QIP - International Relations Part - II PDF

Content
1. GLOBAL POWERS ..............................................................1

USA ..................................................................................................................................1
A new European Union strategy for India .......................................................................... 11
Germany ......................................................................................................................... 14
Japan ............................................................................................................................. 17
Appendix: Asia-Africa Growth Corridor (AAGC) ................................................................. 21
France ............................................................................................................................ 23
Russia ............................................................................................................................ 25
APPENDIX-I: Decline in Indo-Russia Relations ................................................................... 28
Appendix-II: Why RIC is as important to India as JAI and BRICS?........................................ 29
UK .................................................................................................................................. 32
Annexure: Extradition and the United Kingdom.................................................................. 34
Brazil .............................................................................................................................. 36
Israel .............................................................................................................................. 38
Appendix: India’s De-hyphenated Policy ............................................................................ 40
2. INTERNATIONAL ORGANIZATIONS & AGREEMENT................ 44

IMF................................................................................................................................. 44
World Bank ..................................................................................................................... 46
WTO ............................................................................................................................... 49
G-20 ............................................................................................................................... 53
ASEAN............................................................................................................................ 54
BIMSTEC ........................................................................................................................ 58
Indian Ocean region and world affairs .............................................................................. 61
BRICS ............................................................................................................................ 62
Asian Infrastructure Investment Bank ............................................................................... 65
Trans Pacific Partnership (TPP) ....................................................................................... 67
Regional Comprehensive Economic Partnership and India ................................................. 69
Multilateral Negotiations for a Nuclear Weapons Ban ........................................................ 70
Wassenaar Arrangement and India ................................................................................... 72
India Admitted to Australia Group .................................................................................... 74
IAEA ............................................................................................................................... 76
Nuclear Security Summit ................................................................................................. 78
Non-Alignment Movement (NAM)..................................................................................... 80
UNSC Reform .................................................................................................................. 82
3. GLOBAL ISSUES .............................................................. 85

International Terrorism .................................................................................................... 85
Migration Crisis in Europe ................................................................................................ 86
Rising Protectionism and Currency Wars .......................................................................... 89
Greek Debt Crisis ............................................................................................................ 92
Iran Nuclear Deal............................................................................................................. 94
Us Sanctions on Iran ....................................................................................................... 96
Global Initiative Launched to Fight Fake News .................................................................. 98
What does US Recognition of Jerusalem Means? ............................................................ 100
YEMEN WAR and Implications........................................................................................ 102
Why Saudi Arabia is Moving Towards Reforms? .............................................................. 104
Rohingya Repatriation Deal Signed ................................................................................. 105
QUALITY IMPROVEMENT PROGRAMME QIP
GLOBAL POWERS
USA
PIVOT TO ASIA
Over the last two decades, Washington has remained stuck in Afghanistan and Iraq, thus paving
way for China to advance its political influence within the Asia-Pacific. “Pivot to Asia”, or more
specifically “US rebalancing”, demonstrates the realization of American strategic thinking towards
the threat which Beijing poses to Washington not only diplomatically but also economically.
Objectives:
To Counter China: The central intention is balancing and countering China’s rise in the Asia-pacific
region while the other objectives revolve around it.
Asian century: The significance of Asia Pacific lies in the geopolitical interests of the key powers
of the global politics. The years following the financial predicament of 2009 have witnessed some
crucial political and strategic changes since the region has become the centre of attraction driving
the global politics.
Constructing a Sense of Justification: Since Washington is currently preoccupied in War-on-Terror,
it requires a good reason to pull out its resources from the other regions to Asia-Pacific. The recent
phenomenal boom of China has provided US that justification where it feels itself bound to balance
and to defend the land from any aggression.
Strengthening Alliances: Another objective places the strengthening and reinforcing the strategic
alliances as the foremost goal of the US. The idea is to reassure the Asian partners its presence
whenever they feel threatened especially by China.
Peaceful Resolution of Regional Disputes: The non-violent resolution of Asian disputes is in the
American core interests. The US is very much concerned regarding the solution of China-Taiwan
tension and Korean Peninsula. It is keen to imply diplomatic efforts to ensure regional security.
Another objective involves the denuclearization and non-proliferation of North-Korea in-order to
guarantee peace and protection.
Incorporating Rising Powers: Another objective involves the integration of emerging China into
contemporary global order. Keeping into consideration China’s economic and military boost, it is
vital for the US to make Beijing act as a mature and responsible regional stakeholder.
Multilateral Commitment and Tackling Non-Traditional Dangers: The strategic alliances are
the building-blocks for collaboration against security threats faced by the region whether it be
extremism, dangers from climate change, infectious diseases, nuclear proliferation or natural
calamities (Sutter & Others 2013, 3). Such an alliance provides a basis for trust-building and
cooperation to tackle Chinese rise.
Steps under it: Politically speaking, three elements of US rebalancing strategy have been figured
out that includes defence, financial and diplomatic aspects
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QIP QUALITY IMPROVEMENT PROGRAMME
Security Aspect: The recent adjustments in the US defensive posture reveal the importance of the
element of security for the only global hegemon. Washington is aggressively shifting its extensive
military potentials from other targets to one platform that encompasses the entire Asia-Pacific
region thus, reshuffling its defensive arrangements to ensure a much broader presence of the
US armed forces to counter any possible belligerence. This incorporates the highly sophisticated
military dispersion in Philippines and Australia and also to other regional allies, thereby guaranteeing
an enhanced coercive amalgamation within the region.
Financial Aspect: The rebalancing strategy also involves an intention to enhance trade and
economic schemes amongst the US and its partners in-order to foster a trustworthy environment.
Diplomatic Aspect: The pivot has witnessed heightened diplomatic and military engagement of
US high-profile officials in Asia-Pacific. The agenda involves reinforcing the strategic partnerships,
engaging multilateral organizations, controlling US-China hostility and promoting trust-building
cooperation amongst the two global giants.
China’s reaction to it:

Russia and China have become closer; Russia in August 2015 released a new naval doctrine that
singles out China as its core partner in the Pacific
China has launched various projects like One Belt One Road Initiative; AIIB
India:
Has been a tough balancing game for India,
On one hand, it is becoming a part of Asia pivot (2 visits in 2 years, increasing defence relations and
recent conclusion of Malabar exercise);
! China’s increasing presence in Indian Ocean and thus we need US
! Complimentarily exists between US Asia’s pivot and India’s act east policy
But to counter the tilt, India has also sought membership of SCO.
CONCLUSION
Keeping in consideration the current political scenario within Asia-Pacific, it is high time to resolve
the tensions in South China Sea (SCS) region since the focus of the core powers remains in the very
region and even a small skirmish could usher the world towards a global war.
The peaceful future of China and America lies in the clarification of mutual misunderstandings,
however, the analysts have observed their future relationship in two entirely different
perspectives.
One is extremely pessimistic, focusing on realism where there would be a serious power
struggle and a zero-sum battle amongst China and US.
The second view incorporates optimism, focusing on Liberal stance where its advocates
believe that cooperation amongst the two giants would ultimately become inevitable.
Since the two would, diplomatically and economically, rely on each other, therefore, conflicts would
be de-escalated and wars could be eschewed. Hence, only time will tell what lies ahead but one
thing remains evident that Asia-Pacific would decide the fate of the world.
DEFENCE COOPERATION BETWEEN INDIA AND USA

Defence relationship has emerged as a major pillar of India-U.S. strategic partnership with the
signing of ‘New Framework for India-U.S. Defence Relations’ in 2005 which has been renewed
recently.
Ways of cooperation:
Defence trade – as of December 2014, Aggregate worth of defence acquisition from U.S. Defence
has crossed over US$ 10 billion.
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Co-production
! Defence Trade and Technology Initiative (DTTI) has been established to simplify technology
transfer policies and exploring possibilities of co-production to implement make in India.
! In sept 2015 pentagon established India Rapid Reaction Cell (IRRC) to pursue all aspects of the
India-U.S. Defence Trade and Technology Initiative (DTTI). It’s a first country-specific cell.
! During the visit of defence secretary in June 2015, Both India and the United States have finalized
two project agreements for joint development of Mobile Electric Hybrid Power Sources and the
Next Generation Protective Ensembles.
! It was also decided to expedite discussions to take forward cooperation on jet engines, aircraft
carrier design and construction, and other areas under ‘Make in India’.
Joint exercises – Indian navy ship participated in Rim of the Pacific (RIMPAC) exercise in 2014;
Malabar in 2015
Personnel exchanges,
Collaboration and cooperation in maritime security and counter-piracy, and
In June 2015 the 2015 Framework for the US-India defence relationship was signed. It reviews the
2005 agreement and will guide the bilateral defence and strategic partnership for the next ten years.
The new Framework agreement provides avenues for high level strategic discussions, continued
exchanges between armed forces of both countries, and strengthening of defence capabilities.
The Framework also recognizes the transformative nature of the Defence Technology and Trade
Initiative (DTTI).
Institutional mechanisms for dialogue like Defence Policy Group (DPG), Defence Joint Working
Group (DJWG), etc.
Reasons:
India’s need for upgraded defence equipments due to threat of 2 front-war and US need of market.
Due to our common interests like stability, counter-terrorism and ensuring free flow of commerce
and resources through the vital sea lanes of Indian Ocean.
Probably US desire to counter China via India, for that India has to be strengthened; a part of pivot
to Asia.
Recent Deal
In early April 2016, U.S. Defence Secretary Ashton Carter visited India.
During the three day visit talks were initiated on Logistics Exchange Memorandum of Agreement
(LEMOA).
During the visit, the mutual proximity of the two countries’ militaries appeared greater than ever,
and a clear signal of both sides’ cooperative intent came in the form of an announcement that
the Logistics Exchange Memorandum of Agreement (LEMOA) would be signed in the forthcoming
weeks or months.
Mr. Carter spoke of his desire to advance consultations on cooperation over the joint development
of aircraft carriers and jet fighter technology. In addition to LEMOA, two “pathfinder projects” were
announced, to co-develop a Digital Helmet Mounted Display; and so was a Joint Biological Tactical
Detection System.
Meanwhile, Mr. Parrikar and Mr. Carter have agreed to expand collaboration under the Defence
Technology and Trade Initiative, infuse greater complexity in their military engagements and
maritime exercises, commence discussions on submarine safety and anti-submarine warfare,
and initiate a bilateral maritime security dialogue that would include diplomats and the defence
establishments.
How strong are defence relations between the 2 sides?
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! India-U.S. defence cooperation has witnessed an unprecedented boom for well over a decade
now, rising from being “as flat as a chapati” in 2002, in the words of former U.S. Ambassador
to India Robert Blackwill, to the present day, with the aggregate worth of defence acquisitions
from Washington exceeding $10 billion.
What are the challenges ahead?

The relationship should be seen exclusive of India’s outreach to other countries
Yet if burgeoning trade volumes have historically represented the upside to growing convergence
within bilateral defence ties, then the paucity of actual, production-line-based collaborative
initiatives under the Defence Technology and Trade Initiative (DTTI) - which in a hypothetical world
would tie in neatly with Prime Minister Narendra Modi’s ‘Make in India’ initiative - is a testament to
the need for more trust and willingness to be accommodative towards a partner.
However, going by the plodding pace of four other such “pathfinder projects” outlined during U.S.
President Barack Obama’s visit to India in January 2015, it may be unwise to expect the two
announced during Mr. Carter’s visit to result in actual production kicking off any time in the near
future. Of the initial four pathfinder projects agreements, only two were signed in August 2015, the
two appear to have fallen off the table or at least placed on the shelf for the moment.
While some discussions under DTTI have slowed or stalled owing to Washington’s inability, for a
variety of reasons, to meet India’s hopes and expectations for sharing sensitive technologies and
others have paused to come to grips with India’s offset rules under the latest Defence Procurement
Procedure, there appears to be rising frustration all round at the crawling pace of progress.
NEW PHARMA RULE OF US AND ITS IMPACT ON INDIAN PHARMACEUTICALS

United States government reportedly made it mandatory for Active Pharmaceutical Ingredients
(APIs) to be manufactured locally. It is mandatory for APIs to be manufactured locally for
governmental supplies of drugs but not for retail marketing.
The decision of Local manufacture of ingredients made mandatory has sent to Indian
pharmaceutical exporters and it will significantly impact Indian drug exports.
At present, nearly 80% of drug raw material requirement is met by India or China.
Why US bring this new rule?

The changes in the norms have been made under the Drug Master Files (DMF) - a submission to
the USFDA.
To provide and get confidential information about facilities, processes, or articles used in the
manufacturing, processing, packaging, and storing of one or more human drugs.
What was the old policy?

Before the new norms came into effect,
! U.S.-based companies were allowed to procure for Active Pharmaceutical Ingredients (APIs)
from countries like India and China.
! They can make the fixed formulations (final product) in the U.S.
! They can sell the drugs to the U.S. government.
India’s supply to the US market increased at an average annual rate of 44% from 2008 to 2012
(from $255 million in 2008 to $1.12 billion in 2012).
India was the second largest supplier of generic APIs to the US market with a 24.4% share in 2014,
according to the CPA report.
How it will impact India?

Indian companies are not allowed to quote for government contracts in the U.S. since India is not
a signatory to the WTO’s government procurement agreement.
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But this change will affect companies which have subsidiaries in the U.S. that procure APIs from
their Indian counterparts and make the finished product in the U.S.
It will also be a setback for Indian companies that have subsidiaries or holdings in the U.S.
At present, nearly 80% of drug raw material requirement is met by India or China
Impact on U.S.A
It will seriously impact availability and prices of medicines in the United States. The U.S. government
procurement prices will go up significantly.
Cost of generics for the US will go up.
Inflation in drug prices is a major setback to this rule.
Way Ahead
Sources say that the government would initially endeavor to determine this issue bilaterally involving
both the parties
If this fails then the next step considered would be to approach the World Trade Organization’s
dispute settlement panel.
Pharmexcil - India’s pharmaceutical Export Promotion Council - has approached the Commerce
Ministry, requesting authorities to intervene and resolve the issue.
WTO RULE IN FAVOUR OF USA IN SOLAR POWER CASE

Recently WTO released its ruling against India’s National Solar Mission, deciding that India’s efforts
to boost local production of solar cells violated WTO rules.
What is the issue all about?

India in 2010 launched its National solar programme the program aimed at reducing the cost of
solar energy and achieve 100000 MW of solar power capacity by 2022. . This solar programme was
launched because coal was unable to meet India’s power sector demands and also focusing on
solar power would meet India’s commitment towards climate change.
To incentivize the production of solar energy within the country, the government under the
programme agrees to enter into long-term power purchase agreements with solar power producers,
effectively “guaranteeing” the sale of the energy produced and the price that such a solar power
producer could obtain.
Thereafter, it would sell such energy through distribution utilities to the ultimate consumer. However,
a solar power producer, to be eligible to participate under the programme, is required compulsorily
to use certain domestically sourced inputs, namely solar cells and modules for certain types
of solar projects. In other words, unless a solar power producer satisfies this domestic content
requirement, the government will not ‘guarantee’ the purchase of the energy produced.
US stand in this case?

In 2013, the U.S. brought a complaint before the WTO arguing that, the domestic content requirement
imposed under India’s national solar programme is in violation of the global trading rules specifically,
it said, India has violated its national treatment obligation by unfavorably discriminating against
imported solar cells and modules. In other words, India was discriminating between solar cells
and modules which were otherwise identical on the basis of the national ‘origin’ of the cells and
modules, a clear violation of its trade commitment.
What is India’s stand in this case?

India argued that the program helps the country to meet its climate commitments under the United
Nations Framework Convention on Climate Change (UNFCCC), the WTO rejected that argument.
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India principally relied on the ‘government procurement’ justification, which permits countries to
deviate from their national treatment obligation provided that the measure was related to “the
procurement by governmental agencies of products purchased for governmental purposes and
not with a view to commercial resale or use in production of goods for commercial sale”.
India also argued that nearly half of US States have renewable energy programs that, like
India’s solar program, include “buy-local” rules that create local, green jobs and bring new solar
entrepreneurs to the economy.
WTO panel stands in this case

WTO panel decided that India has violated In its ruling, the WTO agreed that India’s buy-local rules
“accord less favorable treatment” to imported solar components, even while acknowledging that
imported cells and modules currently have a dominant share of the market for solar cells and
modules in India.
In so far as the government procurement derogation was concerned, the panel found that the
product being subject to the domestic content requirement was solar cells and modules, but
the product that was ultimately procured or purchased by the government was electricity. The
domestic content requirement was therefore not an instance of government procurement
Besides, the panel also found that since India failed to point out any specific obligation having
direct effect in India or forming part of its domestic legal system, which obligated India to impose
the particular domestic content requirement, the general exception was not available to the Indian
government in the instant case.
Is there basis for domestic content requirement?

There appears to be no rational basis for how mandatory local content requirements contribute
towards promoting the use of clean energy. If the objective is to produce more clean energy, then
solar power producers should be free to choose energy-generation equipment on the basis of
price and quality, irrespective of whether they are manufactured locally or not.
In fact, by mandatorily requiring solar power producers to buy locally, the government is imposing
an additional cost, usually passed on to the ultimate consumer, for the production of clean
energy.
Impact of this decision

Solar power producers in India would get freedom to choose energy-generation equipment on the
basis price and quality, irrespective of whether they are manufactured locally or not, Since most
of the producers in USA and China produce these equipments cheaply it would reduce the price
of solar electricity in India which benefit the consumers of solar power in India.
However, this may affect the profitability and future of nascent solar equipment making industry
in India since power producers in India would hardly buy from them after this decision as there
equipments are of inferior quality and also they are costly.
It would also give a boost to investment in solar power industry as with reduction in cost the
profitability of solar power producers would increase.
Options for India

India has an option to appeal to the appellate body. Simultaneously, India may be exploring
the option of filing a counter complaint against the U.S., with several states in the U.S. such as
Michigan, Texas and California having also reportedly been accused of employing mandatory
local content requirements in the renewable energies sector.
Way foreword
India must resist the temptation of adopting protectionist measures such as domestic content
requirements which are inconsistent with its international obligations. Domestic content measures,
despite their immediate political gains, have a tendency to skew competition. Manufacturers must
remain free to select inputs based solely on quality and price, irrespective of the origin.
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It is entirely possible to give preferential treatment to clean energies (in the form of tax rebates for
solar power producers and so on) without requiring mandatory local content.
INDIA, U.S.A MARITIME SECURITY DIALOGUE

India and the US have recently held their first Maritime Security Dialogue which focused on
boosting cooperation in the challenging sector with Washington rebalancing its military assets
to Asia Pacific.
Key points of the dialogue

The dialogue covered issues of mutual interest, including exchange of perspectives on maritime
security development in the Asia-Pacific and Indian Ocean Region as well as prospects for further
strengthening cooperation between India and the United States in this regard.
It focused on strategic maritime security issues like:

Asia-Pacific maritime challenges,
Naval cooperation,
Multilateral engagement.
! They also agreed to launch a bilateral Maritime Security Dialogue.
! The other initiatives agreed include the conclusion of a “white shipping” technical arrangement
to improve data sharing on commercial shipping traffic and Navy-to-Navy discussions on
submarine safety and Anti-submarine warfare.
! They have also put out a joint strategic vision for the Asia-Pacific and Indian Ocean regions,
calling for the freedom of navigation and unimpeded movement of ships through the global
commons or high seas, in an oblique reference to China putting embargos on the movement
of ships and airplanes through the disputed waters of the South China Sea.
Why India must guard its maritime boundary?

The primary maritime security challenges in the South and South-West Indian Ocean (SSWIO)
include piracy at sea, narcotics and small arms/light weapons trafficking and people trafficking.
Increasingly, maritime terrorism is a distinct threat.
It is important to focus on maritime security to ensure that the Sea Lines of Communications
(SLOCs) are kept free for navigation by ships and naval vessels.
For deepening the evolving partnership in the maritime domain,
For India to retain its dominant position in the Indian Ocean region and safeguard its commercial
and strategic interests, it is time that India should turn its strategic vision towards the maritime
region.
India-US recent developments in securing defence ties

U.S.-India Defence Technology and Partnership Act in US Congress which would institutionalize
Defence Technology and Trade Initiative (DTTI) framework between India and US.
Signing of agreements like Logistics Support Agreement (LSA) which will allow use of Indian bases
for logistic purposes and vice versa, and likewise Basic Exchange and Cooperation Agreement
(BECA).
Emergence of US as the largest arms supplier to India
India’s engagement with multiple partners can be discussed as:

Defense Technology and Trade Initiative (DTTI) between US and India
Malabar exercise and plans to buy US-2 amphibian aircrafts from Japan
Collaboration with Australia through Indian Ocean Rim Association for Regional Co-operation (IOR-
ARC) and Indian Ocean Naval Symposium (IONS) to establish Indian Ocean as Zone of Peace
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Why is India engaging in multiple agreements?

Now, India is focusing on multiple partners instead of relying on a single ally due to the fact that it
wants to diversify the nations it shares contacts with for its defence and security.
India hedges by deepening relations with the US and status quo middle powers such as
Australia
The strategic dimensions of the bilateral defence relationship have now moved from its politico-
strategic attributes to taking on economic-strategic ramifications. So, India has shifted its focus
from depending on a single country.
To ensure security of the Indian Ocean region, India needs to have good terms with all stakeholders
in the region. So, India is working with the states in the Indian Ocean region and others to strengthen
security and economic cooperation.
The new focus on the Asia-Pacific highlights the security and economic dimensions. The
US rebalancing of forces and counter-measures by China have created a new cold war. New
partnerships are in the making in the Asia-Pacific; this has shifted the focus to need for multilateral
partners.
India is no longer hesitant about taking a larger responsibility for securing the Indian Ocean,
promoting regional mechanisms and working with great powers like the United States and France
with which India shares many interests. So, India has initiated a new process of multilateralism.
Implications
The US’s rebalancing towards Asia, would mean assigning higher priority and political, economic
and security resources to the Asia-Pacific region because of its dynamism and the increased
assertiveness of a rising China.
It would enable India to enhance its defence capabilities and take proactive steps to build and
install marine infrastructure, provide patrol ships, contribute to capacity building and assist in
patrolling to protect the South and South-West Indian Ocean (SSWIO) region against traditional
and non-traditional maritime threats.
The collaboration with different countries is likely to have additional benefits as well in addition
to the defence security.
Closer relationship with Australia, Japan and America is not only necessary for Defense purpose,
but it can also help ensure continuous energy supply for India,
It will help India overcome New Challenges in the Indian Ocean such as China’s presence in the
Indian Ocean (IO), building military naval bases, China increasing cooperation with strategically
important Sri Lanka (SL), Maldives, Pakistan and China -US rivalry for dominance by not depending
on a particular country.
Additional measures India can take to address the maritime challenges

Build its Naval strength, rapidly modernize its navy, develop civilian maritime infrastructure and
island territories. Undertake maritime operations across littoral states to expand capacity.
Deepen bilateral, trilateral and multilateral military security cooperation with countries in the
Indian Ocean.
Strengthen Naval cooperation with maritime neighbors like Sri Lanka, Maldives. Increase naval
assistance and develop stronger relations with other island countries like Seychelles and
Mauritius.
Expand its Multilateralism through forums like Indian Ocean (IO) Rim Association and Indian
Ocean (IO) Naval Symposium.
INDIA-USA TIES: LEMOA

Recently the defence partnership between US and India took a new shape. With the high level
delegation meetings in August, decade long talks were concluded on Logistics Exchange
Memorandum of Agreement (LEMOA).
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LEMOA was a long-anticipated bilateral deal on military logistics exchange, which was first
mooted in the early 2000s. After 12 years of back and forth, India and the US have agreed on a
logistics exchange memorandum of understanding (LEMOA). This is a watered down version of
the standard logistics cooperation agreement that the US military has with dozens of countries.
Key features of LEMOA agreement are:

LEMOA formalises an ad-hoc arrangement already in practice and furthers India-US military-to-
military cooperation. The agreement provides access to each other’s military facilities for fuelling
and logistic support on a reimbursable basis.
The core of both agreements is a regularization of the ability of naval ships and aircraft of both
countries to dock in each other’s bases for taking on supplies like fuel. Indian and US naval ships
and aircraft have often used each other’s naval and air bases before. Base usage and taking on
supplies will now be much easier for naval ships and aircraft under both flags.
These activities are limited to joint military exercises, training, port calls and humanitarian
missions and other military activities that both sides mutually agree to undertake.
It does not give the US automatic access to Indian military bases or to logistical support, but
simply smoothen existing practices.
The advantage over the current situation is precisely following: Though the US does currently use
Indian military bases and logistics during joint military exercises — this is managed on a case-by-
case basis, which is simply more cumbersome. LEMOA does not necessarily give anything that
the US does not already get, but it makes the process more regularised.
LEMOA helps grease the wheels on the bureaucracy underlying defence collaboration, including
reimbursements for military logistics sharing.
Significance of LEMOA
India will be the main beneficiary. While Indian naval ships and aircraft increasingly venture further
away from their home, India has no bases and in some cases not even agreements with foreign
governments along the Atlantic and Pacific. The US navy and air force, on the other hand, has a
global network which is now accessible to Indian ships and aircrafts.
US warships and aircraft now have additional sites to use in India, but they already have many
bases around the region at their disposal.
Indian arrangements with the US for such access open up new options in beefing up India’s
logistics capacity for missions in the Indian Ocean.
In one of the more concrete benefits, LEMOA strengthens India’s outreach to areas that were not
typically within its reach. With one aircraft carrier in operations, India’s capacity to undertake far
sea operations has been fairly limited. Signing LEMOA opens up opportunities such as gaining
access to US military bases in Djibouti and Diego Garcia.
Criticism
Critics in India have claimed that LEMOA draws India into a nascent alliance with the US. But
this is not true as buying diesel and food supply is hardly the stuff of strategic alignment. Also,
agreement does not create any obligations on either Party to carry out any joint activity.
There is a criticism that this agreement would allow US troops to be based on Indian soil which is
not true. It does not provide for the establishment of any bases or basing arrangements.
Another view is that India has been so sensitive about what amounts to the military equivalent
of buying groceries on credit, which looks absurd when the US is emerging as India’s number one
source of high end arms, its key overseas source for counter-terrorism intelligence and its most
common military exercise partner.
Another misperception about the LEMOA has been that signing it will make India a party to
America’s conflicts and policies, especially in West Asia and East Asia. But this is not true either,
even most countries formally allied with the US have not been dragged into these wars, let alone
those simply signing the LEMOA.
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A New European Union Strategy For India
CONTEXT:
European Union has released its strategy document on India after 14 years.
The 2004 EU-India declaration on building bilateral strategic partnership, which current strategy
document replaces, did not have much of a success in reconfiguring the relationship as was
expected.
ABOUT:
Strategy Document:
The new strategy underscores a transformative shift in Brussels vis-à-vis India and lays out a road
map for strengthening the EU-India partnership.
Key focus areas includes:
Consideration of broader Strategic Partnership Agreement: The EU-India relations are currently
governed by the 1994 EU-India Cooperation Agreement. To be able to match the ambitions set out
in this Joint Communication and tackle the global challenges of today, the EU and India should
consider the negotiation of a broader Strategic Partnership Agreement.
Upgrade the yearly dialogue between the High Representative / Vice President of the EU and the
Indian Minister for External Affairs to a regular Strategic Dialogue.
Intensify dialogue on Afghanistan and Central Asia in the appropriate settings.
Join forces on post-conflict institution building and reconciliation processes in third countries.
Strengthen technical cooperation with India on fighting terrorism and countering radicalisation and
violent extremism and countering terrorist financing.
Exchange expertise on cyber security and hybrid threats.
Conclude working arrangements to foster cooperation between Europol and Indian law enforcement
institutions.
Identify common actions with India both at policy and operational levels to enhance maritime
security. Work with India and other key regional players such as South Africa to help build the
capacity of maritime nations in the Indian Ocean and East Africa.
BACKGROUND:
In 1962, India was the 1st developing country to establish diplomatic relations with European
community.
The EU-India Enhanced Partnership Agreement in 1996 appreciated India’s economic successes
after the liberalization.
EU-India Cooperation Agreement 1994 provides the legal framework for their relations.
India and the EU have been strategic partners since 2004.
The 14th annual summit between India and European Union was held in October, 2017.
Areas of Cooperation:
Natural Partners: There is a new push in Brussels to emerge as a geopolitical actor of some
significance and India is a natural partner in many respects based on principles of democracy,
human rights, tolerance and internal diversity.
Economic cooperation: EU is India’s largest trading partner, accounting for 13.2% of India’s overall
trade. Further the trade in services has almost tripled in last decade. The EU is also the largest
destination for Indian exports.
! Major EU exports to India include engineering goods, gems and jewellery and chemical and
allied products.
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! The primary EU imports include textiles and clothing, chemical and allied products and
engineering goods.
Key source of investment and technologies: The EU is the second largest investor in India.
International scenario of protectionism and authoritarianism:
! They share common responsibilities to secure peace and stability because of the current
uncertainties in the global arena. The EU and India are very stable and predictable partners.
! There is widespread disappointment with the trajectory of China’s evolution and the Trump
administration’s disdain for its Western allies is highly disruptive.
Cooperation on multilateral forum: The EU and India have similar views on multilateralism,
underlining their full support for the United Nations and other multilateral forums, and EU is in
favour of making UNSC more efficient and effective.
Counter Terrorism issues and Global Counter Terrorism Forum: During India-EU annual counter
terrorism and political dialogue, both countries are working on establishing direct links between
Europol and Indian agencies.
International Solar Alliance: The EU plans to join International Solar Alliance (ISA) by the year end.
The EU has already financed the ISA secretariat as well as other programs. EU has invited India to
escort World Food Programme vessels to transport food to Somalia.
International Law: Both EU and India are strong promoters of the respect for international law, in
particular UN Convention on Laws of the Sea (UNCLOS).
Close coordination on regional issues: India coordinated closely with EU during the crisis in
Maldives, while the two sides have intensified discussions on Sri Lanka, Bangladesh and Nepal.
People-to-People Contacts: The India-EU Forum has emerged as an important Track II forum for
discussion between policy analysts on both sides. It is led by the European Union Institute for
Security Studies and the Indian Council of World Affairs and includes participation from academics
and think-tanks.
ICT Cooperation:
! The EU and India aim to link the ‘Digital Single Market’ with the ‘Digital India.’
! A new “Start-up Europe India Network” initiative was launched in 2016.
! Further, an EU-India Cyber Security Dialogue has been set up that focuses on exchange of best
practice on addressing cybercrime and strengthening cyber security and resilience.
City to City Cooperation: There is city-to-city cooperation between European and Indian cities such
as Mumbai, Pune and Chandigarh in a first phase and twelve more cities involved in the current
phase. Now it is being formalized in an India-EU Partnership for Smart and Sustainable urbanization,
which will support the Indian ‘Smart cities’ and ‘AMRUT’ initiatives.
Areas of conflict:
Issues in Broad-based Trade and Investment Agreement (BTIA): India EU relations have been
defined by the collective failure to complete a free trade agreement.
EU’s issues with India

EU demands elimination of India’s duties on goods such as automobiles and wants tax reduction
in wines, spirits and dairy products. These are the areas that will affect Indian farmers and
competitiveness of their product.
It seeking a strong intellectual property regime.
EU is keen on finalization of an India-EU Bilateral Investment Treaty (BIT) before the re-launch of
the FTA talks while India wants to make ‘investment protection’ a part of the negotiations on the
proposed comprehensive FTA.
India’s model BIT and its Investor-State Dispute Settlement Mechanism: It has become a
contentious issue as it allows companies to seek international arbitration only when all domestic
options have been exhausted.
12 www.iasscore.in
EU released its strategy on India after 14 years.
This road map replaces 2004 EU-India Declaration

on building bilateral strategic partnership.
its security policy Need for EU to work closely with India

EU-India clean energy
engagement in the region
and climate partnership
Strategic Climate will contribute to
India can be an Change reducing global
important partner in Partnership
Good Economic resource pressure and
implementing Sense GHG emissions
the EU’s strategy There has been In all probability , India will Will become global
on connecting balanced trade become the most populous growth engine ,
Europe and Asia between India and EU country in near future , and is supporting job
( worth Euro 115 already the fastest growing large creation and
billion in 2017 alone) economy investment objectives
promoting rules based global working for security and stability

order and trading system in overlapping neighbourhoods
Enganging on
Improving sustainable
Promoting effective Reinforcing cooperation
coordination in connectivity both
multilateralism on foreign policy
UN, WTO and G20 at strategic and
operation levels
How to strengthen the
political partnership ?
Military
Promoting gender relations via
equality, women’s Building on Common Developing security and personal
empowerment and Values and Objectives defence cooperation exchanges
human rights and
trainings
Coordination on humanitarian Aiming Fighting terrorism Exchanging expertise on

and disaster relief operations SDG goals and radicalisation maritime and cyber security
www.iasscore.in 13
India’s Issues with EU

India is looking for data secure nation status to be granted by the EU. The country is among the
nations not considered data secure by the EU. It will have a bearing on Indian IT companies wanting
market access.
Non-tariff barriers such as sanitary and phytosanitary measures, and technical barriers to trade are
also a major concern. The EU has been imposing stringent labeling requirements and trademark
norms, which have dented India’s exports.
Trade in services: India demands strong binding promises by the EU on liberalising trade in service
particularly Mode-4 services.
Two-way trade between India and the EU dipped to 88.4 billion in 2015−16 from 88.4 billion in
2015−16 from 98.5 billion in the previous fiscal.
Other areas of conflict:

Indian government finds difficult to understand the bureaucratic structure of Brussels (EU) to
navigate and in the process the EU was ignored as a collective.
Individual nations of the EU started becoming more pragmatic in their engagement with India,
but Brussels continued to be big-brotherly in its attitude on political issues and ignorant of the
geostrategic imperatives of Indian foreign and security policies.
The result is a limited partnership which largely remained confined to economics and trade.
Even as the EU emerged as India’s largest trading partner and biggest foreign investor, the
relationship remained devoid of any strategic content.
China–EU relations: Despite the two not having any ideological affinity, the EU-China relations
carried greater traction.
Way forward:
In the past EU-India relations have been blocked by specific bilateral issues like the FTA or the Italian
Marines issue, but foreign policy and security issues played an important role in the 14th annual
Summit, with far-reaching statements on naval exercises, space cooperation etc which two years
ago would have seemed impossible.
The new India strategy document unveiled by the EU comes at an appropriate time when both have
to seriously recalibrate their partnership. India needs resources and expertise from the EU for its
various priority areas, such as cybersecurity, urbanisation, environmental regeneration, and skill
development.
Germany
INTRODUCTION
India and Germany have been strategic partners since 2000. But at the core of the relationship
is a strong economic partnership. Many of the things that make up Modi’s vision of India — Skill
development, Digital India, Make in India and giving an impetuous to small and medium-sized
business — encompass what Germany can provide. In fact India’s needs and Germany’s expertise
are a perfect fit. So India hopes to further strengthen and expand this relationship.
Germany is India’s largest trading partner within the EU. It is also one of the leading foreign direct
investors in the country, with as many as 1,600 German companies operating in India. Six hundred
joint ventures are already in place.
Recently, Indian PM Modi visited Germany and during the visit Terrorism was the big part of
conversation between two nations as terror strikes have become a global phenomena. The latest
attack in Manchester is just one of the many deadly strikes across Europe. The Prime Minister
discussed about the terror emanating from Pakistan as well as his take on what is happening in
14 www.iasscore.in
Afghanistan. Both leaders exchanged views on how best the international community can work
together against this common issue.
Why strong India-Germany bilateral ties are important for our country?
As the two countries discuss various issues, it is worth looking at how India’s bilateral ties with
Germany — India’s largest trading partner within the European Union — have evolved over the
years.
Historically: As far as the history of India-Germany ties are concerned, India was one of the first
countries to diplomatically acknowledge and accept the Federal Republic of Germany after the
Second World War in 1945. It was in 1951 that the two countries decided to establish an economic
relationship.
Economic Relations:
! A strong economic partnership with Germany means that the country can provide for many
schemes and programmes devised by Modi like Digital India, Make in India and Skill India.
! The German embassy in Berlin had launched the Make in India Mittelstand (MIIM) Programme
in September 2015 to facilitate the German Mittelstand (SMEs) to do business in India.
! Currently, 73 German Mittelstand (SMEs) companies are being facilitated through MIIM
Programme for their market entry and investment in India. Out of these, 46 companies have
progressed well in India investment plan.
! Germany is currently also one of the leading foreign direct investors in India, with around 1,800
German companies operating in India. As per data with Department of Industrial Policy and
Promotion, Germany is the seventh biggest FDI source for India.
! From April 2000 to March 2017, various German companies have invested about $9.7 billion in
India, which is about 3 percent of total FDI flows the country has witnessed. Indian corporate
entities have also invested over $7 billion in Germany.
! 600 joint ventures are also in place.
Exports: Textiles, metal and metal products, electro-technology, leather and leather goods, food
and beverages, machinery, pharmaceuticals, auto components, chemicals, gems and jewellery,
and rubber products are the main exports to Germany.
Imports: The key items imported from there are machinery, electro-technology, metal and metal
products, chemicals, auto components, measurement and control equipment, plastics, medical
technology, pharmaceuticals, paper and printing materials.
Strategic Partners: India and Germany have been strategic partners since 2000. The website of
the Indian Embassy in Berlin explains that the Intergovernmental Consultations (IGCs) between
India and Germany is meant for a review of cooperation and provides a platform for fresh ideas.
India is one of the few countries with whom Germany has such a dialogue mechanism.
The third IGC before the current one was held in New Delhi on 5 October, 2015. German Chancellor
Angela Merkel has also visited India in 2007, 2011 and again in 2015 for the third IGC. On the
other hand, Modi visited Germany in April 2015 whereas External Affairs Minister Sushma Swaraj
visited Germany in August 2015.
UN Security Council: India and Germany also cooperate closely on the issue of the expansion of
the United Nations Security Council (UNSC) within the framework of G-4 with Japan and Brazil.
Both countries seek to become permanent members of the UNSC.
Defence Cooperation: The India-Germany Defence Cooperation Agreement, established in 2006,
provides a framework for defence cooperation. The High Defence Committee meetings at the
Defence Secretary level take place annually and atlernately in New Delhi and Berlin.
Science and Technology: Moreover, there are currently over 150 joint science and technology
research projects and 70 direct partnerships between universities of both countries.
Geopolitics: In the context of China’s One Belt One Road initiative, Modi and Merkel are converging
on working together in Africa, focusing on renewable energy, connectivity, vocational training, and
have called on businesses to collaborate on promoting trade and development.
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Climate change is an important focus area. India has made it clear that it is committed to the Paris
Agreement. The two countries remain committed to work with Afghanistan to tackle terrorism,
thus containing Pakistan.
Current Challenges
Over the last six years, the total trade between the two nations has been on a decline. From a high
$23.5 billion in 2011-12, the total trade has come down to $18.73 billion in 2016-17. India has a
trade deficit with Germany. As trade is on a decline, the deficit too has declined from $7.6 billion to
$4.2 billion over the last six years.
The strategic partnership between India and Germany is also limited because Germany does not
have a lot of geopolitical influence in South Asian affairs.
During the current visit, India stressed on the need for counter-terrorism efforts in Europe as the
terrorism is the “gravest challenge facing humanity”.
Free Trade Agreement: With fears of countries leaving the EU after Britain now having receded, a free
trade agreement with Europe will be now being looked at with fresh enthusiasm. So far, 16 rounds
of negotiations have been completed and both India and the EU are keen to get this agreement
signed and sealed. No dates are yet on the horizon as yet, because the EU must now go through the
arduous process of untangling Britain from the bloc. It will take more time to materialize.
What are the outcomes of the recent visit?

