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Subject: International Relations

  • India-Saudi Arabia Relations

    What’s the news?

    • Crown Prince Mohammed bin Salman’s India visit showcased a significant infrastructure project linking India to Europe. It also bolstered economic, energy, and defense cooperation through crucial agreements, underscoring his influential role in shaping the India-Saudi Arabia relationship.

    Central idea

    • During his New Delhi visit, Prince Mohammed’s announcement of the India-Middle East-Europe Economic Corridor, challenging China’s Belt and Road Initiative, marked a significant milestone in bilateral ties. His extended stay for a state visit and the inaugural India-Saudi Arabia Strategic Partnership Council meeting underscored the relationship’s growing significance.

    Historical Foundations

    • Diplomatic relations between India and Saudi Arabia date back to 1947, reflecting centuries of socio-cultural and economic ties.
    • The watershed moment in their relationship occurred during King Abdullah’s visit to India in 200, which led to the Delhi Declaration.
    • Subsequently, the Riyadh Declaration in 2010 elevated their ties to a strategic partnership. Prime Minister Modi’s visit to Riyadh in 2016 marked enhanced cooperation in various domains, highlighted by the conferment of Saudi Arabia’s highest civilian honor upon him.

    Economic Ties: Driving India-Saudi Arabia Relations

    • Bilateral Trade:
    • In the fiscal year 2022–23, India and Saudi Arabia recorded a remarkable bilateral trade value of $52.76 billion, underscoring the depth of their economic engagement.
    • This bilateral trade figure accounted for 4.53% of India’s total trade during the same period, reflecting the significance of Saudi Arabia as a trade partner.
    • Investments in Saudi Arabia:
    • As of January 2022, a total of 2,783 Indian companies had registered as joint ventures or 100% owned entities in Saudi Arabia.
    • These investments collectively amounted to approximately $2 billion, showcasing the strong presence of Indian corporate giants such as L&T, Tata, Wipro, TCS, TCIL, and Shapoorji Pallonji in the Saudi market.
    • Saudi Investments in India:
    • Saudi Arabia reciprocates India’s economic overtures with substantial investments in various sectors.
    • Notable Saudi investors in India include Aramco, SABIC, Zamil, e-holidays, and the Al Batterjee Group, with a cumulative investment reaching $3.15 billion as of March 2022.
    • Saudi Public Investment Fund (PIF):
    • The Saudi Public Investment Fund (PIF) has emerged as a pivotal player in strengthening economic ties between the two nations.
    • PIF has strategically invested in several Indian startups, including Delhivery, FirstCry, Grofers, Ola, OYO, Paytm, and PolicyBazaar, through the SoftBank Vision Fund.
    • In June 2020, PIF announced a substantial investment of $1.49 billion (equating to a 2.32% stake) in Reliance Industries’ Jio Platforms, followed by a $1.3 billion investment (2.04% stake) in Reliance Retail Ventures Ltd. in November 2020.
    • PIF’s interest in the Indian market extends to the agriculture and food sectors, with the acquisition of a 29.91% stake in Daawat Foods Ltd. in May 2020, with an investment of $17.23 million.
    • West Coast Refinery and Petrochemicals Project:
    • Among the most significant proposed investments is the $44 billion West Coast Refinery and Petrochemicals Project in Maharashtra.
    • This mega project is a collaborative effort between Saudi Aramco, Abu Dhabi National Oil Company, and an Indian consortium comprising Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation.

    Energy Cooperation: India’s Vital Link with Saudi Arabia

    • Crude Oil Supply:
    • Saudi Arabia stood as India’s third-largest source of crude oil and petroleum products in FY23.
    • India imported a substantial 39.5 million metric tonnes (MMT) of crude oil from Saudi Arabia during the fiscal year, constituting a significant 16.7% of India’s total crude oil imports.
    • LPG Imports:
    • Liquid petroleum gas (LPG) is a vital component of India’s energy mix, and Saudi Arabia contributes significantly to this sector.
    • India imported 7.85 MMT of LPG from Saudi Arabia in FY23, accounting for a noteworthy 11.2% of India’s total petroleum product imports during the same period.

    Defence Partnership: Strengthening India-Saudi Arabia Security Ties

    • High-Level Visits:
    • A pivotal moment in the strengthening of defence ties was the landmark visit of General Manoj Mukund Naravane, the then Chief of the Indian Army, to Saudi Arabia in December 2020.
    • This visit underscored the commitment of both nations to enhancing their defence cooperation.
    • Naval Cooperation:
    • India and Saudi Arabia have forged extensive naval cooperation, as exemplified by the initiation of the bilateral naval exercise Al Mohed al Hindi.
    • Two editions of this exercise have already been successfully conducted, further cementing their maritime partnership.
    • Defence Industries and Capacity-Building:
    • Both countries have actively engaged in cooperation in the realm of defence industries and capacity-building.
    • This signifies their shared interest in fostering self-reliance and enhancing their defence capabilities.
    • Joint Development and Production:
    • The joint statement issued during Crown Prince Mohammed bin Salman’s visit emphasized the deepening of defence cooperation and expressed mutual interest in exploring avenues for joint development and production of defence equipment.

