PRAHAAR International Relations

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RAHAAR
The final hit to UPSC Exam
Comprehensive, Integrated and Current Linked Notes for CSE Mains 2021
GS PAPER - II
INTERNATIONAL RELATIONS
ONE
STOP
SOLUTION

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PRAHAAR- The final hit to UPSC Exam-2021
PREFACE
Dear aspirants, OnlyIAS team is ecstatic to present this book to you, which is certainly
going to be your best companion in your prepration.
This book has been designed by considering the issues and challenges students face
during mains preparation. While preparing this book, our team was aiming to solve as much
problems as possible. For example, students are many a times so confused about what to study
and what not, which news is relevant and which news is to be ignored, how much in depth we
should go for any topic, what kind of questions UPSC asks from particular topic, how to link
static with current etc.
This book is an honest attempt to solve these problems and to help students perform
better in exam, save time in preparation and get rid of various confusions which they basically
come across.
Right from the number of pages, to what topic to be covered, our team has done
research on every aspect to make it the finest version of itself. Covering everything comes with
a limitation of retention power, relevancy, possibility of revision, too many pages which makes
it beyond bulky and ultimately lot of time consumption of students for not so important things
adding to that a kind of distracted paths.
This book is an attempt to make your preparation to the point, relevant, based on UPSC
ongoing trend and pattern, revision friendly, and most updated.
OnlyIAS team wish you all the best for your preparation with all humility and
humbleness and we are hopeful that this book will do wonders for you. Keep reading.
Sumit Rewri and team
Note: Although our team has tried best, yet if any important issue we found
which needs updating we will do the same and current issues of last few months
will be updated and a supplementary of few issues will be compiled and will be
released soon.

OnlyIAS Nothing Else PRAHAAR: International Relations
INDIA AND IT’S NEIGHBOURHOOD RELATIONS ...................................................................................................................... 9

DETERMINANTS OF NEIGHBOURHOOD FIRST POLICY- .......................................................................................................... 9
HISTORICAL OVERVIEW of India’s Neighbourhood ................................................................................................................ 9
MAJOR CHALLENGES IN INDIA’S NEIGHBOURHOOD RELATIONS ............................................................................................. 10
BORDER DISPUTE- ................................................................................................................................................................ 10
RIVER DISPUTES- .................................................................................................................................................................. 10
Brahmaputra River and India-China-Bangladesh relations ................................................................................................................. 10
Kosi River and frayed relations between Nepal and India .................................................................................................................. 11
Indus water treaty between India and Pakistan .................................................................................................................................. 11
NEED FOR WATER MANAGEMENT ...................................................................................................................................................... 11
TRADE BARRIERS .................................................................................................................................................................. 12
REASONS FOR LOW TRADE ................................................................................................................................................................. 12
NEED FOR GREATER INTRA-REGIONAL TRADE .................................................................................................................................... 12
RISING CHINESE FOOTPRINT ................................................................................................................................................ 13
IMPLICATIONS FOR INDIA ................................................................................................................................................................... 13
TERRORISM .......................................................................................................................................................................... 15
REGIONAL ORGANISATIONS ................................................................................................................................................ 15
NEIGHBOURHOOD FIRST POLICY.............................................................................................................................................. 16
POSITIVE ASPECTS OF THE POLICY-...................................................................................................................................... 16
CHALLENGES- ....................................................................................................................................................................... 16
INDIA – PAKISTAN ................................................................................................................................................................ 17
KEY ISSUES IN INDIA-PAKISTAN ................................................................................................................................................ 17
BORDER ISSUE ..................................................................................................................................................................... 17
Kashmir- .............................................................................................................................................................................................. 17
Siachen- ............................................................................................................................................................................................... 17
Sir Creek- ............................................................................................................................................................................................. 17
Gilgit Baltistan issue- ........................................................................................................................................................................... 17
Other issues ......................................................................................................................................................................... 18
CHINA PAKISTAN ALL WEATHER FRIENDSHIP- .................................................................................................................................... 18
AFGHANISTAN- .................................................................................................................................................................................... 18
RECENT NEWS- ......................................................................................................................................................................... 18
Pakistan’s New Map- ........................................................................................................................................................... 18
Azad Pattan: ........................................................................................................................................................................ 19
J&K Issue Raised at UNSC- ................................................................................................................................................... 19
Ceasefire Along Line of Control ............................................................................................................................................ 19
Basmati Rice Issue ............................................................................................................................................................... 19
60 YEARS OF INDUS WATER TREATY ................................................................................................................................................. 19
INDIA – BANGLADESH- ......................................................................................................................................................... 21
SIGNIFICANCE OF INDIA_BANGLADESH RELATIONS ............................................................................................................ 21
GEOSTRATEGIC SIGNIFICANCE ............................................................................................................................................................ 21
MILITARY COOPERATION .................................................................................................................................................................... 21
TRADE RELATIONS ............................................................................................................................................................................... 21
ENERGY COOPERATION ....................................................................................................................................................................... 22
Connectivity ........................................................................................................................................................................................ 22
Blue Economy...................................................................................................................................................................................... 22
Border Cooperation ............................................................................................................................................................................ 22
Rohingya issue ..................................................................................................................................................................................... 22
Partnership on Multilateral forums ..................................................................................................................................................... 22
ISSUES IN RELATIONSHIP ..................................................................................................................................................... 23
TEESTA WATER DISPUTE ...................................................................................................................................................... 23
GOVERNMENT STEPS ........................................................................................................................................................... 24
BORDER SECURITY ............................................................................................................................................................................... 24
CONNECTIVITY..................................................................................................................................................................................... 24
VACCINE MAITRI.................................................................................................................................................................................. 24
Developmental support ...................................................................................................................................................................... 25
Key takeaway’s of PM Modi’s visit to Bangladesh .............................................................................................................. 25
INDIA-NEPAL ........................................................................................................................................................................ 26
India Nepal Ties ................................................................................................................................................................... 26
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INDIA-NEPAL TERRITORIAL DISPUTE ........................................................................................................................................ 27

1947 TRIPARTITE AGREEMENT ON GURKHA SOLDIERS ............................................................................................................ 28
INDIA – AFGHANISTAN ........................................................................................................................................................ 29
SIGNIFICANCE OF AFGHANISTAN FOR INDIA ....................................................................................................................... 29
GEOSTRATEGIC .................................................................................................................................................................................... 29
GEOECONOMIC ................................................................................................................................................................................... 29
INDIA-AFGHANISTAN DEVELOPMENT PARTNERSHIP .......................................................................................................... 30
RECENT EVENTS ....................................................................................................................................................................... 30
TALIBAN TAKEOVER OF AFGHANISTAN ............................................................................................................................... 30
CHALLENGES ....................................................................................................................................................................................... 30
India’s Position-Shift on Taliban .......................................................................................................................................................... 32
INDIA – MYANMAR .............................................................................................................................................................. 34

Overview of relationship ...................................................................................................................................................... 34
Institutional Mechanisms .................................................................................................................................................................... 34
Development Cooperation .................................................................................................................................................................. 34
Commercial Cooperation .................................................................................................................................................................... 34
Enhancing Connectivity ....................................................................................................................................................................... 34
Disaster Relief ..................................................................................................................................................................................... 34
Culture................................................................................................................................................................................................. 34
Security cooperation ........................................................................................................................................................................... 34
Maritime cooperation and Blue Economy .......................................................................................................................................... 35
Significance of Myanmar for India....................................................................................................................................... 35
Geo-strategic ....................................................................................................................................................................................... 35
Geo-economic ..................................................................................................................................................................................... 35
Issues in relationship............................................................................................................................................................ 35
ROHINGYA CRISIS........................................................................................................................................................................... 35
Timeline of crisis .................................................................................................................................................................. 36
India’s position on Rohingya ................................................................................................................................................ 36
Reasoning behind government’s stand ............................................................................................................................................... 36
Concerns for India ............................................................................................................................................................................... 36
RISING CHINESE FOOTPRINT IN MYANMAR.......................................................................................................................................... 37
INDIA AND BHUTAN ............................................................................................................................................................. 39

Cooperation And Significance Of Bhutan : ........................................................................................................................... 39
Roadblocks in cooperation : ................................................................................................................................................................ 40
Future scope of cooperation ................................................................................................................................................ 41
Is Bhutan Moving away from India ? ................................................................................................................................... 42
ISSUES IN NEWS :.......................................................................................................................................................................... 42
Recently India and Bhutan have signed two MoU : ............................................................................................................. 42
Doklam Issue : ...................................................................................................................................................................... 43
New Bhutanese territory claimed by China ......................................................................................................................... 44
INDIA-SRILANKA .................................................................................................................................................................. 45
OVERVIEW OF RELATIONS ................................................................................................................................................... 46
TAMIL QUESTION- ............................................................................................................................................................... 47
ROLE OF INDIA- ................................................................................................................................................................................... 47
CHINA FACTOR ..................................................................................................................................................................... 47
FISHERMAN ISSUE................................................................................................................................................................ 47
NEW CONSTITUTION OF SRILANKA ..................................................................................................................................... 48
ECONOMY AND DEBT .......................................................................................................................................................... 48
INDIA - VIETNAM ................................................................................................................................................................. 49
OUTCOME OF SUMMIT- ...................................................................................................................................................... 49
IMPORTANCE OF VIETNAM- ................................................................................................................................................ 49
ISSUES .................................................................................................................................................................................. 50
INDIA – INDONESIA .............................................................................................................................................................. 50
AREAS OF COOPERATION- ................................................................................................................................................... 50

INDIA – MAURITIUS ............................................................................................................................................................. 51

INDIA – MAURITIUS RELATIONS- ......................................................................................................................................... 51
ISSUES- ................................................................................................................................................................................. 51
CECPA....................................................................................................................................................................................... 51
INDIA-THAILAND .................................................................................................................................................................. 52
INDIA – MALDIVES ............................................................................................................................................................... 52
Overview of the relationship ................................................................................................................................................ 52
Covid related assistance ...................................................................................................................................................................... 53
Significance of Maldives for India ........................................................................................................................................ 53
BILATERAL RELATIONS WITH MAJOR POWERS..................................................................................................................... 54
INDIA – US ........................................................................................................................................................................... 54
DIFFERENT ASPECTS OF INDO-US RELATIONS- .................................................................................................................... 54
DEFENCE .............................................................................................................................................................................................. 54
INDIA-US 4 FOUNDATIONAL AGREEMENTS ........................................................................................................................................ 54
Trade Relations ................................................................................................................................................................................... 55
ENERGY COOPERATION- US-India Strategic Energy Partnership ......................................................................................................... 55
Strategic Partnership-.......................................................................................................................................................................... 55
Quad:................................................................................................................................................................................................... 55
India as counterbalance to China- ....................................................................................................................................................... 56
Civil Nuclear Cooperation.................................................................................................................................................................... 56
Cooperation at multilateral forums .................................................................................................................................................... 56
Indo-US cooperation during COVID- ................................................................................................................................................... 56
India-US relationship under Biden ....................................................................................................................................... 56
Geopolitical- ........................................................................................................................................................................................ 56
Energy Cooperation- ........................................................................................................................................................................... 57
ISSUES IN INDO-US RELATIONSHIP ...................................................................................................................................... 57
DEFENCE- ............................................................................................................................................................................................ 57
USA’s Position on CAATSA ................................................................................................................................................................... 57
US-PAKISTAN Relationship- ................................................................................................................................................................. 57
In WTO ................................................................................................................................................................................................ 57
TRADE- ................................................................................................................................................................................................ 57
Generalised System of Preference (GSP)- ........................................................................................................................................... 57
GEOSTRATEGIC-................................................................................................................................................................................... 58
ON CLIMATE CHANGE ......................................................................................................................................................................... 58
ON DATA SOVEREIGNTY- ..................................................................................................................................................................... 58
INDIA-RUSSIA....................................................................................................................................................................... 59
AREAS OF COOPERATION ............................................................................................................................................................... 59
ISSUES IN RELATIONSHIP ................................................................................................................................................................. 60
RUSSIA-CHINA-PAKISTAN AXIS- ........................................................................................................................................... 60
US -RUSSIA TENSIONS-......................................................................................................................................................... 60
IMPLICATIONS FOR INDIA AND THE WORLD ....................................................................................................................... 61
INDIA-CHINA RELATIONS ..................................................................................................................................................... 63
INTRODUCTION ........................................................................................................................................................................ 63
AREAS OF RELATIONSHIP ......................................................................................................................................................... 63
Convergence: ....................................................................................................................................................................... 63
Divergence: .......................................................................................................................................................................... 63
India-China Cooperation ...................................................................................................................................................... 64
ISSUES IN NEWS ....................................................................................................................................................................... 64
India China Border Standoff................................................................................................................................................. 64
Why in News ........................................................................................................................................................................ 64
Reasons for Chinese Aggression .......................................................................................................................................................... 65
India’s Concerns .................................................................................................................................................................................. 65
Five Point Plan to De-escalate LAC Stand-off ...................................................................................................................................... 65
India’s Response to Chinese Aggression ............................................................................................................................................. 65
What is Line of Actual Control ? .......................................................................................................................................................... 66
China has Crossed its 1960’s LAC Claims ............................................................................................................................. 66

USA Offers Mediation Between India and China ................................................................................................................. 67

Advantages of Third-Party Mediation by USA ..................................................................................................................................... 67
Concerns over Third Party Mediation by USA ..................................................................................................................................... 67
China Proposes Territory Swap with Bhutan ....................................................................................................................... 68
Why in News ? ..................................................................................................................................................................... 68
India’s Concerns .................................................................................................................................................................................. 68
China Bhutan Border Dispute .............................................................................................................................................................. 68
Indian Reponse .................................................................................................................................................................................... 69
China’s Railway Near Arunachal Border .............................................................................................................................. 69
Why In News ? ..................................................................................................................................................................... 69
Implications ......................................................................................................................................................................................... 69
India’s Concerns .................................................................................................................................................................................. 69
India’s Response (Recent infrastructure projects near Arunachal Border) ......................................................................................... 69
India China Water Relations ................................................................................................................................................ 70
Hydrological Status.............................................................................................................................................................................. 70
Water Cooperation ............................................................................................................................................................................. 70
Concerns ............................................................................................................................................................................................. 70
Way Forward ....................................................................................................................................................................... 71
China’s New Dam on Brahmaputra ..................................................................................................................................................... 71
China’s New Dam on Brahmaputra ..................................................................................................................................... 71
China’s Rising Influence in South Asia.................................................................................................................................. 71
Concerns for India ................................................................................................................................................................ 72
INDIA –TAIWAN ................................................................................................................................................................... 72
History of India-Taiwan Relations ........................................................................................................................................ 72
Current state of India-Taiwan Relations .............................................................................................................................. 73
Concerns .............................................................................................................................................................................. 73
Tibet ..................................................................................................................................................................................... 73
Tibetan Policy and Support Act ........................................................................................................................................................... 74
India-Tibet Relations ........................................................................................................................................................................... 74
Challenges for India ............................................................................................................................................................................. 74
Way Forward ....................................................................................................................................................................... 74
INDIA-EU .............................................................................................................................................................................. 75
Outcome of the leaders meet in May 2021 ......................................................................................................................... 75
Outcome of annual summit in July 2020-............................................................................................................................................ 75
Areas of cooperation between India Europe ....................................................................................................................... 76
Geostrategic- ....................................................................................................................................................................................... 76
Economic cooperation ........................................................................................................................................................................ 76
Developmental partnership- ............................................................................................................................................................... 77
Science and Technology cooperation .................................................................................................................................................. 77
Defence and security cooperation ...................................................................................................................................................... 77
People to people ................................................................................................................................................................................. 77
Parliaments, Civil Society .................................................................................................................................................................... 77
Education & Culture ............................................................................................................................................................................ 77
Multilateral forums ............................................................................................................................................................................. 77
Issues in India EU relation .................................................................................................................................................... 77
Broad-based Trade and Investment Agreement (BTIA) ....................................................................................................... 78
What is it? ............................................................................................................................................................................ 78
Roadblocks in negotiations ................................................................................................................................................................. 78
Conclusion ............................................................................................................................................................................ 79
Recent updates on BTIA ...................................................................................................................................................................... 79
INDIA-UK Free Trade Agreement ......................................................................................................................................... 79
Brexit Trade Deal ................................................................................................................................................................. 79
Positive impact on India ...................................................................................................................................................................... 80
Challenges for India ............................................................................................................................................................................. 80
The EU–Vietnam Free Trade Agreement ............................................................................................................................. 80
Provisions of EU–Vietnam Free Trade Agreement .............................................................................................................................. 80
Effects on India .................................................................................................................................................................................... 81
INDIA-JAPAN RELATION ....................................................................................................................................................... 82
Areas of Cooperation: .......................................................................................................................................................... 83
Covid-19 Pandemic: ............................................................................................................................................................................ 83

Indo-Pacific:......................................................................................................................................................................................... 83
Connectivity: ....................................................................................................................................................................................... 83
Partnership at Multilateral forums:..................................................................................................................................................... 84
Environment:....................................................................................................................................................................................... 84
Economic ............................................................................................................................................................................................. 84
Defence: .............................................................................................................................................................................................. 84
Space cooperation: ............................................................................................................................................................................. 85
Bilateral Partnership: .......................................................................................................................................................................... 85
Supply Chain Resilience Initiative(SCRI): ............................................................................................................................................. 85
Agreements: ........................................................................................................................................................................................ 85
Issues in relationship: .......................................................................................................................................................... 86
Osaka declaration:............................................................................................................................................................................... 86
Indo-Pacific:......................................................................................................................................................................................... 86
Significance of relationship for India: .................................................................................................................................. 86
Collaboration At UNSC: ........................................................................................................................................................ 86
CURRENT DIMENSIONS: ................................................................................................................................................................. 87
India-Japan ink mutual military logistics agreement ........................................................................................................... 87
Significance: ........................................................................................................................................................................................ 87
Japan-India Foreign Ministers’ Strategic Dialogue .............................................................................................................. 88
Japan Provides Loan to India ............................................................................................................................................... 88
Significance: ........................................................................................................................................................................................ 88
INDIA – WEST ASIA .............................................................................................................................................................. 90

BROAD OVERVIEW ............................................................................................................................................................... 90
SIGNIFICANCE ...................................................................................................................................................................... 90
ISSUES .................................................................................................................................................................................. 90
INDIA’S WEST ASIA POLICY ....................................................................................................................................................... 91
DURING COLD WAR- ............................................................................................................................................................ 91
AFTER COLD WAR ................................................................................................................................................................ 91
PRESENT POLICY- ................................................................................................................................................................. 92
INDIA-IRAN .......................................................................................................................................................................... 92
IMPORTANCE OF IRAN- ....................................................................................................................................................... 92
ISSUES .................................................................................................................................................................................. 93
RECENT NEWS- ......................................................................................................................................................................... 93
CURRENCY CHANGE IN IRAN- .............................................................................................................................................. 93
Chabahar Project - Push for Chabahar Port in INSTC Corridor. ........................................................................................... 94
IAEA - IRAN DEAL OVER NUCLEAR INSPECTIONS ................................................................................................................. 94
JCPOA- ................................................................................................................................................................................................. 94
INDIA - ISRAEL ...................................................................................................................................................................... 95

AREAS OF COOPERATION- ................................................................................................................................................... 95
Defence Cooperation .......................................................................................................................................................................... 95
What makes Israel a good arms supplier to India? ............................................................................................................................. 95
Agriculture........................................................................................................................................................................................... 97
Trade- .................................................................................................................................................................................................. 97
Science &technology and innovations- ............................................................................................................................................... 97
Changing Geopolitics in west Asia-...................................................................................................................................................... 97
ISSUES- ................................................................................................................................................................................. 97
ICC INVESTIGATIONS INTO ISRAEL-PALESTINE WAR CRIMES .................................................................................................................. 98
Historical overview of Israel Palestine conflict- ................................................................................................................... 98
HISTORY OF INDIA-PALESTINE RELATIONS ............................................................................................................................... 99
India’s developmental assistance to Palestine .................................................................................................................................... 99
Various Indian projects in Palestine are- ........................................................................................................................................... 100
INDIA-QATAR ..................................................................................................................................................................... 100

INDIA- QATAR RELATIONS- ................................................................................................................................................100
INDIA – SAUDI ARABIA ....................................................................................................................................................... 100
INDIA-SAUDI ARABIA RELATIONS ......................................................................................................................................100
WEAKENING PAKISTAN-SAUDI ARABIA RELATIONS .............................................................................................................101

ISSUES- ...............................................................................................................................................................................101
ABRAHAM ACCORD .....................................................................................................................................................................102
WEST ASIA PEACE CONFERENCE ....................................................................................................................................................102
DJIBOUTI CODE OF CONDUCT ........................................................................................................................................................103
GULF COOPERATION COUNCIL AND INDIA .......................................................................................................................................103
IMPORTANCE OF GCC- .......................................................................................................................................................103
RECENT GOVERNMENT STEPS TO STRENGTHEN THE RELATIONSHIP- ..............................................................................104
CHALLENGES- .....................................................................................................................................................................104
INDIA AND CENTRAL ASIA .................................................................................................................................................. 105
Historical Ties : ...................................................................................................................................................................105
India and central Asia ties :................................................................................................................................................105
Importance of region : .......................................................................................................................................................105
Chabahar port :..................................................................................................................................................................107
IN NEWS....................................................................................................................................................................................107
Connect Central Asia Policy : .............................................................................................................................................107
INDIA AND UZBEKISTAN................................................................................................................................................................108
Key Points ..........................................................................................................................................................................108
Challenges..........................................................................................................................................................................109
CONFLICT BETWEEN NAGORNO-KARABAKH ...................................................................................................................................... 109
New Peace deal .................................................................................................................................................................110
INDIA AND AUSTRALIA....................................................................................................................................................... 111
Areas Of Cooperation : ......................................................................................................................................................111
Economic Ties :.................................................................................................................................................................................. 111
Covid-19 ............................................................................................................................................................................................ 112
Defence Relations : ........................................................................................................................................................................... 112
The QUAD : ........................................................................................................................................................................................ 112
Civil Nuclear Cooperation : ................................................................................................................................................................ 112
Co-operation at multilateral fora. ..................................................................................................................................................... 112
Indian Diaspora : ............................................................................................................................................................................... 113
Areas Of Convergence :......................................................................................................................................................113
Areas Of Concerns :............................................................................................................................................................113
ISSUE IN NEWS............................................................................................................................................................................114
India Australia First Virtual Meet :.....................................................................................................................................114
Australia to be included in Malabar Exercise: ...................................................................................................................114
Uranium Supply from Australia .........................................................................................................................................114
EFFECT OF POLICIES ON INDIA'S INTERESTS ....................................................................................................................... 116
Previous Year Questions on this topic ................................................................................................................................116
EFFECT OF POLICIES ON INDIA'S INTERESTS ....................................................................................................................... 117
E-DIPLOMACY.........................................................................................................................................................................117
Benefits of E-diploamcy .....................................................................................................................................................117
Concerns regarding e diplomacy .......................................................................................................................................117
RISE OF THE MINILATERALISM ...............................................................................................................................................118
Advantages of minilateralism ............................................................................................................................................118
Concerns over minilaterals ................................................................................................................................................118
INDIA’S VACCINE DIPLOMACY- VACCINE MAITRI PROGRAMME....................................................................................................118
POSITIVES...........................................................................................................................................................................119
CONCERNS .........................................................................................................................................................................119
SUPPLY CHAIN RESILIENCE INITIATIVE....................................................................................................................................119
GEOPOLITICS OF TECHNOLOGY .......................................................................................................................................... 120
HOW TECHNOLOGY CAN FOSTER GEOPOLITICAL COOPERATION? ...................................................................................120
CONCERNS- ........................................................................................................................................................................120
ISSUES IN INDIA W.R.T TECHNOLOGY ................................................................................................................................121
TECH COLD WAR BETWEEN USA AND CHINA ..................................................................................................................... 121
DATA FREE FLOW WITH TRUST...............................................................................................................................................121

INDIA’S DRAFT ARCTIC POLICY ........................................................................................................................................... 122

ONE SUN , ONE WORLD , ONE GRID ................................................................................................................................... 123
RELIGION AND CULTURE AS TOOL OF SOFT POWER- .......................................................................................................... 123
Culture as a tool of soft power ..........................................................................................................................................123
GOVERNMENT EFFORTS ....................................................................................................................................................124
REGIONAL AND GLOBAL GROUPINGS ................................................................................................................................ 125
SAARC ....................................................................................................................................................................................125
SIGNIFICANCE OF SAARC FOR INDIA ..................................................................................................................................125
ACHIEVEMENTS OF SAARC ................................................................................................................................................125
SAARC and COVID-19 .........................................................................................................................................................126
Failures of SAARC ...............................................................................................................................................................126
12TH BRICS SUMMIT .......................................................................................................................................................... 127
RELEVANCE OF BRICS- .......................................................................................................................................................127
ISSUES ................................................................................................................................................................................128
Significance of BRICS for India ...........................................................................................................................................128
RECENT NEWS ABOUT BRICS-.................................................................................................................................................128
BRICS NATIONAL SECURITY ADVISERS MEET .....................................................................................................................128
ANTI-DRUG WORKING GROUP BRICS ................................................................................................................................128
BRICS 5G INNOVATION BASE .............................................................................................................................................128
BAY OF BENGAL INITIATIVE FOR MULTI-SECTORAL TECHNICAL AND ECONOMIC COOPERATION (BIMSTEC) ..................... 129
Evolution of BIMSTEC.........................................................................................................................................................129
OBJECTIVES ........................................................................................................................................................................129
IMPORTANCE .....................................................................................................................................................................129
ISSUES- ...............................................................................................................................................................................130
ASEAN AND INDIA.............................................................................................................................................................. 131
17TH ASEAN-INDIA SUMMIT ..................................................................................................................................................132
HISTORICAL OVERVIEW of India-ASEAN relationship- .......................................................................................................132
IMPORTANCE OF ASEAN-...................................................................................................................................................133
REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP) ......................................................................................... 134
WHY INDIA OPTED OUT OF AGREEMENT? ........................................................................................................................134
IMPLICATIONS- ..................................................................................................................................................................134
RATIONALE BEHIND INDIA’S DECISION- ............................................................................................................................135
SHANGHAI COOPERATION ORGANIZATION (SCO) - 20TH SCO SUMMIT ............................................................................. 135
INDIA AT SCO .....................................................................................................................................................................135
IMPORTANCE OF SCO FOR INDIA- .....................................................................................................................................136
INDIA AND QUAD............................................................................................................................................................... 136
OBJECTIVES- .......................................................................................................................................................................137
INSTITUTIONALIZATION of QUAD- .....................................................................................................................................137
IMPORTANCE OF QUAD FOR MEMBERS and other key players- .......................................................................................137
QUAD AS COUNTERBALANCE TO CHINA- ..........................................................................................................................138
ISSUES- .............................................................................................................................................................................................. 138
NON-ALIGNED MOVEMENT- VIRTUAL NAM SUMMIT ........................................................................................................ 139

HAS NAM BECOME IRRELEVANT TO INDIA? ......................................................................................................................139
RECENT NEWS- .......................................................................................................................................................................140
65TH ANNIVERSARY OF BANDUNG CONFERENCE .............................................................................................................140
ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES (OPEC) ..................................................................................140
GROUP OF SEVEN (G7) ...........................................................................................................................................................141
AIIB AND INDIA .................................................................................................................................................................. 141
APEC VIRTUAL MEET .......................................................................................................................................................... 142

INDIA AND APEC-....................................................................................................................................................................142

AGREEMENTS INVOLVING INDIA AND/OR AFFECTING INDIA’S INTERESTS. ........................................................................ 143
WORLD HEALTH ASSEMBLY (WHA) ........................................................................................................................................143
OPEN SKIES TREATY ................................................................................................................................................................143
WORLD FOOD PROGRAMME .................................................................................................................................................143
PROTOCOL ON INLAND WATER TRANSIT AND TRADE ............................................................................................................143
FINANCIAL ACTION TASK FORCE ............................................................................................................................................144
COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANSPACIFIC PARTNERSHIP (CPTPP)- ..........................................144
UNITED NATIONS CONVENTION ON THE LAW OF THE SEA (UNCLOS) ....................................................................................144
GENEVA CONVENTIONS- ........................................................................................................................................................144
NEW YORK CONVENTION .......................................................................................................................................................144
IMPORTANT INTERNATIONAL INSTITUTIONS, AGENCIES AND FORA- THEIR STRUCTURE, MANDATE ................................. 146
INDIA IN UNSC .......................................................................................................................................................................146
REFORM OF UNSC .....................................................................................................................................................................146
WORLD TRADE ORGANIZATION AND INDIA ....................................................................................................................... 148
Functions of WTO ..............................................................................................................................................................148
Governance of WTO...........................................................................................................................................................149
Achievement of WTO .........................................................................................................................................................149
Issues Related to WTO .......................................................................................................................................................149
WTO AND INDIA ........................................................................................................................................................................150
Recent news of India and WTO ..........................................................................................................................................150
Reason for breaching the ceiling on subsidy limit .............................................................................................................150
INTERNATIONAL CRIMINAL COURT .................................................................................................................................... 151
INDIA AND ICC ...........................................................................................................................................................................152
WORLD BANK, INTERNATIONAL MONETARY FUND (IMF) AND INDIA ................................................................................ 152
WORLD BANK ............................................................................................................................................................................152
World Bank and India ........................................................................................................................................................153
Some recent development of World Bank with India ........................................................................................................153
INTERNATIONAL MONETARY FUND .......................................................................................................................................153
India and IMF .....................................................................................................................................................................154
IMF Quota and India's Interest ..........................................................................................................................................154
Criticism of IMF ..................................................................................................................................................................154
Needed Reforms ................................................................................................................................................................154
UNITED NATIONS HUMAN RIGHT COUNCIL ...........................................................................................................................155
UN Human Rights Council and India ..................................................................................................................................155
WORLD HEALTH ORGANIZATION (WHO) AND INDIA .............................................................................................................156
India and WHO ..................................................................................................................................................................156
India, WHO and COVID-19 .................................................................................................................................................157
Recent developments.........................................................................................................................................................157
UNITED NATIONS RELIEF AND WORK AGENCY .......................................................................................................................157
UNRWA and India ..............................................................................................................................................................157
UNITED NATIONS ECONOMIC AND SOCIAL COUNCIL (UN ECOSOC) ......................................................................................158
INTERNATIONAL LABOUR ORGANIZATION ............................................................................................................................158
INDIAN DIASPORA ............................................................................................................................................................. 159
India’s diaspora policy .......................................................................................................................................................159
DATA ..................................................................................................................................................................................160
Significance of Diaspora- ...................................................................................................................................................160
GOVT STEPS .......................................................................................................................................................................161

INDIA AND IT’S NEIGHBOURHOOD RELATIONS
PYQ
1. ‘China is using its economic relations and positive trade surplus as tools to develop potential military
power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. 2013
2. Project `Mausam’ is considered a unique foreign policy initiative of the Indian Government to improve
relationship with its neighbors. Does the project have a strategic dimension? Discuss. (2015)
3. What do you understand by ‘The String of Pearls’? How does it impact India? Briefly outline the steps
taken by India to counter this. (2013)
4. What is meant by Gujral doctrine? Does it have any relevance today? Discuss. (2013)
INTRODUCTION-
• The South Asian region, which is home to eight countries, and the Indian Ocean region (maritime Indian Ocean
region; mostly Western Indian Ocean) comes under the broad geographic expanse of India’s neighbourhood.
• India, being the largest country in terms of size, population and economy is the preponderant regional power.
However, India’s foreign policy engagements with its neighbourhood is an active topic of debate now, especially
in the context of “territorial disputes” with China and Nepal.
DETERMINANTS OF NEIGHBOURHOOD FIRST POLICY-

Given its centrality and capabilities, since Independence, traditionally India had preponderance in the region,
especially in South Asia and to a large extent, in the Western Indian Ocean.
2 key factors determined India’s neighbourhood policy- Policy of Balancing and Domestic Factors
1. Policy Of Balancing- to a large extent, India’s foreign policy approach towards its neighbours were shaped
by the “principle of balancing”.
a. For instance, the policies that the major adversarial States (such as Pakistan and China) followed
with super powers defined India’s relations with the latter.
2. Domestic Politics- some of the conflicts in the neighbourhood had domestic dimensions —
a. for example, the India-Sri Lanka conflicts in the eighties and water sharing issues with Bangladesh.
VIEWS-
• Muchkund Dubey- Multiple factors shape neighbours’ perception of India- huge asymmetry in size, land,
water and other disputes and India’s involvement in their domestic politics. India couldn’t establish itself as
a benevolent neighbour.
• M.K. Narayanan- If India is not seen to be actively involved in ensuring that the region is at peace and is
functioning in conformity with its worldview then any claim of global leadership will be nothing more than
treading water.
• Constiantino Xavier- Disconnectivity remains the default state of affairs between India and its neighbours.
HISTORICAL OVERVIEW of India’s Neighbourhood

• BRITISH POLICY- British policy towards neighbourhood was dictated by its need to secure its Indian Colony.
British used Nepal, Afghanistan as buffer states against Chinese and Russian states respectively. Even in
Indian ocean region and in west Asia, British control was aimed to ensure security of Indian borders.
• NEHRU’S POLICY OF PANCHSHEEL-
o Nehruvian ‘family approach’- Nehru viewed India’s neighbours through a broad spectrum and within
a broader Asian framework.

o The ‘family approach’ propagated the idea of ‘part of one’ theory. Because of British legacy the focus
during the Nehruvian era was primarily on security aspects and not much on economic dimensions
such as building developmental projects etc.
• GUJARAL DOCTRINE- In the post-Cold War period, which began in the 1990s, India set out to refashion its
foreign policy premises on non-alignment, its relations with Western bloc countries, regionalism and so on,
which in turn had a huge impact on India’s neighbourhood/regional policies.
o The Gujaral doctrine was based on the principle of Panchsheel and Non-Reciprocity. It called for
greater investment in the region without expecting reciprocity as it was felt that India being a larger
and more developed country in all the aspects should shoulder larger responsibilities.
o The present policy of Neighbourhood First is based on similar premises.
• MANMOHAN DOCTRINE- It was focused on creating Economic Interdependence through enhanced trade
relations and regional integration. However due to coalition politics, India’s relations with Bangladesh and
Sri Lanka deteriorated.
MAJOR CHALLENGES IN INDIA’S NEIGHBOU RHOOD RELATIONS

BORDER DISPUTE-
• Civilizational state: Historically, India has been a civilizational state rather than a territorial state. Due to
legacy of colonisation, Difficult terrain, Domestic politics India could not solve its boundary disputes with
neighbours.
• Disputes: India has disputes with Pakistan over Kashmir, with China on Ladakh, Arunachal Pradesh and Aksai
chin, with Sri Lanka on Kachchatheevu island, with Nepal on Kalapani Area.
• Success in resolving: Over the past 70 years, it has succeeded to resolve its boundary issues only with
Bangladesh and Sri Lanka. India also went to war with Pakistan and China over boundary disputes.
• Threats to security: According to former Foreign Secretary Muchkund Dubey, India faces threats to its
security from almost all its neighbours, be it the spill over of their domestic ethnic conflicts, large-scale illegal
migration or providing base for terrorism directed against India.
WAY FORWARD-
• BORDER SECURITY- Strengthening border security to control smuggling, illegal migration and terrorist infiltration.
• Dialogue- India should engage constructively and generously with its smaller neighbours like Nepal to deal with
the border issues.
• POLICY CONSENSUS- Broader policy consensus at domestic levels needs to be developed in order to maintain
continuity in border negotiations and consistency in India’s position.
• BUILDING REGIONAL ARCHITECTURE- Due to huge asymmetry in power equations, neighbours accuse India of
Big Brotherly Attitude. A regional architecture on the lines of SAARC can be established to device broader
principles for border negotiations.
• TRACK 2 DIPLOMACY- can be used to find innovative solutions on border disputes.
RIVER DISPUTES-
• In 2016, UNEP claimed that by 2030 almost ‘half of the world’s population will suffer from severe water
stress’. In this context river disputes will determine India’s riparian relations with its neighbours: Pakistan,
China, Bangladesh, Nepal and Bhutan.
Brahmaputra River and India-China-Bangladesh relations

• Chinese acts: As an upstream riparian region, China maintains an advantageous position and is building dams
on Brahmaputra river to intentionally prevent water from flowing downstream.

• India’s worries: Recently,

A draft of China’s new Five-Year
Plan (2021-2025), has given green
light for first downstream dams on
Brahmaputra. Both New Delhi and
Dhaka worry that these dams will
give Beijing the ability to divert or
store water in times of political
crisis.
• Dam on Teesta river: On
the other hand, India has built
dams on the Teesta River, a
tributary of the Brahmaputra, to
utilise the flow of the Teesta
during the dry season. This is cause
of concern for Bangladesh as
nearly 100 million Bangladeshis
rely on the river during the dry
season. Both countries could not
sign an agreement on sharing of
water from the Teesta river due to
opposition from the West Bengal
government.
Kosi River and frayed relations
between Nepal and India
• India – Nepal: Since 1954, when the Kosi Agreement was signed between India and Nepal, talks between the
two governments have stalled and water rights issues have not been addressed. As a result, the first dam
had remained neglected for decades and a proposed partnership for a second dam didn’t take off.
Indus water treaty between India and Pakistan
• Despite having favourable provisions Pakistan has demanded revision of the treaty.
• Resentment in India : There is also resentment in India as it conceded 80% of water to Pakistan and there is
demand to revise the treaty.
• Azad Pattan: India has protested against the construction of Azad Pattan: PoK Hydel Project in PoK and Gilgit
Baltistan, which are territories claimed by India as part of Jammu & Kashmir.
NEED FOR WATER MANAGEMENT
• Climate change
• Domestic Water politics and its spill over effect on bilateral relation
• Enhancing regional cooperation
• Hydroelectricity
• Livelihood security (As most of south Asian countries are dependent on agriculture)
• Building India’s soft power.
WAY FORWARD
• Regional Mechanism- To decide on mutually agreed principles on water sharing and enforcing of
agreements. SAARC could be used to enhance cooperation among riparian states.
• Harnessing Hydropower Potential- in the north east part of India and in countries like Nepal and Bhutan.
• Transparency in data sharing- sharing of data on river water flow in a transparent manner based on mutually
agreed scientific parameters.
• Cooperating on transboundary river management and water conservation.

TRADE BARRIERS
• South Asia is one of the most poorly integrated region due to multiple factors. The intra-regional trade
among South Asian economies is lowest in the world at 5.6% (2017) of their total global trade.
REASONS FOR LOW TRADE

• Historical reasons - India adopted socialist model of economy and policy of import substitution and
protectionism till 1990s and civil wars and domestic instability in other countries
• Poor Connectivity- Due to difficult terrain on borders, poor development of inland waterways, poor border
infrastructure like border huts etc.
• Ineffective regional organisations- Failure of SAARC due to India Pakistan conflict. Both SAPTA and SAFTA
have remained ineffective.
• Bilateral conflicts- Border disputes, river water disputes, wars between India and Pakistan has affected
regional integration and has a spill over effect on regional trade.
• Non complementary nature of economies- Countries with different comparative advantages and product
specialisation would have more opportunities to mutually benefit from trade than countries with a high
degree of similar products and specialisation. In South Asia, most countries in the region are competitors in
their export markets in a narrow range of products, namely textile and apparel exports.
• Lack of political will in countries as the primary focus of countries was on nation building, security and
defence of borders.
NEED FOR GREATER INTRA-REGIONAL TRADE
• Regional Integration- Due to development of functional interlinkages and its spill over effect on other
sectors.
• Economic Prosperity- Through greater trade and development of supply chains. It will also attract greater
FDI and technology transfer.
• Reduction In Trust Deficit- As trade among countries increases, people to people contact and political
contacts also increases.
• Reduced illegal migration from countries like Myanmar, Bangladesh, Sri Lanka etc
• Countering Terrorism as enhanced trade relationships bridge trust deficit among countries and also develops
interdependence. It creates scope for close collaboration on counter terrorism.
Way Forward-
• Revisiting Free Trade Agreements-
o As SAFTA and SAPTA have been ineffective, FTA under BIMSTEC has been under negotiations for more than
15 years and India-SriLanka FTA is more than 20 years old.
o This will require political leadership to sacrifice domestic protectionism in order to pursue long-term
strategic interests of greater trade interdependence with its neighbours.
• Eliminating NTBs-
o Countries in South Asia must take steps towards elimination of para-tariffs and NTBs such as import policy
barriers, anti-dumping and countervailing measures, testing and certification requirements, export
subsidies etc.
o Globally, the signing of the Customs Convention on the International Transport of Goods under Cover of
TIR Carnets (TIR Convention, 1975) is a positive step towards the elimination of some NTBs and simplifying
procedures
• Enhancing Cross-border Infrastructure
o Improvements in cross-border infrastructure such as Integrated Check-Posts (ICPs), road, air and rail
links are key to facilitating trade in the region.
o Improved infrastructure will enable greater connectivity thereby strengthening production networks and
value chains in the region.

• Adopting Global Best Practices- Good practices from other regions must be tailored to the South Asian context
to facilitate the resolution of reported barriers to trade.
o For instance, Sub-Saharan Africa has addressed NTBs by way of an online mechanism that consists of
national monitoring committees in each country to facilitate the resolution of reported trade barriers.
o Stronger political will is required to combat barriers to trade in the region, especially after the COVID-19
crisis which may result in unleashing a new wave of protectionist measures.
CONCLUSION-
• Enhancing trade in the South Asian region is not only economically beneficial, it is also strategically important in
order to integrate India with the global economy.
RISING CHINESE FOOTPRINT

Over the past decade, China has strengthened its economic and military ties with India’s neighbours in South Asia,
which could pose a challenge for India
IMPLICATIONS FOR INDIA
STRATEGIC ENCIRCLEMENT-
o India is encircled by a growing ring of Chinese power and influence.
o To the north, garrisons, airfields and missile sites linked by modern road-rail networks underpin China’s
dominant posture on the Tibetan plateau. Also, the Xining-Lhasa rail link connects with Nepal, where
China has made significant political inroads.
o To the east, China’s Yunan province will gain access to the Bay of Bengal via rail, highway and pipeline,
linking it to the deep-water port being built by China at Kyaukpyu in Myanmar.
o A parallel endeavour on India’s western flank, through the China-Pakistan Economic Corridor (CPEC), will
create access to the Arabian Sea from Xinjiang to the Pakistani port of Gwadar via Gilgit-Baltistan.
o Further west, China has set up its first overseas military base at Djibouti on the Bab el-Mandeb.
o To our south, China has built a new harbour in Hambantota and modernised Colombo port for Sri Lanka.
o Strategic encirclement: There is already news that the PLAN intends to deploy its expanded marine corps
to Djibouti and Gwadar. The recent Chinese sale of eight diesel submarines to Pakistan and two to
Bangladesh provides conclusive evidence of India’s “strategic encirclement”.

• CHINA CARD FOR NEIGHBOUR- Increased Chinese presence also provides neighbour countries to strike a hard
bargain with India.
• SECURITY CONCERNS- The recent clashes in Galwan Valley highlight China’s Salami Slicing Policy in work.
• CHINESE INTERFERENCE IN DOMESTIC POLITICS- Of countries like Nepal and Sri Lanka has resulted in strained
relationship with India.
• TRADE
o Over the past decade, China has replaced India as the major trading partner of several South Asian
countries.
o Only Afghanistan, Bhutan, and Nepal have a higher trade share with India compared to China.
o China’s exports to the region has increased from $8 billion in 2005 to $52 billion in 2018.
o China has committed around $100 billion investment in the economies of Afghanistan, Bangladesh, the
Maldives, Pakistan, Nepal and Sri Lanka.
• CHINA-PAKISTAN ALL WEATHER FRIENDSHIP- As seen in CPEC project, China is stalling India’s effort in UNSC to
list Masood Azhar as terrorist and Raising Kashmir issue.
• DEBT TRAP DIPLOMACY- As seen in Sri Lanka where China has acquired Hambantota port on lease for 99 years.
WAY FORWARD
• NEIGHBOURHOOD FIRST- Giving diplomatic and political priority to the neighbourhood. India can adopt principle
of Gujaral Doctrine i.e. Non-Reciprocity.
• LEVERAGING QUAD AND OTHER MINILATERALS- Joint implementation of projects with QUAD countries to
improve connectivity in the region.
• FAST COMPLETION OF PROJECTS- Like hydropower projects in Nepal, Bhutan, Kaladan Multimodal project etc.

• SOLVING BOUNDARY AND RIVER WATER DISPUTES- to reduce the trust deficit among countries.
• REVIVING SAARC -to provide platform for cooperation and discussion and fastening regional integration
TERRORISM
THREAT
• STATE SPONSORED TERROSISM BY PAKISTAN
o ISIS has presence in Maldives, Sri Lanka as well as in India. The Easter bombings in Sri Lanka highlight
the threat posed by it.
o Poor border infrastructure along borders. For ex- Borders along Nepal, Bangladesh are used by
terrorists for infiltration.
IMPACT-
• POOR REGIONAL INTEGRATION
• TRUST DEFICIT between countries due to boundary disputes and other conflicts,
• LOW LEVELS OF TRADE AND ECONOMIC INTERDEPENDENCE
• FEAR OF NUCLEAR WAR between India and Pakistan.
• Impact on India’s global image and status as a rising power.
WAY FORWARD-
• SAARC - SAARC FORCE with contribution from all countries to conduct coordinated action against terrorists.
• STRATEGIC PARTNERSHIP AND INTELLIGENCE SHARING with armed forces of other countries. It can be based
on the RATS mechanism of SCO.
• JOINT MILITARY EXERCISES to enhance interoperability between armed forces and protecting against
traditional and non-traditional threats in Indian ocean region.
REGIONAL ORGANISATIONS
IMPORTANCE
• PLATFORM FOR DISCUSSION to solve disputes between countries.
• REGIONAL COOPERATION on critical issues such as Blue economy, FTA in trade and investment etc
• REGIONAL INTEGRATION- Through enhanced trade and reduced trust deficit
• PEACE AND PROSPERITY
• COMMON POLICY ON GLOBAL PLATFORMS such as WTO, UN. Support from neighbouring countries is critical
for India’s ambition of a permanent seat of UNSC.
• DEVELOPING REGIONAL SECURITY ARCHITECTURE by building border infrastructure and joint patrolling in
Indian Ocean Region. India can help other countries in capacity building through SAARC.
• REASONS FOR INEFFECTIVENESS- (covered above in trade barriers)
WAY FORWARD-
• LEARNING FROM ASEAN -importance of continuing discussion and negotiations. For Ex- despite being under
Military rule, ASEAN countries still engaged with Myanmar.
• ALTERNATIVE ARRANGEMENT- BIMSTEC can be a new SAARC MINUS PAK.
• LEADERSHIP BY INDIA by putting more resources in Organisations like BIMSTEC and providing concessions
to neighbours and helping them in capacity building in sectors such as Health, Education, disaster
management etc.

NEIGHBOURHOOD FIRST POLICY

• The policy of ‘Neighbourhood First’ focuses on creating mutually beneficial, people-oriented, regional
frameworks for stability and prosperity. It aims to engage with neighbouring countries based on a
consultative, non-reciprocal and outcome-oriented approach.
4 pillars of policy
1. Diplomatic and political priority to neighbourhood
2. Active support for development of these countries
3. Greater connectivity and integration in the region.
4. Promote India led regionalism where neighbours are comfortable.
POSITIVE ASPECTS OF THE POLICY-

• INDIA’S MUNROE DOCTRINE- NFP focuses on changing India’s image of ‘Big Brother’ and strives for non-
reciprocal, consultative and cooperative development assistance to neighbours.
• SUB REGIONAL COOPERATION- under BBIN and BIMSTEC. Recently, former PM of Sri Lanka Ranil
Wickremesinghe has suggested an Economic Integration Roadmap for sub regional cooperation.
• EMERGENCY RESPONSE- SAARC assistance fund to deal with COVID pandemic, medical assistance under
operation sanjeevani and operation neer to help Maldives during water crisis.
• CONNECTIVITY- Through projects such as sagarmala, greater male connectivity project in Maldives, BBIN,
Kaladan project etc.
• MARITIME SECURITY- India has assumed the role of Net Security Provider in Indian ocean region and PM
Modi has given the vision of SAGAR- security and growth for all.
• DEVELOPMENTAL ASSISTANCE- Through High Impact Community Development Projects, Quick Impact
projects etc.
CHALLENGES-
1. RISING CHINESE FOOTPRINT (explained earlier)
2. Border and river water disputes
3. DOMESTIC POLITICS- Tamil issue, Teesta water issue, Rohingya issue, CAA NRC ISSUE etc.
4. FAILURE OF SAARC
5. EXTREME TRUST DEFICIT AND RISE OF TERRITORIAL NATIONALISM- for ex- recent border conflict between
India-Nepal.
WAY FORWARD-
• BUILDING ON SOFT POWER by leveraging historical civilizational and cultural linkages.
• RESTRATIGING NFP- By promotion of a multi-vector foreign policy by diversifying its foreign policy attention
on multiple powers in the global arena while developing a stronger matrix of multilateralism and employing
stronger diplomatic communications strategies at regional level.
• REVIVING SAARC- by adopting Functionalist Approach- compartmentalising issues and cooperating in less
contentious issues.
• CONNECTIVITY- faster completion of projects such as Kaladan project and working with likeminded countries
like Japan, US to improve connectivity in the region.
CONCLUSION-
As pointed out by former PM Vajpayee, we can change history but not geography, we can change our neighbours
but not our neighbours. So, India needs to give diplomatic priority to build peaceful and stable relations with
neighbours and work for creating a security community in South Asia based on mutual trust.

INDIA – PAKISTAN
PYQ
1. Terrorist activities and mutual distrust have clouded India-Pakistan relations. To what extent the use of
soft power like sports and cultural exchanges could help generate goodwill between the two countries?
Discuss with suitable examples.2015
Introduction-
• Pakistan represents the biggest foreign policy challenge to India and is source of all sorts of threats, from nuclear
war to proxy wars.
VIEWS-
• Stephen P. Cohen- ‘Shooting for the century’: It is a paired minority conflict and has reached mutually hurting
stalemate where India can’t win and Pakistan can't lose. The other examples of such rivalries are Jews-Arab,
Shia-Sunni.
• Rajesh Basrur- The fundamental contradictions are India’s status quoist approach on Kashmir and Pakistan’s
determination to change it.
KEY ISSUES IN INDIA-PAKISTAN

BORDER ISSUE
Kashmir-
• Wars: Both countries have fought 3 wars on the Kashmir issue. It is not just a battle of territory but a battle
of identities.
• Internationalisation of issue: Pakistan aims to internationalise the Kashmir issue whereas India considers it a
Bilateral issue as per Shimla Agreement of 1971.
• According to scholars it is believed that till Kashmir issue is solved, India-Pakistan relations can’t be
normalised.
Siachen-
• Operation Meghdoot: LoC could not be demarcated beyond NJ9842 due to bad weather. India acquired
strategically important points in ‘Operation Meghdoot’.
• As many as 167 Army personnel lost their lives in Siachen Glacier in the last 10 years due to weather-related
incidents.
• Agreement could not reach: Both countries came close to an agreement on Siachen Glacier thrice - in 1989,
in 1992 and then in 2006. However, agreement could not be completed because of huge trust deficit
between countries.
Sir Creek-
• It is a 92 km stretch of marshy land separating Gujarat from Sindh.
• The dispute lies in the interpretation of the maritime boundary line between Kutch and Sindh.
• Pakistan claims the entire creek as per paragraphs 9 and 10 of the Bombay Government Resolution of 1914
signed between then the Government of Sindh and Rao Maharaj of Kutch.
• But India claims that the boundary lies mid-channel as depicted in another map drawn in 1925, and
implemented by the installation of mid-channel pillars back in 1924.
Gilgit Baltistan issue-
• Recently Pakistan has given ‘Provincial status’ to Gilgit Baltistan making it 5th province of Pakistan. It was part of
the erstwhile J&K state.

