DAILY CURRENT AFFAIRS (JULY 27, 2022)

THE PARLIAMENTARY PROCEEDINGS: MONSOON SESSION 2022

1.EXPLAINED: THE ENERGY CONSERVATION (AMENDMENT) BILL 2022 AND INDIA’S CLIMATE TARGETS

THE CONTEXT: In a bid to meet India’s commitment to exceed its Paris agreement climate targets, the Centre plans to table the Energy Conservation (Amendment) Bill 2022 in the ongoing Monsoon session of Parliament.
THE EXPLANATION:
The Energy Conservation (Amendment) Bill seeks to increase India’s demand for renewable energy, thereby reducing the nation’s carbon emissions. The Bill proposes to amend the Electricity Conservation Act 2001, last amended in 2010, to introduce changes such as incentivising the use of clean energy by issuing carbon saving certificates.
What does the current Energy Conservation Act say?
• Currently, the Energy Conservation Act, 2001 (amended in 2010) governs the domain in India. The Act empowers the Centre to specify norms and standards of energy efficiency for appliances, industrial equipment and buildings with a connected load over 100 kilo Watts (kW) or a contractual demand of more than 15 kilovolt-amperes (kVA).
• The Act established the Bureau of Energy Efficiency. The 2010 amendment extended the tenure of the Director General of the Bureau of Energy Efficiency from three to five years. This Bureau can specify qualifications required for energy auditors who monitor and review the power consumption of various industries. The Bureau, which falls under the Central government, appoints its own officers and staff.
• The Act allows the Centre to prohibit the manufacture, sale, purchase or import of any particular equipment unless it conforms to specified norms issued six months/ one year before.

What are the proposed changes?
• The main objective of these proposed amendments is to reduce India’s power consumption via fossil fuels and thereby minimize the nation’s carbon footprint. The Centre aims to develop India’s Carbon market and boost the adoption of clean technology. India aims to meet its Nationally Determined Contributions (NDCs), as mentioned in the Paris Climate Agreement, before its 2030 target date.
• Defining the minimum share of renewable energy to be consumed by industrial units or any establishment. This consumption may be done directly from a renewable energy source or indirectly via the power grid.
• Incentivising efforts to use clean energy by issuing carbon saving certificates
• Strengthening institutions set up originally under the Act, such as the Bureau of Energy Efficiency
• Facilitating the promotion of green Hydrogen as an alternative to the fossil fuels used by industries
• Considering additional incentives like carbon credits for the use of clean energy to lure the private sector to climate action.
• Including larger residential buildings under energy conservation standards to promote sustainable habitats. Currently, only large industries and their buildings come under the ambit of the Act.

What are India’s climate change commitments?
Recently, India revised the NDCs at the COP26 Summit held in Glasgow on November 1, 2021. India’s five new climate targets are:
1. To increase its non-fossil energy capacity to 500 GW by 2030
2. To meet 50 per cent of India’s power demand via renewable energy sources
3. To reduce the carbon intensity of the Indian economy by 45 per cent
4. To reduce India’s total projected carbon emissions by one billion tonnes from 2021 to 2030
5. To achieve a target net zero (for carbon emissions) by 2070.

THE INTERNATIONAL RELATIONS

2.IMF CUTS GLOBAL GROWTH FORECASTS, WARNS HIGH INFLATION THREATENS RECESSION

THE CONTEXT: Recently, the International Monetary Fund cut global growth forecasts again, warning that downside risks from high inflation and the Ukraine war were materializing and could push the world economy to the brink of recession if left unchecked.
THE EXPLANATION:
• Global real GDP growth will slow to 3.2% in 2022 from a forecast of 3.6% issued in April, the IMF said in an update of its World Economic Outlook. It added that world GDP actually contracted in the second quarter due to downturns in China and Russia.
• The Fund cut its 2023 growth forecast to 2.9% from the April estimate of 3.6%, citing the impact of tighter monetary policy.
• World growth had rebounded in 2021 to 6.1% after the COVID-19 pandemic crushed global output in 2020 with a 3.1% contraction.

