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Development of Agaléga islands and India’s vision for its maritime neighbourhood

Context: Prime Minister of India and Mauritian Prime Minister jointly inaugurate several India-assisted development projects at the Agalega Island in Mauritius. They inaugurated an airstrip and the St James Jetty on North Agaléga Island in the Indian Ocean.

Agalega, consisting of two islands, is situated roughly 650 nautical miles (1,050 km) north of Mauritius, falling under the jurisdiction of the island nation.

Strategic significance to Mauritius:

Sustaining the well-being of the islanders posed challenges, requiring even basic necessities to be referred to Mauritius.
The Mauritian government recognized the imperative need to develop the islands and establish facilities capable of operating ships and aircraft.

Why did Mauritians choose India?

70% of Mauritius's population traces its origins to India, fostering profound historical, social, and cultural ties between the two nations.
This bilateral relations' defining element has been the enduring friendship and trust shared at various levels.
Given the sensitivities in Mauritius regarding sovereignty and security matters, each of its concerns was methodically addressed before the project was initiated.

How will the development of Agaléga help Mauritius?

For the inhabitants of the islands, the two-day sea journey, contingent on the availability of a ship, will be replaced by a brief flight lasting less than an hour.
Development of essential infrastructure not only promises to streamline transportation but also to generate employment opportunities.
Untapped tourism potential of the islands presents an opportunity for exploration.
A new jetty and airstrip represent a significant stride forward, enabling a more substantial and authoritative government presence on the islands.
This will facilitate the stationing or forward deployment of Mauritius Coast Guard ships and also augment the nation's maritime security capabilities.
It will lead to more effective monitoring and policing of the expansive Exclusive Economic Zone (EEZ), stretching 200 nautical miles outward from the islands, reinforcing the nation's ability to safeguard its maritime interests and resources.

What is in it for India?

The collaborative development of Agaléga will further strengthen the goodwill and trust between India and Mauritius.
The joint initiative to develop Agaléga stands as a tangible testament to India's unwavering commitment to the vision of Security and Growth for All in the Region (SAGAR).
It underscores India's proactive role in assisting smaller maritime nations in enhancing their capacity and capabilities.
It emphasizes India's utmost respect for the sovereignty of independent nations, reinforcing its aspiration to be recognized as the preferred partner for development and security in the Indian Ocean Region.

Will Agaléga be an Indian military base?

Agaléga will not serve as an Indian military base.
India has consistently adhered to principles that prioritize international law.
India emphatically rejects the notion of economic colonization or coercive tactics to ensnare smaller countries in debt traps.

India's Maritime diplomacy evolution:

India boasts a rich maritime geography, encompassing a 7,517-km-long coastline and hosting nine coastal states with bustling ports handling approximately 1,400 million tonnes of cargo annually.
A pivotal shift occurred in the 1990s with liberalization reforms, redirecting attention to port development and elevating the maritime domain on the national agenda.
This period saw the emergence of new opportunities in developing economic and industrial resources, with a specific focus on ensuring the security of Sea Lanes of Communication (SLOCs), maritime trade protection, and fortification of security infrastructure and assets within maritime zones.

Significance for India:

Economic Interdependence and energy security:

India's economic growth is intricately linked with maritime trade.
For instance, the country has cultivated a strategic partnership with Singapore, a global maritime hub.
The two nations have collaborated on initiatives like the India-Singapore Maritime Bilateral Agreement, facilitating smoother trade operations and creating a conducive environment for economic prosperity.
Today, the countries of the West Asian region collectively account for over a sixth of India's total bilateral merchandise trade and contribute about three fifths of India's crude oil supplies.
Stable relations with West Asia is also important for India for security of more than 6 million Indian Diaspora, a major source of forex remittance.

Security and defence Cooperation:

The Indian Ocean region is strategically vital, and India's relations with maritime countries such as Australia and Japan contribute to a balanced power dynamic.
Collaborating with maritime countries enhances India's maritime security through joint naval exercises, intelligence sharing to combat piracy and other maritime threats, contributing to regional peace and stability.

Humanitarian assistance and disaster relief:

Natural disasters frequently impact maritime nations.
India's collaborations with Indonesia and Thailand in disaster relief efforts showcase the importance of collective responses.
Joint coordinated efforts ensure swift and effective humanitarian assistance during crises.

Environmental conservation:

India's cooperation with countries like Australia in marine conservation initiatives highlights the shared commitment to preserving the oceans.
Collaborations in combating illegal fishing, marine pollution, and climate change contribute to a healthier marine ecosystem.

Challenges in India’s maritime diplomacy:

China factor:

Perhaps the most challenging yet promising aspect of India’s maritime engagement is presented by the Indo-Pacific itself which has been shaped significantly by the China factor and continues to be.
China’s inroads into the Indian Ocean began over a decade ago through active political engagements and long-term port investments.
Beginning with the ‘flag-following-trade’ policy, China’s security presence in the Indian Ocean and its activities in the wider Pacific have transformed into semi-military alliances, dual-use port facilities, Military Operations Other Than War (MOOTW) missions, and arms transfers to the region.

Low budgetary allocation over the years:

Indeed, New Delhi’s reorientation towards the necessities of reviving its maritime linkages has not been plain-sailing, given that successive efforts have been on continental matters.
Even as the indigenisation of warship construction began decades ago in the early 1970s and subsequent plans for augmenting force levels, insufficient naval budget coupled with capacity constraints in Indian shipyards have also impacted the navy’s force levels.
This fuels the opinion that New Delhi continues to suffer from a characteristic degree of ‘sea blindness’.

Limited focus:

New Delhi’s strategic vision should also comprise waters beyond the IOR in terms of operational reach.
The advent of minilateral platforms for issue-based collaboration in the Indo-Pacific offers a unique opportunity for India to join hands with like-minded countries.
India should also make efforts for collaboration with other non-conventional players with great potential, such as Canada, New Zealand, and Norway.