Other issues
• ASYMMETRIC BALANCING- Pakistan uses terrorism as means to destabilise Kashmir. Many terrorist launch pads
have been established in PoK along Kashmir border to infiltrate terrorists into India.
• TRADE- Political tensions have also impacted trade relations between India and Pakistan.
▪ Intra-regional trade- accounts for a little more than 5 percent of South Asia’s total trade while it accounts
for 50 percent of total trade in East Asia and the Pacific and 22 percent in Sub-Saharan Africa. SAARC and
SAFTA are also ineffective due to the conflictual relations between two.
▪ After the Pulwama terror attack in February 2019, India withdrew the non-discriminatory market status it
had unilaterally granted Pakistan in 1996, popularly known as Most Favoured Nation, and imposed a
customs duty of 200% on all goods originating from Pakistan.
▪ India also suspended cross-LoC trade in April 2019 on receiving reports that these routes were being
misused by Pakistan-based elements for funnelling illegal weapons, narcotics and fake currency.
CHINA PAKISTAN ALL WEATHER FRIENDSHIP-
▪ Recent India-China border standoff in Ladakh Region have increased possibility of 2 front war on North-
western and North-Eastern borders.
▪ Strategic encirclement: China is also using Pakistan for strategic encirclement of India through CPEC and
Gwadar port.
▪ China-Pakistan-Iran-Russia axis: The emerging China-Pakistan-Iran-Russia axis can endanger India’s
security on Northern borders as well as in Indian ocean.
▪ China has raised J&K issue in UNSC for third time since 2019.
AFGHANISTAN-
▪ Pashtun Nationalism: Due to fear of 2 front war and Pashtun Nationalism, Pakistan seek strategic depth in
Afghanistan. Thus, it is opposed to any Indian involvement in Afghanistan.
▪ Links with Haqqani faction: ISI has deep links with Haqqani faction of Taliban which can be used to
endanger India’s investments in Afghanistan.
▪ US withdraw: Pakistan can also recruit Taliban fighters for destabilising Kashmir once US forces withdraw
from Afghanistan.
• OPPOSITION TO INDIA’S UNSC SEAT CLAIM- Pakistan has formed coffee club to oppose permanent seat for India
at UNSC.
• CEASEFIRE AGREEMENT- Pakistani forces have violated the ceasefire 5,100 times in 2020 with an average of 14
cases daily. In these ceasefire violations, 36 people including 24 security personnel were killed and 130 injured.
MORE ON GILGIT BALTISTAN-
• Gilgit-Baltistan was part of the formerly princely state of Jammu and Kashmir illegally occupied by Pakistan
since it invaded the region after the partition of India.
• China Pakistan Economic Corridor passes through the region.
• It will bring the region directly under control of federal government of Pakistan
• India’s response- India considers it as an integral part of India by virtue of its fully legal and irrevocable
accession”.
RECENT NEWS-
Pakistan’s New Map-
• Pakistan has unveiled a new map that shows Kashmir as part of Pakistan. It includes the UT of J&K and Sir
Creek as part of Pakistan

• India’s objections- India has objected to new map of Pakistan and held that it has neither legal validity nor
international credibility.
• However, it also presents opportunity to India as whole Kashmir has been shown as a single entity including
Gilgit Baltistan. Thus, strengthening India’s position. This gives opportunity to India to include the Gilgit
Baltistan issue in Kashmir Talks.
Azad Pattan:
• PoK Hydel Project-Pakistan and China signed an agreement for
the 700 MW Azad Pattan hydel power project, worth $1.5
billion, on the Jhelum river in Pakistan Occupied Kashmir (PoK).
• It is the second power project under the China Pakistan
Economic Corridor (CPEC). The first agreement was for the
1,100 MW Kohala project on Jhelum river.
• India has protested the construction of dams and other
infrastructure in PoK and Gilgit Baltistan, which are territories
claimed by India as part of Jammu & Kashmir.
J&K Issue Raised at UNSC-
• China has raised J&K issue in UNSC for third time since 2019.
• It was raised under “any other business” in the meeting.
• China called India’s move in J&K “illegal and invalid”, India responded by saying that Beijing has “no locus
standi” on the matter.
• Internationalisation of Kashmir: This highlight Pakistan’s attempt to Internationalise the Kashmir issue.
However, as per Shimla Agreement of 1971, Kashmir issue is bilateral issue.
Ceasefire Along Line of Control
• After hotline contact between Director Generals of Military Operations (DGMOs) of India and Pakistan, both
countries have agreed to strictly observe ceasefire agreement along the Line of Control (LoC).
• Reduce infiltration: This can reduce infiltration attempts and terrorist incidents. It can help in reducing trust
deficit between 2 countries and can normalise the relations.
• Reduce radicalisation: This can further reduce radicalisation and recruitment of local youth.
• Narcotics still remains the concern: Indian Army chief has pointed out that though ceasefire agreement has
reduced violence along LoC yet Pakistan has yet not dismantled terror infrastructure along LoC and
smuggling of weapons and narcotics still remains the concern.
Basmati Rice Issue
• Net exporter: Both India and Pakistan are net exporters of Basmati Rice.
• Exclusive trademark : Recently, India has applied for an exclusive trademark that would grant it sole
ownership of the basmati title in the European Union.
• Pakistan opposed India's move to gain Protected Geographical Indication (PGI) from the European
Commission.
60 YEARS OF INDUS WATER TREATY

WHAT IS THE TREATY?
• Division: As per the treaty three ‘western rivers’ (Indus, Jhelum and Chenab) went to Pakistan and the three
‘eastern rivers’ (Sutlej, Ravi and Beas) were portioned to India.
• India conceded 80.52 per cent of the aggregate water flows in the Indus system to Pakistan. India conceded
its upper riparian position on the western rivers for the complete rights on the eastern rivers.
• It was brokered by the World Bank.
WHY INDIA SIGNED TREATY?

• For the complete rights: India conceded its upper riparian position on the western rivers for the complete
rights on the eastern rivers as it was vital to get the waters of the ‘eastern rivers’ for the proposed Rajasthan
canal and the Bhakra Dam without which both Punjab and Rajasthan would be left dry, severely hampering
India’s food production.
ISSUES-
• Pakistan has objected to Indian projects on Western Rivers Jhelum and Chenab.
• Resentment in India: There is also resentment in India as it conceded 80% of water to Pakistan and there is
demand to revise the treaty.
• Article XII of the IWT says that it “may from time to time be modified” but it required ratification from both
countries.
WAY FORWARD-
• Permissible storage capacity: Utilise 3.6 million-acre feet (MAF) of “permissible storage capacity” granted by
the IWT on the western rivers.
• Tapping on hydroelectricity- out of the total estimated capacity of 11406 MW electricity that can be
harnessed from the three western rivers in Kashmir, only 3034 MW has been tapped so far.
India’s projects on western rivers-
• Tulbul Navigation project - Jhelum,

• Rattle and Bagliha hydro projects - Chenab,
• Bursar hydroelectric project- on tributary of the Chenab
WAY FORWARD-
• Continuing dialogue- While sticking to its redlines on terrorism and Kashmir, India should work towards building
on the ceasefire pact and resuming a more comprehensive dialogue.
• Enhancing Trade Relations- Recently, Pakistan allowed limited imports of sugar, cotton, and wheat from India.
Both countries can build on this to normalise trade along the border.
• Confidence Building Measures like prisoner exchanges, sporting visas etc can go long way to reduce trust deficit
between 2 countries.
• Backchannel Diplomacy through civil society and industry bodies and third-party counties like Saudi Arabia and
UAE can compensate for diplomatic standoff.
• Soft Power Diplomacy like PM Modi’s greetings letter on Pakistan day, hydro diplomacy on Indus water sharing
and cricket diplomacy can have spill over effect on creating comprehensive and sustainable conflict resolution
mechanism.

INDIA – BANGLADESH-
PYQ
1. The protests in Shahbag Square in Dhaka in Bangladesh reveal a fundamental split in society between the
nationalists and Islamic forces. What is its significance for India? (2013)
Introduction
Bangladesh, given its strategic location, political stability and spectacular economic growth in the past few years, has
emerged as the ideal partner for India. New Delhi’s proactive engagement with Dhaka also reflects a broader shift in
India’s foreign policy, as it increasingly focuses its attention eastward, toward the Bay of Bengal and the Indo-Pacific
region.
Highlighting the importance of the relationship, Foreign Minister Subrahmanyam Jaishankar stated that India and
Bangladesh have the potential to change “the whole geo-economics of the region.”
Recent context
• The Prime Minister Narendra Modi visited Bangladesh to commemorate the 50th anniversary of the war of
liberation and establishment of bilateral diplomatic ties between India and Bangladesh and the centenary
year of Sheikh Mujibur Rahman.
• During the virtual summit both countries also signed 7 key agreements covering important areas like Rail
Connectivity, hydrocarbons etc.
SIGNIFICANCE OF INDIA_BANGLADESH RELATIONS

GEOSTRATEGIC SIGNIFICANCE
• Connectivity and security to North-East- As the region is landlocked and has better connectivity through
Bangladesh. Connectivity through Bangladesh is also important for security of Siliguri corridor also known as
chicken’s neck.
• Act East policy- Bangladesh is India’s bridge to southeast Asia and an important partner in BBIN and BIMSTEC
initiatives.
• Maritime security- as it is strategically located in Bay of Bengal, it is essential for securing important sea lines
of communications.
• To counter Terrorism and Radicalisation.
MILITARY COOPERATION
• The armed forces from both sides regularly conduct joint drills like exercise sampriti and Milan. India has
extended $500 million line of credit to Bangladesh for defence imports from India.
TRADE RELATIONS
• Bangladesh is India’s largest trading partner in South Asia.
• India’s exports to Bangladesh in FY 2018-19 stood at $9.21 billion and imports during the same period was
at $1.04 billion.
• India has also granted the Duty-Free and Quota Free access to Bangladeshi exports to India under South
Asian Free Trade Area (SAFTA) since 2011.

ENERGY COOPERATION
• India exports electricity to Bangladesh and India-Russia are jointly developing Rooppur Atomic Power Plant
in Bangladesh.
Connectivity
• Under the transit agreement between India
and Bangladesh signed in 2010, Bangladesh
provides transit facilities to India on three
modes of transport: inland water, rail, and
coastal shipping.
• Once finalized, the Bangladesh-Bhutan-Nepal-
India (BBIN) Motor Vehicle Agreement, which
has already been piloted, will add a fourth
mode to the existing facilities.
• India-Bangladesh inland waterway route: The
route connects Tripura with the National
Waterways of India through Bangladesh. A trial
run of an inland waterways protocol route was completed with a cargo vessel leaving for Sonamura port in
Tripura from Munshiganj in the neighbouring country.
• Protocol on Inland Water Transit and Trade (PIWTT)- Under the renewed Protocol on Inland Water Transit
and Trade (PIWTT) between Bangladesh and India, there are ten water routes, known as Indo Bangladesh
Protocol (IBP) routes.
● RAIL CONNECTIVITY- Currently, four railway routes are operational between Bangladesh and India AND three
railway routes are under construction.
● During the recent virtual summit, PM of both countries jointly inaugurated newly restored railway link
between Haldibari and Chilahati.
● COASTAL SHIPPING- Bangladesh and India signed a coastal shipping agreement back in 2018 which
allows India to use the Chattogram and Mongla ports for transporting goods to the states of Tripura, Assam,
and Meghalaya. There are no transit fees or customs duties for India under the agreement. Indian cargoes
just need to pay administrative fees to Bangladesh.
● India’s NE development and connectivity: Bangladesh has also recently granted permission to use its inland
route and ports of Chittagong and Mongla for trans-shipment of goods to northeast Indian states.
Blue Economy
● India and Bangladesh are cooperating in the exploration of hydrocarbons, marine resources, deep-sea
fishing, preservation of marine ecology and disaster management.
● During the virtual summit, both countries agreed to expeditiously conclude the Memorandum of
Understanding (MoU) in the area of disaster management cooperation.
Border Cooperation
● Both countries have signed Land Boundary Agreement in 2015 to demarcate the boundary.
● In recently concluded virtual summit, both countries stressed on the full implementation of the
ongoing Coordinated border management plan which included collaborated efforts against smuggling of
arms, narcotics and fake currency and to prevent trafficking of women and children.
Rohingya issue
● In 2018 India sent relief materials for 300,000 Rohingyas in under ‘Operation Insaniyat’ to support
Bangladesh in its humanitarian efforts. In recently concluded virtual summit, India appreciated the efforts of
Bangladesh in providing humanitarian assistance to the Rohingya refugee.
Partnership on Multilateral forums
● Both countries are important partners in regional forums like SAARC, BIMSTEC, BBIN.
● Bangladesh will also assume chairmanship of the Indian Ocean Rim Association in 2021.
● Both countries are also cooperating in reform of UNSC and attainment SDGs.

ISSUES IN RELATIONSHIP
● CHINA FACTOR- In recent years that the Chinese investment into Bangladesh has grown exponentially. The
main concerns which is raised about these investments is that of Bangladesh falling into the same debt trap
like Sri Lanka. Further, Bangladesh is overwhelmingly dependent on China for military hardware.
● Rising radicalisation in Bangladesh can have a spill over effect in Eastern states of India.
● Boundary- Porous boundary has given rise to smuggling, human, drugs and arms trafficking.
● River Disputes- India and Bangladesh share 54 rivers. Both countries have major dispute over the Teesta
river. With the India-Bangladesh water-sharing deal stuck; it has begun to discuss a Chinese loan to manage
the river.
● Domestic Politics - Bangladesh has raised concerns over CAA-NRC. Foreign Minister of Bangladesh has gone
on to say that the new law would weaken India's “historic position” as a “tolerant and secular nation. There
were also reports of cancellation of high level visits by Bangladesh as a protest.
o However, officially Bangladesh has clarified that CAA is internal matter of India.
● Issues in connectivity-
o Inland Waterways- the utilization of the inland waterway transit by Indian vessels remains below
anticipated levels. A study by the Indian High Commissioner in Dhaka found the lack of navigability,
lack of container facilities in Ashuganj port, and the long-distance of custom offices from the ports
as some reasons for Indian carriers to not operate using Bangladesh’s inland water routes.
o Poor Infrastructure development- in both countries along the borders.
● Financing- India has provided four Lines of Credit (LoC) worth USD 7.8 billion to Bangladesh since 2010.
However, the disbursement of capital through the LoCs has been slow. Of the total USD 7.8 billion credit,
only around 9 percent or USD 686.08 million has been disbursed to Bangladesh till FY 2019-2020.
● Rohingya issue- India’s position on Rohingya migrants and remarks in 2017 have not gone down well with
Bangladesh which is facing challenge of providing shelter to more than a million refugees. Further, India has
also refused to exert any pressure on Myanmar for taking the Rohingyas back despite requests from
Bangladesh.
● Bureaucratic red Tapism- Out of total approved $7.4 billion , only $442 million was disbursed till 2019 due
to red Tapism and requirement of approval by Exim Bank.
TEESTA WATER DISPUTE
TEESTA WATER DISPUTE

● Flows through Indian States: The Teesta river is 315 km long river and a tributary of Brahmaputra and
originates in Himalayas and flows through Indian states of Sikkim and West Bengal before entering into
Bangladesh.
● Provide livelihood: The river drains 2800 sq.km. of land in Bangladesh and provide livelihood to thousands
of people. In West Bengal the river is lifeline for half dozen districts in North Bengal.
DISPUTE
● Negotiations going on: India and Bangladesh could not sign Teesta water sharing though negotiations are
going on since 1983 and despite having signed Ganga water sharing Deal.
● The key issue is lean season flow in Teesta draining into Bangladesh,
● Temporary deal: In 1983 both countries signed temporary deal which allocated 39% of water to India and
36% to Bangladesh. However, the agreement was only for 2 years.
● A 2011 interim deal - that was supposed to last 15 years - gave India 42.5 percent of the Teesta's waters
and gave Bangladesh 37.5 percent. However, deal could not be signed because of opposition from West
Bengal government.

● India’s own compulsion: Bangladesh wants 50 percent of the Teesta's waters between December and May
every year, because that's when the water flow to the country drops drastically. However, India has its own
compulsions as India needs this water for irrigation in North Bengal.
Reasons for the crisis
● Reduction in Water- recent report of thirdpole.net shows that river has only one-sixteenth of the water
needed.
● Planning Failure- Barrages are built to hold back water for dry seasons. However, water has been released
by wrong time by authorities in both counties.
● Sikkim Effect- The water released from run of the river projects in Sikkim is not coordinated with peak time
need of farmers.
● Opposition of West Bengal government- (covered above)
● Federalism Issue- Different ruling parties at centre and the states makes the matter more complex.
Recent News-
● During virtual summit in December 2020, Bangladesh highlighted the need for early signing of an interim
agreement for sharing of the Teesta waters, as agreed upon by both the governments in 2011.
● Role of China - Bangladesh is discussing an almost $1 billion loan from China for a comprehensive
management and restoration project on the Teesta River.
Way Forward
● Regional Mechanism- To decide on mutually agreed principles on water sharing and enforcing of
agreements. SAARC could be used to enhance cooperation among riparian states.
● Water sharing deals from other rivers- India and Bangladesh shares 54 rivers. Sharing waters from other
rivers in equitable manner can help meeting water demands from both sides. Recently, WB CM has also
proposed sharing of water from Torsa river. Similarly, in 2019 both countries signed MoU on withdrawal of
1.82 cusecs water from Feni River by India a drinking water supply scheme in Tripura.
● Transparency in data sharing- sharing of data on river water flow in a transparent manner based on mutually
agreed scientific parameters.
● Cooperating on transboundary river management and water conservation by strengthening the institutional
mechanism of Joint River commission. Also, early conclusion of Framework of Interim Agreement on sharing
of waters of six joint rivers is needed.
Conclusion
● The hydrological linkages between India and Bangladesh are a product of geography and a matter of shared
history. Thus, to make the recent gains in overall relationship irreversible, both countries need to continue
working on the three Cs — cooperation, collaboration, and consolidation.
GOVERNMENT STEPS
BORDER SECURITY
● Land boundary agreement of 2015.
● establishment of Border Protection Grid (BPG) And creation of crime-free stretch
CONNECTIVITY
● Agreement on Standard Operating Procedure on use of Chattogram and Mongla Ports for movement of
goods to and from India;
● Recently Bharat Bangla Maitri Bridge was inaugurated in Tripura’s South district. It can serve as a new trade
corridor between the two countries.
VACCINE MAITRI
● India gifted 109 ambulances, and also donated 1.2 million doses of Covid-19 vaccines as a grant.

Developmental support
● Since 2010 India has approved 3 lines of credit to Bangladesh amounting to $ 7.4 billion.
Key takeaway’s of PM Modi’s visit to Bangladesh
KEY TAKEAWAY’S OF PM MODI’S VISIT TO BANGLADESH

Celebration of a common bond
● The foundation stone of the memorial being constructed by Bangladesh in honour of the martyrs of the
Indian Armed Forces who sacrificed their lives in the 1971 Liberation War was laid during the visit.
● The two countries also declared to link the historic road between Mujibnagar and Nadia and naming it as
Shadhinota Shorok.
● PM also unveiled the Bangabandhu–Gandhi digital exhibition which will be displayed in 19 countries across
the globe together by India and Bangladesh.
Connectivity-
● To promote people-to-people connectivity between India and Bangladesh, primarily in the 50th years of the
diplomatic relationship, three new border haats were inaugurated.
● New train called “Mitali Express” connecting Dhaka and New Jalpaiguri was also inaugurated
Focusing on Youth
● India announced special ‘Swarna Jayanti Scholarships’ for the youth of Bangladesh for receiving education
in various field of study in India.
● A Memorandum of Understanding (MoU) was also signed between the Bangladesh National Cadet Corps
(BNCC) and National Cadet Corps of India (INCC) to increase interaction among the youth of the two
countries.
Cooperation in Science and Technology-
● New areas of cooperation: In the joint statement the two sides acknowledged the potential of new and
emerging areas of cooperation in cutting edge areas of science, artificial intelligence, peaceful uses of
nuclear technology, big data, and technology-enabled services in health and education.
WAY FORWARD-
- Removing red tape to expedite infrastructure development: Bangladesh and India can expedite the process
by directly sending the bill from the line ministry to India’s EXIM Bank.
- Use new inland water ports for promoting regional connectivity: Water transport provides a sustainable
alternative to other models of transport.
- Allow third party goods to be transported under the coastal shipping agreement: This will save time and
costs: an estimate puts the savings at USD 37.5 million per year for Bangladesh. It will also reduce congestion
at the Chattogram seaport.
- Greater regional connectivity- The coastal shipping agreement between India and Bangladesh can also lead
to a greater BIMSTEC coastal shipping agreement which can increase trade between the member countries.
Further, the road and rail transit routes, both existing and proposed, can also be a part of the Trans-Asian
highway and railway projects.
CONCLUSION-
- PM Modi has termed the present state of relationship as ‘Sonami Adhyay’ and both sides can play a
significant role in global and regional value chains by further integrating their economies and boosting
connectivity.

INDIA-NEPAL
introduction-
• As close neighbours, India and Nepal share a unique relationship of friendship and cooperation characterized by
open borders and deep-rooted people–to–people contacts of kinship and culture. The India–Nepal Treaty of
Peace and Friendship of 1950 forms the bedrock of the special relations that exist between India and Nepal.
WHY IN NEWS?
• Recently, Nepal published a new political map that claimed Kalapani, Limpiyadhura and Lipulekh of Uttarakhand
as part of its sovereign territory. India responded by saying that artificial enlargement of territorial claims will
not be acceptable to it and asked the neighbouring country to refrain from "unjustified cartographic assertion".
India Nepal Ties

India and Nepal share deep social, cultural, strategic, political, and economic ties that have been forged over many
centuries.
▪ ECONOMIC- India remains Nepal’s dominant trade partner, steadily accounting for approximately 60-65% of
all trade with Nepal. As Nepal is a landlocked country, it is dependent on India for access to sea.
▪ INVESTMENT- Indian firms are the biggest investors in Nepal, accounting for about 40% of total approved
foreign direct investments. There are about 150 operating Indian ventures in Nepal. They are engaged in
manufacturing, services (banking, insurance, dry port, education and telecom), power sector and tourism
industries.
▪ POLITICAL- Both countries share Open Borders under treaty of peace and friendship. Both countries are also
members of SAARC and BIMSTEC.
▪ SOCIAL- The two countries have close bonds through marriages and familial ties, popularly known as Roti-
Beti ka Rishta.
▪ Water Resources – There are about 250 small and large rivers flow from Nepal to India and constitute an
important part of the Ganges river basis. A three-tier bilateral mechanism was established in 2008 to discuss
all issues relating to cooperation in water resources and hydropower between the two countries.
▪ Cultural- India and Nepal share rich Hinduism and Buddhist cultural heritage. Both the governments have
also tried to build on this shared cultural heritage. India and Nepal have also signed sister-city agreements for
twinning of Janakpur-Ajodhya, Kathmandu-Varanasi, Lumbini-Bodhgaya.
o India is also supporting 2 heritage projects, namely, Pashupatinath riverfront development and
Bhandarkhal Garden Restoration in Patan Durbar.
▪ Defence cooperation- Indian and Nepalese military undertake annual joint military exercise ‘surya kiran’.
India also provides equipment and training to Nepalese army to assist in its modernisation.
▪ Disaster Management- Both countries are working through BIMSTEC for collective disaster response. India’s
assistance during 2015 is also well appreciated by Nepal.
▪ Regional integration- Both countries are working to BBIN, BIMSTEC, SAARC to improve regional connectivity
and regional integration.
▪ Connectivity- As Nepal is landlocked country, it is dependent on India for access to sea.
o Both countries have signed MoU to provide rail connectivity and are also working to develop inland
waterways in Nepal to connect Nepal with Indian ocean.
o Establishment of Integrated Check Ports along the borders, recent ones being Birgunj and Biratnagr,
have also eased trade and transit.

INDIA-NEPAL TERRITORIAL DISPUTE
WHY IN NEWS?
▪ In May 2020 India’s defence minister virtually inaugurated a new 80 km-long road in the Himalayas,
connecting to the border with China, at the Lipulekh pass.
▪ The Nepal government protested this and introduced a constitutional amendment which made changes to
the Nepali map to include that Kalapani, Limpiyadhura and Lipulekh of Uttarakhand as part of its sovereign
territory
VIEWS-
▪ C. Raja Mohan identifies the territorial dispute as “merely a symptom of the structural changes unfolding in
the external and internal context of the bilateral relationship.
▪ As noted by Dinesh Bhattarai, a former Nepali diplomat, the border dispute “looks minor, but allowing it to
fester is likely to sow the seeds of immense competition and intense rivalry in the sensitive Himalayan
frontier with far-reaching geopolitical implications.”
▪ Similarly, Nepal expert S. D. Muni cautions that, sooner or later, the dispute “will be exploited by the third
parties to their advantage.”
HISTORY and PRESENT
● Open borders: The two countries share an approximately 1800-kilometre international open border, which
is managed under the bilateral Treaty of Peace and Friendship (1950).
o The border was formally demarcated for the first time with the Treaty of Sugauli (1816).
o Under section 5 the treaty Nepal renounced its claims on the region west of river kali. Thus, river
Kali became boundary between India and Nepal.
• Nepal’s stand- Nepal claims it conducted a census there in the
early 1950s and refers to the 1815 Sugauli Treaty as legitimising
its claims.
• India’s stance- Though the areas of Kalapani, Limpiyadhura and
Lipulekh lie west of river Kali, India has historically controlled the
region. And claims that the border begins at Kalapani where the
river begins.
• In 1981, both the governments had agreed to set up the India-
Nepal Border Joint Technical Committee to re-demarcate the
boundary pillars.
• They also established The Nepal-India Joint Border Inspection
Mechanism in 1981 and the Nepal-India Joint Border
Management Committee in 1997 to manage borders.
• No-man’s land: However, The Kalapani border has yet to be properly demarcated, especially the so-called
‘no-man’s land’ in the area.
OTHER ISSUES IN INDIA NEPAL RELATIONS-

• TRADE- Stronger border controls and strict are making it difficult to move cash and make payments across
the borders. The traditional informal business is under stress due to requirement of contracts and
documentation.
• A growing trust deficit between the two neighbours—especially since the 2015 unofficial Indian
blockade that crippled Nepal’s economy and rise of territorial nationalism in both countries.
• Domestic Politics- The Indian media’s sensationalized reporting about Nepal recently, irresponsible
statements by Nepali Prime Minister KP Oli, including unsubstantiated allegations of India plotting to remove
him, and Nepal border police fatally shooting an Indian man have added to tensions and created a hostile
environment for meaningful engagement.

• DELAY IN PROJECT COMPLETION- The trust deficit between Nepal and India largely affected the
implementation of various Indian-aided projects in Nepal. At times, some of the Indian investment
projects had been attacked.
• Political instability in Nepal- Recently, Nepali president has dissolved the House of Representatives in
controversial manner. With this Nepal has entered into another phase of uncertainty.
• RISING CHINESE FOOTPRINT-
o INVESTMENT- In 2019 China accounted for approximately 40% of new FDIs and 90% of total FDI
against India’s 30%.
o CONNECTIVITY- In 2017, Nepal formally joined the Belt and Road Initiative (BRI) of China.
▪ China is also developing US$ 2.5 billion trans-Himalayan railway connecting Tibet to Nepal’s
capital city Kathmandu.
▪ China and Nepal have also signed agreement for construction of all-weather road
connecting Tibet and Kathmandu under The Trans Himalayan Multidimensional connectivity
network.
o INTERFERENCE IN DOMESTIC POLITICS- During recent political crisis in Nepal, A Communist Party of
China delegation spent 4 days in Nepal, playing mediator between two factions of the ruling Nepal
Communist Party. The Chinese envoy too held meetings with both factions.
• NEW GEOPOLITICAL GREAT GAME-
o Elevated Partnership: During the visit of Xi Xinping, Nepal and China elevated their ties from
“Comprehensive Partnership of Cooperation Featuring Ever-lasting Friendship” to “Strategic
Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity”.
o Treaty on Extradition: China also signed a Treaty on Mutual Legal Assistance in Criminal Matters
(MLACM) and expressed hope for an early conclusion of the Treaty on Extradition.
o Himalayan ‘Quadrilateral’: The recent Himalayan ‘Quadrilateral’ meeting between China, Pakistan,
Afghanistan and Nepal also highlight Chinese attempt to contain India in south Asia.
o DAFENCE COOPERATION- For the first time, the People’s Liberation Army (PLA) and the Nepali Army
held two joint-military exercises in 2017 and 2018. Since 2019, the PLA has also agreed to provide
financial assistance to the Nepali Army on a regular basis
Extra Edge by OnlyIAS
1947 TRIPARTITE AGREEMENT ON GURKHA SOLDIERS

WHY IN NEWS?
• Nepal has officially proposed to the UK a review of a 73-year old tripartite agreement with India and Britain
over the recruitment and deployment of Gurkha soldiers and their perks and facilities and replace it with
a bilateral one.
WHAT IS THE AGREEMENT?
• First battalion: British India raised the first battalion of the Gurkha Regiment as the Nasiri regiment on
April 24, 1815.
• Division of armies: When India got freedom, these regiments were divided between the British and Indian
armies as per the Britain–India–Nepal Tripartite Agreement signed in November 1947.
• Current composition of Gurkha’s: Currently, the Gurkhas comprise up to 3% of the British Army, and in
2015 completed 200 years of service there.
WHAT IS THE ISSUE?
• However, Gurkha veterans have long alleged that Britain has discriminatory policies in remuneration for
Gorkhas.

• The issue also became prominent after the India-Nepal boundary dispute in Kalapani region.
WAY FORWARD-
• Demarcation of borders: Both countries have demarcated 97% of border. Both India and Nepal must invest
in negotiating new border management agreements to take into consideration recent events.
• Joint military deployment: Both countries can agree upon joint military deployment, special access rights for
Nepali citizens.
• Interdependence between Nepal and India is the secret to reset the relations between
the neighbours. Towards this end, the two countries could also build an international corridor along the
border region to enhance the trade between the two countries.
• Institutional mechanism: Both countries can also create institutional mechanism to play an active role in
several important multilateral forums such as BBIN, BIMSTEC, NAM, and SAARC to serve their common
interests.
• Full-fledged engagement: India should remain fully engaged with Nepal at all levels and across the political
spectrum. The safeguarding of India’s vital interests demands such sustained engagement.
• People-to-people links: India needs to appreciate that the people-to-people links between our two countries
have an unmatched density and no other country, including China, enjoys this asset. India needs to leverage
this precious asset to ensure a stable and mutually-productive state-to-state relationship.
INDIA – AFGHANISTAN
PYQ
1. The proposed withdrawal of International Security Assistance Force (ISAF) from Afghanistan in 2014 is
fraught with major security implications for the countries of the region. Examine in light of the fact that
India is faced with a plethora of challenges and needs to safeguard its own strategic interests. (2013)
INTRODUCTION-
• Afghanistan has been the centre of ‘Great Games’ and ‘Graveyard of Empires’. It derives its political
significance because of its Geo-strategic location.
• Due to its geographical positioning and influence on regional stability, the political future of Afghanistan will
be of considerable significance to several nations with competing sets of interests as well as to pan-Asian
relations as a whole.
• Peace and stability in Afghanistan is important for India for security in Kashmir, securing Indian investment
in Afghanistan as well as India’s power projection as a major global power.
SIGNIFICANCE OF AFGHANISTAN FOR INDIA
GEOSTRATEGIC
• Location- Connecting East, West, central and north east Asia.
o Proximity to major powers like Russia, China, India, Iran.
o Centre of Great game between the USA and Russia since the cold war.
• Regional balance power- Peace and stability in Afghanistan is linked to India’s vision of regional leader and
global power.
• Internal security- Afghanistan is centre of radical ideology, drug trafficking and smuggling. Thus peaceful
Afghanistan is necessary for regional security.
GEOECONOMIC
• Connectivity- Important transit hub for trade and commerce and access to landlocked Central Asia.

• Mineral Wealth- According to US geological Survey, Afghanistan is home to resource deposits like iron,
copper etc worth $1 trillion.
• Energy Security- Afghanistan has huge untapped sources of hydrocarbons including oil and gas. Further it is
also an important component of TAPI pipeline.
INDIA-AFGHANISTAN DEVELOPMENT PARTNERSHIP

• India’s assistance activities and development partnership with Afghanistan covers four broad areas:
Humanitarian Assistance
o Daily supply of 100 grams of fortified, high-protein biscuits to nearly 2 million children under a School
Feeding Programme administered through the World Food Programme.
o Free medical consultation and medicines through 5 Indian Medical Missions to over 30,000 Afghans
monthly.
o Reconstruction of Indira Gandhi Institute of Child Health in Kabul.
o 285 military vehicles for the Afghan National Army, and 10 ambulances for public hospitals in five cities).
Major Infrastructure Projects
o Zaranj to Delaram: Construction of 218 km road from Zaranj to Delaram to facilitate movement of goods
and services from Afghanistan to the Iranian border and, onward, to the Chahbahar Port (completed).
o Transmission line: Construction of 220kV DC transmission line from Pul-e-Khumri to Kabul
o Salma Dam power: Construction and commissioning of Salma Dam power project (42 MW) in Herat province
o Afghan Parliament: Construction of the Afghan Parliament
Small and Community-based Development Projects
o These are in vulnerable border areas, with focus on local ownership and management and extend to
agriculture, rural development, education, health, vocational training, and solar energy.
o 84 small projects are under different stages of implementation in 19 provinces of Afghanistan.
Education and capacity building
o Studies for Afghan student: 500 annual long-term university sponsored by the Indian Council for Cultural
Relations for under-graduate and postgraduate studies for Afghan students in India.
o Training program: 500 annual short-term ITEC training programmes for Afghan public servants
o Women’s Vocational Training Centre in BagheZanana for training of Afghan women by the well-known
Indian NGO SEWA (Self-Employed Women’s Association).
o Capacity building programmes are also underway in the fields of diplomacy, media and information, civil
aviation, agricultural research and education, health care and medicinal science, tourism, education, rural
development, public administration, electoral management and administration, and
o Local governance.
RECENT EVENTS
TALIBAN TAKEOVER OF AFGHANISTAN
After two decades of active involvement in the affairs of Afghanistan, and spending over a trillion dollars in the
process to defeat terrorism and the al Qaeda, the U.S. has left Afghanistan in a worse situation than when it entered.
CHALLENGES
• For India, the virtual retreat of the U.S. from this part of Asia; the growing China-Russia-Pakistan nexus across
the region; and an Iran under a hardliner like Ebrahim Raisi, all work to its disadvantage.
• Post US withdrawal-
o The vacuum can be filled by China and Pakistan which can be detrimental to India’s security.

o There is also risk of terrorism. While the U.S.-Taliban agreement states that the Taliban will prevent
terrorist outfits from operating on Afghan soil, there is little clarity on how the agreement will be
verified and enforced.
o It is not possible to discern any reduction in terrorism or the demise of any of the better known
terror groups, such as the al Qaeda and the Islamic State (IS), or for that matter, of lesser known
terror outfits.
o The other risk has to do with the growing influence of Pakistan’s Inter-Services Intelligence
Directorate, which shares an undeniable link with the Taliban, especially the Haqqani group.
• SECURITY- Afghanistan is hub for transnational terrorism and radicalisation. It can have a spill over effect on
Kashmir. It is also a hub for opium trade and organised crime.
• TRADE- trade through Afghanistan under a Taliban regime would be routed through Karachi and Gwadar,
and the Indian investment in the Chabahar port, meant to circumvent Pakistan, may become unviable.
• Connectivity- India lacks direct connectivity with Afghanistan. New route bypassing Pakistan through
Chabahar port is threatened by heightened US – Iran tensions and growing closeness between Iran and
China.
• Pakistan- Pakistan views its Afghanistan relations from prism of its relations with India. Thus it wants Strategic
Depth in Afghanistan. According to M. K. Narayanan, Pakistan is the ‘patron saint’ of the new regime.
o The Pakistan-Taliban close relationship was also seen when ISI Chief, Faiz Hameed flew into
Kandahar to greet Mullah Baradar.
▪ Pakistan can recruit Taliban fighters for destabilizing Kashmir post USA withdrawal.
▪ Pakistan also fears of Pashtun nationalism as no government in Afghanistan has ever accepted
Durand line. That’s why Pakistan wants to control afghan military and its foreign policy.
▪ Pakistan’s all-weather friendship with China and inclusion of Afghanistan in BRI can further
marginalise India in Afghanistan in new unfolding ‘Great Game’ in Afghanistan.
• Russia and CHINA- Rising Chinese footprint in Afghanistan through its proxy i.e. Pakistan. Emergence of
China-Pakistan-Iran-Russia axis. Afghanistan is important for China for its BRI project as well as stability in its
Xinjiang province.
o Russia, though no longer the power it once was, is currently seeking to enlarge its influence in
Eurasia, and the Afghan imbroglio gives it an opportunity.
o China, which envisages domination of Asia as the first step in its bid to become the world’s number
one power, sees Afghanistan as a prize both from a geo-economic and geo-political standpoint.
o For China, the mineral wealth of Afghanistan is only one aspect; a key objective is to make its Belt
and Road Initiative a truly viable entity, and further extend its reach to the Indian Ocean, without
being totally dependent on Pakistan.
• Institutional weakness in Foreign Policy making due to risk aversion approach and lack of capacity to meet
rising expectations of Afghanistan.
• New Great game- Between US-INDIA-Afghanistan on one hand and Pakistan-China-Russia on the other.
o Ethnic tensions in Afghanistan- a 33-member interim government overwhelmingly Pashtun in
character. Pakistan holds certain key cards given the prominent role assigned to its protégés,
Sirajuddin Haqqani and Mohammad Yaqoob, the son of Mullah Omar. In the new government quite
a few members are on various terror lists, including that of the United Nations and the United States.
o India’s relations with Taliban government- India’s relations with the new Taliban leadership may
remain strained due to its association, earlier with the Northern Alliance, and subsequently with the
Hamid Karzai and Ashraf Ghani administrations.

o HUMAN RIGHTS- there is the worry for India of the impact on Afghanistan itself, given the Taliban’s
past record in power, of an erosion in women’s and minority rights, the overturning of a democratic
system and the imposition of the Taliban’s brutal form of justice.
India’s Position-Shift on Taliban
• Presently, India is taking ‘wait and watch’ approach as events are still unfolding in Afghanistan. However,
India’s recent engagements with Taliban and Taliban’s request to New Delhi to resume flights to Kabul
highlight position shift towards Taliban. India is unlikely to pursue past policy of not recognising Taliban and
supporting Northern Alliance.
WHY CHANGE IN POSITION?

• Pragmatic shift- India’s previous stance had become untenable as it led to India missing out from various
peace processes related to Afghanistan.
• US Withdrawal and Taliban coming back to power.
• Pakistan Factor- Taliban is also willing to have relations with India as an insurance against Pakistan. No afghan
government including previous Taliban regime has accepted Durand Line between Afghanistan and Pakistan.
• Indian Investment- India also has invested more than $3 billion in Afghanistan. This includes projects such as
Salma dam, Afghan Parliament, Zaranj Delaram highway etc.
o Recently, India announced an agreement with Afghanistan for building the Shatoot dam, which
would provide safe drinking water to 2 million residents of Kabul city. Indian assets in Afghanistan
have been targeted by the Haqqani group, a major Taliban faction.
• Connectivity imperative- Afghanistan is also critical for India for connectivity to Eurasia and for energy
security (Tapi Pipeline). Thus, having cardinal relations with ruling party in Afghanistan is an imperative for
India.
• Course correction- India needs to avoid previous mistake of not recognising Taliban Government which led
to hijacking of IC-814.
WAY FORWARD-
• Engaging with Taliban- It would allow New Delhi to seek security guarantees from the insurgents in return for
continued development assistance or other pledges as well as explore the possibility of the Taliban’s
autonomy from Pakistan.
• According to M. K. Narayanan, India should take on a mediating role among the different nations anxious to
involve themselves in Afghanistan, and produce a formula that would help maintain Afghanistan’s neutrality
and ensure that it becomes a buffer zone to prevent further Chinese expansionism towards South Asia.
• India needs to work with countries like China and Iran who have similar stakes in peace and stability in the
region. The announcement of India-China joint development project in Afghanistan during Wuhan Talks is a
welcome step.
• India needs to closely collaborate with US’ local networks, which still carry considerable heft, when engaging
the Taliban. The US has also shown an appetite for India’s increased role by recently inviting it to the latest
rounds of Afghan peace talks.
• India should strive to ensure the continuance of the Kabul process so that counter-terrorism, women’s rights,
and democratic values (i.e. an Afghan-led, Afghan-controlled and Afghan-owned process) stay on the agenda.
This may entail bringing the Taliban into a “legal” process of governance and simultaneously supporting the
rise of civilian leaders who have legitimacy and clout beyond Kabul.
CONCLUSION-
• As suggested by C. Rajamohan, strategic rewards in Afghanistan are as large as risks. India is realistic enough
to know that it doesn't have power to unilaterally define Afghanistan’s future. But India needs to develop
some leverage and influence outcomes in Afghanistan through proactive diplomacy and some purposeful
action on the ground.


INDIA – MYANMAR
Introduction
• India-Myanmar relations are rooted in shared historical, ethnic, cultural and religious ties. India and
Myanmar share a long land border of over 1600 km and a maritime boundary in the Bay of Bengal.
• It is the only ASEAN country adjoining India and, therefore, is a gateway to South East Asia. India is seeking
to enhance its cooperation with Myanmar in line with our ‘Act East’ and ‘Neighborhood First’ Policies.
Overview of relationship
Institutional Mechanisms
• The National Level Meeting (NLM) at Home Secretary is the main forum to discuss security cooperation,
consular issues, drug trafficking and liaison between agencies.
• Boundary matters are discussed by Joint Boundary Working Group (JBWG) led by Joint Secretary (BM), MEA.
• Commercial issues are discussed in the Joint Trade Committee (JTC) held at Commerce Minister-level.
Development Cooperation
• India’s development assistance portfolio in Myanmar is now over US $1.75 billion. The bulk of this assistance
is grant-funded.
Commercial Cooperation
• Trade agreement: Since the signing of the India-Myanmar trade agreement in 1970, bilateral trade has grown
steadily. The current trade figures stand at US $ 1.7 Billion. India is the fifth largest trading partner of
Myanmar.
• Energy: Myanmar is potentially an important partner in the energy sector as future offshore gas finds can be
piped to India. Currently has a Joint Working Group on Oil and Gas and on Power cooperation.
• In terms of investment, India stands at 11th position with an approved investment of US$ 771.488 million.
13 Indian Public Sector Undertakings have presence in Myanmar in different sectors
Enhancing Connectivity
• In August 2018, two international entry/ exit points were inaugurated at Tamu-Moreh and Rih-Zowkhawthar.
Measures to fully operationalize these two land border points are underway.
• Negotiations on a Motor Vehicle Agreement is also ongoing.
• Other important connectivity projects include
o Kaladan Multimodal Transit Transport Project
o The Trilateral Highway Project, which is an East-West corridor connecting our Northeast with
Myanmar and Thailand;
Disaster Relief
• India has responded promptly and effectively in rendering assistance following natural calamities in
Myanmar like Cyclone Mora (2017), Komen (2015), earthquake in Shan State (2010), Cyclone Nargis in 2008
etc.
Culture
• India and Myanmar share close cultural ties and a sense of deep kinship, given India's Buddhist heritage.
Building on this shared heritage, India is undertaking some key initiatives in the restoration of the Ananda
Temple in Bagan and the repair and conservation of a large number of damaged pagodas
Security cooperation
• In July 2019, India and Myanmar signed a Defence Cooperation Agreement aimed at boosting military
engagement
• Both countries also conduct Joint Naval Exercise ‘IMCOR’, Indian Navy-Myanmar Navy (MN) Bilateral Exercise
‘IN-MN BILAT’ and the India-Myanmar Joint Army Exercise (IMBAX)

• Armies of India and Myanmar have carried out Operation Sunrise along the Myanmar border targeting camps
of insurgent groups operating in North East. They also work together to destroy several militant camps of
Arakan Army on the Indo-Myanmar border.
Maritime cooperation and Blue Economy
• Blue economy is an important pillar of BIMSTEC where both countries are working together. Under India’s
SAGAR (Security and growth for all in the region) programme, India has built Sittwe Port.
Significance of Myanmar for India

Geo-strategic
• Peace and stability in the region- Rohingya migration crisis and Coup by Junta
• Geostrategic location bordering China, India and ASEAN and Bay of Bengal.
• Internal security and to contain insurgency in North East- Myanmar is of vital importance to India especially
with respect to India’s northeast. India needs to make sure that Myanmar isn’t influenced by China in order
to avoid any issue in its the Northeast States.
• Containing rise of China (covered in detail below)
• For success of Act East Policy and neighbourhood first policy
Geo-economic
• Energy security- the Rohingya-populated areas of Myanmar have large oil and natural gas reserves, reaching
11 trillion and 23 trillion cubic feet respectively .
o Recently, the Indian side proposed construction of a $ 6 billion petroleum refinery in Thanlyn
area, near Yangon.
o Myanmar also has potential in hydroelectricity.
• Connectivity
• Rising Chinese footprint
Issues in relationship
• Insurgency- Many insurgent groups in North East have their base in Myanmar. The free movement regime
further facilitate their movement and links with organised crime.
• Rising Chinese footprint
• Domestic instability in Myanmar
• Rohingya crisis
• Porus borders and Organised Crime- Proximity to the ‘Golden Triangle’ together with a porous and poorly
guarded border provides the enabling environment for traffickers to smuggle heroin and psychotropic
substances into India through the India-Myanmar border.
ROHINGYA CRISIS
• Rohingya are described as the world’s most persecuted people. They live predominantly in Rakhine state.
• Systematic discrimination: The Rohingya are considered as illegal immigrants and they suffer from systematic
discrimination in Myanmar.
• Stateless people: The Myanmar government has made them stateless people by denying them citizenship.
• The recent crackdown on Rohingya by Myanmar army is described by the United Nations as a “textbook
example of ethnic cleansing” due to which around 800,000 Rohingyas fled Myanmar and took shelter in
Bangladesh.

Timeline of crisis
India’s position on Rohingya
• Illegal migrants: Indian government
considers Rohingya as illegal migrants and
maintains that Rohingyas are a threat to
its national security and have links with
international terror groups.
• Recently, SC has also rejected an
application to stay the deportation of
Rohingya refugees to Myanmar.
• India has asked Myanmar to secure
position for the displaced people
within the country and to start the
repatriation process soon in
consultation with Bangladesh.
• Development of the Rakhine province :
India has also laid emphasis on the
socio-economic development of the
Rakhine province to create enough
economic incentive for the displaced
people who will return from the camps
at Bangladesh.
Reasoning behind government’s stand

• Threat to national security: Indian
government considers Rohingyas as
threat to national security based on
intelligence that they have links with
Pakistan’s ISI.
• Resource crunch: The Rohingya’s will
consume the resources meant for citizens
of India, for whom the government is
constitutionally bound to act.
• Radicalisation: They may fuel
radicalisation in India.
• Principle of non-refoulement: The
government has also clarified in the SC
that it is not bound by principle of non-
refoulement, or forcible repatriation to a
place where the refugee’s life is in danger
as India is not signatory to the UN’s
Refugee Convention of 1951 or its 1967 Protocol.
Concerns for India
• Destabilization in the neighbourhood- due to radicalization and terrorist activities by Arakan army
• India’s stand has raised questions on its democratic credentials and may undermine its regional and global
leadership aspirations.
• China factor- While India is reluctant to pressurize the Myanmar, China is actively mediating between
Bangladesh and Myanmar. This undermines India’s leadership role in South Asia.

• Security of North-East- India is also concerned about the links between Arakan Army and the Naga self-
administered zone operated by NSCN (K) group.
Way forward
• Diplomatic Solution- New Delhi should use creative diplomacy to persuade Myanmar to resolve the Rohingya
crisis as a stable and democratic Myanmar will naturally gravitate towards New Delhi.
• National security: India has the right to prioritize its national security. However, security concerns need to
be balanced by constitutional values and Human Rights of refugees.
• Domestic Refugee Policy- India needs to enact a domestic refugee policy legislation to bring clarity on India’s
stance as The Foreigners Act, 1946, fails to address the peculiar problems faced by refugees
RISING CHINESE FOOTPRINT IN MYANMAR
• Economic- China is the largest trading partner of Myanmar. The bilateral trade stands at about USD 12
billion in 2019 that roughly
amounts to 1/3rd of the total
trade of Myanmar.
• Connectivity- Myanmar is part
of OBOR project. China has also
proposed China-Myanmar
Economic Corridor (CMEC) as
part of BRI project.
• Energy- China constructed a
natural gas and oil pipeline
running in parallel which starts
from Kyaukphyu City in
Myanmar’s Rakhine State to
China’s Yunan region
constructed at a combined cost
of USD 4.5 billion.
• Defence- China has been one of
the largest military suppliers of Myanmar since 1988. According to SIPRI database Myanmar spent USD 1.3
billion in arms from the Chinese between 2010- 2019.

• Investment- China has been one of the

largest sources of FDI (Foreign Direct
Investment) for Myanmar which reached
USD 21 billion as of March 2020. In 2020,
China and Myanmar signed many projects
under the Belt and Road Initiative. One of
the major projects was the development of
a deep sea port at Kyaukphyu for USD 1.3
billion.
Concerns for India
• Strategic Containment- The
Kyaukphyu port, along with Gwadar port
gives China the benefit of strategically
containing India and blocking its access both
to the west and the east.
• Security of North East- China’s presence in
the Myanmar can fuel the insurgency in
North Eastern states of India. According to
intelligence reports, many insurgent groups
gets funds and arms support from China.
• Debt trap diplomacy by China can force
Myanmar to surrender strategic assets like
ports to China.
• Domestic Instability in Myanmar- Some
strategic experts believe Chinese hand
behind recent coup in Myanmar to prevent
it from joining the USA.
• Connectivity- Myanmar is India’s gateway to
ASEAN and India is involved in major
connectivity projects like Kaladan transport
corridor, IMT trilateral highway, Mekong
Ganga cooperation etc. These projects can
be jeopardized due to increased Chinese
influence in Myanmar.
• Weakening of ASEAN- Authoritarian rule in Myanmar can intensify fissures in ASEAN and can weaken its unity
and capability to deal with China.
Way forward
• Leveraging civilizational linkages through programmes like ‘Buddhist Circuit’ etc and increasing people to
people contact.
• Improving connectivity- Early completion of projects like kaladan multi-model transport corridor, India-
Myanmar-Thailand trilateral highway etc is needed.
• Cooperation at Multilateral Forums such as ASEAN and BIMSTEC on issues of mutual interests can strengthen
the relationship between the two countries.
• Developmental Assistance- India needs to make a more effective contribution to Myanmar’s development
and security by quickly completing infrastructure projects in Myanmar and strengthening the commercial
partnership that is in tune with India’s own capabilities and strengths.
• Working with like-minded countries like Japan which has a growing economic presence and similar interests
in Myanmar. Thus, India’s Act East Policy and Japan’s Free and Open Indo-Pacific Strategy can complement
each other.

INDIA AND BHUTAN

Introduction
• India and Bhutan are termed as all-weather friends because of similar geography and cultural aspects.
• Indian PM after assuming the office in 2019 visited Bhutan for its first bilateral meeting. It indicates the
significance of Bhutan in India’s foreign relations guided by Neighbourhood First Policy.
• Bhutan is the most trusted neighbour of India. The recent Doklam episode showcases the great cooperation
between the nations in dealing with Chinese aggression.
• India has always respected its unique culture and sovereignty. In return Bhutan has always considered Indian
concerns and remained away from china.
Historical Ties
• Historically both nations share strong cultural ties which flourished mainly during Tibetan Guru
Padmasambhava who introduced Tantric Buddhism to Tibet in the 8th century.
• 1947 : Bhutan was among the first countries who recognized India’s independence.
• India has supported Bhutan’s entry in the United Nations.
• 1972 : India and Bhutan trade and commerce agreement established free trade and commerce between
them.
• Post-independence both the nations established embassies in 1978 however India Bhutan Treaty of
Friendship and Cooperation 1949 forms the basis of relation between these neighbours. This treaty was
revised in 2007 which shows continuous evolution of relations between them.
Reasons Behind revision of Friendship Treaty :
• New Democracy : The treaty had been updated as Bhutan was transcending in democratic system by
unveiling its new Constitution.
• Sovereignty Aspect : There was growing demand from Bhutan to have more autonomy in managing its
external affairs. India respected its demands and needs of new democracy.
• To enhance Bhutan's sovereignty by removing the need to take India's guidance on foreign policy
• To further strengthen their bilateral and mutually beneficial relationship.
• To provide close cooperation on national issues , cultural and economic fields.
Revised provisions of 2007 friendship treaty :

• It adopted an element of equality doing away from India’s big brother approach.
• Independent Foreign Policy : Article 2 and 4 of the revised treaty enabled Bhutan to conduct its foreign policy
more independently at the same time keeping India's security interests in mind.
• Procurement of weapons : Article 4 would allow Bhutan to import military equipment from other countries
without India's consent.
• Security concern : Both nations are obliged to prevent harmful activities within their territory concerning
national security and interest of others.
Cooperation And Significance Of Bhutan :

Political :
1. Democratic Principles: Through support of India, Bhutan has been a successful democracy since 2007
believing in common democratic principles.
2. International Support :Bhutan was among the first nations who supported India’s Nuclear Test.
a. India has always got its support in the United Nation platform.
Multilateral Partnerships :
• Both countries share multilateral organizations like ;
o SAARC (South Asian Association For Regional Cooperation).
o BIMSTEC (The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation).

o BBIN.(The Bangladesh, Bhutan, India, Nepal Initiative)

Economic :
• Trade :India is Bhutan's largest export market, the biggest source of its imports.
• Investment : Transition of Bhutan into a middle income country presents India an opportunity to invest in
Bhutan.
• Financial Aid :India has been financing its Five Year plans and has also provided 4500 crore aid for its Current
Five Year Plan.
• Hydropower : India has been developing infrastructure Border road and hydropower projects in Bhutan.
o e.g. recently inaugurated Mangdechhu Hydroelectric Plant.
• Free Trade Regime and Duty Free Transit have boosted trade relations, having India as the largest trading
partner of Bhutan.
Geographic and Strategic Importance :

• Buffer State : Bhutan shares a strategic position in Indian subcontinent. It acts as a buffer state between
India and China. The chumbi valley is situated at the trijunction of Bhutan India and China and it is just 500
km from the chicken neck corridor of India.
• The Doklam Plateau of Bhutan gives strategic military advantage against China near Chumby valley.
• Data sharing : Many Indian rivers are coming from Bhutan hence data sharing related to flood forecast forms
importance.
Internal security :
• In the past both countries have cooperated well in dealing with United Liberation Front Of Assam(ULFA) and
National Democratic Front Of Bodoland(NDFB) based in Bhutan.
• Provisions in the revised Friendship Treaty of 2007 have further strengthened the cooperation on this front.
Flood Management :
1. A Joint Group Of Experts on Flood Management has been formed to discuss the reasons behind frequent
floods and erosion of foothills adjoining India.
2. It would also share the data of water level and data required for flood forecast.
Cultural :
• Both the countries share unique cultural ties. Impact of Hinduism and Buddhism is clearly visible in their way
of life . This has ensured healthy people to people ties and cultural synergy.
Roadblocks in cooperation :
• External debt: India is Bhutan’s largest trade partner having favourable balance of payment which has
created problems for Bhutan. Its external debt has become more than 100% of its GDP.
• Delays in hydropower projects : by Indian companies have led to Bhutan's rising national debt.
• Both countries have agreed to jointly develop 10000 MWs of hydropower generating capacity in Bhutan.
India is failing to develop projects in expected time.
• Electricity Tariff :Hydropower forms a major source for Bhutan hence they are asking to increase electricity
tariff. India's power surplus status and enhancing renewable energies like wind and solar power pose a
challenge for Bhutan to ensure its hydropower sector in profit.
• Indian Intervention : Government’s decision to cut cooking gas subsidy just before the 2013 elections in
Bhutan indicating India's interference. The Sovereignty issues raised because of episodes like Project Dantak
have raised local concerns regarding preserving their autonomy. It has created negative perception
regarding India’s intrusion in domestic affairs.
• BBIN :Bhutan did not join the BBIN Motor Vehicle Agreement considering its adverse impact on the
environment and climate.
• Internal Security : Insurgent groups situated in the south east forest of Bhutan have become an issue of
concern for them.

