Context: India’s Foreign Secretary is on a visit to China and has met the Chinese Foreign Minister in order to repair tieswith China. The countries plan to mark 75 years of diplomatic relations with celebratory events, focusing on reducing mutual suspicion and estrangement.
Relevance of the Topic: Prelims & Mains: Latest diplomatic developments between India & China.
Background:
Since 2020, direct flights, visas, pilgrimages, and other exchanges were suspended, after COVID-19 pandemic and military stand-off along the LAC, including the Galwan incident (June 2020).
During a series of Meetings between NSA and Foreign Minister Since October 2024, disengagement, de-escalation, and de-induction of troops were identified as essential steps:
Since then, disengagement has been completed in areas of Depsang Plains and Demchok.
De-escalation and de-induction are pending, with large troop deployments (50,000-60,000) still in place on both sides.
Key Takeaways from the Visit
After the recent negotiations to end to the military stand-off at the Line of Actual Control (LAC), India and China agreed to concrete measures in the following areas:
Resumption of flights and pilgrimages: India and China agreed to resume direct flights, visas, and the Mansarovar Yatra for pilgrims by summer 2025.
The Kailash Mansarovar yatra involves a visit to mount Kailash and Mansarovar lake in Tibet.
Trans-border rivers and hydrological data: Both sides agreed to revive discussions on trans-border rivers (Brahmaputra and Sutlej) and resume sharing hydrological data, which China had withheld for years.
Economic & trade discussions:
Talks were held on resumption of trade via Nathu La pass (connects Sikkim to Tibet).
The two sides addressed restrictions and concerns in economic relations, which include:
India’s concerns: India’s concerns about restrictions on pharmaceutical ingredients, high-tech exports, and critical equipment from China.
China's complaints: China has persistently complained regarding India’s investment policies, issuance of business visa to Chinese nationals and raids on Chinese telecom companies which has become an irritant in relationship.
China's Wishlist for normalising ties: Beijing has outlined specific demands to fully normalise the ties which include:
Resumption of direct flights.
Easing visa curbs for Chinese nationals (diplomats and scholars).
Lifting bans on Chinese mobile apps.
Allowing Chinese journalists to report from India.
Context: Trumps’ ‘America First Trade Policy’ is set to review existing US trade agreements and sectoral trade agreements. This holds significance for India, which recorded a $50 billion trade surplus with the US in 2023, compared to $25 billion in 2019.
The US has also indicated that appropriate measures will be taken to counter China’s currency manipulation.
Relevance of the Topic: Prelims: Trends of US-India trade; Generalised System of Preferences; Currency Manipulation
India-US Bilateral Trade
Trade Partnership:
The US is India’s largest trading partner.
The US is also one of the few countries with which India had a trade surplus in FY 2023-24.
In FY24, the bilateral trade between India and the US stood at a record US $ 118.2 billion, a slight decline from US$ 128.78 billion in FY22.
In FY24, India had a trade surplus of US$ 36.8 billion with the US.
The US is the 3rd largest investor in India with cumulative FDI inflows of US$ 65.19 billion from April 2000-March 2024.
India’s major exports to the US: Engineering goods, Electronic goods, Gems and Jewellery, Pharmaceutical Products, Light crude oil and petroleum, electrical, and others.
India’s imports from the US: Mineral fuels and oils, Pearls, precious, and semi-precious stones, Nuclear reactors, boilers and machinery, Electrical machinery etc.
America First Trade Policy and its Impact on India
Review of Trade deficit: Trump’s government is set to investigate US’s annual trade deficits in goods, as well as the economic and National Security implications of such deficits.
Tariff war:
During his first term, Trump imposed 25% tariffs on steel and 10% on aluminium from India and other countries, invoking National Security provisions.
He also revoked the Generalised System of Preferences (GSP).
Impact for India:
Vulnerability to tariffs:
India’s consumer goods exports, such as pharmaceuticals, gems and jewellery, and marine products, are particularly vulnerable to US tariffsdue to the trade imbalance.
India recorded a $50 billion trade surplus with the US in 2023, compared to $25 billion in 2019.
Impacts of GSP Revocation: Revoking the Generalised System of Preferences (GSP) impacts India, as the preferential trade agreement benefits India the most.
What is the Generalised System of Preferences (GSP)?
The GSP is a non-reciprocal preferential treatmentsystem through which developed countries eliminate or reduce duties on eligible products originating in developing countries.
Preference-giving countries unilaterally determine which countries and which products are included in their schemes.
Each developed country has customised its own GSP programme to identify qualification criteria it deems important for their economy.
GSP promotes economic development by eliminating duties on thousands of products when imported from a designated beneficiary countries and territories.
Is it WTO Compliant? Yes. The Enabling Clause under the World Trade Organisation is the legal basis for the Generalised System of Preferences.
What is Currency Manipulation?
The US has indicated that appropriate measures will be taken to counter China’s currency manipulation.
Currency manipulation happens when governments try to artificially tweak the exchangerate to gain an unfair advantage in trade.
The US Treasury department defines currency manipulation as when countries deliberately influence the exchange rate between their currency and the US dollar to gain "unfair competitive advantage in international trade".
Context: A World Bank appointed Neutral Expert (NE) has declared that he is competent to address the dispute regarding the Indus Water Treaty. Hehas backed New Delhi’s position on the framework to resolve certain disputes between India and Pakistan on Kishenganga and Ratle hydroelectric projects.
Relevance of the topic:
Prelims: Key facts about Indus Water Treaty; Dispute Resolution Mechanism in IWT.