    Indians in Saudi Arabia: A Strong and Respected Community

    • A Living Bridge: Comprising more than 2.4 million individuals, this community is not only an essential part of Saudi society but also serves as a living bridge connecting India and Saudi Arabia.
    • Contributions to Development:
    • The Indian diaspora in Saudi Arabia plays an active and constructive role in the nation’s progress and development.
    • Members of this community are engaged in various sectors, including construction, healthcare, education, and services, contributing their expertise and labor to the kingdom’s advancement.
    • Humanitarian Assistance:
    • The joint statement issued during high-level visits and diplomatic interactions highlights the strong bond between India and Saudi Arabia. It acknowledges Saudi Arabia’s commitment to taking excellent care of the Indian diaspora, as exemplified by their support during critical situations.
    • In particular, Saudi Arabia’s assistance in the evacuation of Indian nationals stranded in Sudan through Jeddah under Operation Kaveri is a testament to the collaborative spirit and humanitarian approach of both nations.
    • Facilitating Religious Pilgrimage:
    • Saudi Arabia plays a crucial role in facilitating religious pilgrimages for Indian citizens.
    • The support provided to Indian Hajj and Umrah pilgrims underscores the kingdom’s commitment to ensuring a smooth and spiritually fulfilling journey for Indian Muslims.

    The Importance of Mohammed bin Salman

    • Vision 2030 and Domestic Reforms:
    • MBS has introduced Vision 2030, a transformative plan aimed at modernizing Saudi Arabia’s economy and society.
    • Notable reforms include granting women the right to drive, opening cinemas, welcoming tourists, and diversifying the economy away from oil.
    • Economic Transformation:
    • Under Vision 2030, MBS has spearheaded efforts to attract foreign investments, boost non-oil sectors, and create jobs.
    • The plan has led to substantial investments in technology, entertainment, and tourism.
    • Regional Diplomacy:
    • MBS has pursued an active foreign policy to enhance Saudi Arabia’s regional influence and stability.
    • This includes initiatives to reconcile with regional adversaries like Iran and engage with Israel.
    • Strengthened Global Ties:
    • MBS has worked to bolster Saudi Arabia’s relationships with global powers, including the United States, India, and China.
    • These partnerships encompass economic collaborations, strategic alliances, and military cooperation.
    • Controversies and Criticisms:
    • MBS has faced criticism and controversy, notably concerning human rights issues and the Jamal Khashoggi case.
    • These events have affected Saudi Arabia’s international image and diplomatic relations.

    Conclusion

    • The India-Saudi Arabia partnership is poised for further growth, fueled by economic, energy, defence, and cultural ties. As Crown Prince Mohammed bin Salman continues to navigate the global stage, India is actively engaging with Saudi Arabia to bolster this pragmatic partnership for mutual benefit and regional stability.

  • Disentangling the 2030 global renewable energy target

    What’s the news?

    • The 28th Conference of Parties (COP28) of the UNFCCC is scheduled to take place in Dubai from November 30 to December 12.

    Central idea

    • The upcoming COP28 of the UNFCCC has put forth a bold proposal to triple global renewable energy capacity by 2030. This aspiration is echoed in the G-20 declaration, albeit in a less committed manner. While the idea of such a target is appealing, a deeper examination raises significant concerns.

    Current State of Renewable Energy Capacity

    • As of 2021, renewable energy sources (RES) accounted for 39% of the global installed capacity for electricity generation, totaling 3026 gigawatts (GW). However, their contribution to total electricity generation stood at only 28%.
    • Among RES, hydropower constituted over half, with solar and wind energy contributing about 36%.
    • To achieve the goal of tripling renewable energy capacity by 2030, we would need to add approximately 6,000 GW of RES capacity, primarily from solar and wind sources.

    Regional Disparities

    • Electricity demand growth varies significantly among countries at different stages of development.
    • Developing nations like China and India experience rapid electricity demand growth, with annual consumption rates of 6.6% and 6.3%, respectively, between 2010 and 2019.
    • In contrast, the European Union (EU) saw a decline of 0.3%, and the United States experienced minimal 0.12% growth.
    • Only 21% of electricity in the U.S. is sourced from RES, including hydro and biomass. In the EU, 37% of electricity comes from RES.
    • The U.S. would need only about 26 GW of new RE capacity to meet additional demand. Its share of the global tripling target of 6000 GW by 2030 would be a mere 0.4%.
    • In contrast, India would require about 717 GW of RE capacity, constituting a 12% share of the target.

    Challenges in achieving the goal of tripling global renewable energy capacity

    • Timeline for Capacity Addition: Tripling renewable energy (RE) capacity by 2030 presents a significant challenge in terms of the timeline for constructing and operationalizing renewable energy projects.
    • Scale of Electricity Generation: Achieving the target of tripling RE capacity would require generating approximately 13,000 terawatt-hours (TWh) of electricity from renewable sources alone.
    • Global Electricity Demand Growth: Global electricity demand has been growing at an average rate of 2.6% (pre-COVID-19 decade average). Meeting the tripling target implies that renewable energy would need to account for 38% of total global electricity production. Sustaining such growth in renewable energy production in line with demand is a complex task.

    What are the issues with the global RES target?

    • Lack of Transparency in Origin: The origin of the global RES target proposed at COP28 lacks transparency. It appears to draw inspiration from the International Renewable Energy Agency (IRENA), but without clear documentation.
    • Inequitable Regional Distribution: The proposed target, as per the IRENA analysis, suggests that most of the non-RES capacity to be added by 2030 would be in developing regions.
    • Absolute Projections vs. Relative Targets: Absolute projections of installed RES capacity may not align with the growth in energy demand. Relative targets, which are less dependent on demand growth matching expectations, are considered more flexible and robust.
    • Dependency on Non-RES Capacity: Achieving a substantial increase in RES capacity may require corresponding non-RES capacity for grid stability and reliable energy supply.
    • Lack of Viable Storage Options: There is currently a lack of viable storage options at the scale envisioned by ambitious RES targets. Energy storage is essential to ensuring a stable energy supply when renewable sources are not generating electricity.
    • Challenges in Building National Grids: Scaling up RES capacity to such high levels would require extensive national grid development. Finding the necessary resources for these grids is challenging, particularly given the existing difficulties in meeting climate finance targets.
    • Targets for Developed Nations: The most vocal proponents of the global RES target do not have corresponding domestic targets. For instance, while India has committed to ambitious goals internationally, countries like the United States and the European Union lack absolute targets domestically. Their targets are often market signals rather than government-intervened commitments.

