Africa

Somalia signs pact on convicts

 Opening a new front for collaboration in anti-piracy operation in Eastern Africa, India and Somalia
 India extended development assistance to Somalia which has included mini buses to the war-battered country.
 Somalia had participated in the 2015 India-Africa Forum Summit.

INDIA-EAST AFRICA
 Vice-President paid official visit to Rwanda and Uganda
 First high level visit to Uganda from India since 1997 and first high-level visit to Rwanda.
 India-Rwanda: BASA enabling direct flights, entrepreneurial development centre, Innovation Program
 Exemption of visa for entry of diplomatic and official passports.
 Rwandan government also wants Bollywood films to be shot here
 Vice president also paid tribute to the victims of the 1994 massacre at the Kigali Genocide Museum

India-Uganda
 Vocational training, space and peaceful uses of atomic energy.
 Tele-medical center at the national referral hospital that is connected to 11 hospitals in India.

India aims to boost trade ties with African nations

 India has extended credit totalling $7.6 billion to African nations
 Annual meeting of the African Development Bank in Gujarat.
 India is among the other 24 non-regional members.

This time for Africa

 Involvement of political and business leaders in meeting of AfDB
 AFDB’s ‘High-5’ agenda is not very different from our own policy priorities, Jaitley said. Light up, Feed,
Industrialise, integrate and quality of lives.
 In the past two years, the President, the Vice President and the Prime Minister have visited 16 African countries
 Asia Africa Growth Corridor (AAGC) envisages closer engagement between India, Japan and Africa and will be
anchored to four pillars: development and cooperation projects; infrastructure and institutional connectivity;
enhancing capacities and skills; and P2P
 AAGC projects in health, pharmaceuticals, agriculture, agro-processing, disaster management etc
 For turning the 21st century into an Asian-African century, and not just an Asian century.
 India-Japan collaboration with other like-minded countries such as the United States, Germany, France
 China concentrates on infrastructure and cheque-book diplomacy, whereas India promotes a broader spectrum of
cooperation projects and programmes focussed on the development of Africa’s human resources.
 China goes solo, while India is desirous of working with other willing nations
 India is not “prescriptive” and offers “limitless possibilities” for India-Africa cooperation.
 India’s partnership with Africa is based on a model of cooperation, which is responsive to the needs of Africa
 It is demand-driven and free of conditions
 Unless results become visible in the short term, questions may arise about the credibility of their joint approach.

Africa our top priority in foreign, economic policy matters: Modi

 Trade between Africa and India doubled in the last five years to reach nearly $72 billion in 2014-15.
 India’s commodity trade with Africa in 2015-16 was higher than our commodity trade with the United States
 India’s private sector is also providing an impetus to stronger India-Africa ties
 Africa accounting for 20% of Indian overseas direct investments between 1996 and 2016
 India is the fifth largest country investing in the continent
 India was backing the establishment of a regional centre of NDB
 India is working on a maritime outreach to extend its Sagarmala programme to the southern coastal African countries
with ‘blue economies’; it is also building its International Solar Alliance

INDIA-KENYA
 President of the Republic of Kenya paid a State Visit to India.
 Kenya invited India to engage more intensely at COMESA (Common Market for Eastern and Southern Africa).
 India offered its expertise in the area of LED smart street lighting, LED bulbs for domestic use, maritime surveillance,
security, sharing of white shipping information and joint hydrographic surveys.
 East African Community (EAC) comprising Kenya, Tanzania, Uganda, Rwanda, Burundi and South Sudan, has
emerged as one of the most successful of Africa’s Regional Economic Communities.
Asia – South - Afghanistan

India welcomes Trump’s new Afghanistan policy

 The new strategy in Afghanistan seeks troops increase in the country to reverse the gains made by the Taliban
 Hitting out at cross-border terrorism from Pakistan, India welcomed Trump’s new policy
 Would help target “safe havens” of terrorism in South Asia.
 Support for Afghan-led peace process had addressed a core Indian concern
 Trump urged India to do more to help Afghanistan with its developmental needs
 This is the first time that instead of a carrot-based approach, there is a more stick-based approach.
 Trump linked a proposal for India playing a bigger role in the war-torn country to its trade surplus with US
 Appeared to follow the previous administration’s understanding of South Asia as a nuclear flash point, where there is
also a risk of Pakistan’s nuclear weapons falling into the hands of terrorists.
 President called his new policy “Principled Realism.”

HEART OF ASIA CONFERENCE:

 India hosted the 6th Ministerial Conference of HOA in Amritsar.
 HOA-Istanbul Process was launched in 2011
 Amritsar Declaration called for immediate elimination of terrorism to help the war-ravaged country
 Members called up for leveraging the cultural heritage of the region to drive economic and social development.
 Members consented on eliminating non-tariff barriers to trade

India to join Moscow meet on Afghanistan

 India is among six nations participating in a conference on Afghanistan’s future in Moscow, two months after Russia
hosted a similar conference with only China and Pakistan.
 Issue of exclusion was raised by Foreign Secretary during his talks with the Russian delegation at the Heart of Asia
 India is increasingly uncomfortable with Russia’s overtures to Pakistan on defence issues.
 Significantly, Russia did not join the U.S., U.K. and France in sponsoring a resolution against Masood Azhar

India, Afghanistan take a hard line on Taliban at Moscow conference

 Unlike India and Afghanistan, which believe Pakistan is part of the problem, and voiced their concerns at the Moscow
conference, Russia and China believe it is part of the solution.
 Opposed the dominant view from Russia, China and Pakistan to involve the Taliban in reconciliation efforts.
 Afghanistan made a strong pitch for the United States to be included as one of its most important partners.
 Indicated that the previous round of QCG (Quadrilateral Cooperation Group, which comprises US, China, Pakistan,
and Afghanistan (ACPU)) was not acceptable.
 The key challenge to the process remains a policy to distinguish between good and bad terrorists
 Russia’s support to the Taliban will weaken the central government in Kabul

New Delhi, Kabul talks soon to boost trade

 ‘India-Afghanistan Joint Working Group will discuss ways to make use of UN TIR (International Road Transport)
Convention to boost trade through Pakistan.
 TIR Convention facilitates trade and international road transport by permitting customs-sealed vehicles and containers
to transit nations without them being generally inspected at border crossings.
 Afghanistan-Pakistan Transit Trade Agreement (APTTA): Afghanistan can use Pakistan’s territory for transit trade
while Pakistan’s goods can move through Afghanistan to nations bordering Afghanistan. However, Islamabad has not
agreed to allow using APTTA for goods to be transported from India to Afghanistan through Pakistan’s territory

India, Afghanistan open air freight route

 Dedicated air freight corridor service which passes through the airspace of Pakistan
 Will provide Afghanistan greater access to markets in India
 It has been hit by shortage of cargo planes, lack of cargo screening machines that necessitates unpackaging and
repackaging, and the lack of adequate cold storage facilities at the airport.
 Despite its commitment of $2 billion in development aid to Afghanistan, there are few new infrastructure projects that
the government has taken up in the past few years.
 The big ones, mostly planned a decade ago, have been complete, including Zaranj Delaram highway (which connects
to Iran), the Herat dam, the Doshi-Charikar power project, and the construction of Afghanistan’s parliament

Conclusion: India should not consider deploying troops in Afghanistan under any circumstances but should step up other
diplomatic engagements, said leading strategic experts. We should continue to persuade other international players to
continue to remain engaged in Afghanistan
Asia – South - Bangladesh

Dhaka to open mission in Chennai

 To focus on medical tourism and education that drew thousands of Bangladesh citizens to India every year.
 Bangladesh emerged as the largest overseas user of India’s health services sector during 2015-16.

Delhi, Dhaka push Ganga basin project

 Bangladesh and India have held talks on the Ganga basin development project
 Ganga basin development project will help agriculture, river navigation and river economy
 Joint dredging and development activities in the basin area are also part of the project.
 Ganga barrage can hold water for the lower riparian system in the lean season
 Provide a solution to aridity in the Bangladesh that Dhaka blames on the Farakka barrage in India.

Remembering 1971
 Atrocities committed by the Pakistani army on civilians in the then East Pakistan during the Liberation War in 1971.
 Bangladesh Parliament passed a resolution calling on the government to observe March 25 as Genocide Day.
 On the night of March 25, 1971, the Pakistani army, launched Operation Searchlight in Dhaka aimed at curbing
elements of the separatist Bengali nationalist movement.

India-Bangladesh
 India to allow its border roads in Mizoram and Tripura to be used by Bangladeshi forces as they construct border
outposts in the inhospitable terrain of the Chittagong Hill Tracts
 Chinese investment in Bangladesh, with $38 billion pledged in infrastructure cooperation and joint ventures
 Delhi to extend $5 billion credit to Dhaka, its biggest yet in the neighbourhood
 Reconstruction of a 7th India-Bangladesh railway line between Agartala and Akhaura

Delhi, Dhaka agree on 22 deals

 Cooperation in the fields of connectivity, energy, defence, lines of credit, trans-border rail
 2 sides were unable to make any progress on the contentious Teesta water sharing agreement
 MoU on defence framework and a $500mn Credit for defence procurement for the Bangladesh military forces.
 MoU on coastal route, commitment to support civil nuclear research, Civil Nuclear Energy
 If there is one example where the neighbourhood first policy has yielded good result, it is in case of Bangladesh, said
Foreign Secretary S. Jaishankar

Breakfast in Khulna and lunch in Kolkata

 Five-coach diesel-hauled Khulna-Kolkata train also known as Maitree Express-II
 Inaugural trial run of the Kolkata-Khulna-Dhaka bus service.
 Train services between the two countries started in April 14, 2008, when Maitree Express was launched.
 Prior to this, bus services along the Kolkata-Dhaka-Agartala and the Kolkata-Dhaka routes were made operational
Sheikh Hasina invites India Inc. to Bangladesh, promises SEZs
 Invited India to invest in infrastructure sector promising to exclusively dedicate at least three SEZ
 As many as thirteen pacts were signed between Indian and Bangladeshi firms, entailing investments of $9 billion

What is the lowdown on sharing of Teesta waters?

 Stalled Teesta treaty continues to eclipse bilateral relations as water affects the lives of ordinary people
 Bangladesh shares 54 of its 57 transboundary rivers with India.
 After the Ganges, Brahmaputra and the Meghna river system, Teesta is the fourth largest river shared
 Sharing the waters of the Teesta river, which originates in the Himalayas and flows through Sikkim and West Bengal
to merge with the Brahmaputra in Assam and (Jamuna in Bangladesh), is perhaps the most contentious issue
 For West Bengal, Teesta is considered the lifeline of half-a-dozen districts in North Bengal.
 In 1983, an ad hoc water-sharing agreement allocated 39% of the water to India and 36% to Bangladesh
 Apart from livelihood, agriculture is also affected as 14% crop production is dependent on the flow of the river.
 There are floods during monsoons and droughts during the dry periods
 Bangladesh has sought an “equitable” distribution of Teesta waters, on the lines of the Ganga Water Treaty of 1996
 West Bengal Chief Minister opposed an arrangement in 2011, by which India would get 42.5% and Bangladesh
37.5% of the water during the lean season, and the plan was shelved.
 The answer, according to Bangladeshi hydrologist and architect of Ganga Water Treaty Ainun Nishat, is embedded in
the construction of giant artificial reservoirs, where the monsoon water can be stored for the lean season.
 The reservoirs need to be built in India as the country has some mountain-induced sites favourable to hosting dams
 Modi: “rivers should nurture the India-Bangladesh relationship and not become a source of discord”.

Sheikh Hasina India visit: Transformative visit

 Modi’s assurance of an “early resolution” to the Teesta water dispute in the presence of West Bengal Chief Minister
 The holdout is clearly political; hence the resolution will only come from political dialogue
 Plans to revive inland waterway channels are also under way, and hold the potential to increase connectivity with
Nepal and Bhutan.
 Will help India connect to itself, to the benefit especially of the northeastern States.

Pivot to the Indo-Pacific

 Delhi-Dhaka joint statement stressed the need for greater military-to-military training and exchanges
 Bangladesh will not be bound to use military credit to source its supplies only from Indian companies.
 Bangladesh is taking serious steps against insurgent organisations such as ULFA, NDFB
 Delhi’s success in engaging countries such as Japan, Australia, Vietnam, Malaysia and Indonesia in recent years is
testament to the growing demand in the region for a larger Indian role

A step forward for Indo-Bangla ties

 India-Bangladesh Friendship Bridge over river Feni
 India is bearing entire expenditure towards the construction of the 150-metre bridge
 The bridge would facilitate implementation of a protocol that India signed with Bangladesh to use Chittagong sea port
as a ‘port of call’.
 Ultimate connectivity plan is to benefit Tripura and other landlocked northeastern States

Plan for Indian SEZs in Bangladesh hits bump

 Citing “constraints, including inadequate infrastructure and power supply” representatives of India Inc. told the Centre
that it will not be commercially viable
 For better connectivity and business prospects, they sought alternative sites close to the Chittagong Port
 Bangladesh had offered incentives, including exemption from income tax, VAT, customs duty and stamp duty,
removal of ceiling on FDI, full repatriation of capital and dividend etc
 India Inc. wanted greater clarity on some of the incentives as well as an assurance that they will be continued even if
there was a regime change in Bangladesh.
 The construction of these SEZs were to be facilitated through concessional Line of Credit extended by India
 Govt asked Indian companies not to reject Bangladesh’s offer of land and other incentives to build Indian SEZs there.
 India was considering a supply of about 5,000 MW of power to Bangladesh.
 Centre had asked consultancy firm PwC to give a clearer assessment of the potential gains for Indian companies
Nod for Bangladesh JIN pact
 In a bid to boost bilateral investments between India and Bangladesh, Cabinet gave approval for Joint Interpretative
Notes (JIN) on the Agreement between both the nations for the Promotion and Protection of Investments.
 The JIN would impart clarity to the interpretation of the existing Agreement between India and Bangladesh for the
Promotion and Protection of Investments, definition of investor/ investment, exclusion of taxation measures, Fair and
Equitable Treatment, National Treatment and MFN, Settlement of Disputes
Asia – South - Pakistan

The goods exchange

 With the resumption of cross-LoC trade on the Uri-Muzaffarabad route
 Trade was stopped in Uri on July 21 after banned drugs were seized from a truck & border tensions.
 LoC trade has been in focus after NIA began probing the funding patterns of traders.
 It is important to realise that this is barter trade. Therefore, regular accounting may not be applicable here.
 Permanent and formalised communication facilities will be set up between the respective trade officers.
 It’s the first time since cross-LoC trade service started in 2008 that permanent communication lines would come up.
 Earlier, hotlines between the security agencies were the only source of communication.
 Steps that should be taken: joint investigation team for narcotic and arms smuggling across the border.
 Monitoring cell of officials from State and Central agencies must be constituted. It should monitor daily trade
practices such as registration of traders, invoicing and exchange of goods, trade balancing, etc.
 Institutionalise and formalise trading, impart training to LoC traders, capacity building of traders.
 Irrespective of the negative perception around it, this form of trade continues to be one of the most successful CBMs

