Other Bilateral Relations of India

India-Sri Lanka Fishing Dispute

Context: There is recent debate around the issue of illegal fishing by Indian fishermen in Sri Lankan waters.

Background of the dispute

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  • The dispute primarily concerns fishing rights in the Palk Bay region between India and Sri Lanka, where both Indian and Sri Lankan fishermen depend on marine resources for their livelihood.
  • Indian fishermen, particularly from Tamil Nadu and Puducherry, often cross the International Maritime Boundary Line (IMBL) into Sri Lankan waters in search of better fishing grounds.
  • The issue has intensified after India ceded Katchatheevu Island to Sri Lanka under the 1974 Indo-Lanka Maritime Agreement, which led to the restriction of traditional fishing rights for Indian fishermen.

Key Issues in the dispute

1. Illegal fishing and Bottom Trawling:

  • Indian fishermen have been accused of bottom trawling in Sri Lankan waters.
    • It is a fishing method that is considered highly destructive as it damages the seabed and depletes fish stocks and marine biodiversity.
  • Sri Lankan Navy has taken strict measures, including patrolling, arresting 146 Indian fishermen, and seizing 18 boats in 2024 alone, to prevent illegal fishing activities.
  • Indian fishermen argue that limited fishing zones in India’s coastal waters due to coral reefs and rocks force them to venture into Sri Lankan waters.
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2. Livelihood Concerns:

  • Economic disparity: Indian fishermen, who are relatively wealthier, use mechanised boats, while Sri Lankan Tamil fishermen, still recovering from the civil war, depend on traditional fishing methods.
  • Indian fishermen face legal restrictions: The Tamil Nadu Marine Fishing Regulation Act, 1983, restricts fishing activities along the Tamil Nadu coastline, which makes deep-sea fishing the only alternative.
  • Joint deep-sea fishing schemes initiated in 2017 by the Indian government have not been widely adopted due to high investment costs and the reluctance of fishermen to shift from their traditional practices.

3. Diplomatic issues: Sri Lanka’s legal claims under international law

  • The United Nations Convention on the Law of the Sea (UNCLOS) supports Sri Lanka’s right to regulate its waters.
    • Article 19 of UNCLOS considers unauthorised fishing in another country’s territorial waters a security threat.
    • Article 21 of UNCLOS allows Sri Lanka to implement laws to prevent violations of its fisheries regulations.
  • The lack of direct involvement of the Tamil Nadu government in diplomatic talks has weakened India's negotiation position and led to concerns over the federal structure being overlooked.

Implications of Indo-Sri Lanka Fishing Conflict

  • Humanitarian concerns: Frequent arrests of Indian fishermen lead to prolonged detentions, legal complications, and financial hardship for affected families. Psychological impact on fishing communities due to persistent fear of arrests and violence.
  • Security implications: Increased coast guard deployments and surveillance in the Palk Bay region divert resources from other emerging maritime security threats. Concerns over piracy and drug trafficking, with reports of narcotics being transported through the Palk Strait.
  • Political tensions: Allegations against the Sri Lanka Navy’s actions in the Palk Bay have fueled diplomatic tensions between the two nations. Political tensions have influenced India’s support for UN resolutions on Sri Lanka’s human rights record.
  • Environmental degradation: Bottom trawling harms fish breeding grounds, depletes the stock, and damages the seafloor for a foreseeable future. Coral reef destruction disrupts marine ecosystems, impacting fish breeding and coastal protection.
  • Economic Consequences: Overfishing has reduced fishery resources and fishers' income. Sri Lanka alleges that it loses around USD 730 million annually due to Indian poaching while Indian fishermen face declining incomes due to resource depletion and frequent arrests.

Way Forward

  • Diplomatic Measures: 
    • Resume fishermen-level talks, which were last held in 2016, to build consensus and address concerns from both sides.
    • Ensure Tamil Nadu’s participation in bilateral discussions to reflect the concerns of affected fishing communities.
    • Utilise Prime Minister Narendra Modi’s upcoming visit to Sri Lanka (April 2025) as an opportunity for high-level discussions on fisheries cooperation.
  • Enforcing Maritime Regulations: 
    • Enhanced patrolling and surveillance of IMBL can help prevent illegal fishing activities.
    • A dedicated Joint Working Group (JWG) should be established to ensure continuous dialogue and problem-solving mechanisms.
  • Sustainable Fisheries Management: 
    • Enforce a ban on bottom trawling and promote eco-friendly fishing techniques to protect marine ecosystems.
    • Provide financial support and training for deep-sea fishing to enable fishermen to transition to sustainable methods.
    • Sustainable fishing like catch limits and quotas can ensure fish populations recover quickly and release fish fingerlings to compensate for depleting resources.
    • Joint Marine Resource Management: A regional fisheries management authority should be established to regulate fishing activities and prevent overexploitation of marine ecosystems.
  • Alternative Livelihood Programs: 
    • Tamil Nadu should offer alternative livelihoods and skill development in areas of marine tourism, seaweed farming, and inland aquaculture for fishers facing restrictions.
  • Technology and Governance: 
    • Implement real-time satellite monitoring to track fishing activities and prevent violations of the IMBL.
    • Enhance coast guard coordination and create a structured dispute resolution framework to address conflicts effectively.
    • Promote regional cooperation through SAARC and BIMSTEC to develop a joint framework for sustainable marine resource management.

The countries need to focus on long-term resolution of the disputes to secure the livelihood security of both Indian and Sri Lankan fishermen, while maintaining maritime peace, ecological balance, and economic cooperation.

India, Mauritius and a visit to deepen long-standing Ties

Context: The Prime Minister of India will embark on a state visit to Mauritius from 11-12 March 2025, and will be the guest of honour in the Mauritius Independence Day celebrations. 

Relevance of the Topic:  Mains: India-Mauritius bilateral relations and partnership.

Introduction:

  • India and Mauritius share a long-standing and multifaceted relationship, deeply rooted in history, culture, economic ties, and strategic interests. 
  • The new government in Mauritius is led by Navinchandra Ramgoolam of the Labour Party. The visit of the Indian PM provides an opportunity to reaffirm India’s commitment to the security and prosperity of the island nation. 
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Importance of Mauritius for IndiaImportance of India for Mauritius

1. Strategic Location in the Indian Ocean:

- Mauritius' strategic location in the Indian Ocean, makes it a vital partner for India's maritime strategy and Vision SAGAR

- The island nation plays a crucial role in India's Ocean Diplomacy, enhancing its influence in the Indian Ocean.

2. Cultural and Historical Ties:

- Over 68% of Mauritius' population is of Indian origin fostering strong cultural affinities and historical ties.

