TOP 5 TAKKAR NEWS OF THE DAY (3rd APRIL 2023)

1. THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP (CPTPP)

TAGS: GS- II-INTERNATIONAL RELATIONS AND PRELIMS

THE CONTEXT: Recently, the United Kingdom has agreed to join an 11-country trans-Pacific trade pact to deepen ties in the region and build its global trade links after leaving the European Union.

THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP (CPTPP)

About:

  • CPTPP is a free trade agreement (FTA) that was agreed in 2018 between 11 countries – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.The U.K will become the 12th member and the first to join since the partnership since its inception.
  • It is the successor to the Trans-Pacific Partnership (TPP), which was a key plank in the Obama administration’s “Pivot to Asia” strategy that aimed to create an economic counterweight to China’s regional influence.It emerged after the former US president Donald Trump withdrew the country from the TPP in 2017, soon after taking office.
  • Also, it is important to note that, In September 2021, China submitted a formal application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). But for the entry, there must be a consensus among all 11 members.
  • The CPTPP commission 2023 is currently chaired by New Zealand.

Objectives:

  • The agreement mandates the duty-free entry of commercial samples having almost negligible value and printed advertising material from the territory of a signatory party.
  • CPTPP covers virtually all sectors and aspects of trade in order to eliminate or reduce barriers. It establishes clear rules that help create a consistent, transparent and fair environment to do business in CPTPP markets.
  • It eliminates tariffs and reduces barriers for 98% of exports to CPTPP member countries.
  • It also includes trade-related technical cooperation among CPTPP members, including with respect to small and medium-sized enterprises, regulatory coherence and economic development.

Significance:

  • The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will offer exporters a competitive advantage over exporters from other countries that do not have a free trade agreement with countries in the Asia-Pacific region.
  • Once fully implemented, CPTPP will form a trading bloc representing 500 million consumers and 13.5% of global GDP, providing preferential access to key markets in Asia and Latin America.

2. IMF’S $15.6 BILLION LOAN FOR UKRAINE

TAGS: GS-II-INTERNATIONAL RELATIONS

THE CONTEXT: The International Monetary Fund (IMF) has approved a loan program worth $15.6 billion for Ukraine as part of a larger $115 billion package to aid its war-torn economy. With one-third of Ukraine’s population displaced, the IMF’s support comes as a crucial aid in reconstructing the country’s economy.

THE EXPLANATION:

Ukrainian President Volodymyr Zelenskyy expressed gratitude to the IMF for the support and called it an essential help in the fight against Russian aggression.

Two-Phase Loan Program for Ukraine

  • The IMF’s loan program for Ukraine will span four years and run in two phases. The first phase aims to close Ukraine’s massive budget deficit and stabilize disinflation. The IMF’s support will ease the pressure on government spending by providing immediate financial assistance of $2.7 billion. Ukraine is required to focus on financial stability and undertake ambitious structural reforms, particularly in the energy sector.
  • The second phase of the loan program will begin once active combat subsides and will focus on reforms to improve growth in the medium to long term. The IMF’s overarching goals are to sustain economic and financial stability at a time of exceptionally high uncertainty and promote reforms for Ukraine’s post-war accession to the European Union.

Requirements for the Loan Program

  • The IMF’s loan program is designed to support Ukraine’s struggles in meeting its payments arising from the large exogenous shock of the war. Ukraine is required to meet stringent IMF targets while financing its possibly decisive spring counteroffensive, which is expected to commence in April, 2023.
  • The program mandates Ukraine to develop independent and effective anti-corruption institutions to help mitigate corruption risks and boost donor confidence.

3. PIEZOELECTRIC EFFECT IN LIQUIDS

TAGS: GS-III- SCIENCE AND TECHNOLOGY

THE CONTEXT: Recently, researchers have discovered that this effect can also occur in liquids, opening up a host of novel applications. Let’s take a closer look at this discovery and what it means.

THE EXPLANATION:

The piezoelectric effect is a phenomenon whereby certain materials, such as quartz crystal, generate an electric current when subjected to mechanical stress.

The Piezoelectric Effect and Liquid Composition

  • The piezoelectric effect in solids is well known, with quartz crystal being one of the most famous examples. Quartz crystal is composed of silicon and oxygen arranged in an organized structure. When squeezed, the crystal generates an electric current due to the displacement of charges from the centre.
  • In liquids, however, the piezoelectric effect has not been observed until now. Two liquids, one normal and one ionic, were studied to investigate this effect. The liquids were subjected to mechanical stress, and the resulting electric current was measured. The researchers found that both liquids exhibited the piezoelectric effect, with strengths of 16 mV/N and 17 mV/N, respectively.