Mains: Issues associated with the Indus Water Treaty and way forward.
Indus Water Treaty (IWT), 1960
Indus Waters Treaty is a water-sharing agreement signed in 1960 between India and Pakistan, brokered by the World Bank.
The treaty fixed and delimited the rights and obligations of both countries concerning the use of the waters of the Indus River system.
Sharing of water as per IWT:
Eastern rivers: Ravi, Beas, and Sutlej were allocated to India for unrestricted use.
Western rivers: Indus, Jhelum, and Chenab were allocated largely to Pakistan. India is permitted certain agricultural uses and can build 'run of the river' hydropower projects with limited storage.
Map not to scale
Dispute Resolution Mechanism in IWT
Permanent Indus Commission (PIC): Commissioners are appointed by both countries for cooperation and information exchange regarding their use of the rivers.
The treaty provides a 3-tier dispute resolution mechanism:
PIC is the first stage.
A neutral expert is the second stage.
The Court of Arbitration is the third stage.
IWT does not have a unilateral exit provision: The treaty is supposed to remain in force unless both countries ratify another mutually agreed pact.
Issues: There have been differences between India and Pakistan over:
the design of hydroelectric projects (Kishenganga and Ratle) and
the treaty’s dispute resolution mechanism.
Points of Difference: Difference lines in sequential mechanism interpretation:
India’s stand
Pakistan’s stand
- India’s stand is that the dispute resolution must go step-by-step— Permanent Indus Commission → Neutral Expert → Court of Arbitration.
- India opposes simultaneous resolution through Neutral Expert and Court of Arbitration (CoA) proceedings.
- India has ceased participation in Permanent Indus Commission meetings since May 2022.
- Pakistan has moved directly to the Court of Arbitration (CoA) bypassing the Neutral Expert without India’s concurrence.
- It continues with both mechanisms, citing treaty provisions.
Working of Neutral Expert (NE)
Neutral Expert: NE will hear both parties and decide if hydroelectric designs conform to the Indus Water Treaty.
NE proceeding does not invalidate the Court of Arbitration proceedings but operates within a technical scope.
Court of Arbitration: It has been convened by Pakistan; India however has boycotted its proceedings as they are premature.
Issues involved in Indus Water Treaty
Dissatisfaction over water apportionment: Long lasting dissatisfaction in India because 80% of the water is allocated to Pakistan.
Sub-optimal data sharing: Diplomatic tensions lead to suboptimal data sharing, and the quality of shared data is often questionable. There is no mechanism for the research community to access this data.
Ambiguous and room for Conflict:
The technical nature of the treaty and the fact that the western rivers flow through the conflicted region of Jammu and Kashmir pave the way for conflict.
Perceived impacts of infrastructure development on downstream flows, and Pakistan’s concerns as a lower riparian state.
Lack of Mutual Trust: A recent case in point is Pakistan’s accusation of water terrorism against India for the Shahpurkandi barrage project.
Limited role of Guarantor:
In disputes involving Krishanganga and Ratle Hydroelectric Projects, the World Bank had to appoint the Neutral Expert and chairman of the CoA, simultaneously. This concurrent appointment poses practical and legal risks.
Moreover, the World Bank lacks the power to decide which one should take precedence.
Climate Change:
In 2015, the Indus basin was ranked by NASA as the world’s second most over-stressed aquifer.
An estimated 31% of the net basin flow originates from climate-impacted glaciers and snow melts, making mean annual flows more volatile and seasonal.
Lack of adequate environmental safeguards inthe treaty to protect the environment.
Way Forward
Renegotiating the treaty: India has proposed revising the IWT, it however needs Pakistan’s formal engagement to move forward.
Addressing procedural differences:
The World Bank could play a more proactive role in bridging differences between the two countries.
Establish clarity on the sequential use of dispute resolution mechanisms.
Expedite the Neutral Expert's decisions on hydroelectric project designs to build confidence.
Resuming dialogue: Restart PIC meetings to foster bilateral discussions on treaty concerns.
Promoting open data policy encouraging open data policies to international supervisory bodies and other stakeholders to promote transparency and applied scientific research.
Adopting Ecological perspective:
It is essential to view the Indus River system as a cohesive geographical unit, benefiting all stakeholders.
An ecological perspective should be integrated into the governance framework of IWT, including the institutionalisation of Environmental Flows (EF).
Ratification of the UN Water Convention to ensure the sustainable use of transboundary water resources by facilitating cooperation.
International customary law, such as the 2004 Berlin Rules on Water Resources, also emphasises sustainability and ecological flows.
The 2013 Permanent Court of Arbitration's verdict on India's Kishanganga project underscores the obligation to release EFs in transboundary basins, setting a precedent for similar cases.
Both countries should undertake joint research on the rivers to study the impact of climate change for future cooperation, as underlined in Article VII of the IWT.
Additionally, a nuanced understanding of climate change and population pressures on the Indus basin's hydrology is needed. This includes developing a robust mechanism for real-time data-sharing between India and Pakistan, supervised by the World Bank, to ensure accountability and enhance policy-making.
Conclusion: Recognising climate change as a shared vulnerability and focusing on holistic basin management will strengthen the IWT, improving India-Pakistan relations and serving as a model for global transboundary climate cooperation.
Context: India and France have agreed to boost cooperation in “high-end technology sectors” and have discussed long-pending civil nuclear cooperation issues ahead of the Indian Prime Minister’s France visit in February 2025.
Relevance of the Topic: Prelims: Key facts about India France Civil Nuclear Cooperation; Civil Liability for Nuclear Damage Act, 2010.