India and Germany discussed on a host of key issues like trade, skill development and climate
change
MOUs: The two sides also signed 12 MOUs/agreements in fields like
! Cyber policy,
! Development initiatives,
! Sustainable urban development,
! Continued development of cluster managers and skill development,
! Digitalisation,
! Railway security, and
! Promoting Vocational training.
Intergovernmental Consultations: The two sides also issued a joint statement after Modi and
Merkel held the fourth India-Germany Intergovernmental Consultations (IGC).
The two leaders underlined their common concern about the threat and global reach of terrorism
and extremism while condemning terrorist violence in all its forms and manifestations.
Both the nations agreed on the need to take strong measures against all those who encourage,
support and finance terrorism, provide sanctuary and safe havens that sustain and support terrorist
groups and organisations.
India and Germany pledged to “chart out a future roadmap of cooperation with focus on trade and
investment, security and counter-terrorism, innovation and science and technology, skill development,
urban infrastructure, railways and civil aviation, clean energy, development cooperation, health and
alternative medicine.
CONCLUSION
This Modi-Merkel meeting was about continuing with the partnership, and putting it on firmer
ground. Both countries will work together on issues such as UN reforms, expansion of the UN
Security Council, India’s inclusion in export control regimes such as the Nuclear Suppliers Group,
tackling terrorism, and the adoption of the Comprehensive Convention on International Terrorism.
In the future, India and Germany has the opportunity to deepen this partnership when they meet
for the G-20 summit in July in Hamburg. It will be another chance to demonstrate why India and
Germany are good for each other.
16 www.iasscore.in
Japan
Present Highlights of India and Japan Relation
Common Problem. Both have complex territorial disputes with China.
Global Partnership with a Strategic Orientation
Comprehensive Economic Partnership Agreement (CEPA) between India and Japan being
implemented from August 2011
India the highest recipient of Official Development Assistance (ODA) from Japan.
! Rs.10500 crore to fund six infrastructure projects in India.
! Includes various phases of Metro rail projects in Delhi, Chennai & Kolkata.
! ODA from Japan crossed 1.55-lakh crores
Signed a Civil Nuclear Cooperation Agreement “In Principle”
India Holds Annual Summit Meetings with only Japan & Russia.
Flashpoints of India-Japan Annual Summit (December 11-13, 2015)

The bullet train project between Mumbai and Ahmedabad
Japan’s investment plans to cover schemes like “Make in India” and Swachh Bharat
Nuclear cooperation
Defence cooperation – Transfer of Technology
Japan’s support to India’s presence in the Asia-Pacific region
A Partner City agreement was signed between Varanasi and Kyoto
Civil Nuclear Agreement

Concluded a civil nuclear cooperation agreement “in principle”
Signed MoU for peaceful uses of nuclear energy
The civil nuclear agreement would go through legal and technical procedures before it is opened up
to scrutiny by the Japanese Parliament.
It would be signed after the technical details were finalised
India and Japan Signed 15 Other Agreements

Transfer of defence equipment and technology cooperation
Mumbai-Ahmedabad Bullet Train project.
‘Visa on arrival’ to all Japanese nationals from March 01, 2016.
Opportunity to 10,000 Indian youth under the student exchange programme.
The Chennai-Bengaluru Industrial Corridor project
Agreements on railways, tax, science, health & education also signed.
Fostering bonds between India’s States and Japan’s Provinces.
Japan’s Financial Assistance to India

Mumbai-Ahmedabad bullet train project at a cost of $12 billion (Rs.98,000 crore)
Interest rate of less than 1 per cent.
“Make In India” - Japan created a $12 billion fund for mfr in India
Japan pledged another $5 billion as part of its ODA.
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Defence Agreements
TFR of defence equipment and technology.
Security measures for protection of classified military information.
India announced that Japan would now participate regularly in Indo-US Malabar bilateral maritime
exercise, turning it into a trilateral initiative.
Joint Statement – ‘India and Japan Vision 2025. Special Strategic and Global Partnership Working
Together for Peace and Prosperity of the Indo-Pacific Region and the World
Strengthen the foundations of deep strategic ties.
Two-way collaboration and technology cooperation, co-development and co-production.
Explore potential future projs on defence equipment & technical cooperation as US-2.
Military and Strategic Agreements

Decisive steps in the security cooperation between India and Japan.
Deepen the defence relations and promote defence manufacturing in India.
Make Japan a partner in the Malabar Naval Exercises
India’s flagship “Make in India” initiative would benefit from the defence co-production plans
Japan would take up production of US-2 amphibious aircraft.
Japan will work with India and the US for peace, security, freedom of navigation, in the SCS and
the important energy lanes of Indo-Pacific region.
Deepening the Economic Ties

For the first time Japan would import Maruti cars manufactured in India.
Historic decision to introduce the high-speed rail in Mumbai-Ahmedabad sector through
Shinkansen
It is known for its speed, reliability and safety.
Elevating Bilateral Relations into “Spl Strategic & Global Partnership

Significant for Asia in the perspective of balance of powers in the region
Japan moves towards ‘Collective Self-Defence’ ending 69 years of Pacifist Defence Policy
China becoming increasingly assertive in the Indo-Pacific region, the Sino-Japanese rivalry has
increased.
Security cooperation in the Indo-Pacific region is driven by the shared concern about China’s
increasing assertiveness in the region.
CONCLUSION
Natural Ally
No Conflict of Strategic Interest
Long-term strategic interests of India and Japan coincide.
Share Common Goals of Building Stability, Power Equilibrium and Multilateral Cooperation in Asia
Economic Ties Mutually Beneficial

Japan has aided infrastructure projects in India with many in pipeline.
Indian markets could stimulate Japan’s economy
Japan could meet India’s growing needs for capital and technologies
18 www.iasscore.in
UN Reforms
Need to work together as both are Aspiring for Permanent Security Council Seats
They need to convince China about the positive impact on Asian peace and stability due to the
presence of three Permanent members in the UNSC.
Growth in bilateral relations:

Ties between India and Japan have been building up across all fields, particularly defence and
security. This assumes significance in face of Chinese claims in South China Sea and Arunachal
Pradesh along with threats from Pakistan and North Korea in the region.
For India, it is imperative to strengthen the bonds of friendship with Japan since the success of
India’s “Act-East Policy” largely depends on Japanese participation.
Japan also happens to be one of the biggest investors in India and Tokyo’s financial and
technological backing holds the key to building infrastructure in India’s northeast. Traditionally,
Japan has been the major economic development partner for most South Asian countries, but
Beijing’s expanding influence beyond the South China Sea and across the Indian Ocean region
has left Tokyo feeling vulnerable.
The transactional approach of the current USA administration may be seen as an important
factor contributing to growing rapport between India and Japan. With an aim to cut a deal with
Pyongyang, Washington has been opening up to North Korean regime in recent months. However,
this is unlikely to please Japan, which has long-standing concerns about the reckless behaviour
of the North Korean dictator.
Given the traditionally sound ties between the two countries coupled with growing strategic
convergence between them, Japan finds it useful to elevate India’s position in Japan’s Indo-Pacific
strategy.
There is a growing realisation of the significance of the Indo-Pacific region in fast-changing
geopolitical landscape of Asia, which has challenged the existing security architecture. The US,
Japan and Australia are faced with Chinese assertiveness in the Western Pacific. And in the Indian
Ocean, India and the US are faced with an increasing Chinese presence.
Japan seeks to bolster cooperation with many Asian and African countries based on its ‘Free
and Open Indo-Pacific Strategy’ aimed at keeping in check the growing maritime assertiveness
of China.
Shinzo Abe argued in his 2007 speech in Indian Parliament that if India and Japan came together,
the “broader Asia will evolve into an immense network spanning the entirety of the Pacific Ocean,
incorporating the United States of America and Australia. Open and transparent, this network will
allow people, goods, capital, and knowledge to flow freely.”
It is therefore not surprising that upholding principles such as freedom of navigation and
countering threats to Japanese shipping remains fundamental to Japanese foreign policy.
Without any doubt, China is the elephant in the room when it comes to defining close partnership
between India and Japan. China’s growing military strength and rising economic power have
prompted other democracies, including India and Japan, to sit up and take notice. Amid growing
concerns about China’s Belt and Road Initiative (BRI), New Delhi and Tokyo have stepped up
their cooperation for creating a viable alternative for infrastructure development and connectivity
among countries.
Since bilateral cooperation between India and Japan is closely intertwined with trilateral
cooperation with the US, it is but natural for Japan to expect India to play an increasingly active
role in the Quadrilateral Security Initiative (referred to as the Quad) while affirming the importance
of freedom of navigation and rule of law.
But India remains hesitant on the Quad, which is likely to cause confusion among other three
partners – the US, Japan and Australia. It was this confusion which prevented India from allowing
Australia to become a part of the Malabar naval exercises.
So far, India has also decided to stay away from a joint initiative launched by the US, Japan and
Australia to fund infrastructure projects to counterbalance the BRI in the Indo-Pacific region.
India’s participation in this important infrastructure initiative would have reassured the other
members of India’s commitment to the grouping.
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PM Modi’s visit to Japan
Key Outcomes
A $75 billion currency Investment commitment of 320
swap agreement billion yen by Japanese companies
(Will allow central banks of
both countries to ⬉ ⬈
exchange local currencies.)
Initiation of a new ‘2+2

Beginning of negotiations
dialogue’ comprising
on ACSA (Acquisition and
of foreign and defence
⬋ ⬊ Cross Servicing Agreement)
ministerial dialogue
(Like LEMOA
(similar to the one held
between India-USA)
between India-USA recently)
India- Japan Relations : Convergence

Economic Soft loans/investment in numerous
infrastructure projects
need and opportunity (e.g. Delhi-Mumbai Industrial Corridor, Bullet
trains , Infra projects in NE India, etc)
Both countries are in world’s top 10
economies → huge opportunity for economic Signing of CEPA to enhance bilateral trade
convergence. Major milestones so far : (Comprehensive Economic Partnership Agreement)
Signing of civilian nuclear agreement

(despite India being a NPT non-signatory)
Signing of defence Defence and strategic

cooperation agreement (2006)
need and opportunity
Geopolitically, both have interests in the indo -

Military exercises are in upswing
pacific region and can play big roles in
[Dharma Guardian , JIMEX and
Malabar (with USA) exercises in 2018]
securing the region . Progress so far :
Various recent measures like negotiations (esp. in light of a belligerent China)

on ACSA, US-2i amphibian aircraft, etc
Japan has a greying population

seeking business opportunities Enhancing India needs technology and
and depends on sea lanes for cooperation for a investments for its growth → Japan
its resource needs → India can win-win situation can play a huge role here
play a huge role here
Way Ahead
Quadrilateral Asia - Africa

Grouping Growth Corridor
(India-Japan-USA-Australia): This is proposed as a strategic This is proposed as a counter
group to secure the Indo-Pacific region. Enhancing this to China’s BRI by the
grouping will uphold freedom of navigation and rule of law. quadrilateral grouping.
Bottomline
India’s ‘Act East’ outreach fits well with Japan’s vision for a ‘free and open Indo-Pacific’ , both economically
and geopolitically. This natural convergence needs to be backed up with appropriate diplomatic measures.
20 www.iasscore.in
13th Annual India - Japan Summit
The prominent outcomes of the summit are:
! Currency Swap Agreement: A 75 billion Currency Swap Agreement which will allow the central
banks of both the countries to exchange local currencies. In contrast, Japan has such an
agreement in place with China as well, but only for 75 billion Currency Swap Agreement which
will allow the central banks of both the countries to exchange local currencies. In contrast,
Japan has such an agreement in place with China as well, but only for 30 billion.
! 2+2 dialogue: Initiation of a new Foreign and Defence Ministerial Dialogue, termed ‘2+2’,
was announced to further strengthen the bilateral dialogue mechanism between the two
countries.
! Acquisition and Cross-servicing Agreement: Beginning of negotiations on an Acquisition
and Cross-servicing Agreement, (on the lines of LEMOA between India and USA). This will
be a logistics-sharing pact, which will allow both countries to share defence capabilities and
supplies including fuel and ammunition.
! Investment commitment: of 320 billion yen by Japanese companies in India.
Practice Question:
Q 1. “Trade and investment have dominated India-Japan relations and now defence and security need
to catch up in the emerging geopolitics in the Indo-Pacific region”. Critically examine.
Appendix: Asia-Africa Growth Corridor (AAGC)

In May 2017, at the 52nd annual meeting of African development bank held in Gandhinagar, India and
Japan unveiled a vision document for the development of Asia Africa Growth Corridor.
ORIGIN OF AAGC:
This Asia Africa Growth Corridor was first proposed by India and Japan in November 2016.
DETAILS OF THE PLAN:

Objective: It has two broad objectives:
Developing Sea Corridors
To create a “free and open Indo-Pacific region” by rediscovering ancient sea-routes and
creating/ new sea corridors that will link the African continent with India and countries in
South-Asia and South-East Asia.
For instance, under the AAGC, there is a plan to connect ports in Jamnagar (Gujarat) with
Djibouti in the Gulf of Eden and Mombasa with Zanzibar will be connected to ports near
Madurai
India is developing ports under the Sagarmala programme specifically for this purpose.
Build infrastructure
Apart from developing sea corridors, robust institutional, industrial and transport infrastructure
will be developed in growth poles among countries in Asia and Africa.
This will integrate the two regions and will enable emergence of Asia and Africa as a globally
competitive economic bloc.
Four key pillars: The vision document proposes four key pillars that leverage the strengths
of India and Japan:
Enhancing capacity and skills;
Building quality infrastructure and connecting institutions;
Development and cooperation projects in health, farming, manufacturing and disaster
management; and
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! People-to-people partnerships.
Five focal points: The AAGC consists of five remarkable focal points:
! Effective mobilisation of financial resources;
! Their alignment with socio-economic development and development strategies of partner
countries and regions;
! Application of high-quality standards in terms of compliance with international standards
established to mitigate environmental and social impact;
! Provision of quality of infrastructure taking into account aspects of economic efficiency and
durability, inclusiveness, safety and disaster-resilience, sustainability as well as convenience
and amenities; and
! Contribution to the local society and economy.
What are the proposed plans under this project?
! More details are likely to be firmed up by September, 2017 when Japan’s PM Shinzo Abe will
visit India.
How will India and Japan contribute to the project?
! Japan will build quality infrastructure, while India will bring in its expertise of working in Africa.
How will it be a Win-Win Situation for India, Japan and Africa?

Synergy between act east policy and Expanded Partnership for Quality Infrastructure: As the Indo-
Pacific region will be “the key driver for prosperity of the world”, the two leaders have decided “to
seek synergy” between India’s “Act East Policy” and Japan’s ”Expanded Partnership for Quality
Infrastructure”. Thus launching of AAGC is a right step in this direction.
This will turn the 21st century into an Asian-African century, and not just an Asian century.
Participate in Africa’s growth story: It is a key step in participating in growth story of some African
nations.
Increasing footprint in Africa: Another objective is to curtail the Chinese presence on the continent
by increasing their investment in Africa. In 2015-16, the country invested a whopping USD 38.4
billion (24 per cent of total green-field investment). In comparison, India invested just USD 2.2
billion (1.3 percent of total green-field investments). Japan investments at present are minuscule.
To counter china’s OBOR: The vision document was unveiled days after China’s ambitious One Belt,
One Road (OBOR) initiative took off. Thus experts are seeing it as a step to counter china’s OBOR
initiative. India has great trade and network experience in Africa, and Japan has very advanced
technology. This combination will give China tough competition for market share.
Benefits for Africa: It will also contribute towards achieving the “High priorities” which according
to African Development Bank are crucial for accelerating Africa’s economic transformation. These
high 5 priorities are (i) Light up and power Africa, (ii) Feed Africa (food security), (iii) Industrialize
Africa, (iv) Integrate Africa (transportation), and (v) Improve the quality of life for the people of
Africa (skill development, health and sustainable development).
How it is Different from China’s One Belt One Road (OBOR) Project?
Land vs water: OBOR mainly entails development of a land corridor, whereas AAGC entails
development of a sea corridor.
Coverage: Europe is not a part of AAGC, but in OBOR, Europe is a major focus area.
Cheaper and less carbon footprint: The project stakeholders believe that the sea corridors will be
“low-cost” and have “less carbon footprint” when compared to a land corridor.
More open: As compared to OBOR, AAGC is more open. It will be based on more consultations as
opposed to government funded OBOR (OBOR was presented with least consultations).
More inclusive: As compared to OBOR, AAGC is more inclusive. It will keep people as the centre
piece rather than just trade and economic ties.
22 www.iasscore.in
Way Ahead?
India and Japan should realise that they do not have the luxury of time in view of China’s rapidly
expanding footprint in Africa.
An urgent need exists for them to increase the scope of their development projects, create synergy
among themselves, engage proactively with other willing partners, and thus turn the concept of the
AAGC into a viable reality.
In this direction, India and Japan should initiate a few joint pilot projects along with Kenya, Ethiopia
and Mozambique in identified areas such as health care, agriculture and blue economy.
France
In the post-Cold War period, France was the first country with which India established a ‘strategic
partnership’. The only major Western power that described the U.S. as a hyper power and openly
espoused the virtues of multi-polarity found a natural ideological convergence with India’s ambitions
of seeking strategic autonomy.
After the nuclear tests in May 1998, when India declared itself a nuclear state, France was the first
major power to open talks with the country. Within weeks, the Special Envoy of Prime Minister Atal
Bihari Vajpayee, Brajesh Mishra, was received in Paris by President Jacques Chirac, who not only gave
him a patient hearing but also appreciated India’s political and security compulsions.
While the India-U.S. nuclear dialogue between India’s then External Affairs Minister Jaswant Singh and
U.S. Deputy Secretary of State Strobe Talbott attracted greater media attention, the strategic dialogue
between Mr. Mishra and his French interlocutor Ambassador Gérard Errera made significant progress
behind the scenes. One reason was that the French never talked of “cap, rollback and eliminate” as
the U.S. non-proliferation lobby did, but focussed instead on developing an understanding of Indian
thinking about the region.
Key Takeaway from Prime Minister’s Recent Visit to France

Purchase of 36 Rafale fighter aircraft as quickly as possible: In a significant development, India
signed a deal to buy 36 Rafale fighter aircraft as quickly as possible. The aircraft are manufactured
by the French company Dassault Aviation. The decision to buy the aircraft bypasses the plan under
which the Indian Air Force was to buy 126 Rafale fighters, “of which 108 would be produced at a
state-run Hindustan Aeronautics Limited (HAL) plant in Bengaluru as part of India’s efforts to build
a domestic military industrial base”.
Some headway on Jaitapur atomic power plant: The other significant takeaway relates to civilian
nuclear energy. India and France signed a deal for the Jaitapur nuclear plant, located in the Konkan
region (Ratnagiri district) of Maharashtra. The deal is significant. France’s state-owned nuclear
company, Areva, also signed a deal with Larsen and Toubro Ltd to “maximize the localization for
the Jaitapur project”.
Increased French investment: French President Francois Hollande, in his joint statement with
Modi, announced that France would invest €2 billion in India and develop three smart cities in
the country. It was agreed to include Smart City cooperation as an area of technical cooperation
under the October 2012 MoU (memorandum of understanding) on Cooperation in the Field of
Sustainable Urban development between France and India.
Indian Railways and France’s French National Railways signed a railway protocol, under which the
two countries will work closely in the upgradation of the semi high-speed Delhi-Chandigarh line to
200 kmph, and the redevelopment of Ambala and Ludhiana railway stations.
About Rafale deal

Background to deal
! The Medium Multi-Role Combat Aircraft (MMRCA) competition, also known as the MRCA tender,
was a competition to supply 126 multi-role combat aircraft to the Indian Air Force (IAF).
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! In 2012, Rafale was chosen as the Medium Multi-Role Combat Aircraft (MMRCA) for the Indian
Air Force (IAF) after a stringent technical evaluation and global tender process which has lasted
a decade.
! That tender proposed the following
! Purchase of 18 Rafale aircraft in “fly-away” condition, and
! Rest 108 to be manufactured in India under transfer of technology by state-owned Hindustan
Aeronautics Limited (HAL).
Subsequent technicalities of the tender currently being negotiated by the Ministry of Defence with
Dassault, Rafale’s manufacturer.
Subsequently, the deal has been mired in controversies. It has been alleged that Dassault Aviation
has
! Refused to transfer technology,
! Increased the price in violation of the original tender, and
! Refused to take charge of timely deliveries for the aircraft produced in India.
Deal clinched at Modi’s visit to France
About the deal –
! Under a separate/new deal, India asked France to supply 36 Rafale fighter jets instead of 18 in
“fly-away” condition
! This is under a government-to-government deal, unlike the tender currently being negotiated by
the Ministry of Defence with Dassault, Rafale’s manufacturer.
! When will be delivered – not clearly mentioned, just mentioned that “as quickly as possible” so
as to meet IAF’s requirement. Being a G2G deal they will be delieved on time.
! The announcement, however, doesn’t talk about making Rafale in Hindustan Aeronautics Ltd
(HAL), a core proposition of the original tender.
Summary Comparison – then & how
Then Now
How many Buying 18 aircraft from Dassault in Number of aircraft to be
fly-away condition while the rest 108 purchased in fly-away condition
were to be manufactured in India has increased to 36.
under transfer of technology by
state-owned Hindustan Aeronautics
Limited (HAL)
Between Govt (ministry of defence) was It is a G-to-G deal.

whom negotiating with Dassault
Cost Not desclosed It is lower then the earlier one
Critical comment – Positives:

IAF, which has been in desperate need of fighter jets. From stipulated strength of 42, the IAF is now
down to 34 operational squadrons (as of April 2015)
This is way of rapidly alleviating the IAF’s most immediate concerns, while leaving room for future
negotiations. i.e. a middle path
As it is a government-to-government deal, India should be able to get these aircraft cheaper. The
negotiations over price are still on but experts estimate at least a 10% lower price for these 36
aircraft.
24 www.iasscore.in
Negatives:
Against make in India
! The announcement, however, doesn’t talk about making Rafale in Hindustan Aeronautics Ltd
(HAL), a core proposition of the original tender. This multi-billion dollar procurement thus runs
contrary to Prime Minister Narendra Modi’s Make in India plan for the defence sector.
! Window for Make in India I existing deal – In this current 36 aircraft deal, there is still an
opportunity to promote defence manufacturing, particularly in the private sector. Under the
provisions of the Defence Procurement Procedure (2013 revised), the maintenance transfer
of technology contract for these 36 Rafale fighters must be given to a private-sector vendor
instead of the public-sector HAL.
! Window for make in India future deal – Also the deal has only decided about the 26 out of 126.
So there is still room open for negotiations the other 90 MMRCA. For that it should make make
in India a precondition.
Procurement –
! It sets a precedent for future defence procurements.
! The government should be careful to not go down that road. It should, instead, identify the
reasons for India’s long-winded defence procurement process, where foreign suppliers either
end up getting blacklisted or get entangled in protracted negotiations. Defence Minister
Manohar Parrikar has already promised a streamlining of the defence procurement process in
line with the Make in India programme. The earlier he does it, the better.
What about the original tender – has ended

Couple of days later, defense minister said that all future deals for Rafale fighters would also be
through government to government route, indicating that the USD 20 billion MMRCA tender has
virtually been scrapped.
Noting that MMRCA negotiation had entered into a “loop” or a “vortex” with no solution in sight,
Defence Minister Manohar Parrikar said direct negotiations with France will now decide how
much more Rafale has to be bought and if it will be under ‘Make in India’ programme.
The minister refrained from giving a direct reply to questions whether requirement of Air Force for
more MMRCA will be through Rafale or if any other player can come into action.
There are serious differences over almost every major aspect of the deal such as:
! French side’s concerns about what role a major Indian private conglomerate would play in the
deal.
! Debate over offset clause – While the MMRCA (Medium Multi-Role Combat Aircraft) deal —
the precursor to the present Rafale deal — had 50 % offset, and most of its fighters were to be
assembled in India, the deal under negotiation is for off-the-shelf purchase of 36 fighters from
France.
! Final price of the fighter.
Russia
INDIA – RUSSIA RELATIONSHIP BACKGROUNDER
A cordial relationship with India that began in the 1950s represented the most successful of the
Soviet attempts to foster closer relations with Third World countries.
The relationship began with a visit by Indian Prime Minister Jawaharlal Nehru to the Soviet Union in
June 1955 and Khrushchev’s return trip to India in the fall of 1955. While in India, Khrushchev
announced that the Soviet Union supported Indian sovereignty over the disputed territory of
the Kashmir region and over Portuguese coastal enclaves such as Goa.
The Soviet Union declared its neutrality during the 1959 border dispute and the Sino-Indian war of
October 1962, although the Chinese strongly objected.
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Indo-Soviet Treaty of Friendship and Cooperation signed in August 1971, became the milestone in
relation.
However, with the fall of USSR, the Indo-Russia relation saw a sea change. India inclined towards
West.
Traditionally, the Indo-Russian strategic partnership has been built on five major
components: politics, defence, civil nuclear energy, anti-terrorism co-operation and space. However,
in recent years a sixth component, economic, has grown in importance with both countries setting
a target for US$30 billion in bilateral trade by 2025.
Growing distance between Delhi and Moscow

Bilateral trade is not gaining traction between the two countries. There is an urgent need to prioritize
economic ties, which have been going downhill for some time. Though the two nations have set a
target for their bilateral trade of $30 billion by 2025, it was a measly $7.8 billion in 2015.
Russia’s growing tilt towards Pakistan
! There is concern in New Delhi that Moscow’s decision to side with China would help Pakistan
get away from global isolation.
! At the 2016 BRICS summit in Goa, Russia did not back India’s demand to name two Pakistan-
based terror groups as perpetrators of terrorism against India, thereby shielding Pakistan from
censure.
! On Afghanistan issue, Russia wants to give greater role to Pakistan and China, unlike India.
! Pakistan is becoming potential buyer of Russian arms, which would provide elixir to the dying
economy of the latter.
! Moscow and Islamabad held their first joint military exercise in September 2016 and their first
bilateral consultation on regional issues in December.
! Russia lifted an arms embargo against Pakistan in 2014 and will send four Mi-35M attack
helicopters this year. Russian troops participated in this year’s Pakistan Day military parade.
! China-Pakistan Economic Corridor linking Xinjiang to the Pakistani port of Gwadar could be
merged with the Russia-backed Eurasian Economic Union.
St. Petersburg’s declaration

Sanskriti se Suraksha
! PM Modi said the ties between India and Russia span the spectrum from Culture to Defence
(Sanskriti se Suraksha).
! It covers all areas of cooperation, including in the spheres of political relations, security,
trade and economy, military and technical field, energy, scientific, cultural and humanitarian
exchanges, and foreign policy.
Energy bridges
! Energy cooperation is one of the cornerstones of the relationship between India and Russia.
! Both sides strive to build an “Energy Bridge” by having energy cooperation in all areas including
nuclear, hydrocarbon, hydal and renewable energy sources.
! Nuclear power: The growing partnership in the nuclear power sector provides an opportunity
for developing advanced nuclear manufacturing capabilities in India in line with the “Make in
India” initiative. Both sides have committed themselves to implement the “Program of Action
for Localization in India” which was signed in 2015.
! Exploration of Arctic shelf: India is interested in launching joint projects on exploring
Hydrocarbons in the Arctic shelf of the Russian Federation.
Economic ties
! Diversification (High Technology Products): The two sides should diversify their trade in goods
and services with special focus on high technology products.
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! Investment target: India and Russia are close to achieving the target of 30 billion US dollars
worth of investment by 2025.
! Joint projects in other countries: The two sides have decided to undertake joint development
projects in other countries.
! Eurasian Economic Union: The two sides will commence discussions on a Free Trade Agreement
between the Eurasian Economic Union and the Republic of India.
! Startups: PM Modi mentioned the “bridge to innovation” to promote startups and
entrepreneurship
Strategic ties
! Joint exercises: The two countries will hold the first tri-Services exercises, named ‘Indra-2017,’
in 2017.
! Defence production: The two sides have decided to jointly produce Kamov 226 helicopters and
frigates.
Cooperation on International issues
! Asia Pacific region: To build well-balanced security architecture in the Asia-Pacific region,
the two sides have decided to develop a relevant dialogue in the framework of the “East Asia
Summit”.
! Afghanistan: The two sides have decided to coordinate for achieving national reconciliation in
Afghanistan.
! UN: Russia reiterated its support for India’s candidature for a permanent seat in a reformed
United Nations Security Council.
! Cooperation in other forums: To establish a multi-polar global order and have a influential role
in global affairs, the two sides will continue to cooperate in other multilateral organizations
including Shanghai Cooperation Organization, BRICS, Russia-India-China cooperation, WTO and
G20.
! Export control regimes: Russia reiterated its support for India’s earliest admission to the export
control regimes namely Nuclear Suppliers Group and the Wassenaar Arrangement.
! Connectivity: The two countries are cooperating in the International North South Transport
Corridor.
! Terrorism: The two sides asserted their willingness to fight international terrorism.
Cultural ties (soft power)
! There exists deep awareness of Yoga and Ayurveda in Russia.
! We should further develop bilateral contacts in the sphere of culture and sports by organizing
annual festivals and exchanges.
! Bilateral cooperation in the sphere of education offers great opportunities which should be
explored by promoting direct contacts among universities and providing assistance to students
from the two countries.
Exploring new avenues of cooperation
! Transportation
India should utilize the strength of Russia in shipbuilding, river navigation and desalination
technologies to develop it’s inland waterways.
The two sides have also decided to cooperate in development of high speed railways. For
this they have signed an agreement for implementation of the high-speed service at the
Nagpur-Secunderabad section.
Science and technology:
! Bilateral cooperation in the sphere of Science & Technology offers great opportunities, since both
sides are committed to address global challenges like Climate change and Cyber security.
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! Cyber security: India has much to learn from the Russian experience of cyber security. Russia,
home to leading cybersecurity companies like Kaspersky, has also built considerable state
capabilities towards establishing an effective and robust cyber force.
! Space: There are ample opportunities for bilateral cooperation in space research.
! High-technology products: Special emphasis should be on increasing the share of high-
technology products in bilateral trade. The two countries have already established a High Level
Committee on Cooperation in High Technologies.
CONCLUSION
It is a trying time in the relation between India and Russia. Both the countries are going through
rough patches in old romance they have had in the past.
It is high time for India to redefine its relation with Russia in its greater interest.
Energy co-operation and defence deal can be the game changer.
Changing geo-political scenario in the world over will have the final say in this bilateral relation.
APPENDIX-I: Decline in Indo-Russia Relations

Period of upswing:
As strategic relations go, few countries can match the enduring partnership that India and Russia
have shared since the 1960s. For close to half a century Russia has been New Delhi’s foremost
military supplier.
In fact, defense trade became the raison d’être for strategic relations between the two nations –
particularly in the post-Cold War era.
Decline in military relations:

Yet Russia’s share of military sales to India is now in steady decline. In consonance with India’s
enhanced geopolitical status and strategic rapprochement with the U.S., New Delhi has found
new partners in the West. And what was once the defining aspect of the bilateral relationship with
Russia is threatening to become a heavy burden for both partners.
This shift has been a decade in the making and can be traced back to the 123 Agreement that
India signed with the U.S. What followed was a reversal of a decades old non-proliferation policy
that culminated in the signing of the Indo-U.S. civil nuclear agreement in 2005. America’s strategic
rapprochement with New Delhi marked a watershed moment in India’s defense engagement with
the world. Sanctions against many Indian defense entities were lifted and high technology export
controls were slowly eased.
Foreign aerospace and defense majors were given expanded access to Indian markets and within
the space of a decade Indo-Israel defense trade rose to $10 billion, while India’s defense trade with
the U.S. has since topped $9 billion.
All this has had an adverse impact on Indo-Russian defense trade. Despite robust numbers in
absolute terms, Russia’s share of India’s defense pie will continue to fall, at least in the short term.
In recent years, the Kremlin has lost out to other emerging export hubs for big-ticket Indian defense
contracts. These include, amongst others, the 36 MMRCA contract worth $7 billion to France; 10
C-17 Globemaster-III strategic airlift aircraft worth $4.1 to the U.S. and eight P-8I maritime patrol
aircraft worth $2.1, again to the U.S.
At present, Russia’s defense industry is sustaining its considerable ties with India on the strength
of the execution of contracts already in place. Barring the upcoming $11 billion contract for the
joint design and development of the Fifth Generation Fighter Aircraft (FGFA) program with Russia,
there are no specific plans to purchase new Russian arms.
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Pakistan-Russia military relations:
Already there is trouble brewing on the horizon; all signs point to Russia downgrading its military-
technical relationship with India from that of an exclusive partner to a preferred partner. Such
pragmatism should come as no surprise given that India has diversified its own military import
portfolio and no longer considers Russia as its exclusive trading partner. Russian military export
overtures towards Pakistan are now perceptible. In a noteworthy development, Russia recently
decided to supply Mi-35 Hind attack helicopters to Pakistan.
Prior to this, Moscow had refrained from supplying lethal military equipment to Pakistan on account
of New Delhi’s strained relationship with Islamabad – the legacy of this Indo-Russian military
exclusivity can be traced all the way back to the Indo-Soviet Treaty of Friendship, Cooperation and
Peace of 1971.
This shift is significant, and is driven by Moscow’s “compulsive” need to sell weapons. One of the
most important issues following the dissolution of the Soviet Union was the distribution of its
external state debt. However, Russia did not inherit an equally robust economy
Sino-Russia military relations:

The recent upsurge in Sino-Russian military cooperation has also not gone unnoticed in India.
By selling the advanced Su-35 fighter aircraft to China, Russia is potentially creating a conflict
of interest for itself. With every sale of military equipment to China, Russian military hardware
becomes less appealing in the Indian market; this is particularly true for the aerospace sector,
where a major portion of the Indian Air Force fleet is made up of Russian imports.
Some argue that the configuration of equipment supplied to India surpasses that which is supplied
to China
Going forward, a period of dissonance is to be expected, before India and Russia can adjust to the
realpolitik of the present.
Appendix-II: Why RIC is as Important to India

as JAI and BRICS?
RIC was the first meeting of the heads of government of the three Eurasian powers in 12 years.
Conceived by the then Russian foreign minister Yevgeny Primakov in 1998, much before BRICS, the
idea of the RIC never really took off unlike the BRICS, despite occasional meetings on the side-lines of
the UN General Assembly and other multilateral meetings.
However, this time, the three countries have agreed to hold regular summits from now on at all levels
to jointly promote peace and stability.
They emphasised on the need to promote multilateralism, reform institutions of global governance like
the UN and the WTO and highlighted the need to work together to steer global economic governance.
ABOUT
Russia-India-China (RIC) trilateral

Together, the RIC countries occupy over 19 percent of the global landmass and contribute to
over 33 percent of global GDP.
All three countries are nuclear powers and two, Russia and China, are permanent members of the
UN Security Council, while India aspires to be one.
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Japan-USA-India (JAI)
In the recently held G-20 meeting at in Buenos Aires, Prime Minister Narendra
Modi termed the India-US-Japan partnership as “JAI” or victory and said that the
partnership between the three nations would go a long way in ensuring world peace
and prosperity.
India, Japan and the United States have agreed that a “free, open, inclusive and
rules based” order is essential for the Indo-Pacific’s peace and prosperity as the
leaders from the three countries held a trilateral meeting for the first time, amidst
China flexing its muscles in the strategic region.
The leaders also agreed to the central role of ASEAN and they also agreed to work on
maritime and connectivity issues and to synergise efforts in this regard.
Importance of RIC
For Russian President Vladimir Putin, the RIC meeting on the side-lines of the G-20 was a message
to the West that despite their shunning him, he still has friends like India and China.
For China, the RIC provides a platform where it can push its interests in Eurasia.
Further, any holistic, stable security architecture on the Eurasian landmass cannot develop without
having Beijing, Delhi and Moscow on board and the RIC offers the ideal forum for this.
Importance of RIC for India

Though apparently an unlikely troika due to the historical differences between New Delhi and
Beijing, what binds the group together is the now strong partnership between Beijing and Moscow
and the time-tested relations between Moscow and New Delhi.
So, in this sense, Russia becomes the bridge between India and China, since it enjoys strong
relations with both.
Moreover, the RIC forms the core of both the Shanghai Cooperation Organisation (SCO) and the
India is in a geostrategic sweet spot today. It is being wooed by everyone -- from the smaller powers
in East Asia to the bigger powers like the US, Russia and China. The RIC summit is a reflection of
this new found status. India would do well to give RIC the same importance as the JAI group.
The drawback if India focuses only on groupings like the Quad and the JAI is that these groupings
essentially revolve around the Indo Pacific and will confine India to being only a maritime power
when it is actually both a maritime and continental power.
It is important for India as an aspiring power to be able to thwart China’s aspirations of being a
hegemon in both the maritime and continental spheres.
India cannot cede geostrategic space in the Eurasian supercontinent to China if it wants to be a
great power and it understands that Russia alone will not be able to prevent the emergence of
China as a hegemon in Eurasia.
Moreover, the RIC is important for India’s ambitions for a variety of reasons.
Strategic importance of RIC

Even though India, China and Russia may disagree on a number of security issues in Eurasia, there
are areas where their interest converge, like, for instance, on Afghanistan. Primarily, none of them
wants an Afghanistan, which is a haven for terrorist activities. So, they could work together as part
of the RIC to ensure stable peace in Afghanistan and by extension, in Central Asia.
Regular RIC interactions could also help the three countries identify other issues where they have
congruent views like the volatile situation in the West Asia, particularly on issues like the sanctions
on Iran.
As the Eurasian supercontinent regains its primacy in world affairs and as the interests of India,
Russia and China deepen and clash in the region, it would be useful to have a platform to discuss
areas of cooperation and understand the differences.
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Context RIC (Russia-India-China)

Conceived in 1998, the idea of RIC
The three countries agreed
never really took off.
to hold regular summits from
However, a meeting of the
now on at all levels to jointly
grouping took place on the
promote peace and stability.
sidelines of G-20 summit recently.
Have 19% landmass and 33% Two are members of UNSC

GDP of world
Importance of RIC and India aspires to be one
For Russia For China
In conflict with RIC can provide a

West, needs friends platform to push its
like India and China interests in Eurasia
For India
Russia can act as a bridge in Would help consolidate its
the strained relations with geostrategic space in Eurasian
China continent as a continental power
form core of both All nuclear

BRICS and SCO powers
Economic Importance
Russia is a major exporter of In an increasingly

energy and India/China are protectionist world, they
major consumers could contribute to creating
a new economic order
They could create an ‘Asian energy grid’ to ensure energy security in the region
Strategic Convergence
Despite differences, many areas of strategic convergence exists

could work together
Afghanistan Address Address on disaster relief
(All want to ensure a volatility in fallouts of US and humanitarian
stable Afghanistan) West Asia sanctions on assistance
Iran
RIC can act as a platform to discuss and address areas

of cooperation and understand mutual differences
Bottomline
The RIC trilateral is a significant multilateral grouping, because it brings together the three largest Eurasian countries
which are also incidentally geographically contiguous.
The recent RIC summit is a continuation of the turn-around in India’s foreign policy after Indian PM’s summit meetings
with Chinese President in Wuhan and Russian President in Sochi last year.
For India, groupings like Quad and JAI (Japan-America-India) will only help consolidate its maritime power. RIC can
complement its continental ambitions and bring about more balance in its strategic autonomy.
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Economic importance of RIC

The trio could also contribute to creating a new economic structure for the world.
The US, under President Trump, apparently wants to break down the current economic and political
order. While the existing structure is not satisfactory, the RIC could offer some suggestions which
could be acceptable to the US.
With Russia being a major exporter of energy and India and China being major consumers, the
three countries could discuss the creation of an Asian energy grid, which could go a long way
in ensuring energy security for the region as well as allow these countries to determine prices
suitable to them.
RIC importance on Climate Change issue

The RIC countries could work together on disaster relief and humanitarian assistance.
With the Northern Sea Route opening up due to climate change, the RIC has a common interest in
ensuring that it is not left to the West and Russia alone and that India and China make the transition
from rule followers to rule makers by helping formulate some of the rules governing the Arctic
route.
CONCLUSION
The Russia-India-China (RIC) trilateral is a significant multilateral grouping, because it brings together
the three largest Eurasian countries which are also incidentally geographically contiguous.
This year’s RIC summit is a continuation of the turn-around in India’s foreign policy after Modi’s
summit meetings with Chinese President Xi Jinping in Wuhan and President Putin in Sochi earlier
this year. It is an assertion of India’s strategic autonomy, which will hopefully continue well after the
general elections to be held in the country in 2019.
UK
India UK relationship has moved out of the colonial mould and is based on equality. It comprises every
sphere of possible cooperation strategic, economic, cultural, people to people etc.
Both the countries entered into strategic partnership in 2004. During PM Modi’s visit both agreed
on jointly pushing for the UN comprehensive convention on international terrorism (CCIT), and
strengthening strategic cooperation and intelligence-sharing through annual consultations and fighting
terror groups, thus furthering their co-operation in the field.
Economic and Trade relations

Economics, stands at the heart of the India-UK relationship. The UK is the third largest source
of foreign direct investment in India. And India is the third largest source of FDI (in terms of the
number of projects) in the UK, after the US and France.
During 2015 PM Modi’s visit it was announced that Indian railways and others would be raising over
£1 billion of rupee-denominated “masala” bond in London.
New British “Centres of Excellence” will be established for key business sectors in India.
The largest Solar power generator in Europe, Light source, will invest a little over $3 billion in India
to design, install and manage around 3 GW of solar power infrastructure in India over the next five
years in partnerships with Indian companies.
UK is also helping India in Banglore-Mumbai Industrial Corridor.
Indian PM Narendra Modi defined UK as India’s entry point to EU.
Other areas of cooperation

The countries also launched a new Thames-Ganga partnership for healthy river systems.
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India can leverage other British advantages as well. From education, health, culture, infrastructure,
science, and high-technology to areas such as policing and intelligence, Britain is still a global
leader. India needs to keep this in mind as it approaches its engagement with the UK.
New initiatives in science and education such as the Newton Bhabha Fund and an increase in
research collaboration from £1m to £150m all add to a strengthening of the relationship and growth
in trade.
Britain is keen to share its expertise to help in building capacities in India.
Indian Diaspora
Indian diaspora accounts for 2.3% of Britain total population, is the largest ethnic minority group
in the UK,Indian diaspora is very active in all spheres of life in UK. They have very good presence in
business, politics etc. Lakshmi Niwas Mittal, Lord Meghnad Desai are notable examples.
They are also the driving force behind India-UK relations. In recent Parliamentary elections slogans
in Hindi were used to woo ethnic Indian voters.
They act not only as a bridge between the UK and India, but help enrich the UK through Indian
culture.
Issues:
Discrimination faced by them.
Issue of female foeticide and caste discrimination among Indians which have sullied the image of
Indians.
Visa issue
Recently UK has increased the fee for non-EU workers seeking UK Tier 2 visa. This is going to
significantly affect the entry of talented Indian professionals who have greatly contributed to UK
economy.
According to migration data, Indian skilled workers were given the largest number of visas under
Tier 2 in the year ending September 2015 and Indian IT workers accounted for 90 per cent of visas
issued under the ICT (Intra Company Transfer) route.
Earlier UK had abolished the rule that allowed non-EU students to stay in the UK for two years to find
a job which has halved the number of Indian students going to UK.
UNSC Permanent membership

UK has been continuously supporting India’s demand for UNSC Permanent membership on all
forums. It has never blinked from that position.
Key challenges that still remain:

Where the UK has failed is in articulating a broader strategic vision for its ties with India. This is
related to its failure to view Asia beyond economics and trade.
The UK imports more and more from India, though the level of its exports to the country has
recently begun to stutter after several years of growth.
The reduction in Indian students because of Visa issue Cooperation between the U.K. and Indian
atomic energy agencies will focus on safety and security issues, but not big enough commercial
agreements of the sort seen in India’s nuclear relationships with Australia or France.
The defence relationship between the U.K. and India, crucially important in the decades after
independence, has been modest of late and the trip did little to raise hopes.
There is no convergence on global issues like West Asian turmoil.
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While there were the right noises on policies, there was little to show that the problems of easing
business regulations for British companies, and relaxing immigration and visa norms for Indian
companies, professionals and students, have been resolved and present professional visa issue
will have negative impact on the relations.
Since the UK is too closely aligned with the US, there are limits to how far India can go on security
cooperation.
CONCLUSION:
With India seen as more stable than other emerging economies, there is potential for economic ties.
With the world increasingly become multi polar, there lies huge potential for deeper engagement
between the two nations.
Britain has a vibrant and successful Indian community, contributing much to Britain’s economy. The
strength of this community can be used to strengthen economic ties through business councils.
There is a need to collaborate at the HRD level, and engage in people to people contact. Also,
technology transfer must be encouraged, especially in defence.
Annexure: Extradition And The United Kingdom

The Indian Government recently has sought an extradition of Vijay Mallaya accused of siphoning off a
mammoth Rs. 9,000 crores of loans taken from different banks in India was on run away which India
had been trying to extradite him from United Kingdom ever since he fled to London last year.
However, Mallya is not the first high-profile Indian based in the UK and wanted in India. The list of
others whom India has sought to extradite includes LalitModi (for alleged financial offences), Ravi
Sankaran (in the navy war room leak case), Nadeem Saifi (in the Gulshan Kumar murder case) and
Tiger Hanif (in the Gujarat blasts case).
But extradition is far more confusing and difficult a process than what it sounds like and has proven a
tough nut to crack for the government to extradite many from different countries.
The officials from India and UK have discussed the wide issue of clearing up bottlenecks in the
extradition treaty which was inked in 1992 and focused on speeding up the process of extradition.
What is Extradition?
Bilateral, and usually reciprocal, treaty between sovereign states which (upon request) provides for
the surrender of person(s) accused of a crime under the laws of the requesting state. Extradition
may be barred for offences other than those punishable in the surrendering state, and (commonly)
its courts must be convinced that a prima facie criminal case exists.
Extradition plays an important role in the international battle against crime. It owes its existence
to the so-called principle of territoriality of criminal law, according to which a State will not apply
its penal statutes to action committed outside its own boundaries except where the protection of
special national interests is at stake.
In view of the solidarity of nations in the repression of criminality, however, a State, though refusing
to impose direct penal sanctions to offences committed abroad, is usually willing to cooperate
otherwise in bringing the perpetrator to justice lest he goes unpunished.
Position of Extradition in India

In India the extradition of a fugitive from India to a foreign country or vice-versa is governed by the
provisions of Indian Extradition Act, 1962. The basis of extradition could be a treaty between India
and a foreign country. Under Section 3 of this Act, a notification could be issued by the Government
of India extending the provisions of the Act to the country/countries notified.
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Procedure for Extradition in India
Information regarding the fugitive criminals wanted in foreign countries is received directly
from the concerned country or through the General Secretariat of the International Criminal
Police Organisation (ICPO)-Interpol in the form of red notices. The Interpol Wing of the Central
Bureau of Investigation immediately passes it on to the concerned police organizations. The red
notices received from the General Secretariat are circulated to all the State Police authorities and
immigration authorities.
Action can be taken under the Indian Extradition Act Article No. 34 (b) of 1962. This act provides
procedure for the arrest and extradition of fugitive criminals under certain conditions which
includes receipt of the request through diplomatic channels ONLY and under the warrant issued by
a Magistrate having a competent jurisdiction.
Action can also be taken under the provisions of Section 41 (1) (g) of the Cr.P.C., 1973 which
authorizes the police to arrest a fugitive criminal without a warrant, however, they must immediately
refer the matter to Interpol Wing for onward transmission to the Government of India for taking a
decision on extradition or otherwise.
In case the fugitive criminal is an Indian national, action can also be taken under Section 188
Cr.P.C., 1973 as if the offence has been committed at any place in India at which he may be found.
The trial of such a fugitive criminal can only take place with the previous sanction of the Central
Government.
Position of Extradition in UK
In UK the extradition of a fugitive from UK to a foreign country or vice-versa is governed by the
provisions of The Extradition Act 2003.
On 1 January 2004 new extradition law came into force in the UK. This Extradition Act divides
countries, with which the UK has extradition treaties, into two categories: Category 1 and Category
2. The extradition procedure varies depending on which category a country falls into. A third
category exists in relation to countries with which the UK has an extradition agreement in relation
to specific crimes.
Many of the changes introduced under the new legislation were intended to address the increased
global threat of terrorism in the post-9/11 world.
Procedure for Extradition in UK

A country requesting extradition from the UK may either arrange their own legal representation or
be represented by the UK’s Crown Prosecution Service. All extradition requests to the UK start at
the City of Westminster Magistrates’ Court. Extradition cases were heard at the famous Bow Street
Magistrates’ Court until this closed in 2006.
When a request for extradition is made the police will apply to the court for a warrant in order to
arrest the individual sought. The papers requesting extradition will then be checked by the Home
Secretary to ensure the correct procedures have been followed. If satisfied, the Home Secretary
will sign an Authority to Proceed. The case will then go before a judge who will decide whether
extradition is justified. If the request is approved the individual facing extradition can appeal the
decision.
To secure extradition from the UK, the country seeking extradition must usually show that there is
sufficient evidence to bring a court case against the individual to be extradited.
However, the UK has now entered into an agreement with some countries which means that they do
not have to satisfy the UK court that there is sufficient evidence before extradition can take place.
This rule applies to EU countries, the USA, Canada, Australia and New Zealand.
In most cases this arrangement is reciprocal meaning that the UK does not have to provide
evidence in order to secure extradition of an individual from one of those countries. However,
due to a hiatus in the implementation of the necessary law, there is no reciprocal arrangement
between the USA and the UK. This means that whilst the UK must supply evidence to extradite
from the USA, the USA does not have to provide evidence to extradite from the UK.
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Bottlenecks in Extradition between India and UK:

It is difficult to persuade authorities in UK that committing a financial crime makes a person a
fugitive. Also, their sensitivity towards any human rights violation makes extradition from England
difficult for any country.
The dual criminality clause is the key to initiating extradition proceedings, according to the
experts. This means the accused has to be charged for an offence that is recognised as a crime
in both countries.
But the accused have several grounds of defence, as provided under Article 9 of the extradition
treaty between the two nations. A person can challenge extradition citing possible persecution or
the “trivial nature” of offence. For Example: NadeemSaifi, wanted in the murder of T-Series founder
Gulshan Kumar, managed to dodge extradition after a prolonged legal battle.
The option to appeal at every level of judiciary, available to a person being extradited from UK,
further complicates matters.
There is also the aspect of UK’s crown prosecution arguing the case on behalf of India, “So it
depends on how convinced they are”. And most importantly, the onus is on investigating agencies
to make a water tight case to ensure extradition.
India’s best chance of getting Mallya back through the extradition route will be to use ED’s money
laundering case as Money laundering is a criminal offence in both India and UK.
CONCLUSION
The wide issue of clearing up bottlenecks in the extradition treaty has been discussed between
both the countries recently. While the laws of extradition are clear, there are other issues between
India and UK which need to be worked upon. For example India has the death penalty while UK
does not, in addition to which the issue of prison facilities was also brought up. These need to be
addressed in due course.
India’s best chance would be to persuade Mallya to come back. Otherwise, it is a risky, time-
consuming as well as expensive process to follow on the path of extradition.
Brazil
RELATIONS TILL 2000
India and Brazil have a history of political cooperation since the 1960s. Like in 1964, India and Brazil
jointly articulated positions in UNCTAD (UN Conference on Trade and Development) and G77. Even
in 1967, both the countries condemned the idea of creating Non-Proliferation Treaty (NPT) and
instead insisted on using the money not on arms, but by helping the developing nations to fight
poverty.
It has been active on the multilateral forums but the economic relations were dismal till the early
2000s.
Coming of Lula de Silva

Emerging from the difficult political past and facing its consequences, the year 2002 for Brazil
was proved to be a turning point. Luís Inácio Lula da Silva was elected the President.
Though, the mutual views of India and Brazil took a stronger hold with the creation of IBSA along
with South Africa in 2003. Lula made India “a priority” in his first Presidential speech in 2003,
which indicated that his government will take ties with India more seriously. India, on the other
hand, invited the Brazilian president to grace its Republic Day celebrations by being the chief
guest in 2004.
In the same year, India signed the follow-up to the framework agreement with MERCOSUR, which
covered 902 products and it came into effect in 2009.
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Relation under the BRICS
The formation of multilateral cooperation of the strong developing economies-Brazil, India, Russia
and China in 2009 was touted as the beginning of a new world order. In 2011, South Africa joined
the group and the cooperation became unique as a distinct block of South.
The enlarged geographic reach of the group to cover major continents, and the countries being the
big regional players, enhances its relevance and growth. All the five countries are G-20 members.
And as of 2013, the BRICS countries represent almost 3 billion people with a combined nominal
GDP of US$ 16.039 trillion and an estimated US$ 4 trillion in combined foreign reserves. Though
BRICS as a group has tremendous potential to grow, it has also received criticism for not having a
common vision.
New Development Bank: India and Brazil along with China, Russia and South Africa are the founder
member of this Bank which aims to contribute development plans established nationally through
projects that are socially, environmentally and economically sustainable and support public and
private projects through loans, guarantees, equity participation and other financial instruments.
With the creation of permanent institutions the New Development Bank and the Contingent Reserve
Arrangement BRICS cooperation has evolved significantly by demonstrating its capacity to produce
collective solutions to address contemporary regional and global challenges.
Being the BRICS nations both the county have actively participated in the agreements which have
strengthen the bilateral ties between them for example- Fortaleza Declaration, Space cooperation,
cyber security and the environmental conservation, G20 etc.
Economic relations: present status

Brazil has become one of the most important trading partners of India in the entire LAC (Latin
America and Caribbean) region. An India export from Brazil between 2015 to 2016 was around
0.97% of total India’s exports. However, India’s exports from Brazil in July-2016 have shrunk by US$
13.33 Million a decrease of 7.46% compared to June-2016.
Total import value for Brazil in Jul-2016 was US$ 165.42 Million, and total import value for Brazil in
Jun-2016 was US$ 178.74 Million.
The value of EU-India trade grew from €28.6 billion in 2003 to €72.5 billion in 2014.
India with its combination of rapid growth, complementary trade baskets and relatively high market
protection, India is an obvious partner for a free trade agreement (FTA) for the EU.
India appreciated Brazil’s efforts to work with MERCOSUL partners for expansion of the India-
MERCOSUL Preferential Trade Agreement (PTA), thereby increasing the trade basket from 450 to
2000 items.
Opportunities: Areas where we can converge

Both the countries are populous with around 1.26 billion people in India (second position in the
world) and Brazil stands at fifth position with 0.20 billion people inhabiting the country.
This brings along the issue of poverty that plagues India as well as Brazil. Brazil’s Bolsa Familia,
part of Fome Zero (Zero Hunger) program was proved successful with direct cash transfer and
conditional cash transfer scheme under Lula’s reign.
On the similar lines in India, anti-poverty scheme-Direct Benefit Transfer (DBT) was launched in
2013 that can function through the Aadhar-enabled bank accounts in targeting subsidies.
The issues of health, universal education, infrastructure needs to be addressed. With the cooperation
of IBSA and BRICS as major platforms, India and Brazil can come up with plans to deal with these
issues. Also, the developing nations must comply with Millennium Development Goals (MDGs) for
their advancement.
Energy: Brazil is considered to have the oldest, most advanced and efficient ethanol programs
in the world. At a time when India imports crude oil for around 4 million barrels per day (bpd),
the alternate use of energy is the need of hour. India can collaborate with Brazil and ethanol’s
substitution of fossil fuels to meet its energy needs.
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Brazil acknowledged that a significant number of Indian companies had invested in Brazil with
over 50 having a physical presence in areas such as oil, renewable energy, mining, engineering,
automotive services, information technology and pharmaceuticals.
Challenges
Despite the ties between both the countries emerging on a substantive level, there are certain tasks
that need to be delved upon.
The primary one being the enormous distance that needs to be made more conducive for bilateral
relations to grow effectively. At the moment, there aren’t direct flights to reach Brazil and vice-versa
and neither bulk shipping routes exist.
There is a huge vacuum in exchange program for scholars, students and civil society institutions.
The student exchanges are difficult as there is no agreement to recognize credits from the other
country and the visa rules are too cumbersome.
CONCLUSION
India and Brazil are the emerging nations that hold similar principles on democracy, human rights,
global governance and liberal strategies. They are partners on the basis of trade relations and have
a lot to learn from each other.
Economic and trade relations noting that there remained tremendous potential for further growth
and diversification of bilateral trade With their uniting stance on various multilateral and pluri-lateral
forums, the two countries are considered to be important for the creation of a new world order. Both
the countries have huge potential to grow bilaterally. However, they require aggressive political will
to strengthen their association.
The India-Brazil strategic partnership was described as exemplary and mutually advantageous;
“distance and language were not seen as constraints as both sides had invested heavily in promoting
shared interests and aspirations.
Israel
INTRODUCTION
2017 marks 25 years of diplomatic relationship between the two countries. The recent visit is taking
place after a long period of anticipation, which symbolizes the outstanding relations between the
two democracies, initiated 25 years ago. These relations were developed and evolved through the
past two-and-a-half decades and reached their peak in the past two years. Trade grew from $200
million to about $4.5 billion in 2016. Taking into account the characteristics of Indian economy, said
amount is still very far from the potential.
However, the evolution of Indo-Israeli relations goes far beyond mere figures of trade. India is
the largest democracy in the world and anticipated to be the youngest and strongest economy
within the next two decades. These characteristics, as well as India’s relations with other countries
throughout Asia and our region, and shared values with Israel, position India as a strategic partner
and even ally.
The relationship between the two countries is considered strategic by both and as such has been
supported by the recent government decision to invest more to enhance it even further and to
increase the trade by 25% in the same period. At some stages the relationship has gone faster,
sometimes not so fast, but it’s been a steady upward trend.
Diaspora Connection with Israel

Most of the Diaspora immigrated to Israel in the 1950s and the 1960s, and the large number of
them don’t have too many ties back home in India. Most Jewish Indians, about 80,000, have all
moved to Israel, and there are just about 4,000-5,000 left in India. So the familial link is not that
strong. Also, the community in Israel is not that well-off compared to those in the U.S. and the U.K.
People moved there on the basis of their religion, not for economic reasons.
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India Israel Cooperation
During the Cold War, India didn’t have open relations with Israel, leaning heavily in favor of the
Palestinians.
In recent years, however Israel has strengthened its security ties with India, and has made the
Indian subcontinent one of its major export destinations, primarily in military procurement. Israel is
the fourth largest weapons supplier to India. Diplomatic visits between the countries have gradually
increased since relations were established.
Why there is change in foreign policy?

Foreign policy, rarely designed to serve a single purpose, and is a tool to pursue security, aid, trade,
status, and prestige. Change in Indian foreign policy lies in the transition from a political-diplomatic
discourse based on idealism to a discourse based on realpolitik. The real politik school holds that
a country continually strives toward power, expressed mainly in terms of military capabilities.
Events such as the Arab Spring, the civil war in Syria, and Chinese militarization of the Indian Ocean
have caused a reassessment of alliances. The current Indian government regards the Middle East
as part of its extended neighborhood, and as critical to India’s national interests. Thus India’s
perception of Israel as a military power and exporter of advanced technologies has led to change
in outlook.
S&T Cooperation
India and Israel together have implemented a large number of cutting edge research projects
in applied areas covering Agricultural and Medical Biotechnology; Human Genomics; Advanced
Materials & Nanotechnology; Imaging Sensor & Robotics; Solar Energy; Communication &
Information Technology; and Lasers & Electro-optics. This has led to new knowledge creation
through high impact publications in peer reviewed international journals.
As a follow-up to the India-Israel Joint S&T Committee meeting which was held in Jerusalem earlier
in 2016, the two countries agreed to step up the collaboration in the next two years by providing
U.S. dollar 1 million from each side to support new R&D projects in the cutting edge areas of ‘Big
Data Analytics in Health Care’ and ‘Security in Cyber Space’.
The joint projects will be awarded to the partnering academic and R&D laboratories from the two
countries during the next year. As a part of these projects, student exchanges will be encouraged in
order to connect the next generation and sustain the pipeline of future collaboration.
This collaborative program is particularly significant in context of ‘Make in India’ and other national
missions of the Indian government. The international industrial R&D cooperation of Department
of Science & Technology (DST) with MATIMOP, the Israeli Industry Center for R&D, is administered
through the Global Innovation and Technology Alliance (GITA) - platform of Confederation of Indian
Industry (CII).
Defence Deals
In the months leading up to Indian PM’s recent historic visit to Israel, India signed two arms deals,
spending $2.6 billion on Israeli missile defense systems.
WHAT ARE THE AGREEMENTS AND TREATIES SIGNED IN THE RECENT VISIT?
The governments have spent time discussing companies that sell medical devices, hi-tech and
water systems, and the military ties which is the secretive bedrock of India-Israel relations for
decades, have taken a back seat.
Rather than making the visit all about the value of deals signed, Israel’s PM Benjamin Netanyahu
and Modi appeared intent on playing up shared culture and values, in the hope that this will give
commercial ties deeper roots.
Both the leaders are of the view that the future of the relationship lies in development, which
includes agriculture, water, innovation, science and technology. This is where we can impact the
largest number of lives of people back in India. Therefore Agreements signed during the current
visit were only on non-security issues like water and agriculture.
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Key sectors
A Memorandum of Understanding (MoU) was signed for setting up of USD 40 million worth India-
Israel Industrial Research and Development (R&D) and Technical Innovation Fund.
Both the nations are of one view that together our scientists and researchers would develop, build
and implement mutually beneficial solutions. Our decision to establish a bilateral Technology
Innovation Fund worth USD 40 million for research in industrial development will help us in achieving
this goal.
Two-way trade and investment flows are the bedrock of a strong partnership. Both the nations
agreed on the need to do more in this direction and businesses on both sides should take primary
lead in such efforts.
In the water sector, two agreements were signed to increase cooperation on water conservation
and state water utility reform in India. Israel is among the leading nations in the field of innovation,
water and agricultural technology and these are also among India’s priority. Agreement on
efficiency of water and resource use; water conservation and its purification; productivity increases
in agriculture are key areas in deepening bilateral cooperation.
In the agriculture sector, the two countries have agreed for India-Israel Development Cooperation
– a three-year work programme in agriculture from 2018 to 2020.
In the Space Sector, both agreed for cooperation in atomic clocks. Besides, separate MoUs were
signed on cooperation in GEO-LEO optical link and cooperation in Electric Propulsion for small
satellites.
Both the nations also agreed to do much more together to combat terrorism to protect their
strategic interests.
Future Prospects
Connectivity between the two countries is still poor, there are no flights from Delhi, and the only
direct flight from Mumbai by El Al (Israel Airlines) runs just three times a week.
India needs to learn the industry Government cooperation from the Israelis. They have the seamless
cooperation between industry, academia and government. We have to learn from their universities,
how they have technology transfer companies based right on their campuses, who help convert
theory into useful products in a very short period of time.
We have a developed system, but the areas where they have start-ups far exceed what we have. We
also need to have Israeli companies look more at the Indian market.
So far, Israeli start-ups have looked at American investors and buyers, but Indian firms could do the
same with larger markets and cheaper production lines.
Appendix: India’s De-Hyphenated Policy

INTRODUCTION
Israelis and Palestinians have engulfed in decades of clashes over religion, borders, and territory.
India has chosen to pursue separate relationships with each party.
Brief History
India’s relation with Palestine took shape during our freedom struggle against British colonialism.
In 1938, Mahatma Gandhi on one hand sympathize for the Jews and on other had said that it is
wrong and inhuman to impose the Jews on the Arabs.
In 1947, having been the victim of Partition and going through its horrific scenes, India voted
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against the partition of Palestine at the United Nations General Assembly. It should be noted that
India was the only non-Arab and Non-Muslim country to do so. Post-Independence also, empathy
with Palestine became the essential part of our foreign policy.
In 1974, India became the first non-Arab country to recognise Palestine Liberation Organisation
(PLO) as the sole representative of the Palestinians. India was one of the first countries to
recognise the state of Palestine in 1988.
India voted in favour of UN Resolution against constructing West Bank wall by Israel in 2003.
India voted in favour for accepting Palestine as a full member of UNESCO in 2011.
In 2014, India supported a UNHRC resolution to launch probe into the Israel’s offensive in Gaza.
Thus, India had kept Israel and Palestine relation in balance. But India seems to be more inclined
towards Palestine.
Why India is pro Palestine?

