In News:

The Government of India is launching the Fast Track Immigration Trusted Traveller Program (FTI-TTP) to streamline immigration at seven major airports.

Key Highlights:

• The initiative, inaugurated by Union Home Minister Amit Shah, aims to enhance the travel experience for Indian nationals and Overseas Citizen of India (OCI) cardholders.
• This comes seven months after the programme was first introduced at Indira Gandhi International (IGI) Airport, New Delhi. The airports included in this initial phase are: Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Cochin and Ahmedabad

Objectives of FTI-TTP

• Provide seamless and secure immigration services.
• Reduce human intervention using automated e-gates.
• Align with the Viksit Bharat@2047 vision for modern infrastructure.

How the Programme Works

The FTI-TTP simplifies immigration with automated e-gates. Travellers must complete a one-time online registration to enroll. The process involves:

• Online Registration: Submit personal details and upload necessary documents via the official portal (https://ftittp.mha.gov.in).
• Biometric Submission: Fingerprints and facial images must be submitted at an airport or Foreigners Regional Registration Office (FRRO).
• Immigration Clearance via E-Gates:
  • Passengers scan their boarding passes and passports at e-gates.
  • Biometrics are automatically verified.
  • Upon authentication, the e-gate opens, granting clearance.

Validity: Registration is valid for five years or until the registered passport expires, whichever comes first.

Who is Eligible?

The first phase of the FTI-TTP is open to:

• Indian nationals.
• OCI cardholders aged between 12 and 70 years.
• Children aged 12-18 can register using their parents’ email/phone number.
• ECR (Emigration Check Required) passport holders are not eligible.

Documents Required for Registration

• Passport-sized photograph (as per Indian passport specifications).
• Scanned copy of passport (front and back pages).
• Proof of current address.
• OCI card details (if applicable).

Key Points to Note

• Registration may take up to a month due to verification by field agencies.
• Applications with incorrect or outdated information may be rejected.
• In case of passport loss or expiry, travellers must reapply and submit fresh biometrics.
• Passports must have at least six months’ validity at the time of applying.
• For support, travellers can reach out via email at india.ftittp-boi@mha.gov.in.

Implementation Phases

The FTI-TTP will be implemented in two phases:

• Phase 1: Covers Indian citizens and OCI cardholders.
• Phase 2: Will extend to foreign travellers.
• The programme will be expanded to 21 major airports across the country.

Comparison with Similar Global Programmes

Several countries have implemented similar fast-track immigration systems:

United States: Global Entry

• Introduced in 2008.
• Offers self-service kiosks for pre-approved travellers.
• Requires background checks and in-person interviews.

United Kingdom: Registered Traveller Service

• Launched in 2015.
• Allows frequent visitors from select countries, including India, to use e-gates.
• Requires visa eligibility or multiple prior visits.

European Union: Smart Borders Initiative

• Implemented in 2016, with full deployment expected by 2024.
• Pre-registers biometric data for faster processing at Schengen Area borders.

Australia: SmartGate

• Started in 2007 for Australian and New Zealand passport holders.
• Uses automated kiosks for identity verification via passport scans and photos.

Saudi Arabia: Smart Travel System

• Launched in 2019.
• Uses automated e-gates for faster immigration clearance.
• Expanding as part of Vision 2030 to improve travel experience, particularly for Hajj pilgrims.

In News:

Days before demitting office, the Joe Biden administration has released an expansive regulatory framework on the export of artificial intelligence (AI) hardware such as graphics processing units (GPUs), which could have far-reaching consequences for India’s AI ambitions.

Three-Tier Framework for AI Hardware Export Restrictions

• Tier 1: Closest US Allies
  • Countries: Australia, Belgium, Canada, South Korea, UK, etc.
  • No restrictions on computing power deployment.
  • Minimal security requirements.
  • Impact: Free access to AI technology for these nations.
• Tier 2: Majority of Countries (Including India)
  • Countries: India, Brazil, South Africa, etc.
  • Restrictions: Limited to importing approximately 50,000 advanced AI chips (around $1 billion) through 2027.
  • Potential to Double Cap: If countries sign agreements to uphold strict security standards.
  • Impact on India:
    • Short-Term: Likely to fulfill current demand for 10,000 GPUs for the IndiaAI Mission.
    • Long-Term: Challenges in scaling AI infrastructure, with possible delays in large AI data centers and difficulty acquiring large-scale GPUs.
• Tier 3: Countries of Concern (Restricted Nations)
  • Countries: Russia, China, North Korea, Iran, etc.
  • No Access to US AI Technology: Nearly total prohibition of AI tech exports.

Special Provisions for India and China

• General Validated End User (GVEU) status for India and China:
  • India: Authorisation for civilian and military use, excluding nuclear applications.
  • China: Only civilian use permitted under similar conditions.

Why the US Imposed These Restrictions?

• National Security: Prevent adversaries (China, Iran, Russia) from acquiring advanced AI technologies.
• US Technological Leadership: To protect US AI leadership and prevent loss of competitive edge.
• Trusted Ecosystem: Build secure and trusted AI environments for allied nations.

Impact on India

• Short-Term:
  • IndiaAI Mission: Current procurement of 10,000 GPUs unlikely to be affected.
  • Subsidized GPUs: Available for startups, academia, and researchers.
• Long-Term Concerns:
  • Licensing Uncertainties: Possible delays in large-scale AI deployments and AI data centers.
  • Impact on Large Firms: Companies like Reliance and Yotta may face challenges scaling up AI compute infrastructure.
  • National AI Mission Challenges: Difficulty in acquiring enough GPUs for large-scale AI projects beyond 2027.
  • Strategic Leverage: US could use AI export restrictions to negotiate trade deals or tariff adjustments.

Nvidia’s Criticism of the AI Diffusion Rules

• Overreach and Bureaucratic: Nvidia criticized the 200+ page regulatory framework as excessive, secretive, and bureaucratic.
• Harming US Competitiveness: Claims that the rules would hinder US innovation and global leadership, weakening the competitiveness of the US semiconductor and software industries.
• Contrast with Trump’s Approach: Praises the earlier Trump administration for fostering AI growth through industry competition without compromising national security.

Enforcement of the Rules

• Regulatory Control: Managed by the US Bureau of Industry and Security (BIS) under the Department of Commerce.
• Technology Access: Ensures AI chips and models do not reach adversaries or nations posing security risks.

Potential Impact on India’s AI Strategy

• AI Hardware Infrastructure: Challenges in large-scale AI hardware deployment.
• Competitive Disadvantage: Potential delays or downsizing of AI data centers could affect India’s competitiveness in AI technology.
• Strategic Partnerships: India may need to secure General National Validated End User authorizations to ensure uninterrupted access to advanced chips.
• AI Market Growth: India’s AI market projected to grow to $17 billion by 2027, with an annual growth rate of 25%-35%.

In News:

Iran has announced plans to relocate its capital from Tehran to the Makran coastal region due to economic and environmental concerns.

Reasons Behind Relocation

• Overcrowding and Resource Constraints: Tehran, the capital for over 200 years since the Qajar dynasty (1794-1925), faces overpopulation, air pollution, water scarcity, and energy shortages.
• Strategic Importance of Makran: Located in Sistan and Baluchestan Province, Makran’s proximity to the Gulf of Oman enhances its potential for economic development.
• Economic and Maritime Significance: Home to key ports like Chabahar, Makran is vital for Iran’s petroleum reserves and coastal trade.
• Geopolitical Considerations: The development of Makran as an international trade hub could strengthen Iran’s economic ties with Central Asia and the Indian Ocean region.

About Makran

• Geographical Overview: A semi-desert coastal plateau shared by Pakistan and Iran, bordered by the Arabian Sea and the Gulf of Oman.
• Key Ports and Trade Routes: Gwadar (Pakistan) and Chabahar (Iran) serve as critical gateways to the Strait of Hormuz, a global oil supply route.

Alexander’s Invasion and Makran’s Historical Significance

Background of Alexander’s Invasion (327–325 BCE)

• Entry into India: Alexander, King of Macedonia (336-323 BCE), entered India via the Khyber Pass after conquering Kabul.
• Key Battles:
  • Battle of Hydaspes (Jhelum): Faced and defeated King Porus, later reinstating him as an ally.
  • Retreat at Hyphasis (Beas River): His army, exhausted and wary of the Nanda Empire’s strength, refused to march further east.

The Gedrosian Desert March

• Extreme Hardships: While retreating through the Makran Desert, Alexander lost a third of his army to dehydration, starvation, and exhaustion.
• Comparison with Cyrus the Great: Unlike Cyrus II, who failed to cross the desert, Alexander’s army endured the harsh terrain, albeit with heavy casualties.

Impact of Alexander’s Invasion on India

• Cultural and Trade Exchanges: Facilitated early Indo-Greek interactions and opened key trade routes linking South Asia and Europe.
• Greek Settlements: Established cities like Alexandria (Kabul) and Boukephala (Jhelum), influencing local governance and trade.
• Mauryan Expansion: Weakened regional rulers enabled Chandragupta Maurya to establish the Mauryan Empire.
• Influence on Art and Culture: Indo-Greek fusion led to the Gandhara School of Art, integrating Greek and Indian artistic traditions.

In News:

Israel and Hamas have agreed on a Gaza ceasefire and hostage release deal after 15 months of war.

