PRAHAAR Mains Wallah Summary 2024 International Relations English

PRAHAAR
SUMMARY
MAINS WALLAH (STATIC + CURRENT)
Final Hit To CSE Mains 2024
INTERNATIONAL RELATIONS
PRAHAAR SUMMARY 2024: International Relations
Table of Content
1. India And Its Neighborhood Relations ........................................................................................... 2
2. India-Pakistan .............................................................................................................................. 4
3. India - Bangladesh ........................................................................................................................ 4
4. India-Nepal ................................................................................................................................... 5
5. India- Afghanistan ........................................................................................................................ 6
6. India-Myanmar ............................................................................................................................. 8
7. India- Bhutan ............................................................................................................................... 9
8. India- Sri Lanka .......................................................................................................................... 11
9. India-Maldives ............................................................................................................................ 12
10. India - USA ................................................................................................................................. 13
11. India - Russia ............................................................................................................................. 15
12. India-Myanmar ........................................................................................................................... 16
13. India - EU ................................................................................................................................... 19
14. India - Japan .............................................................................................................................. 20
15. India – South-East Asia .............................................................................................................. 21
16. India - West Asia......................................................................................................................... 23
17. India - UAE ................................................................................................................................. 26
18. India And Central Asia ................................................................................................................ 27
19. India- Latin America ................................................................................................................... 28
20. India And Australia ..................................................................................................................... 28
21. India- Africa ................................................................................................................................ 29
22. South Asian Association For Regional Cooperation (SAARC) ........................................................ 30
23. BRICS......................................................................................................................................... 31
24. Bay Of Bengal Initiative For Multi-Sectoral Technical And Economic Cooperation........................ 32
25. Shanghai Cooperation Organization (SCO) .................................................................................. 33
26. India And Quad .......................................................................................................................... 33
27. North Atlantic Treaty Organization (NATO) .................................................................................. 34
28. India And G-20 ........................................................................................................................... 35
29. G-7 ............................................................................................................................................. 36
30. World Bank Group And India ...................................................................................................... 37
31. World Trade Organization And India ........................................................................................... 38
32. International Monetary Fund And India ...................................................................................... 40
33. World Health Organisation (WHO) And India ............................................................................... 41
34. United Nations (UN) Organisation And Associated Issues ............................................................ 42
35. UNESCO ..................................................................................................................................... 44
36. International Labour Organization .............................................................................................. 45
37. International Criminal Court (ICC) .............................................................................................. 46
38. Indian Diaspora .......................................................................................................................... 47
39. India And Geopolitics Of Technology ........................................................................................... 48
40. India's Soft Power ....................................................................................................................... 49
41. Energy Diplomacy ....................................................................................................................... 50
42. Defence Diplomacy ..................................................................................................................... 51
43. India And The Global South ........................................................................................................ 52
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1 INDIA AND ITS NEIGHBORHOOD RELATIONS
HISTORICAL OVERVIEW OF INDIA’S NEIGHBORHOOD

• British Policy: To secure a British Indian Colony. Ex: Nepal & Afghanistan as buffer states against China & Russia
• Nehru’s Policy (1954): Focused on security rather than on economic dimensions.
• Gujral Doctrine (1996): Based on 4-pillars of Non-Reciprocity, No Interference, Resolve Disputes Amicably &
Comprehensive Regional Cooperation.
• Manmohan Doctrine: Create Economic Interdependence through enhanced trade relations and regional
integration.
• Neighbourhood First” Policy (After 2014) based 4 PILLARS of :
i. Diplomatic and political priority to the neighborhood.
ii. Active support for the development of these countries.
iii. Greater connectivity and integration in the region.
iv. Promote India-led regionalism where neighbors are comfortable.
DETERMINANTS OF NEIGHBOURHOOD FIRST POLICY
• India’s Strategic Location due to its central position in South Asia and W. Indian Ocean.
• Regional Diplomacy e.g. to make the functioning of SAARC viable.
• Economic Cooperation like Bangladesh-Bhutan-India-Nepal (BBIN) initiative.
• Bilateral Issue Resolution like Land Boundary Agreement between India-Bangladesh.
• Connectivity and Cooperation through MOUs with South Asian countries.
• Military and Defense Cooperation like joint exercises “Surya Kiran” with Nepal.
• Disaster Management and Humanitarian Aid like aid to Nepal( 2016 earthquake).
• Capacity Building and Training
POSITIVE ASPECTS CHALLENGES
• Using “Neighborhood First policy” to change the "Big • Rising Chinese footprint in countries like Pakistan,
Brother" Image. Sri Lanka, and the Maldives.
• Cooperation Like BBIN and BIMSTEC to promote sub- • Domestic politics like Tamil issue in Sri Lanka,
regional cooperation. Teesta water-sharing issue with Bangladesh, the
• Enhancing Connectivity via Projects like Sagarmala and Rohingya issue etc.
Kaladan. • Border disputes.
• PM Modi's vision of SAGAR to promote security and • Trust deficit and rise of territorial nationalism
growth for all. • Failure of SAARC: For instance, the postponement
• High Impact Community Development Projects and and rescheduling due to strained relations between
Quick Impact projects to facilitate developmental India and Pakistan.
assistance.
• Providing assistance to neighboring countries during
the COVID-19 pandemic via establishment of the SAARC
COVID-19 Emergency Fund.
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MAJOR CHALLENGES IN INDIA’S NEIGHBORHOOD RELATIONS
Reasons:-
• Civilizational State
• Boundary Disputes with Pakistan (Kashmir), China (Ladakh, Arunachal
Pradesh, Aksai Chin),Sri Lanka (Kachchatheevu island), and Nepal (Kalapani
Area).
• Security Threats like ethnic conflicts, large-scale illegal migration, and the use
BORDER DISPUTE of neighboring countries as bases for terrorism
Way forward :-
• Regional Cooperation
• Legal Framework
• Diplomatic Engagement
• Confidence-Building Measures
• Track II Diplomacy
Reasons:-
• China's upstream dams on the Brahmaputra intentionally restrict downstream
water flow.
• India and Bangladesh fear that China's dams on the Brahmaputra could allow
water diversion during political crises.
RIVER DISPUTES • India's dams on the Teesta River, a Brahmaputra tributary, raise concerns for
Bangladesh's water supply during the dry season.
Way forward:-
• Enhanced dialogue and cooperation
• Implementing sustainable water-sharing agreements
• Investing in water management infrastructure
• Environmental conservation and cooperation
India's concern includes Economic competition, Strategic competition,changing

Regional dynamics, China-Pakistan Alliance & Debt Trap Diplomacy.
Way Forward:
RISING CHINESE • Neighborhood First Policy
FOOTPRINT • Revitalizing SAARC
• Accelerating Project Completion
• Leveraging Quad and Mini-laterals
• Resolving Boundary and Water Disputes
India has to face non-state and state-sponsored terrorism which affects India's
global standing, hindering its rise as a stable and secure power.
TERRORISM Way Forward:
(India ranks 13th on The • Via Strengthening Economic Integration, Promoting Regional Initiatives,
Global Terrorism Index
Counterterrorism Cooperation & Nuclear Risk Reduction with its neighbors,
(GTI) 2023)
India’s global stand will enhance.
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2 INDIA-PAKISTAN
The India-Pakistan relationship is one of the most complicated, but has made significant progress in lowering the "trust
deficit".
KEY ISSUES IN INDIA-PAKISTAN RELATION
• Border Issues
a. Kashmir :Pakistan internationalized the Kashmir issue whereas India considered it as bilateral as per
Shimla Agreement 1972.
b. Siachen :Operation Meghdoot & Agreement on Siachen glacier failed thrice-1989, 1992 & 2006.
c. CPEC: China’s BRI project passes through POK, and it impacts India's sovereignty.
d. Sir creek: The disagreement centers around the interpretation of the maritime boundary line between
Kutch and Sindh.
e. Gilgit-Baltistan Issue: Recently Pakistan has given ‘Provincial status’ to Gilgit Baltistan
• Asymmetric Balancing: State-sponsored terrorism by Pakistan to destabilize Indian territory.
• China- Pakistan All Weather Friendship
• Trade: In 2022, India exported $653M to Pakistan & Pakistan exported $18.1M to India.
Rank in the Economic complexity Index: India = 40 & Pakistan = 99.
• Indus Water Treaty: Article 9 of the treaty outlines a dispute resolution process.
PAKISTAN’S CRUMBLING ECONOMY AND ITS IMPACT ON INDIA
• Growing Chinese influence in Pakistan
• Unfriendly activities against India
• Anti-India activity
• Effect of jingoistic majoritarianism: Pakistan's tragic fate today teaches the region a lesson about how jingoistic
majoritarianism can wreak havoc on a nation's social and economic fabric.
• Assessing the consequences: As a result, India must continue to assess the short, medium, and long-term
consequences of Pakistan's failure to maintain economic stability.
WAY FORWARD
India can increase bilateral interactions with Pakistan via
• A blend of Soft & Hard power diplomacy,
• Talk based on UFA agreement,
• Use of International Pressure and
• Tackling Jaish-e-Mohammed.
3 INDIA - BANGLADESH
India and Bangladesh have the potential to change “the whole geo-economics of the region.”- FM S.Jaishankar
SIGNIFICANCE OF INDIA BANGLADESH RELATIONS
• Geostrategic Significance: Connectivity and security to North-East
• Maritime security
• Act East policy: BBIN & BIMSTEC initiatives
• Trade Relations: India exported $984M and imported $181M from Bangladesh, resulting in a positive trade
balance of $803M.(May, 2024)
• Connectivity:India-Bangladesh inland waterway route, Rail Connectivity, Transit agreement, 2010, Coastal
Shipping & Akhaura-Agartala Rail Link
• Blue Economy
• Rohingya issue: Operation Insaniyat
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ISSUES IN RELATIONSHIP
• Teesta River Dispute: To keep the river's water flow to a minimum, an agreement was reached in 2011 that gave
India 42.5% of the water, Bangladesh 37.5%, and the remaining 20% free rein.
• Illegal Migration
• Countering China's Influence by assisting the country with nuclear technology, artificial intelligence, modern
farming methods, and the exchange of flood data.
• Farakka Barrage: Although the two countries reached an agreement on the sharing of Ganga waters in 1996,
there is still a long-standing disagreement regarding India's construction and operation of the Farakka Barrage,
which was built to supplement the river Hooghly's water supply.
• Insurgency
• Sharing River Water:
o There are 54 rivers shared by India and Bangladesh.
o To maximize the benefits of their shared river systems, the two countries established a bilateral Joint Rivers
Commission (JRC) in 1972.
GOVERNMENT STEPS
• Border security: Land boundary agreement of 2015. Establishment of border protection grid (BPG) and creation
of crime-free stretch.
• Connectivity: Agreement on the standard operating procedure on the use of Chattogram and Mongla ports for the
movement of goods to and from India.
• Vaccine Maitri: India gifted 109 ambulances and also donated 1.2 million doses of covid-19 vaccines as a grant.
• Developmental support: Since 2010 India has approved 3 lines of credit to Bangladesh amounting to $ 7.4 billion.
• Youth: ‘Swarna jayanti scholarships’ for the youth of Bangladesh for receiving education in various fields of study
in India.
• Cooperation in S&T: Such as artificial intelligence, peaceful uses of nuclear technology, big data, and technology-
enabled services in health and education.
WAY FORWARD
• Countering China's Influence through assisting Bangladesh with nuclear technology, artificial intelligence, modern
farming practices, and flood data exchange.
• Combating the Refugee Crisis
• Addressing the Teesta River Water Dispute
• Collaborating in Energy Security
4 INDIA-NEPAL
INTRODUCTION
The India–Nepal Treaty of Peace and Friendship of 1950 forms the bedrock of the special relations that exist
between India and Nepal.
INDIA NEPAL TIES
• Economic: India is Nepal's largest trade partner.
• Political: The open border enables free movement, and both countries are members of SAARC and BIMSTEC.
• Social connection popularly known as Roti-Beti ka Rishta.
• Cultural Ties: India and Nepal have signed sister-city agreements for the twinning of Janakpur and Ayodhya,
Kathmandu and Varanasi, and Lumbini and Bodhgaya. India is also funding two heritage projects in Patan Durbar:
The Pashupatinath Riverfront Development and the Bhandarkhal Garden Restoration.
• Water Resources: Bilateral mechanism established in 2008 to address water resources and hydropower
cooperation between India and Nepal.
• Investment: Indian firms dominate foreign direct investment in Nepal, representing 40% of total approved
investments, with around 150 operating Indian ventures.
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• Defense Cooperation: Annual joint military exercise ‘Surya Kiran’.

