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  • Foreign Policy Watch: India-Pakistan

    Why Neutral Expert’s decision on Indus Water Treaty is a win for India?

    23 January 2025 | Explained | International Relations
    Mains Paper 2: India & Its Neighborhood – Relations

    Why in the News?

    A neutral expert appointed by the World Bank has supported India’s stance on how to resolve disputes with Pakistan over the Kishanganga and Ratle hydroelectric projects.

    What are the key features of the Indus Water Treaty?

    The IWT was signed on September 19, 1960, by Indian Prime Minister Jawaharlal Nehru and Pakistani President Ayub Khan, with the aim of regulating the use of water from the Indus River and its tributaries between India and Pakistan after extensive negotiations facilitated by the World Bank.

    • Permanent Sharing of Water: The IWT ensures a clear division of water resources, allowing peaceful coexistence of water usage.
    • Run-of-the-River Projects: India is allowed to build hydroelectric power projects on the Western Rivers, provided they do not obstruct natural river flows.
    • Role of the World Bank: As a mediator, the World Bank facilitates the appointment of experts or arbitral bodies in case of disputes.
    • Modification Provisions: Article XII (3) allows amendments to the Treaty through mutual consent.

    What are the Disputes around the Indus Water Treaty?

    • Run-of-the-River Projects: India’s construction of run-of-the-river hydroelectric projects, such as Kishanganga (a tributary of Jhelum) and Ratle (on the Chenab) has faced objections from Pakistan. Pakistan claims these projects could disrupt downstream water flow and utilisation, while India asserts they comply with the provisions of the Indus Waters Treaty (IWT).
    • Dispute Resolution Mechanism: Pakistan sought arbitration at the Permanent Court of Arbitration (PCA), but India contested its jurisdiction and emphasised using the Neutral Expert process as outlined in the treaty. India views this process as a treaty-compliant method for resolving technical differences:
      • Whether the pondage capacity of the two dams follows the limits set by the Indus Waters Treaty (IWT).
      • Whether the turbine intakes in the design comply with the rules of the IWT.
      • Whether the outlets below the dead storage level meet the IWT guidelines.
      • Whether the gated spillway designs of each plant align with the IWT provisions.
    • Trust Deficit: The lack of trust and strained relations between India and Pakistan undermines effective cooperation under the IWT. This atmosphere of distrust restricts constructive dialogue and hinders the timely resolution of disputes, affecting the treaty’s overall effectiveness.
    • Climate Change Impacts: Changing precipitation patterns and altered runoff due to climate change challenge the treaty’s assumption of fixed water availability. The IWT does not account for these uncertainties, increasing the risk to water-sharing agreements.
    • Evolving Needs: The treaty’s framework does not address the rising industrial and agricultural demands of both countries. Growing population and economic activities highlight the need for flexible mechanisms to ensure equitable and sustainable resource sharing in the future.

    How does the present decision highlight favourable implications on the Indian part?

    • Vindication of India’s Position: The Neutral Expert, Michel Lino, upheld India’s stand that the disputes over the Kishenganga and Ratle HEPs fall under his jurisdiction, as per Annexure F, Part I of the IWT. This challenges Pakistan’s attempt to bypass the Neutral Expert process and proceed directly to the PCA.
    • Preservation of Treaty Provisions: India’s participation in the Neutral Expert proceedings demonstrates its adherence to “Treaty-consistent mechanisms” while boycotting PCA proceedings that it considers beyond the IWT framework.
    • Recognition of India’s Hydroelectric Rights: The ruling supports India’s right to construct run-of-the-river projects within the provisions of the Treaty, boosting its ability to harness renewable energy from the Western Rivers.
    • Strengthening India’s Diplomatic Stance: The decision highlights Pakistan’s lack of adherence to the Treaty’s dispute resolution process, strengthening India’s argument for Treaty modification.
    • Potential for Treaty Revision: India’s formal notices in 2023 and 2024 to review and modify the Treaty gain momentum, emphasising the need to address demographic changes, clean energy goals, environmental concerns, and the impact of cross-border terrorism.

