a review of the ASEAN-India Trade in Goods Agreement (AITIGA) by 2025, aiming to address concerns about trade barriers, abuse of the agreement, and the growing trade gap between India and the ASEAN region
ASEAN-India Trade in Goods Agreement (AITIGA)
The ASEAN-India Trade in Goods Agreement (AITIGA) is a trade agreement between the ten member states of ASEAN and India, signed in 2009 and implemented in 2010. The agreement aims to establish a free trade area between the parties, covering trade in physical goods and products, and progressively eliminating duties on 76.4 percent of goods.
The trade deficit between India and the ASEAN region is primarily due to the following reasons:
Tariff disparities: India’s tariffs were much higher than partner countries, leading to a significant reduction in tariffs for partner countries, which in turn caused India’s imports to grow faster than exports. This imbalance has been widening since 2010-11, the year India entered into an agreement with ASEAN
Non-tariff barriers and regulations: India’s exports to ASEAN have been affected due to non-reciprocity in FTA concessions, non-tariff barriers, import regulations, and quotas. These factors have hindered India’s ability to fully benefit from the FTA
Routing of goods from third countries: There have been concerns about the routing of goods from third countries, such as China, to ASEAN countries with minimum value addition and then being imported into India, misusing the India-ASEAN FTA. This practice has contributed to the growing trade deficit
Limited market access for Indian products: India’s exports of products such as textile clothing, footwear, food products, and minerals don’t have a significant place in ASEAN imports, while there is a higher dependence on products such as vegetables, fuels, chemicals, and metals from ASEAN, which are essential commodities
Conclusion
India’s review of the ASEAN-India Trade in Goods Agreement aims to tackle the widening trade deficit by addressing tariff disparities, non-tariff barriers, and the misuse of the agreement, crucial steps toward fostering fair and balanced trade relations.
Mains question for practice
Q Discuss the factors contributing to high deficit between India and ASEAN.
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.(UPSC IAS/2018)
Q “Increasing cross-border terrorist attacks in India and growing interference in the internal affairs of several member-states by Pakistan are not conducive for the future of SAARC (South Asian Association for Regional Cooperation).” Explain with suitable examples.(UPSC IAS/2016)
Note4Students:
Mains: Bilateral ties
Mentor comments: In the contemporary era of populism, an unwritten maxim dictates that “all geopolitics is local,” shaping policymaking worldwide. Consequently, leaders often craft foreign policies with a keen eye on domestic political ramifications, aiming not only to avoid negative impacts but even to secure additional voter support. However, it’s unusual for general elections to become entangled with foreign policy matters to the extent seen in the upcoming elections in India.
Let’s learn
—
Why in the news?
The upcoming 2024 elections in India are making headlines due to the significant impact they may have on the country’s foreign policy.
Raising Geopolitical issues in the General Election:
The recent statements by Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar calling into question the 1974 India-Sri Lanka agreement.
Not only did they both criticize former Prime Ministers and their party for the decision to recognise Katchatheevu island as part of Sri Lankan territory, but the External Affairs Minister also went on to say that a “solution” must be found for the continuing “situation” Tamil Nadu fishermen find themselves in as a result of the agreement.
Credibility could take a hit:
Reputation as an Interlocutor: Any move by New Delhi to reopen or revise international agreements, especially those recognized by bodies like the United Nations Convention on the Law of the Sea (UNCLOS), could call into question India’s reliability and credibility as a diplomatic partner.
Impact on Negotiations: Renegotiating or revising agreements, such as the maritime boundary settlement with Bangladesh or the land boundary agreement between India and Bangladesh, could complicate ongoing negotiations and strain diplomatic relations with partner countries.
Precedent Setting: The actions taken by India regarding the Indus Waters Treaty with Pakistan serve as a precedent. Despite threats and calls for renegotiation, the treaty remains intact.
This indicates the challenges and complexities involved in revising established agreements, underscoring the potential ramifications for India’s credibility.
Long-Term Consequences: Any perceived inconsistency in India’s approach to international agreements may have long-term consequences for its diplomatic standing and ability to effectively engage in multilateral negotiations.
