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Subject: International Relations

In news: China Indian Ocean Region Forum
China’s top development aid agency convened the first “China-Indian Ocean Region Forum” in the southwestern Chinese city of Kunming.

What is the China Indian Ocean Region Forum?
- It is organised by the China International Development Cooperation Agency (CIDCA).
- It is the latest Chinese initiative focusing on the Indian Ocean Region (IOR).
- It underlines Beijing’s growing strategic interests in a region where its economic footprint has been deepening.
What is it about?
- The CIDCA is China’s new development aid agency similar to the United States Agency for International Development (USAID).
- It aims to-
1. Strengthen policy coordination,
2. Deepen development cooperation,
3. Increase resilience to shocks and disasters, and
4. Enhance relevant countries’ capacity to obtain economic benefits through use of marine resources such as fisheries, renewable energy, tourism, and shipping in a sustainable way
Which countries have backed the forum?
- The organisers have said the forum was attended by high-level representatives and senior officials from 19 countries.
- But at least two of those countries, Australia and Maldives, subsequently released statements rebutting the claim, emphasising that they did not participate officially.
Why such a move by China?

China’s ambitions in the Indian Ocean have been motivated by three factors-
- Gaining significance of Indo-Pacific: As the new world order unveils around the Indo-Pacific, Beijing aims to challenge other major powers, such as India, and establish its hegemony.
- Domestic energy security: Beijing needs the Indian Ocean to ensure its energy security and continue fuelling its growth, which defines its foreign policy and international leverage.
- Hegemony establishment: Establishing new and alternative institutions with IOR countries helps China display its presence and influence from the China Sea to the Indian Ocean, reflecting its status as a significant power.
How is China perceiving its interests?
1. Political corruption: Beijing has cultivated close and personal relationships with political elites and parties of IOR countries, usually through corruption, party funding, and by turning a blind eye to their human rights abuses and democratic infirmities.
2. Fractionalization: Friendship with different political parties in Pakistan; bonhomie with the Rajapaksa clan in Sri Lanka, and close relations with Maldives’ Abdulla Yameen are some examples of this widespread phenomenon.
3. Elite capture: In addition, China has often used the elite capture tactic to ensure a pro-China policy and bag geo-economically and strategically significant projects. This includes concessions on Pakistan’s Gwadar Port and Sri Lanka’s Colombo Port City project.
Where does India stand?
- India was the lone absentee in the forum ignoring the invitation.
- China has exposed its intention with the Indian Ocean Region (IOR) countries.
- New Delhi has viewed China’s recent moves in the region warily, including the recent visit of a Chinese military tracking vessel, the Yuan Wang 5, to Sri Lanka.
- Moreover, India sees the Indian-Ocean Rim Association (IORA) as an already established platform for the region.
China’s plans for the IOR
- The forum has underlined China’s stepped-up interest in the IOR, where it is already a major trading partner for most countries and where sea routes lie vital to China’s economic interests.
- The CIDCA forum is the latest initiative to reflect Beijing’s view that it has a clear stake in the region, and that more such initiatives are likely.
Has China out-powered India in the IOR with this move?
- The Chinese initiative looks like a kind of delayed response.
- It can be seen only as a comparison and competitor to India’s SAGAR (Security and Growth for All in the Region), as outlined by PM Modi in Mauritius in 2015.
- The Indian idea is implemented through the nation’s ‘Neighbourhood First’ policy and such other initiatives as ‘‘Project Mausam’ and ‘Integrated Coastal Surveillance System’ (now shared with Maldives).
- All of them are confined to the Indian Ocean, where India too belongs legitimately, unlike China.
Conclusion
- In a way, the new initiative reflects China’s unending greed.
- It also reflects China’s desire and ambition to measure up to the US in reach and outreach, and through them, geo-economics, geopolitical, and geostrategic comparability.
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December 5, 2022
North East as Gateway to Indo-Pacific Strategy
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Context
- India’s ‘Look East’ and ‘Act East’ policies have moved into the phase of Indo-Pacific policy and strategy. But what we in the national capital interpret as the ‘Indo-Pacific’ is different from the perceptions of this policy in North-eastern and eastern India.
What is Indo-pacific?
- The Indo-Pacific is geographic region interpreted differently by different countries.
- For India, the geography of the Indo-Pacific stretches from the eastern coast of Africa to Oceania whereas, for US, it extends up to the west coast of India which is also the geographic boundary of the US Indo-Pacific command.