• Disaster Management: Both nations are participating in BIMSTEC for collective disaster response. India’s
assistance during 2015 is also well appreciated by Nepal.
• Connectivity: Rail connectivity, inland waterways, Integrated Check Ports along the borders, recently Birgunj &
Biratnagar.
ISSUES IN INDIA-NEPAL RELATIONS
• Stronger border controls and strictness.
• Delay In Project Completion.
• Domestic Politics creating instability.
• A growing trust deficit
• New Geopolitical Great Game: Nepal and China elevated their ties from “Comprehensive Partnership of
Cooperation Featuring Ever-lasting Friendship” to “Strategic Partnership of Cooperation Featuring Ever-
lasting Friendship for Development and Prosperity”.
INTERNATIONAL RELATIONS
• Himalayan ‘Quadrilateral’: The recent Himalayan ‘Quadrilateral’ meeting between China, Pakistan, Afghanistan
and Nepal also highlights the Chinese attempt to contain India in South Asia.
• Defense Cooperation: For the first time, the People’s Liberation Army (PLA) and the Nepali Army held two joint-
military exercises in 2017 and 2018.
INDIA-NEPAL BORDER CONFLICTS
• Sino-Indian War and Kalapani: Since the 1962 Sino-Indian War, Kalapani has been administered by India.
• The claims to Kalapani: Treaty of Sugauli 1816 signed between Nepal and British India designated Kali river as
the border between the two.
• Lack of clarity and consensus: Over land consisting of Kalapani, Limpiyadhura, and Lipulekh as part of Nepal or
India due to a lack of clarity and consensus on the precise location of the river.
• Susta Region: The main source of contention in the Susta region is the changing course of the Gandak River.
WAY FORWARD
• Revision of 1950 India-Nepal Friendship Treaty
• India has to be mindful of its Big brother image
• Deliver Projects on time
• A transit agreement to help Nepal trade via India's inland waterways.
• Avoiding micromanagement to keep up ties between people on both sides.
5 INDIA- AFGHANISTAN
INTRODUCTION
Afghanistan has been the center of ‘Great Games’ and ‘Graveyard of Empires’. The Gandhar-Bharat Sambandha
referred to India's diplomatic ties with Afghanistan. The unique aspect of India's Afghan relationship has been
economic cooperation rather than military participation.
SIGNIFICANCE OF AFGHANISTAN FOR INDIA
GEO-STRATEGIC
• Location: Connecting East, West, Central and North East Asia.
• Regional balance of power linked to India’s vision of regional leadership and global power.
• Friendship Treaty: In 1949 India and Afghanistan signed a friendship treaty.
• Internal Security: Afghanistan is the center of radical ideology, drug trafficking and smuggling.
• Fourth Regional Security Dialogue on Afghanistan: The Indian National Security Advisor (NSA) called for
strengthening Afghanistan's capacity to combat terrorism.
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GEOPOLITICAL
• Neighbourhood First Policy on developing regional frameworks for security and prosperity.
• Countering OBOR (One Belt One Road).
• Strengthening Claim for UNSC
• Political Stability in Afghanistan is in India’s interest.
GEO-ECONOMIC
• Connectivity: In 2017, the India-Afghanistan Air Freight Corridor opened for business.
• Mineral Wealth: The US Geological Survey estimated Afghanistan mineral resources worth $1 trillion
• Energy Security: TAPI pipeline.
• A Preferential Trade Agreement between India and Afghanistan allowed for certain categories (38 products) of
Afghan dry fruits to obtain substantial tariff concessions, ranging from 50% to 100%.
• India provided Afghanistan with $4 billion in development aid between 2002 and 2021.
INDIA-AFGHANISTAN DEVELOPMENT PARTNERSHIP
POLITICAL
• Operation Enduring Freedom in 2001, to provide information and logistical support to the Allied soldiers.
• India promoted Afghanistan's inclusion in SAARC, in 2005.
• Strategic Partnership Agreement signed between India and Afghanistan in 2011.
ECONOMIC
• Preferential Trade Agreement (2003)
• Developmental Aid: 218 km road built from Zaranj to Delaram connecting Afghanistan to Iran and then to
Chabahar Port, 220 kV DC Transmission line from Kabul to Pul-e-Khumri and Salma Dam power(42 MW) in
Herat province.
• Other Assistance: India to build the Shahtoot Dam and to improve road connectivity to Band-e Amir.
HUMANITARIAN ASSISTANCE
• School Feeding Programme to provide daily supply of 100 grams of fortified, high- protein biscuits through the
World Food Programme to 2 million kids.
• Free Healthcare to over 30,000 Afghans each month from five Indian Medical Missions.
• Post-COVID: India had sent 75,000 MT of wheat to Afghanistan in 2020.
• Vaccine: India gave 500,000 doses of the Covid-19 vaccine to Afghanistan in January 2022.
• Post-Taliban: In February 2022, the Indian Foreign Secretary dispatched 2500 MT of wheat.
CULTURAL
• Amir Amanullah Khan Award: Narendra Modi received the highest civilian award.
• ICCR (Indian Council of Cultural Relations) fellowship extended by India till 2020.
• Cricket has played a significant role in fostering intercultural relations between the two nations.
EDUCATION AND CAPACITY BUILDING
• Studies for Afghan students
• Training program
• Women’s Vocational Training in Bagh-e-Zanana where Indian NGO SEWA trains Afghan women.
• Capacity building programmes
DIALOGUE FOR PEACE IN AFGHANISTAN
• Delhi Declaration: “Afghanistan's territory should not be used for sheltering, training, planning, or financing any
terrorist acts".
• Moscow Format: Featuring the special envoys of Russia, Afghanistan, India, Iran, China, and Pakistan, the regional
platform on Afghanistan was established in 2017.
• Heart of Asia Conference (HOAC): On November 2, 2011, it was established in Istanbul, Turkey. It recognises the
importance of Afghanistan for the development of the region as a whole. It consists of 13 supporting regional and
international organizations, 14 participating nations, and 17 supporting nations.
CHALLENGES IN INDIA- AFGHANISTAN RELATION
• Non-democratic regime
• Political Instability e.g. Return of the Taliban & US withdrawal from Afghanistan.
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• Drug trafficking affects the majority of the young population in Punjab and other parts of India.
• Terrorism.
• Proxy war by Pakistan
INDIA’S POSITION SHIFT ON TALIBAN
Recent interactions between India and the Taliban and the Taliban's request to New Delhi for the restart of flights to
Kabul shows a posture shift in favor of the Taliban. India is unlikely to continue its previous strategy of opposing the
Northern Alliance and refusing to recognise the Taliban.
WHY CHANGE IN POSITION?
• Pragmatic shift in India's earlier position because it prevented its participation in Afghan peace talks.
• Vacuum to replace US
• Taliban is also open to establishing ties with India as protection against Pakistan.
• Indian Investment: Additionally, India has made about $3 billion in Afghanistan. This includes initiatives like the
Zaranj-Delaram route, Afghan Parliament, and Salma Dam, among others.
• India needs Afghanistan for its energy security and access to Eurasia (Tapi Pipeline).
• Course correction: India must learn from its prior error of failing to recognise the Taliban government, which
resulted in the hijacking of IC-814.
WAY FORWARD
• Engaging with Taliban for security guarantees in exchange for continuous development aid.
• Collaboration at the regional level like joint Afghan development initiative between China and India.
• India needs to closely collaborate with the US’ local networks.
• India should strive to ensure the continuance of the Kabul process to maintain the importance of
counterterrorism, women's rights, and democratic principles.
• M. K. Narayanan contends that India ought to act as a go-between for the several countries eager to get involved in
Afghanistan.
6 INDIA-MYANMAR
INTRODUCTION
Myanmar is the only ASEAN nation to border India and five Bs—Buddhism, Business, Bollywood, Bharatnatyam, and
Burma teak—frame perceptions of India-Myanmar ties.
SIGNIFICANCE OF MYANMAR FOR INDIA
• Geo-Strategic: Myanmar borders China, India and ASEAN and the Bay of Bengal.
• Geo-Economic: Trade between the two nations has consistently stayed at or near $2 billion. Energy security: The
Indian side has suggested building a $6 billion oil refinery in the Thanlyn area, close to Yangon.
• Connectivity: Examples include Kaladan Multimodal Transit Transport Project, The Trilateral Highway Project,
Myanmar/ Malaysia-India Singapore Transit (MIST) Corridor.
• Indo-Pacific Trade: 65 percent of the world's population, 63 per cent of its gross domestic product, and 46 per cent
of its commerce in goods are concentrated in the Indo-Pacific region.
ISSUES IN BILATERAL RELATIONSHIP
• Insurgency
• Rising Chinese footprint
• Domestic instability in Myanmar and collapse of Democracy: Example: India has developed a Twin Track
approach to cooperating with the military Junta and re- establishing democracy.
• Rohingya crisis: More than 980,000 people from Myanmar have sought shelter in neighboring nations including
Bangladesh and India.
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• Principle of refoulement: India also disagrees with a UN stance that says deporting the Rohingya would violate the
refoulement principle, which prohibits returning refugees forcibly to a dangerous place.
• Porous Borders and Organized Crime: The India-Myanmar border provides the ideal environment for traffickers
to transport heroin and psychoactive drugs into India due to its proximity to the "Golden Triangle" and its porous
and unguarded nature.
RISING CHINESE FOOTPRINT IN MYANMAR
• Economic: In 2019, the two countries' commerce was estimated to be worth USD 12 billion, or about one-third of
all trade with Myanmar.
• Connectivity: Burma is a member of the OBOR project. As part of the BRI initiative, China has also suggested the
China-Myanmar Economic Corridor (CMEC).
• Energy: At a total cost projected at $1.5 billion, China built a parallel natural gas and oil pipeline that runs from
Kyaukphyu City in Myanmar's Rakhine State to the Yunnan region of China.
• Defense: Myanmar purchased 1.3 billion dollars' worth of guns from the Chinese between 2010 and 2019, according
to the SIPRI database.
• Investment: One of the major sources of Myanmar's FDI (Foreign Direct Investment), which as of March 2020
totalled USD 21 billion, has been China.
CONCERNS FOR INDIA
• Debt trap diplomacy by China can force Myanmar to surrender strategic assets like ports to China.
• Strategic Containment of India and obstructing its access to the west and the east thanks to the Kyaukphyu and
Gwadar ports.
• Security of the North East due to insurgency fueled by China's presence in Myanmar.
• India's gateway to ASEAN is Myanmar, and it is actively involved in significant connectivity initiatives like the
Mekong Ganga Cooperation, the IMT Trilateral Highway, and the Kaladan Transport Corridor. The growing Chinese
influence in Myanmar poses a threat to these initiatives.
• Domestic Instability in Myanmar: Some strategic experts believe the Chinese hand behind the recent coup in
Myanmar to prevent it from joining the USA.
• Weakening of ASEAN: Authoritarian governance in Myanmar has the potential to exacerbate ASEAN's divisions
and erode its cohesiveness and ability to confront China.
7 INDIA- BHUTAN
Historically both nations share strong cultural ties which flourished mainly during Tibetan Guru Padmasambhava who
introduced Tantric Buddhism to Tibet in the 8th century.
REVISED PROVISIONS OF THE 2007 FRIENDSHIP TREATY
• Element of equality doing away from India’s big brother approach.
• Independent Foreign Policy enabling Bhutan to conduct its foreign policy more independently.
• Procurement of weapons from other countries without India's consent.Security concern for public interest.
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COOPERATION AND SIGNIFICANCE OF BHUTAN
POLITICAL
• India’s support helped Bhutan to maintain democratic status since 2007.
• Bhutan was among the first nations who supported India’s Nuclear Test.
• Both countries share multilateral organizations like SAARC, BIMSTEC, BBIN.
ECONOMIC
• Bhutan's main source of imports and largest export market is India.
• India has been developing infrastructure Border roads and hydropower projects in Bhutan eg. Mangdechhu
Hydroelectric Plant.
• Free Trade Regime and Duty-Free Transit has boosted trade relations.
GEOGRAPHIC AND STRATEGIC
• Bhutan serves as Buffer State between China and India.
• The Chumbi Valley near Chicken Neck Corridor of India, is located at the trijunction of Bhutan, India, and China.
INTERNAL SECURITY
• Separatist groups like Bhutan-based United Liberation Front of Assam (ULFA) and National Democratic Front of
Bodoland (NDFB) have been dealt with tactfully.
• Revised Friendship Treaty
FLOOD MANAGEMENT
Joint Group Of Experts on Flood Management.
ISSUES IN COOPERATION
• External debt: The ratio of Bhutan GDP to its external debt has risen to almost 100%.
• Delays in hydropower projects: India is not completing projects in the anticipated amount of time.
• Internal Security: They are now concerned about insurgent groups operating in Bhutan's south-eastern jungle.
• Chinese attempts to establish diplomatic ties with Bhutan have become a cause for concern for India.
• Negative Electricity Tariff for Bhutan.
• Bhutan did not join the BBIN Motor Vehicle Agreement due to its adverse impact on the environment and climate.
FUTURE SCOPE OF COOPERATION (WAY AHEAD)
• India should respect Bhutan’s Autonomy.
• To promote Bhutanese democracy, set up inter-parliamentary cooperation and institutional cooperation.
• Foreign Policy Role in India's "Act-East Policy" and "Neighbourhood First Policy."
• More military and air force training exercises to tackle Issues like Doklam standoff.
• Trade diversification and enhancing the export basket of Bhutan.
• Exploiting opportunities in tourism, especially in the cultural sphere.
• Currency Swap
• Steps should be taken in decreasing the negative balance of payment for Bhutan.
• Given the expanding influence of China, it is prudent for India to continue its assistance.
• The promise made by India to develop 10,000 MW of hydropower and purchase extra power from Bhutan must be
kept.
• The National Knowledge Network of India and the Research and Education Network of Bhutan are integrated.
• India Bhutan Foundation founded in 2003 with the goal of strengthening inter-human connections.
• India and Bhutan have been cooperating in space activities like South Asia Satellite (SAS).
• Four Bhutanese engineers who are being taught by ISRO are working on the INS-2B satellite of Bhutan.
• Engaging in border management and defense cooperation to resist Chinese aggression.
NEW BHUTANESE TERRITORY CLAIMED BY CHINA
• In June 2020 China attempted to stop UNDP-GEF funding for Sakteng Sanctuary situated on the eastern border of
Bhutan.
• Indian Interest: Eastern Sakteng is situated along the boundary of Arunachal Pradesh which China claims to be part
of its Tibet region hence such a claim could further complicate the boundary dispute issues.
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8 INDIA- SRI LANKA
There has been extensive intellectual, cultural, religious, and linguistic exchange between India and Sri Lanka during
the course of their more than 2500-year relationship.
OVERVIEW OF RELATIONS
GEOSTRATEGIC SIGNIFICANCE OF SRI LANKA
• Trade: It is situated on crucial water routes that connect to the Indian Ocean, where 90% of India's trade takes place.
• Indo Pacific Strategy: In reaction to Chinese aggression in the South China Sea, an effort was made to ensure free
and open access for navigation.
ECONOMIC
• Largest trading partner: With a total bilateral merchandise trade of US$5.45 billion in 2021—a significant rise
(about 48%) over 2020—India was Sri Lanka's largest trading partner.]
• Currency swap: Recently, in order to increase Sri Lanka's foreign reserves and guarantee financial stability
following COVID-19, the Reserve Bank of India (RBI) struck an agreement to grant a $400 million currency exchange
facility to Sri Lanka.
• Investment: India has reportedly already made FDI investments of more than US$ 2.2 billion, according to the
Central Bank of Sri Lanka. In 2021, India attracted the greatest amount of FDI ($142 million).
POLITICAL
• High-level exchanges: High-level exchanges of visits at regular intervals have been a defining feature of the political
relations between the two nations.
• Neighbourhood First Policy of India: It is an extension of Sabka Saath Sabka Vikaas in the realm of foreign policy.
• ‘India first’ policy: Although on his maiden foreign trip, Sri Lanka's president emphasized his country's "India first"
strategy and declared that "while China is a friend, India is relative."
DEFENSE AND SECURITY COOPERATION
• Military Exercise: India and Sri Lanka conduct annual joint Military exercise ‘Mitra Shakti’ and Naval exercise.
• SLINEX: It is an annual, Bilateral Naval exercise between India and Sri Lanka.
• Maritime security: A trilateral maritime security cooperation agreement has been struck by India, Sri Lanka, and
the Maldives to enhance surveillance, anti-piracy operations, and reduce maritime pollution in the Indian Ocean
region.
• India and Sri Lanka also reached an agreement in 2019 to combat human and drug trafficking.
• Trilateral security meeting: Terrorism and radicalization, marine safety and security, human trafficking and
organized crime, and cyber security were acknowledged as the "four pillars" of collaboration.
CULTURAL AND EDUCATIONAL COOPERATION
• Agreement: India and Sri Lanka signed a cultural cooperation agreement back in 1977.
• Sri Lanka is a partner in the Nalanda university project of India.
• People to people ties: Through cultural connectedness like Buddhism. Tamil decency, etc.
• Swami Vivekananda Cultural Centre (SVCC), the cultural branch of the Indian High Commission in Colombo.
DEVELOPMENTAL ASSISTANCE
• Assistance for internally displaced Tamils, India has constructed 30000 houses and other medical facility
infrastructure.
• Under the SAARC currency exchange framework, the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka
(CBSL) have finalized a USD 400 million currency swap arrangement.
• Exim Bank has so far extended nine LOC to Sri Lanka including the latest one taking the total value to $1.68 billion.
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ISSUES IN RELATION
ISSUES ABOUT
• Denied Citizenship: Majority of Tamils in Sri Lanka's tea estates continued to
Tamil Issue live in poverty.
• Civil war and human rights abuses
• Concerns have been raised regarding China's 99-year lease of Sri Lanka's vital
Hambantota Port.
China Factor
• The joint venture between India and Sri Lanka for managing the Mattala
Rajapaksa International Airport has not progressed.
Fisherman Issue • To find a long-term solution, both nations have established the Joint Working
(Katchatheevu Island) Group framework.
• India became the first bilateral creditor of Sri Lanka to formally back its
India’s Financing Assurance critical debt restructure program.
Trade Balance in favor of • In 2018, India exported $4.16 billion to Sri Lanka, while Sri Lanka exported
India $767 million to India.
WAY FORWARD
• Economic integration through development of connectivity via Palk strait bridge.
• Economic Integration Roadmap (EIRM) based on Sub Regionalism and aims to connect 5 southern states of India
with Sri Lanka to tap a total of 300 million population and $500 billion GDP.
• Private Investment from India in SL in the infrastructure, energy and connectivity in a time bound manner.
• Leveraging Blue Economy
• Comprehensive Economic Partnership Agreement (CEPA)
• Aiding Fishermen
9 INDIA-MALDIVES
INTRODUCTION
India recognized the Maldives' independence in 1965 and established diplomatic relations. India's prompt assistance
during the 1988 coup attempt, through 'Operation Cactus,' was pivotal in building trust and fostering strong, lasting
bilateral ties.
OVERVIEW OF THE RELATIONSHIP
• Economic: A trade agreement was signed between India and Maldives in 1981. India is Maldives’ 2nd largest
bilateral trade partner in 2021.
• Defense: India offers the highest number of training opportunities for the Maldivian National Defence Force.
• Disaster management: India provided substantial aid to the Maldives after the 2004 tsunami and the 2014 Male
water crisis.
• Developmental Cooperation: India has implemented notable development projects in the Maldives, such as the
Indira Gandhi Memorial Hospital, Maldives Institute of Technical Education, and the National College for Policing
and Law Enforcement (NCPLE).
• Connectivity project: India has also provided US $500 million in assistance for the Greater Male Connectivity
Project (GMCP).
• Covid related assistance: A 14-member Rapid Response Medical team was deployed in the Maldives in March
2020. Operation Sanjeevani: As part of GoI's efforts to help friendly countries in tackling the Covid-19 threat, a
special. IAF plane airlifted 6.2 tonnes of essential medical supplies from India to Maldives on 2 April 2020.
12
ISSUES
• Misunderstanding of India’s efforts that the UTF Harbour Project, which aims to develop a coastguard harbor
at Uthuru Thila Falhu, might potentially be converted into an Indian naval base.
• Growing radicalization
• Rising Chinese footprint due to China’s string of pearls strategy and policy of Debt Trap Diplomacy can give it
access to strategic real estate in Maldives.
• Trade and commercial exchanges between India and Maldives have stagnated and need to match their potential.
• The Yameen camp launched an "India Out" campaign against New Delhi's massive developmental funding and
demanded that the Solih administration "stop selling national assets to foreigners, implying India."
WAY FORWARD
• ‘India First Policy’: The present government of Maldives has announced its ‘India First Policy. India should use this
opportunity to strengthen bilateral relations.
• Security Partnership: Strengthening defense partnership with a focus on maritime security to cement India's
position as a "Net Security Provider" in the Indian Ocean.
• Timely completion: To counter Chinese gains in India, infrastructure projects must be completed on time.
• Diaspora: India should use its Diaspora more and use cultural elements like films, music, and people-to-people
contacts to strengthen relations
10 INDIA - USA
DIFFERENT ASPECTS OF INDO-US RELATIONS

