Syllabus: GS-II.

Source: The Hindu

Subject: International Relations

Topic: Bilateral Relations

Issue: PM skipping the Annual Meet with Russia.

Context: With Prime Minister Narendra Modi skipping Russia for the annual summit for the second year in a row, External Affairs Minister S. Jaishankar on Monday reached Moscow on a five-day visit to meet the Russian leadership.

Synopsis:

• External Affairs Minister Jaishankar’s visit shows that India and Russia remain strong partners despite Western sanctions on Russia.
• The annual summit didn’t happen in 2022 due to the war in Ukraine.
• Talks focus on issues like how to pay for trade, Russia’s increased oil sales to India, and delays in defense equipment supply.
• Both countries want to strengthen their special partnership in areas like economics and culture.
• Discussions cover a wide range, including trade, energy, defense, and connectivity.
• India depends on Russia for a lot of its defense needs and is buying Russian oil at lower prices due to the war.
• India is careful in its response to the Ukraine conflict, expressing concerns without outright condemning Russia.
• The visit also reflects India’s diplomatic stance on global issues like the Ukraine conflict and events in Gaza.
• Overall, the meeting shows India and Russia sticking together despite challenges, emphasizing the importance of their partnership amid global changes.

Historical Background:

• During the Cold War, India and the Soviet Union had a robust strategic relationship. After the Soviet Union’s dissolution, Russia inherited this bond, resulting in a Special Strategic Relation. However, recent years, especially post-Covid, saw strained ties, partly due to Russia’s close relations with China and Pakistan, causing geopolitical issues for India. Political Relations: Annual meetings of Inter-Governmental Commissions on Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC) and Military-Technical Cooperation (IRIGC-MTC). Defence and Security Relations: Regular Tri-Services exercise ‘INDRA.’ Joint military programs cover BrahMos cruise missile, 5th gen fighter jet, Sukhoi Su-30MKI, and hardware like S-400 Triumf, Kamov Ka-226, T-90S Bhishma, and INS Vikramaditya. Nuclear Energy: Construction of Kudankulam Nuclear Power Plant (KKNPP) under the Russia-India Inter-Governmental Agreement. Joint implementation of the Rooppur Nuclear Power Project in Bangladesh.

Source: The Hindu

Syllabus: GS-II

Source: The Hindu

Subject: International Relations

Topic: Important International institutions

Issue: Trade Deficit with ASEAN Countries.

Context:  India seeks to narrow the trade deficit, currently standing at $43.57 billion, by revamping the ASEAN India Trade in Goods Agreement (AITGA) by 2025.

Synopsis:

• Since the implementation of AITGA in 2010, India’s trade deficit with ASEAN has surged from $7.5 billion to $43.57 billion.
• India’s exports to the region in 2022-23 were valued at $44 billion, while imports were at $87.57 billion.

Objective:

A comprehensive revaluation of the entire FTA is planned, focusing on India’s trade deficit with the region and to enhance market access for Indian businesses

• The Commerce Department has collected inputs from various industry sectors regarding tariff and non-tariff barriers faced in ASEAN.
• Sectors requiring attention include chemicals, alloys, plastics, rubber, minerals, leather, textiles, gems, and jewelry.
• Changes in the Rules of Origin (ROO) will be incorporated to increase market access and prevent re-routing of goods through ASEAN countries.
• The modernized AITGA will include a chapter on trade remedies to safeguard domestic industries against unfair trading practices or unforeseen surges in imports.
• Areas such as environment, labor, MSMEs, or gender will not be added to prevent unnecessary complexities.

The negotiations represent a strategic move to align the FTA with the evolving economic landscape.

Conclusion: The upcoming negotiations for AITGA modernization signify India’s commitment to addressing trade imbalances and enhancing market access. The comprehensive review, focusing on specific sectors and introducing modern elements, aims to make the existing pact more efficient. The exclusion of new areas reflects a strategic approach to streamline the negotiations and achieve a balanced outcome, benefiting both India and ASEAN.

ASEAN Significance for India:

ASEAN, comprising ten member nations, accounted for 11.3% of India’s global trade in 2022-23.

• It constitutes the 3rd largest market in the world. This can help India utilize its export potential.
• ASEAN is a crucial component of India’s “Act East” policy and its “Indo-Pacific” strategy, reflecting the convergence of interests in the region.
• Strengthening relations with ASEAN countries can serve as a counterbalance to China’s influence in the region.
• Connectivity with the North East can boost economic development by positioning them as a hub for regional trade and commerce.

Important for rule-based order: ASEAN plays a central role in promoting a rules-based security architecture in the Indo-Pacific region, which is essential for the region’s stability and prosperity.

Source: The Hindu

Syllabus: GS-III

Source: Indian Express

Subject: International Relations

Topic: Important International institution agreements involving India and/or affecting India’s interests.

Issue: First Rupee Payment for Oil.

Context: India, a major energy consumer, has executed rupee settlements for crude oil purchases from the UAE, advancing its strategy to diversify sources and explore non-dollar transactions.