Importance of North-East
- Security of India: The Northeast which comprises seven ‘sisters’ or States and one ‘brother’, Sikkim, has been witnessing transformation as it heads towards better security conditions and development
- Geography and Biodiversity: North-eastern Indian States are blessed with a wide range of physiographic and ecoclimatic conditions and the geographical ‘gateway’ for much of India’s endemic flora and fauna.
- Siliguri corridor only connecting link: North-East is home to 3.8% of the national population and occupies about 8% of India’s total geographical area. Siliguri corridor, a narrow strip of land in West Bengal, popularly known as “chicken’s neck” connects this region to the rest of mainland India.
Present condition of north east
- Improved security: Security conditions have improved significantly since 2017. However, the core issues behind the insurgency have remained unresolved.
- Serious non-traditional threats: A notable contrast in security assessments of the authorities and others came to the fore. The official perspective was that the pernicious phenomena of smuggling, drug trafficking, transnational border crime, insurgent activity, and the influx of refugees (from Myanmar) represented serious non-traditional threats.
- Chinese hand in nefarious activities: China was viewed as a ‘constant player’ behind these nefarious activities. This has necessitated vigilance and strict action by the Assam Rifles and other security agencies.
- Sensitive border management: The insensitive handling of those engaged in lawful exchanges with the neighbouring countries. A balanced view indicates that considerable scope exists for more effective and people-sensitive border management in the future.
Development as priority in North East
- Rising road infrastructure: The Northeast is on the right path to concentrate on economic development. More is awaited through improvement in roads linking north-eastern towns and job creation for thousands of graduates produced by local universities.
- Hub of medical tourism: Manipur needs to be promoted as the hub of medical tourism for other Indian States and neighbours such as Myanmar.
- Investment needs to increase: The State’s research and development facilities to leverage the region’s biodiversity should be expanded. Accelerated development requires increased investment by Indian corporates and foreign investors as well as better management.
- Blueprint for economic development: Strategic and business community to contribute to crafting a concrete blueprint for leveraging opportunities relating to commerce, connectivity, and human capital development.
Cultural diplomacy from North east
- Showcasing the culture of north east: An ambitious endeavour by 75 artists from nine countries highlighted the region’s ‘unity in diversity’ through music, dance, drama, and cuisine.
- Education, tourism and trade: Clearly, expanding the reach of cultural diplomacy and people-to-people cooperation through greater educational exchanges, tourism, and trade is desirable.
- Regional cooperation through cultural exchange: Harsh Vardhan Shringla, former Foreign Secretary, aptly stressed that the “shared culture, history and mutual social threads that tie the region with India also an important component towards fostering regional cooperation”.
Cultural dimension to Indo-Pacific
- Geo-cultural dimension: At Kolkata, intellectuals and performers in the cultural domain from India, the U.S., Japan, Thailand, Sri Lanka, and Bangladesh reflected on the Indo-Pacific construct’s cultural dimensions. Moving beyond geopolitics and geo-economics, neighbors should focus on “the geo-cultural dimension” of the Indo-Pacific.
- Expanding people to people cooperation: Diplomats from the region agree on the importance of expanded people-related cooperation which would lead to wider acceptance of the Indo-Pacific and consolidation of the Quad.
Conclusion
- While implementing India’s Indo-Pacific strategy, voices from Northeast and eastern India must be heard. Thus, beyond ‘Look East’ and ‘Act East’ lies ‘Think and Relate East’, especially within our own country.
December 3, 2022
G20: Setting the World Agenda Through Task Forces
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Context
- India’s G20 presidency began on December 1. It will be driven by the underlying vision of “Vasudhaiva Kutumbakam”, best encapsulated by the motto “One Earth, One Family, One Future”. As the main “ideas bank” of the G20, the activities and deliberations of the Think20 (T20) engagement group of the G20 are spread over seven task forces.
Task force on “Macroeconomics, trade, and livelihoods”
- Create Coherence in monetary and fiscal policy: It has the mandate to make recommendations on coordination within the G20 to create coherence in monetary and fiscal policy, trade, investment, and supply chain resilience.
- Recover together, recover stronger: The aim is to give further impetus to the initiatives taken by the Indonesian presidency to “Recover Together, Recover Stronger” in the post-pandemic period.
- Consensus on international trade: With supply chain resilience emerging as a common concern against the backdrop of ineffective WTO mechanisms, the G20 has assumed the mantle as the most significant platform to forge consensus among the top 20 economies on international trade policy.
Task force on “Digital Futures”
- Digital infrastructure: It will endeavour to build an inclusive digital public infrastructure to ensure affordability and safe access by all.