RUSSIAN GAS EMBARGO
• The Fund said its latest forecasts were “extraordinarily uncertain” and subject to downside risks from Russia’s war in Ukraine spiking energy and food prices higher. This would exacerbate inflation and embed longer-term inflationary expectations that would prompt further monetary policy tightening.
• Under a “plausible” alternative scenario that includes a complete cut-off of Russian gas supplies to Europe by year-end and a further 30% drop in Russian oil exports, the IMF said global growth would slow to 2.6% in 2022 and 2% in 2023, with growth virtually zero in Europe and the United States next year.
• Global growth has fallen below 2% only five times since 1970, the IMF said, including the 2020 COVID-19 recession.
• The IMF said it now expects the 2022 inflation rate in advanced economies to reach 6.6%, up from 5.7% in the April forecasts, adding that it would remain elevated for longer than previously anticipated. Inflation in emerging market and developing countries is now expected to reach 9.5% in 2022, up from 8.7% in April.

U.S., CHINA DOWNGRADES
• For the United States, the IMF confirmed its July 12 forecasts of 2.3% growth in 2022 and an anemic 1.0% for 2023, which it previously cut twice since April on slowing demand.
• The Fund deeply cut China’s 2022 GDP growth forecast to 3.3% from 4.4% in April, citing COVID-19 outbreaks and widespread lockdowns in major cities that have curtailed production and worsened global supply chain disruptions.
• The IMF also said the worsening crisis in China’s property sector was dragging down sales and investment in real estate. It said additional fiscal support from Beijing could improve the growth outlook, but a sustained slowdown in China driven by larger-scale virus outbreaks and lockdowns would have strong spillovers.
• Russia’s economy is expected to contract by 6.0% in 2022 due to tightening Western financial and energy sanctions, and decline a further 3.5% in 2023, the IMF said. It estimated that Ukraine’s economy will shrink by some 45% due to the war, but the estimate comes with extreme uncertainty.

VALUE ADDITION:
INTERNATIONAL MONETARY FUND:
• The International Monetary Fund (IMF) is an international financial institution, Headquartered in Washington, D.C.
• Formed in July 1944, and its consisting of 190 countries.
• Countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world while periodically depending on the World Bank for its resources.
• It came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international monetary system.
• It now plays a central role in the management of balance of payments difficulties and international financial crises.
IMF Members: Any other state, whether or not a member of the UN, may become a member of the IMF in accordance with IMF Articles of Agreement and terms prescribed by the Board of Governors.
• Membership in the IMF is a prerequisite to membership in the IBRD.
Pay a quota subscription: On joining the IMF, each member country contributes a certain sum of money, called a quota subscription, which is based on the country’s wealth and economic performance (Quota Formula).

Functions:
1. Regulatory functions: IMF functions as a regulatory body and as per the rules of the Articles of Agreement, it also focuses on administering a code of conduct for exchange rate policies and restrictions on payments for current account transactions.
2. Financial functions: IMF provides financial support and resources to the member countries to meet short term and medium term Balance of Payments (BOP) disequilibrium.
3. Consultative fun­ctions: IMF is a centre for international cooperation for the member countries. It also acts as a source of counsel and technical assistance.

THE ENVIRONMENT, ECOLOGY AND CLIMATE CHANGE

3.DESPITE INCENTIVES, WHY IS DSR TECHNIQUE NOT GAINING GROUND IN PUNJAB?

THE CONTEXT: The Punjab government has announced a Rs 1,500 per acre incentive to farmers for adopting the DSR method. But they are returning to the traditional method of puddled transplanting of rice in majority of the paddy area.
THE EXPLANATION:
Punjab is not only a long way away from its target of Direct Sowing of Rice (DSR) for this year (as it could only achieve 6.7% of the total target) but also the state has seen 85.7% decline in DSR area from the last season.
This has happened (ahead of paddy sowing) despite the state government announcing a Rs 1,500 per acre incentive to the farmers for adopting the DSR method and earmarking Rs 450 crore for the purpose.
What was the target for DSR and how much area could be brought under it in the state?
• In Punjab, rice (paddy and basmati) is grown in over 30 lakh hectares of farmland every year. The state government has set a target of bringing 12 lakh hectares (29.64 lakh acres) under DSR, which does not require puddled fields for transplanting paddy nursery and flood irrigation.
• With this much area, Punjab’s DSR area is 93.3% down from the target and if one compares it with last year’s (2021) area then also it is 85.7% down. Last year, 5.62 lakh hectares (13.88 lakh acres) was under DSR in the state and that was also the highest ever area under DSR in the history of the state.
• The main purpose of promoting DSR by announcing incentives was to save groundwater. Experts say that around 15% to 20% of groundwater can be saved by adopting DSR.

