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Subject: International Relations

  • India-Australia soon to have FTA

    India and Australia are expected to complete negotiations for an interim free trade agreement (FTA) soon, a move aimed at boosting economic ties between the two countries.

    Comprehensive Economic Cooperation Agreement (CECA)

    • The final agreement is officially dubbed as the CECA is expected to be completed by the end of 2022.
    • The pact covers areas such as goods, services, investment, rules of origin, customs facilitation, legal and institutional issues.
    • This new strategic economic agreement is expected to increase bilateral trade in goods to $100 billion within five years.

    What is a Free Trade Agreement (FTA)?

    • A FTA is a pact between two or more nations to reduce barriers to imports and exports among them.
    • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
    • The concept of free trade is the opposite of trade protectionism or economic isolationism.

    Key benefits offered by FTA

    • Reduction or elimination of tariffs on qualified: For example, a country that normally charges a tariff of 12% of the value of the incoming product will rationalize or eliminate that tariff.
    • Intellectual Property Protection: Protection and enforcement of intellectual property rights in the FTA partner country is upheld.
    • Product Standards: FTA enhances the ability for domestic exporters to participate in the development of product standards in the FTA partner country.
    • Fair treatment for investors: FTA provides treatment as favorably as the FTA partner country gives equal treatment for investments from the partner country.
    • Elimination of monopolies: With FTAs, global monopolies are eliminated due to increased competition.

    How many FTAs does India have?

    • India has signed it’s first Free Trade Agreement (FTA) with Sri Lanka in 1998.
    • Likewise, India had FTAs with: Nepal, Bhutan, Thailand, Singapore, ASEAN, Japan and Malaysia.
    • India has signed Preferential Trade Agreements such as:
    1. Asia Pacific Trade Agreement (APTA) with Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka
    2. Global System of Trade Preferences (GSTP)
    3. India – MERCOSUR PTA etc. with South American countries

    Back2Basics: Types of Trade Agreements

    (1) Free Trade Agreement

    (discussed above)

    (2) Preferential Trade Agreement

    • In this type of agreement, two or more partners give preferential right of entry to certain products.
    • This is done by reducing duties on an agreed number of tariff lines.
    • Here a positive list is maintained i.e. the list of the products on which the two partners have agreed to provide preferential access.
    • Tariff may even be reduced to zero for some products even in a PTA.
    • India signed a PTA with Afghanistan.

    (3) Comprehensive Economic Partnership Agreement

    • Partnership agreement or cooperation agreement are more comprehensive than an FTA.
    • CECA/CEPA also looks into the regulatory aspect of trade and encompasses and agreement covering the regulatory issues.
    • CECA has the widest coverage. CEPA covers negotiation on the trade in services and investment, and other areas of economic partnership.
    • It may even consider negotiation on areas such as trade facilitation and customs cooperation, competition, and IPR.
    • India has signed CEPAs with South Korea and Japan.

    (4) Comprehensive Economic Cooperation Agreement

    • CECA generally cover negotiation on trade tariff and Tariff rate quotas (TRQs) rates only.
    • It is not as comprehensive as CEPA.
    • India has signed CECA with Malaysia.

    (5) Framework Agreement

    • Framework agreement primarily defines the scope and provisions of orientation of the potential agreement between the trading partners.
    • It provides for some new area of discussions and set the period for future liberalisation.
    • India has previously signed framework agreements with the ASEAN, Japan etc.

    (6) Early Harvest Scheme

    • An Early Harvest Scheme (EHS) is a precursor to an FTA/CECA/CEPA between two trading partners. For example, early harvest scheme of RCEP has been rolled out.
    • At this stage, the negotiating countries identify certain products for tariff liberalization pending the conclusion of actual FTA negotiations.
    • An Early Harvest Scheme is thus a step towards enhanced engagement and confidence building.

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  • An opportunity for Digital India

    Context

    India is pioneering the concept of digital public goods, with it, there is an opportunity for India to embark on digital diplomacy.

    Digital public goods in India

    • Built on the foundation of Aadhaar and India Stack, modular applications, big and small, are transforming the way we make payments, withdraw our PF, get our passport and driving licence and check land records, to name just a few activities.
    • There is an opportunity for India to embark on digital diplomacy — to take its made-in-India digital public goods to hundreds of emerging economies across the world.

    How Digital Diplomacy can help India?

    • This could be a strategic and effective counter to China’s Belt and Road Initiative.
    • Enhancing the productivity of emerging economies: Emerging economies are characterised by gross inefficiencies in the delivery of government services and a consequent trust deficit.
    • Digital public goods spread speed, transparency, ease and productivity across the individual-government-market ecosystem and enhance inclusivity, equity and development at scale.
    • Acceptance in emerging economies: India’s digital diplomacy will be beneficial to and welcomed by, all emerging economies from Peru to Polynesia, from Uruguay to Uganda, and from Kenya to Kazakhstan.
    • Goodwill: It will enable quick, visible and compounding benefits for India’s partner countries and earn India immense goodwill.