- Interoperability of Digital services: It will discuss the universal interoperability of digital services. It will also address issues of digital financial inclusion and skills, both integral to economic growth.
Task force on “LiFE, Resilience, and Values for Wellbeing”
- Lifestyle for Environment (LiFE): The LiFE initiative aims to put the individual at the centre of the discourse and to sensitise every human being, regardless of nationality and geography. If individuals become more conscious of their lifestyle choices and act more responsibly, it can make a huge difference.
- Contribution of all: The focus on LiFE is a timely initiative given the fact that the deleterious effects of climate change on the economy and livelihood are felt the most by the vulnerable countries around the world.
Task force on “Green transitions”
- Refuelling growth: Growth will be the aim of the task force on green transitions as it recommends pathways for a smooth transition to clean energy without compromising on efforts for global economic revival in a post-pandemic world.
Task force on the “Global financial order”
- Restructuring the financial institution: It will examine the potential for realigning the global financial architecture. The challenge today is to restructure institutions in accordance with contemporary economic needs, including for infrastructure.
- Finance and resource mobilization: Greater access to development finance and resource mobilisation through innovative methods is of key importance.
Task force on “Accelerating SDGs”
- Sustainable collaboration: It will explore new pathways to deliver on the 2030 agenda through strengthened and sustainable collaboration.
- Focus on circular economy to reduce waste: Given the earth’s finite resources, a shift towards a circular economy and deliberate and mindful consumption is likely to reduce waste and help build a virtuous cycle for development.
Task Force on “Reformed Multilateralism”
- Road map for Multilateralism 2.0: It will seek to create a roadmap for “Multilateralism 2.0”. A targeted reform agenda for key multilateral institutions, whether the United Nations or its affiliated frameworks such as the WHO, WTO and the ILO, must be undertaken.
- Representative world order: With sincere efforts, the global community can look forward to the birth of a more representative and egalitarian multipolar world order from the chrysalis of the G20.
Conclusion
- The year ahead is an opportunity for India to share its values to world. Vasudhaiva Kutumbakam, the guiding canon for India’s Neighbourhood First Policy and Vaccine Maitri, places higher human values above narrow nationalism. It is an approach that is expected to permeate all aspects of India’s G20 Presidency.
Mains Question

Q. What are the different task forces created under India’s G20 presidency? Briefly explain the role of different task forces.

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December 2, 2022
Russia postpones with US under New START nuclear treaty
Russia postponed nuclear weapons talks with the United States under the New START Treaty with neither side giving a reason for the postponement.

New START Treaty
- The New Strategic Arms Reduction Treaty (New START) pact limits the number of deployed nuclear warheads, missiles and bombers and is due to expire in 2021 unless renewed.
- The treaty limits the US and Russia to a maximum of 1,550 deployed nuclear warheads and 700 deployed missiles and bombers, well below Cold War caps.
- It was signed in 2010 by former US President Barack Obama and then-Russian President Dmitry Medvedev.
- It is one of the key controls on the superpower deployment of nuclear weapons.
Background of US-Russia Nuclear Relations
- The US formally QUIT the Intermediate-Range Nuclear Forces (INF)
- The agreement obliged the two countries to eliminate all ground-based missiles of ranges between 500 and 5,500 km.
When did nuclear disarmament begin?
- In 1985, the two countries entered into arms control negotiations on three tracks.
- The first dealt with strategic weapons with ranges of over 5,500 km, leading to the START agreement in 1991.
- It limited both sides to 1,600 strategic delivery vehicles and 6,000 warheads.
- A second track dealt with intermediate-range missiles and this led to the INF Treaty in 1987.
- A third track, Nuclear, and Space Talks was intended to address Soviet concerns regarding the U.S.’s Strategic Defence Initiative (SDI) but this did not yield any outcome.
Success of INF
- The INF Treaty was hailed as a great disarmament pact even though no nuclear warheads were dismantled.
- As it is a bilateral agreement, it did not restrict other countries.
- By 1991, the INF was implemented. USSR destroyed 1,846 and the US destroyed 846 Pershing and cruise missiles.
- Associated production facilities were also closed down.
- INF Treaty was the first pact to include intensive verification measures, including on-site inspections.
How has the nuclear behavior been?
- With the end of the Cold War and the break-up of the USSR in end-1991, former Soviet allies were joining NATO and becoming EU members.
- The U.S. was investing in missile defense and conventional global precision strike capabilities to expand its technological lead.
- In 2001, the U.S. announced its unilateral withdrawal from the 1972 Anti-Ballistic Missile Treaty (ABM Treaty).