India not fulfilling responsibilities under Indus treaty: Pakistan

 Voicing concerns over India’s construction of new dams
 It urged the World Bank to establish a Court of Arbitration.
 WB is guarantor of the IWT and adjudicates dispute between the two countries.
 Treaty allocates 80% of water from the six-river Indus water system to Pakistan.
 The Indus river basin spans parts of 4 countries (Afghanistan, Pakistan, India and China)
 Permanent Indus Commission was set up as a bilateral commission to implement and manage the Treaty. The
Commission solves disputes arising over water sharing.
 Pakistan has lodged a fresh complaint with WB over a run-of-the-river project on Kishanganga River
 It has also raised a dispute over construction of Ratle Dam over Chenab River.
 India had taken strong exception to the World Bank’s decision to set up a Court of Arbitration

‘Case against Masood Azhar solid’

 India hit out at China for demanding “solid evidence” for securing a United Nations ban on Jaish-e-Mohammed chief
 Extent of his actions were “well-documented” and the “burden of proof” was not on India.
 Jaish itself is proscribed under 1267. So the proof is in 1267 Committee action.
Kulbhushan Jadhav's sentence
 Pakistan and India have accepted the Vienna Convention of 1963.
 Pakistan “repeatedly refused” Indian consular officers access to the former Navy personnel
 India wants certified copy of charge sheet and army court order
 India can move the ICJ for an immediate injunction against death sentence under Article 36 of Convention for
depriving Indian consular officers

ICJ stays Jadhav execution

 Dismissed by Pakistan as a “basic ruling” that said nothing about the merits or maintainability of the case
 ICJ, popularly known as the ‘world court’, ordered Pakistan to “take all measures at its disposal” to prevent the
execution of Mr. Jadhav, pending its final judgment
 The court accepted India’s argument that the failure by Pakistan to provide required consular notification and access
fell under the scope of Article 1 of the Optional Protocol of the Vienna Convention of Human Rights.
 ICJ added that 2008 bilateral agreement on consular relations did not impact its jurisdiction, as Pakistan had argued
 Further, it has noted that there is no exception to the consular access rule for those allegedly involved in ‘espionage’
 Court noted “that Pakistan has given no assurance that Mr. Jadhav will not be executed before its final decision.”
 The order does not cover issues such as consular access to Mr. Jadhav.
 The ICJ judges are clear that these provisional measures are binding and create international legal obligations
 Pakistan may apply to the ICJ under Article 76 for a revocation or modification of the court’s order.
 This can be done any time before the final judgment is given.
 It has to satisfy the ICJ that a “change in the situation” has occurred that necessitates such a revocation

India wants all men considered missing in Pakistan back

 Highlighting prisoner safety and consular access, India urged Pakistan to return its military personnel who are
considered missing in that country.
 Exchange of the prisoners was made according to Agreement on Consular Access between India and Pakistan.
 Accordingly, lists of nationals lodged in jails are to be exchanged twice each year

India hits back, destroys Pakistani posts on LoC

 Indian Army has destroyed through massive fire assaults several Pakistani posts across LoC and released a video
 Army used Anti-Tank Guided Missiles (ATGM), rocket launchers and recoilless guns
 DGMOs held a telephonic conversation during which Pakistan accused the Indian Army of targeting its troops.
 Firing by Indian troops was initiated against armed intruders when attempting to infiltrate from close proximity of
Pakistani posts

Pak. faces criticism over terror financing

 FATF slammed Pakistan for continued complicity in financing terrorist entities, saying certain UN-designated terror
groups under UNSC Resolution 1267 in the country receive money due to lack of control by the authorities.

285 infiltration bids by Pakistan in 2017: Jaitley

 Increased attempts by Pakistan to ensure infiltration across the Line of Control in 2017
 Army guards the LOC and a few parts of the International Border, the remaining border areas are guarded by the
Border Security Force.
Asia – Rest of South

ADB eyes Delhi as regional hub

 ADB has started working to create several regional hubs including New Delhi as one for South Asia
 Finance Minister had earlier urged the multilateral lender to establish a hub in New Delhi, so that it could expedite
lending to development projects across the region.
 ADB, given its objective of combating poverty, also needed to sharpen its focus on affordable renewable energy and
urban development, drinking water and sanitation, climate resilient agriculture and social infrastructure
 India is a founding member of the ADB and its fourth-largest shareholder.

About BBIN agreement

 Provide seamless people-to-people contact and enhance economic interaction by facilitating cross border movement
of passenger and cargo vehicles among the four countries.
 Cargo vehicles do not have to be changed at the border, a practice that has prevailed until now.
 Customs and tariffs will be decided by the respective countries

India to focus on BIMSTEC after hurdles from Pakistan

 Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
 Nepal, BIMSTEC chair, is scheduled to host the group’s summit this year, the first since the new government in India
assumed office in May 2014.
 BIMSTEC is also a bridge between South Asia and SEA
 Seven member-group, 5 of them are from South Asia — BBINS — and 2 from South East Asia — MT

20 YEARS OF BIMSTEC
 The permanent secretariat of BIMSTEC was established in Dhaka in 2014. It was originally called BIST-EC, formed
at a meeting in Bangkok. BIMSTEC is home to around 1.5 billion
 Sectors—trade, technology, energy, transport, tourism, regional integration, security, terrorism, inclusive growth,
fisheries, agriculture, health, poverty, environment, culture, P2P and climate change
 Energising it would also accelerate India's Act East policy, developing northeast
 IMT Highway and Kaladan Multimodal Transit Transport Project are expected to further augment connectivity and
economic cooperation in the sub-region
 BIMSTEC, unlike SAARC, is an “issue-free relationship” where all countries are looking for cooperation
 Also unlike SAARC, BIMSTEC has no written charter and thus more flexible.
 PROBS: FTA remained a pipe dream, issues of refugee, ethnic tension, lack of resources and coordination

‘SASEC Group can add $70 bn. to GDP’

 Finance Ministers of the member-countries of the South Asia Sub-regional Economic Cooperation grouping said the
growing cooperation could generate $70 billion in GDP and employment of 20 million annually by 2025.
 BBINMS also welcomed Myanmar into the coalition=BBINMMS
 Untapped potential of the region’s natural resources, industry, connectivity and infrastructure
 SASEC program was formed in 2001 in response to the request of BBIN
 ADB is the secretariat and lead financier

SASEC ROAD CONNECTIVITY

 CCEA has given its approval for upgradation and widening of 65 kms of Imphal-Moreh Section of NH-39 in Manipur
 The project corridor is part of Asian Highway No. 01 (AH01) and acts as India's Gateway to the East.
 Trade, commerce, tourism, socio-Economic Development of Manipur
 Government of India has notified an ICP at Moreh.
 India is expediting SASEC road connectivity program in the backdrop of China’s BRI
 Road corridors in Myanmar provide the key links between South Asia and Southeast Asia.

Bhutan’s exit from the ‘BBIN’ agreement should not hold up the road-sharing pact
 BBIN was an alternative mooted by government after Pakistan rejected MVA in Kathmandu in 2014.
 Sri Lanka and the Maldives are not connected by land, and Afghanistan could be connected if Pakistan was on board
 The main concern expressed by Bhutanese citizen groups and politicians is over increased vehicular and air pollution
 Officials estimate the road links could end up circumventing circuitous shipping routes by up to 1,000 km.
 Bhutan’s concerns may be assuaged if India considers the inclusion of waterways and riverine channels as a less
environmentally damaging substitute.
 Bhutan’s objections may even spur an overhaul of emission standards for trucks currently plying in BIN
 BCIM corridor got a boost this week as the countries moved to upgrade the dialogue to the governmental level
 Connectivity is the new global currency for growth and prosperity as it secures both trade and energy lines

India, Sri Lanka sign energy and infra pact

 Modi enquired about “China’s thinking” on current development projects in Sri Lanka
 In SriLanka for International Vesak Day Celebrations.
 MoU includes the setting up of a LNG and solar power plant
 Joint investment in the petroleum sector and partnerships in highways and transportation
 To develop WW-era oil storage facility in Trincomalee, the strategically located port town on the island’s east coast.
 As per the MoU, the countries will also jointly set up Industrial Zones and SEZ in Sri Lanka.
 India has expressed interest to operate Sri Lanka’s second international airport 40 km from Hambantota, where China
has majority stake in a strategic port it built.
 Sri Lanka signed a $1.1 billion deal with China, giving the state-run China Merchants Port Holdings a 70% stake in a
joint venture to run the port.
 Colombo also roped in China to help develop an industrial zone
 Amid New Delhi and Washington’s known apprehension over the Hambantota agreement, Colombo tweaked the port
deal last month and said no foreign naval ship could call at the port without prior clearance.
Thirty years of soul-searching — the lasting legacy of 1987
 Indo-Sri Lanka Accord in July 1987 to bring ethnic civil war to an end by a political-constitutional solution
 Most important political change since 1987 has been the total defeat and demise of the LTTE
 Persuading the Tamil militant groups to lay down their arms and then join the so-called political mainstream.
 Alter the constitutional and structural framework of Lanka and offer regional autonomy to the minority Tamils
 The two objectives have been met with only partial success.
 LTTE rejected the accord, and returned to war not only with the Sri Lankan state, but also with the Indian state.
 Within four months of the accord’s signing, India — its sponsor — became a direct party to the war
 War went on till May 2009, defeating the LTTE, ending the ‘political-solution’ approach
 The second objective; 13th Amendment to Sri Lanka’s 1978 Constitution was passed in November 1987 & created a
system of Provincial Councils in Sri Lanka’s nine Provinces.
 ACT: Tamil demand for secession is not politically tenable, though understandable; regional autonomy is the best
alternative both to a unitary state and separation

India, Nepal renew fuel supply pact

 Supplies to Nepal from India since 1974.
 Construction of petroleum product Motihari-Amlekhgunj Pipeline.

SAARC start-ups’ meet to work out mutually beneficial ideas

 India will host a summit for start-ups from SAARC nations later this year
 A similar dialogue is also being organised by the Centre between German and Indian start-ups
 There will be an exchange of ideas so our entrepreneurs can stay in touch with what’s happening there
 Fresh steps are on the anvil to help start-ups, including a new credit guarantee fund and extending the exemption from
labour law inspections for a period of five years instead of the current benefit of three years
 Credit Guarantee Fund for start-ups, under which they would be able to get a loan of 5 crore each without collateral
 Almost 85% of the 1300-odd start-ups that had been recognised for such benefits by the Centre belong to nine States.

India-Mauritius
 MoU moots ties with Mauritius Parliament
 India gives $500mn aid to Mauritius
 Cooperation in the field of maritime security, hydrography
 Piracy impacts trade and tourism, trafficking of drugs and humans, illegal fishing, and other forms
 OPVs and fast interceptor boats from India have enhanced the operational capacities
 Setting up of a civil services college in Mauritius

CHAGOS ARCHIPELAGO DISPUTE

 British Foreign Secretary has sought Indian assistance in resolving current tensions between UK, US and Mauritius
over the future of the US military base Diego Garcia, and the Indian Ocean Chagos Archipelago.
 Chagos Islands- referred to by the British as the British Indian Ocean Territory is home to the US military base
 Mauritius has repeatedly asserted that the Chagos Archipelago is part of its territory
Asia – West - Israel – Palestine

After Palestine, it’s Israel’s turn

 Visit of Palestinian President
 1ST visit by an Indian Prime Minister to Israel
 Israel is home to 80,000 people of Indian origin
Palestine, Israel must coexist: Modi
 India urged that a future state of Palestine should coexist peacefully with Israel.
 However, visiting Palestinian President said that a sovereign state of Palestine should be built according to the pre-
1967 borders and include East Jerusalem as the capital.
 Israel and Palestine that existed before the Six-Day War of 1967 in which Israel absorbed East Jerusalem.
 Abbas went on to thank India for contributing to capacity-building in information technology.
 Agreements on visa exemption on diplomatic and official passports, sports and youth affairs, agri, health and IT.
 Both the countries also called for enhancing cultural exchanges between the two sides.
 Palestinian President also condemned terrorism in all its forms

Six days of war, 50 years of occupation

 There were frequent conflicts between the Syrian and Israeli militaries
 Israel launched a surprise attack on Egypt, totally destroying the Egyptian Air Force in one day.
 Jordan entered the war on the same day, but had to withdraw
 Israel had captured the entire Sinai, Gaza, West Bank, eastern Jerusalem and the Golan Heights.
 It broke the myth of Arab unity. Arab countries could never stand up to Israel together after the Six-Day War.
 It turned Israel into an American asset in West Asia.
 1973 Yom Kippur War in which Egyptian troops shocked the Israeli leadership with a surprise attack.
 Within five years, the Camp David Accord was signed, which led to the eventual Israeli withdrawal from the Sinai.
 Israel agreed to the establishment of a Palestinian Authority in the West Bank and Gaza as part of the Oslo Accords in
the early 1990s, only after the first intifada that began in 1987, during which Palestinians rose against occupation.
 It continued to deepen the occupation of the West Bank with more Jewish settlements and land grabs.
 Today Israel is still on the Golan Heights, which it promised to return; East Jerusalem, which the Palestinians want as
the capital of their future state; Gaza, that houses about two million Palestinians and the West Bank

Two-state solution is dead

 Trump’s refusal to endorse the two-state solution
 At least since the 1993 Oslo Accords, giving statehood to the Palestinians has been the bedrock of any proposal to
solve the oldest conflict in modern West Asia.
 Particularly after Oslo, Israel steadily expanded the settlements in the West Bank and East Jerusalem is more than 7L.
 Israel on paper remains committed to two states, but has always preferred a no-state solution.

India, Israel set to expand defence ties

 India and Israel celebrate 25 years of diplomatic relations
 Tel Aviv has emerged as one of the largest and trusted suppliers of defence equipment to India
 Navy Chief on a four- day visit to Israel to continue the high-level defence exchanges.
 UAV, air defence systems, MR-SAM , special force equipment and electronic warfare equipment.

Israel backs India's fight on terror

 Israel believes that there is no difference between “Lashkar-e-Taiba” and the Hamas group
 First visit by an Indian Prime Minister
 Floriculture, water desalination programme, lunch with CEO’s, Agriculture, Science, technology and Space
 Received protocol reserved only for the U.S. President and the Pope

Indian Embassy will remain in Tel Aviv: Modi

 Modi has affirmed India’s traditional support for the “two-state” solution
 In October 2015, Pranab Mukherjee became the first Indian President to visit Israel

On eve of PM’s visit, Palestine hopes to keep India ties firm

 India’s relations with Israel should not come at the “expense
of ties” with Palestine

People of Indian origin in Israel to get OCI card: Modi

 Indian-Israelis are a “human bridge” between two countries
 New flight connecting both countries
 Modi recalled several Jewish Indians who had served in
India, including General JFR Jacob, and hundreds of Indians who
worked in Israel, Baba Fariduddin, who had travelled to Jerusalem in
the 13th century
 Faster facilitation of OCI cards, visas, and an Indian cultural centre in Israel “very soon”.
 A large number of Indians also live and work in Israel in the health and care-giving sector

India, Israel to set up $40 mn research fund

 Announced a strategic partnership between the two countries
 7 agreements in the fields of water, agriculture, space, $40 million joint fund for innovation, strategic interests,
combat radicalisation and terrorism, including in cyberspace.
 Possibility of “joint development of defence products, including the transfer of technology from Israel.
 They also underscored the need to “ensure that terrorist organisations do not get access to any WMD
 Statement only recorded “their support for an early negotiated solution between the sides based on mutual recognition
and security arrangements,” without any reference to a “two-state solution” that India supports.
 The two agreements in the field of water deal with the “increasing awareness” of the need for water conservation
 MoU between the Israeli Water Ministry and the Uttar Pradesh Jal Nigam Board.
 Three MoUs on space cooperation included one for Electric Propulsion for Small Satellites, and for the development
of an optical link as well as cooperation on atomic clocks.
 The fund of research and development, called the “I4F” or India Israel Industrial Innovation Fund, will see both
governments contribute $20 million to help research scholars manufacture their inventions easily.
 Modi also coined the term “I4I” or “India for Israel”, as a response to Mr. Netanyahu’s formula of “Indian talent and
Israeli technology equals India-Israel ties for tomorrow.”