India France Civil Nuclear Cooperation
An agreement on civil nuclear cooperation was signed between India and France in 2008. The agreement was signed shortly after India got the waiver from the Nuclear Suppliers Group (NSG) to engage in civil nuclear trade.
Nuclear cooperation between India & France:
France is involved in the construction of the Jaitapur Nuclear Power Project in Maharashtra. The progress however has been slow (agreed in 2009).
The two countries have also agreed to establish a partnership on Small Modular Reactors (SMR) and Advanced Modular Reactors (AMR).
NSG India-specific Agreement:
In 2008, the Nuclear Suppliers Group (NSG) agreed on an India-specific exemption to its nuclear export guidelines after complex negotiations.
Following the NSG India-specific agreement, civil nuclear cooperation agreements have since been signed with the US, Russia, France, Australia and Kazakhstan, among other countries.
Note: India is not a member of the NSG, the main reason being its refusal to sign the Nuclear Non Proliferation Treaty (NPT).
Impediments in India-France Nuclear Cooperation
Despite the robust framework for nuclear cooperation between India and France, several impediments hinder the progress of their collaboration:
Regulatory Challenges:
The Indian regulatory framework for nuclear energy is stringent, it requires extensive safety certifications and compliance with international standards.
E.g., Process of certifying European Pressurised Reactor (EPR) technology has been lengthy, which has slowed down project timelines and created uncertainties for investors.
Nuclear Liability law of India:
India’s Nuclear Liability law (Civil Liability for Nuclear Damage Act, 2010) has been a barrier to the growth of the nuclear energy industry.
India’s strict liability law places the burden of compensation for nuclear accidents on the plant operator, which can deter private companies from investing in nuclear power.
Also, according to the Act, the liability can be shifted from the operator to the vendor or supplier in case the accident is due to equipment or material.
This has created apprehension among potential foreign suppliers, delaying India’s ambitious nuclear energy plans. E.g., Nuclear liability is the major issue why the deal to install French EPRs at Jaitapur has not made progress.
Financial Considerations: The high costs associated with building and maintaining nuclear power plants pose a financial challenge. The Jaitapur project (with an estimated capacity of 990 MW) requires large investment.
Technological transfer: While both countries have committed to enhancing technological collaboration, concerns about intellectual property rights and technology transfer can create friction.
Shift in Focus: India and France are exploring cooperation in Small Modular Reactors (SMRs), potentially diverting focus from Jaitapur.
Civil Liability for Nuclear Damage Act (CLNDA), 2010:
India enacted CLNDA in 2010 to provide a quick compensation mechanism for victims of a nuclear accident.
The Act establishes a strict and no-fault liabilityfor nuclear plant operators, meaning they are liable for damage regardless of fault.
However, the operator of the nuclear installation, after paying the compensation for nuclear damage shall have the right to recourse where-
The nuclear incident has resulted as a consequence of an act of supplier or his employee, which includes supply of equipment or material with patent or latent defects or sub-standard services.
The nuclear incident has resulted from the act of commission or omission of an individual done with the intent to cause nuclear damage.
The operator will have to maintain a financial security to cover its maximum liability of ₹1,500 crore for civil nuclear damage and requires the operator to cover liability through insurance or other financial security.
In case the damage claims exceed ₹1,500 crore, the gap will be bridged by the Central Government. The government liability amounts to the rupee equivalent of 300 million Special Drawing Rights (SDRs) or about ₹2,100 to ₹2,300 crore.
Context: The Foreign Minister of Maldives is on a three-day visit to India to explore ways to bolster ties in key areas including maritime security, trade and investment.
Relevance: Mains: India and Neighbourhood relations: India-Maldives.
Key Takeaways from the Maldives Foreign Minister’s Visit to India
Strengthening of India-Maldives ties:
The visit focused on revitalising bilateral relations after a temporary strain due to political changes in the Maldives.
Both countries reaffirmed their commitment to enhancing cooperation in key areas such as maritime security, trade, and investment.
Agreement on local currency use:
A framework was finalised to promote the use of local currencies (Indian Rupee and Maldivian Rufiyaa) for cross-border trade, reducing dependency on third-country currencies.
High-Impact Community Development Projects (HICDP):
A Memorandum of Understanding (MoU) was signed to launch Phase III of the High-Impact Community Development Projects.
These projects, funded by Indian grant assistance, aim to benefit local communities directly at the grassroots level.
India’s Neighbourhood First Policy:
India emphasised that Maldives represents a very concrete expression of India’s neighbourhood first policy, reflecting India’s priority on close cooperation with its neighbors.
Progress on Comprehensive Partnership:
The two Ministers reviewed the progress made on agreements signed during Maldivian President Mohamed Muizzu’s visit to India in October 2024, which include initiatives under the Comprehensive Economic and Maritime Security Partnership and ongoing negotiations for a Free Trade Agreement (FTA).
India - Maldives: Evolution and Contemporary Issues
Importance of Maldives:
Strategic location: In the Indian Ocean, Maldives archipelago comprising 1,200 coral islands lies next to key shipping lanes of communication which ensure uninterrupted energy supplies to countries like China, Japan, and India. More than 97% of India’s international trade by volume and 75% by value passes through the region.
Regional Security: As the pre-eminent South Asian power and a 'net security provider' in the Indian Ocean region, India needs to cooperate with the Maldives in security and defense sectors.