- The US also blamed Russia for not complying with the ‘zero-yield’ standard imposed by the Comprehensive Test Ban Treaty (CTBT). This may indicate the beginning of a new nuclear arms race.
Implications of the New Start
- The 2011 New START lapsed in 2021. It may meet the fate of the INF Treaty.
- The 2018 NPR envisaged the development of new nuclear weapons, including low-yield weapons.
- China is preparing to operate its test site year-round with its goals for its nuclear force.
- CTBT requires ratification by U.S., China, and Iran, Israel and Egypt and adherence by India, Pakistan and North Korea. It is unlikely to ever enter into force.
Conclusion
- A new nuclear arms race could just be the beginning. It may be more complicated because of multiple countries being involved.
- Technological changes are bringing cyber and space domains into contention. It raises the risks of escalation.
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November 29, 2022
Understanding the “China’s BRICS” game
Context
- At the 14^thLeaders’ Meeting of the BRICS, held virtually in June 2022, China dwelt on the issue of expanding the group beyond its five existing members to include more emerging economies. At a time when China-India relations are at a low point, the proposal has raised concerns in New Delhi. As India deliberates its stance on this contentious issue, it is important to understand China’s approach towards BRICS.
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All you need to know about BRICS
- BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
- Jim O’Neill, a British economist, coined the term ‘BRIC’ to describe the four emerging economies of Brazil, Russia, India, and China. He made a case for BRIC on the basis of econometric analyses projecting that the four economies would individually and collectively occupy far greater economic space and become among the world’s largest economies.
- The importance of BRICS is self-evident: It represents 42% of the world’s population, 30% of the land area, 24% of global GDP and 16% of international trade.
- The five BRICS countries are also members of G-20.
BRICS for China
- Strategy of multiple engagements: For China, it is the grand strategy that is the Belt and Road Initiative (BRI) that threads its many engagements: BRICS, the Shanghai Cooperation Organisation (SCO), the Association of South East Asian Nations (ASEAN) where it is not directly a member, the Eurasian Economic Union, and the Regional Comprehensive Economic Partnership (RCEP).
- Projecting the connection between BRICS and BRI: BRICS as an entity, has not signed any memorandum of cooperation with the BRI, In Chinese strategic thinking, the BRI and BRICS are deeply connected.
- Repeated assertion by Xi Jinping: President Xi Jinping himself has harped on this notion in his speeches on multiple occasions, such as the 9th BRICS Business Forum in September 2017 and the 11th BRICS Leaders’ Meeting in November 2019. In his speech he stated that China would cooperate with other multilateral development institutions such as the BRICS New Development Bank to support BRI and jointly formulate guidelines to finance development projects.
China’s Approach towards BRICS: The Link with BRI
- Policy of Five connectivities: Chinese scholars are of the opinion that the “five connectivities” in policy, infrastructure, trade, finance, and people-to-people constitute the common way forward for both the BRI and BRICS.
- Economic development strategy: China has been working towards strengthening the interconnection of economic development strategies of different states along the BRI, particularly the BRICS nations, aligning and integrating BRI and BRICS infrastructure projects, ensuring unimpeded trade, pursuing multiple forms of cooperation.
- China’s Silk Road Economic Belt and EEU: The most significant progress made so far by China in this regard has been the official docking between China’s Silk Road Economic Belt (the land part of the BRI) and the EEU (where Russia is the dominant player) in May 2015.
- Infrastructure models that China is emphasising: A high-speed railway project from Moscow to Kazan is being constructed under this strategic cooperation, funded by the BRICS New Development Bank. This is the model that China wants to replicate with other BRICS nations as well. In December 2015, South Africa and China signed a memorandum of understanding on jointly promoting the construction of the “Silk Road Economic Belt” and the “21st Century Maritime Silk Road.”
Why China needs BRICS to promote the BRI?
- To avoid direct conflicts: Chinese policymakers believe that although China is the main proponent of the BRI, it needs to avoid both strategic overdraft and direct conflicts with the pillars of the present international order while implementing the strategy.
- To use resources effectively: To improve efficiency in the use of funds and other resources, China, it is argued, should shift from individually leading specific projects to constructing and leading various international institutions and exerting itself through institutional norms.
- Strategic alignment and ambition to lead: President Xi emphasised this as well at the ‘Belt and Road’ International Cooperation Summit Forum in May 2017, saying that the BRI “is not about starting from scratch and reinventing the wheel, but realising strategic alignment and (reaping) complementary advantages (of various existing or new mechanisms).”
