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Type: Explained

These Newscards correspond to the explained section of various newspapers. They become immensely important for both prelims and mains and special attention needs to be paid to them

  • India’s Arctic imperative

    Why in the news? 

    The Indian government appears interested in capitalizing on seabed mining and resource exploitation in the Arctic

    About Artice Region:

    • The Arctic region is rich in energy resources, including oil, natural gas, and renewable energy sources such as wind, solar, hydro, geothermal, and tidal power.
    • The Arctic covers an area of approximately 8 million square kilometers, with interests belonging to Denmark, Canada, Iceland, Finland, Russia, Norway, Sweden, and the United States

    The reason behind the growing interest in the Arctic Region:

    • Climate Change Concerns: India’s increased interest in the Arctic stems from scientific data revealing accelerated warming in the region.
    • Trade Route Opportunities: India seeks to capitalize on the opening up of Arctic sea routes, particularly the Northern Sea Route, to enhance its trade efficiency.
    • Geopolitical Considerations: India’s focus on the Arctic is also driven by geopolitical factors, including concerns over China’s expanding presence and Russia’s decisions regarding access to Arctic routes.
    • Historical Engagement: India’s involvement in the Arctic dates back to 1920 with the signing of the Svalbard Treaty.

    Indian Initiatives:

    • Arctic Council: As an Observer in the Arctic Council, India actively participates in various working groups and expert meetings. India’s involvement in these discussions helps in understanding Arctic governance issues and contributes to the development of sustainable policies for the region.
    • INS Himadri: In 2019, India launched its first scientific expedition to the Arctic with the INS Himadri, an ice-class research vessel. The expedition aimed to study climate change, oceanography, and marine biodiversity, furthering India’s expertise in polar research.
    • PAME: India’s commitment to sustainable development in the Arctic is reflected in its engagement with Arctic Council initiatives like the ‘Protection of the Arctic Marine Environment’ (PAME).

    Way Forward – Potential for Collaboration:

    • Green Energy and Clean Industries: India’s current policy emphasizes cooperation with Arctic countries, particularly Norway, in green energy and clean industries. This aligns with India’s goal of positioning itself as a responsible stakeholder in global environmental initiatives.
    • Transformational Partnership: Collaboration with Norway could be transformative for India, offering opportunities for increased participation in Arctic Council working groups
    • Scientific Research and Environmental Protection: A partnership with Norway is expected to focus on scientific research, climate, and environmental protection. These areas align with India’s Arctic Policy pillars, emphasizing the importance of addressing environmental challenges through research and cooperation.

  • What share of Global CO2 Emissions comes from Aviation?

    Why in the news?

    Aviation accounts for 2.5% of global CO2 emissions. But it has contributed around 4% to global warming to date

    Year-wise Global Aviation demand, Energy Efficiency, and CO2 emissions

    Global Co2 emissions from aviation 

    The reason behind Aviation accounts for 2.5% of global CO2 emissions:

    • CO2 Emissions: When jet fuel burns, it releases carbon dioxide (CO2) into the atmosphere, much like any other combustion process. CO2 as a greenhouse gas has contributed around 4% to global warming to date.
    • Non-CO2 effects: In addition to CO2, aircraft emissions also include other substances like nitrogen oxides, soot, water vapor, and sulfate aerosols. These substances interact with the atmosphere in various ways and can have different climate impacts. For example:
      • Contrails: These are the visible trails of condensed water vapor and ice crystals that form behind aircraft in certain atmospheric conditions. Contrails can contribute to the formation of cirrus clouds, which can have a warming effect on the climate.
      • Induced cirrus cloud formation: Aircraft can also induce the formation of cirrus clouds through their emissions, further contributing to warming.

    Initiatives taken by the Indian Government:

    • India is a Party to the United Nations Framework Convention on Climate Change (UNFCCC), its Kyoto Protocol (KP) and the Paris Agreement (PA).
    • As a Party to the UNFCCC, India periodically submits its National Communications (NCs) and Biennial Update Reports (BURs) to the UNFCCC which includes national Greenhouse Gas (GHG) inventory.
    • The energy sector contributed 75%, Industrial Process and Product Use 8%, the agriculture sector 14%, and the waste sector contributed 3% of total greenhouse gas emissions in 2016.
    • The Land Use Land-Use Change and Forestry  (LULUCF) sector was the net sink and absorbed about 15% of the carbon dioxide in 2016.

