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Subject: International Relations

  • Nepal once again raises Kalapani Boundary Issue

    Nepal has raised the Kalapani boundary dispute with India during the Joint Commission meeting of the Foreign Ministers.

    Q.The India-Nepal bilateral relations these days are increasingly seen through the lens of China factor. Examine.

    Kalapani Boundary Issue

    • Mapped within Uttarakhand is a 372-sq km area called Kalapani, bordering far-west Nepal and Tibet.
    • A treaty signed between Nepal and British India in 1816 determined the Makhali river, that runs through Kalapani, as the boundary between the two neighbours.
    • The Treaty of Sugauli concluded between British India and the Kingdom of Nepal in the year 1816, maps the Makhali River as the western boundary with India.
    • But different British maps showed the source of the tributary at different places which were mainly due to underdeveloped and less-defined surveying techniques used at that time.
    • However, the river has many tributaries that meet at Kalapani. For this reason, India claims that the river begins at Kalapani but Nepal says that it begins from Lipu Lekh pass, which is the source of most of its tributaries.
    • While the Nepal government and political parties have protested, India has said the new map does not revise the existing boundary with Nepal.
    • India claims that the river begins at Kalapani but Nepal says that it begins from Lipu Lekh pass, which is the source of most of its tributaries.

    Legal Dimension of Issue

    According to International Laws, the principles of avulsion and accretion are applicable in determining the borders when a boundary river changes course.

    • Avulsion: It is the pushing back of the shoreline by sudden, violent action of the elements, perceptible while in progress. Also, it can be defined as the sudden and perceptible change in the land brought about by water, which may result in the addition or removal of land from a bank or shoreline.
    • Accretion: It is the process of growth or enlargement by a gradual buildup. It is the natural, slow and gradual deposit of soil by the water.

    If the change of the river course is rapid – by avulsion – the boundary does not change. But if the river changes course gradually – that is, by accretion – the boundary changes accordingly.

    Since, the Gandak change, of course, has been gradual, India claimed Susta as part of their territory as per international laws.

    • On several occasions, India has tried to resolve the issue through friendly and peaceful negotiations, but the Nepali leadership has always shown hesitation in resolving the issue.
    • In Nepal, the issue has become a tool for arousing strong public sentiment against India. Therefore, resolving the issue may not be in the best interest of Nepal’s domestic politics.

    Significance for India

    • The Lipu Lekh pass serves strategic importance for India as a key point to monitor Chinese troop movement.
    • The link road via Lipulekh Himalayan Pass is also considered one of the shortest and most feasible trade routes between India and China.
    • The Nepalese reaction would probably have triggered in response to Chinese assertion.

    An undefined boundary claimed by Nepal

    • Nepal’s western boundary with India was marked out in the Treaty of Sugauli between the East India Company and Nepal in 1816.
    • Nepali authorities claim that people living in the low-density area were included in the Census of Nepal until 58 years ago.
    • Five years ago, Nepali Foreign Minister had claimed that the late King Mahendra “handed over the territory to India”.
    • By some accounts in Nepal, this allegedly took place in the wake of India-China War of 1962.

    Must read:

    [Burning Issue] India-Nepal Border Row

  • The ‘Difficult Four’ Countries

    A UK think-tank ‘Royal Institute of International Affairs’ has listed India in ‘Difficult 4’; clubs India with China, Saudi Arabia, and Turkey.

    This newscard helps analyse the Western esp. that of the EU’s perception of India and its global image under the present regime.

    What is the news?

    • A report called ‘Global Britain, Global Broker’ has warned the UK government to consider India as more of a rival that a cooperative partner.
    • It accepts the fact that India is set to be the largest country in the world by population very soon and will have the third-largest economy and defence budget at some point in this decade.
    • But it cautions that gaining direct national benefit from the relationship, whether economically or diplomatically, will be difficult for the UK government.
    • The report also accepts India’s importance to the UK as being “inescapable”.

    The ‘Difficult Four’

    • Clubbing India with China, Saudi Arabia and Turkey as the “difficult four”, the report says the Johnson government should be more realistic about developing deeper ties with India.
    • They may be important to the UK’s commercial interests, but they will be rivals or, at best, awkward counterparts on many of its global goals, the report warns.
    • India is now classed as a country, destined to count among the UK’s “rivals” or “awkward counterparts” as it pursues its global goals.