- Dominating the financial mechanism through BRI partnership: Chinese scholars point out that all the BRICS countries have already been made part of the Asian Infrastructure Investment Bank (AIIB), one of China’s key financing mechanisms for the BRI. Further, given China’s clear dominance in the New Development Bank (NDB), Contingency Reserve Fund (CRA), the AIIB, as well as Silk Road Fund, it is only imperative for it to use these institutions to incentivise more BRICS countries to participate in the BRI, and to lay the foundation of a global financial system for the Chinese currency (RMB) trade settlement.
- Creating an acceptable front: China is aware that the BRI has provoked extensive discussion around the world. It has been interpreted differently by different countries and has even drawn suspicion and caution in certain quarters. China is aware that to implement the BRI smoothly, it needs an additional front that is less controversial and more acceptable to the international community at large, and in particular, to developing countries.
What are the concerns for India?
- Promoting priorities in contrast: China prioritises the ‘BRICS + Asia’ cooperation mechanism – ‘BRICS + ASEAN’ on the one hand, and ‘BRICS + Bay of Bengal’ on the other, thereby integrating BRICS more closely with the Southeast Asian countries as well as with the Bangladesh-China-India-Myanmar Economic Corridor (BCIM-EC) and Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) nations.
- Aligning with BIMSTEC to counter India’s resistance to BRI: The aligning with BIMSTEC is particularly aimed at countering India’s reticence to endorse the BRI, while seeking its cooperation through either coercion (i.e., using other member states of the said groupings as bargaining chips to pressure India to cooperate) or deception (i.e., temporarily ignoring the BRI banner).
- Using BRICS at its advantage: China wants to use the BRICS platform to establish links and influence policies of these key regional organisations, including the African Union in Africa, the Arab League in West Asia, the SCO in Central Asia, the South Asian Association for Regional Cooperation (SAARC) in South Asia, and ASEAN in Southeast Asia.
- Ambition to formulate the world order in its own way: It wants BRICS, especially the BRICS New Development Bank, to strengthen cooperation with the IMF, the World Bank, and the World Trade Organization. This will enable China, through BRICS, to strengthen its international leadership, play a bigger role in the formulation of international rules, and influence the overall global governance mechanism.
Conclusion
- As China-US rivalry intensifies and the BRI faces a plethora of challenges, BRICS is increasingly gaining significance for China. Within the grouping, China sees itself as the ‘core’ of BRICS, while India as its weakest link.
- India needs to accurately grasp the geopolitical shifts taking place within BRICS and deftly navigate the complex dynamics between the member states to safeguard its own interests within the grouping and avoid being drawn passively into China’s Great Game.
Mains Question

Q. China has focused on expanding the BRICS group to achieve its own ambitions. Discuss the significance of BRICS for China and India’s concerns.

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November 28, 2022
India, Iran discuss development of Chabahar Port
India and Iran held Foreign Office level consultations to continue cooperation for development of the Shahid Beheshti terminal of the Chabahar Port.

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 7,200-km-long multi-modal North-South Transport Corridor (INSTC).
Why is Chabahar back in the news?
- The visit is a chance to strengthen ties and the maritime relationship between the two countries.
- Due to pandemic, there were less number of visits from India to Iran and vice-versa and the pace of the project is also allegedly slower.
- This visit will also highlight the importance of Chabahar as a gateway for Indian trade with Europe, Russia and CIS [Commonwealth of Independent States] countries.
- India is keen in developing the Shahid Beheshti port as a “a transit hub” and link it to the International North South Trade Corridor (INSTC), that also connects to Russia and Europe.
What is 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 inroads in 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-block after road-block; the biggest issue has been over Iran’s relationship with western countries, especially the United States.
- In years when western sanctions against 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.
- This led to the Modi government “zeroing out” all its oil imports from Iran, earlier a major supplier to India, causing a strain in ties.
- 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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November 25, 2022
What India gains from FTA with Australia?
After 10 years of negotiations, India and Australia have finally agreed an interim free trade deal called the India-Australia Economic Cooperation and Trade Agreement (ECTA).

What is the news?
- Australia’s parliament has ratified the ECTA.
- The two countries has signed the ECTA on April 2 this year.
- The trade deal will now come into effect on a mutually agreed date.
Key terms of the India-Australia ECTA
- Under the India-Australia ECTA, duties on 100 percent tariff lines will be eliminated by Australia, covering 6,000 broad sectors.
- Meanwhile, India’s tariffs on 90 percent of Australian goods exports, including meat, wool, cotton, seafood, nuts, and avocados, will be removed.