Direct Seeding of Rice (DSR)
• Direct seeding is a method under which pre-germinated seeds are directly drilled into the field by a tractor-powered machine.
• There is no nursery preparation or transplantation involved in this method.
• In this water is replaced by real chemical herbicides and farmers have to only level their land and give one pre-sowing irrigation.
• The Punjab Agricultural University (PAU) in Ludhiana has developed a ‘Lucky Seed Drill’ that can both sow seeds and simultaneously spray herbicides to control weeds.

Advantages
• Water savings because the first irrigation (apart from the pre-sowing rain) under DSR is necessary only 21 days after sowing.
• Less requirement of labour.
• Reduction in methane emissions and global warming potential
• Little disturbance to soil structure
• Enhanced system productivity

Disadvantage
• The main issue is the availability of herbicides.
• The seed requirement for DSR is also higher than transplanting.
• Land levelling is compulsory in DSR, therefore, increases the cost.
• In the DSR technique plants have to come out properly before the monsoon rains arrive, early sowing is required.
• The DSR method is not suitable on certain types of soil and in such fields only transplanting methods work.

Difference Between DSR & Normal Transplantation
In transplanting, farmers prepare nurseries where the paddy seeds are first sown and raised into young plants. These seedlings are then uprooted and replanted 25-35 days later in the main field.

4.STUDY SHEDS LIGHT ON PREY-PREDATOR RELATIONSHIP IN HIMACHAL PRADESH

THE CONTEXT: A recent study by the Zoological Survey of India (ZSI) on snow leopard ( Panthera uncia) has thrown up interesting insights on the elusive mountain cat and its prey species.
THE EXPLANATION:
The study under National Mission on Himalayan Studies revealed a strong link between habitat use by Snow Leopard and its prey species Siberian ibex and blue sheep.
Key highlights of the study:
Aim: Examining how the predator used habitat in presence or absence of its prey species and vice-versa.
• The snow leopard detection probability was high if the site was used by its prey species, i.e., ibex and blue sheep.
• Whereas, in the case of the prey species, the probability of detection was low when the predator (snow leopard) was present and detected.
• Snow leopards use rugged mountainous areas or non-forested areas covering an altitude between 3200m-5200m.
• The study suggested that habitat covariates, such as barren area, grassland, aspect, slope and distance to water were important drivers of habitat use for the snow leopard as well as its prey species.
• Spiti Valley possessed a good habitat in and outside the protected areas which could support a viable population of both threatened snow leopard and its prey species.
• Higher up in the mountains, predators such as snow leopards regulated the populations of herbivores such as the blue sheep and Siberian ibex, thereby safeguarding the health of grasslands.
• A long-term absence of snow leopards could cause trophic cascades as ungulate populations would likely increase, leading to depletion of vegetation cover.

Snow leopard (Panthera uncia):
• It is also known as the ounce.
• Habitat: Extends across the mountainous regions of 12 countries across Asia: Afghanistan, Bhutan, China, India, Kazakhstan, Kyrgyz Republic, Mongolia, Nepal, Pakistan, Russia, Tajikistan, and Uzbekistan.
• 60% of the habitat found in China.
• In India they are found in Jammu and Kashmir, Ladakh, Uttarakhand, Himachal Pradesh, Sikkim, and Arunachal Pradesh.
• Population: total estimated 4,000-6,500
• Its fur is whitish to grey with black spots on head. Eyes are Pale green or grey in colour.

Conservation Status
• IUCN Status: Vulnerable
• CITES: Appendix I.
• Convention on Migratory Species (CMS): Appendix I.
• Wild Life (Protection) Act, 1972: Schedule Distribution