Member of SAARC: It is important for India to have the Maldives on board to maintain its leadership in the region. The Maldives was the only SAARC country which seemed reluctant to follow India's call for a boycott of the SAARC summit in Pakistan after the Uri attack.
Blue Economy: The Maldives has an intrinsic role in advancing the blue economy through sustainable management and utilisation of marine resources.
Geo-political significance:
India has the ambition to be ‘Net-security provider’ in the Indian Ocean region and this calls for close military and naval ties with Maldives so that India protects its own interests as well of its neighbours in the Indian Ocean region.
China is rapidly expanding its footprint in the Maldives though it opened an embassy in the island nation only in 2011. Thus, it becomes geo-politically and strategically important for India to maintain its presence in Maldives.
Area of Cooperation between India and Maldives:
Economic Relations:
Tourism development: State Bank of India has been playing a vital role in the economic development of the Maldives since 1974 by providing loan assistance for promotion of island resorts, the export of marine products and business enterprises.
Financial Assistance:
India has provided substantial financial assistance to Maldives in the past, including US $ 100 million Standby Credit facility (SCF) to the Maldives and a ₹3,000 crore currency swap arrangement.
In 2018, India announced a $1.4 billion financial assistance to help Maldives manage its mounting debt.
Livelihood development: India developing High Impact Community Development Projects (HICDPs) in areas of livelihood and income generation, health, education, gender and child empowerment, sports and sustainable development.
Defence Relations:
Defence cooperation between India and Maldives ranges from training and joint combat exercises to help in maritime surveillance as well as the supply of military equipment to the country.
Exercise DOSTI: The focus of these exercises was on Maritime Search and Rescue (M-SAR), Humanitarian Assistance and Disaster Relief (HADR), Marine Pollution Response (POLRES), and Anti-piracy operations.
Exercise EKUVERIN: This bilateral annual exercise commenced in 2009 at Belgaum, India.
Humanitarian Assistance and Disaster Relief (HADR)
Operation Cactus: India saved Gayoom’s regime from a coup in 1984.
Post Tsunami: After the tsunami that struck the Maldives on December 26, 2004, India was the first country to rush relief and aid to the Maldives.
People-to-People relations:
Indians are the second largest expatriate community in the Maldives. About 25% of Doctors and Teachers in Maldives are Indian nationals.
India Cultural Center (ICC) in Male conducts courses in yoga, classical music and dance. Also, Hindi commercial films, TV serials and music are immensely popular in Maldives.
Present Challenges:
Chinese Investment & Maldives-China FTA:
Maldives’ growth is driven by massive infrastructure projects funded by China, including the development of Hulhule Island, Friendship bridge connecting it to Male etc.
Maldives has also signed an FTA with China. This raises concerns regarding Chinese debt-trap policy.
Political Instability: Internal political dynamics in Maldives lead to change in its foreign policy orientation. This has the potential to complicate its relations with India.
Religious Radicalisation: Its political instability has also challenged overall security of the Indian Ocean by increasing radicalisation, with reports of Maldivians joining the Islamic State.
Way Forward
Both countries need to enhance regional cooperation by using common platforms such as the Indian Ocean RIM Association and Indian Ocean Naval Symposium.
India needs to implement its ‘Neighbourhood First Policy’ with strategic sensitivity and keeping vigilance about China's growing influence.
Context: The Ministry of External Affairs (MEA) has rejected China's claims on Ladakhi territory.
Relevance of the topic:
Prelims: Location-based questions on point of contention.
Mains: India and China border issues and solutions.
Major Highlights:
Recently, China has announced the establishment of two new counties (He'an County and Hekang County) in Hotan Prefecture of China. Parts of the jurisdiction of these counties fall in India's Union Territory of Ladakh.
MEA has diplomatically communicated to China that India does not accept the illegal Chinese occupation of Indian territory in this area.
Also, MEA has raised concerns about China's Mega hydropower project in upstreams of Yarlung Tsangpo.
Yarlung Tsangpo is the chinese name of Brahmaputra river that enters India via Siang territory of Arunachal Pradesh.
About India-China Border Issue Disputes
China and India have had border tensions since the 1962 war, due to China's claims over Ladakh and Arunachal Prader under “Five Finger Policy”.
The Five finger policy was devised by China to legitimize its claims over Tibet and surrounding territories like Ladakh, Nepal, Bhutan, Sikkim and Arunachal Pradesh.
Further, in the 1962 war, China gained control over Indian territory renaming it to Aksai Chin.
Post war, the concept of “Line of Actual Control” (LAC) emerged, marking the patrolling points for both the nations.
Dokalam Issue: This issue emerged when China claimed the trijunction territory of Bhutan to articulate the geo-strategic interests in the region by risking security of the North-eastern region of India.
Galwan Valley Issue: In 2020, China violated the LAC to gain control over territories like Galwan valley, Daulat Beg Oldie and Shyok valley leading to clashes with Indian forces deployed in the region. After the clash both the nations are engaged in military and diplomatic dialogues to end the stand-off to achieve normalcy.
Overview of issues in India-China Relationship
Tail-tell borders: Lack of consensus over the borders leads to claims on territories by extending patrolling regions and changing names of territories. E.g., China unilaterally renamed 15 territories of Arunachal Pradesh in 2022.
Water Bomb: Development of the large dams on China side of Brahmaputra river leads to risk of a strategic water bomb to disrupt northeastern infrastructure by creating a man-made disaster.
Illegal settlements: China is building permanent infrastructure and illegal settlements in Ladakh and Arunachal Pradesh territories.
Trade balance: India has a high trade deficit with China posing a trade risk of dumping of goods.