- From day one, Australia will offer zero-duty access to India for almost 96.4 percent of exports by value. Presently, many of these products have a 4-5 percent customs duty imposed by Australia.
Key benefits offered
- Exporters, businesses, workers, and consumers in both markets are set to benefit from the trade liberalization, market opening, and freer movement of people.
- Implementation of the trade agreement will create an estimated 1 million jobs.
- The India-Australia ECTA agreement is expected to increase bilateral trade to about US$45-50 billion in the next five years from the existing US$31 billion.
- India hopes to increase its merchandise exports by US$10 billion BY 2026-27.
Special benefits to India
- IT sector to be a big gainer as it contributes significantly to both economies
- Visas to be offered to Indian chefs and yoga instructors
- Work opportunities for Indian students pursuing education in Australia
- Cheaper raw materials from Australia will make Indian goods more competitive in the global market
- Medicines approved under rigorous US and UK regulatory regimes will benefit from a fast track mechanism to get approval in Australia (improving market prospects for India’s patented, generic, and biosimilar medicines)
Volume of India-Australia Trade
- Australia is the 17th largest trading partner to India and India is Australia’s ninth largest trading partner.
- In 2021-22, India’s goods exports to Australia valued US$8.3 billion and imports were about US$16.7 billion. Two-way trade in goods and services in 2020 were valued at US$24.3 billion.
- India’s merchandise exports to Australia grew 135 percent between 2019 and 2021.
- India’s exports consist primarily of a broad-based basket largely of finished products. Around 96 percent of Australia’s exports are raw materials and intermediate products.
How will Indian IT firms benefit from the deal?
- Along with ECTA, the Australian parliament has also approved an amendment to the Double Taxation Avoidance Agreement (DTAA) – a long-standing tax issue for Indian companies operating in Australia.
- As per industry estimates, Indian IT firms lost more than $1 bn in taxes due to the existing provisions in DTAA.
- Most IT firms take up projects where they do some portion of work on-site, and some from India.
- However, Australian courts had ruled that even the work done from India can be taxed as per local Australian laws.
- The same income was subject to taxes in India too.
What’s in it for pharma companies?
- ECTA says Indian drugs that have already been approved in the UK and US will get faster approval in Australia too.
- India has the highest number of USFDA-approved sites and other stringent regulatory agencies approvals too — which will yield results once ECTA comes into effect.
- India exported $387 mn worth of pharma products to Australia registering a growth of 11.58% FY22.
- India can now expect share in Australia’s US$ 13 billion pharma market to go up.
Will ECTA give a push to labour-intensive industries?
- Getting easier access for apparel, textiles, leather, footwear, gems & jewellery, furniture, machinery and electrical goods in western markets is India’s key aims in trade deals.
- ECTA will see India getting zero duty on 98.3% of tariff lines from the day the agreement comes into force and on 100% of tariff lines within five years.
Can India cut its trade deficit with Australia?
- At the moment, Australia exports much more to India than it imports.
- During the last financial year, India had a trade deficit of $8.5 billion with Australia with $8.3 billion worth of exports and $16.8 billion worth of imports.
- Entering the Australian market is not just about lower tariffs as Australia is already a very open economy.
- There already are firmly established players in Australia and displacing them would need cutting trade costs and signing a comprehensive deal.
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November 25, 2022
Foreign Policy: India as a Pole in Itself
Context
- The ongoing war in Ukraine on the one hand and the confrontation between Russia and the United States and the West, on the other have increased the frequency/regularity of the question, whose side is India on, after all? Is India with Russia or with the U.S./the West in this war?
What is the issue of India taking the either side?
- India doesn’t support the either camp: When great powers seek India’s support during geopolitical contestations, such as the one over Ukraine, they end up facing a stubborn India that is reluctant to toe the line.
- India is not a satellite state: The inherent reason behind Indian reluctance, however, is not stubbornness but a sense of self which views itself as a pole in the international system, and not as a satellite state or a camp follower.
- India has a different position than two poles: India refuses to take sides because it views itself as a side whose interests are not accounted for by other camps or poles.
- India projects the multipolar world order: New Delhi’s constant exhortations of a multipolar world are also very much in tune with this thinking about itself as a pole in a multipolar world.
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India’s history of not taking the side (non-alignment)
- Historically different civilization: The origins of this thought can be found in the character of the country’s long struggle for independence; the pre- and post-Independence articulations of leaders such as Jawaharlal Nehru, Gandhiji, and Bal Gangadhar Tilak among others on international politics; the (not uncontested) primacy India inherited as the legatee state of the British empire in South Asia; India’s larger than life civilizational sense of self.
