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Subject: International Relations

  • [19 April 2024] The Hindu Op-ed: India’s nuanced approach in the South China Sea

    PYQ Relevance:

    Mains: 
    Q) South China Sea has assumed great geopolitical significance in the present context. Comment (UPSC IAS/2016)

    Q) With respect to the South China sea, maritime territorial disputes and rising tension affaire the need for safeguarding maritime security to ensure freedom of navigation and ever flight throughout the region. In this context, discuss the bilateral issues between India and China.(UPSC IAS/2014)

    Note4Students

    Mentor comments:Mr. Jaishankar’s comment was made amid the ongoing South China or West Philippine Sea dispute between Manila and Beijing which witnessed, arguably, its most intense and volatile year in 2023, with frequent tensions at sea and diplomatic friction. A joint statement in 2023 between New Delhi and Manila had also called for China to adhere to the rules-based maritime order and acknowledge the International Court of Justice ruling of 2016 in favour of Manila.

    Why in the news?

    In March 2024, India’s External Affairs Minister, S. Jaishankar, articulated, in a joint statement during his visit to Manila, India’s full support for the Philippines in upholding its national sovereignty. 

    India’s complex ties with China

    • India’s evolving position in South China Sea : India’s evolving position on the South China Sea is closely tied to its complex relationship with China, which includes long-standing border disputes.
    • Border Disputes: India and China have a history of border disputes, which intensified following the Galwan Valley incident of 2020. China’s periodic incursions into Indian territory and renaming of Indian villages in Arunachal Pradesh have further strained relations.
    • Response to the Galwan Valley incident: India demonstrated its capability for asymmetric deterrence by sending a frontline warship to the South China Sea.
    • Disruptive Implications: China’s assertive posture and territorial claims in the South China Sea and along India’s land border have significant implications for regional stability.
    • Strategic Engagements: India has increased its strategic engagements, including regular naval exercises and military cooperation with Southeast Asian nations, to underline its commitment to regional security and counter China’s assertive actions.

    The policy evolution from India’s Look East Policy to Act East Policy:

    • Initially the Look East Policy: The Look East Policy initially emphasized economic integration with Southeast Asia and securing energy resources for India’s growing economy.
    • Economic Stakes: Indian state-owned enterprises, such as ONGC Videsh, engaged in oil and gas exploration projects in Vietnam’s exclusive economic zones, indicating India’s economic interests in the region.
    • Support for International Law: India’s involvement in maritime resource exploration projects underscored its support for the freedom of exploration and exploitation within the bounds of international law, particularly UNCLOS.
    • Shift to Act East Policy: Under Prime Minister Narendra Modi’s administration, there has been a strategic shift towards the Act East Policy, marking a more active and strategic engagement with the Indo-Pacific region.
    • Geopolitical Acknowledgment: The policy evolution reflects India’s recognition of the changing geopolitical landscape and the necessity for a proactive and multifaceted foreign policy approach.
    • Expanded Focus: The Act East Policy emphasizes not only economic integration but also strategic partnerships and increased security cooperation with Indo-Pacific countries like Vietnam, Malaysia, Singapore, and the Philippines.
    • Capacity Strengthening: India has bolstered its capacities through forward positioning, mission-based deployments, reinforced maritime domain awareness, and the development of deep-water maritime facilities.

    The role of ASEAN in the South China sea:

    • Central Involvement: ASEAN countries, along with China, are primarily involved in the disputes in the South China Sea, making ASEAN a central player in the region’s dynamics.
    • Importance of ASEAN Centrality: India’s Indo-Pacific strategy emphasizes the centrality of ASEAN, recognizing the importance of ASEAN’s position and cooperation in addressing challenges in the South China Sea.
    • Imperative for India to support ASEAN’s position: Despite its centrality, differences within ASEAN pose challenges to concerted efforts to address issues related to the South China Sea, making it imperative for India to support and strengthen ASEAN’s position.

    Conclusion: India should support the Philippines in upholding sovereignty. Strengthen strategic engagements and military cooperation with Southeast Asian nations. Advocate for a rules-based order in the South China Sea, emphasizing ASEAN centrality and regional stability.

  • A world in disarray, a concern about the future

    Why in the news? 

    Factors such as the lack of globally influential leaders, evolving alliances, economic challenges, and advancements in technology contribute to the current geopolitical landscape.

    Factors behind the concerning current geopolitical landscape

    Growing chaos, an absent leadership

    • Decline of the rules-based international order: The traditional Western-led global order is perceived as dead, leading to increased geopolitical disarray.
    • Rise of new alliance patterns: With the weakening of the West and the ascent of China, new alliances have emerged, but none possess enough strength to maintain global peace.
    • Lack of influential leaders: Leaders like Xi Jinping, Vladimir Putin, and Joe Biden are seen as lacking the ability to sustain peace globally, with many other Western leaders deemed inadequate for the task.
    • Potential for conflict escalation: While shooting wars are limited to certain regions like Ukraine and Gaza, there’s concern about the absence of leaders capable of resolving conflicts peacefully.
    • Stalemate in Ukraine: The situation in Ukraine remains deadlocked, with leaders unwilling to compromise, raising concerns about the possibility of the use of battlefield nuclear weapons.
    • Escalating tensions in West Asia: Israel’s actions, described as those of a “wounded tiger,” are leading to increased casualties in Gaza, while Iran poses a direct threat to Israel, potentially leading to a broader conflict with dire implications.
    • Potential leadership shift in militant Jihadism: There are indications that a resurgent Iran could take over the leadership of militant Jihadism against the West and other perceived “infidels,” further complicating the geopolitical landscape.