    India has had bitter (colonial) past

    • The think-tank strikes a note of caution over the two countries’ shared colonial history proving a stumbling block to the promise of a deeper relationship.
    • India has a long and consistent record of resisting being corralled into a ‘Western’ camp.
    • As a result, India is always on the list of countries with which a new UK government commits to engage.
    • But it should be obvious by now that the idea of a deeper relationship with India always promises more than it can deliver.
    • The legacy of British colonial rule consistently curdles the relationship.

    Indian flaws

    • The report points to India’s “complex, fragmented domestic politics”, which make it one of the countries resistant to open trade and foreign investment.
    • It highlights concerns raised by domestic groups as well as the UN over a “crackdown on human rights activists and civil society groups” not being actively challenged by the judiciary.
    • It raises concern over India’s pursuance of extreme right-winged policies. Indian domestic politics also has entered a more ethnic-nationalist phase, the report argues.
    • Against this backdrop, the report reflects on the prospect of including India within any new Democratic 10 or D10 coalition of 10 leading democracies.

    Try this question from 2019 CS Mains:

     

    Q.What are the challenges to our cultural practices in the name of secularism? (150W)

    UK’s resentment

    • In a critique of India’s diplomatic behaviour, the report points out that despite border clashes with China, “India did not join the group of countries that criticized China at the UN in July 2019 over HR violations in Xinjiang.
    • India has also been muted in its criticism of the passage of the new national security law in Hong Kong.

  • Europe’s China gambit will fall short of its stated goals

    Thought the article is not directly related to India, the conclusion of the investment treaty between the EU and China serves as the prelude to the post-pandemic world order which surely matters for India. The article explains the implications of the agreement.

    Investment agreement between EU and China

    • Recently, the EU and China announced the completion of a Comprehensive Agreement on Investment (CAI) between the two.
    • The CAI gives European firms enhanced access to the Chinese market, removes (or relaxes) Chinese government requirements on joint ventures and technology transfer in some sectors.
    • The European Commission has claimed that the CAI allows the EU to maintain its “policy space”, especially in “sensitive” sectors such as energy, infrastructure, agriculture, and public services
    • The deal also promises equal treatment with state enterprises and greater regulatory transparency in China.
    • Moreover, the Chinese government has undertaken some obligations on environmental sustainability and labour rights, notably by agreeing to make “continued and sustained efforts” to ratify the Forced Labour Convention.

    Reaction to the agreement

    • The US reaction ranged from disappointment to outright hostility.
    • The incoming Biden administration would have preferred a unified front against China, by striking an economic deal with Europe first.
    • For others, it was the EU’s apparent misjudgement on China’s human rights promises.

    Post-pandemic world order and role of democracies

    • The Europe-China agreement underscores a fundamental question of the post-pandemic world order: Can democracies remain true to their values while engaging in trade and investment with China?
    • To answer that, we must recognize two facts.
    • First, it is impossible to decouple the economies of the West from the Chinese economy without causing an economic catastrophe.
    • Second, there is little that Western countries can do to reshape China’s state-driven economic model or repressive human- and labour-rights regime.

    What should be the approach in dealing with China

    • The West should pursue more limited, more attainable, and ultimately more defensible goals.
    • Two goals are paramount.
    • First, trade and investment rules should be such that Western firms and consumers are not directly complicit in human-rights abuses in China.
    • Second, such rules should safeguard democratic countries against Chinese practices that could undermine their domestic institutional arrangements on labour, environment, technology, and national security.

    Lack of clarity over arbitration mechanism

    • The agreement contains an arbitration scheme that enables the parties to bring violation complaints against each other.
    • Arbitration scheme could serve as a means for the Chinese government to challenge specific entry barriers against Chinese firms.
    • How much this mechanism will be sensitive towards the issues such as treatment given to workers or the environmental protection is not clear.
    • Similarly, how much deference will panels show to exceptions to market access based on “national security” considerations is not clear.

    Conclusion

    We should not judge the CAI by whether it enables Europe to export its system and values. We should judge it by whether it allows Europe to remain true to its own.