    Benefits of Digital diplomacy

    • Reusability: The code is highly reusable
    • Low cost: The cost of setting up an open source-based high school online educational infrastructure, to supplement the physical infrastructure, for an entire country is less than laying two kilometres of high-quality road.
    • No debt trap: The investments required for transporting digital public goods are minuscule in comparison and there is no chance of a debt trap.
    • Short gestation period: Unlike physical infrastructures such as ports and roads, digital public goods have short gestation periods and immediate, and visible impact and benefits.
    • It plugs leaks: Digital infrastructure plugs leaks.
    • It eliminates ghost beneficiaries of government services, removes touts collecting rent, creates an audit trail, makes the individual-government-market interface transparent and provides efficiencies that help recoup the investments quickly.
    • Processes get streamlined and wait times for any service come down dramatically.
    • Increases productivity: Productivity goes up and services can be scaled quickly.
    • Benefits can be rapidly extended to cover a much larger portion of the population.
    • Compounding instead of depreciation: Above all, the digital public goods infrastructure compounds while physical infrastructure depreciates.

    Three ways in which digital public goods infrastructure compound

    • Compounding happens for three reasons.
    • [1] Growth of technologyy: Chips keep becoming faster, engines more powerful, and gene-editing technology keeps improving.
    • [2] Network effect: As more and more people use the same technology, the number of “transactions” using that technology increase exponentially — be it Facebook posts or UPI transactions.
    • [3] Rapid creation of new layers of technology: For example, the hypertext protocol created the worldwide web.
    • Then the browser was built on top of it, which made the worldwide web easier to navigate and more popular.
    • Thousands of new layers were added to make it what it is today.
    • Growth of UPI in India: To give an example, consider the surge in UPI-based payments in India.
    • This kind of growth doesn’t happen with a few entitled and privileged people using UPI more and more; it happens with more and more people using UPI more and more.
    • Use of Diksha: The use of Diksha, the school education platform built on the open-source platform Sunbird, has followed the same trajectory — today close to 500 million schoolchildren are using it.

    Conclusion

    Made in India digital tools can help other emerging economies deal with economic, governance challenges.

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  • A lack of political will to end the Palk Bay conflict

    Context

    The arrest of 68 Indian fishermen by the Sri Lankan authorities between December 18 and 20 and the impounding of 10 boats for “poaching” in the territorial waters of Sri Lanka has flared up the conflict between the two countries.

    About Palk Bay

    • Palk Bay is home to diverse resources including 580 species of fish, extends from Point Calimere of Nagapattinam district to Mandapam-Dhanushkodi of Ramanathapuram district over about 250 km.
    • Source of dispute: It is an important marine zone between south-eastern India and northern Sri Lanka, has been a source of dispute for long.

    About the conflict

    • Negotiations: The genesis of the dispute can be traced to the October 1921 negotiations between representatives of the Governments of Madras and Ceylon, on the need for the delimitation of the Palk Strait and the Gulf of Mannar.
    • Delimitation: It was in the mid-1970s that two agreements were signed by India and Sri Lanka, under which the International Maritime Boundary Line (IMBL) came into being.
    • Instead of settling the issues, the pacts gave way to new problems, including the recurring incidents of Tamil Nadu fishermen crossing the IMBL and getting caught by the Sri Lankan authorities.

    Cause of the problem

    • Different fishing practices: The asymmetric nature of fishing practices in Tamil Nadu and the Northern Province of Sri Lanka is said to be the cause of the problem.
    • While Tamil Nadu’s fishing community uses mechanised bottom trawlers, its counterpart uses conventional forms of fishing, as trawling is banned in Sri Lanka.
    • Difference in resources: The fishermen of Tamil Nadu continue to cross the IMBL, as the Sri Lankan side of the Bay is considered to have more fishery resources than the Indian side.

    Way forward

    • Weak away fishermen from trawling: The deep-sea fishing project,  to wean away the fishermen of Tamil Nadu from bottom trawling, launched in July 2017, has not yielded the desired results.
    • Relaxation of norms of the project is under the consideration of the Union Government, to draw greater response from the fishermen.
    • Motivation for deep-sea fishing: Given the fact that deep sea fishing takes longer duration and has a higher recurring cost per voyage than what the fishing community experiences currently, the need for providing continuous motivation to the fisherfolk assumes critical importance.
    • Other strategies: Various strategies, including the promotion of seaweed cultivation, open sea cage cultivation, seaweed cultivation and processing, and sea/ocean ranching should be adopted.
    • Forming FPOs: There is a view that if the community is encouraged to form fish farmer producer organisations, it may take to sustainable fishing practices.
    • Institution of stakeholders: A section of specialists favours the creation of an international institution of stakeholders for regulating the fishing sector in the Bay.

    Consider the question “What leads to the dispute between India and Sri Lanka over the Palk Bay? Suggest the way forward for fishermen in Tamil Nadu.”

    Conclusion

    For all this to happen, sustained public pressure and political will are a must.

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    Back2Basics: What is bottom trawling?

