54fda Mains 365 - International Relations

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INTERNATIONAL RELATIONS

Table of Contents
1. INDIA AND ITS NEIGHBOURHOOD RELATIONS 2.14.1. BIMSTEC Charter _______________________ 52
______________________________________ 4 2.15. BRICS _______________________________ 53
2.15.1. 14th BRICS Summit _____________________ 54
1.1. India-China ____________________________ 4
1.1.1. China’s Land Border Law ___________________6 3. EFFECT OF POLICIES AND POLITICS OF
1.2. 1971 Indo-Pak War and its Impact _________ 7 DEVELOPED AND DEVELOPING COUNTRIES ON
1.3. Indus Water Treaty _____________________ 9 INDIA’S INTERESTS ______________________ 55
1.4. India’s Engagement with Taliban _________ 11 3.1. Indo-Pacific Region _____________________ 55
1.5. India-Sri Lanka ________________________ 13 3.1.1. Indo-Pacific Economic Framework for Prosperity
1.5.1. Srilankan Crisis _________________________ 14 (IPEF) ______________________________________ 56
1.5.2. Geopolitics of India-Sri Lanka-China Triangle _ 15 3.1.2. QUAD _________________________________ 57
1.6. India’s Northeast Neighbours ____________ 17 3.2. AUKUS _______________________________ 59
1.7. India-Nepal ___________________________ 18 3.3. Geo-Political Rise of South PAcific ________ 60
1.7.1. Bangladesh-Bhutan-India-Nepal (BBIN) Motor 3.4. North Atlantic Treaty Organization (NATO) _ 62
Vehicles Agreement (MVA) ____________________ 18 4. IMPORTANT INTERNATIONAL INSTITUTIONS,
1.8. India-Bangladesh ______________________ 21 AGENCIES AND FORA- THEIR STRUCTURE,
1.9. Indian Ocean Region ___________________ 22 MANDATE _____________________________ 64
1.10. India-Maldives _______________________ 24 4.1. United Nations ________________________ 64
2. BILATERAL, REGIONAL AND GLOBAL 4.1.1. UNSC _________________________________ 64
GROUPINGS AND AGREEMENTS INVOLVING 4.1.2. UNHRC ________________________________ 65
INDIA AND/OR AFFECTING INDIA’S INTERESTS 25 4.1.3. UN PEACE KEEPING ______________________ 65
2.1. India-US _____________________________ 25 4.1.4. UNITED NATIONS ECONOMIC AND SOCIAL
2.1.1. India-US Defence Relations _______________ 26 COUNCIL (ECOSOC) ___________________________ 66
2.2. India-Russia __________________________ 27 4.2. World Health Organisation (WHO) ________ 67
2.2.1. India-Russia Defense Relations ____________ 27 4.2.1. Pandemic Treaty ________________________ 68
2.3. India-United Kingdom (UK) ______________ 30 4.3. Non-Aligned Movement ________________ 70
2.4. India-European Union __________________ 31 4.4. World Trade Organisation (WTO) _________ 72
2.4.1. India-France ___________________________ 32 4.4.1. Agreement on Agriculture(AoA) ____________ 74
4.4.2. IP Waiver ______________________________ 74
2.5. India-Eurasia _________________________ 33
4.4.3. Services Domestic Regulations (SDR) ________ 75
2.5.1. India-Central Asia _______________________ 35
2.5.2. India Turkmenistan Relations _____________ 36 5. DYNAMICS OF CHANGING WORLD ORDER _ 77
2.6. India-Middle East ______________________ 37 5.1. South Asia Energy Security ______________ 77
2.6.1. I2-U2 Joint working group ________________ 37 5.2. Alternatives to Belt and Road Initiative (BRI) 78
2.6.2. India-UAE Relations _____________________ 38 5.3. Russia-Ukraine War ____________________ 81
2.6.3. India-Israel ____________________________ 40 5.3.1. Responses to the War ____________________ 82
2.7. India-Africa ___________________________ 41 5.3.2. Global Geopolitical Changes and India _______ 82
2.7.1. China’s Growing Footprint in Africa ________ 41 5.3.3. Socio-Economic Impact of War _____________ 83
2.8. India Vietnam_________________________ 43 5.4. Foreign Military Bases __________________ 84
2.9. India-Japan ___________________________ 44 5.5. India in the Emerging World Order ________ 86
2.9.1. 70 Years of India-Japan Relations __________ 45 5.5.1. Strategic Autonomy______________________ 87
2.10. India-Australia _______________________ 46 5.6. Soft Power Diplomacy __________________ 89
2.10.1. India-Australia Virtual Summit ___________ 46 5.6.1. Diaspora as soft power tool _______________ 90
2.11. Group of 7 (G7) ______________________ 47 5.6.2. Religion as soft power tool ________________ 91
2.12. G20 ________________________________ 49 5.6.3. Sports Diplomacy________________________ 92
2.13. Shanghai Cooperation Organization (SCO) 50 6. MISCELLANEOUS _____________________ 94
2.13.1. Regional Anti-Terrorist Structure _________ 50 6.1. India and Multilateral Development Banks _ 94
2.14. Bengal Initiative for Multi-Sectoral Technical 6.2. India’s Development Cooperation ________ 95
and Economic Cooperation (BIMSTEC) ________ 51

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1. INDIA AND ITS NEIGHBOURHOOD RELATIONS
1.1. INDIA-CHINA

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1.1.1. CHINA’S LAND BORDER LAW
Why in News? China’s Current border standoff with India
• Recently, India and China held the 16th round of talks (after a gap of 4
China’s new law on land borders months) to revive the stalled process of disengagement and de-escalation
has come into effect from 1st in Eastern Ladakh.
January, 2022. • The ongoing standoff began when Chinese soldiers crossed the LAC
About the Land Borders Law around the Galwan River valley (Eastern Ladakh) during May 2020 leading
to high levels of tension between India and China.
• It designates the • 15 rounds of discussion have already taken place and the two countries
responsibilities of various have withdrawn the front-line troops from the north and south banks of
agencies in China, from the Pangong Lake and at Gogra Post but have been unable to withdraw troops
military to local authorities, at other friction points- Patrolling Point-15, Demchok and Depsang.
in guarding the frontiers.
Related news
• China shares its land boundary with 14 China's new maritime law comes into force
countries including India, third longest • As per this law, foreign vessels will have to submit details
after Mongolia and Russia. to Chinese authorities when transiting through its
o With India and Bhutan China is yet to 'territorial waters'.
finalise the border agreements. o This claim is contested by its neighbours in the region
and by US.
India’s Concerns against the new law o The waters around China are hotly contested. Under a
• India described new law as matter of “nine-dash line” map, China claims most of the South
China Sea (SCS) as its sovereign territory.
concern as it can affect existing bilateral
pacts on the management of the border and the overall boundary question.
• Law could formalize some of China’s recent action in disputed regions with India and Bhutan.
• There is also the possibility of China limiting the water flow in the Brahmaputra or Yarlung Zangbo river
as the law calls for measures to protect the stability of cross-border rivers and lakes.
• China might endeavour to prevent India’s infrastructure development using military and diplomatic
coercion under the umbrella of the new law.
Disputed border with China
• Border is not clearly demarcated
throughout and there is no mutually
agreed Line of Actual Control (LAC).
o LAC is divided into three sectors:
Western sector (Ladakh), Middle
Sector (Himachal Pradesh and
Uttarakhand) and Eastern Sector
(Arunachal Pradesh and Sikkim).
• India’s consistent and principled
position is that Arunachal Pradesh and
the entire UTs of J&K and Ladakh have
been, are and shall be an integral part of
India.
• Possible impact of unresolved border dispute on India
o Economic fallout: Chinese companies have made into certain sensitive Indian economic sectors.
o China’s growing alliance with Pakistan: Through investments (e.g. CPEC), and supporting Pakistan on
various issues like on Kashmir in UNSC, on terrorism, on NSG etc. has emboldened Pakistan to continue
its policy of asymmetric warfare against India.
o Strengthening alliances: India can work towards strengthening its partnership with all major powers,
including the US, Europe, Japan and Russia, and enhancing its own standing in the great power
constellation.
o Impact on Perceptions: Indian public sentiment on China, already turning sour due to the pandemic,
is further deteriorating. Among other things, this has resulted in calls to boycott Chinese products,
partners and sponsors.

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Reasons for unresolved border dispute
• Resourceful/strategic sections:
Ladakh is valuable to India as it
helps supply freshwater,
geothermal resources and as it
connects the Chinese Xinjiang
province with western Tibet,
Ladakh is also of great
significance to China.
• Growing power imbalance with
China: China, with an economy
five times the size of India’s, is
also investing heavily in the
region, countering Indian
influence.
• Perceived threat from India’s geopolitical interests: India’s Neighbourhood First policy, closer ties with
the United States and its allies and growing influence in the Indian Ocean region were perceived negatively
in China.
• Growing Power imbalance: India sees itself as the net security provider in South Asia and Indian Ocean
Region, and China is challenging India’s position, especially with CPEC, and also with its investments and
growing relationship with India’s
neighbours.
Way forward
• Better understanding of each
other’s regional initiatives through
open dialogue is important to build
trust.
o The Indo-Pacific vision is as much
a developmental necessity for
India as the BRI may be to China.
• Mutually demilitarising the armed
forces deployed by both countries.
• A balanced trade and economic
relationship.
• Acknowledgment of India’s
multilateral aspirations by China can
allow both to collaborate on
emerging issues like climate change.
• Accommodate the legitimate
interests on key partnerships:
China’s with Pakistan and India’s with the United States.

1.2. 1971 INDO-PAK WAR AND ITS IMPACT


Why in News?
Commemorating 50 years of India’s victory in 1971 war, the
nation paid tribute to the brave Indian soldiers for their
sacrifice which ensured victory in the war.
What was the context behind the war?
• The Indian subcontinent represents a geographically
unique region with long shared ethnic, linguistic,
cultural, and historical ties, especially with immediate
neighbors.

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○ E.g. Nepal with UP-Bihar, Bangladesh with West Bengal-Assam, present day Pakistan with bordering
Indian states etc.
• Under the ‘Partition of India’, the territory of Pakistan was divided into two distinct geographies, i.e. West
Pakistan (now Pakistan) and East Pakistan (now Bangladesh).
• With West Pakistan’s dominance over institutions such as Parliament, Judiciary etc., the people of East
Pakistan soon started to face injustice and suppression on various fronts such as-
○ At Social Level: The Bengali ethnic Outcome of the war: Simla Agreement Simla Agreement was
identity and language didn’t get signed by India and Pakistan on 2nd July 1972 as a peace treaty
due recognition. E.g. Urdu was seeking to reverse the consequences of the 1971 war and a blue
declared as the national language print for managing future relationship. It contained a set of
despite Bengali or Bangla speaking following guiding principles:
majority. • A mutual commitment to the peaceful resolution of all issues
○ At Economic Level: Low through direct bilateral approaches.
representation of East Pakistan • To build the foundations of a cooperative relationship with
special focus on people to people contacts.
people in jobs, including Army and
• To uphold the inviolability of the LoC in Jammu and Kashmir.
Civil Administration, with almost
• Respect for each other’s territorial integrity, sovereignty,
400% gap in per capita income of
unity and political independence.
two regions. • Non-interference in each other’s internal affairs
○ At Political Level: The nation was • Sovereign equality
largely controlled by military • Abjuring hostile propaganda
leaders (Ayub Khan from 1958-69 Criticism: Through the agreement, India desired a lasting solution
and Yahya Khan from 1969-71). The to the Jammu and Kashmir issue and improved bilateral relations
West Pakistan further failed in- with Pakistan. However, it could not live up to its expectations on
✓ Meeting greater autonomy both the fronts as Pakistan blatantly violated the terms of the
demands of East Pakistan in agreement through its repeated efforts to raise the Kashmir issue
1966, and in multilateral forums, using terror to interfere in India’s internal
affairs and involve third parties in finding a solution to the dispute.
✓ Democratic transfer of power
Significance of the agreement:
to Sheikh Mujibur Rahman after
• Agreement helped India to build international pressure on
his party (Awami League) Pakistan for its unilateral actions against India. For eg- during
landslide victory in the 1970 Kargil War in 1999.
election. • Recently, India successfully thwarted the USA’s attempt to
• Soon, it turned into forceful mediate on the Kashmir issue.
suppression of East Pakistan, i.e. killing Way ahead: India should reinvigorate its efforts to engage
of unarmed civilians, mass exodus and Pakistan in a constructive dialogue and strategically use soft
rape under Operation Searchlight and diplomacy for reinforcing the spirit of the Simla agreement with
in turn Bangladesh Liberation War. more maturity.

Why did India enter into the war?


• Threat to Humanity: The atrocities on the people of then East Pakistan involved blatant misconduct and
the injustice was a threat to others, as Martin Luther King Jr. said, ‘Injustice anywhere is a threat to justice
everywhere'.
• Mass Exodus of People: By November 1971, nearly 10 million refugees entered into India because of
atrocities, creating a huge socio-economic challenge for Border States.
• Silence of the Western nations over atrocities: Despite repeated Indian requests, UN and other nations
like US failed to move towards a peaceful solution to prevent annihilation of a community.
• Pakistan aggression against India: Finally, the air-strikes on Indian territory from West Pakistan in 1971,
under Operation ‘Chengiz Khan’, dragged India into war in order to uphold peace, justice and humanity.
Conclusion
The 13-day war was not just a blitzkrieg operation to change the political structure of a nation. It was a war to
protect the moral and democratic traditions. Thus, the Swarnim Vijay Parv is a celebration of the political
leadership and professionalism of our armed forces, as well as of the country, considered as the oldest living
civilization of the world.
India-Bangladesh vs India-Pakistan: Contrasts and Learnings
Over the period of 50 years, in the east, India and Bangladesh have cooperated at bilateral and regional level. The same
has not been possible in North-west, with Pakistan. This can be attributed to following reasons-

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• Political stability and policy continuity: This has helped Delhi and Dhaka to deepen bilateral ties over the last
decade.
o In contrast, the political cycles in Delhi and Islamabad have rarely been in sync.
• Concern for mutual security: Cooperation in countering terrorism built deep mutual trust between Dhaka and
Delhi. That trust helped deal with many complex issues facing the relationship.
o In the case of Pakistan, its army has sought to use cross-border terrorism as a political lever to compel India
to negotiate on Kashmir.
• Depoliticization of important economic issues: Delhi and Dhaka have steadily moved forward on issues relating to
trade, transit and connectivity by dealing with them on their own specific merits.
o Pakistan, on the other hand, has made sensible bilateral commercial cooperation and regional economic
integration hostage to the Kashmir question.

1.3. INDUS WATER TREATY


Why in news?
The 118th meeting of the Permanent Indus Commission (PIC), was held in
New Delhi.
Highlights of the meeting
• Pakistan had assured India of all necessary actions to ensure the free
flow of Fazilka drain into the Sutlej river.
• The Indian side underscored that all its on-going hydro-electric power
(HEP) projects including Pakal Dul, Kiru and Lower Kalnai are fully
compliant with the provisions of the Treaty.
About the Indus Water Treaty (IWT)
• IWT was signed in 1960, between India and Pakistan and brokered by
the World Bank.
• Objective: The treaty fixed and delimited the rights and obligations of both countries concerning the use
of the waters of the Indus River system.
• Provisions for sharing of river water: All the water of the eastern rivers – Sutlej, Beas, and Ravi which
amounts to around 33 million acre-feet (MAF) annually — is allocated to India and is for unrestricted use.
And the water of western rivers – Indus, Jhelum, and Chenab which is around 135 MAF annually has been
assigned mostly to Pakistan.
Why abrogation of the treaty is not a viable option?
o India has the right under the Treaty to
• Going against international law: The IWT does not have a
generate hydroelectricity through run-
unilateral exit clause. Even the severance of diplomatic and
of-the-river projects on the western consular relationships between India and Pakistan cannot
rivers. These are subject to specific terminate the IWT.
criteria for design and operation. And, • Effect on India’s other lower riparian state: The abrogation
under the Treaty, Pakistan has the of the IWT will send alarm bells ringing in India’s other
right to raise objections on design of lower riparian country like Bangladesh which receives
Indian hydroelectric projects on about 91% of its waters from the rivers flowing from India.
western rivers. • China’s cooperation on hydrological data: Growing China-
✓ Run-of-the-river hydroelectricity Pakistan nexus can result in China withholding Hydrological
data in response to the abrogation of the treaty.
project is a type of hydroelectric
o Such data plays an important role in gauging the
generation plant whereby little, or
amount of water coming from Tibet into Arunachal
no water storage is provided. Pradesh and taking measures to avert any major
• Other Provisions: disaster or floods in the state.
o It provided for the funding and
building of dams, link canals,
barrages, and tube wells—notably
the Tarbela Dam on the Indus River and the Mangla Dam on the Jhelum River.
o The treaty required the creation of a Permanent Indus Commission, with a commissioner from each
country, in order to maintain a channel for communication and to try to resolve questions about
implementation of the treaty. In addition, a mechanism for resolving disputes was provided.

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Prevalent issues within the treaty
• Pakistan’s frequent opposition to the Indian projects: The opposition is majorly on the issue that whether
projects on Jhelum and Chenab conform to the technological specifications specified in the agreement.
The issue has seen its manifestation in several projects such as Kishanganga Hydroelectric Project (KHEP),
Jhelum, Ratle Hydroelectric Project, Chenab and the recent Pakal Dul, Kiru and Lower Kalnai in Jammu &
Kashmir on the Chenab river.
• Politics: For instance, Pakistan maintains high troop levels and alertness around the canals on the eastern
front, fearing that India will try to take control of the western rivers.
o As the diplomatic relations between India and Pakistan saw a downward spiral in recent times,
some observers in India called for abrogation of the treaty.
• Compounding effect of climate change: Melting of glaciers may increase water flow in the short term, but
it will also deplete groundwater recharge in the long run. Similarly erratic rainfall bringing further
challenges to address potential flood risks. This is likely to aggravate tensions around issues of water
distribution and flow management.
• Conflict-resolution method through a third-party guarantor: The World Bank is the guarantor of IWT and
relies on the riparian to report any issue related of illegal intervention in the river flows. However, there is
no definite way of knowing if illegal intervention really happened or it is only a case of low seasonal flows
due to climate variability.
• No regular data sharing as planned in the treaty: The flow data sharing is significantly important to
understand the dynamics of river basin in totality.
Way Forward
• Globally advocating India’s position: Over the years, India has been a generous upper riparian state as it
has utilized only about 93% of its stipulated water storage capacity. Further, only about 25% of the total
estimated capacity of electricity that can be harnessed from the three western rivers in Kashmir has been
tapped so far.
o This position could be advocated to counter Pakistan’s attempts to internationalize the issue by
involving World Bank.
• Seeking cooperation: Efforts could be made to seek cooperation with Pakistan in areas wherever it is
possible. For example, Article VII of the IWT talks about “future cooperation” and calls for taking up joint
studies and engineering works on the rivers.
• Changing approach: Both countries could also benefit from focusing more on a sub-basin level instead of
managing the area with a singular holistic approach. Interventions at the sub-basin level that can account
for contextual factors, such as the socio-economic composition of the area and the existing hydrology,
would make the action more effective.
• From rationality to relationality: To achieve a stronger Indus Water Treaty, both states must shift from
acting based on the rationality of water sharing and focus instead on its relationality (benefit sharing).
Relationality expands the definition of water from surface water quantity, to water quality, preservation
of wetlands and biodiversity, soil erosion, conjunctive use of ground and surface water, and nature-based
solutions.
• Renegotiating the treaty: A parliamentary panel has recommended renegotiating the treaty with Pakistan
to address the impact of climate change on water availability in the Indus basin and other challenges which
are not covered under the treaty.
• Incorporate contemporary principles of international watercourse laws such as Helsinki Rules: This is crucial to
balance the rights and duties of the riparian states and for the holistic and integrated water resources
management of the Indus river system.
o The Helsinki Rules on the Uses of the Waters of International Rivers is an international guideline that
asserts the rights of all bordering nations to an equitable share in the water resources and is
applicable to all drainage basins that cross national boundaries, except where other agreement
between bordering nations exists.
Conclusion
Indus Water Treaty is often cited as an example of the possibilities of nonviolent coexistence that exist despite
the troubled rapport between both neighbouring countries.

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India’s current mechanism of cooperation in river water sharing with other countries

Countries Mechanism for cooperation


India-Nepal • The Kosi Treaty of 1954, under which the embankments in Nepal were established and
maintained.
• The Mahakali Treaty pertains to sharing water of Mahakali river.
India-China • Memorandum of Understanding upon provision of Hydrological Information of the River
Brahmaputra.
• Memorandum of Understanding on Hydrological Data Sharing on River Sutlej.
• Expert-Level Mechanism to discuss interaction and cooperation on provision of flood season
hydrological data and emergency management.
India- • The Ganges Treaty is an agreement to share surface waters at the Farakka Barrage near their
Bangladesh mutual border.
• System of Transmission of flood forecasting data on major rivers like Ganga, Teesta,
Brahmaputra, and Barak during the monsoon season.
India- • Comprehensive Scheme for Establishment of Hydro-meteorological and Flood Forecasting
Bhutan Network on rivers Common to India and Bhutan.
• A Joint Group of Expert (JGE) on Flood Management.

1.4. INDIA’S ENGAGEMENT WITH TALIBAN


Why in news?
India has reopened its
Embassy in Kabul after
nearly ten months of
Taliban takeover of
Afghanistan.
More on news
• The developments
acquire significance as
India had refused to
recognise the Taliban
administration in
Afghanistan and had
urged the international
community to go slow in recognising the Taliban.