Key Challenges with Indian Government:
Citizenship (Amendment) Act (CAA) and the NRC: The implementation of the CAA, which excludes Muslims and is seen as discriminatory by neighboring countries like Bangladesh, has the potential to strain diplomatic ties.
Additionally, fears over the subsequent implementation of the NRC and the potential designation of hundreds of thousands of people from Bangladesh as stateless citizens could further escalate tensions with Dhaka.
China Factor: The ongoing standoff with China at the Line of Actual Control (LAC) raises concerns, particularly regarding China’s occupation of land since April 2020.
Canada Factor: Allegations of transnational killings by Indian agencies, including the trial of an Indian national in the United States for an alleged assassination plot and Canada’s claims of Indian involvement in the killing of a Sikh community leader, have sparked international attention and scrutiny.
Pakistan Factor: Pakistan has sought to align its claims of Indian involvement in killings with cases in the U.S. and Canada, further complicating diplomatic relations between the two countries.
Way Forward:
Citizenship (Amendment) Act (CAA) and National Register of Citizens (NRC): Engage in transparent dialogue with neighboring countries, especially Bangladesh, to address concerns about the discriminatory nature of the CAA and potential implications of the NRC.
Standoff with China: Prioritize diplomatic channels to de-escalate tensions and seek peaceful resolutions to territorial disputes along the Line of Actual Control (LAC).
Alleged Transnational Killings: Cooperate with international investigations to transparently address allegations of transnational killings, ensuring adherence to legal procedures and respect for human rights.
Pakistan’s Allegations: Maintain diplomatic composure and refute baseless allegations through evidence-based responses, avoiding escalation of tensions.
The Asian Development Bank (ADB) increased its GDP growth projection for India for the current fiscal year to 7%, up from its previous estimate of 6.7%.
Reason behind the increased India’s GDP growth projection by ADB:
Manufacturing Sector: The manufacturing sector growth of India in the 2023 fiscal year was robust, with the S&P Global India Manufacturing PMI rebounding to 56.0 in November 2023 from an eight-month low of 55.5 in October 2023.
Investment and Consumption Demand: Investment and Consumption demand are both expected to drive India’s economic growth in 2024 and FY25. Private Final Consumption Expenditure (PFCE) grew at 3.5% in the December quarter of FY24.
Inflation Trend: Inflation in India is expected to continue its downward trend in tandem with global trends Inflation in India decreased to 5.09 percent in February 2024 from 5.10 percent in January 2024. India’s inflation rate is projected to trend around 4.30 percent in 2025, according to econometric models.
Monetary policy: The RBI has kept the repo rate unchanged at 6.5% for 2023-24, focusing on withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting growth.
Government Initiatives taken for Regional Development:
Regional Cooperation and Integration (RCI) Conference, 2023:
It was organised by the Asian Development Bank (ADB) at Tbilisi, Georgia.
Theme: ‘Strengthening Regional Cooperation and Integration through Economic Corridor Development (ECD)’.
Objective: To integrate spatial transformation and area-centric approach with the help of Economic Corridor Development.
In this Conference, India offered its indigenously developed GIS-based technology though knowledge sharing to ADB and South Asia Sub-Regional Economic Cooperation (SASEC) countries for enhancing socio-economic planning and regional cooperation.
PM GatiShakti National Master Plan and Multi-modal Connectivity:
Basically, PM Gati Shakti is principled to bring socio-economic area-based development as part of regional connectivity.
It is being implemented to enhance connectivity with regional partners with the help of GIS-based technology. For Example: Indo-Nepal Haldia Access Controlled Corridor project.
BACK2BASIC:
About Asian Development Bank(ADB):
Established in 1966, it is owned by 68 members-49 from the region. ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
Headquarters: Manila, Philippines.
Objective: To foster social and economic development across Asia and the Pacific region.
Conclusion: Indian government’s effort across the robust manufacturing growth, investment, working on consumption demand, decreasing inflation, and supportive monetary policy, aligning with its goal of promoting regional social and economic development are gaining some fruits.