• Chinese Concern :Chinese attempts to establish diplomatic ties with Bhutan and extending its BRI project to
Bhutan has become cause for concern for India.
Future scope of cooperation

Polity :
• Respecting Autonomy :Considering Indian independent democracy India must stay away from its domestic
issues and should provide a message of non-interference thereby gaining grass root goodwill.
• Inter parliamentary cooperation and cooperation at institutional level like Election Commission to
strengthen Bhutanese democracy.
• Foreign Policy Role: Bhutan has been pivotal to two of India's major foreign policies - the "Neighbourhood
First Policy" and the "Act-East Policy".
Defence :
• Military and Air Force exercises can be increased to prepare for situations like Doklam Standoff.
• Also it will help in dealing with anti-national elements which are a threat to internal security.
Economy :
• Trade relations : Trade diversification and enhancing the export basket of Bhutan is required to decrease its
external debt.
• Tourism : Exploiting opportunities in tourism especially in the cultural sphere.
• Currency Swap: India is taking steps in increasing the currency swap limit under the SAARC currency swap
framework.
• Balance of Payment : Steps should be taken in decreasing the negative balance of payment for Bhutan by
diversifying its export basket by helping them in the manufacturing and service sector.
Foreign Aid :
• Bhutan receives the largest aid from India however it has decreased from the last two years.
• It is advisable for India to maintain its aid considering growing Chinese influence.
Hydropower :
• India must fulfil its promise of development of 10000MW of hydropower and import of surplus power from
Bhutan.
Educational and Industrial Sector :
• Knowledge sharing : Both countries have interconnected India’s National Knowledge Network and Bhutan’s
Research and education network. This would facilitate sharing of knowledge between universities and
students.
• India Bhutan Foundation : It was established in 2003 aimed to increase people to people ties and sharing
culture, education and scientific research.
• Skilling and Scholarship : Both must formulate a framework to skilling Bhutanese youth and scholarship can
be provided to them.
• Industrial connection with Bhutanese Universities would increase employability and entrepreneurship of
their students.
Bhutanese values:
• India must respect and adopt distinct Bhutanese values and their way of life.
• India can learn environmental governance and also can borrow happiness by learning lessons from
Bhutanese way of life.
Countering China :
• Boundary disputes : Bhutan knows the importance of India and Chinese aggressive policy over land disputes.
• Engaging in border management and defence cooperation can create strong resistance against Chinese
aggression.

Is Bhutan Moving away from India ?

• Enhanced engagement with China: Above issues have helped Bhutan to leverage its position to enhance its
engagement with China.
• Ties with Bhutan: China is in process to create diplomatic ties with Bhutan which Bhutan has not yet
accepted.
• Bhutan’s balancing act: Bhutan had adopted the balancing act when it comes to India-China matters. Even
during the 2017 Doklam crisis, Bhutan was careful in its approach so that they don’t upset China otherwise
it could complicate Bhutan’s own border resolution matters with China.
• Dissatisfaction from India and anticipating backlash from China for siding with India on the current border
conflict, Bhutan is delicately drifting from India.
How India is revamping its relations with Bhutan now ?
• India is likely to approve Bhutan’s request for a new land custom station and opening another integrated
check post(ICP).
• India has expedited its efforts to build railway connectivity with Bhutan to increase connectivity and hence,
promoting trade.
ISSUES IN NEWS :
Recently India and Bhutan have signed two MoU :

1.MoU on peaceful uses of outer space.
2.MoU on environment, natural resources.
MoU on peaceful uses of outer space:
• The Union Cabinet of India in November 2020 approved the Memorandum of Understanding between India
and Bhutan on cooperation in the peaceful uses of outer space.
• Areas Of Cooperation : This MoU shall enable India and Bhutan to cooperate in potential interest areas, like
- remote sensing of the earth, satellite communication and satellite based navigation, Space science and
planetary exploration, use of spacecraft and space systems and ground system, application of space
technology.
• Formation of Joint Working Group : The MoU would set up a Joint Working Group , having members from
DOS/ISRO and the Ministry of Information and Communications (MoIC) of Bhutan, which will formulate the
plan of action including the time-frame and the means of implementation.
Implications of this MoU
• This MoU would enable ISRO/DOS to share its expertise and Bhutan would be benefited with a range of
applications from Broadcast services to disaster management.
• It will help Bhutan to venture into the Space industry with Indian help.
• On the background of Chinese aggression this step would further strengthen the relations between them.
• It can facilitate Indian investment in Bhutan and help to create new employment opportunities in Bhutan.
MoU between India and Bhutan on environment , natural resources :

Background :
• Earlier a Memorandum of Understanding (MoU) was signed between India and Bhutan in 2013 which expired
in 2016. Considering the benefits of the earlier MoU, both sides decided to continue cooperation and
collaboration in the field of Environment.
Purpose Of MoU :
• The Memorandum of Understanding envisaged to establish and promote closer and long-term cooperation
between the two countries in the field of :

o Environment protection and management of natural resources on the basis of equity, reciprocity
and mutual benefits.
o It takes into consideration applicable laws and legal provisions in each country.
• Areas Of Cooperation : Memorandum of Understanding covers the following areas of environment: Air ,
Waste , Chemical Management , Climate change .
• Public and private Stakeholders : The MoU intends to encourage organizations, private companies,
government institutions at all levels and research institutions on both sides aimed at fulfilling the objectives
of the Memorandum of Understanding.
• Formation of Joint Working Group :A Joint Working Group would be formed to review and analyze the
progress of activities and track the progress and achievements.
Implications:
• Best practices: The Memorandum of Understanding would facilitate exchange of experiences, best practices
and technical knowhow through both public and private sectors and shall contribute to sustainable
development.
• Lessons from Bhutan: India can take lessons from the Bhutanese value system based on environment
conservation and its importance in happy human life.
Doklam Issue :
What is the Issue :
• Chinese transgression : Indian troops along with Bhutanese army obstructed chinese attempts to build road
infrastructure in Doklam region which is disputed territory between China and Bhutan.
• Standoff : This escalated to a standoff between two armies for two month in summer 2017.
Geographical location and importance to India :
• Strategic Location: It is surrounded by Chumby Valley of
Tibet , Bhutan’s ha Valley and Sikkim. Being very close to
India's chicken neck corridor which connects mainland
India with its north eastern region hence it is strategically
important for India.
• Doklam being a plateau provides strategic advantage of
higher altitude compared to Chumby valley. Hence it is
very strategic and required to be protected from Chinese
transgression.
• The Doklam region has been neglected in the recent past
however it gained significance when China started
increasing its troops in Chumby Valley. Indian and
Bhutanese army situated at Doklam plateau are in a militarily advantageous position.
Immediate cause:
• Road Infrastructure: The issue surfaced when China (People's Liberation Army) started construction of roads
in this region and India Army along with Royal Bhutanese Army objected Chinese developments.
• Chinese Aggression: China considered India's presence at Doklam as a transgression. So, China responded
by destroying two Indian Bunkers and She closed the route to kailash-Mansarovar via NathuLa pass.
• Escalation: These developments escalated to a two-month standoff between China and India in summer
2017which eventually solved through high level negotiations.
Chinese interest in the region:
• Interest in Bhutan: China aims to establish formal diplomatic ties with Bhutan for that reason by pressurising
it through escalating boundary disputes.
• Logistics : The Road Construction project of China has many benefits for military logistics.
• Regional development : China wants to develop its Yudong region by increasing connectivity to Lhasa.
• Military Benefits : Control over Doklam will strengthen the position of China against India in military warfare.

Impact on India-china relation :

• It has increased the tension between India and china.
• Boundary disputes : Already unsettled Eastern sector boundary disputes have further complicated due to
the Doklam issue.
• Closeness with China : Some factions in Bhutan are demanding closeness with china. India can't afford
Chinese closeness to Bhutan.
• Budgetary allocation : Such Standoff compels India to divert more budgetary allocation for military
modernisation.
• QUAD : These aggressive acts enhance the closeness of India towards the USA and strengthens the base for
consolidation of QUAD against Chinese aggressive acts.
Way Forward :
• Chinese belief in the theory of ‘subdued neighbourhood’ for stability manifests itself in Doklam Standoff.
• India should enhance its economic ties with China which could create pressure to settle boundary disputes.
• India must maintain cordial relations with Bhutan.
New Bhutanese territory claimed by China

What's the Issue:
1. GEF Funding: In June 2020 China attempted to stop UNDP-GEF funding for Sakteng Sanctuary situated on
easter border of Bhutan.
2. Boundary disputes : China claimed that the sanctuary is located in the disputed areas of China-Bhutan which
has never been delimited.
Developments in the past :
• No diplomatic Ties : Bhutan and China do not have formal diplomatic relations however 24 rounds of
boundary talk have been held between two countries till 2016.
• Disputed Areas : These talks mainly concentrated on Northern (Pasamlung and Jakarlung) and Western
(Doklam) boundary disputes of Bhutan without any mention of Eastern boundary disputes.
Response From Bhutan :
• Bhutan has rejected the Chinese claim and responded that Sakteng Wildlife Sanctuary is an integral and
sovereign part of Bhutan.
• According to Bhutanese experts, the claim on Sakteng will open new fronts of negotiation when the next
round of boundary talks are held.
Indian Interest :
• China’s new claim on eastern part of Bhutan is guided by its ‘subdued Neighbourhood’ policy.
• Pressurising Neighbours : Hence pressurising those countries who are distant from China and having cordial
relations with India.
• It might be intended to divert India's attention from Ladakh to eastern boundary sector.
• Eastern Sakteng is situated along the boundary of Arunachal Pradesh which China claims to be part of its
Tibet region hence such claim could further complicate the boundary disputes issues.
Lessons For India :
• India-Bhutan Friendship Treaty of 2007, : It compels India to protect Bhutan from any external aggression.
• Securing Neighbourhood : Chinese increasing pressure on Bhutan increases India's responsibility towards
Bhutanese protection and takes steps towards settling boundary disputes with China through negotiations
and safeguards interests of his cordial neighbours.
• China’s aggression : It would help India-Bhutan to further strengthen their relations to safeguard their
border and solve their economic and political issues as well.
Way Forward :

• India-Bhutan relationship is perhaps the only bilateral engagement in South Asia which has stood the test of
time.
• Global relations influenced by COVID 19 pandemic , Protectionism , Trade war directs our foreign policy to
remain adhere to our neighbourhood first policy and Bhutan is a crucial player in development of the north
east region.
• Bringing innovative approaches to solve issues related to hydropower is required.
• Bhutan is a crucial player in dealing with Chinese aggression near Chumbi valley.
• India should transform from its earlier big brother approach to mentor when required and widen its
engagement on multiple facets like sports , yoga , Bollywood etc.
INDIA-SRILANKA

PYQ
1. In respect of India —Sri Lanka relations, discuss how domestic factors influence foreign policy. (2013)
INTRODUCTION
• India and Sri Lanka have a legacy of intellectual, cultural, religious and linguistic interaction and the
relationship between two countries is more than 2500 years old.
OVERVIEW OF RELATIONS
ECONOMIC-
• Largest trading partner: Sri Lanka is India’s largest trading partner in SAARC. Both countries signed a Free
Trade Agreement in March 2000. According to Sri Lankan Customs, bilateral trade during January –
November 2019 amounted to USD 4.19 billion.
• Currency swap: Recently, The Reserve Bank of India (RBI) has signed an agreement for extending a $400-
million currency swap facility to Sri Lanka to boost the foreign reserves and ensure financial stability post
COVID-19.
POLITICAL-
• High-level exchanges: Political relations between the two countries have been marked by high-level
exchanges of visits at regular intervals.
• ‘India first’ policy: Sri Lankan President during his first foreign visit to India highlighted ‘India first’ policy of
Sri Lanka and held that, ‘while China is friend, India is Relative.’
GEOSTRATEGIC SIGNIFICANCE OF Sri Lanka
• It is located on important sea lines of communications in Indian ocean from where 90% of India’s trade is
carried out.
• Sri Lanka has also made it clear that its strategic security policy will have ‘India first’ approach though it will
also cooperate with other partners for economic development. PM of Sri Lanka called India as a relative and
China as a friend thus highlighting importance of India.
Defence and security cooperation
• Military exercise: India and Sri Lanka conduct annual joint Military exercise ‘Mitra Shakti’ and Naval exercise
SLINEX. India also provides defense training to Sri Lankan forces.
• Maritime security: India, Sri Lanka and the Maldives have signed a trilateral maritime security cooperation
agreement to improve surveillance, anti-piracy operations and reducing maritime pollution in Indian Ocean
Region.
• In 2019, India and Sri Lanka also concluded agreement on countering Drug and Human trafficking.
Developmental Assistance-
• Sri Lanka is an important pillar of Neighbourhood First Policy and vibrant democracy like India.
• India has provided rehabilitation and relief assistance for internally displaced Tamils. India has constructed
30000 houses and other medical facility infrastructure.
• The Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) have concluded the USD 400 million
currency swap agreement under the SAARC currency swap framework.
• Exim Bank has so far extended nine LOC to Sri Lanka including the latest one taking the total value to $1.68
billion.
Cultural and Educational Cooperation
• India and Sri Lanka have a legacy of intellectual, cultural, religious and linguistic interaction and the
relationship between two countries is more than 2500 years old.
• India and Sri Lanka signed a cultural cooperation agreement back in 1977. India cultural centre in Colombo
promotes Indian culture by providing courses in Indian music, dance, yoga etc.,
• India provides scholarships to qualified Sri Lankan students in Undergraduate and research studies.
• Sri Lanka is also a partner in Nalanda university project of India

TAMIL QUESTION-
What is the issue?
• Religious and linguistic discrimination by Sinhala speaking Buddhist majority. Tamil has not given status of
official language and primacy is given to Buddhism in employment and education.
• Denial of Citizenship- The majority of the Tamils were denied citizenship. Thus, most of the Tamils continued
to live in poverty in the tea estates of Sri-lanka.
• Civil war and Human Rights abuses- The UN estimates that 40,000 civilians alone died in the five months
before the civil war between LTTE and Sri Lankan government ended in May 2009.
ROLE OF INDIA-
• Indi-Sri Lanka peace accord, 1987- Under the accord Sri Lanka government agreed to enact 13th Amendment
which provided for devolution of powers to provinces and recognition of Tamil as official language.
• Indian Peacekeeping Mission – As per
terms of the peace accord, the LTTE
initially agreed to surrender their arms to
IPKF but later refused to surrender. The
IPKF found itself in bloody police action
against the LTTE and the mission failed.
• UN resolution: In March 2012, the
United Nations passed a resolution
urging Sri Lanka to investigate alleged
abuses during the final phase of war with
Tamil rebels. India voted against Sri
Lanka, under pressure from parties from
south India.
• India in March 2021 abstained from voting in the United Nation Human Rights Council on a resolution sought
to fix responsibility for war crimes and human rights violations against Tamils by Sri Lankan authorities in the
final days of the Eelam War IV.
• 20th Amendment: The new government in Sri Lanka has brought the 20th Amendment which dilutes the
13th amendment. Other provisions of Indo-Sri Lanka Accord of 1987 such as provincial Autonomy and
recognition of Tamil language are also not met.
• However, in recent times, salience of Tamil Question is declining in India-Sri Lanka relations as well as in
Tamil Nadu politics.
CHINA FACTOR
• Sri Lanka scrapped its $500 million agreement with India and Japan to develop the East Container Terminal
(ECT) project at Colombo port due to protest by trade unions.
• It handed over a $12 million energy project to a Chinese firm for the joint development of three renewable
power plants in islands off the Jaffna peninsula, about 50 km away from the Tamil Nadu coast. India has
registered strong protest over this project.
FISHERMAN ISSUE
• The key conflict lies with respect to Katchatheevu island. The island was ceded to Sri Lanka in 1974. The
agreement allows Indian fishermen access to Katchatheevu for rest, for drying of nests but it did not ensure
the traditional fishing rights.
• After the end of civil war in 2009, arrests and attacks increased on Indian fishermen when they enter Lankan
waters because of depletion of marine resources on the Indian side.
• Sri Lanka also protests against use of big trawlers by Indian fishermen.
• Boundary demarcation: Though both countries have demarcated the International Maritime Boundary Line
(IMBL) yet fishermen from both sides cross the line unknowingly.

o Recently, the recovery of bodies washed ashore in Sri Lanka has triggered protests in Tamil Nadu as
they are believed to be of the four fishermen reported missing from the state.
• Both countries have established the Joint Working Group mechanism to find the permanent solution to the
issue. Also, MoU was signed between India and Sri Lanka to provide nets and other necessary equipment to
fisherman.
NEW CONSTITUTION OF SRILANKA
• The Sri Lanka government has introduced the 20th Amendment to undo changes brought by the 19th
Amendment which reduced Powers of the president.
• The 20th Amendment seeks to establish the Executive Presidency and reduce powers of the PM and
Parliament.
• These changes can strengthen Sinhalese nationalist sentiments and can further dilute the 13th Amendment.
This is a cause of concern for India.
ECONOMY AND DEBT
● Debt to GDP ratio of Sri Lanka is 80% of which China and ADB own 14%.
● Leasing of port: Recently, Sri Lanka leased Hambantota Port to China for 99 years. India is apprehensive that
the port is part of ‘String of pearls’ policy of China aimed at containing India.
● It will also give China control of port just few hundred miles from India and possible military presence in the
future.
● Trade Balance in favour of India: Exports from India to Sri Lanka in 2018 were US$ 4.16billion, while exports
from Sri Lanka to India are US$ 767 million. Sri Lanka wants to reduce this imbalance and wants greater
access to Indian markets
WAY FORWARD
● CONNECTIVITY- Economic integration through development of connectivity via Palk strait bridge.
● Economic integration roadmap(EIRM)- It is based on Sub Regionalism and aims to connect 5 southern states
of India with Sri Lanka to tap a total of 300 million population and $500 billion GDP.
● India can also work with other countries like Japan, Australia for infrastructure and connectivity development
in Sri Lanka and leveraging Blue Economy.

INDIA - VIETNAM
Introduction:
The traditionally close and cordial relations between India and Vietnam have their historical roots in the common
struggle for liberation from foreign rule and the national struggle for independence. In recent times, economic and
strategic complementaries and common threat of China have strengthened economic, defence as well as political
relations.
WHY IN NEWS?
● India, Vietnam signed seven agreements during the virtual summit in December 2020. Agreements signed
are in areas such as defence, scientific research, renewable energy, nuclear energy, Petro-chemicals, and
cancer treatment.
OUTCOME OF SUMMIT-
● STRATEGIC COOPERATION- Both countries welcomed the signing of a Plan of Action for period 2021-2023
for further implementation of Comprehensive Strategic Partnership in order to strengthen their bilateral
partnership with a clear agenda for the next two years.
● JOINT VISION DOCUMENT and a Plan of Action for our bilateral engagement from 2021 to 2023 to strengthen
strategic partnership.
● DEFENCE COOPERATION- India extended $100 million Defence Line of Credit. Both countries also agreed for
implementation of the High-Speed Guard Boat Manufacturing Project for Vietnam under the $100 million
Defence Line of Credit. VINBAX is the military exercise between armies of India and Vietnam.
● NUCLEAR ENERGY COOPERATION- MOU to promote mutual cooperation between the regulatory bodies of
the two countries in the fields of radiation protection and nuclear safety.
● GLOBAL COOPERATION- Vietnam reiterated its strong support for India’s permanent membership in an
expanded UNSC. Both countries also agreed to work closely to actively promote reformed multilateralism to
make international organisations, including the UNSC, more representative, contemporary and capable of
dealing with current challenges.
IMPORTANCE OF VIETNAM-
● ACT EAST POLICY- India sees Vietnam as a pivotal state in its "Act East" policy, the same way that China sees
Pakistan as a strategic counter-balance to India.
● RELATIONSHIP WITH ASEAN- India’s growing ties with ASEAN (Associations of South-East Asian Nations)
countries to counter Chinese aggression in the South China Sea is a strategic necessity.
● CHINESE AGGRESSION- India is locked in a military standoff with China in the Ladakh sector of the Line of
Actual Control (LAC) while Vietnam has major differences over Chinese claims within its exclusive economic
zone in the South China Sea.
● MARITIME SECURITY-India and Vietnam held their second maritime security dialogue in a virtual format in
April 2021.
● CO-OPERATION IN UN- India and Vietnam could work closely to actively promote reformed multilateralism
to make international organisations, including the UNSC, more representative.
● STRATEGIC PARTNERSHIP- countries have elevated their partnership to ‘Comprehensive Strategic
Partnership’. The joint vision document highlighted how a strengthened defence and security collaboration
between India and Vietnam could be “an important factor of stability in the Indo-Pacific region.” Both
countries also agreed to augment military-to-military exchanges, training, and capacity building
engagements between the two militaries including the coast guard.
● ENERGY SECURITY: Vietnam has rich hydrocarbon reserves. ONGC videsh is involved in exploration in
Vietnam.
● INDIA’S DEVELOPMENTAL ASSISTANCE- During the summit, India handed over seven Development Projects
with Indian ‘Grant-in-Aid’ Assistance of US$ 1.5 million for the benefit of local community in Vietnam’s Ninh
Thuan province. Both countries also agreed to enhance the number of annual Quick Impact Projects (QIPs)
from currently five to ten commencing FY 2021-2022.

● CULTURAL COOPERATION- India-Vietnam launched three new Development Partnership projects in heritage
conservation in Vietnam and bilateral project for preparing an Encyclopedia on India – Vietnam Civilizational
and Cultural Relations.
ISSUES
● GEOECONOMIC- Vietnam is competing with India in attracting manufacturing companies leaving China from
sectors such as textile, automobile etc.
● CONNECTIVITY- Various connectivity projects launched by India are languishing for a long.
● LACK OF SUSTAINABLE DIPLOMATIC OUTREACH- Projects such as Mekong Ganga Cooperation suffer from
apathy from the government.
● OPPOSITION TO QUAD- Vietnam has been non-committal in backing QUAD grouping saying that it is opposed
to formation of any kind of military alliance.
● DEFENCE TIES- India and Vietnam are negotiating transfer of Brahmos Missiles to Vietnam. However, the
deal could not be materialised due to various issues like funding, CAATSA and China.
WAY FORWARD-
● Converting geostrategic convergence into geo-economic cooperation by cooperating in sectors such as
Nuclear energy, defence manufacturing etc. Both Countries also need to leverage the economic
opportunities available because of anti-China sentiments and several manufacturing firms deciding to shift
from China.
● Improving connectivity by extending IMT highway upto Laos and Vietnam and completing it time.
● Focus on Sub-Regionalism- India and Vietnam can jointly explore the potential for enhancing capacit y
building and providing technical assistance and training within the new emerging sub -regional
grouping of Cambodia-Laos-Vietnam growth triangle.
Conclusion
Vietnam is an important pillar of ‘Act East Policy’ and the close relationship between the two countries is significant
for the maintenance of strategic balance in South East Asia which is witnessing aggressive Chinese activities.
INDIA – INDONESIA
WHY IN NEWS?
● Defence Ministers’ Dialogue between India and Republic of Indonesia was held in July 2020.It is in
consonance with the Comprehensive Strategic Partnership between the two sides.
AREAS OF COOPERATION-
● DEFENCE COOPERATION- Potential areas of cooperation in the field of defence industries and defence
technology were also identified by the two countries. The issue of possible export of BrahMos cruise missile
to Indonesia by India are also under discussion.
o JOINT EXERCISE- Exercise Samudra Shakti the bilateral maritime exercise. Garuda Shakti is the joint
military exercise.
● STRATEGIC CONVERGENCE in context of rising unilateralism by China in South Asia and in the South China
Sea. In 2018, during Modi’s visit to Indonesia, both countries agreed on ways to boost cooperation within
their comprehensive strategic partnership.
o They agreed mainly on six broad areas including trade; sustainable development of marine
resources; disaster risk management; tourism; maritime safety and security; and science and
technology cooperation.
● MARITIME SECURITY- Together, they control the entry point from the Bay of Bengal in the Indian Ocean to
the Strait of Malacca which are strategically important sea lines of communications.
o Indonesia’s Global Maritime Fulcrum and India’s strategic vision of SAGAR (Security and Growth for
all in the Region) are complementary in nature. Both countries have also signed naval logistical
agreements with various Indian Ocean countries.
o In May 2018, India and Indonesia announced “Shared Vision of India-Indonesia Maritime
Cooperation in the Indo-Pacific.” The Shared Vision articulated common goals to improve maritime

connectivity between the Andaman and Nicobar Islands and Sumatra, as well as developing the
marine resources of both countries.
● TRADE-Indonesia has emerged as the second largest trading partner of India in the ASEAN region. Bilateral
trade has increased from USD 4.3 billion in 2005-06 to USD 21 billion in 2018-19. India is the second largest
buyer of coal and crude palm oil from Indonesia and imports minerals, rubber, pulp and paper and
hydrocarbons reserves.
● Terrorism- India and Indonesia are stressing the importance of existing counter-terror mechanisms and
strengthening intelligence cooperation systems amid rising violence and spread of radical ideologies. New
Delhi and Jakarta have also put in place an arrangement of Mutual Legal Assistance Treaty and instrument
of extradition to deal with terror operatives who are a threat to both countries.
● CONNECTIVITY- The Sabang port is being developed in partnership with neighbour and strategic partner
Indonesia. It is close to Malacca strait.
● Global forums: Both countries are members of G20, the Non-Aligned Movement (NAM), East Asia
Summit and the United Nations.
Conclusion
● India and Indonesia’s regional ambitions, growing maritime orientations, and apprehensions over China’s
rise demonstrate that they are well positioned to develop a broad-based partnership.
INDIA – MAURITIUS
WHY IN NEWS?
● External Affairs Minister S. Jaishankar’s visit to Mauritius on February 22-23, 2021 strengthens India’s
partnership with the key Indian Ocean island country across the economic, health and security spheres.
INDIA – MAURITIUS RELATIONS-

● INDIAN OCEAN REGION- Mauritius is an important partner among the Indian Ocean littoral countries in the
African region. Both countries are part of Indian Ocean Rim Association (IORA) which is an inter-
governmental organisation aimed at strengthening regional cooperation and sustainable development
within the Indian Ocean region
● SHARED HISTORY- Almost 68 percent of the population of the country, including Prime Minister Pravind
Jugnauth, is of Indian origin.
● ECONOMIC- A watershed free trade pact, the ‘Comprehensive Economic Cooperation and Partnership
Agreement’ (CECPA), was signed during the EAM’s visit.
● DEFENCE AND SECURITY COOPERATION- During Jaishankar’s visit, India and Mauritius signed two
agreements related to the transfer of a Dornier aircraft and an Advanced Light Helicopter, Dhruv, on lease
to Mauritius.
● SAGAR VISION (Security and Growth for All)- This vision called for deepening economic and security
cooperation with India’s maritime neighbours.
● NET SECURITY PROVIDER- Close collaboration with island nations in south Indian ocean will strengthen
India’s role as Net security provider in Indian ocean region.
ISSUES-
● CHINA- Rising Chinese footprint in Indian Ocean region is threatening India’s dominance in Indian ocean.
India also lacks deep pockets like China. In January 2021, China’s Free Trade Agreement (FTA) with Mauritius
came into effect.
● NON TRADITIONAL THREATS like piracy, smuggling etc.
CECPA
● It is India’s first such agreement with an African country.
● It will cut or eliminate duties on majority of goods as well as liberalise norms to promote services trade. It
will cover trade in goods, rules of origin, trade in services, Technical Barriers to Trade like Sanitary and

Phytosanitary (SPS) measures, dispute settlement, movement of natural persons, telecom, financial services,
customs procedures and cooperation in other areas.
● It will provide preferential access to a number of items like surgical equipment, medicine, and textile products
that would cater to market requirements on both sides.
● India and Mauritius have also agreed to negotiate an Automatic Trigger Safeguard Mechanism (ATSM) for
some highly sensitive products within two years of the signing of the agreement. The mechanism is aimed to
provide protection in case of sudden import rise.
INDIA-THAILAND
WHY IN NEWS?
● The 30th edition of India-Thailand Coordinated Patrol (CORPAT) has been concluded in the Andaman Sea
close to the Strait of Malacca.
SIGNIFICANCE-
● As part of Government of India’s vision of SAGAR (Security And Growth for All in the Region), the Indian Navy
has been involved in assisting countries in the Indian Ocean Region with EEZ Surveillance, Humanitarian
Assistance and Disaster Relief (HADR), and other capacity building and capability-enhancement activities.
INDIA – MALDIVES
PYQ
1. Discuss the political developments in Maldives in the last two years. Should they be of any cause of
concern to India? (2013)
Introduction
● India was among the first to recognize Maldives after its independence in 1965 and to establish diplomatic
relations with the country. India’s prompt assistance during the 1988 coup attempt under ‘Operation
Cactus’, led to development of trust and long‐term and friendly bilateral relations with the Maldives.
Overview of the relationship
• Economic- India and Maldives signed a trade agreement in 1981. India is Maldives’ 4th largest trade partner.
India‐Maldives bilateral trade now stands at US$ 290.27 million with trade balance in favor of India.
• Defence: India provides the largest number of training opportunities for Maldivian National Defence Force
(MNDF), meeting around 70% of their defence training requirements. A comprehensive Action Plan for Defence
was also signed in April 2016 to consolidate defence partnership.
• Key projects in the defence sector include Composite Training Centre for MNDF, Coastal Radar Surveillance
System and construction of new Ministry of Defence Headquarters.
• Disaster management: GoI had provided large‐scale assistance to Maldives in the aftermath of the 2004 Indian
Ocean tsunami and during the 2014 Male water crisis. India has also offered customized training for MNDF Fire
and Rescue Service in India.
• Developmental cooperation: The major completed and ongoing development assistance projects executed by
India include Indira Gandhi Memorial Hospital, Maldives Institute of Technical Education, National College for
Policing and Law Enforcement (NCPLE) etc.
▪ Connectivity project: India has also provided US $500 million assistance for the Greater Male
Connectivity project (GMCP), the largest civilian infrastructure project in Maldives, to connect Male
to three neighboring islands.
▪ Currency Swap: A Bilateral US Dollar Currency Swap Agreement of $400 million was signed between
RBI and Maldives Monetary Authority (MMA) in 2019.

Covid related assistance

• Covid related assistance: A 14-member Rapid Response Medical team was deployed in Maldives in March
2020 to guide and train the Maldivian authorities and personnel in tackling Corona threat.
• Operation Sanjeevani: As part of GoI's efforts to help friendly countries in tackling Covid‐19 threat,
a special IAF plane airlifted 6.2 tonnes of essential medical supplies from India to Maldives on 2 April
2020.
• A currency swap of USD 150 million was approved by RBI in April 2020 to help Maldives tide over
Covid‐19 inflicted economic crisis.
• Financial assistance: In order to assist Maldives in its economic recovery, India has provided a
financial assistance of US$ 250 million to Maldives in September 2020.
Significance of Maldives for India

• Radicalization: More than 200 Maldivian youths have joined the ISIS. Growing radicalization due to political
instability and socio-economic uncertainty can give opportunity for Pakistan to establish terror launch pads
in Maldives.
• Rising Chinese footprint: Maldives is an important part of China’s string of pearls strategy of Containing India.
China’s policy of Debt Trap Diplomacy can give it access to strategic real estate in Maldives
• Economic: The present level of commercial exchanges and trade between India and Maldives has almost
stagnated and is not commensurate with their potential. The economic impact of COVID on Maldives’
economy is severe and can push the country further in Debt Trap of China.
• Political Instability: India’s major concern has been the impact of political instability in the neighbourhood
on its security and development.
o Recently, the Yameen camp has launched an ‘India Out’ campaign against New Delhi’s
massive developmental funding and demanded the Solih administration to ‘stop selling national
assets to foreigners’, implying India.
Way forward
• ‘India First Policy’: The present government of Maldives has announced its ‘India First Policy’. India should
seize this opportunity to strengthen bilateral relationship.
• Strengthening defense partnership with special focus on Maritime security to cement India’s position as ‘Net
Security Provider’ in Indian Ocean.
• Timely completion: India must focus on timely completion of its infrastructure projects to offset Chinese
gains in the country. India can also work with countries like Japan to undertake connectivity projects.
• Diaspora: India should use its Diaspora more extensively and employ cultural aspects like films, music, and
people to people contacts to strengthen the relations.
conclusion
• The exemplary bilateral cooperation between India and Maldives could serve as a useful template for
developing our ties with other neighbours as part of India’s Neighbourhood First policy. India should continue
its developmental partnership with the island nation to further consolidate the relationship.

BILATERAL RELATIONS WITH MAJOR POWERS

Introduction:
• Let’s examine India’s relations with important major powers one by one comprehensively
INDIA – US
Introduction
▪ India-US relations have come a long way in the last 7decades. From being described as ‘estranged
democracies’ by Dennis Kux . to being described as ‘Natural Allies’ by Vajpayee.
▪ India-U.S. bilateral relations have developed into a "comprehensive global strategic partnership", based on
shared democratic values and increasing convergence of interests on bilateral, regional and global issues.
▪ Estranged democracies: US and India, though being the oldest democracy and largest democracy
respectively, remained detached during the cold war.
VIEWS-
▪ Harsh Pant- Reflexive anti-Americanism is no longer evident in Indian foreign policy.
▪ Amitabh Mattu- Indo-US relations are going through ‘wow phase’.
DIFFERENT ASPECTS OF INDO-US RELATIONS-

DEFENCE
• It is the ‘Brightest Spot ‘in Indo-us relations. The India-U.S. defence trade, which has grown significantly
in a short span of time, now stands at $21 billion
• The US is now India’s second largest arms provider and India conducts most joint exercises with USA.
• India and USA have signed 4 foundational agreements ( LEMOA ,BECA ,COMCASA,GSOMIA) to increase
cooperation and interoperability between militaries.
INDIA-US 4 FOUNDATIONAL AGREEMENTS
▪ General Security of Military Information Agreement (GSOMIA)
- Information exchange: ISA provides a framework for exchange and protection of classified military
information between U.S. and Indian defence industries.
- Intelligence sharing: It also helps in for greater intelligence sharing between India and US.
▪ Logistics Exchange Memorandum of Agreement (LEMOA)

- Access to military facilities: Under LEMOA both countries will get access to designated military
facilities on either side for the purpose of refueling and replenishment.
- Now, India can access the string of U.S. facilities across the globe for logistical support and the U.S.,
which operates in a big way in Asia-Pacific, will benefit from Indian facilities.
▪ Communications Compatibility and Security Agreement (COMCASA)

- Enhance interoperability: It allows both sides to operate on the same communication systems. It
will enhance interoperability between armed forces from both sides.
- Legal framework: It provides the legal framework for the US to part with its sensitive
communication equipment and codes to enable transfer of real time operational information.
- Encrypted communication: It allows India to procure transfer specialized equipment for encrypted
communications for US origin military platforms like the C-17, C-130 and P-8Is.

▪ Basic Exchange and Cooperation Agreement (BECA) for Geospatial Intelligence

- BECA will allow India and US militaries to share geospatial and satellite data with each other.
- High-quality GPS: BECA will provide Indian military systems with a high-quality GPS to navigate
missiles with real-time intelligence to precisely target the adversary.
- Navigational assistance: It will allow the US to provide advanced navigational assistance and avionics
on US-supplied aircraft to India.
- Real-time access: India will get real-time access to American geospatial intelligence that will
enhance the accuracy of automated systems and weapons like cruise missiles, ballistic missiles and
armed drones.
- Access to data: India will also get access to topographical and aeronautical data through the sharing
of information on maps and satellite images, this will be helpful in navigation and targeting.
o The Defence Technology and Trade initiative(DTTI) has transformed the traditional buyer seller relationship
to ‘co-production and co-development’.
o US has designated India as Major Defence Partner, a status unique to India. India has also received
clearance on purchasing licence free space and defence technology under Strategic Trade
Authorization-I.
o In National Security Strategy and National Defence Strategy, China has been identified as a key
adversary while India has assumed a key place to counterbalance China.
Trade Relations
o India’s trade relations with the USA is balanced. India enjoys a $19 billion trade surplus in 2020-21.
o Total trade between India-US was $88.9 billion in 2019-20. The US remained India's top trading partner for
the second consecutive fiscal in 2019-20
o Defence trade: Apart from Oil , India-US defence trade is also increasing in recent years.
o Indian service sector and especially the IT sector is hugely dependent on US markets.
o MORE ON INDO-US TRADE
o Total USD 46 billion US Investments in India; over 2,000 US companies are in India, including every
major Fortune 500 company and over 200 Indian companies created about 125,000 jobs in the
United States across all states.
o Trade deal: Both countries have set target of $500 billion trade and are also working on securing a
‘mini trade deal’ as talks on FTA are stalled.
ENERGY COOPERATION- US-India Strategic Energy Partnership

o Strategic energy partnership: India had elevated the India-US energy dialogue to a strategic energy
partnership (SEP) in February 2018
o It involves greater collaboration in cleaner energy sector- biofuels, CCUS, hydrogen production and carbon
sequestration through technology exchange, joint R&D through Partnership to Advance Clean Energy
Research (PACE-R)
o USA has become 2nd largest Oil supplier to India.
Strategic Partnership-
• Rise of China: India-US strategic partnership has been strengthened in context of Rise of China and its
aggressive behaviour in Indo-Pacific.
• QUAD: Both Countries have institutionalised 2+2 Ministerial Dialogue and also working to strengthen QUAD
with the aim to ensure peaceful, stable and rules based order in Indo-Pacific.
Quad:
• Indo-Pacific: USA’s Indo Pacific Strategy report categorizes India as ‘vital partner’ in the region.
• BLUE DOT NETWORK- To certify projects which are ‘ open and inclusive ,transparent , economically viable ,
financially, environmentally and socially sustainable and compliant with international standards , laws and
regulations.

• Strategic importance of Blue dot network: Blue Dot network is part of the US’s Indo-Pacific strategy, which
is aimed at countering Chinese President Xi Jinping’s ambitious BRI.
• Counter terrorism, Maritime security , cyber security are other important pillars of strategic partnership.
• During recent 2+2 ministerial dialogue key agreements on
o Technical Cooperation on Earth Sciences.
o Extending the arrangement on nuclear cooperation.
o Agreement on postal services.
o Cooperation in Ayurveda and cancer research
India as counterbalance to China-
• Balancing: The US views India as a geopolitical counterbalance, economic alternative and a democratic
contrast to China. And for India, the US is crucial to its China policy not just in terms of internal balancing and
capacity building, but also external balancing
• The declassified document of the Trump administration said a strong India, in cooperation with like-minded
countries, would act as a counterbalance to China in the Indo-Pacific region.
• Accelerate India’s rise: The USA’s objective is to accelerate India's rise and capacity to serve as a net provider
of security in the IOR region and major defence partner of the USA.
• There is Bipartisan Support for India’s rise. It will ensure USA’s policy continuity with respect to India.
Civil Nuclear Cooperation
• The bilateral civil nuclear cooperation agreement was finalized in July 2007 and signed in October 2008.
• The two sides have started the preparatory work on site in India for six AP 1000 reactors to be built by
Westinghouse. Once completed, the project would be among the largest of its kind.
• In 2020, India and the USA have extended their Memorandum of Understanding for cooperation on the
Global Centre for Nuclear Energy Partnership (GCNEP) by 10 years.
• The GCNEP, near Bahadurgarh in Haryana state, houses five schools to conduct research into advanced
nuclear energy systems, nuclear security, radiological safety, as well as applications for radioisotopes and
radiation technologies.
Cooperation at multilateral forums
• The U.S. has expressed support for India’s permanent membership on a reformed U.N. Security Council
and for India’s early membership in the Nuclear Suppliers Group.
Indo-US cooperation during COVID-

• Raw material for vaccine: The US has diverted its pending orders of vaccine filters to India’s vaccine
manufacturers and has also identified sources of specific raw material urgently required for Indian
manufacture of the vaccines. It will help India make more vaccines.
• COVID-19 test kits: It had sent C-5M Super Galaxy transport aircraft with oxygen cylinders, medical
equipment, and COVID-19 test kits to India.
• India’s demand for a waiver: The US President Biden has voiced his support for India’s demand for a waiver
on patent rights on COVID-19 vaccines under TRIPS.
India-US relationship under Biden

• US support for India’s rise: US Secretary of State Antony Blinken, during his visit to India called it “a
bipartisan success story of our successive administrations”, highlighting the US support for India’s rise.
• Continuity is expected: Considering the convergences between the countries, continuity is expected in
Biden’s policy towards India in strategic and economic fields.
• Economic Policy- Both Biden’s “America is Back” reengagement strategy and India’s “Atmanirbhar
Bharat” inclined towards consolidating local supply chains. According Kashish Parpiani, the US-India
trade relationship is undoubtedly entering a period of uncertainty, with Biden unlikely to forge any new
trade deals in the near-term.
Geopolitical-
• S-400 deal: The Biden Administration is expected to take harder stance on Russia which can impact
India’s S-400 deal.

• Reengage with Iran: Biden has indicated its willingness to reengage with Iran. If the US rejoins JCPOA, it
can be helpful for India to restart its connectivity and energy projects with Iran.
• On China, the US policy of strengthening QUAD is expected to continue.
Energy Cooperation-
• Paris Climate Accord: Biden has promised to re-join the Paris Climate Accord. It can help India as it may
get access to critical technologies and finances to deal with the massive adaption and mitigation
challenges.
• Renewable energy: Through the India-U.S. Climate and Clean Energy Agenda 2030 Partnership, the two
have set ambitious targets for 2030. Under it United States has set an economy-wide target of reducing
its net greenhouse gas emissions by 50-52 percent below 2005 levels in 2030 and India has set a target
of installing 450 GW of renewable energy by 2030.
• Multilateralism- Biden administration has re-joined WHO. USA’s reengagement in global institutions can
help India to revive multilateralism and globalization and counter Chinese dominance.
ISSUES IN INDO-US RELATIONSHIP

DEFENCE-
• Russia- Russia is India’s biggest arms supplier. This will hinder the increasing interoperability and
communications between armed forces of 2 countries as American military hardware are not compatible
with the Russian ones.
USA’s Position on CAATSA
o CAATSA is a United States federal law that imposed sanctions on Iran, North Korea, and Russia.
o The USA has threatened to sanction India under the S-400 missile defence system deal with Russia.
o S-400 meets the operational requirements for India and is crucial to counter attacks in a two-front
war. Thus, India is expecting a waiver.
US-PAKISTAN Relationship-
• USA is dependent on Pakistan for supplies in Afghanistan. Further, Pakistan is also mediating between
the USA and the Taliban.
• Many democrats including President Biden, during his campaign have raised concerns over human rights
in Kashmir. This can help Pakistan to internationalize the issue.
In WTO
• North-south divide: While the US and the other developed countries are trying to side-track the Doha
Development Agenda and introduce ‘New Issues’, India is working with other developing countries to
pressurize developed countries to fulfil their commitments under DDA.
TRADE-
The Bilateral Investment Treaty between India and USA is pending for a long time. The various issues involved are-
• While USA’s Model Investment Treaty favours asset-based definition and involves MFN status and IPR
rules, India’s Model Investment Treaty provides for enterprise-based definition and excludes MFN
status, National Treatment.
• IPR laws- The US has reservations on Indian IPR laws, specially section 3 (evergreening) and section
84(compulsory licencing) of Patent Act. United States Trade Representative (USTR) has put India into
priority watch list for inadequate protection of IPR.
• Protectionism- America First Policy is likely to continue under the Biden Administration due to the effect
of pandemic. This can result in decrease in H1-B and L-1 visas.
• The US has withdrawn its preferential treatment to Indian exports under the Generalised System of
Preference (GSP) that covered around 2000 items valued at $6.3 Billion.
Generalised System of Preference (GSP)-
• Duty-free entry: GSP aims to promote economic development by allowing duty-free entry for thousands
of products from developing and least developed countries.
• India was the largest beneficiary of the program in 2017 with USD 5.7 billion in exports to the US.

GEOSTRATEGIC-
o Though aggressive behaviour by China has brought India-USA together yet geostrategic interests of both are
not completely aligned
o In Afghanistan- USA’s announcement to withdraw from Afghanistan can destabilize the country
which can have a spill over effect in Kashmir.
o Indo Pacific- While India’s primary focus is on Indian ocean ,the USA is more focused on pacific ocean.
o Middle East- Trump Administration’s Maximum Pressure strategy for Iran has impacted India-Iran
relations and Iran has moved closer to China.
ON CLIMATE CHANGE
- Climate first” policy: Biden administration is pursuing a “climate first” policy agenda. On the other
hand, India is already the third-largest greenhouse gas emitter and its demand for energy will grow
faster than any other country for the next two decades. It has accordingly ruled out a zero-emissions
goal.
ON DATA SOVEREIGNTY-
o Osaka Track: In recently concluded G-20 summit, India boycotted the Osaka Track on the digital economy. It
favoured creation of laws which allowed free flow of data between countries. However, India opposed free
flow of data as it is breach of sovereignty.
o The CLOUD act of USA allows security agencies to procure data stored in servers regardless of whether Data
originates in the US or foreign soil.
WAY FORWARD-
o Connectivity- USA can invest in India ,Japan proposed Asia Africa growth corridor. Both countries can also
undertake joint infrastructure development programmes in IOR littoral states to counter Chinese projects in
the region.
o Cooperating in Maritime Domain- in fields such as blue economy, maritime domain awareness.
o Both countries need to find common ground on Afghanistan and Pakistan.
o TRADE- Both countries need to finalise Bilateral Investment Treaty to achieve target of $500 billion trade by
2025.
o De-risking Supply Chains- US can work with India, Japan and Australia to diversify and de-risk supply chains
through Supply Chain Resilience Initiative.
Conclusion-
o As suggested by Barak Obama, the Indo-US relationship is the ‘most defining’ partnership of the 21st century.
Thus, countries need to iron out their differences and should work together to achieve the objective of rule
based, stable and peaceful Indo-pacific.

INDIA-RUSSIA
Introduction
• In words of PM Modi,” India has given top priority to its relationship with Russia. In this rapidly changing
world, our relationship has become more relevant.”
• At Sochi Summit,2018, the relationship was elevated to ‘Special and Privileged Partnership.’ India and Russia
relationship is based on ‘deep mutual trust’ , common foreign policy goal of multipolar world order and long
term partnership in the military, security and nuclear energy fields.
Historical overview
• During the cold war, Treaty of Peace and Friendship of 1971 was the manifestation of shared goals of the
two nations as well as a blueprint for the strengthening of regional and global peace and security.
• After disintegration of USSR: After the dissolution of the Soviet Union, India and Russia entered into a new
Treaty of Friendship and Cooperation in January 1993 and established a Strategic Partnership in 2000.
AREAS OF COOPERATION
Defence
• Arms import: Russia accounts for 58% of total arms imports by India followed by Israel and USA.
• Share strategic technology: Russia is one of the few nations willing to share strategic technology with India.
S-400 defence system deal also highlight India’s desire to maintain strategic autonomy.
• Partner in Brahmos: Russia has leased Akula class submarine to India and also an important partner in
Brahmos missile system development.
• Both countries also conduct annual tri-service exercise INDRA.
Trade
• Trade between Russia and India amounted to US $10.11 billion in 2019–20 and both countries have
invested in each other’s oil and gas sectors. They have set a bilateral trade target at $30 billion by 2025.
• Strategic Economic Dialogue: India-Russia started Strategic Economic Dialogue in 2018. It has focus on six
core areas of cooperation, namely, Transport Infrastructure; Agriculture; Small and Medium Business
support; Digital Transformation and Frontier Technologies; Trade, Banking, Finance, and Industry; and
Tourism & Connectivity.
• India also participated in Eastern Economic Forum and extended $1billion line of credit for development
of far right region of Russia.
• Maritime route: Recently, maritime route from Chennai to Vladivostok has also been proposed. It would
reduce time to reach Russian far east by 16 days.
Energy
• Natural gas: Russia has one of the largest reserves of Natural Gas in the world. India’s ONGC videsh has
acquired 20% stakes in Sakhalin oil and gas plant.
• In the St. Petersburg Declaration, both countries agreed for joint exploration of hydrocarbons in the Arctic
region. Russia’s ‘Pivot to Asia’ strategy and India’s Draft Arctic Policy both highlight convergence between 2
countries. The Northern Sea Route will further facilitate development of resources in the region.
• Nuclear Energy production: Russia is the only foreign country involved in Nuclear Energy production in India.
Both are also working to jointly develop nuclear energy plant in Bangladesh (Rooppur power plant).
o Kudankulam Nuclear Power Plant (KKNPP) is being built in India with Russian cooperation.
Geopolitical convergence
• Goal of Multipolar World Order: Both India-Russia have shared goal of Multipolar World Order. Both
countries are cooperating through BIMSTEC, SCO to realize this objective.
• On China- Russia continues to see China as potential strategic adversary in the future. Hence it is deepening
cooperation with countries like India, Vietnam, Indonesia etc. Russia also pushed for India’s entry into SCO
to contain Chinese influence. Similarly, India has expanded the scope Act East Policy to include Russia.
• Support for UNSC seat to India: Russia has also support India’s claim for permanent seat in UNSC and stood
by India on J&K issue thereby blocking Pakistan’s attempt to internationalize the issue.