The Structure of the Body and the Piezoelectric Effect

  • The significance of the structure of the body in the piezoelectric effect is that it needs to have an organized structure. Quartz crystal is an excellent example of this, as the organized structure allows for the displacement of charges from the centre when squeezed.
  • The same appears to be true for liquids, with the discovery of the piezoelectric effect suggesting that there is some manner of organization in ionic liquids that is not seen in normal liquids.

Dielectric Materials and Ionic Liquids

  • Dielectric materials are materials that don’t conduct electricity but are mildly affected by an electric field. Ionic liquids, on the other hand, are made of ions instead of molecules and can be recycled with fewer environmental issues.
  • The difference between normal and ionic liquids is that they respond very differently at the molecular level when an electric charge is imposed on them.

The Piezoelectric Constant in Liquids

  • The piezoelectric constant is a measure of how strongly a material exhibits the piezoelectric effect. The piezoelectric constant calculated for the liquids tested in the study was lower than that of quartz by a factor of 10.
  • This suggests that the piezoelectric effect in liquids may not be as strong as in solids, but it is still a significant discovery.

Applications of the Piezoelectric Effect in Liquids

  • The discovery of the piezoelectric effect in liquids opens up a whole new avenue of research for novel applications.
  • One potential use of the inverse piezoelectric effect, which is the distortion of liquids when an electric charge is applied, is to control how liquids bend light passing through them. Another possible use is in developing room-temperature ionic liquids for use in batteries and other electronic devices.

4. NEVADO DEL RUIZ VOLCANO

TAGS: PRELIMS-PLACES IN NEWS

THE CONTEXT: Nevado del Ruiz is a stratovolcano located in the central part of Colombia. It is considered one of the most active and dangerous volcanoes in the country, with a history of generating destructive lahars and pyroclastic flows. In this article, we will delve into the facts and information about the Nevado del Ruiz volcano.

THE EXPLANATION:

Geographical Location and Composition

  • Nevado del Ruiz is situated in the Andes mountain range, approximately 129 km (80 mi) from the capital city of Bogotá. It is part of the Los Nevados National Natural Park, which is home to other volcanic peaks and glaciers.
  • The volcano’s composition consists of layers of lava, volcanic ash, and pyroclastic rocks, which have built up over approximately two million years of volcanic activity.

Types of Eruptions and Hazards

  • The Nevado del Ruiz volcano has a history of generating explosive eruptions, ranging from Vulcanian to Plinian. The eruption in 1985 caused the deadliest lahar in recorded history, known as the Armero tragedy.
  • The lahar, which was triggered by the melting of snow and ice on the volcano’s summit during the eruption, swept away the town of Armero and claimed the lives of over 23,000 people.

Current Status and Risk Assessment

The Volcanic and Seismic Observatory of Manizales constantly monitors the Nevado del Ruiz volcano. The current status of the volcano is an orange alert due to an increase in seismic activity, which indicates a heightened risk of volcanic activity. Up to 500,000 people could be at risk from lahars and other hazards in the event of future eruptions.

The Ring of Fire

Nevado del Ruiz is situated in the Ring of Fire, a belt of intense seismic activity that encircles the Pacific Ocean. The Ring of Fire is known for its numerous active volcanoes and frequent earthquakes.

5. WHAT IS UTKALA DIBASA?

TAGS: PRELIMS PERSPECTIVE

THE CONTEXT: Odisha Day, also known as Utkala Dibasa, is a significant day for the Indian state of Odisha. Celebrated on 1 April every year, the day commemorates the formation of the state as a separate entity out of Bihar and Orissa Province. This article delves deeper into the history behind Odisha Day and how it has become an essential part of the state’s cultural identity.

THE EXPLANATION:

Origins of Odisha Day

  • Odisha’s history dates back to ancient times when it was known as Kalinga. It was ruled by several dynasties, including the Mauryas, Satavahanas, and Guptas. However, the state lost its political identity completely in 1568 after the defeat and demise of the last king, Mukunda Dev. For centuries, Odisha was ruled by different empires, including the Mughals and the British.
  • In the early 20th century, Odisha witnessed a linguistic movement that aimed to establish a separate province based on the Odia language. The movement culminated in the formation of a separate state under British rule on 1 April 1936.