  • Reclaiming SAARC

    The article examines the issues are making it difficult to function and suggests its revival.

    Dysfunctional SAARC and its implications

    • The year 2020 marked the sixth year since the leaders of the eight nations that make up SAARC were able to meet.
    • India-Pakistan issues have impacted other meetings of SAARC as well.
    • Inactive SAARC is making it easier for member countries, as well as international agencies, to deal with South Asia as a fragmented group.
    • India’s refusal to allow Pakistan to host the SAARC summit is akin to giving Pakistan a ‘veto’ over the entire SAARC process.
    • The events of 2020, particularly the novel coronavirus pandemic and China’s aggressions at the Line of Actual Control (LAC) shone a new spotlight on this mechanism.
    • This should make the government review its position and reverse that trend.

    Reasons India should review its position on SAARC

    1) India attend other forums with Pakistan

    • India continued to attend Shanghai Cooperation Organisation (SCO) meetings along with their Pakistani counterparts.
    • While China’s incursions in Ladakh constituted the larger concern in the year, India did not decline to attend meetings with the Chinese leadership at the SCO, the Russia-India-China trilateral, the G-20 and others.
    • No concerns over territorial claims stopped the government from engaging with Nepal either.

    2) Pandemic caused challenges

    • Reviving SAARC is crucial to countering the common challenges brought about by the pandemic.
    • Studies have shown that South Asia’s experience of the pandemic has been unique from other regions of the world.
    • This experience needs to be studied further in a comprehensive manner in order to counter future pandemics.
    • Such an approach is also necessary for the distribution and further trials needed for vaccines, as well as developing cold storage chains for the vast market that South Asia represents.

    3) Impact of the pandemic on economies of South Asia

    • Apart from the overall GDP slowdown, global job cuts which will lead to an estimated 22% fall in revenue for migrant labour and expatriates from South Asian countries.
    • World Bank have suggested that South Asian countries work as a collective to set standards for labour from the region, and also to promoting a more intra-regional, transnational approach towards tourism, citing successful examples including the ‘East Africa Single Joint Visa’ system.
    • In the longer term, there will be a shift in priorities towards health security, food security, and job security, that will also benefit from an “all-of” South Asia approach.
    • While it will be impossible for countries to cut themselves off from the global market entirely, regional initiatives will become the “Goldilocks option”.

    4) Dealing with the China challenge

    • In dealing with the challenge from China too, both at India’s borders and in its neighbourhood, a unified South Asian platform remains India’s most potent countermeasure.
    • At the border, tensions with Pakistan and Nepal amplify the threat perception from China, while other SAARC members (minus Bhutan), all of whom are Belt and Road Initiative (BRI) partners of China will be hard placed to help individually.
    • Significantly, from 2005-14, China actually wanted to join SAARC.
    • Despite the rebuff, China has continued to push its way into South Asia.

    Conclusion

    Seen through Beijing’s prism, India’s SAARC neighbourhood may be a means to contain India, with the People’s Liberation Army strategies against India over the LAC at present, or in conjunction with Pakistan or Nepal at other disputed fronts in the future. New Delhi must find its own prism with which to view its South Asian neighbourhood as it should be: a unit that has a common future, and as a force-multiplier for India’s ambitions on the global stage.

  • Who are the persecuted Hazara Community of Pakistan?

    Pakistan’s Hazaras finally ended a protest and agreed to bury the bodies of 11 coal miners from the community killed by the IS.

    Genocide and Pakistan are the two inseparable metaphors. Pakistan’s treatment of its minorities is the least highlighted global violation of Human Rights. Hindus, Sikhs and Christians are the most persecuted communities.

    Who are the Hazaras?

    • Around 1773, the mountainous region of Hazarajat in modern-day central Afghanistan was annexed and made a part of the territories of the Afghan Empire under Pashtun ruler Ahmad Shah Durrani.
    • The Sunni Muslim majority under the Pashtun ruler resulted in further marginalization of the Shiite Hazara community, to the extent that in the 18th and 19th century.
    • They were forced to leave fertile lowlands in central Afghanistan and make the dry, arid mountainous landscape their new home.