    • A bottom trawl consists of a large tapered net with a wide mouth and a small enclosed end.
    • The mouth of a trawl net has two weighted doors that serve not only to keep the net open, but also to keep the net on the ocean floor.
    • These doors can weigh several tons.
    • In addition to the heavy doors, the bottom of the net is a thick metal cable (footrope) studded with heavy steel balls or rubber bobbins that effectively crush everything in their path.
    • As the net drags along the seafloor, living habitat in its path is crushed, ripped up, or smothered as the seabed is turned over.
  • Vying for influence over Kabul

    Context

    On December 19, Pakistan hosted a special session of the Organisation of Islamic Cooperation (OIC) to address the crisis in Afghanistan.

    The humanitarian crisis in Afghanistan and how regional countries are responding to it

    • The humanitarian crisis in Afghanistan is peaking with no basic amenities available for its population and a harsh winter ahead.
    • While Pakistan hosted the OIC, India played host to foreign ministers of Central Asian states where Afghanistan topped the agenda as well.
    • All the attending countries — Kazakhstan, Uzbekistan, Tajikistan, Turkmenistan, and Kyrgyzstan — also OIC members, chose to prioritise deliberations with New Delhi.

    Qatar’s growing influence in Afghanistan and implications for the region

    • Saudi Arabia, the UAE, and Pakistan were the only three countries that had officially recognised the previous Taliban government in 1996, until its fall in 2001.
    • Fast forward to the 2010s, and it was the small but rich state of Qatar that became the mediating force on Afghanistan.
    • Doha hosted the official Taliban political office from 2013 to allow negotiations with the U.S.
    • Qatar’s new role on Afghanistan gave it significant diplomatic and political visibility the world over.
    • In West Asia, Qatar’s growing influence was causing unease in the traditional power centres in Abu Dhabi and Riyadh, specifically on issues such as the Qatari leadership’s support for political Islam and organisations such as the Muslim Brotherhood.

    Fundamental changes

    • Economic blockade: In 2017 the UAE and Saudi Arabia initiated an economic blockade against Doha in the hope of reigning the Kingdom in and disallowing it from pursuing its geopolitical designs that were challenging the long-held power status quos.
    • This four-year long impasse ended in 2021.
    • These four years created fundamental changes within the larger Arab Gulf construct.
    • Qatar mitigated risk and moved closer towards Turkey and Iran.
    • Today, both Qatar and Turkey are bidding to operate a landlocked Afghanistan’s airports under the Taliban regime.
    • For the Gulf specifically, Qatar’s punching-above-its-weight approach in geopolitics was also making it more powerful and influential with Washington D.C.
    • To mitigate this, the Saudis played a central role during the recent OIC special session.
    •  They repaired their broken relationship with Pakistan.

    Way forward for India

    • Over the past decade, India has recognised the importance of middle powers in the Arab Gulf to a fast-evolving global order, from fighting against terrorism to newer diplomacy challenges such as Afghanistan.

    Conclusion

    The Arab Gulf is poised to become an important player once again in Afghanistan under the shadow of the Taliban.

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  • [Burning Issue] India-Japan Ties in Recent Times

    Introduction

    India’s growing economic strength in recent years has seen it adopting its foreign policy to increase its global influence and status and to meet the challenges of the 21st century. In the past few years, New Delhi has expanded its strategic vision, most noticeably in Asia, and has broadened the definition of its security interests. As a result, India-Japan relations have undergone a paradigmatic shift which has seen an attempt to build a strategic and global partnership between the two countries.

    Background of India-Japan Ties

    [I] Ancient times

    • The friendship between India and Japan has a long history rooted in spiritual affinity and strong cultural and civilization ties dating back to the visit of Indian monk Bodhisena in 752 AD.
    • The people of India and Japan have engaged in cultural exchanges, primarily as a result of Buddhism, which spread indirectly from India to Japan, via China and Korea.

    [II] India’s freedom movement

    • Independence movement: The leader of the Indian Independence Movement, Rash Behari Bose was instrumental in forging India–Japan relations during India’s independence movement.
    • During World War II, The British occupiers of India and Japan were enemies during World War II.  Subhas Chandra Bose used Japanese sponsorship to form the Azad Hind Fauj or Indian National Army (INA).

    [III] Present times

    • Pokhran nuclear test: In 1998, Japan imposed sanctions on India following the Pokhran-II, an Indian nuclear weapons test, which included the suspension of all political exchanges and the cutting off of economic assistance. These sanctions were lifted three years later.
    • Both nations share core values of democracy, peace, the rule of law, tolerance, and respect for the environment in realising pluralistic and inclusive growth of the region

    Post cold war relations

    • The end of cold war and the collapse of the Soviet Union, and the inauguration of economic reforms in India seemed to mark the beginning of a new era in Indo-Japanese relationship.
    • India’s “Look East Policy” posited Japan as a key partner.
    • Japan being the only victim of nuclear holocaust, Pokhran –II tests of India in May 1998 brought bitterness in the bilateral relations where Japan asked India to sign NNPT.
    • Tokyo’s relation with India showed signs of an upswing when Prime Minister Yoshiro Mori came on an official 5 day visit to India in August 2000.