Minority sentiments: India has been always sympathetic to the Muslim population in Palestine.
Because Indian politicians wanted to followed a pro- Palestine approach without hurting the
minority sentiments.
Remittances: India did not want to jeopardise the interest of its citizens (more than 7 million) working
in Arab countries which are a good source of forex reserves.
Trade: India is dependent on the Arab nations for its larger oil imports.
India’s De-hyphenated Policy:

When Indian Prime Minister Narendra Modi came to power in 2014, he instituted a policy toward
Israel called de-hyphenation.
Meaning: India’s relationship with Israel would stand on its own merits, independent and separate
from India’s relationship with the Palestinians. It would no longer be India’s relationship with
Israel-Palestine, but India’s relationship with Israel, and India’s relationship with the Palestinians.
De-hyphenate in international diplomacy simply means having an independent relation with
particular country, irrespective of any other country getting offended. Dealing with each country
on its own merit.
The De-hyphenated foreign policy means the foreign policy with:

Rational Public discourse on various foreign policy aspects.
More pragmatism and more need based approach than the traditional ethos.
Active role of elected representatives in foreign policy.
Using soft power in foreign relations.
Efficient use of track 2 and track 3 diplomacy to meet the requirements of dialogues and foreign
relations.
Use of economic strengths in relations to deal with the geo-political goals.
From an Indian point of view, its policies towards Israel and Palestine are shifting from mere
symbolism towards one driven by substantial outcomes for its interests on a global level.
For example, India went against the US in a vote at the UN to recognize Jerusalem as the capital
of Israel, with New Delhi backing its decision by highlighting that its views on the issue are
independent and do not coincide with anyone else.
On the other side of the spectrum, it also pulled up Ramallah when the Palestinian ambassador
to Pakistan was photographed sharing the stage with terrorist Hafiz Saeed, forcing Ramallah to
recall their diplomat.
The fact that India is an upcoming superpower both by domestic and international narratives is a
discourse that is directly on a collision course with its policy of non-alignment.
While West Asia is an example of India successfully balancing its interests over time, an emboldened
Indian presence will also disallow New Delhi to fence-sit on issues of global relevance beyond a
certain point.
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Signs of such friction are visible with regard to Palestine, as India’s narrative on terrorism on
global platforms today aligns much more closely with Israel. The political history of the Palestine
Liberation Organization (PLO), Hamas and its military wing the al-Qassam Brigades today would
stand at uncomfortable odds with India’s global stance against the idea of distinguishing between
good terrorism and bad terrorism, specifically when the leader of Hamas, Ismail Haniya, has now
made it to the US blacklist of global terrorists.
Policy of de-hyphenation of Israel-Palestine is straightforward and politically shrewd. Rather
than treating the two entities as one complicated unit, India has chosen to pursue separate
relationships with each party. This allows India to maintain the image of its historical moral
support for Palestinian self-determination, and at the same time to engage in military, economic,
and other strategic relations with Israel.
India’s stand on Israel-Palestine Conflict

India believes in the 2-state solution.
India supports the establishment of state of Palestine.
Indian government has diluted its reaction to Israel’s treatment of the Palestinians.
In 2014, India favoured a UN resolution to establish a Commission of Inquiry to investigate a
violation of international humanitarian and human rights law. But our Government was reluctant to
pass a resolution in Parliament condemning the Israeli action deviating from its earlier practice.
In 2015, India abstained at the UN Human Rights Commission (UNHRC) on a resolution welcoming
the report of the same Commission of Inquiry. It was the first time India refused to vote against
Israel. However, with an increased focus on closer ties with Israel, there is little doubt that India
has diluted its support to Palestine.
Critical Analysis
India’s policy of de-hyphenation benefits Israel and severely undermines political and grassroots
efforts to hold Israel accountable for its crimes against Palestinians.
Relations between the two cannot be viewed as “mutually independent and exclusive”, when one
maintains total military and economic domination over the other.
December 2017, India voted in favour of a UN General Assembly resolution that declared United
States President Donald Trump’s recognition of Jerusalem as Israel’s capital to be null and void.
All of this support is surely valued by Palestinians, but unfortunately, Indian and international
solidarity has made no tangible impact on Palestinian self-determination.
This is why India’s recent UN vote against Israel on the issue of Jerusalem did nothing to impact
India-Israel relations.
Israel will only be held accountable and adjust its dreadful treatment of Palestinians when major
powers, such as India, along with the rest of the world, impose a complete diplomatic, economic,
and cultural boycott.
Way Forward
Israel-Palestine relations are not just a serious issue but a very complicated issue. India has
always talked about peaceful solution. India believes in a two-state solution in which both Israel and
a future Palestinian state co-exist peacefully.
In West Asia, the political and strategic scenario is changing very quickly. India wants to de-
hyphenate its relationship with Israel and Palestine andsee them as mutually independent and
exclusive. These are two standalone relationships and they should not be hyphenated together.
India should maintain the image of its historical moral support for Palestinian self-determination,
and at the same time to engage in military, economic, and other strategic relations with Israel.
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CONCLUSION
India has been very keen to preserve a pragmatic balancing act between regional players in the
West Asian region like Saudi Arabia and Iran. On similar lines, India should be cautious enough
while backing Israel and should adopt a more balanced and pragmatic approach while dealing
with Israel and Palestine.
**********
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INTERNATIONAL
ORGANIZATIONS &
AGREEMENT
IMF
India gets more Voting Rights in IMF Reforms
Emerging and developing economies gained more influence in the governance architecture of the
International Monetary Fund (IMF). India’s voting rights increase to 2.6% from the current 2.3%,
and China’s, to 6% from 3.8, as per the new division. Russia and Brazil are the other 2 countries
that gain from the reforms. More than 6% of the quota shares will shift to emerging and developing
countries from the U.S. and European countries.
The reforms represent a major step toward better reflecting in the institution’s governance
structure the increasing role of dynamic emerging market and developing countries. The entry
into force of these reforms will reinforce the credibility, effectiveness and legitimacy of the IMF.
For the 1st time four emerging market countries (Brazil, China, India, and Russia) will be among
the 10 largest members of the IMF. The reforms also increase the financial strength of the IMF, by
doubling its permanent capital resources to SDR 477 billion (about US$659 billion).
These reforms will ensure that the Fund is able to better meet and represent the needs of its
members in a rapidly changing global environment. It marks a crucial step forward and it is not
the end of change as the efforts to strengthen the IMF’s governance will continue.
IMF Quotas: What and Why?

When a country joins the IMF, it is assigned an initial quota in the same range as the quotas
of existing members of broadly comparable economic size and characteristics. The IMF uses a
quota formula to help assess a member’s relative position.
The current quota formula is a weighted average of GDP (weight of 50%), openness (30%),
economic variability (15%), and international reserves (5%). For this purpose, GDP is measured
through a blend of GDP-based on market exchange rates (weight of 60%) and on PPP exchange
rates (40%). The formula also includes a “compression factor” that reduces the dispersion in
calculated quota shares across members.
Quotas are denominated in Special Drawing Rights (SDRs), Special Drawing Rights (SDRs), the
IMF’s unit of account. The largest member of the IMF is the United States, with a current quota (as
of January 25, 2016) of SDR 42.1 billion (about $58 billion), and the smallest member is Tuvalu,
with a current quota of SDR 1.8 million (about $2.5 million).
The conditions for implementing the quota increases agreed under the 14th General Quota
Review were met on January 26, 2016. As a result, the quotas of each of the IMF’s 188 members
will increase to a combined SDR 477 billion (about US$659 billion) from about SDR 238.5 billion
(about US$329 billion).
Quotas play several key roles in the IMF

A member’s quota determines that country’s financial and organizational relationship with the
IMF, including:
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Subscriptions: A member’s quota subscription determines the maximum amount of financial
resources the member is obliged to provide to the IMF.
Voting power:The quota largely determines a member’s voting power in IMF decisions. Each IMF
member’s votes are comprised of basic votes plus one additional vote for each SDR 100,000 of
quota. The 2008 reform fixed the number of basic votes at 5.502% of total votes. The current
number of basic votes represents close to a tripling of the number prior to the implementation of
the 2008 reforms.
Access to financing: The amount of financing a member can obtain from the IMF (its access limit)
is based on its quota. For example, under Stand-By and Extended Arrangements, a member can
borrow up to 200% of its quota annually and 600 percent cumulatively. However, access may be
higher in exceptional circumstances.
Doubling of quotas and major realignment of quota shares

On December 15, 2010, the Board of Governors, the Fund’s highest decision-making body,
completed the 14th General Review of Quotas, which involved a package of far-reaching reforms
of the Fund’s quotas and governance. This reform package, which became effective on January
26, 2016, delivers an unprecedented 100% increase in total quotas and a major realignment of
quota shares. This will better reflect the changing relative weights of the IMF’s member countries
in the global economy.
The reform package builds on earlier reforms from 2008, which became effective on March 3,
2011. These strengthened the representation of dynamic economies-many of which are emerging
market countries-through ad hoc quota increases for 54 member countries. They also enhanced
the voice and participation of low-income countries through a near tripling of basic votes.
Building on the 2008 reforms, the 14th General Review of Quotas will:
Double quotas from approximately SDR 238.5 billion to approximately SDR 477 billion (about
$659 billion at current exchange rates),
Shift more than 6% of quota shares from over-represented to under-represented member
countries,
Shift more than 6% of quota shares to dynamic emerging market and developing countries
(EMDCs),
Significantly realign quota shares. China will become the third largest member country in the IMF,
and there will be four EMDCs (Brazil, China, India, and Russia) among the 10 largest shareholders
in the Fund, and
Preserve the quota and voting share of the poorest member countries. This group of countries
is defined as those eligible for the low-income Poverty Reduction and Growth Trust (PRGT)
and whose per capita income fell below $1,135 in 2008 (the threshold set by the International
Development Association) or twice that amount for small countries.
These reforms, which become effective on January 26, 2016 represent a major realignment in the
ranking of quota shares that better reflects global economic realities, and a strengthening in the
Fund’s legitimacy and effectiveness. The elements of the reform include
! A quota increase and shift in shares. The 14th General Review of Quotas will result in an
unprecedented doubling of quotas and a major realignment of quota and voting shares to
emerging and developing countries (with a more than 6% quota shift to dynamic emerging
market and developing countries and under-represented countries).
! Protecting the voting power of the poorest. The quota shares and voting power of the poorest
members will be preserved.
! Quota formula and next review. A comprehensive review of the current quota formula and
bringing forward the completion of the 15th General Review of Quotas to January 2014.1
! A new composition and more representative Board. The 2010 reforms also include an
Amendment to the Articles of Agreement that would facilitate a move to a more representative,
all-elected Executive Board. Once the quota and governance reforms are in effect, there will be
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2 fewer Board members from advanced European countries and all Executive Directors will be
elected rather than appointed, as some are now. The size of the Board will remain at 24, and its
composition will be reviewed every 8 years.
! The implementation of the governance reforms makes the Fund an even more effective and
representative institution.
World Bank
INTRODUCTION
World Bank (WB) is one of the five institutions created at Bretton woods in 1944, of which Indian
was a founding member. World Bank comprises of four institutions i.e. International Bank for
Reconstruction and Development (IBRD) and the International Development Association (IDA), IFC
+ MIGA.
The World Bank group is affiliated to United nations it maintains its unique governance structure,
with an official goal of “reduction of poverty”, thus directly contributing towards sustainable
development goals.
World Bank has initiated many social development programmes in India ranging from alleviating
poverty to inclusive growth.
Hereby, analyzing the role of World Bank in social development of India.

Social Development focuses on the need to “put people first” in development processes. Poverty
is more than low income – it is also about vulnerability, exclusion, unaccountable institutions,
powerlessness, and exposure to violence. Social Development promotes social inclusion of the
poor and vulnerable by empowering people, building cohesive and resilient societies, and making
institutions accessible and accountable to citizens.
Working with governments, communities (including Indigenous Peoples’ communities), civil
society, and the private sector, Social Development translates the complex relationship between
societies and states into operations. Empirical evidence and operational experience show that
Social Development promotes economic growth and leads to better interventions and a higher
quality of life.
The World Bank’s work in social development supports measures for poor, excluded, and vulnerable
women and men to have equal access to opportunities and to contribute to social and economic
progress and share in its rewards. It brings voices of the poor and vulnerable into development
processes by making evidence-based policy and program contributions
World Bank has also been actively engaged in improving economic and social status of women,
tribals through targeted programmes so that they can become part of mainstream.
Addressing common needs, overcoming constraints, and giving consideration to diverse interests
helps maintain cohesion and prevents conflict. The Bank also supports community organization and
empowerment to demand more effective, efficient, responsive, and transparent public institutions
and service providers. This approach helps communities confront a range of negative trends and
shocks whether economic, political, or environmental.
Role of Different Institutions under World Bank group

IBRD: IBRD provides commercial or concessional loan to only sovereign states or projects backed
by sovereign states. Its loans are aimed to improve transportation and infrastructure, education,
domestic policy, environmental consciousness, energy investments, healthcare, access to food
and potable water, and access to improved sanitation.
IDA: International Development Association (IDA) helps the world’s poorest countries and aims to
reduce poverty by providing interest-free loans {called IDA Credits} and grants for programs that
boost economic growth, reduce inequalities and improve people’s living conditions.
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International Finance Corporation: IFC was created in 1956 to foster private sector investment in
developing nations. It finances the private sector investment, mobilizing capital in the international
financial markets, and providing advisory services to businesses and governments.
Multilateral Investment Guarantee: MIGA promotes foreign direct investment (FDI) into developing
countries to help support economic growth, reduce poverty, and improve people’s lives.
What has been the role of World Bank in development projects in India
India has been one of the main beneficiaries of developmental assistance from World Bank. India
received support to the tune of USD 5 billion in 2014 for different projects. Social development
projects focusing on areas of community development, health, education, sanitation, agriculture,
women have been an important area where loan assistance from World Bank has been used.
Apart from providing loan assistance World Bank has been involved in providing knowledge support
in efficient implementation of programmes.
Achievement of MDG and SDG has been an important objective of financial and technical
assistance provided by World Bank. Replicating best practices, innovating has been the main
benefits of WB supported programmes.
Focus of good governance, participative approach and community building and thus achieving
sustainable development has been the hallmark of World Bank led projects.
Important programmes launched by WB

Various programmes have been launched by World Bank covering different areas. Some of the
noteworthy programmes are:
Project Name Amount in Million USD

Uttarakhand Health Systems Development Project 100
Bihar Rural Roads Project 200
Nagaland Health Project 48
Additional Financing for Financing Energy 5.19 at

Efficiency MSMEs Project
Bihar Transformative Development Project 290
North Eastern Region Power System Improvement 470

Project
Tejaswini: Socioeconomic Empowerment of 63 Girls

Adolescent Young women
Himachal Pradesh Horticulture Development 135

Project
India: Madhya Pradesh Citizen Access to 35 Services Project

Responsive
IN Swachh Bharat Mission Support Operation 1500
Some of the important programmes have been discussed below:

The India Elementary Education Project (SarvaShiksha Abhiyan or SSA) (IDA $1.25 billion over two
projects, Specific Investment Loans) is an example of a project that reaches out to groups that
have been excluded, aiming to boost the enrollment of children from poor families, marginalized
and tribal groups and those with special needs. It has helped the government enroll more than
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17 million out-of-school children in elementary school, including girls, first-generation learners

from long-deprived communities and minority communities, and children with special needs. The
number of out-of-school children declined from 25 million to 8.1 million (less than 5 percent of the
age cohort 6-14). Approximately 2.9 million children with special needs have been identified and
are being covered with a variety of interventions, like residential centers, home-based education.
Bihar Rural Livelihoods Project, popularly known as JEEViKA (livelihoods):
! A World Bank project has supported 1.8 million women in rural Bihar to organize themselves
into self-help groups and federations.
! Women in Bihar are running commercial organizations like producer companies contributing to
increase in agricultural productivity and realization of better prices of their produce.
! The institutional platform of empowered women is now being scaled up by the government of
Bihar all over the state to cover 4.5 million more women.
Tejaswini: Socioeconomic Empowerment of Adolescent Girls & Young Women Project: “The
benefits of a country’s demographic dividend hinges on the productive employment of its working
age population. In Jharkhand, an estimated 56 percent of young women (ages 15-24) are neither
engaged in education, nor employment or training. Empowering these women through skills training
and helping them complete their secondary education will improve their lives as well as allow them
to contribute to Jharkhand’s development.”
This is the first World Bank project in India that is solely focused on the welfare of adolescent girls
and young women which will support adolescent girls and young women, ages 14-24, to complete
their secondary level education and acquire relevant skills for the job market.
Telangana Rural Inclusive Growth Project: with a support of US$ 75 million project to enhance the
agricultural incomes of small and marginal farmers in the state, and ensure increased access to
services related to health, nutrition, sanitation and social entitlements.
It will focus on increasing economic opportunities for small and marginal farmers, especially
from scheduled caste and scheduled tribe households, by helping them gain access to extension
services, quality inputs like improved seeds, market linkages, and institutional credit. Investments
will also be made in improving access to services in the areas of health, nutrition, water and
sanitation, and increasing coverage and effectiveness of India’s social safety net programs.
Nai-Manzil scheme: The Government of India and the World Bank today signed a US$ 50 million
credit for the Nai Manzil: Education and Skills Training for Minorities Project to help young
people from minority communities complete their education and gain from market-driven training
programs with the aim of improving their employment outcomes.
The project will support the Government of India’s national Nai Manzil (New Horizon) Scheme, a
comprehensive education and skills development program for youth from minority communities,
launched in August this year. The project will reach out to disadvantaged youth from minority
communities and support their enrolment in open schooling, as well as provide hands-on vocational
training. It will also provide post-placement support to assist them in finding sustainable
employment.
Transport and social development

Transportation is responsible for the development of civilizations from very old times by meeting
travel requirement of people and transport requirement of goods. Such movement has changed
the way people live and travel. In developed and developing nations, a large fraction of people
travel daily for work,shopping and social reasons. Transport too help in social development as it
provides connectivity to health, education centres and market.
Thus World Bank is also supporting many transport initiatives:
! National Highway Development Project: The World Bank is financing highway construction
on the Lucknow-Muzaffarpur corridors. It is also involved in other sector activities such as
improving road road safety.
! Rural Roads Program: The project supports the PMGSY in providing all weather roads to
villages in four states – Uttar Pradesh, Jharkhand, Rajasthan and Himachal Pradesh.
! State Roads Projects: State Highways are being upgraded in the states of Kerala, Mizoram,
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Uttar Pradesh, Tamil Nadu, Punjab, Himachal Pradesh, Orissa and Andhra Pradesh.
! Mumbai Urban Transport Project: The project aims to improve transportation in the Mumbai
Metropolitan Region by fostering the development of an efficient and sustainable urban
transport system - suburban rail, bus and link roads - and building effective institutions.
! Sustainable Urban Transport Project: The project aims to promote environmentally sustainable
urban transport in various cities and support implementation of the India National Urban
Transport Policy (NUTP).
Through various programmes focusing on creation of physical infrastructure like rural roads,
electricity grids and strengthening of social infrastructure World Bank has both directly and
indirectly helped in social development by building inclusive society, ensuring equity and justice;
providing participation and voice to the excluded.
WTO
INTRODUCTION
Nairobi Package adopted at 10th WTO Ministerial Conference
The 10th World Trade Organization (WTO) Ministerial Conference concluded in Nairobi, Kenya.
The conference concluded with the adoption of the Nairobi Package that is aimed at benefitting
organization’s poorest members.
WHAT NAIROBI PACKAGE CONTAINS?

The Nairobi Package contains a series of six Ministerial Decisions on agriculture, cotton and
issues related to least-developed countries. These include:
Agriculture
Developing country members can continue their export subsidy entitlements by the end of 2018,
but developed countries have to eliminate them immediately.
Developing countries will have right to have recourse to a special safeguard mechanism (SSM is
a measure used to protect domestic farmers from sudden surges in imports) and members will
constructively engage for permanent solution for maintaining public stocks for food security.
Cotton
The decision related to cotton includes three agriculture elements viz., market access, domestic
support and export competition.
! On market access, the decision calls for cotton from LDCs to be given duty-free and quota-free
access to the markets of developed countries - and to those of developing countries declaring
that they are able to do so - from 1 January 2016.
! The domestic support part of the cotton decision acknowledges members’ reforms in their
domestic cotton policies and stresses that more efforts remain to be made.
! On export competition for cotton, the decision mandates that developed countries prohibit
cotton export subsidies immediately and developing countries do so at a later date.
LDC Issues
The Ministerial Conference adopted a decision that will facilitate opportunities for least-developed
countries’ export of goods to both developed and developing countries under unilateral preferential
trade arrangements in favour of LDCs.
On the services front, the conference decided on implementation of preferential treatment in favour
of services and service suppliers of Least Developed Countries and increasing LDC Participation
in services trade.
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How are India and developing countries interests affected by Nairobi Package?
From India’s point of view, the Nairobi declaration was disappointing on multiple fronts. From its
relative pre-eminence among emerging market economies with the principled position on sticking
to the Doha agenda, India has returned with very few, if any, of its demands met.
! There is no concrete agreement on special safeguards mechanism. Developed countries already
have access to a similar mechanism called special safeguards or SSGs. At the best India got an
“assurance on negotiations for SSM, but no actual mechanism to invoke it”
! There is no short deadline for a permanent solution on public stockholding which is crucial for
India’s food security, especially after passing of National food security act (NFSA). However,
there was no deadline offered by Nairobi meet for a “permanent solution” to public stock holding,
thus leaving India’s food security programme in dark.
! India’s demand for restructuring of agricultural subsidies based on 1986-88 prices was not
achieved. As a part of agreement, India will have to do away with its transport and marketing
subsidies by 2023. Apart from this Amber box Subsidies issue not resolved, US provide
agricultural subsidies in greater amount as compared to India which is trade-distorting in nature.
But India couldn’t bring an agreement for forcing US to reduce such subsidies.
BASE YEAR CORRECTION

The WTO has fixed an external reference price (ERP) for rice at Rs 3.52 per kg (at base 1986-88
prices).Interestingly, ERP being a non-inflation and dollar-denominated adjusted proxy for the cost
of production has, thus, been unchanged since the base year.
But the cost of production in the domestic economy has escalated in the last decade by more than
five times.More specifically, food product prices have grown by a similar amount.At the same time,
the Indian rupee has depreciated almost four times from 12.78 per dollar in 1986-87 to 60.50 per
dollar in 2013-14.Given such a huge variation in price and currency value, India’s argument for base
year correction is logical and justified.
! The lack of an unambiguous reaffirmation of the Doha Development Agenda means new issues
of interest to developed countries, including competition policy’ government procurement and
investment are now open for negotiations.
! No resolution on the issue of IPR rights regarding usage of generic medicines and Special and
Differential Treatment accorded by developed countries to cotton, micro-industries.
! The Trans-Pacific Partnership recently finalized among 12 Asia-Pacific nations, including the
US and Japan, along with the Transatlantic Trade and Investment Partnership under negotiation
between the EU and the US, is likely to provide a template for rule-making in the WTO. These
developments have major implications for the role of developing countries in the WTO.
The outcome of the Nairobi ministerial also raises a number of challenges for India’s trade policy.
A coherent trade policy does not emerge on its own; it is a function of domestic reform and
competitiveness. On food security, for instance, India has expended much negotiating capital without
exploring adequately the possibility of restructuring its farm-support programmes to conform
to Green Box requirements. Such a restructuring will be politically sensitive, but if successfully
pursued, would free India to follow other trade objectives. Similarly, India has not pursued, in any
meaningful manner, the efficiency gains from domestic market integration in various sectors of the
economy, particularly agriculture.
The GST is a vital instrument, but there are several other initiatives that require pursuing. Beyond
domestic market integration, India’s approach to market integration in the region has been
pusillanimous. The lack of an integrated approach to trade in services is especially striking given
India’s global competitiveness in several services. The government’s policy emphasis on “Make in
India” is not replicated in services, which has far greater potential for job creation in the economy.
It is only through a forward-looking trade policy based on India’s competitive strengths and a clear
vision for the future that India can shape the WTO’s agenda. India’s status as an emerging power in
the global economy is not furthered by merely voicing defensive concerns at the WTO.
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However, there are some positive outcomes as well
Export subsidies - Developed countries have committed to remove export subsidies completely
which would increase the competitiveness of products from developing countries in global trade
& ensure sustenance of domestic players.
Information Technology Agreement -As per agreement IT products will be traded duty free
& greater market access will be provided. This would accord huge benefit to Indian firms and
promote competitiveness.
Accession of Afghanistan - Inclusion of Afghanistan as WTO member & Impetus to trade with
Afghanistan improving its domestic economy will positively boost India Afghan trade &stabilise
the dwindling Afghanistan economy and thus reduce the security threats emanating from there
indirectly.
CONCLUSION
However, disappointing the Nairobi outcome may be, it is in essence a recording of a factual
reality of the differences between countries, and the strong pressure of the developed world to
manoeuvre the WTO in a direction that best suits its interests. The only option for India is to forge
ahead with a high degree of preparedness and focus on areas of its interests, coalition-building
with like-minded countries, and translating what “many” want into actual results.
The Doha round had resulted in several decisions and declarations which continue to remain
legally valid decisions of WTO members and need to be honored in taking forward the negotiations.
The Nairobi Declaration in fact refers to the recently concluded United Nation’s 2030 Sustainable
Development Goals (SDGs). One of the SDGs is that of promoting an equitable multilateral trading
system under the WTO “through the conclusion of negotiations under its Doha Development
Agenda”. This can again be seen as an implicit referencing of the DDA and its importance.
Furthermore, the Nairobi decisions on special safeguard mechanism for developing country
members and on public stockholding for food security purposes clearly make reference to post-
Doha decisions (the Hong Kong Ministerial Decision and the Bali Decision) as the basis for further
negotiations. It is important to build on each of these to reach clear, successful and speedy
outcomes.
On other Doha issues, it is important to clearly map what India wants, and how that may be
achieved for example, in services negotiations. Of equal importance is the need to prepare for the
new issues, approaches and architecture that “some” WTO members have expressed their desire
for in the Nairobi Declaration. The recently concluded TPP agreement perhaps provides a clear
glimpse of what these new issues are likely to be - environment, labour, investment, competition,
government procurement, and so on. How to engage on these issues, and identify the red and
green lights for negotiations, is the next challenge that India needs to be prepared for.
The WTO remains an institution that is worth preserving. India needs to approach it from a
position of strength, with clearly defined agendas, and with preparedness for the new challenges
it presents.
WTO REPORTSRISE IN PROTECTIONISM

A report on G-20 trade reveals that during mid-October 2015 to mid-May 2016, G20 economies
applied 145 new trade-restrictive measures, or an average of almost 21 new measures a month. In
the same period, G20 economies implemented 100 measures aimed at facilitating trade, averaging
just over 14 per month. Since 2009, a total of 1,583 trade restrictive measures were imposed by
G20 countries, and only a quarter of these measures have been removed. These restrictions cover
over 6% of all G20 imports and 5% of global imports.
These trade-restrictive measures, combined with a notable rise in anti-trade rhetoric, could
have a further chilling effect on trade flows, with knock-on effects for economic growth and job
creation.
! General economic support measures implemented by G20 economies appear on the rise. The
review period recorded a monthly average of such measures comparable with the number
recorded immediately after the onset of the global financial crisis.
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! Prospects for world trade in 2016 and beyond remain uncertain. The most recent WTO
trade forecast of 7 April 2016 predicted merchandise trade volume growth of 2.8% in 2016,
unchanged from 2015. Despite a number of positive developments, the global environment
remains challenging and continued vigilance is required.
The report shows a worrying rise in the rate of new trade-restrictive measures put in place each
month - hitting the highest monthly average since 2011.
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G-20
The Group of Twenty (G20) is the premier forum for global economic and financial cooperation. It
brings together the world’s major advanced and emerging economies, representing around 85 per cent
of global GDP and two-thirds of the world’s population.
The presidency of the G20 rotates annually among its members. The presidency leads a three-member
management group of previous, current and future chairs, referred to as the Troika, the purpose of
which is to ensure transparency, fairness, and continuity from one presidency to another. The G20
does not have a secretariat of its own. A temporary secretariat is set up by the country that holds the
presidency for the term of chairmanship.
The G20 was created in 1999 in response to the financial crises in the late 1990s, the growing influence of
emerging market economies on the global economy, and their disproportionately modest participation
in the decision-making process. G20 Leaders met for the first time in 2008 in Washington, D.C. And at
that time the G20 was to play a pivotal role in responding to the global economic and financial crisis.
The objectives of the G20 refer to:

Policy coordination between its members in order to achieve global economic stability, sustainable
growth;
Promoting financial regulations that reduce risks and prevent future financial crises;
Modernizing international financial architecture.
G-20 Summit, 2016 Agenda

The 2016 G20 Hangzhou summit was the eleventh meeting of the Group of Twenty (G20). It was
held on 4–5 September 2016 in the city of Hangzhou, Zhejiang.
Leaders adopted a Communiqué focusing on:

Strengthening the G20 growth agenda
Pursuing innovative growth concepts and policies
Building an open world economy
Ensuring that economic growth benefits all countries and people
On the migration and refugee crisis G20 leaders agreed on the need for global efforts to address the
effects, protection needs and root causes of the crisis. They called for strengthening humanitarian
assistance and refugee resettlement.
On the fight against terrorism, leaders reaffirmed their solidarity and resolve and their commitment
to tackle terrorist financing.
The summit also highlighted the importance of joining the Paris Agreement on climate change as
soon as possible.
The world’s leading economies expressed their determination to use all policy tools, including
monetary, fiscal and structural, to achieve strong, sustainable, balanced and inclusive growth. To
this end, they launched the Hangzhou action plan and called for swift and full implementation of
the growth strategies.
The summit also initiated cooperation on innovation, the new industrial revolution and digital
economy. Leaders endorsed the G20 blueprint on innovative growth, encompassing policies on
these areas.
They discussed how to continue building an open and resilient financial system and supporting
international tax cooperation. Leaders also committed to enhance an open world economy and
promote the benefits of trade and open markets, as well as to contribute to the implementation of
the 2030 agenda for sustainable development.
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Significance of G-20, 2016 summit

Besides the G20 major economies, the Hangzhou meeting this year had more developing non-G20
countries in attendance than any previous one.
Countries, such as Laos, Kazakhstan, Egypt and Chad, have taken part in the summit. Leaders
or representatives of seven major international organizations, namely, the United Nations, World
Bank, International Monetary Fund, World Trade Organization, International Labor Organization,
Organization for Economic Cooperation and Development, Financial Stability Board, also joined the
summit.
During the two-day gathering, the annual informal leaders’ meeting of BRICS nations — Brazil,
Russia, India, China and South Africa — was also held on the sidelines of the summit. The five
emerging countries have distinguished themselves in recent years through their large-scale, fast-
growing economies and significant influence on regional and international affairs.
Recognizing that economic growth has been too slow for too long and for too few, the communiqué
does set out an agreed longer-term vision for the G20. This so-called “Hangzhou Consensus” calls
on the G20 to deliver more inclusive economic growth through co-ordinate macroeconomic policy,
open trade and innovation. In short, it reaffirms the group’s core mandate: to make globalization
work for the benefit of all.
ASEAN
INTRODUCTION
The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organisation
comprising ten Southeast Asian states which promotes Pan-Asia Intergovernmental cooperation
and facilitates economic, political, military, educational and cultural integration amongst its member
states.
ASEAN has grown into both the world’s seventh-largest market and third-largest labor force, and
has been projected to become the fourth-largest economic bloc by 2030. Additionally, the group
established the ASEAN Economic Community to create a single market and production base—
facilitating even closer economic, political, social, and cultural cooperation.
Recently, the Association of Southeast Asian Nations (ASEAN) celebrated the 50th anniversary of
the Bangkok Declaration and commemorated its founding on Aug 8, 2017.
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ASEAN’S PROGRESS SINCE INCEPTION
ASEAN has become the world’s second most successful regional organization, after the European
Union.
ASEAN GDP: Today, ASEAN comprises the world’s seventh-largest economy, on track to become
the fourth largest by 2050. Its combined GDP has grown from $95 billion in 1970 to $2.5 trillion in
2014.
ASEAN Meetings are held each year to deepen cooperation in areas such as education, health, and
diplomacy.
ASEAN Economic Community: ASEAN has signed free-trade agreements (FTAs) with China, Japan,
India, South Korea, Australia, and New Zealand, and established an ASEAN economic community.
ASEAN Plus Three: It was created to improve existing ties with the People’s Republic of China,
Japan, and South Korea.
East Asia Summit (EAS) included ASEAN Plus Three countries as well as India, Australia, New
Zealand. This new group acted as a prerequisite for the planned East Asia Community which was
supposedly patterned after the now-defunct European Community.
ASEAN Eminent Persons Group was created to study the possible successes and failures of this
policy as well as the possibility of drafting an ASEAN Charter.
ASEAN Observer Status at UN: ASEAN was given observer status at the United Nations General
Assembly in 2006. In response, the organisation awarded the status of “dialogue partner” to the
UN.
ASEAN Plus Six: ASEAN became ASEAN Plus Six with additional countries: Australia, New Zealand
and India. Codification of the relations between these nations has seen progress through the
development of the Regional Comprehensive Economic Partnership (RCEP), a proposed free-trade
agreement involving the 16 countries of ASEAN plus six.
ASEAN is a microcosm of the world today i.e. highly developed nations, middle income countries
and those just emerging. It has become a beacon of multilateral cooperation in a world darkening
with greater protectionism, a shift to bilateral trade and changing attitudes towards globalization.
ASEAN Economic Prosperity in the Future
ASEAN ECONOMIC COMMUNITY 2015

Single Market & Competitive Equitable Integration into
Production Base Economic Region Economic global Economy
Development
Free flow of goods Competition Policy SME Development Coherent Approach
Free flow of services consumer Protection Initiative for ASEAN towards External
Integration Economic Relations
Free flow of Intellectural Property
investment Rights Enhanced
Participation in
Free Flow of Capital Infrastructure Global Supply
Free Flow of Skilled Development Networks
Labour Taxation
Priority Integration E-commerce
Sectors
Food, Agriculture &
Forestry
To assure its future prosperity the members created the ASEAN Economic Community in 2015, an
initiative designed to boost trade within ASEAN nations and to improve transport and infrastructure
networks.
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It will allow the free flow of goods, services, investment, capital and skilled labour between nations,
and implement policies to make it a more competitive economic region. Not only will this help
ensure equal economic development, but also further integration into the global economy.
ASEAN as a whole has a good record in recent years, growing by around 5% a year, and powering the
creation of a giant middle class. At the start of 2016, the 10 economies of ASEAN were collectively
the seventh largest economy in the world. By the start of 2017, that rank had improved to sixth, and
by 2020 it is projected to be fifth.
Reasons behind Success

At the first place, anti-communism provided a powerful incentive to collaborate. Strong leaders,
like Indonesia’s Suharto, former Malaysian Prime Minister Mahathir Mohammed, and Singapore’s
founding father Lee Kuan Yew, held the group together.
ASEAN’s erstwhile communist nations – Cambodia, Laos, and Vietnam – decided to join the bloc.
So, too, did Myanmar, ending decades of isolation.
ASEAN’s policy of engaging Myanmar attracted criticism from the West, but it helped lay the
groundwork for a peaceful transition from military rule.
Challenge faced by ASEAN

Quality of growth is the issue as inequality is rising across many ASEAN nations. Benefits of
growth are not percolating to everyone equally. The World Economic Forum’s Inclusive Growth and
Development Report 2017 looked closely at the policy initiatives that governments can deploy to
ensure more equitable outcomes.
A familiar refrain is that for all the lofty declarations issued during ASEAN annual summits, there is
little tangible action on the ground in relation to reduction of tariffs, and intra-regional trade. This
led to relatively slow pace of economic integration in the group, compared to the European Union.
ASEAN’s future depends on the deepening of its democratic institutions but the original constituents
of ASEAN, except Thailand, had just emerged from colonialism as newly independent nation
states.
Territorial disputes in the South China Sea have created deep divisions, and the intensifying
geopolitical rivalry between the US and China poses a further threat to cohesion.
One of the region’s main challenge is to bring its infrastructure and IT capability up to date so that
it can take advantage of new technology. According to the World Economic Forum’s competitive
report, most countries have a gaping infrastructure deficit because investment has not kept up with
rapid growth in this area.
Significance and Way Forward

ASEAN has been establishing itself as a platform for Asian integrations and co-operations, working
with other Asian nations to promote unity, prosperity, development and sustainability of the region,
as well as working on solutions to resolve disputes and problems in the region.
While mainly focusing on the Asia-Pacific nations, ASEAN also established communications with
other parts of the world, to better promote world peace and stability.
But if ASEAN is to prosper for another 50 years, it must tackle difficult questions about how to
navigate the accelerating pace of technological change and digital disruption. There must be a
hierarchy of needs, with basic infrastructure – electricity, healthcare and clean water – at the top
of the list.
Governments and policy-makers must ensure they pursue the right policies today to guarantee their
demographic dividend is realized. They must think deeply about education and how best to prepare
workers for the jobs of the future.
They must identify areas of inter-generational tension, such as the environment and the funding of
pensions and healthcare. Growth today cannot come at the expense of future generations.
Need to shape the future for the region’s youth by balancing vocational and digital skills education
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and training, with companies playing a bigger role, in partnership with governments and educational
institutions.
Upgraded skills, increased financing for SMEs, encouragement of more gender diversity and
investments in digital infrastructure will help to decrease poverty by providing more livelihood
opportunities, sustain growth and improve productivity. This will ensure the workforce of the future
is resilient and flexible.
Power plants can be up and running in three months in challenging locations, with the latest
technology and digital solutions to maximize efficiency and minimize carbon emissions.
REPUBLIC DAY 2018: INDIA ASEAN MEET

