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Subject: International Relations

  • What is the Moscow-dominated security pact ‘CSTO’?

    Central idea: Armenia’s PM accused the Moscow-dominated security alliance Collective Security Treaty Organisation (CSTO) of leaving Armenia in the cold amid renewed hostilities with Azerbaijan.

    What did Armenia say?

    • Armenia has repeatedly criticized the CSTO for its failure to protect itself.
    • Russia has maintained a delicate diplomatic balancing act between Armenia and Azerbaijan, avoiding any forceful action.

    What is CSTO?

    • The CSTO is a Russia-led military alliance of seven former Soviet states that was created in 2002.
    • Current CSTO members are Armenia, Belarus, Kazakhstan, Kyrgyzstan, the Russian Federation and Tajikistan. Afghanistan and Serbia hold observer status in the CSTO.
    • Its purpose is to ensure the collective defense of any member that faces external aggression.
    • It has been described by political scientists as the Eurasian counterpart of NATO, which has 29 member states, while the CSTO has just six.

    Outlined functions of CSTO

    • CSTO supports arms sales, manufacturing, and military training and exercises, making the CSTO the most important multilateral defense organization in the former Soviet Union.
    • Beyond mutual defense, the CSTO also coordinates efforts in fighting the illegal circulation of weapons among member states and has developed law enforcement training for its members in pursuit of these aims.

    What does CSTO membership provide?

    • While CSTO membership means that member states are barred from joining other military alliances, limiting, for example, their relationship with NATO.
    • Its members receive discounts, subsidies, and other incentives to buy Russian arms, facilitating military cooperation.
    • Most importantly, membership presumes certain key security assurances – the most significant of which is deterring military aggression by third countries.
    • In the CSTO, aggression against one signatory is perceived as aggression against all.
    • It however remains unclear whether this feature works in practice.

    Armenia’s Concerns and Threats

    • The PM emphasizes the threat of escalation along Armenia’s border and in Nagorno-Karabakh, citing increasingly aggressive rhetoric from Azerbaijan.
    • Tensions between Armenia and Azerbaijan increased in December when Azerbaijani protesters blocked the Lachin corridor, leaving Nagorno-Karabakh residents short of food and basic supplies.

    Nagorno-Karabakh Conflict

    csto

    • Nagorno-Karabakh lies within Azerbaijan but has been under the control of ethnic Armenian forces since a separatist war in 1994.
    • In 2020, Azerbaijani troops routed Armenian forces in six weeks of fighting.
    • They claimed a significant part of Nagorno-Karabakh and nearby areas which had been in Armenian hands for nearly two decades.

    Back2Basics: NATO (North Atlantic Treaty Organization)

    • NATO was established in the aftermath of the Second World War.
    • Its purpose was to secure peace in Europe, to promote cooperation among its members and to guard their freedom – all of this in the context of countering the threat posed at the time by the Soviet Union.
    • It is a military alliance established by the North Atlantic Treaty (also called the Washington Treaty) of April 4, 1949.
    • It sought to create a counterweight to Soviet armies stationed in Central and Eastern Europe after World War II.
    • Its original members were Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States.
    • NATO has spread a web of partners, namely Egypt, Israel, Sweden, Austria, Switzerland and Finland.
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  • Explained: Understanding the Saudi-Iran Reconciliation

    iran

    Central idea: Saudi Arabia and Iran, two of West Asia’s major powers that have been at odds with each other for decades, agreed to restore diplomatic relations last week in an agreement brokered by China.

    Saudi-Iran Ties: A timeline

    • Pre-1979: Saudi Arabia and Iran compete for regional dominance.
    • 1979: Iranian Revolution brings down the monarchy and turns Iran into a Shia theocratic republic.
    • 1980-1988: Iran-Iraq war sees Saudi Arabia support Iraq.
    • 1990-1991: Saudi Arabia supports Iraq against Iran in the Gulf War.
    • 1996: Iranian-backed Hezbollah bombs Saudi military housing complex in Khobar, killing 19 US soldiers.
    • 2011-2015: Saudi Arabia and Iran support opposing sides in the Syrian civil war.
    • 2015: Saudi Arabia launches military intervention in Yemen against Iranian-backed Houthi rebels.
    • January 2016: Saudi Arabia executes prominent Shia cleric Sheikh Nimr al-Nimr, leading to protests in Iran and the burning of the Saudi embassy in Tehran.
    • 2016: Saudi and several Arab allies cut diplomatic ties with Iran.
    • 2019: Saudi oil facilities are attacked, leading to increased tensions between Saudi Arabia and Iran.
    • 2021: Both begin direct talks, brokered by China.
    • March 2023: Both nations announce an agreement to restore diplomatic ties, brokered by China.

    Reasons for hostile relations

    The hostility between Saudi Arabia and Iran has its roots in a complex mix of historical, geopolitical, religious, and ideological factors.