Space technology
• The former Soviet Union launched India’s first two satellites, Aryabhata and Bhaskar.
• Russia has also provided India Cryogenic technology to build heavy rockets.
ISSUES IN RELATIONSHIP
• Limited areas of cooperation: Post-cold war, India-Russia relations have become more transactional. It is
centred on military cooperation and spares whereas there is little progress in other aspects of relationship.
• USA-Russia dilemma: The deteriorating Russia-USA relations has introduced new element of discomfort as
India seeks to maintain its traditional relationship with Russia without spoiling its growing closeness to USA.
• DEFENCE- Though Russia still commands 56% of total arms imports by India, this figure is step down from
2010-14 when Russia’s share was 70%. The reasons for the decline are- India’s desire to diversification of its
defence imports, Growing India-US relationship, Sanctions on Russia under CAATSA, dissatisfaction in India
with post sales delivery and maintenance being offered by Russia.
• TRADE- The various issues in Indo-Russia trade are –
o Lack of involvement of private sector
o Poor connectivity- stalling of International North-South Transport corridor
o Weak banking links
o Cumbersome regulatory procedures on Both sides.
• INDO-PACIFIC
o Russia’s apprehensions: In the emerging construct of Indo-Pacific, India is growing close to USA. It
has left Russia concerned. Russia is apprehensive that the US would exert pressure on India’s foreign
policy choices and it would lose a friendly country and biggest buyer of its military equipments.
o Russian Foreign Minister Sergei Lavrov called Indo-Pacific as “an artificially imposed construct” being
promoted by the US, Australia and Japan.
• TERRORISM- India and Russia are calling for early finalization of the Comprehensive Convention on
International Terrorism.
RUSSIA-CHINA-PAKISTAN AXIS-
▪ The sanctions on Russia post Ukrain crisis by the West has pushed Russia closer to the China. Both countries
are working against the US and the West in Asia, Middle East and in Indo Pacific. Even the UNSC is divided
into P-3 and P-2.
▪ Russia-China trade: Apart from geopolitical convergence both countries also share economic
complementarities. Russia-China trade stands at $110 billion in 2019.
▪ Russia overtook Saudi Arabia as leading supplier of Oil to China. Both countries have also signed $400
Billion gas deal and proposed to connect EEU to the BRI project. China and Russia have inaugurated
the first cross border pipeline ‘power of Siberia’ to transport natural gas.
▪ Defence and technology: Russia also shares cutting edge technologies in defence production with China.
China has also received S-400 missile defence system from Russia.
▪ Russia has also removed Arms embargo on Pakistan in 2014 and since then both countries have also
conducted joint military exercise. Pakistan has already granted permission to Russia to use its Gwadar port
under the CPEC. Both Pakistan and Russia plan to elevate their bilateral relationship to strategic level.
▪ Pakistan is also important for Russia in context of Afghanistan and wider stability in central Asia and Caucasus.
US -RUSSIA TENSIONS-
▪ The key objectives of Russia’s foreign policy are- Honorable accommodation with West and multipolar world
order with Russia as swing state in global balance of power. It has no desire to play second fiddle to China.
However, sanctions from the US and West has crippled Russian economy and pushed it towards China.
- Reasons for US-Russia tensions-

o Moscow’s interference in the 2016 U.S. presidential election

o Annexation of Crimea and launch of an ongoing war in south-eastern Ukraine

o Russia’s support for Syria’s Bashar al-Assad in his brutal civil war
o Supporting Venezuela’s Nicolas Maduro
o Perceptional 'Normative Divergence' on Bilateral Issues
- Russia granting political asylum to Edward Snowden and differences between Russia and the West
over matters of human rights over imprisonment of dissident Alexei Navalny.
- Response from the US and the West

o Threat to security: The U.S. National Security Strategy declares Russia and China the two top threats
to U.S. national security.
o Sanctions: The US has imposed sanctions on Russia under CAATSA Act.
o Even in recent first summit , Both Biden and Putin expressed a desire for a better relationship, but
announced no dramatic actions to arrest the downward spiral in the relationship.
IMPLICATIONS FOR INDIA AND THE WORLD
o QUAD VS R-C-P AXIS- the recent Quad virtual summit was followed by a Russian peace conference on the
future of Afghanistan on March 18th 2021. Russia did not invite India as a party though China, Pakistan
and Iran were invitees. It is presumed that India was excluded by Russia owing to Pakistani reservations
and Chinese attempts to contain India in the south Asia region.
o STABILITY IN AFGHANISTAN- Pakistan has been playing broker between the Taliban and world powers. The
emerging RCP axis could undermine India’s investments and interests in Afghanistan.
o ARMS SELLS TO PAKISTAN
o SUPPORT AT GLOBAL PLATFORMS- Russia has traditionally supported India on Kashmir issue and India’s
entry into UNSC. However, with the emergence of RCP axis and division of UNSC into P-3 and P-2 , Russia’s
supported can’t be guaranteed.
o CONNECTIVITY- RCP and Iran axis can endanger India’s connectivity projects such as Chabahar and INSTC.
Recently, Iran proposed to link Chabahar port with Gwadar port of Pakistan under BRI project.
o STABILITY IN MIDDLE EAST- Russia’s support for Syria’s Bashar al-Assad and growing closeness to Iran can
destabilise the region further impacting India’s key national interests like connectivity and energy security.
o NEW ARMS RACE- The United States and Russia have finalised an agreement to extend The New START
Treaty until 2026 which limits their stockpiles of nuclear weapons. It imposes limits on Russian and US
intercontinental missiles and bombers, but does not cover new types of weapons. The deterioration of
relations could trigger new arms race in fields such as cyber-attacks.
WAY FORWARD
• NEW AREAS OF COOPERATION-India Russia need to transform a 20th century partnership and make it fit for the
21st century. Apart from Energy and defence , both countries need to find new areas of cooperation such as trade
, connectivity etc. Creation of FTA between India and Eurasian Economic Union can also facilitate trade between
India-Russia.
• Balancing China- Russia is also apprehensive of growing Chinese influence in its periphery of Central Asia , India
being rising global power can help contain Chinese influence. For this both countries need to work together
through SCO platform.
• ARCTIC POLITICS: India can work with countries like Japan and South Korea in Far East region of Russia and
contain Chinese influence in Arctic politics which Russia also desires.
• CONNECTIVITY- India can also explore possibility of Russian involvement in Chabahar project to ensure access to
Afghanistan and central Asia.
• Both countries have shared interest in Multipolar world order. Both can work in global platforms to avoid the
new cold war between the USA and China with the help of like-minded countries.
• REDUCING US-Russia tensions- India being a great power will certainly balance both Russia and US for promoting
a peaceful global order. India can leverage its warm relations with both US and Russia can help ensure “Cold
Peace” between 2 countries. India can also help in establishing detente on critical issues like Iran’s nuclear crisis,
Indo-Pacific geopolitics, Ukrainian fiasco or the Afghan impasse.

• 2+2 Dialogue:
o On the lines of 2+2 dialogue with the United States, India and Russia have decided to establish
dialogue on the same pattern, to add further momentum to the strategic partnership between the
two countries
CONCLUSION
• Russia retains its position as one of the great powers and has rich natural resources and history of mastery
over science and technology. Thus Steps to improve the economic partnership and charting of a clear
future plan of action should be a priority for India to moderate Russia’s tilt towards China. Russia
would also benefit from keeping Indian concerns in mind so as to not damage a long -standing
partnership with an emerging power.

INDIA-CHINA RELATIONS
PYQ
1. With respect to the South China sea, maritime territorial disputes and rising tension affirm the need for
safeguarding maritime security to ensure freedom of navigation and over flight throughout the region. In
this context, discuss the bilateral issues between India and China. (2014)
• “India Conquered and dominated China culturally for 20 centuries without ever having to send a single soldier
across her border.” - Hu Shih
• “China is India’s largest foreign policy challenge” - Shashi Tharoor
• India-China relations are a journey from ‘Inch towards Miles’. INCH is ‘India-China’, towards MILES is
‘Millennium of Exceptional Synergy’. - PM Modi
INTRODUCTION
China is India’s largest neighbour. It is among India’s largest trade partner, supplier for many critical ingredients in
strategic industries and a partner in many issues of global concern such as Climate Change. However, being the
world’s largest army, a nuclear power, 2nd largest economy and a totalitarian regime, it is also considered to be a
formidable competitor to India’s global aspirations. Relations with China have always been central to India’s Foreign
Policy in both crests (Panchsheel) and troughs (1962 war, Doklam stand-off, Galwan Valley clash). China is thus
considered one of India’s most formidable Foreign Policy Changes.
AREAS OF RELATIONSHIP
Convergence:
• International Cooperation Organizations: Both are members of Shanghai Cooperation Organization, East Asia
Summit, RIC (Russia India China grouping), BRICS and G-20
• Trade: China is among the top 2 trade partners of India and largest in Asia. Bilateral trade is worth over $80
billion.
• New Economic Order reform: Both support World Bank and IMF reforms.
• Support WTO Reform and strengthening rules based multilateral trading order
• Climate Change: both support principle of Common but Differentiated Responsibilities
• Financial Mechanisms: India and China are prominent stakeholders in AIIB and NDB
• Energy Security: Against Asian Premium
• Piracy and armed robbery
• Terror cooperation as both countries face threats from extremist outfits. SCO RATS is a prime example.
• Sustainable Development Goals
Divergence:
• Border issues – India-China border is unsettled in Aksai Chin, Ladakh, Arunachal and Doklam. Recent military
clash in Galwan Valley is widely attributed to this.
• Geopolitical struggle: Both are locked in Geopolitical struggle for domination in Asia and Globe
o India is widely seen as being in the Western Camp with its participation in Quad and growing
security cooperation with USA, Japan and Australia
o China-Pakistan alliance and China-Russia quasi-alliance puts China in the opposite camp as India.
• China is opposed to UNSC Reform – Permanent seat for India
• Chinese support to Pakistan - Kashmir, Terrorism, Hafiz Sayeed.
• Massive Trade Imbalance: India runs its largest trade imbalance with China.
• China opposes India’s NSG entry

• BRI and CPEC: India has concerns over the project running through Pakistan Occupied Kashmir which India
claims. Further China seeks to expand its hard and soft power in South Asia and Africa, putting it in conflict with
Indian interests (violation of India’s territorial integrity).
• Forays in South Asia: China has made heavy investments and engaged in strategic-military cooperation with
nearly all South Asian nations. It engages in debt trap diplomacy and neo-colonialism to ensure fulfilment of its
strategic interests.
• Water cooperation: China refuses to share hydrological data over flow in Brahmaputra River. Further Chinese
aggressive dam building operations in Brahmaputra can have serious repercussions for India’s North East.
• Dalai Lama: China protests against Indian asylum to Dalai Lama, religious head of Tibet.
• India opposes Chinese Aggression in Indian Ocean Region and East China Sea
• Kashmir: China has called India’s moves on Article 370 as altering the status quo ante while India calls it an
internal matter.
India-China Cooperation
• Wuhan Consensus: Recognized that both India are China are factors for stability in the world. They resolved to
not let disagreements become disputes.
• Signed Strategic Partnership in 2003
• Border agreements
o 1993 Border Peace and Tranquillity Agreement
o 1996 Agreement on Confidence-Building Measures in the Military Field Along the LAC
o 2005 Protocol on Modalities for the Implementation of Confidence-Building Measures in the Military
Field Along the LAC
o 2012 Agreement on the Establishment of a Working Mechanism for Consultation and Coordination on
India-China Border Affairs
o 2013 Border Defense Cooperation Agreement.
• Wuhan and Chennai informal summits
• China India Plus cooperation:
o BCIM Economic Corridor
o Rohingya
o Afghanistan
o Iran
o Nepal
• 2020 was designated as Year of India- China Cultural and People to People Exchanges.
Conclusion
Xi Jinping, the Chinese premier said at Mamallapuram Summit: “to achieve the ‘Dragon and Elephant Dance’ is the
only correct choice for China and India. In line with the same it is important that both India and China resolve their
differences and cooperate to usher in the Asian century as agreed in Wuhan Consensus.
ISSUES IN NEWS
India China Border Standoff

Why in News
Between May and June, 2020 - Indian and Chinese troops clashed at various points along the border especially in
Nathu La and in Galwan Valley. 20 Indian soldiers died from the clashes in Galwan Valley, which marked the first
death along Line of Actual Control (LAC) since 1975 and first military engagement since 1967.
The nature of violence and weapons used (including gun shots in the air) is unprecedented since the Border
Agreements were put in place. High level talks between National Security Advisors, Military Commanders and
Foreign Ministers have ensured temporary peace but the armies remain locked in a standoff along the border.
Heavy military deployments were seen from both sides.

Reasons for Chinese Aggression

• To respond to India’s efforts to bolster border-area Infrastructure in Ladakh, especially the completion of
DSDBO Road.
• To protest against abrogation of Article 370 and change of status of J&K and Ladakh.
• To deflect attention from growing internal resentment in China due to its totalitarian regime and COVID-
19 response
• To warn India about its proximity to USA
• To nudge India to settle the boundary issue.
• To give a signal to the smaller nations in Chinese neighbourhood about the perils of not budging to Chinese
pressure eg. India’s refusal to join BRI.
India’s Concerns
• Threat of escalation of standoff into larger military conflict
• Loss of territory in Ladakh sector
• Loss of lives - 20 Indian soldiers killed
• Derailing of the India-China peace process eg. Wuhan and Chennai informal summits
• Diversion of resources to ensure peace along the border amidst a global pandemic - men, equipment and
money.
Five Point Plan to De-escalate LAC Stand-off

Amidst the intense standoff at the Line of Control, in September 2020, Foreign Ministers of both countries agreed
to a 5-point plan to ease tensions.
1. Consensus: Both sides should take guidance from the series of consensus of the leaders on developing
India-China relations (Wuhan and Chennai)
2. Current situation in the border areas is not in the interest of either side. Border troops of both sides
should continue their dialogue, quickly disengage, maintain proper distance and ease tensions.
3. Abide by protocols: Both sides shall abide by all the existing agreements and protocol on China-India
boundary affairs, maintain peace and tranquility in the border areas and avoid any action that could
escalate matters.
4. Dialogue and communication: Continue to have dialogue and communication through the Special
Representative mechanism on the India-China boundary question. The Working Mechanism for
Consultation and Coordination on India-China border affairs (WMCC), should also continue its
meetings.
5. Confidence Building Measures: As the situation eases, the two sides should expedite work to conclude
new Confidence Building Measures to maintain and enhance peace and tranquillity in the border areas.
This was followed by the First Phase of Disengagement along the Line of Actual Control in February 2021. However
much of the standoff still persists as of April 2021 in Depsang Plains, Hot Springs-Gogra, and Demchok.
India’s Response to Chinese Aggression
• India held Chinese ‘directly responsible’ for the violence. Foreign Minister logded a strong diplomatic
protest as well.
• To boost its military muscle, it approved the purchase of 33 Russian fighter jets and upgrades to 59 war
planes. It also expedited the acquisition of Rafale fight jets from France.
• Plans to boost infrastructure along China border
• Economic measures
o India banned over 100 Chinese-origin apps including popular ones such as Cam Scanner and
Tik-Tok under Section 69A of Information Technology Act 2000.
o Government introduced changes in FDI rules which required ‘prior approval’ from the Central
government for foreign investments from countries bordering India. This was majorly
considered to be aimed at China
o Certain ministries (for eg. Ministry of Road Transport and Highways) and state governments
announced that Chinese companies will not be allowed to take part in projects.

Way Forward
While keeping the Wuhan Consensus in mind, both sides must amicably try to resolve differences via dialogue and
reach a practical and sustainable solution to end the standoff. From a long-term perspective, resolving the
difference in perception of LAC and reaching permanent solution to solve the border issue is imperative for peaceful
relations between the two Asian Giants.
What is Line of Actual Control ?

What is Line of Actual Control ?
LAC is the demarcation separating Indian occupied territory from Chinese. As against Line of Control with Pakistan,
LAC isn’t demarcated on map. Due to this, there is considerable divergence in interpretation of LAC - India
considers LAC to be 3,488 km long while Chinese consider it to be only around 2000 km.
Three sectors of India-China boundary (LAC)
• Eastern Sector: LAC aligns along Mac-Mohan Lune but some minor disputes exist. China weakly
disputes India’s sovereignty over Arunachal.
• Middle Sector: Least controversial. With Chinese acceptance of India’s sovereignty over Sikkim, most
issues are resolved.
• Western Sector: major disputes along Ladakh (largely Indian occupied) and Aksai Chin region (Chinese
occupied).
Aksai Chin
• Aksai Chin is a disputed area in eastern part of Union Territory of Ladakh.
• It is a large salt flat desert of over
37,000 sq.km. It is mostly barren
and uninhabited.
• It has been under Chinese
occupation since 1950s, and is
administrative part of Xinjiang
province.
• The Line of Actual Control
separates Indian territory from
Chinese controlled Aksai Chin.
• Disagreements about sovereignty
over Aksai Chin Region were the
reason for the 1962 war.
• In 2020, Aksai Chin reason was the
main theatre for clashes between
Chinese and Indian armies.
China has Crossed its 1960’s LAC Claims

Why in News
During the recent Chinese incursions (May-June 2020) in Indian territory, it went past its previous claims.
About the Issue
• China in the 1960s had claimed territory until Finger 8. Now China has advanced and claimed territory
until Finger 4 in the Pangong Tso region.
• The Fingers refers to spurs along the banks of Pangong Tso lake.
• The proof for the previous claim comes from the documents of the Ministry of External Affairs from the
official boundary talks during the 1960s between PM Nehru and Premier Zhou Enlai.

Implication
The excess claims reflect Chinese willingness to maximize old claims for territorial gains and pressurize India
geopolitically.
Way Forward
India must constructively engage China in dialogue while maintaining .
Increased Chinese Transgressions Reasons for transgressions
• 2019 and 2020 witness a sharp upsurge in incursions along the • Un-demarcated nature of LAC
LAC. • Undulating terrain
• 2019 saw a more than 75% rise in transgressions as compared to • Different interpretations of LAC on
2018. both sides
• Most of them took place in Western Sector i.e Ladakh. • Aggressive Chinese nationalism
• Aerial transgressions also saw a marked rise in 2019. under Premier Xi.
• A similar spike was seen during the Doklam standoff after which
the Wuhan consensus was reached between PM Modi and
Premier Xi.
USA Offers Mediation Between India and China

Why in News
• Amidst the intense border standoff between India and China, the USA under President Trump offered to
mediate the row.
• While Mr. Trump has previously offered mediation between India and Pakistan, it is the first time he has publicly
done it between India and China.
Advantages of Third-Party Mediation by USA

• Useful as two parties don’t trust each other enough
• Provides scope for faster results
• USA can act as guarantor for the terms agreed
• Often helps the weaker party (in this case India)
Concerns over Third Party Mediation by USA

• China-US relations aren’t optimum for USA’s mediation
• India is apprehensive of third party mediation as it weakens its assertion of being a strong independent power
which is capable of resolving its own issues. This is particularly important as India seeks a permanent seat at
the UN Security Council.
• Vested interests of Third party cannot be ruled out
• Past instances of Third Party Mediation have been a mixed bag of results eg. India’s decision to involve the
UN in its dispute with Pakistan was seen as a strategic blunder
Response

• Both sides have denied the offer stating that given various high-level mechanisms between the two sovereign
nations, both of them were capable of resolving the issue.
Way Forward
• Despite the merits, Third Party Mediation must only be treated as a last resort in a crisis due to the above-
mentioned concerns. Until then, India must seek to resolve the standoff with its own mechanisms.
Indo-China Defence Ministerial Meet

• The meet took place on the sidelines of the Shanghai Cooperation Organisation Defence Ministers
Meet in Moscow in September 2020.
• This is the first high level political meet between the nations after the Galwan Valley clashes.
• The Indian Defense Minister emphasized on restoration of Status Quo Ante.
• Both sides, after stating their respective positions, agreed to de-escalate the situation at the LAC and
maintain peace and tranquility at the border.
China Proposes Territory Swap with Bhutan
Why in News ?
• During a virtual meet of Global Environment Facility (GEF) to discuss aid to Bhutan’s Sakteng Wildlife
Sanctuary, China laid claim to
740 sq km area (including the
sanctuary) in Bhutan for the
first time.
• China then opposed the
proposal to grant aid to the
disputed area. But the GEF
Council passed the resolution
despite Chinese opposition.
• Bhutan rejected the
Chinese claim saying that area
was not disputed as China
never mentioned it in 24
rounds of boundary talks between China and Bhutan so far.
India’s Concerns
• Pressure tactic on India: Coming in the midst of the tense border standoff between India and China, the
Chinese move is largely seen as a pressure tactic on India as Sakteng Wildlife Sanctuary borders the disputed
province of Arunachal Pradesh. The same move (to target Bhutan) was used by Chinese during the Doklam
plateau.
• Endangers Indian interests: Further, any package deal that grants China territory in West Bhutan,
endangers Indian interests due to its proximity to Siliguri Corridor (India’s Chicken’s Neck).
• India’s diplomatic edge in Bhutan may be tapered due to Indian interests being the only roadblock to an
otherwise lucrative deal with China.
• Greater Chinese engagement with Bhutan: The deal may open doors for greater Chinese engagement with
Bhutan, which is the only South Asian neighbour to resolutely stand by India in the Doklam crisis and reject
the BRI.
China Bhutan Border Dispute

• Until recently, the boundary dispute was limited to Jakarlung and Pasamlung in North Bhutan and Doklam
in West Bhutan

• In 1996, China had offered a package deal to Bhutan - “to exchange the valleys to the north, with an area
of 495 square kilometers, with the pasture land to the west, totaling 269 square kilometers” (Bhutanese
King in the Bhutan National Assembly).
• However due to Indian reservations over the deal, Bhutan did not accept it.
• In 2020, China has after raising claims in Eastern Sector again offered a package deal, similar to the 1996
deal. The details of the deal, however, are kept secret.
Indian Reponse
India has not officially responded to the new Chinese package deal as it doesn’t want to be seen as interfering in
Bhutan’s internal matters. However it is reportedly keeping a keen watch on the situation.
Way Forward
India must continue building on its special relationship with Bhutan by means of developmental aid and special
unilateral concessions. It must bilaterally convey its concerns regarding the deal but must desist from taking any
‘big brotherly’ steps regarding the same.
China’s Railway Near Arunachal Border
Why In News ?
China has begun work on the strategically important high-speed railway link between near Arunachal Pradesh
border).
• The project connects Chengdu in Sichuan Province and Nyingchi in Tibet.
• This would be its second major rail link with Tibet, first one being Qinghai-Tibet railway line.
Implications
• Consolidation of Chinese hold over Tibet It is considered a major step in consolidating the Chinese
government’s hold on the border region of Tibet and a major boost to socio-economic development of the
region.
• It will also aid in swift movement of troops and resources in case of crises such as Doklam stand off or
internal unrest in Tibet.
• Alongside the national goals, it is also seen as a major step in connecting China to South Asia, especially the
Trans-Himalayan Multi-Dimensional Connectivity Network project which is the Himalayan leg of BRI
involving Nepal.
India’s Concerns
• Chinese aggression : Heavy Infrastructure development close to an area claimed by China (Arunachal
Pradesh) is a sign of Chinese aggression and disregard for Indian sensitivities especially in the backdrop
of recent border standoff.
• Poor linkages from Indian side: Vastly improved connectivity and infrastructure on Chinese side is a
stark contrast to the poor linkages on Indian side of the border in Arunachal Pradesh where even
strategic and large towns like Tawang lack basic rail connectivity.
• Undermine India’s advantage: The project is also a part of larger Chinese plans to ramp up connectivity
and infrastructure linkage with Nepal which can seriously undermine India’s strategic advantage with
Nepal.
India’s Response (Recent infrastructure projects near Arunachal Border)

• BRO constructed the strategic Daporijo Bridge over Subansiri River in Arunachal in a record 27 days.
• Construction is under way for the all-weather Se La pass tunnel in Arunachal Pradesh.
• Bogibeel bridge was constructed in 2018 which is India’s longest road-rail bridge connecting Dibrugarh in
Assam to Pasighat in Arunachal Pradesh

• Work in progress: the construction of 57 roads, construction and refurbishing of 32 helipads, development
of 47 outposts, and 12 staging camps for Indo-Tibetan Border Police (ITBP) along with the construction of
18-foot tracks in Arunachal Pradesh.
Way Forward
• China’s actions despite being near the disputed border are well within its sovereign rights.
• India must seek to match the neighbour’s actions by continuing to develop strong connectivity linkages.
Basic railway connections to all major towns along the border and good road connectivity to all villages is a
must.
• Both sides must engage in a transparent consensual approach in developing border infrastructure to allay
mistrust.
India China Water Relations
Hydrological Status
• Five major rivers flowing through India find their origins in China. They can be divided into two major
groups:
o Brahmaputra River System: Siang
(Brahmaputra), Lohit and Subansiri
o Indus River System: Indus and Satluj
• China, courtesy of its sovereignty over
Tibetan plateau, is also the upper riparian
controller on 7 of South Asia’s largest rivers –
Indus, Ganga, Brahmaputra, Irrawaddy,
Salween, Yangtze and Mekong.
• Run off from Tibetan Plateau forms the
largest volume from a single point in the world.
• Both nations face significant water stress
- India has 16% of population but only 4% water
resources while China has 20% population but only 7% of water resources. The two nations are also
industrial and agricultural giants.
Water Cooperation
• There is no institutional agreement on water sharing between the two.
• There is only Expert Level Mechanism (ELM) in 2006 to discuss various issues related to trans-border
rivers
• India and China have a water data sharing agreement. But China has stopped sharing data after the
Doklam standoff of 2017.
• In 2018, an MOU was signed between the two nations on sharing hydrological information about
Brahmaputra River in flood season (May to October) by China to India. China is also obligated to share
data if waters exceed pre-agreed levels in non-flood season.
Concerns
• Weaponisation of water flow: China has the capability to weaponise the upper riparian status by
altering the flow using its mega-dams.
• Any major hydro-power project downstream (Indian territory) cannot be planned without an assured
water cooperation agreement between the countries.
• China’s status as upper-riparian limits India’s ability to deal with water cooperation issues with
Bangladesh and Pakistan where India is the upper riparian.

o India’s plans to utilize the full allocation to it under Indus Water Treaty as means of keeping
Pakistan in check can be spoiled by Chinese actions upstream.
Way Forward
• Finalizing a water cooperation agreement: There is an urgent need for finalizing a water cooperation
agreement between the two nations which addresses water data sharing, cooperation on dam building
and agreements on minimum water flow downstream.
• IWT as a guide: The renowned Indus Water Treaty should serve as a valuable guide as to water
cooperation between two rival nations.
• Politicization of water must be avoided at any costs.
China’s New Dam on Brahmaputra
China’s New Dam on Brahmaputra

• China plans on building a super-dam in Medog County (near Arunachal Pradesh) on a tributary of
Brahmaputra called Yarlung Zangbo. It originates in Tibetan Plateau.
• Yarlung Zangbo flows into Arunachal Pradesh (as Siang) and Assam (as Brahmaputra) before entering
Bangladesh (as Jamuna).
• China has already built a series of small dams on Yarlung Zangbo.
• The new dam is proposed to be three times that of the Three Gorges Dam, world’s largest hydel
power dam.
• The dam forms a crucial part of China’s plan to achieve emissions peak by 2030 and net zero
emissions by 2060.
• Concerns for India
o Degradation of Brahmaputra basin due to alteration in silt quantities
o Alteration of water levels in ecologically sensitive regions eg. Kaziranga National Park.
o The dam is located in the seismically sensitive Himalayan region which may pose a hazard of
dam bursts.
o Politicization and Weaponization of River water wherein China may impede natural flows in
times of tensions with India.
China’s Rising Influence in South Asia
Once considered the strategic backyard of India, South Asia has recently been a theatre of rising Chinese influence.
• Pakistan:
▪ China-Pakistan relationship considered to be all-weather alliance
▪ China has heavily invested in Pakistan via the China Pakistan Economic Corridor (CPEC)
▪ China also has a substantial stake in the strategic Gwadar port.
▪ China provides diplomatic support to Pakistan in the UN and FATF.
• Bangladesh:
▪ China is the largest source of defense imports for Bangladesh
▪ China is also its largest trade partner. It also grants Bangladesh duty free access to over 97% of traded
goods.
▪ It is financing 25 energy projects along with Bangladesh’s second Nuclear Power plant.
▪ China has also extended technical support for Bangabandhu-1, Bangladesh’s 1st communication satellite.
• Sri Lanka:
▪ Sri Lanka forms a major leg of the maritime component of BRI. Hambantota Port is one of the biggest
projects under BRI.
▪ Due to debt-trap diplomacy, China has also gained control of strategic assets such as Hambantota Port.
China is one of the largest creditors of Sri Lanka.

▪ China is one of its largest trade partners and source of defense equipment.
▪ China has provided crucial diplomatic support to Sri Lanka in the UN Human Rights Commission after the
Civil War between LTTE and the Sri Lankan Government.
• Nepal:
▪ Nepal is the host for Himalayan leg of the BRI in three corridors – Kosi, Gandak and Karnali.
▪ China has granted access to 7 land ports to Nepal for it to escape the excessive dependence on India for
connectivity to the outside world.
▪ Major investments in projects such as Pokhara airport, Kathmandu-Lumnini rail link, Lhasa Shigatse Rail Link.
▪ Second largest trade partner and largest source of FDI.
• Maldives
▪ China owns over 70% of Maldives debt and has heavily invested in infrastructure such as Male Airport and
Sinamale Bridge.
▪ A Chinese company has received a 50-year lease to the Feydhoo Finolhu Island
▪ With the return of the civilian democratic government to Maldives, many grand infrastructure projects have
been stalled or cancelled due to concerns over Debt-trap and unviability of the projects.
Concerns for India

• Chinese foray in India’s immediate neighbourhood risks eroding its soft power and predominant position in the
region.
• Chinese support to hostile regimes such as Pakistan’s Army or Maldives autocratic regime goes against India’s
interests.
• Indian companies' risk being outbid and marginalized in strategic contracts in South Asia.
Way Forward
• India needs to ramp up its development assistance to its neighbourhood while improving on its delivery deficit.
Further, it should seek to cooperate jointly with China in the neighbourhood to alleviate poverty in the region.
INDIA –TAIWAN
Why in News ?
• Two Indian MPs attended (virtually) the swearing-in of the Taiwanese President for the first time. Coming in
the aftermath of the clashes in the Galwan Valley, it is seen as a change in approach towards Taiwan.
About Taiwan
• After the victory of the Communist Party of China (CPC) in the Chinese Civil War in 1949, the Kuomintang Party
escaped to Taiwan and CPC established a new nation, People’s Republic of China. The Kuomintang established
the Republic of China in Taiwan.
• Both the CPC and Kuomintang party claim to be legitimate rulers of the whole of China (including Taiwan).
• Initially Taiwan was recognized as a separate nation by many including the US. However, as China progressed,
many nations only accorded recognition to the People's Republic of China (as per One China Policy).
• One China Policy states that any nation wanting to establish diplomatic ties with the People’s Republic of China
must sever all ties with Taiwan and recognize that there is only one China.
• Today, 179 out of 193 members of the UN do not maintain diplomatic ties with Taiwan.
• Taiwan is not a member of the UN and WHO. It is a member of WTO as a member economy under the name
‘Chinese Taipei’.
• Taiwan is today's Asia’s 5th largest economy. It is also the most populous state and largest economy outside
the UN system.
• It is a global leader in chip manufacturing and IT hardware.
History of India-Taiwan Relations

• Pursuant to the One China Policy, India does not maintain full diplomatic relations with Taiwan.

• In the Cold War Era, ties were remote as Taiwan was seen as part of the Western bloc while India was Non-
Aligned.
• After the end of the Cold War, the policy was reoriented and unofficial relations were set up with the
establishment of India-Taipei Association in Taipei, Taiwan.
• Taipei Economic and Cultural Centre was also set up in 1995 as Taiwan Government’s office in India which
serves as its unofficial embassy.
• The relations are continuously improving with growing trade and cultural linkages.
Current state of India-Taiwan Relations

• Trade has grown from $934 million in 1995 to $5.91 billion in 2014.
• Investment :Taiwanese companies such as Foxconn have massive investments in India.
• A Bilateral Investment Agreement was also signed in 2018.
• Strategically, Taiwan’s New South-bound policy in its third phase recognizes India as an integral partner. It is in
convergence with India's own Act East Policy.
• India and Taiwan share faith in values such as Human Rights, Democracy, Rule of Law etc.
Concerns
• India-Taiwan ties are limited by the constraints of One China Policy.
• Any rapid improvement in ties risks earning the displeasure of China with whom both the nations share
substantial economic ties.
• Trade relations with Taiwan are still under-exploited with India forming just around 1% of Taiwan’s total
trade.
Way Forward
• Taiwanese companies must be encouraged to set up manufacturing facilities in India. India’s massive industrial
base and cheap labor would complement Taiwan’s technical expertise.
• Taiwan’s response to COVID-19 has earned it global praise. India must seek cooperation with it in the domain
of healthcare.
• Tourism, particularly Buddhist heritage tourism, is a potential sector for further cooperation.
Conclusion
• India must seek to expand and diversify its relations with Taiwan – both in trade and strategically while being
mindful of the Chinese angle.
Tibet
Why in News ?
• The US Senate passed the Tibetan Policy and Support Act.
Tibet’s History
• Tibet is the world's highest and largest plateau located in the north of Himalayas.
• Throughout history, Tibet has either been independent or under loose sovereignty of China.
• China conventionally views Tibet as the palm, and Ladakh, Nepal, Sikkim, Bhutan and Arunachal Pradesh as the
five fingers.
• In British era, Tibet was considered as a buffer against Imperial Russia. British adopted a forward policy to mark
its hold on the region. It existed as a weak independent state in the early 20th century.
• Upon the rise of the People's Republic of China, the People’s Liberation Army occupied Tibet in 1950-51. This
led the 14th Dalai Lama (spiritual head of Tibet) to flee and seek asylum in India since then.
• A peaceful movement for autonomy has been going on since then from outside Tibet.

Tibetan Policy and Support Act

• Tibetan Policy and Support Act was passed by the US Senate.
• It outlines American policy towards Tibet and addresses issues such as Human Rights, Environment, religious
freedom etc.
• It formally recognizes the Central Tibetan Administration (Tibetan government in exile) as the legitimate
representative of Tibetan people.
• It allows the US government to sanction Chinese officials who interfere with succession of the Dalai Lama.
• It also calls for international cooperation on monitoring Tibetan plateau’s environment and its protection.
India-Tibet Relations
• India recognizes Chinese claims over Tibet.
• On the other hand, it also provides asylum to lakhs of Tibetan refugees and also to the Dalai Lama.
• India also provides unofficial assistance to the Tibetan Government in Exile which operates out of India.
• India provides education & healthcare support for Tibetan refugees along with lifelong work visas.
• Seven Indian institutes also offer PG courses in Tibetology.
• India’s policy has drawn ire from Chinese government who view Tibetan movement as a separatist tendency
but has drawn worldwide praise for India’s humanitarian approach.
Challenges for India

• India’s vulnerability in Kashmir has restricted India’s stance with respect to human rights violations in Tibet.
• Increased trade relations and interdependence with China forces India to play a balancing act between China
and Tibet.
• Lately, some Tibetan Buddhist scholars have termed India’s support to Tibet as a bargaining card against China
rather than out of humanitarian concerns.
Way Forward
• India must balance its interests with respect to China and Tibet.
• India must join Western nations in rightly highlighting the human rights violations and targeting of Buddhist
communities within Tibet.
• It must also continue to provide support to the Dalai Lama and Tibetan Government in Exile.

INDIA-EU
Introduction
India-EU relations date to the early 1960s, with India being amongst the first countries to establish diplomatic
relations with the European Economic Community. India and EU share various complementaries such as pluralistic
society, market economy and political democracy.
Views
• S. Jaishankar-
Recognising that we live
in a rebalancing,
multipolar world, both
India and the EU should
aim to build a more
‘compact’ relationship to
engage with this new
reality.
• Stefania Benaglia- Post
Galwan Clash India is
waking up to the fact that
in today’s fragmented
world, the power of any
aspiring global player
depends on the number
and quality of its bi- and
multilateral
relationships. In this
context, the EU is a useful
partner India can rely on. At the same time, the EU needs a strong partnership with India to meet its leadership
objectives of becoming a global actor and tackling climate change.
Why in news- 15th annual summit in July 2020
• India and the European Union (EU) held their 15th annual summit in July 2020, after a gap of more than two
years.
• During the leaders meeting in May 2021, India and EU relaunched FTA talks, signed comprehensive
connectivity partnership.
Outcome of the leaders meet in May 2021
• Resuming BTIA talks- India and the European Union agreed on to relaunch free trade negotiations by
resuming talks that were suspended in 2013 for the Bilateral Trade and Investment Agreement (BTIA).
• Connectivity- India and EU adopted Connectivity Partnership document outlining plans to cooperate on
digital and infrastructure projects, and signed the contract for the second tranche of $150 million from the
EU for the Pune Metro rail project.
• Vaccine cooperation: The leaders meeting also discussed Covid recovery plans and vaccine cooperation.
Leaders also highlighted the need to ramp up the production and delivery of Sars-Cov2 vaccines through
greater investment.
• Investing in India-EU Strategic Partnership- The leaders discussed the need for a reformed, renewed and
effective multilateral system, which is fit for tackling current and future global challenges and reflects
contemporary realities. For this India and EU agreed to advance the implementation of the actions set out
in the India-EU Roadmap 2025.
Outcome of annual summit in July 2020-
1. India-EU Strategic Partnership:

- A Roadmap to 2025 has been endorsed between India and EU as a common roadmap to guide joint
action and further strengthen the Strategic Partnership over the next five years.
- safer, cleaner and more stable world-Both have a common interest in each other's security,
prosperity and sustainable development. They can contribute jointly to a safer, cleaner and more
stable world.
2. Trade Pact:
- Both sides have agreed to launch a high-level trade dialogue to foster progress on “balanced,
ambitious and mutually beneficial” trade and investment agreements, address trade irritants and
discuss supply chain linkages.
3. Defence and Security Cooperation:
- Both sides agreed to launch a new maritime security dialogue.
- The EU and India agreed to cooperate in counter-piracy military operation in the western Indian
Ocean.
- India’s Central Bureau of Investigation (CBI) and Europol launched negotiations to combat
organised crime and terrorism.
4. Civil Nuclear Cooperation-A civil nuclear cooperation agreement was signed which will focus on research
and development cooperation for peaceful uses of nuclear energy and on new ways of using nuclear energy
5. Both side signed A joint declaration on circular economy and resource efficiency
Areas of cooperation between India Europe

Geostrategic-
• The uncertain US policy outlook under former President Donald Trump, the upending of the liberal
multilateral order and the rise of an assertive China has led both India and EU to realise that a substantive
engagement was imperative.
• On China- For both India and the EU, the rise of China presents challenges that need to be addressed
specifically. According to Portugese foreign minister Augusto Santos Silva, India is one of EU’s key partners
in Asia, not China, which he described variously as a “selective partner," “competitor" and “systemic rival".
• On Indo-Pacific- EU has unveiled its European strategy for the Indo-Pacific in which India has assumed central
place. According to Riva Ganguly Das, Secretary (East) in the MEA, “Europe’s embrace of the Indo-Pacific
underlines the growing recognition of the region’s importance and unfolds new opportunities for
cooperation with India,”
• Synergy of vision: There is synergy between India’s vision of Indo-Pacific and European strategy for the Indo-
Pacific. Both aims to evolve a common rules-based order that applies to all individually and also to the global
commons which must also respect sovereignty and territorial integrity, as well as equality of all nations,
irrespective of size or strength.
Economic cooperation
• India’s advancement: In its 2018 Strategy on India document, the EU acknowledged its interest in promoting
India’s advancement and treating India on an equal footing — “A strong modernisation partnership between
the EU and India should also support the EU’s job creation, growth and investment objectives, and help
promote sustainable connectivity for Europe and Asia”
• Trade-The EU as a bloc of 28 countries is India’s largest trading partner. while India is the EU’s 9th largest
trading partner. In 2018-19, bilateral trade totalled $115.6 billion, with exports worth $57.17 billion and
imports worth $58.42 billion.
• Indian companies-Around 6,000 European companies are present, directly employing 1.7 million people and
indirectly employing 5 million people in India.
• FDI-the EU is the largest foreign investor in India. Over the April 2000-March 2020 period, foreign direct
investment inflows from the EU to India were valued at US$ 109.55 billion
• India is benefiting from the unilateral preferential tariffs under the EU Generalised Scheme of Preferences.

Developmental partnership-
• India-EU development cooperation spans several decades and encompasses issues like health, education,
poverty reduction, water and sanitation.
o Since 1976, the European Commission has committed 2 billion euro (US$ 2.4 billion) in development
cooperation to India.
o Since 2014, the India–EU partnership has changed from the donor-recipient paradigm to that of
cooperation through several instruments such as loans from European Investment Bank.
• Sustainable Development: Another key area of development cooperation is the 2030 Agenda for Sustainable
Development. India and the EU are working closely on several fronts that cover the Sustainable Development
Goals (SDGs) — such as the smart cities initiative (SDG 11), clean water and sanitation (SDG 6) and climate
action (SDG 13).
o Climate change: The two have become key stakeholders in global efforts to combat climate change
through the framework of Clean Energy and Climate Change Partnership, 2017
Science and Technology cooperation
• Both sides have an Agreement on Scientific and Technological Cooperation to expand scientific and
technological cooperation aimed at strengthening their collaboration in this area in the next five years(2020-
2025).
• Horizon 2020: Both have initiated joint research projects-‘Horizon 2020’ related to climate change and polar
research.
Defence and security cooperation
• Shared objective: EU and India have agreed to strengthen cooperation and work towards tangibles outcomes
on shared objectives such as counterpiracy, counter terrorism - including counter radicalisation - and cyber
security.
• The new Information Fusion Centre – Indian Ocean Region in New Delhi (IFC – IOR) has recently linked up
with the Maritime Security Centre - Horn of Africa (MSC – HOA) established by the EU NAVFOR Atalanta
• Combating terrorism-India and the EU adopted a declaration to counter terrorism at the 14th India-EU
summit.
• Counter-piracy operations: Both sides conducted the maiden Indian Navy and European Union Naval Force
(EUNAVFOR) exercise in the Gulf of Aden in June 2021. It was aimed at enhancing cooperation in counter-
piracy operations and protection of vessels deployed under the charter of World Food Programme.
People to people
• Migration & Mobility- Both sides have signed Joint Declaration on Common Agenda on Migration and
Mobility (CAMM)
Parliaments, Civil Society
• A Delegation for Relations with India (D-IN) was formally constituted in the European Parliament (EP) in 2007
to follow relations with India
• India-EU Think Tank Twinning Initiative- the exchange of ideas on issues of core relevance for the India-EU
Education & Culture
• Over 50,000 Indian students are currently enrolled in various European universities, many of whom are
supported by the EU's Erasmus Mundus scholarship programme for higher education.
Multilateral forums
• India and the EU have emerged as important stakeholders in the multilateral global system. India and EU are
partners in climate change negotiations, G-20 etc. Support of EU is critical for India’s claim on permanent
seat of UNSC.
Issues in India EU relation
• Trade-currently India accounts for only 1.9% of EU total trade in goods in 2019, well behind China (13.8%)
• Broad-based Trade and Investment Agreement, (Covered below)
• While India’s bilateral relations with EU member states — like Germany, France and the UK —
developed substantially, it did not lead to the expected intensification of ties with the grouping.
• EU on CAA and article 370: The European Parliament was critical of both the Indian government’s decision
to scrap Jammu and Kashmir’s special status in 2019 and the Citizenship (Amendment) Act.

• Protectionism: The EU is critical about India’s “protectionist” measures on tariffs and the termination of
bilateral investment treaties with EU member states
• Rise of anti-migration and ultra-nationalist sentiment in Europe after refugee crisis and rise in trade
protectionism and resentment against globalization has strengthened anti EU sentiments as manifested in
Brexit.
• Green pass: Recently EU has initiated “Green pass’ system and excluded Indian Covishield. EU’s drug
regulator, the European Medicines Agency (EMA), has approved Vaxzevria — as AstraZeneca’s shot is known
outside India but Covishield has not yet figured in its approval list as yet despite being approved by the World
Health Organisation.
Broad-based Trade and Investment Agreement (BTIA)

What is it?
• It is a proposed FTA between India and EU. The negotiations began in 2007.
• So far, 15 rounds of negotiations have been held alternately at Brussels and New Delhi. The last meeting
was held in the week of 13th May, 2013 in New Delhi.
• The negotiations cover Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary
Measures, Technical Barriers to Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation,
Competition, Trade Defence, Government Procurement, Dispute Settlement, Intellectual Property Rights &
Geographical Indications, Sustainable Development.
Roadblocks in negotiations
Trade in goods-
• India’s concerns: The EU has demanded the lowering of tariffs on wines, spirits, dairy and automobiles, but India
has raised concerns that this could result in European imports flooding the market without any reciprocal access
to the European market.
• Lowering of non-tariff barriers: Similarly, India has demanded the lowering of non-tariff barriers in the sanitary
and phyto-sanitary sectors, and technical barriers imposed by the EU. The strict labelling and trademarking norm
imposed by the EU has led to the reduction of Indian exports to the European market
• Legally binding clauses: India has concerns about legally binding clauses on human rights, and social and
environmental and labour standards in EU.
• IPR-
- Strengthen its IPR regime: The EU expects India to strengthen its IPR regime, which may have a critical impact
on India’s vast pharmaceutical and generic drug sector.
- Ever-greening and exclusivity: Indian legislation bans both “ever-greening of patents and the exclusivity of
test data saying they jeopardise the sale of low-priced generic drugs and chemicals”. Also, the EU’s demand
of ‘data exclusivity’ was rejected by India.
• Data-secure country-
- Data secure country status: EU has not given data secure country status to India. Without this, the flow of
sensitive data can be hindered, increasing operating costs for Indian businesses in the EU.
- Data-privacy standards: However, given EU concerns over its regulatory norms and data-privacy standards,
it remains highly unlikely that the grouping will agree to this demand.
• Services sector-
- Greater access to market: While India has demanded greater access to the European market under Mode 1
and 4, the EU has demanded increased access to the Indian economy under Mode 3.
- Giving work permits and visas were primarily the competence of individual EU member states, so the EU
could not commit much. Moreover, the EU had different qualifications and professional standards. Both
these factors made the trade deal less attractive for India.
• Investor-State Dispute Settlement mechanism: Another contentious aspect is the Investor-State Dispute
Settlement mechanism in which EU wants detailed provisions while India is reluctant to accept this provision.

• Bilateral investment treaties: The EU is also uneasy about India’s termination in 2016 of existing bilateral
investment treaties (BIT), with countries like France and the UK to renegotiate older pacts on the basis of a new
model of the BIT approved in 2015.
• Lack of political will-The differences that arose during the trade and investment talks were too wide to be
overcome without a political push from the higher level.
• The arrest and trial of Italian marines in India led to a backlash in the EU. The ban on Indian Alphonso mangoes
and four other vegetables due to the finding of pests invited a strong reaction from India. Both these issues with
different levels of gravity led to the deterioration of bilateral relations in the last decade and indirectly impacted
the revival of trade talks.
Way forward
• Negotiators from both sides must look beyond the multiple differences to focus on the
complementarities.
• India and the EU should begin by negotiating less difficult sectors and aim for greater cooperation
in new areas like green technology and artificial intelligence, which could lead to a more balanced
outcome in the talks.
• India’s pharmaceutical manufacturing capabilities coupled with access to European healthcare
technologies can provide new avenues for enhancing partnerships and promoting innovation
between the partners
Conclusion
The conclusion of the BTIA will not only strengthen India and the EU’s global standing but can also provide
an opportunity to further integrate their partnership on various shared goals like green economy,
sustainable development and resource efficiency.
Recent updates on BTIA

• Mutually beneficial trade : At the 2020 India-EU summit, both sides “reaffirmed their commitment to work
towards a balanced, ambitious and mutually beneficial trade and investment agreements” and established
a new mechanism of a ministerial level dialogue to “provide political guidance to the bilateral trade and
investment relation and continue the dialogue on a regular basis.
• During Leaders Meet in May 2021, India and EU announced resumptions of talks.
INDIA-UK Free Trade Agreement

• In 2020, India and the UK affirmed their shared commitment towards a Free trade Agreement during the
14th virtual Joint Economic and Trade Committee (JETCO) meeting. They also agreed to an early harvest
scheme or limited trade agreement to lower tariffs on small set of goods apart from easing rule for select
service
Significance
• After RCEP -India after deciding not to be part of RCEP there is renewed focus on trade deals with the US,
the European Union and the UK, which are key markets for Indian exporters and are keen to diversify their
sourcing.
• After Brexit, these talks would help in intensifying the beneficial aspect of the UK as a trading partner of
India.
Brexit Trade Deal

• Britain and EU signed trade deal in December 2020. As per the deal, goods trade - roughly half of the $900
billion of annual EU-UK commerce - will remain free of tariffs and quotas. However, goods moving between
the UK and the EU will be subject to customs and other controls, and extra paperwork is expected to cause
major disruptions.
• Further, the agreement includes transition periods and review clauses, meaning that more negotiation lies
ahead on fisheries, trading rules

Positive impact on India

• Negotiation of Bilateral Relations in terms of trade and commerce:
o Officials from both the United Kingdom and India have stated that Brexit would make
the conclusion of a bilateral free trade agreement far simpler.
o Brexit would result in a situation in which the UK and EU compete for trade with India and enter into
long-term agreements that would result in increased trade growth.
• Food and Agro business sectors-Since the UK is a net importer of food from the EU, Indian companies can
find opportunities in the food and Agro sectors.
• Benefits to service sectors-Indian can benefit from opportunities in service sectors like IT, architecture,
research and development and engineering in both the markets as the EU-UK pact does not cover services.
• Help students and professionals- After Brexit, the same set of rules and opportunities will apply to students
from the EU and India. Since the UK will no longer have to favour EU nationals, Indian professionals will
compete on merit rather than nationality after Brexit.
• Skilled working-age population-India, as one of the world's largest professional labour markets with a
population fluent in English, may have a significant advantage.
• Benefits to Indian companies-Since many Indian companies use the UK as a gateway to Europe. After Brexit
it can give additional benefits to Indian businesses, such as tax cuts, simplified regulations, and access to new
markets.
Challenges for India
• Export- Indian exports to both the UK and Europe have been on a downtrend. So, there is a heightened
chance of this trend being amplified over the near term given the possibility of disturbances in currencies
and the UK facing a further slowdown in growth.
• Negative effects on economy-Brexit, and the confusion it creates, would have a wide range of negative
consequences for the Indian economy in general, and Indian companies in the UK in particular.
o For example, there are approximately 800 Indian businesses in the UK at the moment. Many Indian
companies enter the European market via the UK. These businesses' direct entry to the EU market
will be cut off if Britain left in a shamble.
o Many Indian companies have European headquarters in London and are listed on the London Stock
Exchange. This advantage would be lost as a result of Brexit.
• Rupee may depreciate because of the double effect of foreign fund outflow and dollar rise.
• Negative effects on IT sector-Brexit will have a negative impact on the $108 billion Indian IT sector in the
short term.
• FDI might get affected-With the UK being among the largest source of foreign direct investment to India.
The UK's decision to exit the EU is expected to have an effect on business and investor trust, and outbound
investments from India to the UK could be temporarily halted.
• Migration of professionals-There will be a decrease in migration of professionals and movement of Intra-
Corporate transferees (ICTs) from India to the UK due to Brexit.
Conclusion
• Since the EU sees India playing a larger role in regional and global security-economic architecture, it is
developing a new strategy for India. Brexit would thus have a negative effect in the short term, even though
Brexit would provide India with an opportunity to reset its trade and economic ties with the UK and the EU
in the long run.
The EU–Vietnam Free Trade Agreement

Introduction
• A new landmark free trade agreement between Vietnam and the European Union entered into force on 1
August 2020. It is the most comprehensive agreement to be put in place to date between the European
Union and any ASEAN Member State.
Provisions of EU–Vietnam Free Trade Agreement
• Preferential treatment: The agreement provides expansive preferential treatment for both goods and
services, recognition and protection of geographical indications for over 200 products, liberalized
government procurement rules, and obligations for antitrust and mergers.

• Sustainable development: It also contains sustainable development provisions including legally binding rules
on climate, labour and human rights.
• Removal of tariffs: At the core of the EUVFTA is a near complete removal of tariffs between the EU and
Vietnam, including the elimination of more than 99% of customs duties within 10 years. Immediately upon
entry into force, 65% of EU exports to Vietnam and 71% of Vietnamese exports to the EU will be duty free.
• In service sector, many of the concessions offered by each party exceed those provided under the WTO trade
in services agreement, including packaging services, building-cleaning services, interdisciplinary R&D
services, and nursing services.
Effects on India
• India’s exports of footwear, garments, marine products and furniture to the European Union stand to be the
worst-hit.
• In the apparel sector India will need to pay 9 percent duty (in the EU), while Vietnam will not pay any duty.
• EU may pressurize India to expediate conclusion of BTIA and inclusion of issues such as government
procurement, labour standards and sustainability which India finds difficult to accept.
• Advantageous location for investments: The EVFTA will also make Vietnam a more advantageous location
for investments moving out of China due to the China-US trade war, instead of India.
WAY FORWARD
Foreign Policy
• Intensified dialogue and deliberations, a realignment of trade policies and emerging prospects of
collaboration in the post-pandemic world provide India and the EU an opportunity to transform their
economic ties into a robust strategic partnership.
Security
• Focusing on exchange on strategic priorities, security issues, crisis management and peacekeeping.
• Strengthen cooperation in non-proliferation and disarmament, maritime security, counter-terrorism and
cyber security.
Trade and investment, Business & Economy
• Export potential: India has an untapped export potential of $39.9 billion in the EU and Western Europe. Both
sides need to optimally use the Investment Facilitation Mechanism (IFM) established in 2017 to promote
and facilitate EU investment flows into India
Climate change and clean energy
• Clean Energy: Strengthen the India-EU Clean Energy and Climate Partnership agreed at the 2016 Summit
and prepare and implement a new work program.
• Low greenhouse gas emission: Additional focus should be on safe and sustainable low greenhouse gas
emission energy security, integration of electric vehicle charging infrastructure in the energy grid, energy
research & innovation.
• Healthcare: The linking of research efforts can help India and the EU leverage their capacities to find
innovative solutions for healthcare. Overall, this will also present new opportunities for joint ventures and
enhanced trade between the two sides.
• Multilaterally, India and the EU can work to strengthen the World Health Organisation and bring together
various stakeholders, health experts and global economic institutions to prepare a coordinated approach to
handle the current and any future health crisis.
Conclusion
• A close bilateral relationship between India and the EU has far reaching economic, political, and strategic
implications for the world order in crisis. Both sides must recognise this potential and use strong political will
to expand bilateral ties. As outlined in the EU's India strategy, which was adopted in 2018, India and the EU
should expand their relationship beyond a "trade prism," acknowledging significant geopolitical and strategic
convergences.