    Way Forward:

    • Transitioning to Alternative Fuels: Invest in Research and Development of sustainable aviation fuels (SAFs), such as biofuels, hydrogen, or synthetic fuels, which emit fewer CO2 emissions compared to conventional jet fuel.
    • Improving Aircraft Efficiency: Encourage the adoption of more fuel-efficient aircraft and technologies, including advanced aerodynamics, lightweight materials, and efficient engines.
    • Implementing Operational Improvements: Enhance air traffic management systems to optimize flight routes, reduce delays, and minimize fuel consumption during taxiing, takeoff, and landing.

    Mains PYQs:

    1. Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (2021)
    2. Discuss in detail the photochemical smog emphasizing its formation, effects and mitigation. Explain the 1999 Gothenburg protocol. (2022)

  • How are hydrocarbons extracted from under the ground? | Explained

    Why in the news? 

    The geological processes, extraction methods, and environmental impact of hydrocarbon extraction.

    BACK2BASICS

    Where are Hydrocarbons located?

    • Hydrocarbons originate from plant and animal fossils that were formed by the forces of temperature and weight over millennia.
    • They are mostly found deep underground, in porous rock formations, such as sandstone, limestone, and shale. Hydrocarbons exist in Subterranean rock formations in various forms like natural gas, coal, crude oil, and petroleum, typically found in reservoirs.
    • The primary source of hydrocarbons in underground rocks is kerogen, organic matter deposits originating from lakes, marine ecosystems, or terrestrial ecosystems.
    • Different types of kerogen yield various hydrocarbon products such as waxy oils, oil and gas, light oils, gas, and coal.
    • Petroleum geologists utilize tools and techniques from petroleum geology to evaluate these rocks, assessing factors like porosity and permeability.

    How Hydrocarbons are extracted? 

    The extraction of hydrocarbons, such as oil and gas, has several negative impacts on the environment: 

    • Damage to Marine Life and Ecosystems: The extraction process can lead to the release of toxic substances and chemicals, which can harm marine life and ecosystems. This can lead to the death of fish, birds, and other marine animals, as well as the destruction of habitats.
    • Deforestation and Destruction of Flora: The search for hydrocarbon deposits often involves the clearing of large areas of land, which can lead to deforestation and the destruction of plant life. This can have a significant impact on local ecosystems and biodiversity.
    • Water Pollution: The extraction process can lead to the contamination of groundwater and surface water.
    • Destruction of Fertile Land: The extraction process can destroy fertile land, which can have serious consequences for agriculture and food production. This can lead to soil erosion, desertification, and the loss of biodiversity.

    Renewable sources that can serve as alternatives for hydrocarbons include:

    • Hydroelectricity: This is the most significant renewable energy source at 6% of the global total
    • Solar Energy: Solar power is a promising renewable energy source that can be harnessed using solar panels to convert sunlight into electrical energy. The solar power development sector is the fastest-growing renewable energy sector in the U.S
    • Wind Energy: Wind turbines can generate electricity from wind power, and this technology is becoming increasingly popular and efficient
    • Biomass Energy: Biomass energy can be derived from organic materials such as wood, agricultural waste, and municipal solid waste.
    • Geothermal Energy: Geothermal energy is generated and stored in the Earth’s crust. This energy source can be used for heating, cooling, and electricity generation
    • Renewable Natural Gas (RNG): RNG is a pipeline-quality gas that can be utilized by utilities interchangeably with conventional natural gas. RNG can be produced from methane waste sources such as farm and landfills

    Conclusion: Hydrocarbons, found in subterranean rock formations, are extracted using petroleum geology techniques. Extraction poses environmental risks like marine damage, deforestation, and water pollution. Renewable alternatives include hydroelectric, solar, wind, biomass, geothermal energy, and renewable natural gas.

    Mains PYQ:

    Q Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain.

  • Siachen: 40 years of Operation Meghdoot

    Why in the News?