    • Religious contradictions: Historically, the rivalry between the two countries dates back to the seventh century when the Prophet Muhammad died without a clear successor, leading to a dispute over the leadership of the Muslim community. This dispute ultimately resulted in the split between Sunni Islam (which dominates in Saudi Arabia) and Shia Islam (which dominates in Iran).
    • Geopolitical tensions: The two countries are located in a strategically important region, with both seeking to exert influence and maintain dominance in the Middle East. Iran’s Islamic revolution in 1979 posed a challenge to Saudi Arabia’s status as the leading Islamic power in the region, and the two countries have been competing for regional influence ever since.
    • Sectarian tensions: Saudi Arabia and Iran have long had competing visions for the role of Islam in society. Saudi Arabia promotes a strict interpretation of Sunni Islam known as Wahhabism, while Iran supports Shia Islam and the principle of the “Guardianship of the Jurist,” which asserts that a senior Shia cleric should have political power and authority over all Muslims.
    • Ties with west: The two countries have fundamentally different views on a range of issues, including democracy, human rights, and regional security. Saudi Arabia is a conservative monarchy with close ties to the United States, while Iran is an Islamic republic that has been at odds with the West since the 1979 revolution.

    All these factors have contributed to the ongoing hostility between Saudi Arabia and Iran, and the tensions between the two countries continue to have a destabilizing effect on the region.Top of Form

    What are the terms of the agreement?

    • The details of the agreement are yet to be unveiled.
    • Iran has reportedly agreed to prevent further attacks against Saudi Arabia from Houthi-controlled parts of Yemen while Saudi Arabia has agreed to rein in Iran International, a Farsi news channel critical of the Iranian regime.
    • Foreign Ministers of both countries will meet soon to thrash out the terms of the reconciliation before reopening embassies in each other’s capitals in two months.
    • China is planning to host a cross-Gulf conference of Iran and the six Gulf monarchies to further strengthen peace in the region.

    Why did Saudi Arabia reach out to Iran (defying the US)?

    Ans. Iran’s Rise, and Changing Alliances

    • Internal Security: When Saudi oil facilities were attacked in 2019, the US looked away, prompting the Saudis to look for alternative solutions for the Iran problem, such as reaching out to the Iranians.
    • Differences over Palestine: The US was trying to broker a normalization agreement between Saudi Arabia and Israel to bring the two pillars of its West Asia policy together against Iran.
    • US negligence of West Asia: The US deprioritized West Asia due to bigger foreign policy challenges, such as the Russian war in Ukraine and China’s rise in the Indo-Pacific.
    • Obsolesce of ties with US: Relations between Saudi Arabia and the US have been rocky in recent years, as the US is not as dependent on Gulf Arabs as it used to be during the Cold War.
    • Shared opinions over Israel: Saudi Arabia has been hesitant to reconcile with Israel, and its relations with the US have been rocky in recent years.

    What led Iran to accept the deal?

    • Isolation and Domestic pressure: Tehran is aware that getting relief from Western sanctions is not a near-term possibility. Despite crackdown, protests in Iran refuse to die down.
    • Crumbling economy: Iran’s economy is deteriorating and its currency, the rial, is struggling. A deal with Saudi Arabia, under China’s mediation, could open economic lifelines for Iran
    • China factor: Iran wanted Chinese investments and support for the rial. China allowed Iran to withdraw parts of the $20 billion funds frozen with Chinese banks due to US sanctions.
    • Fouling American efforts: Iran knows that such a deal could complicate American efforts to rally Arab countries and Israel against it. A reconciliation with Saudi is beneficial for Iran, at least in a tactical sense.

    Why is China brokering the deal?

    • Securing its oil supplies: China has an interest in promoting stability in the Middle East region, which is a major source of oil and natural gas for China.
    • Side-lining the US: By brokering a deal between Saudi Arabia and Iran, China can position itself as a mediator and gain goodwill from both sides.
    • Create alternative axis: China has longstanding relationships with both countries. The US since Trumps departure is distancing itself from the US, whereas China is also getting closer to Russia amid the war.
    • Image building as a leader: While the US is busy rallying the Western world to arm Ukraine to push back Russia and weaken Moscow through sanctions, China is quietly brokering peace in the Global South.

    US reception of this deal

    • Welcomed the move: The public narrative is that the peace deal would help stabilize the region and benefit the global energy market.

    Key implications for the US

    • Hegemony decline: The US would not like to lose its influence in West Asia even when it is deprioritizing the region.
    • Saudi drifts away: US sees an ally (Saudi Arabia) drifting further away, a rival it wanted to contain (Iran) making new friends, and China spreading and deepening its influence in a region the US has dominated historically.
    • Iran Sanctions going loose: The Iran nuclear deal is practically dead and the US wants Saudi Arabia to normalize ties with Israel and put up a joint front against Iran.

    What inferences can be drawn from all these?

    • Strategic realignments in West Asia: It can be inferred that West Asia is currently undergoing significant strategic realignments, with the UAE normalizing relations with Israel and other Arab countries deepening their partnerships.
    • Shifted US focus on Ukraine and Indo-Pacific: The US, which traditionally held significant power in the region, has deprioritized West Asia due to bigger foreign policy challenges such as Russia’s war in Ukraine and China’s rise in the Indo-Pacific.
    • China occupying power vacuum: This deprioritization has created a power vacuum that has allowed Iran to rise as a challenge, prompting the US to try to bring Israel and the Arab world together against Iran.

     

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  • Iran- Saudi rivalry: China’s role and India’s Concerns

    Saudi

    Central Idea

    • In an unexpected turn of events on March 10, the National Security Advisors of Iran and Saudi Arabia declared, in the presence of Chinese State Councillor Wang Yi in Beijing, that they have come to a mutual understanding to address their issues, and will reopen their embassies within a span of two months.