    Their persecution

    • Persecution of the Shiite Hazaras is nothing new in Pakistan or neighbouring Afghanistan.
    • They have been frequently targeted by Taliban and IS militants and other militant groups in both countries.

    Causes of persecution: Ethnicity and Religion

    • Their unique identity, ethnicity and religion always made the Hazaras stand out among the other communities.
    • Hazaras speak Hazaragi, which is close to Dari Persian, the official language of modern-day Afghanistan.
    • The community also shares physical similarities with the Mongols and their speech, specific terms and phrases, reflect strong Central Asian Turkic influences.
    • This sets them apart from their neighbours in Pakistan and other communities within Afghanistan.

    An attempted ethnic cleansing

    • In the 19th century, the Hazara community constituted approximately 67 per cent of Afghanistan’s total population.
    • Since then, primarily due to violence, oppression and targeted massacres, that number has come down to a little as 10 to 20 per cent of the population now.
    • The attacks reached a crescendo in 2013 when three separate bombings killed more than 200 people in Hazara neighbourhoods of Quetta.
    • In the aftermath of this incident, the Shia community in Pakistan had erupted in anger over the Pakistani government’s lack of protection of its minorities.

  • Reframing India’s foreign policy priorities

    The article highlights the challenges facing the India’s foreign policy and factors responsible for these challenging circumstances.

    Stronger China in 2021 and Impact on India

    • China is about the only major country which had a positive rate of growth at the end of 2020, and its economy is poised to grow even faster in 2021.
    • Europe has recently revived its China links by ‘concluding in principle the negotiations for an EU-China Comprehensive Agreement on Investment’.
    •  The China-EU Investment Treaty which is an indication that Europe values its economy more than its politics.
    • In one swift move, Europe has thus shattered all hope that China would remain ostracised in 2021.
    • India which has greatly curtailed its relations with China in the wake of Chinese aggression in Eastern Ladakh, will find itself in difficult position.

    Major changes in West Asia and implications for India

    • In West Asia, the Abraham Accords have sharpened the division between the Saudi Bloc and Iran-Turkey.
    • Despite the hype surrounding the Abraham Accords the risk of a confrontation between Iran and Israel remains high.
    • This does pose problems for India, since both have relations with it.
    • Meanwhile, China demonstrates a willingness to play a much larger role in the region, including contemplating a 25-year strategic cooperation agreement with Iran.

    Foreing policy challenges for India in 2021

    • No breakthrough in Sino-Indian relations has, or is likely to occur.
    • India-Iran relations today lack warmth.
    • In Afghanistan, India has been marginalised as far as the peace process is concerned.
    • While India’s charges against Pakistan of sponsoring terror have had some impact globally, it has further aggravated tensions between the two neighbours and pushed Pakistan closer to China.
    • Hostility between India and Nepal appears to have reduced lately, relations continue to be strained.
    • Through a series of diplomatic visits, India has made efforts to improve relations with some of its neighbours such as Bangladesh, Myanmar and Sri Lanka, but as of now worthwhile results are not evident.
    • One key takeaway is that as India-China relations deteriorate, India’s neighbours are not averse to taking sides, increasing India’s isolation.
    • India will serve as the president of the powerful UN Security Council for the month of August, 2021, but if it is to make a real impact, it must be seen to possess substantial weight to shape policies, more so in its traditional areas of influence.

    Factors responsible for India’s foreing policy issues

    • There is a perception that India’s closeness to the U.S. has resulted in the weakening of its links with traditional friends such as Russia and Iran.
    • Perhaps the most relevant explanation could be the shifting balance of power in the region in which India is situated, notably the rise of China.
    • The enlarging conflict between the two biggest powers in Asia is compelling many nations to pick sides in the conflict.
    • Othe important factor is that India’s foreign policy suffers from an ideational vacuum.
    • India remains isolated from two important supranational bodies of which it used to be a founding member, viz., the Non-Aligned Movement (NAM) and the South Asian Association for Regional Cooperation (SAARC).

    Conclusion

    As part of the ideational restructuring of India’s foreign policy, what is urgently required, apart from competent statecraft, is the adoption of prudent policies, pursuit of realistically achievable objectives, and, above all, a demonstration of continuity of policy, irrespective of changes in the nature of the Administration.