Cordial relations: India has completed 25 years of association with ASEAN. All heads of ASEAN
members are invited for 26th JANUARY 2018 parade.
Trade: (In near future, South and South East Asia will be the growth engine of the world). This meet
had corroborated $71 Billion trade (2016-17) which comprises 1\10th of India’s world trade.
Regional comprehensive trade agreement (ASEAN and 6 members) will further boost India’s trade
and investment ties with region.
The ASEAN Mentorship for Entrepreneurs will provide training for new entrepreneurs including
India.
Agriculture: Indian PM’s visit to International Rice Research Institute (Los banos in Laguna )
has widened scope for Agriculture cooperation between these nations. It has promised to open
Research institute branch in Varanasi, for south area region. (Philippinesare in South East Asia.)
Connectivity: Promise made on building connectivity with ASEAN. To build land, sea and air
connectivity to dynamic region. Work is already on in the construction of the tri-lateral highway
through Myanmar and Thailand to connect to other countries in South East Asia.
Agreed to work on the early conclusion of the Agreement on Maritime Transport between India
and ASEAN and exploring coastal shipping services with countries with immediate maritime
neighbors.
Security: Leaders also discussed terrorism during the meeting, specifically related to regions of
India’s western front all the way to the Middle East.
Agreements: on defense cooperation and logistics, agriculture, and on micro, small and medium
enterprises, were signed between India and Philippines.
Consensus on the Protection and Promotion of the Rights of Migrant Workers

The ASEAN Consensus on the Protection and Promotion of the Rights of Migrant Workers was
signed by the Heads of States/Governments highlighting the series of events in the 31st ASEAN
Summit.
The ASEAN Consensus stipulates the general principles, fundamental rights of migrant workers
and members of their families, specific rights of migrant workers, obligations and commitments
of ASEAN Member States. It aims to establish a framework for closer cooperation among member
states on addressing migrant workers’ issues in the region. While it is non-legally binding, the
ASEAN Consensus is considered a living and evolving document.
The signing of this ASEAN Consensus shows the political will and strong commitment of ASEAN
leaders to safeguard the rights of migrant workers who have contributed to the growth and
development in the region.
Challenges for India in South East Asian region

Following the uncertain behaviour of China, Indian Ocean has become unpredictable and it might
become the next battle ground.
Problems in the implementation of India-Myanmar-Thailand (IMT) Trilateral Highway and Kaladan
Multimodal Transit and Transport Project.
China’s territorial claim in the oil and gas-rich South China Sea, which is also a major international
maritime trade route, hampers India’s trade relations with South East Asia.
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Way forward
India should play leadership role in improving commerce, connectivity and security in the region of
ASEAN countries.
There is a need for transforming “corridors of connectivity” to “corridors of trade” and fast-track it
to realize their full business potential enhancing utilization of the Free Trade Agreement.
Terrorism, religious extremism and the ISIS are dangers to the region and both India and ASEAN
should work closer to check these menaces.
Cooperation in the nuclear energy and cooperation in cyber security which has become more
vital.
India must focus on potential of the small and medium enterprises (SMEs) for boosting economic
cooperation, due to the large roles SMEs play in Vietnam and the Philippines.
Focus should be on enhancing people-to-people connectivity and nourishing the civilizational
linkages within the region.
Cultivate intra-regional tourism, educational cooperation, and the potential of Indian diaspora in
South-east Asia.
BIMSTEC
BACKGROUND
BIMSTEC, a sub-regional organisation was started on June 6, in the year 1997 through Bangkok
Declaration.
On June 06, 2017, the BIMSTEC completed 20 years of its establishment. BIMSTEC is emerging as
a new grouping among South-East and South Asian economies.
Recently, PM Narendra Modi wished the institution on its 20th anniversary and described the
sub-regional grouping as “a natural platform” to fulfill India’s “key foreign policy priorities of
‘Neighbourhood First’ and ‘Act East’”. The commitment to peace & development connects the
BIMSTEC family.
Earlier in October 2016, India had hosted the BIMSTEC members at Goa during the BRICS (Brazil,
Russia, India, China and South Africa) Outreach Summit. It was viewed as a pragmatic step on
India’s part, demonstrating its potential to play the role of a regional leader, an aspiration which was
instrumental in transforming its ‘Look East’ into ‘Act East’ policy.
The BRICS-BIMSTEC Outreach Summit is believed to have given BIMSTEC its due importance by
inviting its members to participate in a larger platform comprising five major emerging economies
of the world. Thus, hereby analysing its significance, prospects and challenges.
What is BIMSTEC?
BIMSTEC is a regional organisation which comprises of seven member states which lie near the
Bay of Bengal.
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
is an international organisation involving a group of countries in South Asia and South East Asia.
BIMSTEC consists of seven countries: 5 come from South Asia, including India, Nepal, Bangladesh,
Bhutan, and Sri Lanka; and 2 come from Southeast Asia, which includes Myanmar and Thailand.
BIMSTEC headquarter is situated in Dhaka, Bangladesh.
It came into being on 6 June 1997 as a new sub-regional group in Bangkok and given the name BIST-
EC (Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation). Later, Myanmar attended
the inaugural June Meeting as an observer and joined the organisation as a full member at a Special
Ministerial Meeting held in Bangkok on 22 December, 1997, upon which the name of the grouping
was changed to BIMST-EC. Nepal was granted observer status by the second Ministerial Meeting
in Dhaka in December 1998. Subsequently, full membership was granted to Nepal and Bhutan in
February 2004.
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What are the objectives of BIMSTEC?
The main objective of BIMSTEC is technological and economic co-operation among South Asian
and South East Asian countries along the coast of the Bay of Bengal.
Economic Development: To create an enabling environment for rapid economic development
through identification and implementation of specific cooperation projects in the sectors of trade,
investment and industry, technology, human resource development, tourism, agriculture, energy,
and infrastructure and transportation.
Growth: To accelerate the economic growth and social progress in the sub-region through joint
endeavours in a spirit of equality and partnership.
Collaboration: To promote active collaboration and mutual assistance on matters of common
interest in the economic, social, technical and scientific fields.
Assistance: To provide assistance to each other in the form of training and research facilities in
the educational, professional and technical spheres.
Cooperation: To cooperate in projects that can be dealt with most productively on a sub-regional
basis and make the best use of available synergies among BIMSTEC member countries.
Prospects and Achievements

According to the June 1997 Bangkok Declaration, the founding objectives of the sub-regional
initiative were economic development, growth collaboration and cooperation and the total of 14
priority sectors have been identified by the members.
Later in 2004, Free Trade Agreement (2004) was signed by the members and also agreed for
Convention on Cooperation in Combating International Terrorism, Transnational Organised Crime
and Illicit Drug Trafficking (2009).
In the context of India: The establishment of BIMSTEC, is an opportunity, besides the Association
of Southeast Asian Nations (ASEAN), to engage with Southeast Asia. The scope for direct
connectivity with Southeast Asia via Northeast India and Myanmar, counter-terrorism and anti-
insurgency cooperation with Myanmar and other members, potential access to alternative
energy resources in Myanmar as well as economic opportunities available in the ASEAN region
has renewed the interest of India. BIMSTEC, unlike ASEAN and SAARC, is not mired in political
tensions. Pakistan is not the member of this grouping, hence prospects are high. It would help
materialise the dream of India for development of NE Region through better and effective co-
operation with South East Asian Countries.
In the context of other member countries: Besides India, other members too considered it as an
important mechanism to achieve their national goals and regional aspirations.
Myanmar’s junta government, by becoming the member of regional and sub-regional groupings like
ASEAN and BIMSTEC provided its military rulers an opportunity to gain some sort of recognition
among the regional stakeholders.
Thailand sees it as an opportunity to enhance its trade and connectivity with the South Asian
countries under the ambit of its ‘Look West’ policy and it could complemets with India’s ‘Act
East.’
The ongoing India-Myanmar-Thailand Trilateral Highway and the India-Myanmar Kaladan
Multimodal Transit Transport Project are expected to further augment connectivity and economic
cooperation in the sub-region and beyond.
Countries like Sri Lanka considered BIMSTEC as an opportunity to engage with the economically
booming Southeast Asian countries, especially after several failed attempts to join ASEAN in the
decade prior to the establishment of BIMSTEC. With India and Thailand as its important economic
partners, Sri Lanka is looking forward to the implementation of BIMSTEC Free Trade Agreement
and BIMSTEC Motor Vehicles Agreement.
BIMSTEC could be the game changer for the land-locked countries like Nepal and Bhutan by
enhancing their connectivity with the rest of the region.
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Challenges
In today’s context, the possibility of enhancing physical, digital and people-to-people connectivity
in the sub-region is huge. Similarly, the potential to tap the vast energy resources and scope for
intra-regional trade and investment too is enormous. But the bilateral tensions come in the way.
The so-called sluggishness in BIMSTEC last two decades is attributed to many factors.
India, the largest member of the grouping, has often been criticised for not providing a strong
leadership to BIMSTEC.
Both Thailand and Myanmar are criticised for having ignored BIMSTEC in favour of ASEAN.
Absence of a permanent secretariat for a long time and lack of commitment to invest in several
priority areas as one of the key institutional factors holding the BIMSTEC back.
The ‘noodle bowl effect’ of regionalism too was at work as formation of another sub-regional
initiative, the Bangladesh-China-India-Myanmar (BCIM) Forum, with the proactive membership of
China, created more doubts about the exclusive potential of BIMSTEC.
Recent initiatives to make it an active entity

India has been clearly signalling its revived interest in BIMSTEC in her new ‘Act East policy.’ India
is already the lead country for four priority sectors, namely, transportation and communication,
environment and disaster management, tourism, and counter-terrorism and trans-national crime.
Within few months of the Goa Summit, India hosted the first meeting of the BIMSTEC National
Security Chiefs in New Delhi in March 2017. The Meeting primarily focused on combating terrorism
in the region.
BIMSTEC is now trying to sign a Convention on Mutual Legal Assistance in Criminal Matters.
India hosting a working group meeting to finalise the BIMSTEC Motor Vehicles Agreement,
finalisation of a Memorandum of Understanding (MoU) on Grid Interconnection to facilitate
electricity trade in the sub-region, and a meeting of BIMSTEC Trade Negotiating Committee to
fast-track the process of trade facilitation in the region.
Apart from India, other member states too appear to be showing interest in strengthening
BIMSTEC. Other countries, too describe BIMSTEC as a ‘complimentary organisation’ which can
support the people in the region.
In terms of connectivity, BIMSTEC has at last three major projects that, when finished, could
transform the movement of goods and vehicles through the countries in the grouping.
! Kaladan Multimodal project envisages connecting Kolkata to Sittwe port in Myanmar, and then
Mizoram by river and road.
! Asian Trilateral Highway will run from Moreh in Manipur to Mae Sot in Thailand via Myanmar
and represents a significant step in establishing connectivity between India and Southeast
Asian countries.
! Bangladesh, Bhutan, India and Nepal (BBIN) have signed a pact for the movement of goods
and vehicles among them. The pact, which was signed last year, is awaiting internal clearances
of some members.
CONCLUSION
BIMSTEC has the potential to become the enabler of regional cooperation. The only thing needed
is to evolve BIMSTEC as an organisation that works through a bottom-up rather than a top-down
approach. Also, the organisation needs to focus on fewer priority areas for purpose of better
implementation. It needs to undertake projects that are economically feasible and result-driven.
This would add to the credibility of BIMSTEC.
Finally, since the BIMSTEC region is notable for its diversity, the member states need to build
on the regional synergies by following people-centric approach and work towards utilising the
available resources in the most optimal manner. This would help build a stronger and a more
dynamic BIMSTEC.
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Indian Ocean Region and World Affairs
CONTEXT:
At recently concluded Raisina Dialogue, Australia’s foreign minister highlighted Indian Ocean as a
key emerging region in world affairs and strategic priority for Australia and India.
ABOUT
Among minister’s announcements was $25 million for a four-year infrastructure program in South
Asia (The South Asia Regional Infrastructure Connectivity initiative, or SARIC), which will primarily
focus on the transport and energy sectors.
She also pointed to increasing defence activities in the Indian Ocean, noting that in 2014, Australia
and India had conducted 11 defence activities together, with the figure reaching 38 in 2018.
Furthermore, Australia’s 2017 Foreign Policy White Paper seeks to support IORA in areas such as
maritime security and international law.
BACKGROUND
The Indian 0cean region comprises of the ocean itself and the countries that border it. These
include Australia, India, Indonesia, Bangladesh, Madagascar, Somalia, Tanzania, South Africa, the
United Arab Emirates and Yemen.
How Indian Ocean region is an emergent power in world affairs?

Demographically, the average age of people in the region’s countries is under 30, compared to 38
in the US and 46 in Japan. The countries bordering the Indian Ocean are home to 2.5 billion people,
which is one-third of the world’s population.
Economically, some 80% of the world’s maritime oil trade flows through three narrow passages of
water, known as choke points, in the Indian Ocean. This includes the Strait of Hormuz – located
between the Persian Gulf and the Gulf of Oman – which provides the only sea passage from the
Persian Gulf to the open ocean.
The economies of many Indian Ocean countries are expanding rapidly as investors seek new
opportunities. Bangladesh, India, Malaysia and Tanzania witnessed economic growth in excess of
5% in 2017 – well above the global average of 3.2%.
India is the fastest growing major economy in the world. With a population expected to become the
world’s largest in the coming decades, it is also the one with the most potential.
Politically, the Indian Ocean is becoming a pivotal zone of strategic competition. China is investing
hundreds of billions of dollars in infrastructure projects across the region as part of its One Belt
One Road initiative.
For instance, China gave Kenya a US$3.2 billion loan to construct a 470 kilometre railway (Kenya’s
biggest infrastructure project in over 50 years) linking the capital Nairobi to the Indian Ocean port
city of Mombasa.
Chinese state-backed firms are also investing in infrastructure and ports in Sri Lanka, the Maldives,
and Bangladesh. Western powers, including Australia and the United States, have sought to counter-
balance China’s growing influence across the region by launching their own infrastructure funds
– such as the US$113 million US fund announced last August for digital economy, energy, and
infrastructure projects.
Challenges:
In security terms, piracy, unregulated migration, and the continued presence of extremist groups in
Somalia, Bangladesh and parts of Indonesia pose significant threats to Indian Ocean countries.
Ecologically, the reefs, mangroves, and marine species that live in the Ocean are under imminent
threat. According to some estimates, the Indian Ocean is warming three times faster than the
Pacific Ocean.
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Overfishing, coastal degradation, and pollution are also harming the ocean. This could have
catastrophic implications for the tens of millions of fishermen dependent on the region’s marine
resources and the enormous population who rely on the Indian Ocean for their protein.
Way forward:
The Indo-Pacific is a natural region. It is also home to a vast array of global opportunities and
challenges. Its future is intertwined and heavily dependent on how nations cooperate on these
challenges and opportunities.
As of today, there is a logical leadership role for India, being the largest player in the region.
India could focus more on how to promote the Indian Ocean. Notwithstanding India’s energy and
organisational growth, Indian Ocean cooperation is weak relative to Atlantic and Pacific initiatives.
Other countries in the region too need to proactively collaborate to build economic strength and
address geopolitical risks in the region.
Thus, India must continue to strengthen its ties in the region – such as with Australia and Indonesia
– and also build new connections, particularly in Africa.
Although, more than previous Indian Prime Ministers, Modi has travelled up and down the east coast
of Africa to promote cooperation and strengthen trade and investment ties, and has articulated
strong visions of India-Africa cooperative interest.
BRICS
INTRODUCTION
BRICS brings together five major emerging economies Brazil, Russia, India, China and South Africa,
comprising 43% of the world population, having 30% of the World GDP and 17% share in the world
trade.
As a formal grouping, BRIC started after the meeting of the Leaders of Russia, India and China in
St. Petersburg on the margins of G8 Outreach Summit in 2006. The grouping was formalized during
the 1st meeting of BRIC Foreign Ministers on the margins of UNGA in New York in 2006. The 1st
BRIC Summit was held in Yekaterinburg, Russia, on 16 June 2009.
It was agreed to expand BRIC into BRICS with the inclusion of South Africa at the BRIC Foreign
Ministers’ meeting in New York in September 2010. Accordingly, South Africa attended the 3rd
BRICS Summit in Sanya, China on 14th April 2011.
The agenda of BRICS meetings has considerably widened over the years to encompass topical
global issues, starting essentially with economic issues of mutual interest.
BRICS cooperation has two pillars –
Consultation on issues of mutual interest through meetings of Leaders as well as of Ministers
of Finance, Trade, Health, S&T, Education, Agriculture, Communication, Labour, etc. and
Practical cooperation in a number of areas through meetings of Working Groups/Senior
Officials.
The BRICS members are all developing or newly industrialized countries and all five are G-20
members. The regular annual summits are held with the leaders of member countries on the
margins of G-20 Summits.
Recent initiatives of BRICS bank with respect to India

Renewable energy projects
! The New Development Bank (NDB) of BRICS countries has handed out $250 million to India’s
Canara Bank for renewable energy projects as part of its first set of loans amounting to more
than $800 million.
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MOU OF ICICI with BRICS bank
! Private sector lender ICICI Bank has tie up with the BRICS Grouping-promoted New Development
Bank (NDB) for a partnership in bond issuances, co-financing, treasury management and human
resources. The agreement creates a platform for sharing knowledge and deepening network
connectivity between NDB and ICICI Bank. The agreement will help NDB in exploring rupee-
denominated bonds in the domestic and international markets and make both the lenders
collaborate to fund development projects in the country. ICICI Bank and NDB will also leverage
a mutually beneficial partnership in other areas such as treasury risk management, account and
cash management services and human resource development.
BRICS to set up Credit Rating Agency

BRICS comprises of five emerging economies Brazil, Russia, India, China and South Africa. During
the 8th BRICS summit held in Goa, India has announced setting up of an independent BRICS Rating
Agency in its efforts to challenge western hegemony in the world of finance.
What are the reasons behind its set up?
At present, western developed countries have hegemony in the world of finance. Three global
agencies (S&P, Fitch, Moody’s) based in western countries account for 90% of the rating market.
Western rating firms are biased as they are optimistic on developed nations and pessimistic on the
developing ones. They rate relatively low to the emerging economies. For e.g. Russia in particular
and China have been perturbed by the western ratings firms. The western firms had deliberately
lowered Moscow’s rating after the Ukraine crisis.
Features of the credit rating agency

The BRICS Rating Agency will be based on market-oriented principles to strengthen the global
governance architecture.
It will be launched as per the shared vision of the BRICS nations for institution-building to transform
global financial architecture based on the principles of fairness and equity.
It will assist BRICS and other countries to rate infrastructure and sustainable projects in the
emerging economies. Thus, it will further bridge the gap in global financial architecture.
BRICS Summit 2017

Given the emerging challenges of global peace and security and for sustainable development the
BRICS nations has realized to further strengthen the BRICS solidarity and cooperation based on our
common interests and strategic partnership in the spirit of openness, solidarity, equality, mutual
understanding, inclusiveness and mutually beneficial cooperation.
Thus building upon the results and outcomes of the Goa BRICS Summit 2016, the current BRICS
summit at Xianmen China was aimed at productive discussions and positive outcomes that will
support the agenda of a stronger BRICS partnership under the chairmanship of China.
During the visit PM Modi held a series of bilateral meetings including with Russian President
Vladimir Putin and other BRICS leaders. He also met the leaders of countries like Egypt who were
invited by China as part of the outreach exercise. China invited Egypt, Kenya, Tajikistan, Mexico and
Thailand as guest countries for the Summit. Considering the bilateral relations with China heated
up recently and both the nations managed to end the 73-day long Doklam standoff, the BRICS
summit holds special importance.
BRICS nations signed 4 documents that aim at improving and broadening cooperation mechanism
and promoting industrial and technical upgradation to enhance economic complementarities. The
documents signed are:
! BRICS Action Agenda on Economic and Trade cooperation.
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! BRICS Action Plan for Innovation Cooperation (2017 - 2020) – It aims to facilitate innovation
driven development for sustainable development. Strategic framework of BRICS Custom
Cooperation is meant for mutual sharing of information, recombination of customs control and
mutual assistance in enforcement as guiding principles.
! Strategic Framework of BRICS Customs Cooperation
! Memorandum of Understanding between the BRICS Business Council and the New
Development Bank of Strategic Cooperation – It’s for Economic and Financial research
activities in local markets, knowledge exchange financial institution cooperation and human
resource development.
BRICS Achievements
After 10 years, BRICS has developed into a brand-new power promoting the constructive reform of
global governance; and its main representatives have defended the interests of emerging market
economies and developing countries, creating a golden decade.
BRICS nations have achieved plentiful and substantial results in promoting global governance,
pragmatic cooperation, people-to-people exchanges, as well as mechanism building.
BRICS nations have constantly driven the reform and innovation of the global political and
economic governance system, and helped steer it in a fairer, more rational and more efficient
development direction.
By means of mechanisms like meetings on security issues, counter-terrorism, and network
security, BRICS nations regularly exchange views, coordinate positions and make joint statements
on major international and regional issues of common concerns.
BRICS firmly adheres to multilateralism, and have enhanced communication and coordination
under the major international bodies and cooperation frameworks, and contributed to building an
open world economy and perfecting global economic governance.
Mapping out a new blueprint, BRICS countries have become a significant constructive force
in instilling increased democracy in international relations, propelling international economic
globalization and promoting cultural diversity.
Pragmatic economic and trade cooperation has laid a foundation for BRICS cooperation. BRICS
countries have formed an important guiding principle – the Strategy for BRICS Economic
Partnerships with rich experience in economy and trade, finance, science and technology, traffic,
energy and mining industry.
BRICS’s economic aggregate has increased from 12 percent to 23 percent of the world economy,
and their aggregate trade volume has increased from 11 percent to 16 percent of the world total.
Its voting share in the World Bank rose to 13.24 percent, and its share in the International Monetary
Fund (IMF) climbed to 14.91 percent, and its contribution rate to world economic growth has now
exceeded 50 percent.
Financial cooperation has become a highlight of BRICS cooperation during its first decade. BRICS
nations have successfully pushed for reforms to the Bretton Woods system, the World Bank and
the IMF.
More importantly, the New Development Bank is the first multilateral financing institution
established by developing countries, supporting infrastructure construction and sustainable
development in both BRICS nations and other emerging market economics and developing
countries.
People-to-people exchanges and education cooperation have consolidated friendship among
peoples. An agreement on cultural cooperation was signed in 2015, spawning a host of colorful
cooperative cultural activities in art, sports, media, think tanks and medicine. Moreover, BRICS
nations held athletic meetings, film festivals, and cultural festivals.
BRICS also gradually explored new ways to build extensive partnerships. South Africa’s joining
realized the first round of expansion, embodying the openness and inclusiveness of BRICS
cooperation. Consistently committed to carrying out dialogues and cooperation with emerging
markets and developing countries and expanding its circle of friends, BRICS works to solidify its
friendships with these countries.
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Asian Infrastructure Investment Bank
INTRODUCTION
AIIB is a multilateral development bank initiated by China, which aimed to provide financial support
to infrastructural projects in Asia-Pacific region.
It was officially established in December 2015 and opened for business in January 2016. It has
headquarters located in Beijing, China.
It has currently 84 approved members including India. It has been started with authorised capital
of US $100 billion.
China is the largest shareholder of AIIB with 26.06% voting shares. India hold’s 7.5% voting share
and is second largest shareholder followed by Russia, Germany and South Korea.
Objectives
The main objective of AIIB to invest in sustainable infrastructure and other productive sectors to
connect people, services and markets that over time will impact the lives of billions and build a
better future. It has emphasized on three areas of particular relevance, which have now evolved into
the Bank’s emerging thematic priorities. They are:
! Sustainable Infrastructure: Promoting green infrastructure and supporting countries to meet
their environmental and development goals.
! Cross-country Connectivity: Prioritizing cross-border infrastructure, ranging from roads and
rail, to ports, energy pipelines and telecoms across Central Asia, and the maritime routes in
South East and South Asia, and the Middle East, and beyond.
! Private Capital Mobilization: Devising innovative solutions that catalyze private capital, in
partnership with other MDBs, governments, private financiers and other partners.
Why AIIB has been Set up?

The AIIB has been seen by the westerners, as a potential competitor to global financial institutions
such as ADB and the US-led IMF and World Bank. But there are some reasons that caused China to
take the initiative to set up AIIB.
There has been greater failure of existing financial institutions to reform the governance structure
and weightage according to the demands of the growing economies.
China has been consistently demanding for raise of resources, voting shares and focus on
infrastructure at IMF and WB. But these were stalled by the dominating countries like USA and
Japan.
A High-Level Commission on Modernization of World Bank Group Governance has been constituted
under chairmanship of Ernesto Zedillo, former President of Mexico.
The Zedillo report is quite critical of the current World Bank arrangement of a resident board
that approves all loans which is responsible for the slowness of the project preparation, poor
performance and makes the bank less efficient.
In view of this, AIIB have instituted with non-resident board that meets periodically in Beijing and
also by videoconference to ensure efficient, transparent and quick decision making and approval
process of projects. It has also incorporated the environmental and social safeguards unlike the
Bretton wood’s institutions while approving the projects.
In Geo-political scenario, although originally conceived of as an institution from Asia, as its
name suggests, AIIB has expanded its mandate to involve non-Asian countries as well. Out of 84
countries, 20 are non-Asian members, including five members from the G-8 and three permanent
members of the UNSC. The decision of three leading European countries (United Kingdom, Germany
and France) to become members made AIIB secure the tag of being a truly global institution,
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signifying that global financial power is rapidly moving eastward with China forming the core. But the
US sees the establishment of the AIIB as an attempt by China to pull South- East Asian countries
closer to its orbit and a soft-power play that promises economic benefits while refurbishing its
image among its Asian neighbours. This is despite the fact that neither the World Bank nor the ADB
are in a position to cater to the rising demands of Asian countries for infrastructure funding.
AIIB vs WB, IMF and ADB

With the $100 billion capital it is quite smaller than that of the $165 billion Asian Development Bank
(ADB), 2/3rd of IMF and half of the World Bank.
Unlike the Bretton-Woods institutions, that service all countries with development problems and
the management of temporary balance of payments problems, the goals of the AIIB are much more
limited. This is straightforward lending bank and specifically infrastructure lending institution.
This is a much more specialized task as compared to managing global financial frictions and
development. Any institution with these goals requires much greater membership and acceptability—
which IMF and the World Bank have.
The corollary is clear, with greater scope of lending by China comes much greater political leverage.
Unlike the IMF and WB, no country in the AIIB has veto rights. The voting rights are based on GDP
adjusted for Purchasing Power Parity (PPP).
AIIB has two features which distinguish it from many other international financial institutions, and
also allow China to gain confidence internationally.
! One, it does not have a permanent board of directors.
! And two, in contrast to the existing international banks, AIIB has a flexible investment model.
These features make AIIB a hassle free, non-bureaucratic institution. Many, especially Japan
however see these as potential weaknesses of the bank, which offer an advantage to China to
influence the decision-making process.
AIIB’s Flipside
A review of AIIB’s signed contracts and priority areas reveals that the bank is systematically
promoting China’s economic interests in Asia and beyond, and principally complementing the
Beijing’s Silk Road Economic Belt (SREB) and Maritime Silk Road (MSR), the two core aspects of
OBOR. ‘One Belt’, which supplements SREB, implies land corridor connectivity from China to Central
Asia and thence to West Asia and Europe.
China is the AIIB’s single largest contributor and holds around 28% voting share, giving it veto
power over major decisions at the AIIB (as major bank decisions require at least 75% support). The
initial projects approved by the AIIB in 2016 were granted to China’s close allies—mainly in Central
Asia and Pakistan, as well as Oman, which was a strategic centre of trade and exchange along the
historic maritime Silk Road.
For instance, the National Motorway M-4 Gojra-Shorkot Section Project supplements the China-
Pakistan Economic Corridor (CPEC).
The Trans Anatolian Natural Gas Pipeline project (TANAP) which will transport natural gas from
Azerbaijan’s Shah Deniz-2 gas field as well as from other Caspian Sea ports to Turkey and Europe.
These projects are funded by AIIB and with other financial institutions that supplements the China’s
outreach to Turkey and Europe.
India and AIIB

With 7.5% of voting share and second largest share holder, India’s participation in the AIIB as a
founding member undoubtedly clarified New Delhi’s open approach to the bank as well as its
determination not to be left out of this newly established development bank with its special focus
on infrastructure investment.
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India was one of the first countries to agree to join AIIB, which was a striking reference for many
countries that were initially hesitant to join the bank. 12th Five year plan says that we need $1
trillion dollar investment in infrastructure. While ambitious programmes like Make in India and ease
of doing business are stressing for infrastructure development.
However, given New Delhi’s ‘political reservation’ to China’s OBOR, it needs to be seen how India
would react to projects within the AIIB that facilitate Beijing’s ‘Belt & Road’ initiative. In fact, Beijing
had formally invited India to join and support the OBOR in 2014 during the Special Representatives
(SRs) level dialogue. Since then, the Chinese leadership has been constantly encouraging India
to politically endorse OBOR. Most of the regional or neighbouring countries around India have
extended their support for China’s OBOR, while New Delhi has maintained a strategic silence so far.
Beijing’s promotion of OBOR projects within the bank would certainly test the character of China’s
and India’s roles within AIIB.
CONCLUSION
In the scenario of the rising infrastructure needs, the AIIB will play an important role in terms of
closing the widening gap in regional development financing. It is believed that establishment of
the AIIB is a step towards a multi-polar financial architecture that is no longer only shaped by US-
dominated institutions. Not only does it reinforce the already existing trend to a regionalization of
international financial governance, but it also puts increased pressure on the World Bank and the
IMF to implement internal reforms.
The initial success of AIIB is a diplomatic victory for China over the adamant nature of global
financial institutions. But this will depend on the demonstration of its high governance and decision
taking standards when it makes lending decisions in the short to medium-term.
There are apprehensions about the China’s capability to block major decisions of lending as a
strategic share holder and no clear principles laid down to provide resources, it’s allocation and
lending norms. If it not provides transparency, equal rights and bridge the gaps which already
existed in other financial institutions, it may likely end up with one more robust and inclusive set of
financial institution among them.
Trans Pacific Partnership (TPP)

INTRODUCTION
It involves 11 countries: Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand,
Canada, Mexico, Chile and Peru.It includes all Pacific Rim G-20 countries with the exception of
Russia, Indonesia and China along with a few smaller countries like, Philippines, Taiwan, Thailand,
Ecuador, Colombia, etc.
The agreement, one of the most ambitious Free Trade Agreements ever signed, aims at slashing
tariffs on most goods traded between these countries, and the creation, over time, of a unified
market like in Europe. The scale would be much bigger - the 12 countries are together home to
nearly 800 million people - close to double the EU’s single market - and already account for 40% of
world trade.
The background of this agreement was started a decade ago when 4 nations -Brunei, Chile, New
Zealand and Singapore - signed a trade agreement.
Further nearly 5 million American manufacturing jobs - one out of every 4 - have been lost since
implementation of the North American Free Trade Agreement (NAFTA) and the World Trade
Organization (WTO). Since NAFTA, over 60,000 American manufacturing facilities have closed.
The TPP would replicate and expand on the NAFTA model.
The US administration under President Barack Obama seems to have prioritized the TPP as the
economic component of its “rebalancing” to Asia strategy.
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Key Features
Comprehensive market access: The TPP eliminates or reduces tariff and non-tariff barriers across
substantially all trade in goods and services and covers the full spectrum of trade, including
goods and services trade and investment, so as to create new opportunities and benefits for our
businesses, workers, and consumers.
Regional approach to commitments: The TPP facilitates the development of production and
supply chains, and seamless trade, enhancing efficiency and supporting our goal of creating and
supporting jobs, raising living standards, enhancing conservation efforts, and facilitating cross-
border integration, as well as opening domestic markets.
Addressing new trade challenges: The TPP promotes innovation, productivity, and competitiveness
by addressing new issues, including the development of the digital economy, and the role of state-
owned enterprises in the global economy.
Inclusive trade: The TPP includes new elements that seek to ensure that economies at all levels of
development and businesses of all sizes can benefit from trade. It includes commitments to help
small- and medium-sized businesses understand the Agreement, take advantage of its opportunities,
and bring their unique challenges to the attention of the TPP governments. It also includes specific
commitments on development and trade capacity building, to ensure that all Parties are able to
meet the commitments in the Agreement and take full advantage of its benefits.
Platform for regional integration: The TPP is intended as a platform for regional economic
integration and designed to include additional economies across the Asia-Pacific region.
Intellectual property rights: The TPP goes somewhat beyond the WTO’s TRIPS agreement. It requires
penalties for the unlawful commercial exploitation of copyrighted work, prescribes measures to
reduce the illegal online distribution of copyrighted material and strengthen copyright terms.
Impact: India and World

Vietnam is expected to gain at the expense of India in the garments business in the US market, as it
will have zero-duty access to the US for textiles as against the 14-30% duties that Indian exporters
will have to pay.
A yarn forward provision in the TPP, which requires clothing to be made from yarn and fabric
manufactured in one of the free trade partners to qualify for duty-free treatment under the trade
pact, could impact yarn and fabric exports from India to countries such as Vietnam.
The Peterson Institute for International Economics (PIIE) in a report released in September said
that if China and the rest of the APEC forum join a 2nd stage of the TPP that continues to exclude
India, India’s annual export losses would approach $ 50 billion.
WTO negotiations have been plagued by missed deadlines and a lack of consensus. As a forum, the
WTO is clearly crumbling, considering there are 2 other large regional trade agreements currently
under negotiation - the Transatlantic Trade and Investment Partnership (TTIP) between the US and
the European Union, and the Regional Comprehensive Economic Partnership (RCEP) between the
Association of Southeast Asian Nations (ASEAN) and its 4 free-trade partners, including China and
India.
Under World Bank Publication Global Economic Prospects 2016, it has been noted that GDP gain
for TPP countries would be in limited range by 2030. However gain for small and open countries
like Malaysia & Vietnam is on higher side (10 and 8% respectively). But for NAFTA countries (as
all are members under TPP) GDP gain is around 0.6% because trade represents a modest share of
GDP and because existing barriers to their trade which is already mostly among them) are already
low for the most traded commodities.
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Regional Comprehensive Economic
Partnership and India
Regional Comprehensive Economic Partnership (RCEP) is a proposed Free Trade Agreement (FTA)
between the 10 member states of the Association of Southeast Asian Nations (ASEAN) Brunei,
Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand,
Vietnam) and the six states which include India, China, Australia, Japan, South Korea and New
Zealand.
RCEP countries have a total population of more than 3 billion, a total GDP of around $US23 trillion
(2015 IMF figures), and they account for about 27% of global trade (2014 UNCTAD figures), and
55% of our goods exports (2015 figures).
The core areas of negotiation include trade in goods, trade in services, investment, economic and
technical cooperation, intellectual property, competition, dispute settlement and other relevant
issues. Hence, RCEP is envisaged to be a modern, comprehensive, high-quality and mutually
beneficial economic partnership agreement.
What are the objectives of RCEP?