INDIA-JAPAN RELATION
UPSC Question:
The time has come for India and Japan to build a strong contemporary relationship, one involving global
and strategic partnerships that will have a great significance for Asia and the world as a whole.’
Comment. (CSE mains -2019)
Swami Vivekananda, Gurudev Rabindranath Tagore, Mahatma Gandhi, Neta ji Subhash Chandra Bose..... many
Indians have contributed in strengthening India's relationship with Japan. And that's why after World War-2, India
and Japan's relationship grew stronger.- PM Modi
Iit would not be a surprise if in another 10 years, Japan-India relations overtake Japan-U.S. and Japan-China
relations. --- Shinzo Abe, book Toward a Beautiful Country
Relations between Japan and India have the biggest potential in the world... A strong Japan benefits India and a
strong India benefits Japan.” “I believe until and unless India and Japan have strong relations Asia can never
develop.- PM Modi
In my opinion, if all our rich and educated men once go and see Japan, their eyes will be opened.
— Swami Vivekananda
Why In The News: Indo-Japanese partnership during COVID-19 relevant for global stability: PM Modi
Introduction:
● Traditionally strong: India–Japan relations have traditionally been strong. The people of India and Japan have
engaged in cultural exchanges, primarily as a result of Buddhism.
● The ideals of democracy like tolerance, pluralism and civil freedom are the same in both of these countries.
They are one of the oldest democracies in Asia, having a high degree of congruence of political, economic
and strategic interests, view each other as partners that have responsibility for, and are capable of,
responding to global and regional challenges.
● Aid: India is the largest recipient of Japanese aid. India is a big market for Japanese firms. Japanese firms
were some of the first firms to invest in India.
Background:
● Diplomatic ties between India and Japan were established in 1952 with the signing of the Peace Treaty post
World War II.
● The 1952 Peace Treaty between India and Japan was followed by a Cultural Agreement signed in 1956
between the two countries.
● A Comprehensive Economic Partnership was concluded in 2011 for economic and commercial relations.
● In 2016, Japan announced its Country Assistance Policy providing Official Development Assistance (ODA) to
build India’s infrastructure.
● Visa on arrival: In 20218, India announced a “visa on arrival” scheme for all Japanese travellers.
● Logistics agreement: In 2020, India and Japan signed a logistics agreement which will allow the Armed Forces
of India and Japan sides to coordinate in services and supplies issues.
o This agreement is known as the Acquisition and Cross-Servicing Agreement (ACSA).

● Collaboration in Initiatives: In April 2021, India, Japan and Australia formally launched the Supply Chain
Resilience Initiative (SCRI). It will help in a move to counter China’s dominance of the supply chain in the
Indo-Pacific region.
Areas of Cooperation:
Covid-19 Pandemic:
India and Japan had previously agreed to work together with other countries to deal with post COVID-19 related
challenges with the India-Japan special strategic and global partnership as the basis.
○ Emergency aid: Japan is extending its emergency aid of nearly $14.8 million, which includes
additional medical supplies to India to help its “friend” fight the Covid-19 pandemic
○ They are further calling for investigation into the origins of COVID-19 virus.
○ The India-US-Japan-Australia Quadrilateral initiative, or Quad, at its maiden summit decided to
build a first-of-its-kind joint vaccine supply chain to address the current and any future pandemic
situations in the Indo-Pacific region.
Indo-Pacific:
● Geopolitical interests in the Indo-Pacific region: Together, India and Japan act as a anchor of the two ends
of the Indo-Pacific.
o Given their growing concerns about China, it’s going to be a continued progress building on landmark
past agreements for Indo-Pacific region.
● Countering Rising China: Analysts feel the looming presence of China across the strategic landscapes of India
and Japan have guided the strategy to enhance collaboration in an accelerated manner.
o China due to the nine-dash line, has developed conflicts with Indonesia, Malaysia, Australia,
Philippines, Vietnam and Taiwan.
o The tensions along the Line of Actual Control (LAC) in 2020 had posed the biggest national security
challenge to India in at least 20 years.
o The clashes in Galwan Valley in eastern Ladakh have claimed 20 Indian lives, the first incident of
fatalities on the India-China border in 45 years.
● Maintaining Rule base order: The two countries' vision for the Indo-Pacific is based on a rules-based order
that respects sovereignty and territorial integrity of nations, ensures freedom of navigation and overflight as
well as unimpeded lawful commerce.
● Japan’s Free and Open Indo-Pacific: It is a concept given by Japanese PM’s during their India Visit.
o Which aim prepares Japan to deal with the fast changing global and regional order and threats from
China and North Korea.
o It includes creating a “free and open” Asia-Pacific region which connects parts of eastern Africa,
south Asia and southeast Asia with the western Pacific Ocean region and Japan.
Connectivity:
● The Asia-Africa Growth Corridor (AAGC): It is a joint collaboration of India-Japan, for Infrastructure
development in Asia-Africa region. The AAGC will give priority to development projects in health and
pharmaceuticals, agriculture and Agro-processing, disaster management and skill enhancement.
o The connectivity aspects of the AAGC will be supplemented with quality infrastructure.
o As per the vision document, the four key pillars of AAGC include:
▪ Enhancing Capacity and Skills
▪ Quality Infrastructure and Institutional Connectivity
▪ Development and Cooperation projects
▪ People-to-people partnership.
● Blue Dot Network: The BDN was formally announced on 4th November 2019 at the Indo-Pacific Business
Forum in Bangkok, Thailand. It is led by the USA along with Japan and Australia.
o Recently, The group of the US Senators, in a letter, has asked India to join the Blue Dot Network
(BDN) which will help India to make an impact on economic development through a various
international projects.

o The Blue Dot Network (BDN) is a multi-stakeholder initiative formed by the United States, Japan,
and Australia to provide assessment and certification of infrastructure development projects
worldwide.
▪ On measures of financial transparency, environmental sustainability, and impact on
economic development, with the goal of mobilizing private capital to invest abroad.
● Developing infrastructure: All Across Asia and Africa in order to provide a counterweight to China both
countries are investing in infrastructure.
o They now have to find a more effective way of translating this convergence of goals into brick and
mortar projects that actually make a difference on the ground.
● Bilateral relationship for regional stability: Bilateral relationship between two countries have major value for
regional stability.
o Until and unless India and Japan have strong relations it is hard to give stability in Asia.
Partnership at Multilateral forums:

● International Cooperation Organizations: India and Japan both are cooperating in various international
organisations including the UN where both are supporting the UN security council expansion through the
grouping like G4.
● The G4 nations comprising Brazil, Germany, India, and Japan are four countries which support each other's
bids for permanent seats on the United Nations Security Council.
Environment:
● Climate Change: Japan is collaborating with partner countries by utilizing Japan's advanced technology and
know-how.
o It will create co-innovation reflecting on their challenges and needs which will contribute to the
global reduction of the GHG implementation measure for climate change.
Economic
● Investment Support: Japan is 5th largest investor in the Indian economy with 6.6% to India’s total FDI inflows.
India’s 14th largest import partner and India’s 19th largest export partner. Foreign direct investment (FDI)
witnessed a ninefold increase from 2007.
o Key imports: India imports the Nuclear reactors, electrical machinery, iron and steel, organic
chemicals.
o Key Export: Exports to Japan include mineral fuels and mineral oils, organic chemicals and natural or
cultured pearls.
● Bilateral agreement: The Comprehensive Economic Partnership Agreement (CEPA) came into effect in
February 2011. Apart from accelerating business activities, the deal aimed to eliminate tariffs on 90 percent
of Japanese exports to India, such as auto parts and electric appliances.
● Trade partnership: India’s proportion of Japan’s total trade stood at 1.1 percent in 2018 while Japan’s share
of India’s trade was 2.1 percent ..
● North-East Development: Japan invested to improve National Highway (NH) 40 in the state of Meghalaya.
● Joint Foreign Projects: In May 2018, both jointly plan to set up the East Container Terminal at Colombo port
for Sri Lanka’s first LNG terminal.
● Asia Africa Growth Corridor: In the 2017, Asia Africa Growth Corridor (AAGC)—effort started to soft-balance
Belt and Road Initiative (BRI) project.
Defence:
● Security Cooperation: India and Japan signed a joint declaration on security cooperation signed in 2008. `It
proposed the establishment of meetings between defence ministers, military-to-military talks, navy-to-navy.
● Technical cooperation: Both sides worked to build military-technical cooperation (MTC) that increases
mutual dependence.
● Modernising Indian Arm force: Japan hopes to assist India in modernising military capabilities via its US-2
amphibian aircraft and Soryu submarines.
● Joint military drills: Exercise Dharma Guardian brought Indian Army and the Japanese Ground Self Defence
Forces (JGSDF) together in 2018.

1. Air forces of both countries engage in Exercise Shinyuu Maitri, while coast guards through Exercise
Sahyog-Kaijin.
2. Japan also participated in Malabar naval exercises.
Space cooperation:
● In March 2019, India and Japan conducted their first Annual Bilateral Space Dialogue, for enhancing bilateral
cooperation in outer-space.
Bilateral Partnership:
● In Post-cold war time: In the Cold War time, both countries kept distance from each other. Reasons were
India’s distancing from the Japan–US alliance, Policy of non-alignment.
● After the collapse of the Soviet Union: Soviet union's collapse and a severe balance-of-payments crisis, Indian
leadership favoured closer ties with Japan.
● New Policy Initiative: In 1993 India announced the ‘Look East Policy’. India’s ‘special strategic and global
partnership’ with Japan is a grand strategy in the post-Cold War era.
o The ‘Act East Policy’ announced in November, 2014 is the upgrade of the “Look East Policy”.
o It is a diplomatic initiative to promote economic, strategic and cultural relations with the vast Asia-
Pacific region at different levels which further put impetus for better relationship build up with
Japan.
● Elevation of tie’s: In 2014 both elevated ties to ‘special strategic and global partnership,’
● 2+2 Arrangement: In 2016, India started ‘2 + 2’ arrangement for foreign and defence ministries. This was
elevated to the ministerial level three years later, signalling its special status.
● Covid19 pandemic: The partnership will help to tackle COVID-19 pandemic. For a pandemic situation the
Supply Chain Resilience Initiative between India, Japan, Australia has been started.
Supply Chain Resilience Initiative(SCRI):
Supply Chain Resilience Initiative(SCRI):

● The SCRI aims to create a virtuous cycle of enhancing supply chain resilience with a view to eventually
attaining strong, sustainable, balanced and inclusive growth in the Indo-Pacific region.
● Objectives :
○ To work out a plan to build on the existential supply chain network.
○ To attract foreign direct investment to turn the Indo-Pacific into an “economic powerhouse”.
○ To build a mutually complementary relationship among partner countries.
● The SCRI, first proposed by Japan, to reduce dependence on China amid a likelihood of returning of
supply chains in the Indo-Pacific region amid the Covid-19 pandemic.
● The Indo-Pacific visions: It is based on rule of law and respect for sovereignty and territorial integrity, Japan
started Indo-Pacific Oceans’ Initiative (IPOI).
o It is to ensure a free, open and inclusive region in which countries both inside and outside (countries
who have stakes in this region) the Indo-Pacific region would participate.
Agreements:
● Treaty of Peace (1952): Being one of the first treaties between India and Japan, it restored the full diplomatic
relation between two countries after World War II.
● Agreement for Air Service (1956): An agreement for the purpose of establishing air services between and
beyond their respective territories. Accordingly appointed their respective representatives for this purpose.
● Convention for the Avoidance of Double Taxation (1960): To avoid double taxation between the two
countries for The income tax, the super tax and the surcharge, imposed under the Indian Income-tax Act,
1922.
● Agreement for Cooperation in the Peaceful Uses of Nuclear Energy (2017): This agreement provides a
necessary legal framework for the transfer of technology and material for non-military use.

Issues in relationship:
● Indian foreign policy strategy: It is driven by an overarching preference for strategic autonomy and by three
broad priorities: security, economic development, and status That put significant restraints in further
improvement in relation with Japan because India want to maintain the strategic autonomy.
Economic:
● Economic Negotiation: Japan hopes to assist India in modernising its military capabilities through the sale of
its US-2 amphibian aircraft and Soryu submarines. Also has offered to transfer technology and proposed
setting up a plant in India but the two sides remain at a stalemate over pricing issues.
● Trade Dispute: The recent verdict delivered against India by the World Trade Organization (WTO) on a
dispute on Iron and steel imports from Japan has made policymakers concerned about safeguard duties
imposed by India on iron and steel imports from Japan
● The Regional Comprehensive Economic Partnership(RCEP): After years of negotiations, India recently pulled
out of the proposed RCEP trade deal over unresolved core concerns. While Japanese establishment thinks
India should join it to counter China.
● Overdependence with China: With Beijing taking advantage of the vulnerability, or the dependence on
China in trade, resorting to economic coercion, Japan needs to strengthen its economic security as part of
its strategy to ensure national security for more participation in Indo-Japan collaboration.
Osaka declaration:
● Indian refusal: Recently India refused to sign the “Osaka Track”, a framework to promote cross-border data
flow with enhanced protections, launched at the G20 summit in Japan.
○ The initiative seeks to standardise rules of global movement of data with enhanced protection for
personal information, intellectual property and cybersecurity.
○ India’s primary concern on terrorism was not given due prominence at G-20 Osaka track and India
refuse to join it.
Indo-Pacific:
● Different priority: The Indian establishment has more focus on Indian Ocean region while the Japanese
establishment has more focus on the Pacific ocean region, which creates the problem of differential
priority which leads to a non-coherent strategy overall.
Significance of relationship for India:

● Japan as security provider: : The US has declassified its Strategic Framework for the Indo-Pacific in which it
has termed India as the net provider of security in the region but to India Japan can be the stability
provider in the Indo-pasific region to counter the China.
● Containing China: In the past several years , India and Japan have collaborated to build infrastructure in
Iran and Africa, provide vital aid to Myanmar & Sri Lanka and hammer out a common Association of
Southeast Asian Nations outreach policy in an attempt to counter China’s growing influence in these
corners of the globe.
● Act East Policy: The ‘Act East Policy’ in India was announced in November, 2014 and it is the upgradation of
previous policy of the Look East Policy which was announced in 1991.
○ Under the policy of Act East, India-Japan Act East Forum, which aims to provide a platform for
India-Japan collaboration under the rubric of India’s Act East Policy and Japan’s Free and Open
Indo-Pacific Strategy.
● Investment and Technology: Japan has provided about $4 billion as annual ODA (Official Development
Assistance). This supports projects for critical infrastructure and the green economy. This includes the
ongoing high speed railway project. With these, India remains interested in leveraging its special strategic
partnership with Japan.
○ This helps secure FDI, modern technology, and expand access into markets which it may have lost
by keeping away from RCEP and TPP.
Collaboration At UNSC:
● Objectives: India and Japan In bid to become a permanent member of the UN Security Council collaborating
on multiple initiatives.
● G-4 Countries: The UN Security Council reform is an important issue for Japan and India. Together with other
G-4 members, i.e. India, Germany and Brazil, has been working for the realization of UNSC reform.

● Expansion of the United Nations Security Council: Both countries have resolved to work towards early reform
of the United Nations, including both permanent and non-permanent categories.
● UNSC Current Membership: China, France, Russia, Britain and the US are the five veto-wielding permanent
members of the UNSC. There are also 10 non-permanent members, with five elected each year to serve two-
year terms.
● An open, rule-based Order: Together they will seek reforms in the United Nations Security Council, an open,
rule-based and balanced regional architecture with deeper regional economic integration and connectivity,
● Arc of freedom and prosperity: Japan has been cooperating with countries of South East Asia, Central Asia,
and Central and Eastern Europe, which are developing democracy and market economy, through dialogues
as well as Official Development Assistance (ODA).
Eight-fold Initiative for Strengthening Japan-India Global Partnership

In order to realize the full potential of their global partnership for peace and prosperity, the Japan and India decided
on the following Eight-fold Initiative in April 2005:
● Enhanced dialogue and exchanges: The two leaders recognize the importance of regular dialogue and
exchanges in mutual understanding.
o It is decided to hold annual Prime Minister level meetings, alternately in the two capitals.
o Also shown intention to promote regular ministerial level exchanges, including those between their
Foreign, Defence, Trade, Finance and ICT Ministers
● Comprehensive economic engagement: The two sides will take several measures for broadening and
deepening economic and trade cooperation between Japan and India based on the complementarities of the
two economies,
● Enhanced security dialogue and cooperation: Bothe countries reaffirm their desire to further develop
dialogue and exchanges between the two countries in the security and defence fields, including through full
utilisation of the Comprehensive Security Dialogue.
● Science and Technology Initiative: Japan and India, as two countries seeking to transform into knowledge-
based societies. the areas of their respective strength, and will work together to exploit the enormous
potential for cooperation in this field
● Cultural and academic initiatives: Strengthening of people-to-people contacts particularly among the youth,
provides a stronger basis for the relationship between the two countries.
● Cooperation in ushering a new Asian era: The two countries realize and appreciate the importance of the
respective roles and responsibilities of their countries in promoting peace, security and prosperity in Asia.
● Cooperation in UN and other international organizations: Cooperation having vital importance to the role of
the United Nations in world peace, stability, and prosperity, and reaffirm their intention to work together for
the early realization of U.N. reforms
● Responding to international challenges: Recognizing the threat posed by terrorism and the importance of the
international community working unitedly to counter this menace, the Governments of Japan and India will
further consolidate their existing cooperation.
CURRENT DIMENSIONS:
India-Japan ink mutual military logistics agreement

• Why in the news: Recently with Eye on China: India, Japan signed mutual military logistics pact
• What is about: The agreement establishes the enabling framework for closer cooperation between the
Armed Forces of India and Japan in reciprocal provision of supplies and services while engaged in bilateral
training activities, United Nations Peacekeeping Operations, Humanitarian International Relief and other
mutually agreed activities.
Significance:
• Access to Military bases: It will allow their militaries to access each other's bases for logistics support.

• Increasing Arms Force Reach: besides allowing militaries of the two countries to use each other's bases and
facilities for repair and replenishment of supplies.
• Help in Current Geo-Political Situation: The signing of the agreement comes when there is a bitter border
row with China, and rising concerns in the region over increasing Chinese assertiveness.
• Similar Agreement: In June 2020, India and Australia sealed a Mutual Logistics Support Agreement (MLSA)to
scale up their overall defence cooperation.
• India signed similar agreements with the US, France and Singapore.
• Strengthening Quad: In Nov 2017, India, the US, Australia and Japan gave shape to the long-pending "Quad"
to develop a new strategy to keep sea routes free of any influence.
Japan-India Foreign Ministers’ Strategic Dialogue

• Why in the news: 2+2 Dialogue will further cement India-Japan strategic relations.
Significance:
• Maintaining free Access: It will help to Cooperate On “Free and Open Indo-Pacific” and critical oceanic points
in the world.
• Multipoint cooperation: cooperation on Global Partnership and areas, including maritime security, trade
and investment, manufacturing, skill development, connectivity and infrastructure, health and wellness,
Indo-Pacific Ocean Initiative (IPOI) and UN Reforms.
• Capacity Building: It will promote cooperation in capacity building, research and development, security and
resilience in the areas of Critical Information Infrastructure, 5G, Internet of Things (IoT), Artificial Intelligence
(AI), among others.
• Adherence to Rule based Order: It has been discussed that for the free, open and inclusive Indo-Pacific
region collective efforts are necessary to maintain the rule based order.
Japan Provides Loan to India

• Why in the news: Japan gives India 225 bn Yen loan to fund metro expansion, water supply, crop
diversification projects.
Significance:
• Infrastructure Development: Japan will provide a 225 billion Yen loan for metro rail expansion in Delhi and
Bengaluru, crop diversification project in Himachal Pradesh and rural water supply in Rajasthan.
• Island Development: Grant to improve the power supply situation in Andaman and Nicobar islands. It is
the first overseas development assistance project of Japan for the islands and Separately to improve the
power supply.
• Working on climate change: The loan will help mitigate fluorosis in Rajasthan’s Jhunjhunu and Barmer
districts.
• Non-Governmental cooperation: SBI also signed a loan agreement with Japan Bank for International
Cooperation (JBIC).
• Tackling Pandemic: Japan’s COVID-19 measures for India, a 50 billion yen emergency assistance loan and
grant aid for medical equipment, This is a “budget support” to assist India’s policy objectives.
• Realising Make In India: It will assist in Make in India’ initiative. The loan is to promote smooth flow of
funds for the whole range of business operations of Japanese automobile manufacturers in India.
Way Forward:
● Stagnant bilateral trade: At $20 billion per annum, is just scratching the surface of the full potential for
greater economic integration. The figure has stagnated around this mark despite efforts from both sides to
push it up. Then, the balance of trade is skewed heavily in Japan's favour.
● Reducing dependence on China: The Japanese government is paying about 12 billion yen ($114 million) to
30 companies to increase production in Southeast Asia, in the first round of a multi-billion dollar program to
diversify supply chains due to minimizing chinese influence on Japanese geopolitics, such decision need to
take more urgently.
● Collaboration needs to increase under non-exploitative models of development: Both countries agree that
they should spend more and cooperate more closely to develop infrastructure across Asia and Africa. Both

need to increase their own influence as well as to offer these countries an alternative, non-exploitative
model of development.
● Transfer technology and military hardware: India and Japan hold joint military drills quite regularly and also
hold frequent high-level military dialogues but efforts to transfer technology and military hardware have not
yet borne fruit.
● Reducing the Ambivalence of Quad: India has been very ambivalent about the Quad, giving rise to the
impression that it has not yet made up its mind on whether to openly participate in what is widely regarded
as a grouping of democracies against a totalitarian China.
o To utilise the full potential of Quad India need to fully participate in this initiation without paying
unnecessary heed to strategic autonomy.
● India needs to speed up the project implementation: Due to regulatory forbearance and slow administrative
process compared to China, joint efforts are slowing down. Projects like The Bullet Train are likely to be
delayed over land acquisition, with some farmers objecting to the takeover of their land by the government.
● Need to Increase collaboration for Climate change: The two Governments need to strengthen their energy
and environmental cooperation including on sustainable development and environmentally sound
technologies. With ensuring increased focus on energy security, energy efficiency, conservation, and
pollution-free fuels.
● Expanding the cooperation: In the possible cooperation in areas like 5G, submarine cables, strengthening of
industrial competitiveness, diversification of supply chains and development projects in the northeastern
state.
Conclusion
• Overall, India-Japan has taken multiple important initiatives emphasizing the deep interest in both India and
Japan to further strengthen their security and strategic engagements. The two countries have built a strong
strategic partnership in the last decade.
• While China may have been a factor, but building this relationship was easier because of the absence of any
baggage, unlike, for instance, with the United States. But India and Japan also need to build a larger coalition
if they are to balance China effectively in the economic and defence sector.

INDIA – WEST ASIA
INTRODUCTION-
C. Rajamohan-
• After more than a half century of false starts and unrealized potential, India is now emerging as the swing
state in the global balance of power. In the coming years, it will have an opportunity to shape outcomes
on the most critical issues of the twenty-first century: the construction of Asian stability, the political
modernization of the greater Middle East, and the management of globalization.
BROAD OVERVIEW
• Indian foreign policy engagement in West Asia can be divided into two distinct phases, pre- and post-1991.
• PRE 1990- Prior to 1991 India’s engagement with the region was one of “political distance,” due to dynamics
of Cold War politics and the fact that India purchased the bulk of its hydrocarbons needs (15-25 percent)
from Russia.
• POST 1990- India’s engagement with the region began to increase and solidify in the early 1990s due to a
multitude of factors: the end of the Cold War, the disintegration of Soviet Union, and India’s growing demand
for oil and gas due to its accelerated economic development.
• India has balanced it’s relationship well with all pillars of West Asian geopolitics- United Arab Emirates
(U.A.E.), the Kingdom of Saudi Arabia, the Islamic Republic of Iran, and Israel.
SIGNIFICANCE
• ENERGY SECURITY- The Gulf Arab states provide 50 percent of Indian crude oil and 85 percent of its natural
gas requirements.
• DEFENCE COOPERATION- Israel is increasingly regarded not just as a “strategic defence partner” but as a
“model of counter-terrorism”. India has also strengthened strategic cooperation with Saudi Arabia and UAE.
India has signed Comprehensive Strategic Partnership with UAE and established Strategic Partnership
Council with Saudi Arabia to strengthen counter terrorism cooperation.
• CONNECTIVITY- projects such as INSTC, Chabahar port in Iran can provide connectivity to India to west Asia
as well as Eurasia.
• SECURITY- Ensuring the stability and security of the Persian Gulf region, including the protection of the large
Indian expatriate community.
• INVESTMENTS- The UAE government has committed USD 75 billion towards developing Indian
infrastructure. Recently, The NIIF entered into an agreement with a Dubai based firm for investment up to
USD 3 billion. The Saudi Arabia is planning to launch a $3 trillion sovereign wealth fund to invest in business
opportunities abroad. India offers both investment opportunities for the Saudi fund and remains a major
buyer of its oil which make the country an important economic destination for the Saudis.
• INDIAN DIASPORA- Gulf is one of the strategically important regions where more than 8 million Indian
diaspora community lives. One fourth of total Indian diaspora lives in this region. Security and wellbeing of
Indian diaspora is an important pillar of India’s West Asia policy.
• Maritime Security- Important sea lines of communications pass through the Persian Gulf. Thus, the region is
critical to counter traditional and non-traditional security threats in Indian Ocean Region.
• ECONOMIC COOPERATION- India has certain advantages here as India is prepared to “act west” at a time
when the Gulf countries are “looking east”. Both the Saudi camp and Iran want India as an economic partner
and a friend.
ISSUES
• DETERIORATING SECURITY ENVIRONMENT IN WEST ASIA- Intensification of sectarian conflict, terrorism, civil
wars in Yemen and Syria and the involvement of external actors can make India’s traditional Balancing Policy
difficult.
• SECURITY OF INDIAN DIASPORA- Reverse migration induced by COVID-19 and efforts of nationalisation of
workforce in GCC countries. Saudi Vision 2030 aim to skill and employ more nationals and limit the number

of expatriates. stringent labour laws, lack of human rights and absence of minimum wage provision and strict
visa and recruitment process results in exploitation of Indian workers.
• DELAY IN PROJECTS COMPLETION from Indian side dent investors’ confidence. Further, Indian companies
operating in the UAE also face problems due commercial regulations, labor laws and lack of transparency on
part of GCC businesses.
• TERRORIST FINANCING-Money from Saudi Arabia has been accused of funding Wahhabi Islamic groups
around the world. These groups are linked to radicalization and financing of terrorist activities in Kashmir.
• RISING CHINESE INFLUENCE- While a China-Iran-Pakistan-Russia-Turkey axis is not a reality yet, it could very
well take shape in the near future and pose a serious national security challenge for India. China is already
extending its activities in the Indian Ocean through “String of Pearls” network encircling India. The
emergence of a similar axis to India’s north – with a trans-Himalayan Quad and the proposed alliance of five
nations – would encircle India entirely and therefore, severely limit its outreach capabilities.
• Impact on Energy security- India imports more than 70% of the oil it needs. However, after the US strike
which killed General Soleimani the oil prices rose by 4%. An increase in the price of oil can lead to an increase
in the Current Account Deficit and erosion of forex reserves.
• Pakistan factor- Pakistan has close relations with many West Asian countries and especially with GCC
counties.
WAY FORWARD-
• LEVERAGING INDIA’S SOFT POWER- No major power has the kind of people-to-people socio-cultural
compatibility and socio-economic interdependence with countries of the Gulf region, in particular with
G.C.C. countries that India has.
• STRENGTHENING ECONOMIC RELATIONS- India’s West Asia engagement must focus on delivering on its
commitments and strengthening its presence as an economic and security partner. Timely completion of
projects and domestic business reforms to attract sovereign wealth funds from GCC countries should be on
top of government’s policy agenda.
o The success of Act East policy was mainly due to increased trade and commerce with South-East
Asian countries. On the same lines a FTA with GCC can increase trade with West Asia.
• CONTINUATION OF BALANCING POLICY- India should not step on intensifying fault lines in middle east
geopolitics. Traditional equidistance policy and maintaining cardinal relations with all powers has provided
rich dividend in the past and this needs to be continued.
• Independent Approach in the Region- India should adopt a flexible policy to maximize regional cooperation
with the great powers where our interest converges and minimize negative consequences when they
diverge.
• Leveraging Islamic Link- Shared historical, cultural and religious heritage can be leveraged for strengthening
economic and political relationships.
• Defence Diplomacy through active engagement with defence forces of West Asian countries and joint
defence production can improve India’s profile in the Region. The recent visit by Army Chief to UAE is a good
start.
• Increasing people to people contacts- Through liberalising visa norms, cultural exchange can boost tourism
as well as enhance India’s soft power in the region.
INDIA’S WEST ASIA POLICY
DURING COLD WAR-

• India’s policy on west Asia was shaped by prevailing geostrategic environment and cold war bipolarity. India
adopted policy of Non-Alignment and the major pillars of relationship were Arab Socialism, Anti colonialism
and India’s support for Palestine cause.
AFTER COLD WAR
• Post-cold war, Ideology, a protectionist economy, and advocacy of Third World concerns were junked;
national interest-oriented pragmatism became the overriding guiding principle.
• Balancing Policy: India ceased viewing West Asia through the prism of its issues with Pakistan and abandoned
defensive, reactive policy approaches. India also began to reach out to all West Asian countries without

picking and choosing between them, and on the basis of mutual benefit. This Balancing Policy enabled India
to have cardinal relations with all West Asian countries without having to step on any fault lines.
• Look West policy: India initiated Look West policy in 2005. The key focus areas were energy security,
investment opportunities and Indian diaspora. Collectively, the G.C.C. countries have become India’s
preeminent oil and gas supplier and leading trade partner whereas Indians are the largest expatriate group
in each of the six G.C.C. countries.
PRESENT POLICY-
• Continuation of look west: The present policy is continuation of old look west policy. However, it is marked
by High Octane Diplomacy market by intensified security cooperation in counter terrorism and maritime
domain, economic complementaries and policy based on enlightened self-interest.
• Think West policy: While announcing ‘Think West policy’ the then foreign secretary S. Jaishankar held that
“we are no longer content to be passive recipients of outcomes". India’s landmark “Act East" policy, he
added, “would be matched with ‘Think West’."
• Strategic agreements: India has signed strategic agreements with UAE and Saudi Arabia. Recently, Indian
army chief also visited UAE and Saudi Arabia for ‘strengthening strategic and defence cooperation’.
• Maritime security: Apart from cooperation in counter terrorism, maritime security has become important
pillar of India’s west Asia policy. Recently , Indian , French and UAE navies conducted three-day Varuna
trilateral exercise to jointly test combat skills and war game in the Persian Gulf.
• Leveraging Economic Complementaries- (covered earlier)
• Leveraging India’s moderate profile- India is not seen as a hostile power by either of the blocs. Even as the
trade ties between Saudi Arabia and China keep thriving, there’s a fair amount of strategic mistrust between
them.
o On the other side, India has kept its equidistance. The Saudis know that India does not have any
ambitions to control West Asia. Nor is India part of any global alliance that challenges the Saudi
influence in the region. This makes it easier for New Delhi to deepen its partnership with the Gulf
Arab countries.
o India has also maintained a distance from developments which Iran sees hostile to its interests. This
balancing offers a pattern in India’s engagement in the region. It is shaped not by hostility towards
anybody, but friendship with everybody moored in political realism
INDIA-IRAN
INTRODUCTION-
• India-Iran relations span centuries marked by meaningful interactions. The two countries shared a border till
1947 and share several common features in their language, culture and traditions. However, presently, the
growing closeness between Iran, China and Pakistan and growing rift between GCC and Iran has created new
challenges for India’s west Asia policy.
IMPORTANCE OF IRAN-
• ENERGY SECURITY- Iran is a significant source of crude oil, accounting for 6 percent of India’s oil imports. Iran
used to be India’s second largest oil supplier after Saudi Arabia till New Delhi slashed imports in the wake of
the international sanctions
• GEOSTRATEGIC- Iran borders the Strait of Hormuz through which a fifth of the world’s seaborne oil
passes. From a realpolitik perspective, Iran’s importance for India derives from its immense energy
resources, strategically important location linking West Asia with Central Asia, and the possibility of building
a friendship not disturbed by the “Pakistan factor.”
• CONNECTIVITY-
o India’s “gateway” to Central Asia: Iran is poised to become India’s “gateway” to Central Asia, Europe
and Russia as a result of the future construction of the ports at Chabahar and Bandar Abbas and the
International North-South Transport Corridor (INSTC).
o Chabahar port Not only connect India to Afghanistan and Central Asia, bypassing Pakistan, but
Chabahar also acts as a balance to CPEC and a symbol of India’s commitment to Iran and Afghanistan.

o The Ashgabat agreement- It is a multimodal transport agreement between the governments of

Kazakhstan, Uzbekistan, Turkmenistan, Iran, Pakistan, India and Oman for creating an international
transport and transit corridor facilitating transportation of goods between Central Asia and the
Persian Gulf.
• STABILITY IN AFGHANISTAN- Iran is a valuable ally in the fight against the Taliban in Afghanistan. Iran also
prefers a stable government in Afghanistan, which has a sizable population of Hazara Shiites, who were
persecuted by the Taliban regime in the second half of the 1990s.
• REGIONAL PEACE- Iran is an emerging regional power with wide-ranging influence in West Asia that could
contribute to regional stability.
ISSUES
• CHINA FACTOR- Iran-China signed a 25 year “Comprehensive Strategic Partnership" which can push Iran
towards China. This can adversely impact India’s strategic and economic relationship with Iran.
o China has also proposed construction of new port at Jask at the moth of strait of Hurmuz. It can
neutralise India’s strategic advantages in Chabahar Port. Iran has also proposed to link Chabahar
port to Gwadar port of Pakistan.
o There are also reports that China will deploy 5000 security personnel to protect its projects in Iran.
• NEW EMERGING AXIS- At present, Saudi Arabia and Iran are directly involved in two civil wars in West Asia.
In Syria, if the Saudis are backing anti-government rebel/Islamist groups, largely Sunni, the Iranians are
staunchly behind the regime of President Bashar al-Assad. In Yemen, Riyadh and its Gulf allies are backing
the government of Abdrabbuh Mansur Hadi, while Iran has thrown its weight behind the Shia Houthi rebels.
o The new emerging China-Pakistan-Russia-Iran-turkey axis vs USA-Israel-Saudi Arabia axis makes the
west Asian geopolitics even murkier. The greatest challenge before India is not to be drawn into this
Middle Eastern “cold war.”
• CONNECTIVITY- Iran has decided to proceed with the construction of rail line from Chabahar port to Zahedan,
along the border with Afghanistan, without India though both countries had earlier agreed to jointly develop
the railway line.
• US SANCTIONS ON IRAN- US sanctions on Iran has crippled Iranian economy and has increased Iran-China
closeness. The Beijing-Tehran connection could hinder New Delhi’s strategic aims with Iran and foreign policy
engagement with the region. As Iran moves closer to China, it could result in making critical concessions to
Beijing that may weaken a competing or emerging actor like India’s position in the Gulf region.
• BUREAUCRATIC HURDLES IN INDIA- Delays due to bureaucratic red Tapism and sanctions have also taken a
toll on the Indian interest in developing the Farzad-B gas field, where ONGC Videsh made a discovery in 2008.
o Recently, Iran has given the gas field to domestic produces as talks between Indian consortium and
Iran’s National Iranian Oil Company broke down due to US sanctions.
WAY FORWARD-
• RETHINKING PRESENT POLICY- India should rethink its Iran policy and recalibrate the way forward to detract
from a possible China-Iran alliance and broaden the scope of its cooperation with Iran to make their
partnership a more strategic one.
• MEDIATING BETWEEN IRAN -US- India can emerge as a neutral third-party with cordial ties to both regimes
to bring Iran and the United States closer to direct talks to further the peace process and discuss a new,
broader nuclear deal.
• Improving implementation record of infrastructure projects as delays frustrates the partner countries and
give chance to China to increase its footprint.
RECENT NEWS-
CURRENCY CHANGE IN IRAN-
• Under the ‘Reforming Monetary and Banking Law’ passed in May "Iran’s currency unit will be toman and
each toman will be worth 10,000 rials and 100 qerans”.
• It was done to simplify transactions and to check inflation.

Chabahar Project - Push for Chabahar Port in INSTC Corridor.

• India proposed Chabahar port to be included in the 13-nation International North South Transport Corridor
that extends from India to Russia, and expand INSTC membership by including Afghanistan and Uzbekistan.
• Eastern corridor: India proposed that the Chabahar port and land route via Kabul (Afghanistan) and Tashkent
(Uzbekistan) would form the INSTC’s “Eastern corridor”.
WHY?
• Smooth connectivity:
To enable smoother
connectivity with
Eurasia and Central Asia
by bypassing Pakistan.
India can connect with
Afghanistan through
rail route to Zaranj and
then can get access to
Garland Highway of
Afghanistan through
Zaranj Delaram
Highway.
• Counter BRI: To counter Belt and Road initiative of China AND CPEC and a symbol of India’s commitment to
Iran and Afghanistan.
• Investment: India has already invested nearly $500 million in the project, with a total commitment of 1 billion
rupees (or $13.4 million) in its Union Budget 2021-2022 alone.
• Economic Benefit and investment opportunities- The project provides opportunities for setting up industries
— ranging from aluminium smelter to urea plants in Chabahar free trade zone.
o The project’s importance in Indian perception is further demonstrated by India’s proposal to
commemorate “Chabahar Day” on March 4, 2021.
What is INSTC?
• The International North South Transport Corridor is a 7,200-km-long multi-mode transport route, wherein
India is partnering with 12 nations to
establish an economic corridor.
• It will help in moving freight among
India, Iran, Afghanistan, Armenia,
Azerbaijan, Russia, Central Asia and
Europe.
IAEA - IRAN DEAL OVER NUCLEAR

INSPECTIONS
WHY IN NEWS-
• The IAEA has struck a three-month
deal with Iran giving it sufficient
continued access to verify nuclear
activity in the country, opening the
space for wider political and diplomatic talks between Tehran and the US.
• However, it is just a temporary arrangement. Under the plan, for the next three months Iran would hold
recordings from monitoring equipment installed at sites by the IAEA but would not release the information
unless sanctions were lifted. No access will be given to the IAEA beyond safeguards of the Non-Proliferation
Treaty
JCPOA-
• JCPOA is an agreement reached by Iran and the P5+1 (China France, Germany, Russia, the United Kingdom,
and the United States) in 2015 and endorsed by UN Security Council Resolution 2231.

• To prevent nuclear proliferation: It intended to prevent Iran from developing nuclear weapons while granting
it an internationally monitored civilian nuclear power programme. Iran’s compliance with the nuclear-related
provisions of the JCPOA is verified by the International Atomic Energy Agency (IAEA) according to certain
requirements set forth in the agreement.
• It limited the number of centrifuges Iran could run and also reconfigured a heavy-water reactor so it couldn’t
produce plutonium and agreed to convert its enrichment site at Fordo into a research centre.
• US withdrawal: In 2018, US unilaterally withdrew from JCPOA and in 2020 Iran withdrew from JCPOA after
the killing of General Soleimani.
IMPLICATION FOR INDIA-

• India would like USA to re-join JCPOA which will ease sanctions on Iran. I
• t will allow India to maintain close ties with Iran and to complete projects such as Chabahar port etc.
• It will also prevent Iran from getting closer and more dependent on China.
INDIA - ISRAEL
HISTORY-
• Though India officially recognised Israel in 1950, the two countries established full diplomatic ties only on
January 29, 1992. Diplomatic ties between India and Israel completed 29 years in 2021.
• In recent years, relations have seen rapid growth across a broad spectrum of areas and the future vision of
the cooperation is of a strong hi-tech partnership as befits two knowledge economies.
• In 2017, Prime Minister Modi undertook an historic first ever visit by an Indian PM to Israel during which the
relationship was upgraded to a strategic level and seven Agreements/MoUs were signed in the fields of R&D
innovation, water, agriculture and space.
• In 2018, Prime Minister of Israel Benjamin Netanyahu, made a visit to India during which four G2G
agreements on cyber security, oil & gas cooperation, film co-production and air transport were signed, along
with five other semi-government agreements.
AREAS OF COOPERATION-
• Since the upgradation of relations in 1992, defence and agriculture formed the two main pillars of our
bilateral engagement.
Defence Cooperation
• Largest buyer: India is the largest buyer of Israeli military equipment
• Strategic partnership: The two countries have elevated their ties to a strategic partnership; an important
pillar of this relationship is defence.
• Increased ambit: The ambit of India-Israel defence cooperation has widened to include other domains like
space, counter-terrorism, and cyber security;
however, the cornerstone remains Israeli arms
sales to India.
• The major defence sells from Israel to India
include Heron UAV, Barak Missiles,SPYDER-MR
air defence system etc.
• Increased FDI: The government has increased
the limit for FDI in defence through the
automatic route from 49% to 74%.
What makes Israel a good arms supplier to India?
• Israel supplies ready-to-use critical
technologies, even on short notices. Israel has
created its niche in the market with its
innovation-backed technologies such as UAVs,

missile defence systems and surveillance radars.

• Useful for patrolling and surveillance purposes in peacetime and eases the operational ability of armed forces
in wartime.
• Make in India- The export-oriented Israeli defence industry and its openness to establishing joint ventures
complement both ‘Make in India’ and ‘Make with India’ in defence.
• Flexibility- Israeli arms can be flexibly deployed to various wings of the military, which simplifies the operation
during mission time.

• Customisation- Israel has developed the expertise to customise its arms according to the requirements of its
customers.
• Israel has always been a ‘no-questions-asked supplier’, i.e., it transfers even its most advanced technology
without placing limits to its use.
• These factors make Israel a potential ‘all-weather’ defence partner for India.
Agriculture
• Agricultural cooperation between the two sides is formalized through 3-year Work plans wherein 3-year
Action plans are developed. Thus far, out of 29 Centres of Excellence in twelve Indian states have been
commissioned.
• Technology and expertise: India has benefited from Israeli expertise and technologies in horticulture
mechanization, protected cultivation, orchard and canopy management, nursery management, micro-
irrigation and post-harvest management particularly in Haryana and Maharashtra.
• Israeli drip irrigation technologies and products are now widely used in India.
• Dairy farming: Some Israeli companies and experts are providing expertise to manage and improve dairy
farming in India through their expertise in high milk yield.
Trade-
• The bilateral trade between India and Israel grew from $200 million in 1992 to $5.84 billion in 2018.
• India’s major exports to Israel and vice versa include precious stones and metals, organic chemicals,
electronic equipment etc.
• The two countries have also signed a ‘Double Taxation Avoidance Agreement’.
Science &technology and innovations-

• India-Israel cooperation in S&T is overseen by the Joint Committee on S&T, established under the S&T
Cooperation Agreement signed in 1993.
• I4F: During the visit of PM Modi in July 2017, an MoU for establishing India-Israel Industrial R&D and
Innovation Fund (I4F) was signed.
• Collaboration in research: In 2012, the two countries signed a five-year $50 million academic research
agreement for promoting collaborative research across a wide range of disciplines, including medical and
information technology, social and life sciences, humanities, and the arts.
Changing Geopolitics in west Asia-
• Palestine has become ‘non-issue’ and strategic convergence between Saudi Arabia, UAE and Israel is
growing. This has made it easier for India to strengthen ties with Israel.
- Other areas of cooperation include water accessibility and oil and natural gas cooperation etc, where both
countries have common interest.
ISSUES-
• CHANGING GEOPOLITICS- as China-Iran-Russia vs Saudi-Israel-USA axis has emerged in west Asia, it can make
India’s balancing policy difficult.
• China- Israel china trade and defence cooperation is bigger than India-Israel. This may lead to Israel taking a
neutral position in case of Sino-India conflict.
• Israel Palestine conflict - the recent escalations in the conflict between Israel and Palestine after a series of
missile strikes from the Israel Defence Forces on civilian settlements in the Gaza Strip, violating a ceasefire
arrangement can further deteriorate the Arab-Israeli relations and destabilise the region further.
WAY FORWARD-
• Strengthening cooperation in sectors such as renewable energy, biotechnology and agricultural technologies
like precision agriculture.
• On Palestine issue- Though Palestine has become a non-issue, yet India should continue its moral stance on
the issue.

• Utilizing India's soft power - The Indian model of democracy and secularism, which accommodates religious,
ethnic, linguistic and other diversities, could be a viable model for the peaceful coexistence of formerly
antagonistic groups.
• Maintaining balanced policy based on ‘enlightened self-interest’, in context of emergence of china-Iran-
Russia vs Saudi-Israel-USA axis.
RECENT NEWS-
Operation Breathing Space-
• Under it a team of top Israeli defence scientists and health experts will collaborate with Indian
counterparts to develop, test and deploy rapid diagnostic tests for Covid-19 that aims to provide results
in under a minute.
ICC INVESTIGATIONS INTO ISRAE L-PALESTINE WAR CRIMES

WHY IN NEWS? -
● Possible war crimes: The International Criminal Court has ruled that it has the jurisdiction to investigate all
of Israel’s actions, including possible war crimes and building of settlements, in the Palestinian territories it
annexed after 1967(west bank (Jordan), Gaza strip (Egypt) and Golan heights (Syria)).
● It was welcomed by Palestinians and criticized by Israel. Israel is not a member of the ICC.
Historical overview of Israel Palestine conflict-
What is India’s stance?
India has taken a stance that since India is not a member of the Rome Statute, the founding treaty of the ICC, “it
would not want to comment or take a position on any of the court’s decisions or rulings.”
INDIA” S POSITION ON PALESTINE-
• Throughout the Cold War, it remained a strong supporter of Palestinian freedom, taking a moral and legal
position against the Israeli occupation, in line with international laws and norms.
• Full diplomatic relations: Even though India established full diplomatic relations with Israel in 1992, in the
context of improving Israel-Palestine ties after the Madrid Conference and the changes in the global order
following the disintegration of the Soviet Union, it never abandoned the Palestinians.
• Negotiated solution: Until 2017, India’s position was that it supported “the Palestinian cause and called for
a negotiated solution resulting in a sovereign, independent, viable and united State of Palestine, with East
Jerusalem as its capital, living within secure and recognized borders, side by side at peace with Israel”.
• India dropped the references to East Jerusalem and the borders in 2017 when Palestinian Authority
President Mahmoud Abbas visited Delhi.
• India’s support to Palestine: In United Nations Security Council meeting on May 17,2021, Permanent
Representative TS Tirumurti expressed India’s support to the “just Palestinian cause” and called for
immediate de-escalation of the situation between Israel and Palestine. India has maintained that two-state
solution to equal sovereign rights is the way forward to resolve the century old crisis.
• Opposition to unilateral changes: India has also urged both sides to “refrain from attempts to unilaterally
change the existing status quo
• India abstained from voting: However, on May 27, India abstained from voting on the resolution of UN
Human Rights Council, which is aimed at securing Israel’s compliance with international human rights.
• Support to just Palestinian cause: India also dropped its traditional reference to support for the “just
Palestinian cause” in at least three recent statements at the UN Security Council, General Assembly and
Human Rights Council.
• Two-state solution: The statements, however, retained the usual reference to a two-state solution
to be achieved through direct negotiations to ensure lasting peace between the people of Israel and
Palestine.
This shift is position is due to

• Changes in geopolitics- India’s co-

operation with the Soviet Union
during the cold war era and the aim
of countering Pakistan with the
support of Arab nations were the
reasons for pro-Palestine policy.
However, in the Post-cold war era
India has moved closer to the USA
and Europe.
• Pragmatic and realistic foreign
policy- The optimistic non-
alignment and idealism has given
way to pragmatic and ‘enlightened
self-interest’ based foreign policy in
recent years.
• De-hyphenation: Improved
relations with Israel and de-
hyphenation of Israel – Palestine
policy.
• Improved relations between Israel
and GCC countries after the
Abraham Accord.
HISTORY OF INDIA-PALESTINE RELATIONS

• Moral basis: The relationship with Palestine was an article of faith in Indian foreign policy and based on
moral as well as legal grounds.
• Right of self-determination: At the UN, India co-sponsored the draft resolution on the right of the
Palestinians to self-determination.
• In the 1967 and 1973 wars, India labelled Israel as an aggressor.
• In 1975, India became the first non-Arab country to recognize the PLO as the sole representative of the
Palestinian people and invited it to open an office in Delhi.
• Granted recognition to Perlstein: In 1988, India granted recognition to Palestine when the PLO declared
an independent state of Palestine with its capital in East Jerusalem.
• India’s position didn’t changed: Even after normalization of relations with Israel, India maintained its
position on Palestine.
• India voted in favor of the UN General Assembly resolution in October 2003 against Israel’s construction
of a separation wall.
• India also voted for Palestine to become a full member of UNESCO in 2011, and a year later, co-sponsored
the UNGA resolution that enabled Palestine to become a “non-member” observer state at the UN without
voting rights.
• India also supported the installation of the Palestinian flag on the UN premises in September 2015.
• Even though India diluted traditional position on East Jerusalem and borders, India continues to support
2 state solution.
India’s developmental assistance to Palestine
• Budgetary support: So far, India has extended budgetary support of US$ 30 million to Palestine.

• In 1997, an MoU between India and Palestine was signed, which provides for promoting scientific,
technical and industrial cooperation including provision of training facilities in specialized areas and
undertaking of mutually agreed projects.
Various Indian projects in Palestine are-
• Jawaharlal Nehru Library at the Al Azhar University in Gaza city and
• The Mahatma Gandhi Library-cum-Student Activity Centre at the Palestine Technical College at Deir Al
Balah in the Gaza Strip.
• India-Palestine Centre of Excellence in ICT and Innovation in Al Quds University
• Palestine India Techno Park in Ramallah
• During the Historic first ever visit of an Indian Prime Minister to Palestine, India provided one-time project
assistance worth USD 42.1 million for Palestinian Nation Building in Education, Health, Women
Empowerment and capacity building.
• India, Brazil, South Africa (IBSA) Fund has also funded five projects in Palestine,
• Welfare of Palestinian refugees: India has also given USD 2 million in aid to the United Nations Relief and
Works Agency working for the welfare of Palestinian refugees
INDIA-QATAR
WHY IN NEWS?
• India’s External Affairs Minister on his 2 day visit in December 2020 met the top leaders of Qatar and
discussed strengthening the economic and security cooperation.
INDIA- QATAR RELATIONS-
• ENERGY SECURITY- Qatar is the largest supplier of Liquefied Natural Gas (LNG) to India. Countries have
agreed to set up a task force to identify projects in India for investment.
• TRADE- India is considered to be the fourth largest export destination for the State of Qatar. India’s exports
to Qatar have nearly doubled in last decade.
• Diaspora welfare there are over 7 lakh Indians in Qatar and are source of big amounts of remittances back
to India.
• STABILITY IN AFGHANISTAN - Qatar is the host of the intra-Afghan talks and Taliban delegation with
Afghanistan.
• SECURITY COOPERATION- There is close cooperation between the two countries in the field of combating
terrorism, drug and human trafficking.
• Defence relations- Za’ir-Al-Bahr is the naval exercise between Indian and Qatar Navy.
INDIA – SAUDI ARABIA

INTRODUCTION-
• In recent times India-Saudi Arabia relations have gone beyond their traditional approach, in which Pakistan
and Jammu and Kashmir were significant sticking points.
INDIA-SAUDI ARABIA RELATIONS
• ECONOMIC- India is 4th largest trading partner of Saudi Arabia and the 4th largest market for Saudi exports.
Bilateral trade was $28 billion in 2019-20. Most of it was crude oil exports to India, which imports around
19% of its oil requirements and 32% of LPG requirements from Saudi Arabia. Saudi Arabia had expressed
intent to invest about $100 billion in India.
• INVESTMENT- In February 2019, Crown Prince Mohammed bin Salman announced that the Kingdom
would invest over $100 billion in India in petrochemicals, refining, infrastructure, mining, manufacturing,
agriculture and several other sectors. Saudi Oil major ARAMCO has also made investment in India’s Reliance
group.
• ENERGY SECURITY- Saudi Arabia is India’s second largest supplier of crude oil and also 32% of LPG imports
are from Saudi Arabia.