THE SCIENCE AND TECHNOLOGY

5.NASA RELEASES FIRST PIECES OF THE MULTISPECTRAL MAPS OF MARS

THE CONTEXT: According to National Aeronautics and Space Administration (NASA) Scientists released the first pieces of the multispectral maps made by the Compact Reconnaissance Imaging Spectrometer for Mars (CRISM).
THE EXPLANATION:
• NASA’s Mars Reconnaissance Orbiter (MRO) has been mapping minerals on the red planet for the last 16 years with the help of CRISM.
• The scientists highlighted that anyone can access these maps from NASA’s ‘Planetary Data System website’. It has managed to map 86 per cent of Mars’ surface with its multispectral mode, detecting nearly all of the minerals on the surface.
CRISM is a visible-infrared spectrometer whose primary goal is to look for mineralogical evidence for past water on the surface and subsurface of Mars.
• The coverage goal for the multispectral mode was 80 per cent, owing to the limited lifetime of the coolers needed by its infrared detector. But it has managed to exceed that goal.
• The hyper spectral mode, which uses the wavelengths from the visible and near-infrared (VNIR) detector, doesn’t require cryogenic cooling and has attained more than 99 per cent coverage.
• According to the Scientists, the data gathered by CRISM over the last 16 years is invaluable for numerous research avenues and missions to Martian surface.
• For example, NASA’s Mars 2020 mission, which saw the Perseverance rover land on the surface of Mars, heavily relied on data gathered by CRISM.

VALUE ADDITION:
CRISM:
CRISM (Compact Reconnaissance Imaging Spectrometer for Mars): This instrument splits visible and near-infrared light in its images into hundreds of “colours” that identify minerals, especially those likely formed in the presence of water, in surface areas on Mars not much bigger than a football field.
Mars Reconnaissance Orbiter (MRO)
• MRO was launched in 2005, on a search for evidence that water persisted on the surface of Mars for a long period of time.
• It contains a host of scientific instruments such as cameras, spectrometers, and radar, which are used to analyze the landforms, stratigraphy, minerals, and ice of Mars.

THE PRELIMS PERSPECTIVE

6.WHAT IS THE MEANING OF THE ‘JOHAR’ GREETING USED BY PRESIDENT?

THE CONTEXT: The 15th President of India, assumed office with a ‘Johar’ greeting to the country.
THE EXPLANATION:
Johar’, which essentially means ‘salutation and welcome’, is used within the tribal communities of Jharkhand, and in parts of Chhattisgarh and Odisha. According to several tribal leaders from Jharkhand, the word ‘Johar’ also means ‘paying respect’. Tribal communities are nature worshippers and follow Sarna religion code, although it is not an official religion.

Do all tribal communities use the word ‘Johar’ for greeting?
There are 32 tribal communities in Jharkhand who speak different dialects. Almost all, including tribal Christians, use the word ‘Johar’ along with some other words for salutation. Johar, is predominantly used by Santhali,Munda and Ho communities that share some similarities. People belonging to the Oraon community use the word ‘Jai Dharam’, apart from Johar, as a salutation.

Is there only one form of ‘Johar’ salutation?
There are at least four types. One of them is ‘Doboh Johar’, which is used between people where one among them has a higher standing. Ratan Tikrey, a former member of Tribes Advisory Council (TAC) said that in ‘Doboh Johar’ there is a ritual where the person with a tumbler full of water bows in front of the person of higher standing.

VALUE ADDITION:
ABOUT SANTHAL TRIBE
• Santhal is the third largest Scheduled Tribe community in the country after Gond and Bhil. The Santal, or Santhal, are an ethnic group native to India and Bangladesh in South Asia.
• Santals are the largest tribe in the Jharkhand state of India in terms of population and are also found in the states of Assam, Bihar, Odisha and West Bengal.
• In the past, the Santals were leading a nomadic life, gradually they came to settle down in the Chhota nagpur plateau. Towards the end of 18th Century they migrated to the Santal Parganas of Bihar and then they came to Odisha. They speak Santali language which belongs to the Munda group of languages. The Santali has its own script called “Olchiki” invented by Pundit Raghunath Murmu.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY

Q. Recently, five new Ramsar sites were added into the list from India. Consider the following pairs with reference to it.
1. The Karikili Bird Sanctuary – Tamil Nadu
2. The Sakhya Sagar – Madhya Pradesh
3. The Pala Wetlands – Mizoram
4. Pichavaram Mangrove – Andhra Pradesh

How many pairs mentions above is/are correctly matched?
a) One pair only
b) Two pairs only
c) Three pairs only
d) All of them

ANSWER FOR THE PRACTICE QUESTION

Answer: C
Explanation:
Five new Ramsar sites were added into the list from India are as follows:
• The Karikili Bird Sanctuary, Pallikaranai Marsh Reserve Forest and Pichavaram Mangrove – Tamil Nadu
• The Sakhya Sagar – in Madhya Pradesh
• The Pala Wetlands – Mizoram