Historical disputes:

India's relations with Pakistan and Bangladesh, particularly regarding maritime boundaries in the Bay of Bengal, illustrate how historical disagreements can hinder cooperative efforts and contribute to a complex geopolitical landscape.

Environmental and climate change issues:

India's relations with small island nations like the Maldives and Seychelles involve addressing climate change-related concerns such as rising sea levels.
Collaborative efforts to mitigate environmental challenges are essential but can be complicated by competing priorities, such as Development v/s Ecological imbalance debate.

Competing infrastructural initiatives:

Competing infrastructural initiatives, especially those led by global powers, can create challenges for India.
The Belt and Road Initiative (BRI) led by China has implications for India's relations with countries along its maritime periphery.

Maritime resource management:

Disputes over maritime resources, such as fisheries and oil exploration, can strain relations.
India's interactions with neighbouring countries like Sri Lanka in managing fishing resources in shared waters illustrate the complexities of balancing economic interests while addressing resource management concerns.

What steps have been taken?

Maritime Diplomacy:

One notable example is the Indian Ocean Rim Association (IORA), where India plays a pivotal role in promoting regional cooperation.
Recently, the Quadrilateral Security Dialogue or Quad (2020) comprising India, Australia, Japan and the US, has garnered greater attention. It serves as a platform for collaborative efforts on security, economic issues, and shared democratic values.

India’s ‘Look West’ maritime diplomacy:

The most significant dimension of Indian Ocean diplomacy, however, has been the outreach to Arab Gulf states.
Oman has played a key role in sustaining India’s security efforts in the Gulf of Aden by offering berthing and replenishment facilities to Indian naval ships.

India’s maritime pivot to the East:

India has entered into an agreement with Indonesia to develop a strategic port at Sabang, which lies at the tip of the Sumatra Island and close to the Malacca Strait.
China may see it as a move to contain and choke the Sea Lanes of Communications.
Vietnam and Japan are currently engaged in territorial disputes with China in the South China and East China seas, respectively.
These countries are willing to partner with India to form diplomatic and security ties under the threat of Chinese maritime expansion.

India' mission based Indian Ocean Region

Naval exercises and security partnerships:

Activities such as escorting commercial ships through critical lanes like the Gulf of Aden and the Strait of Malacca, engaging in anti-piracy operations, and responding to distress calls are integral to the Navy's endeavours in ensuring unhindered maritime trade.
Malabar naval exercise, involving countries like the United States, Japan, and Australia, showcases India's commitment to enhancing maritime security in the Indo-Pacific region.
India has offered $100 million in credit, a Dornier maritime patrol aircraft, along with assistance for strengthening the Seychelles coast guard in the Assumption Islands.
In 2019, the then Chief of Naval Staff outlined the four pillars of India’s foreign engagements:
- capacity building (provision of military assets and military infrastructure development);
- capability enhancement (military training, technical and hydrographic assistance, exclusive economic zone [EEZ] surveillance);
- constructive engagements (military level talks, military exercises, ship visits);
- collaborative efforts (symposiums, constructs, conclaves).

Infrastructure development and connectivity:

Investing in maritime infrastructure and connectivity projects is a key strategy for India.
The development of the Chabahar Port in Iran is a prime example.
By facilitating trade and connectivity between India, Iran, and Afghanistan, this project establishes India as a key player in enhancing regional trade routes.

Humanitarian assistance and disaster relief:

The example of India's swift response to the 2004 Indian Ocean tsunami highlights its commitment to regional cooperation.
New Delhi’s maritime engagement with its neighbourhood has also been bolstered through the country’s Ministry of Earth Sciences which has been developing the capacities of partner countries in operational oceanography, forecasting extreme weather events, and helping in climate change proofing of their vital infrastructure.

Cultural and educational exchanges:

India's partnerships with Southeast Asian nations through initiatives like the ‘Study in India’ program promote educational collaborations, creating a foundation for stronger diplomatic relations.

Blue economy initiatives:

The SAGAR (Security and Growth for All in the Region) initiative emphasizes promoting economic growth, environmental sustainability, and regional cooperation.
Extending assistance to smaller littoral nations in managing their exclusive economic zones and responding to natural disasters.
The Maritime Vision 2030 serves as the latest iteration of the government's comprehensive maritime development roadmap.
This visionary document outlines a 10-year blueprint comprising over 150 initiatives across ports, shipping, and waterways, aimed at enhancing policy efficiency and fostering growth.

Way forward:

India could expand maritime exercises to include Southeast Asian partners and Western African nations to develop deeper understanding for joint operations especially against the common nontraditional threats.
With the rise in acts of terrorism in Bangladesh, Sri Lanka, Maldives, Myanmar and Indonesia, it will be prudent for India to take the lead to establish joint training and operation centres+ for IOR nations to assist the regional partners to deal with the threat effectively.

Whether continental challenges outweigh maritime ones continues to be a matter of debate, there is no doubt that the maritime space is set to witness an expansion in the country’s role in diverse forms.

India’s former Secretary, Rajiv Sikri observed that: “If India aspires to be a great power, then the only direction in which India’s strategic influence can spread is across the seas. In every other direction there are formidable constraints.”

‘Emigration Check Required’ (ECR Countries)

Context: Recent incident of Indian workers having been recruited by Russian Army for participation in the Russia- Ukraine war has raised concerns regarding the vulnerable situation and exploitation of Indian emigrants as workers in foreign nations.

This has in turn given rise to demand for the government to review its procedures of emigration to countries in conflict, updating the list of 18 “Emigration Check Required” countries, so that the contracts of Indians travelling abroad for such work are verified more thoroughly and they are advised better along with providing adequate protection.

About Emigration Check Required Countries

Formulated under the Emigration Act, 1983.
Emigration Act 1983 has provided two bodies:
- Protector General of Emigrants - Responsible for protecting the interests of Indian workers going abroad.
- Protector of Emigrants - Responsible for granting emigration clearance to the intending emigrants

ECR nations are those countries that do not have strict laws regulating the entry and employment of foreign nationals. They also do not provide avenues for grievance redressal.
All persons having ECR endorsed Passports and going to any of the 18 ECR countries for taking up employment require emigration clearance from the Protector of Emigrants.
But ECR passport holders going to any ECR country for purposes other than employment do not require emigration clearance.
Currently, there are 18 ECR countries:

About Protector General of Emigrants:

Statutory body under Ministry of External Affairs constituted under the Emigration Act, 1983.
Responsible for protecting the interest of Indian workers going abroad.