- Non-Aligned Movement (NAM) experiment: NAM have contributed to India’s desire for a unique foreign policy identity and a voice in the comity of nations. For much of its modern independent history, India’s foreign policy has been a unique experiment.
- Independent foreign policy: Historically, India’s view of itself as a pole is evident in the manner in which it used to pursue non-alignment for several decades after Independence. Some vestiges of this continue to inform India’s foreign policy to this day.
- Non-alignment is not a neutrality: It is also important to point out that India’s non-alignment is often misunderstood given that a number of foreign commentators and practitioners interpret it as neutrality. For India, however, non-alignment is not neutrality, but the ability to take a position on a given issue on a case-by-case basis.
How India asserts itself as a different pole in international affairs?
- No domination in south Asia: India has a different view of itself as a pole. It has not actively sought to dominate the South Asian regional subsystem even when it could.
- No alliance like NATO: Its balancing behaviour has been subpar, it has refused to build alliances in the classical sense of the term, or sought camp followers or allegiances. As a matter of fact, even its occasional balancing behaviour (for instance, the 1971 India-Soviet Treaty during the Bangladesh war) was contingent on emergencies.
- South Asia is not a Strategic periphery: It does believe it has a strategic periphery in South Asia where it has a natural claim to primacy.
- Doesn’t allow interference in south Asia: It discourages interference by other powers in that space.
- India speaks for global south: India often tends to speak for ‘underprivileged collectives’, physical (South Asia) or otherwise (NAM, developing nations, global south, etc. in varying degrees); and it welcomes the rule of law and regional order.
What should world learn from India’s position as a pole in itself?
- India as unique player in international system: India’s recent or past statements on issues of global importance be it Ukraine or Iraq, or the North Atlantic Treaty Organization’s aerial campaign in Serbia, or bringing climate change to the United Nations Security Council (UNSC) indicate that it tends to take positions that not just suit its interests but are also informed by its sense of being a unique player on the global stage.
- India as partner not cheerleader: Western powers must, therefore, treat India as a partner rather than as a cheerleader. They should mainstream India into global institutions such as the UNSC, and consult India rather than dictate to India which side to take.
Conclusion
- As India becomes the chair of the G20 and the SCO in 2022, it will further seek to assert itself as a major pole in the international system, and dissuade demands to follow one camp or another. Therefore, those wishing to work with India on the global stage must learn to deal with the ‘India pole’.
Mains Question

Q. Analyse the India’s policy of not taking the position of west or Russia on global issues. How India asserts itself as a different pole in international affairs?

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November 23, 2022
Moscow Format to Engage with the Talibans
The Moscow Format of Consultations on Afghanistan was recently held in the Russian capital.

What is the Moscow Format?
- The Moscow format was introduced in 2017 on the basis of the six-party mechanism for consultations between special representatives from Russia, Afghanistan, China, Pakistan, Iran and India.
- The present meeting includes a group of 10 nations including India, China, Pakistan, Iran and the Central Asian republics with Taliban officials.
- Russia had previously convened a new meeting of the ‘Extended Troika’ on Afghanistan which included Russia, the United States, China and Pakistan.
- The US pulled out of the last meeting.
- Taliban did not participate in the talks but, welcomed the discussion and declared that it will not allow Afghan territory to be used against “stability of the region”.
Key outcomes of the meet
- The dialogue called for respect for all Afghan ethnic groups and minorities in a bid to create national reconciliation in the war torn country.
- The Russian hosts, presented a White Book on the civilian losses in Afghanistan due to the actions of the NATO forces during the past two decades.
- The representatives at the talks also called for “complete unfreezing” of Afghanistan’s assets by Washington.
Urging the Taliban Govt.
- Prevent poppy cultivation: Participating countries called upon the Taliban setup to “fulfil its commitments to eradicate terrorism and drug trafficking” that continue to emanate from the Afghan territory.
- Stop atrocities: The return of the Taliban has been followed by a series of attacks on Shia Hazaras and growing atrocities against women and political opponents.
- Inclusive govt. formation: The participants underscored the importance of forming a “truly inclusive government in Afghanistan, reflecting the interests of all major ethno-political groups of the country.”
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November 18, 2022
The case of India-UK Free Trade Agreement
Context
- To achieve the export target of $2 trillion by 2030, India is going the whole hog on free trade agreements (FTAs). India is negotiating FTAs with countries such as the European Union, Canada, the U.K., and Israel.