  • Domestic politics and its influence on foreign policy

    The article examines the issue of intervention in domestic politics by the external powers and the practical utilities of principles of non-intervention in the internal matters of neighbouring countries.

    Political turmoil in Nepal and India’s reaction

    • Nepal has been going through political crisis for some days now.
    • India’s reluctance to be drawn into the political turmoil in Kathmandu has drawn much attention.
    • India’s refusal is in contrast to Beijing’s active effort to preserve the unity of the ruling communist party in Kathmandu.

    The principles of sovereignty and non-intervention and its violations

    • India and China always insist that other countries should stop interfering in their respective internal affairs.
    • But big nations always intervene in other nations but fend off potential threats to their own sovereignty.
    • That does not prevent others from messing with India and Beijing.
    • Intervention is part of international life; all powers — big and small — frequently violate the principle of sovereignty.
    • The concept of national sovereignty was never absolute.
    • Big nations tend to intervene more, and the smaller ones find ways to manage this through the politics of balancing against their large neighbours.

    Analysing the causes of external interventions

    • The pressure for external intervention often comes from major domestic constituencies within.
    • For example, the conflict between Sinhala majority and Tamil minority in Sri Lanka produces political pressure on Delhi to intervene in Sri Lanka.
    • The demand sometimes comes from outside.
    • In Nepal, for example, elite competition sees different factions trying to mobilise external powers.
    • In recent years, we have also seen the intense interaction between domestic power struggles and external powers like India and China.
    • The Maldives is one example.

    Factors responsible for intervention

    • Given the nature of South Asia’s political geography, very few problems can be isolated within the territories of nations.
    • There is also the tension between the shared cultural identity in the subcontinent.
    • There is also the determination of the smaller nations to define a contemporary identity independent of India.
    • The bitter legacies of Partition leave the domestic political dynamics of Bangladesh, India and Pakistan tied together.
    • India’s relations with its smaller neighbours are also burdened by the legacy of India’s past hegemony and the emerging challenges to it.

    What should be India’s regional policy?

    • India can neither stand apart nor jump into every domestic conflict within the neighbourhood.
    • It is always about political judgement about specific situations.
    • Active and direct intervention in the domestic politics of neighbours must be a prudent exception rather than the rule in India’s regional diplomacy.

    Conclusion

    The subcontinent has historically been an integrated geopolitical space with a shared civilisational heritage. Equally true is the reality of multiple contemporary sovereignties within South Asia. In dealing with these twin realities, the principles guiding India’s engagement should be based on  “mutual respect and mutual sensitivity”.

  • Explained: India at United Nations Security Council

    India is back as a non-permanent member on the United Nations Security Council.

    Q.What objective India should pursue in its stint at the UNSC? What challenges India will face in achieving these objectives?

    India at the UNSC

    Take a look at its seven previous terms, and what its agenda will be amid events concerning China, Pakistan and the US:

    1. In 1950-51, India, as President of UNSC, presided over the adoption of resolutions calling for the cessation of hostilities during the Korean War and for assistance to the Republic of Korea.
    2. In 1967-68, India co-sponsored Resolution 238 extending mandate of UN mission in Cyprus.
    3. In 1972-73, India pushed strongly for admission of Bangladesh into the UN. The resolution was not adopted because of a veto by a permanent member.
    4. In 1977-78, India was a strong voice for Africa in the UNSC and spoke against apartheid. Then External Affairs Minister Atal Bihari Vajpayee spoke in UNSC for Namibia’s independence in 1978.
    5. In 1984-85, India was a leading voice in UNSC for resolution of conflicts in the Middle East, especially Palestine and Lebanon.
    6. In 1991-92, PM P V Narasimha Rao participated in the first-ever summit-level meeting of the UNSC and spoke on its role in the maintenance of peace and security.
    7. In 2011-2012, India was a strong voice for developing world, peacekeeping, counter-terrorism and Africa. The first statement on Syria was during India’s Presidency at the UNSC.