Powers of Protector General of Emigrants are:

Power to grant the Registration Certificate (RC) to recruitment agency under Section 11 and 12 of the Emigration Act, 1983 and renew the same under Section 13 of the Act.
Power to suspend, cancel and revoke the RC under Section 14 of the Act.
Power to issue permit to the foreign employer (FE) and Project Exporter (PE) under Chapter IV of the Act.
Power to sanction prosecution for offences and penalties under Section 24 and 25 of the Act.
Power to search, seize and detain persons/conveyance, etc. conferred to an officer of customs under the Customs Act, 1962.
Power to prescribe any return, record or register for the Recruitment agency and inspect the same as well at their office under Section 36 of the Act.
Power of civil court under Section 37 of the Act.

Protectors of Emigrants:

Statutory body responsible for granting emigration clearance to the intending emigrants as per the procedure prescribed under the Emigration Act, 1983.
The Protectors of Emigrants shall perform the functions assigned to them by this Act under the general superintendence and control of the Protector General of Emigrants.

Powers of Protector of Emigrants are:

To protect and aid with his advice all intending emigrants and emigrants.
Oversee all the provisions of this Act and of the rules made there under to be compiled with.
Inspect, to an extent and in a manner as may be prescribed-any emigrant conveyance, or any other conveyance if he has reason to believe that any intending emigrant or emigrants are proceeding from, or returning to, India, to or from a place outside India by such other conveyance.
Inquire into the treatment received by emigrants during their voyage or journey to, and during the period of their residence in the country to which they emigrated and also during the return voyage or journey to India and report thereon to the Protector General of Emigrants or such other authority as may be prescribed.
Aid and advise emigrants who have returned to India.

List of Persons exempted from ECR provisions:

Holders of Diplomatic/Official Passports.
Gazetted Government Servants. (1)
Income-tax payers (including Agricultural Income Tax payees) in their individual capacity. (2)
All professional degree holders, such as Doctors holding MBBS degrees or Degrees in Ayurved or Homoeopathy; Accredited Journalists; Engineers; Chartered Accountants; Lecturers; Teachers; Scientists; Advocates etc. (3)
Spouses and dependent children of the category of persons listed from (1) to (3).
Persons holding class 10 or higher qualification.
Persons holding permanent immigration Visas, such as the visas of UK, USA and Australia.
Persons possessing two years diploma from any institute recognized by the National Council for Vocational Training (NCVT) or State Council of Vocational Training (SCVT) or persons holding three years diploma/equivalent degree from institutions like Polytechnics recognized by Central/State Governments.
Nurses possessing qualification recognized under the Indian Nursing Council Act, 1947.
All persons above the age of 50 years.
All persons who have been staying abroad for more than three years (the period of three years could be either in one stretch or broken) and their spouses.
Children below 18 years of age.

Maldives: Debt and dependence

Context: The International Monetary Fund, in Article IV consultation reports following the Covid pandemic year 2020, underlined vulnerability of Maldives to external and overall debt distress.

Evolution of the debt situation:

Growing distance between Maldives and India:
- India was asked to withdraw its uniformed personnel stationed in Maldives, which has caused strains in the bilateral relations, although India’s presence on the economic and regional security fronts has been larger.
- Formation of Anti-India Platform: President Mohamed Muizzu’s policy is more tilted towards Chinese support to increase trade, capital flows, tourism and overall economic stability.
Concerns:
- Following the Covid Pandemic, India raised bilateral disbursements of long-term credit and grants to Maldives, including, swap arrangements with the Reserve Bank of India ($400 million in 2020), which was paid back in two tranches.
- However, India’s share in Maldivian debt has been less than 10% since 2018.
- The rising presence of China in Maldives’ economy, which is located in the Indian Ocean region, is a concern for both India and the United States.
Rise in Debt:
- Increased gradually from $942 million in 2012 to $1,465.7 million in 2017
- Stock of external debt increased to $2,322.9 million in 2018; to $4,163.4 million in 2021 and to $4,033.8 million in 2022.
- The shift to the higher debt strategy for development was due to the increased financial flows from China.
The Government of Maldives, followed the examples of other small developed countries.
- Issuing sovereign bonds by exploiting the interest of yield-seeking global investors with access to cheap liquidity.
- Stock of Maldivian external debt held by bondholders rose from $250 million in 2017 to $350 million in 2020; reached $850 million 2021 and $600 million in 2022.
China’s share in Maldivian external debt:
- Increased from 7.5 per cent in 2012 to 14.9 per cent in 2015; 26.9 per cent in 2016; 39.9 per cent in 2018 and 43.5 per cent in. However, emergence of bondholder debt and increase in flows from India, brought China’s share down to 32.1 per cent in 2022.
- India’s share was 15.4 per cent in 2016 which fell to 3.8 per cent in 2021; increased to 8.1 per cent in 2022.
  - In 2020 (pandemic year), due to the swap agreement, the share of India reached 12.4 percent.
- During pandemic years, lending from the multilateral banks and institutions decreased continuously and reached 10.9 per cent in 2022.
- This had in turn created a window for China to emerge as the principal official creditor to the Maldives.
  - China’s share in official (bilateral and multilateral) credit standing reached 58.9 per cent in 2019 and 48 per cent in 2022.
- Maldives has also increased debt service to exports:
  - From 4.8 per cent in 2017 to 12.2 percent 2018-2019.
  - During the covid year, when revenue from tourism decreased, debt service reached 17.5 per cent in 2020 and 20.1 per cent in 2021.
- Ratio of reserves to external debt decreased to around 20 per cent in 2021-2022.
- Thus, the IMF identified Maldives being on the verge of debt distress.