Key Highlights:

Ceasefire Agreement Details:

• Location: The deal was brokered in Doha, Qatar.
• Approval Process: The deal must be approved by Israel’s Cabinet to take effect.
• Mediators: The agreement was negotiated by Qatar, Egypt, and the United States, with their involvement ensuring the implementation of the deal.

Phases of the Deal:

• First Phase (42 Days):
  • Release of 33 hostages by Hamas, including women, children, and elderly people.
  • Hostage Exchange: Hostages will be exchanged for Palestinian prisoners in Israeli jails.
  • Gaza Ceasefire and Withdrawal: Israeli forces will gradually withdraw from Central Gaza and move to the borders.
  • Return of Displaced Palestinians: Displaced Palestinians will be allowed to return to Northern Gaza.
  • Humanitarian Aid: 600 humanitarian aid trucks will be allowed into Gaza daily.
• Second Phase:
  • Hostage Release: Negotiations will begin for the release of remaining hostages.
  • Full Israeli Troop Withdrawal: Israel will fully withdraw its forces.
• Third Phase:
  • Reconstruction of Gaza: Overseen by Egypt, Qatar, and the United Nations.
  • Reopening of Border Crossings: For movement in and out of Gaza.
  • Return of Hostage Bodies: Return of any bodies of hostages who died.

Background of the Israel-Hamas Conflict:

• Start: On October 7, 2023, Hamas launched an attack on Israel, called Operation Al-Aqsa Flood, causing significant casualties.
• Israeli Response: Israel launched Operation Iron Sword in retaliation.
• Casualties: The conflict resulted in 46,707 Palestinian deaths, mostly civilians, and 1,210 Israeli deaths.

About Gaza Strip:

• Location: A Palestinian enclave on the Mediterranean Sea, bordered by Israel and Egypt.
• Administration: The Gaza Strip is governed by Hamas since 2006.
• Movement Restrictions: Israel controls air space and shoreline, imposing restrictions. Egypt controls one border and also restricts movement.

Gaza Truce Deal:

• Nature: A proposed ceasefire to end the ongoing conflict.
• Primary Parties: Israel and Hamas.
• Supporting Nations: United States, Qatar, and Egypt.
• Significance:
  • Aims to stop fighting and address the humanitarian crisis in Gaza.
  • Potential to influence regional stability and Israeli politics.
  • Marks an important moment in U.S. diplomacy under the Biden administration.

In News:

In January 2025, Indonesia officially joined the BRICS group as its 10th member, signaling the expansion of this influential coalition of emerging economies. The addition of Indonesia, a Southeast Asian powerhouse, strengthens BRICS' global position and highlights the group's evolving dynamics.

BRICS Overview:

BRICS (Brazil, Russia, India, China, South Africa) is an informal intergovernmental group that fosters cooperation among major emerging economies. Initially coined as BRIC by economist Jim O'Neill in 2001, the group became BRICS in 2010 with the inclusion of South Africa. The bloc has grown steadily, with Indonesia now joining as its 10th member.

Recent Expansion:

• In 2023, invitations were extended to Saudi Arabia, Iran, UAE, Egypt, Ethiopia, and Argentina.
• By 2024, Iran, Egypt, Ethiopia, and UAE had joined as permanent members.
• Indonesia's membership was finalized in 2025, following its presidential elections and government formation.

Key Objectives of BRICS:

• Economic Growth: Promote trade, investment, and infrastructure development.
• Global Governance Reform: Advocate for equitable representation in global institutions like the UN and IMF.
• Cultural Exchange: Strengthen people-to-people connections and cultural ties.
• South-South Cooperation: Foster collaboration among developing nations.

BRICS Structure and Mechanisms:

• New Development Bank (NDB): Established in 2014, the NDB finances sustainable development projects in BRICS countries.
• Contingent Reserve Arrangement (CRA): A $100 billion safety net for financial crises.
• BRICS Academic Forum: Encourages academic collaboration across member states.

Global Influence and Economic Impact:

• Global Share: BRICS+ represents over 45% of the world’s population and 35% of global GDP (PPP-based).
• Strategic Position: The group acts as a counterbalance to the G7, challenging Western-dominated global financial systems.
• Financial Independence: BRICS aims to reduce dependence on the US dollar by facilitating local currency transactions and exploring a common currency.
• Technology Collaboration: Member countries, such as India and China, collaborate on digital payments and renewable energy technologies.

Indonesia’s Entry into BRICS:

Indonesia, the world’s fourth-most populous nation, strengthens BRICS’ representation in Southeast Asia. The country brings a robust economy and extensive trade networks, boosting the group's negotiating power. Indonesia’s membership was approved during the 2023 BRICS Summit and finalized in January 2025.

• Strategic Importance for Indonesia: The membership aligns with Indonesia's goals to enhance global cooperation, particularly with the Global South. It also reflects Indonesia's growing influence in international trade and geopolitics.

BRICS Challenges:

• Diverse Interests: Differences in economic priorities, such as India's ties with the US and Russia-China’s geopolitical rivalry, complicate consensus-building.
• Geopolitical Tensions: Disputes like the China-India border issue and Russia’s sanctions limit BRICS' ability to present a unified stance.
• Economic Sanctions and Internal Challenges: Countries like Russia face Western sanctions, while domestic issues in Brazil and South Africa divert attention from regional collaboration.

Significance of BRICS’ Expansion:

The expansion of BRICS marks a pivotal shift in global power dynamics, with a focus on South-South cooperation and equitable global governance. Indonesia’s membership further solidifies the group’s influence in Southeast Asia and adds to its efforts to challenge the dominance of Western-led financial institutions.

• Local Currency Use: The group promotes the use of local currencies for trade to reduce reliance on the US dollar.
• Global South Advocacy: BRICS champions the cause of developing nations, ensuring that emerging economies have a voice in global governance.

Recent and Upcoming BRICS Summits:

• 16th BRICS Summit (2024): Held in Kazan, Russia, with a focus on strengthening local currencies and promoting non-dollar transactions.
• 17th BRICS Summit (2025): Scheduled for July 2025 in Rio de Janeiro, Brazil, under the theme "Global South," with an emphasis on payment gateways to facilitate intra-BRICS trade.

In News:

• Trinidad and Tobago declared a state of emergency, in response to a surge in gang violence, which raised the annual death toll to the highest since 2013.

Trinidad and Tobago:

• Location: An island nation in the southern Caribbean, near Venezuela and Guyana.
• Capital: Port of Spain.
• Population: Approximately 1.5 million.
• Ethnic Composition: African (36.3%), Indian (35.4%), Mixed (22.8%), and others.
• Religions: Christianity (64%), Hinduism (18%), Islam (5%), and others.
• Independence: Gained from the UK on August 31, 1962, and became a republic in 1976.
• Member of: Caribbean Community (CARICOM), Commonwealth of Nations, and the United Nations.
• Major Rivers: Ortoire and Caroni.
• Geography:
  • Total Land Area: 5,128 sq. km (Trinidad: 4,768 sq. km, Tobago: 300 sq. km).
  • Climate: Tropical, with dry and rainy seasons.
  • Highest Point: Mount Aripo.
  • Natural Resource: Pitch Lake, the world’s largest asphalt reservoir.
  • Mountain Range: Northern Range, part of the Andes extension.

Economic and Cultural Significance

• Exports: Major exporter of liquefied natural gas (LNG), methanol, ammonia, and petrochemicals.
• Culture: Known for Carnival, Calypso music, Soca, and the Steelpan (the only musical instrument invented in the 20th century).
• Infrastructure:
  • Ports: Port of Spain, Point Lisas, Scarborough.
  • Airports: Piarco International Airport (Trinidad) and A.N.R. Robinson International Airport (Tobago).

Engagement with India

• Trinidad and Tobago became the first Caribbean country to adopt India’s UPI platform.
• Both countries granted each other Most Favored Nation (MFN) status in 1997.
• Bilateral trade reached USD 368.96 million in FY 2023-24.
• The Indian diaspora constitutes about 42% of the population.

Past Emergency Declarations:

• 2014: State of emergency declared in response to gang violence.
• 2021: Emergency declared for Covid-19 restrictions.
• 2011: Limited state of emergency for drug-related crimes.

In News:

• On January 7, 2025, during the inaugural India-Malaysia Security Dialogue in New Delhi, both countries agreed to enhance cooperation in critical minerals and rare earth elements (REEs).
• The meeting was co-chaired by India's National Security Adviser, Ajit Doval, and Malaysia’s Director General of the National Security Council, Raja Dato Nushirwan Bin Zainal Abidin.
• The agreement follows the upgrade of bilateral relations to a Comprehensive Strategic Partnership during Malaysian Prime Minister Anwar Ibrahim’s visit to India in August 2024.
• The dialogue also focused on other security aspects such as counter-terrorism, cyber security, and maritime security.

Importance of Critical Minerals and REEs:

• • Critical Minerals: These are essential for a variety of industries like IT, energy, and defense. They are integral to manufacturing electric vehicle batteries, solar cells, and advanced electronics.

• • Rare Earth Elements (REEs): Used in high-tech applications such as wind turbines, electric vehicle engines, and high-powered magnets. While their extraction is not rare, it is technically difficult due to their complex nature.