Ethics Through Current Development (27-07-2022)

  1. How to curb AI-driven human rights risks READ MORE
  2. FLUX AND CONSTANCY OF HUMAN NATURE READ MORE
  3. Trial by media: Justice Ramana’s concerns are valid READ MORE



Today’s Important Articles for Geography (27-07-2022)

  1. Glaciers Vanishing at Record Rate in Alps Following Heatwaves READ MORE
  2. Extreme heat exposure worsens child malnutrition in Africa: Study READ MORE
  3. Climate Change: When Does Planting Trees Make Sense? READ MORE



Today’s Important Articles for Sociology (27-07-2022)

  1. India’s Population Prospects: Demographic constraints will continue to weigh down on growth and development. READ MORE
  2. Hope for Hungry READ MORE



Today’s Important Articles for Pub Ad (27-07-2022)

  1. Seeking to destroy India’s civil society: Government is slowly chipping away at the rights of civil society groups using laws such as FCRA, PMLA READ MORE
  2. India needs not just more police, but better policing READ MORE
  3. Make bail the norm, not jail READ MORE
  4. Court appointments: Vacancies must be filled to clear backlog of cases READ MORE
  5. Understanding the Gaps in the Anti-Defection Law READ MORE



WSDP Bulletin (27-07-2022)

(Newspapers, PIB and other important sources)

Prelim and Main

  1. Explained| Power tariff revisions and the state of DISCOMs READ MORE
  2. Generation of unique disability IDs ramped up READ MORE
  3. India adds five more Ramsar sites, ups tally to 54 READ MORE
  4. Bangladesh seeks $4.5bn IMF loan as forex reserves shrink: Report READ MORE
  5. Russia says it will quit the International Space Station after 2024 READ MORE
  6. NASA releases first pieces of the multispectral maps of Mars READ MORE
  7. Non Performing Assets of Scheduled Commercial Banks in country declined in last four years: Govt READ MORE
  8. UN lays down guidelines to protect children displaced by climate change READ MORE

Main Exam

GS Paper- 1

  1. India’s Population Prospects: Demographic constraints will continue to weigh down on growth and development. READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

  1. Seeking to destroy India’s civil society: Government is slowly chipping away at the rights of civil society groups using laws such as FCRA, PMLA READ MORE
  2. India needs not just more police, but better policing READ MORE
  3. Make bail the norm, not jail READ MORE
  4. Court appointments: Vacancies must be filled to clear backlog of cases READ MORE
  5. Understanding the Gaps in the Anti-Defection Law READ MORE

SOCIAL ISSUES

  1. Hope for Hungry READ MORE

INTERNATIONAL ISSUES

  1. The U.S.’s search for a new role in West Asia: Realpolitik may have trumped the Biden administration’s rather vocal positions on principles in the region READ MORE
  2. India’s role READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

  1. Whose GDP is it anyway? READ MORE
  2. Why rapid economic growth may follow high inflation READ MORE
  3. Avoid aggressive management of rupee READ MORE
  4. Curb imports to check China trade gap READ MORE
  5. Kick-start economy with migrant workers READ MORE
  6. National agricultural market: New facility will boost trade on e-NAM READ MORE

ENVIRONMENT AND ECOLOGY

  1. Glaciers Vanishing at Record Rate in Alps Following Heatwaves READ MORE
  2. Extreme heat exposure worsens child malnutrition in Africa: Study READ MORE
  3. Climate Change: When Does Planting Trees Make Sense? READ MORE

SCIENCE AND TECHNOLOGY

  1. A path to global connectivity: Integrating terrestrial 5G networks with LEO satellite networks is the next step in communication infrastructure READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

  1. How to curb AI-driven human rights risks READ MORE
  2. FLUX AND CONSTANCY OF HUMAN NATURE READ MORE
  3. Trial by media: Justice Ramana’s concerns are valid READ MORE

Questions for the MAIN exam

  1. The government is slowly chipping away at the rights of civil society groups using laws such as FCRA and PMLA. Comment on the statement in the light of the recent ruling by the Government.
  2. ‘FCRA and PMLA are potent weapons for subduing the pluralistic nature of Indian society that is at the heart of India’s democracy’. Examine the statement.