Assessment by the IMF:

Chinese dominance, in the overall external debt exposure of Maldives and in overall official and bilateral debt exposure.
Small size of Maldives’ debt to China in relation to reserves of Maldives and its overall external lending, China’s can restructure or waive a significant volume of debt. This will increase its influence over the island nation.
Comprehensive Cooperative Strategic Partnership between China and the Maldives provided for grant assistance to Maldives.
Why is the IMF's assessment misleading?
- Assessing a country’s vulnerability to debt distress by taking account of the volume of aggregate public debt or external and domestic debt combined relative to the nation’s GDP.
- This mixes the external debt that needs to be serviced with foreign currency with domestic debt that must be serviced in local currency which the government controls.
- It also ignores the collapse of economic activity due to the Covid-19 pandemic, which led to fall in GDP and government revenues.
- This in turn, increased the ratio of public debt and debt service to other normalising variables. Although, pandemic related expenditures were not increased much.
- This also happened in the Case of Maldives: Ratio of external debt to GDP increased to 108 per cent in 2020.

Conclusion:

Maldives is facing debt stress that is difficult to resolve by the domestic government.
The international community should come forward without leaving a window for one or more countries, offering assistance to increase presence or influence on the debt-ridden nation.
Maldives is vulnerable to global warming and climate change effects, requiring it to spend significantly on adaptation and addressing loss and damage.
Countries that are responsible for the higher levels of carbon emissions must step forward and provide the funding needed to build the required resilience.

Russia Captures AVDIIVKA

Context: Russia has registered a big victory, capturing the town of Avdiivka.

AVDIIVKA

It is a city in Donetsk Oblast, Ukraine.
The city is located in the centre of the oblast, just north of the regional centre, Donetsk.
The battle of Avdiivka was a major battle between the Russian Armed Forces and Russian-controlled Donbas militias on one side and the Ukrainian Armed Forces on the other.
It is described as a "gateway" to the nearby provincial capital of Donetsk.

Cabinet Committee on Security approves mega Navy deal for Brahmos Missiles

Context: Cabinet Committee on Security has approved the acquisition of over 200 BrahMos extended range supersonic cruise missiles for deployment on warships of Indian Navy. The deal is expected to cost Rs 19,000 crore for the exchequer.

About Brahmos Supersonic Cruise Missiles

Brahmos is a medium range ramjet supersonic cruise missile.
Brahmos is a two stage missile:
- First stage: Powered by solid propellant booster engine as its first stage with brings it to supersonic speed.
- Second stage: Powered by Liquid ramjet engine that takes the missile closer to 3 Mach speed in cruise phase.
Flight range: Brahmos has a flight range of up to 290 km with supersonic speed all through the flight, leading to shorter flight time, consequently ensuring lower dispersion of targets, quicker engagement time and non-interception by any known weapon system in the world.
Altitude: Cruising altitude of Brahmos is up to 15 km and terminal altitude is as low as 10 metres.
Warhead capacity: It can carry a conventional warhead weighing 200-300 kgs.
Launch capability: Brahmos has capability to be launched from land, sea, air and submarines. Brahmos has identical configuration for all the platforms and uses a Transport Launch Canister for transportation, storage and launch.
Fire and forget principle: Brahmos operates on the principle of Fire and Forget which means that the missile system adopts varieties of flights on its way to the target.
Range of Brahmos was kept at 290 km as India was earlier not a signatory of the Missile Technology Control Regime (MTCR). MTCR prohibits member countries to transfer technologies for missiles with range up to 300 km. Since, Russia is a party to the MTCR it did complied with the regulations of MTCR.

Ship based Brahmos: This version has been designed for launch in either vertical or inclined mode from a moving or static maritime platform against sea or land targets. It has been deployed on Indian Navy's frontline surface combat platforms as the prime strike weapon. This version also has 'salvo' launch capability, where multiple missiles can be fired in different trajectories to hit a single or group of targets. It is primarily used as Anti-Ship Missile.

Air-launched Brahmos: Brahmos Air Launched Cruise Missile (ACLM) with precision attack capability against sea and land targets is the designed as the heaviest and most powerful weapon to arm Indian Air Force's Su-30 strike fighter.

Submarine launched Brahmos: Brahmos missile is capable of bring launched from submarine from a depth of 40-50 metres. The missile is launched in the same configuration similar to the ship launched system.

Brahmos-NG & Brahmos-II (Future versions of Brahmos)

Brahmos-NG: Brahmos NG stands for Brahmos Next Generation. It is envisioned as a smaller and lighter but smarter weapon having high versatility, lethality and flexibility along with ultra-precision for deployment onboard a wide range of military platforms. Key features:
1. Reduced dimension & weight for widespread range
2. Advanced next generation stealth
3. Greater effectiveness against ECCM
4. Higher versatility in underwater combat applications
5. Launch readiness from Torpedo tube and vertical orientation
Brahmos II: It is a planned hypersonic cruise missile currently under joint development by Brahmos Aerospace. It is expected to have a range of 1,500 km and a speed of Mach 8. Since, India is now a signatory of the MTCR, Russia can transfer technologies for longer ranges.

About Brahmos Aerospace

Brahmos Missile is manufactured by Brahmos Aerospace which is a joint venture of DRDO (India) and NPO Mashinostroyenia (Russia). The company was established in India through an Inter-Governmental Agreement between India and Russia in 1998.
India has 50.5% ownership while Russia has 49.5% ownership in Brahmos Aerospace.
The name 'Brahmos' is combination of Brahmaputra (India) and Moskva (Russia) rivers.
Brahmos Aerospace is responsible for designing, developing, producing and marketing the Brahmos Supersonic cruise missiles with active participation of a consortium of Indian and Russian industries.
Indigenization of Brahmos: In 1998, indigenous contribution in the Brahmos system was around 30% only. However, now about 75% indigenous capacity has been achieved in the Brahmos missile project.
Exports: Brahmos missiles will be exported to the Philippines, which will its first global customer. Many countries from the Southeast Asian region have also shown interest in buying the system. Brahmos Aerospace aims to export $5 billion worth of missiles by 2025. Exports of Brahmos missiles to other countries would also allow sale and exports of other systems such as Akash, ATAGS Howitzers and other equipment from the Indian defence industry.