Strategic Relevance:

• • Global Demand: The global demand for critical minerals is rising, and both countries see it as a strategic necessity to ensure a stable supply of these materials.
  • Malaysia's Resources: Malaysia possesses significant deposits of non-rare radioactive earth ores, including essential REEs like Neodymium (Nd), Dysprosium (Dy), and Praseodymium (Pr). These elements are crucial in today’s technological innovations.
  • India’s Dependence on Imports: India, which currently imports a substantial portion of its critical minerals, aims to diversify its supply chain by collaborating with Malaysia.

Sustainability and Ecological Accountability:

• • Both countries recognize the environmental challenges of mining these critical resources. Malaysia aims to adopt responsible mining practices that minimize ecological harm.
  • India seeks to ensure a supply chain that aligns with sustainable development goals, balancing economic needs with environmental responsibilities.

Enhancing Supply Chain Resilience:

• • Diversification of Supply Chain: This partnership aims to reduce India’s dependency on a limited number of countries for critical minerals, enhancing resilience against global supply chain disruptions.
  • Collaboration in Extraction and Processing: Both nations are exploring joint ventures in the exploration, extraction, and processing of critical minerals to boost their technological and economic standing globally.

Future Prospects:

• • The institutionalization of this dialogue through annual meetings is expected to strengthen bilateral cooperation in the critical minerals sector.
  • Increased cooperation is likely to enhance economic growth for both countries, aligning them strategically in the global minerals market as demand for these resources continues to soar.

Broader Security Cooperation:

• • Beyond critical minerals, the India-Malaysia Security Dialogue explored enhanced collaboration in areas like counter-terrorism, cyber security, maritime security, and defense industries.
  • This broadening of security cooperation complements the strategic minerals partnership, further solidifying the bilateral ties between the two nations.

In News:

Recently, Donald Trump threatened to take back the Panama Canal, calling the transfer treaty “foolish”.

Why Trump Called the Panama Canal Transfer 'Foolish'?

• Transit Fees:
  • Trump expressed frustration over high transit fees imposed by the Panama Canal Authority (ACP) on U.S. vessels.
  • In 2023, due to droughts affecting Lakes Gatun and Alhajuela (which are crucial for canal operations), the ACP reduced crossing slots by 36%, leading to an increase in transit fees for ships.
• Chinese Presence:
  • Trump is also concerned about the growing Chinese influence in the Panama Canal region.
  • In 2017, Panama became the first Latin American country to sign a Belt and Road Initiative (BRI) agreement with China, increasing Chinese investments.
  • Hutchison Ports PPC, a subsidiary of a Hong Kong-based company, operates ports near the canal, raising concerns over China's influence on logistical operations and potential surveillance capabilities.

The Torrijos-Carter Treaties and Canal Transfer:

• Panama Canal Treaty (1977):
  • The treaty transferred control of the Panama Canal from the U.S. to Panama by December 31, 1999.
  • The U.S. would no longer control the canal, and Panama would assume full responsibility for its operation and defense.
• Permanent Neutrality Treaty (1977):
  • Declared the canal to be neutral and open to vessels of all nations.
  • U.S. Right to Defense: The U.S. retained the right to defend the neutrality of the canal and had priority passage in case of military emergencies.

Panama’s Response to Trump’s Criticisms:

• Defense of Transit Rates:
  • President José Raúl Mulino rejected Trump’s claims, defending the transit fees as being in line with international standards and based on a transparent procedure.
• Sovereignty:
  • Mulino emphasized Panama’s sovereignty over the canal, asserting that Panama’s control over the canal was non-negotiable. He categorically denied the presence of Chinese soldiers in the canal, stating that there would never be any.

China’s Response:

• China's Position:
  • China's Foreign Ministry responded by emphasizing that the Panama Canal is a neutral passageway, a vital infrastructure for Panama and the global trade system.
  • China affirmed its respect for Panama's sovereignty and denied any military presence in the canal area.

Implications and Future:

• Diplomatic Tensions:
  • The issue of transit fees and foreign influence, particularly China's presence in the region, is likely to remain a point of diplomatic negotiation.
  • Panama is expected to assert its sovereignty and seek international support to prevent any external interference in the canal’s operations.
• U.S. Influence:
  • The U.S. might attempt to renegotiate terms related to the Panama Canal's operations, especially concerning transit fees and military rights, although Panama remains firm on maintaining control.

Torrijos-Carter Treaties:

• Significance:
  • Panama Canal Treaty and Permanent Neutrality Treaty marked a major shift in U.S.-Latin America relations, ending U.S. control and restoring Panamanian sovereignty.
  • The treaties also ensured the neutrality of the canal while maintaining U.S. military access in emergencies.
• Impact:
  • The treaties were a symbol of Panama’s regained sovereignty and played a key role in stabilizing relations between the U.S. and Panama, as well as resolving tensions over control of the canal.

In News:

Quad Foreign Ministers reaffirmed their commitment to a free, open, and peaceful Indo-Pacific. Marked the 20th anniversary of Quad cooperation, originally formed to respond to the 2004 Indian Ocean earthquake and tsunami.

Key Highlights:

• What is the Quad?
  • A strategic forum of the US, Japan, India, and Australia aimed at regional security and economic cooperation in the Indo-Pacific region.
  • Founded on shared principles of democracy, human rights, rule of law, and countering China's influence.
• Origins:
  • Quad traces its origins to the 2004 Tsunami relief efforts.
  • Formed formally in 2007, but Australia withdrew in 2008 due to regional tensions. It rejoined in 2017 following strengthened US-Australia ties.
• Commitment to Regional Security:
  • Focus on countering China’s assertive behavior in the Indo-Pacific.
  • Ensuring maritime security, countering illegal fishing, promoting infrastructure, and advancing economic cooperation.
• Key Initiatives:
  • IPMDA: Real-time monitoring of maritime activities.
  • MAITRI: Capacity-building for maritime security.
  • Quad Fellowship: Funds graduate-level STEM education in member countries.
  • Open RAN: Promoting secure 5G infrastructure.
  • Cancer Moonshot: Focus on cervical cancer prevention.
• Military and Naval Cooperation:
  • Malabar Exercises: Joint naval drills between India, Japan, the US, and Australia.
• ASEAN and Regional Cooperation:
  • Emphasis on ASEAN's central role in the Indo-Pacific region.
  • Support for the Pacific Islands Forum and the Indian Ocean Rim Association (IORA).
• Future Developments:
  • India to host the next Quad Summit in 2025.
  • Continued focus on sustainable regional development, scientific collaboration, and disaster relief efforts.
• Significance of the Quad for India:

• Strategic Importance:
  • Provides a platform to counter China's assertive policies, especially in the South China Sea and the "String of Pearls" strategy.
  • Aligns with India’s Act East Policy, enhancing ties with East and Southeast Asia.
• Maritime Security: Ensures freedom of navigation and counters illegal activities like piracy and illegal fishing in India’s maritime domain.
• Economic Opportunities:
  • Strengthens cooperation on infrastructure projects and trade initiatives, such as the Blue Dot Network.
  • Post-COVID, Quad may aid India in attracting manufacturing units shifting from China.
• Scientific and People-to-People Collaboration: Supports STEM education and enhances soft power diplomacy through academic and cultural exchanges.

In News:

In the weeks leading up to his return as US President, Donald Trump’s supporters are embroiled in a public dispute over skilled immigration and H-1B visas.

What is the H-1B Visa Program?

• Purpose and Overview:
  • The H-1B visa is a non-immigrant visa allowing U.S. companies to employ foreign workers in specialized occupations like STEM (Science, Technology, Engineering, Mathematics) and IT, which require at least a bachelor’s degree.
  • Introduced in 1990 to help U.S. employers fill positions when there’s a shortage of qualified domestic workers.
  • It allows workers to stay in the U.S. for a maximum of six years, with the option to apply for permanent residence (Green Card) or leave for 12 months before reapplying.
• Annual Cap and Exemptions:
  • 65,000 new visas are issued annually, with an additional 20,000 for those with a master’s degree or higher from a U.S. university.
  • Certain petitions, such as for continuing employment or positions in higher education or nonprofit research, are exempt from the cap.
• Dominance of Indian Beneficiaries:
  • Indians are the largest beneficiaries, accounting for over 70% of H-1B visa approvals annually since 2015, with China coming second at around 12-13%.

The Current Controversy

• Trigger for Debate:
  • The controversy was sparked by Sriram Krishnan, a Chennai-born tech entrepreneur appointed as Donald Trump’s top AI adviser. His post on X (formerly Twitter) in November 2024, advocating for unlocking skilled immigration, led to backlash within Trump’s anti-immigration base.
• The Political Divide:
  • Trump’s supporters, particularly from the MAGA (Make America Great Again) faction, voiced opposition to the H-1B visa program, arguing it undermines American workers and wages.
  • This prompted pushback from pro-H-1B advocates like Elon Musk and Vivek Ramaswamy, who argue that the program is crucial for addressing the U.S.'s STEM talent shortages.
• Economic and Political Context:
  • Immigration is a polarizing issue in the U.S., with a focus on low-skilled labor migration and its alleged effects on wages and job opportunities for American workers.
  • Trump’s stance against low-skilled immigration echoes similar critiques about H-1B workers being employed at lower salaries in tech companies, which some claim depresses wages and reduces job opportunities for U.S. workers.