    April 13, 2024, marks the 40th anniversary of Operation Meghdoot, which was launched by the Indian Army to pre-empt Pakistan and occupy the Siachen Glacier in the Karakoram ranges.

    The genesis of Operation Meghdoot

    • Launched: April 13, 1984 (by the Indian Armed Forces);
    • Aim: To seize control of the Siachen Glacier in Kashmir, marking the first assault in the world’s highest battlefield.
      • It was a response to Pakistan’s Operation Ababeel.
    • Indian troops, including the Kumaon Regiment and Ladakh Scouts, successfully gained control of critical peaks and passes like Sia La, Bilafond La, and Gyong La, along with the commanding heights of the Saltoro Ridge, giving India a strategic advantage in the region.
    • Operation Meghdoot resulted in the first of its kind and the only army in the world to have deployed tanks and heavy ordnance at such high altitudes.
    • The Siachen Glacier conflict arose due to a vague demarcation of territories in the Karachi Agreement of 1949, leading to both India and Pakistan claiming the barren heights and the glacier, which escalated tensions in the region.

    Significance of Siachen Glacier:

    • Preventing ingress from Pakistan and China: Siachen forms a hub between Shaksgam Valley, Karakoram Pass, and Aksai Chin, making it vital for India to prevent ingress not only from Pakistan but also from China.
    • Maintaining the status quo: The Indian Army’s presence in the region has helped maintain the status quo and prevent any territorial changes that could compromise India’s security.
    • Watershed and drainage: The Siachen Glacier acts as a watershed, with its melting waters being the main source of the Nubra River in the Indian region of Ladakh, which drains into the Shyok River and ultimately the Indus River, a major water source for Pakistan.

    Recent developments on the Glacier

    • Technological Advancements: The introduction of VSAT technology has revolutionized communication on the glacier, improving mobile and data connectivity for troops. This has enhanced real-time situational awareness and telemedicine capabilities.
    • Improved Mobility and Logistics: The induction of Chinook heavy-lift helicopters, logistic drones, and All-Terrain Vehicles (ATVs) has significantly improved mobility across the glacier and the supply of essential provisions to remote posts, especially during winters. New logistics chains ensure the availability of fresh rations and vegetables for forward posts.
    • Aircraft Support: Various aircraft from the Indian Air Force (IAF) operate in support of Operation Meghdoot, providing crucial support to troops in remote posts. Helicopters, including Chinook, remain a lifeline for troops.
    • Enhanced Medical Facilities: Medical facilities in Partapur and Base Camp boast some of the best medical and surgical specialists in the country.

    Way forward:

    • Continued Diplomatic Talks: India and Pakistan may continue to engage in diplomatic dialogues, potentially at higher levels, to discuss the demilitarization of Siachen and other related issues. These talks could aim to find common ground and address mutual concerns.
    • Authentication of AGPL: India’s insistence on authenticating the Actual Ground Position Line (AGPL) as the first step towards demilitarization could remain a key sticking point. Efforts may be made to find a mutually acceptable way to verify and authenticate the AGPL.
    • Involvement of Third Parties:   Third-party mediation or involvement from international organizations could be explored to facilitate discussions and help build trust between India and Pakistan.

  • Urbanization, no liberating force for Dalits

    Why in the News?

    The Indian cities have failed with the aspirations and expectations of the Dalit liberation movement in urbanization.

    View of Ambedkar and  Jyotirao Phule on Urbanisation:

    • Urbanization as an Opportunity for Dalit Liberation: Both Ambedkar and Jyotirao Phule saw urbanization as an opportunity for Dalit liberation. They believed that the systems of caste oppression that were prevalent in Indian villages would weaken in cities.
    • City Life as Liberating and Liberal: Phule admired city life for its liberal atmosphere and the opportunity it provided him to earn a living. Similarly, Ambedkar saw cities as places where one could become anonymous, breaking free from the constraints of caste-based identities.
    • Transition from Caste to Class: Cities offered the potential for individuals to transition from a caste-based order to a class-based order. In cities, one’s status would be determined more by their accumulation of resources or capital rather than their caste background.

    Why Urbanisation is not a liberating force for Dalits?

