Daily News Analysis With Answer Writing

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02 , November, 2020
 About Me
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 Explained: Malabar Exercise

What is Malabar Exercise?

It is a multilateral naval exercise that includes simulated war games
and combat manoeuvres. It started in 1992 as a bilateral exercise
between the Indian and US navies. Japan joined in 2015.

What is the difference this year?

• For the first time in over a decade, the exercise will see the
participation of all four Quad countries.
• India seeks to increase cooperation with other countries in the
maritime security domain and in the light of increased defence
cooperation with Australia.

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 Explained: Malabar Exercise
Why is Australia’s participation important?
India upholding the rules-based international order, respecting the rule
of law and freedom of navigation in the international seas and upholding
the territorial integrity and sovereignty of all states are essential.
As the standoff in eastern Ladakh continues, the participation of four
large navies from the Indo-Pacific region will send a message to China.

Does India conduct any other naval exercises with these

countries?
Over the last few months, the Indian Navy has conducted a number of
Passage Exercises (PASSEX) with navies from Japan, Australia and the
US. But those were basic exercises to increase operability between the
navies, while Malabar involves simulated war games.

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 Editorial: Quad
• Quadrilateral Security Dialogue (Quad) is the informal strategic dialogue
between India, USA, Japan and Australia with a shared objective to ensure and
support a “free, open and prosperous” Indo-Pacific region.

• The idea of Quad was first mooted by Japanese Prime Minister Shinzo Abe in
2007. However, the idea couldn’t move ahead with Australia pulling out of it,
apparently due to Chinese pressure.

• In December 2012, Shinzo Abe again floated the concept of Asia’s “Democratic
Security Diamond” involving Australia, India, Japan and the US to safeguard
the maritime commons from the Indian Ocean to the western Pacific.

• In November 2017, India, the US, Australia and Japan gave shape to the long-
pending "Quad" Coalition to develop a new strategy to keep the critical sea
routes in the Indo-Pacific free of any influence (especially China).
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 Editorial: Quad
 These changes could envelop a range of old institutions like the Five Eyes
— the Anglo-American alliance for sharing intelligence between the US,
UK, Canada, Australia and New Zealand — and the G-7 grouping that
coordinates Western policies on global economic management.

 We could also see the creation of a new League of Democracies that will
address a wide range of issues, including the defence of shared values,
commerce, corruption, taxation, climate change and digital governance.

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 Editorial: Quad
India’s Multilateralism phases:-
 Idealism was the hallmark of India’s internationalism in the 1950s,
the harsh politics of the Cold War quickly dampened it.

 In the 1970s, India embraced the radical agenda of a New

International Economic Order, as the leader of the Non-Aligned
Movement and the Group of 77.

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 Editorial: Quad
India’s Multilateralism phases:-
 End of the Cold War, the emergence of the unipolar moment and the
Washington Consensus in favour of globalisation. India focused on economic
reform and prevent the world from intruding too much into its internal
affairs. While the imperative of growth demanded a greater engagement with
the West, the fear of the US activism on Kashmir and nuclear issues saw
Delhi turn to Russia and China in search of a “multipolar world” that could
constrain American power. The BRICS forum with Russia, China, Brazil and
South Africa became emblematic of this strategy.

 the fourth phase in India’s multilateralism that is marked by three features

— the relative rise in Delhi’s international standing, the breakdown of the
great power consensus on economic globalisation, and the breakout of the
US-China rivalry.

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 Editorial: Quad

 The “Quad Plus” dialogue has variously drawn in Brazil, Israel, New Zealand,
South Korea, and Vietnam for consultations with the Quad members on
coordinating the responses to the pandemic.

 Trump has proposed the expansion of G-7 grouping to include Australia,

India, Russia and South Korea. Trump administration promote a “Clean
Network” that eliminates untrustworthy vendors from telecom systems,
digital apps, trans-oceanic cables and cloud infrastructure.

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 Editorial: Quad
o Britain is said to be developing plans to convene a coalition of 10 democracies,
including India, that can contribute to the construction of secure 5G networks
and reduce the current dependence on China.
o France and Canada have invited India to join the Global Partnership on artificial
intelligence that now includes 15 countries. The objective is to promote
responsible development of AI that is consistent with shared democratic values.

Unlike in the past, India now has the resources, leverage and political will to make a
difference to the global order.

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 Economy:
 The government proposes to slowly phase out the hike in Customs duties
levied earlier for protection of domestic manufacturing.

 This marks a departure from the earlier stance as the government has
progressively raised import duties for a number of manufactured products
including television, mobiles and household appliances over the last six years.

 During 2004-2017, India’s share in global manufacturing increased by 1.5

percentage points, while China gained a 18 per cent share.

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 Economy:
 A closer look at the regression data of India’s imports of raw materials,
intermediate goods, capital and consumer goods in the weighted average
of import tariffs during 1990-2017 shows that with even 1 per cent increase
in tariff, the imports decline by around $2 billion on an average, thus
making a case for improving the manufacturing base of the country.

 In the export basket, the highest share is of consumer goods, which are
manufactured products, followed by intermediate goods and these two
attract highest tariffs in the import basket, thus making a case against the
fact that higher tariffs have not protected these industries.

 “Other countries with much lower tariff structures have built

manufacturing bases, which have helped them in their exports,”

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 Economy:
 The government has moved towards plugging the loopholes for misuse in
rules of origin for imports. The earlier rules of origin would result in a lot
of misuse as unscrupulous elements would try to bypass the rules, which
in turn, would impact domestic manufacturing.

 “In the last budget, we amended the Customs Act, new rules of origin
have come which have become effective from September this year and
now importers are bound to specify what is the value addition is
happening so that they have taken Customs duty exemptions. So, such
misuse used to happen, which used to affect domestic manufacturing,
deprive the domestic manufacturer from a level playing field. So with
these things, domestic manufacturing, economy will move forward,”

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