Criticisms of the H-1B Program

• Abuse of the System:
  • Critics argue that companies exploit the H-1B program by hiring foreign workers, especially from India, at lower wages than American employees, particularly in tech industries.
  • Elon Musk suggests that the program is “broken” and needs reform, proposing raising the minimum salary for H-1B workers to make it more expensive to hire overseas talent.
• Salary Disparities:
  • Data from USCIS (U.S. Citizenship and Immigration Services) shows that 70% of H-1B petitions for Indian professionals in 2023 were for salaries below $100,000, while the median salary for U.S. IT professionals was $104,420.
• Impact on American Jobs:
  • Critics argue that companies prefer to hire foreign workers at lower wages to save costs, despite the availability of qualified U.S. talent, thus taking away opportunities for American workers.

Support for the H-1B Program

• Filling the STEM Gap:
  • Proponents, including Musk and Ramaswamy, argue that the H-1B visa is essential for filling the STEM skills gap in the U.S., given the global dominance of India and China in STEM fields.
    • India and China lead the world in STEM graduates, with 2.55 million and 3.57 million, respectively, compared to the U.S. with 820,000.
• Economic Benefits:
  • The H-1B program helps U.S. companies access top global talent, boosting innovation and economic growth, especially in high-tech industries.
  • Tech companies argue that without access to skilled foreign workers, they would struggle to fill critical positions in the technology sector.

In News:

The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) completes two years of remarkable success, driving mutual growth and showcasing the complementarity of both economies.

Key Achievements:

• Bilateral Merchandise Trade Surge:
  • Trade increased from USD 12.2 billion (2020-21) to USD 26 billion (2022-23).
  • Trade moderated slightly in 2023-24 to USD 24 billion, but exports from India to Australia grew by 14%.
  • From April-November 2024, bilateral trade reached USD 16.3 billion.
• Preferential Import Utilization:
  • Export utilization: 79%
  • Import utilization: 84%
• Sectoral Growth:
  • Textiles, chemicals, and agriculture sectors have seen significant growth.
  • New export products: Gold studded with diamonds, turbojets.
  • India’s imports: Metalliferous ores, cotton, wood products that fuel Indian industries.
• Geopolitical Strengthening:
  • Enhanced relations in forums like Quad, Indo-Pacific Economic Framework (IPEF), Supply Chain Resilience Initiative (SCRI).

Key Features of the Agreement:

• Tariff Reductions:
  • Australian goods: 85% tariff-free access to India (rising to 90% by 2026).
  • Indian goods: 96% tariff-free access to Australia (rising to 100% by 2026).
• Access to Key Markets:
  • India: Access to Australia's fast-growing market.
  • Australia: Access to India's labor-intensive sectors like gems, jewelry, textiles, leather, furniture, food, agriculture.
• Services and IT:
  • 135 sub-sectors covered in services.
  • India gains market access in 103 sub-sectors with Most Favoured Nation (MFN) status in 31.
  • Fast-tracked approval of medicines and elimination of double taxation for India's IT sector.
• Job Creation & Skill Exchange:
  • Expected creation of 1 million jobs in India.
  • Opportunities for Indian yoga teachers, chefs, and 100,000 students with post-study work visas.

Future Prospects:

• Comprehensive Economic Cooperation Agreement (CECA): Builds on ECTA to advance bilateral trade, with 10 formal rounds and ongoing inter-sessional discussions.
• Trade Target: Aim to reach AUD 100 billion in trade by 2030.
• Global Economic Impact: Strengthening the partnership will contribute to a more resilient and dynamic global economy, with deeper economic integration between India and Australia.

In News:

• On January 19, 2024, the UN Security Council approved a new African Union (AU) force in Somalia to counter the Al-Shabaab terrorist group.
• The resolution was supported by 14 of 15 members, with the US abstaining due to concerns about funding.
• The new force will replace the African Union Transition Mission in Somalia (ATMIS) after its mandate ends on December 31, 2024.

New Mission - AUSSOM:

• The new mission is named African Union Support and Stabilization Mission in Somalia (AUSSOM).
• AUSSOM will continue supporting Somali forces in stabilizing the nation and combating terrorism.
• The mission's objective is to enhance security and stability in Somalia, addressing the challenges posed by Al-Shabaab and ISIL.

Mandate and Operations:

• AUSSOM allows for the deployment of up to 12,626 personnel, including 1,040 police officers, until June 2025.
• The force will focus on counterterrorism, maintaining security, and assisting the Somali government in stabilizing the country.

Financing:

• A hybrid funding approach will be used:
  • 75% of the mission’s costs will be covered by the UN, and 25% will come from African Union and partner countries.
• The US raised concerns about the UN's disproportionate funding of the mission, which led to its abstention from voting.

Contributing Countries:

• Egypt has announced its participation in the new force.
• Burundi and Ethiopia will not be contributing troops to AUSSOM.
• Ethiopia has its own ongoing disputes with Somalia, particularly regarding its maritime deal with the breakaway Somaliland region.

Background on Somalia's Challenges:

• Somalia has faced decades of civil war, an insurgency by Al-Shabaab, and recurring climate disasters.
• The country is one of the poorest in the world, and its internal conflicts are exacerbated by clannism, which has fragmented its political and social structure.

Historical Context of Peace Missions in Somalia:

• Previous UN peacekeeping missions in Somalia (1992-1995) faced significant failures, notably the Battle of Mogadishu and the failure to prevent the 1993 massacre.
• The rise of Al-Shabaab in the mid-2000s has further escalated the conflict, and the mission of AUSSOM aims to address these continuing threats.

The Role of Clannism:

• Clannism has hindered the establishment of a unified government in Somalia, with clan rivalries leading to a lack of national cohesion.
  • Clannism refers to the prevalence of clan-centric politics, where allegiance to clan and sub-clan interests often takes precedence over national cohesion. In Somalia, the major clans are Darod, Hawiye, Dir, and Rahanweyn.

Importance of AUSSOM:

• AUSSOM represents a strategic shift in the international approach to stabilizing Somalia, relying more on African-led initiatives for peace and security in the region.

Global Peacekeeping Operations:

• The UN peacekeeping mission has been active globally, with over 1 million personnel deployed across 70+ operations.
• Success stories like Sierra Leone (1999-2005) and Liberia (2003-2018) demonstrate the potential impact of well-executed peace missions, but past failures like in Somalia (1992-1995) and Rwanda (1994) underline the challenges faced.

India’s Contribution:

• India has contributed significantly to UN peacekeeping missions, deploying over 253,000 personnel in 49 operations since 1948.
• India’s contributions to missions in Somalia, Rwanda, Sierra Leone, and Sudan reflect its active role in global peacekeeping efforts.

In News:

China approved the construction of the world's largest dam, stated to be the planet's biggest infra project, on the Brahmaputra river in Tibet close to the Indian border, raising concerns in India and Bangladesh.

Key highlights:

Overview of the Project:

• Location: Lower reaches of the Yarlung Zangbo River (Tibetan name for Brahmaputra), where the river makes a U-turn in the Himalayan region before flowing into Arunachal Pradesh, India.
• Purpose:
  • To support China’s carbon neutrality goals.
  • To boost industrial growth and create jobs in Tibet.
  • Expected to generate 300 billion kWh of electricity annually, over three times the capacity of the Three Gorges Dam in central China.

Significance:

• Scale: The dam is poised to be the world’s largest hydropower project, surpassing the Three Gorges Dam, and becoming the biggest infrastructure project globally, with an estimated cost of USD 137 billion.
• Engineering Challenges: The site is located in a seismic zone on the Tibetan plateau, prone to earthquakes, making construction and operational stability a major engineering challenge.

Concerns:

• Environmental Impact:
  • Potential disruption to the local ecosystem and biodiversity.
  • Risk of altering the river’s flow and course, which could impact agriculture and water resources downstream, particularly in India and Bangladesh.
• Geopolitical Risks:
  • Water control: India and Bangladesh are concerned about China’s ability to control the water flow, with fears of China manipulating the flow to release excess water during conflicts, causing potential flooding in border areas.
  • The project could also disrupt the hydrological cycle, affecting the region’s water availability, especially in Assam and Bangladesh.

Background:

• The Brahmaputra River is a trans-boundary river, flowing through China, India, and Bangladesh. Known by different names in these countries, it plays a vital role in the livelihoods of millions of people.
• China has already initiated hydropower generation on the upper reaches of the Yarlung Zangbo, with plans for additional projects upstream.

India-China Cooperation:

• China and India have an Expert Level Mechanism (ELM) in place since 2006 to manage trans-boundary river issues, under which China shares hydrological data with India, especially during the flood season.
• India is also constructing its own hydropower projects on the Brahmaputra in Arunachal Pradesh.

Potential Outcomes:

• Energy Generation: The dam could significantly contribute to China’s energy needs, providing a substantial amount of renewable energy.
• Regional Tensions: The dam’s construction may escalate tensions between China, India, and Bangladesh due to the control over water resources and environmental impact concerns.

In News:

In mid-2024, India surpassed China as the largest importer of Russian oil. This milestone has been accompanied by the operationalization of a new maritime route, the Eastern Maritime Corridor (EMC), which connects Chennai in India to Vladivostok in Russia. The new sea route is significantly reducing both shipping times and costs, facilitating smoother commodity trade between the two countries, particularly crude oil shipments.