    Background: Iran- Saudi rivalry

    • Since January 2016, when the Saudi kingdom severed diplomatic ties with Iran after the attack on the former’s embassy in Tehran, the two countries have been engaged in a rivalry for regional geopolitical influence, prolonging conflicts in Yemen and Syria.
    • Only a few months ago, Iran’s top military officials were threatening Saudi Arabia with consequences unless it controlled its Persian-language media outlets zealously covering anti-government protests in Iran. Riyadh had raised alert levels citing a credible threat of attack from Iran.

    Iran’s Strategic Partnership with China

    • Iran considers China its most important strategic partner, and was alarmed when the joint statement issued at the first China-GCC Summit in Riyadh in December 2022 called on Iran to maintain the non-proliferation regime and respect the principles of non-interference in the internal affairs of states.
    • The China-brokered agreement coming a month after Raisi’s visit to Beijing shows how Beijing has successfully leveraged its ties with an Iran struggling with domestic pressure, sanctions, and deteriorating ties with Europe over its military support to Russia.

    The Dialogue Process

    • The Iran-Saudi Security Dialogue: This refers to the ongoing talks between Iran and Saudi Arabia aimed at improving security in the region, particularly in Yemen. These talks were facilitated by then-Iraqi Prime Minister Mustafa Al-Kadhimi in 2021, and have continued in fits and starts since then.
    • Biden Administration’s Conflict Management Measures: The Biden administration has taken steps to end American support for offensive operations in the war in Yemen, including relevant arm sales, as a conflict management measure. This move helped to make Riyadh see the logic of dialogue with Iran.
    • Chinese Role in Brokering the Final Agreement: China has played a key role in brokering the final agreement between Iran and Saudi Arabia. Beijing has adopted a balanced approach of strengthening ties with all players based on common interests and mutual respect rather than geopolitical alignments with specific countries.
    • China’s Growing Regional Engagement: China’s growing regional engagement in the Middle East is driven by its desire to distinguish itself from the US-led interventions in the region. Beijing has supported Gulf countries in setting up multilateral dialogue platforms and taking the initiative in regional issues, including those involving Iran.

    What are India’s concerns?

    • Impact on India’s Energy Security: Any improvement in relations between Iran and Saudi Arabia could impact India’s energy security. India is heavily dependent on oil imports from both countries, and any conflict or tension between them could lead to disruptions in oil supplies and increased prices.
    • Potential for regional destabilization: The rivalry between Iran and Saudi Arabia has fueled conflicts in the Middle East, including the ongoing war in Yemen. Any escalation of tensions between the two countries could lead to further destabilization in the region, which could have implications for India’s security interests.
    • China’s growing influence in the Middle East: China’s role in brokering the agreement between Iran and Saudi Arabia highlights its growing political capital in the region, which could have implications for India’s strategic interests. India has traditionally maintained good relations with both Iran and Saudi Arabia, and any shift in the regional balance of power could impact India’s interests.
    • Impact on India’s Chabahar port project: India has invested heavily in the development of the Chabahar port in Iran as a gateway to Afghanistan and Central Asia. Any improvement in relations between Iran and Saudi Arabia could impact India’s plans for the port, which could have implications for India’s strategic interests in the region.

    Conclusion

    • India will now have to deal with the new reality where China has been able to translate its economic influence in West Asia into diplomatic heft. The agreement between Iran and Saudi Arabia could have positive implications for the region’s stability, but India will need to carefully monitor the evolving dynamics and assess how it can leverage its own relations with Iran, Saudi Arabia, and other regional players to secure its strategic interest.

    Mains Question

    Q. Evaluate China’s growing influence in the Middle East and its impact on India’s traditional ties with Iran and Saudi Arabia.

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  • Ukraine Conflict: Implications And The Danger Of Provoking A World War

    Ukraine

    Central Idea

    • The Ukraine conflict has significant implications for Europe and the world. It has demonstrated that the US is the true defender of Europe and highlighted the fragile state of Europe’s defence industry. The conflict has also given the US confidence to take on all challengers, leading to new ambitions in Western minds. While the conflict has taught several important lessons, the wrong lessons could also be derived, which could prove to be dangerous in the long run.

    What is the Present Situation?

    • While acknowledging the bravery of the Ukrainian people, significant efforts are underway in Europe, including France, Germany, and the United Kingdom, to end the ongoing war.
    • Given that neither side is poised for a decisive victory, it is highly unlikely that Russia will withdraw from the territories it initially occupied.
    • The initial enthusiasm has given way to a sense of exhaustion, and the conflict in Ukraine is increasingly being viewed as a US-backed NATO proxy war against Russia.
    • As a result, European leaders are currently focused on negotiating a ceasefire and ending the conflict rather than prolonging it.