DEFENSE
• India-US defense trade has increased tremendously and presently stands at $119.42 billion.
• The US is now India’s fourth largest arms provider and India conducts most joint exercises with the USA.
• GSOMIA (General Security of Military Information Agreement) on military information exchange was signed in
2002.
• LEMOA: In 2016, the two countries agreed to use each other's military bases under a Logistics Exchange
Memorandum of Agreement (LEMOA).
• COMCASA: In 2018, the two militaries signed the Communications Compatibility and Security Agreement
(COMCASA) to facilitate interoperability and the export of advanced technology to India.
• BECA: In 2020, signed to share cutting-edge military technology, logistics, and geospatial mapping.
• General Electric (GE) and Hindustan Aeronautical Limited (HAL) signed an MoU for co-production of GE 414 Jet
Engines for the indigenous Tejas Mk2 light combat aircraft.
• India's purchase of armed drones and collaboration in defense industrial innovation through the 'INDUS-X' platform
were announced.
TRADE RELATIONS
• In 2022-23, India had a trade surplus with the United States of $28 billion.
• Bilateral trade between India and the US rose to US$ 128.55 billion in 2022-23, marking a 7.65% increase from the
previous year.
• Defense trade: Apart from Oil, India-US defense trade is also increasing in recent years.
• The Indian service sector and especially the IT sector is hugely dependent on US markets.AHAA
ENERGY COOPERATION: US- INDIA STRATEGIC ENERGY PARTNERSHIP
• Strategic energy partnership: Partnership for the 2030 Agenda between the United States and India.
Strategic Clean Energy Partnership (SCEP) has been redesigned. The Gas Task Force has been renamed the India-US
Low Emissions Gas Task Force.
13
• Civil Nuclear Cooperation (2008): The two sides have started the preparatory work on site in India for six AP
1000 reactors to be built by Westinghouse.
• Cooperation on the Global Centre for Nuclear Energy Partnership (GCNEP)
• Strategic Partnership:
o Rise of China: India-US strategic partnership has been strengthened in the context of the Rise of China and its
aggressive behavior in the Indo-Pacific.
o QUAD: Both Countries have institutionalized 2+2 Ministerial Dialogue and are also working to strengthen.
o I2U2 is a partnership between India, Israel, the UAE, and the U.S. that's working to tackle global challenges and
advance economic opportunities.
COOPERATION AT GLOBAL LEVEL
• US support for India's permanent membership in UNSC
• The India-US Global Development Partnership has been extended for another five years.
• Statement of Guiding Principles (SGP) on Triangular Cooperation for Global Development, extending the pact's
validity up to 2026.
• Feed The Future India Triangular Training Program (FTF ITT) for Africa under GDP.
ISSUES IN INDO-US RELATIONSHIP
• India-Russia friendship
• USA’s Position on CAATSA
• US-Pakistan Relationship
• In WTO issue of North-South divide
• In Trade:
o Pending Bilateral Investment Treaty
o India’s Tariff Regime especially in agriculture.
o Digital Services Tax (DST)
In 2019, the United States removed India from GSP, a U.S. trade and development program, due to market access
issues.
• In Agriculture: In the United States, sanitary and phytosanitary (SPS) obstacles impede India's agricultural exports.
• Intellectual Property (IP): The United States 2021 "Special 301" report maintained India on its Priority Watch List.
• “Forced” Localization: In 2022, India appealed against a ruling of the World Trade Organisation's (WTO) trade
dispute settlement panel which ruled that the country's domestic support measures for sugar and sugarcane are
inconsistent with global trade norms.
• The USA's announcement to withdraw from Afghanistan can destabilize the country.
• Indo Pacific: While India’s primary focus is on the Indian Ocean, the USA is more focused on the pacific ocean.
• Middle East: Trump Administration’s Maximum Pressure strategy for Iran has impacted India-Iran relations and
Iran has moved closer to China.
• Russia-Ukraine war: The US imposed sanctions against Russia while India seemed to be non-aligned on the
issue.
• China: both countries are sometimes suspicious of each other due to possible future cooperation with China. It limits
the deep and long-term deals between the countries.
• On Data Sovereignty:
o Osaka Track: India boycotted the Osaka Track on the Digital Economy in 2019.
The CLOUD Act of the USA allows security agencies to procure data stored in servers regardless of whether
Data originates in the US or foreign soil.
• Data localisation: USA govt was of the view that India’s proposed law as a significant barrier to digital trade.
• On Climate Change: Failure in meeting financial commitments & Differences over Net Zero emission target.024:
WAY FORWARD
• Connectivity: Both countries can also undertake joint infrastructure development programmes in IOR littoral states
to counter Chinese projects in the region.
• TRADE: Both countries need to finalize the Bilateral Investment Treaty to achieve the target of $500 billion in trade
by 2025.
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• De-risking Supply Chains- US can work with India, Australia and Japan to diversify and de-risk supply chains.
• Space Governance: Due to shared concerns about the Chinese Army's growing space capabilities, space governance
will become a focal point of the US-India bilateral relationship.
• Cooperation for a free & rule-based Indo-Pacific region
• Technology transfer
11 INDIA - RUSSIA
INTRODUCTION
At the Sochi Summit, in 2018, the relationship between India-Russia was elevated to a ‘Special and Privileged
Partnership.’
AREAS OF COOPERATION
DEFENCE
• Arms import: Russia continues to be India's largest arms supplier.
• Share strategic technology: The S-400 defence system deal also highlights India’s desire to maintain strategic
autonomy.
• INDRA as a tri-service bilateral military exercise.
TRADE
• Bilateral trade: During FY 2021-22 amounted to $13.2 billion. ($30 billion set for 2025)
• India's participation in the Eastern Economic Forum and extended a $ 1 billion line of credit for the development
of the far-right region of Russia.
ENERGY
• Natural gas: India’s ONGC Videsh has acquired 20% stakes in Sakhalin oil and gas plant.
• In St. Petersburg Declaration: Both countries agreed to joint exploration of hydrocarbons in the Arctic region.
• Kudankulam Nuclear Power Plant (KKNPP) is being built with Russian cooperation.
GEOPOLITICAL CONVERGENCE
• Both countries are cooperating through BIMSTEC, and SCO.
• Both see China as a strategic adversary
• Support for UNSC seat to India
• India and Russia have called for the Comprehensive Convention on International Terrorism to be finalized as soon
as possible.
CULTURAL RELATIONS
• Russian students learning Hindi
• Programmes like ‘Namaste Russia’ and 'Festival of India in Russia' are celebrated in India.
SPACE TECHNOLOGY
• The former Soviet Union launched India’s first two satellites, Aryabhata and Bhaskar.
• Russia provided India with cryogenic technology
• Cooperate in outer space
• The four cosmonauts chosen for India's first manned space mission, Gaganyaan, have completed their training in
Russia.
WAY FORWARD
• Protect Multilateralism/Multipolarity at UN and other forums such as BRICS, SCO etc. for a more rules-based
international order.
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• Diversification of Trade to overcome the issues of limited economic relationship with high trade deficit.
• Increasing private sector participation in the economic relationship.
• Arctic Politics: India can work with countries like Japan and South Korea in the Far East region of Russia and contain
Chinese influence in Arctic politics which Russia also desires.
• Connectivity: Operationalising Eastern Maritime Corridor - The proposed sea route that connects Chennai and
Vladivostok (Russia’s Far East) will improve logistical connectivity.
• Mediator to reduce US-Russia tensions: India can leverage its warm relations with both the US and Russia to help
ensure “Cold Peace” between the 2 countries. India can also help in establishing detente on critical issues like Iran’s
nuclear crisis, Indo-Pacific geopolitics, the Ukrainian fiasco or the Afghan impasse.
12 INDIA-MYANMAR
India-China relations are a journey from ‘Inch towards Miles’. INCH is ‘India-China’, while MILES is ‘Millennium of
Exceptional Synergy’. - PM Modi
INDIA-CHINA TIES: COOPERATION AND CHALLENGES
COOPERATION
• Political: India became the first non-socialist bloc country to establish diplomatic relations with China.
• Economic Ties: Bilateral trade reached US$136.26 by 2022, with India becoming a large market for China.
• Cultural: India and China have a history of cultural exchanges and have established institutions like the Yoga College
in China.
• Multilateral cooperation: Shanghai Cooperation Organisation (SCO) and BRICS groupings reflecting common
agenda for growth and development.
• Informal Summits: Both countries have jointly advocated the Five Principles of Peaceful Coexistence.
• Financial Mechanisms: India and China are prominent stakeholders in AIIB and NDB
• Cooperation in fighting terrorism.
CHALLENGES
• Five Finger Policy: China considers Tibet to be the right hand’s palm of China with Ladakh, Nepal, Sikkim, Bhutan
and NEFA (Arunachal Pradesh) as its five fingers.
• Salami Slicing Strategy: Sino-Indian border skirmishes are a part of China’s larger “Salami Slicing Strategy”.
• Belt and Road Initiative (BRI): India opposes China’s BRI, as it violates India’s sovereignty and territorial integrity.
• Aggressive Policies of China in the Neighborhood under String of Pearls would encircle India.
• Debt Trap Diplomacy: China’s “Debt Trap Diplomacy” influences India’s relations with other countries like
Maldives, Sri Lanka, Myanmar and Nepal, thereby hindering India’s neighbourhood first policy.
• India’s Import Dependency: India has a trade deficit of USD 83.2 billion with China in 2022-23 and also
dependency on Key Starting Materials (KSM) from China exceeds 50% for its Pharmaceutical industry.
• South China Sea and India: China claims sovereignty over part of the SCS, via the 9-dash line and its illegal
creation/militarisation of artificial islands in the SCS.
Background of India- China Border Disputes:
• Proposal for MacMohan Line (1913-14):
o Simla Conference aimed to establish a boundary between British India and Tibet.
o McMahon Line was proposed, which was an 890-km boundary extending from Bhutan to Burma but was not
accepted by China.
• Annexation of Tibet (1950): China’s annexation of Tibet created one of the longest undemarcated borders of
the world.
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• Introduction of Line of Actual Control (LAC) (1959): China proposed LAC as a boundary between the two
nations. India rejected this proposal.
• Sino-Indian War (1962): on November 21, 1962, China declared a ceasefire in its war with India, with China
seizing territory in Aksai Chin.
• Ceasefire and Aftermath: China declared a ceasefire, withdrawing from most invaded areas but retaining control
over Aksai Chin.
• Establishment of LAC: The LAC became an informal ceasefire line, but disputes persisted as both countries
interpreted it differently.
• Ongoing Disputes: The McMahon Line is India’s interpretation of the LAC while China claims Aksai Chin and
Arunachal Pradesh, which it refers to as ‘South Tibet’, as its territory.
Border agreements:
• 1993 Border Peace and Tranquility Agreement.
• 1996 Agreement on Military Confidence-Building Measures Along the LAC.
• Modalities for Implementing Confidence-Building Measures in the Military Field Along the LAC, 2005.
• Agreement in 2012 to Establish a Working Mechanism for Consultation and Coordination on India-China Border
Affairs.
• 2013 Border Defense Cooperation Agreement.
WAY FORWARD
• Military preparation: India must build roads and improve infrastructure along the border and strengthen the
Andaman and Nicobar Command.
• China's sensitivity to the one-China policy and other weaknesses could be used by India to change its approach.
• India must look beyond the LAC to fight China.
• Building alliances to counter China's growing influence.
• Aligning with the US to confront China.
INDIA-CHINA WATER RELATIONS
• Five major rivers flowing through India find their origins in China.
Brahmaputra River System: Siang (Brahmaputra), Lohit and Subansiri
Indus River System: Indus and Satluj
• China is the upper riparian controller on 7 of South Asia's largest rivers: Including the Indus, Ganga,
Brahmaputra, Irrawaddy, Salween, Yangtze and Mekong.
• Concerns:
o China has the capability to weaponise the upper riparian status, limiting India's ability to plan hydro-power
projects downstream.
o Alteration of water levels in ecologically sensitive regions eg. Kaziranga National Park.
• Way Forward
o Finalizing a water cooperation agreement
o IWT as a guide
o Politicization of water issues must be avoided.
SOUTH CHINA SEA DISPUTE
IMPORTANCE OF THE SOUTH CHINA SEA:
• Strategic Location
• Global Shipping Lane: More than $3 trillion in trade passing through its waters annually.
• Natural Resources: Fishing Ground & Energy Reserves
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SIGNIFICANCE OF SCS FOR INDIA:

• Economic Significance: 55% of India’s trade with the Indo-Pacific region passes through the waters of SCS.
• Energy Resources: India seeks to explore the vast reserves of oil and natural gas.
• Security Significance: The SCS is a strategic waterway that connects the Indian Ocean to the Pacific Ocean.
• Countering China’s Expansionism: India seeks to balance it by strengthening its own maritime capabilities and
deepening its ties with regional partners.
BRI PROJECT
• The BRI was launched by Chinese President Xi Jinping in 2013.
• Objective: To connect Asia with Europe and Africa, through a network of railways, highways, ports, airports, and
other infrastructure projects with the intent to promote trade, investment, and economic growth in participating
countries.
CONCERNS OF CHINA'S BELT AND ROAD INITIATIVE (BRI)
• Debt Trap Diplomacy
• Potential environmental, social, and corruption risks are associated with these project.
• Slow Pace of Projects: In Pakistan, BRI projects worth around $19 billion are either completed or underway.
• Slowdown of the Chinese Economy: The Chinese economy grew 5.5% in the first half of 2023, above the official
5% target but below its historical rate. It is also facing deflation and rising youth unemployment.
• Governance Issue
India’s Stand: India strongly opposes China's Belt and Road Initiative (BRI), particularly the China-Pakistan
Economic Corridor (CPEC), because it passes through Pakistan- occupied Kashmir (PoK).
WAY FORWARD
• Diplomacy and Engagement to find mutually acceptable solutions and fostering understanding among the nations.
• Code of Conduct (COC) for the SCS.
• Conflict Prevention and Management through Confidence-Building Measures and Maritime Cooperation.
• International Arbitration and Legal Mechanisms such as the Permanent Court of Arbitration’s ruling in the
Philippines vs. China case, as a basis for resolving disputes peacefully.
• Promotion of Common Interests
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13 INDIA - EU
AREAS OF COOPERATION BETWEEN INDIA AND EUROPE

GEOSTRATEGIC
• Connectivity programme of EU: European Union has unveiled its connectivity program, known as theGolden
Gateway, to counter the Chinese Belt Road Initiative.
• On Indo-Pacific: The European Union has published its Indo-Pacific policy, which places India at the centre.
ECONOMIC COOPERATION
• India is the EU’s 10th largest trading partner, accounting for 2.1% of EU total trade in goods.
• Enhanced Trade Partnership (ETP) negotiations at 11th Economic and Financial Dialogue ,2022
• EU's share in foreign investment stock in India reached €87.3 billion in 2020
• India and the European Union to launch a joint Trade and technology council.
DEVELOPMENTAL PARTNERSHIP
• Sustainable Development Goals
• Both sides have signed a Joint Declaration on Common Agenda on Migration and Mobility (CAMM).
• The EU committed to assist India to achieve its goal of One Sun, One World, One Grid.
SCIENCE AND TECHNOLOGY COOPERATION
• India-UK Global Innovation Partnership (GIP).
• Horizon 2020, joint research projects related to climate change and polar research.
DEFENCE AND SECURITY COOPERATION
• launch of Open general export license to facilitate technology engagement of EU with India.
• The new Information Fusion Centre
• India and the EU adopted a declaration to counter terrorism at the 14th India-EU summit.
• Counter-piracy operations: Both sides conducted the maiden Indian Navy and European Union Naval Force
(EUNAVFOR) exercise in the Gulf of Aden in June 2021.
ISSUES IN INDIA EU RELATION
• Trade: Currently India accounts for only 1.9% of EU total trade in goods in 2019.
• India's bilateral relations with EU member states developed, but not intensified
• EU critical on CAA and article 370
• EU critical on India’s “protectionist” measures on tariffs.
• Rise of anti-migration and ultra-nationalist sentiment in Europe
WAY FORWARD
• Negotiations from both sides
• Greater cooperation in areas like green technology and artificial intelligence
• Cooperate in healthcare
TRADE AND ECONOMIC PARTNERSHIP AGREEMENT (TEPA) BETWEEN INDIA & EUROPEAN FREE TRADE
ASSOCIATION
Recently, India and the four-nation European Free Trade Association (EFTA), an intergovernmental
grouping of Iceland, Liechtenstein, Norway and Switzerland, signed a Trade and Economic Partnership
Agreement (TEPA).
SIGNIFICANCE OF TEPA FOR INDIA
• Boost to India’s Export
• To Attract Investment
• To Diversify Import Sources
• Support in UNSC
• Achievement of Green Energy Target.
19
CHALLENGES IN INDIA-EFTA RELATIONS
• Data Exclusivity
• Differences in Economic Structures: EFTA countries focus on high-tech industries, while India’s industries
generally serve lower and middle-tech sectors.
• Intellectual Property Rights Protection: There is a challenge of IPR protection of the EFTA companies engaged
in pharmaceuticals, biotechnology, and machinery manufacturing.
• Challenges for Market Access: Issues regarding tariffs, quotas, and non-tariff barriers impact free market
access between the two parties.
• Concerning Trade Deficit: India has a significant trade deficit with EFTA countries, especially driven by
imports of gold and precious metals, raising concerns about the imbalance in trade relations.
• Limited Tariff Benefits: Existing zero or low tariffs in EFTA countries limit the potential gains for Indian goods
exports, particularly in industrial and agricultural sectors.
WAY FORWARD
• Addressal to Data Exclusivity Issue
• Secure Domestic Manufacturers
• Environmental and Social Considerations
• A Favoring Investment Commitment
14 INDIA - JAPAN
BACKGROUND
• The diplomatic ties between India and Japan were established in 1952 with the signing of the Peace Treaty post
World War II.
• Comprehensive Economic Partnership concluded in 2011.
• Country Assistance Policy of Japan
• In 2021, India, Japan, and Australia launched the Supply Chain Resilience Initiative (SCRI) to counter China's
dominance of the supply chain in the Indo- Pacific region.
INDO-PACIFIC
• India and Japan act as an anchor of the Indo-Pacific region,building on past agreements to address China's concerns.
• Maintaining Rule base order e.g. QUAD.
• Japan’s Free and Open Indo-Pacific.
DEVELOPMENT
• The Asia-Africa Growth Corridor (AAGC) joint collaboration between India and Japan.
• Blue Dot Network is a multi-stakeholder program founded by the United States, Japan, and Australia to examine and
certify infrastructure development projects worldwide.
PARTNERSHIP AT MULTILATERAL FORUMS
• United Nations Security Council: India and Japan are working together to expand the UN security council through
G4 GROUP.
• Quad Grouping
• G-20 Grouping
ECONOMIC
• Japan’s bilateral trade with India totaled US$ 21.96 billion during FY 2022-23.
• India-Japan Comprehensive Economic Partnership (CEPA) came into effect in August 2011.
• Bilateral Swap Arrangement that allows their central banks to exchange local currencies for up to $75 billion.
• Japanese FDI into India
20
• People-People Ties
• Japan gives India 225 bn Yen loan to fund metro expansion, water supply, and crop diversification projects.
DEFENCE
• Security Cooperation: India and Japan signed a joint declaration on security cooperation signed in 2008.
• Technical cooperation to build military-technical cooperation (MTC) that increases mutual dependence.
• Modernising Indian Arm force capabilities via its US-2 amphibian aircraft and Soryu submarines.
• India, Japan signed a mutual military logistics pact to keep eye on China.
• Joint military drills: Exercise Dharma Guardian , Shinyuu Maitri, Sahyog- Kaijin & Malabar naval exercises.
BILATERAL PARTNERSHIP
• In 1993 India announced the ‘Look East Policy’. India’s ‘special strategic and global partnership’ with Japan is a grand
strategy in the post-Cold War era with upgradation to “Act East Policy” in 2014.
• Elevation of ties: In 2014 both elevated ties to a ‘special strategic and global partnership’.
• 2+2 Arrangement: In 2016, India started a ‘2 + 2’ arrangement for foreign and defence ministries.
CHALLENGES TO THE BILATERAL RELATIONS
• Trade Difference: The trade ties have remained underdeveloped compared to India’s trade ties with
China.RAHAAR 2024: INTERNATIONAL RELATIONS
• China Factor: Both countries have border issues with China.
• Russia Factor: Japan is part of the U.S.’s alliance and has also joined sanctions against Russia, while India has refused
to do so.
• Balancing between QUAD and BRICS
• Asia-Africa Growth Corridor (AAGC) Project
• Defence Exports: India is looking to export defence equipment which could potentially compete with Japan.
WAY FORWARD
• Enhancement in Regional Strength
• Address the Trade Bottleneck024: INTERNATIONAL RELATIONS
• Increase People-to-People Exchange
• Expand Partnerships in Science and Technology such as 5G, Telecom Network Security, submarine cable systems,
and Quantum Communications.
• Collaboration on Strategic Connectivity by linking South Asia to Southeast Asia by harnessing the synergy between
the “Act East” policy and the “Partnership for Quality Infrastructure”.
15 INDIA – SOUTH-EAST ASIA
20TH ASEAN-INDIA SUMMIT