QUOTATIONS AND CAPTIONS

  • Bad decisions made with good intentions are still bad decisions.
  • It is time for political leaders to clamour for an overhaul of India’s economic performance measurement framework.
  • GDP growth has turned into a misleading and dangerous indicator that portrays false economic promises, betrays people’s aspirations and hides deeper social problems.
  • The Russia-Ukraine war and its implications have shown that the U.S.’s somewhat tenuous relations with countries in the West Asia will continue despite underlying concerns about human rights and political freedom.
  • FCRA and PMLA are potent weapons for subduing the pluralistic nature of Indian society that is at the heart of India’s democracy.
  • Forex intervention by RBI has actually contained rupee depreciation. But the benefits of heavy intervention are not very clear.
  • The Supreme Court has drawn new red lines around bail jurisprudence and underlined the importance of preserving a person’s liberty in two separate instances over the past week.
  • The challenge is how to win back the confidence of migrant workers. The rural and farm economy has to be strengthened. Post-corona a new model is needed.
  • The launch of the “Platform of Platforms” (POP) would now ensure hassle-free out-of-mandi trading of farm goods across the country through the e-NAM portal, thereby making it a truly common national agricultural market.
  • As a regional power with an Act East Policy in place, India must not be found missing in action in Myanmar.
  • The Tenth Schedule needs to be amended to add more tensile strength against defectors, and the Supreme Court has to come up with a robust and unambiguous decision to clear all doubts.
  • Principles of natural justice are violated when a person becomes a judge of themselves.

50 WORD TALK

  • The suspension of 23 Opposition MPs from two Houses of Parliament in two days is alarming. Democracy means government by discussion, not suspensions. The government’s excuse for not holding discussions on price rise and a GST rate hike is untenable. The opposition has a vital role in parliamentary democracy. Their voices shouldn’t be throttled.
  • By executing democracy activists, Myanmar’s junta is tipping the country’s political opposition deeper into armed struggle. The junta’s already inflamed insurgencies engendered economic collapse. Fearful of giving China an opportunity, New Delhi muted its criticism. India must work with ASEAN countries to warn the junta against marching Myanmar towards disintegration.
  • The Constitution and law sought to protect minority communities and mandated equal rights and protection from the state to persons of all faiths and identities. According to that idea of India, these rights were deemed essential for the consolidation of the Indian state, where citizens needed to feel a sense of belonging. Even though civil society organisations have contributed to the constitutional frame, they undoubtedly need to be regulated to defend those values.

Things to Remember:

  • For prelims-related news, try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
  • Whenever any international place will be in news, you should do map work (marking those areas on maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
  • For economy-related news (banking, agriculture, etc.), you should focus on terms and how these are related to various economic aspects; for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
  • For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the main point of view will be covered in ED.
  • Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.



Day-253 | Daily MCQs | UPSC Prelims | GEOGRAPHY

[WpProQuiz 297]




TOPIC: WHY DOES THE GULF MATTER FOR INDIA?

THE CONTEXT: Recently, the ruling party suspended its national spokesperson and expelled its Delhi spokesperson, following comments they had made about Islam and the Prophet. The move came after three countries in the Gulf region had summoned the Indian ambassadors to their nations to register their protest and demanded a public apology from India.It underlines the significance of the Gulf region for India. This article explains in detail the relations between India and the Gulf countries.

WHAT IS THE PERSIAN GULF REGION?

  • The lands around the Persian Gulf are shared by eight countries- Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
  • These countries are major producers of crude oil and natural gas and thereby contribute critically to the global economy and to their own prosperity.
  • The area has approximately two-thirds of the world’s estimated proven oil reserves and one-third of the world’s estimated proven natural gas reserves.
  • This factor has added to their geopolitical significance.
  • A considerable amount of sea trade passes through the Gulf, leading to heavy traffic in the region.

WHY IS THE GULF REGION IMPORTANT FOR INDIA?

India has enjoyed centuries of good relations with countries like Iran, while smaller gas-rich nation Qatar is one of India’s closest allies in the region. India shares good relations with most of the countries in the Gulf. The two most important reasons for the relationship are oil and gas and trade. Two additional reasons are the huge number of Indians who work in the Gulf countries and the remittance they send back home.

FOUR PILLARS OF INDIA-GULF RELATIONS

TRADE RELATIONS

UAE: The UAE was India’s third-largest trading partner in 2021-2022 and second largest for both exports ($28 billion) and imports ($45 billion) when these are counted individually.