• GEOSTRATEGIC-Riyadh Declaration (2010) has raised the level of partnership to strategic partnership. During
PM Modi’s visit countries have agreed to establish a Strategic Partnership Council (SPC). India to become the
fourth country to sign such an agreement with Saudi Arabia.
• DIASPORA- 2.6 million Indian diaspora are in Saudi Arabia and are the largest recipient of foreign remittances,
up to $11 bn annually.
• DEFENCE- The navies of the two countries were also planning to hold their first-ever joint naval exercises in
March 2020 but it had to be postponed on account of the pandemic. The naval exercise has been
rescheduled for the first half of 2021.
• DEALING WITH PAKISTAN- Saudi Arabia is the only country apart from China that can put pressure on
Pakistan to
• SECURITY COOPERATION- during Modi’s 2016 visit, an MoU on cooperation in the exchange of intelligence
related to money laundering and terrorism financing was signed between the 2 countries.
• OTHER AREAS OF COOPERATION- In a recent meeting between NITI Aayog-led delegation and their Saudi
counterparts, areas such as information and communications technology, healthcare and pharmaceuticals,
electronic and manufacturing facilities, and housing were identified as potential areas of enhanced
cooperation.
WEAKENING PAKISTAN-SAUDI ARABIA RELATIONS

• Stand on article 370: During Indian National Security Advisor Ajit Doval’s visit to Saudi Arabia in October
2019, Saudi Arabia took a ‘Neutral’ stand on abrogation of Article 370.
• Important shift: The “neutral” stand is an important shift in Saudi Arabia’s approach towards India in
general and Jammu and Kashmir in particular.
WHY CHANGE IN STAND?
• ECONOMIC- As it seeks to diversify from its heavily oil-dependent economy under Saudi Vision 2030, it
sees India as a valuable partner in the region.
• PROACTIVE DIPLOMACY BY INDIA- From Saudi Arabia to the UAE, India has strengthened relationships
through high level visits and enhancing cooperation in sectors such as counter terrorism, maritime security
etc.
• OIL DIPLOMACY- with India stopping oil imports from Iran due to threat of US sanctions, Saudi Arabia is
key in this respect as well.
ISSUES-
• ENERGY RELATIONS- Indian state refiners bought 36% less oil from Saudi Arabia in May 2021 than normal as
India blamed cuts by the Saudis and other oil producers for driving up crude prices.
• Secondly, Saudi Aramco has raised the price of oil shipments to Asia by between 20-50 cents per barrel.
However, it has not increased the price for Northern Europe and even cut the prices for the US. According
to experts, this move is the signal to India who is trying to diversify its oil imports away from Saudi Arabia.
• SAUDI-PAKISTAN RELATIONS- Saudi Arabia funded Sunni extremist groups through Pakistan to recruit jihadist
fighters for the first Afghan war. The groups fighting India in Kashmir have their origins in this.
• RADICALISATION- Saudi funding to Madrasas in Pakistan and other countries leading to radicalisation.
• IRAN-SAUDI RELATIONS- As tensions between Saudi and Iran grows, it will be difficult for India to maintain
its traditional Balanced policy in the Middle East.
• CONDITION OF INDIAN LABOURS IN SAUDI ARABIA- The working conditions for the Indian blue collared
labourers in Saudi Arabia have been a major bilateral concern. Saudi Vision 2030 further aim to skill and
employ more nationals and limit the number of expatriates.
WAY FORWARD-
• CONTINUING BALANCED POLICY- It allows India to have good relations with Saudi Arabia, Iran and Israel
alike, the three poles of power

• STRENGTHENING TRADE RELATIONS BEYOND OIL IMPORTS - It is in line with Saudi Vision 2030 and Make in
India. Saudi Arabia itself is undertaking large development projects including Smart City, Red Sea Tourism
Project, and Entertainment City, in which Indian companies can participate.
ABRAHAM ACCORD
WHAT IS IT?
• It is the agreement for full normalization of relations between Israel and the United Arab Emirates. After the
UAE, Bahrain, Morocco and Sudan have also normalised relations with Israel.
SIGNIFICANCE-
• Full Diplomatic Relations- through establishing embassies and exchanging ambassadors.
• Suspension of annexation plans by Israel in the west bank.
• Israeli-Palestinian solution- new push for normalization will aid the cause of Israeli-Palestinian compromise.
• It may lead to peace and stability in the region.
REASONS BEHIND THE AGREEMENT? -
• CHANGING GEOPOLITICS OF MIDDLE EAST-
o Emergence of Israel-Saudi Arabia - USA and China-Iran-Russia-Pakistan Axis.
o Reduced Importance of Palestinian issue.
• RISING INFLUENCE OF IRAN in the region and its growing closeness with China.
• DIVERSIFICATION OF OIL ECONOMIES - Saudi and UAE are looking to diversify their economies away from
dependency on Oil.
• USA ARMS SELL- After the deal USA can now sell sophisticated military equipment to UAE.
CHALLENGES-
• Opposition from Palestinian- Palestine has criticised the agreement and held that agreement encourages the
occupation (Israel) to continue its denial of the rights of our Palestinian people.
• Iran-Saudi rivalry will be intensified and can further destabilize the region.
• There is also fear of domestic opposition in GCC countries.
IMPLICATIONS FOR INDIA-
India has supported the agreement.
• INTENSIFICATION OF SHIA-SUNNI CONFLICT- It can have spill over effect in India.
• DIPLOMATIC CHALLENGE- To manage traditional policy of neutrality and balancing in the region.
• IRAN-CHINA- The agreement can strengthen Iran-China relations. (Comprehensive strategic partnership or
25-year deal and Iran's proposal to link Chabahar port to Gwadar in Pakistan)
• SAFEGUARDING CORE INTERESTS like energy security, diaspora, trade and investment.
• RELATIONS WITH GCC- Opportunity to strengthen defence and intelligence cooperation.
WAY FORWARD-
• PEACE AND STABILITY- Standing up for Arab sovereignty and opposing the forces of regional destabilisation
should be at the very heart of India’s new engagement with the Middle East.
WEST ASIA PEACE CONFERENCE

WHY IN NEWS?
• Russia backed a Palestinian proposal for a West Asia Peace Conference. The Conference is intended to focus
on a two-state solution between Israel and Palestine.
WHAT IS IT?
• It is international, ministerial-level meeting proposed by Palestinian leader Mahmud Abbas to be held in
2021.
• The roughly 10 participants would include Israel, the Palestinians, the four members of the so-called West
Asia diplomatic quartet (Russia, the UN, the U.S. and the EU), along with four Arab states — Bahrain, Egypt,
Jordan and the United Arab Emirates.

OTHER MEASURES FOR PEACE IN WEST ASIA-

• ABRAHAM ACCORDS- It is the agreement for full normalization of relations between Israel and the United
Arab Emirates.
• MIDDLE EAST PEACE PLAN- It was proposal by the Trump administration to resolve the Israeli–Palestinian
conflict. However, it was rejected by the Palestinian Authority as a “conspiracy deal”.
DJIBOUTI CODE OF CONDUCT

WHY IN NEWS?
• India has joined the Djibouti Code of Conduct/ Jeddah Amendment, as Observer, boosting its Indian Ocean
Region outreach.
WHAT IS IT?
• Repression of piracy: It was established in January 2009 and is aimed at repression of piracy and armed
robbery against ships in the Western Indian Ocean Region, the Gulf of Aden and the Red Sea.
• Maritime matters: It is a grouping on maritime matters comprising 18 member states adjoining the Red Sea,
Gulf of Aden, the East coast of Africa and Island countries in the IOR.
• India joins Japan, Norway, the UK and the US as Observers
SIGNIFICANCE FOR INDIA-
• MARITIME SECURITY- Enhanced maritime security of the Indian Ocean Region (IOR) and combat the threat
of piracy.
• SAFETY OF IMPORTANT Sea Lanes of Communications (SLOCs) in Indian ocean through which the majority
of Indian trade takes place.
• NET SECURITY PROVIDER- Strengthening India’s role as Net Security Provider in Indian Ocean Region.
• COOPERATION WITH LITTORAL STATES- The Code provides a framework for communication, coordination
and cooperation
• COUNTERING CHINA- To counter China’s rapid advance into the Indian Ocean through strategic and
economic projects like the String of pearls and Belt-and-Road Initiative.
• LEVERAGING BLUE ECONOMY- By sustainable use of ocean resources for economic growth.
GULF COOPERATION COUNCIL AND INDIA

INTRODUCTION-
• India’s relations with the Gulf Cooperation Council (GCC) countries, especially Saudi Arabia and the United
Arab Emirates (UAE), have witnessed a significant upswing since 2015, across the areas of trade, investments,
counter-terrorism and security cooperation.
IMPORTANCE OF GCC-
• DIASPORA- The GCC states are home to about eight million Indian expatriates, with a majority based in Saudi
Arabia and the UAE.
• ENERGY SECURITY- Majority of Indian Oil and Gas imports are from GCC countries. Total oil trade with GCC
is $135 billion.
• GEOSTRATEGIC IMPORTANCE- The rise of Islamic State (ISIS), China’s growing regional footprint, and
heightened tensions over Iran’s nuclear program, contribute to amplifying the importance of the GCC states
in India’s foreign policy calculus.
• TRADE AND INVESTMENTS- As GCC countries and especially Saudi Arabia and UAE are looking to diversify
their economies. Ex- UAE has committed to $75 billion investment in Indian Infrastructure.
• Khaleeji Capitalism- It implies the rise of large conglomerates and sovereign wealth funds in the Gulf that
today dominate several regional sectors — from banking and finance to infrastructure. India can leverage it.

RECENT GOVERNMENT STEPS TO STRENGTHEN THE RELATIONSHIP-

• Strategic Partnership with Saudi Arabia and UAE and cooperation in counter-terrorism and online
radicalisation.
• Vande Bharat Mission- To rescue and repatriate stranded Indian workers in GCC countries.
• High level visits by the Prime Minister and MEA S. Jaishankar to strengthen economic and security ties.
• Maritime Security- India has substantially enhanced its exchanges in maritime training, operational exercises,
and information sharing with Arab Gulf navies.
o For ex- India conducts biennial naval exercise, Naseem Al-Bah with Oman.
CHALLENGES-
• Managing GCC and Iran relations- As GCC and Iran relations are deteriorating , it will be difficult for India to
manage ties.
• China and GCC- China signed the highest category – the “Comprehensive Strategic Partnership” — with Saudi
Arabia (2016) and the UAE (2018). Even during India-china border standoff GCC countries-maintained
silence.
• Impact of pandemic- The pandemic has only worsened economic outlook, exacerbated India’s problem of
reverse migration and impacted Gulf sovereign wealth funds.
WAY FORWARD-
• Focus on the new possibilities for economic cooperation- As the Gulf states have embarked on massive
economic diversification and are investing in a variety of new projects including renewable energy, higher
education, technological innovation, smart cities, and space commerce.
• Cooperating with GCC for political modernization in the Middle east and stability in Afghanistan.
CONCLUSION-
• C. RAJAMOHAN- As it seeks to recalibrate India’s ties with the Gulf, the real challenge for South Block is to
get the rest of the Indian establishment to discard outdated perceptions of the Gulf and seize the new
strategic possibilities with the region.

INDIA AND CENTRAL ASIA

Introduction :
• Central Asia is located in the heart of Eurasia and forms part of India’s extended neighbourhood.
• India’s Central Asian policy has mainly three dimensions namely Geo-cultural, Geopolitical and Geo-
economics’ engagement .
o Here the geo-cultural dimension provides a base for the relations whereas geopolitical and geo-
economic engagements provide a framework to enhance the relations through initiatives like INSTC
, Chabahar Connectivity Project .
• The present relations with CAR are explained by views of C. Rajamohan , to construct a sustained high level
engagement with central Asia having traditional collaboration with Russia in inner Asia.
Historical Ties :
• History of engagement: India and Central Asia share a long history of engagement since 3rd century B.C. The
Kushan Empire was expanded across the modern Central Asia region.
• Buddhism: The spread of Buddhism and trading along the silk route forms historical economic bonds and
cultural exchanges.
• Ancient silk road : Since Ancient times India and Central Asia are connected through Silk route which have
facilitated exchange of ideas , thoughts and philosophy. Spices , cotton , silk etc were the main traded
commodities which enhanced economic integration between these regions.
• Islam and Sufisim : Origin of Mughals can be traced back to Central Asia(Babur came from valley of Fergana)
and many prominent personalities like Al Buruni , Amir Khusro and Sufi saints played vital role in spreading
Islamic culture in India.
• In the post -Soviet phase, India recognised the independence of these five countries and established
diplomatic missions.
India and central Asia ties :
• 1991 : India was one of the first countries to recognise independence of Central Asian countries after the
collapse of the USSR.
• 1992 : India enhanced its age-old cultural relations by launching its first regional policy towards Central Asia
known as “Extended Neighbourhood policy” under the leadership of former Prime Minister Atal Bihari
Vajpayee.
• India has also joined Kazakhstan led the CICA initiative.
• India also got an opportunity to set-up its air base in Tajikistan.
• Strengthening the connectivity: India has taken an active role in strengthening the connectivity with Central
Asia through the International North South Transport Corridor Project(INSTC) and in the TAPI energy corridor
project.
• The Connect Central Asia Policy which India unveiled in 2012 was a major milestone in India’s regional
approach towards this region. It helped to engage with new vigour and broad based approach on multiple
dimensions to strengthen the relations. The policy is based on 4 Cs : Commerce , Connectivity , Consular and
Community.
• India- Central Asia Dialogue since 2019 have been the main instrument fostering and strengthening future
course of cooperation between the countries.
• SCO : India gained permanent membership in SCO in 2017. Central Asian countries expects India to
counteract increasing influence of China and Russia in the region. India is increasing its influence through TIR
convention , Ashgabat Agreement to become a vital pole in the region.
Importance of region :
Complex Geopolitics :
• The complex geopolitical situation is the result of interaction of both global and regional forces and their
subsequent impact on the region.
• The collapse of the USSR brought changes in geopolitics and compelled these countries to pursue a policy
of multi vector. The region denoted as Heartland by Helford Mackinder indicates its strategic importance.

• Rise of china : China has made prominent presence in the region through BRI led infrastructure projects and
financial aid. However Central Asian countries have received little benefit out of it and suffering from Chinese
debt trap. It has created favourable conditions for India to intervene with better alternative proposals.
Connectivity :
• Connecting link: CAR(Central Asian Region) provides a connecting link between West Asia , Eurasia and Indian
Subcontinent.
• Vital player: CAR is a vital player in developing INSTC to establish connectivity to Eurasian region.
• The development of Chabahar port of Iran has established road rail connectivity to Afghanistan and CAR.
Economic imp :
• The Silk Route was the connecting link which flourished the economic engagements between the regions.
• CAR has potential to develop growth , trade and investment.
Mineral wealth :
• The region is rich in gold , iron ,copper , iron , aluminium hence cordial relations are important to secure
continued flow of commodities for growing Indian demand.
Digital Connectivity :
• In the Digital era having a strong foundation in the IT sector India is planning to establish a central Asian e-
network linking all five states and provide tele-education and tele-medicine connectivity.
Trade Relations :
• India has also acceded to the Customs Convention on International Transport of Goods under the cover of
TIR and joined the Ashgabat Agreement.
Energy Security :
• Resources : The region has large oil , natural gas and uranium reserves. It is important from the point of view
of India’s energy security.
• Energy Diplomacy : Slowly and steadily India also took steps to get a share in the energy sectors of
Turkmenistan and Uzbekistan. Even in Tajikistan and Kyrgyzstan India got a stake over the years in the
hydroelectric projects.
• Ongoing Projects : India is developing the TAPI pipeline with the help of Tajikistan , Afghanistan , Pakistan
and India.
Common multilateral organisations :
• Eurasian Economic Union : It is an organisation for regional economic integration which provides free
movement of goods , services and labour.
• Heart Of Asia Conference : It aims at ensuring peace , stability , security and prosperity in Afghanistan and
nearby region.
• Shanghai Cooperation Organisation : It aims at promoting cooperation in politics , economy , technology and
to ensure peace , security in the region.
India’s soft power- Bollywood, Islam, Buddhism :
• Central Asian people have been great audience for Bollywood films which provides huge revenue and
strengthens the people to people ties.
• Cultural ties based on belief , pilgrimage are important to attract more tourist from these countries.
Security :
Peace and stability :
▪ Also region is important to have peace and stability for India because of increasing terrorism and its
vicinity to Golden Crescent.
▪ The region is important to establish stability in Afghanistan and control terrorism, fundamentalism
spreading out.
Defence Ties :

▪ India has also signed a number of defence and security pacts with the Central Asian countries like
Security Cooperation Agreement.
▪ India executes many defence exercises with central Asian countries like India Kyrgyzstan military
exercise – Khanjar.
Tackling terrorism :
▪ Both with Kazakhstan and Tajikistan India also signed agreements to fight against terrorism.
▪ SCO – RAT initiative helps member countries to fight extremism , terrorism and separatism.
Humanitarian Ties :
Social Capital :
1. To enhance people to people ties , India can provide assistance in augmenting the Social
Capital.
▪ E.g. India can share experience in managing the local-self-government (Panchayat
Raj system) to Central Asian countries where mahalla culture (local self-
government) is widely prevalent.
Healthcare services:
1. India can provide affordable health care services E,g. Ayurveda and Siddha.
Other Sectors :
• These countries can also engage in the agricultural sector, information technology and the
civilian nuclear cooperation to further strengthen their relations.
Chabahar port :
• It is an important link of connectivity between India and central Asia.
• In 2026 India, Iran and Afghanistan signed the trilateral agreement to establish a Transit and Transport
Corridor among them using Chabahar port in Iran.
• It is being considered a gateway to golden opportunities for trade by the three countries with other Central
Asian countries in the wake of Pakistan denying transit access to India.
• The port can also act as a counter to Pakistan’s Gwadar Port and Chinese OBOR projects in this region.
• In future, the Chabahar project and the International north south transport corridor (INSTC) will complement
each other enhancing Indian connectivity to the Eurasia region.
IN NEWS
· Engagement with the region in 2020 saw a clear focus on issues of regional economic development,
connectivity, and security — apart from the immediate need of dealing with the ongoing pandemic.
Connect Central Asia Policy :

• It covers an entire gamut of a multi-model approach to strengthen politico-economic, security, and cultural
ties between them. The policy is based on 4 Cs : Commerce , Connectivity , Consular and Community.
• Following are the approaches of the policy :
1. To deepen strong political relations through the exchange of high level visits.
2. Strengthening strategic and security ties through military training , counter terrorism coordination
and cooperation on Afghanistan issue.
3. Multilateral engagement with central Asian countries through forums like SCO , Eurasian Economic
Community etc.
4. India sees CAR as a long term energy partner to secure its energy needs and plans to engage in
production of profitable crops with value addition.
5. It envisages to develop INSTC with new vigour and investment.
6. India is developing Central Asian e-network with its hub in India.
7. To improve trade and investment India is planning to provide favourable policies so that Indian
banking sector could flourish in CAR.

INDIA AND UZBEKISTAN

Recent context
• Both countries recently conducted the first virtual bilateral summit in December 2020.
• They signed a MoU where India assured US $ 448 million Line Of Credit for road construction and
development of the IT sector for digital connectivity.
• Uzbekistan has also invited India to join the proposed Afghanistan and Uzbekistan rail link in 2019 to foster
trade and growth in Afghanistan.
• Uzbekistan formally joined the Chabahar Connectivity project along with Afghanistan in recent months.
Second meeting of India Central Asia dialogue (October 2020):
• It was a virtual meeting hosted by India.
• First dialogue was held in Samarkand , Uzbekistan in January 2019.
• Participants exchanged views on areas like political, security, economic and commercial, humanitarian and
cultural spheres as well as on regional and international issues of mutual interest.
Key Points
Covid Cooperation :
· Dialogue recognised the need to cooperate for Sanitary and Epidemiological Services between India and the
Central Asian countries in the fight against Covid-19 pandemic.
Financial Aid :
· Line of Credit: India extended the US$ 1 billion Line of Credit in fields such as connectivity, energy, IT,
healthcare, education, agriculture etc.
· Grant assistance: Also India offered grant assistance for implementation of High Impact Community
Development Projects (HICDP) for enhancing socio-economic development in the countries of the region.
Economic cooperation:
· Expand trade: To further expand trade and economic cooperation, an initiative to form working groups
under the India-Central Asia Business Council (ICABC) to promote business linkages, facilitate greater
understanding of taxation etc was started.
· ICABC – A B2B body established by the Government of India along with FICCI and key chambers of the other
nations.
Connectivity :
· Participants recognised the importance of connectivity for increasing trade and commerce as well as people-
to-people contacts between India and the Central Asian countries.
· They are planning to promote joint initiatives to create regional and international transport corridors.
Condemned terrorism :
· Participants condemned terrorism in all its forms and manifestations.
· They reaffirmed their efforts to combat this menace by destroying terrorist safe-havens, networks,
infrastructure and funding channels.
· They also underlined the need for every country to ensure that its territory is not used to launch terrorist
attacks against other countries.
The participation of Afghanistan in the India- Central Asia Dialogue.
· Participants want cooperation for economic reconstruction of Afghanistan, including implementation of
infrastructure, energy, transit and transport projects.
· They called for the settlement of the Afghan conflict on the principle of Afghan-led, Afghan-owned and
Afghan-controlled peace process.
Humanitarian, cultural, educational and tourism cooperation:

· Increasing tourism arrivals, creating tourism trails across the region, making the visa process simpler and
encouraging investment in tourism infrastructure was emphasized.
· Social welfare: Taking note of the large number of students from India and the Central Asian countries
studying in each other’s higher educational institutions, the Ministers stressed the importance of ensuring
their social welfare.
Challenges
Geoeconomics:
1. Interests of China and the US to a greater extent also altered the geopolitical narratives of Central Asia and
competing India’s interests. Chinese OBOR initiatives have led to increase its influence in the region.
2. India’s trade with the region amounts to US$ 2 billion, owing to limited connectivity and low economic
engagement.
Connectivity :
1. Hostility of Pakistan has closed the nearest land route to central Asia via Afghanistan.
2. Destabilised Afghanistan makes connectivity insecure via Chabahar port. Thus both land and sea routes are
not safe in transporting goods and cargo.
3. Sluggish development of INSTC projects have placed India on the backfoot in establishing commercial
projects in the region.
Security :
1. Growing radical Taliban in Afghanistan, role of Pakistan, Saudi Arabia , Turkey and Iran in spreading
radicalisation in Central Asia.
2. Both Pakistan and Afghanistan are not secure hence making connectivity and engagements difficult.
3. Chinses penetration: China through its BRI projects have penetrated well in central Asian countries and are
suffering from debt trapped economics of china.
4. Vicinity to Golden crescent and increasing terrorism is threat to peace and stability.
Geopolitics:
1. The Geopolitical region is fragile as interest of the USA is lessening , China-Russian convergence in this region
and adverse impact of Syrian crisis pushing India away and obstructing its efforts of developing relations.
2. Internal conflicts: CAR have failed to associate as a strong regional group due to various internal conflicts
over terrorism , ethnic issues and global geopolitical intervention preventing them to unite.
Chinese Role :
1. China has heavy investments in CAR. China launched its OBOR project in Central Asia and given massive aid
for infrastructure projects. China is also taking advantage of Russia’s economic weakness and trying to
replace Russia as a major force in Central Asia.
2. Expansionist policy: China with its expansionist policy and urge to control important water resources in the
region is a threat to sovereignty of central Asian countries.
3. However, the Central Asian countries are now more interested in getting rid of Chinese debt diplomacy in
this region in recent years. Thus opens the avenues for India to strengthen its ties and act as a strong pole in
the region.
CONFLICT BETWEEN NAGORNO-KARABAKH
• Ethno-territorial Conflict: It is ethno-territorial conflict between Armenia and Azerbaijan over Nagorno-
Karabakh region. The conflict is unresolved for the last three decades.
• Conflicting Principle: It is a struggle between – the principle of territorial integrity advocated by Azerbaijan
and the principle of right to self-determination advocated by Nagorno-Karabakh with the support of
Armenia.
Issue of Conflict :

• Nagorno-Karabakh region is centre of conflict which has been territorial part of Azerbaijan since Soviet Era
however resided mostly by Armenian Christian ethnic people who have been demanding independent status
from Muslim majority Azerbaijan.
• Both the countries claim that the disputed region was under their control in known history.
• After the disintegration of USSR Nagorno-Karabakh with the support of Armenia declared independence
which resulted in war between Azerbaijan and Nagorno-Karabakh with the support of Armenia.
Mediation :
• The clash was resolved with mediation of Russia and a ceasefire agreement was signed in 1994.
• The OSCE Minsk Group (Organization for Security and Co-operation in Europe) co-chaired by the USA, Russia
and France are striving to provide an amicable solution.
Current status of conflict :
• Armenian rebels have control over Nagorno-Karabakh region and have declared it as a republic named as
Nagorno-Karabakh Autonomous Oblast.
• Azerbaijan is striving to gain control over it.
Strategic Importance of region :
• INSTC route: Azerbaijan is situated on the INSTC route thus an important connecting link of India and
Eurasian region.
• Gas and oil pipelines: Azerbaijan has developed many gas and oil pipelines across the Caucasus to European
countries. Safety of these pipelines is important for ensuring energy security.
International Implication :
Global Concerns :
• Energy security of European countries: Though this territorial conflict is between two small countries , many
foreign players like Russia , USA , Turkey , Europe , Iran are involved to secure their interests. The region is
having high strategic value due to gas pipelines connecting European regions through this area. Thus stability
of the region is required for ensuring energy security of European countries.
Failure Of Mediators :
• No acceptable solution: The international interlocutors are striving with no luck to provide an acceptable
solution for both the parties. The full independence demand of Nagorno-Karabakh is not acceptable by
Azerbaijan.
New Peace deal

Gain for Azerbaijan
• As per the deal both sides are required to hold their current position. It has benefitted Azerbaijan as she
could reclaim around 20% of the area it had lost during the recent conflict.
Russian Intervention :
• Russia brokered a new peace deal between Armenia and Azerbaijan, the two countries that have been in a
military conflict for over six weeks over the disputed region of Nagorno-Karabakh in the South Caucasus.
• Suspension of military operations: New peace deal ensured all military operations to be suspended and
Russian peacekeepers will be deployed along the line of contact between two countries.
• A new corridor will be opened from Nakhchivan to Azerbaijan, which will be under Russian control.
Refugee Issue :
• Refugees and internally displaced persons will return to the region and the adjacent territories and the two
sides will also exchange prisoners of wars and bodies.
Implications :
• Deal has succeeded in achieving peace in present time however Armenian people are discontented because
deal is favourable for Azerbaijan. This resentment could trigger new clashes in near future.
Indian Relations :
• No specific policy : India does not have specific policy for the region like Neighbourhood First, Act East
or Central Asia Connect. The region has been neglected by Indian Foreign policy makers.

• Relation with Armenia : Armenia is the only country in the region with which India has a friendship and
cooperation Treaty signed in 1995 which may prevent Indian assistance to Azerbaijan.
• Relation with Azerbaijan: However ,India has its investments in an oilfield project in Azerbaijan. ONGC and
GAIL are exploring new opportunities in Azerbaijan. Azerbaijan is integral to the International North South
Transport Corridor route , which connects India with Eurasian region and Europa region.
• Indian Stand : India has emphasised on peaceful resolution of the conflict through diplomatic negotiations.
India has also supported efforts of OSCE Minsk Group’s efforts to bring a peaceful solution.
Way Forward :
• Efforts must be put to realise the fruits of the steps like -India-Central Asia Business Council.
• Its success would create many avenues of engagement in future.
• Investment in the region: India should also plan to increase its direct investment in the region to reap the
economic benefits of the strategic location of Central Asia.
• Humanitarian aid: Sectors like the construction industry, sericulture, pharmaceuticals, IT, and tourism offer
potential for collaboration. Humanitarian aid would help to create ground level goodwill and enhance people
to people ties.
• The region is dominated by China and Russia hence India has a long way to go before it can be recognised as
a consequential actor in Central Asia. The proposals and ideas discussed in the 2020 virtual summits possess
the potential to form the bedrock of a sustained, balanced, long-term strategy.
• Thus there is a need to transcend India’s engagement in central Asia from symbols to substance.
INDIA AND AUSTRALIA
Introduction :
• India and Australia are major maritime powers among the littoral states of the Indian Ocean and form the
geopolitical poles of the region.
• Mutual indifference has long characterized relations between them but interests of the two countries are
increasingly converging in the recent period.
• Australian PM Scott Morrison has described India and Australia relations in following words “The deep
friendship between Australia and India is about more than trade and diplomacy. Founded on bharosa(trust)
and samman(respect) it is a friendship with depth , and marked by democracy , defence cooperation ,
diaspora and dosti (mateship) “.
This shows the mutual understanding and strength of the relation between them.
Background :
• India and Australia were part of British empire and have their federal structures inspired by British polity.
• Indian constitution has borrowed elements like the concept of concurrent list , freedom of trade and
commerce. Presently both the countries are members of the British Commonwealth.
• 2009 a strategic partnership and 2014 Uranium supply deal marked the significant advancement in the
relations between the two countries.
• Increasing strategic importance of Indian Ocean Region and convergence of interest have raised
opportunities for both to cooperate and deal with increasing Chinese assertiveness in the region to
maintain rule of law and freedom of navigation in Indo-Pacific Region.
Areas Of Cooperation :
Economic Ties :
• Worth : Bilateral trade between two nations was worth US$ 30.3 billion in 2018-19.
o Two-way goods and services trade with India was $24.4 billion in 2020. Australia's stock of
investment in India was $15.4 billion in 2020.
o In the financial year 2021, India's exports to Australia were worth $4.04 billion, while imports were
$8.24 billion.

• Trading Partner :India is Australia’s eighth largest trading partner and fifth largest export market.
• Import/Export Commodities :
Export : Motor vehicle & machinery , pharma products , pearls , jewellery.
Import : Coal , Gold , Uranium ,Copper , Education services.
• Joint Ministerial Commission(JMC) formed in 1989 encourages interaction between government and
business groups to find areas of collaborations and solving issues.
• CECA : Conclusion of Comprehensive Economic Cooperation Agreement (CECA) would grant FTA equivalent
status to each other, boosting trading opportunities and increasing the list of duty free tradable items.
• India-Australia Circular Economy Hackathon (I-ACE) was organised recently.
• The trade Ministers of India, Japan and Australia have formally launched the Supply Chain Resilience
Initiative (SCRI).
Covid-19
• Australia has sent oxygen, ventilators and Personal Protective Equipment (PPE) kits to India as part of an
immediate support package.
Defence Relations :
• Net security provider : To become a net security provider in Indian Ocean , it is imperative to engage with
key players in the region like Australia through defence cooperation.
• AUSINDEX : Bilateral naval exercise aimed to maintain open , free and rule based order in the Indo-Pacific
region.
• Malabar : Australia participated in the Malabar exercise in 2007 and recently in 2020.
• From 2016-18 , both countries conducted a joint military exercise named “AUSTRA HIND “.
The QUAD :
• Countries involved : India , USA , Japan , Australia. They are having common democratic ideology and
common interest of ensuring fair maritime trade and security.
• Aim : Quadrilateral Security Dialogue is an informal strategic dialogue aimed to ensure a fair , free and
prosperous Indo-Pacific region.
• Japanese Prime Minister Shinzo Abe introduced the concept of QUAD in 2007 which failed to materialise.
• In 2017 QUAD revived because of the rising importance of Indo-Pacific region and increasing aggressiveness
of china.
Significance of Quad :
• To provide security and ensure peaceful navigation routes in Indo-Pacific region.
• Protection of economic interest in the region and anti-piracy actions.
• Promotion of economic interests and upholding rule based order in the region.
Civil Nuclear Cooperation :

• This agreement in 2014 , obligated Australia to ensure uranium supply to India for civil use with confidence
that exports would not be hindered by domestic legal action challenging the consistency of the safeguards
applied by the IAEA in INdia and Australia's international non-proliferation obligations.
Consular Cooperation :
• Both the nations have signed and ratified The Mutual Legal Assistance Treaty(MLAT) and Extradition
Treaty.
Co-operation at multilateral fora.
• UNSC support: Australia supports India’s candidature in an expanded UN Security Council.
• At WTO: Both countries are members of the Five Interested Parties (FIP) in the World Trade
Organization context.
• India and Australia are members of the Quad, ASEAN Regional Forum, Commonwealth, Indian Ocean Rim
Association (IORA), , Asia Pacific Partnership on Climate and Clean Development, and have participated in
the East Asia Summits.
• Support for APEC’s membership: Australia is an important player in Asia Pacific Economic Cooperation
(APEC) and supports India's membership of the organisation.

Indian Diaspora :
• India is the third largest source of immigrants to Australia and Second largest source of skilled professionals
like IT professionals , Doctors , Accountants etc. Thus both nations should evolve favourable public policies
to enhance people to people ties.
Areas Of Convergence :
• International Issues: To deal with issues like reforming the World Health Organisation , Evolving 5G
Technology , building resilience against climate change and disaster required political and institutional
engagement.
• CECA : The conclusion of CECA is important to encourage investment and remove non-tariff barriers.
Deeper economic engagements through CECA would further strengthen strategic alliances like QUAD.
• Energy Sector : Australia is a key exporter of Uranium and LNG to India and expected to overtake Qatar as
the largest exporter of LNG.
o Diversification of the energy basket by deepening relations with Australia is beneficial in the long
term.
• International Solar Alliance : Australis has recently joined ISA which opens new opportunities of
developing solar panels and knowledge sharing for cheaper production and decreasing dependency over
china.
• Education and skill development : BY 2027 India would have the largest working population in the world.
Australia is well equipped to assist knowledge sharing and skill development.
• Chinese Threat : Both countries perceive Chinese threats to maritime security and freedom of navigation
in the Indo-Pacific region. Both nations can increase their deterrence by initiating joint activities including
maritime domain awareness and development of strategically located islands.
• Economic Integration : Indo-Pacific region offers great scope for regional economic integration. RCEP
provides a good platform for regional economic development .
• The Make In India initiative can use Australian expertise in the health , education and tourism sector.
• Science and technology : Both nations have formed AISRF-Australia India Strategic Research Fund to
collaborate on space , 5G , IoT , AI , Blockchain related research and innovation.
• Pandemic Lessons : Australia has managed to suppress COVID-19 to low levels through ‘controlled
adaptation’. Both can formulate India specific methodology to combat pandemic.
Areas Of Concerns :
• Trade Deficit : Since 2001-02 India’s trade deficit has been rising. This largely due to Australia’s lower share
of services trade with India.
• RCEP : Stating adverse impact on Indian dairy and manufacturing sector India did not join RCEP however
Australia has been negotiating with India to join RCEP.
• CECA Negotiations : The differences over Australia’s demand to access Indian dairy sector and Indian
demand to have greater free movement and relaxed visa norms for its IT professionals have become the
issue of contention impeding the progress of CECA.
• Chinese Influence : The Chinese pressure has affected foreign policies of both nations which has prevented
full realisation of their engagement.
• Uranium Supply : There has not been significant growth in uranium supply since the 2014 bilateral
agreement. Recently DAE has turned down the offers given by Australian companies due to economic
viability
• Defence Cooperation : In Spite of common understanding with respect to Indo-Pacific region, the defence
cooperation remained undeveloped.
o AUSINDEX , AUSTRA HIND exercises can be used to share the expertise and formulate common
SOP to create deterrence in the region.
• Attacks on Indians : The racist attacks on Indians have become a major issue which is increasing the gulf
between people to people ties.

ISSUE IN NEWS
India Australia First Virtual Meet :
• Summit held in June 2020 was a significant development in bilateral relations . It concluded nine
agreements including a joint declaration on ‘Shared Vision For Maritime Cooperation in the Indo-Pacific’.
Key Agreements of the summit :

• Comprehensive Strategic Partnership: Summit enhanced the 2009 bilateral Strategic Partnership to a
Comprehensive Strategic Partnership. They enhanced the earlier 2+2 format of bilateral meeting to the
level of Foreign and Defence Ministers to discuss strategic issues at least every two years.
• Mutual Logistic Support agreement : The agreement will allow reciprocal access to military logistics facilities
and ease interoperability between two security forces which would facilitate more complex joint military
exercise.
o It would strengthen their capabilities and enhance deterrence in the region and allow both
militaries the reciprocal use of bases, humanitarian and disaster relief cooperation , port exercises
and passage exercises.
• CECA negotiations : The two nations agreed to initiate negotiations to conclude CECA which have been
suspended since 2015.
• Australia-India Strategic Research Fund: COVID-19 pandemic , other technical breakthroughs like 5G , IoT ,
AI , Blockchain offers a range of opportunities to provide innovative solutions.
• International Institutions: Both countries have decided to strengthen international institutions and ensure
rule-based world order. Both have raised concerns over the working of the World Health Organisation in
COVID-19 pandemic.
• Framework arrangement on cyber and cyber enabled critical technology cooperation: It would provide a
platform and necessary policy formulations to develop the digital economy and critical cyber technology.
• MoU on Agreement on Agriculture and allied activities: Agriculture is an important sector of both economies
and both have diverse climatic conditions. Agreement would facilitate sharing advanced technological
practices ensuring water conservation and high productivity.
• MoU on mining and processing of strategic minerals : It includes Australian rare earth metals used for
electronics , governance , vocational training and water management.
Australia to be included in Malabar Exercise:

Malabar Exercise :
• Inception :It began as a bilateral naval exercise between India and USA in 1992 which was joined by Japan
in 2015.Exercise is alternately held in Indian and pacific ocean.
• Aim :Exercise is aimed at securing free , fair , open and inclusive Indo-Pacific region and striving to establish
rule based international order.
Inclusion Of Australia :
• This would mark the first Malabar exercise where all the participants of Quad engage together militarily.
• This move will realise “Quadrilateral military alliance’ and further proceed towards formalisation of QUAD
alliance.
• It would strengthen the efforts towards maritime security , anti-piracy and securing communication
channels.
Uranium Supply from Australia
• Civil nuclear cooperation agreement 2014 enabled India to import Uranium from Australia.
• Despite these efforts, Uranium supply was not enough to meet India’s expectations.
• Declined Offer : Recently DAE- Department of Atomic Energy has turned down the offers submitted by BHP
Billiton and Heath gate Resources citing lack of viability of the proposals.
• The real progress is missing on the issue of uranium export to India hence concerned departments must
engage to find common viable grounds.

Indian Civil Nuclear Programme :

• In India nuclear energy contributes 2% of the country's electricity supply.
• India has 22 reactors out of which 8 are fuelled by indigenous uranium and 14 are under IAEA safeguards
and qualify to use imported uranium.
• Uranium importing countries : Russia , Kazakhstan ,Uzbekistan , Canada , France , Australia.
• To ensure steady supply of uranium diversification of import is required.
WAY FORWARD :
• According to the experts future engagement between India and Australia will be driven by China's actions
, as it was in the past. After the clash in Ladakh India-China relations hit an all-time low. This marked the
fertile ground for India-Australia relation to reach its all-time high.
• Views of ORF(Observer research Foundation) : Harnessing comparative advantages of goods and services
, formation of trade blocs , strategic collaboration in Indo-Pacific and digitising value chains forms the new
parameters of economic and strategic diplomacy between India and Australia.
• Both nations should strive to develop digital infrastructure utilising blockchain technology to increase the
access in the maritime spaces which would augment the trade opportunities.
• It is also important to collaborate closely in undervalued sectors like agriculture , education , tourism and
services.

EFFECT OF POLICIES ON INDIA'S INTERESTS

Previous Year Questions on this topic
2016
1. “The broader aims and objectives of WTO are to manage and promote international trade in the era of
globalization. But the Doha round of negotiations seem doomed due to differences between the developed
and the developing countries.” Discuss in the Indian perspective.
2. Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post Cold
War international scenario.
3. “Increasing cross-border terrorist attacks in India and growing interference in the internal affairs of member-
states by Pakistan are not conducive for the future of SAARC (South Asian Association for Regional
Cooperation).” Explain with suitable examples.
4. What are the aims and objectives of the McBride Commission of the UNESCO? What is India’s position on
these?
2017
1. ‘China is using its economic relations and positive trade surplus as tools to develop potential military power
status in Asia’, In the light of this statement, discuss its impact on India as her neighbour. (150 words)
2. What are the main functions of the United Nations Economic and Social Council (ECOSOC)? Explain different
functional commissions attached to it. (150 words)
3. The question of India’s Energy Security constitutes the most important part of India’s economic progress.
Analyze India’s energy policy cooperation with West Asian Countries. (250 words)
4. Indian Diaspora has an important role to play in South-East Asian countries’ economy and society. Appraise
the role of Indian Diaspora in South- East Asia in this context (250 words)
2018
1. “India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.”
Discuss. (10 )
2. A number of outside powers have entrenched themselves in Central Asia, which is a zone of interest to India.
Discuss the implications, in this context, of India’s joining the Ashgabat Agreement, 2018. (10)
3. What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially
keeping in mind the interest of India? (15)
4. In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How
should India respond to its situation? (15)
2019
1. ‘The time has come for India and Japan to build a strong contemporary relationship, one involving global and
strategic partnership that will have a great significance for Asia and the world as a whole.’ Comment.(10)
2. ‘Too little cash, too much politics, leaves UNESCO fighting for life.’ Discuss the statement in the light of US’
withdrawal and its accusation of the cultural body as being ‘anti-Israel bias’.(10)
3. “The long-sustained image of India as a leader of the oppressed and marginalised Nations has disappeared
on account of its new found role in the emerging global order” Elaborate(15)
4. “What introduces friction into the ties between India and the United States is that Washington is still unable
to find for India a position in its global strategy, which would satisfy India’s National self- esteem and
ambitions” Explain with suitable examples.(15)
2020
1. Critically examine the role of WHO in providing global health security during the COVID-19
pandemic. (Answer in 150 words)

2. ‘Indian diaspora has a decisive role to play in the politics and economy of America and European Countries’.
Comment with examples. (Answer in 150 words)
3. ‘Quadrilateral Security Dialogue (QUAD)’ is the transforming itself into a trade bloc from a military alliance,
in present times – Discuss. (Answer in 250 words)
4. What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference
to stability in the Indo-Pacific region. (Answer in 250 words)
EFFECT OF POLICIES ON INDIA'S INTERESTS
Introduction-
To quote C. Rajamohan,’ after decades of false starts and unrealised potential , India is now emerging as an ideal
swing state. In maintaining Asian stability, political modernization of middle east , management of globalisation ,India
is going to be critical factor’
Recent policy initiatives-
E-DIPLOMACY
Context: e-diplomacy is an adaptive mechanism to counter threats posed by covid pandemic and coordinate bilateral
, multilateral responses.
WHAT is it?-
• It's conducting official bilateral or multilateral summits, negotiations and agreements in virtual cyberspace
mode instead of physical meetings.
Benefits of E-diploamcy
• Physically safe: E-summits are physically safer for leaders and also time-saving. It also economises events
where costly physical journeys with entourages can be avoided.
• Fast track diplomacy and quick decision making. For ex- India and Australia upgraded their strategic
partnership into ‘COMPREHENSIVE STRATEGIC PARTNERSHIP’ in a recent virtual summit.
• More transparency in foreign policy. In virtual mode secret negotiations are difficult. Thus, it reduces role
of middleman, corruption in important arms deals negotiations etc.
• Better coordination: ensuring better coordination at bilateral and multilateral levels.
• Building public opinion- Digital platform are very useful to build public opinion on important global issues
like climate change, terrorism etc. Diplomacy is now emerging as a social institution and a medium of public
policy. The use of digital media in the world of diplomacy provides spaces for more intense interaction and
engagement between government and citizens. For ex- social media was instrumental in building public
opinion during the Arab Spring movement.
• Crisis Response Mechanism- Twitter as a crisis response mechanism has become a useful helpline for many
distressed Indians stranded abroad during COVID lockdowns. This enhances the reach of Indian embassies
and missions abroad.
Concerns regarding e diplomacy
• Cyber security- Digital diplomacy is not without risks like the possibility of information leak, hacking and
maintaining the anonymity of internet users. Diplomatic business involves sensitive data having national
security implications.
• Productivity- Less productive where crucial sticking points need ironing out.
• Propaganda- Digital media can be used for spreading propaganda and harming core national interests like
sovereignty. For ex- the recent tweets by celebrities like Greta Thunberg, Popstar Rihanna supporting the
farmers protest using Fake Toolkit.
• Jingoism- World leaders have even resorted to a war of words on twitter to fuel nationalistic sentiments and
score domestic brownie points. For ex- Twitter War between Trump and North Korean Leader Kim Jong-un

Way forward-
• Twiplomacy: Twitter diplomacy, also "Twiplomacy" or "hashtag diplomacy", is the use of social media
website, Twitter, by heads of state, leaders of intergovernmental organizations (IGOs), and their diplomats
to conduct diplomatic outreach and public diplomacy. Twiplomacy is direct, often unencumbered and
enables wider reach .
• Cybersecurity- strengthening cyber security infrastructure to prevent any breach of data.
Conclusion: Digital diplomacy is characterised by hybridity and breaks through the limitations of traditional
diplomacy. India would have to fast adopt and adapt to these irreversible changes.
RISE OF THE MINILATERALISM

WHAT IS IT? -
• Minilaterals allow a group of MIDDLE POWERS with shared interests and values to bypass seemingly
moribund frameworks, and resolve issues of common concern. It is a smarter, more targeted approach.
Context:
• Failure of multilateralism and retreat of globalisation and rise of trade protectionism.
• Decline of US hegemony and liberal international economic order
• Rise of Unilateralism by china and aggressive WOLF WARRIER diplomacy in Indo-pacific.
• Failure of multilateral institutions like WTO, UN - It necessitate like-minded countries working together. It
has resulted in regional groupings and FTAs like RCEP etc.
Advantages of minilateralism
• To address the inefficiencies of multilateralism For ex- The G20, G-7 etc
• Containing unilateralism by china- to strengthen defence and security cooperation For ex- the QUAD,
• Flexibility- These arrangements are ad-hoc, flexible and voluntary, and follow a bottom-up approach
• EFFICIENCY- expedite decision-making and facilitate policy coordination on important focus areas.
Concerns over minilaterals
• Promote voluntary and non-binding targets commitments, it leads to compliance issues.
• Undermine Legitimacy of global institutions- like UN,WTO.
• Can escalate great power competition ex-China-led Shanghai Cooperation Organisation and the Western-
led G20 and G7.
• lacks resources and legitimacy enjoyed by multilateral institutions due to broader membership. They also
lack robust institutional infrastructure to achieve the aims outlined.
WAY FORWARD-
• Reviving multilateral institutions through coordinated efforts by MIDDLE POWERS like India, Japan,
• Building broader consensus about freedom of navigation, free trade and rules based order.
CONCLUSION-
• As suggested by Rory medcalf, issue is not how US china rivalry is played out but how middle powers will
play. In this context minilaterals provide efficient and viable option for these powers to ensure rule based
international order and manage globalisation.
INDIA’S VACCINE DIPLOMACY- VACCINE MAITRI PROGRAMME

Definition
• Vaccine diplomacy is the branch of global health diplomacy in which a nation uses the development or
delivery of vaccines to strengthen ties with other nations
CONTEXT
• India is known as the world's pharmacy and has provided 6.6 crore vaccines for COVID -19 to almost 90
countries. India has also provided vaccines and medical supplies to poor African and Latin American countries
to deal with epidemics like ebola, swine flu, AIDS etc.

POSITIVES
• Countering Vaccine Nationalism whereby developed countries pre book major chunk of vaccines for their
populations thereby depriving developing and LDC’s of vaccines.
• Enhanced global status- recognition of India's role as 'pharmacy of the world'.
• Making India centre of global supply chain in health and pharmaceutical industry. This can prove
gamechanger in context of weaponization of supply chains by China.
• Economic- Promoting medical tourism and reviving economy post COVID-19
• Leadership - strengthening India's position as leader of the developing world.
• strategic dimension- It will strengthen India’s claim on permanent seat in UNSC and give greater say in other
forums like G-20 , WTO etc.
CONCERNS
• Vaccine nationalism- When a country manages to secure doses of vaccines for its own citizens or residents
and prioritises its own domestic markets before they are made available in other countries it is known as
‘vaccine nationalism’. This is done through pre-purchase agreements between a government and a vaccine
manufacturer.
o For ex- USA banning export of raw materials to India, developed countries hoarding excess vaccines
than their need.
• IPR laws- Major developed countries prefer strict IPR laws which may impact Indian pharma industry as they
may not be able to produce affordable vaccines.
o Recently, the European Union, UK, Switzerland and Korea reiterated their opposition to waiving
TRIPS provisions as a response to COVID-19.
• Impact on domestic vaccination programme- as India exported 66 million of vaccines produced, supply to
states has been disrupted thereby negatively impacting domestic vaccination programme.
WAY FORWARD
• Self-sufficiency in production of raw materials- Dependence on China ,USA for raw materials makes Indian
pharma sector vulnerable to supply side shocks.
• Strengthening domestic R&D capacity by increasing budgetary allocation , improving industry academia
linkages and promoting innovation based start-up ecosystem.
• Ease of doing reforms such as liberalisation of FDI rules, labour law reforms etc to attract global pharma
companies to set up their manufacturing units in India.
CONCLUSION-
• India needs to balance its domestic needs with diplomatic commitments. Though vaccine diplomacy may
help increase India's stature and strengthen its claim to gain its rightful place in the COMITY OF NATIONS yet
the domestic requirement under the world's largest vaccination programme can’t be ignored.
SUPPLY CHAIN RESILIENCE INITIATIVE

INTRODUCTION-
• It was proposed by Japan along with India and Australia for diversification of supply risk across a clutch of
supplying nations instead of being dependent on just one or a few. It was launched recently.
WHAT IS SUPPLY CHAIN?
• It is network that connects multiple countries and continents for purpose of transport of goods and
services.
• It involves flows of goods, services and people.
Why in news?
• Supply Chain Disruption; Amidst Covid-19 due to heavy dependence on China and weaponization of supply
chain by China.
• The US-China Trade Tensions: More than 20% of the world’s supplies are dependent on China and the USA.
Trade tensions between 2 countries can disrupt whole global supply chain endangering globalisation and
liberal international economic order based on free trade.

• To Counter China’s Political Influence on the Indo-Pacific Region: China’s expansionist approach in the South
China Sea and weaponization of supply chains to gain EEZ in south china sea has highlighted need for de-
risking supply chains.
Objectives
• Restructuring supply chains away from China due to the increased security risks associated with production
networks significantly embedded in or connected to China.
• To build on the existing supply chain network; by setting up industrial parks and onboarding ASEAN countries
in the SCRI
• To attract FDI and to turn the Indo-Pacific zone into an economic powerhouse by improving sea and air
connectivity between the three countries.
• To build a mutually complementary transparent trade relationship between countries in Indo-pacific based
on free and fair terms.
Way forward-
• Operational Risks: It must check volatility in the supply chain with improved real-time transparency and
mitigation solutions.
• Reforming India’s Perceived Image: To take full advantage of the SCRI, India must take progressive steps
towards cleaning up its perceived image of a protectionist country.
• Streamlining India’s Manufacturing & Supply Bottlenecks: Need to push through long-pending legislation
that aims to address the structural bottlenecks w.r.t Land, Labour, Law, and Liquidity.
• Collaboration for Technology-Driven Supply Chain: The partner countries must collaborate and share
knowledge to adopt an automated supply chain driven by state-of-the-art technology.
GEOPOLITICS OF TECHNOLOGY
• Technology, especially in the digital domain, is now deeply affecting all human activities and, by extension,
international relations. Artificial intelligence, blockchain and 5G capabilities are fast becoming the frontlines
of either global competition or coordination.
HOW TECHNOLOGY CAN FOSTER GEOPOLITICAL COOPERATION?
• ECONOMIC-5G alone is projected to generate $13 trillion in global economic value and 22 million jobs by
2035. And artificial intelligence is projected to add over $15 trillion to the global economy by 2030.
• DATA BASED POLICIES- policies and international agreements based on technologies can enhance efficiency
in achieving SDG’s, Paris climate goals etc.
• STRENGTHENING GLOBALISATION- free flow of goods, peoples and ideas can build global society
• FOSTERING INNOVATIONS and start-ups and new business models.
CONCERNS-
• Nationalisation and weaponization: The single biggest challenge around technology is the way it is being
nationalized and weaponised. There is a new map of power in the modern world that is no longer defined
by geography, by control of territory or oceans but rather by control over flows of people, goods, money and
data and by exploiting the connections technology creates. In this way, every connection between nations –
from energy flows to IT standards – becomes a tool of geopolitics.
• GEOPOLITICAL RIVALRY- among major countries like USA,EU ,CHINA for leadership in technology domain like
5g,big data etc.
• RETREATING GLOBALISATION and rise in protectionism leading to intensified tensions between USA and
china
• North South Divide on important issues like climate change, trade protectionism, disagreement on OSAKA
TRACK etc.
• ISSUES OF NATIONAL SECURITY AND SOVEREIGNTY- free flow of data and threat of state sponsored cyber
attacks such as the stuxnet used by USA to derail Iran's nuclear programme.
• Surveillance capitalism- the battleground for geopolitical influence will be centred on who owns the tech
companies, who governs them and how their supply chains will be integrated. For example, India has banned
several Chinese apps as they were sharing the data of Indian citizens with Chinese government.

ISSUES IN INDIA W.R.T TECHNOLOGY

• POOR INSTITUTIONAL CAPACITY- India’s public and private spending in R&D is very less compared to
developed countries.
• POLICY UNCERTAINTY- multiple regulators, lack of coordination among departments, absence of coherent
and comprehensive domestic policy.
• EVOLVING TECHNOLOGIES- THIS need continuous review and upgradation of regulatory mechanisms
• CHINESE INVESTMENT- Chinese interest in Indian technology rapidly increased in recent years, with Alibaba
and Tencent leading the way. Majority of Indian unicorn start-ups have Chinese funding.
WAY FORWARD-
• Enacting Personal Data Protection Bill for better regulation of Data Flow.
• GLOBAL COLLABORATION- With silicon valley of USA to foster start up innovative ecosystem, strengthening
and streamlining IPR laws and ensuring funding for innovative business models.
• STRENGTHENING INSTITUTIONAL CAPACITY- in fields of AI, BIG DATA etc.
• LEVERAGING MULTILATERAL FORUMS- to articulate Interests of India and other developing countries to
prevent DATA COLONIALISM attempts by developed countries.
Conclusion
• The government could consider appointing its own coordinator for technology. The aim should not be to add
to the bean count of global tech ambassadors, but to appoint at least a minister of state-ranked individual
to synthesise India’s pulsating story with the view to effectively shape the geopolitics of technology.
TECH COLD WAR BETWEEN USA AND CHINA

• The rise of China and decline of the USA has altered the global balance of power. While ideology was a key
factor in the cold war between the USA and Russia, technology has emerged as a key factor in the new cold
war between the USA and China.
WHY IN NEWS-
• The US has moved to block China's access to chip making tools and designated Huawei, ZTE as national
security threats. The UK has also banned Huawei from 5G rollout.
• A new set of US restrictions imposed on the use of chipmaking tools in May means Huawei could face
shortages in its supply of specialist chips.
IMPACT-
• GROWING COMPETITION to dominate next-generation technologies such as 5G networks and artificial
intelligence
• For China- The 5G network in China relies on key components from the US ,but new US restrictions on the
use of chipmaking tools mean Huawei could face shortages in the supply of specialist chips.
• USA,s policy rests on restricting the flow of technology to China, restructuring global supply chains, and
investing in emerging technologies at home. policy rests on restricting the flow of technology to China,
restructuring global supply chains, and investing in emerging technologies at home.
WAY FORWARD
• India needs to incentive domestic industries and increase public funding in critical technologies to emerge
as a global player in technological revolution.
DATA FREE FLOW WITH TRUST

WHAT IS IT?-
• It is the key underlying concept of the Osaka Track, launched by heads of governments under Japan’s G20
leadership in 2019.
• It maps a multi-dimensional architecture for international cooperation on data flows. It favours free flow
of data between countries.