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)
Q India has recently signed to become founding member of New Development Bank (NDB) and also the Asian Infrastructure Investment Bank (AIIB). How will the role of the two Banks be different? Discuss the strategic significance of these two Banks for India. (UPSC IAS/2014)
PYQ Relevance: Mains: Q) ‘India is an age-old friend of Sri Lanka.’ Discuss India’s role in the recent crisis in Sri Lanka in light of the preceding statement. (UPSC CSE 2022) Q) In respect of India — Sri Lanka relations, discuss how domestic factors influence foreign policy. (UPSC CSE 2013)
Note4Students:
Prelims: Places in News; India and Sri Lanka;
Mains: Bilateral Issues; India and Sri-Lanka;
Mentor comments:India and Sri Lanka both are close neighbors with historical, political, social, andreligious similarities. Simultaneously, both are in disputes on certain issues. The Katchatheevu issue is a long-standing dispute between India and Sri Lanka regarding the ownership and use of the Katchatheevu Island, which is strategically located in the Palk Strait. The island was historically owned by the Ramanad Kingdom of Ramanathapuram district in Tamil Nadu before Indian independence. In 1974, India recognized Sri Lanka’s ownership of the island under a conditional agreement, which has been a point of contention, especially for Indian fishermen from Tamil Nadu. We need to discuss this issue as the central government has attempted to address these issues, but the dispute remains unresolved.
Let’s learn.
—
Why in the News?
In a Public meeting, Tamil fishermen criticized the ceding of Katchatheevu Island. They highlighted the Indian fishermen being shot by the Sri Lankan Navy.
Background Story:
Despite the historical claims and disputes, the Katchatheevu issue was formally addressed in 1974 when India signed an agreement to demarcate the boundaries, leading to the cession of Katchatheevu to Sri Lanka.
This decision has been a point of contention as follows:
Tamil Nadu’s perspective: The root cause of the problem is a conflict of interests. On the one side are the two governments which do not want to reopen the issue of Katchatheevu.
Indian fishermen’s perspective: The Indian fishermen will not easily give up a means of livelihood that they have enjoyed for several years.
Two interrelated issues for India and Sri Lanka should be kept in mind:
Sanctity of Bilateral Agreements: The unilateral scrapping of a bilateral agreement will have profound consequences not only on India-Sri Lanka relations but also with several of India’s other neighboring countries. Bilateral agreements have their sanctity and cannot be scrapped based on the whims and fancies of every party in power.
Siamese Twin Game: The Centre should be urged to take immediate steps to ensure the livelihood of fishermen on both sides of the Palk Strait. It would be unwise to attempt to create a Berlin Wall in the Palk Strait. What afflicts one will affect the other.
The Quest for a Peaceful Solution:
To solve this present issue there are two solutions:
Firstly, getting back to the island of Katchatheevu on lease in perpetuity (Tin Bigha) in reverse. India could use the island and the surrounding waters for fishing. However, this can uphold the sovereignty of Sri Lanka.
Secondly, to allow Indian fishermen to fish in Sri Lankan waters up to 5nm. There was a precedent to this. Under the 1976 Agreement, Sri Lankan fishermen were permitted to fish near the Wadge Bank, near Kanniyakumari, for 3 years.
While the TN regional governments accepted these suggestions, the greatest obstacle was the Centre refusing to reopen the issue.
Introduction of ‘Trawling’:
Bottom trawling is a fishing method that involves scouring the sea bed for fish, pulling in a variety of marine life, including coral and seaweed.
This method of fishing destroys spawning grounds and the marine ecosystem, depleting future catches.
While it is banned in Sri Lanka, it continues to be practiced in India, causing damage to the sea bed and reducing fish availability on the Indian side of Palk Bay.
This has led Indian fishermen to enter Sri Lankan waters in search of fish, causing conflict with Sri Lankan Tamil fishermen who use traditional forms of fishing.
India’s image may suffer if Sri Lanka takes the ICJ case against India.
The Need for Bold Decisions:
Working on the Palk Bay: It can work as a bridge between India and Sri Lanka. India can convert contested territory to a common heritage.
The government of India needs to ban all fishing equipment which are banned in Sri Lanka. Further, we should work to ensure that fishermen can equitably enjoy the rich marine wealth.