  • In terms of total trade volume, the UAE ($72.9 billion) was behind the United States ($1.19 trillion) and China ($1.15 trillion).
  • The UAE accounted for 6.6% of India’s total exports and 7.3% of imports in the last financial year, up 68.4% since the previous year when international trade was impacted by the pandemic.

Saudi Arabia: At a total volume of $42.9 billion in 2021-22, Saudi Arabia was India’s fourth-largest trading partner.

  • While exports were low at $8.76 billion (2.07% of India’s total exports), imports from Saudi Arabia were the fourth largest at $34.1 billion (7%), up 50% from the previous year. Most of it was crude oil.

Iraq: It was India’s fifth-largest trading partner in 2021-22 at $34.3 billion.

Qatar: The total trade was $15 billion, accounting for just 1.4% of India’s total trade, but the country is India’s most important supplier of natural gas.

  • Qatar accounts for 41% of India’s total natural gas imports. The UAE accounts for another 11%.

Oman: For Oman, India was the 3rd largest (after UAE and China) source for its imports and 3rd largest market (after UAE and Saudi Arabia) for its non-oil exports in 2019.

  • Major Indian financial institutions have a presence in Oman. Indian companies have invested in Oman in sectors like iron and steel, cement, fertilisers, textile etc.

OIL IMPORTS

  • The 239 million tonnes of oil petroleum imports were worth USD 77 billion and accounted for nearly one-fifth of the country’s total imports in 2021.
  • The share of Persian Gulf countries in India’s crude imports has remained at around 60% over the last 15 years.
  • In 2021-2022, the largest exporter of oil to India was Iraq, whose share has gone up from 9% in 2009-2010 to 22%.
  • Saudi Arabia has accounted for 17-18% of India’s oil imports for over a decade.
  • Kuwait and UAE remain major oil exporters to India. Iran used to be the second-largest oil exporter to India in 2009-2010; its share went down to less than 1% in 2020-21 due to US sanctions.

INDIAN DIASPORA

  • Counting only the 13.4 million non-resident Indians (NRIs), the Gulf has the largest numbers. The UAE (3.42 million), Saudi Arabia (2.6 million) and Kuwait (1.03 million) together account for over half of all NRIs.

REMITTANCES

  • According to Ministry of External Affairs data, more than 13.46 million Indian citizens work abroad.
  • Counting only the 13.4 million non-resident Indians (NRIs), the Gulf has the largest numbers. The UAE (3.42 million), Saudi Arabia (2.6 million) and Kuwait (1.03 million) together account for over half of all NRIs.
  • In terms of remittances from abroad, India was the largest recipient in 2020 at $83.15 billion, according to World Bank data. This was near twice the remittances to the next highest recipient, Mexico, at $42.9 billion.
  • The largest contributor is the huge Indian diaspora in the Gulf. In a bulletin in November 2018, it’s last on this subject, the Reserve Bank of India said the GCC countries accounted for more than 50% of the total $69 billion in remittances received by India in 2016-17.
  • The UAE accounted for 26.9%, Saudi Arabia for 11.6%, Qatar for 6.4%, Kuwait for 5.5% and Oman for 3%. Beyond the GCC, remittances from the US accounted for 22.9%, second only to the UAE.

GRAPHICAL REPRESENTATION OF INDIA-GULF TRADE RELATIONS

EFFORTS BY THE INDIAN GOVERNMENT

SPECIAL FOCUS

  • Since coming to power in 2014, the present Government has kept a special focus on maintaining or enhancing India’s relations with most of the countries in the region.

VISITS TO THE REGION

  • The Indian Prime Minister (PM) has visited the region several times since 2014.
  • He visited the UAE in 2015, 2018 and 2019, and Abu Dhabi’s crown prince came to India in 2017 and 2018.
  • Visits were made to Qatar and Iran in 2016 and Saudi Arabia in 2016 and 2019.
  • In 2018, he went to Jordan, Palestine and Oman, besides UAE, and became the first Indian Prime Minister to visit the Palestinian territory of Ramallah.
  • He visited Bahrain in 2019.
  • There have been similar reciprocal visits by leaders from these countries during these eight years.
  • Even during the pandemic, Indian and Gulf region leaders maintained regular contact.

HIGHEST CIVILIAN HONOUR

  • Palestine, Iran, Saudi Arabia, UAE and Jordan have excellent relations with India and Maldives, and Bahrain have bestowed their highest civilian honour on India’s Prime Minister.