- These ties facilitate cooperation in various sectors, including education, culture, and community development projects.

3. Economic Benefits:

- Mauritius is an important trading partner for India.

- Comprehensive Economic Cooperation and Partnership Agreement (CECPA) enhances trade relations and provides preferential market access for both countries.

4. Security Cooperation:

- Mauritius supports India's stance against terrorism and piracy, contributing to regional security in the Indian Ocean.

- India has historically played a role in Mauritius' security, including military interventions like Operation Lal Dora in 1983.

1. Economic Support and Investment:

- India is one of Mauritius' largest trading partners and a significant source of foreign investment. 

- India's development assistance, including funding for community projects, supports Mauritius' infrastructure and social development. 

2. Strategic Partnerships:

- India's strategic assistance enhances Mauritius' maritime security, defence capabilities and  reinforces its sovereignty claims.

- India supports Mauritius' claims over the Chagos Archipelago, aligning with its stance on decolonisation and regional stability.

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Historical and Cultural Ties

  • Mauritius has a significant Indian-origin population, with nearly 70% tracing their ancestry to India, particularly from Bihar and Uttar Pradesh. These historical ties date back to the colonial period when Indian indentured labourers were brought to work on sugar plantations.
  • Sir Seewosagur Ramgoolam, the father of the current Prime Minister, played a pivotal role in the country’s independence movement and shared a historical connection with India. He worked closely with Netaji Subhas Chandra Bose in Britain (1919-21) and assisted in the publication of Bose’s book, The Indian Struggle.
  • India has played a significant role in preserving and promoting the cultural and linguistic heritage of the Indian-origin population in Mauritius.
    • Institutions like the Mahatma Gandhi Institute and the Indian Cultural Centre have been instrumental in promoting Indian languages and traditions. 
    • Additionally, Mauritius is home to the World Hindi Secretariat, supported by India.

Economic and Trade Relations:

  • Bilateral trade between India and Mauritius has seen steady growth, reaching $554 million in 2022-23.
  • Mauritius serves as a crucial gateway for India’s economic engagement with Africa due to its membership in the African Union and preferential trade agreements with African nations. 
  • Mauritius is also an important financial partner for India, largely due to the Double Taxation Avoidance Agreement (DTAA).
    • The DTAA has made Mauritius a major channel for foreign investments into India, positioning it as a successful international financial centre. 
    • This financial partnership has been mutually beneficial, fostering investment and economic collaboration.

Strategic and Maritime Security Cooperation: 

  • Mauritius plays a pivotal role in India’s maritime security strategy, particularly in the western Indian Ocean. 
  • As a key member of the Colombo Security Conclave, alongside India, Sri Lanka, the Maldives, and Bangladesh, Mauritius contributes to regional maritime security.
  • India has significantly strengthened Mauritius’ maritime capabilities by:
    • Establishing a chain of coastal radar stations.
    • Redeveloping the Mauritian island of Agaléga as a joint surveillance facility.
    • Granting Mauritius access to India’s Information Fusion Centre for the Indian Ocean Region (IFC-IOR) in Gurugram.
    • Conducting oceanographic surveys through Indian naval assets such as INS Sarvekshak.
  • With China’s growing presence in the Indian Ocean, India’s strategic partnership with Mauritius has assumed even greater importance.
    • Both China and India are competing for influence in Mauritius. While India provides security support, China offers economic and investment opportunities.

Regardless of the political leadership in either country, India-Mauritius relations have remained stable and positive. With the recent election of Prime Minister Navinchandra Ramgoolam, India has an opportunity to reinforce its strategic and diplomatic ties. As India seeks to expand its influence in the Indian Ocean and Africa, Mauritius remains a key ally.  

India-US Extradition Treaty

Context: The United States Supreme Court has rejected the plea of the 2008 Mumbai Terror Attack accused Tahawwur Hussain Rana against his extradition to India. 

Relevance of the Topic:Prelims: Extradition; India-US Extradition Treaty.

Background: 

  • Rana had filed an “Emergency Application For Stay” after the US President approved his extradition following his meeting with the Indian Prime Minister.
  • Rana was arrested in Chicago, US in October 2009 for his involvement in the 26/11 attacks.
  • Rana will be extradited on the basis of the India-US Extradition Treaty signed by the two countries in 1997.

What is Extradition?

  • Extradition is the official transfer of a person from one country to another, so that the formal authority over the person shifts to the country where the person is transferred. 
  • The person who is transferred is either someone who is accused of a crime or a convicted criminal in the country to which he is being delivered. 
  • The crime for which the person is being transferred should also be a crime under the law of the country which is transferring the person.
  • The Extradition Act, 1962 regulates the law relating to India’s extradition of fugitive criminals. 
  • India has entered into extradition treaties with certain countries like the UK, US, Bangladesh, etc. 

India-US Extradition Treaty: 

  • India-US Extradition Treaty signed by the two countries in 1997. The treaty established a legal framework for the extradition of individuals charged with or convicted of serious offences in either country. 
  • Extraditable Offences: 
    • Crimes carrying a minimum punishment of one year imprisonment, including financial crimes.
    • Offences must fulfill the principle of dual criminality (punishable in both countries).
    • Extradition shall be granted regardless of where the act constituting the offence was committed. 
  • Exceptions:
    • Political offences are not extraditable under the treaty. However, certain actions like wilful crime against the head of government, aircraft hijacking offences, crimes against internationally protected persons, hostage-taking remain outside the ambit of political crimes.
    • Extradition is barred when the person sought has been convicted or acquitted in the Requested State for the same offence.

Extraditions from the US: 

  • According to data provided by the Ministry of External Affairs to Parliament, the treaty facilitated the extradition of 11 Indian fugitives between 2002 and 2018.

Also Read: Sheikh Hasina Extradition: India’s Options 

Australia, the partner for India’s growth trajectory

Context: Australian Prime Minister Anthony Albanese has recently launched the New Roadmap for Australia’s Economic Engagement with India. The Roadmap sets out how Australia can contribute to, and benefit from, India’s phenomenal growth.

Relevance of the Topic: Mains: India-Australian bilateral relations and trade partnership. 