    Way forward: 

    • Revise the Indus Waters Treaty Framework: Advocate for Treaty modifications to address evolving needs like climate change impacts, rising industrial and agricultural demands, and demographic shifts, ensuring equitable and sustainable water-sharing mechanisms.
    • Strengthen Dispute Resolution Mechanisms: Promote adherence to Treaty-sanctioned processes like the Neutral Expert mechanism, fostering trust, cooperation, and timely resolution of technical disagreements while upholding India’s hydroelectric and clean energy rights.

    Mains PYQ:

    Q Present an account of the Indus Water Treaty and examine its ecological, economic and political implications in the context of changing bilateral relations. (UPSC IAS/2016)

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  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    Is the government encouraging ‘crosspathy’?

    23 January 2025 | Explained | Indian Society
    Mains Paper 1: Population & Associated Issues

    Why in the News?

    Recently, Maharashtra Food and Drugs Administration has allowed homeopathic doctors, who completed a course in modern medicine to prescribe allopathic medicines.

    What is the difference between Homeopathy and Allopathy?

    • Homeopathy uses natural substances in tiny doses to help the body heal, while allopathy uses medicines or treatments to directly fight or treat diseases based on science and evidence.

    What is crosspathy?

    • Crosspathy refers to practitioners from one medical system (e.g., homoeopathy) treating patients with medicines from another system (e.g., allopathy).

    Why did the Maharashtra FDA issue a directive allowing homoeopathic practitioners to prescribe allopathic medicines?

    • Addressing Doctor Shortage: The directive aimed to tackle the severe shortage of doctors, particularly in rural areas, where there is a lack of healthcare professionals, especially specialists.
    • Expanding Healthcare Access: By allowing certified homoeopathic practitioners to prescribe allopathic medicines, the Maharashtra FDA sought to expand healthcare services and make treatment more accessible to patients in underserved regions.
    • Promoting Integrative Medicine: The directive is part of a broader initiative to promote integrative or integrated medicine, where different medical systems, such as homoeopathy and allopathy, are used to complement each other in patient care.

    What is the Supreme Court’s stance on ‘crosspathy’?

    • The Supreme Court (SC) has consistently held that cross-system practice (practicing medicine from a system one is not qualified for) is a form of medical negligence.
    • Poonam Verma vs Ashwin Patel (1996) – A homoeopath was held liable for prescribing allopathic medicines that resulted in a patient’s death.
    • Crosspathy is only allowed where state governments have specifically authorized it through special orders.

    What are the challenges faced by govt?

    • Doctor Shortage: India faces a significant shortage of doctors, especially in rural areas, where the Health Dynamics of India 2022-23 report highlights an 80% deficit of specialists in community health centres. As of June 2022, there were 13.08 lakh allopathic doctors and 5.65 lakh AYUSH practitioners, indicating an insufficient number of qualified professionals to meet healthcare demands.
    • Integration of AYUSH Practitioners: While AYUSH practitioners could potentially fill healthcare gaps, there is no systematic approach to integrating them effectively, which could lead to poor outcomes.
    • Risk to Patients: Allowing unqualified practitioners to prescribe allopathic medicines could result in medical errors and negligence, raising concerns about patient safety.
    • Opposition from Professional Bodies: Organizations like the Indian Medical Association (IMA) strongly oppose crosspathy, questioning its legality and the risks posed to patients.
    • Regulatory Uncertainty: Lack of clarity on who has the authority to issue such directives and manage cross-system practice leads to legal and administrative challenges.

    Way forward: 

    • Clear Regulatory Framework: Establish clear guidelines and regulations for integrating different medical systems to ensure patient safety and effective healthcare delivery, with proper qualifications for practitioners.
    • Address Doctor Shortage Strategically: Focus on training and deploying more allopathic doctors, especially in rural areas, while ensuring AYUSH practitioners are properly integrated into the healthcare system through structured programs.

    Mains PYQ:

    Q Public health system has limitation in providing universal health coverage. Do you think that private sector can help in bridging the gap? What other viable alternatives do you suggest? (UPSC IAS/2015)

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  • Artificial Intelligence (AI) Breakthrough

    What is U.S.’s new rule for exporting AI chips?

    23 January 2025 | Explained | Economics
    Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Why in the News?

    The U.S. Bureau of Industry and Security (BIS) created a system with different levels to control the sale and export of AI chips and technology more effectively.