    Way forward

    • Transparent Origin of Targets: Ensure transparency in the origin and basis of global renewable energy targets, such as those proposed at COP28. Clearly communicate how and why these targets were formulated.
    • Equitable Distribution of Responsibility: Advocate for an equitable sharing of responsibility among nations. Developed countries should commit to absolute domestic targets that align with their global climate commitments.
    • Relative Targets: Consider using relative targets alongside absolute targets. Relative targets are less dependent on specific demand growth projections, providing greater flexibility.
    • Support for Developing Nations: Provide financial and technical assistance to developing countries to help them meet their renewable energy targets. This includes support for grid development, energy storage, and renewable energy infrastructure.
    • Fossil Fuel Phase-Out: Encourage developed nations to accelerate the phase-out of fossil fuel-based electricity production. This step is vital for reducing carbon emissions and creating space for renewable energy capacity.
    • Investment in Energy Storage: Invest in research, development, and deployment of energy storage solutions at the scale required by ambitious renewable energy targets. Reliable energy storage is essential for grid stability.
    • Climate Finance Commitments: Commit to fulfilling climate finance targets, including the annual $100 billion target, to support climate-related projects across sectors, including renewable energy.
    • Policy Alignment: Align domestic policies with international climate agreements, such as the Paris Agreement. Governments should implement policies that promote renewable energy growth and the phase-out of fossil fuels.

    Conclusion

    • As COP28 approaches, developing nations, especially India, should endorse the global tripling of the RES capacity target only if developed nations commit to absolute, equitable, and commensurate targets domestically. Achieving equity in responsibility is crucial to the success of the global renewable energy transition.

  • Draft UN Cyber Crime Convention

    Central Idea

    • The Union Home Ministry recently reviewed the draft of the UN Cyber Crime Convention.
    • The purpose of this review was to assess the necessary changes in India’s existing systems if the convention is signed and ratified by the country.

    UN Cybercrime Convention (Draft)
    Background
    • Under negotiation, aiming to reshape global criminal laws regarding cross-border access to personal data, surveillance, and international cooperation in cybercrime cases.
    Timeline
    • The convention is scheduled for adoption in January 2024, with member states working towards consensus.
    • A vote may occur if consensus is not reached.
    Content of Zero Draft
    • Zero draft outlines the convention’s scope, provisions, and areas of discussion.
    Focus Areas of Concern 1. Scope of Cybercrimes: The draft narrows the list of cybercrimes but leaves room for expanding the scope through references to other international conventions.

    2. Speech-Related Offenses: While removing certain content-related offenses, it reintroduces them by applying the convention to crimes established under other international conventions.

    3. Surveillance Powers: The draft retains surveillance powers, raising concerns about the lack of consensus on legal safeguards.

    4. Use of Budapest Convention Language: Some provisions in Chapter IV are based on the 2001 Budapest Convention but with weakened safeguards.
    Recommendations
    • Groups advocate for strong safeguards, including the justification for surveillance powers, independent authorization, transparency, and enforcement mechanisms.
    • They propose authorizing international human rights bodies to oversee convention implementation.
    • Ongoing negotiations may lead to changes in the draft text, emphasizing the need to monitor developments regarding human rights and cybersecurity.

     

    Why discuss this?

    • India enacted the Digital Personal Data Protection Act in August, ushering in a framework for personal data protection within the country.
    • This legislation allows personal data to be processed in the interest of India’s sovereignty, integrity, and state security while fulfilling legal obligations.
    • Notably, it also mandates that firms disclose to users the identity of other firms entrusted with their data for processing.
    • However, the Act explicitly exempts firms from disclosing or sharing data in the case of lawful interception of data.

    India’s position on the Convention

    India put forth several key positions:

    1. Deleting Data Transfer Clause: India advocated for the deletion of a clause that encourages state parties to “establish bilateral or multilateral arrangements” to facilitate the transfer of personal data. This underscores India’s emphasis on the sovereignty of its data and its desire to maintain control over cross-border data transfers.
    2. Authorization for Data Transfer: India expressed its agreement with the clause stating that state parties may transfer personal data to a third country or an international organization only with the prior written authorization of the original transferring state party, subject to effective and appropriate safeguards. This reflects India’s commitment to ensuring data security and responsible handling.
    3. Designation of Points of Contact: The draft convention outlines that each state party should designate a point of contact available 24/7 to provide immediate assistance for investigations, prosecutions, or judicial proceedings related to cyber criminal offenses. This demonstrates India’s commitment to effective cooperation in addressing cybercrimes.

  • International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA)

    Central Idea

    • In a global seminar organized by the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) and the Food and Agriculture Organisation (FAO), President of India underscored the importance of safeguarding farmers’ rights.