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• The present engagement is therefore seen as
change in India’s approach with respect to Taliban.
• The government has however clarified that the
ongoing visit did not amount to granting diplomatic
recognition to the Taliban regime in Kabul.
Why should India engage with Taliban?
• Rising International Engagements: India has so far
focused only on the isolating Taliban. However,
beyond a point, this option will yield diminishing
returns, as many other countries are now starting
to engage the Taliban and India is an important
stakeholder in Afghanistan.
o 14 nations have opened their missions in Kabul
in the last ten months.
• Declining Influence of Pakistan: While Pakistan
remains a pivotal player even today, its influence and control over the Taliban are circumscribed by its
own economic, diplomatic, and security challenges.
o A view that has gained ground in the Indian establishment is that it is time to de-hyphenate Pakistan
from the Taliban especially in this scenario.
• National Security: Afghanistan in the past, provided space to terror groups like al Qaeda and ISIS. Taliban
also has ties with the Lashkar-e-Taiba and Jaish-e-Mohammed. An engagement with the Taliban would
give an opportunity to convey Indian concerns directly and encourage those elements within the group
who wish to open up its diplomatic choices.
• Mutually beneficial: Taliban encouraged India to reopen its mission in Kabul, resumed direct flights to the
country and also accept Afghan military trainees.
• Greater possibilities of diplomatic engagement: Taliban in power are more divided than they were as a
fighting force, and that the situation may provide room for a layered political and diplomatic engagement
with different actors.
• Reconnecting with natives: Indian outreach to the Taliban will help it reconnect with the Afghan people,
a link that snapped after the Taliban takeover last August.
Downsides of India’s engagement
• Shows inconsistency in India’s policy: India has always supported “an Afghan-led, Afghan-owned and
Afghan-controlled” process for enduring peace and reconciliation in Afghanistan. It involved active
engagement with the elected Afghan Government and isolation of the Taliban regime.
• Security concerns: India continues to face threat from terrorist factions such as the Haqqani group, which
is a key member of the Taliban. Also, recently a UN Taliban monitoring committee report shows that terror
groups are continuing to find safe haven on Afghan soil with the Taliban’s support.
• No change in the ideology of Taliban: Taliban has not changed from its previous mediaevalism. Attacks on
minorities are continued and restrictions on women have increased, from not being allowed to attend
school to curbs on free movement in public spaces and at work.
o This is in conflict with India’s ethos and may create negative perception of India for Afghan people.
• Dealing with Pro-China Neighbours of Taliban: As India increases its engagement with Taliban, it would
need to redefine its relationship with Tajikistan as the latter has a deeply adversarial relationship with
Kabul and has moved very close to Beijing in the past decade.
o China today is Tajikistan’s biggest debt holder and its biggest investor. Also, Dushanbe is a supporter
of Chinese repressive policies against Sunni Muslim Uighur community.
Way ahead
The template behind India's engagement with the Taliban is based on India's historic ties with Afghanistan.
Taliban is here to stay and for India, there is no alternative but to deal with it. It is necessary for both sides to
take into account each other’s concerns and improve diplomatic and economic relations.

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1.5. INDIA-SRI LANKA

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1.5.1. SRILANKAN CRISIS
Why in news?
Recently, India has extended financial assistance for purchasing fuel, food, and medicines, to help Sri Lanka
tackle a massive economic and energy crisis.
More in news
• India has assured its continued cooperation in coping with the unprecedented economic crisis in the Sri
Lanka.
• Sri Lanka has also asked India if it can reach out to some of its bilateral and multilateral partners like the
US, Japan, Australia, and ASEAN, and play “guarantor” to seek financial help for Sri Lanka.
• Sri Lanka has been going through a severe economic crisis caused in some measure by a shortage of
foreign exchange resulting in lengthy power cuts, price spirals and a shortage of essential items.
Reasons for the Sri-Lanka crisis
• Depletion of foreign reserves: Economic mismanagement has depleted most of Sri Lanka’s foreign
reserves. Sri Lanka defaulted on its foreign debt worth $51 billion as it faces the worst economic crisis, for
the first time since its independence in 1948.
o Sri Lanka’s high dependency on imports for essential items like sugar, pulses, and cereals may result
further in the economic meltdown as Sri Lanka lacks foreign reserves to pay for its import bills.
o The situation was further aggravated due to additional tax cuts which ended up hurting Government
Revenue.
• Debt Trap Diplomacy: It is claimed that Sri Lanka was caught in a vicious web of money lending by China
for infrastructure projects (Hambantota Port) and were unable to pay them back.
• Fall in tourism: The rise of the Covid-19 pandemic and Easter bomb blast 2019 led to a fall in tourism
revenues, as loss of visitors from three key countries- India, Russia and UK.
o Tourism earnings fell from $4 billion in 2018 to $500 million in 2021.
o Tourism is Sri Lanka's third largest foreign exchange earner.
• Agriculture crisis: In 2020, due to ban on chemical fertilizers and switching overnight to make agriculture
100% organic had a negative impact on the economy, especially in rice and sugar production.
• War-induced inflation: The ongoing Russia-Ukraine war resulted in steep price inflation of crude oil,
sunflower oil and wheat.
• Fall in FDI: Foreign direct investment (FDI) has drastically decreased to $550 million in 2020 as compared
to $790 million and $1.6 billion in 2019 and 2018, respectively.
• Weak currency: In 2022, Sri Lankan Rupee depreciated by more than 50 percent against the US dollar, 31.6
percent against Indian Rupee.
Role of India in Sri Lanka crisis
• Enhance production: India can boost the essential medicines production, and later develop Indian
pharmaceutical production facilities in the short-term, while working to build the capacity of Sri Lanka’s
own industry.
o As of now, 85% of all pharmaceutical products in Sri Lanka are imported, which makes them vulnerable
to price spikes.
• Investment: The credit lines and currency swaps will help Sri Lanka address its immediate concerns, and
investments approach will provide a long-term solution.
• Counter China: Any disillusionment in Colombo with Beijing eases India’s effort to keep the Lankan
archipelago out of China’s ‘string of pearls’ game in the Indo-Pacific, as witnessed by cancellation of the
Chinese energy projects in the Jaffna Peninsula.
• Global exports: Opportunities for Indian exporters to export products such as tea, textile products and
increase market share.
• Defence: India is offering a free-Floating Dock Facility and a Dornier Reconnaissance Aircraft to Sri Lanka,
along with a training team. This will further help boost security in the Indian Ocean region.
• Infrastructure creation: India has an opportunity to have a major role in infrastructure creation in Sri
Lanka as highlighted by renewable energy projects in Mannar and Pooneryn in north, port development
etc.

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o Indian businesses can build
supply chains that intertwine
the Indian and Sri Lankan
economies in goods and
services ranging from
tourism to information
technology services.
• Resolving past issues: Crisis
should be used as an opportunity
for New Delhi and Colombo to
thrash out a solution to the Palk
Bay fisheries dispute, a
longstanding irritant in bilateral
ties.
o Also, India should ensure
that the present crisis is not
used to step up smuggling
activities and trafficking in
both countries.
Conclusion
Neither Sri Lanka nor India can afford to have strained relations. India needs to engage with Sri Lanka even
more closely in line with India’s Neighbourhood First Policy and step-up people-centric developmental
activities while scrupulously clear of any interference in Colombo’s domestic affairs.
Developments in India-Sri Lanka Fisheries Dispute
• Recently Sri Lankan authorities have detained 68 Indian fishermen and 10 boats on charges of alleged poaching
and illegal fishing in the island nation’s waters.
• Reasons behind India- Sri Lanka fisheries dispute:
o Lack of defined maritime boundary: Though India and Sri Lanka signed four Maritime Boundary Agreements
between 1974-76, there is no well-defined maritime boundary between the two countries.
✓ The 1974 agreement between the two nations ceded the resource-rich Katchchativu islet to Sri Lanka,
which the Tamil fishermen had traditional fishing rights for centuries.
o Tightened surveillance: Since 2009, the Sri Lankan navy has tightened surveillance of its northern maritime
boundary to halt a potential return of Tamil insurgents.
o Depletion of marine resources along the Tamil Nadu coast (due to incessant bottom-trawling) has meant that
the Indian fishermen are drawn to the relatively resource-rich Sri Lankan waters.
✓ Sri Lanka has banned bottom-trawling in their waters in 2017.

1.5.2. GEOPOLITICS OF INDIA-SRI LANKA-CHINA TRIANGLE


Why in news?
China’s growing presence in Sri Lanka is
generating concerns about the Indo-Sri Lanka
bilateral relationship.
How the growing clout of China affects India-
Sri Lanka bilateral relationship?
• Threat to maritime security: A permanent
People's Liberation Army (PLA) presence in
the eastern Indian Ocean will certainly
inhibit the Indian Navy’s deployment
options and will neutralise the geographical
advantage it enjoys in these waters.
o For instance, recently, Sri Lanka has
approved a Chinese firm – Sinosar
Etechwinee Joint Venture is barely 50
km from Tamil Nadu coast.

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• Favouring China over India: China is viewed as a more reliable partner in enabling domestic economic
development timely completion of projects, cost-effectiveness and quality of infrastructure etc.
o For instance, Last year, Indian government took five months to approve a loan moratorium sought
by Colombo while Beijing approved an additional loan from its development bank in no time.
• Impact on trade: Chinese imports were reduced by 8 percent in 2020, while in contrast, imports from India
went down by approximately 19 percent.
Way ahead to reinvigorate India-Sri Lanka Ties
• Exploring new
domains: In
education,
healthcare, and
tourism, India is a far
stronger partner
than China.
• Leveraging India’s
Soft Power: In the
technology sector,
India could create
job opportunities by
expanding the
presence of its information technology companies in Sri Lanka thereby boosting the island nation’s service
economy.
• Sharing experience: As Sri Lanka embarks on the arduous project of drafting a constitution, India can lend
its own experience in managing minority rights and diverse populations.
• Strengthening cultural relations: The two countries can look to create a Buddhism knowledge and tourism
corridor.
• Cooperation in maritime security: As maritime countries in the Indian Ocean, India and Sri Lanka have a
shared interest in ensuring maritime security and safety.

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1.6. INDIA’S NORTHEAST NEIGHBOURS

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1.7. INDIA-NEPAL

1.7.1. BANGLADESH-BHUTAN-INDIA-NEPAL (BBIN) MOTOR VEHICLES AGREEMENT


(MVA)
Why in News?
India, Bangladesh, and Nepal have finalized the enabling Memorandum of Understanding (MoU) to
implement the BBIN MVA, pending ratification by Bhutan.
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More on News About SASEC Program
● It brings together Bangladesh, Bhutan, India, Maldives, Myanmar,
• Asian Development Bank is
Nepal, and Sri Lanka for project-based partnership.
providing technical, advisory and
● The member countries share common aspirations of economic
financial support to it as part of its growth, economic diversification, inclusive growth and
assistance to South Asian sustainability, and energy access and security.
Subregional Economic ● Aim: To promote regional prosperity, improve economic
Cooperation (SASEC). opportunities, and build a better quality of life for the people of the
• The World Bank has also sub-region.
announced its interest to support ● SASEC Operational Priorities Sector: Transport, Trade Facilitation,
BBIN MVA. Energy and Economic Corridor Development.
● Asian Development Bank (HQ: Metro Manila, Philippines) serves as
About BBIN MVA SASEC secretariat.
● As of March 2022, SASEC member countries have signed and
• It was launched in 2015 after the implemented 72 ADB-financed investment projects worth over
failure of agreement on regional $17.28 billion in priority sectors.
MVA among South Asian
Association Regional Cooperation (SAARC) in 2014 due to concerns associated with Pakistan.
○ In 2017, Bhutan opted out temporarily as its parliament didn’t ratify the agreement due to
environmental and project sustainability concerns.
○ Once implemented, it will provide- Safe, Economical,
Efficient and Environmentally sound road transport in the
region.
Major Benefits of BBIN MVA
• Strategic Significance:
o Improved Investment and Cooperation in critical sectors
such as energy.
o Bring Growth and Development in Northeast India.
o Counter China’s Belt and Road (BRI) Initiative by reducing
Nepal’s geopolitical dependency on China.
o Help India in strengthening its role as a First Responder
to any natural disaster or security hazard in Himalayan countries.
o Help in Act East Policy by connecting it with India-Myanmar-Thailand Trilateral Highway for
unhindered movement and boost the trade and commerce with ASEAN countries.
• Socio-Economic Significance
o Enhanced Economic Integration by enabling seamless cross-border movement of goods, vehicles, and
people. According to World Bank, the MVA has the potential to increase regional trade traffic by 60%.
o Realize the full potential of trade and people-to-people contact through promotion of Sub-regional
Cooperation.
o Improved Logistics Performance Index (LPI) in the region. E.g., the Petrapole-Benapole border
crossing between India-Bangladesh Border suffers from the problem of slow exports due to long
queue times.
About the International Logistics Performance Index (LPI)
• The International LPI (World Bank) is an indicator of
logistics sector performance to benchmark and compare
the performance of different countries’ logistics sector.
• It measures the performance of six core components of
logistics in any nation (see image); rated from 1 to 5 with 1
lowest and 5 as best in that component.
• In 2018, the International LPI score of India was 3.18 (ranked
44, globally).
• Other BBIN nations had even lower LPI scores: Bangladesh-
Rank 100, Nepal- Rank 114 and Bhutan- Rank 149.

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Challenges in implementation of the agreement
• Slow pace of development in overcoming the shortcomings on access, understanding, interpretation and
application of various procedures, rules, and regulations among officials.
• Technical issues such as absence of integrated check posts at border crossings etc.
• Geographical Challenges such as Himalayan Mountains, multiple river channels, ecologically sensitive
coastal areas etc.
• Underdeveloped supporting infrastructure such as Energy, Information and Communication Technology
etc.
• Clear Ideological divide among political parties against India (citing the issue of India’s dominance in such
agreements) in Nepal and Bangladesh.
Way Forward
In 2021 and 2022, South Asia is projected to grow at 7.1% (World Bank). In such circumstances, BBIN MVA can
act as a gateway to surpass it through greater access to ASEAN and East Asian nations as well. Following steps
can be considered to reap the benefits and overcome the challenges-
• Fix timelines with early signing of Passenger and Cargo Protocols to overcome slow pace.
• Become signatory of International Conventions on road traffics (e.g. Vienna Convention on Road Traffic,
1968) to address technical issues and be on par with international standards.
• Hire Professional experts or learn from the experience of other countries to overcome geographical
difficulties.
• Build and upgrade roads, rails and waterways along with the supporting infrastructure.
• Promote discussion on mutual benefits of the project in neighboring countries to overcome ideological
differences.

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1.8. INDIA-BANGLADESH

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1.9. INDIAN OCEAN REGION
Why in news?
Recently, India’s President
praised India’s constant vigil
in protecting the Indian
Ocean region (IOR) and
advocated that India had
become a preferred security
partner in the region.
What is Net security
provider?
• Net security provider is
usually meant as
enhancing the mutual
security of more than
one country by
addressing common
security concerns,
including dealing with
transnational piracy, or responding to disasters, etc.
• It encompasses 4 different activities:
o Capacity building through training of foreign forces—both civilian and military, either at home or by
deploying trainers abroad.
o Military diplomacy through military visits and exercises.
o Military assistance primarily by supplying arms and ammunition.
o Direct deployment of military forces to stabilise a situation arising either out of an environmental
disaster,
transnational
threats, and
evacuation of
citizens from
conflict areas or
to protect self-
defined
national
interests.
• Indian Ocean
Region has threats
mostly like piracy,
drug trafficking,
IUU (Illegal, Unreported and Unregulated) fishing, human trafficking, climate change, etc.
• The growing realisation of importance of Indian Ocean Region (IOR) by the littoral states has brought
the seas in the epicentre of a strategic churn.
How does India act as a Net security provider in Indian Ocean Region (IOR)?
• India’s policies: India’s policy towards countries in the IOR is guided by the 'Neighbourhood First' policy
and Prime Minister’s vision of SAGAR (Security & Growth for All in the Region).
o India’s Neighbourhood First policy: It focuses on creating mutually beneficial, people-oriented,
regional frameworks for stability and prosperity. India’s engagement with IOR countries is based on a
consultative, non-reciprocal and outcome-oriented approach, which focuses on delivering benefits
like greater connectivity, improved infrastructure, stronger development cooperation in various
sectors area, security and broader people-to-people contacts.
o SAGAR Policy: The vision of SAGAR is building greater trust and promoting respect for maritime rules,
norms and peaceful resolution of disputes.
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• Geostrategic positioning: Indian Ocean encompasses about 1/5th of the world’s sea area and the Indian
Peninsula extends 2000 kms into the sea, bringing approximately 50% of the Indian Ocean within a 1000-
mile arc ascribed from Indian Territory. This is coupled with the presence of major maritime chokepoints
and Sea Lanes of Communications (SLOCs)
o This provides for a dominant position for India in the middle of the Indian Ocean linking Its national
and economic interests.
• Assistance in wake of natural disasters and calamities: India has been regularly conducting exercises to
deepen the Humanitarian Aid and Disaster Relief (HADR) cooperation and coordination among our
neighbours with the focus on sharing expertise and assisting building capabilities.
• Indian Ocean Naval Symposium (IONS): It was conceived by the Indian Navy in 2008. It is a forum that
seeks to enhance maritime cooperation among Navies of the littoral states of the IOR and helps to
preserve peaceful relations between nations.
Impediments to India for being a Net Security Provider
• Resource Availability vs Requirement: Achieving the status of net security provider can put enormous
strain on country’s finite resources and calls for manifold increase in existing military hardware.
• Existing Civil-Military Relationship: The ambiguous civil-military relationship existing in India not only
manifests itself in serious differences and lack of clarity over strategy formulation but also over
undistorted execution of formulated policies.
• Non-alignment Policy: India has ideologically followed the principle of military non-alignment with any
super power so as to retain its strategic autonomy which limits opportunities for deeper security
partnerships with other countries.
• Past Experience of Overseas Deployment of Armed Forces: The recipe of net security provider does
encompass ‘Overseas Deployment’ as a vital ingredient. However, the experiences in Sri Lanka continues
to have a dragging effect on any thought process involving overseas deployment.
• Shifting US Policy: Uncertainty in Indo-pacific policy of US would leave a vacuum in the IOR, which China
would be more than obliged to fill. Consequently, for India, this would greatly increase the scope of
maritime conflict with China, singly or collusively with Pakistan.
• Frequency of resurgence and occurrence of non-traditional threats: These include piracy, maritime
terrorism, drug trafficking, illicit weapons trafficking, illegal migrants, etc. as well as, vagaries of climate
change.
Approach needed for Net Security Provider
• Focus on capacity building and military diplomacy: India can easily enhance capacity building (mainly
training) & military diplomacy as activities as they are largely uncontroversial and cost effective.
• Higher Defence Organisation: This would enable coherent application of strategic thoughts vis-à-vis a
myopic threat assessment by individual services, which is the case at present.
o In addition, it would also facilitate establishing clearly defined priorities of defence acquisitions and
an assured budget for the same, which are pre-requisites for strategic planning.
• Formulation of a National Defence Policy: An assertive defence policy would inspire confidence, not only
within India but also amongst the small littoral nations of IOR regarding India’s intent, desire and capability
to become a net security provider in the region.
• Coherent IOR Strategy: Instead of a piecemeal strategy on stand-alone basis with each IOR nation,
coherent strategy would help in exerting a positive influence over these nations and help the smaller
nations overcome any potential inhibition towards gauging India through the prism of ‘Big Brother’
syndrome.
• Development of Andaman, Nicobar and Lakshadweep Islands: This includes Infrastructure up-gradation
in these islands and their development as a potent military base.
• Capability Enhancement of IOR Nations particularly their respective navies, would accrue immense
benefit for the entire IOR. India is already involved in training of naval personnel from various IOR nations
as part of exchange programmes.

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1.10. INDIA-MALDIVES

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2. BILATERAL, REGIONAL AND GLOBAL GROUPINGS
AND AGREEMENTS INVOLVING INDIA AND/OR
AFFECTING INDIA’S INTERESTS
2.1. INDIA-US

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2.1.1. INDIA-US DEFENCE RELATIONS
Why in news? About 2+2 dialogue
India and US sign project agreement for Air- • The 2+2 dialogue is a format of meeting of the foreign
launched Unmanned Aerial Vehicle (ALUAV). and defence ministers of India and its allies on
strategic and security issues.
More on News • A 2+2 ministerial dialogue enables the partners to
better understand and appreciate each other’s
• The Project Agreement for ALUAV is under the strategic concerns and sensitivities taking into
umbrella Defence Technology and Trade account political factors on both sides.
Initiative (DTTI). • India has 2+2 dialogues with four key strategic
o Under DTTI, there are 2 categories of partners: the US, Australia, Japan, and Russia.
projects, one, related to industry-to-
industry projects facilitated by export licenses and second done via Project Agreements (PA).
o The PA for ALUAV is a project of second category undertaken under Research, Development, Testing
and Evaluation (RDT&E) Agreement which was first signed in January 2006 and renewed in January
2015.
• Also, the fourth ‘2+2’ dialogue between India and the United States was held in Washington DC.
India-US defence relationship
• In 2016, the United States designated India as a Major Defense Partner which was elevated to Strategic
Trade Authorization Tier 1 status in 2018.
• India has signed four foundational defence agreement of USA.
o General Security of Military Information Agreement (GSOMIA) in 2002 on military information
exchange.
o Logistics Exchange Memorandum of Agreement (LEMOA) in 2016 to use each other’s military base.
o Communications Compatibility and Security Agreement (COMCASA) in 2018 for interoperability
between the two militaries and sale of high-end technology to India.
o Basic Exchange and Cooperation Agreement (BECA) in 2020 to share high-end military technology,
logistics and geospatial maps.