    • Extension of Caste in City: The logic of purity-pollution extends to the broader urban environment, where Dalits carry the stigma of their ghettoized identity into public spaces. This perpetuates the association of Dalit identity with impurity and reinforces caste-based discrimination.
    • Meat as impure by the State: Governments impose Brahminical regulations on public spaces, reinforcing the perception of meat as impure. For example, it includes Regulations on meat shops and bans on meat-based street food in certain areas, often justified by citing religious sentiments.
    • Secular and Religious Spaces: The state’s regulations to maintain purity in both secular and religious public spaces, even extending to what pedestrians can visually encounter.
    • Poor Sanitation: A large-scale study also found that public services and access to Municipal Infrastructure such as clean drinking water are the worst in Dalit and Muslim ghettos
    • Issue of Sacrifice Zone: Research in sacrifice zones regions marked for severe environmental pollution such as landfills shows that such areas are overwhelmingly inhabited by Dalits and Muslims.
    • Statistics: A recent report by the ‘Housing and Land Rights Network’ on forced evictions in India also shows that Dalits and Muslims are the most impacted by slum demolition drives.

    Suggestive Measures:

    • Community Empowerment: Empower Dalit and Muslim communities through grassroots initiatives, community organizations, and advocacy groups.
    • Awareness and Sensitization: Conduct awareness campaigns and sensitization programs aimed at challenging caste-based stereotypes and prejudices in urban society.
    • Infrastructure Development: Prioritize investment in infrastructure development in Dalit and Muslim ghettos to improve access to basic amenities such as clean water, sanitation, healthcare, and education.

    Conclusion: Urbanization hasn’t fulfilled Dalit liberation hopes. Ambedkar and Phule envisioned cities as liberating, but caste persists. Measures include community empowerment, awareness campaigns, and infrastructure development to combat discrimination and improve living conditions.

  • Fertility Levels drop below one in many Asian Nations

    Why in the News? 

    Many countries in East and Southeast Asia are in the middle of a population crisis, with fewer births every year and record-low fertility rates.

    • In March this year, several hospitals in China stopped offering newborn delivery services due to declining demand.

    What is TFR? 

    Total Fertility Rate is a measure used in demography to represent the average number of children that would be born to a woman over her lifetime.

    TFR of Asian countries and India and Comparison with others: 

    Reasons behind the Fertility levels dropping below one in many Asian nations:

    • Family Planning Measures: Countries like South Korea and Singapore have implemented stringent family planning policies, limiting the number of children couples are encouraged to have. For example, South Korea’s slogan in the 1980s, “Even two children per family are too many for our crowded country,” reflects the emphasis on controlling population growth.
    • Career Opportunities for Women: With more opportunities for women to pursue careers, there has been a shift in priorities away from having children.
    • Declining Marriage Rates: Dropping marriage rates contribute to lower fertility rates, as marriage traditionally correlates with childbearing. As fewer people get married or delay marriage, the window for childbearing narrows.
    • Cost of Raising Children: The rising cost of raising a child is cited as a deterrent to having larger families. Financial considerations such as education, healthcare, and housing expenses may dissuade couples from having more children.
    • Ideal fertility rate: The ideal fertility rate for a population to remain stable, assuming no immigration or emigration, is 2.1 children per woman. This rate is known as the replacement rate, and it ensures that each generation will replace itself.

    Suggestive Measures to maintain an ideal Fertility Rate:

    • Supporting Work-Life Balance: Implement policies that support work-life balance, such as flexible work schedules, parental leave, and affordable childcare, to encourage individuals to have children while pursuing their careers.
    • Financial Incentives: Offer financial incentives or subsidies for families to alleviate the financial burden of raising children, making it more feasible for individuals to start families.
    • Education and Awareness: Provide education and awareness programs on the benefits of having children at a younger age and the importance of family planning to help individuals make informed decisions about their fertility.
    • Healthcare Support: Improve healthcare services related to fertility, pregnancy, and childbirth to ensure a safe and supportive environment for individuals considering starting a family.

    Conclusion: Declining fertility rates in Asian nations prompt a population crisis due to stringent family planning, women’s career opportunities, declining marriage rates, and high child-raising costs. Need to take measures include work-life balance policies, financial incentives, education, and healthcare improvements to maintain an ideal fertility rate.