Schengen Visa for Kosovo

Context: Recently, Kosovo secured visa-free access to the Schengen zone in Europe, world’s largest zone of free movement, becoming the last western Balkan non-European Union nation to waive visa requirements.

The zone is known after Schengen, the tiny Luxembourg village bordering France and Germany, where the agreement was signed in 1985.

Croatia, a European Union (EU) member since 2013, joined Schengen in 2023, while Romania and Bulgaria, EU members since 2007, will gain partial Schengen entry in March.

Obstacle that Kosovo faced?

The single biggest obstacle to the country’s Schengen visa waiver was strong opposition from several EU members, which do not recognise the 2008 unilateral declaration of independence by the breakaway state from Serbia.
Kosovo has not been accorded legal statehood by the UN and denied recognition by Russia and China.

Does Schengen have only the members of the EU under it?

The Schengen area comprises 27 countries, including four non-EU members: Iceland, Liechtenstein, Switzerland and Norway.
Also there is no requirement for the EU members to mandatorily become a member of Schengen.

About European Union (EU)

European Union (EU) is a supranational political and economic union of 27 member states that are located primarily in Europe.
EU was established, along with its citizenship when the Maastricht Treaty came into force in 1993

Maastricht Treaty

Treaty on European Union is signed in Maastricht in the Netherlands. It is a major milestone, setting clear rules for the future single currency as well as for foreign and security policy and closer cooperation in justice and home affairs.
‘European Union was officially created by the treaty, which entered into force on 1 November 1993.

Decision making setup in European Union

There are 4 main decision-making institutions which lead the EU’s administration. These institutions collectively provide the EU with policy direction and play different roles in the law-making process:

the European Parliament (Brussels/Strasbourg/Luxembourg)
the European Council (Brussels)
the Council of the European Union (Brussels/Luxembourg)
the European Commission (Brussels/Luxembourg/Representations across the EU)

EU - BUDGET

The EU budget is financed from the following sources

a proportion of each country’s gross national income (GNI) in line with how wealthy they are
customs duties on imports from outside the EU
a small part of the value added tax collected by each EU country
starting in 2021, a contribution based on the amount of non-recycled plastic packaging waste in each country
other revenue, including contributions from non-EU countries to certain programmes, interest on late payments and fines, as well as any surplus from the previous year

Spending

The EU budget is mainly dedicated to investment. For this reason, the EU adopts long-term spending plans, known as multiannual financial frameworks (MFFs), that run for a period of 5-7 years.
The EU budget finances activities that range from developing rural areas and conserving the environment to protecting external borders and promoting human rights
The budget helps EU economies to recover from the COVID-19 crisis. The Commission, the Council and the Parliament all have a say in determining the size of the budget and how it is allocated

How big is the EU economy?

The European Union operates as a single market made up of 27 countries.

Trade

The EU27 accounts for around 14% of the world’s trade in goods.

What is enlargement?

Enlargement happens when new countries join the European Union. This has taken place several times in the EU’s history, each time transforming both the EU and the countries that join.

Which countries can join?

Any European country can join the EU if it fulfils the membership criteria, also known as the Copenhagen criteria.

For the countries that are wishing to join must have

stable institutions that can guarantee democracy, the rule of law, human rights and the protection of minorities.
a functioning market economy and the ability to cope with the competitive pressure of the EU market.
the ability to take on the obligations of EU membership, including the capacity to implement all EU law and adhere to the aims of the Union.

Admission of New Members to EU

Step 1: Candidacy

A country wishing to join the EU must submit a membership application to the Council of the EU
The Council then asks the European Commission to check the applicant country’s ability to fulfil the membership criteria.
Based on the Commission's recommendations, the Council decides whether to grant the country candidate status and to begin formal negotiations for its accession to the Union.
All EU Member States must agree on this decision.

Step 2: Membership negotiations

During membership negotiations, the candidate country prepares to implement EU laws and standards, also known as the acquis.
The Commission monitors the candidate's progress on these reforms and keeps the Council and European Parliament informed of this through regular reports and communications.

Step 3: Accession

Once the negotiations are complete, the Commission gives its opinion on whether the candidate is ready to become a Member State. If the Commission recommends that the candidate is ready, an accession treaty is prepared.
The European Commission, the European Council and the European Parliament before being signed and ratified by all EU Member States and the candidate country.

India resists against Data Exclusivity Clause in trade negotiations with EFTA countries

Context: India has rejected demand for data exclusivity in drug development in FTA talks with European Free Trade Association.

What is data exclusivity?

Data exclusivity is an embargo clause that puts a minimum of six-year embargo on clinical trial data generated during the testing and development of a drug.
Data exclusivity also applies to drugs not patented in India.
Need for Data Exclusivity: This ensures adequate Intellectual Property Rights protection for the original drug manufacturers and incentivising innovation and R&D.
Concerns of India and other developing countries against Data Exclusivity: However, such IPR restrictions like Data Exclusivity hampers the development of cheap generic drugs in the developing countries, particularly India and decreases the accessibility and affordability of latest drugs, hampering healthcare outcomes.

About Europe Free Trade Association (EFTA)

It is an intergovernmental organisation set up in 1960 (through Stockholm Convention) for the promotion of free trade and economic integration between its members.
Members: Four European countries of Iceland, Liechtenstein, Norway and Switzerland. Note: All these countries are not members of EU’s Common Market.
EFTA does not envisage political integration but only an economic cooperation. It is not a customs union.
EFTA States are not obliged by EFTA Convention to conclude preferential trade agreements as a group. They maintain the full right to enter bilateral third-country arrangements.
EFTA Council is the highest governing body of EFTA, usually meets eight times a year at the ambassadorial level (heads of permanent delegations to EFTA) and twice a year at Ministerial level. Each Member State is represented, and decisions are taken by consensus.
The Chairmanship rotates every six months. For the EFTA Council, the chairmanship rotates between Iceland, Norway, Liechtenstein and Switzerland.
Secretariat: Geneva, Switzerland.