    Implications of the war on Europe

    • Europe’s struggling economy: Despite receiving state-of-the-art weapons from the US, Europe remains at the mercy of NATO and the US due to its fragile defence industry. The prospect of a prolonged war without end is daunting for Europe’s struggling economy.
    • US as the True Defender of Europe: The Ukraine conflict has demonstrated that the US is the true defender of Europe, with the people believing that without the US, Europe would not have come together to support Ukraine.
    • US Confidence and New Ambitions: The US’s success in Europe has fuelled new ambitions and the belief that momentum now lies with them. This could potentially lead to dangerous experimentation, with Ukraine and the war in Europe not being a laboratory for similar experiments elsewhere.
    • The Danger of Overconfidence and Misadventures: US triumphalism could lead to misadventures, as Ukraine and Europe cannot be a bellwether for what might happen in a conflict with China in the Indo-Pacific. China is not Ukraine or Russia, and Asia is not Europe.

    China’s strong Posture

    • China’s Direct and Harsh Language Against the US and Western Countries: China is accusing the US and other Western countries of engaging in the containment, encirclement, and suppression of China. China have openly accused the US of attempting to encircle China through its Indo-Pacific strategy, which they say is an Asia-Pacific version of NATO. China’s language is unusually direct and harsh, leading to concerns that China may be preparing for a direct confrontation with the US.
    • China’s Preparation for All Eventualities: China is preparing for all possible scenarios in response to the current situation. It has warned that no amount of guardrails can prevent derailment if the US continues to speed down the wrong path. China’s efforts are aimed at thwarting US attempts to restore its dominant position in world affairs.
    • Taiwan as the Flashpoint
    • Taiwan remains a flashpoint in the Indo-Pacific region, with tensions further aggravated by the recent visits of top US military leaders to Taiwan. However, newer tensions are also adding to the possibilities of a conflict in other regions in the Indo-Pacific.

    The danger of provoking a world war

    • Starting with a misreading or misunderstanding of the other side’s intentions, all wars can begin.
    • The success of the US in assisting Ukraine to withstand the Russian offensive and undercutting Russia’s image of being a superpower in Europe.
    • The success in Europe and the goal of returning to the post-1945 era may be the impetus for targeting China. This could lead to a direct confrontation with China and have disastrous consequences, possibly leading to a world war.

    Conclusion

    • The US is basking in the glow of its successful intervention in Europe and this could provoke retaliation, leading to the escalation of hostilities in other regions and potentially paving the way for another global conflict. Such an outcome would be a catastrophe of monumental proportions.
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  • Australia’s AUKUS Dilemma: Options and Challenges

    AUKUS

    Central Idea

    • The AUKUS security partnership between the United States, Australia, and the United Kingdom has important implications for Australia’s plans to operate a fleet of nuclear-powered submarines, with potential drawbacks.

    What is AUKUS?

    • Trilateral Partnership: AUKUS is a trilateral security partnership between Australia, the United Kingdom, and the United States, announced on September 15, 2021. The partnership involves cooperation in various areas, including defence and security, technology, and climate change.
    • Indo-Pacific region a primary focus: The AUKUS partnership is primarily focused on the Indo-Pacific region and aims to counter China’s growing influence in the region. As part of the partnership, Australia will acquire nuclear-powered submarines from the United States and the United Kingdom, which is seen as a significant shift in Australia’s defence posture.
    • Promote Peace and stability: The three countries have emphasized that the partnership is not aimed at any specific country and is intended to promote peace and stability in the Indo-Pacific region.

    AUKUS

    Australia’s AUKUS Dilemma

    • AUKUS Pathway Impact: Announcement about optimal pathway for AUKUS has implications for Australia’s plans to operate a fleet of nuclear-powered submarines
    • Opposition from Regional Partners: Regional partners oppose Royal Australian Navy operating nuclear attack submarines, posing a challenge for Australia’s deterrence capabilities against potential adversaries

    What are the Options for Australia’s Nuclear Submarines?

    • Following AUKUS consultations, three main options have emerged,
    1. US builds nuclear-powered attack submarines for Australia
    2. UK expands Astute-class program to Australia
    3. Trilateral effort to develop a new nuclear submarine design

    AUKUS

    What are the Challenges and Complexities for Australia’s Nuclear Submarines

    • US uncertain on Australis’s nuclear subs: US Policymakers are sceptical about building nuclear-powered attack submarines for Australia due to national security concerns
    • UK’s Dreadnought hinders Australia’s submarine expansion: UK’s construction of Dreadnought-class ballistic-missile submarine program and differences between Australian and American fleets pose a challenge for expanding Astute-class program to Australia
    • Nuclear design challenges: Trilateral effort to develop a new nuclear submarine design faces challenges related to U.S. export controls and technology transfer agreement
    • Nuclear tech complex and risky globally: The nuclear technology is complicated under the international system and poses potential proliferation risks.

    AUKUS

    The AUKUS Partnership: Implications for India

    • Increased security cooperation: The partnership between Australia, the United Kingdom, and the United States is likely to lead to increased security cooperation in the Indo-Pacific region. This could help to balance out China’s growing military and economic power in the region and could create opportunities for India to work more closely with these countries on shared security concerns.
    • Potential for technological collaboration: AUKUS includes cooperation in technology and could lead to opportunities for India to collaborate with the three countries in areas such as artificial intelligence, quantum computing, and cybersecurity. This could help to bolster India’s technological capabilities and could lead to new opportunities for trade and investment.
    • Impact on regional dynamics: The announcement of AUKUS could have a significant impact on regional dynamics in the Indo-Pacific, particularly in terms of how other countries in the region respond. India will need to carefully navigate these dynamics and ensure that its own interests are protected.