    Recent developments in India-Japan Relationship

    (1) India-Italy-Japan trilateral partnership

    • Recently, Italy has also begun to signal its intention to enter the Indo-Pacific geography.
    • It has done so by seeking to join India and Japan in a trilateral partnership.
    • Italy has become more vocal on the risks emanating from China’s strategic competitive initiatives.
    • On the Indian side, there is great interest in forging new partnerships with like-minded countries interested in preserving peace and stability in the Indo-Pacific.

    (2) 2+2 Ministerial Dialogue

    • The 2+2 ministerial dialogue is seen as an upgrade of the meeting between foreign and defense secretaries of the two countries, the first round of which took place in 2010.
    • The ministerial level meeting was held after a decision to institute a Foreign and Defense Ministerial Dialogue was taken during the 13th India-Japan Annual Summit held in Japan in 2018.
    • 2+2 meeting aimed to give further momentum to their special strategic partnership, particularly in the maritime domain.

    (3) Supply Chain Resilience Initiative

    • Recently India, Australia and Japan formally launched the Supply Chain Resilience Initiative. The initiative was launched to counter the dominance of China in the Global Supply Chain.
    • It aims to prevent disruptions in the supply chain as seen during COVID-19 pandemic.
    • The initiative will mainly focus on diversification of investment and digital technology adoption.

    (4) Other MEA led-bilateral dialogues

    • The Act East Forum, established in 2017, aims to provide a platform for India-Japan collaboration under the rubric of India’s “Act East Policy” and Japan’s “Free and Open Indo-Pacific Vision”.
    • At the Second meeting of the Act East forum, both sides agreed to focus on expanding of Japanese language in North East, training of caregivers under Technical Intern Training Program (TITP), capacity building in area of bamboo value chain development and Disaster Management.
    • The inaugural India-Japan Space Dialogue was held in Delhi for enhancing bilateral cooperation in outer space and information exchange on the respective space policies.

    (5) Currency Swap Agreement

    • Japan and India have entered into a $75-billion currency swap arrangement that will bolster the country’s firepower as it battles a steep drop in the rupee’s value.
    • A currency swap is an agreement between two parties to exchange a series of cash flows denominated in one currency for those denominated in another for a predetermined period of time.
    • The deal will help the two countries to swap their currencies for U.S. dollars to stabilise the rupee which has witnessed the steepest fall in recent years.

    Areas of cooperation

    (1) Economic and Commercial relations

    • Japan is regarded as a key partner in India’s economic transformation.
    • Japan’s interest in India is increasing due to a variety of reasons including India’s large and growing market and its resources, especially the human resources.
    • India’s bilateral trade with Japan stood at US$ 16.95 billion in FY 2019-20. India’s imports during this period were US$ 12.43 billion and exports were US$ 4.52 billion.
    • India’s primary exports to Japan are petroleum products, chemicals, elements, compounds, non-metallic mineral ware, fish & fish preparations, metalliferous ores & scrap, clothing & accessories, iron & steel products, textile yarn, fabrics and machinery etc.
    • India’s primary imports from Japan are machinery, electrical machinery, iron and steel products, plastic materials, non-ferrous metals, parts of motor vehicles, organic chemicals, etc.

    Investment and Official Development Assistance (ODA)

    • From 2000 until September 2020, the Japanese investments in India cumulatively stands at around US$ 34.152 billion (Japan ranks fifth among the largest source of investment).
    • Japanese FDI during FY 2019-2020 increased to US$ 3.226 billion compared to US$ 2.96 billion in FY 2018-19.
    • The number of Japanese companies registered in India stands at more than 1460. Similarly, number of Indian companies operating in Japan is also increasing, with the number now over 100.
    • The Mumbai-Ahmedabad High Speed Rail, Western Dedicated Freight Corridor (DFC), Delhi-Mumbai Industrial Corridor (DMIC) with twelve industrial townships, Chennai-Bengaluru Industrial Corridor (CBIC) are some mega project with Japanese cooperation on the anvil.

    (2) Security and Defence

    • India-Japan Defence and Security partnership has evolved over the years and today forms an integral pillar of bilateral ties.
    • QUAD: Formed in 2007 and revived in 2017 The Quadrilateral Security Dialogue (QSD, also known as the Quad) is an informal strategic dialogue between the United States, Japan, Australia and India.
    • The dialogue was paralleled by joint military exercises of an unprecedented scale, titled Exercise Malabar.
    • The diplomatic and military arrangement was widely viewed as a response to increased Chinese economic and military power.
    • In spite of the pandemic, complex exercises in all domains were conducted including MALABAR 2020, Japan India maritime exercise (JIMEX 2020) and PASSEX, showcasing the trust and interoperability between the navies.

    (3) Strategic

    • After the cold war Japan looked out to extend its diplomatic options beyond US and India became the best option possible.
    • 2+2 dialogue is taking place between the foreign and defence ministers of the two countries to deepen the global partnership.
    • It is also agreed to establish the India–Japan–United States trilateral dialogue on regional and global issues of shared interest.
    • Both countries also reiterated their determination to work together under the UNFCCC, WTO, etc.
    • Japan and India are working together to realize the reform of Security Council at the earliest.
    • There is a beginning of India-Japan-Australia trilateral dialogue to evolve an open, inclusive, stable and transparent economic, political and security architecture in the indo-pacific region.