    About ITPGRFA

    Description
    Objective Conservation and sustainable use of plant genetic resources for food and agriculture.
    Enactment Year 2001
    Key Principles Conservation, Access and Benefit-Sharing, Farmers’ Rights.
    Coverage Multilateral system covering 64 vital crop species.
    Implementation Encourages signatory countries to integrate treaty provisions into national legislation.
    Monitoring Establishes a system for monitoring treaty implementation and reporting.
    Global Impact Contributes to preserving agricultural biodiversity, sustainable agriculture, and equitable access to genetic resources.
    India’s Role India actively participates and supports the treaty, providing rights to farmers for unbranded seeds and registering their varieties, serving as a model for the world.

  • India urges Sri Lanka to fulfill commitments for Tamil aspirations

    tamil

    Central Idea

    • India has expressed its concerns about the slow progress made by Sri Lanka in fulfilling its commitments to address the aspirations of the Tamil community.
    • India’s representative at the UN Human Rights Council in Geneva emphasized the inadequacy of progress.

    Tamil issue in Sri Lanka

    • Violent persecution against the Tamil population erupted in the form of the 1956, 1958, 1977, 1981, and 1983 anti-Tamil pogroms in Sri Lanka.
    • Over 13 years since the end of Sri Lanka’s civil war, in which tens of thousands of civilians were killed and disappeared, survivors continue demanding justice and accountability for war-time crimes.
    • In the post-war years, Sri Lanka’s human rights defenders have frequently flagged concerns over persisting militarisation, especially in the Tamil-majority north and east; repression, and the shrinking space for dissent.

    Why discuss this?

    • Reconciliation and Human Rights: Despite the war’s conclusion, the country still faces challenges in reconciling its ethnic divisions and ensuring the protection of human rights.
    • Economic Crisis: In addition to its unresolved conflict, Sri Lanka has experienced a severe economic crisis that began in the previous year, leaving a significant portion of its population vulnerable. The crisis has led to increased poverty levels and food insecurity for many households.

    UN Human Rights Council’s Concerns

    • Political and Democratic Reforms: The UN Deputy High Commissioner for Human Rights highlighted the delay in implementing political and democratic reforms, even a year after a significant protest movement.
    • Food Insecurity: UNHRC pointed out that approximately 37% of households in Sri Lanka face acute food insecurity, indicating the extent of the economic challenges.
    • Political Participation: Delays in holding local government elections and reconstituting Provincial Councils have limited citizens’ political participation and free expression.
    • Land Acquisition: The UN official raised concerns about escalating tensions in Sri Lanka’s north and east due to land acquisition for military installations, conservation efforts at Hindu or Muslim sites, and forestry protection.

    India’s Position

    • Power Devolution: India reiterated its support for the aspirations of the Tamil community for equality, justice, dignity, and peace.
    • Limited sovereignty: It also emphasized its commitment to the unity, territorial integrity, and sovereignty of Sri Lanka by implementing the 13th Amendment.

    UN Review and Sri Lanka’s Response

    • The UN Human Rights Council is currently reviewing Sri Lanka’s commitments, and there will be no vote on a resolution at this session.
    • While acknowledging Sri Lanka’s initiatives in truth-seeking and reconciliation, the High Commissioner’s report emphasized the need for urgent confidence-building measures for genuine reconciliation and transitional justice.
    • The Sri Lankan government rejected the report and labelled previous Council resolutions as intrusive and polarizing.

    Conclusion

    • India’s call for Sri Lanka to fulfil its commitments to address Tamil aspirations reflects ongoing concerns about the progress of reconciliation and human rights in the country.
    • The economic crisis and delays in political reforms have further complicated the situation, necessitating meaningful actions to promote genuine reconciliation and transitional justice.
    • The review at the UN Human Rights Council serves as an important platform for monitoring Sri Lanka’s efforts in this regard.

  • African Union and the G20: Africa on the high table

    What’s the news?

    • India’s 18th G20 Summit, held under the dynamic leadership of Prime Minister Narendra Modi, made history by admitting the African Union (AU) into the G20.

    Central idea

    • The addition of the African Union as the 21st member brings substantial weight to the G20. It significantly enhances the G20’s global economic and financial governance. With Africa’s representation, the G20 becomes a more inclusive and influential body, covering a vast portion of the world’s population, GDP, and trade.

    Africa’s Stake and Strength

    • Stake in G20 Inclusion:
    • Representation: Africa’s inclusion in the G20 through the African Union (AU) provides the continent with a significant voice and presence in global economic and financial governance.
    • Global Economic Impact: Africa’s inclusion in the G20 is notable because it represents the continent’s growing economic influence. Africa possesses substantial resources, including agricultural land, minerals, metals (including rare earth minerals), and a young workforce.
    • Developmental Challenges: Africa faces numerous developmental challenges, including widespread poverty, conflict, political instability, climate stress, environmental degradation, and socioeconomic devastation from various crises. These challenges underscore the importance of Africa’s participation in the G20 for addressing global public goods (GPGs) and development issues.
    • Strengths Leveraged in the G20:
    • Resource Abundance: Africa’s wealth of natural resources positions it as a significant contributor to G20 discussions on resource utilization, sustainable development, and global economic growth.
    • Economic Integration: Africa’s ongoing economic and political integration, including initiatives like the African Free Trade Area and “Agenda 2063: The Africa We Want,” demonstrate its commitment to becoming an economic powerhouse.
    • Demographic Advantage: Africa’s large and youthful population presents opportunities for future global economic growth and trade partnerships.
    • Alignment with Global Goals: Africa’s role in achieving global goals, particularly the Sustainable Development Goals (SDGs), underscores its importance within the G20 for coordinated efforts to meet these goals.