Encourage joint ventures: Both governments need to encourage the Tamil fishermen of both countries to meet, form cooperative societies, and venture into deep-sea fishing.
Such joint ventures will also help repair the damage Indian fishermen have caused to the livelihood of their Tamil counterparts.
Conclusion: Every challenge provides an opportunity. The problems in Palk Bay can be solved only if we start thinking outside the box.
Mrs. Jagjit Pavadia (IRS) India’s nominee has been re-elected for a third term to the INCB for the period of 2025-2030.
About International Narcotics Control Board (INCB)
Description
Establishment
Established in 1968 by the Single Convention on Narcotic Drugs of 1961.
Headquarters
Based in Vienna, Austria, with a Secretariat supporting its activities.
Membership
Consists of 13 members elected by ECOSOC, experts in drug control and related fields.
Role and Mandate
Independent body monitoring compliance with UN drug control conventions.
Functions
Assess global drug situation, evaluate licit drug production, and publish annual reports.
Collaboration
Works with governments and international organizations on drug control issues.
Control Measures
Monitors and evaluates national drug control measures for treaty compliance.
Advocacy and Awareness
Promotes adherence to drug treaties and raises awareness on global drug issues.
Cooperation
Collaborates with UN agencies like WHO and UNODC to address drug-related challenges.
India’s Election to Key UN Bodies
India’s proactive engagement at the United Nations resulted in its election to several pivotal bodies:
1. Commission on the Status of Women (2025-2029)
2. Executive Board of UNICEF (2025-2027)
3. Executive Board of UNDP and UNFPA (2025-2027)
4. UN Office for Project Services (2025-2027)
5. Executive Board of UN Women (2025-2027)
6. Executive Board of the World Food Programme (2025-2027)
PYQ:
[2019] Consider the following statements:
1. The United Nations Convention against Corruption (UNCAC) has a ‘Protocol against the Smuggling of Migrants by Land, Sea and Air’.
2. The UNCAC is the ever-first legally binding global anti-corruption instrument.
3. A highlight of the United Nations Convention against Transnational Organized Crime (UNTOC) is the inclusion of a specific chapter aimed at returning assets to their rightful owners from whom they had been taken illicitly.
4. The United Nations Office on Drugs and Crime (UNODC) is mandated by its member States to assist in the implementation of both UNCAC and UNTOC.
China’s burgeoning production of electric cars and other green technologies has become a flashpoint in a new US-China trade fight, highlighted by US Treasury Secretary Janet Yellen during her five-day visit to China.
Context:
According to the Paris-based International Energy Agency, China has built a substantial car industry that accounts for 60% of global electric vehicle sales. Similar dynamics exist in other industries, such as solar panels, batteries, and steel.
China is now the world’s largest producer of solar cells.
Now the main concern is that the Chinese are building up a lot of capacity in many industries across the board, including these new technology sectors, and if domestic demand does not pick up, they are going to be looking for markets outside the country.
US-China Trade Dispute:
The US and China have been slugging it out since Trump slapped heavy tariffs on imported steel and aluminum items from China in March last year, and China responded by imposing tit-for-tat tariffs on billions of dollars worth of American imports.
The IMF noted that the US-China trade tension was one factor that contributed to a “significantly weakened global expansion” late last year, as it cut its global growth forecast for 2019.
US-China Trade and Investment Facts:
US GOODS & SERVICES trade with China totalled an estimated $737.1 billion in 2018. Exports: $179.3 billion; imports: $557.9 billion; deficit: $378.6 billion
CHINA IS CURRENTLY the US’s largest goods trading partner with $659.8 billion in total (two-way) goods trade in 2018. Exports: $120.3 billion; imports: $539.5 billion; US goods trade deficit: $419.2 billion
US FDI IN CHINA (stock) was $107.6 billion in 2017, a 10.6% increase from 2016. US direct investment in China is led by manufacturing, wholesale trade, finance and insurance
CHINA FDI IN THE US (stock) was $39.5 billion in 2017, down 2.3% from 2016. China’s direct investment in the US is led by manufacturing, real estate, depository institutions
How does China’s Auto Industry pose an external threat to Indian Market?