Introduction

  • India and Australia share a multifaceted relationship and partnership based on strategic alignment, trade, education, clean energy, defence, and diaspora engagement.
  • The diplomatic relations between the countries began during India's Pre-Independence period in 1941 with the establishment of a Trade Office in Sydney.
    • India’s first High Commissioner arrived in Canberra in 1945.
    • Early trade links included coal exports from Australia and Indian labor recruitment for Queensland's plantations. 
  • These ties have evolved into broader economic and strategic cooperation over the time.
Australia’s Perspective on IndiaIndia’s Perspective on Australia
Australia believes in India’s economic potential and expects it to become the world’s third-largest economy by 2030.India views Australia as a trusted partner in its Indo-Pacific strategy, ensuring regional stability and security.
Supports India’s claim for a permanent seat on the United Nations Security Council (UNSC).Recognises Australia’s role in providing critical minerals essential for India’s clean energy transition and manufacturing sector.
Sees India as a natural partner due to economic complementarities and geographical proximity.Values Australia’s higher education institutions, fostering academic collaboration and skill development.
Views India as a key ally in Indo-Pacific region, fostering greater political and strategic cooperation.Seeks deeper trade ties through agreements like ECTA and the upcoming CECA.
Appreciates Indian diaspora’s contributions in Australia, strengthening people-to-people connections.Engages with Australia in Quad, defence dialogues, and maritime security cooperation.
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The New Economic Roadmap

  • The Australian Prime Minister has recently launched the New Roadmap for Australia’s Economic Engagement with India.
  • The roadmap identified four superhighways of growth - clean energy, education and skills, agribusiness, and tourism. It sets out a pathway to boost two-way investment 
  • The roadmap also identifies nearly 50 specific opportunities to focus and accelerate Australia's engagement with India in several areas such as defence industries, sports, culture, space, and technology.
  • Australia is investing USD 16 million for an Australia-India Trade and Investment Accelerator Fund, which will help Australian businesses unlock new commercial opportunities in India.

India-Australia Relations

1. Economic and Trade Relations: 

  • Complementary Economies:
    • India is Australia’s sixth-largest trading partner and fourth-largest export market.
    • Bilateral trade between India and Australia was over $24 billion in 2024.
    • Australia provides essential inputs for India’s manufacturing and clean energy goals.
    • India and Australia have already signed the Economic Cooperation and Trade Agreement (ECTA) to boost trade in 2022. Recent data shows that:
      • Export utilisation of Indo-Australian ECTA has reached 79%. 
      • Import utilisation has reached 84%.  
  • Key sectors of Cooperation include: 
  • Clean Energy: Australia provides critical minerals (lithium, nickel, cobalt) to support India’s electric vehicle manufacturing and renewable energy goals.
    • India and Australia formed the Critical Minerals Investment Partnership in 2023 to build new supply chains in Australia to supply India with the Critical minerals.
    • An MoU between Khanij Bidesh India Ltd (India) and the Critical Minerals Facilitation (Australia) was signed in 2022.

Economic Cooperation and Trade Agreement (ECTA):

  • ECTA is a bilateral trade agreement to enhance economic ties between India and Australia. Signed in April 2022 and came into force in December 2022. 
  • India will benefit from preferential market access provided by Australia on 100% of its tariff lines, including the labour-intensive sectors such as gems and jewellery, textiles, leather, footwear, furniture, food, and agricultural products, engineering products, medical devices and automobiles.
  • India will offer preferential access to Australia on over 70% of its tariff lines, including primarily raw materials and intermediaries such as coal, mineral ores and wines.
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2. Strategic Partnership and Defence Cooperation

  • India and Australia have a growing defence and security partnership focused on peaceful, stable and prosperous Indo-Pacific.
    • Australia is a key participant in the Quadrilateral Security Dialogue (Quad) alongside India, the US, and Japan.
    • Collaborations on maritime security, intelligence sharing, and joint military exercises.
  • Collaboration also includes agreements on cyber security, maritime cooperation, and defence exchanges like the General Rawat Young Defence Officers’ Programme.

3. Education & Skills

  • India Australia Rapid Innovation and Startup Expansion (RISE) Accelerator has been instituted.
  • Australian Universities are establishing campuses in Gujarat (GIFT City) and Noida.
  • Australia-India Cyber and Critical Technology Partnership (AICCTP) was established in 2020 to support collaboration on cyber and critical technology issues.

4. Other Sectors

  • Health: Australia-India MoU on Cooperation in the Field of Health and Medicine signed in 2017.
  • Agri-business: Strengthening cooperation in food security and sustainable farming techniques.
  • Tourism: Enhancing people-to-people exchanges through increased travel and cultural understanding.

5. Role of Indian Diaspora

  • Indian Diaspora is a 10-lakh strong and the fastest-growing population group in Australia.
  • It acts as a ‘human bridge’ between the two nations, strengthening business and cultural ties.
  • The Centre for Australia-India Relations, supported with ₹132 crore, is led by prominent Indian-Australian leaders to boost people-to-people connections.
  • The Maitri Grants Program (funded with ₹22 crore) aims to enhance the people-to-people, business-to-business and cultural links between the two nations.

Challenges and Opportunities in the relationship

  • Challenges:
    • India's business environment remains complex for foreign companies due to regulatory hurdles.
    • Structural issues like job creation, inequality, and climate risks pose challenges to sustained growth.
  • Opportunities:
    • India's projected growth trajectory (6–8% annually) makes it an attractive partner for Australian businesses.
    • Critical mineral supplies from Australia can support India’s EV manufacturing ambitions (E.g., lithium for batteries). 

Future Prospects

  • Comprehensive Economic Cooperation Agreement (CECA): 
    • After ECTA, the negotiations for a Comprehensive Economic Cooperation Agreement (CECA) are underway.
    • CECA is intended to cover 5 main tracks i.e. goods, services, digital trade, government procurement and Rules of Origin/Product Specific Rules Schedule.
  • With the Roadmap in place, the India-Australia relationship is set to become stronger and more consequential.

India and Australia’s relationship is evolving into a comprehensive and strategic partnership, driven by shared economic interests, geopolitical alignment, and cultural affinity. 

US-India Defence Ties

Context: The recent visit of our Prime Minister to the United States has given a push to the U.S.-India bilateral defence engagement. 