At Haifa, a salute to Indian heroes of Great War

 Indian soldiers laid down their lives protecting the Israeli city of Haifa during WW I from the Ottoman forces.
 Modi also unveiled a plaque commemorating Major Dalpat Singh, known as the ‘Hero of Haifa’
 Next year, the centenary of the battle of Haifa will present another opportunity to mark this enduring bond
 Indian Army commemorates September 23 every year as Haifa Day
 In the autumn of 1918, the Indian Brigade was a part of the Allied Forces sweeping northwards through Palestine in
what is seen as the last great cavalry campaign in history.

Indian, Israeli defence firms join hands

 Bharat Forge and Israel Aircraft Industries entered into agreements to bid jointly for defence contracts for the Indian
military and locally build the systems under “Make in India”.
 Barak missile, phalcon UAV, spike ATGM
CEO meet
 Wrapped up a three-day visit with a meeting with CEOs who reportedly signed agreements worth about $4.3bn
 Hoped to take current bilateral trade of about $4-5 billion to $20 billion in five years
 The document listed the biggest problems as restrictive “laws for investors” in India, and Indian business visas, which
are only granted for one year presently.
 The real potential is allowing Israeli technology to access the Indian market by manufacturing products for the world
 CEOs on both sides identified transport infrastructure, roads, railways, aviation and renewable amongst sectors
 Indian Ministry of Commerce promised a special desk to handle Israeli investments in India.

'Israel is far ahead in water recycling'

 It desalinates 90% of the water used and recycles 95% of sewage water for agriculture.
 Israel has a closed cycle and no longer depends on nature for our water supplies.
 It also helps in stopping pollution.

The Iran question

 India’s West Asia relations are no longer viewed through the prism of Israel-Palestine, but the changing security
landscape in the region pertaining to Iran.
 Saudi Arabia regards Iran as threat.
 Essentially, Arab leaders can today live with their allies operating with the Israelis, but not with the Iranians.
 Iran’s Supreme Leader Ayatollah Ali Khamenei linked the plight of Muslims in Gaza, Yemen, and Bahrain, with,
unexpectedly, those in Kashmir.
 Iranians will have been aggrieved by the visit coupled with India’s unambiguous pro-Riyadh tilt.
 India cannot maintain its traditionally equidistant, neutral position in West Asia for long.

India for Israel, says Modi; force against bad: Netanyahu

 Israeli Prime Minister called the India-Israel partnership a force for “good against bad”
 From ‘Start-up India’ to MII, Israeli technology fits into all of India’s processes for growth, said Jaishankar

Why did Modi stay away from Palestine?

 He became the first senior Indian leader not to visit Palestinian areas or meet with Palestinian officials during the
visit, or even mention Palestine publicly, overturning the primacy their cause has received from India
 India was one of the first countries to recognise the state of Palestine in 1988. Given India’s consistent support to the
recognition of Palestine, Mr. Modi’s visit signified even more than the visit of a close ally, like the U.S.
 Officials said the Prime Minister’s decision came from a desire to “de-hyphenate” relations with Israel and Palestine.
 India has many areas of cooperation with Israel, which could grow much further if India drops its “political baggage”
 In May this year, he invited Mr. Abbas and gave him a warm welcome in New Delhi.
 Finally, the government chose dates for the Israel visit when the Palestinian leadership could definitely not host Modi
 The decision to drop Palestine from his itinerary may have historical underpinnings for the BJP-led government
Asia – West – Qatar crisis

INDIA-QATAR:
 Prime Minister of Qatar paid official visit to India.
 Visa pact will allow holders of diplomatic, special and official passport to visa-free travel
 Technical cooperation in cyberspace and cybercrime.
 MoU in infrastructure projects in Qatar undertaken for the 2022 FIFA World Cup.
 India discussed with Qatar the welfare of its citizens in the wake of its lingering disputes with Saudi Arabia etc
 Discussed ways to deepen co-operation in energy, trade and investment.
 India had expressed keenness in investing in hydrocarbon projects in the Gulf nation.
 Discussed enhancing cooperation in defence security, joint action to tackle money laundering and terrorist financing.

Qatar crisis: mending the rift

 Bulk of the demands focus on asking Qatar to enforce its own commitments from the 2014 Riyadh declaration of
GCC on ceasing support to extremist and terrorist groups.
 There are also signs that this may be the precursor to a larger conflict with Iran.
 The treatment of Qatar could lead to a further weakening of the international order

Engineering exports to Doha hit by Qatar crisis

 India’s engineering exports to Qatar have been hit by the geopolitical situation
 Since the West Asia trade had a lot of interoperability between different ports, shipments were being affected.
 West Asia accounts for 13% of India's total engineering exports.

Qatar’s isolation
 The recent diplomatic rift between Qatar and other Arab states — like Saudi Arabia, Bahrain, UAE and Egypt — has
again highlighted the geopolitical significance of the region beyond the oil factor.
 Allegation that country supports and funds terror through its support of Iran and Muslim Brotherhood, Hamas, al-
Qaeda affiliates like Al-Nusra.
 Qatar’s hosting of the Afghan Taliban, including an ‘embassy’, has also invited widespread criticism.
 Saudi Arabia, Bahrain and the UAE cannot ignore their own role in building up Sunni extremist groups
 Historically, Qatar has avoided allying itself closely with either Saudi Arabia or Iran. It shares the world’s largest gas
field with Iran, hence can’t ignore it.
 India depends on Qatar for 90% of its natural gas
 Qatar Airways flights between India and Doha will be affected following the UAE’s decision to not allow its air space
to be used, the flights will now have to get routed through Iran.
 GCC countries need to negotiate and find a solution
 A diplomatic freeze will allow non-state actors like IS to strengthen their presence.
 Asserting that it has “vital stakes” in peace and stability in the Gulf, India asked countries in the region to resolve the
Qatar crisis through constructive dialogue and well-established international principles of mutual respect.

Efforts intensify to resolve Gulf dispute

 Washington offered to mediate the biggest crisis to grip the Gulf in years in a change of heart from his initial support
for the Saudi-led boycott.
 Kuwait — which has not cut off ties with Qatar — has been leading efforts to mediate.
 Qatar hosts the Al-Udeid military base, the largest US airbase in the Middle East. Home to some 10,000 troops, Al-
Udeid is central to the U.S.-led fight against the Islamic State
Five Arab powers sever ties with Qatar
 Gulf gave Qatari visitors and residents two weeks to leave.
 Banned Qatari planes from landing in the kingdom’s
airports and banned them from crossing their airspace.
 Saudi accused Qatar of backing militant groups and
broadcasting their ideology, an apparent reference to al Jazeera.
 Qatar denied comments which appeared on its official
news agency questioning U.S. hostility towards Iran and blamed
hackers for same.
 Concerns rise over LNG supplies, trade and manpower
 LNG/Oil prices rose
 Six million Indians live and work in West Asia and they
sent home about $63 billion last year.
 In Qatar in particular, there are 6,00,000 Indian workers,
many of them on projects related to the 2022 FIFA
 KSA and the UAE are important partners for India on counter-terrorism cooperation and intelligence sharing.
 Qatar Airways flies about 24,000 passengers a week from India.

Qatar’s neighbours issue steep list of demands to end crisis

 Shutter Al-Jazeera, cut back diplomatic ties with Iran, close down a Turkish military base in Qatar, sever all ties with
the Muslim Brotherhood, Hezbollah, al-Qaida and the Islamic State group.
 Qatar must refuse to naturalise citizens from the four countries and expel those currently in Qatar, in what the
countries describe as an effort to keep Qatar from meddling in their internal affairs.
 They are also demanding that Qatar hand over all individuals who are wanted by those four countries for terrorism
 Provide detailed information about opposition figures that Qatar has funded, ostensibly in Saudi Arabia
 Given Qatar 10 days to comply with all of the demands, which include paying an unspecified sum in compensation.
 Qatar’s government has said it won’t negotiate until Arab nations lift their blockade.
Asia – Rest of West

India, Oman counter-terror exercises

 Second bilateral exercise, Al Nagah-II 2017, with a focus on counter-terrorism, to build Army-to-Army relations and
enhance interoperability, exchanging skills and experiences
 India and Oman maritime exercises called ‘Naseem Al Bahr’ since 1993.

U.S. joins Syrian war, bombs base

 U.S. targeted a Syrian airbase controlled by Bashar al-Assad, a turnaround in American policy.
 Trump has been opposed to U.S. involvement in the Syrian civil war.
 A chemical attack on the rebel town killed 80 people earlier in the week changed his mind

The latest de-escalation bid for Syriais the most realistic agreement yet
 De-escalation agreement reached among Russia, Turkey and Iran to bring the six-year-old Syrian civil war to an end.
 Agreement involves the three main external players in the civil war. Russia and Iran are the key backers of the regime,
while Turkey supports some rebel groups.
 End to the Russian-Assad regime strikes
 The regime will also allow “unhindered” humanitarian supplies to rebel-held areas and provide public services. In
return, the rebels should stop fighting government forces.
 A bigger challenge for all actors involved is how to tackle the threats from al-Qaeda-linked groups. The Astana
agreement is clear on that — Russia and Syria will continue to attack them.

Iran sets new conditions for gas block

 Iran wants India to pay more than triple the gas price for award of Farzad-B natural gas block to OVL
 Price equivalent to the rate Qatar charges for selling LNG to India under a long-term deal.
 Since the lifting of western sanctions, Iran is playing hardball over award of the field which was discovered by OVL
 In the past few months, India has also slashed oil imports from Iran by as much as 20%
 India, which imported oil from the U.S. for the first time in July after Modi’s visit to the U.S., is increasing its oil
intake from Iraq and Saudi Arabia.
 Khamenei ended up equating the Kashmir conflict with those in Yemen and Bahrain
 Teheran cut down the credit period offered to IOC from 90 to 60 days and also inked MOU for developing the
Farzad-b gas fields to Russian Gazprom, which OVL had expected to win
 Indian officials downplayed significance of MOU between Iran and Russia on development of Farzab B

India’s Chabahar plan faces U.S. hurdle

 Chabahar is central to India’s hopes to open a transport corridor to Central Asia and Afghanistan that bypasses Pak
 India committed $500 million to speed development of the port
 Trump denounced the nuclear agreement and accused Iran of being a threat to countries across West Asia
 Swiss engineering group have told India Ports Global Pvt Ltd. they were unable to take part in the bids as their banks
were not ready to facilitate transactions involving Iran due to the uncertainty over U.S. policy

Iran-Kashmir
 Ayatollah has been talking of Kashmir for quite some time (since 2010)
 India has always been wary of Iran’s support for Pakistan in OIC regarding Kashmir.
 So there is nothing new in his recent statement, and Delhi has done well not to give it too much weight.
 Ayatollah’s statement probably reflects concerns about getting regionally isolated at a time when Trump’s hard line
against Tehran seems to have emboldened Saudi Arabia and its allies to squeeze Iran
 Saudi and Iran are engaged in a range of proxy wars across the region — in Bahrain, Syria, Yemen, Iraq.
 Ever since the Islamic Revolution of 1979, Riyadh and Tehran have struggled to shape the Gulf in consonance with
their own interests

INDIA-UAE
 UAE is a significant contributor to India's energy security and was the fifth largest supplier of crude oil in 2015-16.
 Indians make up 30% of the population, 2.6 million
 India receives around 52% of remittances from its Gulf expatriates.
 UAE made a critical shift in its policy by backing India on terrorism from Pakistani soil.
 Participation of a military contingent from UAE during the Republic Day parade.
 India and the UAE signed 14 agreements: Comprehensive Strategic Partnership, cooperation in Defence Industry,
maritime transport, cyber space etc

UAE ready for air traffic pact

 UAE is in favour of India’s proposal for a unified bilateral air traffic pact to rationalise the air service agreements
 India has signed separate agreements with emirates of the UAE which is unique as bilateral air traffic rights are
generally signed between two countries.
 BASA decides the equal number of flights or seats per week that can fly into each other’s country. Then, govt
distributes allocated seats to the respective airlines.
 India has refrained from renewing agreement due to lack of viable slots available for Indian carriers.

eMigrate violates our sovereignty: UAE envoy

 UAE, one of the largest employers of Indians in the Gulf, has raised a red flag with the MEA over the government’s
flagship eMigrate programme over what it terms as “sovereignty issues.”
 After hundreds of complaints from workers about mistreatment, the MEA’s Overseas Affairs department had in 2015
set up a database initiative called the eMigrate programme, that gathers information on emigrants, foreign employers,
companies and recruiting agents.
 2.8 million workers and $13 bn
 eMigrate programme’s mandate to inspect premises of UAE companies is not in the Embassy’s ambit
 Other Gulf countries, including Saudi, had also raised issues with the eMigrate system
 Glitches in implementation of the programme brought down the speed of clearances.
 India has seen a job crunch in the Gulf markets in the past few years.
 eMigrate programme in 2015 and Minimum Referral Wages in 2014 have made Indian labour much more difficult to
hire by foreign employers. And India’s loss has been its neighbours’ gain.
Asia- East

‘ASEAN seeks greater role by India’

 Opening new possibilities in SEA, Vietnam asked India to play greater role in ASEAN’s strategic and security affairs
 Speaking at the Delhi Dialogue IX, a platform for discussion between ASEAN and India
 India should support freedom of navigation in SCS on the basis of international law and conventions.
 Swaraj: We place ASEAN at heart of our ‘Act East Policy’ and centre of our dream of an Asian century.

Japan eases permanent visa norms to draw global talent

 Japan is wooing FDI through easier visa regime and lower corporate taxes, at a time when visa curbs by developed
nations, including the U.S., continue to trouble Indian firms.
 Japan has said it will soon introduce a new Green Card programme and expedite the granting of permanent residency
to highly skilled foreign professionals.
 It will substantially reduce period of stay required —from the current 5 to 1 year

Japan pitches for Chabahar port

 Japan is keen on collaborating with India on projects in Asia and Africa
 Japanese government was in talks with Tehran and New Delhi for a role in the Chabahar.
 Japan’s nod for Australia’s bid to join Malabar

Japan looks back at a war theatre

 Japan has acknowledged that its wartime actions in the 1940s caused grave human suffering in Manipur.
 Discussed a museum that will memorialise the soldiers who fought against the Allied forces.
 73rd anniversary of the Battle of Imphal. The Battle of Imphal and Kohima were among the fiercest conflicts of the
War, in which 30,000 Japanese soldiers died fighting the Allied forces.