Guiding Principles and Objectives for Negotiating the Regional Comprehensive Economic
Partnership are:
! Trade in Goods: The RCEP will aim at progressively eliminating tariff and non-tariff barriers on
substantially all trade in goods in order to establish a free trade area among the parties. Tariff
negotiations will be conducted on a comprehensive basis.
! Trade in services: The RCEP will be comprehensive, of high quality and substantially eliminate
restrictions and/or discriminatory measures with respect to trade in services between the RCEP
participating countries.
! Investment: The RCEP will aim at creating a liberal, facilitative, and competitive investment
environment in the region. Negotiations for investment under the RCEP will cover the four pillars
of promotion, protection, facilitation and liberalization.
! Economic and technical cooperation: Economic and technical cooperation under the RCEP will
aim at narrowing
! Intellectual property: The text on intellectual property in the RCEP will aim to reduce IP-related
barriers to trade and investment by promoting economic integration and cooperation in the
utilization, protection and enforcement of intellectual property rights.
! Competition: Provisions on competition will form the basis for parties to cooperate in the
promotion of competition, economic efficiency, consumer welfare and the curtailment of anti-
competitive practices while cognizant of the significant differences in the capacity and national
regimes of RCEP participating countries in the area of competition.
! Dispute settlement: The RCEP will include a dispute settlement mechanism that would provide
an effective, efficient and transparent process for consultations and dispute resolution. The RCEP
negotiations will consider including other issues covered by FTAs among RCEP participating
countries, which may be identified and mutually agreed in the course of negotiations, and take
into account new and emerging issues relevant to business realities.
Significance of RCEP for IndiaSignificance of RCEP for India

From India’s point of view, the RCEP presents a decisive platform which could influence its strategic
and economic status in the Asia-Pacific region and bring to fruition its Act East Policy.
It would be the world’s largest trading bloc covering a broad spectrum of issues such as trade in
goods, services, investment, competition, intellectual property rights, and other areas of economic
and technical cooperation. Together, the RCEP group of countries accounts for a third of the
world’s gross domestic product, and 27.4% and 23.0% of the world’s goods and services trade,
respectively.
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The RCEP agreement would complement India’s existing Free Trade Agreements with the
Association of South East Asian Nations and some of its member countries, as it would deals with
Japan and South Korea.
RCEP will facilitate India’s integration into sophisticated “regional production networks” that make
Asia the world’s factory. The RCEP is expected to harmonize trade-related rules, investment and
competition regimes of India with those of other countries of the group. Through domestic policy
reforms on these areas, this harmonization of rules and regulations would help Indian companies
plug into regional and global value chains and would unlock the true potential of the Indian
economy. There would be a boost to inward and outward foreign direct investment, particularly
export-oriented FDI.
India enjoys a comparative advantage in areas such as information and communication technology,
IT-enabled services, professional services, healthcare, and education services. In addition to
facilitating foreign direct investment, the RCEP will create opportunities for Indian companies to
access new markets.
India may emerge as an attractive investment destination for China. To offset the increasing labour
costs, Chinese firms have been relocating labour-intensive manufacturing to Vietnam, Cambodia,
Thailand and Indonesia. By setting up manufacturing joint ventures in India, China can effectively
reach India’s domestic market and also a large European market once India signs an FTA with the
European Union. If this story plays out, India’s trade deficit with China will come down as well.
Multilateral Negotiations for a Nuclear Weapons Ban

Present multilateral disarmament treaty
Comprehensive Nuclear-Test-Ban Treaty (CTBT): The CTBT prohibits nuclear weapon test
explosions. It has not yet entered into force, since three of the 44 required states have yet to sign
it and five to ratify it.
International Convention on the Suppression of Acts of Nuclear Terrorism: The Convention covers
a broad range of acts and possible targets, including nuclear power plants and nuclear reactors. It
criminalizes the planning, threatening, or carrying out acts of nuclear terrorism.
Treaty Banning Nuclear Tests in the Atmosphere, in Outer Space and Under Water (Partial Test
Ban Treaty) (PTBT): The PTBT requires parties to abstain from carrying out nuclear explosions in
any environment where such explosions cause radioactive debris outside the limits of the State
that conducts an explosion.
Treaty on the Non-Proliferation of Nuclear Weapons (NPT): The NPT is a treaty aimed at limiting
the spread of nuclear weapons through the three elements of non-proliferation, disarmament, and
peaceful use of nuclear energy.
Though there are existing mechanisms to deal with nuclear non-proliferation, but their working has
not been satisfactory. Non-nuclear states have accused nuclear powers of blocking efforts in this
direction and therefore have assumed responsibility on their own.
No nuclear weapons state is ready now to negotiate elimination of its nuclear arsenal.
They believe that any progress must be made on an incremental basis.
Nuclear powers feel nuclear weapons are necessary for balance of power and maintaining
deterrence and therefore don’t want to do away with nuclear weapons.
All these were reflected in nuclear powers boycotting the negotiations. For its part, the United States
actively opposed the resolution to begin the negotiation and pressured its allies (who benefit from
the U.S. nuclear umbrella) to do the same. The growing polarization between nuclear weapons
states and non-nuclear weapons states is one of the many challenges facing the nuclear non-
proliferation regime.
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The Treaty on the Prohibition of Nuclear Weapons was adopted by the conference, formally closing
two rounds of negotiations that ran from 27-31 March and 15 June to 7 July. 122 countries voted in
favor of the treaty; The Netherlands was the only country to vote against the treaty and Singapore
abstained from the vote. The treaty opens for signature on 20 September at the 72ndsession of the
UN General Assembly.
Immediately following the vote, the Unites States, the United Kingdom, and France released a joint
statement declaring that they “do not intend to sign, ratify or ever become party” to the treaty.
They stated that the treaty ignores the current international security environment, is incompatible
with nuclear deterrence, and threatens to severely undermine NPT and the global non-proliferation
regime.
Objective of talks:
The nuclear weapons ban talks are the fulfillment of a long-standing demand that all countries
deserve equal security. The driving force for the demand for a nuclear weapon-free world is a simple
humanitarian impulse, the love and compassion for other human beings.
It declared that it is illegal for any country to produce, possess, stockpile, deploy, and threaten to
use, or use nuclear weapons.
Salient features of the treaty

States-parties are prohibited to use, threaten to use, develop, produce, manufacture, acquire,
possess, stockpile, transfer, station, or install nuclear weapons or assist with any prohibited
activities.
Signatories are barred from transferring or receiving nuclear weapons and other nuclear explosive
devices, control over such weapons, or any assistance with activities prohibited under the Treaty.
States are also prohibited from using or threatening to use nuclear weapons and other nuclear
explosive devices.
Lastly, States Parties cannot allow the stationing, installation, or deployment of nuclear weapons
and other nuclear explosive devices in their territory. In addition to the Treaty’s prohibitions, States
Parties are obligated to provide victim assistance and help with environmental remediation
efforts.
A state-party must declare, when joining the treaty, whether it has eliminated a previous nuclear
weapons program, currently has nuclear weapons, or holds other countries’ nuclear weapons on its
territory. If a state has another country’s nuclear weapons on its territory when it signs the treaty, it
must remove them. If it has its own nuclear weapons, it must eliminate them.
Non-nuclear-weapon states are required to have, at a minimum, a comprehensive safeguards
agreement with the International Atomic Energy Agency (IAEA) “without prejudice” to any future
additional agreements.
Any State Party may propose an amendment to the Treaty at any time after its entry into force.
The UN Secretary-General shall circulate the proposal to all States Parties for consideration. If a
majority of States Parties register their support for the proposal within 90 days of circulation, it will
be considered at the next meeting of States Parties or review conference. The amendment may be
adopted by a positive vote of two-thirds of States Parties.
There are two ways for a nuclear-weapon state to accede to the treaty and eliminate its nuclear
weapons: it can join the treaty and then destroy its nuclear weapons or destroy its nuclear weapons
and then join the treaty. States that “destroy and join” must cooperate with a “competent international
authority” designated by the treaty to verify dismantlement. States that “join and destroy” must
immediately remove nuclear weapons from operational status and submit a time-bound plan for
their destruction within 60 days of joining the treaty.
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The treaty obligates states-parties to provide victim assistance and environmental remediation to
those affected by nuclear weapons use and testing.
India’s stand
India also boycotted the negotiations saying India’s geographical position is vulnerable. It is
sandwiched between China and Pakistan and both are nuclear state and hostile towards India,
which create constant threat for nuclear attack on India.
India’s main argument was that nuclear disarmament talks should only happen at the Conference
on Disarmament in Geneva, because the conference works by consensus, which means any state
can block progress. India used this feature to try to block the Comprehensive Nuclear Test Ban
Treaty in 1996, and Pakistan now uses this power to stop talks on a treaty to ban the production of
fissile materials for nuclear weapons.
Possible gains:
If the negotiation produces a treaty, it would have little practical effect without the participation
of nuclear weapons states. Such a treaty, however, could increase the political and diplomatic
pressure on nuclear weapons states to pursue nuclear disarmament more actively.
However, the possible gains will emerge only when the negotiating states can stay united during
the course of negotiations, which remains in doubt as some differences cropped up during
negotiations.
The participating states generally agreed on several core prohibitions to be included in the treaty,
such as the prohibition of use, possession, acquisition, transfer, and deployment of nuclear
weapons. They disagreed over other provisions.
Some states advocated for the prohibition of the threat of use of nuclear weapons, claiming that
it would serve to delegitimize nuclear deterrence doctrine. Others thought this prohibition was
unnecessary, as the U.N. Charter already outlaws the threat of use of force. Moreover, a ban on the
use of nuclear weapons would also ban the threat of their use. Similar differences also emerged on
the issue of transit of nuclear weapons, their testing.
The attempt at the UN to ban atomic weapons is based on the premise that all countries deserve
equal security. Decision for outlawing nuclear weapons heralds an end to two decades of paralysis
in multilateral nuclear disarmament efforts. The negotiations have given hope to the humanity that
they can see a world without the scourge of nuclear weapons, but the path remains rocky.
Wassenaar Arrangement and India

WHAT IS WASSENAAR ARRANGEMENT?
The Wassenaar Arrangement was established to contribute to regional and international security
and stability by promoting transparency and greater responsibility in transfers of conventional arms
and dual-use goods and technologies, thus preventing destabilizing accumulations.
It was established in 1996 in Wassenaar, the Netherlands, which is near The Hague.
Members: 41 member states.
! Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania,
Luxembourg, Malta, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Republic of
Korea, Romania, Russian Federation, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland,
Turkey, Ukraine, United Kingdom and United States.
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The Wassenaar Arrangement plays a significant role in promoting transparency and greater
responsibility in transfers of conventional arms and dual-use goods and technologies.
Its member countries are required to ensure through their national policies that transfers of these
items do not contribute to the development or enhancement of military capabilities which undermine
these goals. The aim is also to prevent the acquisition of these items by terrorists.
They periodically exchange detailed and specific information on transfer or denial of items or
technology, both conventional and nuclear capable, to countries outside the grouping. This is done
through maintenance and updating of detailed lists, of dual use and munitions that are considered
of militarily significant.
Other Multilateral Control Regime

Multilateral Regimes are groups that are independent of the United Nations that states may use to
organize their export control programs.
The other three major Multilateral Non-proliferation Export Control Regimes are:
! The Australia Group: Ensuring would-be proliferators are not able to obtain necessary inputs
for chemical and biological weapons through the development of ways to minimize export and
transshipping risks. Licensing authority over a wide range of chemical weapons precursors is one
way to reduce risk. Members require licenses for the export of dual-use chemical manufacturing
facilities, equipment, and related technology, plant pathogens, animal pathogens, biological
agents, and dual-use biological equipment. These items form the basis for the Group’s common
control lists.
! Missile Technology Control Regime: Minimizing the risk of the proliferation of WMD delivery
systems through the adherence of member states to common export policies and guidelines.
Specifically, the aim of the MTCR is to restrict the proliferation of missiles, complete rocket
systems, unmanned air vehicles, and related technology for those systems capable of carrying
a 500 kilogram payload at least to 300 kilometers, as well as systems intended for the delivery
of weapons of mass destruction. It achieves its goals through export controls and licensing,
relative information exchange between members, and outreach to non-members.
! Nuclear Suppliers Group: Contributing to the nonproliferation of nuclear weapons through the
implementation of guidelines for nuclear and related exports. Forty member countries have
developed export guidelines, which aim to ensure that nuclear trade for peaceful purposes does
not contribute to the proliferation of nuclear weapons or other nuclear explosive devices. These
guidelines cover nuclear material, technology and equipment, which may be considered of dual-
use.
India and Wassenaar Arrangement

To be admitted to the Arrangement, states must meet certain criteria, including acquiescence to a
range of global nonproliferation treaties, including the Nuclear Nonproliferation Treaty (NPT).
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India meets the Membership Criteria:

India has impeccable non-proliferation record, which stood it in good stead during the deliberations
on NSG waiver.
India had passed the Weapons of Mass Destruction and their Delivery Systems (Prohibition of
Unlawful Activities) Act in June 2005, fulfilling its obligations under UNSC Resolution 1540, which
required UN member states to enact domestic legislation to better account for WMD materials
and technology.
In the Joint Statement issued in 2010 between India and US, the US stated that in its view, “India
should qualify for membership in the Australia Group and the Wassenaar Arrangement according
to existing requirements once it imposes export controls over all items on these regimes’ control
lists.”
India approved SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies)
items, mandatory under the Wassenaar Arrangement. Through the revised list of items, India also
seeks to send a message about its larger commitment to non-proliferation.
India’s admission to the Wassenaar Arrangement was in part facilitated by China’s non-
participation in the Arrangement. (Beijing does informally maintain export control standards
largely in line with those required by the Arrangement.) In 2016, China opposed India’s accession
to the Nuclear Suppliers Group, frustrating New Delhi, which had invested considerable diplomatic
capital into its membership campaign. Membership in the group is by consensus.
Benefits of Wassenaar Arrangement’s membership:

Access to dual-use technologies: Membership of the Wassenaar Arrangement would open
up access to dual-use technologies - that can be used for both civil and military purposes - in
aerospace, telecommunications, navigation, computing, electronics, sensors and lasers.
India will be able to more easily access dual use technologies and materials and military equipment
that are proscribed for non-participating members. India will also be able to sell its nuclear
reactors and other materials and equipment indigenously produced without attracting adverse
reactions. It will also be in a better position to collaborate with other countries in developing such
capabilities.
Boost to NSG membership: India had been making efforts to be a part of the WA, Nuclear Suppliers
Group (NSG), the Australia Group and the MTCR ever since India agreed to a Civil Nuclear Deal
with the US in July 2005 in a joint statement by Former Indian Prime Minister Manmohan Singh
and then US President George W Bush.
However, whether this membership boosts India’s application at the 48-member NSG remains to
be seen.
India’s formal entry into this group would further boost its image in the international arena.
CONCLUSION
The Wassenaar Arrangement is a stepping stone for India to build up its capabilities as a counter-
weight to countries such as China and its allies like Pakistan who are serious challengers to India
as a power in South Asia.
India Admitted to Australia Group

What is Australia Group (AG)?
The Australia Group (AG) is an informal forum of countries which, through the harmonisation of
export controls, seeks to ensure that exports do not contribute to the development of chemical or
biological weapons.
Coordination of national export control measures assists Australia Group participants to fulfil
their obligations under the Chemical Weapons Convention and the Biological and Toxin Weapons
Convention to the fullest extent possible.
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This is achieved by members through the harmonisation of export controls like using licensing
measures.
When was it established?

It was established in the background of use of chemical weapons (in the form of nerve agents and
sulphur mustard) by Iraq in the Iran-Iraq war in the 1980s.
Members: 42 countries + European Union
Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic,
Denmark, Estonia, European Union, Finland, France, Germany, Greece, Hungary, Iceland, Ireland,
Italy, India, Japan, Republic of Korea, Latvia, Lithuania, Luxembourg, Malta, Mexico, Netherlands,
New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland,
Turkey, Ukraine, United Kingdom, and United States.
All member countries are members of the
! Biological and Toxins Weapons Convention (BTWC) and
! Chemical Weapons Convention (CWC)
Objectives
Chemical and biological weapons (CBW) are indiscriminate in their application and their deadly
effects have been known since ancient times. They were first used on a large scale in the First
World War, with soldiers being exposed to poisonous gases, including phosgene and sulphur
mustard (a blistering agent). The result was over one million casualties and approximately 100,000
fatalities. Since that time, CBW technology has become more advanced, and hence even more
lethal. The use by Iraq of CW in the form of nerve agents and sulphur mustard in the Iran-Iraq war
in the 1980s, and the 1995 poison gas (sarin) attack on the Tokyo underground, provide chilling
examples of the indiscriminate and inhumane effects of these weapons.
The principal objective of Australia Group participants’ is to use licensing measures to ensure
that exports of certain chemicals, biological agents, and dual-use chemical and biological
manufacturing facilities and equipment, do not contribute to the spread of CBW. The Group
achieves this by harmonising participating countries’ national export licensing measures. The
Group’s activities are especially important given that the international chemical and biotechnology
industries are a target for proliferators as a source of materials for CBW programs.
Export licensing measures also demonstrate participants determination of members to avoid not
only direct but also inadvertent involvement in the spread of CBW, and to express their opposition
to the use of these weapons.
How does it work?

Australia Group gives a set of guidelines and a technology list to its participant countries.
The participant countries are supposed to incorporate the guidelines and technology list in their
export controls systems.
India and Australia Group (AG)

India has been admitted to the Australia Group because India meets the membership criterea’s
such as:
! Member of BTWC and CWC: India is a member of both the Conventions— the Biological and
Toxins Weapons Convention (BTWC) and the Chemical Weapons Convention (CWC).
! Success of Indian biotech industry: India has a growing biotechnology industry in the world
market, with a highly refined biological export controls system. Thus meeting the criteria for the
membership of the Australia Group may not be difficult for India.
! Elaborate framework in existence: Additionally, India has implemented all its commitment to
WMD non-proliferation through its institutional, legal, and regulatory frameworks. India has the
elaborate legal and regulatory framework which includes the Indian Environmental (Protection)
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Act of 1986, the Drug Policy of 2002, Special Chemicals, Organisms, Materials, Equipment and
Technology (SCOMET) List, etc.
Benefits for India

Benefits of Australia Group’s membership to India are:
! Preventing WMD in South Asia: Joining the Australia Group would enable India to participate
in framing rules to prevent the proliferation of chemical and biological weapons, a concern in
volatile South Asia.
! Boost to NSG membership: Gaining its membership would also help India lobby better for
membership in the NSG as many of its members are also members of NSG and will further
give credibility.
IAEA
ABOUT IAEA
It is an independent intergovernmental, science and technology-based organization that serves as
the global focal point for nuclear cooperation. It was established as an autonomous organization
on 29 July 1957 independently through its own international treaty. It is headquartered at Vienna,
Austria.
It is organization within the United Nations family and it reports to both the United Nations General
Assembly and Security Council.
The objective of the IAEA is to accelerate and enlarge the contribution of atomic energy for peace,
health and prosperity throughout the world.
Major Functions of IAEA are:

Assisting to research and development in the field of atomic energy and its practical application
for peaceful uses worldwide. It provides technical support on the nuclear fuel cycle and the life
cycle of nuclear facilities.
Encouraging of exchange of scientific and technical information on peaceful uses of atomic
energy among research workers and specialists in the field of peaceful uses of atomic energy as
well as their training.
Establishing and applying the safeguards system against military use of civil nuclear programmes
and developments.
Developing, establishing and applying safety standards to protect health and minimize the threat
to the life and property.
The IAEA promotes a strong and sustainable global nuclear safety and security framework in
Member States, working to protect people, society and the environment from the harmful effects
of ionizing radiation.
Nuclear safety at various stages

Nuclear Installation Safety:
! The IAEA helps Member States meet this responsibility by establishing international safety
standards and providing for their application in all types of nuclear installations (power reactors,
research reactors and fuel cycle facilities) throughout their total life cycle from design through
decommission.
! It provides safety requirements on site evaluation for nuclear installations and the safety
requirements on remediation of areas contaminated by past activities and accidents. And also
encourages Member States to incorporate these safety requirements into national regulatory
programmes, to the fullest extent possible.
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Radiation protection safety:
! The use of ionizing radiation has potential risk in it. The IAEA develops safety standards to protect
the health and minimize the danger to people’s life and property associated with such use.
Transport safety:
! It assists Member States in strengthening this framework through the implementation of
its transport regulations, ensuring the safe and secures packaging and handling of these
materials.
Effective emergency preparedness and response:
! As part of these activities, it develops safety standards, guidelines and technical tools. It assists
member states in building the capacity for emergency response. And also maintains the IAEA
Incident and Emergency System to efficiently implement its role in response to radiological
incidents and emergencies.
Governmental legal and regulatory framework:
! The achievement and maintenance of a high level of safety during the duration of activities
requires a sound governmental, legal and regulatory framework. The IAEA strives to strengthen
such a framework in its member states through its safety standards and review services.
Low Enriched Uranium Bank:
! The bank will serve as a source of last resort for low-enriched uranium to IAEA members which
are unable to either produce it or if it becomes unavailable on the international market for
whatever reason. This function will help non-proliferation efforts. By providing uranium, it will
dis-incentivize countries from developing their own uranium enrichment capacities as even
supposedly peaceful programs could see uranium enriched to a weapons grade level.
! The bank seeks to ensure that in the event of an international crisis, countries dependent on
nuclear power would still have access to uranium.
Contributions of IAEA in Other areas

IAEA technical cooperation is also providing significant socio-economic benefits in agriculture,
environmental protection, human resource development, human health, and sustainable energy
development.
In Agriculture and Food Security:
! Through the IAEA, and its partnership with the Food and Agriculture Organization (FAO),
countries around the world are improving food security and agriculture by using nuclear and
isotopic techniques to protect plants from insect pests and to breed new plant varieties that
show, for example, improved crop yields, disease resistance or drought tolerance.
In Healthcare:
! IAEA assists countries in tackling cancer by helping them devise comprehensive cancer
control programmes, establishing nuclear medicine, radiation oncology and radiology facilities,
as well as supporting education and training for specialized health professionals.
! Ex. Establishing nuclear health services to improve the diagnosis of cancer in Azerbaijan.
Energy and Industrial Sector:
! The IAEA fosters the efficient and safe use of nuclear power by supporting existing and new
nuclear programmes around the world.
! With the IAEA’s help, several countries have increased the competitiveness of their industries
by using these technologies. For example for non-destructive testing for safety and quality
tests, and irradiation techniques for improving product durability, from car tyres to pipelines
and medical devices to cables.
Environment Conservation:
! Nuclear power can and does play in assisting countries to reduce their greenhouse gas
emissions. The IAEA works to increase global awareness of the role of nuclear power in relation
to environmental conservation.
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! Isotopic techniques shed light on the age and quality of water. Some countries use this to
implement integrated water resource management plans to sustainably use resources and
to protect water and water-related ecosystems.
The Medium Term Strategy for future
! This strategy serves as a strategic direction and roadmap to prepare the Agency’s programme
and budget during the period over 2018 to 2023.
! It aims to identify priorities among and within its programmes for the achievement of the
Agency’s statutory objectives in an evolving international environment.
CONCLUSION
The agency has worked hard to bring the benefits of peaceful nuclear technology to all parts of
the globe and to prevent the spread of nuclear weapons. The world has changed enormously
in that time. But the Atoms for Peace mission has lost none of its relevance. The Agency has
successfully adapted to changing times and the evolving needs of Member States and working for
the establishment of peaceful society.
Nuclear Security Summit

On March 31st and April 1st, leaders of 52 countries including India came together in Washington DC
for the 4th Nuclear Security Summit (NSS).
What is Nuclear Security Summit?

The Nuclear Security Summit is a world level summit aims to adopt measures for preventing access
to Nuclear Weapons by terrorist organisations like ISIS, Al Qaeda and other similar factions.
Considering Nuclear terrorism one of the greatest threat to international security, the US President
Barak Obama hosted the 1st Nuclear Security Summit (NSS) in Washington DC in the year 2010, in
order to draw attention of the world leaders to secure Nuclear materials and thus prevent Nuclear
terrorism.
Since then, the world leaders have met 4 times, Washington DC in 2010, Seoul in 2012, The Hague
in 2014 and again the Washington DC in 2016.
The first summit was concerned with making political agreements, while the follow up in Seoul
focused on the progress made in implementing these agreements. The third NSS, in The Hague
was centered on the outcomes achieved during previous years and the future concerns.
The fourth Nuclear Security Summit: 2016

In the fourth summit US President summed up what has been achieved in the 6 years since this
efforts started. He added that the initiative has now removed or secured all the highly enriched
uranium and plutonium from more than 50 facilities in 30 countries - more than 3.8 tons, which is
more than enough to create 150 nuclear weapons.
Endorsing the central role of the IAEA in promoting nuclear security, 4 detailed action plans relating
to key components of nuclear security regime were adopted which are not binding in nature.
The summit adopted 4 action plans pertaining to the UN, Interpol, the Global Initiative to Combat
Nuclear Weapons and the Global Partnership Against the Spread of Nuclear Weapons and Materials
of Mass Destruction.
Security and cooperation to the personnel working in the nuclear facility, monitoring of radiation
level and surveillance at borders for preventing trafficking of nuclear related materials.
Non-Proliferation of Nuclear, continued reduction in the use of Highly Enriched Uranium (HEU) and
plutonium in civil nuclear facilities to minimize the possible leakage of weapon use.
The summit also focused on the possible link between nuclear security and cyber security. Interpol’s
initiative like “Operation Fail Safe” deals with the potential dangerous nexus between cyber attacks
and nuclear risks.
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Rather than attempt to negotiate a new treaty, the NSS 2016 process has focussed on urging
states to tighten national laws, rules and capabilities by using best practices and international
cooperation. Establishing global centers of excellence (like the one in India), launching the Nuclear
Security Fund, and expanding the activities of the International Atomic Energy Agency’s (IAEA’s)
Nuclear Security Training and Support Centers are some of the outcomes.
India’s concern
India’s profile in the NSS process is natural given our concerns about global terrorism and the
growing threat posed by terrorists seeking to acquire weapons of mass destruction. Since 2002,
India has been introducing a resolution on terrorism and weapons of mass destruction in the United
Nations General Assembly, adopted by consensus every year. It laid the groundwork for the legally
binding Security Council Resolution 1540 adopted in 2005.
Therefore when President Obama highlighted this threat in his famous Prague speech in 2009 and
called upon the international community to ensure the securing of all vulnerable nuclear materials
within four years, a positive Indian response was natural.
There is another reason too. Nuclear power today constitutes a small part in India’s electricity
generation, but this is due to change. Currently, the twenty nuclear power plants in operation have a
capacity of 4.8 GW, out of a total installed power generation capacity of 240 GW.
A quarter of India’s population does not have access to electricity and energy poverty has been
identified as a major obstacle to economic growth. The Integrated Energy Policy visualises the
installed capacity rising to 1200 GW by 2035, with nuclear power contributing 60 GW. This will be 5%,
but it is critical in terms of reducing fossil fuel dependence and mitigating the carbon footprint.
Any breach in nuclear safety or security that could undermine public confidence in nuclear energy
would have grave repercussions on India’s long-term energy planning. For India, therefore, nuclear
security is not a new objective, but has always been a priority along with nuclear safety.
Threats of Nuclear Terrorism:

With the emergence of global jihadi threats like al-Qaeda and the Islamic State, nuclear security has
taken on additional urgency. 3 potential nuclear terrorist threats have been identified. First is the
threat of terrorists making or acquiring a nuclear bomb and exploding it; second is the possibility
of sabotaging an existing nuclear facility to create an accident; and finally, third is the possibility of
use of radioactive material to create a ‘dirty bomb’ or a radiological dispersal device.
The last is often considered the easiest for a suicide squad, given the fact that there are millions
of medical devices and other equipment that contain small amounts of radioactive substances
(cobalt-60, americium-241, caesium-137) which are widely distributed and do not have the kind of
security normally associated with nuclear reactor facilities.
Irrespective of the number of fatalities, a dirty bomb can create widespread panic and cost billions
in cleaning-up operations. Insider support by a radicalisedsympathiser could render a nuclear
facility vulnerable to sabotage.
It is well established that in the past al-Qaeda has not only considered and pursued all the 3 options,
but also had access to nuclear expertise. Al-Qaeda may have been weakened today but the IS is
also known to harbour similar ambitions.
Often there is some confusion in India about our role because nuclear security is neither nuclear
disarmament nor non-proliferation, nor is it nuclear safety. This leads some to downplay its
significance or suspect that it is a ploy to constrain India’s nuclear programme.
Neither perception is correct; in fact, as a responsible nuclear weapon state, it is incumbent on
India to ensure that all nuclear materials and facilities (both civilian and military) are subjected to
the highest levels of security.
Simply put, it would cover preventing unauthorised access to nuclear materials, facilities and
technologies; timely detection, were a breach to take place; and finally, effective responses to such
acts of terror and sabotage.
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Non-Alignment Movement (NAM)

INTRODUCTION
Non Alignment Movement was started by the Third world nations or the newly independent nations
who don’t wanted to join any of the existing power blocs. Non-Alignment Movement in this context
emerged as most desirable platform which provided these nations independence to follow their
own foreign policy.
It was adopted by Asian, African, and Latin American countries. The emergence of NAM in the cold
war situation provided the world politics a new twist. For the newly independent countries NAM
became a protector to escape from race of militarization promoted by two world powers at that
time, i.e., USSR and USA.
Non-alignment countries were in favor of disarmament and were against social discrimination. It
emerged as great moral force and initiated the co-operation for world peace in cold war era. The
policy of Non-alignment that is staying away from alliance should not be considered as neutrality
or isolation.
Objectives of NAM
Objectives of the non-aligned countries focused on the support of self-determination, national
independence and the sovereignty and territorial integrity of States; opposition to apartheid; non-
adherence to multilateral military pacts and the independence of non-aligned countries from
great power or block influences and rivalries; the struggle against imperialism in all its forms
and manifestations; the struggle against colonialism, neocolonialism, racism, foreign occupation
and domination; disarmament; non-interference into the internal affairs of States and peaceful
coexistence among all nations; rejection of the use or threat of use of force in international
relations; the strengthening of the United Nations; the democratization of international relations;
socio-economic development and the restructuring of the international economic system; as well
as international cooperation on an equal footing.
During the 1970s and 1980s, the Movement of Non-Aligned Countries played a key role in the
struggle for the establishment of a new international economic order that allowed all the peoples
of the world to make use of their wealth and natural resources and provided a wide platform for
a fundamental change in international economic relations and the economic emancipation of the
countries of the South.
Factors for NAM Being Irrelevant in Present World Order

As the world has transitioned from bi-polar to multipolar is NAM irrelevant today?
New world powers like China, India are rising, thus world is moving towards multi-lateralism.
Emergence of new regional groupings like G20, BRICS which have clearly laid down scope and
objective of engagement and outcome overshadow NAM which does not have any of these.
Members of the NAM have different political, social and economic structure which hinders any
cohesive action and each have their own set of interests.
Most of the NAM countries are facing domestic political, social and economic crisis. For India,
NAM lacks utility for protecting and promoting India’s security and interests.
Factors for NAM Being Relevant in Present World Order

NAM establishes itself as a deliberative and coordinating platform for the developing countries.
But more than that world became more violent and big power rivalries from Middle East and North
Africa to the South China Sea have increased in recent times. NAM provides an alternative medium
to tackle these issues in fresh and innovative ways.
NAM declaration has several elements which developing nations need to take note of. These
included—to decisively addressing the challenges posed in the areas of peace, economic and social
development, human rights and international cooperation, to promote the peaceful settlement of
disputes.
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Other Relevant Factors
World peace - NAM promotes disarmament and even prohibited invasion of any country, henceforth
creation of a sovereign world order.
Preservation of territorial integrity and sovereignty - NAM respect sovereignty of each nation by
preserving independence of every nation. So, weather world is uni-polar, multi-polar or bi-polar NAM
as policy will grow stronger.
Platform for Third World Nations - Third world countries are fighting against sociological-
economical problems since they have been exploited for long time by other developed nation, after
end of colonization their new motive is to look forward for development. In this situation, NAM
acted as a protector for these new formed small countries against the western hegemony.
Base of South-South Co-operation - NAM acts as catalyst to foster the co-operation between
south-south nations. It raises issues that are of major concern for the south countries. It initiates
economic, political and social development corners to achieve the desired result of moving from
developing to developed nations. Many developing nation including India still follows NAM policy
as its major international and foreign policy tool. The policy to avoid colonization and imperialism
continues to remain valid for all small and developing countries.
Peaceful settlement of International disputes - NAM since its foundation act as a platform that
protects the interest of developing countries. It protect it from the huge and influential power in the
international sphere, so if disputes arises between developed and developing nation at any point
of concerned topic then NAM act as platform which negotiate and conclude disputes peacefully
securing the favorable decisions for each member nation.
Voice of developing nations - NAM is emerging as majority day by day, each year its strength
increases which act as a force and give its members strengthen to put their point on international
issues. For example-NAM recently challenges the Ban-ki-Moon decisions on Srilanka panel is
plausible.
Sustainable development - NAM supported the concept of sustainable development. They even
determine what are the factors which hinder the development and discuss it at large, and bigger
platforms like United Nations.
How can NAM be Strengthened?

Its role in the present century would be strengthened by more South-South cooperation, which
would mean, by and large, collaboration between and among the NAM countries and defending
their interests from fast expanding economic and technological power of the North.
NAM should develop a progressive agenda on the fundamental values of democracy, human rights
and multiculturalism. The preservation and consolidation of democracy throughout its membership
is a major challenge.
NAM can be made relevant by widening its spectrum to:
! Environmental issues like greenhouse gas emissions,
! Health concerns especially AIDS,
! Drug trafficking,
! Rising instances of poverty, food crisis and unemployment,
! The rising digital divide between the rich and poor and fight against all shades of extremism,
and
! Xenophobia, ethnic nationalism and regional wars.
NAM in its older form has lost relevance and needs re-invention to stay vibrant and relevant.
Way Forward
Today, we need to revive NAM by breathing new life into it and making it fit to deal with the new
norms. A movement conceived in the context of a bipolar world may not suit a tripolar world, which
could become a multipolar world. A partnership of near equals like IBSA (India, Brazil and South
Africa) with similar interests without any ideological conflict is probably the best model to follow.
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Something on the lines of the G-15 organised by India and like-minded countries some years ago
could be put together with the objective of dealing with the kind of issues identified at Davos —
climate change, terrorism, protectionism etc.
NAM nature and scope changed but its relevance thrives to the height of success in the contemporary
world. In-fact its relevance is being more prominent than ever before, in present scenario NAM’s
nature is more inclined towards economic relevance than political relevance. Hence, NAM in the
present time is well embedded in the international politics.
UNSC Reform
INTRODUCTION
The United Nations Security Council (UNSC) is one of the six principal organs of the United Nations,
charged with the maintenance of international peace and security as well as accepting new
members to the United Nations and approving any changes to its United Nations Charter.
Basic structure: There are 15 members of the Security Council, consisting of five veto-wielding
permanent members (China, France, Russia, the United Kingdom, and the United States) and
10 elected non-permanent members with two-year terms. India is one of the non-permanent
member.
Non-permanent Members of UNSC: The 10 Non-permanent members of UNSC are elected by
the United Nations General Assembly for two-year terms.To be approved, a candidate must be
receiving at least 2/3 of all votes cast for that seat.
Functions of UNSC
The functions and powers of the Security Council are:
! To maintain international peace and security in accordance with the principles and purposes
of the United Nations;
! To investigate any dispute or situation which might lead to international friction;
! To recommend methods of adjusting such disputes or the terms of settlement;
! To formulate plans for the establishment of a system to regulate armaments;
! To determine the existence of a threat to the peace or act of aggression and to recommend
what action should be taken;
! To call on Members to apply economic sanctions and other measures not involving the use of
force to prevent or stop aggression;
! To take military action against an aggressor;
! To recommend the admission of new Members;
! To exercise the trusteeship functions of the United Nations in “strategic areas”;
! To recommend to the General Assembly the appointment of the Secretary-General and, together
with the Assembly, to elect the Judges of the International Court of Justice.
Why Reforms Needed?