What is India- EFTA trade agreement?

The India EFTA text is a broad-ranging agreement that is being negotiated between India and the four countries since 2008 to increase investment by these countries in India and reduce tariffs, on a range of exports from these countries.
Trade and Economic Partnership Agreement (TEPA) is the the name of free trade negotiations between India and EFTA Countries.
Over the past two decades, the total trade between the EFTA States and India has been growing steadily. In 2022, the combined EFTA-India merchandise trade surpassed USD 6.1 billion. The primary imports to the EFTA States consisted of organic chemicals (27.5%), while machinery (17.5%) and pharmaceutical products (11.4%), excluding gold, constituted the main exports to India.

Pharmaceutical Industry in India:

Indian pharma industry is the third largest in the world by volume.
India accounts for 60% of global vaccine production, making it the largest vaccine producer in the world.
India accounts for 20% share in global supply of generic drugs by volume.
The pharmaceutical industry in India is expected to reach $65 Bn by 2024 and to $130 Bn by 2030.

Growth drivers of the pharmaceutical industry in India:

Government Support: PLI schemes to promote the production of high-value products in the country and increase the value addition in exports. Three bulk drug parks, located in Gujarat, Himachal Pradesh, and Andhra Pradesh should provide a consistent supply of bulk drug active components and will ensure India's drug security.
Medical tourism: Quality services at marginal costs compared to US, Europe, and South Asia
Infrastructure development: India has the highest number of US-FDA compliant plants outside the US.
Strong drug manufacturing: Expertise in low-cost generic patented drugs as well as end-to-end manufacturing
Strong domestic demand: Launch of the largest National Health Protection Scheme globally in the form Ayushman Bharat Yojna.

About Generic Drugs

Generic Drugs refer to a medication that is equivalent to a brand-name drug product in terms of its active ingredient, strength, dosage form, and intended use.
It is marketed either by a chemical salt or brand name. They have the same potency, quality, and implications and work in an identical manner as the branded medicine.
India is the largest producer of generic drugs globally.

Need for generic drugs:

Reduce Out-of-Pocket Expenditure: In India, around 94 million people are pushed into poverty due to expenditure on healthcare. About two-thirds of the expenditure is incurred on medicines.
Accessibility, availability and affordability: It may become available once the patent on the brand-name drug expires. This allows for competition in the pharmaceutical market, which often results in lower prices for consumers. This makes generic medicines price 30% to 70% less than branded medicines.
Effectiveness: It works in the same way as their brand-name counterparts. They have the same intended use and are equally effective.
Rise in the number of fatal diseases: It has increased over the years and the cost of medicines for such diseases is very high.

Challenges to generic drugs

Falsified and counterfeit drugs: Due to lack of transparency in the licensing procedures of Drugs, and lack of quality facility, it has resulted in the increased supply of low-quality, spurious and substandard drugs.
Poor Quality drugs: In 2018, the Central Drug Standard Control Organization (CDSCO) identified nearly 4.5 per cent of all generic medicines in the domestic market to be substandard due to lack of testing facilities.
Counterfeit products have entered the supply chain with severe consequences, as seen in Gambia and Uzbekistan.
Doctors do not prescribe a generic drug due to their lack of trust in the quality available in the Indian market, which lacks scientific standards in India.
Lack of resources and manpower: Drug control procedures in India suffer from a lack of resources and manpower. Widespread corruption within the system makes matters worse.
Problem of naming a fixed-dose combination (FDC): Many fixed-dose combinations (FDCs) drugs contain even 8 or 9 Active Pharmaceutical Ingredients. To prescribe a generic name for each of the eight or nine ingredients is a very tedious and impractical task.

Government Initiatives

Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP): To provide quality generic medicines at affordable prices. Prices of medicines sold through these outlets are 50-90% less than that of branded medicine prices in the open market.
Free Drugs Service Initiative (FDSI) 2015: It was launched under the National Health Mission (NHM) on procurement of generic essential medicines at low prices, eliminating irrational medicines and unscientific fixed-dose combinations.
Drugs Technical Advisory Board (DTAB) has recommended that retailers should maintain a separate rack/shelf solely for the storage of generic medicines sold in the proper name.

Way Forward

Utilising anti-counterfeiting technologies for counterfeit drugs: Through imaging technologies, variable data printing of unique numbers or barcodes with speciality inks, including invisible inks, and with RFID.
Strong regulatory framework: Strengthen and enforce regulations that ensure the safety, quality, and efficacy of generic medicines. Create a clear approval process for generic drugs to enter the market.
Drugs Controller General of India need to work in close association with the pharmaceutical companies and local drug control authorities to combat the menace of counterfeit drugs.
Research and Development Support: Provide grants or incentives to pharmaceutical companies to invest in research and development of generic versions of essential medicines.
Pharmacy Incentives: Reward pharmacies for promoting and dispensing generic medications.
API Sourcing: Ensure the sourcing of APIs from reputable and approved manufacturers, preferably those that adhere to Good Manufacturing Practices (GMP) to ensure the quality of drugs.

Europe Free Trade Association (EFTA)

Context: In a draft of the India – EFTA free trade agreement, a clause may postpone the access to affordable generic drugs in India for six years.

About Europe Free Trade Association (EFTA):

It is the intergovernmental organisation set up in 1960 (through Stockholm Convention) for the promotion of free trade and economic integration between its members.
Members: Iceland, Liechtenstein, Norway and Switzerland.
It does not envisage political integration.
It does not issue legislation, nor does it establish a customs union.
EFTA States are not obliged by the EFTA Convention to conclude preferential trade agreements as a group. They maintain the full right to enter into bilateral third-country arrangements.
The EFTA Council is the highest governing body of EFTA, usually meets eight times a year at the ambassadorial level (heads of permanent delegations to EFTA) and twice a year at Ministerial level. Each Member State is represented and decisions are taken by consensus.
The Chairmanship rotates every six months. For the EFTA Council, the chairmanship rotates between Iceland, Norway, Liechtenstein and Switzerland.
Secretariat: Geneva, Austria.