     

    Mains PYQ  

    Q Critically examine whether growing population is the cause of poverty OR poverty is the mains cause of population increase in India.

  • Explained: A short history of Iran-Israel ties and why they soured after 1979

    Why in the news? 

    Iran has said that its April 12 attacks on Israel were in response to Israeli war jets targeting an Iranian consulate in Syria earlier this month, leading to the death of its senior military commanders.

    Context:

      • The Iran-Israel relationship has not always been as fraught as it is today. Iran was one of the first countries in the region to recognise Israel after its formation in 1948. It was only after 1979 that their diplomatic ties ended.
    • Iran–Israel Relations: This can be studied through four major phases: 
      • Ambivalent (1947-1953);
      • Friendly (1953-1979);
      • Worsening (1979-1990);
      • Open Hostility (1991-present);

    1953 to 1979 Iran–Israel Relations:

    • From 1953 to 1979, during the rule of the Pahlavi dynasty in Iran, the relationship between Iran and Israel was relatively friendly.
    • Iran recognized Israel as a sovereign state in 1950, making it the second Muslim-majority country to do so after Turkey.
    • Despite occasional tensions, Iran and Israel engaged in significant economic, political, and military cooperation during this period. This cooperation extended to various sectors and included joint projects.
    • Iran supported Israel during conflicts with Arab nations, indicating a level of alignment in their geopolitical interests.
    • One notable joint project between Iran and Israel was the construction of the Trans-Israel oil pipeline, showcasing the depth of their cooperation, particularly in the economic sphere.

    Post 1979 Iran–Israel Relations:

    • After the 1979 Islamic Revolution, Iran became a religious state, with a significant shift in its foreign policy and worldview.
    • Iran, under the new regime, viewed Israel as an occupier of Palestinian land and referred to it as “Little Satan.” This represented a significant departure from the previous regime’s stance.
    • Iran, under Ayatollah Khomeini, also labeled the United States as the “Great Satan” and saw both Israel and the US as interfering in the region’s affairs.
    • Iran sought to expand its influence in the region, challenging traditional powers such as Saudi Arabia and Israel, both of which were US allies.
    • Initially at odds with pan-Arabism championed by leaders like Gamal Abdel Nasser, Iran’s relations with Arab countries, such as Egypt, warmed after Nasser died in 1970.
    • The signing of an accord between Iran and Iraq in 1975, which included Iran’s agreement to cease support for Kurdish-Iraqi separatists, led to a temporary easing of hostility between the two nations.
    • These shifts in Iran’s foreign policy and its improved relations with neighboring countries, as well as Iraq, led to a decrease in Israel’s strategic importance to Iran.

    India’s Stance:

    • India’s Neutral Stance: India has adopted a neutral stance on the conflict between Iran and Israel, emphasizing the importance of peace and stability in the region.
    • Strategic Partnership with Israel: Despite its neutral stance, India maintains a strategic partnership with Israel, characterized by significant military and economic ties, including a substantial trade volume of around $7.5 billion.
    • Cultural and Linguistic Ties with Iran: India also has cultural and linguistic ties with Iran, along with strategic economic interests, such as the Chabahar port project, which connects India to Central Asia through Iran.
    • Focus on Citizen Safety: India’s primary focus amidst the escalating conflict is ensuring the safety and well-being of its citizens, with approximately 10,000 Indian nationals in Iran and an additional 18,000 in Israel.

    Conclusion: Iran-Israel ties, once friendly, soured post-1979 due to Iran’s religious revolution. India maintains neutrality, balancing strategic partnerships with both nations while prioritizing citizen safety amid escalating tensions.

  • The blurry lines between wildlife ‘capture’ and ‘rescue’  

    Why in the news? 