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2.2. INDIA-RUSSIA

2.2.1. INDIA-RUSSIA DEFENSE RELATIONS


Why in News?
At the recently held 21st India-Russia summit, both nations signed a 10-year defence cooperation pact in the
background of ongoing deliveries of the S-400 air defence systems.
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Background of India-Russia Defence and Security Major agreements at 21st India-Russia Summit
Cooperation Along with the defence cooperation, the major
agreements signed between two nations include-
• India-Russia relationship is based on the principles • Joint production of more than 600,000 AK-203
of mutual trust, respect for each other’s core assault rifles to advance self-reliance in the defence
national interests and similarity of positions on manufacturing sector.
various international and regional issues, both • Promote greater economic cooperation with
nations are long standing and time-tested target to increase bilateral trade to $30b and
partners. bilateral investments to $50b by 2025.
• In 1971, both nations signed the Treaty of Peace, • Reserve Bank of India and Bank of Russia to jointly
Friendship and Cooperation and became Strategic respond against cyberattacks,
partners in 2000. • Jointly fight against terrorist organizations like ISIS-
Al Qaeda-LeT, drug trafficking and organised crime
• The 2021 summit took it another step ahead with
etc.
the first 2+2 dialogue of Foreign and Defence
Ministers to exchange views in global and regional political-security developments.
Defence and Security Cooperation
The Defense relationship between India and Russia have various dimensions including but not limited to arms
trade-
• Military and military-technical cooperation has remained a pillar of Special and Privileged Strategic
Partnership between India and Russia.
• India purchased the MIG-21 from Russia S-400 Triumf Air Defence Missile System and CAATSA
(erstwhile USSR) in 1962 and the warm • The S-400 air defence system is one of the most advanced
mobile air defence missile system in the world.
relationship and commonality of interests
o It is equipped with four different missiles, and it can
expanded this cooperation to other armed engage enemy aircraft, ballistic missiles, and Airborne
forces with promotion of licensed Warning And Control System (AWACS) planes at
production, maintenance, and repair multiple ranges.
operations in India. • The US cabinet has recently passed a bill for sanction
• In 2009, a bilateral intergovernmental waiver under CAATSA Act to avoid retaliatory US actions on
Military and Technical Cooperation was India to help deter aggressors like China as US cannot afford
signed for the period 2011-20. to alienate a strategic ally and a defense market like India.
• Today, joint research, development and • CAATSA Act, also known as Countering America’s
Adversaries Through Sanctions Act, was enacted by USA in
production of advanced defence
2017 to impose sanctions on three nations, i.e., Russia, Iran,
technologies and systems and subsequent and North Korea.
export to mutually friendly third countries
are the defining feature of India-Russia defence and security cooperation. E.g.
○ Joint Venture (JV) to produce BrahMos Missile System.
○ JV to manufacture AK series assault rifles at under Make-in-India program.
○ Shareholders agreement on JV to manufacture Ka-226T helicopters in India.
• Recently, despite US threat of sanctions, India began taking deliveries of the S-400 Triumf Air Defence
Missile System (under a $5.4 billion deal of 2018) for supply of five S-400 regiments to offset air defence
capability gaps.
Changing Dynamics of Defence and Security Cooperation
The S-400 Triumf deal signifies deepening of ties between India and Russia. But this step is not an isolated
incident but a culminating effect of changing global and bilateral dynamics-
• Changing World Order: The rising new bipolar world with USA and China as global powers has increased
the closeness of two nations with rival superpowers, i.e.
○ Russia is becoming close to China while tensions exist between India-China, and
○ India is becoming close to the USA while tensions exist between Russia-USA.
• Geo-strategic Interests: With a reasonable shift in India’s approach from an inward-looking (strategically
as well as economically) and non-aligned nation, the old commonalities of interest between two nations
are replaced by divergence in geo-strategic interests. E.g.
○ Indo-Pacific Region: India joining the Quadrilateral Security Dialogue (Quad) for a free and open Indo-
Pacific region with Japan, USA, and Australia.

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○ Eurasian Region: Commonality of interest between India and Europe to curb growing Chinese
strategic assertiveness in the region.
• Economic Relationship: Unlike India-Russia with bilateral trade of just $7.5 bn in 2019, the economic
relationship between India-USA or Russia-China are far more diverse and deeper.
o E.g., In 2014, Russia-China signed a $400 bn gas deal. Similarly, the trade between India-USA in 2020-21
stood at $80.5 bn with $13.8 bn of FDI.
• Modernization with Diversity: To modernize and diversify away from Soviet-era and Russian military
equipment, India has expanded its defense purchases from other nations like France, Israel, and the USA.
E.g., Between 2016-20, Russia accounted for 49% of Indian arms purchase in comparison to 70% in 2011-15
(as per SIPRI Fact Sheet).
○ In 2014, Russia removed its self-imposed sanction on arms sale to Pakistan, considered as a warning
on Indian diversification.
Indo-Soviet Treaty on Peace, Friendship and Cooperation : Key features of the Treaty
Peace Friendship Cooperation
• Each Party shall respect the • The treaty condemned • Treaty binds both parties to
independence, sovereignty and colonialism and reclaimed for abstain from providing any
territorial integrity of the other their complete elimination. assistance to any third party that
party and refrain from interfering • The treaty aims to maintain engages in armed conflict with
in the other's internal affairs. regular contacts with each the other Party.
• To halt the arms race and to other on major international • To consolidate and expand
achieve general and complete problems affecting the mutual co-operation in economic,
disarmament, including both interests of both countries by scientific and technological fields
nuclear and conventional, under means of meetings and on the basis of the principles of
effective international control. exchanges of views. equality, mutual benefit and
most-favored-nation treatment.
Significance of the Treaty
• Upholds principle of Strategic Autonomy as it is not a military alliance but showcases India’s capacity for
independent action.
• Convergence of interests as it symbolised an extraordinary convergence of national interest of both countries
on the most critical issues of war and peace.
• Contemporary significance: its geopolitical underpinnings remain of enduring value, and are reflected in the
special and privileged Strategic Partnership.

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2.3. INDIA-UNITED KINGDOM (UK)

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2.4. INDIA-EUROPEAN UNION

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2.4.1. INDIA-FRANCE

2.4.1.1. INDIA-FRANCE DEFENCE PARTNERSHIP


Why in news?
Recently, India and France agreed to strengthen defence and security partnership.

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More on news
• Countries agreed on enhancing intelligence and information sharing, bolstering mutual capabilities,
expanding military drills and pursuing new initiatives in maritime, space and cyber domains.
• France’s reiteration to expand strategic cooperation with India comes nearly two months after the
unveiling of a new security alliance AUKUS by Australia, the UK and the US – perceived as a counter to
China’s aggression in the Indo-Pacific region.
o AUKUS involves building submarines for Australia, and its announcement had angered the French
government after Australia pulled out of a separate submarine deal with France.
Significance of deepening defence and security partnership with France
• Defence modernization: France remains a market to procure increasingly critical military technologies as
India struggles with its indigenous defence industries and increasingly strained defence budgets.
o For example, India can engage with France to acquire critical naval nuclear reactor technology.
• Protecting the Indian Ocean Region: France being a resident power (with its colonial territorial
possessions like reunion island) in the Indian Ocean makes it a stakeholder in the region. Protecting the
Indian Ocean thus becomes a Common Shared Interest.
o Indo-French partnership also plays a vital role in advancing peace, stability and security in the Indo-
Pacific region based on democratic values and a common belief in strategic autonomy and rule of law.
• Countering Terrorism: France backed the India’s proposal for a global conference on terrorism. France
also continues to support India on the Kashmir issue.
• Support to India’s ‘Atmanirbhar Bharat’ through defence industrialisation, joint research and technology
development in India across a wide range of advanced capabilities.
• Pathway for deeper engagement with Europe on Indo-Pacific: French presidency of the European Union
in 2022 also presents an opportunity to India to give further shape to EU's engagement in the security of
Indo Pacific region under the EU Indo-Pacific Strategy.
Conclusion
Strengthening defence partnership with countries like France are significant for India’s influence on the global
stage and addressing emerging areas of concern.

2.5. INDIA-EURASIA
Why in news?
The changing dynamics in international relations and
growing significance of Eurasia necessitates India to
have a new, integrated approach to Eurasia as per
foreign policy experts.
About Eurasia
Eurasia refers to the largest continental area
on Earth, comprising 93 countries of Europe, Challenges for expanding India’s footprint in Eurasia
Middle East and Asia and is home to over 5 • Geographical Limitations: India lacks direct geographical
billion people. access to Central Asia.
• China’s dominance: Beijing’s muscular approach to the long
• There is however no shared international
and disputed border with Bhutan and India, its pursuit for
understanding of what constitutes the a security presence in Tajikistan, the active search for a larger
region. role in Afghanistan are examples of China’s assertiveness.
What is leading to the growing significance • Pakistan’s constant reluctance: Pakistan has declined to join
the recently held Delhi Regional Security Dialogue on
of Eurasia in the present world order?
Afghanistan as a part of developing a Eurasian strategy.
• Strong prospects for economic growth:
The region has an average annual per
capita income growth rate of about 4-5% over the past few years.
• Dramatic rise of China and its growing strategic assertiveness: The strategic magnitude of (projects like)
the BRI, RCEP, Sino-EU trade deal have added to Beijing’s powerful leverages in Eurasia.

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• Changing Geostrategic Alignments: There is growing tie-up with the Eurasian Economic Union (EEU),
cooperation in the Arctic region, energy, trade, and in the military domain through joint production and
military exercises.
• Regional geostrategic alliances: China and Russia are increasingly drawing in Iran, another adversary of
the US. All three have recently deepened their ties with a joint military exercise in the Gulf of Oman and
Iran is also a vital component of the Chinese Belt and Road Initiative.
o Concurrently, the China-Iran-Russia-Turkey-Pakistan strategic pentagonal is taking shape that will
impact the geopolitics of Eurasia and West Asia.
• Region being developed as a countermeasure to Indo-Pacific Region: China and Russia as a
countermeasure are developing Eurasia as a power block.
Need for India to have integrated approach towards Eurasia
• Energy Security: Eurasian states are prospective long-term partners of India in energy (oil, natural gas)
and natural resources (uranium and iron ore).
• Economic Objectives:
o The strategic peninsular location of Eurasia connecting various sub-regions of Asia and West Asia can
be well facilitated by India’s recent initiatives such as the Make in India, Skill India and Digital India.
o Tourism potential: India is an emerging tourist nation and Eurasia is important to garner tourists from
the region.
o Medical and Pharmaceutical industry: India is working on setting up a Central Asian e-network with
its hub in India, to deliver, tele-education and tele-medicine connectivity, linking all the five Central
Asian States.
Major Initiatives by India
• Strategic objectives: • Boosting Connectivity to balance China's growing
o Eurasian Region is interested in presence in the region
decreasing their dependence on China o International North-South Transport Corridor
and Russia and is prepared to support (INSTC) to gain smooth access into Central Asia and
India in its bid to strengthen its position beyond bypassing Pakistan.
in the region. o India, Iran and Uzbekistan discussed ways for joint
o Stability in Central Asia: It is a part of use of the Chabahar port for trade and enhancing
India’s “extended neighborhood” and regional connectivity.
o Memorandum of Intent was signed to open a
of great geo-strategic value to India.
maritime route between Chennai and Vladivostok
o Complementing Indo-Pacific strategy: (Russia’s Far East).
If the Indo-Pacific is about Delhi’s new • India-EU Strategic Partnership: Common roadmap to
maritime geopolitics, Eurasia involves guide joint action and further strengthen the India-EU
the reorientation of India’s continental Strategic Partnership over the next five years.
strategy needed to address the
continental issues such as border disputes.
• Strengthening Cultural relations: India’s ancient civilisational links exist with Eurasia; the collaboration
between the Sangha and the Shreni in the Buddhist era produced lasting interaction between the two
regions.
Way ahead for India
• Greater Engagement with EU and NATO Members: India’s Eurasian policy must necessarily involve this as
a crucial step towards a sustained security dialogue with Europe.
• Intensifying India-Russia Dialogues: Russia has also extended the scope of Greater Eurasian Partnership
(GEP) to include countries like India, Iran, South Korea.
• Geo-Economic Cooperation: India can pursue EU countries to engage in Indo-Pacific narrative to mobilise
massive economic resources for sustainable development of regional infrastructure, wield political
influence and leverage its significant soft power to shape the Eurasian discourse.
• Collaboration with Iran and Arab peninsula: India’s partnerships with these countries is also critical in
overcoming Turkey’s alliance with Pakistan.
• Balancing the priorities: India needs to balance its Connect Eurasia policy with its Act East Policy and Indo-
Pacific Strategy. Being an important member of BRICS, SCO, and RIC, India must utilize the platforms to
promote multi-dimensional strategic cooperation with Russia and China.

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2.5.1. INDIA-CENTRAL ASIA

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2.5.2. INDIA TURKMENISTAN RELATIONS

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2.6. INDIA-MIDDLE EAST

2.6.1. I2-U2 JOINT WORKING GROUP


Why in news?
India along with United States and two Middle east countries Israel, and the United Arab Emirates set up a
new joint working group “I2-U2” to enhance cooperation and partnerships.

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Significance of the grouping
• I2-U2 which stands for India, Israel, UAE and the US mirrors the Indo-Pacific Quad, and marks the growing
convergence between Indian and U.S. interests in Asia and a fundamental shift in India’s foreign policy
in the Middle East.
o Keeping its distance from the United States, Israel, and the Persian Gulf states on regional issues has
long been India’s default mode in the Middle East.
o This also highlights that India is now ready to move from bilateral relations conducted in separate silos
towards an integrated regional policy.
• The initial focus of the group will be on economic issues rather than strategic ones where the format
would leverage complementary capabilities in areas such as energy, climate, trade, regional security.

2.6.2. INDIA-UAE RELATIONS

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2.6.2.1. INDIA-UAE COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (CEPA)
Why in news?
Recently, India-UAE signed have the CEPA to deepen their economic ties.
Salient features of India-UAE CEPA
• It is the first deep and full free trade Agreement to be signed by India with any country in the past decade.
• The agreement will cover Trade in Goods and Services, Rules of Origin, Technical Barriers to Trade (TBT),
Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, IPR, Investment, Digital Trade and
Cooperation in other Areas.

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2.6.3. INDIA-ISRAEL

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2.7. INDIA-AFRICA

2.7.1. CHINA’S GROWING FOOTPRINT IN AFRICA


Why in news?
China has been investing across the African continent throughout the last decade and China is also using
private military companies to expand its footprint in Africa.

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About China’s increasing footprint in Africa
• China launched 'Going Out' policy in 2001, which encouraged mainly Chinese state-owned enterprises
(SOEs) to venture abroad, both to gain access to natural resources and to open up new export markets
for Chinese finished goods.
o Belt and Road Initiative (BRI) is seen as an enhanced version of the 'Going Out' policy.
• With a total trade of USD 200 billion in 2019, China is Africa’s biggest bilateral trade partner.
o It is estimated that 62% of African bilateral debt is owed to Chinese creditors.
• China continues to provide arms and equipment to African countries and has emerged as a key arms
supplier to the Continent.
o China’s first military base outside its mainland is in Djibouti.
• Increasing Africa’s dependency on China has raised fears of unsustainable debt.
o There are also concerns over Chinese labour practices, often viewed as unfair, with various
cases reported of harsh working conditions, low salary below the minimum wage standards etc.
o Chinese companies have also been observed that often they carry out covert activities such as spying.
How India’s approach for Africa is
different from China?
India’s developmental partnership,
with Africa is guided by the
‘Kampala Principles’—a set of 10
principles enunciated by Indian PM
in 2019.

• Developing together as
equals: Contrary to China’s
focus on resource extraction
and elite level wealth
creation, India’s bilateral
partnership with African
countries can best be defined
by the spirit of DEVELOPING
TOGETHER AS EQUals.
o Indian engagement lays emphasis on long term i.e. enhancing Africa’s productive capacity,
diversifying skills and knowledge, and investing in small and medium-sized enterprises.
o India through its investments of over $11b, has focused on core competencies of human resources
development, information technology, maritime security, education and health care.
o The ambitious India-Japan-Africa Growth Corridor (IJAGC) aims to achieve closer developmental
cooperation with Africa. It is envisioned as a maritime corridor, built on (pre)existing routes with
India, combining Indian soft power in Africa with Japanese financial backing.
• Facilitates local participation: Indian project construction and financing in Africa is aimed at facilitating
local participation and development. Indian companies rely more on African talent and do capacity
building of the local population
o India claims to maintain non-discriminatory approach by transferring technologies, creating
employment, and posing minimum threat to local producers.
• Capacity building: The majority of seats for capacity building in Centers of Excellence all over India through
the International Technical and Economic Cooperation (ITEC) programme, are reserved for African
countries. India also offers scholarship programmes for African students in Indian educational
institutions.
o The e-Vidya Bharati and the e-Aarogya Bharati initiatives focus on awarding 15,000 scholarships to
African students from its inception in 2019 through to 2024.
• Fight against the COVID-19 pandemic: India has gifted 150 metric tons of medical aid to 25 African
countries. Under the ‘Vaccine Maitri’ initiative, India supplied 24.7 million doses of Made in India COVID
vaccines as grants, and commercial and COVAX supplies to 42 countries in Africa.
o A few African countries such as Mauritius are pushing for health-care partnerships in traditional
medicines and Ayurveda for boosting immunity.

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2.8. INDIA VIETNAM

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2.9. INDIA-JAPAN

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2.9.1. 70 YEARS OF INDIA-JAPAN RELATIONS
Why in news?
• Recently, Prime Ministers of India and Japan held 14th India Japan Annual Summit in New Delhi.
More on News
• Also, year 2022 marks the 70th anniversary of the establishment of their diplomatic relations.
• As a mark of India’s deepest respect for former Japanese Prime Minister Shinzo Abe, a one-day national
mourning was observed in India following Abe’s assassination.
Key Highlights of the summit
Initiative/cooperation Features
Clean Energy • Launched under the overall ambit of the 'India-Japan Energy Dialogue' established in
Partnership (CEP) 2007 for cooperation towards achieving sustainable economic growth, addressing
climate change and ensuring energy security.
Joint Crediting • Established for implementation of Article 6 of the Paris Agreement related to private
Mechanism (JCM) capital flow to developing countries.
Sustainable • Both countries signed Memorandum of Cooperation (MoC) on Sustainable Urban
development Development such as decentralized domestic wastewater management, intelligent
transport management system etc.
Climate initiative • Japan would be joining the Indian-Swedish climate initiative LeadIT (Leadership Group
for Industry transition) to promote heavy industry green transition.
Development of • Both sides agreed to launch ‘Sustainable Development Initiative for the Northeastern
Northeast India Region of India’ which includes both ongoing projects and possible future cooperation in
connectivity, healthcare, new and renewable energy, as well as initiative for
strengthening bamboo value chain.
Seat at UNSC • Indian Prime Minister reiterated India's support for Japan's candidature for a non-
permanent seat at the UNSC for the term 2023-2024.
Investment • Japan to invest Rs. 3.2 lakh crores in India over next five years. Both sides are working as
'One team -One project' on Mumbai-Ahmedabad high-speed rail corridor.
Cybersecurity • MoC signed in the field of cybersecurity for information sharing, capacity building
programs and cooperation.

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2.10. INDIA-AUSTRALIA

2.10.1. INDIA-AUSTRALIA VIRTUAL SUMMIT


Why in news?
Recently, the 2nd India-Australia Virtual Summit was held between India’s and Australia’s Prime Minister.

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Highlights of the summit
• Both countries have developed a substantial progress in deepening political, economic, security, cyber,
technology and defence cooperation.
• A significant outcome of the summit was the decision to hold annual summits at the level of the Heads of
Government under the Comprehensive Strategic Partnership (CSP).
• Also, India and Australia have pledged to work together for building more trusted and resilient supply
chains and ensuring broad and inclusive growth in the strategic Indo-Pacific region.
Recent Developments in India-Australia relations
Key Highlights of the summit
Economic • Both countries agreed to establish annual summits between PMs under CSP.
and trade • Increase cooperation between India's National Investment and Infrastructure Fund and
cooperation Australia's Future Fund, which is a sovereign wealth fund.
• Renewal of India-Australia MoU on Tourism Cooperation.
Climate, • Australia to invest over AUD 280 million to drive collaboration in areas such as clean technologies,
energy, maritime shipping, disaster resilience, information sharing space, innovation etc.
science, • MoU on Australian critical minerals project between Khanij Bidesh India & Australia’s critical
technology minerals facilitation office to mine critical minerals.
and research • Cooperation on cyber governance, cyber security, capacity building, cybercrime, digital
cooperation economy, and critical and emerging technologies via inaugural India-Australia Foreign Ministers’
Cyber Framework Dialogue.
People-to- • Establish Taskforce on Education Qualifications Recognition to improve arrangements for
people ties recognition of qualifications for access to higher education, and support employment
opportunities.
COVID-19 • Promote fair, timely and equitable access to high quality, safe, effective and affordable COVID-19
cooperation vaccines, treatments and critical medical supplies globally.
Security and • Establish Young defence officer exchange program to boost military cooperation, improve
defence training opportunities and enhance capabilities.
cooperation
Regional and • Cooperation between Quad members on advancing its positive and ambitious agenda to promote
multilateral regional stability and prosperity.
cooperation

2.11. GROUP OF 7 (G7)


Why in news?
Indian PM participated in the G7 summit which was recently held in Germany.
Highlights of the summit
• Partnership for Global Infrastructure and Investment (PGII) scheme: G7 leaders unveiled the scheme to
mobilise USD 600 billion in funding by 2027 to deliver transparent and game-changing infrastructure
projects in developing and middle-income countries, in a move seen as a counter to China’s Belt and Road
Initiative.
• Emission Reduction: Environment ministers from the G7
announced a target to have a highly de-carbonised road sector
by 2030 and to phase out greenhouse gas emissions from their
energy sectors by 2035.
• LiFE Campaign: India highlighted Global Initiative for LiFE
(Lifestyle for Environment) campaign with a goal to encourage
an eco-friendly lifestyle.
• On Russia-Ukraine Crisis led energy crisis: India highlighted the
need for equal energy distribution amongst the population of
rich and poor nations.
About G7
• The G7 is an informal forum of leading industrialised nations, which dominate global trade and the
international financial system.