The Eastern Maritime Corridor (EMC)

The EMC, covering a distance of about 5,600 nautical miles, has reduced the shipping time between India and Russia’s Far East by up to 16 days. The Chennai-Vladivostok route now takes just 24 days, compared to over 40 days using the traditional St. Petersburg-Mumbai route. This reduction in transit time makes it a highly efficient route for transporting goods such as crude oil, coal, LNG, fertilizers, and other commodities. Additionally, this new corridor supports India’s maritime sector and aligns with the country’s broader vision for maritime growth and regional strategic engagement.

Key Features of the EMC:

• Efficiency and Cost Savings: The route cuts shipping time and distance, reducing costs associated with longer transit periods. For example, a ship traveling between Vladivostok and Chennai now takes only about 12 days at cruising speed, compared to the traditional route's 40+ days.
• Strategic Importance: Vladivostok is Russia’s largest Pacific port, and the corridor strengthens India's strategic presence in the region. This maritime route bypasses traditional chokepoints like the Suez Canal, offering faster, more direct access to key markets.
• Diversification of Trade: Besides crude oil, the EMC facilitates the transportation of coal, LNG, fertilizers, and metals, diversifying India's trade portfolio with Russia. It also helps maintain supply chains for essential goods.
• Boosting India’s Maritime Sector: The corridor supports India’s Maritime Vision 2030, which aims to enhance the efficiency and reach of India's maritime trade, a sector responsible for over 70% of the country’s trade value.

Economic and Strategic Impact:

• The new Eastern Maritime Corridor is particularly significant for India’s energy needs. As the world’s third-largest consumer of crude oil, India imports over 85% of its crude oil demand. The growing imports of Russian crude, especially the Urals grade, are crucial for securing India’s energy future. Additionally, Russia’s competitive pricing on crude, coupled with the savings on shipping costs through the EMC, makes Russian oil even more attractive.
• Beyond the economic benefits, the EMC also supports India’s broader strategic goals, including strengthening ties with Russia, a key partner in defense, nuclear cooperation, and regional geopolitics. The closer maritime links also help counterbalance China's growing dominance in the Pacific region, aligning with India's Act Far East Policy and enhancing trade and diplomatic engagement with East Asia and Russia.

Other Key Maritime Corridors Relevant to India:

• International North-South Transport Corridor (INSTC): A 7,200 km multimodal route linking the Indian Ocean with Russia, offering alternative trade routes to Europe and Central Asia.
• India-Middle East-Europe Economic Corridor (IMEC): A recent project announced at the G20 Summit, which connects India, the Middle East, and Europe via rail, road, and maritime links, fostering greater regional integration.
• Northern Sea Route (NSR): A 5,600 km Arctic route offering shorter transit times between the Barents and Kara Seas and the Bering Strait, gaining importance due to growing imports of Russian energy resources.

In conclusion, the Eastern Maritime Corridor is reshaping India-Russia trade dynamics, boosting economic ties and strategic cooperation between the two nations. By facilitating faster and cheaper transportation, the EMC is not only beneficial for trade in crude oil but also for a range of other commodities, positioning India as a key player in the evolving global trade network.

In News:

Recently, the European Union (EU) cleared Bulgaria and Romania for full membership in the Schengen Zone, effective January 1, 2025. This marks the end of a 13-year wait for these Eastern European nations, which joined the EU in 2007.

Key Highlights:

• Schengen Integration: Until now, Bulgaria and Romania were partially integrated into the Schengen Zone, with air and sea travel without border checks since March 2024. However, land border controls were still in place due to Austria's objections, mainly due to concerns over migration and border security.
• Austria's Shift: Austria had blocked full entry for years but finally lifted its veto on December 9, 2024, after a border protection package was agreed upon. This package includes joint border guard deployment at the Bulgarian-Turkish border and temporary land border controls for six months.

Schengen Zone Details:

• What is the Schengen Zone?
  • Created by the Schengen Agreement (1985) and the Schengen Convention (1990), it is the world’s largest area without internal border controls, allowing free movement across most EU countries and some non-EU countries. It currently includes 29 countries (25 EU states and 4 non-EU countries: Iceland, Liechtenstein, Norway, and Switzerland).
• Key Features:
  • Free Movement: Over 425 million people can travel freely within the zone without border checks.
  • Uniform Visa Policy: Short-term stays of up to 90 days are allowed for tourists and business travelers from outside the Schengen Area.
  • Cross-Border Cooperation: The Schengen Information System (SIS) facilitates security and border management by sharing critical data between countries.
  • Temporary Border Controls: Countries can temporarily reintroduce border controls for security reasons, after notifying other member states and the European Commission.

Bulgaria and Romania

• Bulgaria:
  • Capital: Sofia
  • Location: Southeastern Europe, bordered by the Black Sea, Romania, Turkey, Greece, North Macedonia, and Serbia.
  • Political System: Parliamentary Republic
• Romania:
  • Capital: Bucharest
  • Location: Bounded by Ukraine, Moldova, Black Sea, Bulgaria, Serbia, and Hungary.
  • Political System: Semi-Presidential Republic

Implications of Full Schengen Membership:

• Security and Unity: Romania and Bulgaria's full integration into the Schengen Zone is seen as a boost to both EU security and unity. It solidifies the EU's commitment to free movement while enhancing border security across Europe.
• Impact on Migration: With Bulgaria and Romania’s full membership, the EU’s border management system will be more integrated, helping to address ongoing migration challenges.

In News:

The 13th edition of Exercise Agni Warrior (XAW-2024), a joint military drill between the Indian Army and the Singapore Armed Forces (SAF), concluded successfully at the Field Firing Ranges, Devlali, Maharashtra. The exercise focused on enhancing mutual understanding and interoperability between the two nations’ artillery units.

Key Facts:

• Participating Nations: India and Singapore
• Location: Field Firing Ranges, Devlali, Maharashtra
• Participants:
  • 182 personnel from the Singapore Artillery
  • 114 personnel from the Indian Army's Regiment of Artillery
• Objective: To maximize mutual understanding of drills and procedures for joint operations under the UN Charter, particularly in firepower planning and execution, utilizing advanced artillery technologies.
• Historical Context: The exercise began in 2004 under a bilateral agreement between India and Singapore and has evolved over the years, now marking 20 years of cooperation.

Purpose and Highlights:

The exercise aimed to reinforce the long-standing defense relationship between India and Singapore, focusing on:

• Joint Firepower Planning and Execution: Both forces demonstrated the use of New Generation Artillery Equipment, enhancing their firepower coordination.
• Enhancing Interoperability: The exercise emphasized seamless coordination between the two armies to operate as a multinational force under the UN Charter, addressing global security challenges.
• Knowledge Sharing: Personnel from both armies exchanged expertise on advanced artillery tactics, fostering a deeper understanding of each other's military capabilities.
• Technological Integration: Both sides integrated cutting-edge technologies, allowing the exchange of best practices in the use of artillery systems.

Key Objectives of XAW-2024:

• Enhanced Interoperability: To ensure smooth coordination in joint operations, fostering the ability to respond to regional security threats.
• Firepower and Coordination Techniques: Sharing expertise on artillery planning, coordination, and execution.
• Advanced Equipment Use: Testing and demonstrating modern artillery systems in joint operations, ensuring both forces are prepared for contemporary warfare.

Structure and Execution:

The exercise was structured to include pre-exercise training, field operations, and a post-exercise evaluation:

• Pre-Exercise: Both armies engaged in interactive sessions to familiarize themselves with each other's artillery tactics and advanced systems.
• Field Operations: Simulated combat scenarios tested joint firepower execution, emphasizing real-time problem-solving and decision-making under pressure.
• Post-Exercise Review: A thorough analysis identified areas for improving joint operations and coordination.

Strategic Significance:

• Strengthening Bilateral Ties: Agni Warrior reinforces the defense partnership, facilitating joint operations that support regional security.
• Regional Stability: The exercise underscores the commitment of both nations to peace and security in the Indo-Pacific region.
• Capacity Building: Both Indian and Singaporean forces gained exposure to sophisticated firepower planning and gained operational readiness for future deployments.

In News:

The 3-day stocktake meeting took place in New Delhi, marking a significant step in strengthening the India-Australia trade and strategic partnership.

Key Highlights:

• Key Discussion Areas:
  • Trade in goods and services.
  • Mobility, agri-tech cooperation, and market access.
  • Focus on ensuring the CECA delivers balanced benefits for both nations.
  • Food security concerns and market access modalities aligned with India’s goals.
• Background on Negotiations:
  • The discussions in New Delhi were a continuation of the 10th round of negotiations held in Sydney (August 2024).
  • Both sides aimed to outline a path forward for the early conclusion of the CECA.
• Importance of CECA:
  • CECA is a Free Trade Agreement (FTA) aimed at eliminating tariffs and liberalizing services sectors to enhance business opportunities and cooperation.
  • It addresses five key areas: Goods, Services, Digital trade, Government procurement & **Rules of Origin/Product Specific Rules
  • New areas under discussion include: Competition policy, MSMEs, Gender, Innovation, Agri-tech, Critical minerals & Sports
• Historical Context:
  • CECA negotiations began in May 2011, were suspended in 2016, and resumed in September 2021.
  • The India-Australia Economic Cooperation and Trade Agreement (ECTA) was signed in 2022, serving as a foundational agreement and a precursor to CECA.
• Trade Statistics (2023-24):
  • India's imports from Australia: $16.2 billion.
  • India's exports to Australia: $8 billion.
  • Trade has grown significantly, with India being Australia’s 5th-largest trading partner.
• Regional Cooperation Initiatives:
  • India and Australia are partners in several regional initiatives:
    • Indo-Pacific Economic Framework for Prosperity (IPEF)
    • Trilateral Supply Chain Resilience Initiative (SCRI) with Japan.
• India's CECA with Other Countries:
  • India has similar CECA agreements with several nations, including: Singapore, Malaysia, Thailand & New Zealand
• Future Prospects:
  • The stocktake discussions have paved the way for further cooperation in areas such as agricultural innovation, market access, and supply chain resilience.
  • Both nations are optimistic about the early conclusion of the CECA and the broader economic partnership.