Strategic Rivalry: China is associated with Pakistan in the CPEC project violating Indian Sovereignty and hampering strategic interests in Pakistan occupied Kashmir (PoK).
Cybersecurity concerns: China is working on quantum computing that can hamper the cybersecurity of India. Also, state-sponsored hacker groups of China like APT10 or Stone Panda or Red Apollo challenge India’s cybersecurity.
Suggestions to Improve Relations
Consensus on border: India and China should engage in diplomatic dialogue to come up with a consensus based map of territorial claims.
Buffer Dam: India should construct a dam on Brahmaputra to act as a buffer against threat of China’s water bomb
Satellite based analysis of the illegal settlements of China and diplomatically engaging to vacate them.
Revitalising Border infrastructure: India should enhance all-weather connectivity in the border and promote well being by providing economic opportunities to border villages.
Reducing trade deficits by promoting Indian industries by Make in India and Atma Nirbhar Bharat. Also, diversification of the import basket can resolve the issue of dependency on China.
Conclusion: India-China relations are marked by persistent border disputes, strategic rivalry, and concerns like trade imbalances and cybersecurity threats. To foster stability, both nations must prioritise diplomatic dialogue, resolve territorial claims, address water resource challenges, enhance border infrastructure, and reduce trade dependency while promoting regional peace and mutual economic growth.
Context: The Dhaka-based International Crimes Tribunal on October 17 issued arrest warrants for Ms. Sheikh Hasina (former Prime Minister of Bangladesh) and 45 others including former Cabinet ministers, advisers and military and civil officials. Bangladesh has recently formally requested India to extradite the former Prime Minister.
Relevance of the Topic: Prelims: Key aspects of India Bangladesh Extradition Treaty.
Background:
After leaving Dhaka on August 5, 2024, Ms. Hasina was declared an absconder for not surrendering. A first information report was filed on August 13, 2024, against her and other former associates.
She has been charged with conspiracy to eliminate the students involved in protests, and the mistreatment and killing of hundreds of the protesters, which are labelled as genocide and crimes against humanity.
Subsequently, on December 23, 2024, Bangladesh formally requested India to extradite former Prime Minister Sheikh Hasina, who fled to New Delhi amid anti-government protests in August 2024.
Legal Framework
Bangladesh's legal system allows for trials in absentia, but there are complexities regarding International law and Common law jurisdictions as accused must be present in Court (physical or virtual) for the trial.
India has not yet commented on the extradition request. India has a bilateral extradition treaty with Bangladesh but is not obligated to extradite Hasina due to claims of political offenses.
India's Supreme Court in National Human Rights Commission vs State Of Arunachal Pradesh & Anr. (1996) has ruled that non-citizens are entitled to protection of Article 21 under the Constitution, which could influence decisions regarding Hasina's extradition.
Options before India
House Arrest: India can place Hasina under house arrest while allowing her participation in her trial via video conferencing, ensuring cooperation with Bangladesh's investigation.
ICC Jurisdiction: ICC jurisdiction can be invoked due to the nature of the alleged crimes. However, since Bangladesh is pursuing domestic legal action, ICC intervention may not be necessary unless there are concerns about the fairness of the proceedings.
Refuse extradition: India can refuse extradition, citing lack of “good faith” or “interest of justice” and related concerns. Article 8 lists out multiple grounds for refusal including cases in which, an accusation has not been made in good faith in the interests of justice or in case of military offences which are not an offence under the general criminal law.
Way Forward for India
Maintain diplomatic engagement with the new government in Bangladesh.
Avoid hasty decisions to ensure long-term strategic and economic ties with Bangladesh.
Stand by Sheikh Hasina without openly antagonising the interim government.
Leverage the structural linkages with the party in power as well as association and geographic realities to sustain favorable relations.
Ultimately, the decision to extradite is going to be political and diplomatic and not legal.
India Bangladesh Extradition Treaty
Establishment: Signed in 2013 and amended in 2016 for faster and easier extradition of fugitives between the two countries.
Background:
India sought the treaty to address insurgents from the North-East operating from Bangladesh.
Bangladesh aimed to address the presence of groups like Jamaat-ul-Mujahideen Bangladesh (JMB) in India.
India extradited Anup Chetia, a United Liberation Front of Assam (ULFA) leader, in 2015.
Provisions of the Treaty:
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).
Includes attempts, aiding, abetting, inciting, or participating in the commission of an extraditable offence.
Exceptions:
Extradition can be refused if the offence is of a political nature.
However, the treaty specifies a long list of offences not considered political, including:
Murder, culpable homicide, assault, explosions, use of firearms, property damage intending to endanger life, kidnapping, hostage-taking, incitement to murder, and terrorism-related offences.
Amendment in 2016 to Simplify Extradition Process
Requirement to provide evidence of the offence was removed; only an arrest warrant from a competent court is now required.
Since Sheikh Hasina faces multiple arrest warrants issued in Bangladesh, it makes her case eligible under the amended treaty.
Key Principles:
Both countries commit to extraditing individuals wanted by courts for criminal charges, prosecution, or conviction in the requesting country.
The treaty intends to enhance cooperation in combating terrorism and transnational crime.
Context: The Ministry of Commerce has released data on Indo-Australian Trade relations, as nations visited the 2 year milestone of Indo-Australian Economic Cooperation and Trade Agreement (ETCA) trade deal.
Relevance of the topic:
Prelims: Basics of FTA, CEPA and ETCA.
Mains: Dynamics related to Indo-Australian trade relations; Issues related to CEPA.