    Benefits of the AU’s inclusion in the G20

    • Enhanced Representation and Credibility: The AU’s inclusion makes the G20 more representative and enhances its credibility as a global decision-making body.
    • Effective Policy Implementation: AU’s participation is expected to improve the implementation of G20 policies, programs, measures, principles, and initiatives.
    • African Voice and Influence: The AU’s presence provides Africa with a voice, participation, and leadership role at the global high table, enabling African countries to influence the global agenda and priorities.
    • Cooperation and Leveraging Resources: The AU’s inclusion fosters cooperation within the G20 and allows for the mutual leveraging of Africa’s abundant resources for the benefit of all member nations.

    Strategic Benefits for India

    • Deepened Partnerships: India can strengthen its strategic, political, economic, technological, trade, and people-to-people partnerships with African nations. AU’s inclusion provides India with a unique opportunity to foster deeper relationships across various sectors.
    • Regional and Sub-Regional Engagement: India can engage with African countries on both regional and sub-regional levels. This enables India to extend its influence and cooperation beyond individual nations and into larger African regions.
    • Collaboration with Like-Minded Partners: India can collaborate with like-minded partners from the North, such as Japan and the United States, to further its interests in Africa. These partnerships can lead to joint initiatives and investments in the continent.
    • Diplomatic Trust: Prime Minister Modi’s successful efforts to secure the AU’s inclusion in the G20 have earned the trust and gratitude of African nations. This trust can translate into diplomatic goodwill and cooperation on various global issues.
    • A Counterbalance: The AU’s presence in the G20 can serve as a counterbalance to China’s efforts to influence African countries, especially in matters related to UN Security Council reform. India’s alignment with African interests can bolster its position.
    • Economic Opportunities: Africa’s economic growth and integration present opportunities for Indian businesses to invest and trade in the region. India can leverage its participation in the G20 to facilitate economic engagement with African partners.
    • Global Influence: By actively engaging with African nations within the G20, India can enhance its global influence and stature as a country that promotes inclusive development and cooperation.

    G20’s global mission

    • Conclusion Global Economic and Financial System: The G20 plays a pivotal role in shaping the global economic, financial, and monetary system. It strives to establish a framework that is fair and adheres to established rules and principles.
    • Providing Global Public Goods (GPGs): The G20 is committed to providing global public goods, which can encompass shared resources, technologies, and knowledge that benefit all nations. These may include international tax packages and initiatives in areas like digital health.
    • Addressing Global Public Bads (GPBs): Beyond providing public goods, the G20 addresses global public bads—issues and threats that transcend national borders. This involves taking concerted actions against challenges such as money laundering, counterterrorism financing, and other transnational risks.
    • Supporting Developing Countries:
    • A significant aspect of the G20’s mission is to create a level playing field for developing countries. It involves taking affirmative measures to assist those nations facing the most significant challenges.
    • Key areas of focus include reforming Multilateral Development Banks (MDBs), providing stimulus for achieving the Sustainable Development Goals (SDGs), financing initiatives related to green development and climate transition, issuing Special Drawing Rights (SDRs) during crises, and addressing food security and supply chain disruptions.

    Conclusion

    • Admitting the African Union into the G20 during India’s presidency is a historic achievement that enhances the G20’s credibility and inclusivity. AU’s inclusion adds a valuable perspective to the G20’s discussions and decisions, making it a more powerful and representative body on the world stage.

     

  • India-Middle East-Europe Economic Corridor

    economic corridor

    Central Idea

    • PM’s recent announcement at the G20 Leaders’ Summit regarding the India-Middle East-Europe Economic Corridor signifies an ambitious project aimed at enhancing physical and digital connectivity across a vast expanse of the Eurasian subcontinent.

    India-Middle East-Europe Economic Corridor

    • The India-Middle East-Europe Economic Corridor aims to establish connectivity across India, West Asia, and Europe, leveraging railway networks and shipping routes.
    • The project was jointly unveiled by PM Modi, US President Biden, Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud, and European Commission President Ursula von der Leyen during the G20 Summit in New Delhi.

    Key Highlights of the project

    • Scope and Ideology: This initiative, championed by the US and India, encompasses connectivity and infrastructure spanning India, Saudi Arabia, the UAE, Jordan, Israel, and the European Union. It is hailed as a sustainable alternative to existing global connectivity initiatives.
    • Extension to PGII: Additionally, it is part of the broader Partnership for Global Infrastructure Investment (PGII), introduced by G7 countries to provide a sustainable alternative to BRI and address global infrastructure needs.
    • Congestion Mitigation: The corridor may potentially bypass the congested Suez Canal, offering a more efficient route for cargo ships.
    • Trade and Economic Integration: The Memorandum of Understanding (MoU) signed by India, the US, UAE, Saudi Arabia, France, Germany, Italy, and the European Union Commission underscores the project’s commitment to enhancing connectivity, logistics, clean energy production, and economic cooperation.
    • Historical Significance: European Commission chief Ursula von der Leyen described the corridor as “historic” and expressed enthusiasm about its potential.

    Need for such project

    • Transformative Infrastructure: The project envisions a railway line across the Arabian Peninsula, with rail and shipping connectivity between India and Europe. Future expansions could include energy pipelines and optical fiber links.
    • Geopolitical Shifts: This initiative reflects emerging geopolitical trends, including India-US collaboration in the Middle East, breaking Pakistan’s veto, and evolving relations with Iran.
    • Deepening Arabian Engagement: The corridor provides an opportunity to strengthen India’s strategic ties with the Arabian Peninsula, notably with the United Arab Emirates and Saudi Arabia.
    • Historical Perspective: India’s historical role as a connector between Arabia and Europe is revitalized through this project.
    • Promoting Intra-regional Connectivity: The corridor aims to reduce tensions in the Arabian peninsula by fostering intra-regional connectivity, contributing to the concept of “Infrastructure for peace.”
    • Alternative to BRI: Positioned as an alternative to China’s BRI, the corridor’s success will depend on implementation speed and sustainability, both financial and ecological.
    • European Engagement: European Union’s involvement in the project makes it a major stakeholder, enhancing India’s integration with Arabia and Europe.
    • Trans-African Corridor: India’s growing engagement with Africa aligns with US and EU plans to create a Trans-African corridor, opening avenues for future collaboration.