Market Dominance: China is dominating the local market and threatening to dominate India’s traditional export markets, which could cause concern for the ‘Make in India‘ program.
Quality Concerns: The quality of auto parts coming from China is a major concern for the safety of vehicles in India. With increasing stakes by Chinese vendors, the situation is expected to become more challenging.
Cost Advantage: Chinese automakers have a cost advantage over North American and European brands, allowing them to undercut rivals. This cost advantage is due to Chinese manufacturers’ ability to produce EVs more efficiently and profitably than their Western counterparts.
Security concerns: Chinese automakers flooding foreign markets with their autos and the potential for these vehicles to be used for espionage, data collection, or sabotage.
How India can benefit from the ongoing US-China trade war?
Export Opportunities: India can tap export opportunities in both the US and China, particularly in areas such as garments, agriculture, automobile, machinery, apparel, and readymade garments
Export Growth: India’s exports to the US increased by 11.2% in 2018, and to China by 31.4% in the same year, indicating the potential for further growth
Product Opportunities: India can boost exports of around 350 products to the US and China, including items like copper ores, rubber, paper/paperboard, industrial valves, vulcanised rubber, carbon or graphite electrodes, and natural honey
Trade Deficit Reduction: Increasing exports would help India narrow the widening trade deficit with China, which stood at USD 50.12 billion during April-February 2018-19
Conclusion: The US-China trade fight intensifies over China’s dominance in green technology sectors like electric vehicles. India stands to benefit from increased exports to both nations, potentially narrowing its trade deficit with China while tapping into new markets.
The Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum is set to be held in Singapore.
About IPEF Clean Economy Investor Forum
The IPEF Clean Economy Investor Forum brings together the region’s top investors, philanthropies, financial institutions, innovative companies, start-ups and entrepreneurs.
The Forum aims to mobilize investments into sustainable infrastructure, climate technology and renewable energy projects.
It is managed by Invest India (www.investindia.gov.in), India’s National Investment Promotion Agency.
The Department of Commerce is the nodal agency for the IPEF engagements.
The Forum will have opportunity for the Indian industry in the two following tracks:
Climate Tech Track: Under this track, IPEF Clean Economy Investor Forum is holding an open call that aims to recognise the top climate tech companies and start-ups among the member countries and present them to global investors.
Infrastructure Track: Under this track, India will showcase selected investible sustainable infrastructure projects at the 2024 Forum. The sectors of focus are-energy transition (e.g electric gird; renewable energy, including solar, and onshore wind; sustainable aviation fuel; battery storage; hydrogen; green data centers), transport and logistics (e.g. Electric Vehicle, EV charging points), waste management/waste to energy.
About Indo-Pacific Economic Framework for Prosperity (IPEF)
It is a US-led initiative that aims to strengthen economic partnerships among participating countries to enhance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness in the Indo-Pacific region.
The IPEF was launched in 2021with 12 initial partners who together represent 40% of the world GDP.
The IPEF is NOT a Free Trade Agreement (FTA) but allows members to negotiate the parts they want to.
Four main “Pillars” of IPEF:
Trade that will include digital economy and emerging technology, labor commitments, the environment, trade facilitation, transparency and good regulatory practices, and corporate accountability, standards on cross-border data flow and data localisations;
Supply chain resilience to develop “a first-of-its-kind supply chain agreement” that would anticipate and prevent disruptions;
Clean energy and decarbonization that will include agreements on “high-ambition commitments” such as renewable energy targets, carbon removal purchasing commitments, energy efficiency standards, and new measures to combat methane emissions; and
Fair Economy Agreement, with commitments to enact and enforce “effective tax, anti-money laundering, anti-bribery schemes in line with [American] values”.
Members Countries include:
Currently, India and 13 countries other located in the Pacific Ocean are its members: Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, and Vietnam.
How is IPEF different from other trade deals?
No market access or tariff reductions have been outlined in the IPEF, although experts say it can pave the way to trade deals.
It’s not a take-it-or-leave-it arrangement, like most multilateral trade deals are.