Relevance of the Topic: Mains: India-US relations: Defence cooperation

New Developments in US-India Defence Ties

  • New 10-Year Defence Framework Agreement: Extends the U.S.-India Major Defence Partnership. Focus on autonomous systems, including:
    • Collaboration between Anduril Industries & Mahindra Group.
    • Co-development of Active Towed Array Systems (ATAS) by L3Harris & Bharat Electronics Limited (BEL).
    • Launch of the Autonomous Systems Industry Alliance (ASIA) for advanced military technology cooperation.
  • Greater cooperation in Defence:
    • Possible collaboration in undersea systems, fifth-generation fighter aircraft, space, air defence, and anti-tank missiles.
    • Review of the arms transfer regulatory regime to streamline defence trade and align acquisition mechanisms.
  • Strengthening Defence acquisitions:
    • India is to proceed with the purchase and co-production of ‘Javelin’ Anti-Tank Guided Missile (ATGM) & ‘Stryker’ Infantry Combat Vehicles (ICVs).
    • Boosts domestic manufacturing and integrates India into the supply chain.
    • India to acquire six additional P-8I Maritime Patrol Aircraft to enhance its Maritime Domain Awareness (MDA).
New Developments in US-India Defence Ties

Challenges in India-U.S. Defence Partnership

  • Delayed Technology Transfers and Engine Procurement Issues:
    • No mention of General Electric (GE) Aerospace's F-404 GE-IN-20 engines for India-made Tejas Mark 1A fighter jets.
    • No confirmation on the 80% Transfer of Technology (ToT) for GE’s F-414 engine, intended for Tejas Mark-II jets.
    • India’s Air Force (IAF) faces fighter squadron depletion below the required strength (under 30 squadrons).
  • Challenges in Fighter Aircraft Procurement and Integration:
    • Potential integration of the F-35 Lightning II fighter aircraft into the IAF presents a significant logistical and operational challenge.
    • Indian Air Force already operates a highly diverse fleet, including Russian-origin Su-30MKIs, MiG-29s, French Rafales, British Jaguars, and the indigenous Tejas jets.
      • Adding the F-35 to this mix would require extensive adjustments in terms of training, maintenance, infrastructure, and weapons compatibility.
    • IAF's Medium Multi-Role Combat Aircraft (MMRCA) project, which aimed to procure 114 multirole fighters, has faced repeated delays since its initiation in 2000.
  • Strategic Autonomy Concerns:
    • While India has been expanding its partnerships with multiple nations, including Russia, France, Israel, and the U.S., its reliance on foreign defence imports raises concerns about strategic autonomy.
    • Unlike France, which agreed to provide some level of technology transfer for the Rafale deal, the U.S. has historically been reluctant to share critical defence technology with India.
    • The U.S. tends to impose End-User Monitoring (EUM) agreements, which require on-site inspections of military equipment even after sale. This could compromise India’s operational secrecy.
    • Acquiring U.S. systems like the F-35 or advanced missile defence systems may limit India’s ability to maintain a truly non-aligned defence policy, as it would increase dependence on American military infrastructure and intelligence-sharing agreements. 

Tariff reduction on Agricultural Products in India-US Trade Negotiations

Context: Agricultural goods receive high protection in India and have largely remained outside trade agreements. India is considering a range of items for tariff reductions on US products, however, the United States is particularly interested in reduction of tariffs in the agricultural sector to export more agricultural goods to India.

Relevance of the Topic: Prelims: Key trends in the US-India Trade relations. 

India-US trade in Agricultural products

  • High protection in India:
    • India has traditionally maintained high tariffs on agricultural imports to protect its domestic farming sector, which is highly sensitive and politically significant.
    • Despite tariff reductions on select products in recent Union Budgets, agriculture remains a protected sector.
  • US Agricultural export interests:
    • The American agricultural sector (especially in the Midwest) forms a key voter base for former President Donald Trump, influencing US trade policies.
    • Increasing agricultural exports is an offensive interest for the US, aiming to support domestic farmers and strengthen economic ties.
  • Tariff rates comparison:
    • India’s average applied Most Favoured Nation (MFN) tariff on agricultural goods: 39%
    • The US average applied MFN tariff on agricultural goods: 5%
  • Implications:
    • High Indian tariffs on agricultural products lead to trade imbalances and hinder the growth of US exports to India.
    • The disparity prompts US demands for reciprocal tariff reductions, which could potentially benefit both sides through enhanced trade volumes.
image 179

India’s agricultural exports to the US

  • Key export items: Basmati rice, spices, cereals, dairy, and poultry products.
  • Export value: Approximately $4 million annually.
  • Potential gains from tariff reductions:
    • Lowering tariffs could improve the market access for Indian agricultural goods in the US.
    • Enhanced access could particularly benefit sectors like basmati rice, processed foods, and spices.

Sectoral vulnerabilities in Indian agriculture from US Reciprocal Tariffs (As per GTRI Report): 

  • Seafood (Fish, Meat, Processed Seafood): 
    • Exports worth $2.58 billion face a 27.83% tariff differential.
    • Shrimp, a key export item, is likely to lose competitiveness in the US market.
  • Processed Foods, Sugar, and Cocoa:
    • Exports worth $1.03 billion affected by a 24.99% tariff increase.
    • Indian snacks and confectionery products will become costlier and less attractive to US consumers.
  • Edible Oils: Coconut and mustard oil exports valued at $199.75 million face a 10.67% tariff increase.
  • Alcohol, Wines, and Spirits: Exports of $19.20 million affected by a steep 122.10% tariff hike.
  • Live Animals and Animal products: $10.31 million in exports face a 27.75% tariff differential.
  • Tobacco and Cigarettes: Despite a high US tariff of 201.15%, Indian exports worth $94.62 million remain largely unaffected due to an already negative tariff differential (-168.15%).

Also Read: Reciprocal Tariffs by the U.S. 

Comparison in Global Context

  • United States - Mexico - Canada Agreement (USMCA):
    • Signed during Trump’s tenure to replace North American Free Trade Agreement (NAFTA) and expand the US agricultural market access.
    • Key Provisions:
      • Removal of Canadian Class 6 and 7 milk pricing programs to prevent undercutting of US dairy prices.
      • Reforms in Canada’s wheat grading system to ensure fair competition for US wheat growers.
    • Impact: Significant increase in the US dairy and wheat exports to Canada.
  • US-China Trade Deal (2020-2021):
    • Focused on boosting US agricultural exports amid the trade war.
    • Key Provisions:
      • China agreed to purchase US agricultural products worth $12.5 billion above the 2017 baseline in 2020 and $19.5 billion above the same baseline in 2021.
      • Removal of non-tariff barriers, such as lifting age restrictions on US beef imports.
    • Outcome: Enhanced market access and increased agricultural trade between the two economies.

India Qatar elevate ties to Strategic Partnership

Context: The Amir of the State of Qatar, Sheikh Tamim bin Hamad Al-Thani, made a state visit to India in February, 2025. During this visit, India and Qatar elevated their bilateral relations to a strategic partnership to deepen cooperation in trade, energy, investment, security and international forums. 

Relevance of the Topic: Mains: Bilateral Relations: India-Qatar. 