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• Purpose: It meets annually to discuss issues such as global economic governance, international security
and energy policy, besides a host of other issues topical to the prevailing situation.
• Members and Partners: It include Canada, France, Germany, Italy, Japan, the United Kingdom and the
United States as core members.
o In addition to the core nations, there are other invitee nations (acting as partners) that are
democracies and classified emerging economies.
✓ In the recent summit for example, India was invited along with Argentina, Indonesia, Senegal and
South Africa as guests.
o There are also various organisations such as IMF, World Bank, WHO that are part of the international
governance.
o Russia joined G7 in 1998, creating the G8, but was excluded in 2014 for its takeover of Crimea.
o The EU is not a member of the G7 but attends the annual summit.
Significance of India’s presence in G7 summits
• It provides an opportunity to cement the perception that India has the will and capability to contribute to
the larger international cause.
• Gives India a greater exposure to be closely embedded in the international system of governance.
o With major institutions such as the IMF and World Bank, the Indian story is heard with greater focus
and scope remains for furtherance towards positive conclusions.
• Developing focused relationships and partnerships: As a nation with abiding geopolitical interests in
Europe, West Asia, the Trans-Caucasus, Indian Ocean Region and the Indo Pacific, the Indian presence at
major summits of this nature reflect its deep desire towards engagement across the board.
Challenges with G7
• Dealing with the Russia-Ukraine war: G7 nations have although imposed sanctions and bans on Russia.
But, because of their huge dependency, they cannot take harsher steps against Russia.
o For example, import restrictions on Russian oil
and gas would also hurt their own economies. Achievements of G7
European nations get a quarter of their oil and • G7 played crucial role in setting up a Global
fund to fight malaria and Aids in 2002.
40% of their gas from Russia.
• G7 finance ministers agreed to back a global
• Internal disagreements among group members: For minimum tax of at least 15% on multinational
e.g. clash of the USA with other members over taxes companies.
on imports and action on climate change. • In 2015, members launched the Global Apollo
• Perceived as an exclusive group: Several countries Program to tackle climate change through
and individuals still perceive the G7 as an exclusive, clean energy research and development.
closed group that disregards the interest of smaller
nations.
• China’s rise: There is a growing sense that China poses a threefold threat to G7 countries- economically,
ideologically, and geopolitically.
o The massive Belt and Road Initiative (BRI) has prompted concerns about Beijing’s influence over
developing countries. The build back better world was announced last year to counter the BRI but the
idea fell through.
• Substandard progress on tackling global problems: Such as phasing our fossil fuels (G7 accounts for
nearly 25% of global CO2 emissions), terrorism (ISIS has thousands of fighters from G7 countries), migrant
crisis (West Asian crisis in Syria, Yemen, Iraq led to a migrant exodus towards the European nations) etc.
• Perceived as outdated: The group no longer reflects the current state of geopolitical realities.
o For instance, many incumbent members like Italy and Canada possess less economic and political
power in comparison to non-members like India and China.
• Non-Binding nature: Unlike other bodies such as NATO, the G7 has no legal existence or a permanent
secretariat. Further, the meeting commitments are non-binding in nature.
o All decisions and commitments made at G7 meetings need to be ratified independently by governing
bodies of member states.
Way Forward
• More Representation- The grouping should become more representative in nature and emerging
economies like India and South Korea must be made a part of the group.

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• Catering to the global challenges- The new principles and policies of the group should reflect a global
outlook rather than merely focusing on the myopic interests of the developed world. This would result in
prudent tackling of global problems like climate change.
• India’s Engagement at G7- India being a rising economic power and a responsible global stakeholder, it
remains one of the few nations which can engage with the G-7 in providing solutions to global problems.

2.12. G20

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2.13. SHANGHAI COOPERATION ORGANIZATION (SCO)

2.13.1. REGIONAL ANTI-TERRORIST STRUCTURE


Why in news?
Recently, meeting of Shanghai Cooperation Organization's (SCO's) Regional Anti-Terrorist Structure or RATS
held in New Delhi to discuss enhancing cooperation in fighting various regional security problems.
About Regional Anti-Terrorist Structure (RATS)
• The Agreement on RATS as a permanent SCO body was signed in 2002.
• RATS has been a coordinating center for combating terrorism, separatism and extremism at the regional
and global levels.

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o RATS platform provides a mechanism for interaction for ensuring the security of the SCO member
states from transnational crimes associated with terrorism, such as illegal migration and trafficking
of drugs, weapons, explosives, etc.
• Under RATS’ working relationship, the member countries coordinate with each other and other global
organisations to gather information to tackle terrorism.
o RATS also maintains a database of terrorists and terror organisations from across its member
countries.
o Within the RATS framework the anti-terrorist capacity of the SCO member states is being developed
by holding the annual joint antiterrorist exercises.

2.14. BENGAL INITIATIVE FOR MULTI-SECTORAL TECHNICAL AND


ECONOMIC COOPERATION (BIMSTEC)

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2.14.1. BIMSTEC CHARTER
Why in news?
The fifth summit of the regional grouping, the Bay of Bengal Initiative for Multi-Sectoral Technical and
Economic Cooperation (BIMSTEC), held virtually in Colombo.
Important outcomes of the Summit
• Adoption and signing of the BIMSTEC Charter presents BIMSTEC as “an inter-governmental
organization” with “legal personality.” The grouping now views itself not as a sub-regional organisation
but as a regional organisation.
Lead Sector
• To re-constitute and reduce the number of Bangladesh Trade, investment and development
sectors of cooperation from 14 to a more Bhutan Environment and climate change
manageable seven. Each member-state will serve India Security, including energy
as a lead for a sector (Refer table). Myanmar Agriculture and food security
• Adoption of the Master Plan for Transport Nepal People-to-people contacts
Connectivity applicable for 2018-2028 which lays Sri Lanka Science, technology and innovation
out a guidance framework for connectivity related Thailand Connectivity
activities in the region in the future.
• Three new agreements signed by member states:
o BIMSTEC Convention on Mutual Legal Assistance in Criminal Matters;
o BIMSTEC Memorandum of Understanding on Mutual Cooperation in the field of Diplomatic Training;
o Memorandum of Association on Establishment of BIMSTEC Technology Transfer Facility.

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2.15. BRICS

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2.15.1. 14TH BRICS SUMMIT
Why in news?
BRICS Leaders adopted the ‘Beijing Declaration’ in 14th BRICS Summit, convened under the Chairmanship
of China, in virtual format.
Highlights of the Summit
• Discussions:
o The leaders held discussions in fields of Counter-Terrorism, Trade, Health, Traditional Medicine,
Environment, Science, Technology & Innovation etc.
o On Ukraine issue, group support talks between Russia and Ukraine and expressed support to efforts
of the UN Secretary-General, UN Agencies and International Committee of the Red Cross (ICRC) to
provide humanitarian assistance.
• India proposed initiatives: India called for strengthening of the BRICS Identity and proposed
establishment of Online Database for BRICS documents, BRICS Railways Research Network, and
strengthening cooperation between MSMEs.
o India will be organizing BRICS Startup event this year to strengthen connection between Startups in
BRICS countries.
• Denial of Safe Haven to Corruption: BRICS welcomed the BRICS Initiative on Denial of Safe Haven to
Corruption which further strengthen anti-corruption capacity building through education and training
programs and enhance anti-corruption exchanges and cooperation within multilateral frameworks.
• Others:
o The High-level Dialogue on Global Development, non-BRICS engagement segment of the Summit was
also held.
o Leaders will continue to discuss the possibility of admitting new countries to the five-nation grouping
on the basis of full consultation and consensus.
✓ Recently, Iran and Argentina have applied to join the BRICS mechanism. This could be the first
expansion of the group since South Africa was included in 2010.

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3. EFFECT OF POLICIES AND POLITICS OF DEVELOPED
AND DEVELOPING COUNTRIES ON INDIA’S
INTERESTS
3.1. INDO-PACIFIC REGION

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3.1.1. INDO-PACIFIC ECONOMIC FRAMEWORK FOR PROSPERITY (IPEF)
Why in News?
Recently, India agreed to be a part of the Indo-Pacific Economic Framework for Prosperity (IPEF), a U.S.-led
economic grouping comprising 14
countries.
About IPEF
• IPEF is a U.S.-led framework for
participating countries to solidify
their relationships and engage in
crucial economic and trade matters
that concern the region, such as
building resilient supply chains
battered by the pandemic. It is not a
free trade agreement.
• Member states: US, Australia, Brunei,
India, Indonesia, Japan, South Korea,
Malaysia, New Zealand, the
Philippines, Singapore, Thailand, Fiji,
and Vietnam.
o Together, these countries account for 40% of the global GDP.
• Additionally, the framework would be open to other countries willing to join in the future.
• The economic framework broadly rests on four pillars (See infographic).
• Countries are free to join (or not join) initiatives under any of the stipulated pillars but are expected to
adhere to all commitments once they enroll.
• IPEF is more about standard setting and facilitating trade and will not involve more market access for its
members. Nor will it negotiate lower tariffs.
Significance of IPEF
• Better Economic Partnerships: Establishing new rules of commerce to strengthen economic partnership
among participating countries.
• Rule based Indo-Pacific: Building a free and open Indo-Pacific that is connected and prosperous, secure as
well as resilient, and has sustainable as well as inclusive economic growth.
• Making supply chains more resilient, thereby protecting against costly disruptions that lead to higher
prices for consumers.
• Countering China: IPEF will help to counter the growing economic and strategic influence of China in the
Indo-Pacific.
• Strengthening partnership on key global issues: by focusing on clean energy, decarbonization, tackling
the climate crisis, enforce effective tax, anti-money laundering, and anti-bribery regimes etc.
Significance of IPEF for India Concerns for India
• Stated objectives of IPEF include pursuing rules in
• Participation in regional trade: For India, after
digital economy, such as standards on cross-border
Regional Comprehensive Economic data flows and data localisation. This is something
Partnership (RCEP) exit, the IPEF membership India has been avoiding in all its free trade deals as it
keeps it in the room on Asian trading does not want to lose sovereignty over its data.
arrangements. • The IPEF also wants to frame rules on labour
• Aligned to domestic requirements: IPEF’s standards, environment norms and decarbonization,
non-specific and flexible nature also suits which India has never been keen on, including in its
India, providing scope of negotiations for free trade pacts.
environmental restrictions on fossil fuels, data • US could also use IPEF to pressurise India on
supporting a permanent moratorium on customs
localization etc.
duties on electronic transmissions at the WTO.
• Better economic opportunities: IPEF is
providing India another opportunity to be part of a mega economic arrangement, but outside the
influence of China.

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• Participation in resilient supply chains: building resilient supply chains is one of the motives of the IPEF.
India can consider members as alternative sources for its raw materials requirements.
Issues with IPEF
• Lack of clarity: Concerns are on the feasibility of a grouping in which U.S. officials have made clear would
neither constitute a ‘free trade agreement,’ nor a forum to discuss tariff reductions or increasing market
access.
• Short in countering China: In its current format, the IPEF might not be able to counter China’s economic
dominance in the region owing to the lack of direct incentives offered in IPEF.
• Advancing U.S. interests: U.S. appears to be making the deal more about benefits to the U.S. economy
than to the Indo-Pacific region as a whole.
• Overlap with BDN and B3W: The conceptual baggage of IPEF (setting “rules,” “standards,” and
“principles”) has already appeared and been tested in both the Blue Dot Network (BDN) launched in 2019
and the Build Back Better World (B3W) initiative launched in 2021. Both B3W and BDN were defined in
terms of countering China and its Belt and Road Initiative (BRI). Neither has so far produced much tangible
substance and momentum.
• Possible violation of WTO rules: IPEF is not proposed as an FTA. In the absence of an FTA, WTO rules will
not permit granting of preferential treatment amongst IPEF members.
• Absence of dispute settlement mechanism: Another critical question is: what kind of dispute settlement
mechanism would be incorporated in the IPEF to avoid unilateral actions by signatory countries?
Conclusion
3Ts—Trust, Transparency, and Timeliness—as mentioned by the Indian Prime Minister are very important for
the success of this initiative. Trust and transparency will be built only if members, particularly the US,
accommodate each other’s interests. If achieved, both will lead to timely delivery of the intended outcome. If
the US is not accommodative and driven by its own interests, the IPEF may not be a success
Significance of IPEF for U.S.
• IPEF is part of the U.S.’s more than a decade old “Pivot to Asia” programme, re-imagining the Indo-Pacific as a
geographic construct including America (QUAD is also part of the same pitch).
• U.S. allies and partners in the region view the U.S. military and diplomatic presence in the region as welcome but
they also expect US to be an active and reliable partner in regional economic affairs.
Reasons for slow pace of engagement with Indo-Pacific
• U.S. strategy fails to account for regional economic trends – particularly the fact that in the last two decades the
region has increasingly become economically integrated through a series of FTAs, several of which incorporate
China but not U.S.
• It fails to account for divergent interpretations of the geographic boundaries of the Indo-Pacific.
Indo-Pacific strategies by other countries
Country Idea Objectives
EU EU Strategy for • Solidify and defend the rules-based international order, by promoting
Cooperation in the inclusive and effective multilateral cooperation based on shared values and
Indo-Pacific principles.
• Establish mutually supportive trade and economic relations with the region.
Japan Free and Open Indo- • Develop a free and open Indo-Pacific region as “international public goods”,
Pacific Strategy through ensuring the rule-based international order, in a comprehensive,
inclusive and transparent manner.
• Attaching importance to ASEAN's centrality and unity, in order to bring
stability and prosperity for every country as well as secure peace and
prosperity in the region as a whole.

3.1.2. QUAD
Why in News?
Recently, second ever in-person meeting of the Quad was held.
About Quad
• Quadrilateral Security Dialogue (Quad) is an informal association of India, the United States, Australia,
and Japan. The group met for the first time in 2007 on the sidelines of the Association of Southeast Asian
Nations (ASEAN).
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o Its origin can be traced back to the evolution of Exercise Malabar and the 2004 Tsunami when India
conducted relief and rescue operations for itself and neighboring countries and was later joined by
the US, Japan and Australia.
• Set up to counter the growing might of China
economically and militarily, this version eventually
dissipated in 2008.
o India was particularly sensitive to China’s
reaction at the time given its desire for a
Nuclear Suppliers’ Group waiver.
o Also, there have been doubts about the utility
of a quadrilateral since India already has
trilaterals with Japan and the U.S., and Australia
and Japan.
• In 2017, faced again with the rising threat of China,
the four countries revived the Quad. Quad 2.0 is the
outcome of substantial groundwork over the 2017-
2021 period.
o The core objective of the Quad is to secure a
rules-based global order, freedom of
navigation and a liberal trading system.
o It is considered an alliance of maritime
democracies, and the forum is maintained by
meetings, semi-regular summits, information
exchanges and military drills of all the member
countries.
Significance of Quad for India
• Balancing China’s influence: India is working with
Quad partners to offer alternatives to China’s Belt
and Road Initiative, a project that undermines
India’s territorial sovereignty and regional primacy.
• Rising importance of Indo-Pacific: QUAD provides
India with a powerful platform to advance East
Asia’s interests, strengthen its Act East policy and
work more on platforms like Asia Africa Growth
Corridor.
• Evolving Foreign policy strategy: Aligning with like-
minded countries without making a formal alliance
or discounting its relationship with countries
outside Quad is a hallmark of India’s evolving
foreign policy strategy.
• Supplementing India’s defense capabilities: Quad can help India overcome its limitations pertaining to
finances, naval capacity, military reconnaissance, and technological and surveillance capabilities.
• Additional collaboration on emerging threats: All four states have been the subject of extensive and
persistent cyberattacks emanating from nation-state-supported institutions, notably from China.
Challenges for Quad
• Implication on India’s other bilateral/multilateral engagements: Recently, China argued that by moving
closer to the US and the US-led Quad in recent years India has worsened India-China and India-Russia
relations and halted progress in the development of BRICS and Shanghai Cooperation Organisation.
• Unclear objectives: Such ambiguity does not project a good signal because many political observers are
simply viewing it as an anti-China alliance, which undermines its potential in other essential areas such as
climate change issues and vaccine diplomacy.
• Unresolved issues
o Climate Change issues: India has worked with Quad countries on the Solar Alliance, Paris Accord etc.,
but has not yet signed on to Net Zero and ending coal deadline.

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o Critical Technologies and Resilient Supply Chains:
While India is keen on building alternate supply
chains to end dependence on China, it is not part of
the Osaka track, that includes other Quad
countries, when it comes to cross border data
flows.
• Conflicting signals from US: Even as the agenda for the
Quad meeting is being evolved, the US announced a
new trilateral defence partnership with Australia and
the UK (AUKUS) leaving friends and allies mystified.
• Divergence on acceptable risks and costs: Reasons like
existence or absence of direct territorial disputes with
China, perceptions of the potential risks of retaliation
by China and finally the limitations of each nation’s
strategic culture.
• China’s influence: China has strong economic ties with
Quad members, especially Australia, which can be used
to coerce or influence nations in its favour. This can
turn out to be problematic for India.
Way forward for Quad
• Collective action: Collective security among the Quad
nations has to be worked to
Related information: Global Security Initiative (GSI)
safeguard the member nations’ Recently, Global Security Initiative (GSI) was put forward by China to
freedom and security. counter the US Indo-Pacific strategy and the Quad .
• Need for clear vision: Quad nations • GSI calls for a "common, comprehensive, cooperative and
need to explain the Indo-Pacific sustainable" security and building an Asian security model of
Vision in an overarching framework mutual respect, openness and integration”.
to advance everyone’s economic and • It is envisaged to uphold the principle of "indivisible security”.
security interests. This will reassure o The principle of "indivisible security" means that no country
the littoral States that the presence can strengthen its own security at the expense of others.
of QUAD benefits the region.
• Expanding the Quad: India has many other partners in the Indo-Pacific. Therefore, India should pitch for
countries like Indonesia, Singapore to be invited to join the Quad in the future.
• Need for a Maritime Doctrine: India should develop a comprehensive vision on the Indo-Pacific, which
would ideate on the current and future maritime challenges, consolidate its military and non-military tools;
and, engage its strategic partners.

3.2. AUKUS
Why in News?
• Recently, India’s Foreign Secretary stated that AUKUS had no links with the Quad and won't impact the
functioning of the grouping.
About AUKUS
• AUKUS, by Australia, UK and US, is a new security alliance that aims for deeper cooperation in the Indo-
Pacific and greater sharing of defence capabilities within the alliance.
• The plan is to give access to cutting edge military technology to Australia by its two partners, including
futuristic capabilities like artificial intelligence and quantum technologies.
o As part of the pact, Australia will abandon its US $43 billion plan to build French conventional
submarines, and instead build vessels based on US-UK technology.
AUKUS and India
• Complications
o New Challenge in Indo-pacific: There is apprehension that the deal could eventually lead to a crowding
of nuclear attack submarines in the Eastern Indian Ocean, eroding India’s regional pre-eminence.

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o U.S’ unreliability: France’s unhappiness (due to Australia’s plan to build US-UK based vessels instead
of French) with AUKUS has complicated the situation a bit from India’s perspective as it has excluded
its long-time ally France from the grouping despite being a NATO partner.
o Provocative to China: The agreement could provoke Beijing into expanding military activity in the
littorals in the Indian Ocean.
o AUKUS vs Quad: AUKUS has taken the focus away from the Quad. The agreement suggests
preferential treatment on the part of US for a close Anglo-alliance partner.
o Impact on other multilateral engagements: Recently, France has pulled out of India-France-Australia
foreign ministers trilateral (formed to counter balance China) to protest against AUKUS.
o Technology Pursuit: Following the deepening of Quad ties, some in India were hopeful that U.S. would
consider providing the Indian Navy with nuclear submarine propulsion technology.
✓ Clarification by U.S. that the sharing of submarine propulsion technology will be only with United
Kingdom and Australia puts paid to Indian expectations.
• Opportunities
o It will strengthen the Quad’s agenda to keep the Indo-Pacific region free, open and inclusive.
✓ AUKUS could also extend itself to bolstering the Quad’s efforts on maritime exercises, security
and efforts in countering COVID-19, climate change, cooperating on critical technologies, and
building resilient supply chains.
o The pact opens up a window of opportunity for more strategic collaboration between India and
France.
o To deal with China: By clearly declaring its intention to deter China, AUKUS expands New Delhi’s
options in dealing with Beijing.