Recently, the Prime Minister attended the 20th ASEAN-India Summit in Jakarta, Indonesia. ASEAN and India
celebrated the 30th anniversary last year and the relations between them have elevated to the level of
Comprehensive Strategic Partnership (CSP).
HIGHLIGHTS OF 20TH ASEAN-INDIA SUMMIT
• Theme: ‘ASEAN Matters: Epicentrum of Growth’
• Alignment with Indo-Pacific Initiatives
• ASEAN-India Free Trade Agreement (AITIGA) Reviewed
21
INDIA'S RELATIONSHIP WITH ASEAN
GEOPOLITICAL RELATIONS
• Central to Act East Policy
• India is part of the ASEAN Plus Six grouping, which includes ASEAN member states along with China, Japan, South
Korea, New Zealand, and Australia.
GEO-ECONOMICS (TRADE AND INVESTMENT)
• In 2010, India and ASEAN signed a Free Trade Agreement (FTA) that entered into force.
• Collectively, they contribute to 7% of the world's GDP and represent 26% of the global population, highlighting their
substantial combined strength.
Geostrategic Relations (Maritime and Defence): The 1st ASEAN-India Maritime Exercise took place in May 2023,
marking a significant achievement.
KEY DEVELOPMENTS
• Maiden Defence Meeting: India and Cambodia co-chaired the inaugural India-ASEAN Defence Ministers' Meeting
in November 2022.
• Enhancing Partnership: The ASEAN Post Ministerial Conference with India in July 2023 resulted in the adoption
of the Annex to the Plan of Action for ASEAN-India Partnership (2021-2025), further strengthening ties.
CHALLENGES IN INDIA-ASEAN RELATIONS
• Strategic Competition between the United States and China in the Asia-Pacific region.
• Absence of a Custodian or Central Authority
• Connectivity Issues
• Territorial Disputes: Territorial disputes in the South China Sea, involving some ASEAN members and China, can
complicate regional security and stability. For Example: Malaysia, the Philippines and Vietnam have formally
disputed a new Chinese map that claims most of the South China Sea as Chinese territory.
• Economic Challenges:
o India has not join the RCEP, a mega regional trade agreement involving ASEAN and its FTA partners.
o Fragmented Markets
o Imbalance Trade: India’s exports to ASEAN increased to US$ 44 in 2021-22. However, imports jumped to US$
87.57 billion.
o Reciprocal Trade and Investment Barriers: ASEAN faces trade and investment barriers in India, such as concerns
regarding India's CAROTAR rules imposed in 2020.
WAY FORWARD
• India's International Solar Alliance (ISA) and Coalition for Disaster Resilient Infrastructure (CDRI) could provide
solutions to ASEAN's challenges.
• Deepen the Comprehensive Strategic Partnership established in 2022, focusing on diverse sectors such as
connectivity, maritime cooperation, digital transformation, trade, and the economy.
• Digital Transformation
• Revising Funding Policy
INDIA- INDONESIA
The Indonesian Embassy in New Delhi in association with the Consulate General of Indonesia in Mumbai
celebrated the 75th year of diplomatic relations between Indonesia and India this year (2024). The
diplomatic relations between both countries, however, began in 1949.
• Defence Cooperation: discussions on the potential export of BrahMos missiles, conduct joint exercises “Samudra
Shakti-23”, and align strategically amid China's unilateralism.
• Strategic Partnership: In 2018, both nations reached a consensus to enhance cooperation within their
comprehensive strategic partnership.
• Maritime Security: Indonesia's Global Maritime Fulcrum and India's SAGAR vision align strategically in controlling
crucial sea lines of communication from the Bay of Bengal to the Strait of Malacca.
• Trade: Indonesia is now India's second-largest trading partner in ASEAN.
• India is the second largest buyer of coal and crude palm oil from Indonesia.
22
• Terrorism: New Delhi and Jakarta have an arrangement of a Mutual Legal Assistance Treaty and instrument of
extradition to deal with terror operatives.
• Connectivity: The Sabang port is being developed in partnership with Indonesia. It is close to the Malacca Strait.
• The Andaman-Aceh Link connects Sabang City in Aceh Province, Indonesia, with the Andaman and Nicobar Islands,
under the "Shared Vision of Maritime Cooperation in the Indo-Pacific" since 2018.
• Global forums: Both countries are members of the G20, the Non-Aligned Movement (NAM), the East Asia Summit,
and the United Nations.
SIGNIFICANCE OF INDIA-INDONESIA RELATIONS
Strategic Location and Security; Access to Sabang; Membership in International Forums; Countering Chinese
Assertiveness; Alignment of Vision; Addressing Terrorism
CHALLENGES IN INDIA- INDONESIA RELATIONS
China's Influence; Historical Differences; Unresolved Maritime Borders in the Andaman Sea are yet to be completed;
Economic Disparities; Cultural and Language Barriers; Competing Regional Interests
WAY FORWARD
Strengthen Economic Cooperation; Resolve Maritime Border Disputes; Deepen Strategic Engagement; Promote People-
Centric partnerships; Regular High-Level engagements
16 INDIA - WEST ASIA
ABOUT THE INDIA-MIDDLE EAST-EUROPE ECONOMIC CORRIDOR

• The project includes India, the UAE, Saudi Arabia, the European Union, France, Italy, Germany and the US.
• The project will aim to enable greater trade among the involved countries, including energy products.
• The IMEC comprises an Eastern Corridor connecting India to the Gulf region and a Northern Corridor connecting
the Gulf region to Europe.
• It will include a railway and ship-rail transit network and road transport routes.
• The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII)
KEY FACTS ABOUT THE PGII
• It is a collaborative effort by G7 nations to fund infrastructure projects in developing nations.
• The infrastructure plan was first announced in June 2021 during the G7 Summit in the UK.
• Collectively, it aims to mobilize nearly $600 billion from the G7 by 2027 to invest in critical infrastructure that
improves lives and delivers real gains for all of our people.”
INDIA'S TIES WITH WEST ASIA
• Historical Perspective: India's relations with
West Asia have historical roots, including
partnerships formed within the Non- Aligned
Movement (NAM).
• Regional Connectivity: India is involved in
projects like the development of the Chabahar
Port.
• Geopolitical Shift Towards Multipolarity ties
with Middle Eastern countries, especially the
UAE and Saudi Arabia.
• Energy Cooperation: Out of India’s total
imports of crude oil, the share of the Gulf
23
countries is about 60%. (Iraq- 22%, Saudi Arabia-18% [ORF Study]).
• Diaspora: West Asia hosts around 8.5 million Indians.
• Remittance: West Asia accounts for more than 55% of the country’s total remittance inflows.
• Trade and investment: Iran and the GCC member states accounted for a 15.3% share of India’s cumulative two-
way merchandise trade from 2017- 2021.
• Cultural Connect: Every year more than a lakh Indian Muslims go for Hajj in Mecca and Medina.
CHALLENGES IN INDIA-WEST ASIA RELATIONS
• Palestine Issue & India's deepening ties with Israel
• The Organization of the Islamic Cooperation (OIC) issued a customary statement condemning the violence in
Kashmir.
• China has emerged as the biggest trading partner and a major investor in the region.
• China's Belt and Road Initiative involves significant infrastructure projects in the Middle East.
• Rise of religious fundamentalism and its political manifestation in the form of jihadi radicalism and terrorism is a
cause of grave concern to India.
• Weak labor Laws: The Kafala system and Nitaqat law regulates migrant laborers in the Middle East.
WAY FORWARD
• Multi-Engagement Approach
• India should aim to maintain a significant geopolitical role in West Asia, regardless of U.S. involvement or China's
presence.
• Diversification of Economies ties: Embrace green technology-driven development path, aligning with their vision
spanning from 2025 to 2040.
• Protection policies for Indian diaspora
INDIA AND IRAN
• Red Sea Crisis: Highlighted attacks by Houthi militants targeting merchant vessels in the Red Sea amid the Israel-
Hamas war.
• Chabahar Port Development PlanP
• Proposal for Joint Transportation Committee to expand cooperation between the two countries.
• Humanitarian Focus on Gaza Situation
INDIA-IRAN BILATERAL TIES
• Political Dimension: India and Iran signed a friendship treaty on 15 March 1950. The Tehran Declaration signed
between the two countries affirms their shared vision for an “equitable, pluralistic and co-operative international
order.”
• Geo Strategic Location: Iran’s unique geographical position provides India access to Central Asia, Afghanistan, and
Eurasia markets.
• Economic Ties: Bilateral trade between Iran and India was US$2.5 billion in 2022.
• Energy Security: Iran ranks second globally in terms of gas reserves presenting opportunities for fuel
diversification, decarbonization, and increasing the share of gas in India’s energy mix until 2030.
• Cultural Ties: The Indian Cultural Centre was established in 2013 and renamed the Swami Vivekananda Cultural
Centre (SVCC) in 2018. India recently decided to include Farsi (Persian) as one of the nine classical languages in
India under the New Education Policy.
CHALLENGES IN RELATIONS
• US Sanctions impacting India’s Oil Imports and Chabahar Project
• China’s Increasing Presence
• India has close ties with Israel and it presents a challenge for India to balance its relations with Iran.
• Security Concerns: Hamas, Hezbollah and Houthis rebel groups are supported by Iran.
• Afghanistan Issue: The US withdrawal from Afghanistan created challenges for India’s Afghan strategy which relied
on US-Iran cooperation for its Afghan interests.
24
WAY FORWARD
• Ensuring Energy Security: India should take the lead in establishing Turkmenistan– Afghanistan–Pakistan–India
(TAPI) gas pipeline project to guarantee energy security.
• Enhancing Trade: India needs to decrease the tariffs on Iranian agricultural goods through Preferential trade
Agreements.
• India’s investment in Iranian oil and petrochemicals, the development of sea lines and the export of technical and
engineering services will lead to expanding trade between the two nations.
• Curbing Terrorism to create peace, stability, and security in the region.
• Boosting Connectivity especially the International North-South Transport Corridor (INSTC).
• India can utilize BRICS and Shanghai Cooperation Organization (SCO) platforms to discuss important regional issues
with the region.
IRAN-ISRAEL CONFLICT
Recently, Iran carried out a series of air strikes on Israel using 200-300 drones and ballistic missiles.
WAY FORWARD FOR INDIA
• A Dialogue-based Diplomatic Solution
• Proactive Engagement of India with the USA, Iran, Russia, and Israel to ensure that this conflict is contained.
• Consideration of Future Challenges
• Focus on Development: India must fast-track the completion of the Chabahar Port in Iran which has been
already delayed.
ISRAEL-PALESTINE CONFLICT
Israel declared a state of war after the Palestinian terrorist militant organization Hamas launched an attack on it.
WHAT IS THE CONFLICT BETWEEN ISRAEL AND PALESTINE?
• Jerusalem in the Israeli-Palestinian Conflict
• UN Partition Plan (1947): The original UN plan proposed Jerusalem as an international city.
• First Arab-Israeli War (1948): Israelis captured the western half of Jerusalem.
• Jordan took the eastern part, including the Old City and Haram al-Sharif.
• Six-Day War (1967): Israel defeated a coalition of Arab states, including Jordan.
• Jordan lost control of the al-Aqsa Mosque.
• Israel captured and annexed East Jerusalem.
• Post-Six-Day War: Israel considers the city its "unified, eternal capital."
• Palestinians insist on East Jerusalem as the capital of any future Palestinian state
INDIA’S STAND OVER CONFLICT
• India has expressed solidarity with the Palestinian cause and supported the establishment of a sovereign
Palestinian state.
• In 1975, India became the first non-Arab country to recognize the PLO as the sole representative of the Palestinian
people.
• In 1988, when the Palestine Liberation Organization (PLO) declared an independent state of Palestine with its
capital in East Jerusalem, India granted recognition immediately.
WAY FORWARD
• Implementation of Oslo Accords (1993): The Oslo Accord is an ongoing American -mediated effort to broker a
peace treaty between Israelis and Palestinians.
• Two-State Solution: The two-state solution has for decades been the primary focus of efforts to achieve peace in
the Israeli-Palestinian conflict
• The two-state solution aims to establish an independent Palestinian state alongside Israel, ensuring two states for
two peoples.
• Policy of De-hyphenation: India stated about the “de-hyphenated” relationship, means India would deal with
each country separately.
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17 INDIA - UAE
INDIA -UAE RELATION

• Beginning of Diplomatic Relations: Formal diplomatic relations were established soon after the UAE’s formation
in 1971 and the first Prime Ministerial visit was made by Indira Gandhi in 1981.
• Cultural Cooperation
o Indian Diaspora: The UAE is home to 3.5 million Indians (30% of the Emirate’s population).
o Educational Cooperation: A campus of the Indian Institute of Technology-Delhi is being established in Abu
Dhabi.
o Religious Cooperation: The Bochasanwasi Shri Akshar Purushottam Swaminarayan Sanstha temple initiative
strengthens religious diplomacy and is a mark of religious tolerance in a Gulf nation.
o Defence Cooperation: I2U2 Framework in 2022, whose members are India, Israel, UAE, and the US.
o Collaborative Global Leadership: India’s G20 presidency and the UAE’s COP28 presidency provided
additional opportunities for working together on global issues.
PROGRESS IN INDIA-UAE RELATIONS THROUGH DECADES ECONOMIC RELATIONS:
• India-UAE Trade Relations: India is UAE’s second-largest trading partner and UAE is India’s third biggest trade
partner.
• Comprehensive Economic Partnership Agreement (CEPA) in 2022 to reduce tariff barriers and increase trade and
investment flows between the nations.
• Bharat Mart is a key initiative of Dubai-based DP World and India’s Ministry of Commerce and Industry to boost
exports of Indian Micro, Small and Medium Enterprises.
MAJOR CHALLENGES IN INDIA-UAE RELATIONS
• Geopolitical Concerns
o The financial support from the UAE to Pakistan could be diverted for anti-India activities.
o China’s strategic investments and financial engagements in the UAE presents a challenge for India.
• Trade Challenges
o Concentration of Trade in Specific Items like hydrocarbon and precious metals trade.
o Presence of Non-Tariff Barriers like Sanitary and Phytosanitary measures along with issue of Halal certification
has led to the decline in Indian food item exports to the UAE.
• Labor Rights Concerns like The Kafala System proves to be exploitative practice for the Indian diaspora.
• Slow Project Implementation in executing the $75 billion UAE investment fund for Indian infrastructure projects
underscores inefficiencies and delays in bilateral economic initiatives.
• Disagreements over oil pricing between India, a major consumer, and the UAE, an OPEC member, have led to
tensions, impacting energy cooperation.
WAY FORWARD
• Transparent Aid Tracking: Advocate for transparency in financial aid, ensuring UAE’s support to other nations
does not adversely affect India’s security interests.
• Strengthen diplomatic channels to navigate regional tensions.
• Compliance within the tariff framework of each country should be adhered to ease trade.
• Bilateral Agreements for labour rights and improve the living conditions of migrant workers.
• Cultural Exchanges and Community Welfare Programs.
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18 INDIA AND CENTRAL ASIA
8 Importance of Central Asia