    Challenges and Uncertainties

    • Official timelines for project completion and details regarding funding remain undisclosed.
    • Clarity on the project’s alignment and the use of existing railway and port infrastructure in West Asia is awaited.

    Global Implications

    • The initiative aligns with US-led efforts to scale the Partnership for Global Infrastructure Investment (PGII) and address infrastructure financing needs in low- and middle-income countries.
    • The project presents an alternative to China’s Belt and Road Initiative and could significantly strengthen connectivity between India and the Middle East.

  • G-20 Summit clinches New Delhi Declaration

    new delhi declaration

    Central Idea

    • At the G20 Summit in New Delhi, leaders from member countries reached a consensus and adopted the New Delhi Declaration.
    • This declaration outlines significant commitments and agreements on various global issues.

    Here are the key points from the G20 New Delhi Leaders’ Declaration:

    [1] War in Ukraine

    • Peaceful Resolution: The G20 countries emphasize the importance of peace and call on all states to uphold the principles of international law, including territorial integrity and sovereignty.
    • Humanitarian Concerns: The declaration expresses deep concern about the human suffering and adverse impacts of wars and conflicts worldwide, specifically addressing the war in Ukraine.
    • UN Charter Principles: It emphasizes that all states must act in accordance with the Purposes and Principles of the UN Charter, refraining from the threat or use of force to seek territorial acquisition.
    • Nuclear Disarmament: The use or threat of use of nuclear weapons is deemed inadmissible.

    [2] Countering Terrorism and Money Laundering

    • Condemnation of Terrorism: The G20 condemns terrorism in all its forms, including those rooted in xenophobia, racism, and intolerance or carried out in the name of religion.
    • Holistic Approach: A holistic approach based on international law is advocated to effectively counter terrorism, with an emphasis on strengthening international cooperation to deny terrorist groups safe haven, freedom of operations, and financial support.
    • Illicit Trafficking: Concerns about illicit trafficking and diversion of small arms and light weapons are addressed, with an emphasis on international cooperation among states to combat these phenomena.
    • Financial Action Task Force (FATF): The G20 leaders commit to supporting the resource needs of the FATF and FATF Style Regional Bodies to combat money laundering and terrorist financing.

    [3] Economy & Climate

    • Sustainable Growth: G20 leaders call for strong, sustainable, and inclusive growth in response to the uneven recovery from the pandemic.
    • Climate Action: Trillions of dollars will be required for countries to meet their climate goals and invest in clean energy technologies.
    • Reforming Financial Institutions: Reforms of international financial institutions are urged, along with efforts to manage debt vulnerabilities in low and middle-income countries.
    • Crypto Asset Taxation: The exchange of tax-relevant information on crypto assets is set to begin by 2027.
    • Energy Transition: The declaration calls for accelerated efforts to phase down unabated coal power and eliminate inefficient fossil fuel subsidies.
    • Financial Stability: Emphasis is placed on the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities, and maintain macroeconomic and financial stability.

    [4] Global Growth

    • Policy Coordination: The G20 leaders reiterate the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities, and maintain macroeconomic and financial stability.
    • Central Banks Commitment: They also stress that central banks remain committed to achieving price stability in line with their respective mandates.
    • Financial Stability Board (FSB): Initiatives by the FSB, Standard Setting Bodies (SSBs), and jurisdictions to examine lessons from recent banking turbulence are welcomed.

    [5] Multilateral Development Banks

    • Enhancing MDBs: G20 leaders emphasize the importance of delivering better, bigger, and more effective multilateral development banks (MDBs).
    • Leveraging Private Capital: Financial institutions are encouraged to leverage private capital through innovative financing models and partnerships for maximum development impact.
    • Capital Adequacy Frameworks (CAFs): The roadmap for implementing the recommendations of the G20 Independent Review of MDBs CAFs is endorsed.

    [6] Cross-border Payments

    • Payment Improvements: The G20 reaffirms its commitment to achieving global targets for faster, cheaper, and more transparent cross-border payments by 2027.
    • CBDC Discussion: Discussions on the potential macro-financial implications of Central Bank Digital Currencies (CBDCs) are welcomed, especially concerning cross-border payments and the international monetary and financial system.

    [7] Education

    • Digital Education: The G20 recognizes the importance of investing in human capital development and supporting digital technologies to bridge educational divides.
    • Scientific Collaboration: The promotion of open, equitable, and secure scientific collaboration and mobility of students, scholars, researchers, and scientists is encouraged.
    • Inclusive Education: Emphasis is placed on inclusive, equitable, high-quality education and skills training, with foundational learning as a primary building block.

    [8] Agriculture

    • Trade Facilitation: Rising commodity prices contributing to cost of living pressures are addressed.
    • Rules-Based Trade: The G20 leaders commit to facilitating open, fair, predictable, and rules-based trade in agriculture, food, and fertilizers, in line with relevant WTO rules.
    • Food Security: Support for developing countries’ efforts to address food security challenges is emphasized, aligning with the G20 Deccan High-Level Principles on Food Security and Nutrition 2023.