India, Japan civil nuclear deal comes into force

 India-Japan Agreement for Cooperation in the Peaceful Uses of Nuclear Energy
 Agreement is a reflection of the strategic partnership and will pave the way energy security and clean energy.
 The deal is essential for bringing a network of nuclear energy cooperation for India, especially with the U.S. as
prominent American nuclear companies are owned by the Japanese nuclear majors like Toshiba.
 Nullification clause was a major hurdle in the deal which sought automatic cancellation of the agreement if India
resorts to nuclear testing in the future.
 It was resolved by annexing a separate memorandum which specifies that Japan can suspend cooperation if India
breaches its no-testing pledge to the NSG.
 Japan’s first civilian nuclear cooperation pact with a country that has not signed NPT
 Japan is a major player in the nuclear energy market and an atomic deal with it will make it easier for US based
nuclear plant makers Westinghouse and GE to set up atomic plants in India
 Key elements of certain reactors are a near Japanese monopoly.
Malabar drills aim at giving regional security, says Japan
 The trilateral Naval exercise, Malabar 2017, involving India, the U.S. and Japan, is strategically very important and
meant to maintain ROL, maritime security, peace and stability in the Indo-Pacific
 Exercise was not aimed at China in the light of Beijing’s repeated concerns about the joint exercises.
 AAGC: India has vast experience, network in eastern Africa. Japan has technology and financing

India, Mongolia ‘cross swords’

 China mounted economic sanctions on Mongolia after it refused to cancel the visit of Dalai Lama
 I-M Relations have been on an upswing in recent years after China hiked transit tariffs on Mongolian trucks
 12th iteration of joint military exercise named Nomadic Elephant in Mizoram
 The exercise was aimed at training the troops in counter insurgency & counter terrorism operations
 Modi during his visit to Mongolia in May 2015 had extended a credit line of $1 billion to Mongolia.

India, South Korea ink pacts on artillery guns

 Artillery guns for the Indian Army and for collaboration in shipbuilding.
 MoU was conceived under the overall umbrella of the ‘Special Strategic Partnership’
INDIA-VIETNAM:
 Vietnam is the 14th country with which India signed the civil nuclear deal
 1986 pact in nuclear limited to training.
 MoU was signed between Air India and Viet-jet for promotion of traffic between Vietnam and India and sharing of
best practices in airline operation, ground handling procedure and management.
 Vietnam extended invitation to India to explore energy in South China Sea
 India has agreed to train the southeast nation’s Sukhoi-30 fighter pilots.

INDIA-INDONESIA:
 Indonesian President paid official visit to India. This is his first visit after assuming power in 2014.
 Indonesia is a strategic partner of India since 2005 and an important trade partner in ASEAN
 Decided to expand their defence and maritime security ties and resolved to deal with terrorism.
 Combating illegal and unregulated fishing
 Indonesia is the world’s largest archipelago and can potentially control all the straits linking IO & SCS

Trump threatens North Korea with ‘fire and fury’

 Trump followed up his warning to North Korea against threatening the U.S. with a boast about the strength of the
American nuclear arsenal
 North Korea said it was considering plans for a missile strike on the U.S. Pacific territory of Guam.
 Guam is home to about 1.6L people and a U.S. military base, submarine squadron, an airbase and Coast Guard group
 North Korea is pursuing missile and nuclear weapons programmes in defiance of UNSC resolutions
 UN Security Council unanimously imposed new sanctions on North Korea
 China calls on all sides to uphold a political resolution to the Korean Peninsula nuclear issue, and avoid any words or
actions that may intensify the problem and escalate the situation
 EU: situation in North Korea is of “great concern” and called on the North to “refrain from any provocative action”.
 South Korea and the U.S. remain technically still at war with North Korea after the 1950-53 Korean conflict ended
with a truce, not a peace treaty.
Asia – East - China

Tawang
 The second largest monastery in Asia and the largest in India (AP)
 Tawang shares boundaries with Tibet in the north, Bhutan in the south west and Sela range of West Kameng in east.
 In 1959, when the current Dalai Lama fled Tibet, he came into India through Tawang.
 The row between India and China on the visit of the Dalai Lama to Arunachal Pradesh
 Chinese Ministry asserted that the Tibetan leader’s visit to the State will escalate the dispute in border areas.
 Eastern sector dispute is over territory south of the McMahon Line in Arunachal Pradesh, which includes Tawang
 India’s position that the visit was purely religious in nature
 Chinese state media have linked the Dalai Lama’s visit to Beijing’s refusal so far to include Masood Azhar in U.N.
ban list, as well as obstruction to New Delhi’s membership to NSG.

Western and other sectors

 Johnson’s line shows Aksai Chin to be under Indian control whereas McDonald Line places it under Chinese control.
 The line that separates Indian-JK from Aksai Chin is known as LAC, concurrent with Chinese claim.
 China and India went to war in 1962 over disputed territory of Aksai Chin.
 Middle sector boundary in about 625 km from Ladakh to Nepal. HP and UK touch this border with Tibet (china).
 The Eastern Sector is 1,140 km long and runs from the eastern limit of Bhutan to a point near the Talu Pass at the
trijunction of India, Tibet and Myanmar.
 This line is called the McMahon Line. China considers the McMahon Line illegal and unacceptable claiming that
Tibet had no right to sign the 1914 Convention held in Shimla which delineated the McMahon line on the map.

INDIA-TAIWAN
 The three-member Taiwanese parliamentary delegation visited India.
 Taiwan is represented in New Delhi by a “Taipei Economic and Cultural Centre”
 India has an “India-Taipei Association” in Taiwan.
 Taiwan is known for hardware manufacturing while India has an established software industry.
 Taipei wishes to invest in the flagship Indian programmes such as the “Make in India” and “Smart City” projects,
manufacturing sector which helps in generating employment.
 India and Taiwan have concerns about China’s growing assertiveness in the region.
 Taiwan still does not have full diplomatic relations with India and other important countries due to One China policy.
 Taiwan has launched the “New Southbound policy” which aims to energise Taiwan’s ties with ASEAN, Australia,
New Zealand and India for increased bilateral trade, people-to-people contact, tourism and culture.
 India moved to stabilise ties with China, saying there was nothing political in visit of a delegation from Taiwan,
which criticised Beijing’s One China policy.

ONE CHINA POLICY:

 Trump questioned US persistence with a one-China policy and wants concessions from China over issues such as
trade, SCS and North Korea
 The one-China policy underscores recognition of China’s sovereignty over Taiwan
 One reason China is so sensitive about Taiwan is its geopolitical vulnerability on its seafront.
 OCP: there is only one state called "China", despite the existence of two governments that claim to be "China".
 The One China policy is different from the "One China principle", which is the principle that insists both Taiwan and
mainland China are inalienable parts of a single China. The principle affirms Chinese sovereignty over Taiwan
 Any country that wants to establish political and diplomatic relations with China must agree to adhere to this principle
and not recognise Taiwan as an independent country.

MEA cuts grants for think tank on China

 MEA has dealt a blow to India’s premier China studies institute, axing 1 crore annual grant it has received since 2010.
 The Institute of Chinese Studies, the only think tank on Chinese studies to partner Harvard University and MIT, has
been asked to adjust and take “project by project” approval for funding from MEA.
 A number of academic activities of the institute will be impacted if project-mode of funding is implemented.

India-China-Afghan
 Beijing initiated the special talks and proposed a “joint development project”
 Delhi must prepare for the larger challenge this year from China’s Belt and Road Initiative

China-Nepal exercises don’t worry us: India

 Nepal and China will hold their first ever joint military exercise, Sagarmatha Friendship – 2017, in early February,
2017 that will focus on counter terrorism operations and disaster management.
 The relationship between Kathmandu and New Delhi has its “own logic”, India said

China for govt-level talks on BCIM economic corridor

 Upgrade BCIM-EC dialogue from Track I (official diplomacy) to the “intergovernmental level”.
 2,800-km economic corridor from Kunming to Kolkata via Mandalay in Myanmar, Imphal (Manipur) and Silchar
(Assam) in India, and Dhaka and Jessore in Bangladesh.
 Different domestic circumstances and developmental aspirations in respective countries.

We have doubts on China’s OBOR project: Jaitley

 130 countries participated, of which at least 68 are now part of the $900-billion infrastructure corridor project
 Issues of “sovereignty”: One section of OBOR passes through Gilgit-Baltistan POK.
 Chinese neo-colonialism, unsustainable debt burden for countries; ecological concerns; project costs.
 There is a lack of transparency in China’s agenda, indicating that Delhi believes the B&RI is not just an economic
project but one that China is promoting for political control.
 India objects to BRICS supporting BRI
 GOI has asked even NGO, business chambers and think-tanks to seek clearances before deciding to attend the forum.
 China said its “doors will always remain open” for India’s participation in the Belt and Road Initiative
 The decision to not attend even as an observer closes the door for diplomacy. It stands in contrast to countries such as
the U.S. and Japan, which are not a part of the B&RI but sent official delegations.
 Each of India’s neighbours, with the exception of Bhutan, has signed up for the B&RI
 As a co-founder of AIIB and as a member of SCO it will be asked to support many of the projects under the B&RI.
 India cannot be a $10 trillion economy by 2032 without integrating itself with the growing Asian market and its
supply, manufacturing and market networks.
 China is knitting together the Asian market with roads, rail, ports, fibre optics, currency exchange, standards

China’s solutions
 China’s recent four-point initiative: starting negotiations on Treaty of Good Neighbours and Friendly Cooperation,
restarting negotiations on the China-India FTA, striving for an early harvest on the border issue and exploring the
feasibility of aligning OBOR and India’s ‘Act East Policy’
 Jinping evokes Panchsheel: China will enhance friendship and cooperation with all countries in the world on BRI on
the basis of the five principles of peaceful coexistence.
 We have no intention to interfere in other countries’ internal affairs, export our own social system
 Insisting that the OBOR has no connection to “sovereignty disputes.” “It is an issue between India and Pakistan and
the Belt and Road Initiative will not change China’s position on the Kashmir issue”.

Ready to counter China’s plans: Lanba

 The Indian Navy is prepared to deal with Chinese military expansion in the Indian Ocean
 U.S. report predicting that China will build additional military bases in the region and beyond.
 China has begun work on its first military base abroad at Djibouti and is expected to be ready by next year.
 Gwadar being built with Chinese assistance.
 Chinese submarines have been doing increasing forays in the Indian Ocean in the guise of anti-piracy deployments
and have docked at Karachi causing considerable concern in New Delhi
 Report also took note of China’s increasing military exports to countries such as Pakistan, Bangladesh and Myanmar.

Despite dispute, no fighting with China in 40 years: Modi

 The world has increasingly become inter-connected and inter-dependent, a transformation that has made it necessary
for India and China to cooperate on trade and investments despite a simmering border dispute, Modi said

No room yet for India in NSG, says China

 China maintains that any formula worked out should be non-discriminatory and applicable to all non-NPT states
 Without prejudice to the core value of the NSG and NPT as its cornerstone
 In defining a two-step approach, the Chinese side has said that the first step for membership was defining a “formula”
that would be followed by the second step, which would be “country-specific.”
 India has underscored that NPT membership is not essential for joining the NSG, as was illustrated in the case with
France, which became a member of the NSG without signing the NPT.
 India insisted that the NSG was not a non-proliferation, but an “export control,” mechanism.
 Therefore, India’s NSG bid should be de-linked from the criterion of NPT membership.
Swiss support India’s NSG bid
 Switzerland, the incoming chair of NSG, will support application for membership, but has left door open for Pak too
 Would contribute to strengthening global non-proliferation efforts if all countries having relevant nuclear technology
and being suppliers of such technology were to become NSG members
 “Grossi process” mandates the former NSG chairperson and diplomat Rafael Grossi to build a consensus among all 48
countries of the NSG, many of which resisted India’s membership bid at the Seoul plenary session in 2016

Frustration again for India at NSG meet

 The annual plenary meeting of the NSG in the Swiss capital ended without agreeing on India’s case for a membership
 NSG noted India’s special relationship with the group owing to the nuclear waiver India won in 2008
 India would prefer to see a “case-by-case” basis membership process employed, given it has an impeccable record on
nuclear transparency compared to Pakistan, which is accused of nuclear smuggling.
 U.S. needs China to help deal with the Korean nuclear programme and Indian NSG membership is not a priority.

India, Pakistan admitted to SCO as full members

 India became a full member of SCO, ending an administrative process that began two years ago.
 Modi said India’s arrival in SCO would boost the fight against terrorism, Regional Anti-Terrorist Structure (RATS)
 Under the framework of the SCO, an annual counter-terror exercise is hosted by a member country.
 Other focus was on trade, connectivity, territorial sovereignty
 India would cooperate with the neighbours of Afghanistan to establish peace and stability
 Modi: connectivity should create cooperation and trust among our future generations
 Jaishankar described bilateral ties between two countries as a “factor of stability” in the age of global instability.
 India's entry into the China-dominated SCO is seen as a major milestone
 Will strengthen India’s position in Central Asia.
 Platform for India to engage Pakistan in a wider regional setting.

RCEP: India upset over slow progress on services talks

 Inadequate progress in talks on services liberalisation for facilitating easier movement of professionals
 In return for eliminating or reducing tariffs on goods, India wants liberalisation across all modes of services
 Indian IT supports 4.5 lakh RCEP jobs
 RCEP technical-level negotiations were held during July 18-28 in Hyderabad
 Trouble in getting visas (Singapore), increase in minimum salary levels for foreign short-term workers (Singapore and
Australia), mandatory police clearances and visa cost (Australia), lack of country-wide validity of visa (China), job
quota (Indonesia), requirement of legalised marriage certificates (Philippines), very short-duration single entry China
 Nasscom said visa should be given to skilled resources for up to 3-5 years for all intra-company related movement.