• Complex Geopolitics due to Global power intervention, Taliban government and rise of China.
• Connecting links like INSTC, Chabahar Port.
• Mineral wealth, Digital Connectivity & Trade Relations under TIR and Ashgabat Agreement,
• Energy Diplomacy & ongoing projects like TAPI.
• SCO – RAT initiative to counter terrorism
• Social capital & Healthcare services
• Multilateral Cooperation like Eurasian Economic Union, Heart of Asia Conference & SCO.
AREA OF COOPERATION
TRADE AND CONNECTIVITY
• International North-South Transport Corridor (INSTC) that will connect India with Iran, Afghanistan, Armenia,
Azerbaijan, Russia, Central Asia, and Europe for the transportation of freight.
• Ashgabat Agreement to facilitate the movement of commodities between Central Asia and the Persian Gulf, India,
Iran, Kazakhstan, Oman, Turkmenistan, and Uzbekistan.
DEFENCE AND SECURITY COOPERATION: Defence Exercise like ‘DUSTLIK’ with Uzbekistan, "Khanjar" with
Kyrgyzstan, and "Kazind" with Kazakhstan.
ENERGY COOPERATION
• One-stop energy resource centre: Kazakhstan generates 43% of the uranium in the world, Uranium, and gold
reserves are found in Uzbekistan.
• Deal with Uzbekistan to jointly explore and develop Uzbek gas reserves.
• Turkmenistan & India:The TAPI gas line with Turkmenistan is in progress.
• Solar energy cooperation: The Central Asian leaders showed interest in the Indian initiative of “One Sun, One
World, One Grid”.
COOPERATION IN HEALTH SECTOR: Vaccine Diplomacy and “One Earth, One Health”.
CHALLENGES
• Interests of China (OBOR initiatives) and the US have altered the geopolitical narratives of Central Asia.
• India’s trade with the region amounts less than US$ 2 billion.
• Hostility of Pakistan and Destabilised Afghanistan have closed the nearest land route to central Asia as well as
insecure the reach via Chabahar port.
• Sluggish development of INSTC projects has further stalled to enhance connectivity.
• Growing radical Taliban in Afghanistan, role of Pakistan, Saudi Arabia Turkey and Iran in spreading radicalisation
in Central Asia.
• The Proximity to Golden crescent and increasing terrorism is a threat to peace and stability.
• The Geopolitical region is fragile as the China-Russian convergence, the adverse impact of the Syrian crisis pushing
India away.
WAY FORWARD
• Strengthen Connectivity: Invest in infrastructure projects to enhance trade routes and connectivity.
• Diversify Partnerships: Seek new avenues for economic cooperation beyond energy dependence.
• Collaborative Security Measures: Work with Central Asian nations to address common security threats.
• Engage Actively: Increase diplomatic and cultural exchanges to foster closer ties and mutual understanding.
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19 INDIA- LATIN AMERICA
SIGNIFICANCE OF LATIN AMERICA FOR INDIA

• India has been exporting generic medicines worth a billion dollars to Latin America.
• Latin American firms have invested around a billion dollars in various sectors in India.
• Latin American software companies have established development and delivery centers in India.India now imports
20% of its crude oil from Brazil, Colombia, Mexico, and Venezuela.
• India is also a major provider of IT services to Latin America.
AREA OF COOPERATION
• People-to-people connect
• Multilateral cooperation such as BRICS and IBSA to reduce reliance on Western-dominated institutions.
• India has given grant for community development initiatives in CARICOM (The Caribbean Community and
Common Market).
• In 2004, India and MERCOSUR signed a Preferential Trade Agreement (PTA).
• The Defense Research and Development Organization (DRDO) of India and Brazilian aircraft manufacturer Embraer
have teamed up to create and manufacture radar platforms for use in aircraft
ISSUES
• Historically, the absence of cultural, linguistic, and diaspora ties has contributed to a dearth of connections.
• Digital divide(45.5% has broadband access) is a significant issue in Latin America.
• Financial limitations
• MERCOSUR has come to a halt because of disagreements among the members of the bloc.
• India's relations with the region are being influenced by political rivalries between countries such as Brazil and
Argentina, who are vying for regional dominance.
WAY FORWARD
• Gain a deeper understanding of the region.
• Take the lead in identifying key actors.
• Protect investments to avoid double taxation, support extradition and immigration, provide lines of credit, eliminate
regulatory obstacles, and more.
• Increase diplomatic presence.
20 INDIA AND AUSTRALIA
AREA OF COOPERATION
• Geographical Proximity to India’s extended neighborhood.
• Australia is currently India’s 17th largest trading partner and India is Australia’s 9th largest trading partner.
• As per the 2021 Census, around 9.76 lakh people in Australia reported their ancestry as Indian origin.
• Australia’s Deakin University and the University of Wollongong Indian campuses are being opened in the GIFT City
(Gandhinagar).
• Mutual Logistics Support Agreement (MLSA) was concluded to access the military.
• Both countries participate in “Malabar” exercises and AUSINDEX
• Clean Energy agreement via Letter of Intent on New and Renewable Energy in 2022.
CHALLENGES IN INDIA-AUSTRALIA RELATIONS
• Visa issues
• Khalistan Movement Concerns
28
• The economic relationship is narrow and primarily dominated by coal exports.

• Free Trade Agreement Challenges as India’s reluctance to liberalize market access in agriculture and Australia’s
reservations in labor mobility are obstacles to finalizing a comprehensive free trade agreement.
• Lack of Uranium Supply from Australia.
• Adani coal mine project in Australia has faced environmental and regulatory hurdles.
WAY FORWARD
• Navigating Market Challenges: India faces hurdles entering the Australian market, given Australia’s 16 operational
FTAs.
• Australia should commit to amending tax laws, preventing taxation of offshore income from Indian firms providing
technical services.
• The two countries should conclude the Comprehensive Economic Cooperation Agreement (CECA).
• Both countries reaffirmed their support for sovereignty and territorial integrity in the Indo-Pacific, democratic
values, rule of law, freedom of navigation and overflight and the peaceful resolution of disputes.
21 INDIA- AFRICA
India's trade volume with Africa for the year 2021–22 is significant, totalling US$ 89.5 billion.
India has close ties with SADC (Southern African Development Community): Founded in the year 1980. There are 16
nations in this group.
WHY IS THE AFRICAN CONTINENT IMPORTANT
• The Demographics of Africa, including its large working-age population, its growing middle class are valuable in
trade and investment relationships.
• Opportunity to Invest in Africa mainly in Consumer-driven goods like agribusiness, apparel and clothing etc.
• Number of African tourists visiting India for medical treatment has increased almost threefold in the last decade.
• India as Educational Hub for approx 25,000 African students as per the Association for African Students in India.
• Africa is enriched in mines and minerals such as diamonds, gold, platinum, and other forestry products.
INDIAN TECHNICAL AND ECONOMIC COOPERATION (ITEC)
• ITEC, which was established in 1964, has played a significant role in India-Africa collaboration.
• It has been crucial in developing Africa's skills.
• In 2019, India introduced the first e-ITEC pilot programme for two African countries.
AREA OF COOPERATION BETWEEN INDIA-AFRICA
• Trade and Investment by promoting trade diversification, investments, and exploring new business opportunities.
• India has actively supported infrastructure development projects in Africa.
• Capacity-Building and Skill Development via Indian institutions like the Indian Technical and Economic Cooperation
(ITEC) program and the Pan African e-Network project.
• Agriculture and Food Security with India sharing its experience. Eg. India-Africa Agriculture Cooperation Plan
• Healthcare and Pharmaceuticals support generic medicines to address healthcare challenges.
• India shares its expertise in solar energy, wind power, and other renewable energy sources to support Renewable
Energy and Climate Change. Eg. International Solar Alliance
• Education and Cultural Exchanges
ISSUES AND CHALLENGES
• Geographical Distance poses logistical challenges in terms of connectivity, trade, and people-to-people exchanges.
• Growing Chinese influence
• Competing Priorities for African countries with major powers like China, the European Union, and the US.
• Infrastructure Deficits including inadequate transportation networks, power shortages, and digital connectivity.
• Security Concerns including terrorism, piracy, and conflicts in some African regions.
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• Cultural and Linguistic Diversity

WAY FORWARD
• Developing Capacity with human resources, skills and institutional frameworks.
• Market Access and Trade Barriers
• Removing Development Imbalance
22 SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)
INTRODUCTION
• The South Asian Association for Regional Cooperation (SAARC) is South Asia's regional intergovernmental
organization and geopolitical union, established in December 1985 in Dhaka.
• Its headquarters are in Kathmandu, Nepal.
• Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka are its members.
• The SAARC region covers 3% of the global land area, 21% of the global population, and 4.21% of the worldwide GDP.
THE OBJECTIVES OF THE SAARC
• To establish better cultural and social ties amongst the member states to promote peace in the region.
• To promote trade among its members in order to enhance its members' economic situation.
SIGNIFICANCE OF SAARC FOR INDIA
• Regional Integration by providing a balance between globalization and hyper-nationalism.
• Socio-Economic development in the region to improve the standard of life and poverty alleviation.
• Countering Terrorism to strengthen security and defence cooperation.
• Containing China and its OBOR project by engaging with regional countries.
• Indo-Pacific and Act East Policy to link South Asia with south-east Asia economically, socially as well as politically.
• India’s Soft Power to build a regional architecture.
• India’s global ambitions
ACHIEVEMENTS OF SAARC
• SAPTA and SAFTA: To boost regional trade among countries of the region.
• South Asian Identity to share a common heritage, culture, clothing, and political systems.
• South Asian University to create a center of excellence.
• SAARC Development Fund to improve the welfare of the South Asian region.
• SAARC Arbitration Council to provide a legal framework for fair and effective settlement of disputes.
• India's proposal to launch a COVID-19 Emergency Fund was received positively, with all countries contributing
voluntarily.(Eg. Vaccine Maitri programme.)
FAILURES OF SAARC
• Un-stable Indo-Pak Relations
• No regular meetings
• Weak Cultural Identities due to trust deficit among members.
• Unresolved border and maritime issues.
• Limitation in SAFTA
• Bilateral issues like Bangladesh’s concerns over CAA-NRC, the Madhesi issue and the Kalapani Border issue between
India and Nepal etc.
• Rising Chinese footprint, with Pakistan, Nepal, Bangladesh, and Sri Lanka all moving closer to China for ideational
and material reasons. China is also offering tariff exemptions to Bangladesh and Sri Lanka.
30
WAY FORWARD
• Reviving SAARC to deal with China
• Economic Integration via Social media and citizens can foster regional integration.
• Ease of doing business to facilitate freer transit trade, develop supply and logistic chains, use trade lines of credit,
increase connectivity, and reduce transaction costs.
23 BRICS
INTRODUCTION
BRICS is an association of five major and emerging economies consisting of Brazil, Russia, India, China, and South Africa.
The term was coined in 2001 by Jim O'Neill, an economist at Goldman Sachs.
FACT-WISE
• Representing around 41% of the global population, 30% of the global tertiary, around 24% of the global GDP, and
around 16% of global trade.
• India's total trade with the BRICS countries was $110 billion in 2019-20 and it rose to $113.3 billion in 2020-21.
ISSUES AND CHALLENGES OF BRICS
• Chinese Approach of Unilateralism to dominate groups.
• Changing Geopolitical Environment dividing members into Anti-West and West supporters.
• In BRICS, India and China have relatively high growth rates, but trade between the two is marred by several
challenges.
• Lack of Coordination
• Political Differences due to different political systems, ideologies, and foreign policy priorities.
• Expanding Membership may pose a challenge in consensus building.
14TH BRICS SUMMIT
• Held virtually on June 23, 2022, hosted by China under the theme of “Foster High- quality BRICS Partnership,
Usher in a New Era for Global Development”.
• Issues Discussed:
o Global Issues such as the reform of the multilateral system, the COVID-19 pandemic, among others.
o Strengthening BRICS and proposed the creation of an online database for BRICS papers, a BRICS Railways
Research Network, and improved MSMEs cooperation.
o ‘Beijing Declaration’ to support the International Committee of the Red Cross's (ICRC) and the UN's initiatives
to provide humanitarian relief to Ukraine.
SIGNIFICANCE OF BRICS FOR INDIA

• Economic Opportunities
• Geopolitical Influence to voice its concerns, interests, and viewpoints on important global issues.
• Developmental Cooperation like the New Development Bank (NDB) provides India with access to financial resources
for infrastructure development and sustainable projects.
• Diplomatic Engagement
• Knowledge Sharing And Best Practices
WAY FORWARD
• Enhancing the people-to-people exchanges
• Diplomatic Engagement to coordinate with other BRICS members on various multilateral forums, such as the UN.
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• Multisectoral Engagement
• Enhance Infrastructure Connectivity
• Expansion of BRICS making it BRICS-Plus. 6 new countries have been added to the grouping, i.e., Argentina, Egypt,
Ethiopia, Saudi Arabia, Iran and UAE.
24 BAY OF BENGAL INITIATIVE FOR MULTI-SECTORAL TECHNICAL AND

ECONOMIC COOPERATION
INTRODUCTION
BIMSTEC is a regional organization established in 1997, comprising seven member countries located in the Bay of
Bengal region i.e. Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand.
The BIMSTEC region hosts 22% of the world population or 1.68 billion people; and the member states have a combined
GDP of US$3.697 trillion/per year.
PRINCIPLES OF BIMSTEC
Based on respect for the principle of sovereign equality, territorial integrity, political independence, non-interference
in internal affairs, non-aggression, peaceful co-existence, mutual respect and mutual benefit.
IMPORTANCE OF BIMSTEC FOR INDIA
• In Align with ‘Act East’ Policy
• Environment and Disaster Management via link between BIMSTEC countries through Tsunami Early Warning
Centre.
• Strategic Location as India's north eastern states share borders with BIMSTEC member countries.
• Connectivity and Infrastructure Development: Examples: Kaladan Multimodal Project – links India and
Myanmar, Asian Trilateral Highway - connecting India and Thailand through Myanmar, Bangladesh-Bhutan-India-
Nepal (BBIN) Motor Vehicles Agreement - for seamless flow of passenger and cargo traffic.
• Counterterrorism and Security Cooperation
• Maritime Security and Blue Economy
• Regional Integration and Influence
ISSUES
• A lack of efficiency and “sluggish” pace of BIMSTEC’s progress.
• Inadequate Funds and manpower assistance for its operational works.
• No Coastal Shipment
• India’s percentage of annual trade with it as a percentage of its total foreign trade was just 4%(2020).PRAHAAR
• Lack of Mutual Cooperation and Trust
• Inconsistency In Summits
WAY FORWARD
• Finalizing the BIMSTEC Free Trade Agreement (FTA), which has been under negotiation since 2004.
• Implementing the BIMSTEC Master Plan on Transport Connectivity (BMPTC), which was adopted in 2020.
• Strengthening the cooperation in the energy sector, especially in the field of renewable energy and natural gas.
• Enhancing the cooperation in the security sector, especially in combating terrorism, extremism, drug trafficking and
cybercrime.
• Promoting the people-to-people exchanges and cultural ties among BIMSTEC countries.
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25 SHANGHAI COOPERATION ORGANIZATION (SCO)
INTRODUCTION
• SCO is a permanent intergovernmental organization signed in 2002 and entered into force in 2003.
• It comprises 9 member states: China, India, Kazakhstan, the Kyrgyz Republic, Pakistan, Russia, Tajikistan, Uzbekistan
and Iran.
OBJECTIVES AND PRINCIPLES
• To deal with extremism, radicalism, drug trafficking and counter terrorism.
• Promote economic security by trade, connectivity and financial inclusion.
• Its aim was to counter the USA and showcase eastern values of mutual respect and plurality.
• SCO consists of almost One third of the global GDP and 40 percent of the global population.
• SHANGHAI SPIRIT of non-interference, consensus, harmony, respect for culture and non-alignment.
INDIA'S STRATEGIC GAINS FROM THE SCO
• India's SCO membership signifies its status as a major power with interests beyond the Asian continent.
• It allows India to leverage its ties with Russia, Iran, and Central Asian Republics to counter the China-Pakistan
alliance.
• Connectivity Boost with initiatives like the Eurasian Economic Union (EEU) and the International North-South
Transport Corridor (INSTC).
• Security Collaboration for international and regional counterterrorism initiatives. It also facilitates measures to
combat drug trafficking through intelligence sharing via the Regional Anti-Terrorist Structure (RATS).
• Geopolitical Engagement with major regional powers like China and Russia on various geopolitical issues.
SCO Summit 2022: Key Outcomes