WHY INDIA IS OPPOSED TO IT?

• NON COMPREHENSIVE- the concept of DFFT is neither well understood nor is comprehensive enough in
the legislation of many countries.
• DIGITAL DIVIDE- need for policy space for developing countries
• POLICY SPACE- reforms must preserve fundamental principles like non-discrimination, inclusiveness,
recognition of special and differential treatment, and consensus based decision making.
INDIA’S DRAFT ARCTIC POLICY

WHY IN NEWS?
• India has unveiled a new draft ‘Arctic’ policy which commits to expanding scientific research, “sustainable
tourism” and mineral oil and gas exploration in the Arctic region.
• India has also launched ACT FAR EAST policy which is an extension of ACT EAST policy and has both
geostrategic and geo economic significance.
INDIA AND ARCTIC
5 PILLARS OF POLICY-
• Science and research activities,
• Economic and human development cooperation,
• Transportation and connectivity,
• Governance and international cooperation, and
• National capacity building.
OBJECTIVES-
1- GEOECONOMIC-
• RESEARCH- putting in place Arctic related programmes for mineral/oil and gas exploration
• Energy security- Exploration of resources, including minerals and hydrocarbons,
• CLIMATE RESEARCH, ENVIRONMENTAL MONITORING- Arctic research will help to study melting rates of the
third pole — the Himalayan glaciers.it will also help understand the impact of climate change on monsoon.
2- GEOSTRATEGIC
• MARITIME COOPERATION WITH RUSSIA- Russia is developing its northern sea routes. Also both countries
are discussing Chennai to Vladivostok maritime corridor.
• STRENGTHENING INDIA-RUSSIA RELATIONSHIP- India offered 1 billion dollars line of credit for development
of the far east region of Russia.
• COUNTERING CHINA- China has launched ‘Polar silk road’ and aspire to be ‘Polar Power’.
ABOUT ARCTIC politics-
• The region is governed by the ARCTIC COUNCIL comprising Five Arctic littoral states — Canada, Denmark
(Greenland), Norway, Russia and the USA (Alaska) — and three other Arctic nations — Finland, Sweden and
Iceland.

• India launched its first scientific expedition to the Arctic in 2007 and set up a research station ‘Himadri’ in
the international Arctic research base at Svalbard, Norway. It has two other observatories.
WAY FORWARD
• As suggested by Shyam Saran India’s institutions lag behind its ambitions thus India needs proactive
diplomacy along with timely completion of commitments and projects.
ONE SUN , ONE WORLD , ONE GRID

WHAT IS IT?
• It is a trans-national electricity grid supplying solar power across the globe. The idea was first floated by PM
Modi in 2018 during the first assembly of the International Solar Alliance (ISA)
• It will connect 140 countries through a common grid that will be used to transfer solar power.
• The vision behind the OSOWOG mantra is “the Sun never sets” .
BENEFITS-
• MEETING INDC GOALS of A total of 40% of the installed capacity for electricity will be from non-fossil fuel
sources
• ALTERNATIVE TO OBOR- Several policy experts cited it as part of India’s answer to China’s One Belt One Road
infrastructure initiative which entails investment in close to 70 countries.
ISSUES-
• DEPENDENCY ON CHINA: India is dependent on Chinese imports for solar equipment, such as solar cells,
panels, etc
• VIABILITY- Due to the development of advanced electricity storage technologies, it becomes less viable to
follow the sun at any latitude or be dependent on its rays all the time.
• VULNERABILITY- The bigger the electricity grid the more vulnerable it is to accidents, natural disasters, cyber-
attacks etc that can disrupt electricity supply.
CONCLUSION-
• OSOWOG not only provides sustainable and renewable energy security but it also provides leadership
opportunity to India.
RELIGION AND CULTURE AS TOOL OF SOFT POWER -

INTRODUCTION-
• Attraction rather than coercion: Soft power is an ability to obtain preferred outcome by attraction rather
than coercion. Culture, religion, constitutional values etc are important instruments of soft power.
• Cultural diplomacy is the deployment of a state’s culture in support of its foreign policy goals. It is a subset
of the practice of public diplomacy.
• Public diplomacy is a Government’s communication with external audiences in order to positively influence
them. It underpins people to people contact and is seen as a confidence building measure across borders.
• Dhruv Jaishankar- India is a model of soft power but also a country that makes remarkably poor use of it.
• PM Modi has noted 5 important pillars of India’s soft power

- Samman (dignity)
- Samvaad (dialogue)
- Samriddhi (shared prosperity)
- Suruksha (regional and global security)
- Sanskriti evam Sabhayata (Cultural and civilizational links).
Culture as a tool of soft power

• Civilizational Values- ‘Vasudhaiva Kutumbakam’ was among the first precursors of Global Citizenship as it is
understood today. It is based on the concept that all individuals are collectively responsible towards each

other and their shared future. It forms the basis of UNESCO’s ongoing dialogue between cultures, religions
and civilisations.
• Achieving Political Goals- The present government has sought to embed India’s cultural values in a larger
geopolitical context and has put special emphasis on the idea that India can be the ‘viswaguru’ or world
teacher.
• Preventing conflict and promoting peace- Cultural diplomacy has emerged as the force to connect, to build
bilateral relations and to heal the raptures created by history and politics. Further, cultural diplomacy based
on Indian values like peace, brotherhood, coexistence and prosperity helps bridging trust gap between
countries not only in India’s neighbourhood but beyond.
• Religious tourism – It can help States to overcome years of mutual mistrust and push forward the process of
regional integration.
- For ex- India has revived the old Buddhism tourism circuit to link up with Nepal, Sri Lanka,
Bhutan and other States in our wider neighbourhood which had Buddha’s footprints.
• Religion as tool of soft power- Islam and Buddhism are important pillars of India’s soft power in Middle East
and South East Asia respectively.
• Diaspora- India’s cultural and religious soft power is built by diaspora living abroad and propagating Indian
civilizational values.
- For ex- Spread of Yoga, Ayurveda etc.
GOVERNMENT EFFORTS
• INSTITUTIONAL ARRANGEMENTS- INDIAN COUNCIL OF CULTURAL RELATIONS- ICCR is involved in India’s
external cultural relations or cultural diplomacy, through cultural exchange with other countries and their
peoples.
• PROJECT MAUSAM- it aims to re-connect and re-establish communications between countries of the Indian
Ocean world, which would lead to an enhanced understanding of cultural values and concerns.
• DIASPORA- Indian Diaspora namely NRIs and PIOs play a vital role in protecting its Soft Power. Both put
together add up to twenty million. The best example of this was during the negotiations of the Indo-US
Nuclear Deal in the early years of the first decade of this century.
• BUDDHIST CIRCUITS- It is an attempt to attract Buddhist tourists to India, alongside Sri Lanka and Nepal with
the Buddhist circuit spanning over all the three countries.
• MIDDLE EAST- Islam forms important link between India and middle eastern countries. For ex- India has 2nd
largest Shia Muslim population after Iran.

REGIONAL AND GLOBAL GROUPINGS
SAARC
PYQ
1. “Increasing cross-border terrorist attacks in India and growing interference in the internal affairs of several
member-states by Pakistan are not conducive for the future of SAARC (South Asian Association for
Regional Cooperation).” Explain with suitable examples. 2016
• The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental
organization and geopolitical union of states in South Asia. The SAARC was founded in Dhaka in December
1985. Its secretariat is based in Kathmandu, Nepal.
• Its member states are Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.
The SAARC comprises 3% of the world's area, 21% of the world's population and 4.21% of the global
economy.
• The objectives of the SAARC are
1- Cultural and social: To establish better cultural and social ties amongst the member states to promote
peace in the region
2- To promote trade amongst the members in order to improve the economic status of its members
3- Social wellbeing :To accelerate the pace of social and economic development of the countries and raise
it from a region of poverty to a region of economic and social wellbeing.
4- Further the cause of peace, progress and stability in the region.
SIGNIFICANCE OF SAARC FOR INDIA

• Regional Integration- At present globalisation is facing challenge and there is growing preference for
nativism, self-dependence and localising supply chains. In this context, regional initiatives will become the
“Goldilocks option” (not too hot and not too cold), or the happy medium between globalisation and hyper-
nationalism.
• Socio-Economic development in the region- SAARC provide an effective platform to boost cooperation
among countries to promote trade and developmental projects to improve standard of life and poverty
alleviation.
• Countering Terrorism- by cooperating with member countries and strengthening security and defence
cooperation through intelligence sharing and collaboration between law enforcement agencies.
• Containing China and its OBOR project by engaging with regional countries in developmental process and
economic cooperation.
• Indi-Pacific and Act East Policy- SAARC can prove to be gamechanger to link south Asia with south-east Asia
economically, socially as well as politically.
• India’s Soft Power- SAARC provides an important platform to build a regional architecture for encouraging
cultural, religious as well as spiritual contacts and providing developmental assistance to member countries.
• India’s global ambitions- In words of M.K. Narayanan “If India is not seen to be actively involved in ensuring
that the region is at peace and is functioning in conformity with its worldview then any claim of global
leadership will be nothing more than treading water.” In this context SAARC is important for India to build
regional security architecture to combat terrorism and other regional issues.
ACHIEVEMENTS OF SAARC
• SAPTA and SAFTA- To boost regional trade among countries of the region.

• South Asian Identity- The most important achievements of SAARC are to bring the members of the states
close and think about regional issues and identity. They share common heritage, culture, clothing, political
system etc.
• South Asian University- it is an international university established in 2010. At present, the University is
offering postgraduate and doctoral programs in several disciplines. The university aims to create a center of
excellence and produce leaders who identify themselves as citizens of the region with a common vision of
success for both their home country and the neighbors.
• SAARC Development Fund- It was established in 2010. The Fund serves as the umbrella financial institution
for SAARC projects and programs which aims to promote the welfare for the people of the South Asian
region; to improve their quality of life, economic growth, social progress and poverty alleviation in the region.
• SAARC Arbitration Council- is an inter-governmental body authorized to provide a legal framework or forum
within the region for fair and effective settlement of industrial, commercial, trade, investment banking, such
their other issues, and disputes, as may be referred to it by the member states and their people.
SAARC and COVID-19
SAARC and COVID-19

• During the virtual leaders’ summit, India’s proposal to launch a COVID-19 Emergency Fund was given
positive reception. Within days, all the countries, except Pakistan, contributed to it voluntarily, bringing
the total contributions to $18.8 million.
• During the video-conference of senior health officials of the SAARC countries, India proposed a shared
electronic platform for all SAARC nations to share and exchange information, knowledge, expertise and
best practices for jointly combatting the coronavirus epidemic.
• It has accepted the requests and provided the support for medical equipment, medicines and other
supplies from SAARC members.
• India has also provided vaccines to its neighbours through ‘Vaccine Maitri’ programme.
Failures of SAARC
However, SAARC has failed in its objective of regional integration due to various reasons like-
• Indo-Pak Relations: Escalated tension and conflict between India and Pakistan have severely hampered the
prospects of SAARC.
• No regular meetings- After terrorist attacks on Uri, SAARC meetings could not be held due to India-Pakistan
tensions. Year 2021 marked 7th year since last summit where SAARC leaders met.
• Weak Cultural Identities – National identities are not yet consolidated in countries of south Asia. This limits
the prospects of cooperation among the countries due to trust deficit among members.
• Unresolved issues: The region still faces many unresolved border and maritime issues. Further, Fear of India's
Big Brotherly attitude among small neighbors has reduced scope of cooperation at SAARC.
• India’s apprehension: Such an organization might be used by her smaller neighbors to extract undue
concessions by expressing their fear of being bullied by India.
• Limitation in SAFTA: The implementation of SAFTA has not been satisfactory. Due to this South Asia remains
the least integrated region in the world with trade among members being less that 5% of their overall trade.
• Decision Making- As per SAARC charter, all decisions are taken by consensus. This has enabled Pakistan to
oppose every initiatives of India on connectivity and trade.
• Bilateral issues like Bangladesh’s concerns over CAA-NRC, Madhesi issue and Kalapani Border issue between
India and Nepal etc.
• Rising Chinese footprint- According to a Brookings India study, most South Asian nations are now largely
dependent on China for imports despite geographical proximity to India. Apart from all-weather friendship
between Pakistan and China, Nepal is also moving closer to China for ideational and material reasons.
Further, China is wooing Bangladesh by offering tariff exemption to 97% of Bangladeshi products, and has
intensified its ties with Sri Lanka through massive investments.

WAY FORWARD-
• Reviving SAARC to deal with China- Several foreign policy experts argue that India’s strategic dealing with
China has to begin with South Asia. In this regard, it is important to reinvigorate SAARC, which has been in
the doldrums since 2014.
• Increasing people to people contact- Solely relying on the governments to bring about an integration of the
region may not be enough. An active participation of the fifth estate (social media) and citizens can
strengthen people to people contact and hence bring about regional integration.
• Economic Integration- India should take the lead and work with its neighbours to slash the tariff and non-
tariff barriers. There’s a need to resuscitate the negotiations on a SAARC investment treaty, pending since
2007.
• Greater resources and focus on SAARC instead of BIMSTEC- BIMSTEC cannot replace SAARC for reasons such
as lack of a common identity and history among all BIMSTEC members. Moreover, BIMSTEC’s focus is on the
Bay of Bengal region, thus making it an inappropriate forum to engage all South Asian nations.
• Ease of doing business- for the freer transit trade throughout the region, development of supply and logistic
chains, single-window and digitised clearance systems, wider use of trade lines of credit, denser connectivity,
smoother cross-border inspections, and reduced transaction costs, using technology as a force multiplier.
• Developing Modus Vivendi to work with Pakistan. As India already attends summits of SCO, where Pakistan
is also a member, it should also consider reviving regular SAARC summits. Nepal and Sri Lanka have already
urged India to reconsider its decision of boycotting the meetings.
CONCLUSION-
• The biggest challenge to India’s leadership in South Asia comes from China. Seen through Beijing’s prism,
India’s SAARC neighbourhood may be a means to contain India. In this context, India needs to find its own
prism with which to view its South Asian neighbourhood as it should be: a unit that has a common future,
and as a force-multiplier for India’s ambitions on the global stage. For this, revival of SAARC is essential to
realise this goal.
12TH BRICS SUMMIT

WHY IN NEWS?
• On November 17, 2020, the 12th BRICS Summit was held virtually and was hosted by Russia. The theme of
this year's BRICS Summit was ‘Global Stability, Shared Security, and Innovative Growth’.
HIGHLIGHTS-
• Prime Minister Modi highlighted several issues while addressing the Summit including Terrorism, United
Nation Security Council (UNSC) Reforms, Collective response to COVID-19 pandemic and Aatmanirbhar
Bharat Campaign
• Importance of BRICS summit for India and China -Amid the border standoff, Prime Minister Modi and Chinese
President Xi Jinping faced each other in the BRICS summit for the second time after the Shanghai Cooperation
Organisation (SCO) Summit. Bilateral talks were held between India and China on the pressing issues.
CORE OBJECTIVES OF BRICS-
• Centrality of rules based, transparent, non-discriminatory, open and inclusive multilateral trading system
based on WTO.
• Reform of global governance institution
• Democratisation of UN and expansion of UNSC
• Developmental issues like development of Africa, Latin America and issues like food security etc.
RELEVANCE OF BRICS-
• As a counterweight to the G-7 and bridge between the developed and developing world.
• BRICS countries are rich in natural resources, have strong military industrial complexes and skilled
manpower.
o Rise of BRICS has been described by Fareed Zakaria as decline of the west and rise of rest.

• Multipolar world order- BRICS members have the same objective of multipolar world order. They can also
play important role in preventing the ‘New Cold War’ between the USA and China as BRICS countries
together accounts for 42% of the world’s population, a third of the global GDP and around 17% share of
world trade.
ISSUES
• CHINESE UNILATERALISM- China no longer needs BRICS to further its agenda.so its interest in forum has
declined.
• CHANGING GEOPOLITICAL ENVIRONMENT- While Russia has sided with China against the USA, India is
working with the USA in QUAD.
• TRADE- intra BRICS trade amounts to only 6.5% of their total trade.
• BRICS failed to achieve any of its core goals like reform of the UN , Multipolar world order etc.
• Various regional organisations like ASEAN undermined BIMSTEC due to duplication of agenda.
Significance of BRICS for India

• Geopolitical Significance- BRICS platform provides opportunity for India to balance its strategic interests
between the USA and the Russia-China Axis.
• Independent Foreign Policy- India’s membership of the SCO and BRICS on the one hand and of QUAD reflect
India’s foreign policy of ‘Strategic Autonomy.’
• South-South Cooperation- In recent times, there is increasing divergence between developed and
developing countries on issues such as Data Flow, climate change etc. In this context BRICS provides an
effective platform to form a united front of like-minded countries to oppose the agenda of developed
countries.
o BRICS members also play an important role in the G20, in shaping global economic policies and
promoting financial stability.
• Reform of UNSC- Support of BRICS members including China and Russia is very important for achieving India’s
goal of permanent seat at UNSC.
RECENT NEWS ABOUT BRICS-

BRICS NATIONAL SECURITY ADVISERS MEET
• The 10th meeting of the NSAs was hosted by Russia in September 2020.
• The participants exchange views on the key issues on the global, regional and national security agendas,
including strategic stability, biological security and healthcare, as well as security in the use of ICTs.
ANTI-DRUG WORKING GROUP BRICS
• The common points emerged during the discussions include need for real time information sharing among
the member states and need to curb increased drug trafficking through maritime routes. Misuse of darknet
and other advanced technologies for drug trafficking was one of the key focal areas of the meeting.
BRICS 5G INNOVATION BASE
• China has proposed the creation of a BRICS innovation base in China to take forward 5G and Artificial
Intelligence (AI) cooperation among the five countries of BRICS .
• This move could pose a conundrum before India who is having issues with China in recent times but other
countries seem to willing to allow China’s participation in their 5G networks.
WAY FORWARD-
• FOCUSING ON CORE OBJECTIVE of reviving and democratizing multilateral institutions like WTO
• EXPANDING NDB to develop and strengthen south-south cooperation.
• BRICS can act as a useful forum to discuss bilateral issues between countries and can help members
formulate collective stance on important issues like climate change etc.

BAY OF BENGAL INITIATIVE FOR MULTI -SECTORAL TECHNICAL AND ECONOMIC COOPERATION
(BIMSTEC)
WHAT IS IT?
• BIMSTEC is a regional organization comprising seven Member States lying in the littoral and adjacent areas
of the Bay of Bengal constituting a contiguous regional unity. It came into being on 6 June 1997 through the
Bangkok Declaration. Its secretariat is in Dhaka.
PRINCIPLES OF BIMSTEC-
• Sovereign equality, Territorial integrity, Peaceful coexistence and mutual benefit, No-interference in
internal affairs, Political independence.
Evolution of BIMSTEC
OBJECTIVES
As stated in the Declaration of
BIMSTEC, its objectives are:
• RAPID ECONOMIC
DEVELOPMENT
• TO PROVIDE ASSISTANCE to
each other in the form of
training and research
facilities in the educational,
professional and technical
spheres.
• CONNECTIVITY- To
cooperate more effectively
in joint efforts that result
in their living standards,
including generating
employment and improving
transportation and
communication
infrastructure.
• GLOBAL CO-OPERATION- To
maintain close and beneficial
cooperation with existing
international and regional
organizations with similar
aims and purposes.
• REGIONAL INTEGRATION-
through connectivity and
cooperation and leveraging
Blue Economy.
IMPORTANCE
• BRIDGE BETWEEN SOUTH AND SOUTH EAST ASIA- BIMSTEC has also established a platform for intra-regional
cooperation between SAARC and ASEAN members. The objectives of the BIMSTEC are in conjunction
with India’s policies of ‘Neighbourhood First’ and ‘Act East’
• GEOECONOMIC IMPORTANCE- The BIMSTEC region is home to around 1.5 billion people which constitute
around 22% of the global population with a combined GDP of 2.7 trillion economy.

- Theatre of convergence: The coming years will most likely be characterised by a “theatre of
convergence and competition for China’s Belt and Road Initiative, India’s Act East policy, and the
Asia–Africa Growth Corridor.” In this context BIMSTEC becomes important to build on these
convergences.
• SECTOR-DRIVEN COOPERATIVE ORGANIZATION- It covers total 14 sectors of cooperation.
• CONNECTIVITY-
▪ Kaladan Multimodal Project – links India and Myanmar.
▪ Asian Trilateral Highway - connecting India and Thailand through Myanmar.
▪ Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement - for seamless flow of passenger and
cargo traffic.
▪ India has also circulated a draft text for the BIMSTEC Coastal Shipping Agreement.
▪ In the recent summit, the members conveyed their support for the Master Plan for Transport
Connectivity.
• It is important for the success of neighbourhood First Policy, Act East Policy.
• ALTERNATIVE TO SAARC- India has clubbed BIMSTEC division with SAARC division in MEA and also invited
BIMSTEC members instead of SAARC members during 8th BRICS summit for BRICS-BIMSTEC outreach summit.
• Counter terrorism and Transnational Crime-
- Against terrorism: BIMSTEC, through its various sub-groups under Counter Terrorism and Transnational
Crime has been working towards strengthening cooperation against terrorism.
- Common security space: Three Meetings of the BIMSTEC National Security Chiefs (NSCs) have so far
been held underscoring the importance of recognizing the Bay of Bengal as common security space and
agreed to work out collective strategies for common response.
• Regional Integration- In the recent virtual summit, the foreign ministers cleared the draft for the BIMSTEC
charter.
• Environment and Disaster Management-
- Capacity building: The BIMSTEC Summit in 2014 resolved to enhance cooperation in environmental
protection and sustainable development and promote capacity building in the area of disaster
management.
- Disaster response: Member countries also undertake BIMSTEC Disaster Management Exercise for
capacity building of countries for disaster response.
- Addressing regional susceptibilities: India has also taken the initiative for addressing regional
susceptibilities by setting up a BIMSTEC Centre for Weather and Climate (BCWC), a state-of-the-art
facility in NOIDA, in 2014.
- Sharing data: India has also set up a link between BIMSTEC countries through Tsunami Early Warning
Centre and has been sharing data from the Tsunami Early Warning Centre since 2006.
ISSUES-
• NEGLECT BY MEMBER STATES: India’s engagement has been episodic and ad hoc and other major members
like Thailand and Myanmar are focused more towards ASEAN than BIMSTEC
• BILATERAL ISSUES BETWEEN MEMBER NATIONS: Bangladesh is facing one of the worst refugee crisis of
Rohingyas. There is a border conflict between Myanmar and Thailand. Further, the military coup in
Myanmar, brutal crackdown of protesters and continuation of popular resistance resulting in a extended
impasse have produced a new set of challenges.
• No FTA: BIMSTEC FTA was being negotiated since 2004, but it has not been concluded yet. Even in the recent
conference, there was no reference of it in the trade and economic dossier.
• INCONSISTENCY IN MEETINGS: BIMSTEC planned to hold summits every two years, ministerial meetings
every year, but no summit was held after 2018. Also, while most of the regional organisation (SCO, ASEAN,
G20) were able to meet at a high political level even during the Pandemic, BIMSTEC leaders failed to meet.
• Uncertainties over SAARC impact the development of BIMSTEC.
o For instance, BIMSTEC members Nepal and Sri Lanka want a revival of the SAARC summit.
• Asymmetry among members: There exist significant asymmetries among the BIMSTEC countries which
cannot be overlooked when it comes to conducting negotiations as well as implementations.
o For example, while Thailand, India ,Sri Lanka have made considerable progress in socio-economic
indicators, countries like Nepal, Myanmar are still battling with political instability , poverty etc.

• Poor Physical Infrastructure- The BIMSTEC region is beleaguered by poor road and rail connectivity,
insufficient last-mile links and cumbersome customs and clearance procedures which hamper trade.
WAY FORWARD
• Leadership by India- India needs to put more resources and adopt proactive diplomacy for the success of
BIMSTEC.
• Project Delivery- Connectivity projects like Kaladan Multi Modal Transport Corridor needs to be completed
at earliest.
• Improving connectivity- Physical infrastructure is essential for linking the region not only in terms of boosting
connectivity and trade but also for facilitating people-to-people interactions. Thus, for BIMSTEC to evolve
into a functional and vibrant platform, it is imperative that expanding and deepening connectivity among the
Bay littorals be treated with utmost importance.
• Early Finalization Of FTA- FTA can lead to a levelling of capacities, boost productivity and improve
quality. Further, it can also bring regional integration and have positive spill over effect in other areas such
as security cooperation, political stability etc.
• Members also needs to cooperate in Blue Economy for sustainable development of maritime resources and
socio-economic development of coastal communities.
• Regular Meetings- regular annual summits are needed to convince the region about strong commitment of
the members to the new vision they have for this unique platform linking South Asia and Southeast Asia.
Conclusion-
• Pivot to its ‘Act East Policy’: The BIMSTEC has a huge potential to emerge as a platform that accelerate the
process of the regional integration and inclusive growth. For India, BIMSTEC can act as pivot to its ‘Act East
Policy’.
• However, as per Shyam Saran,’ Our capacities and institutions lag behind our ambitions. Thus, It is time to
move from an event oriented to process driven approach to revitalise the platform.’
ASEAN AND INDIA

INTRODUCTION-
• India-ASEAN relationship represents one of the most successful areas of Indian foreign policy. S-E Asia is the
region where India ‘punches beyond its weight’. ASEAN has been the gateway for India’s engagement for
wider Indo-pacific.
ABOUT ASEAN-
• The Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok,
Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration). It comprises of 10 members.
AIMS AND PURPOSES- As set out in the ASEAN Declaration, the aims and purposes of ASEAN are:
To accelerate the economic growth, social progress and cultural development
1- To promote regional peace and stability
2- To maintain close and beneficial cooperation with existing international and regional organisations
FUNDAMENTAL PRINCIPLES
• Mutual respect for the independence, sovereignty, equality, territorial integrity
• Sovereignty- The right of every State to lead its national existence free from external interference,
subversion or coercion;
• Non-interference in the internal affairs of one another;
• Settlement of differences or disputes by peaceful manner;
• Effective cooperation among themselves.
ASEAN COMMUNITY
The ASEAN Community is comprised of three pillars, namely the
• ASEAN Political-Security Community,
• ASEAN Economic Community and

• ASEAN Socio-Cultural Community.
Recent news-
17TH ASEAN-INDIA SUMMIT

WHY IN NEWS?
Prime Minister Shri Narendra Modi participated in the 17th ASEAN-India Summit in November 2020 and underlined
the centrality of ASEAN in India's Act East Policy.
HIGHLIGHTS OF SUMMIT-
• INDO PACIFIC VISION- The Prime Minister underscored the importance of strengthening convergence
between India's Indo-Pacific Oceans Initiative and the ASEAN Outlook on Indo-Pacific, to ensure a free,
open, inclusive and rules-based Indo-Pacific region.
• On COVID-19, India announced a contribution of US$ 1 million to the COVID-19 ASEAN Response Fund.
• CONNECTIVITY- The Prime Minister reiterated India's offer of US$ 1 billion Line of Credit to support ASEAN
connectivity.
• ASEAN CENTRALITY- The Leaders also welcomed the adoption of the new ASEAN-India Plan of Action for
2021-2025.
• PROMOTING A RULES-BASED ORDER IN THE INDO-PACIFIC region including through upholding adherence
to international law, especially the UNCLOS and ensuring freedom of navigation and overflight.
ASEAN-INDIA NETWORK OF THINK TANKS

• The ASEAN-India Round Table comprising think tanks, policy makers, scholars, media and business
representatives was established at the 7th ASEAN-India Summit in Thailand in 2009 to provide policy
inputs to Governments on future direction of cooperation.
ASEAN-India Economic Ministers’ Consultations
• 17th ASEAN-India Economic Ministers Consultations was held virtually on 29th August 2020 and was co-
chaired by India and Vietnam.
• The Ministers’ discussion centred on the review of the ASEAN India Trade in Goods Agreement (AITIGA).
The report of the ASEAN India Business Council (AIBC) was placed which has recommended the review
of AITIGA .
HISTORICAL OVERVIEW of India-ASEAN relationship-
2012- India- ASEAN strategic partnership, 2015- FTA in services.

ASEAN has involved India into all of its regional initiatives like Asian regional forum, Aast Asia summit etc.

IMPORTANCE OF ASEAN-
• TRADE- It stands at 76 billion dollar. ASEAN is India’s 4th largest trading partner while India is ASEAN’s 7th
largest trading partner. India has FTA in goods as well as services with FTA.
• GEOSTRATEGIC-
o Shared interest in free, open and rules based Indo-Pacific.
o 30 annual level dialogue mechanisms including PM level annual summits highlights the importance
of the relationship.
o ASEAN centrality: As the centre of Gravity of global politics is shifted towards Indo Pacific, India has
supported ASEAN centrality in emerging regional security architecture. ASEAN also looks towards
India as a balancer to China.
• CONNECTIVITY-
o India has supported a master plan on ASEAN connectivity 2025 which aims to achieve a seamlessly
and comprehensively connected and integrated ASEAN that will promote competitiveness,
inclusiveness, and a greater sense of Community.
o Negotiations are going on for ASEAN India transit and transport agreement.
o Kaladan multimodal transport agreement is also aimed to promote connectivity between ASEAN and
India.
o India and ASEAN are holding consultations on extension of Trilateral Highway toLaos, Cambodia and
Vietnam.
• CULTURE
o 9 out of 10 ASEAN countries have Indian cultural base.
o Buddhism provides important cultural linkage. Countries are also working towards revival of Nalanda
University.
• MARITIME SECURITY –
o Shared interest of free, open and rules-based Indo-Pacific. India has launched Indo-pacific ocean
initiative(IPOI). It is based on 7 pillars of maritime security; maritime ecology; maritime resources;
capacity building and resource sharing; disaster risk reduction and management; science,
technology, and academic cooperation; and trade connectivity and maritime transport.
o Indo-ASEAN Plan of Action (2021-2025) adopted during India-ASEAN Ministerial Meeting held in
September aims to ensure maritime security, shared progress, territorial integrity, and international-
rules based system in the region.
PROBLEMS-
Political relations have outpaced economic, commercial and people to people relationships.
• TRADE- India’s profile has been modest as compared to china. While India-ASEAN trade is 71 billion, it is 450
billion between ASEAN and china. India and ASEAN also missed out target of $100 billion trade due to Red-
Tapism and delays in projects implementation.
• RCEP: India coming out of RCEP will also disappoint ASEAN while giving advantage to China. India has also
demanded review of existing FTA in goods and greater market access for its goods.
• Logistic challenges: Challenges in establishing a supply chain, poor infrastructure, bad maritime and air
connectivity, bureaucratic costs involved in complex tax and duty structures hamper FDI inflows and SMEs
collaboration between India and ASEAN countries.
• The relevance of ASEAN is itself in question due to differences among members.
o For Ex – Cambodia, and Laos almost supports China but at the same time Vietnam, the Philippines,
and Indonesia opposes China for their authoritarianism.
• LACK OF PHYSICAL CONNECTIVITY- Kaladan project, IMT highway projects are languishing for long which
increases the logistics costs for transport of goods.
• Relationships with selected countries like Singapore, Myanmar and Thailand have advanced.
o For ex- 98% of ASEAN investment into India comes from Singapore.
WAY FORWARD-
• STRENGTHENING DEFENCE PARTNERSHIP- through regular trilateral and multilateral exercises, greater
interoperability between navies.

• CONNECTIVITY- early completion of projects like Kaladan, IMT highway etc.

• SUSTAINABLE DIPLOMATIC OUTREACH , building on shared cultural history and increasing people to people
contacts.
REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP)

Recently RCEP has come into force. It is described as the “largest” regional trading agreement to this day.
WHAT IS IT?
• RCEP is an agreement between the member states of the Association of Southeast Asian Nations (Asean)
and its free trade agreement (FTA) partners including JAPAN, SOUTH KOREA, CHINA , AUSTRALIA, NEW
ZEALAND.
• It is a comprehensive agreement covering trade in goods, trade in services, investment, economic and
technical cooperation, intellectual property, competition, electronic commerce, dispute settlement and
other issues.
WHY INDIA OPTED OUT OF AGREEMENT?
• UNFAVOURABLE BALANCE OF TRADE WITH CHINA- It will Open Indian markets for cheaper goods from
China. India’s bilateral foreign direct investment (FDI) flows with the RCEP countries have been very low
,except Singapore and Japan.
o The negative trade balance with China could have been countered through increased FDI inflows
but geo-political reasons make it difficult to get Chinese investments in certain key sectors, including
infrastructure services.
• OPPOSITION FROM DOMESTIC INDUSTRIES mainly from dairy sector and agriculture sector to open these
sectors to other countries. India has one of the highest tariff rates and, therefore, in any trade negotiations
it may be asked to liberalize the most. India uses high tariffs as a measure to protect its domestic industry
and agriculture from foreign competition. Reducing the tariffs could impact ‘Make In India.’
• LACK OF CONSENSUS ON RULES OF ORIGIN —In the absence of it some countries could dump their products
by routing them through other countries that enjoyed lower tariffs.
• AUTO-TRIGGER MECHANISM to raise tariffs on products when their imports crossed a certain threshold was
not included in RCEP.
• It also wanted RCEP to exclude most-favoured nation (MFN) obligations from the investment chapter.
• SECURITY CONCERNS India felt the agreement would force it to extend benefits given to other countries for
sensitive sectors like defence to all RCEP members.
• NON TARIFF BARRIERS- RCEP also lacked clear assurance over market access issues in countries such as China
and non-tariff barriers on Indian companies.
India already has FTA in goods and services with ASEAN and a comprehensive economic partnership
agreement(CEPA) with Japan and South Korea. India is also negotiating a Comprehensive Economic Cooperation
Agreement with Australia.
IMPLICATIONS-
GEOECONOMIC-
• Impact its bilateral trade ties with RCEP member nations, as they may be more inclined to focus on bolstering
economic ties within the bloc.
• Could impact the Australia-India-Japan network in the Indo-Pacific. It could potentially put a spanner in the
works on informal talks to promote a Supply Chain Resilience Initiative among the three.
• With this India will be out of 2 major regional FTA’s - COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR
TRANSPACIFIC PARTNERSHIP (CPTPP) and RCEP.
GEOSTRATEGIC-
• BALANCING CHINA- ASEAN countries look at India as balancer to China. India’s withdrawal can further
increase Chinese influence in the region and dent credibility of India.

• PARTNERSHIP WITH JAPAN- India’s withdrawal was a blow to Japan. For Japan, RCEP is an important step
towards a free and open economic system, one that would pressure the United States to return to a trade
framework, with an Indian presence checking Chinese influence.
• IMPACT ON ACT EAST POLICY- India’s withdrawal can also negatively impact Act East Policy as economic ties
with ASEAN and broader Indo-pacific is an important pillar of policy.
RATIONALE BEHIND INDIA’S DECISION-

• S. JAISHANKAR- India’s stance is based on ‘cleared eyed calculation’ of gains and costs. Bad pact is worse
than no pact. He further clarified that it is neither step back from Act East Policy nor is connected to it,s
approach on Indo-pacific.
WAY FORWARD
• REVIEWING OF ITS EXISTING BILATERAL FTAS with some of these RCEP members as well as newer
agreements with other markets with potential for Indian exports. Over 20 negotiations are underway.
• DOMESTIC REFORMS- In Ease of doing business, infrastructure to make Indian industry globally
competitive. India needs to quickly address market access, logistics and trade facilitation issues so that
domestic industry can become more competitive.
• Aligning Foreign Trade Policy with AtmaNirbhar Bharat- Trade facilitation, compliance, and ease of trading
are issues that need to be addressed for exporters such that the manufacturing sector can realize its full
potential.
Conclusion
• Efforts to raise domestic competitiveness by addressing issues related to logistics, power, labor market
productivity, and R&D should be continuous and sustainable. Short-term schemes like the PLI are helpful but
cannot be a long-term alternative to structural reforms.
East-Asia Summit
• The East Asia Summit is a premier forum in the Asia-Pacific region dealing with issues relating to security
and defence.
• Evolution of East Asia: Since its inception in 2005, it has been playing a significant role in the strategic,
geopolitical and economic evolution of East Asia.
• Apart from the 10 ASEAN member states, it includes India, China, Japan, Republic of Korea, Australia, New
Zealand, United States and Russia.
• In the recent summit, the MEA said Mr. Jaishankar re-affirmed the importance of the EAS as the leaders-
led forum to exchange views on strategic issues and spoke of the “importance of adhering to international
law, respecting territorial integrity and sovereignty, and promoting a rules-based global order”.
SHANGHAI COOPERATION ORGANIZATION (SCO) - 20TH SCO SUMMIT

WHY IN NEWS?
• 20th Summit of SCO Council of Heads of State was held on November 10, 2020 (in Video Conference Format).
INDIA AT SCO
• REFORMED MULTILATERALISM- to make the institutions of the global governance more representative,
democratic and inclusive.
• TERRORISM- Prime Minister reiterated India’s firm belief in regional peace, security and prosperity and
raising voice against terrorism, smuggling of illegal weapons, drugs and money-laundering.
• CONNECTIVITY-with initiatives like International North-South Transport Corridor, Chabahar Port and
Ashgabat Agreement.
• CULTURAL RELATIONS- PM also highlighted India’s own initiatives to hold the first SCO exhibition on Shared
Buddhist Heritage, SCO Food Festival in India next year.

• The Prime Minister of India indirectly referred chinese infrastructure projects in Pakistan Occupied Kashmir
and India China standoff at line of actual control and urged members of the SCO to respect “territorial
integrity” and “sovereignty” of each other.
About SCO-
• The Shanghai Cooperation Organisation (SCO) is a permanent intergovernmental international
organisation. The Shanghai Cooperation Organisation Charter, formally establishing the organisation, was
signed in June 2002 and entered into force on 19 September 2003.
• SCO comprises eight member states, India, Kazakhstan, China, the Kyrgyz Republic, Pakistan, Russia,
Tajikistan, and Uzbekistan.
OBJECTIVES:
• To deal with extremism, radicalism, drug trafficking and counter terrorism.
• Promote economic security by trade, connectivity and financial inclusion.
• Its aim was to counter the USA and showcase eastern values of mutual respect and plurality.
PRINCIPLES-
• It is based on the SHANGHAI SPIRIT of good neighbourliness which include non-interference, consensus,
harmony, respect for culture and non-alignment.
IMPORTANCE OF SCO FOR INDIA-

• ENTRY TO EURASIA- India’s membership is recognition that India is a major power having stakes beyond Asia.
It brings more visibility to India’s Eurasia affairs.
• BALANCING CHINA AND MANAGING PAKISTAN- India’s entry was supported by Russia and central Asian
countries to balance China. It also provides a platform for India to talk with Pakistan.
• CONNECTIVITY- to central Asia through Pakistan through ‘Multilateral Connectivity Initiative’ of SCO.
• COUNTER TERRORISM- intelligence sharing on terrorist and criminal activities through Regional Anti-terrorist
Structure (RATS)
• DEFENCE CO-OPERATION- Enhanced linkages between armed forces is SCO objective. India and Pakistan
participated in counter terrorism military exercise.
Conclusion
• India has consistently sought to
construct a participatory and inclusive
framework for Asian unity and stability
to support national socio-economic
development goals. India needs to use
the SCO platform, where it gets to work
with other regional powers like Russia
and China, to achieve this objective.
INDIA AND QUAD

ORIGIN AND HISTORY-
• May 2007- In Manila , on the sidelines of
Asian Regional Forum members met in
the inaugural meeting of the
Quadrilateral.
• The origin of OUAD can also be traced
back to ‘confluence of 2 sea’s’ speech
given by Japanese PM Abe in Indian
parliament where he invoked book by
Dara Shikoh to describe ‘Dynamic
coupling ‘ between Indian and pacific
ocean as ‘confluence of 2 sea’s’.

• However, the project was rolled back due to Chinese resistance.

OBJECTIVES-
• In their Washington Post op-ed, the Quad leaders described the group as a flexible cluster of like-minded
partners dedicated to advancing a common vision and to ensuring peace and prosperity.
• In their joint statement, they committed themselves to promoting a free and open  rules-based order, rooted
in international law to advance security and prosperity and counter threats to both.
INSTITUTIONALIZATION of QUAD-
• UNILATERALISM by China: It was revived in 2017 due to growing UNILATERALISM by China and to prevent
‘Unipolar Asia’.
• After the India-China Ladakh standoff in June 2020,QUAD countries have focused on crystallization of the
QUAD.
• In 2020, all four QUAD Countries - Japan, India, Australia and the USA took part in the Malabar exercise.
• QUAD vaccine partnership- Countries also agreed to pool their resources for equitable distribution of
vaccines.
o Recently, the First summit of the leaders' of the QUAD (Quadrilateral Framework) was hosted by the
USA on a virtual platform.
o Maritime safety dominated the summit agenda. Members also discussed the impact of COVID-19 on
the economy and human health, climate change, common challenges in cyberspace, critical
technologies, counterterrorism, investment in quality infrastructure, humanitarian assistance, and
disaster relief.
• India and the three other Quad countries kicked off a major naval exercise along with France in the Bay of
Bengal in April 2021 underlining the growing strategic congruence in ensuring a secure and stable Indo-
Pacific in face of China’s belligerence in the region.
• During MEA S. Jaishankar’s visit to the US, it was agreed to work out an elaborate agenda on cooperation
among QUAD partners in areas such as the economy, technology, disaster relief and building resilient supply
chains -- all with an eye on the evolving security situation in the Indo-Pacific before the next summit.
IMPORTANCE OF QUAD FOR MEMBERS and other key players-

USA-
• The US has described China, along with Russia, as a strategic rival in its National Security Strategy, National
Defence Strategy and the Pentagon’s report on Indo-Pacific Strategy.
• It has also renamed pacific command as Indo-pacific command highlighting the importance of the region.
• USA has also increased freedom of navigation operations in the south china sea.
• USA has also enacted ‘Asia Reassurance Initiative Act’ that aims at countering the encroaching influence and
growing threat from China, and to reinvigorate U.S. leadership.
JAPAN-
• Japan is the most vocal supporter of QUAD as it has territorial disputes with china over Senkaku islands.
AUSTRALIA-
• Australia is concerned about China's growing interest in its land, infrastructure and politics, and influence on
its universities.
• Also demanded inquiry on origin and initial handling of COVID-19.
• Cyberattack: Accused China of cyberattack on Australian parliament and creating threat to social cohesion
in Australian through Chinese students.
• Australia also participated in the Malbar exercise. It highlights the growing relevance and importance of the
Quad, lending it further credence and stability.
INDIA
• Post Ladakh standoff with China India has shown more interest in institutionalization of QUAD.
• Has institutionalised 2+2 ministerial dialogue with all QUAD members.
• Signed 4 foundational agreements with the USA and similar basic forms of logistics exchange and information
sharing agreement with Japan and Australia.

• However unlike other members whose primary focus is on Pacific ocean, India’s primary focus is on Indian
Ocean Region .
CHINESE APPREHENSION
• China considers QUAD as ASIAN NATO or MINI NATO intended to stop its rise. On the eve of the QUAD
summit, the Global Times—the ruling Chinese Communist Party’s paramount mouthpiece—had warned that
an attempt to replicate NATO in Asia will not succeed.
ASEAN
• As the Quad approaches the intended institutionalization, its members are working more closely with key
regional actors.
• ASEAN centrality: To reassure the ASEAN member countries amidst the geopolitical turbulence, the leaders
reaffirmed their strong support for ASEAN’s unity and centrality in the emerging security architecture.
• No open confrontation: However, many ASEAN countries do not want to openly take sides in the
confrontation between the U.S. and China. Most of them welcome the U.S. presence in the region.
Concurrently, they are aware of the benefits of cooperation with China, which will in any case remain the
main trading partner.
QUAD AS COUNTERBALANCE TO CHINA-
• PREVENTING CHINESE UNILATERALISM- the Galwan clashes, along with China’s assertiveness in the South
China Sea, are being touted as the “tipping point” towards the militarisation of the Quad.
• NEW SECURITY ARCHITECTURE IN INDO-PACIFIC- QUAD aims to promote a free and open  rules-based order,
rooted in international law in Indo-Pacific region. It has also accepted ASEAN Centrality in new regional
architecture.
• MILITARY RESPONSE TO CHINA’S AGGRESSION- USA has increased freedom of navigation operations in south
china sea. Also inclusion of Australia in Malbar Exercise highlight willingness on part of QUAD members to
counter "China's unfolding hegemonic master-plan."
• REDUCING DEPENDENCE ON CHINA- QUAD members have launched initiatives like supply chain resilience
initiative, blue dot network to diversify supply chains and ensuring sustainable infrastructure development
respectively.
ISSUES-
• DEPENDENCY ON CHINA- All QUAD members have overwhelming economic dependence on China.
o For ex- 38% of Australian exports are to china. China is also the biggest trading partner of all QUAD
members.
• QUESTIONABLE CONSTRUCT- some scholars like Brahma Challney question Indo-pacific constructs.
According to him, it is a combination of 2 systems- Indian ocean system and East Asian system and not a
continuous construction. This makes it a artificial construct. Thus building coherent policy for the whole
region is difficult for countries.
• LACK OF INSTITUTIONALIZATION – Due to lack of synergy among members, asymmetry in terms of military
power and lack of consensus on burden sharing.
• DIFFERENT CAPABILITIES AND BURDEN SHARING- 4 members have different military and economic
resources. There is lack of consensus among members regarding role and responsibilities of members.
• DIFFERENCE IN PRIORITIES- while India’s focus is on Indian Ocean Region , other 3 members are focused on
pacific ocean.
• DEFINITIONAL DILEMMA- members are reluctant to name china as main strategic adversary due to huge
economic interdependence.
WAY FORWARD-
• CENTRALITY OF ASEAN- QUAD members should accept this principle as it will reject the centrality of china as
well as will enhance credibility and legitimacy of QUAD.
• COUNTERING WEAPONIZATION OF TRADE by China. QUAD should expand its scope to include quality
infrastructure, resilient supply chains , connectivity etc.
• Institutionalization- members need to put resources to provide robust institutional framework to grouping.
• QUAD PLUS-

o The membership can be increased to include countries like Vietnam, New Zealand, South Korea etc,
who share similar interests.
o European countries UK and France who have naval bases in the region can also be incorporated in
expanded QUAD.
CONCLUSION-
• Though prime motivation behind QUAD is rising unilateralism by China yet it is neither an exclusive bloc or
military arrangement. Thus India needs to continue its policy of STRATEGIC AUTONOMY and multiple circles
of engagements like QUAD, BRICS, SCO etc. It gives Indian foreign policy a degree of flexibility and room for
manoeuvre vis-a-vis major powers.
NON-ALIGNED MOVEMENT- VIRTUAL NAM SUMMIT

WHY IN NEWS?
• The virtual Non-Aligned Movement (NAM) Contact Group Summit on “United against Covid-19” through
video conferencing was held in may 2020.
• Leaders announced the creation of a ‘Task Force’ to identify needs and requirements of member States
through the establishment of a common database
WHAT IS NAM?
• To remain independent: It was formed during the Cold War as an organisation of States that did not seek to
formally align themselves with either the USA or the Soviet Union but sought to remain independent or
neutral.
• The purpose of the organisation was enumerated in the Havana Declaration of 1979 to ensure "the national
independence, sovereignty, territorial integrity and security of non-aligned countries" in their struggle
against imperialism, colonialism, neo-colonialism, racism, and all forms of foreign subjugation.
PM MODI IN SUMMIT-
• Emphasized the importance of a coordinated, inclusive and equitable response by the world to this crisis.
• Stated that Covid-19 has shown limitations of the existing international system. The world needs more
representative international institutions and thus world order should be more representative.
HAS NAM BECOME IRRELEVANT TO INDIA?

YES NO
• ANACHRONISTIC- NAM was more relevant in • LEADERSHIP- NAM provides natural leadership for
context of superpower rivalry during cold war. Post- India among developing countries and provides a
cold war, the bi-polar world became non-existent platform where India can assert its soft power.
and global political narrative shifted from the • CHANGING GEOPOLITICS- New cold War between
balance of power to economic interdependence. USA and China as reflected in Trade War, Quad
• NO CONCRETE ACHIEVEMENTS- NAM agenda like initiative, Indo-pacific narrative, Chinese naval
NIEO is failed. Further, It has no position even on presence in the Indian ocean, etc.
issues like human rights, child exploitation and • SOUTH-SOUTH COOPERATION- for coordinated
gender issues. response in global governance institutions like
• CHANGING STATUS OF INDIA- today Indian foreign UN,WTO and oppose agenda of developed
policy is guided by Realism and Enlightened Self countries which are against interest of developing
Interest than Idealism. According to MEA S. countries. NAM becomes relevant to mobilize
Jaishankar, India will go for ‘Issue based international public opinion against terrorism,
partnerships’, rather than Dogmatic non-alignment. nuclear proliferation, environmental protection etc.
• Leadership- at present, the leadership of NAM is in • UNSC REFORMS- support of 120 members of NAM
hands of countries like Venezuela, Iran etc who use is crucial for UN reforms and for India’s permanent
the platform to oppose the USA and the West. This seat at UNSC.
• Neo-Colonialism- Exploitation of LDCs by MNCs of
developed countries and China’s policy of debt trap

may not be in the best Interests of India considering diplomacy makes the anti-colonialism agenda of
the close relationship between India and the USA. NAM relevant again.
• Duplication- Various organisations duplicating the • Multipolar world order- NAM can help in formation
agenda of NAM such as south-south cooperation of a multipolar world with India becoming a major
have come into existence. Due to their small size pole in Global Balance of Power.
and greater convergence of interests, they have
proved more useful than the NAM. For ex- G-33,
IDSA, BRICS etc.
WAY FORWARD-
• REINVENTING THE AGENDA as long-held assumption and alignments rooted in the legacies of colonialism
and the ideology of the Cold War are making way for new configurations and partnerships , NAM needs to
be reformed to deal with 21st century issues of developing countries such as Climate change, environmental
degradation, terrorism, radicalisation, poverty, public health emergencies, humanitarian and natural
calamities, cyber security
• BETTER INSTITUTIONALISATION AND REGULAR SUMMITS for coordinated policy making.
• Containing China- NAM platform can be used to garner support by South-East Asian countries against
Chinese assertion in South China Sea and related island and border disputes. Similar consensus can be build
among African countries.
Conclusion
• NAM has served the useful purpose of protecting the interest of the Third World countries well in the past
and can play the significant role in protecting the economic interest of the Third World countries as well as
promoting south-south cooperation at present.
RECENT NEWS-
65TH ANNIVERSARY OF BANDUNG CONFERENCE

• The year 2020 marks the 65th anniversary of the landmark Bandung Conference that resulted in the adoption
of the founding principles of the Non-Aligned Movement (NAM).
BANDUNG PRINCIPLES-
• Political self-determination, Mutual respect for sovereignty, Non-aggression, Non-interference in internal
affairs, and Equality.
ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES (OPEC)

ABOUT OPEC-
• The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental
Organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia and
Venezuela
• HQ- Vienna, Austria
OBJECTIVE-
• To coordinate and unify petroleum policies among Member Countries, in order to secure fair and stable
prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming
nations; and a fair return on capital to those investing in the industry.
India and OPEC
• India imports 80% of its oil requirement from OPEC countries. Recently, India has asked OPEC countries
to reconsider decision on production curbs to keep the oil prices stable.