Key Highlights of India-Qatar Strategic Partnership

  • Strategic Partnership Agreement:
    • India and Qatar have elevated their bilateral relationship to a Strategic Partnership. This brings Qatar on par with the United Arab Emirates (UAE), Saudi Arabia, Oman, and Kuwait, all of which have strategic partnerships with India. 
image 159
  • Economic Cooperation and Investment:
    • Qatar has committed to invest USD 10 billion in India, with the Qatar Investment Authority (QIA) planning to open an office in India. 
    • India is Qatar’s second largest trading partner, with bilateral trade of about $14 billion in 2024. The two countries have set a target to double bilateral trade to $28 billion by 2030. 
    • The countries have agreed to explore an India-Qatar Free Trade Agreement (FTA) and Bilateral Investment Treaty (BIT). 
    • The countries have signed a revised Double Taxation Avoidance Agreement and five MoUs on economic collaboration, youth and sports, archives and investments.
    • Both sides are exploring opportunities to increase investments in infrastructure, technology, manufacturing, food security, logistics, hospitality and other areas of mutual interest. 
  • Energy Partnership:
    • India and Qatar are deepening their energy partnership through trade and mutual investments. Qatar is the largest supplier of LNG to India, accounting for over 48% of India's global LNG imports. 
    • An agreement between Qatar Energy and Petronet LNG Limited ensures the supply of 7.5 million metric tonnes per annum of LNG to India for 20 years starting in 2028.
  • Bilateral Mechanisms:
    • The establishment of two Joint Ministerial Commissions, at the level of Foreign Ministers and Ministers of Commerce and Industry, to strengthen cooperation has also taken place.
image 160

Other Key Outcomes

  • Extension of the Indian e-Visa facility for Qatari nationals.
  • India and Qatar have agreed to celebrate a Year of Culture, Friendship, and Sports in the near future. 
  • Operationalisation of India's UPI at Qatar National Bank (QNB) Point of Sales in Qatar.
  • Expansion of Qatar National Bank's presence in India by setting up an office in the GIFT City.

Areas of Discussion

  • Middle East Peace Process: Discussions between the two leaders also included the Middle East peace process, with both sides appreciating each other's positions on the Israel-Hamas issue. 
  • Terrorism: They also unequivocally condemned terrorism in all its forms and manifestations, agreeing to cooperate in combating this menace through bilateral and multilateral mechanisms.
  • UN reforms: Both leaders emphasised the importance of a reformed and effective multilateral system, centered on a UN reflective of contemporary realities, as a key factor in tackling global challenges.

Qatar is a key strategic partner for India due to its geopolitical location, economic potential, energy resources, and a large Indian diaspora. 

India-US to negotiate Bilateral Trade Agreement

Context: India and the US have agreed to negotiate the first tranche of a Bilateral Trade Agreement (BTA) in 2025 to reduce tariff and non-tariff barriers. However, the US policy on reciprocal tariffs, as proposed by President Donald Trump, could impact negotiations significantly.

Relevance of the Topic:Prelims: Key aspects of the US-India Relations- Bilateral Trade Agreement

India-US Trade Relations: Current Scenario: 

  • US was India’s second-largest trading partner during April-November 2024-25, with bilateral trade reaching $82.52 billion.
  • India’s goods trade surplus with the US doubled from $17.30 billion in 2019-20 to $35.33 billion in 2023-24.
  • India enjoys a merchandise trade surplus of $35 billion with the US.
India's goods trade surplus with US
image 115
  • Major Indian imports from the US: Mineral fuels, precious stones, nuclear reactors, electrical machinery, and aircraft parts.
  • Major Indian exports to the US: Engineering goods, electronic goods, gems and jewellery, pharmaceuticals, and petroleum products.
  • Both Nations aim to double their bilateral trade to $500 billion by 2030.
India's rising dependence on US marrket

Reciprocal Tariffs: Implications for India: 

  • Trump’s reciprocal tariff plan aims to match higher tariffs imposed by trade partners on US goods. 
  • US claims India imposes high tariffs, particularly on agricultural goods (39%) and motorcycles (100%), compared to US tariffs of 5% and 2.4%, respectively.
  • The policy could push India to reduce its tariffs rather than the US offering reciprocal concessions.
  • The US withdrawal of India’s Generalised System of Preferences (GSP) status in 2019 has already affected India’s duty-free exports worth over $5 billion.

Bilateral Trade Agreement (BTA): 

  • What is it: An integrated approach to strengthen and deepen bilateral trade across the goods and services sector.
  • Objectives:
    • Increasing market access
    • Reducing tariff and non-tariff barriers
    • Deepening supply chain integration.

Concerns in Bilateral Trade Agreement (BTA) Negotiations

  • Narrow scope: BTA is narrower in scope than a Free Trade Agreement (FTA), focusing only on specific sectors rather than overall trade liberalisation.
  • US demands: US may demand stricter standards and non-tariff measures to gain further concessions from India.
  • Potentially benefit US more: BTA likely means lower Indian tariffs on American goods, since average US tariffs are already among the lowest in the world.
  • Less favourable stand: India’s higher average tariff rates compared to competing nations reduce its ability to negotiate favorable trade terms.
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  • Past experiences: Indo-Pacific Economic Framework for Prosperity (IPEF), which India is a part of, did not conclude its ‘trade pillar’ due to the lack of US tariff concessions.

Reciprocal Tariffs by the U.S.

Context: The US President Donald Trump announced plans for reciprocal tariffs on numerous trading partners, which could take effect from April 2025. 

This move has significant implications for global trade and India's economic relations with the United States. India will be amongst the worst to hit with sectors like food products, vegetables, textiles and clothing set to be the most impacted. 

India-US Trade Relations

  • India-US Bilateral Trade (April-November 2024-25):
    • Total trade: $82.52 billion
    • Indian exports to the US: $52.89 billion
    • Indian imports from the US: $29.63 billion
    • India’s trade surplus: $23.26 billion
  • The US was India's second-largest trading partner during this period.
US trade with India

What are Reciprocal Tariffs?

  • Definition: 
    • Tariffs are taxes imposed on imported goods. Reciprocal tariffs imply that the US will charge the same tariff rate on imports as the exporting country levies on the US goods.
  • Historical Context: 
    • Post-World War II global trade shifted towards free trade under GATT and WTO, allowing developing countries special and differential treatment. 
    • Developed countries (such as the US) were expected to maintain tariffs much lower than the tariff rates in developing countries (such as India).
    • This system allowed India to levy higher tariffs that ensured that cheap food grains produced by rich farmers in Europe and US did not flood into the Indian market and ruin the livelihood of millions of Indian farmers.
  • Trump’s Policy Shift: The new policy eliminates differential treatment, making all countries subject to equal tariff measures.