• Convened in Samarkand, Uzbekistan.
• India assumed the SCO presidency and hosted the 2023 summit.
• Iran gained acceptance as a permanent member.
• Varanasi was designated as the SCO Tourism and Cultural Capital for 2022-2023.
• Samarkand Declaration outlining their cooperation goals.
India's Initiatives:
• Food Security by promoting millets to address global food security concerns.
• India proposed a new SCO working group to focus on traditional medicine.
26 INDIA AND QUAD
INTRODUCTION
Quad formed in 2007, is a strategic forum uniting four nations in the Indo-Pacific: US, Japan, Australia, and India.
IMPORTANCE OF QUAD
• Uphold international law, respect sovereignty, ensure freedom of navigation and promote peaceful dispute
resolution.
• Economic Prosperity by aligning trade and investment policies, promoting infrastructure development, and
facilitating connectivity.
• Collective Security through information sharing, joint military exercises, and coordinated strategies
• Combining resources and expertise to provide effective humanitarian assistance and disaster response in the Indo-
Pacific.
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• Promoting Democracy
ISSUES
• Economic ties of QUAD members with China particularly Australia with 38% of its exports going to China.
• Uneven Strength of military & economic capabilities among four members leads to imbalances.
• India prioritizes security concerns in the Indian Ocean Region, while the other lean towards the Pacific.
• China Taboo to explicitly name China as its primary strategic concern due to economic interdependence.
WAY FORWARD
• Efforts to reduce economic reliance on China and forge stronger trade partnerships with other countries.
• Focus on Shared Interest
• Interoperability and Joint Exercises between Quad forces can enhance collective defense capabilities.
• Open Communication can build trust and transparency within the Quad.
• Quad Plus:
o The membership can be increased to include countries like Vietnam, New Zealand, South Korea etc, who share
similar interests.
o European countries UK and France who have naval bases in the region can also be incorporated in expanded
QUAD.
• Address Non-Traditional Security Challenges such as climate change, maritime security, cyber threats, and public
health crises.
THE 2023 QUAD SUMMIT IN HIROSHIMA
KEY INITIATIVES
• "Quad Infrastructure Fellowships Programme" in designing and managing sustainable infrastructure projects.
• "Partnership for Cable Connectivity and Resilience" for undersea cables, vital for communication and internet
access.
• Open Radio Access Network (ORAN) project in Palau for and secure communication solutions in the Pacific.
• India to host the next Quad Summit in 2024.
STRENGTHENING THE QUAD ACT: U.S. House of Representatives recently passed the "Strengthening the Quad Act,"
signaling a commitment to closer cooperation between the United States, Australia, India, and Japan (Quad).
Key Provisions of the Act:
• Enhanced Collaboration.
• Regular Engagement
• Outline Focus Areas like pandemic preparedness, technological innovation, and economic integration.
27 NORTH ATLANTIC TREATY ORGANIZATION (NATO)
INTRODUCTION
• NATO is a military alliance founded in 1949 by the US, Canada, and Western European states to offer collective
protection against the Soviet Union. Currently, there are 32 member countries.
THE OBJECTIVES OF NATO
• Guiding Principle: to safeguard the freedom and security of its members through a collective defense approach.
• Political Collaboration to promote democratic values and fosters communication among members.
• Military Capability: NATO maintains a strong military force for crisis management operations.
CONCERNS REGARDING NATO EXPANSION
• A larger alliance might struggle to reach consensus and weaken its commitment to collective defense (Article V).
• Continual expansion might leave some hopeful members, like Ukraine, feeling insecure without full membership.
• Financial Burden.
• Diverted Focus
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• Potential for Conflict

INDIA AND NATO: A SHIFTING RELATIONSHIP
• India hasn't prioritized strategic engagement with Europe, focusing more on its relationship with Russia.
• Following the Soviet collapse, India failed to adapt its European policy to the new landscape.
• India has begun to independently develop relations with European nations, moving beyond its Russia-centric
approach.
• Countering Neglect: Increased engagement is evident in initiatives like maritime cooperation with France and
summits with Nordic and Visegrad Four nations.
WHY ENGAGE NOW?
• India's non-alignment policy during the Cold War is no longer a relevant reason to avoid NATO.
• Both India and NATO share concerns about China's rise, making cooperation beneficial.
• India's concerns about Russia's growing ties with China can be balanced by a stronger European partnership.HAAR
NATO'S RELEVANCE IN A CHANGING WORLD
• Adapting to New Threats like Condemning Russia's aggression in Ukraine and supporting Ukrainian sovereignty.
• Beyond Military Means by responding to the COVID-19 pandemic.
• Shifting Focus towards The Indo-Pacific.
ISSUES IN NEWS
75 YEARS OF NATO AND SWEDEN'S ACCESSION
• The North Atlantic Treaty Organization (NATO) recently celebrated its 75th anniversary.
• Marking this milestone, Sweden formally joined the alliance as its 32nd member.
RECENT NATO SUMMIT 2023
• Held in Vilnius, Lithuania.
• Key Outcomes of the Summit:
o NATO-Ukraine Council extend support for Ukraine in the face of ongoing challenges.
o Expanded Alliance by including Finland and Sweden.
o It acknowledged China's growing influence, including its malicious cyber activities, aggressive rhetoric, and
disinformation campaigns, recognizing them as threats to Euro-Atlantic security.
28 INDIA AND G-20
INTRODUCTION
G20 brings together the world's largest economies which includes 19 countries plus the European Union.
G20'S ROLE AND FOCUS
• Shaping Global Governance
• Broadened Agenda including trade, sustainable development, health, agriculture, energy, environment, climate
change, and anti-corruption.
• Promoting Gender Equality aiming for a 25% reduction in the gender disparity by 2025.
• Strengthening Diplomacy by providing a platform for bilateral meetings between leaders.
• The G20 Presidency is supported by the Troika, consisting of the previous, current, and incoming presidencies.
During India's term, the Troika was Indonesia, India, and Brazil.
G20’S CHALLENGES
• Divided Vision
• Limited Authority
• Transparency Deficit in its decision-making processes.
• The rise of protectionism and trade conflicts between major economies.
35
WAY FORWARD
• Embrace Inclusivity by engaging non-member countries and diverse stakeholders.
• Focus on Collaboration to encourage collective action on a range of issues.
• Deliver on Commitments to solidify the G20's credibility.
• Maintain focus on long-term goals and prioritize sustained action on critical issues across presidencies.
INDIA AND G20
India recently held the presidency of the G20 forum from December 2022 to November 2023. During its presidency,
India reflects its priorities for the future, manifesting the true spirit of ‘Vasudhaiva Kutumbakam’ or the ‘World is One
Family.
PRIORITIES SET BY INDIA'S PRESIDENCY
• To achieve Green Development & Sustainability through a dedicated G20 Action Plan.
• The "Lifestyle for Environment" (LiFE) initiative, coupled with the G20 High-Level Principles on Sustainable
Development, aims to transform our approach to climate change and environmental challenges.
• Inclusive & Resilient Growth.
• Digital Transformation & Infrastructure
• Revitalizing Multilateralism by reforms in international institutions like the WTO and WHO.
• Empowering Women
• India Pushes for Global Crypto Regulation under G20 Presidency
SIGNIFICANCE OF THE PRESIDENCY
• Promoting Peace and Security between Russia and Ukraine, solidifying India’s position as a global peacemaker.
• Championing the Global South
• Fostering North-South Collaboration on issues like reformed multilateralism, climate action and Ukraine conflict.
• Strengthening Global Health via its digital health infrastructure, like CoWIN.
• Addressing Development Needs of developing countries, small island nations, and those facing economic hardship.
• Boosting Regional Cooperation for BIMSTEC nations, strengthening regional ties and aligning with India's
"Neighbourhood First" and "Act East" policies.
• Kashmir Showcase: The G20 meeting's location in Kashmir highlighted the region's tourism potential while
upholding India's position on the issue.
ISSUES IN NEWS
INCLUSION OF AFRICAN UNION (AU) IN G20
The African Union (AU) has become a permanent member of the G20, marking a significant shift in global governance.
Benefits for the G20:
• Harnessing Africa's vast renewable energy resources and critical minerals help in climate change mitigation.
• The AU's inclusion broadens the G20's reach, fostering more inclusive and globally impactful solutions.
• G20 is now more reflective of the global community.
Benefits for India:
• India's advocacy for the AU solidifies its position as a leader for developing nations.
• This move aligns with India's vision for a multipolar world and a more equitable international order.
• This supports India's aspirations for a permanent UN Security Council seat.
29 G-7
The G7 is a group of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
ROLE OF G7
• Global Leadership to tackle major global challenges
• Collective Action
36
• Broadening Participation.
• Addressing Emergent Crises
INDIA AND G7
IMPORTANCE OF G7 FOR INDIA
• Participation allows India to contribute to solutions for global challenges on behalf of the developing world.
• G7 discussions tackle critical global issues where India's expertise can be valuable.
• Democratic Leadership.
WHY INDIA MATTERS TO THE G7
• Global Player: India's economic and military strength positions it as a key player on the world stage.
• Responsible Leadership: India offers a counterpoint to China, promoting a rules-based international order.
• Economic Powerhouse: India's sizable GDP rivals established G7 economies.
• Balancing the Global Order: The G7 sees India as a potential counterweight to China's growing influence.
• Economic Powerhouse: India's booming economy makes it an attractive partner for trade and investment.
• Indo-Pacific Anchor: India's strategic importance in the Indo-Pacific region aligns with G7 interests.
• Global South Voice: India's inclusion strengthens the G7's connection to developing nations.
30 WORLD BANK GROUP AND INDIA
INTRODUCTION
• The World Bank is a large international financial institution that works to fight poverty by offering loans and grants
to developing countries.
• It's part of a five-institution group called the World Bank Group, which also focuses on private sector development,
investment guarantees, and settling investment disputes.
• It has 189 member countries.
STRUCTURE OF WORLD BANK
Name of The Institution Mandate Is India A Member Or

Not
The International Bank for Provides debt financing to governments of Yes.
Reconstruction and Development middle-income and low-income but credit-
(IBRD) worthy countries.
The International Development Provides interest-free loans called credits Yes.
Association (IDA) and grants to governments of the poorest
countries.
The International Finance Corporation It is the largest global development Yes.
(IFC) institution focused exclusively on the private
sector.
The Multilateral Investment Guarantee Promotes foreign direct investment into Yes.
Agency (MIGA) developing countries to support economic
growth, reduce poverty, and improve
people’s lives.
The International Centre for Provides international facilities for No. India isn’t a member.
Settlement of Investment Disputes conciliation and arbitration of investment
(ICSID) disputes.
MAIN FUNCTIONS OF THE WORLD BANK