    Conclusion

    • The AUKUS security partnership has significant implications for Australia’s defence capabilities and strategic positioning in maritime Asia. However, it poses significant challenges and risks. Even with its closest allies, the U.S. faces difficulties transferring technology, highlighting the challenges for India and other countries in acquiring critical technology from the U.S. The AUKUS developments may have broader implications for regional security and nuclear technology.

    Mains Question

    Q. Evaluate the broader implications of the AUKUS developments for regional security and nuclear technology.

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  • Bhutan no longer a ‘Least Developed Country’

    bhutan

    Central idea: Bhutan will become the seventh country to graduate from the United Nations’ list of Least Developed Countries (LDC) on December 13, 2023.

    What is a Least Developed Country (LDC)?

    • The LDCs are developing countries listed by the UN that exhibit the lowest indicators of socioeconomic development.
    • The concept first originated in the late 1960s and was codified under UN resolution 2768 passed in November 1971.
    • According to the UN, an LDC is defined as “a country that exhibits the lowest indicators of socioeconomic development, with-
    1. Low levels of income, human capital and economic diversification,
    2. High levels of economic vulnerability, and
    3. A population that is disproportionately reliant on agriculture, natural resources, and primary commodities.

    Criteria for LDCs

    • The UN identifies three criteria for a country to be classified as an LDC:
    1. It must have a gross national income (GNI) per capita below the threshold of USD 1,230 over a three-year average.
    2. It must perform poorly on a composite human assets index based on indicators including nutrition, health and education.
    3. It must demonstrate economic vulnerability such as being prone to natural disasters and possessing structural economic constraints.
    • Countries must meet a selection from all three criteria simultaneously and are reviewed on a three-year basis by the UN.

    How many countries are LDCs?

    • Currently, the UN lists 46 countries that qualify as LDCs.
    • Of those, 33 are from Africa, nine from Asia, three from the Pacific and one from the Caribbean.
    • At the UN 2021 triennial review of LDC countries, the organisation recommended that Bangladesh, Laos, and Nepal be removed from the list.

    How does a country get off the LDC list?

    • To graduate from the LDC list, a country must meet certain criteria in the three areas stated before namely, income, human assets, and economic vulnerability.
    • A nation must have a GNI per capita of at least USD 1,242 for two consecutive triennial reviews in order to meet the income requirement.
    • The nation must also show that this level of income can be sustained over the long term.
    • A nation also must show that it has improved its ability to withstand external economic shocks like natural catastrophes or shifts in commodity prices in order to pass the economic vulnerability test.

    How did Bhutan get off the LDC list?

    • Bhutan was included in the first group of LDCs in 1971. It fulfilled the requirements for graduation in 2015 and 2018.
    • Bhutan’s economy grew more than eight times in the last 20 years, from under USD 300 million in 2000 to USD 2.53 billion in 2017.
    • The percentage of people living in poverty decreased from 17.8 per cent in 2003 to 1.5 per cent in 2017.
    • The percentage of people living below the national poverty line decreased from 23.2 per cent in 2007 to 8.2 per cent in 2017.

    What economic measures did it take?

    • Hydropower exports: Bhutan increased exports of hydropower to India, which now accounts for 20 per cent of its economy.
    • Brand Bhutan: Bhutan established Brand Bhutan to diversify exports and target high-end markets with specialised exports of high-value, low-volume Bhutanese goods from sectors including textiles, tourism, handicrafts, culture, and natural resources.
    • Tourism promotion: It emerged out to be an all-season tourist destination in South Asia.

    Advantages of being an LDC

    • LDCs enjoy duty-free and quota-free (DFQF) access to the markets of developed countries.
    • LDCs are also eligible for loans with special terms for development, which include loans with a lower interest rate and a longer repayment time than those given to other nations.
    • The term “Official Development Assistance” (ODA) or “aid” is frequently used to describe this form of support.

    Way forward for Bhutan

    • As such, advancing out of the list is often only the first step in overall development.
    • Graduation from LDC status is not the end of the road, but the beginning of a new journey.
    • It is a time when a country needs to redouble its efforts to build its productive capacities, diversify its economy, and create new opportunities for employment and income generation.

    Back2Basics: Defining a country’s ‘Development’

    • There are no WTO definitions of “developed” or “developing” countries.
    • Developing countries in the WTO are designated on the basis of self-selection although this is not necessarily automatically accepted in all WTO bodies.
    • The WTO however recognizes as least-developed countries (LDCs) those countries which have been designated as such by the United Nations.

     

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  • India -Sweden: Flourishing Partnership

    Central Idea

    • This year marks 75 years of bilateral relations between India and Sweden, and it is an occasion to celebrate. Bilateral trade has reached unprecedented levels in the past year, with Swedish companies making significant strides in the Indian market. The latest Indian administration has shown a keen interest in augmenting and broadening the partnership between the two countries.

    The Past and Present: Bilateral Relations between India and Sweden

    • Sweden and India have come a long way in the past 100 years.
    • From limited contacts to a flourishing partnership, both countries have developed national wealth through industry and manufacturing. Swedish companies have been key drivers in both domains, and through their work, Sweden and India have found friends in one another.
    • In 2023, Sweden is celebrating the anniversaries of Ericsson, SKF, Alfa Laval, and Volvo, notable Swedish companies in India.