    (4) India-Japan Digital Partnership (IJDP) and Start-up Hub

    • The MOC on Digital Partnership envisaged cooperation in five sub-areas:

    1) Start-up Initiative

    2) Corporate Partnership

    3) ESDM promotion

    4) Digital talent exchange

    5) R&D Cooperation

    6) Security related strategic collaboration

    (5) Disaster Risk Reduction

    • An Agreement on joint research in the field of Earthquake Disaster Prevention was signed between Fujita Corporation and Indian Institute of Technology, Roorkee (IIT-R).

    (6) Skill Development

    • India-Japan MoC signed in 2016 to train 30,000 shop floor leaders over 10 years thereby also contributing to India’s flagship initiatives such as “Skill India” and “Make in India”.
    • Japanese companies have established 13 Japan-India Institute of Manufacturing (JIM) in India and 5 Japanese Endowed Courses (JEC) in Indian Engineering Colleges.

    (7) Health-care

    • In view of the similarities and synergies between the goals and objectives of India’s AYUSHMAN Bharat Programme and Japan’s AHWIN, both sides consulted with each other to identify projects to build the narrative of AHWIN for AYUSHMAN Bharat.
    • Japan is supporting India to contain COVID-19 and mitigate its adverse socioeconomic impacts by extending budgetary support to the GoI and implementing emergency response programs for the health sector.

    (8) Education Cooperation

    • As on December 2020, there were over 300 academic and research partnerships (including student exchanges) between more than 70 universities/institutes of Japan and around 105 universities/institutes of India.
    • These partnerships range from liberal arts to management & business studies, legal studies, international studies, linguistics, ayurveda, STEM including fast emerging frontier technologies.
    • The students & teacher exchange and scholarship programmes, especially short-term, are enabling a large number of Indian students and teachers to visit and experience Japan and vice versa.

    (9) S&T Cooperation

    • Bilateral S&T cooperation was formalized through an Inter-Governmental Agreement signed in 1985.
    • Recent initiatives – three India-Japan Joint Laboratories in the area of ICT (AI, IoT and Big Data) and initiation of Dept. of Science and Tech (DST)-Japan Society for the Promotion of Science Fellowship Programme for the young researchers.

    (10) Energy

    • The two sides have launched an Energy Dialogue to promote cooperation in the energy sector in a comprehensive manner.
    • The areas of cooperation include oil and natural gas, coal, electric power, renewable energy sources, energy efficiency and other relevant sectors.
    • In 2015, India and Japan reached on substantive Agreement on Cooperation in the Peaceful Uses of Nuclear Energy. India becomes the first non NPT signed country to do so.

    What lies at the fulcrum of ties?

    • First of all, Japan is the most mature economy in this region. In terms of maturity, sophistication, and experience in international economic engagements, Japan excels every other country of the Indo-Pacific region, excluding the United States.
    • Its technological marvels, business strategies, and management skills are second to none.
    • Japan rarely hits the international headlines and it is actually Japan’s feebleness in the world of political advertisements.
    • Japan sooner than later will be a leading player in the political economy as well as security fields of the Indo-Pacific region.
    • Its aging population is a major concern and Japan very well acknowledges this fact. While increasing the domestic birth rate will always be important, it is a position to devise a new immigration policy that would largely benefit Indians.
    • Japan has the distinction of being the only foreign power that has been allowed to undertake infrastructure and other projects in India’s sensitive northeast.
    • Finally, Japan has never been an adversary of India and the current global as well as regional distribution of power and strategic scenario necessitate a deeper and expansive Indo-Japan strategic teamwork.

    Way forward

    • Taking advantage of its considerable assets — the world’s third-largest economy, substantial high-tech skills, and a military freed of some legal and constitutional constraints — Japan is largely perceived as a natural ally to India.
    • At a time of global geopolitical flux, the two are among the important countries that have taken up the baton to champion freedom, international norms and rules, inclusivity, and free and fair trade.
    • If Japan and India continue to add concrete security content to their relationship, their strategic partnership could potentially be a game-changer in Asia.
    • The emphasis on boosting trade and investment must be balanced with greater strategic collaboration.
    • Both countries can contribute to the larger effort to build strategic equilibrium, power stability and maritime security in the Indo-Pacific.
    • India and Japan have forged a special relationship, which is set to strengthen and deepen in the coming years.

  • A chance to tap India’s high equity in Myanmar

    Context

    The recent short visit to Myanmar by India’s Foreign Secretary had a clearly-etched mandate: to deepen cooperation with an important neighbour. His mission succeeded to a large extent, but challenges remain.

    Background of the current political scenario in Myanmar

    • Transition to democracy and derailment: Since the military coup on February 1, 2021, the international community has stayed divided on how to address the derailment of Myanmar’s transition to democracy.
    •  For a decade, the country’s system based on power-sharing between the military and elected representatives ran well enough.
    • An overwhelming electoral victory of the National League for Democracy (NLD) led by Daw Aung San Suu Kyi in November 2020, unnerved the military leadership.
    • The Tatmadaw (Myanmar’s military) moved faster, seizing power in violation of the Constitution and putting down the Opposition with an iron hand.
    • Global reaction: Global dismay was evident in the western sanctions, but others such as Russia saw the opportunity to strengthen ties with the new rulers.
    • China took urgent steps to stabilise and expand cooperation with the military regime.
    • The Association of Southeast Asian Nations (ASEAN) first showed creativity through its ‘Five-Point Consensus’ formula, but later its unity stood damaged once Myanmar’s top leader Senior General Min Aung Hlaing refused to cooperate.