• Financial Support with low-cost loans, grants, and even interest-free credits to fuel their economic development.
37
• Sustainable Development Champion in formulating the Sustainable Development Goals (SDGs) and actively works
towards achieving them.
• Knowledge Sharing
WORLD BANK AND INDIA
• India played a key role in establishing the World Bank, participating in the Bretton Woods Conference.
• Supporting India's Growth
• Responding to Crisis as seen during COVID-19 pandemic.
RECENT DEVELOPMENT BETWEEN THE WORLD BANK AND INDIA
• Education: Improved access to quality primary and secondary education, particularly for girls.
• Social Sector: Provided financial aid to mitigate the impact of COVID-19 and empowered women through skill
development programs.
• Health: Notably, contributed to a significant reduction in new HIV infections and supported tuberculosis treatment
programs.
• Nutrition: Reached millions of pregnant and lactating women with vital support since 2015.
• Energy: Collaborated on setting up large-scale solar power projects in Madhya Pradesh.
• Infrastructure: Contributed significantly to rural water supply and sanitation projects.
• Logistics: India's ranking in the World Bank's Logistics Performance Index has improved.
CHALLENGES WITH WBG
• Unbalanced Representation: Developing nations have less say in decision-making due to voting structures.
• Loan terms can compromise borrower nations' sovereignty by imposing economic policies and practices.
• The WBG struggles to implement recommendations for improvement from its own evaluation bodies.
• The WBG's focus on economic growth without considering environmental or social impact can be detrimental in the
long run.
• Large-scale projects attract investors but often lack alignment with climate goals and can displace communities.
WAY FORWARD
• Revamping Representation: Ensure a more equitable voice for developing nations in decision-making processes.
• Flexible Loan Conditions: Design loan terms that prioritize borrower countries' needs while maintaining financial
responsibility.
• Prioritizing Sustainability: Integrate environmental and social impact assessments into project evaluations to
promote sustainable development.
• Supporting Smaller Projects: Allocate resources to smaller-scale initiatives that can have a significant impact at
the local level.
• Building Partnerships: Collaborate with other institutions and NGOs to leverage expertise and resources for a
more holistic approach to development.
31 WORLD TRADE ORGANIZATION AND INDIA
INTRODUCTION
• Established in 1995, it represents the culmination of previous agreements like the General Agreement on Tariffs and
Trade (GATT).
• With 164 member countries, encompassing over 98% of global trade, the WTO serves as a forum for negotiating and
enforcing trade agreements.
• Its core objective is to ensure smooth, predictable, and free-flowing international trade.
38
GENERAL AGREEMENT ON TRADE AND TARIFFS (GATT)
Established in 1948, it became the primary framework for trade regulations until the World Trade Organization (WTO)
assumed its responsibilities in 1995.
LIMITATIONS OF GATT
• GATT primarily focused on reducing tariffs and quotas on goods, lacking the authority to address trade in services
or intellectual property.
• GATT operated as a set of agreements without a formal institutional structure, hindering enforcement and dispute
resolution.
The Rise of the WTO: The WTO addressed these shortcomings by establishing a comprehensive legal framework
governing trade in goods, services, and intellectual property. It also created a permanent institutional structure to
oversee trade agreements and resolve disputes between member countries.
FUNCTIONS OF WTO
The WTO serves as a central hub for promoting international trade
through various functions:
• Enforcing Trade Agreements to prevent unfair practices like
preferential treatment for specific countries.
• Negotiating Trade Deals and establishing dispute resolution
mechanisms. (e.g., agreements on agriculture and intellectual
property)
• Resolving Trade Disputes: The WTO offers a forum for settling
trade disputes between member states through formal hearings.
(e.g., disputes over agricultural subsidies)
• Promoting Trade Flow: It establishes a legal framework for the smooth exchange of goods and services across
borders.
• Building Trade Capacity to support developing countries in participating effectively in international trade.
GOVERNANCE OF WTO
• Ministerial Conference: The topmost decision-making body of the WTO and it usually meets every two years.
• General Council: It is WTO’s highest-level decision-making body situated in Geneva, and holds meetings regularly.
• The Trade Policy Review Body (TPRB): The WTO General Council meets as the TPRB to undertake trade policy
reviews and to consider the Director-General's regular reports on trade policy development.
• Dispute Settlement Body (DSU) to deal with disputes between WTO members.
ACHIEVEMENT OF WTO
• Streamlined Trade Rules trade in goods and services, reducing complexities and encouraging trade flows.
• The WTO recognizes the need for developed countries to lower barriers for exports from least-developed countries,
promoting their economic growth.
• Boosted Trade Volumes by reducing tariffs.
• WTO facilitated the rise of global value chains, where businesses can source materials and production across
borders, boosting efficiency.
• Poverty Reduction
• The WTO has liberalized trade in information technology products and eliminated harmful farm export subsidies,
promoting a more sustainable trading environment.
ISSUES RELATED TO WTO
• Institutional Dysfunction: The inoperable Appellate Body weakens the WTO's enforcement capacity.
• The WTO struggles to address modern issues like e-commerce and digital trade, hindering adaptability.
• China's state-directed economic model and the US-China trade war disrupt the free-market principles of the WTO
system.
• The unclear definition of "developed" and "developing" countries creates friction in negotiations.
• The rise of regional trade agreements like NAFTA and ASEAN undermines the WTO's multilateral approach.
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• Developed countries' tariff reductions weaken preferential treatment for developing nations.
WTO AND INDIA
India has actively used the WTO to:
• Lower trade barriers through WTO agreements helped India become a major exporter of goods and services.
• Access to global markets and technology transfer have contributed to India's economic growth.
• India advocates for the interests of developing countries within the WTO, pushing for fairer trade practices.
INDIA'S STANCE ON FOOD SECURITY
• India frequently invokes the WTO's "peace clause" to justify exceeding subsidy limits on rice production. This
prioritizes domestic food security needs over strict adherence to WTO rules.
• India provides rice subsidies exceeding the 10% limit set by the WTO, citing the need to support its large vulnerable
population.
• Public Stockholding Program allowed under the peace clause, involve procuring and distributing essential grains
like rice at subsidized rates to ensure food security for the poor.
• India defends temporary export bans on wheat and broken rice (used in animal feed) as necessary measures to
safeguard its own food security.
• Challenges and Considerations:
o Market Distortion: Excessive subsidies can distort global agricultural markets.
o Trade Certainty: Other countries seek predictability in food trade and may view export bans as disruptive.
HIGHLIGHTS OF INDIA’S 7TH TRADE POLICY REVIEW (2021)
• India's Customs Electronic Gateway (ICEGATE) offers online filing services, simplifying trade processes.
• The Single Window Interface for Trade (SWIFT) minimizes interactions with government agencies, saving time and
costs.
• Direct Port Delivery (DPD) allows select importers to clear cargo within 48 hours, reducing congestion and costs.
• Direct Port Entry (DPE) enables efficient 24/7 movement of containers from factories to ports.
• The Goods and Services Tax (GST) is a major structural reform streamlining domestic trade.
• Liberalization of the Foreign Direct Investment (FDI) regime and the National Intellectual Property Rights Policy
(2016) demonstrate India's commitment to a more open economy.
•
WAY FORWARD
• Introducing provisions to protect domestic markets of developing countries from foreign goods can bolster their
confidence in the WTO system.
• Modernizing the WTO requires establishing a new framework of rules to address digital trade and e-commerce
effectively.
• To counter climate change and revitalize the WTO, increased efforts are needed to align trade policies with
environmental sustainability goals.
• Rebuilding trust among member nations is crucial. The WTO needs active participation from all countries to
establish fair trade rules for the collective benefit and to counter unfair practices.
32 INTERNATIONAL MONETARY FUND AND INDIA
INTRODUCTION
The International Monetary Fund (IMF), established in 1944 after the Bretton Woods Conference, is a global
organization with 190 member countries.
FUNCTIONS OF IMF
• Fosters collaboration among member countries on economic and financial policies to ensure a coordinated
approach.
40
• Exchange Rate Stability which are essential for smooth international trade and investment.
• Multilateral Payments System for international payments and minimizing disruptions.
• Provides temporary financial assistance to member countries facing balance of payment problems, helping them to
stabilize their economies.
FUNDING OF THE IMF
The International Monetary Fund (IMF) relies on a three-pronged approach to secure its financial resources:
• Member Quotas: This is the primary source of funding. Each member country contributes a set amount based on
its economic standing.
• Multilateral Borrowings: The IMF has a borrowing arrangement (NAB) with a group of member countries and
institutions to supplement quota resources.
• Bilateral Borrowing Agreements: The IMF can also enter into borrowing agreements with individual member
countries.
CRITICISM OF IMF
• Voting Disparity as more voting rights and borrowing power are given to developed nations.
• IMF's loan conditions are overly intrusive and infringe upon borrowing countries' economic and political autonomy.
• One-Size-Fits-All Approach.
• Dominant Power Structure: Reforming the IMF requires an 85% majority vote, heavily concentrated with a small
group of developed nations, particularly the US.
REFORMS NEEDED
• Quota Fairness: Removing the biased "openness" measure and increasing quotas for emerging economies like
China and BRICS nations are crucial.
• Enhanced Representation
• The current bilateral discussions under Article IV lack transparency and can negatively impact developing nations'
borrowing ability.
• The informal tradition of an American leading the World Bank and a European leading the IMF needs to be replaced
with a merit-based selection process.
INDIA AND IMF
India has been a member of the IMF since its inception in 1945. It actively participates, holding a significant quota and
plays a role in shaping the IMF's policies. The IMF projects India to become the world's 4th largest economy by 2025.
INDIA'S BALANCE OF PAYMENTS CRISIS IN THE 1990
• In the early 1990s, India faced a severe balance of payments deficit, particularly with the US and other countries
using hard currencies.
• The IMF offered a loan of SDR 3.6 billion (Special Drawing Rights, an IMF unit of exchange) on the condition that
India implemented significant economic reforms.
• The IMF's conditions for the loan centered on structural reforms including Devaluation of the Indian Rupee and
Fiscal Consolidation.
33 WORLD HEALTH ORGANISATION (WHO) AND INDIA
INTRODUCTION
• The World Health Organization (WHO), established in 1948, is a specialized agency of the United Nations.
• With a presence in over 150 countries,WHO plays a vital role in shaping research agendas, setting global health
norms, and providing technical support to countries.
41
MANDATE AND FUNCTIONS
• WHO's primary goal is to ensure that all people have the right to the highest attainable standard of health.
• It sets the global health agenda, shapes research directions, and proposes evidence- based policy options.
• It plays a key role in stimulating and guiding health research around the world.
• It provides technical support to countries to strengthen their health systems and improve health outcomes.
• It monitors and assesses global health trends and disseminates critical health information.
INDIA AND WHO
• India has a long-standing partnership with the World Health Organization (WHO), dating back to India's
membership since 1948.
• Their collaboration extends to areas like controlling infectious diseases, promoting primary healthcare, and
improving maternal and child health.
FOUR STRATEGIC PRIORITIES OF WHO IN INDIA
1. Universal Health Coverage (UHC) through initiatives like Ayushman Bharat.
2. Promoting Health and Well-being
3. Strengthening Health Emergency Preparedness
4. Elevating India's Global Health Leadership
CRITICISM OF WHO
• The World Health Organization (WHO) has faced criticism for its handling of recent health crises (eg. COVID)
• Funding pattern: WHO relies heavily on donations from wealthy nations, raising concerns about its autonomy and
ability to respond effectively during emergencies.
• Past Performance: The organization's response to the 2014 West Africa Ebola outbreak was deemed inadequate,
casting doubt on its overall effectiveness.
• COVID-19 Response: Critics point to the WHO's delay in declaring the pandemic and perceived lack of decisive
action in advising governments on control measures.
• Political Influence: Some nations believe the WHO's approach has been swayed by political considerations.
• Limited Authority: The WHO's recommendations are not binding, hindering its ability to enforce effective
responses.
WAY FORWARD
• Sustainable Funding with increased contributions from all member states, could reduce dependence on individual
donors.
• Strengthened Early Warning Systems for faster and more effective responses to outbreaks.
• Transparency and Communication for building trust and ensuring global cooperation.
• Empowering National Governments in developing strong public health infrastructures and preparedness plans.
• Independent Review and Reform
34 UNITED NATIONS (UN) ORGANISATION AND ASSOCIATED ISSUES
INTRODUCTION
• The United Nations (UN) was established in 1945 after the devastation of World War II. It serves as a global platform
for fostering international cooperation and maintaining peace and security.
• It brings together all member states, currently numbering 193, to work towards a collective future based on shared
principles like human rights, sustainable development, and upholding international law.
ISSUES IN UNITED NATIONS
• Funding Shortfalls involving Resource strain, Unreliable funding and climate change burden.
• Security Council Gridlock due to veto power of Security Council members.
42
• Divided Voice
• Duplication of Efforts.
• Conflict Resolution Hurdles
• Human Rights Struggles due to limited mechanisms, political considerations, and differing interpretations.
• The UN's pace of reform is seen as slow, hindering its ability to address emerging challenges like climate change and
technological advancements.
INDIA AND UN
India, as a founding member of the United Nations (UN), has been actively engaged with the organization since its
inception.
INDIA'S KEY CONCERNS AT THE UN
• Permanent Membership in the UN Security Council.
• India pushes for stronger global cooperation to fight terrorism, including tackling financing, dismantling networks,
and pursuing justice for perpetrators.
• As a major contributor of troops to UN peacekeeping missions (over 275,000 Indian troops deployed), India seeks
continued support for these efforts.
• Sustainable Development
• India advocates for a fair and inclusive global nuclear disarmament process that addresses security concerns while
preventing proliferation.
• India faces challenges acquiring sufficient development assistance.
INDIA’S APPREHENSIONS ABOUT OTHER UN BODIES
India actively participates in the UN system but has raised concerns with specific organizations:
• UN Security Council (UNSC): India advocates for reform, including a permanent seat for itself, to reflect
contemporary global realities.
• UN Human Rights Council (UNHRC): India criticizes the UNHRC's perceived bias and selective focus on human
rights violations.
• UN Conference on Trade and Development (UNCTAD): India pushes for a more balanced approach to trade and
development issues that favors developing countries.
• United Nations Educational, Scientific and Cultural Organization (UNESCO): India opposes the politicization of
cultural issues and advocates for impartiality within UNESCO.
• World Health Organization (WHO): The COVID-19 pandemic highlighted India's call for reform in global health
governance, emphasizing transparency and accountability within the WHO.
UNITED NATIONS SECURITY COUNCIL (UNSC)
Composed of 15 member states, including five permanent members with veto power (China, France, Russia, the United
Kingdom, and the United States), the UNSC has the authority to make decisions that bind all UN member states.
ISSUES WITH UNSC
• The current structure, with permanent members wielding veto power, is seen as outdated and undemocratic.
• Regional Imbalance: Africa, for example, feels underrepresented on the Council.
• Concerns exist about the transparency and inclusivity of the UNSC's decision-making, dominated by the permanent
members.
• Responding to Crises is hampered by its slow and cumbersome processes
• Incomplete compliance with UNSC resolutions by member states weakens the Council's authority and undermines
its ability to maintain peace.
INDIA AND UNSC
• Lack of Permanent Seat
• Limited Influence
• Insufficient Voice
43
UNITED NATIONS HUMAN RIGHTS COUNCIL (UN HRC)
• The United Nations Human Rights Council (UNHRC) was established in 2006.
• The council plays a vital role in holding countries accountable for their human rights records and advocating for
those who have had their rights violated.
• Composed of 47 elected member states.
• UN Human Rights Council and India: India was elected to the Council for three years.
CRITICISMS OF UNHRC
• The focus on Israel and declining country-specific resolutions raise concerns about political targeting, particularly
of developing nations.
• Unequal Representation
• Limited Accessibility
• Non-binding recommendations from the Universal Periodic Review (UPR) and bloc voting weaken the Council's
ability to hold violators accountable and address specific human rights issues.
INDIA AND UNHRC
INDIA'S DEVELOPMENT MODEL PRAISED AT THE UN HUMAN RIGHTS COUNCIL
• Uplifting Dalits
• Promoting Human Rights
• Advancing Gender Equality
• India emphasizes its adherence to Mahatma Gandhi's core principles, which align with the UN Charter and Universal
Declaration of Human Rights.
INDIA RE-ELECTED TO UN HUMAN RIGHTS COUNCIL FOR 2022-24 TERM
Significance of the membership:
• Global Recognition
• This re-election acknowledges India's dedication to human rights protection.
• It offers India a platform to address past concerns raised by the UNHRC regarding human rights in Jammu and
Kashmir.
• Soft Power Boost
35 UNESCO
CURRENT CONTEXT
The United States (US) has formally rejoined the United Nations Educational, Scientific and Cultural Organization
(UNESCO) after a five-year absence.(withdrawn in 2018 & rejoined in 2023)
ABOUT UNESCO
• Founded in 1945, UNESCO is a specialized UN agency promoting international cooperation in education, science,
and culture to foster peace and security.
ISSUES WITH UNESCO
• Financial Strain: The US withdrawal led to a significant funding gap, hindering program execution.
• The recent decline in funding for education, a core area, raises concerns about UNESCO's priorities.
• Member states have varying foreign policy goals, impacting the organization's direction.
• China's growing presence raises concerns about potential influence on UNESCO's agenda.
• The destruction of the Bamiyan Buddhas highlights the need for stronger site protection measures.
• The current nomination process for World Heritage Sites lacks transparency and clear criteria.
THE ROAD AHEAD
Strengthening UNESCO requires a multi-pronged approach:
44
• Increased Funding: Developed nations must contribute more to ensure financial stability.
• Robust Governance to enhance accountability and efficiency in decision-making.
• Stronger partnerships with other UN agencies, international organizations, and civil society can leverage combined
expertise and resources.
• Transparent Selection Process for selecting World Heritage Sites.
36 INTERNATIONAL LABOUR ORGANIZATION
INTRODUCTION
The International Labour Organization (ILO) is an agency within the United Nations system, established in 1919 after
the Treaty of Versailles and has 187 member states. The ILO's core mission is to promote "decent work for all."
ISSUES WITH ILO
• Limited Enforcement Power primarily relies on moral persuasion and public pressure.
• Focus on the Formal Sector and not adequately address the challenges faced by informal workers.
• The rapidly evolving nature of work, with increasing automation and the gig economy, might necessitate the ILO to
adapt its approach to remain relevant.
• Some criticize the ILO's structure for not giving enough weight to the voices of workers and employers compared to
governments.
WAY FORWARD
• Strengthening Enforcement
• Addressing Informal Work
• Adapting to Changing Work presented by the evolving nature of work, including automation and the gig economy.
• Enhancing Representation to increase the participation and influence of worker and employer organization.
• Focusing on Development
• Strengthen partnerships with governments, NGOs, and other international organisations to achieve its goals more
effectively.
INDIA AND ILO
India was a founding member of the ILO in 1919, recognizing the importance of fair labor practices on the global stage.
India plays a prominent role within the ILO, holding a permanent seat on its Governing Body since 1922.
8 CORE ILO CONVENTIONS
India has ratified six out of the eight core/fundamental ILO Conventions: These are-
1. Forced Labour Convention, 1930 (No. 29)
2. Abolition of Forced Labour Convention, 1957 (No. 105)
3. Equal Remuneration Convention, 1951 (No. 100)
4. Discrimination (Employment and Occupation) Convention, 1958 (No. 111)
5. Minimum Age Convention, 1973 (No. 138)
6. Worst Forms of Child Labour Convention, 1999 (No. 182)
India has not ratified two of the eight core/fundamental ILO Conventions: These are:
1. Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87)
2. Right to Organise and Collective Bargaining Convention, 1949 (No. 98)
THE DECENT WORK COUNTRY PROGRAMME FOR INDIA (2023-2027)
The International Labour Organization (ILO) launched the DWCP to support India's goals for its workforce:
• Promote the creation of a sufficient number of high-quality jobs with opportunities for growth.
• Empower citizens with long-term, reliable sources of income.
45
• Strengthen social safety nets, particularly for informal sector workers.

• Foster an environment that encourages greater female participation in the workforce.
• Build a robust skills training system to equip workers for the evolving job market.
• Nurture a culture that fosters innovation and entrepreneurship.
37 INTERNATIONAL CRIMINAL COURT (ICC)
INTRODUCTION
• It was established in 2002 by the Rome Statute
• Currently, 123 countries are members of the ICC. Some major powers, including India, China, and the US, are not
parties to the Rome Statute.
• It is not a UN body but still has a cooperation agreement with it.
ROLE AND FUNCTIONS
• Accountability for Crimes
• It works to prevent perpetrators of genocide, war crimes, and crimes against humanity from escaping justice.
• The Court acknowledges the role of the UN Security Council in referring situations to the ICC.
• It focuses on prosecuting the gravest international crimes, including genocide, war crimes, and crimes against
humanity, with the addition of the crime of aggression.
LIMITATIONS OF ICC
• Legitimacy Concerns
• UN Security Council Influence.
• The ICC has been criticized for being biased against developing nations.
• Procedural Delays
• The ICC lacks its own enforcement arm, relying on member states to arrest and imprison convicted individuals.
• The issuance of arrest warrants against prominent figures, like the one for President Putin, can escalate international
tensions and hinder diplomatic efforts.
• The ICC can only prosecute individuals, not organizations or states.
WAY FORWARD TO ADDRESS THESE CONCERNS
• Universal Membership and Cooperation.
• The ICC should strive to balance justice with the pursuit of peace.
• The ICC needs to demonstrate impartiality in its investigations and prosecutions.
• Efforts to streamline legal procedures without compromising due process can expedite cases and improve
effectiveness.
• Expanding Jurisdiction to hold organizations and states accountable, potentially through cooperation with other
international bodies.
INDIA AND ICC
India has chosen not to join the International Criminal Court (ICC).
• Concerns about Impartiality
• Impact on Sovereignty
• Gathering evidence for international crimes can be complex.
• Limited Scope of Crimes
• India questions the ICC's commitment to universal justice, citing concerns about the selection of cases.
• India is wary of the broad investigative powers granted to the ICC prosecutor, fearing potential political motivations.
46
DIFFERENCE BETWEEN ICC AND ICJ
Aspect International Criminal Court (ICC) International Court of Justice (ICJ)
Establishment 2002 1945