    Celebrating 75 Years of Friendship

    • Record bilateral trade: India and Sweden celebrated a record year for bilateral trade in 2022, with Swedish companies experiencing strong growth in India.
    • Flourishing partnership: Both countries are committed to expanding their partnership and collaborating in innovation, green transition, energy, health, industry policy and more.

    Emphasizing the Importance of Industry and Manufacturing

    • Key sectors: Industry and manufacturing are key to building long-term economic growth, and Sweden and India have identified these sectors as key areas of collaboration.
    • Swedish companies have been key drivers: An active industry policy necessitates partnerships and taking bold steps, and Swedish companies have been key drivers in industry and manufacturing in India for several decades.

    Prioritizing Green and Sustainable Practices

    • Commitment to green supply chain: The future belongs to green and sustainable practices, and both Sweden and India are committed to socially and environmentally sustainable practices throughout the entire supply chain.
    • Green transition and digitalisation: There is a clear commitment to this vision from governments and businesses alike, with a focus on digitalisation, the green transition, and the industry of the future.

    Way ahead: Opportunities for Even Closer Ties

    • There are opportunities for even closer ties between India and Sweden, including a Free Trade Agreement between the EU and India.
    • The European Union presidency offers a chance to explore this possibility, which would have a positive impact on economic and industrial exchange, particularly in cities like Pune where Swedish companies have a strong presence.

    Conclusion

    • The partnership between India and Sweden has come a long way in the past 75 years. Both nations have identified industry and manufacturing as key to building long-term economic growth, and there is a need to deepen work towards socially and environmentally sustainable practices.

    Mains Question

    Q. Discuss the key areas of collaboration between India and Sweden in the context of their 75-year bilateral relationship?

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  • Green Hydrogen Mission: Five Priorities For The Vision

    Mission

    Central Idea

    • The 2023 Union Budget has allocated ₹19,700 crore for the National Green Hydrogen Mission. This will set in motion a programme that can position India as a green hydrogen (super)power.

    What is Green Hydrogen?

    • Clean and no harmful gas emission: The Green hydrogen is the one produced with no harmful greenhouse gas emissions.
    • Produced by electrolysis of water: It is made by using clean electricity from surplus renewable energy sources, such as solar or wind power, to electrolyse water. Electrolysers use an electrochemical reaction to split water into its components of hydrogen and oxygen, emitting zero-carbon dioxide in the process.
    • Clean energy source: It can serve as an energy source (heavy industry, long-distance mobility, aviation, and power storage) and an energy carrier (as green ammonia or blended with natural gas).
    • Energy intensive process: It is an energy-intensive process for splitting water into hydrogen and oxygen using renewable power to achieve this.

    Mission

    All you need to know about National Green Hydrogen Mission

    • The National Green Hydrogen Mission is a program launched by the government of India to promote the production and use of green hydrogen in the country.
    • It aims to establish India as a leading producer and consumer of green hydrogen. The mission is expected to create demand for 100-125 gigawatts (GW) of renewable energy, 60-100 GW of electrolysers, and an investment opportunity of ₹8 lakh crore, while cutting 50 MMT of annual emissions.

    Why is this important and what will it take?

    • India’s ambitious renewable energy goal for 2030: By 2030, India aims to generate 50% of its electricity from non-fossil fuel sources, while also requiring an industrial energy transition.
    • Industrial sectors contributing to India’s greenhouse gas emissions: Steel, cement, fertilizers, and petrochemicals contribute significantly to India’s industrial greenhouse gas emissions.
    • Green hydrogen’s potential for fuelling industrial growth and reducing emissions: Green hydrogen has the potential to fuel industrial growth and reduce industrial emissions simultaneously.
    • India’s production target for green hydrogen and its requirements: India has set a production target of five million tonnes of green hydrogen by 2030, surpassing that of any other single economy. This target would create a demand for 100-125 GW of renewable energy, 60-100 GW of electrolysers, and an investment opportunity of ₹8 lakh crore, while reducing annual emissions by 50 MMT.
    • India’s advantage as a cost-effective green hydrogen producer: India’s abundance of sunshine and wind energy resources position it well to become one of the world’s most cost-effective green hydrogen producers.

    Mission

    Five Priorities(5Ps): For the vision to convert into reality

    1. Domestic demand is critical: If we are not a big player domestically, we cannot be a major player in the international market. The mission introduces a Strategic Interventions for Green Hydrogen Transition (SIGHT) fund for five years, with ₹13,000 crore as direct support to consume green hydrogen. This will encourage heavy industries to increase demand, offering economies of scale by which suppliers can reduce prices.
    2. India can be an attractive destination for domestic and foreign investment: Green hydrogen production projects announced/underway in India are far fewer compared to others. Green hydrogen is difficult and expensive to transport. The mission envisions green hydrogen hubs to consolidate production, end use and exports. A mission secretariat can ensure project clearance is streamlined and reduce financial risks.
    3. Support and targeted funding: Currently, manufacturers are importing stacks and assembling them. We must become more competitive with targeted public funding in manufacturing the most critical and high-value components of electrolysers in India.
    4. Establish bilateral partnerships to develop resilient supply chains: Globally, about 63 bilateral partnerships have emerged; Germany, South Korea and Japan have the most. Using yen- or euro-denominated loans for sales to Japan or to the EU, respectively, could reduce the cost of capital and help us become export competitive. India must cooperate with like-minded countries on trade, value chains, research and development, and standards
    5. Coordinate with major economies to develop rules for a global green hydrogen economy: In the absence of common global frameworks, attempts for rules and standards are being driven by collectives of private corporations rather than through structured intergovernmental processes. There are already signs of conflicting regulations and protectionist measures in major markets. These put India’s ambitions at risk.