    India’s diverse role-play

    • India played an active role in discussions on all issues related to international peace and security.
    • It included several new challenges which the UNSC was called upon to deal with in Afghanistan, Cote d’Ivoire, Iraq, Libya, South Sudan, Syria and Yemen.
    • In view of the threat posed to international trade and security by piracy off the coast of Somalia, India promoted international cooperation against the pirates.
    • At India’s initiative, the UNSC mandated international cooperation for release of hostages taken by pirates as well as for prosecution of those taking hostages and those aiding and abetting these acts.
    • India also worked for enhancing international cooperation in counter-terrorism, prevention of the proliferation of weapons of mass destruction to non-state actors, and the strengthening of UN peacekeeping efforts.

    Issues at UNSC: The politics within

    • The seven previous terms have given Indian diplomats the experience of how diplomacy is conducted at the multilateral setting.
    • There have been instances where permanent members would like the non-permanent members to be “cooperative”, and no stand in the way of major resolutions.
    • Most non-permanent members get influenced by the P-5 members. They did not wish to irritate the permanent members and were keen to be perceived by them as ‘cooperative’.
    • This was precisely how the permanent members would like the non-permanent members to behave.

    Walk-alone moves by India

    • The Indians took P5 work more seriously and consequently had to fight a lonely battle.
    • This was the time when the Gulf War erupted and India voted in favour of the US-sponsored resolution in April 1991.
    • India’s vote was dictated by pragmatic considerations.
    • The US had made it clear to India that failure to support the resolution would make it very difficult for them to help India in the World Bank and the IMF.
    • Back then, India was going through a severe balance-of-payment crisis and needed funds from these organisations.
    • Also, India needed the US on its side, if and when the Kashmir issue came up.

    Twenty years later, when India again became a non-permanent member at the UNSC, it was stronger economically but still had to negotiate politics within the Council.

    Ugly faces of the council

    • Most professional diplomats shed their innocence before they arrive at the horse-shoe table around which the Security Council meets.
    • In the real world of foreign and security policy, decision-makers are invariably confronted by cruel choices that are equally problematic and come in various shades.
    • Practitioners are acutely conscious that it is only diplomacy’s outward packaging that dwells in a commitment to a higher moral purpose.
    • The shameless pursuit of narrowly defined interests is most often the motivation and seldom raises eyebrows in the world of multilateral diplomacy.

    Issues before India

    (A) Long slated UN reforms

    • New Delhi has said it is essential that the Security Council is expanded in both the permanent and non-permanent categories.
    • It says India is eminently suited for permanent UNSC membership by any objective criteria, such as population, territorial size, GDP, economic potential and ongoing contributions to UN activities.

    (B) Terrorism

    • The international effort against terrorism is a key priority for India in the UN.
    • With the objective of providing a comprehensive legal framework to combat terrorism, India took the initiative to pilot a draft Comprehensive Convention on International Terrorism (CCIT) in 1996.
    • A text of the Convention is being negotiated in the 6th Committee of the UN General Assembly.
    • India worked closely to ensure the listing of Pakistan-based terrorist Masood Azhar under the UNSC’s 1267 Sanctions Committee (May 2019) concerning al-Qaida and ISIS terrorists.

    (C) China challenge

    • India is entering the UNSC at a time when Beijing is asserting itself at the global stage much more vigorously than ever.
    • It heads at least six UN organisations — and has challenged the global rules.
    • China’s aggressive behaviour in the Indo-Pacific, as well as the India-China border, has been visible in all of 2020, and New Delhi will have to think on its feet to counter Beijing.
    • At Pakistan’s behest, China has tried to raise the issue of Kashmir at the UNSC — but has not found much support.
    • There is some discussion among the strategic community in New Delhi on raising the issues of Taiwan, Hong Kong and Tibet at the UNSC.

    Conclusion

    • India will weigh the pros and cons with partners on what steps to take in this direction.
    • But, the polarizing politics inside India gives a window of opportunity to its rivals and opens up the possibility of criticism — especially on human rights issues.

    Back2Basics: United Nations Security Council

    • The UNSC is one of the six principal organs of the United Nations and is charged with the maintenance of international peace and security.
    • Its powers include the establishment of peacekeeping operations, the establishment of international sanctions, and the authorization of military action through Security Council resolutions.
    • It is the only UN body with the authority to issue binding resolutions to member states.
    • The Security Council consists of fifteen members. Russia, the United Kingdom, France, China, and the United States—serve as the body’s five permanent members.
    • These permanent members can veto any substantive Security Council resolution, including those on the admission of new member states or candidates for Secretary-General.
    • The Security Council also has 10 non-permanent members, elected on a regional basis to serve two-year terms. The body’s presidency rotates monthly among its members.