Kaladan Multimodal Transit Transport Project

Context: Kaladan Multimodal Project has suffered a setback due to the capture of a Paletwa town in Myanmar by a rebel group.

About Kaladan Multimodal Transit Transport Project (KMTTP)

It will connect the eastern Indian seaport of Kolkata with Sittwe seaport in Rakhine State, Myanmar by sea.
In Myanmar, it will then link Sittwe seaport to Paletwa in Chin State via the Kaladan river boat route, and then from Paletwa by road to Mizoram state in Northeast India.
It will reduce distance from Kolkata to Sittwe by approximately 1,328 km and will reduce the need to transport goods through the narrow Siliguri corridor, also known as Chicken's Neck.

Instability in Myanmar

Context: The article talks about the situation in Myanmar which has been under military rule for the last three years. The country today is challenged with violent conflicts between the political class, military regime, and ethnic organisations with no one emerging as a clear victor

The historic analysis of Myanmar’s social and political structure reveals that neither before nor during British colonial rule the task of nation-building was done wherein a unified polity where its Bamar majority and a mixture of ethnic and religious minorities could live peacefully.

Present contestation?

There is a power struggle going on between the two centres with political class and ethnic organisations on one side and military on the other.
The political class, represented by the unrecognised group called the National Unity Government (NUG), has defied the odds to assert itself through militia units called the People’s Defence Forces. The NUG has articulated its vision of a ‘federal democratic union’. However due to the regime's ruthless suppression, its leaders operate underground or from Thailand.
The ethnic armed organisations on the other hand have inflicted a heavy toll on the Myanmar military along the Thai border in the south-east and the Chinese border in the north-east. The victories secured at the end of 2023 by the Three Brotherhood Alliance comprising the Myanmar National Democratic Alliance Army, the Arakan Army, and the Ta’ang National Liberation Army shook the army. However the ethnic organisations remain divided as under different factions some oppose the army, some support it quietly, and some stay neutral.
The most powerful pillar of the power architecture Tatmadaw or the military has never faced such a dismal situation. Most citizenry is opposed to it, viewing it as a oppressor and harbinger of basic fundamental rights. Further within Army there is now considerable discontent within the military against its current leadership.
Lastly, various attempts by multilateral organisations like the United Nations, ASEAN, Japan, and Myanmar’s neighbours have been unable to move the country towards reconciliation. In particular, that the military has resiled from the ASEAN’s Five Point Consensus has dashed the region’s hopes for a settlement.

India’s interests, options

Implications of Myanmar’s Military Coup

Border security: Refugees fleeing military crackdown are entering Mizoram. This has led to disagreement between centre & Mizoram which supports refugees. Centre’s instruction of sealing border with Myanmar has irked ethnically and culturally connected communities on both sides. Ex – Chin community.
Strategic concern: India cannot upset the Myanmar junta by providing refuge to the officials fleeing military crackdown.
Containing China: Myanmar being crucial in containing China, India will have to take a calculated steps to not push Myanmar closer to China.
Insurgency: Several ethnic armed organisations are active within Myanmar. Being opposed to Junta, EAOs can lead to escalation in violence across the border.
Indian Investments: Instability would threaten India’s investments in Myanmar. Ex. Kaladan Project, Sittwe port, IMT trilateral Highway, Special economic zone in Rakhine.
Opportunity to reduce influence of China: Myanmar army has enjoyed a relatively strong relationship with India. It played a key role in handling the insurgency and Hot Pursuits of India. Su Kyi led democratic government was closer to China. China supported it on Rohingya crisis.
Drug trafficking: Drug production has shot up exponentially in Shan Province of Myanmar. The region was earlier large producers of heroine. However, currently it is world’s largest producer & exporter of meth (more potent & profitable). Most key individuals controlling the drug trade are pro-junta businessman as well as ethnic militia.

Way Forward for India:

Maintaining Cordial Relations: India's current policy of maintaining cordial relations with the government while supporting democracy is acknowledged as successful in strengthening bilateral ties. This approach recognizes the need for a balanced stance. The recommendation is to thus balance friendly ties with the military government while expanding engagement with other stakeholders which can be done via backchannel diplomacy which seeks to protect India's national interests.
Non-Interference in Internal Affairs: Emphasizing non-interference in Myanmar's internal affairs is crucial. This stance aligns with diplomatic principles and respects the sovereignty of nations, reinforcing the idea that India's engagement is based on mutual respect.
Communication with Resistance Components: Establishing communication links with certain components of the resistance, such as the Chin National Army, Arakan Army, and the National Unity Government (NUG), demonstrates an understanding of the evolving situation and the need for inclusive dialogue.
Message of Cessation of Violence: Conveying a strong message advocating the cessation of violence and the restoration of normalcy to both the government and the resistance reflects India's commitment to peace and stability in the region.
International Conclave: The proposal to convene a Peace Conclave involving senior officials from Quad member states and the ASEAN Troika reflects a multilateral approach. This platform could provide a space for dialogue and collaboration on addressing the Myanmar situation and also acknowledging India's support for the transition to a federal democracy
Focus on Aung San Suu Kyi: Highlighting the need for immediate freedom for Daw Aung San Suu Kyi is a human rights and justice-oriented component in India's approach. This reinforces the importance of individual liberties in the broader diplomatic context.

The Economic Community of West African States (ECOWAS)

Context: The military regimes of Burkina Faso, Mali and Niger announced their withdrawal from the West African Bloc ECOWAS.

About ECOWAS

Heads of State and Governments of fifteen West African Countries established the Economic Community of West African States (ECOWAS) when they signed the ECOWAS Treaty (Treaty of Lagos) in 1975 in Lagos, Nigeria.
The only Arabic-speaking Member, Mauritania withdrew in 2000 from the ECOWAS. Mauritania recently signed a new associate-membership agreement in 2017 with ECOWAS.