Governing
Rome Statute UN Charter
Treaty
Jurisdiction Individuals for international crimes States in disputes
Crimes Genocide, war crimes, crimes against
Legal disputes, advisory opinions
Addressed humanity, aggression
Membership States parties to the Rome Statute UN member states
Location The Hague, Netherlands The Hague, Netherlands
Judges 18 judges elected for 9-year terms 15 judges elected for 9-year terms
Office of the Prosecutor, independent from
Prosecution No prosecution, only adjudication
UN
Relies on state compliance, UN Security
Enforcement Relies on state cooperation
Council can enforce
Prosecuting war criminals like those in Border disputes, maritime boundaries,
Example Cases
Darfur and Uganda diplomatic relations
38 INDIAN DIASPORA
INTRODUCTION
• The Indian diaspora refers to a vast network of people with Indian heritage who now live around the world.
• The Indian diaspora population (MoEA) is about 32 million (most significant in the world).
• Annual remittances to India (World Bank) is Over USD 100 billion.
• Top destinations of the Indian diaspora: USA, West Asia
• This community encompasses:
o Non-Resident Indians (NRIs): Indian citizens residing outside India.
o Overseas Citizens of India (OCI): Individuals with Indian ancestry who are not Indian citizens but hold an OCI
card (previously PIO cardholders were merged into this category in 2015).
SIGNIFICANCE OF INDIAN DIASPORA -
• Economic Powerhouse: India is the world's largest recipient of remittances, with a significant portion coming from
the Middle East.
• Individuals of Indian origin hold prominent political positions globally, including in the US, UK, and Pacific island
nations like Fiji.
• The entrepreneurial spirit of the diaspora is evident in Silicon Valley.
• Diaspora communities play a vital role in backchannel diplomacy or Track II diplomacy. For instance, Indian
Americans lobbied for the successful Indo-US Civil Nuclear Deal.
• Cultural Ambassadors
• Philanthropy in supporting education, healthcare, and social development initiatives.
• Knowledge Transfer For example, Indian-American scientists play a key role in India's space research.
ISSUES OF INDIAN DIASPORA
• Reverse migration due to various factors has led to a decline in remittances, impacting families back home.
• Limited Political Participation
47
• Brain Drain
• Rising anti-globalization sentiments have fueled hate crimes against Indian communities in some countries.
• Exploitative Labour Practices (e.g., Kafala and Nitaqat in West Asia)
• Children born and raised overseas may struggle to connect with their Indian heritage, creating a cultural identity
crisis.
• Diaspora Disunity due to diverse needs and priorities.
GOVERNMENT STEPS
• Bilateral Social Security Agreements (SSAs) safeguard the interests of Indian professionals working overseas,
enhancing competitiveness for Indian companies.
• Initiatives are underway to simplify administrative procedures for the diaspora, such as streamlining passport and
visa services, OCI card applications, and other consular services.
• Merging the Ministry of Overseas Indian Affairs with the Ministry of External Affairs (2016).
• Dedicated Assistance from The Ministry of External Affairs.
• Pandemic Relief
• Preserving Heritage
ENGAGING THE DIASPORA: RECENT INITIATIVES
• Madad Portal handles consular issues like compensation claims, legal cases, repatriation assistance, and more.
• Vaibhav Summit to connect overseas and resident Indian scientists and academics.
• Diaspora Outreach Events like Pravasi Bharatiya Divas to strengthen ties with the diaspora.
• Rescue & Repatriation Missions like Rahat and Vande Bharat to ensure safe return of Indians in crises abroad.
39 INDIA AND GEOPOLITICS OF TECHNOLOGY
• India is a nation with a booming population, growing economy, and ambitious tech goals. Hence, it finds itself at the
center of the complex game of geopolitics of technology.
• The country strives for self-reliance in critical technologies to lessen dependence on other nations. At the same time,
it navigates partnerships for advancements while competing with global powers.
• Data security and ethical considerations are also crucial aspects as India shapes its technological future.
INDIA'S RISE IN THE GEOPOLITICS OF INFORMATION TECHNOLOGY
Geopolitics of Information and Technology refers to the intersection of technology, information, and global power
dynamics. It involves the strategic use of technology, control over information flows, and competition for influence and
dominance in the digital realm. India is emerging as a major player in this geopolitics at global level.
• A Tech Powerhouse: India is a major player in the IT sector, holding a significant share in the global IT services and
e-commerce market (around $227 billion in 2022). This dominance offers immense potential for further growth.
• Semiconductor Focus: The Indian semiconductor market is poised for significant expansion, aiming to reach $300
billion by 2026. Attracting foreign investment and fostering chip design capabilities are key strategies in this critical
technology area.
• Supercomputing Ambitions: While India currently ranks 13th in supercomputing with a limited number of
indigenous machines, the National Supercomputing Mission aims to increase domestic production.
• Boosting Manufacturing: The Production Linked Incentive Scheme aims to stimulate domestic manufacturing of
IT products like mobile phones and computer hardware. However, initial results suggest challenges remain, as
locally produced PCs haven't yet captured a significant market share.
OBSTACLES FOR INDIA IN TECHNOLOGICAL GEOPOLITICS
• Digital Divide: The vast gap in internet access and technology ownership between urban and rural areas creates a
significant barrier to inclusion. (E.g., Limited connectivity in villages like Sundarbans, West Bengal)
• Data Concerns: Privacy breaches (e.g., Cambridge Analytica scandal) and cybersecurity threats (e.g., attacks on
State Bank of India) raise concerns about data security and user trust.
48
• Misinformation Epidemic: The rampant spread of fake news on social media (e.g., false COVID-19 information)
creates confusion and disrupts social harmony.
• Digital Literacy Deficit: Lack of skills in using technology for online services and transactions hinders wider
participation in the digital economy.
• E-commerce Challenges: Ensuring fair competition and consumer protection in the e-commerce sector remains a
work in progress (e.g., Flipkart-Amazon case).
• Ethical Dilemmas: Emerging technologies like facial recognition (e.g., Clearview AI case) raise ethical concerns
about bias, discrimination, and privacy.
• Infrastructure Issues: Deficient internet infrastructure, particularly in remote areas (e.g., Northeastern states),
restricts digital access for a significant portion of the population.
WAY FORWARD
• Bridging the Gap: Invest in infrastructure development to ensure nationwide internet access and bridge the digital
divide.
• Tech Access in Diplomacy: Make access to technology a central aspect of India's diplomatic relations, especially
considering its large and growing technological needs.
• Boost Tech Diplomacy: Expand on the new, emerging, and strategic technologies (NEST) division by appointing
dedicated technology ambassadors to strengthen India's international tech influence.
• Strengthen Data Governance: Enact the Digital Personal Data Protection Law (DPDPL) to regulate data privacy,
movement, and use.
• Building a Fair Ecosystem: Develop regulations that promote healthy competition and protect consumer rights in
the e-commerce sector.
40 INDIA'S SOFT POWER
INTRODUCTION
• India currently holds the 28th position in the 2023 Global Soft Power Index.
• PM MODI HAS NOTED 5 IMPORTANT PILLARS OF INDIA’S SOFT POWER : Samman (dignity),Samvaad
(dialogue),Samriddhi (shared prosperity),Suruksha (regional and global security) & Sanskriti evam Sabhayata
(Cultural and civilizational links).
INDIA'S SOFT POWER INSTRUMENTS
• Indian Diaspora
• Regular exchange visits by Indian parliamentarians foster positive relationships with foreign counterparts.
• Multilateral Engagement
• India's vibrant tourism industry, bolstered by initiatives like Buddhist circuit tours, allows foreigners to experience
the country's rich history and cultural tapestry firsthand.
• Government initiatives promoting India's magnificent historical sites, museums, and art forms further enhance the
country's cultural prestige.
• The global popularity of Ayurveda, Yoga, and traditional Indian medicine showcases India's holistic approach to
health and well-being.
• The phenomenal rise of Bollywood as a global entertainment phenomenon projects Indian culture, music, and dance
to international audiences.
CHALLENGES IN INDIA’S SOFT POWER
• Coordination Gap
• Religious Tourism Lag
• India's soft power efforts are often hampered by a lack of dedicated funding.
• The unclear mandate of the Indian Council for Cultural Relations (ICCR), the primary body for cultural diplomacy,
hinders its effectiveness.
49
• Negative media portrayals of issues like pollution, child labor, and violence against women can deter potential
visitors and undermine India's soft power projection.
MEASURES TO OVERCOME CHALLENGES
• Using the concept of "Vasudhaiva Kutumbakam" (universal kinship)
• Engaging the Diaspora
• Developing a "Soft Power Matrix" with objective metrics to evaluate the effectiveness of initiatives.
• Learning from Leaders: For example, South Korea's global K-Pop phenomenon demonstrates the power of cultural
exports.
• Enhanced coordination between the Ministry of External Affairs (MEA) and other relevant bodies like tourism
ministries can create a more cohesive national soft power strategy.
• Global Tourism Focus.
• The GSAT-9 satellite, providing space-based services to South Asia, reflects India's growing space diplomacy.
Similarly, "Namaste diplomacy" and advancements in healthcare have positioned India as a reliable partner offering
medical expertise and low-cost solutions.
• Project Mausam: This initiative aims to strengthen ties and communication within the Indian Ocean region. By
enhancing cultural exchange, it fosters mutual understanding and appreciation of diverse values and traditions.
STRENGTHENING OUR APPROACH
• Boosting Religious Tourism to showcase India’s “Unity in Diversity”.
• Renewed focus on universities like Nalanda and Buddhist studies programs.
• PP Chaudhary-led Panel Recommendations to promote India's soft power.
41 ENERGY DIPLOMACY
Energy diplomacy has two key goals: Ensuring Energy Security & Leveraging Energy.
INDIA'S ENERGY DIPLOMACY IN ACTION
• International Solar Alliance and its "One Sun One World One Grid (OSOWOG)" initiative to connect regional grids,
enabling the transfer of clean energy across borders.
• Power Transmission: As part of the 2014 SAARC agreement, India exports electricity to neighbouring countries
like Bangladesh, Nepal, and Bhutan.
• Hydroelectric Power: India imports hydropower from Bhutan through plants like Tala, Chukha, Kurichu, and
Mangdechu. Additionally, India is involved in hydropower projects in Nepal, such as the Mahakali Treaty, the Upper
Karnali Project, and the Arun projects.
• Pipeline Connectivity: India is involved in pipeline projects like the Turkmenistan-Afghanistan-Pakistan-India
(TAPI) pipeline, which will transport natural gas from Turkmenistan to participating countries.
• Nuclear Energy Partnerships: Strategic partnerships, like the Indo-US Nuclear Deal and the India-Japan Civil
Nuclear Deal, allow India access to nuclear technologies for peaceful purposes.
CHALLENGES IN INDIA'S ENERGY DIPLOMACY
• The energy sector's high dependence on technology creates challenges. Without a strong international framework
for cybersecurity, the growing digitalization and interconnectedness of the energy sector can raise security and
privacy concerns.
• Coal Dominance vs. Renewables: Coal still accounts for nearly half of India's power generation, overshadowing
renewable sources like wind, solar, and biomass, which contribute only around 26%.
• Infrastructure Hurdles: Developing and maintaining cross-border pipelines and electricity transmission grids
presents significant challenges.
• Limited Import Sources: India relies heavily on the Persian Gulf region for over 60% of its oil and gas imports,
making it vulnerable to geopolitical disruptions.
50
• Pricing Challenges: Determining fair transmission charges for electricity traded across interconnected regional
networks can be complex.
WAY FORWARD FOR ENERGY SECURITY
• Collaboration on Grid Governance: Developing robust international cooperation and appropriate frameworks can
ensure effective management of cross-border electricity grids.
• Investment and Funding: India's commitment to invest US $2 billion in international solar finance by 2025
demonstrates a move towards cleaner energy sources.
• Diversifying Imports: India needs to strategically diversify its import sources to avoid dependence on specific
regions or countries.
• Leveraging Location: India's geographical proximity to energy-rich areas presents a strategic advantage that can
be utilized to secure resources.
42 DEFENCE DIPLOMACY
India's defence diplomacy focuses on building strategic partnerships and fostering cooperation among armed forces.
This collaborative approach aims to advance shared interests and achieve foreign policy goals.
• Cooperation and Collaboration: India has defence cooperation agreements with over 53 countries, promoting
joint military exercises (e.g., Malabar Exercise) and participation in international forums (e.g., RATS-SCO).
• Confidence Building for peaceful coexistence and promotes military transparency, fostering trust and shared
interests.
• Economic Benefits: The Defence Production and Export Promotion Policy 2020 promotes the export of aerospace
and defence goods and services, boosting India's defence industry.
• Boosting Capabilities: Defence cooperation allows Indian forces to gain exposure to advanced technologies,
doctrines, and combat experience of partner nations, leading to capacity building.
CHALLENGES IN DEFENCE DIPLOMACY
• Geopolitical Concerns: China's assertive actions in the region pose a significant challenge.
• Structural Limitations: A lack of dedicated defence wings in many embassies compared to major powers hinders
effective cooperation.
• Inconsistent Implementation: Defence cooperation currently operates on a country-by-country basis, lacking a
unified strategy.
• Coordination Issues: Disjointed communication between ministries involved in defence cooperation can hinder
efficient implementation.
• Resource Constraints: Limited defense spending (2% of GDP in 2022-23) can restrict capabilities and partnerships.
RECOMMENDATIONS FOR STRENGTHENING DEFENCE DIPLOMACY
• Policy Framework: Developing clear policy guidelines can ensure defence cooperation activities align with foreign
policy objectives.
• Integrated Planning: Expanding defence cooperation and establishing a strategic military presence globally can
safeguard national interests.
• Specialized Personnel: Dedicated and experienced officers specializing in defence cooperation can oversee its
various aspects.
• Regional Focus: Strengthening relations with neighboring countries can counter China's influence and promote
regional stability.
• Evaluation and Improvement: Regular audits of activities are crucial to assess cost-effectiveness and ensure focus
on key areas.
51
43 INDIA AND THE GLOBAL SOUTH
INTRODUCTION
• Recent Context: Recently, India hosted the Second Voice of the Global South Summit (VOGSS). The summit aimed
to maintain the positive momentum established towards a world order that is more inclusive, representative, and
progressive.
• PM Modi unveiled DAKSHIN, a centre dedicated to excellence within the Global South. He also emphasised the
importance of five key principles for the Global South: Consultation, Cooperation, Communication, Creativity, and
Capacity Building.
• India had previously hosted the inaugural VOGSS, which brought together 125 countries from the Global South
under the theme "Unity of Voice, Unity of Purpose."
THE GLOBAL SOUTH
• In 1980, Brandt line geographically divided the world into northern richer and southern poor nations.
• Based on this, the global south refers to countries in Asia, Africa, and Latin America that are less economically
developed than the industrialised nations of the Global North.
• India's Position: India advocates for the interests of developing countries on issues like trade, climate change, and
global governance.
SIGNIFICANCE OF GLOBAL SOUTH
• Climate Change Vulnerability.
• South-South Cooperation to share experiences and best practices in tackling poverty and inequality.
• The Global South is rich in natural resources, but sustainable management is essential to fuel development without
environmental harm.
• Financing is crucial for developing clean energy sources and transitioning away from fossil fuels, ensuring energy
security and justice.
INDIA'S STRATEGY TOWARDS THE GLOBAL SOUTH
• Championing Common Issues to address shared challenges like poverty, hunger, and access to healthcare.
• Building Strategic Alliances with other developing countries, particularly in Africa, to enhance its influence on the
global stage.
• Focus on South-South Cooperation through initiatives like sharing expertise, technology transfer, and capacity
building.
• Countering Neo-Colonialism
CHALLENGES
• Organizations like the Non-Aligned Movement haven't been successful in advocating for developing countries.
• India's own development challenges, like limited resources, can limit its ability to support others.
• Diversity and Disunity
• The financial dominance of Western nations limits India's ability to provide significant financial aid.
ENHANCING ENGAGEMENT
• Collaboration with like-minded countries on projects like the Asia-Africa Growth Corridor can benefit the Global
South.
• Frequent summits can foster collaboration and shared solutions.
• Cultural exchange programs and confidence-building measures can strengthen relationships.
• India can leverage its positions in forums like the G-20 to prioritise the needs and aspirations of developing nations.
52
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PRAHAAR

1 INDIA AND ITS NEIGHBORHOOD RELATIONS

HISTORICAL OVERVIEW OF INDIA’S NEIGHBORHOOD

India's concern includes Economic competition, Strategic competition,changing

• Defense Cooperation: Annual joint military exercise ‘Surya Kiran’.

8 INDIA- SRI LANKA

DIFFERENT ASPECTS OF INDO-US RELATIONS

SIGNIFICANCE OF SCS FOR INDIA:

AREAS OF COOPERATION BETWEEN INDIA AND EUROPE

15 INDIA – SOUTH-EAST ASIA

20TH ASEAN-INDIA SUMMIT

16 INDIA - WEST ASIA

ABOUT THE INDIA-MIDDLE EAST-EUROPE ECONOMIC CORRIDOR

INDIA -UAE RELATION

18 INDIA AND CENTRAL ASIA

8 Importance of Central Asia

19 INDIA- LATIN AMERICA

SIGNIFICANCE OF LATIN AMERICA FOR INDIA

20 INDIA AND AUSTRALIA

• The economic relationship is narrow and primarily dominated by coal exports.

• Cultural and Linguistic Diversity

22 SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)

SIGNIFICANCE OF BRICS FOR INDIA

24 BAY OF BENGAL INITIATIVE FOR MULTI-SECTORAL TECHNICAL AND

25 SHANGHAI COOPERATION ORGANIZATION (SCO)

SCO Summit 2022: Key Outcomes

26 INDIA AND QUAD

27 NORTH ATLANTIC TREATY ORGANIZATION (NATO)

• Potential for Conflict

28 INDIA AND G-20

30 WORLD BANK GROUP AND INDIA

Name of The Institution Mandate Is India A Member Or

MAIN FUNCTIONS OF THE WORLD BANK

31 WORLD TRADE ORGANIZATION AND INDIA

32 INTERNATIONAL MONETARY FUND AND INDIA

33 WORLD HEALTH ORGANISATION (WHO) AND INDIA

34 UNITED NATIONS (UN) ORGANISATION AND ASSOCIATED ISSUES

36 INTERNATIONAL LABOUR ORGANIZATION

• Strengthen social safety nets, particularly for informal sector workers.

37 INTERNATIONAL CRIMINAL COURT (ICC)

Aspect International Criminal Court (ICC) International Court of Justice (ICJ)

Establishment 2002 1945

Location The Hague, Netherlands The Hague, Netherlands

39 INDIA AND GEOPOLITICS OF TECHNOLOGY

40 INDIA'S SOFT POWER

43 INDIA AND THE GLOBAL SOUTH

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