    What is the main objective behind one of the last orders of the Biden administration? 

    • National Security and Foreign Policy: The primary goal of the BIS regulations is to enhance control over the circulation of advanced AI technology and chips to align with U.S. national security and foreign policy interests.
      • The regulations aim to prevent sensitive technologies from reaching adversarial nations, thereby mitigating risks associated with military advancements and cyber operations.
    • Secure Technology Ecosystem: The regulations are designed to cultivate a secure and trusted technology ecosystem that promotes the responsible use and diffusion of AI technologies, ensuring that advanced AI capabilities do not fall into the hands of U.S. adversaries.

    How will the tiered framework for licensing and exporting Artificial Intelligence chips work? 

    • Three-Tier System: The new regulations categorize countries into three tiers based on their relationship with the U.S.:
      • Tier 1: No restrictions for exports to 18 U.S. allies, including Australia, Canada, and Japan.
      • Tier 2: Countries like China and India face caps on volumes and require Validated End User (VEU) authorization for transactions contributing to advanced AI development.
      • Tier 3: Arms-embargoed countries such as North Korea and Iran have no access to advanced AI technology.

    How has the tech industry responded to the move? 

    • Concerns Over Competitiveness: Major tech companies, including NVIDIA and Oracle, have expressed apprehension that these regulations could undermine U.S. competitiveness in the global tech landscape.
      • They argue that restricting access to widely available technologies may not enhance security but instead hinder innovation.
    • Call for Revisions: Industry leaders hope that the incoming administration will reconsider or withdraw these regulations, citing potential disruptions to business operations and global supply chains.

    Will it affect the Indian Economy?

    • Impact on AI Growth: As India invests heavily in its National AI Mission, which aims to develop infrastructure with over 10,000 GPUs through a ₹10,000 crore investment, the restrictions could pose substantial challenges in scaling up AI capabilities post-2027.
      • The limits on GPU imports may deter innovation and slow down the growth of India’s tech sector.
    • Potential Delays in Infrastructure Development: Major data center providers in India, such as Tata Communications and CtrlS, may face delays or downsizing of their plans due to restricted access to GPUs. This could place Indian companies at a competitive disadvantage compared to their U.S. counterparts.
    • India’s Exclusion from Trusted Allies: India is not included in the list of trusted U.S. allies due to concerns over the leakage of chips to countries like Russia.

    Way forward: 

    • Strengthen Domestic AI Capabilities: India should accelerate the development of indigenous AI technologies and chips to reduce reliance on foreign imports, invest in local R&D and foster partnerships with global tech firms for technology transfer.
    • Diversify Global Alliances: India could strengthen its technological partnerships with countries outside the U.S. and explore alternative markets to source AI chips, ensuring the diversification of its supply chains to mitigate the impact of export restrictions.

    Mains PYQ:

    Q “The emergence of the Fourth Industrial Revolution (Digital Revolution) has initiated e-Governance as an integral part of government”. Discuss. (UPSC IAS/2020)

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    [pib] Diamond Imprest Authorization (DIA) Scheme

    23 January 2025 | Schemes | Economics
    Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Why in the News?

    The Department of Commerce under the Ministry of Commerce and Industry has launched the Diamond Imprest Authorization (DIA) Scheme to bolster the global competitiveness of India’s diamond sector.

    About the Diamond Imprest Authorization (DIA) Scheme

    • The DIA Scheme permits duty-free import of natural cut and polished diamonds for export purposes.
    • It mandates an export obligation with a value addition of 10%.
    • Objective: To retain India’s leadership in the global diamond industry value chain by facilitating ease of doing business.
    • It will be implemented starting April 1, 2025.
    • Features of the Scheme:
      • Duty-Free Import: Allows duty-free import of natural cut and polished diamonds of less than ¼ Carat (25 Cents).
      • Export Obligation: Requires a minimum 10% value addition to ensure beneficiation.
      • Eligibility: Open to Two Star Export Houses and above; Exporters with annual exports of at least USD 15 million are eligible.
      • Support for MSMEs: Provides a level playing field for smaller exporters, enabling them to compete with larger players.
      • Global Beneficiation Practices: Inspired by beneficiation policies in diamond-mining countries like Botswana, Namibia, and Angola, where manufacturers must establish cutting and polishing facilities.