China’s Regional Comprehensive Economic Partnership push veils grand plan

 10-member ASEAN, India, China, Japan, South Korea, Australia and NZ. When inked, it would become the world’s
biggest free trade pact. (40% GDP and about 50% population)
 FTA aims to boost goods trade by eliminating tariff and non-tariff barriers
 It also seeks to liberalise investment norms and do away with services trade restrictions.
 Boost economic and technical co-operation, strengthen IPR, dispute settlement and e-commerce
 Expected to provide the region’s consumers greater choice of quality products at affordable rates.
 China is keen on eliminating duties on as much as 92% of traded products. However, India’s offer is to do away with
duties on only 80% with a longer phase-out period for Chinese imports (20 years, against 15 for other RCEP nations).
 India has the highest average MFN tariff at 13.5%. MFN tariff, as per the WTO, refers to normal, non-discriminatory
tariff charged on imports
 India’s vulnerabilities and large bilateral trade deficits. Post India’s FTA with ASEAN, Japan and Korea, our trade
deficit with them have increased
 FTA could lead to a surge in inflow of low-priced goods, mainly from China. This, India Inc. feared, would result in
their share in the domestic market contracting, and job losses.
 India has been opposing binding norms on opening up the e-commerce sector
 Among the apprehensions regarding the RCEP is the one that it might include patents on seeds paving the way for
control of the seed sector by MNCs
 It could lead to elimination of duties on milk products and result in huge imports of such items
 Access to affordable medicines, besides threatening the protections to India’s digital industry
 Could allow foreign investors to sue governments in secret international arbitration cases under ISDS
 India already has separate FTAs with the 10-member ASEAN bloc, Japan and Korea & may not gain much on the
goods side with existing FTA partners.
 China is the only RCEP country with which India neither has an FTA, nor is in talks for one. Therefore, Indian
industry sees RCEP as an indirect FTA with China
 Move towards FTA of the Asia-Pacific (FTAAP) spans 21 APEC countries
 India’s FTA strategy shall be guided by MII, domestic manufacturing, job creation, gain on the services side

RCEP: Boost for India on easier visa norms

 India’s push for easier norms on movement of professionals is learnt to have found favour with some members.
 A few ASEAN countries are also understood to be supporting India’s proposal for an RCEP Travel Card to facilitate
visa-free multiple short-term entry across the RCEP region for business and tourism purposes.
 Demands on temporary movement of skilled workers should not be confused with permanent movement

India pressed to open up procurement

 Pressure is mounting on India to open up its more than $300 billion-worth public procurement market
 Public/government procurement: by which gov (Central, State, local), its agencies/departments and State-owned
enterprises procure goods-services only for their own use and not for sale/resale commercially.
 Even in India’s separate FTAs with Japan, South Korea and Singapore (that are already in force), “market access and
national treatment” have been kept out of the government procurement chapter.
 The maximum extent that India could go to, is to agree to ensure transparency and cooperation
 Japan, South Korea, Australia, NZ and Singapore norms indirectly make it difficult for foreign firms to take part in
their public procurement process.
 Countries like China, Japan and South Korea, may outwardly have an open procurement market, but make it difficult
for foreign firms to participate by phrasing requirements in local language
 India is not a signatory to WTO’s Government Procurement Agreement because it wants to retain its policy space to
meet its development needs through public procurement process.
 In May, the Indian government had brought out a policy providing preference in government procurement to local
goods and services suppliers to push MII, capital-technology in domestic services, jobs, promote small enterprises.
 Order restricting or excluding from public procurement tenders in India, the firms from those nations where Indian
suppliers are not allowed to participate and/or compete in government procurement process.

Doklam trijunction
 The standoff between India and China began on June 16 after Chinese troops tried to construct a road in the
Bhutanese territory at Doklam
 Bhutan protested that the area is part of its territory and Chinese action is violative of 1988 and 1998 agreements.
 Indian Army personnel intervened and stopped the Chinese team from advancing.
 Road will provide China further access to the Chumbi Valley, adding to the vulnerability of the Chicken’s Neck
 China reacted sharply to this and charged that “Indian troops trespassed the recognised boundary”
 China released a map to back its claim that Indian troops “transgressed”
 Chinese Foreign Ministry accused New Delhi of virtually manipulating Bhutan to “distort facts,” and engineering a
“cover-up” for the “illegal entry” of its forces in its territory.
 Both sides had deployed additional troops
 Steps taken: flag meeting between local commanders, Border personnel meeting, diplomats, foreign ministries
 Arun Jaitley: India of 2017 was different from what it was in 1962.
 1890 British-era convention defining the boundary between Sikkim and Tibet.
 Boundary between China and Bhutan has not been settled
 Bhutan’s ambassador to India stated that, “Doklam is a disputed territory and Bhutan has a written agreement with
China that pending the final resolution of the boundary issue, peace and tranquillity should be maintained in the area.”

Step back
 Tri-junction stretch of the boundary at Sikkim has witnessed far fewer tensions than the western sector
 Stand-off comes after a series of setbacks to bilateral ties: BRI, sovereignty issue, 1267, NSG, tawang, cooperation
with the U.S. on maritime issues, Taiwan, Army chief on being prepared for a two-and-a-half front war.
 China has made the withdrawal of Indian troops a precondition for dialogue.
 Unacceptable to India, unless the PLA also withdraws its troops
 SOLUTIONS: Beijing must recognise the special relationship India and Bhutan, friendship treaty of 2007 that
commits India to protecting Bhutan’s interests, close coordination between the two militaries, neither Government
shall allow the use of its territory for activities harmful to the national security and interest of the other
 For its part, India should recognise that the face-off is in Bhutanese territory
 Sustained dialogue at the diplomatic level, Foreign Minister or NSA
 The two countries have among the world’s biggest militaries and are nuclear armed.
 In many senses, they also represent the frontlines of a new global order emerging

Why Bhutan is special to India

 Under the previous treaty, India was to “guide” Bhutan on foreign and defence policies.
 The language of the 2007 treaty is meant to respect the sensitivities of Bhutan regarding its sovereignty.
 But the reality is that the Indian military is virtually responsible for protecting Bhutan
 Indian Military Training Team plays a critical role in training Bhutanese security personnel.

Not all rosy with border infrastructure

 Infrastructure has picked up
 India is at least a decade away from
matching the infrastructure on the Chinese
side, where posts have direct road access.
 17 Corps has been scaled down to 2
from 3 and 60k from 90k, of which just one
division has been raised until now.
 India is also constructing some
critical bridges in NE which will cut down
time for troop movement.
 The major reasons for the delay were limited working season, logistic issues due to very high altitude and
mountainous, rugged and difficult terrain, natural calamities, delay in forest and wildlife clearances, land acquisition
 Home Secy, Secy (Border Management), Additional DG (Border) monitor the progress of border infrastructure.
 BRO, PWD, NBCC and State Public Works Departments.
 B.C. Khanduri Committee criticised government for not utilising funds in Defence budget, and under-allocating the
budget for BRO, Acute shortage of manpower, both combatant and civilians in the BRO

Australia for ‘peaceful’ end to standoff

 Australia’s position is that land disputes should be resolved peacefully between the claimant countries
 In the case of maritime disputes, we said it should be subjected to arbitration under UNCLOS, if necessary.

Mind games
 Chinese forces recently held live firing drills in the region.
 Coincided with Modi’s visit to the U.S.
 These incidents were a continuum of “keeping India engaged through political, diplomatic and military means.
 Indian Army Chief General reached Sikkim to review the standoff between Indian and Chinese troops
 Statements by Jaitley, army chief
 Trade and sanctions threat used by India.

No common ground on the Doklam plateau

 Sikkim-China border was the only settled segment of India-China border.
 It adheres to the Anglo-Chinese Convention of 1890, signed between Britain and China, though the exact location of
the tri-junction is today in dispute.
 There are substantial differences between the current incident and past stand-offs such as the ones in Depsang
 Neither side appears to be in a mood to cede ground
 China laying down ‘conditionalities’ that India should withdraw its troops
 India is equally clear that it cannot afford to back down
 For China, the issue is one of territorial ‘sovereignty’. For India, the issue is one of national security.

Diplomats on the job to end standoff with China, Jaishankar tells parliamentary panel
 Tried to reassure the MPs that what TV channels were showing was vastly exaggerated

MPs, Ministers exchange notes on Doklam

 Defence, Home, EAM, NSA, SECY spoke with MPs & major national parties.
 In inviting television panellists and foreign policy analysts to a separate briefing on Doklam some weeks ago, the
External Affairs Ministry also indicated a desire to control the narrative emanating from India

India-China trade talks deadlocked

 Trade talks on issues relating to farm products
 China deferred decision on grant of market access to Indian rice, pomegranate
 Lack of market access for Indian bovine meat. Ban imposed in 1990 in the wake of incidence of FMD in India.
 India to stick to its ban on imports of apple, pear, milk and milk products from China
 Astana consensus: India and China must not allow differences to become disputes. At a time of global uncertainty,
India-China relations are a factor of stability
 India’s goods trade deficit with China $51bn in 2016-17.
Oceanic games
 Malabar is an annual exercise between the navies of India, Japan and the U.S. held alternately in IO and PO
 It began in 1992 as a bilateral exercise between India and the U.S. and expanded into a trilateral (Japan in 2015).
 Largest participation to date with 16 ships, 2 submarines and 95 aircrafts, fielded carriers (first)
 2 phases, harbour phase in Chennai and a sea phase later
 Malabar has assumed greater importance as it is a platform to improve interoperability, submarine familiarization, air
defence exercises, ASW, surface warfare exercises and communications
 Increasing submarine forays by Chinese Navy.
 China has always viewed Malabar as a grouping to contain it and the fears have been exacerbated with Japan & AUS
 In September 2007, Australia, Japan and Singapore joined India and the U.S. in the Malabar exercises.
 China had issued a demarche to New Delhi which forced India to abandon the expansion at that time.

Past disputes
 China closed Nathu La pass to Kailash Mansarovar pilgrims
 September 1967: Chinese troops fired at Indian posts close to Nathu La and the Indian Army retaliated with full force.
 June 1986: Indian Army exercise ''Chequerboard'' after China amassed thousands of troops in the Thandrong pasture
on the banks of the Somdurong Chu river. The situation was diffused diplomatically by August 1987.
 November 2008: Chinese troops destroyed makeshift Indian Army bunkers at Doko La
 April 2013: Chinese troops intruded into Daulat Beg Oldi in Eastern Ladakh
 August 2014: Chinese troops entered 25 to 30 km into the Indian territory in Burtse area in Ladakh
 June 2017: China removed an old bunker of the Indian Army located at the tri-junction

What India did

 Let’s both pull back troops from Doklam, says Swaraj
 Minister said Panchsheel, the Nehruvian principle of peaceful mutual co-existence, is on track but any unilateral
altering of the border by China will amount to a “direct threat” to India’s security concerns.
 Army’s 33 Corps, responsible for the security of the Sikkim border, has advanced its annual exercises to August-end.
 Army was “fully ready for a two and a half front war” — facing China, Pakistan and dealing with militancy
 Doval held talks with Chinese counterpart
 Dialogue with other countries had been held on this issue and India received support for its position.

No ban on Chinese firms: Sushma

 Denial of security clearance to a particular Chinese company which wanted to invest in India was not done as a
“matter of policy” and it “cannot determine the relation between the two countries.
 China’s recent denial of visa to a group of journalists to Tibet
 Red-flags raised by Intelligence agencies regarding vulnerability of equipment and products imported from China in
the telecom sector. As many as 15 parameters are fixed in eight to nine sensitive areas such as telecom and ports.

PMO, NSA tracking impact of Chinese FDI in South Asia

 In the backdrop of the tense border stand-off
 Will also analyse impact of these investments — including those being made in BRI on India’s national security
 Challenge in the study will be the lack of detailed, country-wise data on
 Chinese investments in countries like Pakistan could, in turn, set the stage for Pakistan to make inroads into markets
in Bangladesh, Sri Lanka and Nepal and challenge the presence of Indian firms

China slams India over road-building in Ladakh

 China also backed Pakistan as its partner in the China Pakistan Economic Corridor (CPEC).

Incursions by PLA rose in 2017

 20-25% increase in transgressions by PLA, particularly in Ladakh and Arunachal due to “difference in perception.”
 Both sides have developed a strategy of sending patrols into disputed areas in summer months to assert claims
 There are two possible explanations for the increase this year. First, Indian troops have improved their observation of
the presence of Chinese patrols in disputed areas. Second, the Chinese have stepped up border patrols
 Army, which is posted with ITBP, has been seeking full operational control for the past few years.
 The ITBP is a central armed police force, under the administrative control of Home Ministry.

China stand akin to that in 1975: Menon

 Strong reaction from Beijing in the aftermath of the 1975 induction of Sikkim into India, said former NSA
 Said that India’s response was justified but said China had not overreacted either.
 Following the recent standoff, China had raked up the issue of Sikkim indicating that it might reverse the recognition
it bestowed in 2003.

Minor transgression by China along the Uttarakhand border

 It was a minor transgression, and it happens regularly during summer, because of our differing border perceptions
 Barahoti is one of the rare areas in the Middle Sector that sees regular transgressions

China the main foreign policy issue: Jaishankar

 Both are rising rapidly, are very dynamic. I would regard this as the main foreign policy issue as it is much harder to
get an equilibrium
 Today we have equilibrium and need to upgrade it constantly. This is the prescription for stable relation with China
 With the rise of China, a multi-polar world was upon us, where India was taking a “bold, confident” approach to
navigate uncertainties rather than a cautious approach where little is done

China agrees to tackle trade imbalance

 China has agreed to send a high-level official team by December-end
 It comes amid reports of the possibility of the ongoing Doklam stand-off hurting bilateral trade ties.
 China’s SPS (food safety, animal and plant health norms) hurting Indian farm products exports
 Chinese authorities have also decided to look into India’s request to remove the ‘curbs’ on Indian pharmaceutical,
removing the difficulties faced by the Indian IT/BPM sector
 Meanwhile, RSS-affiliate Swadeshi Jagran Manch (SJM) said it will intensify efforts for a “people’s movement” to
‘boycott’ Chinese goods imports.
 Anti-dumping duty is in force on 93 products concerning imports from China
China wants to go back to ‘1959 LAC’
 China urged India to abide by LAC position of 1959, following scuffle between troops of the two countries along the
Pangong lake in Ladakh.
 A local flag meeting between military commanders of India and China in Eastern Ladakh agreed to maintain peace
 This time it drew attention only because of the Doklam standoff and Independence Day
 If they want to do something they won’t do it in Doklam. They will do it where they have a physical advantage.

China bristles at Japan’s remarks on Doklam

 China has reacted sharply to Japanese Ambassador comments supporting India’s position on Doklam.
Asia - South East

India and Malaysia to fight IS together: Najib Razak

 Sealed six agreements, while extending support to India for a greater role in maritime security of Asia-Pacific region.
 Will also share experience of de-radicalisation with India.
 Agreements on air services, sports, HR, palm oil production and research, tech dev, fertilizer plant in Malaysia
 PM urged Malaysia to participate in India’s infrastructure sector and said that bilateral defence has come to cover
training and maintenance in the military field.
 Mutual recognition in educational degrees is a landmark development
 India-Malaysia CEOs Forum emphasised the need for visa-free travel for Indians and Malaysians
 Malaysia would allow Indian Ayurveda and Siddha practitioners to serve in country.