    The human-animal conflict in India is a significant issue, with several lives lost and property damage due to the increasing interactions between humans and wildlife

    Difference between between wildlife ‘capture’ and ‘rescue’

    • Capture:  It refers to the act of taking wild animals into custody, often due to conflicts with humans, such as when an animal poses a threat to human safety or property. This may involve trapping, sedating, or physically restraining the animal. The primary goal of capture is to ensure human safety and prevent further damage. Captured animals may be relocated, rehabilitated, or, in some cases, euthanized, depending on the situation and the animal’s condition.
    • Rescue:  It refers to the act of providing assistance to wild animals in distress, such as those injured, orphaned, or trapped in a dangerous situation. The primary goal of rescue is to help the animal recover and, if possible, return it to the wild. Rescue efforts may involve medical treatment, rehabilitation, and release back into the wild.

    Blurred lines between “rescue” and “capture”

    • Guidelines vs. Reality: Despite government guidelines discouraging capture without considering preventative measures, in practice, animals are often captured hastily rather than adopting non-invasive approaches.
    • Case of Elephant “Rescue”: An elephant was captured under the pretext of rescue from a coffee plantation but was subsequently released 200 km away in an unfamiliar landscape, leading to further complications and ultimately its death.
    • Unintended Consequences: The attempt to “rescue” the elephant resulted in its straying into a neighboring state, highlighting the unintended consequences and potential risks associated with such actions.
    • Case of Leopard “Rescue”: Similarly, a leopard was “rescued” after being sighted in an agricultural field, but it died shortly after for unknown reasons, raising questions about the efficacy and ethics of such operations.

    Issues related to rescue of snakes

    • High Frequency of Interactions: Interactions with snakes are more frequent than with other wild animals, resulting in higher incidences of misguided rescue attempts.
    • Failure to Distinguish Between Actions: There’s a lack of distinction between capture, removal, and rescue when managing conflicts with snakes, leading to poor handling and unnecessary removal from habitats under the guise of rescue operations.
    • Issues with Relocation: Relocated snakes have poor survival prospects and relocation doesn’t effectively resolve conflict, potentially increasing future conflict occurrences.
    • Harmful Effects of “Rescue” Operations: Such operations can cause physical trauma, injuries, and stress to animals, reducing their post-release survival chances.

    Suggestive measures

    • Education and Training: Provide comprehensive training to wildlife rescuers on species-specific rescue techniques and emphasize the importance of non-invasive approaches.
    •  Habitat Restoration: Focus on habitat conservation and restoration to reduce human-snake conflicts and provide natural habitats for snakes.
    • Research and Monitoring: Conduct research to understand snake behavior and ecology better, enabling more informed rescue and relocation decisions.
    • Collaboration: Foster collaboration between wildlife authorities, conservation organizations, and local communities to develop effective strategies for managing human-snake conflicts sustainably.

    Conclusion 

    Enhanced training, habitat restoration, research, and collaboration are vital for navigating the blurry lines between wildlife “capture” and “rescue,” ensuring humane and effective management of human-animal conflicts in India.

    Mains question for practice 

    Q Discuss the blurred lines between wildlife “capture” and “rescue” in India, highlighting issues and proposing measures for effective human-animal conflict management.

  • India Initiates Review of Asean Trade Pact to Boost Domestic Manufacturing

    Why in the news?

    The review aims to address concerns such as the inverted duty structure, which puts local manufacturers at a disadvantage.

    Trade deficit issue with ASEAN 

    • High trade deficit: The trade deficit between India and the Association of Southeast Asian Nations (ASEAN) has been a significant issue, with the deficit widening to USD 43.57 billion in the last fiscal from USD 25.76 billion in 2021-22 and just USD 5 billion in 2010-11
    •  Review AITIGA:This has led to a review of the ASEAN-India Trade in Goods Agreement (AITIGA) by 2025, aiming to address concerns about trade barriers, abuse of the agreement, and the growing trade gap between India and the ASEAN region

    ASEAN-India Trade in Goods Agreement (AITIGA)

    • The ASEAN-India Trade in Goods Agreement (AITIGA) is a trade agreement between the ten member states of ASEAN and India, signed in 2009 and implemented in 2010. The agreement aims to establish a free trade area between the parties, covering trade in physical goods and products, and progressively eliminating duties on 76.4 percent of goods. 