The United Nations Security Council is in need of reform due to its failure to represent the majority
of the world, as it only represents the interests of Western nations as well as those of Russia and
China.
This leads to grievous under-representation of Asian, African, and South American nations that has
caused resentment to grow among these nations. Reform is needed to remove the ”Democracy
Deficit”.
Geo political rivalry among the P5 has prevented the UNSC to come up with effective solutions for
dealing with global crisis. Ex. - Syria. Ban Ki Moon, has said that UNSC has failed Syria.
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UNSC failed to play decisively to stop many of the conflicts. Its delayed actions and consequences
had worsened Rwandan crisis. It is also been criticized for not taking a forceful action until a
catastrophe unfolds.
Lack of transparency, a failure to cooperate with the various other committees of the UN, and
outstanding misuse of the veto power given to the top 5 is also the main issue. These top 5 nations
use this veto power to represent their interests alone, disregarding the desires and wishes of the
rest of the international community.
Process for Security Council Reform

According to Article 108 of the United Nations Charter, the Charter can be amended by a General
Assembly decision approved by two thirds of General Assembly membership and ratified by two
thirds of Member States, including the permanent members of the Security Council. As changing the
composition of the Security Council can be done only by amending the Charter, Article 108 applies to
the issue of Security Council reform.
There are 5 issues pertaining to the reforms in the United Nations Security Council. They are as
follows:
! The question of the veto held by the five permanent members
! Regional representation
! Categories of membership
! The size of an enlarged Council and its working methods
! Security Council - General Assembly relationship.
Reforms Proposed
India, along with Brazil, Germany and Japan, has proposed an increase of six additional permanent
seats, the other two being for Africa. The African group is demanding two permanent seats,
recognised as reasonable by every member, but there are at least three and perhaps more claimants
for the two seats. Then there is the question of the rights of the additional members.
Opposition by P-5
The P-5 will never agree to give up their veto right, nor will they agree to accord this right to any other
country. (France supports veto for additional permanent members.) Also, the general membership
of the UN wants to eliminate the existing veto; they will never agree to new veto-wielding powers.
Variants of the veto provision have been suggested, such as the requirement of double veto, i.e. at
least two permanent members must exercise veto for it to be valid. The P-5 are not willing to dilute
their self-acquired right.
Why India should be made member of it?

India is world’s largest and stable democracy and will soon become world’s largest population.
Nuclear status, changing economic scenario of the nation.
She is leading contributor of troops to UN peace-keeping missions. India has over 8000 peacekeepers,
which is more than twice that of the P5 group.
On the economic side, India has maintained the state of world’s 7th largest economy. Being the 3rd
largest active armed force, along with nuclear weapons, India’s candidature is justified.
Permanent membership is critical for India for following reasons: To improve India’s global stature;
To help India reach at comparable level with its rival China; To secure its neighborhood from future
combined interventions, if any; To bring equality of treatment and be the natural leader of developing
countries in security council.
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Way forward
As for the UN itself, reform of the Security Council is an existential requirement for the organization.
If it resists all proposals for change in the years to come, there is a real risk of the UN being sidelined
or rival organizations taking over its agenda. Therefore, it is likely that some changes would be
accommodated on the basis of one of the two alternatives proposed by Kofi Annan in his report,
‘In Larger Freedom’ in March 2005. According to this plan, there would be no new permanent seats,
but a new category of eight four-year renewable term seats and one new two-year non-permanent
(and non-renewable) seat to be divided among the various regional groups. The plan continues to
be unacceptable to India and some others, but it might well be the lowest common denominator to
be tried out. But what the UN requires is not a fix like that, but a fundamental change to reflect the
realities of the present century.
CONCLUSION
Composition of the UN Security Council reflects a post-World War II colonial system that is woefully
outdated but still powerful. Meaningful reform of the Council to make it more representative
and democratic would strengthen the UN to address the challenges of a changing world more
effectively.
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GLOBAL ISSUES
International Terrorism
The year 2016 was plagued with significant terrorism incidents across the globe.
Even among counter-terrorism policy practitioners, many were surprised by the scale and magnitude
of attacks that struck Belgium, France, Germany and, more recently, Turkey.
According to the Institute for Economics and Peace that has released the 2016 GTI, ISIS generated an
estimated $2bln in revenues in 2015, the majority of which from smuggling of oil (50 percent), taxes
(30 percent) and traffic of antiquities (10 percent).
This is one of the main findings of the 2016 Global Terrorism Index (GTI) that measures the impact of
terrorism in 163 countries, covering over 99 percent of the world’s population.
According to the Institute for Economics and Peace that has released the 2016 GTI, ISIS generated an
estimated $2bln in revenues in 2015, the majority of which from smuggling of oil (50 percent), taxes
(30 percent) and traffic of antiquities (10 percent).
ISIS
The Islamic State and groups that support it or are affiliated with it managed to more than double
their presence around the world, being active in 28 countries in 2015, compared to 13 in 2014.
Half of all plots with an ISIS connection have been conducted by people who have had no direct
contact with ISIS, raising the issue of lone actors.
“At the end of 2015 ISIS controlled 6-8 million people in an area the size of Belgium, and maintained
a force between 30,000-50,000 fighters while attracting the greatest number of foreign fighters
in history” wrote Dr Christina Schori Liang, Senior Program Advisor and Senior Fellow, Emerging
Security Challenges Program, at the Geneva Center for Security Policy (GCSP), as expert contributor
to the 2016 GTI report.
According to the results of the 2016 GTI, ISIS is also considered the deadliest terrorist group,
having killed 6,141 people in 2015, followed by Boko Haram which accounts for 5,478 victims.
“As well as increased lethality, there was also an increase in the number of countries targeted by
ISIS. ISIS conducted attacks in 11 countries in 2015, up from 6 countries the previous year. The
group undertook attacks in 252 different cities in 2015” the GTI report states, adding that the
majority of the attacks were against private citizens and property, accounting for 43 percent of all
deaths. Iraq, Afghanistan, Nigeria, Pakistan and Syria are the countries with the highest impact of
terrorism in the world, accounting for 72 percent of all deaths from terrorism in 2015.
According to the Institute for Economics and Peace, in 2015 the overall impact of terrorism
increased by 6 percent with many countries experiencing an intensification of terrorism.
Terrorism is largely centralized in the Middle East and North Africa (MENA), South Asia and sub-
Saharan Africa regions, but we faced a substantial increase in terrorism also in Western countries.
According to 2016 GTI report, 2015 was the worst year for deaths from terrorism for Organization
for Economic Cooperation and Development (OECD) countries aside from the September 11
attacks in 2001: 21 out of 34 OECD member States experienced a terrorist attack in 2015 with
deaths from terrorism dramatically increased, rising by 650 percent when compared to 2014.
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“Since World War Two the world is a much safer place, but in the last ten years world peace has
declined and terrorism plays a crucial role in this trend” said Daniel Hyslop, Director of Research
at the Institute for Economics and Peace, presenting the 2016 Global Terrorism Index on Tuesday
in Rome, Italy.
Despite these terrifying figures, terrorism as a tactic of sustained mass destruction is considered
to be ineffective as almost half of the terrorist attacks result with no casualties.
There are still many countries in the world which are untouched by terrorist activity: 71 countries
did not experience an incident of terrorism in 2015. Between the countries with no impact of
terrorism there are Oman, Poland, Malawi, Benin, Romania, Cuba, Costa Rica and Singapore.
Is ISIS a threat to India?

The deadly strike Holey Artisan Bakery in Bangladesh’s capital Dhaka that claimed 24 lives and
arrest of IS operatives from Hyderabad shows IS threat should not be taken lightly. In fact, the
two incidents reveal scaling ambitions of ISIS, that should be taken seriously by India and other
Asian countries.
ISIS militants took advantage of failed government and administration in Iraq and Syria in order
to wrest power. Similar situation is being observed in Bangladesh. In Bangladesh, hardliners are
becoming fearless as attacks on liberals and religious minorities have increased significantly in
last few months.
The space for dissent in shrinking in the country and sectarian rift is widening. Jihadists have
been silencing or threatening liberal and democratic voices. All this will help the ISIS to radicalize
the youth easily.
The attack in Dhaka is a clear message for India that ISIS has succeeded in gaining some foothold
in Bangladesh. India and Bangladesh share border which is spread across five states. The Home
Ministry data about fencing and floodlighting the border explains that Indian security forces are
not taking the ISIS threat seriously.
According to the data released by the Home Ministry, there is a sanction for fencing 3326.14
km of the Indo-Bangladesh border. But in reality only 2827.922 km has been fenced. As far as
floodlighting the border goes, 3117 km was sanctioned to be covered. But till now, just 2151.09
km has been covered. This shows how poorly we are prepared.
So far 41 ISIS recruits have been arrested by Indian security agencies. Besides this, nearly
500 Indian youths, who have been attracted towards the terror outfit, were being tracked by
investigative agencies.Indian security establishment suggests that around 20-odd Indians are
currently fighting for ISIS in Iraq-Syria.
Migration Crisis in Europe

Europe is experiencing one of the most significant influxes of migrants and refugees in its history.
Pushed by civil war and terror and pulled by the promise of a better life, huge numbers of people have
fled the Middle East and Africa, risking their lives along the way.
More than a million migrants and refugees crossed into Europe in 2015, compared with just 280,000
the year before. The scale of the crisis continues, with more than 500,000 illegal migrants crossing
borders in the 2016.
Among the forces driving people to make the dangerous journey are the conflicts in Syria, Iraq and
Afghanistan. The vast majority - more than 80% - of those who reached Europe by boat in 2015
came from those three countries.
People from African countries are sick of poverty and abuse they endure in their countries. Majority
come from Eritrea, Nigeria, and Libya.
People from Afghanistan and Syria make up majority of the migrant population. They are fleeing wars
in their respective countries are they get more and more brutal.
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These people are not just running away from horrors in their own countries but are going in hope that
they can get an opportunity to make their lives better for themselves and their family.
But as European countries struggle with the mass movement of people, some have tightened border
controls. This has left tens of thousands of migrants stranded in Greece, raising fears of a humanitarian
crisis.
Why is it in the news?

A lot of migrants are making these journeys under extremely dangerous conditions. Migrants
from Africa pay huge amounts of money to undertake these journeys - a lot of them not even
reaching their boats because abusers kidnap/rape/torture them to get more money out of them.
The normal places they head to are Greece and Italy.
Even if they do reach the boats, they’re tightly packed with more passengers than the boats can
take. Some of them are not even boats but rubber dinghies. Owing due to all of these factors,
there have been a lot of incidents where these boats have sunk in the sea drowning most of the
migrants.
Another group of migrants are ones that are trying to get to Germany through Hungary and Austria.
At least a 1000 people tried getting on trains from Budapest which led to the standoff. A lot of
these people then started walking instead of taking the trains in protest against the government.
Some Hungarians walked alongside them to show solidarity. The government then sent buses to
pick up the migrants and transfer them to the Austrian border.
The migrants from Syria usually take the route to Turkey and then Greece. They face similar
daunting journeys and these incidents have also been in news because of a lot of people perishing
on the way. This story picked up steam after the photo of AylanKurdi surface on the internet - a
very young Syrian child who died with his mother and older brother trying to make the journey
from Turkey to Greece.
Risks associated with Migration

The influx of refugees into Europe, particularly Italy, has increased dramatically in recent months.
Some 170,100 refugees arrived in Italy in 2014, according to the United Nations’ refugee agency
UNHCR, and the International Organization for Migration estimates that 21, 191 migrants reached
the country this year as of April 17 — over 10,000 within the last week of March, 2015. Fatalities
during the perilous journey have risen dramatically during the same period, with an estimated
3,500 deaths in 2014.
The Triton program, Europe’s effort to rescue and rehabilitate migrants, is being slammed as
inadequate, ineffective and underfunded in comparison to its predecessor, Italy’s Mare Nostrum
program. Mare Nostrum, which reportedly had a budget of nearly $10 million compared to Triton’s
$3.2 million, was shut down late last year amid claims that it encouraged more refugees to seek
passage to Europe.
Post-Migration Issues
Every refugee is entitled to asylum in Europe under the Common European Asylum System,
which sets out a framework for their protection and rehabilitation. However, several countries
are unable to implement this framework effectively with the sudden and ever-increasing influx
of illegal migrants. There have been allegations of mistreatment of asylum-seekers in the past,
and measures to deal with the problem include a proposal to create offshore detention centers in
so-called “third countries” like Morocco, Egypt and Tunisia. A large part of the effort is funded by
the E.U.’s Asylum, Migration and Integration fund, which has set aside 3.137 billion euros for the
period of 2014-2020.
Faced with a huge influx of people, Hungary was the first to try to block their route with a razor-
wire fence. The 175km (110-mile) barrier was widely condemned when it went up along the Serbia
border, but other countries such as Slovenia and Bulgaria have erected similar obstacles.
Austria has placed a cap on the number of people allowed into its borders. And several Balkan
countries, including Macedonia, have also decided only to allow Syrian and Iraqi migrants across
their frontiers.
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As a result, thousands of migrants have been stranded in makeshift camps in cash-strapped

Greece, which has asked the European Commission for nearly €500m in humanitarian aid.The
present refugee and migrant crisis in Europe – whether off its coasts, on its shores, or along its
roadsides – is a crisis for children. One in every four asylum seekers in Europe so far this year has
been a child. A total of 110,000 children sought asylum between January and July – an average of
over 18,000 children every month. The needs, protection and best interests of each one of those
children should always come first.
Impact on Europe?
! The EU wants to establish a centralized migrant quota system whereby the number of migrants
is more fairly shared among member countries, but this has met with much opposition. How
the EU deals with this thorny issue will determine whether the EU survives in its current form or
not. The challenge of financing the migrant crisis equitably is another hot issue, with responses
widely varying between member nations. It has already lead the Brexit, which is considered as
a deadly blow to the EU.
! Most migrants entering the EU are Muslims by religion. The addition of potentially one to three
million more Muslims within the area of the EU holds enormous political, social and security
consequences. Most Muslims, of course, are law-abiding and responsible people, who are
hard working and make upright citizens. Even so, they will take time to assimilate and adjust
to living in the EU. However, a small minority may hold more extreme views. A great lesson
of the appalling Paris atrocity was that some terrorists had entered Europe masquerading as
migrants. Is Europe unwittingly stoking the fires of future terrorist outrages? This possibility no
doubt keeps some officials awake at night, and will require utmost vigilance.
! Yet another urgent political priority is how the EU can address the fundamental problems in the
migrants’ home countries that kicked off the migration crisis in the first place. This requires
enormous vision, sound thinking and may involve substantial economic and even military
assistance where necessary. Expect to see more EU—and more German—initiatives in this area
in the months ahead.
Demographic Effect
Statistically, adding a few million migrants will not affect the European demographics to any
significant extend.
However, the fact is that migrants are not evenly distributed among the population. Not every
town and village in Europe is going to receive an equal percentage of migrants, absorbing them
painlessly into the general population.
What will in fact happen is the addition of a large number of people to the existing ghettos of which
anyone who’s been to a large European city in the past twenty years has become uncomfortably
aware.
Nations like Hungary are seeing a complete population upheaval. There, the population grew by
8%, because of migrants. Therefore, it will affect the natives tremendously.
Is there is any backlash from native people of Europe?

Opposition to high levels of legal immigration has been associated with certain right-wing parties
in the EU. The issue flared up with the European migrant crisis in 2015 with large numbers of
refugees from the Middle East and Africa making dangerous trips to Europe and many deaths
en route. With high levels of unemployment and partly unassimilated non-European immigrant
populations already within the EU, parties opposed to immigration have improved their position
in polls and elections.
Right-wing parties critical to immigration have entered the government in Austria, Denmark,
Italy, The Netherlands, Norway, Poland and Slovakia, and have become major factors in English,
Swedish, German and French politics.
Immigration is one of the central political issues in many European countries, and increasingly
also at European Union level. The anti-immigration perspective is predominantly nationalist,
cultural and economic.
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A new index measuring the level of perceived threat from immigrants has been recently proposed
and applied to a data set covering 47 European countries and regions. The results show that
Malta and Cyprus have the strongest perception of socio-economic threat from immigrants,
followed by Austria, Great Britain (in particular England), Northern Ireland and Hungary, and that
the countries/regions with the weakest perception of threat are Armenia, Sweden, Romania and
Northern Cyprus. European nationalists see unassimilated immigrants as threatening their historic
cultures and a violation of their rights of a land for their own peoples. The fears are compounded
the fact that many immigrants in western Europe are poor, working class Muslims from the Middle
East and Northern Africa. Prominent European opponents of immigration include Jean-Marie Le
Pen, ThiloSarrazin, Fjordman, the late JörgHaider and the assassinated Pim Fortuyn. In France,
the National Front opposes immigration. In the 1988 elections, 75% of supporters of its leader Jean-
Marie Le Pen believed France has too many immigrants (as opposed to 35% of all voters.)
Rising Protectionism and Currency Wars

BACKGROUND
Following the economic recession of 2008 and reduced global demands, most of the countries
have boosted their economic growths by following a protectionist policy with a combination of non-
tarrif barriers and exchange rate devaluation, also known as, beggar-thy-neighbour policy.
What is beggar thy neighbour policy?

Beggar thy neighbour policy refers to a policy that aims at addressing one’s own domestic problems
at the expense of others — trading partners in particular, largely through competitive devaluation of
their currencies by the central bank.
How does this policy work?

Conventionally, countries often impose tariff barriers and restrict imports to protect their domestic
industries. However, with globalisation, such practices are not popular. Central banks devalue or
encourage the depreciation of their own currencies compared to its trading partners by intervening
in the local currency markets to retain their respective competitive edge and price advantage in
exports and end up in currency wars in the process. A weak local currency ends up strengthening
the dollar which is the preferred currency of cross-border transaction. Sometimes economies
compete in encouraging appreciation of their currencies to tame inflation at the expense of hurting
income in the exporting countries.
How is it being used presently?

After China devalued its currency by nearly 0.5% to the dollar earlier in January this year, many
emerging market currencies have started weakening against the US dollar. Indian rupee too has lost
close 4% to the dollar since January. The immediate cause of a weak emerging market currency is
pull out of foreign investors from these economies resulting in a pressure on local currencies. But
the central banks in these countries have also allowed their currencies to depreciate by restricting
their intervention.
What is the current policy thinking within RBI

The Reserve Bank of India has been warning against such a practice of competitive devaluation
by central bank. Governor Raghuram Rajan underscored the need to avoid beggar-thy-neighbour
policies, such as unconventional monetary policy or sustained exchange-rate intervention, that
primarily induce capital outflows and competitive currency devaluations in a recent speech.
According to Rajan, multilateral institutions like the International Monetary Fund should exercise
their responsibility for maintaining the stability of the global system by analysing and passing
careful judgment on each unconventional monetary policy (including sustained exchange-rate
intervention).
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What are the limitations of such a practice?

In the current situation of global economic slowdown and weak demand, a price advantage on
goods and services need not necessarily prop up exports. In certain cases, such a policy may prove
counter productive. If, for instance, even the competing country counters one policy move, of say,
depreciation (to protect exports) then such a practice may not have desirable results, especially
the country’s imports are not price elastic (the imports are essential and not dependent on prices)
and instead could end up hurting the trade balance through higher import price and resulting in
inflation in such economies.
The reasons for currency wars:

Developed countries : like canada and australia have depreciated their currency due to falling oil
and commodity prices
China : devalued currency due to slow growth
Greece in EU are devalued their currency by quantitative easing to stabilise their economy and
come out of recession impacts. (Wrong??)
African countries are devaluing to curb high inflation rate. Latin American and South East asia to
fund their development projects. (Wrong??)
All these resulted in appreciation of US dollar. Thus even the United States has entered currency wars
to shield itself from the effects of other currencies.
Impact on global economy:

Currency frictions can lead eventually to trade frictions, and currency wars can lead to trade wars.
And that could spell trouble for the US as it tries to conclude the mega-regional Trans-Pacific
Partnership
It leads to a growing tendency where export growth is primarily led by currency manipulation
rather than increase in productivity. Thus, the emphasis of countries shifts to using this tool
rather than enhancing productivity.
It leads to excessive volatility in world economy especially in emerging economies like India which
have witnessed excessive volatility in foreign inflows and exchange rate.
It can only lead to short-term growth and its utility can be easily exhausted when other countries
resort to it as has been the case.
Currency wars also lead to diplomatic conflicts as witnessed in case of USA and China.
If all the countries keep on depreciating currencies that will be a zero sum game without achieving
any real progress in growth. The world would be better off if most governments pursued policies
that boosted growth through domestic demand, rather than beggar-thy-neighbour export
measures
India should focus on achieving domestic led growth by increasing the competence of its products
in international market instead of depreciating its currency because India is still at a nascent
stage of its manufacturing sector and cannot afford to currency manipulation.
CURRENCY DEVALUATION BY CHINA

China has been devaluating its currency on occasion since August 2015. Given its greater role in
the global economy, China’s surprise moves are having serious repercussions around the world.
Reasons For Yuan Devaluation

Developed economies took a long time to absorb the aftershocks of the global financial crisis of
2008, with their recoveries being slow. Because these economies were major markets for Chinese
exports, their sluggish recoveries led to declining production, reduced employment and falling
incomes in China. In response, China decided to shift from being a manufacturing-based, export-
driven economy to one built more on domestic consumption and a growing service sector.
However, such paradigm changes will take a long time to materialize and show results, and
China still significantly depends on its exports. By devaluating its currency, China makes exports
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cheaper and gains a competitive advantage in the international markets. A weaker currency also
makes China’s imports costlier, thus spurring production of substitute products at home and so
aiding domestic industry.
Impact on Global Trade Market

Currency devaluation is nothing new. From the U.S. and the European Union to developing nations
like India, countries have devaluated their respective currencies to help cushion their economies.
That said, China’s devaluations could spell trouble for the global economy. Given that China is the
world’s largest exporter and its second-largest economy, any change that such a large entity makes
to the macroeconomic landscape will have serious repercussions.
With Chinese goods becoming cheaper, many small- to medium-sized export-driven economies
may see their trade revenues reduced. And if these nations are debt-ridden and have a heavy
dependence on exports, their economies could take a beating. For instance, Vietnam, Bangladesh
and Indonesia greatly rely on their exports of footwear and textiles. They could be in serious trouble
should China’s devaluations make its goods cheaper in the global marketplace.
Impact On Global Economy

In a bid to establish the yuan as an international currency, China has been liberalizing its currency
system. For instance, it moved from its former dependence on the U.S. dollar to a weighted basket
of different currencies belonging to its trading partner economies.
In December 2015, China succeeded in getting the renminbi included as the fifth currency in
the IMF’s Special Drawing Rights (SDR) basket, which will be effective from October 2016. Along
with generally adopted reserves of U.S. dollars and gold, SDR is an additional international reserve
asset that IMF members can use to purchase domestic currency in foreign exchange markets in
order to maintain exchange rates.
Impact on India
The negative of Currency devaluation by china is that
Indian exports will come under further strain as China and India compete for several export items
such as gems and jewellery, textiles etc.
Additionally, a slowdown in China which is one of the top five countries itself for Indian exports is
not good news.
Fears also exist that the sharp depreciation will aid in more dumping of Chinese goods into the
Indian market, hurting domestic manufacturers, which is definitely not something that would help
the ‘Make in India’ campaign in any way.
India already has a trade deficit of US$ 48 billion with China, and this has increased about 34 per
cent from what it was in 2014-15.
The sharp fall in the Indian rupee has already rattled stock markets and if it continues to fall, imports
will becoming further more expensive, adding to inflation.
The positive is that the:

Slowdown in China has hit global commodity markets as well due to a decline in Chinese
demand.
Oil and gold prices have fallen, and India which is an importer of oil and gold can seek some relief
through lower oil and gold prices which will help the current account deficit.
Lower oil prices additionally mean lower inflation rates.
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Greek Debt Crisis

Brief Summary -
The Greek government-debt crisis (also known as the Greek depression) started in late 2009.
It was the first of five sovereign debt crises in the Euro zone- later referred to collectively as the
European debt crisis. In Greece, triggers included the turmoil of the Great Recession, structural
weaknesses in the Greek economy, and a sudden crisis in confidence among lenders. In late 2009,
fears developed about Greece’s ability to meet its debt obligations, due to revelations that previous
data on government debt levels and deficits had been misreported by the Greek government.
This led to a crisis of confidence, indicated by a widening of bond yield spreads and the cost of
risk insurance on credit default swaps compared to the other Euro zone countries - Germany in
particular. In 2012, Greece’s government had the largest sovereign debt default in history.
On June 30, 2015, Greece became the first developed country to fail to make an IMF loan repayment.
At that time, Greece’s government had debts of Rs. 323bn.
Causes for the crisis -

GDP growth rates: After 2008, GDP growth rates were lower than the Greek national statistical
agency had anticipated. In the report, the Greek Ministry of Finance reported the need to improve
competitiveness by reducing salaries and bureaucracy, and the need to redirect much of its current
governmental spending from non-growth sectors such as military into growth-stimulating sectors.
Government deficit: Huge fiscal imbalances developed during the five years from 2004 to 2009:
“the output increased in nominal terms by 40%, while central government primary expenditures
increased by 87% against an increase of only 31% in tax revenues.” In the report the Greek Ministry
of Finance stated their aim to restore the fiscal balance of the public budget. They intended to
implement permanent real expenditure cuts (meaning expenditures would only be allowed to grow
3.8% from 2009 to 2013, which was below the expected inflation at 6.9%). Overall revenues were
expected to grow 31.5% from 2009 to 2013, secured not only by new, higher taxes but also by a
major reform of the ineffective tax collection system.
Government debt-level: Mainly deteriorated in 2009 due to the higher than expected government
deficit and high debt-service costs. An urgent fiscal consolidation plan was needed to ensure
that the deficit would decline to a level compatible with a declining debt-to-GDP ratio. The Greek
government assessed that it was not enough to implement structural economic reforms, as the
debt would still increase to an unsustainable level before the positive results of such reforms could
be achieved. On this basis the government’s report emphasized that in addition to implementing
the needed structural economic reforms, there was an urgent need in the coming four-year period
to implement packages of both permanent and temporary austerity measures (with a size relative
to GDP of 4.0% in 2010, 3.1% in 2011, 2.8% in 2012 and 0.8% in 2013). Implementation of this entire
package of structural reforms and austerity measures, in combination with an expected return
of positive economic growth in 2011, would then result in the baseline deficit being forecast to
decrease from €30.6 billion in 2009 to only €5.7 billion in 2013, while the debt-level relative to GDP
would stabilize at 120% in 2010-2011 and begin declining again in 2012 and 2013.
Budget compliance: Budget compliance was acknowledged to be in strong need of improvement,
and for 2009 it was even found to be “a lot worse than normal, due to economic control being
more lax in a year with political elections”. In order to improve the level of budget compliance
for upcoming years, the Greek government wanted to implement a new reform to strengthen the
monitoring system in 2010, making it possible to keep better track on the future developments of
revenues and expenses, both at the governmental and local level.
Statistical credibility: Problems with unreliable data had existed ever since Greece applied for
membership of the Euro in 1999. In the five years from 2005 to 2009,Eurostat each year noted
a reservation about the fiscal statistics for Greece, and too often previously reported figures got
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revised to a somewhat worse figure, after a couple of years. The flawed statistics made it impossible
to predict accurate numbers for GDP growth, budget deficit and the public debt. By the end of
the year, all turned out to be worse than originally anticipated. Problems with statistical credibility
were also evident in several other countries, but in the case of Greece, the magnitude of the 2009
revisions and its connection to the crisis added pressure to the need for immediate improvement.
Evaluation of 3rd bailout -

Greece govt sought a referendum on the conditions posed by the Troika that yielded an overwhelming
“no” from the Greek people. But subsequently under a new agreement, it accepted conditions
over and above what the referendum set out to seek. Government agreed to a continuation of the
austerity programme and privatization in return for debt relief concessions.
The government’s actions should be termed as a letdown. In the referendum people clearly said a
No, but in spite of this he agreed to continue austerity program and other conditions
Reason for agreeing: But with the Euro zone being pushed by its largest economy, Germany, to
prepare for Grexit, Greece had barely any wiggle room: the pain of a Grexit was seen to be more
daunting than status quo for the economically crippled nation.
Will this work?

Five years of austerity has only exacerbated the problem for the economy. So will further austerity
will do any good? In the past seven years the country’s GDP has shrunk by 30 per cent while
unemployment has risen to over 25 per cent. If after years of austerity and two bailouts Greece still
has to seek a third bailout package to service its debt, that itself shows its path is unsustainable.
! What Europe should have done was to write-off a major part of Greece’s debt and allow the
country to lift public spending. This, in a classical Keynesian way, would have helped revive
demand and thereby economic growth.
! The present action against Greece exposes the fault-lines in the European project, which
originally aimed to integrate a continent economically and politically but failed to do so because
of the insistence on a faulty and unbalanced monetary union. While the mighty in the Euro zone
might have won the battle over retaining austerity, the war to sustain the Euro zone as it is, will
continue.
Solution to Greek Crisis

Exit the Euro zoneor “Grexit”-
! Nobel prize-winning economist Paul Krugman suggests that the Greek economy can recover
from the severe recession by exiting the Euro zone (often called “Grexit” in the media) and
launching a new national currency, the drachma. The devaluation of the currency may help
Greece boost its exports and pay down its debts with cheaper currency. In fact, Iceland made
a dramatic recovery after it filed for bankruptcy in 2008, taking advantage of the devaluation of
Icelandic krona (ISK). In 2013, it enjoyed an economic growth rate of about 3.3 percent. Canada
was also able to improve its budget position in the 1990s by devaluing its currency.
! However, the consequences of “Grexit” could be global and severe, including:
Membership in the Euro zone would no longer be perceived as irrevocable. Other countries
might be tempted to exit or demand additional debt relief. These countries might also see
the interest rates rise on their bonds, making debt service more difficult.
Further depreciation of the Euro relative to the dollar, which would cheapen Euro zone
exports while making imports more expensive for Euro zone members. This could reduce
the exports of non-Euro countries.
Geopolitical shifts, such as closer relations between Greece and Russia, as the crisis sours
relations with Europe.
Significant financial losses for Euro zone countries and the IMF, which are owed the majority
of Greece’s roughly $300 billion national debt.
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Adverse impact on the IMF and the credibility of its austerity strategy, which has contributed
to the Greek depression.
Inability of Greece to access global capital markets and the collapse of its banking system
for an indeterminate period of time.
Digital currency cards -
! The bank multiplier effect means the amount of bank deposits far exceeds the amount of paper
Euros. Greece and its people face a shortage of paper Euros when withdrawing funds from
their bank accounts. Reducing the requirement of paper Euros in the withdrawal process, into a
digital form, allows withdrawals and spending.
European debt conference -
! Economist Thomas Piketty said in July 2015: “We need a conference on all of Europe’s debts,
just like after World War II. A restructuring of all debt, not just in Greece but in several European
countries, is inevitable.” He pointed out that Germany received significant debt relief after World
War II. A new institution would be required to manage budget deficits within limits across all
Euro zone countries. He warned that: “If we start kicking states out, then the crisis of confidence
in which the Euro zone finds itself today will only worsen. Financial markets will immediately
turn on the next country. This would be the beginning of a long, drawn-out period of agony, in
whose grasp we risk sacrificing Europe’s social model, its democracy, indeed its civilization on
the altar of a conservative, irrational austerity policy.”
Iran Nuclear Deal

Iran’s nuclear programme became public in 2002, when an opposition group revealed secret activity
including construction of a uranium enrichment plant at Natanz and a heavy-water reactor at Arak.
The Iranian government subsequently agreed to inspections by the global nuclear watchdog, the
International Atomic Energy Agency (IAEA).But the IAEA was unable to confirm Iran’s assertions that
its nuclear programme was exclusively for peaceful purposes and that it had not sought to develop
nuclear weapons.
This led the US and its European allies to press Iran to stop enriching uranium, which can be used for
civilian purposes but also - if the concentration of the active uranium-235 isotope is 90% or above - to
build nuclear bombs.
Israel is worried that Iran could build nukes to use against it; Iran may be worried that it will forever
be under threat of Israeli strike until it has a nuclear deterrent. That’s called a security dilemma or
Mutualassured Destruction and it can get bad to worse.
However, the election of President Mahmoud Ahmadinejad in 2005 halted any progress in talks, and the
IAEA referred Iran to the UN Security Council for failing to comply with its Nuclear Non-Proliferation
Treaty (NPT) Safeguards Agreement.
Since then, the Security Council has adopted many resolutions requiring Iran to stop enriching uranium,
some imposing sanctions.
But an IAEA published a report in 2011 claiming “credible” information that Iran had carried out
activities “relevant to the development of a nuclear explosive device”. The report drew attention to a
military complex at Parchin, south of Tehran, which the IAEA has been unable to visit since 2005.
In 2012, the US and EU began imposing additional sanctions on Iranian oil exports and banks, crippling
Iran’s economy.
There have been multiple rounds of negotiations between Iran and the P5+1. The P5+1 are
America,France, Britain, China, Russia and Germany. The first five are all permanent members of the
UNSecurity Council. Germany is there because it was part of EU3 including France and Britain, that
held an earlier series of negotiations with Iran.
For years they failed to make headway. But after the election of Hassan Rouhani as president in June
2013. Five months later, following secret bilateral talks between the US and Iran, negotiators agreed an
interim deal in November 2013. It is known as Geneva Accord or Joint Plan of Action (JPOA).
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Under the Joint Plan of Action (JPOA), which came into force in January 2014, Iran effectively
agreed to freeze its production of enriched uranium above 5% purity and committed to dilute or
convert into oxide form its stockpile of near 20% enriched uranium. Iran said it would not install any
new uranium centrifuges or build new enrichment facilities. Iran also agreed not to commission or
fuel the reactor at Arak, and not to construct a fuel reprocessing facility there.
While most of the international sanctions regime - including measures targeting Iran’s key oil,
banking and financial sectors - was kept in place, the P5+1 agreed to permit Iran to repatriate about
$4.2bn (£2.6bn) in revenue from oil sales locked in foreign accounts. Sales of petrochemicals and
trading in gold and other precious metals were allowed to resume, along with transactions with
foreign firms involved in the Iranian car industry. That was expected to generate about $1.5bn in
revenue. Iran was also given access to about $400m of cash to pay for tuition for Iranians studying
abroad, spare parts for civilian aircraft, and for humanitarian purchases of food and medicine.
In April 2015, the parties agreed on fuel reductions, centrifuges reduction and external inspection
along with many other things. This was known as the Lausanne Accord.
July 14th 2015: The deal struck between Iran and the P5+1 in Vienna. It is broadly in line with the
parameters of the Lausanne accord of April.
Under the deal Iran will have to do the following in next 15 years
! Reduce number of centrifuges from 20,000 to about 6,000. Centrifuges are used to enrich
uranium.
! Uranium can be enriched to only to 3.67%. That too this can only be used for generating
electricity.
! Reduce its stockpile of enriched uranium from 10,000 kg to 300 kg.
! Allow International Atomic Energy Agency (IAEA) inspectors to inspect its nuclear sites, uranium
mines and mills, centrifuge factories.
! Nuclear facility at Natanz will be as a physics laboratory and not for enriching Uranium.
! In return, US and EU will suspend the sanctions after IAEA verifies that all the above steps have
been taken
Why the deal entered?