Rationale behind US’s Reciprocal Tariffs 

  • Address Trade Deficits: The US has a significant trade deficit with multiple countries, including India.
    • The US has a trade deficit of $1 trillion with the rest of the world, while China enjoys a trade surplus of more than $1 trillion.
  • Protectionist Economic Policy: The US aims to boost domestic industries by making foreign imports costlier.
  • Political Strategy: Trump used the trade deficit as a campaign issue, claiming unfair treatment by trade partners.
tariff differential with US

Calculation of Reciprocal Tariffs

  • Comprehensive Review: The US Trade Department is formulating tariff structures considering direct duties and indirect subsidies.
  • Subsidy Adjustments: US calculations include export subsidies, such as India's Production Linked Incentive (PLI) scheme.
    • During 2022-24, $1 billion has been disbursed to companies in India under the PLI scheme to boost exports of handsets. 

Impacts on India

  • Limited Adverse Effects: According to the Global Trade Research Initiative (GTRI), reciprocal tariffs by the US are not expected to hurt India significantly.
    • India's export profile differs significantly from the US.
      • For example, if the U.S. charges 50% reciprocal tariffs on Indian pistachios because India charges the same, its impact can be neglected as India does not export pistachios. 
    • Additionally, for 75% value of the U.S. exports to India, the average tariff is less than 5%.
    • In contrast, India faces high U.S. tariffs on many labour-intensive goods like textiles, and footwear, of between 15-35% on several products.
  • Trade Deficit Adjustments: Increased Indian imports from the US may reduce India’s trade surplus with the US.
    • India is likely to buy more and more US goods- such as defence equipment and oil and gas- to balance the trade.
    • US goods might become cheaper and more affordable for Indians.
  • Depreciation of Rupee: Could lead to a depreciation of the Indian rupee due to higher demand for US dollars.
  • Hamper consumption-led GDP growth in India:
    • Budget 2025 provided a Rs. 1 lakh crore worth tax break to Indian income tax payers, to boost domestic consumption and thus fuel GDP growth.
    • However, since it is targeted at the richest Indians, they may spend this tax relief on US products, especially if US products become suddenly cheaper.
    • Thus, the anticipated consumption boost to India’s GDP may not happen to the same extent as imagined by the government.
  • Adverse effect on Aatmanirbhar Bharat:
    • Domestic manufacturing could face pressure if US goods flood the Indian market.
    • Could slow down India's progress towards self-reliance.
  • India-US Relations:
    • Increased defense and energy purchases may strengthen bilateral ties.
    • US actions against allies like Canada and the EU indicate unpredictability in trade policy.

Way Forward

  • Monitoring US Decisions: India should wait for the US to finalize the tariff policy before reacting.
  • Strengthening domestic manufacturing: Enhancing industrial competitiveness to withstand external tariff pressures.
  • Balancing Trade Relations: India might increase its purchases of US goods, such as oil, gas, and defense equipment, to maintain positive trade relations.
  • Negotiating Fair Trade Terms: Engaging diplomatically to ensure balanced trade agreements with the US.

India-US TRUST Initiative

Context: India and the United States have launched a Transforming Relationship Utilizing Strategic Technology (TRUST) initiative during the recent visit of the Indian Prime Minister to the US. 

Relevance of the Topic: Prelims: Key facts about TRUST initiative. 

About TRUST initiative

  • U.S.-India TRUST (Transforming the Relationship Utilizing Strategic Technology) initiative will catalyse government-to-government, academia and private sector collaboration to promote application of critical and emerging technologies in areas like:
    • Artificial intelligence
    • Semiconductors
    • Quantum
    • Biotechnology
    • Energy
    • Space and 
    • Defence

Key Features of TRUST Initiative

1. Cooperation in critical minerals sector: 

  • Create robust supply chains for semiconductors, critical minerals and advanced materials. 
  • Launch of the Strategic Mineral Recovery initiative, a new U.S.-India program to recover and process critical minerals (including lithium, cobalt, and rare earth elements) from heavy industries like aluminum, coal mining and oil and gas.
  • Accelerate R&D and promote investment across the entire critical mineral value chain, as well as through the Mineral Security Partnership (MSP).
    • TRUST initiative follows India’s induction into the US-led Minerals Security Finance Network in September 2024 and the Minerals Security Partnership (MSP) in 2023. 

2. Cooperation in Pharmaceutical sector:

  • Encourage public and private investments to expand Indian manufacturing capacity, including in the U.S., for active pharmaceutical ingredients (API) for critical medicines. 
  • Create robust supply chains for pharma with focus on APIs, which often depend on critical minerals like lithium, magnesium, zinc, and selenium.
    • India is the world’s second largest manufacturer of APIs after China.
    • Pharma products made up the largest share (21.9%) of the $20 billion worth of final consumer goods that India exported to the US in 2023. 

3. Cooperation in Artificial Intelligence:

  • The U.S. and India will work together to enable:
    • industry partnerships and investments in next generation data centers
    • cooperation on development and access to processors for AI
    • innovations in AI models and building AI applications for solving societal challenges.
  • U.S. and Indian private industry to put forward a U.S.-India Roadmap on Accelerating AI Infrastructure by the end of 2025. 

Significance of TRUST Initiative

  • Enhance bilateral trade: Reduce barriers to technology transfer, address export controls, and enhance high tech commerce between India & the US in the critical minerals sector. 
  • Boost innovation: Catalyse collaboration among governments, academia and private sector to drive innovation in defence, artificial intelligence, semiconductors, quantum computing, biotechnology, energy and space. 
  • Diversify supply-chains: Investments in the pharma sector (API) will create jobs, diversify vital supply chains, and reduce the risk of life-saving drug shortages in both the US and India.
  • Counter-China: Position India and the US to counter China’s dominance in critical minerals supply chains.

While the TRUST initiative falls short of giving Indian companies tax benefits from the US Inflation Reduction Act (IRA) for battery components and critical raw materials – a privilege that is extended to Japanese companies – it still broadens the scope for collaboration significantly.

India-US Collaboration in Critical and Emerging Technology sectors:

1. initiative on Critical and Emerging Technology (iCET):

  • In 2022, India and the US had announced the initiative on Critical and Emerging Technology (iCET) 
  • Aim: To deepen technology cooperation, specifically on semiconductors, wireless communication, quantum computing artificial intelligence (AI), with a focus on defence and security-related applications.

2. Minerals Security Partnership (MSP): 

  • The MSP is a US-led collaboration of 14 countries that aims to catalyse public and private investment in critical minerals supply chains
  • In addition to the US, it includes India, Australia, Canada, Estonia, Finland, France, Germany, Italy, Japan, the Republic of Korea, Sweden, the UK, and the European Union (represented by the European Commission).

3. CHIPS Act Collaboration:

  • International Technology Security and Innovation (ITSI) Fund:
    • Created under the US CHIPS Act (2022).
    • Supports India's efforts to enhance its semiconductor ecosystem by funding critical infrastructure and R&D. 
    • Facilitates cross-border investments and diversification of global supply chains. 