This recent stocktake visit represents a significant step in the ongoing efforts to solidify trade ties and deepen economic cooperation between India and Australia under the framework of the Comprehensive Economic Cooperation Agreement.

In News:

India, France and UAE recently kicked off a major air combat exercise called “Desert Knight” over the Arabian Sea, strengthening trilateral defence cooperation and enhancing military interoperability amid the ongoing geopolitical churn.

Key Highlights:

• What It Is: A trilateral air combat exercise aimed at improving military interoperability and enhancing combat readiness among the participating nations.
• Nations Involved: India, France, and the UAE.
• Location: Conducted over the Arabian Sea, approximately 350-400 km southwest of Karachi.
• Aim of the Exercise:
  • To strengthen trilateral defence cooperation among the three nations.
  • To enhance combat skills and military interoperability of the air forces involved.
• Details of the Exercise:
  • Duration: The exercise lasts for three days.
  • The exercise involves large force engagement and intensive combat maneuvers in a realistic operational environment.
• Aircraft Involved:
  • India: Deployed Sukhoi-30MKIs, Jaguars, IL-78 mid-air refuellers, and AEW&C (Airborne Early Warning and Control) aircraft from bases like Jamnagar.
  • France: Deployed Rafale jets and other aircraft from Al Dhafra airbase.
  • UAE: Deployed F-16 jets and other aircraft from Al Dhafra airbase.

Strategic Significance:

• The exercise is part of India’s efforts to build military interoperability with nations in the Persian Gulf region and strengthen defence ties with France and the UAE.
• Enhances combat readiness and strengthens cooperation against both traditional and non-traditional threats.
• Reflects the geopolitical shift and growing military cooperation in the Indo-Pacific region, especially in the context of China’s expansionist activities.
• Trilateral Framework: India, France, and the UAE launched a trilateral framework in 2022, focusing on areas like defence, technology, energy, and environment.
• Previous Exercises: In addition to Desert Knight, the countries also conducted their first trilateral maritime exercise in June 2023 to enhance cooperation in maritime security.

Broader Defence Relations:

• India-France: Long-standing strategic partnership with regular joint exercises like Shakti (army), Varuna (navy), and Garuda (air force).
• India-UAE: The defence relationship has grown significantly in recent years, with regular professional exchanges, combat exercises, and staff talks. India participates in the Desert Flag exercise at Al Dhafra airbase annually.

In News:

Switzerland scraps MFN status to India, dividend income to face higher tax

Key Highlights:

• Reason for Suspension:
  • The suspension follows a 2023 Supreme Court ruling in India, which clarified that the MFN clause in tax treaties is not automatically triggered when a country joins the OECD if the tax treaty with that country was signed before its OECD membership.
  • The Court ruled that the Double Taxation Avoidance Agreement (DTAA) cannot be enforced unless it is notified under the Income-Tax Act, 1961.
• Details of the Suspension:
  • Starting January 1, 2025, Switzerland will suspend the Most Favoured Nation (MFN) clause in its DTAA with India.
  • The MFN clause was part of the India-Switzerland DTAA signed in 1994.

Impact of the Suspension:

• Higher Tax Liabilities for Indian Companies: Withholding tax on dividends from Switzerland will increase from 5% to 10% for Indian companies.
• Effects on Swiss Investments in India: Swiss companies will continue to face a 10% withholding tax on dividends from India, as per the India-Switzerland DTAA.
• Potential Re-evaluation of MFN Clauses by Other Countries: Other countries may reconsider how the MFN clause is applied in their tax treaties with India, following this development.
• No Change for Other Benefits: Other DTAA benefits and investments related to the European Free Trade Association (EFTA) will remain unaffected.

Most Favoured Nation (MFN) Clause Overview:

• Definition: The MFN principle ensures that favorable trading terms given by one WTO member country to another are extended to all other WTO members, promoting non-discrimination.
• Purpose: To ensure equal treatment among trading nations by preventing discrimination, and to promote fair trade and equitable market access.
• Key Features:
  • Equal treatment in tariffs, quotas, and trade barriers.
  • Members must extend the best terms to all other WTO members.
• Origin: The MFN principle was established after World War II as a cornerstone of the multilateral trading system under the WTO.
• Exceptions:
  • Bilateral or regional trade agreements.
  • Special access granted to developing countries.
  • Non-WTO members (e.g., Iran, North Korea) are not bound by MFN rules.
• Removal of MFN:
  • There is no formal procedure under the WTO to suspend MFN status.
  • Countries are not obligated to notify the WTO when suspending or removing MFN treatment.

Recent Development:

• From January 1, 2025, Indian companies will face higher withholding tax (10%) on income sourced from Switzerland, as a result of the MFN clause suspension.

In News:

India had ‘limited success’ in capturing ‘China Plus One’ opportunity.

Limited Success in ‘China Plus One’ Strategy:

• India has had limited success in attracting multinational companies looking to diversify their supply chains under the ‘China Plus One’ strategy, aimed at reducing dependence on China.
• Vietnam, Thailand, Cambodia, and Malaysia have been more successful in benefiting from this shift due to factors like lower labor costs, simplified tax laws, and proactive Free Trade Agreements (FTAs).

Geopolitical Context - US-China Trade Conflict:

• The fresh US-China trade conflict involves tit-for-tat restrictions, with the US imposing export controls on Chinese high-tech goods and China retaliating by banning key materials.
• India's Position: As a "connecting economy" not directly aligned with the US or China, India stands to benefit from trade diversions arising from this conflict.

Opportunities for India Amid Trade Diversion:

• NITI Aayog CEO BVR Subrahmanyam highlighted opportunities arising from trade diversion, particularly due to US trade policies under President-elect Donald Trump, which could potentially create an economic boom for India.
• India has opportunities to capture a larger share of the global trade, especially in sectors where it currently holds a small market share (less than 1% of world trade in many areas).

Trade Policy Challenges:

• Steel Import Duty Proposal: NITI Aayog Vice Chairperson cautioned against imposing high duties on steel imports, arguing that it could reduce India’s competitiveness and lead to negative consequences for domestic industries reliant on steel.
• The global steel market has been affected by oversupply from China, with India’s iron and steel exports experiencing a sharp decline in Q1 FY25 due to weak domestic demand.

Impact of US Tariffs:

• A general 10% tariff on all imports by the US would not have a major negative impact on India.
• However, a 60% tariff on China could open significant opportunities for India, especially in sectors where it competes directly with China. There might be short-term shocks but long-term benefits.

Ongoing Trade Fragmentation:

• The report noted that trade fragmentation is driven by strict export controls on Chinese goods, implemented by the US to curb China’s growth, particularly in high-tech sectors.

Sectoral Competitiveness:

• While China remains India's key competitor across most export sectors, countries like Brazil, Indonesia, and South Africa generally lag behind India.
• Malaysia and Thailand outperform India in select sectors such as electrical machinery.

Challenges in the EU Market - Carbon Border Adjustment Mechanism (CBAM):

• Iron and steel industry facehigh exposure under the CBAM for EU exports, with tariffs potentially rising by 20-35% due to carbon emissions-related regulations.
• Indian firms could experience higher compliance costs due to the requirement for detailed emissions reporting, impacting competitiveness in the European market.

In News:

India and Slovenia have announced a five-year scientific collaboration plan (2024-2029) to deepen ties in research and technology. The Programme of Cooperation (PoC) was finalized during a meeting between Dr. Jitendra Singh (Indian Minister for Science and Technology) and Dr. Igor Papi? (Slovenian Minister for Higher Education, Science, and Innovation) on December 5, 2024.

Key Highlights:

• Joint Research Focus: The collaboration will focus on hydrogen technologies, sustainable innovation, AI, renewable energy, and smart cities.
• Over 20 Successful Projects: More than 20 joint initiatives in sectors like health, AI, and energy have already been implemented.
• Future Areas of Collaboration: New research projects will be launched, further strengthening academic exchanges and scientific networks between the countries.
• Hydrogen Technologies: Both ministers emphasized hydrogen's role in global energy sustainability, marking it as a critical area for future research.
• Historical Partnership: This builds on a partnership dating back to a 1995 agreement, with initiatives like the Joint Working Group on Scientific and Technological Cooperation.

What is the Programme of Cooperation (PoC)?