MPs fret over trade deficit with ASEAN

 PSC on Commerce has questioned the government
 Trade deficit in respect of five ASEAN members — Malaysia, Indonesia, Thailand, Brunei and Lao
 India must seek better market access for goods where India has an edge over ASEAN nations, like leather goods and
pharmaceuticals, to improve the trade balance.
 This year marks 25 years of the formal partnership.
 Imports of essential commodities-coal, petrol and edible oils constitute a significant percentage of India’s imports
 Taking a strong exception to this stance, the committee held that ‘if this approach or argument is subscribed, then
there was no need for the trade agreement with ASEAN.’
 The better market access in terms of higher export has not materialised
 ASEAN is India’s fourth largest trading partner with total trade $71.69 billion, 11% of India’s overall global trade
 Adverse trade balance of $9.5 billion.
 Exports of agricultural products, textiles and pharmaceuticals from India faced high tariffs and barriers
 Concerns about the ‘near absence of quality norms’ for import of cheap processed food products from ASEAN

ASEAN, 50 years on
 Incremental record on regional integration.
 Realistic move away from the original policy of non-interference in the internal affairs of member states.
 There has been growing appreciation that non-interference entails political cost, impeding engagement.
 In 2007, ASEAN adopted mandate to establish free movement of goods, services, capital and skilled personnel.
 With the 2015 launch of the ASEAN Economic Community, the bloc is on the threshold of realising its ambition of
emerging as an integrated single market
 There is little tangible action on the ground in relation to reduction of tariffs, and intra-regional trade.
 Relatively slow pace of economic integration in the group, compared to the European Union.
 Underpinning the European project was the post-World War II imperative
 Conversely, except Thailand, the other original constituents of ASEAN had just emerged from colonialism
 Defending their sovereignty was bound to be a high priority for them

Europe – EU - FTA - Germany

Modi, Merkel nudge FTA, sign a dozen agreements

 Germany looks eastward after her stated disappointment with those from the “West”
 India and Germany agreed on the need to resume FTA talks between India and the European Union
 MoUs on the subjects of education, health, AYUSH, skill development, cyber policy, digitalization, railway safety
 Germany has supported India’s membership bid in the NSG
 Support to each other’s candidatures for a permanent seat in a reformed and expanded UNSC (G4)
 The two leaders reviewed Brexit, its effects on both India and Germany as well as the future of the EU
 Discussed issues of terror, CCIT adoption and radicalisation
 FTA talks had stalled after 16 rounds of negotiations in 2013.
 Germany, India’s largest trading partner in the EU, is also an important interlocutor in FTA discussions
 BIT with Germany and other European countries have also lapsed

Deadlock in Broad-based Trade and Investment Agreement (BTIA)

 Differences regarding greater market access sought by both sides for merchandise exports.
 EU’s main Demands: reducing or abolishing tariffs in automobile, wine and spirits, stringent IP, BIT model
 India’s main demands: data security status (crucial for IT sector to do more business with the EU firms), easier
temporary movement of skilled professionals, seamless intra corporate movement, agricultural market access in the
EU, disciplining of non-tariff barriers, SPS and Technical Barriers to Trade.

EU, India set up fund for investments

 Investment Facilitation Mechanism (IFM) for a close coordination between EU and GOI
 For identifying and solving problems faced by EU companies and investors with regard to operations in India
 IFM will cover new investors as well as those already established in India.
 Under IFM, EU Delegation to India and DIPP will hold regular high level meetings to assess and facilitate EOB
 Invest India, government's official Investment Promotion and Facilitation Agency, will also be part of the IFM.
 Trade and Investment are key elements of the EU-India Strategic Partnership launched in 2004.
 There are currently more than 6,000 EU companies present in India, employment to over 6 million people.

A passage through Europe

 Modi was in Europe’s four nations — Germany, Russia, Spain and France.
 Boosting trade and economic ties with Europe. Selling of India as an investment
 Addressed the Indo-German Business Forum, CEOs of leading Spanish companies to participate in MII
 Tried to explore new ways to cooperate on multilateral issues, including terror and climate change.
 India under Modi wants to present itself as a defender of the global order
 Europe is concerned about its own future under the onslaught of BREXIT and America’s flirtation with Trump.
 Europe’s disappointment with Mr. Trump: his refusal to reaffirm NATO’s Article 5 on ‘collective defence’; his
warning on the trade deficit with Europe; and decision to pull out of Paris Agreement
 U.S. has forged closer ties with China, targeted Indian professionals and businesses to protect American jobs.

Europe – Russia

Russia - a forgotten trade partner?

 70th anniversary of establishment of diplomatic relations
 Governments in December 2010 elevated to what they termed a “Special and Privileged Strategic Partnership.”
 India-Russia relations today are very different precisely because we are very different countries today and the world is
very different from the 1960-1990 phase of the India-Soviet strategic partnership.
 It was the shared perception of a Chinese threat which brought Delhi and Moscow together. The end of the Cold War
changed this, with Russia no longer looking at China as threat.
 India and Russia are neglecting the glory of their past ties due to their preoccupation with other parts of the world.
 Since 1990-91, India’s trade underwent diversification and Russia is now not anywhere near the top partners.
 Both the countries have set a target to raise bilateral trade to $30 billion by 2025 and increase bilateral investment
from $10 billion to $15 billion

Proposed India-Eurasian Economic Union FTA

 Would provide opportunities for market diversification, regional cooperation, development etc
 Members of the EEU include Belarus, Armenia, Russia, Kazakhstan and Kyrgyzstan (BARKK)
 Challenges in the new market like non-tariff barriers and quality standards
 Need for safeguards in pact to protect the state’s interests, prevent dumping of goods and misuse of the rules of origin,
clarity on sanitary and phytosanitary measures, import licensing, quantitative restrictions and trade remedies.
 NEED: trading in local currencies, setting up pipelines for direct gas delivery from Russia to India, operationalisation
of the proposed $1-billion fund through India's NIIF and Russian Direct Investment Fund for investment in
infrastructure and technology projects

St. Petersburg summit

 Modi Chief Guest in the St. Petersburg International Economic Forum — also known as the ‘Russian Davos’ after
WEF, whose annual meeting is held in Davos, Switzerland.
 Modi sought to put the spotlight on Pakistan arming and funding militants and emphasised that the world should move
beyond the “good terrorism, bad terrorism” debate and block funding, weapons and communication modes of
terrorists; pushed for early decision on CCIT
 Reference to India and Russia setting up an “energy corridor” (cooperate in nuclear, hydrocarbon, hydel, renewable
energy) and another reference to the use of natural gas
 Interested in launching joint projects on exploration and exploitation of hydrocarbons in the Arctic shelf
 UNSC & NSG bids.
 One’s assessment of Russia’s foreign policy remains: its current closeness to China is tactical; its long-term interest
both globally and in its neighbourhood are not aligned with China.
 Joint manufacture, co-production and co-development of military hardware
 Setting up 2 more units of nuclear power plant in TN
 First tri-services exercise ‘Indra-2017,’ joint manufacture of frigates, co-production of Kamov-226 helicopters.

Russia a natural ally: Modi

 MODI: There is loosening of the traditional power balance in the world. New centres of influence and new engines of
growth are emerging
 Rising discomfort over Russia’s growing alliance with China (ex BRI) and ties with Pakistan.
 The BRICS meeting came against the backdrop of the Uri attacks, as well as Russia’s decision to go ahead with
military exercises with Pakistan despite the Modi government’s publicly stated policy of “isolating” Pakistan.
 Bilateral trade stands below $7billion despite a declared goal of $30 billion by 2025.

Europe - United kingdom

Troubles of separation
 EU Customs Union is an association of countries in Europe that applies uniform tariffs to imports and thus acts as a
single trade area with no internal border checks.
 It accounts for approximately 16% of world trade.
 Customs Union member states cannot enter into independent trade deals with third parties.
 Britain planning to leave the Customs Union so it can make trade deals with non-EU countries.

India talks tough with U.K. on terrorism

 Britain focuses almost solely on trade deal between the two countries.
 Issues such as security and terrorism were not being heeded in Britain

U.K. raises issue of overstaying Indians

 Britain claims a thousand Indians overstay their visa in Britain every year
 Sensitive issues relating to British-India relations include counter-terrorism, visas and extradition.
 Led to decision to cancel a rally in Birmingham commemorating the death anniversary of Burhan Wani

U.K. to act fast on extradition pleas

 Modi had directed officials dealing with extradition matters from each side to meet at the earliest to develop a better
understanding of the legal processes and requirements of the other, share best practices etc.
 1993 Extradition Treaty and 1995 Mutual Legal Assistance Treaty (MLAT) with the United Kingdom.

Europe keen on resuming trade talks

 EU urged the government to consider a six-month extension of BIT until the FTA or the comprehensive BTIA
(Bilateral Trade and Investment Agreement) negotiations are restarted.
 BITs with most EU countries would lapse in 2017. The Bilateral investment treaty with The Netherlands lapsed
 Insurance costs would also increase significantly in the absence of the agreements.

Brexit’s shadow: India vows to deepen ties

 Commitment to strengthen economic cooperation and collaborate on cross-border tax evasion and avoidance.
 NHAI proposal to issue a masala bond in London, IREDA’s plans to issue a green bond in London
 Successful issuances by HDFC and NTPC, first ever masala bonds to be issued by Indian entities.
 Introduction of a fast-track investment promotion mechanism, which provides a single window for U.K. companies
that are looking to either establish or expand their business in India.
 The exchange of information between the U.K. and India under the CRS on AETI will begin this calendar year.

Brexit is an opportunity for Netherlands-India ties: Ambassador of the Netherlands

 Netherlands is aspiring to emerge as India’s biggest partner in Europe following the Brexit
 20% of India’s $ 45 billion trade with the EU passes through the Netherlands.
 Netherlands can possibly emerge as an alternative hub of Indian exports and capital in Europe

Europe – Rest

INDIA-PORTUGAL
 Prime Minister of Portugal attended the 14th Pravasi Bharatiya Diwas as the chief guest
 7 pacts: Defence, security, maritime, marine research, renewable, start ups, IT, electronics, communications
 Recognizing the importance of the Central role of UN in combating terrorism, the two leaders exhorted the
international community to effectively implement the measures enumerated by the 1267 Committee
 Portugal is member of Nuclear Suppliers Group (NSG) and it has supported India’s membership of the NSG.
 Portugal can act an entry point for Indian companies looking to do business in EU, Africa and Latin America.
 1267 Sanctions Committee of the UN Security Council, 15- nation committee.
Modi, Netherlands slam ‘double standards’ on terrorism
 Commitment to combat terrorism and prevent radicalization, CCIT
 Netherlands backed India’s early entry into the NSG, UNSC and other multilateral export control regimes
 Modi invited the Netherlands to join the International Solar Alliance.
 Netherlands as India’s ‘Gateway to Europe’.
 Local Treatment of Urban Sewage Streams for Healthy Reuse (LOTUS HR) is an Indo-Netherlands joint project
funded by DBT, Govt of india and The Govt of Netherlands.

India, Spain call for ‘zero tolerance’ to terrorism

 To end “selective” approaches in combating
 First Indian PM to visit Spain since 1992
 Invited Spanish firms to invest in India
 7 agreements including pacts on transfer of sentenced persons and visa waiver for holders of diplomatic passports.
 Cooperation in organ transplantation, cyber, renewable, aviation and one between India’s Foreign Service Institute
and Diplomatic Academy of Spain.
 There are more than 200 Spanish companies in India that are actively involved in road construction, railways, wind
power, defence and smart cities.

Cyprus sees role for India

 Reunify northern and southern parts of Cyprus
 Indian government supports us on the basis of the U.N. resolution.
 In 1974 Turkey invaded Cyprus, overran parts of it and has since stationed troops in the north.
 Potential: developing a technology park, investment, bridge to Europe and Gulf, eighth largest investor in India
 Cyprus supports India in its bid to UNSC permanent seat, NSG, Kashmir.
 Pitched for decisive action against states supporting, sheltering and sustaining terrorists in their regions.
 4 pacts, including one for air services and another on cooperation in merchant shipping.
 Modi said India firmly supports Cyprus’ sovereignty, unity and territorial integrity.
 However, it was considered as a tax haven to route investments and India blacklisted it as a non-cooperative country.
 India and Cyprus had in November, 2016 signed a revised DTAA. India has also removed the tag

The long arc to Ankara

 Turkish Preside Erdoğan was in India against the backdrop of his win in a referendum
 Offered to mediate between India and Pakistan. India has consistently ruled out third party mediation on Kashmir.
 Erdoğan has been a vocal supporter of OIC’s position on Kashmir.
 He remained unwilling to acknowledge the cross-border nature of the terror threat that India faces. Significantly,
while condemning terrorism he mentioned only Naxal
 On India’s entry into NSG, the Turkish stance has been to push for Pakistan’s case along with India’s.
 Willing to support India’s bid for a permanent seat in UNSC but even here the story is complicated as Turkey is a
member of the group called Uniting for Consensus which opposes expansion of permanent membership in the
Security Council. And this group includes Pakistan.
 At a time when Europe is not so welcoming to Turkey, new markets in Asia are needed.
 MOU: cultural exchange programme for the years 2017-2020, ICT, FSI
 India and Turkey have decided to increase their bilateral trade from $6.4 billion to $10 billion by 2020.
 The two nations are also exploring cooperation in areas such as construction, infrastructure, renewable and tourism.
 What was interesting was how India managed this visit. Not only did India host Cyprus President just before but Vice
President Hamid Ansari also recently visited Armenia, a country which accuses Turkey of having killed an estimated
1.5 million Armenians during World War I.
 India-Turkey ties date back centuries: Mughals and Ottoman Empire exchanged diplomatic missions.
 The poet Rumi and Sufi movement there found easy synergy with the Bhakti and Sufi movements here.
 In the 20th century India’s freedom fighters supported Turkish independence movement.

India-Armenia
 25th anniversary of diplomatic relations
 Lamented that some countries take the cover of “legal technicalities” to try to avoid the fight against terrorism
 India’s ITEC scholarship is very popular in Armenia and remains a key pillar of bilateral relations.
 3 agreements - outer space, youth matters and cultural cooperation.
 Armenia has been making a mark in renewable energy, vaccines and drugs.
 Poland: clean coal mining technology, agriculture, defence, NSG/UNSC support

Italy sees red-tape, taxes as hurdles

 The main challenges Italian companies face while doing business in India include red tapism, permissions for doing
business taking a long time and a complex tax structure, according to Italian Trade Agency (ITA)
 India-Italy trade declined in 2015-16 as Italy’s exports to India fell

Mexico, India to hold disarmament meet

 India and Mexico have agreed to hold an important conference on regional and global disarmament.
 India and Mexico have been in consultation on India’s bid for the Nuclear Suppliers Group (NSG) membership.
 Meeting is likely to build on the time-tested India-Mexico collaboration on disarmament starting from the 1980s when
both countries led the Group of Six, an anti-proliferation group of six countries that tried to contain cold war nuclear
rivalry between the U.S. and the USSR.
 The latest consultations are aimed at upgrading the Privileged Partnership formed in 2007 to a strategic level
Multilateral bodies

Venezuela lauds India’s hands-off approach

 The world would be a safer place if the U.S. emulates India’s policy of non-interference, says Venezuela
 India had maintained an independent position on the ongoing disturbances in Venezuela and has avoided pressure
from the U.S.
 When the U.S. Ambassador to the U.N. threatened to leave UNHRC if it did not sanction Venezuela, India was one of
the 57 countries that cosigned a statement of support for Venezuela.
 NAM was hosted last year in Venezuela where the Indian delegation was led by the then Vice-President
 Venezuela is one of the main energy suppliers to India and instability in country could affect India’s energy needs.