4. INDUS-X Initiative:

  • Collaboration between: India's iDEX (Innovations for Defence Excellence) and the US Defense Innovation Unit (DIU).
  • Purpose: To promote innovation in defense technologies, including semiconductors for military applications.
  • Focus: Security-focused chip designs; applications in green energy and telecommunications.

Significance of Critical minerals in strategic sectors:

  • Critical minerals and REEs are essential for strategic industries, including defence, semiconductors, quantum computing, energy, and space. Examples:
    • Neodymium, praseodymium, and samarium: High-performance magnets used in missiles, fighter jets, and radars.
    • Lithium, cobalt, and nickel: Advanced batteries for energy storage and electric vehicles.
    • Gallium and indium: Semiconductors and AI hardware.
    • Ultra-pure silicon: Quantum computing.
    • Scandium: Space technology. 
    • REEs (Europium and terbium): Biotech imaging and medical diagnostics.

Present status in Critical Minerals

  • China controls nearly 70% of global REE production and much of the processing infrastructure, securing diversified supply chains is critical for technological sovereignty and national security.
  • India is a net importer of most critical minerals on account of their nil or limited reserve/production in the country.
    • The net import bill for critical minerals (excluding lithium) for FY24, was approximately ₹30,000 crore, with net phosphorous imports being the highest at ₹12,648 crore. 
    • Rare earth elements were the only segment in which India was a net exporter. 
  • In January 2025, India approved the National Critical Minerals Mission with a budgetary outlay of Rs 16,300 crore over seven years.
    • Rs 7,000 crore is allocated for exploration of critical minerals. 
    • Rs 1,500 crore for an incentive scheme to support the recycling of critical minerals. 

Read More: National Critical Mineral Mission 

Role of Assam in lifting India-Bhutan Ties

Context: Subnational diplomacy has increasingly become a vital aspect of India’s engagement with its neighbours, particularly in regions sharing borders with other countries. 

Relevance of the Topic: Mains: India and its Neighbourhood: India-Bhutan relations. 

About Subnational diplomacy

  • Subnational diplomacy or Para diplomacy is the diplomacy conducted by sub-state governments. It introduces the idea of decentralisation of political power to make regional governments prominent actors in the international sphere.
  • While foreign affairs remain under the purview of the Central government, States like Assam have demonstrated the potential of regional governments to influence cross-border relations and deepen economic and cultural ties. 
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India-Bhutan Relationship and Assam’s significance

  • Historical and diplomatic Ties: India and Bhutan share a special relationship, characterised by mutual trust, friendship, and economic cooperation.
    • The relationship is shaped by geopolitical factors, including Bhutan’s strategic location between India and China.
    • Prime Minister Narendra Modi’s visit to Paro in 2024 reinforced India’s commitment to strengthening bilateral ties, amidst reports of Bhutan’s growing engagement with China.
  • India-Bhutan Trade Agreement: India-Bhutan Agreement on Trade, Commerce, and Transit was first signed in 1972 and last revised in 2016.
    • The agreement establishes a free trade regime and provides duty-free transit for Bhutanese exports to third countries.
  • Economic Ties:
    • Trade Statistics (2022-23): India is Bhutan’s top trade partner, accounting for 73% of Bhutan’s total trade.
    • Bilateral trade volume: ₹11,178 crore. 
    • India’s exports to Bhutan: ₹8,509 crore.
    • Assam’s contributions: Major exports include bricks, LPG, rice, and motor spirit.
  • Potential Trade Expansion: 
    • Assam’s rich natural resources (tea, oil, Joha rice, Bhut Jolokia) offer further opportunities for exports to Bhutan.
  • New Integrated Check Posts (ICPs) (E.g., Darrange) and alternative trade routes can diversify trade beyond the Jaigaon Land Customs Station (LCS) in West Bengal, which currently handles 70% of India-Bhutan trade.
  • Connectivity and Infrastructure Development:
    • Assam-Bhutan border length: The Assam-Bhutan border length is 267 km.
    • Upcoming projects to boost connectivity:
      • Kokrajhar-Gelephu Railway Project (57.5 km): Expected to be completed by 2026.
      • Banarhat (India)-Samtse (Bhutan) Railway Link.
      • Dhubri River Port (Assam): It could facilitate Bhutan’s trade with Bangladesh, reducing cost and transit time.
      • Asom Mala initiative: Assam’s infrastructure development program aimed at improving roads and transportation links to the remote districts.
  • Energy Cooperation: Hydropower is Bhutan’s economic backbone (accounts for 63% of GDP).
    • There is a complementarity as Assam faces high power demand (2,879 MW in September 2024).
    • Existing Power Purchase Agreements (PPA), such as with the Nikachhu Hydroelectric Project, can be expanded to meet Assam’s energy needs.
  • Tourism and Cultural Collaboration: 
    • Potential for joint tourism initiatives, such as a unified tourism circuit connecting attractions in Assam and Bhutan.
    • Promoting eco-tourism and cultural tourism can enhance centuries old people-to-people ties.
  • Ecological and Environmental Cooperation: 
    • Joint conservation efforts between Manas National Park (Assam) and Royal Manas National Park (Bhutan) for wildlife and biodiversity protection.
    • Collaboration in sustainable resource management and cross-border environmental initiatives.

Bhutan is at a critical juncture, balancing its economic aspirations and territorial disputes with China. India’s continued diplomatic, economic, and infrastructural support is vital for maintaining strong ties. Assam’s active role in subnational diplomacy can act as a model on how Indian states can contribute to foreign policy initiatives. 

India-Indonesia Bilateral Relations

Context: Mr. Parbowo Subianto, the President of the Republic of Indonesia was the Chief guest in the Republic Day parade.

Relevance of the Topic:Mains: Bilateral Relations: India-Indonesia Relations. 