    A new set of alliances

    • Great power rivalry appears diminished: The rivalry between the U.S. and China is described as a “shadow play” with little significance beyond proxy conflicts.
    • U.S. setbacks and diminished superpower status: The U.S. is perceived as grappling with hubris following setbacks since Afghanistan in 2020, which has diminished its status as a superpower.
    • Europe’s reliance on NATO and limited influence: Europe’s reliance on NATO for protection from Russia has not translated into significant influence in conflicts like Ukraine, despite significant costs.
    • Emerging China-Russia-Iran axis: The alliance between China, Russia, and Iran poses a challenge to U.S. and Western influence in West Asia, raising questions about their tactics in the region.

    Economic challenges

    • Geopolitics of oil: The China-Russia-Iran axis signals a significant shift in the politics of oil, which is likely to have far-reaching consequences for global stability.
    • Diminished effectiveness of sanctions: Sanctions are seen as losing their impact in the face of changing geopolitical dynamics, potentially leading to a major economic slowdown.

    Advancements in technology 

    • Technology as a disruptor: National security efforts are increasingly focused on protecting vital technologies, with artificial intelligence emerging as a major disruptor in conventional warfare.
    • Rise of smaller nations leveraging AI: Smaller nations are leveraging artificial intelligence to challenge the military dominance of larger powers like the U.S. and China, potentially leveling the playing field.
    • Impact of ISR revolution in warfare: The military intelligence, surveillance, and reconnaissance (ISR) revolution, enabled by drones, aircraft, and space assets, is transforming the battlefield, posing new challenges for military strategies.
    • Nuclear arms race and arms control fraying: Arms control agreements are deteriorating, leading to the development of new nuclear warheads and cruise missiles, raising concerns about a nuclear makeover and potential use of nuclear weapons.

    Conclusion: The breakdown of the rules-based order, inadequate leadership, and the formation of volatile alliances contribute to geopolitical turmoil. Need of robust leadership and coherent strategiesto avoid the conflict escalation in the world.

    Mains PYQ 

    Q (UPSC IAS/2022) (a): Russia and Ukraine war has been going on for the last seven months. Different countries have taken independent stands and actions keeping in view their own national interests. We are all aware that war has its own impact on the different aspects of society, including human tragedy. What are those ethical issues that are crucial to be considered while launching the war and its continuation so far? lllustrate with justification the ethical issues involved in the given state of affairs.

    (b): Write short notes on the following in 30 words each:

    (i) Constitutional morality

    (ii) Conflict of interest

    (iii) Probity in public life

    (iv) Challanges of digitalization

    (v) Devotion to duty

  • Where India’s trade with Israel and Iran stands, and whether regional tensions could impact it

    Why in the news? 

    Iran’s attack on Israel earlier this week has sparked tensions in the Middle East and beyond. India, which has friendly ties with both the countries, has expressed “serious concerns” about escalation of hostilities.

    India-Israel trade has doubled in the last five years

    • India established diplomatic relations with Israel in 1992. Since then, trade between two countries has been rising significantly, from around $200 million in 1992 (comprising primarily of diamonds), to $10.7 billion (excluding defence) in the Financial Year 2022-23.

    What are the main components of India’s trade with Israel?

    • Based on India’s 8-digit Harmonized System code, under which trade items are classified, the most valued items exported by India to Israel included diesel, diamonds, aviation turbine fuel, radar apparatus, Basmati rice, T-shirts, and wheat.

    Value of India-Iran trade came down in the last five years

    • India’s trade with Iran has seen a contraction in recent years, before an uptick in the FY 2022-23. It increased by 21.77 per cent — from $1.94 billion in 2021-22 to $2.33 billion in 2022-23.

    Israel and Iran do not have significant FDI in India

    • Israel’s FDI in India: Israel’s contribution to Foreign Direct Investment (FDI) in India is relatively low, accounting for just 0.4% of the total FDI inflows between April 2000 and December 2023. FDI from Israel to India amounted to $288 million during this period.
    • Indian Investment in Israel: Conversely, Indian firms have invested more in Israel, with cumulative Overseas Direct Investment (ODI) reaching around US$ 383 million from April 2000 to May 2023.
    • India’s Investment in Iran: India is involved in developing the first phase of the Shahid Beheshti Port at Chabahar in Iran. This initiative aims to enhance India’s connectivity and trade relations with the Middle East and Central Asia.

    How could Middle East tensions impact the Indian economy?