    India’s position and bilateral concerns

    • In Indian foreign Secretary Mr. Shringla visit he succeeded in holding substantive discussions with various stakeholders.
    • India’s position: India’s position, as conveyed to Myanmar, is similar to and supportive of ASEAN: release of political prisoners; resolution of issues through dialogue; cessation of “all violence”; and full cooperation with ASEAN.
    • Assistance for capacity building: In recent years, India has assisted Myanmar through capacity-building programmes for strengthening the transition to democracy.
    • This assistance remains available, but it is not an offer of mediation by India in the military-NLD conflict.
    • This burden will have to be borne by ASEAN.
    • India’s concerns: India’s principal concerns pertaining to border security and stability in its neighbourhood were clearly conveyed, especially the noticeable escalation of activities of anti-India insurgent groups.
    • Refugee issue: The second issue — the outcome of Myanmar’s instability — is that of refugees. Several thousands of Myanmar people have sought shelter in Mizoram.
    • This will only be reversed by a political settlement in Myanmar, through dialogue.
    • Economic cooperation: Economic cooperation has always been a major agenda item in all bilateral discussions with Myanmar.
    • Central to this is India’s long-delayed commitment to “expeditious implementation” of mega initiatives such as the Trilateral Highway and Kaladan projects.

    Way forward

    • China is not the only friend: India continues to have high equity in Myanmar, which it must now carefully leverage.
    •  It is reflected in the special gesture made by Senior General Min Aung Hlaing to receive Mr. Shringla and hold detailed discussions in Yangon. This is unusual.
    • The protocol departure for Mr. Shringla revealed current political realities which should be carefully factored in against the argument that China is the only friend Myanmar has.
    • Leverage the gainst of the visit: India can leverage the gains of this visit and keep up the momentum by inviting Myanmar’s Foreign Minister at an appropriate time as well as other important stakeholders to India for deliberations with their counterparts here.

    Conclusion

    The single goal should be to put Myanmar back on the path of becoming “a stable, democratic and federal union.

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  • Trincomalee Oil Farms Deal

    After a year of negotiations, Sri Lanka will ink the deal with India to jointly develop the Trincomalee oil tank farms — a coveted project that has remained controversial for decades.

    About Trincomalee oil field

    • The facility, built by the British around World War II as a refueling station, has 99 storage tanks that look like giant wells.
    • They have a capacity of 12,000 kilolitres each.
    • Eighty-four of those are in the 800-acre Upper Tank Farm (UTF). For a good part of a century now, these tanks have remained unused, shrouded in a forest.
    • The Lower Tank Farm (LTF) has 16 tanks, spread across 50 acres.

    Historical background

    • Trincomalee harbor is the second deepest natural harbor in the world.
    • The British who were in control of the island decided to make this as their primary logistics station in the east after World War I.
    • It is also a lesser-known but important logistic station during World War II.
    • British started the oil storage project in 1924 and completed in late 1930s.
    • After that it was abandoned by the British in 1948 when Sri Lanka gained independence.
    • In 2002, the development of this tank farm was revived by an Indian company Indian Oil Corporation (IOC).

    History of India’s interest in Trincomalee

    • The development of the Trincomalee Oil Tank farm has been a recurring talking point in Indo-Lanka relations since 1987.
    • It was first mentioned in the Indo- Lanka Accord signed by PM Rajiv Gandhi and President Jayewardene.
    • Despite that, nothing really took off until 2003, when Indian Oil Corporation set up Lanka IOC, its Sri Lankan subsidiary.
    • The agreement remained dormant for years, until the Sirisena- Wickremesinghe administration tried revisiting it through the 2017 MoU.

    Significance of Trincomalee

    • Demography: Trincomalee is home to 3.7 lakh Muslim, Tamil and Sinhala people and Trincomalee, in Sri Lanka’s post-war years.
    • Tourism: It has emerged as a favorite destination for surfers from around the world, gradually transforming with plush resorts and restaurants dotting its coast.
    • Important sea route: Trincomalee remains in spotlight as a potential transit point for international trade routes, particularly drawing India which has known strategic interests there.
    • Balancing China: From India’s geostrategic viewpoint, Trincomalee is an important counterbalance to the southern Hambantota Port backed substantially by China.

    Hurdles to the Project

    • Public resistance: India-backed projects in Sri Lanka tend to draw way more public resistance from nationalists among the majority Sinhalese constituency than projects with Chinese or American involvement.
    • Anti-India sentiments: Observers in Sri Lanka attribute this to the “baggage” that Indian diplomacy carries, years after its intervention during different stages of Sri Lanka’s civil war.