GIVING IMPORTANCE TO THEIR RELIGION

  • On his visits, PM visited some of the most popular mosques in those countries, including the Sheikh Zayed Grand Mosque in Abu Dhabi in 2015 and the Sultan Qaboos Grand Mosque in Muscat in 2018.

 INDIA’S PRIORITIES IN THE GULF

  • Securing long-term energy supply is of primary importance for India in the region.
  • India is currently the fourth largest energy-consuming country in the world, and it may go up to the third position in the next couple of decades.
  • India’s annual GDP growth at the rate of eight per cent would require further industrial growth, which would demand more energy supply for the country.
  • The growing energy necessity has undoubtedly dictated India’s initiative of building up a ‘strategic energy partnership’ with the region to secure long-term energy supply for the country.
  • The Gulf countries look at India as a fast-growing economy which holds the potential to compete with the major world economies.
  • Realising the trade potential of the Gulf countries, India has entered into a negotiation with the GCC to finalise a Free Trade Agreement.
  • The Gulf countries have huge potential for investing in different sectors in India as FDI for mutual benefit.

THE WAY FORWARD:

  • There is a need to focus on the new and long-term possibilities for economic cooperation with the Gulf countries, which are looking at a future beyond oil.
  • The Gulf states have embarked on massive economic diversification and are investing in a variety of new projects, including renewable energy, higher education, technological innovation, smart cities, and space commerce.
  • With the rise of Khaleeji capitalism, the Gulf countries today deliver economic and security assistance to friendly states, build ports and infrastructure, acquire military bases and broker peace between warring parties and states.
  • The UAE currently chairs the Indian Ocean Rim Association (IORA) and has been eager to work with India in developing joint infrastructure projects.
  • India needs to bring scale and depth to its regional initiatives on connectivity and security in the Indian Ocean.
  • Avoiding any such conflicts, there must be a clear synergy between India and the GCC countries, consolidating their traditional areas of cooperation — energy, trade and investment.
  • They need to adopt an integrated and cohesive approach to develop ties in diverse areas — renewables, water conservation, food security, digital technology and skills development.

THE CONCLUSION: The Government and the diplomatic establishment can never underestimate the power of hurt sentiment, religious sensitivities in foreign policy, or the speed of social media. Many have questioned whether the reaction would have been as tough if the Government had taken the controversy and protests more seriously domestically and engaged with the problem much earlier. It was a lesson the US learned in 2012 after protests over a movie on Prophet Muhammad turned violent and led to the terrorist attack on the US embassy in Benghazi in which the US Ambassador was killed. The attacks on Charlie Hebdo and cartoonists in Europe in 2007 were another case in point- clearly, the sensitivities over a religious matter are important- as is protecting freedom of speech and ensuring no violence or harm comes to anyone.

Value Addition

What is GCC?

The Gulf Cooperation Council (GCC) is a political and economic alliance of six countries in the Arabian Peninsula: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Established in 1981, the GCC promotes economic, security, cultural and social cooperation between the six states and holds a summit every year to discuss cooperation and regional affairs.

All current member states are monarchies, including three constitutional monarchies (Qatar, Kuwait, and Bahrain), two absolute monarchies(Saudi Arabia and Oman), and one federal monarchy (the United Arab Emirates).

Structure:

The GCC comprises six main branches that carry out various tasks, from the preparation of meetings to the implementation of policies. They are- the Supreme Council, Ministerial Council, Secretariat-General, Consultative Commission, Commission for the Settlement of Disputes and the Secretary-General.

Role of GCC today:

Whether the GCC still has a relevant function and role in the region is questionable. Though it was created for the purpose of solidifying union ranks, the blockade imposed on Qatar by its neighbours has largely annulled these principles.

The Gulf states have in the past differed in their views on several issues that have unfolded in the region over the past two decades. The role of the GCC has also been diminishing ever since the 2003 US-led invasion of Iraq, with the six states illustrating various approaches to the war and its consequences. This has been enhanced during the wave of protests that swept the Middle East in 2011, known as the Arab Spring. Saudi Arabia has gained a dominant role within the GCC today.

Question for mains examination:

  1. Critically analyse India’s relations with the Gulf countries.
  2. In the 21st century, India needs to weigh the relationship with the Gulf countries not merely through an economic but strategic prism. Discuss.