3.3. GEO-POLITICAL RISE OF SOUTH PACIFIC


Why in News?
Recently China and the Soloman
Islands entered into a security
alliance with each other.
More about news
• The pact will pave the way
for China to deploy security
forces in the Pacific Islands
as well as for the Chinese
navy, which has been rapidly
growing its fleet as well as
spreading its reach far from
China’s shore, to use its port.
• The South Pacific consists of
14 independent states and
other dependencies
administered by the U.S.,
France, Australia, and New
Zealand.
Implications of the Pact
• The security deal appears to be a direct response to the establishment or revival of larger Indo-Pacific
security groupings, in particular the AUKUS pact.
• It will impact the fragile state of Pacific multilateralism.
• Hard power focus will undermine far more pressing concerns among the Pacific Islands, ranging from the
ongoing danger related to climate change to sea-level rise.
• It will increase destabilization within the Solomon Islands and could set a concerning precedent for the
wider pacific island region.

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Significance of the South Pacific Region
• Rising China’s Footprint: Increased Chinese economic involvement comes with the peril of China
extending its engagement to the domain of security. The recent engagement with Soloman Islands is a
case in the point.
• Trade and Transportation: The pacific island sits at critical sea lanes of communications that connect Asia
and Latin America. The ideal position
Recent steps taken by US in South Pacific
they occupy is important for open and
• ‘Partners in the Blue Pacific’ Initiative: Launched by US,
safe transportation. Australia, New Zealand, Japan and the United Kingdom as an
• Rich Mineral resources and Exclusive informal mechanism for effective and efficient cooperation
Economic Zone: It is rich in minerals with the region’s small island nations.
such as copper, nickel, gold, and • Enhanced support to the region: US aims to set up two new
liquified petroleum gas and has huge embassies in Kiribati and Tonga, reopen the one in the
fishing potential. Furthermore, the Solomon Islands and appoint its first-ever envoy to the Pacific
unexplored seabed of the south pacific Islands Forum.
holds great prospects as well.
• Strategic location: Due to its geographical location, the south pacific is an ideal location for establishing a
monitoring and tracking station for satellites. For instance, India’s Mars mission was monitored in Fiji. The
region proved its worth in telemetry, tracking, and command for the Mars mission.
• Biological Diversity: The flora and fauna of this region are highly diverse and many of the species that are
found in this region are highly endemic and hence not found in any other region of the world.
Significance of South pacific for India The steps taken by India
• India’s Act East Policy: India’s relations with Pacific • India participated in the Pacific Islands
Forum (PIF) annually since 2002 as one of
Island Countries are part of the extended Act East
the 17 dialogue partners.
policy.
• At the second Forum for Indian and pacific
• Support at multilateral forums: India has been seeking island countries (FIPIC) meeting in Jaipur in
support from these countries to attain its ambition of 2016, India announced the setting up of a
becoming a permanent member of the UNSC. network of marine biology research
• Trade Potential: India’s export to the region is just 1.4 stations in the region and an institute for
percent of its export and imports from this region are sustainable coastal and ocean research.
2.5 percent of its total imports. Considering the fact • India has announced a US$ 200,000 grant in
that the Pacific economies are “very open aid to be provided to Pacific Island countries
annually.
economies, reflected in lower tariff rates”, there is
immense scope for growth on the trade front.
• Indian Diaspora in the region: India has a huge diaspora in the south pacific region (close to 0.29 million
NRIs and 0.59 million PIOs).
Way Forward
• The countries in the region should have equal access as a right under International Law, use common
spaces on sea and in the air that would require freedom of navigation and unimpeded commerce, and
peaceful settlement of disputes.
• Expansion of Indian Diplomatic Mission: Indian Diplomatic Missions are present only in two countries of
the South Pacific Islands in Fiji and Papua New Guinea apart from New Zealand and Australia in the entire
South Pacific. To enhance India’s presence in the South Pacific, New Delhi could consider establishing
diplomatic missions in the Cook Islands, Fiji, Solomon Islands, and Samoa.
Conclusion
South Pacific is increasingly becoming a contested strategic space with the growing interests of regional and
extra-regional players. China and India, which have largely ignored the region in the past are now gearing up
to augment their role in the region. At the same time Australia and New Zealand, and the USA are working to
maintain their dominant position.

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3.4. NORTH ATLANTIC TREATY ORGANIZATION (NATO)
Why in news?
NATO Summit was held recently in Madrid (Spain) amid Russia-Ukraine War.
Key outcomes of the summit
2022 Strategic Concept It is NATO's guiding document which reflects the emerging security reality.
• It identifies Russia as the most significant and direct threat to Allied security,
• Addresses China for the first time and
• Includes other challenges like terrorism, cyber and hybrid threats, maritime security etc.
Support to Ukraine and • A strengthened Comprehensive Assistance Package for Ukraine, including support in
other partners at risk areas like secure communications, anti-drone systems and fuel.
Adapting the Alliance • Agreement to cut greenhouse gas emissions by NATO as an organisation by at least 45
to emerging challenges per cent by 2030, down to net zero by 2050.
• Launch of the NATO Innovation Fund, which will invest EUR 1 billion over the next 15
years in start-ups developing dual-use emerging technologies, such as artificial
intelligence.

About NATO
• NATO was formed in 1949 with the aim of acting as a deterrent to the threat of Soviet expansion in Europe
after World War II.
• Purpose: The organization acts as a collective security alliance with the aim of providing mutual defense
through military and political means if a member state is threatened by an external country. (Article 5 of
the NATO charter).
o Article 5 has been invoked once, by the United States, in the wake of the 9/11 attacks in 2001.
• The most recent additions to NATO were Montenegro in 2017 and North Macedonia in 2020, bringing the
total number of NATO member states to 30.
o NATO's Open door policy (Article 10 of the charter), allows any European country that can enhance
and contribute "to the security of the
Why NATO is focussing on China?
North Atlantic area" to join. NATO has justified its new focus on China as a “collective
• Major Non-NATO Ally Status: It is defence” against what it views as Chinese encroachment on
a designation given by the US European interests:
government to close allies that have • Key ports, such as the Port of Piraeus in Greece, one of the
strategic working relationships with the largest in Europe, are now majority-owned by Chinese
US Armed Forces but are not members of companies.
the NATO. • Increased Chinese naval patrols in the Atlantic ocean
o The US has designated 30 other region.
countries including Japan, S.Korea, • China’s rising interest in the Arctic Sea.
Japan, Israel etc. as major non-NATO • Extensive cyberattacks on Western commercial and military
targets by Chinese state.
allies.
• Claims of Chinese ownership over the resource-rich waters
o The status confers a variety of of South China Sea, a strategically vital waterway.
military and financial advantages
such as participation in defence research Issues with NATO
projects and counter-terrorism initiatives, • Conflicts and Difference of opinion among members:
buy depleted uranium ammunition etc. NATO leaders have fundamentally different views
that otherwise are not obtainable by non- about terrorism, Russia, and European security.
NATO countries. o Conflicts among NATO members — for example,
Greece and Turkey — have sharpened.
Relevance of NATO in contemporary times • Lack of a clearly-defined mission
• To deal with a rapidly changing security • The alliance is losing its edge in strategic competition
environment: Russia's invasion of Ukraine, with an increasingly technologically advanced,
militarily capable and politically aggressive Russia.
terrorism, growing global uncertainty, more
sophisticated and disruptive cyber and hybrid threats, and exponential technological change continues
to represent a global security challenge and a threat to stability.
o It played an important role in the international security ambit.

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✓ NATO condemns Russia's aggression against Ukraine as it gravely undermines international
security and stability, and is a blatant violation of international law and offers unwavering support
for Ukraine’s independence, sovereignty and territorial integrity.
✓ For nearly 20 years, NATO Allies and partner countries had military forces deployed to
Afghanistan to ensure that the country would not again become a safe haven for international
terrorists.
✓ NATO has also remains a key pillar in the fight against the Islamic State of Iraq and Syria (ISIS)
with its support of the Global Coalition to Defeat ISIS.
o It is the longest surviving inter-governmental security organisation of the world and its membership
has increased over the period of time.
o Finland and Sweden are on the cusp of joining NATO.
• Response to COVID: NATO responded to the COVID-19 crisis by protecting military personnel, facilitating
the airlift of critical medical supplies, and harnessing resources to deliver innovative responses.
o NATO’s Eastward Expansion: Key decisions taken at the recent summit point towards NATO’s
eastward expansion from Europe to Asia-Pacific. This highlights its ensuing role in establishing peace
and stability in the Asian region.
o China has been named in the NATO’s document for the first time.
o For the first time, four Indo-Pacific countries- Australia, Japan, New Zealand and the Republic of Korea
joined a NATO summit, to deepen cooperation and address global challenges.
Conclusion
India has a long standing policy of not joining any military alliance. While there is no government proposal
yet for joining NATO, experts suggest building a very focused, carefully crafted partnership – so that India and
NATO can actually proceed with meaningful cooperation which could include joint military exercises, defense
planning for maritime contingencies and technology sharing.

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4. IMPORTANT INTERNATIONAL INSTITUTIONS,
AGENCIES AND FORA- THEIR STRUCTURE, MANDATE
4.1. UNITED NATIONS
4.1.1. UNSC

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4.1.2. UNHRC

4.1.3. UN PEACE KEEPING


Why in news?
Over 87,000 UN Peacekeepers Face Greater Threats from Complex Conflicts.

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Challenges in solving conflicts for peacekeeping forces today include
• Conflicts are driven by multiple factors including ethnic tensions and the impact of organized crime to
illegal exploitation of resources and terrorism.
• Conflicts are multi-layered i.e. not only local and national, but also regional and global. For ex, increasing
terrorist activity in Africa's impoverished Sahel region.
• Presence of conflict enhancers, including digital technologies, impact of fake news and misinformation
and usage of increasingly sophisticated means. About UN Peacekeeping
• Political and security environment • Peacekeeping operations get their mandates from
deteriorated. UN Security Council.
Steps required to make UN peacekeeping more • Their troops and police are contributed by Member
States
effective:
• They are guided by three basic principles: Consent of
• Improved medical support and equipment to the parties; Impartiality and Non-use of force except
make peacekeepers more nimble, mobile and in self-defense and defense of the mandate.
reactive, especially more helicopters. • India is the largest provider of troops and has
deployed more than a quarter of million troops over
• Increasing the number of women in
the years in as many as 49 peacekeeping missions.
peacekeeping operations as more women in
peacekeeping means more effective peacekeeping.
• Digital transformation of peacekeeping which will enable better communication and help in countering
misinformation, and the better collection and processing of information.

4.1.4. UNITED NATIONS ECONOMIC AND SOCIAL COUNCIL (ECOSOC)


Why in news?
India got elected to four United Nations ECONOMIC And Social Council (ECOSOC) bodies.
More about the news Important UN bodies under the preview of
• The bodies include the Commission for Social ECOSOC.
development, the Committee on NGOs, Commission on • International labor Organization (ILO)
• Food and Agriculture Organization of the
Science and technology for development, and the
United Nations (FAO)
Committee for economic, social, and cultural rights.
• United Nations Educational, Scientific
• India was re-elected to the committee for economic, and Cultural Organization (UNESCO)
social, and cultural rights. • World Bank Group
• India was elected in the Asia-Pacific States category along • World Health Organization (WHO)
with Afghanistan, Kazakhstan, and Oman. • International Monetary Fund (IMF)
• World Intellectual Property Organization
About ECOSOC
(WIPO)
• The 54-member ECOSOC is at the heart of the United • UN women
Nations system to advance the three dimensions of • International Fund for Agricultural
sustainable development-economics, social and Development (IFAD)
environmental.
• It was established as one of the six principal organs of the UN by the UN charter in 1945.
• Functions:
o It links a diverse family of subsidiary bodies and UN entities dedicated to sustainable development,
providing overall guidance and coordination.
o It is responsible for promoting higher standards of living, full employment, and economic and social
progress.
o It identifies solutions to international economic, social, and health problems; facilitates international
cultural and educational cooperation.
o It encourages universal respect for human rights and fundamental freedoms.
o It is responsible for the follow-up to United Nations summits and conferences.
o Financing for sustainable development.
ECOSOC Achievements
• Addressing the diversity of the world’s sustainable development challenges

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• Engaging financial and trade institutions: By convening High-level Meetings with the WTO, and UNCTAD,
ECOSOC engages the global multilateral financial institutions in support of the United Nations
development agenda.
• Advancing the humanitarian policy agenda: Since 1998, the ECOSOC humanitarian Segment has been
addressing challenges and operational
and normative progress on the
humanitarian policy agenda.
• Putting women at the heart of
development efforts: The Commission
on the Status of Women (CSW) has
played a significant role within the
United Nations intergovernmental
system in drawing attention to women’s
rights.
• Responding to the global HIV/AIDS
epidemic: Established in 1994 by an
ECOSOC resolution and launched in
1996, UNAIDS – the Joint United Nations
programme on HIV/AIDS – leads the
global response to fighting HIV/AIDS,
tuberculosis, and malaria.
• Connecting development and human rights: The Human Rights Commission was one of the first functional
commissions created within ECOSOC. It was charged with drafting the Universal Declaration of Human
Rights. The Commission was later transformed, in 2006, into the Human Rights Council.
Conclusion
India will play a major role in achieving sustainable development goals as a member of ECOSOC. India will help
other developing and underdeveloped countries in achieving their sustainable development targets.

4.2. WORLD HEALTH ORGANISATION (WHO)


Why in news?
About the proposed Sustainable Financing Model
WHO adopted a sustainable financing model It calls for members' mandatory/assessed contributions to rise
to improve the World Health Organization’s gradually to account for 50 per cent of agency's core budget by
financing model. 2028, from less than 20 per cent now.
What is the take of countries on the model?
Current financing model of WHO • USA: U.S. government opposed the reform because it has
concerns about the WHO's ability to confront future threats,
• WHO budget largely consists of two including from China.
funding types, namely assessed o It is pushing instead for the creation of a separate fund,
contributions and voluntary directly controlled by donors, that would finance
contributions. prevention and control of health emergencies.
• WHO’s work was previously funded • Brazil: WHO needed to investigate other ways to raise funds,
entirely by assessed contributions from such as charging for its services, cutting costs or relocating
Member States. operations to cheaper countries.
• While WHO’s budget has increased
substantially – from US$ 1.4 billion for 1990–1991 to US$ 5.8 billion for 2020–2021 – assessed contributions
have remained more or less static at about US$ 1 billion.
Need for Sustainable Financing Model
• Limited funding: WHO’s annual operating budget is smaller than that of many university hospitals, and
diversified among an array of public health and research projects.
• Over reliance on voluntary contribution from member states and charities, forces the agency to focus on
priorities set by funders, and makes it less able to criticise members when things go wrong.
• Persisting pockets of poverty: This leads to a situation of under and overfunding across programme
budget segments.

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o For instance, there is a chronic underfunding of areas including noncommunicable diseases,
emergency preparedness,
Other persisting challenges with WHO
and data and science
• Lack of defined functions-There is no single document which
functions.
comprehensively describes its responsibilities, obligations and powers
• Timely response to the with respect to infectious diseases.
changing public health • Recommendatory powers- Unlike bodies like World Trade
environment: Sustainable Organisation (WTO), it has no ability to bind or sanction its members.
funding is critical to respond to • Capacity to work in an outbreak-
and address areas such as o Its coordinating authority and capacity are weak and it merely
emergency preparedness, non- works as a technical organisation.
communicable diseases. o It relies on bureaucracy and regional offices for control.
• Human Resource: Budgetary o It lacks the ability to direct an international response to a life-
constraints impede the threatening epidemic.
Organization’s ability to attract
and retain the best professionals
in global health.
• Donor reliance: Top five
donors(USA, China, Japan,
Germany, UK) of voluntary
contributions represent between
30% and 60% of the financing for
WHO Programme budget.
Withdrawal of any of these major
donors leaves an immediate,
substantial funding gap that
cannot be bridged easily due to
the very limited amounts of
sustainable, flexible and
predictable financing.
o For instance, U.S. funding had
declined by 25 percent during
the COVID pandemic.
• To make long-term planning
possible and to strengthen
WHO’s ability to deliver on work to lead and coordinate global health.
Conclusion
COVID-19 crisis has demonstrated the fundamental importance of the global detection, response and
coordination roles that only WHO can play across all Member States. But delivery on this mission relies on
WHO itself being in sound financial health. Committing to the more sustainable financing of WHO is to invest
in a healthier and safer world for all of us.

4.2.1. PANDEMIC TREATY


Why in news?
Members of the World Health Organisation (WHO) held the first round of negotiations towards the pandemic
treaty.
More on News
• In December 2021, the World Health Assembly (WHA) agreed to start a global process to draft the
pandemic treaty.
• WHA adopted a decision titled “The World Together” at its second special session since it was founded
in 1948.
o Under the decision, WHO established an intergovernmental negotiating body (INB) to draft and
negotiate the contents of the pandemic treaty in compliance with Article 19 of the WHO Constitution.

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About Proposed Treaty
World Health Assembly (WHA)
• The main goal of this treaty would • The World Health Assembly is the decision-making body of WHO.
be to foster an all-of-government • It is attended by delegations from all WHO Member States and
and all-of-society approach, focuses on a specific health agenda prepared by the Executive
strengthening national, regional, Board.
and global capacities and resilience • The main functions of the World Health Assembly are to determine
the policies of the Organization, appoint the Director-General,
to future pandemics.
supervise financial policies, and review and approve the proposed
• It is expected to cover aspects like program budget.
data sharing and genome Article 19 of WHO Constitution
sequencing of emerging viruses • It gives the World Health Assembly the authority to adopt
and equitable distribution of conventions or agreements on matters of health.
vaccines and drugs and related o A two-third majority is needed to adopt such conventions or
research throughout the world. agreements.
• European Union (EU) also wants a • The WHO Framework Convention on Tobacco Control was set up
ban on wildlife markets to be under Article 19 and it came into force in 2005.
included in the treaty.
• While the EU wants the treaty
to be legally binding, the U.S.,
Brazil and India have
expressed reservations about
the same.
Need for a Pandemic Treaty
• Strengthen capacities: It
would enable countries to
strengthen national, regional,
and global capacities and
resilience to future
pandemics.
• Structure the necessary
collective action: It would set
out the objectives and
fundamental principles in
order to structure the
necessary collective action to
fight pandemics.
• Such a treaty will
o Ensure higher, sustained
and long-term political
engagement at the level
of world leaders of states
or governments.
o Define clear processes
and tasks.
o Enhance long-term public
and private-sector
support at all levels
o Foster integration of
health matters across all
relevant policy area
• It would support and focus on:
o Early detection and prevention of pandemics.
o Resilience to future pandemics.
o Response to any future pandemics, in particular by ensuring universal and equitable access to medical
solutions, such as vaccines, medicines and diagnostics.

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o A stronger international health framework with the WHO as the coordinating authority on global
health matters
o "One Health" approach, connecting the health of humans, animals and our planet.
Concerns raised against the proposed pandemic treaty
• It lacks focus, clarity, and coherence on what About International Health Regulations (IHR)
issues countries should prioritize (among • IHR are an instrument of international law that is
surveillance, outbreak notification, the sharing legally-binding on 196 countries, including the 194
of genetic sequence information, trade and WHO Member States.
travel measures etc) in a treaty and why. • IHR provide an overarching legal framework that
• It distracts from the demands for better access defines countries’ rights and obligations in
handling public health events and emergencies
to vaccines and treatments, and instead tries to
that have the potential to cross borders.
create a narrative that a lack of rules prevented • They create rights and obligations for countries,
the world from mounting an effective including the requirement to report public health
international response to the COVID-19 events.
pandemic. • It also outlines the criteria to determine whether a
• Most of the provisions that the proposed treaty particular event constitutes a “public health
look forward to including in the proposed emergency of international concern”.
pandemic treaty, are available under the
International Health Regulations (IHR). There is a need for effective implementations of those provisions.
• Government responses to COVID-19 have purportedly violated or manipulated many treaties and critics
doubt that a new treaty will generate the commitment.
Conclusion
COVID-19 pandemic is the biggest challenge to the global community since the 1940s.There will be other
pandemics and other major health emergencies. No single government or multilateral agency can address this
threat alone.
To that end, nations should work together towards strengthening the existing WHO’s mechanisms for
handling a pandemic and also a global discussion on the need for a pandemic treaty to reinforce global health
security, in particular on preparedness and response to health emergencies, in light of lessons learnt from the
pandemic.

4.3. NON-ALIGNED MOVEMENT


Why in News?
Recently, Non-Aligned Movement (NAM) has completed 60 years.
More about NAM
• The concept of not aligning a country’s policy with others can be traced to the Congress of Vienna (1814-
15) when the neutrality of Switzerland was recognized.
• Origin of NAM: Asia-Africa Conference held in Bandung, Indonesia in 1955 also known as the Bandung
Asian-African Conference.
• The principles that would govern relations among large and small nations, known as the "Ten Principles
of Bandung" were proclaimed at that Conference.
• After World War II, the world was engaged in the cold war by forming two military blocks.
• In this scenario, India followed the policy of Non-Alignment and set its priority on fighting poverty,
illiteracy, and the building of a newly independent nation. Therefore, it did not join or approved the
western block of the Soviet Union.
• The First Summit of the Movement of Non-Aligned Countries was held in Cairo, Egypt in 1961.
• India, Egypt, Indonesia and Yugoslavia pioneered the formation of the movement.
• The policy of NAM was based on the 5 principles of Panchsheel.
o The Panchsheel Agreement, (also known as the Five Principles of Coexistence), are a set of principles
to govern relations between states. They were first codified during an agreement between India and
China in 1954.