    What is Green Steel?

    • Green steel refers to steel that is produced using sustainable and environmentally friendly methods.
    • Green steel, is produced using renewable energy sources, such as wind and solar power, and by utilizing low-emission technologies that reduce carbon emissions.
    • One of the main ways to produce green steel is through the use of hydrogen instead of coal or natural gas as the reducing agent in the steel-making process.
    • Green steel is seen as a way to reduce the environmental impact of the steel industry, which is responsible for a significant portion of global carbon emissions.
    • Costs of green steel, made from green hydrogen, are currently much higher, but could be reduced with economies of scale and changes in production technologies

    Conclusion

    • India’s G20 presidency is an opportunity to craft rules for a global green hydrogen economy. These rules must address operational threats, industrial competitiveness and strategic threats. India should promote a global network on green hydrogen via which companies could collaborate. Green hydrogen will be a critical industrial fuel of the 21st century. India is well-positioned to show leadership in our collective interest and that of the planet.

    Mains Question

    Q. What is National Green Hydrogen Mission launched by the government of India? Discuss the key priorities of the mission that will they help India achieve its ambitious production target.

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  • India-Germany Relations: Opportunities and Challenges

    Germany

    Central Idea

    • India and Germany are enhancing their relationship through bilateral talks and collaboration, with Germany showing interest in being a key partner in India’s defence, trade, and clean energy. The recent visit of German Chancellor Scholz to India highlights the importance of India-German cooperation in shaping a new global order.

    India-Germany Relations: Background

    • Freedom struggle: Subhas Chandra Bose, a prominent freedom fighter for Indian independence, made a determined effort to obtain India’s independence from Britain by seeking military assistance from the Axis powers. The Indische Legion was formed to serve as a liberation force for British-ruled India principally made up of Indian prisoners of war.
    • Diplomacy: India maintained diplomatic relations with both West Germany and East Germany and supported their reunification in 1990. Contrary to France and the UK, Germany has no strategic footprint in Asia.
    • Past contentions: Germany condemned India for liberating Goa from Portuguese rule in 1961 and supported Portugal’s dictatorial regime under Salazar against India. It was critical of India for intervening in the 1971 Bangladesh Liberation War. It rejected India’s 1998 nuclear tests.
    • Quest for UNSC: India and Germany both seek to become permanent members of the UNSC and have joined with Japan and Brazil to coordinate their efforts via the G4 collective.
    • Cultural ties: Germany has supported education and cultural programs in India. Germany helped establish the IIT Madras after both governments signed an agreement in 1956 and increased its cooperation and supply of technology and resources over the decades to help expand the institution
    • Trade and investment: Germany is India’s largest trading partner in Europe. Germany is the 8th largest foreign direct investor (FDI) in India.

    Germany

    What is the significance of Chancellor Scholz’s visit to India?

    • Chancellor Scholz’s visit to India is significant as it builds on Germany’s growing political outreach to Asia and highlights India’s importance as a key partner in Germany’s overall strategy for the Indo-Pacific region.
    • The visit aimed to expand cooperation between India and Germany in areas such as defence, trade, clean energy, migration, digital transformation, and the Indo-Pacific.
    • It also assumes greater importance as India holds the G-20 presidency this year and seeks to avoid geopolitics hampering cooperation in the forum.

    India-Germany Cooperation: Opportunities

    • Defence collaboration: Germany could become an important defence partner for India as the country attempts to diversify from its military dependence on Russia. The two countries have discussed co-development of military hardware and tech transfers, and a deal worth $5.2 billion where Germany would jointly build six conventional submarines in India could be underway.
    • Economic ties: India and Germany share strong economic ties, with Germany being India’s largest trading partner in the European Union. Germany is also interested in stability of supply chains and trade routes linking Asia to Europe, given its status as Europe’s economic powerhouse and its reliance on exports.
    • Indo-Pacific region: Germany’s overall strategy for the Indo-Pacific region mentions India as a key partner. Germany has enhanced its political outreach to Asia, including India, as part of this strategy.
    • Multilateral cooperation: Both cooperate in multilateral forums, including as part of the G-4 grouping pushing for United Nations Security Council reform, and as evident in Germany’s invitation to Mr. Modi to attend last year’s G-7 summit.
    • Development projects: A recent agreement on India-Germany triangular cooperation involving development projects in third countries is an important step in enhancing strategic involvement in the region.
    • Security collaboration: The first ever France-India-Germany military exercise drill is slated to take place in 2024 towards enhanced security and defence collaboration.