Synopsis: 

1. Rupee Payments for Oil Imports:
   • Indian Oil Corporation (IOC) successfully conducts a significant rupee payment for crude oil from Abu Dhabi National Oil Company (ADNOC).
2. Strategic Sourcing Approach:
   • India, highly dependent on oil imports (over 85%), strategically sources from the most cost-effective suppliers, diversifies its supply chain and ensures compliance with international obligations.
3. Rupee’s Global Role:
   • To promote the rupee in cross-border transactions, the Reserve Bank of India facilitates rupee settlements with banks across multiple countries.
   • India urges major oil-exporting nations like the UAE and Saudi Arabia to consider the Indian currency for trade settlements.
   • India contemplates extending similar arrangements with other nations, aiming to increase rupee-based transactions for economic resilience.

Conclusion:

India’s adoption of rupee settlements for oil trades signifies a strategic move to reduce dollar dependency, cut costs, and contribute to the internationalization of its currency. Despite challenges, this aligns with India’s broader goals of securing cost-effective energy supplies and strengthening economic resilience globally.

Similar Agreements:

• India actively pursues replicating its successful rupee settlement model with various countries, aiming to boost exports, enhance the global role of the Indian rupee, and reduce dependence on the dollar.
•  Following the real-time link success with Singapore, ongoing discussions with France and Japan exemplify India’s commitment to extending these arrangements.
• Efforts to finalize a similar arrangement with Russia faced hurdles. Moscow expressed reluctance to hold Indian rupees, citing concerns about accumulating an annual surplus exceeding $40 billion due to limited convertibility.
• The Reserve Bank of India’s proactive approach is evident in permitting banks to settle trade in Indian rupees with 18 countries last year, showcasing the nation’s commitment to fostering economic cooperation through currency agreements.

Source: Indian Express

Syllabus: GS-III

Subject: International Relations

Topic: Important International institution agreements involving India and/or affecting India’s interests.

Issue: Russian Oil Imports.

Context: India’s petroleum ministry has highlighted the crucial role of Russian crude imports in preventing a surge in global oil prices after Moscow invaded Ukraine in February 2022. Otherwise, it would have faced potential havoc in the market without this strategic move.

Synopsis:

Oil Dependency and Russian Imports:

• Amidst Western sanctions following the Ukraine invasion, India increased its oil imports from Russia at discounted rates, preventing potential disruptions that could have led to a $30-40 per barrel price hike.
• India, the third-largest global oil consumer, heavily relies on imports for over 85% of its crude oil needs.
• The 1.95 million barrels per day imported from Russia played a crucial role in maintaining stability in the oil market.

Diplomatic Stand:

• India defended its decision to continue buying Russian oil, asserting its sovereign right to make decisions based on national interests and economic considerations.
• Indian refiners capitalized on deep discounts offered by Russia, leveraging the country’s refining capacity of over 250 million tones per annum.

Challenges:

• Western sanctions on Russia presented challenges for Indian refiners, impacting logistical arrangements, payments, and insurance.
• Economic sanctions led Indian buyers to opt for delivery-based arrangements, where sellers take responsibility for delivering crude oil to Indian ports.

Conclusion:

• India’s strategic decision to increase Russian oil imports not only served its national interests but also played a vital role in averting a potential global oil market crisis.
• Despite challenges posed by Western sanctions, India remains resolute, emphasizing its sovereign right to secure oil supplies based on economic considerations and market dynamics. The country’s approach underscores its commitment to navigating global challenges while safeguarding its energy security.

Few Facts to know :

Current Oil Scenario in India:

India, the third-largest global oil consumer at 5 million barrels/day, faces rising demand, importing 212.2 million tonnes of crude oil in 2021-22, causing an 86.4% import dependence in April 2022-23.

Initiatives to Reduce Oil Imports:

Efforts to enhance domestic production include policies like the Production Sharing Contract Regime, Discovered Small Field Policy, HELP, NELP, etc. The Ethanol Blending Programme aims to cut dependence, with the E20 target advanced to 2025.

Source: Indian Express

Syllabus: GS-II; Polity & Governance

Subject: Governance

Topic: Welfare schemes for vulnerable sections of the population

Issue:  The female Labour Force Participation Rate

Context: As per the Periodic Labour Force Survey (PLFS), published by the Ministry of Statistics and Programme Implementation, the female Labour Force Participation Rate has increased in the country in recent years.

Highlights of the Survey:

• FY 2023-24: MGNREGS sees a record high of 59.25% women participation, up from 57.47% (2022-23) and 53.19% (2020-21, during COVID-19).
• Women contribute 141.37 crore person-days out of 238.62 crores, showing a positive trend.
• Southern states like Kerala and Tamil Nadu have high participation (above 70%), while northern states like Uttar Pradesh hover around 40%.
• In 2023-24, Jammu and Kashmir, Lakshadweep, Uttar Pradesh, Madhya Pradesh, and Maharashtra record the lowest women participation rates, with some improvement in Uttar Pradesh, Madhya Pradesh, and Lakshadweep.
• PLFS data shows a rise in Female LFPR in rural areas, increasing from 18.2% (2017-18) to 30.5% (2022-23). Female unemployment rate drops from 3.8% (2017-18) to 1.8% (2022-23).

Background: 

• MGNREGA,2005 guarantees the “right to work” for a minimum of 100 days of unskilled employment to all willing rural citizens, at the government-set minimum wage.
• If work is not assigned within 15 days, the applicant is entitled to receive an unemployment allowance.
• Section 17 of the MGNREGA has mandated a social audit of all the works executed under the MGNREGA.

Source: Indian Express