Modi targets Pakistan at G20

 Naming Pakistan-based terror groups LeT and JeM, Modi said some countries were using terror as a tool to achieve
political objectives and pressed for “deterrent” action by G20
 Prime Minister presented an 11-point ‘Action Agenda’ which included suggestions for exchange of lists of terrorists
among G20 nations, easing and expediting extradition, choke funds and weapon supply
 FATF and other mechanisms to choke sources of funds to terrorists should be strengthened, he said.
 On the pattern of FATF, an Explosives Action Task Force (EATF) should be constituted “so that the sources of
deadly arms reaching the terrorists can be ended,” he added.

The Hamburg tussle: working around Donald Trump at G20

 G20 points: Digitization, automation, cyber, migration, terrorism decentralized/dispersed, bilateral meetings
 Final statement did not hide the fact that U.S. policy currently runs against the global consensus, noting America’s
withdrawal from the Paris climate agreement but declaring that the other 19 countries recognise the pact

G20 hails India’s labour reforms, start-up policy

 Acknowledging the steps being taken by India for sustainable and inclusive growth as well as support to global
economy, G20 praised initiatives for promoting EOB, start-up and labour reforms.
 India is popularising a number of derivative instruments to enhance resilience of its economy.
 India is facilitating ECB by start-ups to encourage innovation and EOB
 Labour market reforms to provide security to workers, increase female participation
 The areas where India ranks poorly as per WB ranking include starting a business, construction permits, registering
property, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
 The country has implemented a spate of reforms in the recent months in areas like insolvency, taxation and starting a
business and expects the rankings to improve substantially.
 The acknowledgement of various reform measures by G20 has come as the latest boost to hopes for better ranking
 Institutions like the World Bank, IMF, WTO, OECD, ILO, WHO and FSB are among the partners to the G20.
 G20 Hamburg Action Plan said closer partnership and action by G20 members will boost shared prosperity.
 Weak productivity growth, income inequality and ageing populations represent challenges to growth in the longer
term,” the G20 Action Plan noted.
 It included new policy actions to tackle challenges in economies, focusing on initiatives that foster inclusive growth,
enhancing resilience and further the G20 efforts to implement structural reforms.

UN-HABITAT
 India elected as the president of the UN-Habitat, an organ of UN promoting sustainable human settlements
 58-member Governing Council
 3RD time that India has been elected to lead this organisation after 2007 and 1988.
 UN Human Settlements Programme (UN–Habitat) established in 1978 as an outcome of the First UN Conference on
Human Settlements and Sustainable Urban Development (Habitat I) held in Vancouver, Canada in 1976.
 It is mandated by UNGA to promote socially and environmentally sustainable towns and cities with the goal of
providing adequate shelter for all.

About MTCR
 Established in April 1987 it aims to limit the spread of ballistic missiles and other unmanned delivery systems
carrying a 500-kilogram payload at least 300 kilometers or delivering any type of weapon of mass destruction.

For a nuclear-free world

 Adoption of UN pact to ban nuclear weapons underscores a paradigm shift in discourse on global disarmament.
 Goal of elimination of these weapons has been disentangled from the narrow focus on the maintenance of a deterrent
by the nuclear weapons states against threats from one another.
 Abolition is premised on danger to the very survival of civilisation from another holocaust.
 The new treaty, which 122 nations have approved, outlaws production, stockpiling and use of nuclear weapons.
 The ban on the conduct of underground explosions envisaged under Article 1 is a breakthrough.
 The 1996 CNTBT has not entered into force because many among the 44 designated nuclear-capable states, whose
ratification is mandatory under the pact, have not come on board.
 Assistance for people exposed to extreme radiation spelt under Article 6 of the current treaty.
 The world’s nuclear powers have remained defiant ever since its adoption.
 India said that it was “not convinced” that the proposed conference could address the longstanding expectation
 Maintained that Geneva-based Conference on Disarmament is single multilateral disarmament negotiation forum.
 US, UK and France said they have not taken part in the negotiation of the treaty and do not intend to sign

Commonwealth card mooted

 Business Travel Card scheme used across APEC for promoting intra-Commonwealth trade and investment
 APEC scheme includes 19 fully participating countries
 52 Members of the Commonwealth to explore the opportunities for trade and prosperity which exist within the
Commonwealth and develop their trading relationships with one another

No change in India’s stance on UNSC veto: Syed Akbaruddin

 India & G-4 ready to accept UN permanent Security Council seat without veto for the first 15 years

India’s Security Council seat bid gets Dutch help

 Netherlands has extended support to India’s membership bids for the United Nations Security Council, NSG,WA, AG
 India accepted membership of MTCR last year when the Netherlands had the chairmanship

Delay in quota reforms to erode IMF’s credibility, says Jaitley

 Need for enhanced surveillance by IMF to address vulnerabilities in global monetary and financial systems.
 IMF needs to be sufficiently resourced to be able to fully discharge this responsibility. It also needs to function as a
quota-based institution,” he said at the meeting of IMFC.
 “We are disappointed that the deadline for completing the 15th GRQ (General Review of Quotas) has been pushed
back to no later than the 2019 annual meetings,”
 IMF quota reforms would give more say to developing nations in the activities of the multi-lateral organisation.
 Also the quota reform would reflect the changed economic realities

BRICS to discuss steps to boost investment

 Proposal to frame ‘guiding principles’ for investment policymaking, steps to promote e-commerce
 Governments should avoid protectionism to investment and that “investment policies should establish open, non-
discriminatory, transparent and predictable conditions for investment.”
 Dispute settlement procedures should be fair, open and transparent

BRICS backs India’s fight against terrorism: Singh

 India urged BRICS to step up the fight against global terrorism, climate change and to back economic globalisation
 BRICS supported India’s call for CCIT
 Ministers reiterated their support for more balanced economic globalisation, trade, equitable, inclusive, innovative,
invigorated and interconnected world economy.
 Global power axis is shifting away from the Pacific-Atlantic region. Today, it is the Indo-Pacific (BRICS)
 It is in the Indo-Pacific that we have the economies of scale, and it is here that we have big consuming markets.
 70% of container trade of the world takes place.

Meeting of BRICS Ministers of Education-Labour

 Promoting equity in education, quality education and organizing student exchanges.
 Beijing Declaration on Education reaffirms SDG 4 (quality education).
 Encourage universities to participate in the BRICS University League, BRICS Network University
 BRICS Labour and Employment Ministerial Declaration called upon strengthening collaboration and cooperation on
these through appropriate institutionalization.

$1 mn fund to bolster BRICS media

 To expand BRICS’s footprint in the global media space, balanced reporting, digital media, financial information
services and promoting P2P contacts
 BRICS media must innovate, across multimedia platforms, in order to remain unique and relevant
 To challenge the often “highly biased content” of the current mainstream media.

Think tank snub clouds India-Singapore ties

 Shangri-La dialogue: India’s decision to withdraw its delegation led by Minister of State for Defence
 Organisers informed government that Indian Minister did not rank as highly as Pak’s Chairman Joint COSC
 Delhi was pulling out as the speaking slot confirmed was “not in line with their expectations”.
 Indian High Commissioner to Singapore did attend all sessions of the conference.
 Shangri-La Dialogue, funded and hosted by the Singapore government, is a unique “track-one” conference that
defence ministers, officials and military chiefs of 28 Asia-Pacific countries, including China and US attend each year.
 While speaking at the event is considered important, the Dialogue is known more for the opportunity it gives speakers
to meet on the sidelines for bilateral talks.
 India’s decision to pull out meant missing out on possible meetings with defence Secretaries and defence ministers
 India also gave up the chance to make a proper rebuttal of the presentation by pak on CPEC
The UN Refugee Convention (1951):
 It grants certain rights to people fleeing persecution because of race, religion, nationality
 Principles of non-discrimination, non-penalization and non-refoulement.
 However, people migrating due to environmental disasters have no such recognition of their ‘refugee’ status
 Paris agreement has mentioned the rights of ‘migrants’ in its Preamble.
 Agreement, in Loss and Damage section, creates a task force for recommendations for addressing climate migration
 Recommendations of the task force have no binding authority;
 No details are provided on its functions, operations, funding and other aspects.

RAISINA DIALOGUE
 The second edition of Dialogue tackled the theme of ‘The New Normal: Multilateralism with Multipolarity’.
 Neighborhood first: vision for a “peaceful and harmonious” South Asia
 Challenges to globalization: sentiment against trade, migration and protectionist attitudes
 PM also highlighted that connectivity could not “override sovereignty”
 It was held jointly by MEA and the Observer Research Foundation (ORF), an independent think tank.
 The first edition of the conference was held in March 2016 with the theme “Asian Connectivity”.

14TH EDITION OF PRAVASI BHARATIYA DIVAS-2017

 The theme of 2017 PBD was “Redefined Engagement with Indian Diaspora”.
 The deadline for PIO card conversions to OCI has also been extended to June 30, 2017, without any penalty.
 Annual remittance from overseas Indians stood at over $69 billion
 It has traditionally been held on January 9 to commemorate the return of Mahatma Gandhi
 Launched in 2003, it is an annual event

SECURITY COUNCIL RESOLUTION 2322

 Aimed at enhancing and fortifying judicial cooperation in countering terrorism.
 Bilateral and multilateral treaties and designation of national authorities for mutual legal assistance and extradition.
 Checking the flow of foreign terrorists and sharing of available information including their biometric
 The proposed judicial cooperation would help in mobilizing tangible evidence to ensure admissibility in courts.
 International databases would be helpful in preventing terrorists from entering/travel from one State to another.
 Would end the stalemate in extradition of wanted terrorists and providing safe havens.

UN BODY DEFERS NHRC ACCREDITATION

 Global Alliance for National Human Rights Institutions (GANHRI), affiliated to the UN High Commissioner for
Human Rights, has deferred NHRC re-accreditation until November 2017.
 Reasons: Selection process not transparent
 Non-independent investigators
 Only 20% of the NHRC’s staff is women
 Mammoth backlog of cases-around 40,000 cases
 A-status accreditation (full compliance with Paris Principles) grants participation in the work and decision making of
NHRI’s International Coordinating Committee as well as work of Human Rights Council and other UN mechanisms.

INDIAN OCEAN RIM ASSOCIATION (IORA)

 IORA held its first summit meeting in Jakarta on the 20th anniversary of its formation.
 Theme of conference was Strengthening Maritime Cooperation for a Peaceful, Stable and Prosperous Indian Ocean
 21 member states issued a strategic vision document, known as the Jakarta Concord
 Maximizing the potential of trade, investment and economic cooperation in the region, address non-traditional issues,
such as illegal, unreported and unregulated fishing, human trafficking, drug trafficking, illegal migration and piracy.
 IORA developed its first Action Plan for 2017-2021.
 The first-ever leaders’ summit has infused the two-decade-old forum with purpose.
 The organisation was first established as Indian Ocean Rim Initiative in Mauritius
 Its seven dialogue partners are the US, China, Egypt, France, Germany, Japan and the UK.

TIR CONVENTION
 India's accession to the Customs Convention on International Transport of Goods
 Convention will help Indian traders to have access to fast, easy, reliable and hassle free international system for
movement of goods by road or multi- modal means across the territories of other contracting parties.
 Inspection of goods at intermediate borders shall be obviated due to reciprocal recognition of Customs controls.
 Customs clearance can take place at internal Customs locations thereby avoiding clearances at Border Crossing Points
and ports that may often be congested.
 Reduces risk of presenting inaccurate information & only approved transporters and vehicles are allowed to operate.
 No need for payment of taxes and duties en route.
 Precludes the need to file multiple declarations satisfying national laws of the different transiting countries.
 1975 TIR Convention, is an international transit system under UN Economic Commission for Europe (UNECE)

COMMISSION ON THE LIMITS OF THE CONTINENTAL SHELF (CLCS)

 India will- for the first time in two decades- not have a member in U.N. scientific body
 CLCS is to facilitate establishment of the outer limits of the continental shelf beyond 200 nautical
 CLCS has five-year tenure and elections are due in June for the 2017-2022 term.
 MEA, which nominates Indian candidates, chose to nominate a person to another U.N. body, called ITLOS
 India became a signatory to the UNCLOS in 1982 and has had continuous representation in CLCS, ITLOS and ISA (3
institutions under UNCLOS)
 China and Pakistan would likely “grab” two of the five seats allotted to the so-called Asia-Pacific group.
 A membership of the commission allows to gauge claims by countries to parts of the seabed
 India has had disputes with several neighbours- Pakistan, Bangladesh and Sri Lanka- over how the continental shelf
can be fairly distributed.
 Applied for extending EEZ up to 350 nautical miles from the existing 200 nautical miles.

Thinking multilateral
 Write BRI and Shangri-la.
 India is working on its own version of multilateral forums. The ‘Raisina Dialogue’ and ‘Gateway of India Dialogue’
have celebrated two successful editions.
 The third engagement was at the SCO
 Indian government has invested significant diplomatic capital in bilateral engagements.
 However, regional multilateral engagements are equally important, given the commonality of threats
 They also provide avenues for bilateral discussions on the sidelines. (BRICS)
 Until any platform disregards India’s ‘core interests’, New Delhi should consider attending
Oceania

India and Australia

 Australia promised on uranium even as both countries signed six agreements, including one on countering terrorism.
 Australia has about 40 per cent of the world’s uranium reserves and exports nearly 7,000 tonnes annually.
 Partnering with India’s 24x7 Power For All, Smart Cities and MII
 Both sides agreed to extend bilateral engagement to the Asia- Pacific region.
 Bilateral maritime exercise named AUSINDEX in the Bay of Bengal in 2018 and also pledged to hold a joint exercise
of the Special Forces in 2017 and first bilateral Army-to-Army exercise later this year.
 Have shared interests in ensuring maritime security, SLOC, navigation and overflight
 Australia-India Strategic Research Fund worth more than $100 million has enabled our sharpest minds to collaborate
in areas such as food security, health, quantum computing, nanotech and astronomy.
 Through the Government’s New Colombo Plan, I want to see Australians choosing India as place to study
 Collaboration between our institutes on high-end research, innovation, SNT
 Combatting Terrorism and OC, Civil Aviation Security, Environment, Climate and Wildlife, Sports, arrangement
between ISRO and Australia on Cooperation in Earth Observation
 Major obstacles in CEPA: India has been reluctant to reduce duties on wine, dairy, pharmaceuticals, fruits and meat.
 India's demands: eliminate duties on textiles, automobile components and fresh fruits as well as ensure more market
access - including easier mobility of high-skilled professionals
 Historic ties, cultural links and P2P
 Indian-origin residents are 4TH largest group of overseas-born Australians, representing close to 2% of population.

Canberra keen on joining naval games

 Australia is keen on joining the Malabar exercises and has requested observer status
 Japan and the U.S. are keen on expanding the games but India has been reluctant to antagonise China.
 Australia had been a part of the exercises in 2007.