    India’s Diamond Industry: Current Status

    • India processes over 90% of the world’s diamonds and provides jobs to approximately 5 million people.
    • India contributes 19% of total global diamond exports.

    Challenges:

    • Exports Decline:
      • 2022: Exports valued at $23 billion.
      • 2023: Declined to $16 billion, with further declines anticipated.
    • Rough Diamond Imports: Fell by 24.5%, from $18.5 billion (FY 2021-22) to $14 billion (FY 2023-24).
    • Exports of Cut and Polished Diamonds: Dropped by 34.6%, from $24.4 billion (FY 2022) to $13.1 billion (FY 2024).
    • Inventory Challenges: The gap between net imports of rough diamonds and net exports of cut and polished diamonds widened from $1.6 billion (FY 2022) to $4.4 billion (FY 2024).
    • Returns of Unsold Diamonds: The percentage of unsold diamonds returned to India rose from 35% to 45.6% between FY 2022 and FY 2024.

     

    PYQ:

    [2018] Which one of the following foreign travellers elaborately discussed about diamonds and diamond mines of India?

    (a) Francois Bernier

    (b) Jean-Baptiste Tavernier

    (c) Jean de Thevenot

    (d) Abbe Barthelemy Carre

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  • Port Infrastructure and Shipping Industry – Sagarmala Project, SDC, CEZ, etc.

    Jawaharlal Nehru Port

    23 January 2025 | Prelims Only | Economics
    Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Why in the News?

    The Jawaharlal Nehru Port Authority (JNPA) in Mumbai is on track to become India’s first port to join the ranks of top global ports by handling 10 million TEUs (twenty-foot equivalent units) annually by 2027.

    About the Jawaharlal Nehru Port

    • JNP is situated in Navi Mumbai, Maharashtra, covering an area of 200 square kilometers. Its strategic location enables vital trade links with international shipping routes.
    • Key Features:
      • India’s first 100% Landlord Major Port.
      • Operates five container terminals, including BMCT, NSICT, and GTIPL.
      • Customs facilities: 30 container freight stations and connectivity to 52 inland depots.
      • Handles vessels with 9,000 TEUs capacity, soon upgrading to 12,200 TEUs.
      • Processes 200 international ships monthly.
    • Future Developments:
      • Fourth Container Terminal operational by April 2025, adding 4.8 million TEUs capacity.
      • Developing a satellite port at Vadhvan and dry ports at Jalna and Wardha.

    Key Highlights of JNPA’s Expansion

    • In 2024, JNPA handled its highest-ever container volume of 7.05 million TEUs, operating at more than 90% capacity.
    • The port recorded an 11% year-on-year growth compared to the previous year.
    • The second phase of Bharat Mumbai Container Terminal will add 2.4 million TEUs to JNPA’s total capacity.
    • The upgradation of Nhava Sheva Freeport Terminal in 2025 will further enhance the port’s capabilities.
    • The total container handling capacity is projected to increase from 7.6 million TEUs to 10.4 million TEUs by 2027.

     

    PYQ:

    [2016] Recently, which of the following States has explored the possibility of constructing an artificial inland port to be connected to sea by a long navigational channel?

    (a) Andhra Pradesh

    (b) Chhattisgarh

    (c) Karnataka

    (d) Rajasthan

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  • Indian Missile Program Updates

    Pinaka Rocket Systems

    23 January 2025 | Prelims Only | Internal Security
    Mains Paper 3: Various Security Forces, Agencies & Their Mandates

    Why in the News?

    The Indian Army is bolstering its artillery strength with a significant ₹10,200 crore order for ammunition associated with the Pinaka Multi-Launch Rocket System (MLRS).

    About the Pinaka Rocket System

    Details
    • A multi-barrel rocket launcher developed by DRDO and manufactured by Indian defence firms.
    • Named after the legendary bow of Lord Shiva, symbolizing power and precision.
    Key Features  
    • Multiple Launch Capability: Fires 12 rockets in just 44 seconds, delivering overwhelming firepower.
    • Mobility: Mounted on 8×8 or 6×6 trucks, allowing rapid deployment in diverse terrains.