    • Impact on Trade Routes: Tensions in the Middle East, particularly in the Red Sea region, could disrupt crucial trade routes connecting Europe and Asia. Roughly 12 percent of global trade depends on this route, potentially affecting India’s trade.
    • Shipping Disruptions: Yemen-based militants, known as the Houthis, have targeted ships passing through the Red Sea since November 2023, leading to shipping disruptions. This could exacerbate India’s trade problems.
    • Stability Concerns in West Asia: The conflict between Iran and Israel adds to the instability in West Asia, potentially delaying projects like the Middle East-Europe Economic Corridor (IMEC).
    • Impact on Petroleum Prices: While the ongoing conflict may not significantly disrupt crude oil and gas production, shipping disruptions in the Red Sea could lead to higher oil and gas prices. However, the impact on Indian consumers may be minimal as the government could offset price increases by reducing taxes.

    Conclusion: India’s friendly ties with both Israel and Iran provide an opportunity for diplomatic engagement to mitigate the escalation of hostilities in the region. By actively participating in diplomatic efforts to de-escalate tensions and promote dialogue, India can contribute to regional stability and safeguard its economic interests.

    Mains PYQ 

    Q There arose a serious challenge to the Democratic State System between the two World Wars.” Evaluate the statement. (UPSC IAS/2021)

  • [pib] World Future Energy Summit 2024

    Why in the news?

    A panel discussion on “Future Growth Opportunities for Long Duration Energy Storage” was held at the World Future Energy Summit 2024 in Abu Dhabi.

    About World Future Energy Summit (WFES)

    • The WFES is an annual event held in Abu Dhabi; hosted in the United Arab Emirates, aiming to advance future energy, energy efficiency, and clean technologies.
    • It began in 2008, held under the patronage of Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi.
    • Public relations firm Edelman helped set it up to “burnish the UEA’s green credentials“.
    • It was established as a platform to address the growing need for renewable energy solutions and sustainable development in response to global energy challenges.

    Key Initiative: Young Future Energy Leaders

    • The Young Future Energy Leaders (YFEL) is an element of the annual World Future Energy Summit (WFES).
    • A program of the Masdar Institute, it is committed to raising awareness and engaging students and young professionals in the fields of renewable energy and sustainability.

    PYQ:

    [2014] Which of the following organizations brings out the publication known as ‘World Economic Outlook’?

    (a) International Monetary Fund

    (b) United Nations Development Programme

    (c) World Economic Forum

    (d) World Bank

  • UN Permanent Forum on Indigenous Issues (UNPFII)

    Why in the News?

    • The 23rd session of the UN Permanent Forum on Indigenous Issues, commenced on April 15 in New York.
      • It focuses on the pressing need to accelerate the recognition and protection of Indigenous Territories (ITs) worldwide.

    About UN Permanent Forum on Indigenous Issues (UNPFII):

    Details
    What is it?
    • One of three UN bodies mandated to deal specifically with indigenous peoples’ issues.
    • Others are-
    1. Expert Mechanism on the Rights of Indigenous Peoples and
    2. Special Rapporteur Rights of Indigenous Peoples.
    Formation 28 July 2000
    Headquarters New York, USA
    Parent Organization United Nations Economic and Social Council (ECOSOC)
    Membership
    • 16 independent experts serving three-year terms, with eight nominated by member governments and eight directly nominated by indigenous organizations
    • Countries: Finland, Nepal, Chad, Australia, Colombia, Bolivia, United States, Russia, China, Ecuador, Burundi, Denmark, Mexico, Namibia, Estonia, and one additional rotating seat
    Mandate
    • Provide expert advice and recommendations on indigenous issues to the Council, UN programs, funds, and agencies through ECOSOC.
    • Raise awareness and promote integration of indigenous issues within the UN system.
    • Prepare and disseminate information on indigenous issues.
    Secretariat
    • Established by General Assembly in 2002.
    • Based in New York within Division for Inclusive Social Development (DISD) of UN Department of Economic and Social Affairs (DESA)

     

    PYQ:

    [UPSC CSE 2009] With reference to the United Nations, consider the following statements:

    1. The Economic and Social Council (ECOSOC) of UN consists of 24 member States.
    2. It is elected by a 2/3rd majority of the General Assembly for a 3-year term.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • Explained: A short history of Iran-Israel ties and why they soured after 1979

    Why in the news? 

    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.

  • India Initiates Review of Asean Trade Pact to Boost Domestic Manufacturing

    Why in the news?

    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. 

     

  • [12 April 2024] The Hindu Op-ed: In poll season, the perils of scorching bilateral ties

    [12 April 2024] The Hindu Op-ed: In poll season, the perils of scorching bilateral ties

    Mains PYQ Relevance: 

    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.

    Source: https://www.thehindu.com/opinion/lead/in-poll-season-the-perils-of-scorching-bilateral-ties/article68054471.ece

  • ADB raises India’s GDP growth forecast for FY25 to 7% from 6.7% earlier

    Why in the News?

    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)

  • [11 April 2024] The Hindu Op-ed: Katchatheevu demands thinking outside the box

    [11 April 2024] The Hindu Op-ed: Katchatheevu demands thinking outside the box

    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, and religious 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. 

    https://www.thehindu.com/opinion/lead/katchatheevu-demands-thinking-outside-the-box/article68051227.ece