By US/world powers/significance:
! It will stop Iran from possessing nuclear arms. According to Obama, it was the best way of
limiting Iran’s nuclear ambitions.
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! Military action wasn’t either possible (due to USE weariness in Afghanistan), nor desirable.
! Stability in Iraq and Afghanistan (the 2 neighbours of Iran) is of vital importance to US as well
Iran. The rise of the Islamic State (IS) has brought about a significant change in the geopolitical
situation in West Asia.
! Now the world can shift the focus to North-Korean (after Cuba and Iran, US should focus on
NK)
! Western Europe is looking for alternative gas supplies to lessen its dependence o Russia.
! Iran, already a key player in the region is likely to emerge stronger. Iran already has enhanced
influence in Lebanon, Syria, and Iraq and, most recently, Yemen.
By Iran:
! Sanctions have crippled all sectors of its economy. Its oil exports have drastically reduced. It will
also bring more investment.
! It would end Iran’s isolation from the world.
! President Hassan Rouhani, a relative moderate was elected 2 years ago on promise to reduce
Iran’s isolation.
! It will “encourages” international cooperation to aid Iran’s civil nuclear R&D.
What are the Implications for India?

In the past, bilateral trade especially. In oil could not be expanded due to problems of transaction
through foreign banks; US pressure, but not anymore.
! The further decline in oil prices that is likely to follow the agreement will be a huge financial
boon for India, which imports most of its hydrocarbons. Some are speculating that oil could
hit as low as $20 a barrel once the West eases sanctions on Iran’s petroleum sector and Tehran
ramps up production in the coming months and years.
! The Iran nuclear deal has clearly opened up huge opportunities for the two countries to enhance
their bilateral trade including in sectors like food items, pharmaceuticals, gems and jewellery,
auto components, textiles and medical equipment.
! The lifting of sanctions on Iran will help in expediting work on the chabhar port
This will further improve the Indo-US relations as indo-ran relations were seen negatively by US.
It might open up opportunities for India and the US to work together with Iran on issues of common
interest.
Us Sanctions on Iran
In 2015 the Obama administrationled successful negotiations for a nuclear deal intended to dismantle
Iran’s nuclear weapons capabilities, and when Iran complied with it in 2016, sanctions on Iran were
lifted. The U.N. Security Council resolution that endorsed the 2015 deal, called on Iran to refrain from
testing ballistic missiles that could carry nuclear warheads.
But recently, Iran tested a missile that the USA says defied the UN resolution. In response to that USA’s
Trump Administration has announced new sanctions against Iran.
Later, the Iranian Revolutionary Guard carried out extensive military exercises in the Iran, calling the
manoeuvres a response to US President Trump’s sanctions. Iran’s supreme leader , Ayatollah Ali
Khamenei, had called on Iranians to use the anniversary of the revolution, which overthrew the U.S.-
backed shah in 1979, as an opportunity to “respond” to the Trump administration’s forceful rhetoric.
This year’s gathering paid notice to the deep U.S. political divides over Trump’s executive order to bar
entry from seven Muslim-majority countries, including Iran. The demonstrations were a message to
the USthat Iran will not bow to any threats or Sanctions from the west.
In this context, the history of sanctions against Iran and reasons for them has been analysed. Though
sanctions which have been recently imposed are not severe, but if the tension escalates furtherit can
lead to implications globally.
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The current friction between the US and Iran is in contrast to the easing of tensions that took place
under the Obama administration. In 2015 the Obama administrationled successful negotiations for
a nuclear deal intended to dismantle Iran’s nuclear weapons capabilities, and when Iran complied
with it in 2016, sanctions on Iran were lifted. The U.N. Security Council resolution that endorsed
the 2015 deal, called on Iran to refrain from testing ballistic missiles that could carry nuclear
warheads.
Why was it in the news recently?

Recently in Feb, Iran has test-fired a medium-range missile, which the US contends violated a UN
Security Council resolution proscribing missiles that could carry a nuclear device. Tehran has
confirmed it tested a ballistic missile, but denied it was a breach of a 2015 nuclear deal with world
powers or UN resolutions.The current sanctions are against 13 individuals and 12 entities thatare
linked to Tehran’s ballistic missile program and its proxies across the Middle East.
Those individuals and companies sanctioned are prohibited from doing any business in the United
States or with American citizens. Foreign companies that do business with the targeted individuals
and companies risk being blacklisted by the United States.
History of Sanction since 1979

Following the Iranian Revolution of 1979,Iran and USA share no formal diplomatic relations. The
two nations instead of exchanging ambassadors, maintains an interests sections. Iran maintains
an interest sections at the Pakistani Embassy in Washington, D.C. while the USA has maintained a
corresponding interests section at the Swiss Embassy in Tehransince 1980s.
Since 1979 the US imposed economic sanctions against Iran and expanded them in 1995 to include
firms dealing with the Iranian government. In 2006, the UN Security Council passed Resolution and
imposed sanctions after Iran refused to suspend its uranium enrichment program. U.S. sanctions
initially targeted investments in oil, gas, and petrochemicals, exports of refined petroleum products,
banking and insurance transactions (including with the Central Bank of Iran), shipping.
Over the years, sanctions have taken a serious toll on Iran’s economy and people. Since 1979, the
United States has led international efforts to use sanctions to influence Iran’s policies, including
Iran’s uranium enrichment program, which Western governments fear is intended for developing
the capability to produce nuclear weapons. Iran counters that its nuclear program is for civilian
purposes, including generating electricity and medical purposes.
Sanctions have reduced Iran’s access to products needed for the oil and energy sectors, have
prompted many oil companies to withdraw from Iran, and have also caused a decline in oil production
due to reduced access to technologies needed to improve their efficiency. Consequently, crude oil
prices have risen up due to restricted supply.
The Iran Nuclear Deal 2015

In, 2015, the P5+1 and Iran, meeting in Lausanne, Switzerland, reached a historic accord to limit
Tehran’s nuclear ability in return for lifting international oil and financial sanctions. Key Highlights
of the Deal are:
! An atomic bomb can be made from two types of radioactive materials: uranium or plutonium.
The talks were aimed at curbing Iran’s ability to put these two elements to use in weapons. In
each case, the manufacturing starts with uranium ore.
! Curbing the Uranium Path: Iran has agreed to transform its deeply buried plant at Fordo into a
centre for science research. Another uranium plant, Natanz, is to be cut back rather than shut
down. Some 5,000 centrifuges for enriching uranium will remain spinning there, about half the
current number. Iran has also agreed to limit enrichment to 3.7 percent and to cap its stockpile
of low-enriched uranium at 300 kilograms, or 660 pounds, for 15 years. That is considered
insufficient for a bomb rush.
! Curbing the Plutonium Path: Iran was constructing a nuclear reactor at Arak that would have
used natural uranium to produce Pu-239, which can fuel bombs. The agreement Iran has agreed
to redesign and rebuild the Arak reactor so it will not produce weapons-grade plutonium. The
original core of the reactor, which would enable the production of weapons-grade plutonium, will
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be made inoperable, but will stay in the country. Under the terms of the deal, the reactor’s spent
fuel, which could also be used to produce a bomb, will be shipped out of the country. Iran will
not build any additional heavy water reactors for 15 years.
! Ensuring That Iran Won’t Cheat: More than twice the size of Texas in area, Iran poses many
challenges for atomic inspectors who have to police the agreement and gain access not
only to scientists, labs and factories, but also to many underground sites and military bases.
The principal concerns were how to detect the covert sites. The agreement Iran has agreed
to provide the International Atomic Energy Agency greater access and information regarding
its nuclear program, and to allow the agency to investigate suspicious sites or allegations of
covert facilities related to uranium enrichment anywhere in the country. Inspectors will also
have access to the supply chain that supports Iran’s nuclear program, including uranium mines
and mills, and to continuous surveillance of centrifuge manufacturing and storage facilities.
! Timeline of the Agreement: The deal requires Iran to reduce its current stockpile of low-enriched
uranium by 98 percent, and limits Iran’s enrichment capacity and research and development for
15 years. Some inspections and transparency measures will remain in place for as long as 25
years. US clearly stated that this relief will be phased in. Iran must complete key nuclear steps
before it begins to receive sanctions relief i.e. Sanctions for arms could be lifted in five years,
ballistic missiles in eight.
Impact of Sanctions on India Relations

These sanctions are not severe and do not violate the spirit of agreement reached between P5+1
and Iran in 2015. However, situation could get worse due to adverse regime in US. Some of the
effects in such situation could be:
! India cannot freely buy crude-oil from Iran. This along with the fact that crude oil prices would
rise up due to restricted supply from OPEC cartel would worsen the Current account deficit
problem.
! Last Year India and Iran signed an agreement for a $150 million line of credit, from the Exim
Bank, for the development of the Chahbahar port. This development project could be derailed.
! A memorandums of understanding was also signed on provision of services by Indian Railways,
including financing to the tune of $1.6 billion, for the - Chahbahar-Zahedan railway line — a line
that is also part of the trilateral agreement between India, Iran and Afghanistan on a transit and
trade corridor. This project would also get hampered and Link between India and Afghanistan
via. Iran may not be realized.
! Oil and Natural Gas Corp (ONGC), discovered the Farzad-B gas field in the Farsi offshore block
in 2008, but was unable to get permission to develop it due to Western sanctions against Iran.
A considerable progress has been made on this but western sanctions could affect these
developments.
CONCLUSION
They are the first Iran sanctions of Mr Trump’s new presidency. There maystill be echoes of Obama’s
policies today, but the whole framework of the approach has changed now. Analysts say theimpact
of the sanctions is largely symbolic and will likely not have a large effect on Iran’s economy. But,
a new regime in USA with the ‘America First’ policy could nullify the gained grounds during 2015
deal.
Global Initiative Launched to Fight Fake News

CONTEXT
The post-truth era, widespread use of internet and proliferation of digital platforms have accorded
to new importance to the credibility of news items. When ‘news items’ have the possibility of
changing the political discourse, influencing elections, fomenting tensions, rebellions there is need
for media outlets, governments, business & tech giants and public at large to come together to fight
the epidemic of fake news. As part of this effort ‘the News Integrity Initiative” was launched by
Facebook, Google, Mozilla and other tech giants.
98 www.iasscore.in
What is fake news?
According to The Guardian, Fake news is a type of hoax or deliberate spread of misinformation
(false information), be it via the traditional print or broadcasting news media or via Internet-based
social media. To qualify as fake news, a story has to be written and published with the intent to
mislead in order to gain financially or politically.
The driving forces behind this false information are incredibly diverse and range from simple error,
misunderstandings or misinterpretation all the way to malpractice or even willful malice by sources
attempting to drive a particular agenda. Malicious sources can range from governments spinning
a false narrative to scammers trying to make a quick ad buck.
Expansion of digital mediums of communication, social media platforms like Facebook newsfeed
give new wings to fake news.
Disinformation (the purposeful construction of true or partly true bits of information into a message
that is, at its core, misleading) has become the main vehicle in post-truth era, where truth is mixed
with falseness to influence the minds of the populace.
What is the new initiative to tackle fake news?

A group of tech industry leaders, academic institutions, non-profits and other organizations are
jointly launching a $14 million fund to support the News Integrity Initiative, a global consortium
focused on helping people make informed judgments about the news they read and share online.
The Initiative’s mission is
to advance news literacy,
to increase trust in journalism around the world, and
to better inform the public conversation.
The Initiative will fund applied research and projects, and convene meetings with industry experts.
The initiative’s mission is ”to advance news literacy, to increase trust in journalism around the world
and to better inform the public conversation”.
The founding funders are Facebook, the Craig Newmark Philanthropic Fund, the Ford Foundation,
the Democracy Fund and others.
What else can be done to fight fake news?
A number of steps or efforts can be made to tackle fake news. These include efforts from media
organizations, governments, public etc.
Awareness creation and teaching:

Telling people students about what a fake news looks like:
Is the story missing a byline? Is the headline in ALL CAPS? Is there excessive punctuation? Are they
promising you something “the media” doesn’t want you to know?
Who published it? Is the tone a little sensational? Is the content genuinely trying to inform you?
Accountability: it must be ensured that those who published fake news are held accountable
through penal provisions.
Information availability and reliability: fake news rely on absence of credible information.
Therefore governments, media houses must try to provide credible information to people to fight
disninformation campaign with information campaign. Facebook has also ramped up efforts to
flag news stories that may be false, and has launched a “journalism project” that aims to support
the news ecosystem.
Using technology like algorithms, Artificial intelligence to identify fake news. But this method
requires higher levels of sophistication which is missing at present.
Attacking on the funding source: Facebook and Google have already taken steps to cut off
advertising revenues to news sites promoting misinformation.
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Some other efforts to tackle fake news world over

The Czech government’s interior ministry, for instance, has opened a Centre Against Terrorism
and Hybrid Threats in a bid to fight fake news. The centre was set up after 40 Czech language
websites emerged containing false stories, predominantly about migrants. Specialists working for
the centre are attempting to counter false information via a dedicated Twitter account,
Facebook is already partnering with fact-checking organisations in Germany and France. As part
of a recent update, users are able to flag articles they suspect contain false information. These are
then handed over to an independent evaluation centre. When a false story is identified, rather than
being removed, it is tagged with a warning that it contains fake news and appears lower down in
users’ feeds.
Cross Check, a collaborative verification programme involving technology firms including Facebook
and Google.
Way forward
Since fake news can have devastating effect on the peace, stability, communal harmony, polity
of a nation all stakeholders must come together and try to understand the ecosystem of the fake
news and then attack on that ecosystem. Otherwise it will be very difficult to curb it. All kinds of
interventions like policy, technological, civil society must be ensured for it.
What Does US Recognition of Jerusalem Means?

ABOUT CONFLICT BETWEEN ISRAEL AND PALESTINE
The main source of conflict has been the decision on the border areas. The generally accepted view
is that the pre 1967 war border be accepted as the dividing line. However, the things have become
complicated as Israel has built settlements and borders with West Bank making it difficult to divide
the territory as with time the people in these settlements would grow. The independent state of
Palestine when created would thus have to be with a different border.
Jerusalem city
Jerusalem site is considered holy by all three religions - Christianity, Jewish and Islam. However,
these sites are all close to each other and thus the city can’t be effectively divided. So fight for
Jerusalem is over both faith and civic space.
Jerusalem has the Western Wall, part of the mount on which the Holy Temple stood, containing
the Holy of Holies, the most sacred Jewish site where Jews believe the foundation creating the
world was located.
It also contains the Dome of the Rock and Al-Aqsa Mosque, the third holiest site in Islam where
Abraham prepared to sacrifice his son and the Church of the Holy Sepulcher, where Jesus is
believed to have been crucified, and where he rose again.
Israel and Palestine both countries want to make Jerusalem their capital. A compromise had been
put forward by dividing the city into an Israel west and Palestine east. However Israel has built
settlements even in the eastern city.
In a move condemned by most of the world, US have announced that it will recognize Jerusalem
as the capital of Israel. This move can mean different for different players as follow:
! The peace process:
According to US, recognition of Jerusalem as the capital of Israel is the new peace mission in
Israel and Palestine. But the international community by voting indicates that it is disastrous
for any hopes of reviving meaningful talks. The status of Jerusalem is one of the pivotal
issues so there must be agreement between the two parties in negotiations.
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! The state of Israel:

The Israeli government has welcomed this decision because since it has captured (and later
annexed) East Jerusalem in 1967 six-day war and has claimed the city as its “eternal and
undivided” capital, It is waiting for international recognition.
About 200,000 Israelis living in settlements in occupied East Jerusalem which is illegal
under international law will also celebrate this move of US.
! The Palestinians:
It will end the hopes and demands of Palestinians for East Jerusalem as a capital of a future
independent Palestinian state. They won’t see US as a resolver rather they feels that this
move by US will worsen their situation.
! The region around Jerusalem:
This move will further destabilize an already volatile region (Middle-East region). The country
like Turkey and Saudi Arabia strongly opposed US on such decision. The Arab countries that
border Israel – Egypt, Jordan, Lebanon and Syria – have all condemned the move.
! Europe:
Most western European countries will be deeply alarmed by US recognition of Jerusalem as
Israel’s capital. Moreover, EU may take action, such as robustly enforcing bans on imports
from West Bank settlements and refusing to deal with Israeli businesses operating in
occupied territory, setting itself on a clearly differentiated course from that of the US.
! The city itself:
In 2015, Palestinians made up 37% of the city’s population. About three-quarters live below
the poverty line and 25% live in neighborhoods cut off from the rest of the city by the
separation barrier. So, this US move will increase their hardship rather than reducing. The
people may become violent which will lead to more instability.
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UN Resolution
The UN draft resolution affirmed “that any decisions and actions which purport to have altered the
character, status or demographic composition of the Holy City of Jerusalem have no legal effect,
are null and void and must be rescinded in compliance with relevant resolutions of the Security
Council”.
The draft UN resolution had also called upon all countries to refrain from establishing diplomatic
missions in Jerusalem.
The resolution reaffirmed what has been the United Nations’ stand on the divided holy city since
1967- that Jerusalem’s final status must be decided in direct negotiations between Israel and the
Palestinians.
128 of the UNGA’s 193 member-countries voted for the resolution, and only nine against it.
No country has veto powers in the General Assembly, unlike in the 15-member Security Council
where the United States, along with Britain, China, France and Russia, can block any resolution.
While resolutions by the General Assembly are non-binding, a strong vote in support of the
resolution would carry political weight.
India’s Stand
By voting for the resolution, India has affirmed its traditional policy in favour of a negotiated
settlement for Jerusalem as part of a larger two-state solution for Israel and Palestine.
In recent months, there has been a noticeable change in the formulation of Indian statements on
the Palestine problem, with the phrase ‘East Jerusalem’ being absent.
This had given rise to a doubt about India’s vote in the General Assembly. It is probable that India
was in any case going to vote in favour of the Egyptian draft, given its need not to antagonise the
entire Muslim world.
The American ultimatums might just have tilted the balance. The government, no doubt, analysed
the cost-benefit ratio.
India’s vote would have disappointed Israel and the U.S.
CONCLUSION
One state solution (only Palestine or only Israel) is not a viable option. The best solution is a ”two-
state solution” that would establish Palestine as an independent state in Gaza and most of the
West Bank, leaving the rest of the land to Israel. Though the two-state plan is clear in theory, the
two sides are still deeply divided over how to make it work in practice.
The need of the hour is to treat this conflict as Israeli-Arab conflict rather Israel-Palestine. All
stakeholders should participate in the negotiations and the final agreement should be recognized
formally by each one of them along with UN General Assembly and Security Council. It is time
for the international community to find a just and lasting peaceful solution to the World’s most
intractable conflict soon.
Yemen War and Implications

INTRODUCTION
Yemen, one of the Arab world’s poorest countries, has been devastated by a war between forces
loyal to the internationally-recognised government of President Abdrabbuh Mansour Hadi and
those allied to the Houthi rebel movement.
More than 8,600 people have been killed and 49,000 injured since March 2015, many of them in air
strikes by a Saudi-led multinational coalition that backs the President.
The conflict and a blockade imposed by the coalition have also left 20 million people in need of
humanitarian assistance and created the world’s largest food security emergency.
102 www.iasscore.in
Brief History:
2011: Ali Abdullah Saleh (Sunni) was president, and Mohsen al Ahmar was army chief. Saleh
wanted to make his son (Ahmed Ali Saleh), to become army chief, Ahmer opposed this move.
Thus, army gets divided into two factions and became weak.
Abdul Malik al Haudi, leader of Haudi people (Shia), who thinks they have been deprived for years,
took advantage of weak army.
Haudi rebellion started to take over Saleh administration. Iran, which is Shia country started
helping Haudis in this endeavor. Haudi started expanding in Shia majority areas like Sana’a.
Saleh took help form Saudi Arabia. As Saudi wanted to check expansion of Iran (Shia-Haudi) in
Yemen. Saudi Arabia started bombing in Haudi dominated areas.
2012: Saleh resigned, Mansour Hadi become new president. Hadi replaced Ahmar with Ahmed
Awar bin Mubarak.
2013: Meanwhile, Al-Qaeda was expanding in south Yemen.
2014: Haudi rebels had taken Sana’a (capital of Yemen). Hadi concentrated all military power in
north Yemen but failed to check Haudis. So, he made peace deal with Haudis, to give political
representation to Haudis.
2015: Hadi was under house arrest. But Hadi managed to flew to Saudi Arabia. Now Saudi Arabia
started bombing all over Yemen. Proxy war started. On one side Haudis+Iran on other hand Hadi+
Saudi Arabia + Jordon, Sudan, USA, UK, France, Egypt etc.
In August 2015, port Al-Hudaydhah was bombed. All food supply to Yemen was stopped. And it
became one of the largest manmade disasters in 21st century.
April 2015 operation Raahat, led by V.K.singh was done.
2016, 2017: War continues.
A Grave Situation of Civilians

By 29 October 2017, at least 5,159 civilians - more than 20% of them children - had been killed and
8,761 others injured, according to the UN. Saudi-led coalition air strikes were the leading cause of
child casualties as well as overall civilian casualties.
Two million Yemenis are currently internally displaced due to the conflict and 188,000 others have
fled to neighboring countries.
Mounting rubbish, failing sewerage and wrecked water supplies have led to the worst cholera
outbreak in recent history. The country is on the brink of famine.
The UN Office for the Coordination of Humanitarian Affairs says that there are now 1.5 million
children who are acutely malnourished, with 375,000 of them suffering from severe acute
malnutrition. Six million people in Yemen receive rations from the UN World Food Program, which
has had to scale back its operations.
Livelihoods have been destroyed. The price of goods has skyrocketed. Import of food, fuel and
medicines are severely limited.
Saudi aircraft have also hit two Doctors Without Borders hospitals, forcing the charity to withdraw
from six other hospitals in northern Yemen. The medical system in Yemen is now in disarray.
Why should this matter for the rest of the world?

Yemen is strategically important because it sits on the Bab al-Mandab strait, a narrow waterway
linking the Red Sea with the Gulf of Aden, through which much of the world’s oil shipments pass.
Yemen is also important for India because of the presence of Al-Qaida there. If the war in Yemen,
which is essentially against the government that has already lost its control over the Capital city
Sana’a, goes on for some more time, then the possibility of more involvement of Pakistan, Turkey
and Iran will increase.
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Way forward
The war in Yemen, as has been said earlier, is essentially local in nature. It is not exactly a Sunni
versus Shia war. It has multiple dimensions. Hence, Yemenis should be allowed to settle their
problems of governance and tribal rivalries peacefully with the help of the UN.
CONCLUSION
The Gulf and the Arabian Peninsula form part of the extended neighborhood of India. Any turmoil
there would affect India in more ways than one; specifically, its oil imports and the presence of
large workforce. Therefore, India cannot restrict its role to evacuating people from the war-affected
areas alone. It has to have a broader perspective of the region including expansion of conflicts.
That scenario has begun to look real in the present context.
Why Saudi Arabia is Moving Towards Reforms?

INTRODUCTION
The new Crown Prince has worked actively in diversifying the existing economy and the long
dependency of the country’s economy on fossil fuels. He has encouraged measures to promote
entrepreneurship, innovation, investment and other means to diversify the economy.
Recognizing that an economy wholly reliant on fossil fuel revenues is not sustainable, he has pushed
for a modernized economy that encourages innovation, entrepreneurship and outside investment.
He had openly led the battle against the fundamentalist forces in Saudi by stripping the infamous
Hai’a religious police of its powers and has even lifted the long existed and mocked law against the
women which did now allow them to drive.
Why Suddenly towards Reforms?

The reforms are must needed at present to bring Saudi Arabia into a global leadership role in the 21st
century. The reforms are designed to improve gender equality, promote economic diversification,
root out corruption and make it more open and attractive to visitors.
The most momentous of these have been on gender equality by allowing girls in public schools to
play sports and get physical education, allowing women the right to drive in the country, encouraging
women entrepreneurship and ensuring women’s active participation in administration as well.
Other than the major social impact, shrewd economic thoughts are behind these measures, as
increasing women’s participation in the workplace will boost the economy and combat corruption.
“The National Transformation Programme 2020” and “Vision 2030” aims to capitalize on the
Kingdom’s youth dividend by opening up the country to more employment opportunities through
sports and entertainment and to empower women.
Opening the country to more entertainment, allowing musical concerts and even a Comic-Con event
(a three-day festival of anime, pop art, video gaming and film-related events in 2017) was part of a
wide-ranging push to reform the economy and society and restore the “moderate” face of Islam.
Equally far-reaching are efforts to open up the Kingdom to outsiders, by offering tourist visas for
foreigners, from this year, and creating facilities to promote the country as a tourist destination.
Doing away with the kingdom’s conservative rules, the plan is to project Red Sea as an unparalleled
tourist destination along with development of leading global hospitality firms.
Over 18 million foreigners visited Saudi Arabia yearly, almost all on pilgrimage to Mecca. As tourism
is the country’s second-most important sector, the Red Sea project will spearhead the diversification
of the Saudi’s leisure industry.
Saudi is known for fair punishment for the crimes. By detaining the high profile entrepreneurs and
11 Princes, including a son of former King Abdullah and multi-billionaire Alwaleed bin Talal on the
104 www.iasscore.in
charges of corruption, the nation has sent out a clear message that even the royal family is not
immune from facing the law.
The Crown Prince plans this year to sell about five per cent government stake in Aramco, the
national oil company. He intends to create the world’s largest sovereign wealth fund, worth up to
$3 trillion, with money generated by partially privatising Saudi Aramco.
He also plans to create a $500 billion business and industrial zone extending to Jordan and Egypt.
The 26,500 sq km city, known as NEOM, will focus on industries including advanced manufacturing,
biotechnology, energy, entertainment, food and water. It will be powered entirely with wind power
and solar energy.
CONCLUSION
Saudi Arabia through these reforms is moving towards a greater liberalism, democracy, pluralism
or freedom of speech under the Kingdom. The reform made is/are most welcomed by the citizens
who are not religious conservatives and are aware of global changes in order to involve Saudi
Arabia in the arena of global leadership.
Reforms are must if the Saudi government is to defuse a demographic time bomb that makes it
essential to create jobs at fast pace. The shrinking Saudi state cannot provide enough jobs for
these new workers and unemployment is growing, hitting 12.7 percent earlier this year, underlining
the priority of private sector growth.
Meanwhile, Prince Mohammed faces a Saudi public that remains religiously conservative. That
means he still needs public support from the state’s top clerics in order to position his reforms as
Islamic and religiously permissible.
Rohingya Repatriation Deal Signed

INTRODUCTION
An estimated 615,000 Rohingya refugees have fled across the border into Bangladesh since
August 25 when a new outbreak of violence began between the Myanmar military and armed
militants in Rakhine state.
Thus to meet the challenge, Bangladesh and Myanmar have signed a deal for the return of
hundreds of thousands of Rohingya refugees, who have taken shelter in the border town of Cox’s
Bazar after a brutal crackdown by the military.
Under the deal, the repatriation process is expected to begin in two months. The two countries,
however, agreed to form a joint working group at the Foreign Secretary-level to start the repatriation
process.
The basic conditions of the agreement come from an older repatriation deal signed by both parties
in 1992. Myanmar insisted on adhering to the conditions of the 1992 agreement.
The deal was based on a 1992/93 repatriation pact between the two countries that followed a
previous spasm of violence.
The agreement comes after Myanmar’s de facto leader Aung San Suu Kyi met Bangladesh’s
foreign minister to resolve one of the biggest refugee crisis of modern times.
ABOUT ROHINGYA ISSUE

Who are Rohingyas?
Rohingya is ethnic Muslim minority group, largely comprising Muslims living primarily in
Myanmar’s western Rakhine state.
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They differ from Myanmar’s dominant Buddhist groups religiously, ethnically and linguistically.
They practice a Sufi-inflected variation of Sunni Islam.
They speak Bengali dialect, as opposed to commonly spoken Burmese language in Myanmar.
What is their status?

Myanmar considers Rohingya’s as illegal Bengali immigrants, despite fact that many they have
resided in Rakhine province of Myanmar for centuries.
Myanmar government even refuses to grant them citizenship status, and as a result they do not
have any legal documentation, effectively making them stateless.
They are restricted from freedom of movement, state education and civil service jobs.
The stateless Rohingya have been the target of communal violence and vicious anti-Muslim
sentiment in mainly Buddhist Myanmar for years.
They have also been systematically oppressed by the government, which stripped the minority of
citizenship and severely restricts their movement, as well as their access to basic services.
Human rights violation

Before August, there were already around 307,500 Rohingya refugees living in camps, makeshift
settlements and with host communities. according to the UNHCR.
Most Rohingya refugees reaching Bangladesh - men, women and children with barely any
belongings - have sought shelter in these areas, setting up camp wherever possible in the difficult
terrain and with little access to aid, safe drinking water, food, shelter or healthcare.
Of the 537,000 refugees who have arrived since August 58% are are children, while 60% of the
adults are women.
Details of the Deal

Initially, only the Rohingya, who have fled to Bangladesh after October 2016, will be sent back.
Rohingya’s who have been living since before the October 2016 Rohingya crisis will be sent back
later.
According to the terms, the repatriation will require proof of residency in Myanmar.
The agreement refers to the Rohingya as “displaced Myanmar residents.”
They will have to produce copies of documents issued in Myanmar which indicate they are residents
of Myanmar. This extends to, but is not limited to, citizenship identity cards, national registration
cards, temporary registration cards, business ownership documents, school attendance, etc.
Any refugee documentation issued by the United Nations High Commission for Refugees (UNHCR)
will also be subject to similar verification.
A joint working group is to be established within three weeks of signing to oversee the repatriation
process. The process has to commence within two months after the signing. Both governments
have agreed not to develop or implement any policy which may discriminate against any particular
community and/or violate universally agreed principles on human rights.
Myanmar has also agreed to not prosecute or penalize any of the repatriated for illegal exodus
and return, unless they are found to be specifically involved in terrorist or criminal activities.
After the repatriation, both governments will not provide residency or citizenship to any illegal
immigrants.
The Myanmar authorities will keep the Rohingya’s in temporary camps near to their abandoned
homes after they returned to their country.
The minister noted the agreement is legally binding, but greatly depends on the sincerity of both
governments to implement it successfully.
Bangladesh suggested Myanmar to take help from India and China on building the makeshift
camps for Rohingya’s as the two countries have experience on it.
106 www.iasscore.in
There has been widespread condemnation of the Myanmar government’s actions
The UN Security Council appealed to Myanmar to stop the violence but no sanctions have been
imposed.
The US urged Myanmar’s troops to respect the rule of law, stop the violence and end the
displacement of civilians from all communities”.
China says the international community “should support the efforts of Myanmar in safeguarding
the stability of its national development”.
Bangladesh plans to build more shelters in the Cox’s Bazar area but also wants to limit their travel
to allocated areas.
Myanmar urged displaced people to find refuge in temporary camps set up in Rakhine state but
hadded that Myanmar would not be able to allow all those who fled to Bangladesh to return.
The UK Disasters Emergency Committee launched an appeal for funds to help the refugees and
their overstretched host communities. UK Prime Minister Theresa May also said the military action
in Rakhine had to stop. The UK has suspended training courses for the Myanmar military.
Concern
Rights groups have raised concerns about the process, including where the minority will be resettled
after hundreds of their villages were razed, and how their safety will be ensured in a country where
anti-Muslim sentiment is surging.
CONCLUSION
Bangladesh has always preferred problem-resolution with its neighbours through dialogue and
negotiations. Thus the Arrangement signed between Bangladesh and Myanmar is a positive
development. The success of the Arrangement depends on how effectively the repatriation is
completed within a specific timeframe.
**********
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Content

1. GLOBAL POWERS ..............................................................1

2. INTERNATIONAL ORGANIZATIONS & AGREEMENT................ 44

3. GLOBAL ISSUES .............................................................. 85

China’s reaction to it:

DEFENCE COOPERATION BETWEEN INDIA AND USA

What are the challenges ahead?

NEW PHARMA RULE OF US AND ITS IMPACT ON INDIAN PHARMACEUTICALS

Why US bring this new rule?

What was the old policy?

How it will impact India?

WTO RULE IN FAVOUR OF USA IN SOLAR POWER CASE

What is the issue all about?

US stand in this case?

What is India’s stand in this case?

WTO panel stands in this case

Is there basis for domestic content requirement?

Impact of this decision

Options for India

INDIA, U.S.A MARITIME SECURITY DIALOGUE

Key points of the dialogue

It focused on strategic maritime security issues like:

Why India must guard its maritime boundary?

India-US recent developments in securing defence ties

India’s engagement with multiple partners can be discussed as:

Why is India engaging in multiple agreements?

Additional measures India can take to address the maritime challenges

INDIA-USA TIES: LEMOA

Key features of LEMOA agreement are:

EU’s issues with India

EU released its strategy on India after 14 years.

This road map replaces 2004 EU-India Declaration

its security policy Need for EU to work closely with India

promoting rules based global working for security and stability

Coordination on humanitarian Aiming Fighting terrorism Exchanging expertise on

India’s Issues with EU

Other areas of conflict:

What are the outcomes of the recent visit?

Flashpoints of India-Japan Annual Summit (December 11-13, 2015)

Civil Nuclear Agreement

India and Japan Signed 15 Other Agreements

Japan’s Financial Assistance to India

Military and Strategic Agreements

Deepening the Economic Ties

Elevating Bilateral Relations into “Spl Strategic & Global Partnership

Economic Ties Mutually Beneficial

Growth in bilateral relations:

PM Modi’s visit to Japan

Initiation of a new ‘2+2

India- Japan Relations : Convergence

Signing of civilian nuclear agreement

Signing of defence Defence and strategic

Geopolitically, both have interests in the indo -

Various recent measures like negotiations (esp. in light of a belligerent China)

Japan has a greying population

Quadrilateral Asia - Africa

Appendix: Asia-Africa Growth Corridor (AAGC)

DETAILS OF THE PLAN:

How will it be a Win-Win Situation for India, Japan and Africa?

Key Takeaway from Prime Minister’s Recent Visit to France

About Rafale deal

 Between  Govt (ministry of defence) was  It is a G-to-G deal.

 Cost  Not desclosed  It is lower then the earlier one

Between Govt (ministry of defence) was It is a G-to-G deal.

Cost Not desclosed It is lower then the earlier one

Hereby, analyzing the role of World Bank in social development of India.