    [9] Religion

    • Religious Tolerance: The G20 strongly condemns acts of religious hatred against individuals, religious symbols, and holy books.
    • Cultural Diversity: Emphasis is placed on promoting respect for religious and cultural diversity, dialogue, and tolerance.
    • Rights Interdependence: The interdependence of freedom of religion or belief, freedom of opinion or expression, peaceful assembly, and freedom of association is recognized as a means to combat intolerance and discrimination based on religion or belief.

    [10] Corruption

    • Zero Tolerance: The G20 reaffirms its commitment to zero tolerance for corruption.
    • International Cooperation: Strengthening international cooperation and information sharing for combating corruption is urged.
    • Asset Recovery: The joint Declaration also called for strengthening asset recovery mechanisms for combating corruption.

    Conclusion

    • In essence, the New Delhi Declaration serves as a testament to the collaborative efforts of G20 member countries in addressing global challenges and striving for a more prosperous, peaceful, and sustainable world.

  • How India made G20 a forum for developing countries

    Central idea

    • The G20 summit attracted attention as it started with a clear consensus to invite the African Union (AU) as its member. India’s initiative to include African Union in G20 was unanimously accepted. This was a unique reordering of the global high table.

    India’s efforts for inclusion of the African Union

    • India’s big bet: Of the AU’s 55 members, 54 are in the United Nations. Only one African country, South Africa, has been an original member of the G20. No presidency has ever risked amending the membership for fear of competing rivalries.
    • Global platform for Africa: It has been India’s case that not only must the G20 reflect the priorities of the Global South but must also include those who are underrepresented, particularly from Africa.
    • Inviting major African countries: The AU has double the number of countries as the EU. The AU has been invited to G20 meetings, and some presidencies have held African outreach events in a manner of telling them what is good for them. It is India that has actually taken the initiative of talking with them rather than at them.

    Importance of AU

    • Africa as the road to the global south: India aspires to bring the global south to the center of the G20 agenda. The elevation of the AU is courageous; no presidency has attempted to alter the composition for fear of claims from other regional organizations.
    • Branding itself using Africa: The AU fits in with the rebranding of the G20 that India undertook. This is India’s harambee (Swahili word for co-operation) factor—the spirit of developmental cooperation in action.
    • AU as a voiceless block: The AU is the largest of regional institutions and the one with a limited voice in most international fora, despite having 54 votes in the United Nations General Assembly.
    • Partner for India at the High Table: The prospects of Africa getting a permanent seat in the UN Security Council remain distant. What India has achieved, as always, is to provide Africa with a voice at the high table.

    India’s engagement with Arican Nations

    • Nigeria: Inviting Nigeria, particularly at this stage, recognizes it as the largest economy in Africa and a consistent friend of India. This is Nigeria’s biggest outing since President Bola Ahmed Tinubu was elected. Nigeria was qualified to be in the BRICS but perhaps did not pursue it hard enough. Nigeria participated with great enthusiasm, with a number of ministers accompanying their president in advance of the G20 Summit.
    • Egypt: Egypt is another African powerhouse, representing North Africa. It is also the current chair of AU-NEPAD, which is a permanent invitee to the G20. Egypt is a recent strategic partner of India. India backed it to join the BRICs. Egypt brings balance to the presence of South Africa and Nigeria.
    • Mauritius: Mauritius is a close friend of India due to its PIO population, its regular engagement with India, and its strategic location in the Indian Ocean.
    • Comoros: Comoros is another Indian Ocean country representing Eastern Africa. With their participation, India ensured two of the four African countries in the Indian Ocean and most of the regions of Africa were represented, making the G20 better balanced.

    Conclusion

    • The African Union is hot bed for great power rivalry between India and China. Even if India cannot match the deep pockets of Chinese investments in Africa, India has shown that it can deliver on the African Interest at global platform.

  • African Union’s Entry into G-20: A Global Diplomatic Shift

    african union

    Central Idea

    • Negotiators confirm the African Union (AU) will join the G-20, mirroring the European Union (EU) as a regional body within the group.
    • India views this development as a significant achievement for the Indian Presidency in advancing the Global South’s interests in the G-20.

    Landmark Diplomatic Shift in G20

    • The AU’s potential entry into the G-20 signals a significant diplomatic shift, expanding the group’s representation and influence.
    • China and Russia, despite differences on other issues, back the AU’s membership, highlighting the broader global dynamics at play.

    What is the African Union?

    • The African Union (AU) is an intergovernmental organization in Africa.
    • It was established in 2002 as a successor to the Organization of African Unity (OAU).
    • It consists of 55 member states in Africa.
    • Its primary objectives include promoting unity, cooperation, and development across the continent.
    • It aims to address social, political, and economic challenges faced by African nations.
    • It promotes peace, security, and stability in Africa.

    History of India-Africa Relations

    (1) Ancient Period:

    • Ancient trade links: Indian merchants traded with the African coast for valuable goods like palm oil, gold, spices, and ivory.
    • Maritime trade network: Trade routes expanded from Egypt to northern Somalia, Punt, Sudan, and Axum, enhancing economic and cultural ties.

    (2) Medieval Era:

    • Indian presence in East Africa: Gujarati and Saurashtrian merchants played a significant role in Africa’s east coast trade, using Indian systems of weights, measures, and currency.
    • Development of internal links: Indian trade contributed to the development of internal connections within Africa, even before European involvement.