     

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  • India is keeping an eye on Central Asia

    Context

    The government is inviting the leaders of the five Central Asian countries — Tajikistan, Uzbekistan, Turkmenistan, Kazakhstan and Kyrgyzstan — as guests for Republic Day on January 26.

    Significance of Central Asian region for India

    • Return of Taliban in Afghanistan: The Taliban takeover in Afghanistan has made Central Asia a region where great contestations for influence are unfolding.
    • There is a growing awareness that for leveraging influence in Kabul and harvesting that influence in the form of material gains, a firm footing in Central Asia is a prerequisite.
    • Economic dimension: Given the vast untapped mineral wealth of the region encompassing the five Central Asian countries and Afghanistan — estimated to be worth a few trillion dollars — there is a significant economic dimension to the unfolding saga.
    • Geopolitical angle: Washington hopes to create in Central Asia a vector of its Indo-Pacific strategy to contain China and Russia. At the same time, governments in Moscow and Beijing are circling the wagons.

    Suggestions for India

    • India needs to work on an intricate network of relationships with the regional states while remaining mindful of the “big picture”.
    • Delhi’s non-aligned mindset needs to be turned into a strategic asset to navigate its long-term interests.
    • India’s membership of the BRICS and SCO will help.
    • Cooperation of  Russia and China: The deepening of the traditional Indo-Russian mutual understanding has injected dynamism into Delhi’s regional strategy on the whole.
    •  It is bound to have a calming effect on India’s tensions with China.
    • Delhi cannot have an effective Central Asia strategy without the cooperation of these two big powers.
    • Regional connectivity: India can use the card of regional connectivity to stimulate partnerships.
    • The time may have come to reopen the files on the TAPI and IPI gas pipeline projects. Both involve Pakistan.
    • Normalisation of India-Russia ties: Russia is well-placed to act as guarantor and help build both these pipelines, while China too will see advantages in the normalisation of India-Pakistan ties.

    New geoeconomic partnership

    • Recently concluded third meeting of the India-Central Asia Dialogue in Delhi served a purpose to sensitise the Central Asian interlocutors that it attaches primacy to geoeconomics.
    • But India will have a challenge on its hands to flesh out the “4Cs” concept that External Affairs Minister S Jaishankar presented at the event — commerce, capacity enhancement, connectivity, and contact being the four pillars of a new geoeconomic partnership.
    • The key areas are transit and transport, logistics network, regional and international transport corridors, free trade agreements, manufacturing industry and job creation.
    • They ought to be front-loaded into India’s Central Asian strategy.
    • Certainly, the EAEU integration processes must be speeded up.

    Consider the question “With changing geopolitical scenario, India’s stake in Central Asia has drastically increased. In the context of this, examine India’s outreach efforts toward the region and the challenges it faces in it.”

    Conclusion

    A host of new possibilities open up if India’s initiative on Central Asia runs on a parallel track with an improvement in relations with China.

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  • Why the Russia-West equation matters to India

    Context

    Thirty years ago this week, the Soviet Union collapsed — after seven decades of an expansive global role. Few countries have been as significant as Russia for modern India’s evolution.

    Impact of Russian geopolitics on India’s worldviews

    • Russia’s relations with the West have always had consequences for India’s international relations.
    • India’s fear of a unipolar world dominated by the US: After the collapse of the USSR in December 1991, the loss of the long-standing Soviet ally left Delhi in fears of a unipolar world dominated by the US.
    • These anxieties were accentuated by post-Soviet Russia’s quick embrace of the US and the West.
    • However, by the turn of the millennium, relations between Russia and the West had begun to sour.
    • That drew India once again closer to Russia.
    • Russia’s growing closeness to China: Moscow also roped in Beijing to build a new coalition — the RIC — to promote a multipolar world that would limit the dangers of American hyperpower.
    • Improvement in India-US relations: India’s fears of the unipolar moment turned out to be overblown and Delhi’s ties with Washington began to see rapid improvement since 2000.
    • The upswing in India’s ties with America, however, coincided with a steady downturn in the relations between Russia and the US.

    Tension between Russia and the West

    • The continuous escalation of tensions between Russia and the West culminated in the last few weeks in Ukraine — at the heart of Europe.
    • Moscow’s military mobilisation on the frontier with Ukraine — that was part of the Soviet Union until 1991 — raised alarm bells of a new war between the forces of Russia and the US-led European military alliance, North Atlantic Treaty Organisation (NATO).
    • Last week, Russia presented several proposals for a new European security architecture.
    • Moscow is calling for an end to NATO’s further eastward expansion.
    • Moscow also wants NATO to rescind its earlier promise to make Ukraine and Georgia — two former Soviet Republics — members of the military alliance.

    Major compromises between US and Russia

    • The resolution of US-Russian differences, however, involves some major compromises.
    • Russia aware of the over reliance on China: While Russia has demonstrated that its interests can’t be simply ignored by the West, it also recognises the costs of a prolonged confrontation with the US and Europe and the dangers of relying solely on China to secure its geopolitical interests.
    • Russia seeking accommodation with US and Europe: While Moscow is unlikely to abandon the partnership with China, there is no doubt that an accommodation with America and Europe is a high priority for Russia.
    • US to focus on China challenge: The US, which is now focused on the China challenge, appears interested in easing the conflict with Russia.
    • Despite its extraordinary military resources, Washington can’t afford to fight in both Asia (with China) and Europe (with Russia).