    The trade deficit between India and the ASEAN region is primarily due to the following reasons:

    • Tariff disparities: India’s tariffs were much higher than partner countries, leading to a significant reduction in tariffs for partner countries, which in turn caused India’s imports to grow faster than exports. This imbalance has been widening since 2010-11, the year India entered into an agreement with ASEAN
    • Non-tariff barriers and regulations: India’s exports to ASEAN have been affected due to non-reciprocity in FTA concessions, non-tariff barriers, import regulations, and quotas. These factors have hindered India’s ability to fully benefit from the FTA
    • Routing of goods from third countries: There have been concerns about the routing of goods from third countries, such as China, to ASEAN countries with minimum value addition and then being imported into India, misusing the India-ASEAN FTA. This practice has contributed to the growing trade deficit
    • Limited market access for Indian products: India’s exports of products such as textile clothing, footwear, food products, and minerals don’t have a significant place in ASEAN imports, while there is a higher dependence on products such as vegetables, fuels, chemicals, and metals from ASEAN, which are essential commodities

     Conclusion 

    India’s review of the ASEAN-India Trade in Goods Agreement aims to tackle the widening trade deficit by addressing tariff disparities, non-tariff barriers, and the misuse of the agreement, crucial steps toward fostering fair and balanced trade relations.

    Mains question for practice 

    Q Discuss the factors contributing to high  deficit between India and ASEAN. 

     

  • ADB raises India’s GDP growth forecast for FY25 to 7% from 6.7% earlier

    Why in the News?

    The Asian Development Bank (ADB) increased its GDP growth projection for India for the current fiscal year to 7%, up from its previous estimate of 6.7%.

    Reason behind the increased India’s GDP growth projection by ADB:

    • Manufacturing Sector: The manufacturing sector growth of India in the 2023 fiscal year was robust, with the S&P Global India Manufacturing PMI rebounding to 56.0 in November 2023 from an eight-month low of 55.5 in October 2023.
    • Investment and Consumption Demand: Investment and Consumption demand are both expected to drive India’s economic growth in 2024 and FY25. Private Final Consumption Expenditure (PFCE) grew at 3.5% in the December quarter of FY24.
    • Inflation Trend: Inflation in India is expected to continue its downward trend in tandem with global trends Inflation in India decreased to 5.09 percent in February 2024 from 5.10 percent in January 2024. India’s inflation rate is projected to trend around 4.30 percent in 2025, according to econometric models.
    • Monetary policy: The RBI has kept the repo rate unchanged at 6.5% for 2023-24, focusing on withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting growth.

    Government Initiatives taken for Regional Development:

    • Regional Cooperation and Integration (RCI) Conference, 2023:
        • It was organised by the Asian Development Bank (ADB) at Tbilisi, Georgia.
        • Theme: ‘Strengthening Regional Cooperation and Integration through Economic Corridor Development (ECD)’.
        • Objective: To integrate spatial transformation and area-centric approach with the help of Economic Corridor Development.
        • In this Conference, India offered its indigenously developed GIS-based technology though knowledge sharing  to ADB and South Asia Sub-Regional Economic Cooperation (SASEC) countries for enhancing socio-economic planning and regional cooperation.
    • PM GatiShakti National Master Plan and Multi-modal Connectivity:
      • Basically, PM Gati Shakti is principled to bring socio-economic area-based development as part of regional connectivity.
      • It is being implemented to enhance connectivity with regional partners with the help of GIS-based technology. For Example: Indo-Nepal Haldia Access Controlled Corridor project.

    BACK2BASIC:

    About Asian Development Bank(ADB):

    • Established in 1966, it is owned by 68 members-49 from the region. ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
    • Headquarters: Manila, Philippines.
    • Objective: To foster social and economic development across Asia and the Pacific region.

     

    Conclusion: Indian  government’s effort across the robust manufacturing growth, investment, working on consumption demand, decreasing inflation, and supportive monetary policy, aligning with its goal of promoting regional social and economic development are gaining some fruits.

    Mains PYQ:

    Q China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor.(UPSC IAS/2017) 

    Q India has recently signed to become founding member of New Development Bank (NDB) and also the Asian Infrastructure Investment Bank (AIIB). How will the role of the two Banks be different? Discuss the strategic significance of these two Banks for India. (UPSC IAS/2014)