ECOWAS was set up to foster the ideal of collective self-sufficiency for its member states. As a trading union, it is also meant to create a single, large trading bloc through economic cooperation.
Headquarters: Abuja, Nigeria.
Aim of ECOWAS: is to promote cooperation and integration, leading to the establishment of an economic union in West Africa in order to raise the living standards of its peoples, and to maintain and enhance economic stability, foster relations-among Member States and contribute to the progress and development of the African continent.
ECOWAS consists of two operating institutions to implement policies: the ECOWAS Commission and the ECOWAS Bank for Investment and Development (EBID) – formerly known as the Fund for Cooperation.
ECOWAS Community Court of Justice was created by a protocol signed in 1991. The jurisdiction of the court allows rulings on disputes between states over interpretations of the Treaty. Like its companion courts, European Court of Human Rights and East African Court of Justice, it has jurisdiction to rule on fundamental human rights breaches.
The estimated 300 million citizens of the community can ultimately take ownership for the realization of the new vision of moving from an ECOWAS of States to an “ECOWAS of the People: Peace and Prosperity to All” by 2050.

Note: The region of West Africa is located west of the north-south axis lying close to 10° east longitude. The Atlantic Ocean forms the western as well as the southern borders of the West African region. The northern border is the Sahara Desert, with the Ranishanu Bend (#PrelimsFact) generally considered the northernmost part of the region. The eastern border lies between the Benue Trough (#PrelimsFact), and a line running from Mount Cameroon to Lake Chad.

Operation Sarvashakti

Context: To counter rising terror activities in border Rajouri and Pooch districts of Jammu and Kashmir, the Army launched ‘Operation Sarvashakti’, where terrorists operating on both sides of Pir-Panjal Mountain ranges will be targeted.

In 2023, there were three major attacks on the security forces, and in the last few years, 20 soldiers have been killed in terrorist attacks in the area. As per the reports, most of the terrorists are believed to be foreigners.

About Operation Sarvashakti:

Forces will be deployed on both sides of the Pir Panjal range to target terrorists.
As part of the operation, additional troops from at least three brigades are being deployed in the sector from various reserve and strike corps. This is done to increase the density of troops in the area.

Troops of Srinagar-based 15, Chinar corps and Nagrota-based 16, White knight corps (a town in Jammu) will be operating simultaneously with other agencies and paramilitary forces.
Jammu and Kashmir Police, CRPF, Special Operations Group, and intelligence agencies will be collaborating closely.
The operation is being closely monitored by Army Headquarters and Northern Army Command in Udhampur.

Motto: To counteract the resurgence of terrorism sponsored by Pakistani proxy groups and to focus on locating the terrorists’ hideouts in the dense forests, mountains and caves in the area.
Need:
- Pakistan supports and harbours terrorist groups that operate against India.
- Terrorist organisations like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammad (JeM), have been involved in attacks against the Indian security forces and civilians.
- Despite a significant decline in Terrorists activities since 2003, there is a recent resurgence, which prompts coordinated efforts to address the threat.
- Operation Sarvashakti is launched on the lines of ‘Operation Sarpvinash’ of 2003.

About Operation Sarpvinash:

From April 2003, the army carried out its biggest counter-insurgency operation in Jammu and Kashmir.
This was launched to eliminate terrorists who had infiltrated from across the border and set up camps in the thick forests south of the Pir Panjal range.
Around 10,000 troops under the 15 Corps and 16 Corps were involved in the operation.
Outcome:
- Eliminated terrorists and brought peace to the area that lasted until 2017-18.
- About 100 terrorists were killed in the operation.
- Large number of weapons of various kinds, dumps of explosives, and stores including medicines, and communication equipment were recovered.
- Some 40-50 terrorist hideouts were demolished.
Need of ‘Operation Sarpvinash’:
- In the aftermath of the December 13, 2001 terrorist attack on Parliament, the Indian armed forces launched Operation Parakram, a massive mobilisation exercise on the border with Pakistan.
- In early 2003, sources suggested that more than 300 foreign terrorists had infiltrated across the Line of Control (LoC) and established hideout camps and a communication network.
- These terrorists belonging to several Pakistan-based outfits, had created a demilitarised zone in the region.

Why is the region being constantly targeted?

Areas south of Mendhar, which leads to the Pir Panjal ranges through Hilkaka, are one of the shortest routes of access for infiltrators across the LoC into the Kashmir Valley. Dense forests and steep mountain slopes in the region provide adequate cover.
In 2018, Jammu and Kashmir recorded 2,936 cases of ceasefire violations by Pakistan. Approximately 40 percent of the cases took place in Poonch district, particularly in Kerni and Krishna Ghati sectors and about 35 per cent took place in the Rajouri sector.
Pakistan targets the region because of two key reasons:
- Two main roads of the state pass through this region, Jammu-Srinagar highway and the road from Jammu to Poonch, which connects to Mughal Road between Poonch and Shopian in the Valley via Pir Panjal Pass.
  - It’s a strategic corridor, and if hit, it can significantly impact not just the security establishment but also the local population.
- There is also a demographic factor at play here, as the population of Hindus increases as one goes southwards.
  - These border districts do have a high Muslim population, but experts point out that there are social and cultural differences between them and the Muslims of the Kashmir Valley.
  - Muslims in this region belong to Gujjar and Bakerwal nomadic communities, and have traditionally drawn less sympathy and attention from the Pakistani establishment than the Muslims of the Valley.
Problems in these areas could be traced back to the 1948 war between India and Pakistan, where forces sponsored by the latter suffered losses.
History also points out the strategic importance of the Chamb area, which was invaded by the Pakistan Army during both the 1965 and 1971 wars. However, the troops were stopped at the Tawi river by the Indian Army. If the Pakistani troops crossed the river, they could have taken Akhnoor and would have been able to disconnect Kashmir from Jammu and the rest of India.
The turmoil in these areas began after 1993, when there was a consensus among the Pakistan establishment to extend terror to these lower areas.