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Reasons for declining importance of NAM
• Outdated Economic Stand: For years, NAM has been trying to get rich nations to give aid to poor
nations. It wants those rich nations to commit 0.7% of their GDP as aid. This demand has not been
met, except by a few countries.
• Lack of Economic Pragmatism: Many of
the economic ideas which were in
vogue in the past are updated today.
However, many NAM members are
rooted in ideas of socialism and state
control, ideas popular during the cold
war era. This has made them impossible
to move forward.
• Duplicity: NAM today competes with G-
7, ASEAN, and the Commonwealth,
which are similar groups of nations. It
has no position even on issues like
human rights, child exploitation, and
gender issues. As a result, its members
have to follow Western dictates in this
regard.
• Lack of Leadership: The statesmen who
started NAM had a vision, today NAM
has none. There is no
leadership on global
issues, and there are also
disagreements among
the members. As a result,
the organization has no
direction as to the path it
should take.
Current Relevance of NAM
• An integral part of foreign
policy: Many developing
countries like India still follow the NAM policy. The policy to avoid colonization and imperialism continues
to remain valid for all small and developing countries.
• Check on big power ambitions: It stood as a unifying force against the traditional foreign policy of great
power and strictly restricts imperialism, nationalism, and universalism.
• Catalyst to foster South-South co-operation: NAM raises issues that are of major concern for the south
such as nuclear non-proliferation, poverty and terrorism. It initiates economic, political, and social
development corners to achieve desired results of moving from developing to developed nations.
• Voice of developing nations: Each year its strength increases which act as force and give its members to
put their points on international issues. This is significant in an increasingly changing world order.
• Alternative world power: With its strength and motive to democratize the international system,NAM has
proved its qualification as an alternative world power which would promote equality and peace all over
the world and even provide new dynamics to the existing world’s politics.
• Preservation of territorial integrity and sovereignty: NAM proved its relevance with the ideals of
preserving the independence of every nation. This policy will survive long lasting till the time a sovereign
nation-state exists irrespective of any periodical, marginal changes, in the existing system all over the
world.
Conclusion
The NAM has to think of its rejuvenation rather than becoming redundant by redefining its role in the changed
international situation. The changed scenario necessitates a shift of emphasis on priorities. On the occasion

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60th anniversary of NAM, it is important to have widespread discussions and debates about identifying the
challenges the movement has to address in the wake of dynamics of increasing bipolar tendencies of the
world.

4.4. WORLD TRADE ORGANISATION (WTO)


Why in news?
12th Ministerial Conference of the WTO was held recently.
Key takeaways of the conference under the “Geneva Package”:
Particulars Features
Curtailing harmful fishing • There would be no limitation on subsidies granted or maintained by developing or
subsidies on illegal, least-developed countries for fishing within their exclusive economic zones (EEZ).
unreported and • Also, technical assistance and capacity building shall be provided to such countries
unregulated (IUU) fishing through the WTO Fisheries Funding Mechanism.
for the next four years
Global Food Security • Binding decision to exempt food purchased by the UN’s World Food Programme
(WFP) for humanitarian purposes, from any export restrictions to address food
shortages.
E-commerce transmissions • Members agreed to continue the long standing moratorium on custom duties on e-
like music, e-books, films commerce transmissions until the subsequent Ministerial Conference or until
etc. March, 2024, whichever is earlier.
Covid-19 vaccine • Temporary waiver of certain requirements under the Agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS) concerning the use of compulsory
licences to produce covid-19 vaccines for 5 years.
Sanitary and Phytosanitary • The Declaration commits WTO members to launching a work programme to identify
(SPS) Declaration new challenges in the implementation of the WTO's SPS Agreement.

Implications for India


• Curtailing of Fisheries subsidy: Experts are of the view that although exemptions are provided but, four
years are not sufficient and would push small Indian fishers towards an uncertain future.
o Also, there is no mention of Special and Differential Treatment (given to developing countries under
WTO agreements) guidelines.
• Exemptions for World Food Programme: A blanket exemption for food exports could constrain its work
in ensuring domestic food security.

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o Also, India’s demand to seek a permanent solution on public stockholdings (PDS system) of food
grains has been pushed to MC13 in Other Unresolved Issues for India at WTO
2023. • Agricultural subsidies: The WTO views India’s Minimum
• Waiver of IPR on Covid-19 vaccine Support Price (MSP) as a trade distorting measure and
production: The TRIPS decision will placed it under amber box provisions at WTO meaning it has
boost vaccine equity, accessibility & to be capped at 10 per cent of the total value of concerned
affordability and will enable ease of product.
authorisation for production of patented o India has challenged this on the arguments that the
primary agenda for MSP and other price support
vaccines in India for domestic
mechanism is not export promotion but food security.
requirements as well as exports.
• Non-tariff barriers to trade: These include Technical
o But, the current agreement is a barriers to trade (TBT) and Sanitary and Phytosanitary
watered down version of the original Measures (SPS).
proposal made by India and South o India has been urging towards rationalization and
Africa in 2020 which demanded a standardization of these non-tariff barriers.
broader intellectual property • Negotiations on Non-trade issues like environment and
waivers on vaccines as well as labour standards. India has stated that for the time being,
treatments and tests. ‘non-trade’ must be completely kept out of the negotiating
• E-Commerce Transactions: India has table.
• Recognition of Geographic Indications (GI): The current
asked the WTO to review the extension
trading arrangement does not recognize the GI Tags
of the moratorium on custom duties as
domestically provided to goods which decreases the
developing countries including India marketability of the product in the global markets.
faced the brunt of the financial o India suggests extension of higher levels of protection
consequences of such a moratorium. to the GI for products like Basmati rice, Darjeeling tea.
o Extending duty-free market access • Investment Facilitation: India argues that developing
due to the moratorium resulted in a countries should be given flexibility for application of TRIMS
loss of $10 billion per annum globally (Agreement on Trade-Related Investment Measures) in
— 95% of which was borne by domestic policy while permitting foreign investment.
developing countries (UN
Conference on Trade and Development About WTO
report). • The World Trade Organization is the only
o India and South Africa had sought to preserve international organization that deals with the
rules of trade between countries.
policy space for the digital advancement of
• Founded in 1995, the WTO is run by its 164
developing countries by letting them generate
members, and all decisions are taken through
more revenues from customs and thereby consensus and any member can exercise a veto.
facilitate more investment. o It is the successor to the General Agreement
Challenges faced by WTO and its solutions on Tariffs and Trade (GATT), a group
founded in 1948 whose rules created the
The World Trade Organization (WTO) faces an
modern multilateral trading system.
existential crisis and its main functions are
progressively becoming ineffective. There are calls for substantial reform of the organisation due to following
reasons:
Issue Challenge Potential solutions
Ineffective The WTO has not been able to counter China’s tariff WTO needs to strengthen its
against China’s manipulation and unfair trade practices. enforcement capacity to deal with such
policies practices to become a credible trading
system.
Changed Global Developing countries like India play a large role in the The operational framework of WTO needs
Economic trading regime in the current era. to be revised to consider this changed
distributions economic balance.
Dysfunctional The U.S. has systematically blocked the appointment of Concerted efforts need to be made to
WTO appellate new Appellate Body members (judges) which it believes make the appellate body functional and
body has resulted in unfavorable rulings for the US in its trade dispute settlement system operational.
disputes.
Long decision- As the decision making is through consensus, it takes a Member countries need to iron out the
making process long time and most of the time political and ideological differences to arrive at a common
differences come in a way of reaching a consensus. ground.
Lack of With an increasingly global trading system, exclusion of Efforts need to be made at making the
inclusiveness some countries makes it a less effective organization. organisation fully representative.

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Countries such as Iran, Iraq, Lebanon and Uzbekistan
have not joined WTO yet.
Move towards Since the pace of negotiations in the WTO has been Rules and procedures of WTO need to
bilateral/region slowing, countries are increasingly moving towards other evolve to remain relevant in the emerging
al/plurilateral forms of trading regimes such as RCEP. scenario.
trading regimes
Effect of COVID- COVID-19 pandemic has forced countries to impose Strengthening WTO’s dispute settlement
19 Pandemic comprehensive export bans and restrictions resulting in system is the need of the hour to tackle
disruptions in the global supply chains. There is potential the emergent situation.
for more trade disputes to arise in the future.

4.4.1. AGREEMENT ON AGRICULTURE(AOA)


Why in News?
Recently, to meet the domestic food security needs of poor population, India invoked peace clause under the
AoA for the 3rd time.
About Agreement on Agriculture (AoA)
• Coming into force in 1995, AoA provides a framework for long-term reform of agricultural trade and
domestic policies to ensure fairer competition and a less distorted sector. It covers:
o Market access: the use of trade restrictions, such as tariffs on imports
o Domestic support: the use of subsidies and other support programmes that directly stimulate
production and distort trade.
o Export competition: the use of export subsidies and other government support programmes that
subsidize exports.
• Under the Agreement, WTO members agree to “schedules” or lists of commitments that set limits on
the tariffs they can apply to individual products and on levels of domestic support and export subsidies.
• Peace Clause was negotiated at Bali conference in 2013 that allowed developing countries to go beyond
the 10 % cap for its MSP with immunity from legal challenge from other WTO member countries for the
next four years.
• In 2020, India became the first country to invoke peace clause as rice subsidies exceeded cap in 2018-19.
Concerns raised by India and other developing nations on AoA
Provisions Concerns India’s proposals to address these concerns
Permanent & • There should be a permanent • All measures taken by the developing countries for
Workable solution to the dispute over poverty alleviation, rural development, rural
solution to food public stockholding of employment and diversification of agriculture should
security foodgrains instead of the peace be exempted from any form of reduction
clause. commitments.
• Developing countries should • Primary agricultural commodities such as rubber,
not be penalized for breaching primary forest produce, jute, coir, abaca and sisal etc.
any limits. should be included.
High farm • These subsidies destabilise and • All forms of export subsidisation including export
subsidies depress the international credit, guarantees, price discounts and insurance
provided by market prices impacting programmes etc. in developed countries should be
developed adversely farm incomes in added to the export subsidies.
countries developing countries.
Market Access • Use of Sanitary & Phytosanitary • Developing country members should be exempt from
(SPS)Measures & Technical any obligation to provide any minimum market access.
Barriers to Trade by Developed • Developing country members should be allowed to
Countries to selectively ward maintain appropriate levels of tariff bindings keeping
off imports from developing in mind their developmental needs and the high
countries by imposing higher distortions prevalent in the international markets.
standards.

4.4.2. IP WAIVER
Why in news?
The current waiver agreement is a watered down version of the original proposal made by India and South
Africa in 2020 which demanded a broader intellectual property waivers on vaccines as well as treatments and
tests.
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More on News
• The World Trade Organisation (WTO) Agreement on TRIPS, which came into effect in 1995, is the most
comprehensive multilateral agreement on IP.
Arguments in favour of IP waiver
• Vaccine inequities: According to WHO, nearly 80% of Covid-19 vaccines were administered in just 10 rich
countries last year, while more than 2.5 billion people await their first shots.
• Vaccine nationalism: The “vaccine nationalism” exemplified by pre-orders of vaccines by many wealthy
states (including the U.S., UK and EU) has been blamed for reducing the availability of vaccines in low- and
middle-income countries (LMICs).
• Affordability: The waiver of patent protections could allow countries with fewer resources (e.g., Middle
Africa) to reduce the price necessary to produce large quantities of vaccine.
• Ending pandemic: Furthermore, repeated waves of COVID with different strains has made it more clear
that the pandemic will not end until global vaccination reaches a sufficient level.
Arguments against IP waiver
• May not resolve the issue of inaccessibility: Remedying this failure in global health requires addressing
many complex issues, such as the logistics for administering the vaccination in low-income countries.
• Cannot address the urgency of the pandemic: Negotiations will take time given the consensus-based
nature of the institution and the complexity of the issues involved. Thus, waiver will only have effects in
the medium and long term.
• Implementation Challenges: Waiver will not remove possible reliance by private parties on their acquired
IP protection.
• No guarantee for accessibility of vaccines for other disease: The recent focus on the Covid-19 vaccination
should not hide the broader vaccination issues in the Low-Middle-Income-Countries (LMICs). As of 2018,
74 of 194 WHO member states had no adult vaccination programme for any disease.
Way Forward
• Improving manufacturing capabilities in LMICs: Massive investment are needed in manufacturing
capabilities and removal of the bottlenecks for mass-producing vaccines.
• Supply of raw material: The almost instantaneous tripling of demand for specialised materials is placing
huge pressure on many pharmaceutical and medical supply chains.
• Easing the export of vaccines: Lifting or simplifying some requirements for the exports of Covid-related
pharmaceutical products (not only vaccines) produced under a compulsory license for at least three years.
• Set up massive vaccination campaigns in LMICs: This may require, for example, huge investments in
logistics, setting up call centres, and the immediate launch of awareness campaigns through various
media.
• Global alliance for enhancing accessibility: Solidarity by several governments or other agencies for
example, by the program for COVID-19 Vaccines Global Access (COVAX) supported by Global Alliance for
Vaccines and Immunization (GAVI), Coalition for Epidemic Preparedness Innovations (CEPI), and the World
Health Organization (WHO).

4.4.3. SERVICES DOMESTIC REGULATIONS (SDR)


Why in News?
Recently, 67 member countries of the World Trade Organisation (WTO) concluded their negotiations on
Services Domestic Regulations (SDR).
Trade in Services and General Agreement on Trade in Services (GATS)
• Representing 60% of world GDP in value-added terms and over 50% of employment, the International
Trade Rules on Services are governed by GATS.
• It is an outcome of Uruguay Round which entered into force in 1995.
• It provides a framework of rules governing services trade on all services with two exceptions as:
o Services supplied in the exercise of governmental authority, and
o Coverage measures affecting air traffic rights and services directly related to the exercise of Air
Transport Services.

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• GATS is applicable to four-modes of supplying services (as given in Image) and establishes a mechanism
for all WTO members (to varying degree) to make commitments to liberalize trade in services.
• It also provides a mechanism for resolving disputes between countries.
Services Domestic Regulation (SDR) and its
Potential Benefits
• Launched at the 11th Ministerial
Conference at Buenos Aires (2017), the
new plurilateral agreement is the first set
of rules on services in 24 years at WTO.
• Incorporation methodology:
o The new disciplines under it will be
incorporated as additional
commitments by the member’s
services commitments under GATS
Schedules (GATS Article XVIII).
o The signatories have agreed to leave
the pact open for other countries to
join in and apply it on a “Most-Favored
Nation (MFN)” basis.
• Potential Benefits:
o With cost-of-service trade estimated
to be twice as high as trade costs for
goods, SDR will reduce the costs
attributable to regulatory divergence
and opaque regulations.
o It will check cumbersome procedures
though its objectives, means etc.
o These rules contain provisions on non-
discrimination between men and
women. It will support women
empowerment and boost women’s
participation in services trade.
Concerns over SDR by nations like India
• It establishes a competing and parallel
mechanism to pursue and achieve same
objectives without the entire WTO
membership consent.
• New disciplines will further deny market
access to short-term service providers,
o E.g. US, Canada, and EU have restricted market access to independent professionals and used Mode
4 to deny market access to short-term services.
• It can be used to bring in rules to erect barriers to services trade and cross-border movement of
professionals through qualification and licensing requirements, and technical standards.
• Working Party on Domestic Regulation (WPDR) was established in 1999 (under Article VI:4 of GATS)
precisely to put these disciplines- domestic regulations (qualification requirements and procedures,
technical standards, and licensing requirements) from constituting unnecessary barriers to trade.
Conclusion
The new disciplines address a dynamic and fast-growing segment of global output through easy availability
of information on Qualifications, processes for applying and obtaining the licenses, clarity on reasons for
rejection of application, and technical standards affecting trade in services.

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5. DYNAMICS OF CHANGING WORLD ORDER
5.1. SOUTH ASIA ENERGY SECURITY
Why in News?
The recent low power generation in India led to power shortage hit its neighbors as well, calling for greater
energy cooperation in South Asia for energy security.
About South Asia and its Energy Needs
• South Asia, sometimes also known as the Indian
Subcontinent, is an Asian sub-region comprising
eight countries lying North of the Indian Ocean
and South of the snowy Himalayan range.
• It is home to almost a quarter of the world's
population and among world’s fastest growing
regions; projected to grow by 6.6% in 2022 and
6.3% in 2023 by World Bank.
• But it is highly uneven due to different
challenges faced by them with energy security
as one common challenge under increasing price
of imported oil and gas and limited domestic
energy resources. E.g., recently Sri Lanka ran out
of cash for fuel.
Need for Energy Cooperation in South Asia
• Seasonal
Complementarities: The
natural differences in
energy resources demands
effective use of seasonal
complementarities to
overcome demand-supply
mismatch. E.g.
○ The coal rich countries
like India can supply
energy in winter (dry
season) to hydropower
dependent countries
(Bhutan and Nepal), which in turn help others during in the wet season (monsoon)- when coal and
solar energy see a decline.
• Better Bargaining Power: Alliance between South Asian countries and other oil consuming nations will
improve their bargaining power with oil producers’ cartel (e.g. OPEC).
• Revive Stalled Projects: Energy cooperation between them can help revive projects which have been
stalled for decades. E.g.
○ The stalled Iran-Pakistan-India (IPI) gas pipeline, Turkmenistan-Afghanistan-Pakistan-India (TAPI)
pipeline and Myanmar-Bangladesh-India pipeline.
• Regional Security: It will also help the region to reduce interference from outsiders, especially China with
problematic policies (such as debt-trap diplomacy).
• Resilient Energy Supplies: Increased energy cooperation can help each other in having more resilient
energy supplies, especially in extreme climate events.
• Untapped potential: The total hydropower potential of Bhutan and Nepal together is more than 1 lakh
MW. But only around 1% of it is actually tapped.
• Achieve Sustainable Development Goals (SDGs): Energy Cooperation between them will raise people’s
standard of living and help to achieve SDGs such as Affordable and Clean Energy (SDG 7), Responsible
Consumption and Production (SDG 12) etc.

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Constraints in Regional Energy Cooperation
The intermittent energy resources in the
region create a natural inclination towards
connected regional infrastructure and joint
management. But the energy cooperation is
limited to few bilateral successes due to
various constraints such as:
• Geopolitical Constraints: The progress
on multilateral projects is slow (e.g.
TAPI). Also, they are unable to capitalize
on initiatives such as the 2014 regional
energy cooperation framework from
SAARC.
• Economic Constraints due to limited
financial resources limit regional energy
integration through necessary
infrastructure. The increasing economic
instabilities in few countries have
further limited it.
• Differences in Priorities: The lack of
diversification of fuel basket with
different dominant fuels such as coal in India, gas in Bangladesh and Pakistan, hydropower in Bhutan and
Nepal leads to different priorities.
• Limitations on Hydropower: The high seismic activities in Himalayas and other uses of rivers by riparian
states limit the size and type of hydropower plants.
• External Influence: The growing influence of China through projects like China-Pakistan Economic Corridor
limits energy cooperation, especially connected to the Pakistan region.
• Limited focus on Renewable Energy: Despite significant renewable energy potential in all South Asian
countries (solar, wind and biomass), they are not yet tapped by all due to technological and financial
constriants.
Way Forward
• Strategic Investments: Facilitate financing of strategic energy projects with maximum economic
opportunities.
• Harmonize Regulations: The technical standards and regulations in the region should be harmonized for
deeper interconnectivity and networks.
• Capacity Building: Facilitate policy dialogue for mutual understanding and cooperation to lower
dependence on fossil fuels and promote Green growth for diverse energy-mix.
o It will also help in effective use of seasonal complementarities through bilateral, sub-regional and
regional agreements.
• Address Geopolitical Concerns to complete stalled projects and joint developments for future.
• Economic Stability: Partnering with international financial institutions (e.g. World Bank, IMF) for economic
stability in neighboring countries. It will boost economic development and resilience in markets to push
for regional supply arrangements.

5.2. ALTERNATIVES TO BELT AND ROAD INITIATIVE (BRI)


Why in news?
The United States aims to raise $200 billion over five years to fund needed infrastructure in developing
countries under a G7 initiative aimed at countering China's Belt and Road project.
More about news
• The effort is now called the Partnership for Global Infrastructure and Investment, or PGII.
• The announcement is an official launch and a rebranding of what had been rolled out last year at the G7
in the UK as "Build Back Better World" (B3W).