    Range:
    – Pinaka Mk-I: 40 km.
    – Pinaka Mk-II and Enhanced Versions: 60–75 km.
    – Guided Variant: 90 km, with improved accuracy and reduced collateral damage.

    • Guidance and Precision: Equipped with satellite-based guidance for precision targeting.
    • Payload Options: Carries multiple warheads, including high explosives, incendiaries, anti-personnel, and anti-tank bomblets.
    • Quick Deployment and Reloading: Rapid deployment enables swift counter-strikes.
    • Modularity and Expandability: Modular design supports advanced technology integration for network-centric warfare.
    Operational Use
    • Proven effectiveness in mountainous and rugged terrains.
    • Played a critical role in Indian Army operations, showcasing its adaptability and firepower.
    Significance  
    • Boost to Artillery Strength: Enhances the Indian Army’s firepower with new regiments and extended-range rockets.
    • Cornerstone of Modernization: Central to India’s artillery modernization for precision and operational flexibility.
    • Border Security and Deterrence: Secures borders and acts as a strategic deterrent against adversaries.
    • Global Success: Strengthens India’s defense export market and contributes to defense diplomacy.

     

    PYQ:

    [2014] Which reference to Agni-IV Missile, which of the following statements is/are correct?

    1. It is a surface-to-surface missile.

    2. It is fuelled by liquid propellant only.

    3. It can deliver one-tonne nuclear warheads about 7500 km away.

    Select the correct answer using the code given below.

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

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  • ISRO Missions and Discoveries

    Mission SCOT

    23 January 2025 | Prelims Only | Science and Technology
    Mains Paper 3: Achievements Of Indians In S&T

    Why in the News?

    Onboard SpaceX’s Transporter-12 mission, Indian space surveillance firm Digantara successfully launched SCOT (Space Camera for Object Tracking), the world’s first commercial Space Situational Awareness (SSA) satellite.

    About Mission SCOT:

    Details
    • World’s first commercial SSA satellite, designed to track and characterize Resident Space Objects (RSOs) in Low Earth Orbit (LEO).
    • Launched via SpaceX’s Transporter-12 mission as part of a rideshare program.
    • Supported by Aditya Birla Ventures and SIDBI.
    Note: As part of the Network for Space Objects Tracking and Analysis (NETRA), ISRO is also developing a Space Surveillance and Tracking (SST) network equipped with advanced radars and optical telescopes to strengthen threat analysis and safeguard space assets.
    Aims and Objectives
    • Enhancing Space Safety: Prevent satellite collisions and optimize orbital resources.
    • Sovereign Surveillance: Strengthen India’s capabilities to protect its space assets.
    • Technological Leadership: Address gaps in global SSA technologies.
    • Sustainability: Promote safer and more sustainable space operations.
    Features/Significance
    • Operates in a sun-synchronous orbit, unaffected by weather or geography.
    • Tracks RSOs as small as 5 cm with high revisit rates and accuracy.
    • Safeguards critical satellites crucial for economic and strategic security.
    • Optimizes traffic management and enhances collision avoidance.
    Contribution to India’s Growth
    • Demonstrates India’s leadership in SSA technologies.
    • Highlights the role of Indian startups in space innovation.
    • Establishes India as a reliable international space partner.
    • Fosters investment in advanced surveillance technologies for future space developments.

     

    PYQ:

    [2010] In the context of space technology, what is “Bhuvan”, recently in the news?

    (a) A mini satellite launched by ISRO for promoting the distance education in India

    (b) The name given to the next Moon Impact Probe, for Chandrayan-II

    (c) A geoportal of ISRO with 3D imaging capabilities of India

    (d) A space telescope developed by India

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  • Uniform Civil Code: Triple Talaq debate, Polygamy issue, etc.

    Uttarakhand Cabinet approves Uniform Civil Code Manual

    22 January 2025 | Explained | Polity
    Mains Paper 2: GS2-01. Indian Constitution-Historical underpinnings & evolution; Features, amendments, significant provisions, basic structure of Constitution

    Why in the News?