Since the IPEF is not a regular trade pact, the members so far are not obligated by all four pillars despite being signatories.
After Chabahar, India has gained the rights to operate a second overseas port, Sittwe, in Myanmar.
This development is part of the Kaladan Multimodal Transit Transport project, which aims to provide alternate connectivity from the eastern coast of India to the northeastern states through the Sittwe port.
About India Ports Global (IPGL)
The Ministry of External Affairs (MEA) has approved a proposal for India Ports Global (IPGL) to take over the operations of the entire port located on the Kaladan River.
IPGL is a company 100% owned by the Ministry of Ports, Shipping and Waterways.
It is a joint venture between Jawaharlal Nehru Port Trust (JNPT) and Deendayal Port Trust (Erstwhile Kandla Port Trust).
It was created and incorporated in January 2015 under the Companies Act, 2013, as per directions of Ministry of Shipping (MoS), for development of ports overseas.
The MoS has presently assigned IPGL the task of equipping and operation of container/multi-purpose terminals at Chabahar Port in Iran.
About Sittwe Port
The Sittwe Port, located in the Rakhine State of Myanmar, is a crucial component of the Kaladan multi-modal transit transport project.
It has been developed under a framework agreement between India and Myanmar for the construction and operation of a multimodal transit transport facility on the Kaladan River.
It is a deep-water port serving as a maritime gateway, enhancing trade and connectivity between India and Myanmar.
Significance of Sittwe Port
The Sittwe Port is part of the Kaladan multi-modal transit transport project.
The project aims to connect the eastern Indian seaport of Kolkatawith Sittwe seaport in Myanmar by sea.
It further link Sittwe Port to Paletwa in Myanmar via Kaladan river waterway, and connect Paletwa to Zorinpui in Mizoram through a road component.
This link will not only offer an alternative route for shipping goods to the northeastern states, but will significantly reduce the cost and distance from Kolkata to Mizoram and beyond.
It will also reduce dependency on the Siliguri Corridor, known as the chicken’s neck, which is squeezed between Bhutan and Bangladesh.
It connects the seaport of Kolkata in India to Sittwe seaport in Rakhine State, Myanmar, by sea.
In Myanmar, the project links Sittwe seaport to Paletwa in Chin State via the Kaladan river boat route and then from Paletwa by road to Mizoram state in Northeast India.
The project is being funded by the Indian government and is aimed at reducing the distance from Kolkata to Sittwe by approximately 1,328 km.
It was initially scheduled to be completed by 2014.
The project is affected by Chin conflict, Rohingya conflict, and militant groups such as Arakan Army and Arakan Rohingya Salvation Army (ARSA).
There are different sections of the Kaladan Multi-Modal Transit Transport Project, which combines multi-modes of transport, including sea, river, and road routes.
Sea Route: It includes- Kolkata-Sittwe shipping route, Sittwe seaport to Paletwa inland jetty river boat route, Sittwe Special Economic Zone at Ponnagyun town, Paletwa inland jetty to Zorinpui road route in Myanmar, and the Zorinpui to Aizawl road route in India.
Road: This project will complement the river-road route of the Kaladan Multi-Modal Transit Transport Project in Myanmar-Mizoram.
Railway: It has the Sittwe-Kyaukhtu railway in Myanmar, Kyaukhtu-Zorinpui in Myanmar, and the Zochawchhuah (Zorinpui)-Sairang railway in India.
PYQ:
[2015] In the Mekong-Ganga Cooperation, an initiative of six countries, which of the following is/are not a participant/ participants?
1. Bangladesh
2. Cambodia
3. China
4. Myanmar
5. Thailand
Select the correct answer using the codes given below:
![[12 April 2024] The Hindu Op-ed: In poll season, the perils of scorching bilateral ties](https://d18x2uyjeekruj.cloudfront.net/wp-content/uploads/2024/04/12-april-1568x882.jpg)
![[11 April 2024] The Hindu Op-ed: Katchatheevu demands thinking outside the box](https://d18x2uyjeekruj.cloudfront.net/wp-content/uploads/2024/04/11-april-1568x882.jpg)