Key dimensions of India-Indonesia Relations

Key dimensions of India-Indonesia Relations
  • Civilisational and Cultural ties: India and Indonesia share deep-rooted civilisational links dating back to ancient maritime trade routes and cultural exchanges. For example, the Bali Yatra festival commemorates historical trade connections between India’s Odisha region and Bali, Indonesia.
    • Indonesia’s cultural elements, such as the Ramayana and Mahabharata, showcase Indian influence. 
    • Similarly, the spread of Hinduism and Buddhism in Indonesia emphasises on shared heritage.
  • Political and strategic cooperation: The Comprehensive Strategic Partnership (established in 2018) has focused on enhancing maritime security, regional stability, and geopolitical cooperation.
    • India and Indonesia conduct joint military exercises, such as the "Samudra Shakti" naval exercises, which strengthen defense coordination and ensure maritime safety in the Indian Ocean region.
    • Both countries cooperate closely in multilateral forums like ASEAN, G20, BRICS and the United Nations, highlighting their shared commitment to regional and global stability.
  • Economic cooperation: Bilateral trade has reached $29.4 billion in FY 2023-24, with the ambitious goal of increasing it to $50 billion by 2025. Key traded commodities include Indonesian palm oil, coal, and Indian pharmaceuticals and textiles.
    • India is the second-largest buyer of Indonesian coal, which supports India’s growing energy demands. 
    • There have been joint ventures in renewable energy, agriculture, and technology. For instance, Indian companies like Tata Power have invested in Indonesia’s coal and energy sectors.
  • Space cooperation: Both countries have collaborated on satellite technology and space exploration. For example, India’s ISRO assisted Indonesia in launching communication satellites, enhancing connectivity and disaster management capabilities in the region.
  • Health and education:
    • Health sector cooperation includes establishing healthcare facilities, hospital management training, and collaborative research on tropical diseases. 
    • Educational exchanges involve scholarships, such as those offered under the Indian Council for Cultural Relations (ICCR), and cultural programs to strengthen people-to-people ties. Indian universities attract Indonesian students pursuing higher studies.
  • Tourism:
    • Indonesia is a popular destination for Indian travelers, with over 650,000 Indian tourists visiting Bali in 2023 alone. 
    • Initiatives like the Visa-on-Arrival program facilitate seamless travel for Indians.
  • Role of the Indian diaspora:
    • The Indian diaspora in Indonesia plays a pivotal role in strengthening bilateral ties. Communities actively contribute to trade, banking, and education sectors
    • Events like Diwali celebrations by Indian expatriates promote cultural diplomacy and enhance goodwill.
  • Future outlook: The Comprehensive Strategic Partnership emphasises economic growth, maritime security, and regional cooperation as pillars of future engagement.
    • Indonesia’s strategic position in Southeast Asia makes it a cornerstone of India’s Act East Policy, ensuring sustained collaboration in the Indo-Pacific.

Areas of Future Collaboration

  • Research and Development (R&D) Partnerships:
    • India and Indonesia could collaborate on R&D to develop technologies that address specific renewable energy challenges. Innovations in energy storage, grid modernisation, and energy efficiency would benefit both nations. 
    • Indonesia could learn from India's advancements in solar technology, while India could benefit from Indonesia's expertise in geothermal exploration and bioenergy. 
  • Regional Energy Market Integration: 
    • Creating a regional energy market that connects Southeast Asia's and India's energy grids could facilitate shared renewable energy resources. 
    • Indonesia's interest in natural gas, particularly LNG, aligns with India's growing LNG demand.

India and Indonesia: Strategic Cooperation in the Indo-Pacific and beyond

Geopolitical importance of the Indo-Pacific:

  • Strategic location:  Indonesia’s position at the confluence of the Indian and Pacific Oceans places it at the heart of Indo-Pacific geopolitics. Its control over key sea routes like the Strait of Malacca gives Indonesia a pivotal role in global trade and regional stability. India's maritime interests align with Indonesia’s due to their shared concerns over securing critical waterways against external threats.
  • Geopolitical tensions: Rising tensions in the South China Sea highlight the need for collaboration to counterbalance external pressures and ensure freedom of navigation.

Military Strategy and Defence Cooperation: 

  • Defence Cooperation Agreement: During PM Modi’s visit in 2018, both countries concluded a Defence Cooperation Agreement. Indonesia is seeking to diversify its defence partnerships and India acquires salience here. India’s defence industry and defence exports are gaining traction with keen interest in the BrahMos system.
  • Joint Operations: Regular Coordinated Patrols (CORPAT) along the International Maritime Boundary Line (IMBL) emphasize operational synergy. The 43rd CORPAT (2024) symbolizes growing tactical alignment to counter piracy, smuggling, and illegal fishing.
  • Strategic framework: The 2018 "Shared Vision for Maritime Cooperation" serves as a roadmap for addressing evolving security threats. Collaborative efforts target both conventional (territorial disputes) and non-conventional (illegal fishing, trafficking) security challenges.
  • Naval strengthening: India and Indonesia focus on enhancing naval readiness to deter unlawful activities and secure maritime routes. Indonesia’s efforts for modernization of naval capabilities aligns with India’s push for regional maritime stability.

Shared Defence Priorities:

  • Freedom of navigation: Both nations advocate for the unrestricted movement of goods and military assets in the Indo-Pacific. Their shared stance opposes unilateral territorial claims of China and emphasis on adherence to international law.
  • Countering emerging threats: Efforts address piracy, illegal fishing, and other maritime crimes threatening regional stability. Present collaboration extends to managing contested waters and safeguarding trade routes critical to global supply chains.
  • Long-term goals: Secure the free flow of international trade and protect sovereignty against illegal incursions. Reinforce alliances with like-minded nations to counterbalance external power influences in the Indo-Pacific.

Multilateral Cooperation:

  • Cooperation in BRICS: Indonesia's membership of BRICS, granted in 2023, presents another avenue for collaboration. Much like India and Brazil on BRICS' platforms, India and Indonesia can leverage their partnership to bring strategic heft to this bloc. While Indonesia is unlikely to deviate significantly from Chinese preferences due to its deep economic ties with Beijing, Prabowo's autonomous policymaking tendencies pro- vide room for cooperation that transcends the "China factor".
  • ASEAN Plus Policy: In the past, Indonesia played a leading role in crafting ASEAN's Outlook on the Indo-Pacific (AOIP). This was instrumental in aligning the AOIP with India's Indo-Pacific Oceans Initiative (IPOI). Indonesia has committed to supporting the maritime resources pillar under the IPOI. By collaborating on projects within this pillar, the two nations can promote a pro-regional agenda beyond ASEAN, aligning with Prabowo's vision of creating an "ASEAN Plus" policy.
  • India-Indonesia-Australia trilateral: India and Indonesia, alongside Australia, already have a trilateral framework, though it lacks substantial content. It can build upon the IPOI and the Indian Ocean Rim Association (IORA), with India set to assume its chairmanship this year.
  • BIMSTEC: Indonesia should be invited to join the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) to integrate it better with India's eastern neighbourhood.
  • India-Japan-Indonesia Trilateral: Japan has recently expanded its Official Security Assistance (OSA) policy to include Indonesia, providing defence-related support. This opens the door for a potential India-Japan-Indonesia trilateral partnership.

By leveraging platforms such as BRICS, the IPOI, and trilateral frameworks with Australia and Japan, both India and Indonesia can forge deeper partnerships for the future. A robust India-Indonesia partnership has the potential to shape the strategic landscape of the Indo-Pacific and beyond.