    The Pushkar Dhami Cabinet in Uttarakhand approved the UCC with plans to roll it out after the local body elections. Uttarakhand will be the first state in India to implement the UCC.

    What is the Uniform Civil Code?

    • The UCC refers to a single law that governs personal matters such as marriage, divorce, inheritance, adoption, and succession for all citizens of India, irrespective of their religion.
    • Constitutional Basis: Article 44 of the Directive Principles of State Policy (DPSP) in the Indian Constitution envisions a UCC to promote national integration by eliminating discrepancies in personal laws.

    What are the significance of UCC? 

    • Equality and Justice: UCC ensures equal treatment of all citizens, irrespective of religion, caste, or gender, by replacing diverse personal laws with a unified legal framework. This promotes fairness and eliminates discriminatory practices in personal matters like marriage, divorce, and inheritance.
    • Gender Parity and Women’s Empowerment: Personal laws often favor patriarchal norms, disadvantaging women in areas like inheritance and divorce. UCC addresses these disparities, granting women equal rights and fostering gender justice.
    • National Integration: By unifying personal laws across communities, UCC strengthens national unity and reduces divisions based on religion or community-specific laws. It promotes secularism and reinforces the idea of “one nation, one law”.
    • Simplification of Legal Systems: A common civil code simplifies the legal process by eliminating inconsistencies among various personal laws, making it easier for citizens to understand their rights and obligations.
    • Closing Loopholes in Personal Laws: UCC addresses biases and loopholes in existing personal laws that perpetuate inequality or favouritism, ensuring a more just legal system for all citizens.

    What is the Judicial stand on it? 

    • Mohd. Ahmed Khan vs. Shah Bano Begum (1985): This case marked a pivotal moment when the Supreme Court urged the government to enact a UCC.
      • The Court highlighted that a common civil code would promote national integration by eliminating conflicting loyalties to different personal laws.
    • Jordan Diengdeh vs. S.S. Chopra (1985): The Court reiterated the “immediate and compulsive need for a uniform civil code”.
    • Sarla Mudgal vs. Union of India (1995): In this case, the Supreme Court criticised the government’s inaction regarding the UCC, asserting that over 80% of citizens were already governed by codified personal laws and that there was no justification for delaying its introduction any further.
    • John Vallamattom vs. Union of India (2003): The Supreme Court again stressed the need for a UCC, lamenting that Article 44 had not been implemented and reiterating its role in fostering national unity by resolving contradictions arising from diverse personal laws.
    • Shayara Bano vs. Union of India (2017): In addressing the issue of triple talaq, the Supreme Court underscored that the Constitution mandates the state to provide for a UCC to address various social injustices and legal inconsistencies stemming from personal laws.
    • Jose Paulo Coutinho vs. Maria Luiza Valentina Pereira (2019): The Court expressed disappointment over the lack of progress towards a UCC, noting that while personal laws reflect religious beliefs, they should not be exempt from reform in a secular state.

    What are the challenges? 

    • Cultural Resistance: There is significant opposition from various religious groups who view the UCC as an infringement on their cultural and religious practices. This resistance can lead to social unrest and political backlash.
    • Political Controversy: The UCC is often a contentious political issue, with parties divided along ideological lines. This can complicate legislative processes and delay implementation.
    • Legal Complexity: The integration of diverse personal laws into a single code poses substantial legal challenges. Ensuring that the new code respects individual rights while being comprehensive enough to address various community needs requires careful drafting.
    • Awareness and Training: Effective implementation requires extensive training for officials and awareness campaigns for citizens to understand their rights under the new code. This necessitates significant resources and time.

    Way forward: 

    • Phased Implementation and Pilot Projects: Begin with optional UCC adoption in specific regions or for limited personal law aspects (e.g., marriage or inheritance) to test feasibility and address concerns gradually.
    • Inclusive Stakeholder Engagement: Conduct extensive consultations with religious leaders, community representatives, and legal experts to build consensus and ensure the code respects India’s diversity while upholding constitutional values.

    Mains PYQ:

    Q Discuss the possible factors that inhibit India from enacting for its citizen a uniform civil code as provided for in the Directive Principles of State Policy. (UPSC IAS/2015)

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  • Foreign Policy Watch: India-United States

    Under Trump, US withdraws from WHO: Impact, what this means for India

    22 January 2025 | Explained | International Relations
    Mains Paper 2: GS2-19.Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

    Why in the News?