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About BRI (Belt and Road Initiative)
About Partnership for Global Infrastructure and Investment (PGII)
• Launched in 2013 as One Belt One Road, • It seeks to provide an alternative to China’s estimated $1
BRI is a Chinese infrastructure trillion in hard infrastructure investment around the world in
development project to fund the the last decade.
development of land and sea routes to • This G7 initiative is funding projects in four major categories:
o clean energy,
link Asia, Africa, and Europe along the
o health systems,
route of the historic Silk Road. o gender equality
• BRI combines two initiatives (refer o information and communications technology.
map): • At the centre of PGII is a different approach to financing
o The (land based) Silk Road infrastructure projects: using limited official finance to
Economic Belt, a long-term vision catalyse greater volumes of private capital.
for the infrastructural o This stands in contrast to BRI, which provides financing
development, connectivity and largely via state-to-state channels creating unsustainable
economic cooperation of Eurasia debt levels.
and is spanning six development • The idea is to combine government funding with private
capital from pension funds, private equity funds and insurance
corridors:
funds, among others.
✓ New Eurasian Land Bridge
Economic India’s concerns over BRI
Corridor (NELBEC) • Geopolitical concerns: India is particularly concerned about the BRI
✓ China – Mongolia – Russia infrastructure and connectivity projects in the smaller South Asian
Economic Corridor countries and Indian Ocean littoral states.
(CMREC) o It is apprehensive that the BRI projects will enhance China’s
✓ China – Central Asia – stature and undermine India’s influence over those states.
West Asia Economic • Sovereignty and security concerns: India is opposed to one of the
Corridor (CCWAEC) flagship projects of the BRI: China-Pakistan Economic Corridor
(CPEC) which connect China’s Xinjiang autonomous region with
✓ China – Indochina
Pakistan’s Balochistan Province.
Peninsula Economic o It contends that the project runs through (Pakistan-controlled)
Corridor (CICPEC) Kashmir and hence it ‘violates Indian sovereignty.
✓ Bangladesh – China – India’s response
India – Myanmar • MAUSAM project to strengthen bilateral ties with countries in the
Economic Indian Ocean region.
Corridor (BCIMEC) • SAGAR (security and growth for all in the region) concept with
✓ China – Pakistan multiple objectives such as:
Economic o protecting maritime interests,
Corridor (CPEC) o enhancing economic and security cooperation in the littoral,
o promoting collective action to deal with maritime threats,
o 21st Century Maritime Silk
o building greater trust and promoting respect for maritime
Road: It connects China to rules, norms and peaceful resolution of disputes.
Southeast Asia, Indonesia, • Increased aid, investment and other economic engagements to
India, the Arabian Peninsula, counter Chinese influence in neighbours like Nepal, Sri Lanka and
Somalia, Egypt and Maldives.
Europe, encompassing the
South China Sea, Strait of Malacca, Indian Ocean, Gulf of Bengal, Arabian Sea, Persian Gulf and the Red
Sea.
Why Alternatives to BRI are emerging?
• Fragmented nature: Belt and Road is not a unified, coherent strategy, but rather as a fragmented
collection of bilateral arrangements made on different terms.
• Opaque nature causing mistrust: The Chinese government has never published detailed information
about the size and terms of Belt and Road loans. This vacuum of information feeds confusion and mistrust.
• Debt trap diplomacy:
o China took the Hambantota port of Sri Lanka for 99 years on lease over the issue of loan default.
o According to AidData (an international development research lab), over 40 lower- and middle-income
countries (LMIC) now have levels of debt exposure to China higher than 10 per cent of their national
GDP.
• Political backlash: BRI projects are built using low-interest loans as opposed to aid grants. Some BRI
investments have involved opaque bidding processes and required the use of Chinese firms.
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o In 2018, in Malaysia, there was a campaign against overpriced BRI initiatives.
• Slow progress due to
implementation issues:
As per a report, 35% of
the BRI infrastructure
project portfolio has
encountered major
implementation
problems, such as
corruption scandals,
labour violations,
environmental hazards,
and public protests.
• Environmental costs:
The BRI has been
criticized for causing
severe and irreversible
impacts on the
environment and
jeopardizing progress towards long-term
sustainable development.
What are the other alternatives to BRI?
• EU’s Global Gateway Project: The project
aims to mobilise up to €300 billion in
investments between 2021 and 2027 to
underpin a lasting global recovery.
o It will support smart investments in
quality infrastructure, respecting
highest social and environmental
standards, in line with international
norms and standards.
o It is a European Strategy to boost smart,
clean, and secure links in digital, energy
and transport as well as strengthen
health, education, and, research
systems across the world.
o EU’s Global Gateway provides a positive offer for its partners by financing them under fair and
favourable terms in order to limit the risk of debt distress in contrast with China’s BRI
• Clean Green Initiative: Launched by UK at COP26, a with over 3 billion pound of climate financing for clean
and resilient infrastructure in sectors such as clean energy, transport and urban development in
developing countries over the next five years.
• Asia-Africa Growth Corridor (AAGC): Another attempt put forth by India and Japan in 2017 is AAGC. This
bilateral partnership intends to foster quality and sustainable (social and transport) infrastructure,
development projects, and connectivity in Africa.
o It aims to promote a "free and open" world order, while also providing an alternative to China's
increasing investments and influence in Africa.
Opportunities for India in Global Infrastructure
• Partnership with EU: Recently, EU signed a Comprehensive Connectivity Partnership with India to
support ‘resilient and sustainable connectivity projects’ in Africa, Central Asia, and Indo-Pacific for digital,
energy, transport and people-to-people connectivity.
• Bilateral engagements: The space created due to distrust over China and the ills of BRI lends can be filled
by India especially in development projects in African and South-east Asian countries (where traditionally
both China and India have been competing).

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Way Forward for India
• Improving Policy Coordination: Plan and support large scale, high impact infrastructural development
projects by streamlining the bureaucratic web and creating single-point processes.
• Enhancing Viability of Projects: Promote economic cooperation by facilitating cross-border investments
and deepen supply chain integration to address the damaging impact of Covid-19.
• Overcoming Capital deficiency: By deepening the bilateral and multilateral financial Integration among
like-minded nations with use of private sector-to-private sector financing model.
• Promoting Democratic Values: Promote people to people cultural exchange with visible performance
improvements through projects to gain people’s trust and confidence.
• Building domestic capabilities with a long-term perspective to offer more services from creating
infrastructure to offering mobility and other solutions.

5.3. RUSSIA-UKRAINE WAR


Why in News?
The Russian Ukraine war has been
going on for more than last 100 days.
Background
• Russia-Ukraine ties go back to late
1700s, when Catherine the Great
brought most of the present
Ukrainian territory under the
Russian empire.
• After a brief period of autonomous
existence (1917-20), Ukraine
became part of the Soviet Union.
• Finally, in 1991 it declared its
independence as the Soviet Union
collapsed.
• The present-day war traces its root to below three points, i.e.
o Attempts by Ukraine to end cultural ties built with Russia,
o Protect the autonomous existence of Ukraine, and
o Growing influence of North Atlantic Treaty Organization (NATO) in erstwhile Soviet Union region
with Ukraine as a major remaining territory between direct Russia-NATO faceoff.
Present Position of Ukraine and Russia
Ukraine
• Wants to join Association Agreement (AA) with the European Union (EU), equivalent to Eurasian Economic Union
(EAEU), for early integration of its political and economic relations with EU.
o It will eliminate most tariffs on trade in goods under the Deep and Comprehensive Free Trade Agreement
(DCFTA), opening the gates for EU legislation membership.
• North Atlantic Treaty Organization (NATO) membership is essential for its national security policy, especially after
the Russian annexation of Crimea in 2014.
Russia
• Ukraine should not join NATO as a member.
• NATO should return to 1997 position, i.e., position before signing of NATO-Russia Founding Act, no new
infrastructure building to station troops from NATO in these regions etc.
• Marginalization of historical cultural-ties and of people of Russian identity must stop.
Reasons for Russia’s interest in Ukraine
• NATO’s support to Ukraine: Russia is not happy with efforts by the US and European Union to induct Ukraine into
the US-led military alliance of NATO and keep it out of Russian control. Ukraine acts a crucial buffer between Russia
and NATO.
• Historical ties: Russia has deep cultural, economic, and political bonds with Ukraine.
• Russian Diaspora: Among Russia’s top concerns is the welfare of the approximately eight million ethnic
Russians living in Ukraine.
• Superpower image: Losing a permanent hold on Ukraine, and letting it fall into the Western orbit, was seen by
many as a major blow to Russia’s international prestige.
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5.3.1. RESPONSES TO THE WAR
The Minsk Agreement’s failure in bringing Minsk Agreement – I (2014)
conclusion to the geopolitical tension between • A 12-point ceasefire agreement signed between
Russia and Ukraine highlights the need for a Russia, Ukraine Organisation for Security and
permanent peaceful solution. But the world Cooperation in Europe (OSCE) and the pro-Russia
seems to be more divided to respond to the leaders from Donetsk and Luhansk at Belarus.
challenge. Minsk Agreement – II (2015)
• Also known as Normandy Four, it was signed between
Response from Western Nations France, Germany, Ukraine, and Russia after failure of
• Resolutions against Russia at the United Minsk Agreement-I.
• It gave 13-point package to facilitate implementation
Nations General Assembly (UNGA), UN
of Minsk Agreement.
Security Council (UNSC), International Atomic
Energy Agency (IAEA) etc., use of sanctions
and diplomacy to put pressure on others, including India.
India’s Response
• India abstained from voting in all resolutions (see
infographic).
• These principles work towards a safe and sustainable
solution based on international norms and principles.
• It does not vilify any side but provides humanitarian
relief and assistance to people rather than arms to them.
o For instance, India sent 90 tonnes of humanitarian
assistance to Ukraine.
• It highlights strategic autonomy in times of a global
upheaval and to reach a peaceful resolution through
shared responsibility.
Concerns for India due to Ukraine crisis
• To maintain balance between Russia and US: India has
good relations with both Russia and the US and siding
with one of these countries could cost India its
relationship with the other.
o However, India has maintained its neutrality from
distant conflict in Eastern Europe. Indian
government has abstained from the procedure vote
on Ukraine at the UN Security Council.
• Brings Russia-China closer: Russia is already averse to the
Indo-Pacific concept and the Quad as a revival of Cold
War bloc politics and views them as being against its Asia-
Pacific interests. Any Ukraine conflict and a resulting
breakdown of Russia-West ties will strengthen Russian
opposition to these concepts and forums which are
binding us to the US.
• India’s Investment in Russia: India’s plans in Russia’s energy sector and in the development of its Far East
policy, in general, would become problematic. This is due to the reluctance of the private sector to fall
afoul of the complex US sanctions and exclusion of Russian banks from te SWIFT.
• Arms Trade with Russia: Russia remains the major arms supplier of India.
o As per SIPRI data, Russia contributed 46% of India’s total arms imports in 2017-21 (69% in 2012-16).

5.3.2. GLOBAL GEOPOLITICAL CHANGES AND INDIA


The Russia-Ukraine war has amplified the long-held Western world obsession against Russia. Use of coercive
tactics has further divided nations into two geopolitical blocs. As the war progresses, it can lead to significant
geopolitical changes across the world including changing dynamics of India’s relations with major powers.

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India’s Current Approach and its Geopolitical Equations with Major Powers
• India’s approach:
o India has adopted the strategic autonomy approach to maximize its policy space. E.g.
✓ Priority to National Interest over bloc politics helped India in getting discounted oil, fertilizer, and
other commodities from Russia,
✓ Diplomatic Activism helped India to evacuate over 22,500 Indians and foreign nationals from 18
countries in a mission mode (Operation Ganga).
o But lot of future depends on continuity of Geopolitical Pragmatism and India’s geopolitical equations
with major powers. Presently, it shares good relationship with almost all major powers except China,
due to reasons like tensions on India-China border.
• Emerging differences: Shadows of ongoing Ukraine crisis loom large over its relationship with western
world because of differing perception. E.g.
o EU and UK have cordial relationship with India with ongoing trade, climate change and Indo-pacific as
areas of common interest. But expectation gaps have increased because of different perspectives on
Ukraine crisis.
o India-USA partnership is a Comprehensive Global Strategic Partnership covering multiple areas (Indo-
Pacific, terrorism and violent extremism, drug-trafficking, cyberspace etc.) based on shared interests.
But USA wants to nudge India away from Russia and shift towards USA on major areas such as defence
and oil.
• The desire and dynamism to accommodate these differences will play a significant role in India’s equation
with western world, especially when Russia is a time-tested friend (with Treaty of Peace, Friendship and
Co-operation) since 1971.

5.3.3. SOCIO-ECONOMIC IMPACT OF WAR


In the modern interconnected world, the impact of the Russia-Ukraine war is felt across the world. India is also
not untouched with significant socio-economic impacts felt or to be felt such as:
• Rise in Oil Prices: With India being the 3rd largest oil importer after China and USA, every 1-dollar price rise
increases India’s import bill by ₹10,700 crore on annualized bases.
o A corollary of oil price rise is the rise in Global Inflation which will hurt India’s growth with increased
cost of living and disturbance to other macroeconomic variables.

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• Gas Prices: Gas prices have increased over 50%
this year after a fivefold rise last year. This price
rise increases India’s import bill and the current
account deficit.
• Agriculture: Russia and Ukraine are major global
suppliers of some commodities (see image). Also,
Russia accounts for 15% of global nitrogenous
fertilizer trade and 17% of global potash fertilizer
trade.
o On one hand it has opened new opportunities
for India in wheat export and on the other
hand it has caused hardships over fertilizer
availability and sunflower oil as Ukraine
accounts for 1.4 MT of India’s imports out of
total 1.9 MT import every year.
• Metals: Russia is a major producer of Titanium,
Palladium, Scandium, Rough Diamond etc. Due to
war and sanctions, it will have negative impact on
India’s diamond industry (reduced imports)
and supply chain issues for semiconductor
industry, automobile companies etc.
• Export Concerns: Russia and Ukraine are
major export destinations of Indian
pharmaceutical industry. Also, Russia
accounts for 18% of Indian tea exports.
Way Forward
“Wisdom is to live in tune with the mode of the
changing world.”
-Thiruvalluvar
India needs to live in tune with the ongoing global
upheaval maintaining optimal relationship with all
major powers. Emphasis needs to be given on
following areas-
• Handle Financial Volatility from inflation,
mounting trade costs and disruption by
reconfiguring the complex global supply chain for sustainable development.
• Overcome social impacts by improving overall prosperity to emerge as a stronger geopolitical actor.
• Reduction of its dependence on other nations for its defence and critical supply needs i.e., taking forward
the idea of Atmanirbhar Bharat.
• Work towards end of Cold War Mentality by engaging with all major stakeholders on multiple forums and
making efforts to strengthen global institutions.
• Building upon the UN Charter, international law and respect for sovereignty and territorial integrity to
ensure a common and sustainable legal order.

5.4. FOREIGN MILITARY BASES


Why in News?
The construction of a secret Chinese military base near a port in Abu Dhabi has been stopped after intervention
from the US administration.
About Foreign military Bases
• By definition, a military base is an installation created to serve as support for military operations and
logistics.

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o Basing of military forces on foreign territory, at locations leased from or co-occupied with the local
authorities, is a practice almost as old as warfare itself.
• These bases are routinely used by military forces to supply their personnel with the means and
equipment to respond to a threat within the land it occupies.
• Foreign military bases are found in more than 100 countries and territories within or near the land.
o US currently maintains a world-wide network of some 1000 military bases and installations.
o Farkhor Air Base in Tajikistan is India’s foreign military base overseas.

Concerns regarding foreign military bases


• Economic Cost: The financial burden of maintaining a sizeable military force in foreign countries and the
need to justify the level of military spending have been important considerations.
o For ex: wars in Afghanistan and Iraq continue to cost large amounts of money and complicate the US
basing process.
• Emerging geopolitics situations have necessitated a comprehensive review of such bases, particularly in
the light of the threats associated with failed states, under-governed areas within states and regional
conflicts.
• Operational Risks: Some adversaries will have capabilities (such as long-range precision-guided weapons)
to inflict substantial damage on forward bases and forward-deployed forces.
• Can bring political instability: If agreements are negotiated with non-popular local governments, the
foreign presence can be seen as an authoritarian policy by the population and by other states as well.
• Environmental concerns: The testing of new weaponry, including chemical and nuclear weapons, might
represent a risk of contamination and of accidents.
• Outdated Role: Key threats are redefined amid growing religious extremism, terrorism and other
asymmetric threats (e.g. unconventional warfare, threat of proliferation of weapons and technologies of
mass destruction).
Conclusion
Forward military basing has changed in the light of the new global and regional challenges and strategies.
Certain parts of Asia have emerged as new areas of concern, which has strengthened the motivation for
establishing bases there. Therefore, there is a growing need to reposition foreign based military resources in
order to better and more effectively perform both traditional and new functions.
China’s Foreign Military bases
• It opened its first foreign military base in Djibouti in the Horn of Africa in 2017. It is said to be building its second
foreign military base at Ream, Cambodia.
• China’s aim is to protect its overseas investments and cope with emerging challenges in the international political
system through foreign military bases.

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• Impact on India
o First pearl of a necklace unfolding along the sea route that connects China to the Middle East. It has fuelled
worries in India that it's part of China's strategy to encircle the Indian subcontinent ("the string of pearls")
with the help of military alliances and assets in Bangladesh, Myanmar, and Sri Lanka.
o People’s Liberation Army Navy (PLAN) expanding presence in maritime Southern Asia challenges the Indian
Navy’s preeminent regional status.
o Prospect of Chinese warships being permanently positioned at Karachi or Gwadar inhibits the Indian Navy’s
coercive options during a crisis.
• India’s response
o Cooperating with other nations: India’s military relations with France, which includes a Mutual Logistics
Support Agreement, enables Indian naval warships to seek access to the French naval base in Djibouti.
o Strengthening ties in IOR: In response to China’s overseas military base in Djibouti, India has sought to access
facilities in the Seychelles, Oman and Singapore.
o Improving capabilities: To counter increasing Chinese surveillance activities close to the Andaman Islands,
India has been investing in the development of an integrated surveillance network in the Bay of Bengal and
Arabian Sea with radar stations in Sri Lanka, the Maldives, and other littoral locales to keep track of Chinese
naval activity.

5.5. INDIA IN THE EMERGING WORLD ORDER


Why in news?
Amidst the recent crisis, some of India’s foreign policy experts have come together to outline the contours of
the new world order and what India should do to achieve its objectives.
Various facets of the changing world order
• Secular diffusion of power: World today is less structured and ordered; neither unipolar, as it was after
the end of the Cold War, nor yet multipolar.
o The relative decline of the United States is not just because of the emergence of China, but also
because of significant rise of emerging powers such as India, South Korea in Asia; Nigeria and South
Africa in Africa.
o Besides, there are existing centres of power which continue to wield significant economic and military
power such as Japan, Australia, Germany, Russia and European Union.
• Missing international cooperation: The lack of a coherent international response to the COVID-19
pandemic and the climate change is proof of an absence of international order and of the ineffectiveness
of multilateral institutions.
• Retreat from Globalisation: There is an upsurge in narrow nationalism and regionalisation of trade across
the world accelerated by technological changes such as cloud computing, 3-D printing and artificial
intelligence. The technologies have made manufacturing less dependent on cheap labour in the
developing world and on-shoring a viable option in some industries.
• Shifting geopolitical and economic centres of gravity: Rise of China and others, and structural China-
United States strategic rivalry have shifted the geopolitical and economic centres of gravity from the
Atlantic to Asia.
• Newer global threats: We are entering a new polarised information age, and face ecological crises of the
Anthropocene, making climate change an existential threat.
A key challenge in this decade will be India’s ability to retain its credibility as a significant countervailing power
to China, and leveraging this to mobilise international support for its emergence as a major power.
Opportunities for India
The way forward for India is based on the core strategic principles in Non-Alignment 2.0 that are: independent
judgement, developing our capacities, and creating an equitable and enabling international order for India’s
transformation. These can be elaborated as under:
• Expanding India’s strategic autonomy: The ideal position for India in the India-US-China triangle would be
to have better bilateral relations individually with both the US and China, than they have with each other.
• Increasing security congruence with the U.S. could enable cooperation in fields significant for India’s
transformation: energy, trade, investment, education and health. Other areas in which India and the U.S.
could increase cooperation are: climate change and energy, on tech solutions for renewable energy, and
on digital cooperation.

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• Building Issue-based Coalitions: Several middle powers such as Japan, Australia are India’s natural
partners on broader issues such as climate change, counter-terrorism and maritime security. Therefore, it
should be possible for India to create larger issue-based coalitions with them.
• Focussing on maritime security: Experts suggest the creation of a Maritime Commission, a Bay of Bengal
Initiative with partner countries giving high priority to ensure the safety and security of the sea-lanes.
• Reinvigorating regional institutions such as SAARC which project India to be the primary source of both
prosperity and security in the subcontinent
and the Indian Ocean Region.
• Self-Reliance: India could benefit at the
margins from the unscrambling and
relocation of existing supply chains in Asia,
but its ability to do so will depend on
addressing long-standing challenges that
have made it a less attractive destination for
foreign investment in manufacturing as
compared to other Asian countries such as
Vietnam or Bangladesh.
• Preventing Domestic Politics Affecting
Foreign Policy: In this context, Domestic
policies should reflect inclusivity, reducing
inequalities, and delivering core
responsibilities of health, education and
public security to all its citizens. Also, there
is a need to realise that India’s innate
cosmopolitanism is derived from its
extraordinary diversity.
Conclusion
The foundational source of India’s influence in
the world is the power of its example. This rests on four pillars: domestic economic growth, social inclusion,
political democracy, and a broadly liberal constitutional order. If these integral pillars remain strong, India can
emerge more prosperous and influential in the years ahead.