• The Programme of Cooperation (PoC) is a formal agreement between two countries designed to enhance collaboration in specific sectors, such as science, technology, and innovation.
• In the case of India and Slovenia, the PoC for the period 2024–2029 aims to promote joint research efforts, academic exchanges, and partnerships in emerging fields like hydrogen technologies, sustainable innovation, and other transformative areas.
• The PoC serves as a structured framework for long-term cooperation, enabling both nations to develop networks among scientists and researchers while addressing global challenges through collaborative innovation.

In News:

• US President-elect Donald Trump threatens BRICS countries (Brazil, Russia, India, China, South Africa) with 100% import tariffs if they create a new currency or support an alternative to the US dollar as the global reserve currency.
• Trump emphasizes that attempts to undermine the US dollar’s dominance will face economic retaliation, asserting the US economy won’t tolerate such moves.

Background

• Weaponization of the Dollar: The US has increasingly used its financial influence to impose sanctions (e.g., Russia, Iran) and cut off countries from systems like SWIFT (Society for Worldwide Interbank Financial Telecommunication).
• Concerns: Countries are concerned about their vulnerability to US monetary policies, which can have global impacts (e.g., rising US interest rates causing economic instability in other countries).

Efforts to Reduce Dependence on the US Dollar

• BRICS Countries’ Initiatives:
  • Russian President Putin criticizes the weaponization of the dollar.
  • Brazil's President Lula advocates for a new BRICS currency to increase payment options and reduce vulnerabilities.
• India's Steps:
  • The Reserve Bank of India (RBI) allows invoicing and payments in Indian rupees for international trade (since 2022), particularly with Russia.
  • Prime Minister Modi supports increasing financial integration and cross-border trade in local currencies within BRICS.
  • External Affairs Minister Jaishankar emphasizes the importance of mutual trade settlements in national currencies.
• China-Russia Trade: Over 90% of trade between Russia and China is settled in rubles and yuan due to their more balanced trade relations.

Internationalization of the Indian Rupee

• RBI's Role:
  • In July 2022, RBI allowed export/import settlements in rupees, starting with Russia in December 2022.
  • More than 19 countries, including the UK and UAE, have agreed to settle trade in rupees.
• Challenges:
  • The Indian rupee currently accounts for only 1.6% of global forex turnover.
  • India’s trade imbalance with Russia limits the effective use of rupee reserves.
  • Indian banks are cautious due to the risk of US sanctions.

Global Trends in Currency Diversification

• Multipolarity in Finance: Emerging economies like China, India, and Brazil are advocating for a more decentralized financial system, moving away from US dominance.
• Declining Dollar Share: The US dollar’s share of global reserves is gradually decreasing, with non-traditional currencies like the Chinese yuan gaining ground.

Risks of Moving Away from the US Dollar

• Chinese Dominance: Concerns about increasing Chinese economic influence, especially within BRICS, as China pushes for more use of the yuan in trade.
• Liquidity and Volatility Issues: Alternatives to the dollar may face challenges like lower liquidity and increased exchange rate volatility.
• Implementation Challenges: Countries, especially those with trade imbalances, find it difficult to adopt local currencies for international trade.

Potential Impact of 100% US Tariff on BRICS Imports

• Global Trade Dynamics: A blanket tariff would likely encourage deeper intra-BRICS trade and accelerate the move towards de-dollarization.
• Impact on the US: Higher import costs for American consumers and potential trade diversification to third countries could hurt the US economy without revitalizing domestic manufacturing.
• Retaliation: BRICS countries might retaliate with tariffs on US goods, escalating trade tensions.

India’s Strategic Approach

• Diplomatic Engagement: India should clarify to the US that diversifying trade mechanisms is not anti-American but seeks financial stability and multipolarity.
• Leadership Role in BRICS: India should support financial reforms within BRICS that align with its interests while maintaining strong ties with the US.
• Promotion of Digital Currency: India should accelerate its Central Bank Digital Currency (CBDC) and strengthen international platforms like UPI to enhance its global financial presence.

In News:

The first edition of CINBAX (Counter-Terrorism Counter-Bio-Terrorism and Intelligence Operations Exercise) was launched on December 1, 2024, at the Foreign Training Node, Pune.

Key Details:

• Participants: 20 personnel from each side – the Indian Army and the Cambodian Army – focusing on enhancing cooperation for UN peacekeeping operations.
• Objective:
  • Enhancing Trust and Interoperability: CINBAX aims to foster mutual trust, build camaraderie, and improve operational efficiency between the two armies in conducting peacekeeping operations under UN guidelines.
  • Focus Areas: Joint Counter-Terrorism (CT) operations, Intelligence, Surveillance, and Reconnaissance (ISR), cyber warfare, logistics, casualty management, and disaster relief operations.

• Phases of the Exercise:
  • Phase I: Orientation for Counter-Terrorism operations in the context of UN peacekeeping missions.
  • Phase II: Conduct of tabletop exercises to simulate and plan response scenarios.
  • Phase III: Finalization of plans and review of lessons learned, focusing on operational strategies and tactical decision-making.
• Key Topics Covered:
  • Discussions on setting up a Joint Training Task Force for intelligence, surveillance, and reconnaissance.
  • Exploring cyber warfare, hybrid warfare, and unconventional tactics.
  • Strategies for managing logistics, casualties, and coordination during Humanitarian Assistance and Disaster Relief (HADR) operations.
• Promotion of Indigenous Defence Equipment:
  • The exercise will showcase Indian-made weapons and defence equipment, supporting India’s commitment to Atmanirbhar Bharat (self-reliance in defence production).
  • Objective: To highlight India's advanced military technology and indigenous defence capabilities.
• Significance for India-Cambodia Relations:
  • The exercise strengthens military ties between India and Cambodia, contributing to improved cooperation in regional peacekeeping efforts.
  • CINBAX marks a significant milestone in India-Cambodiadefence collaboration and sets the stage for future joint operations.

India-Cambodia Bilateral Relations

• Historical Context:
  • India and Cambodia share strong religious, cultural, and linguistic ties, with Hindu rituals influencing Cambodian culture and Sanskrit and Khmer sharing common words.
  • Diplomatic relations were established in 1952, even before Cambodia's independence from France.
• Key Developments:
  • 1954: Prime Minister Jawaharlal Nehru visited Cambodia, initiating strong diplomatic ties, particularly during the Non-Aligned Movement.
  • Post-1970s: India played a pivotal role in Cambodia's recovery from the Khmer Rouge regime. India was the first democratic country to recognize the Heng Samrin regime in 1981 and contributed to Cambodia's political reconciliation.
  • 1980s: India facilitated dialogue for the Paris Peace Accord and contributed to the success of UNTAC elections in 1993.
• Strategic and Economic Cooperation:
  • Defence: Enhanced cooperation in defence capacity building, military training, and infrastructure development.
  • Trade: India exports pharmaceuticals, bovine meat, automobiles, and leather products to Cambodia. In return, Cambodia exports organic chemicals, apparel, and footwear to India.
  • Mekong-Ganga Cooperation (MGC): Established in 2000, MGC includes Cambodia and aims to enhance cooperation in sectors like trade, education, tourism, and cultural exchanges.
• Recent Collaboration:
  • India has extended financial assistance for infrastructure projects in Cambodia, especially in restoring and conserving cultural heritage sites like Angkor Wat.
  • MoUs signed in bilateral cooperation, cultural exchanges, and development projects highlight the growing India-Cambodia strategic partnership.

In News:

India has been re-elected to the United Nations Peacebuilding Commission (PBC) for the term 2025–2026, continuing its strong commitment to global peace and stability.

UN Peacebuilding Commission (PBC)

It is an advisory body established by the UN General Assembly and UN Security Council in 2005. It is tasked with supporting peace efforts in conflict-affected countries by advising and recommending strategies for post-conflict recovery and long-term peacebuilding.

Composition of PBC:

• The PBC is composed of 31 member states, elected from the General Assembly, Security Council, and Economic and Social Council.
• It includes key financial and troop-contributing countries, which play a central role in shaping global peacebuilding initiatives.

Key Mandates of the PBC

• Coordination of Resources and Strategies:The Commission brings together all relevant actors to propose integrated strategies for post-conflict recovery and peacebuilding.
• Reconstruction and Development:It focuses on rebuilding conflict-affected countries through institution-building and supporting sustainable development efforts.
• Improving Coordination:The PBC ensures better coordination within and outside the UN, develops best practices, and secures predictable financing for early recovery initiatives.
• Sustaining Peace:The Commission promotes sustained international attention to peacebuilding efforts and offers political support to countries emerging from conflict, with their consent.
• Integrated Approach:The PBC advocates for an integrated approach that links security, development, and human rights as interrelated and mutually reinforcing.
• Bridging Role:It serves as a platform to connect UN bodies, Member States, national authorities, civil society, and other stakeholders, sharing good practices in peacebuilding.

India’s Contributions to UN Peacebuilding and Peacekeeping

India has been at the forefront of UN peacebuilding initiatives due to its long-standing commitment to international peace and stability.