    Germany

    India-Germany Cooperation: Challenges

    • Different geopolitical priorities: Germany is focused on ensuring stability in the Indo-Pacific region for the sake of trade and economic growth, while India is more concerned with territorial conflicts with neighbouring China.
    • Germany’s economic dependence on China: Germany has strong economic ties with China, making it difficult to completely decouple from the country. This creates a challenge for Germany in trying to balance its economic interests with its security interests.
    • Differences in defence capabilities: India and Germany have different defence capabilities and priorities, which can make it challenging to collaborate effectively on defence projects.
    • Historical baggage: Germany’s colonial past and role in World War II can create challenges in developing closer relations with India, particularly in the context of Germany’s efforts to deepen its involvement in the Indo-Pacific region.

    Germany

    Conclusion

    • Amidst geopolitical shifts and multipolarity, New Delhi’s ties with Berlin could be vital in shaping a new global order. There are high expectations on both sides regarding the potential for deeper collaboration, particularly in the defence sector. However, it will take time and effort to develop the necessary trust and alignment of interests.

    Mains Question

    Q. In recent times, India and Germany have been enhancing their relationship through bilateral talks and collaboration. In light of this, discuss challenges and opportunities that lie ahead?

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  • India to send 20,000 MT of wheat to Afghanistan via Chabahar

    chabahar

    Central idea: The article discusses India’s plan to send 20,000 metric tonnes of wheat to Afghanistan through the Chabahar port in Iran.

    Why in new?

    • Last year, the Indian side announced its partnership with UNWFP (UN World Food Programme) for the delivery of 20,000 MTs of wheat for Afghan people through the Chabahar Port.

    UN World Food Programme

    • The WFP is a leading humanitarian organization that provides food assistance in emergencies and works to improve nutrition and food security in poor and conflict-affected areas.
    • It was established in 1961 and is a part of the United Nations system.
    • The WFP is funded entirely by voluntary contributions from governments, non-governmental organizations, and private donors.
    • The organization provides assistance to over 80 million people in around 80 countries every year.
    • The WFP delivers food and other essential supplies in times of crisis and supports communities to build resilience and achieve long-term food security.

     

    India’s Assistance to Afghanistan

    • India has been providing humanitarian aid and support to Afghanistan for several years, including food and medical supplies.
    • The latest shipment of wheat is a part of India’s continued efforts to assist Afghanistan during its humanitarian crisis.

    About Chabahar Port

    • In 2016, India signed a deal with Iran entailing $8 billion investment in Chabahar port and industries in Chabahar Special Economic Zone.
    • The port is being developed as a transit route to Afghanistan and Central Asia.
    • India has already built a 240-km road connecting Afghanistan with Iran.
    • All this were expected to bring cargo to Bandar Abbas port and Chabahar port, and free Kabul from its dependence on Pakistan to reach the outer world.
    • Completion of this project would give India access to Afghanistan and beyond to Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia and Europe via the 7,200-km-long multi-modal North-South Transport Corridor (INSTC).

    India’s strategic vision for Chabahar

    When the first agreement for Chabahar was signed by then PM Atal Bihari Vajpayee in 2003, the plan had a three-fold objective:

    1. To build India’s first offshore port and to project Indian infrastructure prowess in the Gulf
    2. To circumvent trade through Pakistan, given the tense ties with India’s neighbour and build a long term, sustainable sea trade route and
    3. To find an alternative land route to Afghanistan, which India had rebuilt ties with after the defeat of the Taliban in 2001
    • Subsequently, PM Manmohan Singh’s government constructed the Zaranj -Delaram Highway in Afghanistan’s South.
    • It would help connect the trade route from the border of Iran to the main trade routes to Herat and Kabul, handing it over to the Karzai government in 2009.
    • In 2016, PM Modi travelled to Tehran and signed the agreement to develop Chabahar port, as well as the trilateral agreement for trade through Chabahar with Afghanistan’s President Ashraf Ghani.

    Commencement of operations

    • Since the India Ports Global Chabahar Free Zone (IPGCFZ) authority took over the operations of the port in 2018, it has handled 215 vessels, 16,000 TEUs (Twenty-foot Equivalent Units) and four million tons of bulk and general cargo.

    Why is it gaining importance?

    • In the last few years, a fourth strategic objective for the Chabahar route has appeared, with China’s Belt and Road Initiative making inroadsin the region.
    • The government hopes to provide Central Asia with an alternate route to the China-Pakistan Economic Corridor (CPEC)through Iran for future trade.

    Why is the Chabahar dream taking so long to realise?

    • India’s quest for Chabahar has hit geopolitical road-blockafter road-block; the biggest issue has been over Iran’s relationship with western countries, especially the United States.
    • In years when western sanctionsagainst Iran increased, the Chabahar project has been put on the back-burner.
    • However, the nuclear talks resulted in the Joint Comprehensive Plan of Action (JCPOA)in 2015 came into being, the Chabahar port has been easier to work on.
    • In 2018, the Trump administration put paid to India’s plans by walking out of the JCPOA and slapping new sanctions on dealing with Iran.
    • India also snapped ties with Afghanistan after the Taliban takeover in August 2021, which put an end to the humanitarian aid of wheat and pulses that was being sent to Kabul via Chabahar.
    • When India restarted wheat aid this year, it negotiated with Pakistan to use the land route to Afghanistan instead.

     

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