5.5.1. STRATEGIC AUTONOMY Non-Alignment & Strategic Autonomy


• In appearance, the two are different – the one non-
Why in news? alignment, the other multi-alignments; the one is
relevant in the bipolar world, the other in the multipolar
Recently, Foreign Secretary of India listed the five
world; the one where India acted as a key leader of the
pillars of Indian diplomacy for strategic
South, the other where India is a leader among select
autonomy & global good. powers (both Global South and among today’s major
More in news power centers).
• In essence, the two are similar in the sense that both
The five pillars of Indian Diplomacy are: assume India would judge issues and relations on merit,
• Multipolar focus: India places Neighborhood not on the dictates of other powers. Strategic
First, Act East and Think West and has Autonomy is all about issue-based alliances.
Strategic Autonomy & Self-reliance
revitalized its approach to these policies.
• Unlike in the past, self-reliance today is not about
• Diplomacy as an international force retreating from the world, but of enhancing India’s
multiplier for the Government: Indian economic contribution to the global economy.
diplomacy must be able to work with • Self-reliance is about empowering India and the speedy
domestic partners and bridge them with realization of its full national economic potential.
international interests to exploit the • When Self-reliance is applied to foreign policy
opportunities that will inevitably arise. framework, it comes closer to “strategic autonomy”.
• Force for global good: This pillar ensures
Vasudhaiva Kutumbakam in action.
o For example, India’s efforts in ensuring global vaccine supply through Vaccine Diplomacy.
• Futuristic Outlook: It promotes efforts at rebalancing including our endeavor to participate in the search
for solutions to common problems.

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o For example, despite our development needs, India has shown strong commitment to climate action.
• Indian in thought: Indian diplomacy is guided by bearings that arise from Indian thinking influenced over
centuries by Kautilya’s Arthshastra or ancient texts such as the Mahabharata and the Bhagvad Gita. Three
strands of Indian diplomacy worth mentioning here are:
o Tradition of the Middle Path.
o Human-centric globalization.
o Need for strategic autonomy.
What is Strategic Autonomy?
• Strategic autonomy denotes
the ability of a state to
pursue its national interests
and adopt its preferred
foreign policy without being
constrained in any manner
by other states.
• India and Strategic
Autonomy:
o In bipolar or multipolar
world orders dominated
by globalization, the
ability to be strategically
autonomous is not
absolute but only
relative.
o Based on this, India is
destined to be even less
strategically
autonomous.
o Core security issues:
India resist external
pressure to change its
policy or moderate its
interest on core issues of national security irrespective of the costs involved.
✓ For example, core national interests like Jammu & Kashmir issue and nuclear weapons.
o Non-core security issues: Under external pressure, India is likely to alter their policy or moderate their
interest on non-core security issues if the associated costs are calculated to be disproportionate to the
benefits that may accrue from persisting with the preferred policy or interest.
✓ For example, India’s decision to vote against Iran in the International Atomic Energy Agency under
the pressure of United States.
Need of Strategic Autonomy
• Geostrategic balancing: India has always sought to maintain close diplomatic ties with different groups,
including those who consider the other as an enemy or a competitor.
o For example, India’s concurrent diplomatic ties with Iran; while pursuing strong relationships with US,
Saudi Arabia and Israel (all of them consider Iran as an outcast).
• Need for Multi alignment: Today’s world is characterized by complex interdependence (where countries
are competing on geostrategic issues and cooperating on geo-economic issues) and hence Indian foreign
policy requires strategic hedging.
o For example, due to strategic autonomy India has maintained strategic defence relation with United
States as well as it is keen to put forward S-400 deal with Russia.
• Need for greater realism in policy: India has realized that soft power diplomacy alone is not sufficient for
protecting the country’s interests and there is a need for realism as well as pragmatism in Indian foreign
policy.
o For example, India’s early misreading of Pakistan’s and China’s intentions (Indo-Pak war 1948 & Sino-
India war 1962) led to Gilgit-Baltistan & part of Kashmir and Aksai Chin region now being under the
effective control of Pakistan and China respectively.
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Challenges to Strategic Autonomy
• Hostile Neighbors: Pursuing policy of Strategic Autonomy requires no unsettled international borders or
no hostile neighbors.
o In case of India, China-India as well as India-Pakistan border is long, mountainous and long disputed
and both are nuclear powered nations.
• India’s dependence on western countries: India needs technology, capital, markets, skills, defence
equipment, international networking, and global cooperation to resolve global issues. But critical or
sensitive technology can come only at the behest of compromising strategic autonomy.
• American unreliability: US sanctions on countries where India has a stake often compromise its policy of
Strategic Autonomy.
o For example, The North-South Transport Corridor (NSTC) with Iran has stalled due to the US’s
secondary sanctions threats, which also adversely affects Indian policy towards Afghanistan or
unexpected violation of the India’s exclusive economic zone by US during a recent “freedom of
navigation” operation (FONOP) in the Indian Ocean.
• Rise of Russia-China-Pakistan axis: A de facto Russia-China-Pakistan (RCP) strategic axis has emerged in
recent years which has made balancing act a difficult one for India.
o For example, Russia has now promised a $14 billion investment in Pakistan’s energy sector including
$2.5 billion for the North-South (TAPI) pipeline project.
• China’s dominance in South-Asia: Another change since 1971 is that China has developed significant
relations, chiefly economic, with India’s neighbors.
o Hence, apart from Bhutan, India’s immediate neighbors generally find India overbearing and try to
engage with China.
Way forward
• Pursuing Independent Foreign policy: The policy of Strategic Autonomy should be used to enhance India’s
strategic space and capacity for independent agency, allowing maximum flexibility and manoeuvrability
to increase the options for New Delhi’s choices to promote and protect its interest.
• Issue based alignments: Ridding itself of its non-aligned past, India should focus on “alignment based on
issues” rather than ideology, thereby maintaining “decisional autonomy”.
• Balancing China’s rise: The logic of strategic autonomy from China nudges India to look for strong security
partnerships with the US, Europe, Japan and Australia.
o On the economic front, India is exploring various forms of collaboration with a broad group of nations
that have a shared interest in developing trustworthy global supply chains that are not totally tied
with China.
• Defence Indigenization: India is dependent on many foreign players (like U.S, Russia etc.) for its defence
requirement, this may not pave well in national interest. Even it assumes more significance, especially in
the context of counterbalancing China.
To conclude, in this phase of geopolitical transformation, India needs to follow an approach of working with
multiple partners on different agendas like Climate Change, Terrorism etc. and hence Sabka Saath, Sabka
Vikas, Sabka Vishwas is relevant in foreign policy. In some ways, the contemporary shift from non-alignment
to strategic autonomy in India is simply a case of the catching up to reality in a multipolar world order. On the
lines of Aatmanirbhar Bharat, India should pursue an Independent Foreign policy in order to secure its interest
and fulfil its global aspirations.

5.6. SOFT POWER DIPLOMACY


Why in news?
India has been ranked 36th in Global Soft
Power Index 2021.
About Soft Power
• Soft power as a tool for foreign policy
was conceptualized by Joseph Nye in
the 1990s. It refers to the ability of a
country to persuade others to do what it
wants without force or coercion.

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• In practice, it entails countries projecting their values, ideals, and culture across borders to foster goodwill
and strengthen partnerships.
• Soft power usually originates outside government in places like schools, religious institutions, and
charitable groups. It is also formed through music, sports, media etc.

5.6.1. DIASPORA AS SOFT POWER TOOL

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5.6.2. RELIGION AS SOFT POWER TOOL
Why in news? About Soft Power
Four Holy Relics of Lord Buddha were taken to • Coined by Joseph Nye in the late 1980s, the term
"soft power" refers to the ability of a country to
Mongolia for an exposition to coincide with Mongolian
persuade others to do what it wants without
Budhha Purnima celebrations. force or coercion.
More about news • In practice, it entails countries projecting their
values, ideals, and culture across borders to
• The four relics come from among 22 Buddha relics, foster goodwill and strengthen partnerships.
currently housed at Delhi’s National Museum. • Soft power usually originates outside
• Together, they are known as the ‘Kapilvastu Relics’ government in places like schools, religious
since they are from a site in Bihar believed to be the institutions, and charitable groups. It is also
ancient city of Kapilvastu. formed through music, sports, media etc.
• Exposition of Buddha’s relics in each other’s
countries is an important component of Buddhist ties. The last time Buddha’s relics were sent out of the
country was in 2013 to Sri Lanka.
• This shows an opportunity for India to approach religion as an asset of soft power diplomacy.
India’s strength in Religion as a soft power in diplomacy
• India's religious diversity is its biggest strength: India is fortunate to have all the major religions of the
world. Four were founded here: Hinduism,
Buddhism & India
Buddhism, Jainism and Sikhism. Four came
India claims legitimacy in its promotion of Buddhist
from outside: Zoroastrianism, Judaism, diplomacy in spite the fact that it is host to a relatively small
Christianity and Islam. population of Buddhists due to following reasons-
• Home to various religious sites: India has • Buddhist faith originated in India, therefore granting it
numerous sites of importance to the singular historical legitimacy.
various faiths like: • India has numerous sites of importance to the Buddhist
o Hindu religious sites like Varanasi, faith, such as Bodh Gaya, Sarnath, and Nalanda.
Tirupathy, Madurai etc. • India has nurtured an image of being a protector of the
persecuted through the presence of the Dalai Lama and
o Buddhist religious sites like Bodh
the Tibetan parliament-in-exile in Dharamshala.
Gaya, Sarnath, and Nalanda.
• Historical links to Theravada Buddhism mean that India
o Historic Churches and Synagogues in is in a good position to further relations with other
South India. Buddhist countries and create conversation between
o Dargahs of Sufi saints like Moinuddin multiple streams of this faith.
Chishti and NIzzamuddin Aulia etc
• Role in its policy: India’s Look East Policy is being built up by emphasizing India’s historical links with
Buddhism.
o The relationship between Buddhism and state diplomacy dates back to the days of Emperor
Ashoka, who following his adoption of the religion began the practice of dharmavijaya or conquest
through Dharma.
• Religious diplomacy has been integral to India’s tradition: The principle of “Vasudhaiva Kutumbakam
('the whole world is but one family) was enshrined in Maha Upanishad.
o Ashoka sent Buddhist Missionaries to far off places such as Ceylon, Egypt, Macedonia, Tibet, etc.
o The address of Chicago Parliament of Religions in 1893 by Swami Vivekanad brought the much-
needed recognition and respect for India particularly its culture and traditions.
• Religion is a cohesive bond for Indian subcontinent: Various religions of India help it to connect with
all the neighboring countries. Thus, religions provide south Asia its unique identity.
Recent Instances where India showed strength of religion as a soft power
• Organising conferences: For example: In 2011 India hosted the Global Buddhist Congregation to mark
the 2,600th anniversary of the Buddha’s enlightenment.
• Visit of leaders to religious sites: In 2015, Japanese PM was invited to Banaras, famous for hosting
religious sites of Hinduism as well as Buddhism.
o In Singapore, Indian prime minister visited the Goddess Mariamman temple and Buddha’s Tooth Relic
temple.

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• Promoting religious tourism: Ministry of Tourism is promoting a number of tourist circuits that
transgress national borders.
Yoga as soft power tool
o An example is Buddhist tourist circuit • Yoga can be India's most successful and popular soft-
that also includes visits to various power tool.
sites in Nepal, such as Lumbini and • One of the major recognitions of India’s soft power was
Kapilavastu. the United Nations’ approval of 21 June as International
• Membership for OIC: India has sought Yoga Day.
membership to the Organisation of • India lobbied the UN and managed to win the support of
Islamic Cooperation (OIC) on the grounds 175 member states at the General Assembly for the
that it has the 2nd largest Muslim resolution setting an International Day of Yoga.
population in the world. • On a 2015 trip to Turkmenistan on the Central Asian circuit,
Indian PM was invited to inaugurate a traditional medicine
Concerns/limitations of religion as soft and Yoga center in the capital of Ashgabat.
power tool • As the yoga industry is still very much dominated by Indian
voices, and authentic instruction in yoga is still perceived
• Poor performance in religious tourism: to be found only in India.
Though India is currently home to seven
of the eight most significant Buddhist sites in the world, it receives less than 1% of global Buddhist
tourism.
o South-East Asian nations such as Thailand and Indonesia are the prime recipients of such tourism.
• Domestic policies: A series of policy initiatives Citizenship Amendment Act (CAA), National Register of
Citizens (NRC), etc has triggered religious tensions which may limit the capacity of India’s new emphasis
on religious soft power to pay dividends on the global stage.
• China is emerging as a competitor: China promotes the religion of Buddhism on the grounds of its
historical association, and the fact that it also possesses the largest Buddhist population of any country in
the world.
o It is also working through different projects like Lumbini project in Nepal to attract countries having
a significant amount of Buddhist population through its Belt and Road Initiative (BRI) projects.
• Structural loopholes in the efforts to propagate India's culture: The performance of the Indian Council
for Cultural Relations (ICCR), with centres in about many countries for promoting Indian culture, has been
lackadaisical.
o These centres are still aimed at the diaspora (like Caribbean, South Africa), ignoring strategic and
growing relationships with other countries and regions.
Measures to strengthen religion as soft power tool
• Promoting religious tourism: To nurture a favourable ecosystem for religious tourism, better
coordination between the elements of the system is needed.
o A multi-pronged approach focusing on product enhancement, bettering connectivity, and creative
promotion and marketing of products could help achieve an effective strategy for inbound tourism.
o The transnational Buddhist Circuit transcends both national and state borders and since tourism is
a state subject in India, there should be various levels of interaction and coordination at the
international and sub-national level.
• Soft Power dissemination should be neutral: There should not be any reference to our interests while
propagating our civilization and cultural heritage. This is because using Soft Power to achieve specific
goals is a contradiction in terms and can be counter-productive.
• Others:
o Effective revitalisation of the Nalanda University project and encouragement of Buddhist studies
in well-established universities across the country must take place.
o Civil society needs to help spread awareness among locals through programmes on heritage
awareness and conservation.

5.6.3. SPORTS DIPLOMACY


Why in news?
Sports, over the past few years, had developed into a vibrant field and a tool to materialize the nation’s agenda
and sports diplomacy has a global impact.

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Sports as a soft power tool of foreign policy
• Sports is a global cultural and political institution. It surpasses linguistic, socio-political, cultural, and cross-
border differences and enable different nations to unite at one platform and emphasizes on the aspect of
unity and integrity among the India and sports diplomacy
people. India has been inclined to sports diplomacy since independence and use it
• Sports-diplomacy falls under the as a tool to showcase its foreign policy and to settle various disputes.
wide umbrella of public • Cricket: Cricket is the strength of Indian sports and cricket diplomacy
diplomacy. It involves played a crucial role in the political history of South Asia:
representative and diplomatic o Cricket matches are used as ice breakers and political signalling
activities undertaken by sports in the complex India-Pakistan relationship. For instance, during
the 2011 Cricket World Cup, the semi-final is believed to have
people and sporting events to
eased the relationship between India and Pakistan after the
engage, inform and create a polarising 2008 Mumbai attacks.
favourable image among foreign o At the same time, India has repeatedly refused to play cricket
publics and organisations, to with Pakistan on the issue of terrorism.
shape their perceptions in a way o There was a significant rise in the Indian economy after the
that is (more) conducive to the creation of the Indian Premier League (IPL) in 2008 as it was a
sending government’s foreign major source of representing India’s soft power.
policy goals. o Indian boycotted cricket in Sri lanka during LTTE struggle.
• The sportsmen are often seen as • Tennis: India also boycotted the Davis Cup (Tennis) final against
harbingers of peace and South Africa due to its opposition to apartheid policy.
harmony. Sports therefore
International Olympic Committee (IOC) in sports diplomacy
establishes a mutual association
IOC is showing two extremes, one side is appreciated worldwide and
which helps in resolving gigantic the other is questionable.
political issues as well. IOC being an undemocratic, unelected body often get criticised for:
Shortcomings & Critiques against Sports • Recognising states that have not yet been internationally
Diplomacy recognized by the United Nations. For instance recognizing East
Germany and Kosovo.
Sports diplomacy is being accused of • Telling a national, sovereign state what to do in the name of
several grave implications across the sport: For instance, when a country wishes to host an Olympic
world: event, it has to subscribe to specific rules set down by the IOC
which includes altering the legal infrastructure to accommodate
• Political opportunism: Ill-judged labour and taxation regulations.
bans on sporting events devalues a However, the purpose of Olympic games is to spread the philosophy
tournament by robbing the of creating a peaceful and better world. Accordingly, IOC has also
spectators of participation by skillful stood up for social causes to advocate its stand:
players. • In past, the nations which were engaged in a war-like situation or
o For instance, In 1980, the US violated human rights were banished from the games.
o For instance, In 1948, after World War II, Germany and Japan
boycotted Moscow games
were banned due to their inhumane treatment of prisoners
because of Russian intervention
of war. Russia was banned from 2018 Winter Olympic as it
in Afghanistan. was found guilty of state-sponsored doping.
• Lack trust building: Diplomatic
meeting conducted in the media and public glare is anathema to sound diplomacy, which requires privacy
to breed trust and build relations.
• Sports can only temporarily transcend divisions in society.
Conclusion
Governments across the world should realize that if executed clearly, sports can become a great helping tool
in easing out confrontations & distances.

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6. MISCELLANEOUS
6.1. INDIA AND MULTILATERAL DEVELOPMENT BANKS

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6.2. INDIA’S DEVELOPMENT COOPERATION
Why in News?
Enhancing the efficacy of India’s development cooperation endeavors has been a challenging issue for the
past several decades.
Background
• The first effort by India to shape a framework for India’s development cooperation was in 2003 with the
announcement of the India Development Initiative (IDI).
• Subsequently, the Indian Development and Economic Assistance Scheme (IDEAS) was launched in 2005
for managing credit lines. Efforts by India in development cooperation
• In 2007, Govt suspended IDI and • Indian Technical and Economic Cooperation (ITEC)
announced the setting up of the India programme (1964), India’s capacity-building initiative.
International Development • India Aid Mission (IAM) launched in Nepal in 1952.
Cooperation Agency (IIDCA), but it • ‘New, Emerging and Strategic Technologies’ (NEST) division
never took off. is being set up to facilitate collaboration with foreign
• There has been clear lack of firm countries on advanced technologies, as well as geographical
institutional foundation to support divisions for better coordination.
India’s Development Cooperation. • In Ethiopia, India provided better quality germplasm, new
technology for processing and access to markets, apart from
• India needs a clear vision to lead a
support for packaging for better access to European markets.
sustainable development agenda while
• India has been supporting the developmental endeavours of
positioning itself as a global power several partner countries in Africa and Asia.
with interests beyond its immediate
neighborhood.
o To achieve this, there is an urgent need to push for reforms in existing institutional structures on
development cooperation.
About India’s development cooperation
• Indian model of developmental cooperation is comprehensive and involves multiple instruments including
grant-in-aid, line of credit and capacity building and technical assistance.
o Depending on the priorities of partner countries, India’s development cooperation ranges from
commerce to culture, energy to engineering, health to housing, IT to infrastructure, sports to
science, disaster relief and humanitarian assistance to restoration and preservation of cultural and
heritage assets.
• Currently, India’s development cooperation objectives are broadly based on the South-South cooperation
(SSC) framework — a technical cooperation tool among the developing countries in the Global South.
• Although the allocation is less than 1% of India’s overall budget, it is still a significant contribution as
compared to other high-income countries, such as Australia (0.22 percent of GDP) and South Korea (0.15
percent of GDP) considering India’s US$ 2 billion in credit lines.
• The Development Partnership Administration (DPA), Ministry of External Affairs, is responsible for the
overall management, coordination and administration of India’s development partnerships.
• In the last couple of years, India’s assistance to other developing countries has multiplied several times.
o On average, India provides development assistance of more than $6.48 billion and receives assistance
of $6.09 billion annually from key partners as Official Development Assistance (ODA).
✓ ODA involves financial or technical help given by one country’s government to another country
to assist social and economic development or to respond to a disaster in the receiving country.
Need for India’s development cooperation Agency
• Evolution in geopolitics: Future economic diplomacy agencies will have to be located in a new geopolitical
dimension that goes far beyond the impulse of the Bandung Conference of 1955, which set up cooperation
channels between Asia and Africa in the colonial and post-colonial era.
• Post pandemic opportunity: Post-pandemic, countries worldwide are exploring ways to reinvigorate their
development cooperation efforts. This gels well with the increase in the scope of development
cooperation following higher economic growth and rising trade and investment flows to emerging
markets and developing economies.

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• Enhancing Bilateral relations: India’s development cooperation is moving towards a need-driven
approach where meeting the partner country’s development objectives goes hand-in-hand with India’s
objective for strengthening the bilateral relationships through private sector investments.
• Effective Accountability and evaluation framework: The lack of information disseminated in the public
domain about India’s current development cooperation framework has been widely criticised by policy
experts.
o This opacity makes monitoring and evaluation difficult and creates a credibility crisis.
Way Forward
• Independent development partnership
agency: The proposed new entity
should
o address better delivery, monitoring
and evaluation mechanisms,
o should engage with new actors,
especially from civil society and the
private sector
o provide handholding to select
performing Indian social
enterprises to operate in other
countries as well.
o facilitate development partnerships between India and other countries.
o support partner countries in combating natural disasters (Nepal), political and humanitarian crises
(Maldives, Afghanistan), and in building social infrastructure (Kenya, Madagascar).
• India’s Development Cooperation Act, 2022: India’s upcoming Development Cooperation Act should
reflect that a focused approach towards addressing global crisis is in its national interest.
• Restructure development finance apparatus: It is high time India restructures its development finance
apparatus for deeper and effective engagement and to address the rapidly evolving development
financing landscape.
• Learn from its own programmes: India’s own development experience is evolving with programmes like
the JAM trinity, Ayushman Bharat and other initiatives like Gati Shakti — the learnings from which should
be absorbed in the portfolio to be shared with fellow developing countries.

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