• Largest Contributor of Personnel:India is one of the largest contributors of uniformed personnel to UN Peacekeeping. Currently, around 6,000 Indian military and police personnel are deployed across multiple missions in Abyei, Central African Republic, Cyprus, Democratic Republic of Congo, Lebanon, Middle East, Somalia, South Sudan, and Western Sahara.
• Sacrifices in Service:India holds the tragic distinction of having lost over 180 peacekeepers, the highest number from any troop-contributing nation. These sacrifices reflect India's enduring commitment to global peace.
• Financial Support:India contributes to the Peacebuilding Fund, the primary financial instrument for conflict prevention and peacebuilding, which supports countries transitioning from conflict to peace.
• Championing South-South Cooperation:India has actively promoted South-South cooperation, a model for post-conflict recovery that emphasizes shared learning and capacity-building among developing nations.
• Women in UN Peacekeeping:India has led efforts for gender parity in UN peacekeeping. In 2007, India became the first country to deploy an all-women contingent to a UN peacekeeping mission. It has since deployed Female Engagement Teams (FETs) and Female Formed Police Units (FFPUs) in Lebanon and the Democratic Republic of Congo.
• Training and Capacity Building:India has invested in capacity development for both the UN and host nations. The Centre for UN Peacekeeping (CUNPK) in New Delhi, established by the Indian Army, trains over 12,000 troops annually in peacekeeping operations. India also deploys Mobile Training Teams to share best practices with other countries.

India’s Pledges at the UN Peacekeeping Ministerial (2023)

At the UN Peacekeeping Ministerial held in Accra, Ghana (December 2023), India made significant pledges:

• To contribute an Infantry Battalion Group, along with various sub-groups and pre-deployment training courses, for the next two years.
• India’s ongoing commitment to strengthening peacekeeping efforts and supporting the UN’s peacebuilding agenda was reaffirmed.

In News:

The 6th ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee and related meetings for discussions on the review of the AITIGA were held recently in Vanijya Bhawan, New Delhi.

Key Highlights:

Key Negotiation Areas

• 8 Sub-Committees under the AITIGA Joint Committee discussed:
  • Market access, rules of origin, SPS measures, standards and technical regulations.
  • Customs procedures, economic and technical cooperation, trade remedies, and legal and institutional provisions.
• 5 Sub-Committees met physically during this round of negotiations.

Progress in Discussions

• Textual Discussions: Sub-Committees made progress in discussions on various provisions.
• Tariff Negotiations: Initial steps towards initiating tariff negotiations were covered.

High-Level Meetings Leading to AITIGA Review

• 21st ASEAN-India Economic Ministers Meeting: Held in September 2024 in Vientiane, Laos.
• 21st ASEAN-India Summit: Held in October 2024 in Vientiane, Laos.

Both meetings urged the Joint Committee to expedite negotiations and aim for the conclusion of the review in 2025.

Bilateral Meetings

• ASEAN delegates held separate bilateral meetings with Thailand and Indonesia to discuss bilateral trade issues.
• Indian and ASEAN Chief Negotiators met to align on the ongoing issues and future steps.

India's Review Demands

• Request for Review: India sought a review of AITIGA (implemented in 2010), citing disproportionate trade benefits favoring ASEAN countries.
• India’s Objectives:
  • Enhanced Market Access: India pushed for ASEAN countries, especially Vietnam, to commit to greater market-opening for Indian goods.
  • Stricter Rules of Origin (ROO): India requested more stringent ROO provisions to prevent Chinese goods from entering India via ASEAN countries at preferential rates.

Trade Relationship and Economic Impact

• Bilateral Trade:
  • Total trade with ASEAN reached USD 121 billion in FY 2023-24.
  • Trade during April-October 2024 was USD 73 billion, marking a 5.2% growth.
• Trade Deficit: India’s trade deficit with ASEAN widened from USD 4.98 billion in FY 2010-11 to USD 38.4 billion in 2023-24.
• ASEAN accounts for 11% of India’s global trade.

Future Outlook

• The next meeting of the AITIGA Joint Committee is scheduled for February 2025 in Jakarta, Indonesia.
• The review process aims to further enhance sustainable trade between India and ASEAN countries.

In News:

The 11th ADMM-Plus held in Vientiane, Laos saw Union Defence Minister Rajnath Singh engage in discussions with his counterparts from the United States, Japan, and the Philippines.

Focus: The talks centered on strengthening defence partnerships, regional security, and enhancing cooperation among Indo-Pacific nations.

ASEAN Defence Ministers’ Meeting-Plus (ADMM-Plus):

• Platform for Dialogue: The ADMM-Plus is a key platform for ASEAN and its eight Dialogue Partners—Australia, China, India, Japan, New Zealand, Republic of Korea, Russia, and the United States.
• Establishment: The inaugural ADMM-Plus was held in HàN?i, Vietnam on 12 October 2010.
• Annual Meetings: Since 2017, the ADMM-Plus has met annually to enhance dialogue and cooperation amidst an increasingly complex regional security environment.

Objectives:

• Capacity Building: To aid ASEAN members in addressing shared security challenges.
• Promote Trust and Transparency: Enhance mutual trust and confidence between ASEAN and partner nations.
• Regional Peace and Stability: Focus on cooperation in defence and security to counter transnational security challenges.
• ASEAN Security Community: Contribute to realizing the ASEAN Security Community, as per the Bali Concord II, aiming for peace, stability, democracy, and prosperity in the region.
• Vientiane Action Programme: Facilitate ASEAN's efforts towards a peaceful, secure, and prosperous ASEAN with outward-looking relations with Dialogue Partners.

In News:

• Daniel Barenboim (Classical Pianist and Conductor) and Ali Abu Awwad (Palestinian Peace Activist) were jointly awarded the Indira Gandhi Prize for Peace, Disarmament, and Development for 2023.
  • Daniel Barenboim was recognized for fostering peace through musical and cultural dialogue initiatives.
  • Ali Abu Awwad was honored for his advocacy of peace through dialogue via his organization Roots, which he founded after serving time in Israeli prison.

Significance of the Indira Gandhi Peace Prize:

• The award is given to individuals or organizations who have made outstanding contributions to international peace, disarmament, and development.
• It includes a monetary award of ?25 lakh and a citation.

About the Indira Gandhi Peace Prize:

• Established: 1986 by the Indira Gandhi Memorial Trust in memory of former Prime Minister Indira Gandhi.
• Objective: To honor sustained efforts towards international peace, the development of humanity, and the promotion of disarmament.
• Past recipients: Includes prominent figures and organizations such as Mikhail Gorbachev, UNICEF, Jimmy Carter, Angela Merkel, ISRO, and Sir David Attenborough.

2022 Awardees:

• The Indira Gandhi Peace Prize for 2022 was awarded to the Indian Medical Association and the Trained Nurses Association of India, in recognition of their contribution as COVID-19 warriors.

Key Takeaways:

• The Indira Gandhi Peace Prize is regarded as one of the most prestigious awards for promoting peace, disarmament, and development worldwide.
• Daniel Barenboim's musical initiatives and Ali Abu Awwad's work through dialogue exemplify efforts to bridge divides and promote peaceful resolutions to conflict.

In News:

• Russia reported that Ukraine fired six US-made Army Tactical Missile System (ATACMS) missiles at Bryansk, Russia, marking a significant escalation in the ongoing conflict.
• This came after US President Joe Biden authorized Ukraine to use long-range missiles to strike deeper inside Russian territory, easing previous restrictions on such weapons

About the Army Tactical Missile System (ATACMS)

• Overview:
  • ATACMS is a surface-to-surface artillery weapon system designed to strike targets at much greater ranges than conventional artillery, rockets, or missiles.
  • Manufacturer: Produced by Lockheed Martin, a leading US defense contractor.
  • First Use: It was first used during the 1991 Persian Gulf War.
• Key Features:
  • Guidance: ATACMS missiles are inertially guided ballistic missiles, capable of operating in all weather conditions.
  • Range: Approximately 190 miles (305 km).
  • Propulsion: It uses a single-stage, solid propellant for propulsion.
  • Launch Platforms: Fired from platforms like the High Mobility Artillery Rocket System (HIMARS) and the M270 Multiple Launch Rocket System (MLRS).
  • Payload: ATACMS missiles can carry cluster munitions, releasing hundreds of smaller bomblets over a targeted area, increasing their destructive power.
• Global Operators:Besides the US, ATACMS is also operated by countries such as Bahrain, Greece, South Korea, Taiwan, and the United Arab Emirates.

In News:

PM Modi receives Nigeria’s second-highest national award.

Key Events and Achievements

• Award Conferred:
  • Award Name: Grand Commander of the Order of the Niger (GCON).
  • Significance: Nigeria’s second-highest national award, conferred on Prime Minister Narendra Modi.
  • Historical Context: Modi becomes the second foreign dignitary to receive this award, after Queen Elizabeth in 1969.

Strategic and Developmental Ties Between India and Nigeria

• First Visit in 17 Years: Modi’s visit is the first by an Indian PM to Nigeria in 17 years, underscoring the significance of strengthening bilateral ties.
• Economic Cooperation:
  • Over 200 Indian companies have invested around $27 billion in Nigeria across key sectors, making India a major economic partner.
  • India has provided $100 million in development assistance through concessional loans and is actively involved in capacity-building training programs in Nigeria.
• MoUs Signed:
  • Three Memoranda of Understanding (MoUs) were signed in the fields of:
    • Cultural Exchange.
    • Customs Cooperation.
    • Survey Cooperation.
• Relief Aid: Modi announced the dispatch of 20 tonnes of relief supplies to help Nigeria recover from the devastating floods that affected the country last month.