The Main Revolution

  • The main revolution in this separate state continued for three decades, starting from the very day of the formation of Utkal Sammilani. The movement turned more intense under the leadership of Utkala Gouraba Madhusudan Das and other notable leaders such as Utkala mani Gopabandhu Das, Maharaja SriRam Chandra Bhanj Deo, and more.
  • The leaders fought for the rights and development of Odisha and its people. They demanded a separate province based on the Odia language, which would help preserve and promote the state’s rich culture and heritage. Their efforts led to the creation of a politically separate state on April 1, 1936.

Role of the Public

The public played a significant role in supporting the leaders during the Odisha movement. They participated in protests, rallies, and demonstrations, demanding a separate state for Odisha. Their support and solidarity gave the leaders the strength and motivation to continue the struggle for their rights.




Ethics Through Current Development (03-04-2023)

  1. Re-educate yourself READ MORE
  2. Befriend Contentment READ MORE



Today’s Important Articles for Geography (03-04-2023)

  1. 170 trillion plastic particles are afloat in the oceans: What a new study says about microplastics READ MORE
  2. Pollution hotspots: Focus on NCR to curb harmful emissions READ MORE
  3. Address climate change with urgency READ MORE



Today’s Important Articles for Sociology (03-04-2023)

  1. Caste is hardly past: Kerala, TN govts’ celebration of a social reform movement is part politics, part a mirror to current reality READ MORE
  2. Societal needs stretch beyond skill formation READ MORE



Today’s Important Articles for Pub Ad (03-04-2023)

  1. India needs a national programme on autism READ MORE
  2. Disrespecting India’s sovereignty READ MORE
  3. Position on disqualification READ MORE
  4. Will Retired Supreme Court Judges Stand Up and Be Counted? READ MORE



WSDP Bulletin (03-04-2023)

(Newspapers, PIB and other important sources)

Prelim and Main

  1. Poor testing of pashmina shawls still poses a problem READ MORE  
  2. Pinarayi, Stalin open Vaikom Satyagraha centenary fete READ MORE
  3. Bandipur completes 50 years as Project Tiger reserve, traces legacy to Maharajas READ MORE
  4. ‘Small savings to nudge up govt. interest cost’ READ MORE
  5. Centre to expand definition of ‘political risk’ under export guarantee scheme READ MORE
  6. In a first, Eravikulam National Park gets a fernarium READ MORE
  7. UN to start allowing deep sea mining operations from July: What are the concerns? READ MORE
  8. Azerbaijan, Tajikistan reach malaria-free milestone READ MORE
  9. India has registered a global first of a plant fungus infecting humans; climate change, AMR will exacerbate it READ MORE
  10. Intriguing water source found on the Moon, piezoelectric effect found in liquids and more READ MORE
  11. What is H3N8 or bird flu? China reports first case of 2023, here’s all you need to know READ MORE
  12. New India Literacy Programme launched to cover target of 5 crore non-literates in age group of 15 years and above READ MORE

Main Exam

GS Paper- 1

  1. Caste is hardly past: Kerala, TN govts’ celebration of a social reform movement is part politics, part a mirror to current reality READ MORE
  2. Societal needs stretch beyond skill formation READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

  1. India needs a national programme on autism READ MORE
  2. Disrespecting India’s sovereignty READ MORE
  3. Position on disqualification READ MORE
  4. Will Retired Supreme Court Judges Stand Up and Be Counted? READ MORE

INTERNATIONAL ISSUES

  1. No ‘sayonara’ for Japan in Indo-Pacific geopolitics READ MORE
  2. What Bhutan is telling India via Doklam READ MORE
  3. Going strong with Russia: Recent visits by Putin’s top associates indicate strengthening of ties READ MORE
  4. Can India Become Vital to China’s Plans to Dismantle the US-Centred World Order? READ MORE
  5. China’s ‘package deal’ for Bhutan that worries India READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

  1. The curious case of monetary policy’s impact on inequality READ MORE
  2. Can policy rate hikes alone control inflation? READ MORE
  3. India’s G20 presidency: A key driver for inclusive growth READ MORE
  4. Indian economy in a ‘bright spot’ but challenges emerging READ MORE
  5. Bank failures: Why the developing world must demand accountability from Western financial regulators READ MORE