Major Highlights:
Export utilisation of Indo-Australian Economic Cooperation and Trade Agreement (ETCA) has reached 79%. While the import utilisation has reached 84%.
Trade Utilisation of a free trade agreement (FTA) indicates the extent to which the trade benefits from the agreement.
It provides insights into whether businesses are effectively leveraging the FTA or finding its concession procedures burdensome.
Data also reveals that the trade between India and Australia has declined.
As compared to $4.89 Billion during six months from April to September 2023, exports to Australia have declined to $3.99 Billion in the same period during 2024, marking a 18% decline.
Imports also witnessed an 18% decline during the same period.
About Economic Cooperation and Trade Agreement (ECTA)
Economic Cooperation and Trade Agreement is a bilateral trade agreement aimed at enhancing the economic ties between India and Australia.
It was signed on April 2, 2022 and came into force in December 2022
Key aspects of ETCA:
Tariff Reduction: Australia eliminated 96% tariffs on Indian goods. While India offered concessions in coal, wine and agricultural produce to Australia.
Market access: Both nations provided market access to sectors like pharmaceuticals, education, healthcare and information technology.
Enhanced professional mobility: Indian IT and healthcare professionals gain improved access to the Australian market.
Rule of origin: Agreement includes rules of origin clause to avoid benefits to any third party.
ETCA can be considered as the foundational stone for the upcoming Comprehensive Economic Cooperation Agreement (CECA).
About Comprehensive Economic Cooperation Agreement (CECA)
The Comprehensive Economic Cooperation Agreement is an extension of the ETCA, for which negotiations are undergoing between India and Australia.
It aims at broadening the scope of the agreement including areas like investment protection, intellectual property rights (IPR), digital trade, government procurement and regulatory framework.
Key Goals of CECA:
Comprehensive access to goods-services across various sectors involving finance, education, medical etc,.
Enhanced mobility for skilled professionals, students and workers between the two nations.
Digital trade collaboration to boost e-commerce
Innovation collaboration in sustainable means like clean energy.
Concerns regarding CECA
Agriculture and dairy sector farmers in India are apprehensive about increased Australian agriculture products reading their income due to competition.
Labour mobility issue: India wants IT professionals, paramedic staff, students and workers to have free mobility. But Australia opposes these conceptions due to concerns of locals.
IPR: Australia wants a strict IPR regime, while India on the other hand is concerned about these stricter norms as it can impact the generic drug market of India.
Current status: Negotiations for the CECA began following the success of the ETCA. Both countries have expressed strong political will to finalise the agreement, though there are certain sensitive issues like agriculture, intellectual property rights and labour mobility that require comprehensive discussion and consensus.
Conclusion: Both ETCA and CECA are crucial for boosting the trade between India and Australia. But concerns of farmers, labourers and professionals need to be taken under consideration with a detailed discussion. A well discussed development of CECA will open a new route for the Indo-Pacific Economic Framework (IPEF).
Context: Defence-Industrial Cooperation has become a major focus area between India and Saudi Arabia, as they further deepen the relationship and explore joint ventures and collaborations.
Relevance of the Topic:Mains: Bilateral Relations: India-Saudi Arabia.
Aspects of Defence Cooperation
India and Saudi Arabia aim to enhance defence ties through technology transfer, joint ventures, and exchange of expertise. Both nations are focused on localising defence production.
Saudi’s Vision 2030 aims to localise 50% of its defence spending.
India has localised many defence technologies and is willing to share them with Saudi Arabia.
India has opened its defence sector to Saudi investments, advocating the ‘invest, trade, localise’ approach.
India’s defence exports to Saudi Arabia:
Saudi Arabia has procured the 155mm Advanced Towed Artillery Gun System (ATAGS) from Bharat Forge. It has evaluated additional artillery systems from Indian manufacturers.
Saudi Arabia has recently signed a $250 million ammunition contract with India’s Munitions India Limited. Saudi companies are keen on partnerships in shipbuilding, electronics, AI, and cybersecurity.
Joint Exercises:
Sada Tanseeq: Inaugural joint military exercise held in Rajasthan in 2024.
Al Mohed Al Hindi: Bilateral Naval exercise commenced in 2022.
Tarang Shakti: Saudi participated as an observer in India’s largest air exercise.
Importance of Saudi Arabia to India
Energy Security:
Saudi Arabia is India’s second largest supplier of crude oil (~18% of the total import). India also sources ~32% of its LPG requirements from Saudi Arabia.
Saudi Arabian oil major ARAMCO has decided to partner in the Ratnagiri Refinery and Petro-Chemical Project in Maharashtra, a Joint Venture of US$ 44 billion billed as the world’s biggest.
Bilateral Trade & Investment:
Total bilateral trade is around $43.3 billion, in 2023-24. India is the 4th largest trading partner of Saudi Arabia.
Saudi Arabia had expressed intent to invest about $100 billion in India.
Saudi Arabia identified India as one of the Kingdom’s 8 Strategic Partner Countries under ‘Vision 2030’ to reduce Saudi Arabia’s dependence on oil and diversify its economy.
Socio-cultural Relations:
Of the 11 million Indians working in West Asia, 2.65 million are in Saudi Arabia.
Saudi Arabia is a source of foreign remittances (up to $11 billion annually).
India has the world’s 3rd largest Muslim population that’s why Saudi [have Islam’s holiest sites Mecca & Medina] becomes important in India’s strategic calculus.
Strategic and Security Cooperation:
Riyadh Declaration (2010) has raised the level of partnership to strategic partnership which will help to tackle terrorism and radicalization.