    On his first day in office, U.S. President Donald Trump signed an order to pull the country out of the World Health Organization (WHO).

    What will be the Impact of USA’s withdrawal from WHO?

    • Funding Shortfall for WHO: The USA accounted for 22.5% of WHO’s assessed contributions and approximately 13% of voluntary contributions in 2023.
      • The funding gap may affect WHO’s ability to implement health programs globally.
    • Disruption of Global Health Programs: WHO’s work in areas such as pandemics, neglected tropical diseases, antimicrobial resistance, and vaccination programs could face setbacks.
      • Loss of technical collaboration between the US CDC and WHO may weaken disease surveillance and pandemic preparedness.
    • Increased Influence of China: The vacuum left by the US could amplify China’s role within WHO, leading to concerns over political influence and transparency.
    • Undermining Global Health Equity: Withdrawal may hinder equitable access to healthcare resources, including vaccines and medicines, in developing nations.
    • Undermining Pandemic Treaty: The US will cease negotiations on the WHO pandemic treaty, affecting the framework for global cooperation on future pandemics.

    What are the Major Global Institutions and Challenges Faced by them?

    • United Nations (UN): Political divisions among member states, limited enforcement power, and funding constraints. The UN’s peacekeeping missions and humanitarian efforts often face resource shortages and geopolitical interference.
    • World Health Organization (WHO): Criticism for its pandemic response, reliance on voluntary funding, and political influence from member states. The WHO struggles to maintain independence and effectiveness in global health governance.
    • World Trade Organization (WTO): Increasing protectionism, trade disputes among major economies, and calls for reform to address inequities in global trade rules. The WTO faces difficulties in resolving conflicts like U.S.-China trade tensions.
    • International Monetary Fund (IMF) and World Bank: Criticism of conditional lending practices, perceived bias favoring wealthier nations, and inefficiencies in addressing poverty and economic disparities. Both institutions face calls for governance reforms to better represent developing countries.
    • Regional Organizations (e.g., EU, African Union): Economic disparities among members, political instability, and resource limitations. For example, the EU faces challenges like migration issues and the aftermath of Brexit, while the African Union struggles with conflict resolution and development goals.

    What would be the Impact on India?

    • Funding Shortfalls for WHO Programs: The U.S. contributes approximately 15-20% of WHO’s budget, amounting to around $600 million annually.
      • This withdrawal could lead to significant funding gaps for various health programs like India’s immunisation programs that India benefits from, such as those addressing neglected tropical diseases, HIV, malaria, and tuberculosis.
    • Loss of Technical Expertise: The departure of U.S. experts from WHO committees could limit the organization’s ability to provide comprehensive guidelines and support for health policies in India.

    What are the reforms needed in Global Institutions?

    • Enhanced Representation and Inclusivity: Need to expand the UN Security Council and restructure voting power in organizations like the IMF and World Bank to ensure equitable decision-making.
    • Increased Transparency and Accountability: There is a pressing need for improved transparency in decision-making processes within global institutions. This includes establishing clear accountability mechanisms to address concerns about corruption, inefficiency, and lack of responsiveness to member states’ needs.

    Mains PYQ:

    Q Critically examine the role of WHO in providing global health security during the Covid-19 pandemic. (UPSC IAS/2020)

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  • Foreign Policy Watch: India – EU

    India outlines 6-board principles to boost economic ties with EU

    22 January 2025 | Explained | International Relations
    Mains Paper 2: GS2-18.Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

    Why in the News?

    Recently, Commerce and Industry Minister Piyush Goyal highlighted six key principles to strengthen the partnership between India and the European Union during a meeting with Maros Sefcovic, the EU Commissioner for Trade and Economic Security.

    What are the Six Broad Principles between the EU and India?