Importance of FTA
- FTA include multiple trade aspects: FTAs cover a wide array of topics such as tariff reduction impacting the entire manufacturing and the agricultural sector; rules on services trade; digital issues such as data localization; intellectual property rights that may have an impact on the accessibility of drugs; and investment promotion, facilitation, and protection.
- Great impact on economy and society: Consequently, an FTA has a far-reaching impact on the economy and society. Given this, one legitimately expects transparency and greater scrutiny of the FTA process both during and after the negotiations.
What are the problems with Indian FTA negotiations?
- Lack of transparency in negotiations: India negotiates most FTAs behind closed doors with very little information about the objectives and processes followed and negligible scrutiny.
- No robust framework for FTA negotiations: This is not the case in other countries with whom India is negotiating such an FTA. In the U.K., for example, there are several robust mechanisms that foster a certain degree of transparency in the FTA negotiations. Furthermore, there are institutional apparatuses that enable the scrutiny of the actions of the executive, during and after the signing of the FTA.
Case study of FTA framework in U.K
- Detailed information on FTA’s: Department of International Trade (DFIT), U.K., publishes a policy paper laying down the strategic objectives behind negotiating an FTA and why it is important for the U.K. to have an FTA with a particular country. This policy paper is fairly detailed listing the specific advantages of signing an FTA such as the economic gains expected, distributional impacts, the environmental impact, and the labour and human rights dimensions of the FTA.
- Inputs from stakeholders: The policy paper that the DFIT publishes also contains the inputs and responses received by various stakeholders such as businesses, non-governmental organizations, and others. Furthermore, the policy paper also explains the government view on specific suggestions
- FTA scrutiny by parliament: In the U.K., the strategic objectives identified by the government for signing an FTA are scrutinized by the U.K. Parliament. This job is performed by the International Agreements Committee (IAC) of the British Parliament. The IAC hears expert witnesses on the FTA, critically examines the government’s strategic objectives for each FTA under negotiation, and offers key recommendations wherever it finds gaps in the government’s approach. The U.K. government then responds to these recommendations.
- Parliament has to ratify the FTA: In the U.K, under the Constitutional Reform and Governance Act, 2010, the executive has to lay down a treaty before the British Parliament for 21 sitting days with an explanatory memorandum before ratifying it. This allows Parliament to be apprised of the treaty the executive is going to ratify.
The contrast case of India’s FTA
- No publicly produced document in India: In India, no such document is produced publicly that makes a case for signing an FTA and assessing its impact on the environment and society at large. The Commerce Ministry the nodal body dealing with FTAs on its website provides the bare minimum information about FTA negotiations.
- No record of discussion with the stakeholders: Seemingly, the Commerce Ministry also undertakes stakeholder consultations and inter-ministerial meetings but there is no public record of these discussions and the government’s response to the concerns of stakeholders.
- No parliamentary scrutiny: In India, there is no mechanism for such parliamentary scrutiny of the executive’s actions during the FTA negotiations. India’s parliamentary system allows for department-related parliamentary committees that discuss various topics of importance and offer recommendations. However, the Parliamentary Standing Committee on Commerce (PSCC) rarely scrutinises the Indian government’s objectives behind negotiating and signing an FTA.
- No role for parliament to ratify the FTA: In India, there is no mechanism for any role of Parliament in the ratification of treaties including FTAs. Entering into treaties and matters incidental to it such as negotiations, signing and ratification are within the constitutional competence of Parliament. But, Parliament in the last seven-plus decades has not exercised its power on this issue, thus giving the executive unfettered freedom in negotiating, signing, and ratifying treaties including FTAs.
Recommendations for Improving the India’s FTA framework
- Publicise the objectives of FTA: India should take a leaf out of the U.K. book and develop a law on entering treaties including FTAs. This law should have the following parts. The executive should make a clear economic case outlining its strategic objectives publicly for entering into negotiations for a treaty such as an FTA.
- Mandatory consultation with all stakeholders: The executive should be under an obligation to consult all stakeholders, respond to their concerns and make this information publicly available.
- Dedicated parliamentary committee to scrutinize the FTA: The Indian Parliament should constitute a committee on the lines of the U.K.’s IAC that will scrutinise the strategic objectives behind entering into an FTA.
- Mechanism to ratify the FTA by parliament: The executive should place the FTA on the floor of Parliament for a certain duration, allowing Parliament to debate it, before ratifying it.
Conclusion
- While the executive’s constitutional prerogative of entering into an FTA or international treaties, in general, is indisputable, this power should be exercised in a manner that makes the executive answerable. After all, an integral facet of democracy is to hold the executive to account for its actions. It should be no different for negotiating international treaties including FTAs.
November 17, 2022