    Implications for India

    • Role of ideological sentiment: While coping with the complex dynamic of Russia’s relations with the West has been an enduring element of independent India’s foreign policy, Delhi’s thinking on Russia has too often been coloured by ideological sentiment.
    • In Delhi, the tendency is to over-determine Russia’s contradictions with the West.
    • It is not Russia’s national destiny to forever confront the West.
    • Russia’s current problems with the West are not about ideological principles.
    • It is about the terms of an honourable accommodation.
    • Prior to the 1917 revolution, Russia was a leading part of the European great power system.
    • Delhi can’t influence the new effort to build a mutually acceptable security order in Europe, but it can welcome and support it.
    • Role of Asian geopolitics: That the pressure for this attempted reset in Russia’s relations with the West is coming from Asian geopolitics is of some significance.
    • A reconciliation between Russia and the West will make it a lot easier for India to manage its own security challenges.

    Conclusion

    Delhi knows that stabilising the Asian balance of power will be difficult without a measure of US-Russian cooperation in Europe. If Moscow — at odds with the West in the last two decades — deepens its current close alignment with Beijing, it will be a lot harder to prevent Chinese dominance over Asia.

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  • India- Sri Lanka Fisherman Issue

    The Sri Lankan Navy has seized eight Indian fishing vessels and arrested 55 fishermen on the charge of poaching.

    What is the issue?

    • As in the past, fishermen from Rameswaram and nearby coasts continue to sail towards Talaimannar and Katchatheevu coasts, a region famous for rich maritime resources in Sri Lanka.
    • Indian boats have been fishing in the troubled waters for centuries and had a free run of the Bay of Bengal, the Palk Bay and the Gulf of Mannar until 1974 and 1976.
    • Treaties were later signed between the two countries to demarcate the maritime boundary — the ‘International Maritime Boundary Line'(IMBL).

    Issues for Sri Lanka

    • Proliferation of Trawlers: The overuse of mechanized trawlers in Palk Bay is damaging the marine ecosystem in SL waters.
    • Breach of sovereignty: There were many favorable reasons too for Indian fishermen as their access to Sri Lankan waters was easier at the time of Sri Lankan civil war.
    • Porous borders: Maritime boundaries were never tightly guarded as a result, Indian trawlers continue to routinely enter Lankan waters for fishing.
    • End of Civil War: Everything changed in 2009 with the end of civil war. Arrests and attacks increased on Indian fishermen as they continued entering Lankan waters because of depletion of marine resources on the Indian side.

    Fishermen’s concern:

    (1) Depletion of fisheries

    • There is a depletion of fisheries on the Indian side, so Indian fishermen cross into Sri Lankan waters thus denying the livelihood of their counterparts.
    • They deliberately cross the territorial waters even at the risk of getting arrested or shot dead by the Sri Lankan Navy.
    • Sri Lankan fishermen across Palk Bay are concerned over similar depletion on their side (where there is a ban for trawlers) because of poaching by Indian fishermen.

     (2) Rights over Katchatheevu Island

    • Tamil fishermen have been entering Sri Lankan waters nearby Katchatheevu island, where they had been fishing for centuries.
    • In 1974, the island was ceded to Sri Lanka after an agreement was signed by Indira Gandhi between the two countries without consulting the Tamil Nadu government.
    • The agreement allows Indian fishermen “access to Katchatheevu for rest, for drying of nests and for the annual St Anthony’s festival” but it did not ensure the traditional fishing rights.

    (3) Hefty fines

    • After some respite in the last couple of years, Sri Lanka introduced tougher laws banning bottom-trawling and put heavy fines for trespassing foreign vessels.
    • SL has increased the fine on Indian vessels found fishing in Sri Lankan waters to a minimum of LKR 6 million (about ₹25 lakh) and a maximum of LKR 175 million (about ₹17.5 Crore).
    • Quiet often, the fishermen are shot dead by SL marines.

    Fishermen issue in TN politics

    • It has been often a sensitive political issue in Tamil Nadu in the past one decade.
    • In a defiant speech in 1991, late CM Jayalalitha had called on the people of Tamil Nadu to retrieve the Katchatheevu Island.

    Way forward

    • Leasing: Two courses of action exist: (1) get back the island of Katchatheevu on “lease in perpetuity” or (2) permit licensed Indian fishermen to fish within a designated area of Sri Lankan waters and vice versa.
    • Licensing: The second course of action would persuade Colombo to permit licensed Indian fishermen to fish in Sri Lankan waters for five nautical miles from the IMBL.
    • Reconsidering old agreements: The 2003 proposal for licensed fishing can be revisited.
    • Looping in fishermen themselves: Arranging frequent meetings between fishing communities of both countries could be systematized so as to develop a friendlier atmosphere mid-seas during fishing.

    Conclusion

    • The underlying issues of the fisheries dispute need to be addressed so that bilateral relations do not reach a crisis point.
    • Immediate actions should be taken to begin the phase-out of trawling and identify other fishing practices.

     

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