Australia wants a LEMOA

 Australia has put forward a proposal to have a logistics support agreement with India on the lines of US.
 However, India has informally conveyed that it would like to first operationalise the LEMOA with the U.S. and
access its merits and consider other agreements based on the necessity

Australia visa cut to hit Indian IT workers

 The programme, known as 457, allows businesses to employ foreign workers for a period up to four years in skilled
jobs where there is a shortage of Australian workers.
 Would replace the programme with a more stringent system, making it difficult to hire non-Australian citizens
 Amongst the measures planned are reductions in the tenure of many of the visas from four years to two years
 Visa fees are set to increase and the visas will be restricted to filling “critical skills shortages”.
 Applicants must be permanent residents for at least four years - three years longer than at present - and must be
committed to embrace "Australian values".
 Prospective citizens will have to pass a standalone English test.
 India provides the highest number of temporary skilled workers to Australia of any country
 Indian government has warned that the move could have an impact on negotiations on the free trade agreement
 New Zealand has also tightened its visa conditions for skilled migrants.
 UK banned the issue of a short-term ‘Tier 2’ visa, which was primarily being used by Indian IT service companies to
send engineers to work on projects in the UK.

United states

Trump, Modi review progress of June initiatives

 First shipment of American crude for India reached
 To enhance peace and stability across the Indo-Pacific region by establishing a new 2-by-2 ministerial dialogue
involving defence and foreign ministers
 Trump and Modi looked forward to the Global Entrepreneurship Summit in India this November.

U.S. prods India on Pyongyang

 India is facing increased pressure to reduce North Korea’s diplomatic presence in the country
 India has criticised recent North Korean missile launches and nuclear tests.
 India has maintained ties with North Korea since the birth of the nation following the Korean war in the 1950s, and
North Korea had been an active member of NAM during the Cold War.
 However, bilateral ties cooled in the 1990s when Pakistan extended support to the country’s nuclear programme.
 Officials pointed out that ties between Pakistan and North Korea were no longer on the same scale.
 North Korea has exploited export rules to earn much-needed foreign remittances.
 Another issue is the North Korean ability to attack political or diplomatic opponents across the world.

India cuts down on U.S. lobbying to lowest in 7 yrs

 The Indian government has slashed its expenses towards lobbying in the U.S.
INDIA-USA:
 In March 2016, India dragged the US to WTO’s dispute settlement body against the latter’s measures imposing
increased fees on certain applicants for L-1 and H-1B visa categories.
 India has alleged that the US is violating its obligations under MFN - General Agreement on Trade in Services -
Movement of Natural Persons Supplying Services
 Congressional report has warned American lawmakers that if visa dispute between India and US moves to formal
settlement phase, it could possibly result in WTO-authorised trade retaliation against the U.S.
 Major Defence Partner: US treating India as its closest ally and partner for TOT
 Defence Framework Agreement in 2015 laid a blueprint for collaboration between the defence establishments
 U.S.-India DTTI, logistics support agreement Logistics Exchange Memorandum of Agreement (LEMOA)

U.S. changes laws for easy transfer of arms to India

 Recognising India’s status as a ‘Major Defence Partner,’ the U.S. has made changes in its export control laws that will
benefit India by facilitating smoother TOT and arms.
 The new rule “creates a presumption of approval” for Indian firms seeking to import the Commerce Department-
controlled military items, except WMD

MEA accepts U.S. use of ‘administered Kashmir’

 In contrast to the government’s position earlier
 GOVT: Neutrality of the phrase “Indian-administered Jammu & Kashmir” is artificial
 Similar term has been used in the State Department’s country reports on terrorism brought out every year

Westinghouse’s $20 billion nuclear deal needs a reboot

 Westinghouse will need to re-negotiate its pact with NPCIL
 Westinghouse is going through a bankruptcy procedure announced by its Japanese parent Toshiba
 New model under which they will design the reactor and provide consultations, but Indian companies would be
entrusted with the actual construction of the plant.

Indo-U.S. - MODI VISIT

 Fight against terrorism as a cornerstone of mutual cooperation
 Went beyond the usual American position on Pakistan that usually pulls it up for harbouring terrorist groups and
echoed Indian concerns regarding CPEC
 U.S. State Department moved to make Syed Salahuddin a specially designated global terrorist
 Called on Pak to bring to justice perpetrators of 26/11 Mumbai, Pathankot, and other terrorist attacks
 Commitment to continuing the course on strategic convergence in Asia Pacific, maritime and intelligence cooperation,
increasing defence trade partnership and added energy as a new thrust area of cooperation.
 Sale of Guardian drones, Apache helicopters and C-17 aircraft
 Emphasis shifting to trade and economic ties with references to “balancing the trade deficit”
 North Korea is a new entrant into the joint statement with the leaders calling his “destabilizing pursuit of nuclear and
ballistic missile programs, a grave threat to regional security and global peace”.
 Trump welcomed “further Indian contributions to promote Afghanistan’s democracy, stability, prosperity”
 Visa and climate issue not brought up.
 “White Shipping” data sharing arrangement allows countries to share data on maritime traffic and domain awareness.
 Reiterated importance of respecting freedom of navigation, overflight, and commerce throughout the region, a
significant toning down of the language that possibly reflects Mr. Trump’s current ties with Beijing.
 President’s daughter will lead the U.S delegation to Global Entrepreneurship Summit
 GES is a key foreign policy initiative of Obama to bring together global entrepreneurs and innovators

Hizb’s funding will taper off, says Home Secretary

 Home Secretary said that it would help choke his movements and financing, isolate Pakistan
 Pakistan criticised the US announcement to designate Syed Salahuddin as a terrorist

Whole world looking at India, says Modi

 India’s growth presents a win-win partnership for both India and the U.S., Modi told a group of American CEOs
 Some CEOs spoke about the impact of GST, but PM explained that overall impact of GST would be beneficial to all
 He said 7,000 reform measures have been undertaken by the government for ease of doing business

For a stronger India-U.S. bond

 U.S. is India’s second-largest trading partner and the fifth-largest source for FDI (defence, real estate and insurance)
 Equally, the U.S. remains a favourite destination for Indian companies.
 In the last five years, total trade in goods has remained at around $64 billion. In services, there has been a surge
 Concerns like the trade deficit and labour mobility
 Indian firms firmly support weeding out the abuse of the visa system. Many have committed to local hiring, including
Infosys, which has announced a plan to hire 10,000 Americans.
 Resultant defence contracts are helping create jobs in the U.S.

March towards isolationism

 President’s near-repudiation of NATO’s key principles
 NATO has been an article of faith in Europe’s post-war partnership with Washington.
 Washington remained equally unyielding on GHG and global trade.

What is the H1-B visa programme Bill?

 High-Skilled Integrity and Fairness Act of 2017 that will overhaul the popular H1B and L1 visas
 The Bill prohibits companies from hiring H1-B employees if they employ more than 50 people and more than 50% of
their employees are H1-B and L-1 visa holders.
 Many companies use the H1B visa to replace American workers with foreign ones, as the latter can be hired at lower
salaries without compromising on the skill set. Bill explicitly prohibits replacement of American workers
 Earmark 20% of H-1B visas for small and start-up employers.
 Prohibit spouses of H-1B visa holders from working in the US.
 Give preference to students educated in the US for H-1B visas rather than computerized lottery system.
 Crack down on outsourcing companies that import workers for temporary training and then send them back home to
do the same job
 Bill seeks to increase the minimum salary of H1-B visa holders to $1, 30,000 per annum.
 Indian outsourcing firms such as Infosys, Wipro, Tata Consultancy Services will be badly hit
 H1B visa holders are allowed to apply for permanent residency as well as buy or sell property in the country.
 The H1-B visa is a non-immigrant visa

H-1B didn’t figure in Modi-Trump talks

 Signal that the government is not keen to jeopardise the larger Indo-U.S. strategic relationship
 H-1B programme is undergoing a legislative review and there’s not much the executive branch can do
 India may suffer disproportionately from changes to the H-1B visa regime, but that’s because it had also gained
disproportionately from the 25-year old programme
 IT needs to use this as an opportunity to change business model that has become a little stale
 It is prudent not to wade into immigration-related topics, usually considered domestic matters

Centre sees a thaw on H-1B

 Modi succeeded in making Trump recognise the contributions of Indian skilled professionals to American economy
 Though it was not mentioned specifically, Modi had an extensive discussion on the spirit behind the visa.
 Urged U.S. to develop a reflective, balanced and farsighted perspective on movement of skilled professionals.

INDIA: New visa regime kicks off

 These include liberalisation of the e-visa, tourist, business, medical and employment visas.
 New categories of visas such as intern visa and film visa have been introduced
 E-visas have further been divided into e-tourist, e-business and e-medical.
 The e-visa facility has been extended to the nationals of 161 countries for entry through 24 airports — earlier being
done through 16 airports and three sea ports, Kochi, Goa and Mangaluru — to tap the potential of cruise tourism
 This service will also be provided from Mumbai and Chennai seaports shortly.
 Window for application under e-visa has been increased from 30 to 120 days and duration of stay on e-visa has been
increased from 30 to 60 days with dual entry on e-tourist and e-business visa and triple entry on e-medical visa.

U.S. nixed India’s plea on reforms in medicine

 US opposed reforming medical innovation that currently pump up drug prices to unaffordable levels.
 India along with 11 SEA countries had proposed a discussion on an ‘Access to Medicines’ report by UN that had
recommended reforms in the funding of biomedical research and development.
 U.N. report says there is a need for an RD treaty and it recommended reforms in the area of biomedical R&D in a way
that it prioritises diseases that kill million of people in the developing world.

Indian drugmakers face squeeze in U.S.

 India’s small and medium-sized generic drugmakers say the threat of tougher rules and higher barriers for outsiders in
the U.S. healthcare market will force many to focus their expansion efforts on other countries.
 India supplies nearly a third of medicines sold in the U.S., the world’s largest healthcare market.
 Prospect of import tariffs and the U.S. boosting local drug manufacturing

Indian team in U.S. for defence technology talks

 To discuss co-development and co-production under Defence Technology and Trade Initiative (DTTI).
 Underwater surveillance systems such as sonars and sonobuoys are of particular interest to India

Modi, McMaster discuss security

 Modi held talks on Afghanistan, the West Asian region and the Korean
peninsula with the visiting U.S. National Security Adviser, the first high official of
the administration of Trump to visit
 The relations between India and Pakistan figured in McMaster’s discussions
with Mr. Sharif. The Sharif government also briefed about the situation in Kashmir

What is the lowdown on the crackdown on H-1B visas?

 The beneficiaries are selected through a lottery system as demand surpasses
supply every year.
 The programme was established to bring high-skilled workers not available
 in the country.
 The number of Indians leaving for America under this programme is unlikely to change any time soon, but the
composition of that crowd will change. The better and the brighter will find their route to America easier

U.S. keen to expand Malabar exercise

 The U.S. is keen on expanding Malabar trilateral exercises but it will be a decision based on discussion and consensus
 The first step is an observer status and then potentially as participants.
 Malabar is not to send a message to any specific country
 The underlying theme of Malabar is to understand each other’s SOP and ways of working
 Wide range of professional interactions during the harbour phase in Chennai
 The sea phase includes submarine familiarisation, air defence, medical evacuation drills, surface warfare,
communication exercise, and search and rescue operations.

U.S. Lockheed signs pact with Tata to make F-16 planes in India
 To replace the Russian MiGs under the Strategic Partnership model of DPP.
 Strategic Partnership model has four segments — submarines, single-engine fighter aircraft, helicopters and armoured
carriers/main battle tanks

U.S. proposes cut in aid to Pak.

 Military aid to Pakistan in 2018 be reduced to $100 million from $265 million in 2017.
 The foreign military funding is to help Pakistan buy military hardware.
 Reduction could affect Pakistan’s force and diminish its ability to patrol the maritime border, impact Pakistan’s ability
to fight terrorist organisations
 Pakistan plays a key role in U.S. counterterrorism strategy, the peace process in Afghanistan, nuclear non-
proliferation efforts, and stability and economic integration in South and Central Asia
 Trump administration has also proposed that the military grants may be converted to loans wherever appropriate

India flags U.S. military aid to Pakistan

 Raised the issue of continued American military assistance to Pakistan and sought an end to cross-border terrorism.
 Pakistan diverts U.S. military aid to target India
 U.S. has cleared the sale of 22 drones to India

Two M777 howitzers arrive from U.S.

 Dhanush, an upgraded and indigenous version of the Bofors gun, is in the final stage of trials
 Development of a new gun, the Advanced Towed Artillery Gun System (ATAGS) is progressing well.

Shoots take root: On Fed hike

 Growth in the world’s largest economy has gained traction and is on course to warrant further rate increases.
 Ongoing improvement in the job market and relatively high levels of consumer sentiment and wealth” that have
spurred household spending, an expansion in business investment and a global pickup in demand.
 India’s exporters can take heart that demand in one of the largest markets for their goods and services is likely to
continue to strengthen in the coming months.
 India’s monetary authorities can derive some reassurance that they are not alone in adopting a policy stance that
seems counter-intuitive to some in the light of slowing inflation

Can India decode Trump’s book of deals?

 Trump directed the USTR to “begin pursuing, wherever possible, bilateral trade negotiations to promote American
industry, protect American workers, and raise American wages.”
 It could impact WTO level negotiations and other proposed mega regionals
 What is causing worry to the Trump administration is the U.S. trade deficit, particularly on the goods front
 India’s share in overall U.S. trade deficit is too insignificant to cause any adverse impact on the U.S. economy
 Major products that the U.S. exports to India have tariffs between 0-10%. This is lower than the tariffs other countries
place on the same products in which the U.S. trades
 A more effective strategy would be to go in for greater engagement separately with the 50 States of that country.
 China gained its place among the ‘top five import countries’ in all U.S. States through a State-wise strategy that
involved massive publicity for its products, celebrity endorsements and greater support for its exports to the U.S

FATCA: Deadline, procedure and details

 Foreign Account Tax Compliance Act is a US law that requires US persons, including U.S. citizens who live outside
US, to report their financial accounts held outside of the U.S. and requires FII to report to the Internal Revenue
Service (IRS) about their U.S. clients.
 India signed an agreement with U.S., 2015, which enables automatic exchange of financial information
 Indian FI will provide the information to CBDT, which will then be transmitted to the U.S.
 The compliance is needed for bank accounts, mutual fund, national pension scheme and other such transactions.
 Has turned the simple, annual task of filing returns into quite an ordeal
 FATCA has severely limited investment options for Indian Americans.

Centre to raise with U.S. non-tariff barriers

 India is planning to take up with the Trump administration the “barriers” imposed by the U.S., which are hurting
Indian goods exports in sectors including agriculture, pharma and other industrial products.
 The U.S. “non-tariff / (SPS) barriers” include those imposed under laws concerning bio-terrorism, child-labour,
national security, ‘Buy America’ norms, registration fee
 India-U.S. Trade Policy Forum—main bilateral platform for discussing and resolving trade and investment issues.
 Pharma exports to the U.S. are hit by the increase in registration fees, approval delays and low approval rates
 Also, ayurveda and traditional Indian medicines are hit by the U.S. requirement of clinical trials
 Siddha and Unani are not allowed by the U.S. Federal Government.
 Basmati Rice exports will be hurt owing to import alerts due to the presence of pesticide residues.
 U.S. has imposed countervailing duties on Indian exports, including those by steel and paper industries.

U.S. visit aimed at deepening ties: Modi

 Partnership with US is multi-layered and diverse, supported by not just governments but all the stakeholders
 The drone sale enhances Indo-U.S defence cooperation. India has also expressed desire to buy armed Predator UAVs