Both cooperate on ensuring the security and safety of waterways in the Indian Ocean region and the Gulf region.
Global Cooperation:
India and Saudi Arabia have been working together within the G20 to reduce inequality and promote sustainable development.
Both sides cooperate in climate change, green energy and disaster management.
Context: In February 2024, the Ministry of Home Affairs (MHA) announced its decisionto scrap the Free Movement Regime (FMR) between India and Myanmar. However, the formal orders on ending FMR are still awaited.
Relevance of the topic:
Prelims: Free Movement Regime (FMR) between India and Myanmar
Mains: Bilateral relations: India-Myanmar.
Background:
India and Myanmar share a largely unfenced1,643 km border, which goes through the states of Manipur, Mizoram, Assam, Nagaland and Arunachal Pradesh.
February 2024: The Ministry of Home Affairs (MHA) announced the scrapping of the Free Movement Regime(FMR) between India and Myanmar.
FMR was being scrapped to ensure the internal security of the country and to maintain the demographic structureof India’s northeastern States.
MHA also announced that a fence will be constructed along the entire border.
However, these were verbal announcements on ending FMR and formal orders are still awaited.
December 2024: MHA has released new guidelines “Instructions for regulation of cross-border movement of people of border area across the Indo-Myanmar Border (IMB)” to introduce stricter regulations such as reducing the range of free movement from the earlier 16 km to the present 10 km.
What is the Free Movement Regime?
The Free Movement Regime along the India-Myanmar border came into existence in 1968 shaped by the deep ethnic and familial connections between residents of India and Myanmar’s Chin state.
The Mizo, Kuki, and Chins, collectively known as Zo people (on either side of the border) share a common ancestry and robust ethnic ties.
The border between India and Myanmar was demarcated by the British in 1826 which resulted in the dispersion of Zo people across international boundaries.
Earlier, the territorial limit of free movement along the borders was 40 km, which was reduced to 16 km in 2004, and additional regulations were enforced in 2016.
What are the New Guidelines?
Recently, the Ministry of Home Affairs has brought in fresh protocol to regulate the movement of people living within 10 kilometres on either side of the largely unfenced international border.
According to the new guidelines, a resident crossing the border from India to Myanmar will be given a “border pass” by the Assam Rifles for stay up to seven days in the neighbouring country.
The Assam Rifles is the primary border guarding force along the India-Myanmar Border.
For entry into India from Myanmar, individuals will have to report at the designated border crossing points and fill a form.
The Assam Rifles will conduct the document inspection followed by a security and health check by the State police and health department officials, respectively.
The Assam Rifles will upload all the forms on the Indo-Myanmar Border portal, record biometrics and issue a border pass with a photograph of the applicant and a QR code.
The pass will have to be deposited on return at the same crossing point before completion of seven days. The same process will be followed for Indians who want to visit Myanmar.
The police will do physical checks to verify the visit of Myanmar nationals as per the details provided in the border pass and anyone violating the conditions will face legal action.
Challenges in implementing FMR:
The implementation of the FMR was never robust, as there are no standard documents or border pass recognised by both the countries.
Some Indian states (Nagaland and Mizoram) and civil society groups have opposed the scrapping of FMR.
Given the interests of the local population, neither the complete removal of the FMR nor full fencing of the border may be desirable as livelihoods will be impacted, and essential travel for health care and education may be hit. However, the reconsideration of the FMR is grounded in the unsettling realities of insurgencies, smuggling, the drug trade, and the increased influx of Myanmar nationals following the 2021 coup.
Context: The Indian Prime Minister recently concluded a two day visit to Kuwait. The two nations agreed to elevate their bilateral relationship to a “Strategic Partnership.”
Strategic Partnership: Both leaders agreed to elevate India-Kuwait relations to a ‘Strategic Partnership’ to enhance cooperation across various sectors viz. political, trade, defense, security, and cultural areas.
Joint Commission on Cooperation (JCC): A JCC was established to monitor bilateral relations, headed by the Foreign Ministers of both countries.
Joint Working Groups (JWGs): New JWGs were formed in areas of trade, investment, education, and security to facilitate cooperation.
Trade relations: Both sides emphasised the importance of trade and discussed enhancing bilateral trade and investment opportunities in various sectors like infrastructure and food parks.
Energy cooperation: Discussions included transforming energy cooperation into a comprehensive partnership. Kuwait's membership in the International Solar Alliance was welcomed as a step towards sustainable energy collaboration.
Defence cooperation: An MoU was signed to strengthen defense ties through joint exercises, training, and development of defence technology.
Counter-terrorism: Both countries condemned terrorism and agreed to enhance cooperation in counter-terrorism efforts.
Health: The visit reinforced health cooperation, including Indian pharmaceutical manufacturing in Kuwait.
Cultural exchange: A Cultural Exchange Programme for 2025-2029 was renewed to promote arts and cultural ties.
Sports cooperation: An Executive Programme for sports cooperation was signed for 2025-2028.
Order of Mubarak Al Kabeer’: The Amir conferred upon the Indian Prime Minister Narendra Modi the highest award of Kuwait, ‘The Order of Mubarak Al Kabeer’.
Importance of Kuwait for India:
Historical: Kuwait and India have enjoyed cordial relations since the beginning. Geographical proximity, historical trade links, cultural affinities have all continued to nurture the longstanding relationship.
Kuwait and India are the members of Non-aligned Movement (NAM).
Both share identical views on various regional and international matters and have been cooperating with each other in international forums.