  • Trade Policy Review of India at the WTO

    India’s seventh Trade Policy Review (TPR) has begun at the World Trade Organization in Geneva.

    Q.In the wake of the global economic fallout of the COVID-19 pandemic, discuss the challenges ahead of WTO.

    Trade Policy Review (TPR)

    • The TPR is an important mechanism under the WTO’s monitoring function and involves a comprehensive peer-review of the Member’s national trade policies.
    • India’s last TPR took place in 2015.

    Why need a TPR?

    • To increase the transparency and understanding of countries’ trade policies and practices, through regular monitoring
    • To improve the quality of public and intergovernmental debate on the issues
    • To enable a multilateral assessment of the effects of policies on the world trading system

    India’s progress

    • Since previous TPR, India has worked diligently to reform and transform the entire economic eco-system to meet the socio-economic aspirations of a billion-plus Indians.
    • The introduction of the GST, the IBC, labour sector reforms, an enabling and investor-friendly FDI Policy, and various national programmes like Make in India, Digital India, Startup India and Skill were the path-breakers.
    • The improvement in the economic and business environment, on account of the wide-ranging reforms, has enabled India to better its position in the World Bank’s Doing Business ranking from 142 in 2015 to 63 in 2019.
    • This improvement is also endorsed by investors who continue to view India as a desirable investment destination even during the testing time of the pandemic.
    • In 2019-20, India received highest ever FDI inflow of USD 74.39 billion.

    A note of caution

    • India’s trade policy remained largely unchanged since the previous review.
    • India continues to rely on trade policy instruments such as the tariff, export taxes, minimum import prices, import and export restrictions, and licensing, WTO said.
    • These are used to manage domestic demand and supply requirements, protect the economy from wide domestic price fluctuations, and ensure conservation and proper utilization of natural resources.
    • As a result, frequent changes are made to tariff rates and other trade policy instruments, which create uncertainty for traders.

  • Changing contours of India-U.K. ties

    India and the U.K. has shard past, now the present offers an opportunity to strengthen the ties between the two countries.

    India-U.K. ties in changing geopolitical landscape

    • India has invited the British Prime Minister as chief guest for the Republic Day parade.
    • India has a shared past with Britain and needs to chart a different shared future, now that Britain has left the European Union (EU).
    • One joint enterprise will be as members of the UN Security Council where Britain has permanent status and India holds a non-permanent seat this year and next.
    • Also, this year, the U.K. will be hosting India as an invitee to the G-7, and the UN Climate Change Conference.

    Implications of Brexit on the bilateral relations

    •  For the U.K., Brexit necessitates that every effort be made to seek commercial advantage in Asian countries with high growth rates.
    • India has been fruitlessly negotiating a trade agreement with the EU since 2007, during which Britain was considered the main deal-breaker.
    • The EU wanted duty reductions on autos, wines and spirits and wanted India to open financial sectors.
    • India sought free movement for service professionals.
    • The same obstacles with post-Brexit Britain will arise, because the export profile of both countries is predominantly services-oriented.
    • In response to free movement for professionals, Britain will refer to its new points-based system for immigrants.
    • After withdrawing from the Regional Comprehensive Economic Partnership, and will place greater stress on aspects related to country of origin and percentage of value addition in exports.
    • Therefore, while signing agreement two countries will coverge on pharmaceuticals, financial technology, chemicals, defence production, petroleum and food products.

    India-U.K. close ties

    • One and a half million persons of Indian origin reside in Britain.
    • Before COVID-19, there were half a million tourists from India to Britain annually and twice that figure in the reverse direction.
    • Around 30,000 Indians study in Britain despite restrictive opportunities for post-graduation employment.
    • Britain is among the top investors in India and India is the second-biggest investor and a major job creator in Britain.
    • India has a credit balance in total trade of $16 billion, but the level is below India’s trade with Switzerland, Germany or Belgium.

    Conclusion

    Two countries should strive towards strengthening ties against the backdrop of changing geopolitical circumstances and the Brexit.