    (3) Colonial Period:

    • Impact of European colonialism: Indian presence in Africa changed under European colonial powers.
    • Anti-apartheid struggle: Mahatma Gandhi’s involvement in the anti-apartheid movement in South Africa laid the foundation for India’s solidarity with Africa.
    • Advocacy against apartheid: India actively raised the issue of apartheid in international forums like the UN, NAM, and Commonwealth.

    (4) Post-Colonial Period:

    • Continuation of Afro-Asian solidarity: India’s approach to Africa has been guided by the vision of commerce in ideas and services rather than raw materials.
    • Phases of engagement: From Nehru’s focus on Afro-Asian solidarity to phases of neglect and re-engagement, India’s Africa policy evolved.

    Present Status of Ties

    • Institutionalization of relations: The India-Africa Forum Summit serves as the framework for India-Africa relations under South-South Cooperation.
    • Expanded diplomatic presence: India announced the opening of embassies in 18 African countries, strengthening diplomatic ties.
    • Economic engagement: Bilateral trade between India and Africa has grown significantly, with India becoming Africa’s third-largest trade partner.
    • Investment and development cooperation: Indian investments in Africa have increased, with the country being the seventh-largest investor in the region.
    • Lines of Credit (LoC): India’s concessional LoCs support development projects in Africa, with 182 projects sanctioned, amounting to US$10.5 billion.
    • Bilateral cooperation: Collaboration includes areas such as solar energy, climate change, information technology, maritime security, counter-terrorism, and military training.
    • Soft power projection: India’s ITEC program offers scholarships to African students, and the Indian diaspora contributes to cultural exchange.

    Significance of Africa

    (1) Geostrategic Importance:

    • Proximity to India: Africa’s Horn region is critical for India’s security due to emerging threats like radicalism, piracy, and organized crime.

    (2) Economic Significance:

    • Diversifying energy sources: Africa can help India diversify its energy sources, aligning with the Integrated Energy Policy.
    • Rich resources: Africa possesses valuable minerals, metals, and abundant agricultural land, addressing India’s need for food security and resources.
    • Market and investment opportunities: Africa provides a space for Indian investments and trade expansion, fostering economic cooperation.

    (3) Geopolitical Considerations:

    • Support for UNSC seat: Africa’s support is crucial for India’s aspiration to gain a permanent seat on the UN Security Council.
    • Projection of soft and hard power: India showcases its soft and hard power in Africa, contributing to its global influence.
    • Peacekeeping and capacity building: India actively participates in UN peacekeeping operations and supports capacity building in African countries, strengthening bilateral ties.

    Various Challenges

    • Declining trade and investment: Bilateral trade and Indian investments in Africa have witnessed fluctuations, demanding efforts to enhance economic ties.
    • Short-term focus: LoCs have primarily funded small-scale projects, lacking a broader development perspective.
    • Competition from other powers: India faces competition from other countries like China, Brazil, and Russia, engaging Africa in various sectors.
    • Lack of synchronization: Development instruments like LoCs, grants, and capacity-building initiatives operate independently, lacking coordination.
    • Instances of racial attacks: Incidents of violence against African students in India pose challenges to people-to-people connections.

    Chinese Challenge in Africa

    • China’s extensive investments in Africa have significantly impacted the region across infrastructure, finance, natural resources, and maritime interests.
    • Access to resources, untapped markets, and support for the “One China Policy” drive China’s engagement.

    Strategies for India

    • Develop a focused Africa strategy: India should formulate a comprehensive strategy for the next decade, identifying key areas of cooperation.
    • Focus on capacity building: Investing in human capital is crucial for sustainable development in Africa.
    • Collaborate with civil society organizations and diaspora: Indian organizations and the diaspora can play a vital role in implementing development projects at lower costs.
    • Ensure timely project completion: Efforts should be made to expedite LoC projects, learning from countries with better implementation records.

    Steps taken so far

    • Indian Technical and Economic Cooperation (ITEC) program: India’s ITEC program provides technical assistance to African countries, with around 50% of ITEC slots reserved for Africa.
    • Asia-Africa Growth Corridor: The AAGC, a cooperation agreement between India, Japan, and African countries, aims for inclusive development.
    • Pan African e-Network: The PAeN facilitates tele-education and telemedicine in Africa, contributing to technological advancement.
    • Maritime cooperation: India’s collaboration with African nations in the maritime domain, exemplified by joint exercises, promotes regional security.
    • Peacekeeping operations: India actively participates in UN peacekeeping operations in Africa, supporting African counter-terrorism efforts and capacity building.
    • Duty-free tariff preferential scheme: India’s scheme benefits African nations, and the India-Africa Forum Summit plays a vital role in strengthening ties.
    • India Africa Defence Ministers conclave: Initiatives like this enhance defence cooperation and bilateral relations.

    Way Forward

    • Enhance mutual engagement: Organize the pending fourth India-Africa Forum Summit to further strengthen the relationship.
    • Allocate fresh financial resources: Allocate new resources for grants and concessional loans, prioritizing economic relations.
    • Focus on emerging sectors: Develop collaborations in health, space, and digital technologies to give a 21st-century dimension to the partnership.
    • Continued support in peacekeeping: Sustain India’s contributions to peacekeeping, counter-terrorism, and capacity building in Africa.
    • Improve experiences of Africans in India: Ensure the safety and well-being of Africans studying or working in India, promoting people-to-people connections.
    • Promote development-friendly private investments: Align development cooperation with commercial interests to support mutually beneficial projects.
    • Strengthen international cooperation: Collaborate with international allies to address the China challenge in Africa, emphasizing partnership-based approaches.