    • Common Values: Establish a partnership based on shared values of democracy, rule of law, and an independent judiciary.
    • Fair Trade Agenda: Develop a commercially meaningful trade agenda that addresses tariff and non-tariff barriers, ensuring benefits for small and medium enterprises, farmers, and fishermen.
    • High-Quality Production: Engage in the exchange of best practices and harmonization of standards to achieve “zero defect” and “zero effect” production capabilities.
    • Technological Collaboration: Work together to develop cutting-edge technologies and secure critical raw material supply chains, enhancing resilience against non-market economies.
    • Sustainable Development: Cooperate on trade and sustainable development while respecting differing levels of development among nations, adhering to the principle of common but differentiated responsibility.
    • Mutual Growth: Leverage India’s young talent pool to act as a bridge for mutual growth and development with the EU.

    What is the Significance of the EU for India?

    • Largest Trading Partner: The EU is India’s largest regional trading partner, accounting for approximately 12.2% of India’s total trade in goods as of 2023. This relationship facilitates substantial trade flows, with trade in goods reaching around €124 billion and trade in services amounting to €50.8 billion in 2023.
    • Major Source of Investment: The EU is a leading source of foreign direct investment (FDI) in India, with an investment stock of approximately €108.3 billion in 2022. This investment supports job creation and economic development across various sectors in India.
    • Technology Transfer and Innovation: The EU serves as a primary source of technology transfer to India, aiding in the development of critical sectors such as infrastructure, green technology, and digital solutions. This collaboration is vital for India’s aspirations to modernize its economy and enhance its global competitiveness.
    • Strategic Partnership: The EU-India relationship is built on shared values such as democracy and human rights. It has evolved into a strategic partnership that addresses global challenges, including climate change, security threats, and sustainable development. This partnership is crucial for both entities to enhance their roles in global governance.
    • Geopolitical Considerations: With the rise of assertive powers like China and shifting U.S. policies, the EU recognizes the importance of a robust partnership with India as a counterbalance in the region. Strengthening ties with India aligns with the EU’s goals of promoting multilateralism and addressing common security interests.

    Evolution of India-EU Relations:

    • Foundational Agreements and Strategic Partnership: India-EU relations date back to the early 1960s, with India being one of the first countries to establish diplomatic ties with the European Economic Community.
      • The relationship was formalized through the Joint Political Statement in 1993 and the Cooperation Agreement in 1994, which expanded cooperation beyond trade.
      • In 2004, at the 5th India-EU Summit, the relationship was upgraded to a Strategic Partnership, marking a significant milestone in bilateral ties.
    • Joint Action Plan and Enhanced Cooperation: Following the strategic partnership, a Joint Action Plan was adopted in 2005 and reviewed in 2008, focusing on strengthening dialogue and cooperation across various sectors including trade, investment, and cultural exchanges.
    • Recent Developments and Future Prospects: In 2022, India and the EU celebrated 60 years of bilateral relations by relaunching negotiations for a Broad-based Trade and Investment Agreement (BTIA), which had stalled since 2013.

    What are the challenges between India and the EU? 

    • Trade Barriers and Market Access: Indian companies face increasing non-tariff barriers when trying to access EU markets, including stringent technical regulations, phytosanitary measures, and compliance standards. These barriers hinder the export of Indian goods and services, complicating efforts to establish a comprehensive Free Trade Agreement (FTA) between India and the EU.
      • Also, India is cautious about reducing high tariffs on sensitive sectors like automobiles and agricultural products, which the EU seeks to liberalize.
    • Mobility of Professionals and Services Liberalization: The lack of a common working visa system in the EU restricts the free movement of Indian professionals across member states. India seeks greater access for its skilled workers in the EU, while the EU demands liberalization of India’s professional services sector, particularly in accountancy and legal services.

    Way forward: 

    • Balanced Trade Agreement: Prioritize resolving key differences in tariff reductions and non-tariff barriers, especially in sensitive sectors like automobiles, agriculture, and professional services, while ensuring fair market access for both sides to boost mutual economic growth.
    • Enhanced Mobility and Collaboration: Establish frameworks for the free movement of professionals and expand cooperation in technology transfer, sustainable development, and resilient supply chains, leveraging India’s skilled workforce and the EU’s technological advancements.

    Mains PYQ:

    Q ‘Indian diaspora has a decisive role to play in the politics and economy of America and European Countries’. Comment with examples. (UPSC IAS/2020)

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