GROUP OF SEVEN (G7)

Why in News
• Recently, the 47th G-7 summit was held in virtual mode. UK had invited India as one of the ‘Guest country’
along with Australia and South Korea.
ABOUT G-7
• It is an intergovernmental organisation that was formed in 1975 as an informal forum to discuss pressing
world issues..
• The bloc meets annually to discuss issues of common interest like global economic governance,
international security and energy policy.
EXPANSION OF G-7
• USA President has also proposed the expansion of the G7 to be called ‘G10 or G11’.
• The proposed expansion has suggested inclusion of India, Australia, South Korea and Russia in the
grouping of the largest advanced economies.
• The existing G7 group has been criticised as an outdated group of countries as it does not include emerging
economies and thus it does not represent current world order.
Outcome of 47th summit
• The G-7 and guest countries signed a joint statement “open societies” that reaffirm and encourage the
values of freedom of expression, both online and offline and called politically motivated internet
shutdowns as one of the threats to freedom and democracy.
• Phase out coal-fired power generation: G7 leaders pledged to phase out coal-fired power generation at
home and to end funding for new coal-burning power plants in the developing world. The leaders
committed to offering developing nations $2.8 billion to help them switch to cleaner fuels.
• Build Back Better for the World Project to compete with China’s Belt and Road infrastructure initiative. It
aims to collectively catalyse hundreds of billions of infrastructure investment for low- and middle-income
countries (in Asia and Africa) and offer a values-driven, high-standard and transparent partnership with
G7.
• Carbis Bay Declaration: The G7 signed the Carbis Bay Declaration for preventing future pandemics. The
G7 leaders pledged to deliver an additional 870 million vaccine doses for the developing world on top of
the 250 million already promised by the US and 100 million from the UK.
India and G-7
• While addressing the summit Prime Minister Modi called for “one earth, one health” approach which aims
for unity and solidarity among the states of the world to deal with the pandemic. He also emphasised the
need to keep raw materials for vaccines easily accessible.
• TRIPS waiver: India also sought G7’s support for proposal moved by India and South Africa at the WTO for
a TRIPS waiver.
• PM Modi also called for a holistic approach towards climate change that covers mitigation, adaptation,
technology transfer, climate financing, equity, climate justice and lifestyle change and highlighted need to
access to Climate Finance for developing countries.
AIIB AND INDIA

WHY IN NEWS?
• The Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) will be investing $5 billion in the next
two years to finance 20-30 projects in India.
• Currently the bank has invested in 21 projects in India, amounting to almost USD 5.5 billion. One-third of
funding by AIIB has gone to India.

AIIB FUNDED PROJECTS-

• Chennai Metro Corridors Four and Five and Chennai Peripheral Ring Road
• Delhi-Meerut Regional Rapid Transit System
• four urban transport projects in Mumbai, including the multimodal transport corridor with a metro and
train
• Bangalore metro rail project and, Gujarat rural roads project
• In June, the AIIB announced a $750 million loan to India for COVID-19 assistance
ABOUT AIIB-
• AIIB is a multilateral development bank with headquarters in Beijing, China. It started its operations in
2016. Currently it has 103 members.
• Membership to the bank is open to all members of the Asian Development Bank or the World Bank. It
allows non-sovereign entities to apply for membership provided their home countries are members.
• The largest contributor to AIIB is China and the second-highest shareholder is India
APEC VIRTUAL MEET

WHY IN NEWS?
• A virtual meeting of the 21-member Asia-Pacific Economic Cooperation (APEC) forum was held in November
2020 and was hosted by Malaysia.
OUTCOME OF SUMMIT-
• APEC leaders adopted the Putrajaya Vision 2040, a new 20-year growth vision to replace the Bogor Goals.
• Leaders discussed the Free Trade Area of the Asia-Pacific (FTAAP) agenda and the APEC Internet and Digital
Economy Roadmap (AIDER).
• USA made the surprise decision to take part in this year's event, after not participating at APEC since 2017.
ABOUT APEC-
• It is a voluntary forum of 21 pacific rim economies to promote free trade throughout Asia-Pacific region.
• The idea of APEC was first publicly broached by former Prime Minister of Australia Bob Hawke FOR
1. Coordinated policy making
2. Capitalising on complementarities of economies in the region.
SIGNIFICANCE-
• It adopts a bottom up approach and also involves the private sector so it can play an important role in
human resource development , regional integration etc.
INDIA AND APEC-

• India applied in 1991 on the basis of geographic location, potential size of economy, degree of trade
relations with Asia-pacific region.
• APEC imposed a 10 year moratorium in 1997. India again applied in 2007.
BENEFITS
FOR INDIA-
• Joining APEC is an important pillar of Act East Policy.
• Reduced transaction costs can improve manufacturing in India. India can also become an alternate source
of manufactured goods and services. It will help in diversification of supply chains.

• APEC can compensate for fear of the collapse of WTO.

FOR WORLD-
• Huge market: India provides a huge market , investment opportunities and labour supply.
• Moderate USA-China tensions: Growing cooperation between India-Japan-Australia can help moderate
USA-China tensions.
• Major reforms: India has also undertaken major reforms such as GST, IBC, EoDB etc.
• India is a major power in Indian ocean from where major trade routes pass and is a vibrant democracy based
on rule of law and independent institutions.
PROBLEMS IN INDIA’S MEMBERSHIP-
• Geographically India doesn't come in Asia-pacific.
• India’s economic policies are considered as non-conductive for open trade policies.
• India’s actions in WTO are considered as interventionist. It is also feared to slow the APEC process.
• Traditional unfriendliness to foreign business entities and reluctance to open agriculture and dairy sector.
• High trade deficit with China.
CONCLUSION
• The concept of Asia-Pacific has been broadened to Indo-Pacific. So inclusion of India can help it rediscover itself
and can help it revitalise.
AGREEMENTS INVOLVING INDIA AND/OR AFFECTING INDIA’S INTERESTS.
WORLD HEALTH ASSEMBLY (WHA) OPEN SKIES TREATY

• It is the world's highest health policy setting body of • The Open Skies Treaty entered into force on
WHO and is composed of health ministers from member January 1, 2002, and 34 states are party to the
states. treaty. US withdrew from the treaty in November
• The main functions of the World Health Assembly are to 2020.
determine the policies of the Organization, appoint the • India is not party to the treaty.
Director-General, supervise financial policies, and review • Treaty permits each state-party to conduct short-
and approve the proposed programme budget. notice, unarmed, reconnaissance flights over the
• India has been elected to the World Health Organisation others' entire territories to collect data on
(WHO)’s Executive Board. It will also be holding a military forces and activities.
Chairmanship of the Executive Board for the next one • The treaty is also aimed at building confidence
year (from May 2020- May 2021) and familiarity among states-parties through
their participation in the overflights.
WORLD FOOD PROGRAMME PROTOCOL ON INLAND WATER TRANSIT AND

• It is the world's largest humanitarian organization of UN, TRADE
and the largest provider of school meals. • Under protocol on inland water transit and trade
• It was founded in 1961 by the Food and Agriculture protocol between India and Bangladesh inland
Organization (FAO) and United Nations General vessels of one country can transit through the
Assembly (UNGA) it is headquartered in Rome. specified routes of the other country.
• Recently, India was elected to the Executive Board of the • Recently, the second Addendum to the Protocol
World Food Programme for a three-year term beginning on Inland Water Transit and Trade was signed
on 1 January 2022. between India and Bangladesh.
• Daukandi (Bangladesh) – Sonamura (Tripura)
Inland Waterway Protocol route was also
operationalised recently.

FINANCIAL ACTION TASK FORCE COMPREHENSIVE AND PROGRESSIVE

• The Financial Action Task Force is an intergovernmental AGREEMENT FOR TRANSPACIFIC PARTNERSHIP
organisation founded in 1989 on the initiative of the G7 (CPTPP)-
to develop policies to combat money laundering and • CPTPP is a free trade agreement between 11
terrorism financing. countries in the Asia-Pacific: Canada, Australia,
• The FATF has developed the FATF Recommendations, or Brunei, Chile, Japan, Malaysia, Mexico, New
FATF Standards, which ensure a co-ordinated global Zealand, Peru, Singapore and Vietnam.
response to prevent organised crime, corruption and • The eleven signatories have combined
terrorism. economies representing 13.4 percent of global
• FATF has two lists: gross domestic product, at approximately
o Grey List: Countries that are considered safe haven US$13.5 trillion, making the CPTPP one of the
for supporting terror funding and money laundering world's largest free-trade areas.
o Black List: Countries known as Non-Cooperative • CPTPP covers virtually all sectors and aspects of
Countries or Territories (NCCTs) are put in the trade in order to eliminate or reduce barriers.
blacklist. • It eliminates tariffs and reduces barriers for 98%
of exports to CPTPP member countries
UNITED NATIONS CONVENTION ON THE LAW OF THE GENEVA CONVENTIONS-

SEA (UNCLOS) WHY IN NEWS? -
NEWS- Permanent Court of Arbitration (PCA) has given the • India had cited the Geneva Conventions, 1949
ruling in Italian marine case under United Nations while demanding the release of Wing
Convention on the Law of the Sea(UNCLOS). Commander Abhinandan, who was in Pakistan's
UNCLOS- custody after Balakot strikes.
• The Law of the Sea Convention defines the rights and • International Court of Justice (ICJ) held that
responsibilities of nations with respect to their use of the Pakistan is under an obligation to inform Jadhav
world's oceans, establishing guidelines for businesses, without further delay of his rights and to provide
the environment, and the management of marine Indian consular access to him in accordance with
natural resources. the Geneva Convention.
• India signed the Convention in 1982 and ratified in 1995. WHAT IS IT?
• The Convention has created three new institutions
• The Geneva Conventions comprise four
- International Tribunal for the Law of the Sea (ITLOS)
treaties, and three additional protocols, that
- International Seabed Authority (ISA)
establish the standards of international law
- Commission on the Limits of the Continental Shelf
for humanitarian treatment in war.
(CLCS)
UNCLOS divides marine areas into five main zones:
NEW YORK CONVENTION
WHY IS NEWS?
• Cairn Energy has filed a case, in accordance
with the New York Convention, in the USA
district court to enforce a USD 1.2 billion
arbitration award it won in a tax dispute
against India.
WHAT IS IT?
• Convention on the Recognition and
Enforcement of Foreign Arbitral Awards

seeks to provide common legislative

standards for the recognition of arbitration
agreements and court recognition and
enforcement of foreign and non-domestic
arbitral awards.

IMPORTANT INTERNATIONAL INSTITUTIONS, AGENCIES AND FORA- THEIR STRUCTURE, MANDATE
INDIA IN UNSC
Recent Developments
• T. S. Tirumurti has been appointed as the Permanent Representative of India to the United Nations.
• For the eighth time, India has become a non-permanent member of the United Nations Security Council
(UNSC) for two years i.e 2021-22.
UNITED NATIONS SECURITY COUNCIL (UNSC)

• The United Nations Charter established six main organs of the United Nations, including the Security Council.
• Under the UN Charter, all Member States are obligated to comply with the Council's decisions.
Importance of UNSC
• Can take strict measures: UNSC is the only member which can take strict measures including military actions
against the country which attempts to destroy world peace.
• UNSC plays a major role in appointments and UN functions.
Functions of UNSC
• To maintain international peace and security by establishing peacekeeping operations, putting international
sanctions, and the authorization of military action.
• To investigate any dispute which might lead to international friction.
• To recommend methods of adjusting such disputes or the terms of the settlement.
• To formulate plans for the establishment of a system to regulate armaments.
WHAT IS A NON-PERMANENT SEAT IN UNSC?

• The UNSC is composed of 15 members of which five are permanent members and ten non-permanent
members (China, France, Russian Federation, the US and UK) are permanent members.
o The permanent members can veto any substantive Security Council resolution, including those on
the admission of new member states or candidates for Secretary-General.
• Non-permanent members are elected by the General Assembly for the term of two years. Non-permanent
seats are divided based on region.
Importance of Non-permanent member in UNSC

• It deals with the consequences of conflicts even when the Council has been unable to overcome P5 divisions
to deal with the conflict itself.
• P5 dominance: The UNSC penholder system continues to be an area of P5 dominance. This is an area where
there may be room for pressure from non-permanent members for greater access.
• Consultations: It makes greater use of the Security Council consultations as it provides an opening for non-
permanent members to raise issues.
Permanent Mission to the United Nations (UN)
• It is the diplomatic mission that every member state delegates to the United Nations and is headed by a
Permanent Representative.
• It keeps the necessary liaison between the Member States and the Secretariat in periods between sessions
of the different organs of the United Nations.
REFORM OF UNSC
Need for Reform
• Veto power: The permanent members of the UNSC (P5) possess veto power. It provides them with the
ultimate weapon to stop the functioning of the UN against their National Interest.

• Partial nature of P5: None of the UNSC decisions goes without criticism and allegations because of the
partial nature of P5 eg: During the Cold, War UNSC remained divided between P2 (China and Russia) and
P3 (US, France and Britain).
• Lack of transparency: There is a lack of transparency and accountability in the functioning of the UNSC.
• Lack of coordination between UNSC and UNGA (United Nations General Assembly) is always visible.
• Not reflect today’s reality: UNSC in its present configuration cannot be called representative in any
manner.
• The G4 countries (India, Brazil, Germany and Japan) which share a significant amount of economic
contribution in the world's GDP have been raising voices for much-needed reform in UNSC.
• Two-thirds majority: It also suggested that reforms-related decisions should be by a two-thirds majority
in the UN General Assembly, which was enshrined in the 1998 resolution of the UNGA.
Most urgent reforms needed
• VETO Reform: UNGA should be given the power to override the VETO by P5 members.
• Membership Reform: The present configuration of UNSC permanent seats is not aligned with today’s
reality. The permanent seats of UNSC have no representation from Africa where most of the UN actions
are taken. Latin America has no representation whereas Europe is over-represented.
Challenges for India in UNSC

• China's opposition- Diplomats have blamed China for having quietly carried out a campaign to stop India’s
efforts at the UNSC.
• Coffee Club- An informal "coffee club", comprising 40-odd member states, has been instrumental in
holding back reforms to the United Nations Security Council over the past six years. Most members of the
club are middle-sized states who oppose bigger regional powers grabbing permanent seats in the UN
Security Council.
• Require amendment: Any changes in the structure of UNSC will require amendment in the UN charter
that will have to be signed and ratified by a two-thirds majority of UNGA membership and it will also
require the concurrence of current P-5 members. Veto of even one permanent member can do away with
the Indian dream.
INDIA AND UNSC

• India maintains the stand that the seat of the UNSC is not at a sale to be given to the highest bidder.
• For eight times India has been elected as a non-permanent member in UNSC.
India claims the permanent seat of UNSC on the following basis:

• No other civilisation has a cosmopolitan outlook like India.
• India is the largest democracy and the 5th largest and fastest-growing economy in the world.
• India is constitutionally committed to strengthening international law and world peace- Article 151 (DPSP).
• India is one of the largest contributors to the UN Peacekeeping Force. So far India has taken part in 49
Peacekeeping missions.
• India has always echoed the voice of developing and underdeveloped nations. It was the leader of the non-
aligned movement and shares a warm and diplomatic relation with most of the countries.
Benefits to India
• It will help India to globally expand its geo-economic and geopolitical influence.
• It will also transform India’s status to a global rule-maker from being a stakeholder.
• It will help India to be more vocal about the rights of developing and under-developed nations and thus
increase the influence of its soft power.

Contribution of India in UNSC in its past membership

• India presided over the adoption of resolutions calling for the cessation of hostilities during the Korean War.
• India pushed strongly for the admission of Bangladesh into the UN.
• India was a strong voice for Africa in the UNSC and spoke against apartheid and for Namibia’s independence
in 1978.
Way Forward
• Since the formation of the UNSC world order has changed a lot, it is time to re-think the permanent members
of the UNSC.
• The power of veto is frequently cited as a major problem as the P5 members often influence the resolutions
making those countries suffer, which rather need a platform to grow.
WORLD TRADE ORGANIZATION AND INDIA

• Nigeria’s Ngozi Okonjo-Iweala appointed the seventh Director-General of the World Trade Organization.
She also became the first woman and the first African to head the multilateral trade body from March 1,
2021 to August 31, 2025.
• World Trade Organization is the only global international organization dealing with the rules of trade
between nations. It was set up in 1995 by replacing the General Agreement on Trade and Tariffs (GATT).
Although WTO is not a UN specialised agency it has maintained strong relationships with the UN and its
agency since its establishment.
General Agreement on Trade and Tariffs (GATT)

•
GATT traces its roots to the Bretton Woods Conference in 1944 which prepared the structure for the post-
World War II financial system and created two key institutions, the International Monetary Fund (IMF)
and the World Bank.
• It became the only multilateral instrument that was governing International trade from 1948 until it was
replaced by WTO in 1995.
Reasons for replacement by WTO
• GATT formalised only a set of rules and agreements but it lacked the institutional structure.
• Trade and services and intellectual property rights were not protected by GATT rules.
o Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic
works; designs; and symbols, names and images used in commerce.
Functions of WTO
• Trade Negotiations- By providing a structural framework to agreements, as well as providing dispute
resolution mechanisms.
• Implementation and Monitoring mechanism- It ensures the signatory countries adhere to their
commitments in practice. It also produces research based on the impact of the agreements on the
economies of the countries involved.
• Smoothing trade flow- It creates an international legal framework that ensures the smooth exchange of
goods and services among the member countries.
• Dispute Settlement- Settling the dispute when there is a trade conflict between its member states. There are
formal hearings until a settlement is reached.
• Cooperation with other institutions- The WTO also cooperates with the IMF and World Bank to ensure global
economic policies are fair and cohesive.
• Building Trade Capacity- It helps developing countries by helping them build the capacity to participate in
free trade with more developed countries.

• Economic Assistance- It also gives concessions

under certain agreements to low-development
countries to ease them into free trade with other
countries.
Governance of WTO
• Ministerial Conference- The topmost decision-
making body of the WTO is the Ministerial
Conference, which usually meets every two
years.
• General Council- The General Council is the
WTO’s highest-level decision-making body
located in Geneva, meeting regularly to carry out
the functions of the WTO.
• The Trade Policy Review Body (TPRB)-The WTO
General Council meets as the TPRB to undertake trade policy reviews of Members under the TPRM and to
consider the Director-General's regular reports on trade policy development.
• Dispute Settlement Body (DSU)- The General Council convenes as the Dispute Settlement Body (DSB) to deal
with disputes between WTO members.
Achievement of WTO
• Codification of global trade- WTO has framed the binding rules for global trade in goods and services. It also
enhanced the value and quantity of trade by eradicating trade and non-trade barriers.
• Surge in Global Value Chains- The predictable market conditions and improved communications by WTO has
enabled the rise of global value chains, trade within these value chains today accounts for almost 70% of total
merchandise trade.
• Supporting under-developed countries- The various agreements and trade negotiations by WTO has
recognized that poor countries must benefit from the greatest possible flexibility by lowering import barriers
on least-developed countries’ exports.
Issues Related to WTO
• China’s mercantilism- The nature of China’s economic system, combined with the size and growth of its
economy, has created tensions in the global trading system. China’s state-owned enterprises present a major
challenge to the free-market global trading system.
• US-China trade war- The trade tussle between the US and China not only distorts the trade structure of the world
but also impacts the trade of other dependent countries.
• Institutional Issues- The Appellate Body’s operations have effectively been suspended since December 2019, as
the US’s blocking of appointments has left the body without a quorum of adjudicators needed to hear appeals.
• Lack of Transparency- There is a problem in WTO negotiations as there is no agreed definition of what constitutes
a developed or developing country at the WTO.
• Rising e-commerce and digital trade- The global trade structure of the world has changed over the last two
decades and WTO has not yet kept pace.
• Rising deadlock- WTO is facing challenges in terms of unilateral measures and countermeasures by some
members, deadlock in important areas of negotiations and ongoing impasse in the appointment of members of
the Appellate Body of WTO’s dispute settlement mechanism.
• Rise of regional trade agreement- It impacts the WTO’s multilateral trading system violate the WTO’s principle
of non-discrimination for all WTO members.
• Erosion of preferences- Concessions granted by developed countries on imports from certain developing
countries become less meaningful if the normal tariff rates are cut.

WTO AND INDIA

• India is a founding member of GATT and its successor WTO. The participation of India in WTO is increasingly
a rule-based system in the governance of inter-trade to ensure more stability and predictability.
• Services exports account for 40% of India's total export of goods and services and the contribution of services
to India's GDP is more than 55%.
Recent news of India and WTO
• India has invoked the peace clause at the WTO for exceeding the 10% ceiling on the support it offered to rice
farmers. India gave subsidies worth 13.7% as against the permitted 10 per cent.
o According to the ‘peace clause’ no country would be legally barred from food security programmes
even if the subsidy breached the limits specified in the WTO agreement on agriculture.
Reason for breaching the ceiling on subsidy limit
▪ To provide excess support measures to rice farmers to meet the domestic food security needs of its poor
population.
▪ Public stockholding programmes: India said that under its public stockholding programmes for food security
purposes, rice, wheat, coarse cereals and pulses, among others, are acquired and released to meet the
domestic food security needs of the country’s poor and vulnerable population, and “not to impede
commercial trade or food security of others.
▪ Minimum support price: India ensures food security through the minimum support price (MSP) programme,
and Public Distribution System and National Food Security Act, 2013.
• The second session of the 7th Trade Policy Review (TPR) of India concluded at the World Trade Organization
(WTO). This was the final session of the 7th trade policy review.
o Highlights of Trade Policy Review of India
▪ Introduction of Indian Customs Electronic Gateway (ICEGATE).
▪ ICEGATE is the national portal of Indian Customs of Central Board of Indirect Taxes
and Customs (CBIC) that provides e-filing services to the Trade, Cargo Carriers and
other Trading Partners electronically.
• Single Window Interface for Facilitation of Trade (SWIFT) which has reduced interface with
Governmental agencies, dwell time and the cost of doing business.
• Direct Port Delivery (DPD) allows selected importers to clear cargo directly from the port
within 48 hours of arrival, which reduces time and cost for importers, decongesting pores
and facilitates trade.
• Direct Port Entry (DPE) enables the direct movement of containers from factories thus
facilitating the shippers to Gate-In their factory stuffed exports directly to the Container
Terminal on a 24×7 basis.
• Introduction of structural reform in the form of Goods and Services Tax (GST).
• Proactive efforts in the implementation of WTO’s Trade Facilitation Agreement (TFA) and
furthering the “Ease of Doing Business” in the country.
o TFA aims to speed up customs procedures and make trade easier, faster, and
cheaper.
• Highly improved ranking in the “Trading across Borders” indicator under the Doing Business
Report.
• Liberalizing its FDI regime and India’s National Intellectual Property Rights Policy, 2016.
• Concern raised
o Unchanged Trade Policy- India’s trade policy had remained unchanged since the
previous review in 2015, with continued heavy reliance on instruments such as
tariff, export taxes, minimum import prices, import and export curbs, and licensing.
• India's stand
o India started its reason for unchanged policy to manage domestic demand and
supply requirements which may change from time to time posing dangers for the
traders.
o India also requested WTO for a permanent solution to PSH (Public Stock Holding)
PSH regarding food security.

• India proposes to waive TRIPS for vaccines amid pandemic.

India and South Africa have jointly moved a proposal at the WTO’s TRIPS Council for a waiver to help more
countries get access to medicines and vaccines during the pandemic. Fifty-seven WTO members have backed
the proposal, but the EU, U.S., Japan and Canada have opposed the idea stressing the importance of
intellectual property for innovation.
• The TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement of the World Trade
Organization (WTO) established minimum standards of protection that each government has to give
to the Intellectual property (IP) of fellow WTO members, thus limiting the former scope for flexible
national approaches.
• Reasons for waiver of TRIPS Agreement
o Waiving TRIPS would deal with the question of equity along with global growth and
livelihoods.
o For a commercial business of $30-40 billion of annual vaccine output of a few companies,
we are coming in the way of $6-7 trillion of global GDP output in one year.
Way Forward
• Coming with the provisions of protecting the local market against foreign goods will help the many
developing countries and build their confidence in WTO.
• Modernizing the WTO will necessitate the development of a new set of rules for dealing with digital trade
and e-commerce.
• Reinvigorate the WTO: Given the pressing issues around climate change, increased efforts to align trade and
environmental sustainability could help to both tackle climate change and reinvigorate the WTO.
• Build trust: There is a need to build trust among its members that the WTO needs greater engagement by
all countries, to stitch fair rules in the larger interest of all nations and thwart unfair trade practices of a few.
INTERNATIONAL CRIMINAL COURT
Why in News?
• The USA has lifted sanctions and visa restrictions on officials of the International Criminal Court (ICC), who
were investigating American military and intelligence officials for potential war crimes in Afghanistan and
probed against alleged crimes by American ally Israel in Palestinian territories.
About ICC
• ICC is an intergovernmental organization and international tribunal headquarters in Hague. It was created
by the 1998 Rome Statute of the International Criminal Court and started functioning on 1st July 2002 when
the Statute came into force.
• Last resort: It is considered as the last resort to prosecute offences that would otherwise go unpunished and
has jurisdiction over four main crimes: genocide, crimes against humanity, war crimes, and the crime of
aggression.
Role and Functions
• Accountability: It enforces an integrated mechanism for bringing about Individual Accountability for
International Crimes.
• To prevent impunity: To enforce an International justice System to prevent impunity.
• To resolve the limitations of the Ad Hoc tribunals.
• It recognizes the role of the Security Council.
• It deals with 4 types of International Crimes including genocide, war crimes, crimes against humanity, crimes
of aggression.
Limitations of ICC
• Weak legitimacy- The contribution of the ICC to furthering the cause of justice and peace is limited by the
fact that some states do not yet accept its legitimacy, by the tendency of certain states to seek to control
and use it as an instrument to reinforce their power, and by its ability to pursue its investigations successfully.

• High influence of UNSC members- The role of the permanent five members of the UN Security Council is
crucial when crimes are committed in states which are not a party to the ICC in that case the UNSC decision
is necessary for triggering the ICC's jurisdiction. The big powers are likely to be the only states politically
capable of carrying out an ICC arrest warrant.
• Biasness- ICC has been accused of being a two of Western imperialism and biased in favour of powerful
countries against which states.
• Procedural challenges- Extensive deficiencies leading to delays and frustration have questioned the efficacy
of the court.
INDIA AND ICC

India has not signed the Rome Statute and therefore it is not a member of ICC.
Reasons for abstaining of India from ICC
• Influence by UNSC members- The extraordinary privileges given to the UNSC to make referrals to the Court
which.
o According to section two under the related UNSC Resolution 1593 makes it non-obligatory for non-
signatories of the ICC to comply with this resolution.
• Definition of crime- India opposes the exclusion of cross-border terrorism from the ICC’s ambit and the
refusal to enlist the use of nuclear weapons.
• National Interest- It is very selective in its cases, and this goes against the principle of universal justice on the
ground. In earlier cases of ICC India speculated that joining ICC may impact its sovereignty and affect internal
security.
• Too much power to the prosecutor- The ICC is a legal body concerned with justice, and not politics. But it
somehow has considerable political impact because it has significant independent power. The chief
prosecutor of ICC can initiate an investigation based on a referral from any state which is a party to the ICC.
In addition, the prosecutor can initiate investigations proprio motu, based on information received from
individuals or organisations about crimes within the jurisdiction of the Court.
Way Forward
• The ICC must focus on fairness, local justice and international social justice to improve its legitimacy and
work.
• To improve the impact of the ICC, its members have a crucial role to play in supporting the Court to provide
international justice. Members must create a safe environment for those victims of crime willing to testify at
the ICC, and protect them from further violence.
• The member state should actively encourage cooperation with ICC and support human rights defenders
working towards International justice and the fulfilment of the ICC's mandate.
WORLD BANK, INTERNATIONAL MONETARY FUND (IMF) AND INDIA
WORLD BANK
Introduction
• Provide financing: The World Bank is an international organization dedicated to providing financing, advice,
and research to developing nations to aid their economic advancement and bolster their economies.
• Bretton Woods Agreement: The World Bank and International Monetary Fund were founded simultaneously
under the Bretton Woods Agreement with the same focus to help serve international governments globally.
Structure of World Bank
The World Bank Group consists of five organizations
• The International Bank for Reconstruction and Development (IBRD) provides debt financing to governments
of middle-income and creditworthy low-income countries.
• The International Development Association (IDA) provides interest-free loans called credits and grants to
governments of the poorest countries.

• The International Finance Corporation (IFC)- It is the largest global development institution focused
exclusively on the private sector.
• The Multilateral Investment Guarantee Agency (MIGA) promotes foreign direct investment into developing
countries to support economic growth, reduce poverty, and improve people’s lives.
The International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for
conciliation and arbitration of investment disputes.
Main functions of World Bank
• Financing countries: It supplies qualifying nations with low-interest loans, zero-interest credits, and grants,
all to support the development of individual economies.
• Sharing of information with various entities through policy advice, research and analysis, and technical
assistance. It offers advice and training for both the public and private sectors.
Goals
• Ending extreme poverty by 2030 (understood as reducing the percentage of people living on less than $1.25
a day to 3%)
• Promoting shared prosperity (understood as fostering income growth of the bottom 40% of the population
in every developing country).
World Bank and India

• Founding member: India was one of the 17 countries, prepared the agenda for the Bretton Woods
Conference (June 1944).
• The name “International Bank for Reconstruction and Development” was first suggested by India to the
drafting committee.
o Since its inception, the World Bank has become a reliable institution for the development and
growth of India.
• The COVID-19 pandemic has unleashed a global health emergency that has led to an economic slowdown in
India.
o Since March 2020 the World Bank has been working in partnership with the Government of India
and other development partners to rapidly mobilize support to address health, social protection,
and economic stabilization needs.
o Emergency lending: Between March and June 2020, the World Bank had approved $2.75 billion in
emergency lending to support India's response to the COVID-19 crisis of which $2.25 billion was
disbursed by December 2020.
Some recent development of World Bank with India
• India Signs $750 Million Agreement With World Bank For Emergency Response Programme for Micro, Small
And Medium Enterprises.
o It will inject more liquidity into the economy to overcome the current uncertainties and ensure more
credit flow.
o It will support the Government in providing targeted guarantees to incentivize NBFCs and banks to
continue lending to viable MSMEs to help sustain them through the crisis.
• Between March and June 2020, the World Bank had approved $2.75 billion in emergency lending to support
India’s response to the COVID-19 crisis.
o This support has resulted in ramping up testing capacity to reach 1.5 million RT PCR tests increase in
oxygen supported beds and ICU.
• The World Bank is supporting India’s social protection programs to help the poor and vulnerable households
through the $1.15 billion assistance for India’s COVID-19 Social Protection Response Program.
o It will help India to build a social protection system that can cater to diverse needs by providing
portable benefits, ensuring food, social insurance, and cash support across state boundaries.
INTERNATIONAL MONETARY FUND

About
• It was established in 1944 in the aftermath of the Great Depression of the 1930s.

• It aims to reduce global poverty, encouraging international trade, and promoting financial stability and
economic growth.
Functions of IMF
• Overseeing the economies of member countries
• Lending to countries with balance of payments issues
• Modernizing economies: Helping member countries modernize their economies
The member countries of the IMF pay their capital subscription (quotas) when they become members. Each member
of the IMF is assigned a quota, based broadly on its relative position in the world economy. Countries can then
borrow from this pool when they fall into financial difficulty.
The existing quota formula of the IMF is a weighted average of GDP (weight of 50%), openness (30%), economic
variability (15%), and international reserves (5%). The formula also includes a “compression factor” that reduces
the dispersion of calculated quota shares across members.
India and IMF

• Balance of payments deficit: Post-independence India has suffered a serious balance of payments deficit,
particularly with the dollar and other hard currency countries at that time the IMF helped India to come out
from that situation.
• Foreign exchange reserves: In the early 1990s when the foreign exchange reserves of India were
unsatisfactory in response to this, the government of India secured an emergency loan of $2.2 billion from
the International Monetary Fund by pledging 67 tons of India's gold reserves as collateral security.
• Structural reforms: India also assured the IMF to launch several structural reforms including the devaluation
of Indian currency, reduction in the budgetary and fiscal deficit.
IMF Quota and India's Interest

• Alternative to IMF: For India, BRICS has been seen as an alternative to IMF but BRICS countries account for
20% of world GDP and 40% of the world population but still hold fewer quotas and are thus under-
represented.
• IMF quota is used to decide the amount of finance a member can obtain from the IMF. Thus lesser allocation
of quota leads to a lesser amount of money from IMF to its members that hinders its development objectives.
• Quota divide: In present times developing countries hold less than half the overall quota with their rapidly
increasing economic needs they have demanded a greater share. India has been pressing for IMF quota
reforms as it would give more say to developing nations in the activities of the multilateral organisation.
Criticism of IMF
• Contention on voting rights- According to the quota formula higher allocation of IMF quota signifies more
voting rights and more borrowing permissions under IMF creating a disparity between developed and
emerging countries.
• Conditions placed on loans are too invasive and affect the economic and political sovereignty of the receiving
countries.
• Policies were imposed all at once, rather than in an appropriate sequence.
• The hegemony of developed countries- To make a reform in the IMF 85% of total votes are required that
85% votes do not cover even 15% of countries. The USA alone has a voting share of around 17% which makes
it impossible to reform quota without the consent of developed countries.
• Delay in implementation of reform- The IMF reforms which were suggested in the year 2010 approved by
the Board of Governors were implemented in 2016 with the delay because of reluctance from the US
Congress as it was affecting its share.
Needed Reforms
• The new quota formula should follow the recommendations of the quota formula review group (QFRG),
deleting an "openness" measure from the formula. The openness variable has no economic or financial
justification, and the traditional measures are biased.

• Redistribution of quota: The traditional industrial countries should agree to a target of limiting their quota
shares to 60 per cent of their GDP shares to facilitate the further redistribution of quota shares toward the
non-industrial countries.
• A reasonable benchmark would be an increase in the size of the Fund (total quotas) by at least 50 per cent
to implement the redistribution of quota and voting shares under the new quota formula.
• Comprehensive implementation of 2010 reform which included an amendment to the Articles of Agreement
established an all-elected Executive Board, which facilitates a move to a more representative Executive
Board.
• Governance reforms: Implementation of The 15th General Quota Review (in the process) provides an
opportunity to assess the appropriate size and composition of the Fund’s resources and to continue the
process of governance reforms.
Conclusion
• In the present world order of economical competition, the IMF will have to do more than just superficially
tinker with its asymmetric power structure and outdated quota system. Else, it could be slowly but steadily
pushed into irrelevance.
UNITED NATIONS HUMAN RIGHT COUNCIL

About
It is an inter-governmental body within the United Nations system responsible for strengthening the promotion
and protection of human rights around the globe and for addressing situations of human rights violations and
making recommendations on them.
Functions
• To prevent and oppose human rights violations, including systemic violation and raise concern regarding
these violations.
• To promote and coordinate the mainstreaming of human rights within the UN system
• As a subsidiary of the UN General Assembly, it reports directly to the Assembly’s member states.
Working mechanism
• Conduction of Universal Periodic Review (UPR) which serves to assess the human rights situations in all
United Nations Member States.
• The complaining procedure of Human Right Violation- It allows individuals and organizations to bring
human rights violations to the attention of the Council.
• UN Special Procedures- These are made up of special representatives, independent experts and working
groups that monitor, examine, advise and publicly report on thematic issues or human rights situations in
specific countries.
Concern with UNHRC
• Members become abusers- Critics have raised concern that countries like China, Cuba, Eritrea, Russia and
Venezuela who have been accused of human rights abuses are the members of the council.
• Creating a balance between human right violation and sovereignty of the state is one of the challenges for
UNHRC many recommendations of UNHCR are rejected on one basis.
• Biasness- Many member countries including have alleged the role of the excessive and disproportionate
emphasis on Israel on human rights violations it received more attention than North Korea and Yemen. Due
to this, the US has stepped down from UNHRC but after renegotiations, it has decided to rejoin it.
UN Human Rights Council and India

• India was elected to the Council for three years. In 2020, India’s National Human Rights Commission
submitted its mid-term report to the Council as a part of the third round of the Universal Periodic Review
(UPR) process.

Issues raised by UNHRC on India

• CAA: With the rollout of the Citizenship Amendment Act, 2019 UNHRC filed a plea in Supreme Court for the
violation of human rights.
• Jammu Kashmir: UNHCR also raised concern over the Human Rights violation in Jammu and Kashmir by
detaining activists and political leaders under house arrest.
• Recently A group of Special Rapporteurs sent by UNHRC has expressed their concerns over the draft
Environment Impact Assessment (EIA) notification 2020 and written to the Indian government abo
Way Forward
• The model of work of UNHCR should be less politically influenced and more practical based.
• The effort of UNHCR goes into some country-specific resolutions that might be better invested in
addressing visibly deteriorating human rights situations before they become chronic or crises.
• More needs to be done to ensure that substantive outcomes in the Council are catalysts for change,
especially at the national level.
• The High Commissioner for Human Rights and its office must complement and be complemented by
effective HRC.
• Members and observers should invest greater effort in connecting HRC work with that in other parts of the
UN system. They should also cooperate on more forward-looking thematic issues like biotechnology, the
administration of justice and healthcare.
Conclusion
• In the present scenario when a violation of human rights has become a common incident it is important to
robust the UNHRC. Stepping down democratic countries would be a free trial for those countries who are
or might one day be the target of oppression and violence.
• These countries rely on the protection the UN might offer however in perfect and even more on those
committed to human rights to work within the UN to strengthen that protection and make it truly universal.
WORLD HEALTH ORGANIZATION (WHO) AND INDIA

About
• WHO is the United Nations’ specialized agency for health. It is responsible for providing leadership on global
health matters, shaping the health research agenda, setting norms and standards, articulating evidence-
based policy options, providing technical support to countries and monitoring and assessing health trends.
Structure
• The WHO has two decision-making bodies which are the World Health Assembly and the Executive Board.
The executive board is composed of 34 members qualified in the field of health, with members being
elected for three-year terms.
• The Health Assembly is the WHO’s decision-making body and consists of 194 Member States.
Mandate and functions
• Articulate ethical and evidence-based policy options.
• Provide leadership on matters critical to the health and engage in partnerships where joint action is
needed.
• Set norms and standards, and promote and monitor their implementation.
• Shape the research agenda and stimulate the generation, translation and dissemination of valuable
knowledge.
• Provide technical support, catalyse change and build sustainable institutional capacity.
• Monitor the health situation and assess health trends.
India and WHO

• India became a party to the WHO on 12 January 1948.
• In 1967 India was in the claws of smallpox with a coordinated effort by the Indian government and World
Health Organization (WHO), smallpox was eradicated in 1977.

• India began the battle against the disease in response to the WHO’s 1988 Global Polio Eradication Initiative
as a result of these efforts, India was removed from the list of endemic countries in 2014.
India, WHO and COVID-19
• The World Health Organization is a leading organization involved in global coordination for mitigating the
COVID-19 pandemic.
• The WHO has spearheaded several initiatives like the COVID-19 Solidarity Response Fund, the UN COVID-
19 Supply Chain Task Force, and the solidarity trial for investigating potential treatment options for the
disease.
• Both India and WHO have come forward for vaccine development and organising immunization programs
in response to COVID-19.
Recent developments
• India has been elected to the Executive Board of the World Health Organisation (WHO). It will also be
holding a Chairmanship of the Executive Board for the next year (from May 2020- May 2021)
o The main functions of the Board are to give effect to the decisions and policies of the Health
Assembly, to advise it and generally to facilitate its work.
o The Board and the Assembly create a forum for debate on health issues and for addressing concerns
raised by the Member States.
• The Union Minister of Health and Family Welfare has been nominated by the Global Alliance for Vaccines
and Immunisation (GAVI) as a board member.
o GAVI is an international organisation, a global vaccine alliance created in 2000. WHO is one of its
partners. It is responsible for strategic direction and policy-making, oversees the operations of the
Vaccine Alliance and monitors programme implementation.
o It unites the public and private sectors on a common platform with a shared goal of creating equal
access to new and underused vaccines for children living in the world’s poorest countries.
Criticism
• Dependent on rich countries: WHO has been dependent on donor funds from rich countries rather than
through secured funding from countries.
• Efficacy under question: After its inadequate performance in containing West Africa’s Ebola epidemic of
2014, its efficacy has been questioned.
• Lack of rigidity on analysis of the spread of coronavirus due to which various countries are still not able to
overcome the pandemic completely.
Way Forward
• There should be proper support to the WHO financially and administratively for study and research.
• After electing India as a nation has an important say in fundamental reforms in the UN System, including
the WHO to make it more transparent, competent, and accountable.
UNITED NATIONS RELIEF AND WORK AGENCY

About
• The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) is a UN
agency that supports the relief and human development of Palestinian refugees.
• It is funded almost entirely by voluntary contributions and the financial support of UN members. UNRWA
services encompass education, health care, relief and social services, camp infrastructure and
improvement, protection, and microfinance among Palestinian refugees.
Palestine refugees are defined as “persons whose normal place of residence was Palestine during the period 1
June 1946 to 15 May 1948, and who lost both home and means of livelihood as a result of the 1948 conflict.
UNRWA and India

• Support to Palestine: India has been a solid and consistent supporter of Palestinian refugees for decades.

• Indian aid: India contributed 2 million USD to the UNRWA fulfilling its commitment of USD five million in
aid annually to support its programmes and services, including education, health care, relief and social
services for Palestinian refugees.
• India increased its annual financial contribution to UNRWA from USD 1.25 million in 2016 to USD 5 million
in 2018 and 2019.
• India has also assured to assist countries in need of critical, life-saving drugs amidst the COVID-19 pandemic
and will send a medical shipment to Palestine in the coming week.
Importance
• This contribution by India is more significant as it comes at a critical time when India is facing a difficult
situation at home due to the pandemic and it has still not forgotten the Palestinian refugees and stepped
in to help stabilise basic services, including education, health care, relief and social services for Palestinian
refugees.
• This financial assistance by India comes at a time when UNRWA has been facing a huge budgetary deficit
and with an overwhelming majority of the 5.6 million refugees living under the poverty line, the ongoing
pandemic has broken the backbone of the basic infrastructure in the area they live.
Way Forward
• Appeal to other countries: India has also made a strong appeal to other traditional donors of UNRWA to
consider enhancing their contributions as well as to non-donor member states to consider contributing to
the agency in solidarity with the Palestine refugees.
• UNRWA should extend its help to other parts of the region where other innocent people are suffering from
the consequences of war like Yemen, Syria and many other countries.
UNITED NATIONS ECONOMIC AND SOCIAL COUNCIL (UN ECOSOC)

About
• The UN Charter established ECOSOC in 1945. It is one of the six principal organs of the United Nations,
responsible for coordinating the economic and social fields of the organization.
Mandate
• It serves as the central forum for discussing international economic and social issues and formulating policy
recommendations to member states and the United Nations system.
• Sustainable development: Each year, ECOSOC structures its work around an annual theme of global
importance to sustainable development. This ensures focused attention, among ECOSOC’s array of partners
and throughout the UN development system.
India and UN ECOSOC
• After India's election to the UN Security Council, the United Nations’ Economic and Social Council (ECOSOC)
has held a high-level dialogue on the management of COVID-19.
• Under this India has extended assistance to more than 150 countries under its operation Sanjeevani
countries like Afghanistan, Bangladesh, Bhutan, Maldives, Nepal and Sri Lanka are the beneficiaries.
Way Forward
• At this crucial moment, with Covid-19 still spreading, geopolitical tensions rising and the cry for racial
justice, social justice and climate justice ever more urgent, the UN and world leaders have a responsibility
to respond to the anxieties, fears and hopes of the people.
INTERNATIONAL LABOUR ORGANIZATION

About
• ILO is a United Nations agency. Its goal is to advance social and economic justice by setting international
labour standards.

Functions
• Designing and implementing policies that directly solve social and labour issues.
• Adopting the international labour standards in the form of conventions and recommendations and control
over their implementation.
• Assisting member-states in solving social and labour problems.
• Protecting the human rights of labour and ensuring their welfare.
INDIA AND ILO

• Founding member: India is a founding member of the ILO and it has been a permanent member of the ILO
Governing Body.
• India has ratified six out of the eight fundamental ILO conventions except for Freedom of Association and
Protection of the Right to Organise Convention, 1948 and Right to Organise and Collective Bargaining
Convention, 1949.
o Reason for not ratifying because it involves granting of certain rights that are prohibited under the
statutory rules namely, the right to strike, to openly criticize government policies, to freely accept
a financial contribution, to freely join foreign organizations etc.
• Recent Development
o After 35 years, India has assumed the role of chair of the International Labour Organisation’s
governing body for October 2020 till June 2021.
▪ It will provide a platform to apprise participants of the transformational initiative taken by
the government in removing the rigidities of the labour market, besides making intention
clear about the universalisation of social security to all workers in the organised or
unorganised sector.
Way Forward
• With the rising pandemic across the nation, the social security of labour is again in danger, there is a need
for collaboration of all states with ILO to come up with a policy formulation to ensure employment and
protect their rights amid pandemic.
INDIAN DIASPORA
WHY IN NEWS?
• Recently Prime Minister Narendra Modi called Diaspora as ‘RASHTRADOOT’ or ‘Informal Ambassadors’,
highlighting the important role played by them in India’s foreign policy.
Diaspora
• A diaspora is a large group of people with a similar heritage or homeland who have since moved out to
places all over the world.
• Historically, the word diaspora was used to refer to the mass dispersion of a population from its indigenous
territories, specifically the dispersion of Jews.
• Diaspora in Indian context includes Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs) and
Overseas Citizens of India (OCI). PIO and OCI card holders were merged under one category OCI in 2015.
India’s diaspora policy

• After Independence, the then PM Nehru adopted indifferent attitude towards diaspora. He categorically
announced that ethnic Indians who chose to remain abroad would consider themselves as citizens or nationals
of their respective host lands. They were encouraged to integrate with host culture and fight for the liberation
of their adopted lands.

• Switch of foreign policy priorities: When there was a switch of foreign policy priorities from realism to inter- third
world cooperation under the regime of Rajiv Gandhi, there was a slight shift in Diaspora policy as well.
• Having realized Indian Diaspora as a strategic asset, he invited Indian diasporic talents like Sam Pitroda to
realize his vision of 21st century India and took administrative measures like the establishment of Indian
Overseas Affairs department in 1984.
• Post LPG reforms: On the advent of new economic model post LPG reforms, the Indian Diaspora was able to
participate in the plethora of economic opportunities of the unregulated and open Indian economy.
• It resolved the foreign currency crisis due to substantial investment and remittance from the Indian Diaspora.
Subsequently, the Indian government changed its outlook towards Diaspora and reviewed its Diaspora
policy.
• Serious engagement: Atal Bihari Vajpayee is credited for having promoted serious engagement with the
Indian diaspora to develop mutually beneficial linkages.
• The various initiatives taken by him were separate Ministry of Overseas Indian Affairs, PIO Card, Overseas
Citizen of India Card, Pravasi Bharatiya Divas, Pravasi Bharatiya Samman Award, NRI funds and voting rights
for Indian citizens abroad.
• The present government has given special focus on diaspora. In 2015, the Ministry of External Affairs launched
the e-migrate system that requires all foreign employers to register in the database. Government has also
launched ‘Know India Program’ (KIP) in 2016 for diaspora engagement to familiarizes Indian-origin youth (18-30
years) with their Indian roots and contemporary India.
DATA
• As per International Migration Stock ,2019 of UNDESA, Indian diaspora comprises 6.4%(17 million) of total
migrant population. Top destinations are USA and west Asia.
• According to Global Migration Report 2020, India continues to be the largest country of origin of international
migrants with a 17.5 million-strong diaspora across the world, and it received the highest remittance of $78.6
billion (3.4% of India’s GDP) from Indians living abroad.
• They constitute 1.3% of the USA population and contribute 6% of the UK's GDP.
Significance of Diaspora-
• Remittances- India received the highest remittances ($78 billion), majority from the middle east. Further, the
migration of less-skilled labour (especially to West Asia) has also helped in bringing down disguised
unemployment in India.
• Reverse brain drain- in form of capital, technology and investments. Post LPG reforms, investments from Indian
diaspora was instrumental in solving BoP crisis.
• Strategic advantage- Indian diaspora is one of the richest minorities in many developed countries. They are
important for track 2 or backchannel diplomacy. Their advantage is evident in “diaspora diplomacy”, whereby
they act as “bridge-builders” between their home and adopted countries.
• For example, Indo-US Civil Nuclear Deal is a case in point, as ethnic Indians in the United States successfully
lobbied for the signing of the Nuclear Deal.
• Soft power- Diaspora are instrumental in spreading Indian culture, cuisine, tradition and civilizational values
abroad. This has positive impact on India’s soft power abroad as well as tourism.
• Political power: Many people of Indian origin hold top political positions in many countries, in the US itself they
are now a significant part of Republicans and Democrats, as well as the government. Similarly, many Indian origin
people hold important position in Pacific island nations like Fiji.
ISSUES
• Impact of Covid Pandemic- Due to reverse migration the remittances from diaspora will reduce. Further, the
economic problems due to pandemic can also cost their jobs and livelihood. This can further increase demand
on Indian job market and enhancing disguised unemployment.
• Economic slowdown- and rise of protectionism like America first policy and reduction in H1-B visas can reduce
job prospects for Indian diaspora abroad. Further, with the rising Anti-globalization wave, there has been an
increase in the incidents of suspected hate crimes against the Indian community

• Laws such as Kafala and Nitaqat in West Asia are against human rights and dignity and amount to exploitation of
Indian workers.
• Instability and civil wars in countries like Bahrain, Yemen etc. threatens the security of Indian workers.
• Separatist movements like Khalistan are backed by certain section of diaspora in Canada through funding support
• Heterogenous diaspora- The diaspora from the Gulf look to India for support on welfare issues those whereas
from wealthier nations such as the US look to India for investment opportunities. This create difficulty in devising
common diaspora policy.
GOVT STEPS
• Merging of ministry of OIA with MEA for more coherent diaspora policy and supporting Indian citizens abroad.
• MoU with countries for protection of workers and online database of emigrants.
• For example, India has been entering into bilateral Social Security Agreements (SSAs) with other countries in
order to protect the interests of Indian professionals / skilled workers working abroad for short durations
and enhance the competitiveness of Indian companies.
• ‘Madad’ portal for grievance redressal of diaspora. Consular grievances regarding compensation, court cases,
domestic helps, imprisonment abroad, transportation of mortal remains, repatriation, salary dues, tracing the
whereabouts can be lodged under this scheme.
• Operation Rahat, operation Sankat Mochan and Vande Bharat, Samudra Setu missions during Covid-19 Pandemic
to bring back stranded Indians from countries such as Yeman.
• Pravasi bhartiya divas and schemes such as Bharat Ko Janiye etc. to familiarize Indian origin people of their rich
cultural and civilizational heritage and strengthen their links with India.
WAY FORWARD
• Dual Citizenship- AS suggested by L.M Singhavi committee in 2000.
• Special Economic Zones for NRI investments and cutting red tapism. Diaspora should also be treated at par with
other Indian citizens both in the private and public sectors, to attract talented persons into the public sector.
• Diversification- Currently, India’s migration is concentrated in English-speaking countries for jobs and education.
The EU, Japan, Latin America and Russia should also be targeted over the next few decades. Also, there is greater
scope for jobs at all skill levels in global transportation, health and home care. This requires major investments
in specific educational services.
• Evacuation Policy: There is a need for a transparent diaspora evacuation policy from conflict zones in a world
where crises materialize in order to ensure safety and security of Indian diaspora.
CONCLUSION-
• As MEA lacks capacity and has resource crunch, diaspora as Informal Ambassadors can complement official
diplomatic efforts and expand India’s reach. Also, viewing the diaspora only through the looking glass of
remittances and financial flows represent very myopic view. A comprehensive diaspora policy is thus needed to
encourage and incorporate Indian diaspora in Indian growth story.

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PRAHAAR- The final hit to UPSC Exam-2021

Sumit Rewri and team

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INDIA AND IT’S NEIGHBOURHOOD RELATIONS ...................................................................................................................... 9

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INDIA-NEPAL TERRITORIAL DISPUTE ........................................................................................................................................ 27

INDIA – MYANMAR .............................................................................................................................................................. 34

INDIA AND BHUTAN ............................................................................................................................................................. 39

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INDIA – MAURITIUS ............................................................................................................................................................. 51

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USA Offers Mediation Between India and China ................................................................................................................. 67

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INDIA – WEST ASIA .............................................................................................................................................................. 90

INDIA - ISRAEL ...................................................................................................................................................................... 95

INDIA-QATAR ..................................................................................................................................................................... 100

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INDIA’S DRAFT ARCTIC POLICY ........................................................................................................................................... 122

NON-ALIGNED MOVEMENT- VIRTUAL NAM SUMMIT ........................................................................................................ 139

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INDIA AND APEC-....................................................................................................................................................................142

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INDIA AND IT’S NEIGHBOURHOOD RELATIONS

DETERMINANTS OF NEIGHBOURHOOD FIRST POLICY-

HISTORICAL OVERVIEW of India’s Neighbourhood

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MAJOR CHALLENGES IN INDIA’S NEIGHBOU RHOOD RELATIONS

Brahmaputra River and India-China-Bangladesh relations

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• India’s worries: Recently,

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REASONS FOR LOW TRADE

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RISING CHINESE FOOTPRINT

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NEIGHBOURHOOD FIRST POLICY

POSITIVE ASPECTS OF THE POLICY-

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KEY ISSUES IN INDIA-PAKISTAN

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MORE ON GILGIT BALTISTAN-

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60 YEARS OF INDUS WATER TREATY

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• Tulbul Navigation project - Jhelum,

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SIGNIFICANCE OF INDIA_BANGLADESH RELATIONS

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TEESTA WATER DISPUTE

TEESTA WATER DISPUTE

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Key takeaway’s of PM Modi’s visit to Bangladesh