High level discussions and consultations between the two friendly countries is a regular feature of bilateral relations.
Until 1961, the Indian currency note – the Rupee was a legal tender in Kuwait.
Present context:
Location: Its geopolitical location in the Persian Gulf and its image as a neutral player in the region make it a significant player for India.
Economic Security: Kuwait has a $924 billion sovereign wealth fund and is also a founding member of blocks like OPEC and GCC.
Gulf Cooperation Council: Kuwait can play a significant role in India’s engagement with the GCC. India intends to sign a Free Trade Agreement with GCC.
Energy Security: Kuwait supplies about 3% of India’s crude oil requirements, both nations plan to transform energy ties from a buyer-seller dynamic to a comprehensive partnership, including collaborations in oil, gas, and renewable energy. Kuwait has expressed interest in India’s Strategic Petroleum Reserve Programme.
Diaspora: There is a strong 1 million Indian diaspora contributing to “talent, tech and tradition” in Kuwait.
India’s Foreign Policy towards West Asia
‘Extended Neighborhood’: India considers the Kuwait as part of its ‘extended neighborhood’.
Look West Policy: It was adopted in 2005 to deepen cooperation with West Asian countries and meet India’s national interests in the region.
Context: Recently, the Indian Minister of Foreign Affairs told the Parliament that India and China ties are set in the direction of improvement. He credited continuous diplomatic engagement and a step-by-step approach with China in achieving disengagement at the border; the situation which had been abnormal since 2020.
Relevance of the Topic: Mains: India and its Neighbourhood: India-China Relations.
Recent Developments:
In an agreement announced on 21 October 2024, the Indian Army, and People’s Liberation Army (PLA) forces agreed to disengage troops at Demchok and Depsang and proceed towards de-escalating tensions along the Line of Actual Control (LAC).
As a result of this recent understanding, the disengagement from all friction points at the LAC has now been fully achieved. The next priority is de-escalation, or the withdrawal of troops from the area, along with management of border areas.
India-China Special Representative Mechanism:
India-China Special Representative Mechanism wasconstituted in 2003 to comprehensively address the vexed dispute of the India-China border spanning 3488 km. The SRs mechanism over the years had met 22 times till 2019.
Recently, the Special Representatives from both sides met after five years (December 2024) to discuss various issues like discussing border issues, affirming outcome of LAC disengagement, restoration of bilateral ties, discussions regarding resumption of Man Sarovar yatra and to discuss border trade.
However, Critics argue that some Key Issues are Remaining:
Terms of disengagement: There is no definitive information on terms of disengagement in Depsang and Demchok along with uncertainty over Indian troops resuming patrolling at traditional points (Depsang Plains, Charding La, CNN junction).
Patrolling dynamics: Extent of Chinese patrols on the Indian side of the LAC remain unanswered, similarly:
The concept of coordinated patrolling and its impact on Indian patrol size and frequency.
Effects of temporary and limited steps on Indian patrol access and grazing grounds.
Concerns regarding status quo: Despite the government’s stance, the status quo along the border appears altered by China since April 2020. Various military experts indicate restricted access to traditional patrolling points.
Buffer Zones and Territorial Impact: Creation of buffer zones has territorial implications for India. There is a need to prioritize restoring status quo ante for patrolling and grazing.
Eastern sector concerns: Reports of Chinese patrols in Yangtse (Arunachal Pradesh) have not been addressed.
Policy Consistency: While the Army reiterates the need for April 2020 status quo, the MEA no longer mentions restoration of status quo ante, which could risk China’s grey-zone advancements.
Significance of Stable Relations with China:
Enhanced Border Stability: De-escalation would prevent future clashes & allow resources to be diverted to developmental priorities.
Economic Interests:
A stable relationship is crucial as China is India's largest trading partner and 3rd largest export market.
2/3rd of India’s total Active Pharma Ingredients is sourced from China.
Energy Security:
Cooperation with China is necessary to receive hydrological information of transborder rivers (Brahmaputra) to secure India’s Hydroelectric potential.
Being two major importers of oil in Asia, their cooperation would increase their bargaining power to avoid “Asian Premium”.
China controls ~90% of global rare-earth metals production. >80% of Solar modules and cells are imported from China. They are crucial to emerging technologies (renewable energy and electric vehicles).
Geopolitical Leverage:
China’s support is necessary for India’s Nuclear Suppliers Group membership.
Resolving disputes boosts India’s credibility, enhancing its bid for permanent UNSC seat.
Counterbalancing Western Dominance:
India and China can challenge Western hegemony, pushing for reforms in WTO, IMF, and UN.
It could promote balance of power within Asia and deter aggressive policies by the West.
Way Forward:
Strengthen diplomatic dialogue: India should prioritise continuous diplomatic dialogues with China to solidify the agreements reached and prevent future escalations and misunderstandings.
Enhance border infrastructure and defence preparedness: India should invest in improving border infrastructure and logistics to support troop mobility and supply lines.
Transparency and consensus-based decisions: There is a need for greater transparency from the government, at the same time opposition should avoid politicizing the issue and aim for a broad consensus on China policy.
Past examples (1996 and 2005 agreements) show effective collaboration when Opposition was briefed confidentially.
Respect consistent position: India’s consistent position is that “the maintenance of peace and tranquility in border areas is a pre-requisite for the development of our ties” which needs to be conveyed.
While challenges persist due to China's assertive policies, sustained diplomatic engagement and strategic preparedness is crucial for securing India’s interests and ensuring regional balance in Asia.