SCIENCE AND TECHNOLOGY

  1. Explained | Why is India taking 6G seriously? READ MORE

ENVIRONMENT AND ECOLOGY

  1. 170 trillion plastic particles are afloat in the oceans: What a new study says about microplastics READ MORE
  2. Pollution hotspots: Focus on NCR to curb harmful emissions READ MORE
  3. Address climate change with urgency READ MORE

SECURITY

  1. Theatre commands will help optimise resources READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

  1. Re-educate yourself READ MORE
  2. Befriend Contentment READ MORE

Questions for the MAIN exam

  1. The current overemphasis on acquiring skills at the cost of compromising life fundamentals would be counterproductive in the long run and needs a relook. Discuss how work-life balance can be maintained?
  2. To achieve its long-term goal of stable inflation and growth, RBI needs to look at different instruments to reduce the impact of supply shock-induced inflation volatility. Critically examine.

QUOTATIONS AND CAPTIONS

  • Success is the sum of small efforts repeated day in and day out.
  • As with the shrinkage of Russian space globally, the country that benefits most from this outcome is China, which is able to successfully portray itself as “the leader speaking on behalf of the Global South”.
  • India may be face-to-face with China over its Himalayan borders, and it may even be a part of the Quad, a visibly anti-China alliance, but these only matter if the conflict comes to a head.
  • Against the backdrop of the ongoing Russia-Ukraine conflict, China is playing its cards tactically to expand its own influence at the expense of Russia, its ‘closest ally’.
  • Developed, rather than emerging markets, have been the source of financial and economic instability since the 2008 global financial crisis.
  • The future of employment might lie, counter-intuitively, in agriculture if India can adopt higher-value, employment-intensive farming practices that will increase productivity, jobs, and wages.
  • For success in world-beating manufacturing, India has to invest in firm-level R&D and innovation.
  • Integration into joint formation structures is a very important issue professionally impacting the functioning of the armed forces to best meet national security challenges.
  • In such a complex scenario, where geoeconomics and geopolitics intersect, Chekunkov’s visit signifies Kremlin’s prioritisation of India as a key partner for the development of Russian Far East, although China is manifestly keen to connect the Arctic to its Belt and Road Initiative.
  • The current overemphasis on acquiring skills at the cost of compromising life fundamentals would be counterproductive in the long run and needs a relook.
  • In the recent times, there have been many challenges in managing the wildlife. A fresh innovative approach is required to manage the life on the planet.
  • The first principle of democracy is to have deference for the views and feelings of others. Without this, democracy cannot endure.
  • To achieve its long-term goal of stable inflation and growth, RBI needs to look at different instruments to reduce the impact of supply shock-induced inflation volatility.

ESSAY TOPIC

  • Success is the sum of small efforts repeated day in and day out.

50-WORD TALK

  • Integration into joint formation structures is a very important issue professionally impacting the functioning of the armed forces to best meet national security challenges. Given the commitments on the borders necessitating the primacy of operations by the Army, with units and formations being deployed around the year, unified command structures have to be viewed in terms of our current challenges rather than through the seductive prism of a superpower with expeditionary forces.

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 in 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 mains 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-408 | Daily MCQs | UPSC Prelims | ECONOMY

[WpProQuiz 454]




TOPIC : INDIA AND GERMANY BILATERAL RELATIONS IN THE CONTEXT OF INDIA AND EU RELATIONS

THE CONTEXT: German Chancellor Olaf Scholz arrived in New Delhi for a visit to India from February 25-26. Scholz is accompanied by senior officials and a high-powered business delegation. His visit to India is the first standalone by any German Chancellor since the commencement of the Intergovernmental Consultations (IGC) mechanism between the two nations in 2011.

INDIA GERMANY RELATIONSHIP

  • Germany is India’s largest trading partner in Europe with bilateral trade- $21.98 bn in 2017-18
  • Germany is 7th largest FDI in India with investments of $11.7 bn
  • India and Germany share a strong economic partnership. Germany is India’s largest trade partner in the European Union and has consistently been among India’s top 10 global trade partners. It is also one of the largest foreign direct investors in India.

The IGC is a whole-of-government framework under which Ministers from both countries hold discussions in their respective areas of responsibility and report on the outcome of discussions to the Prime Minister and Chancellor.

HISTORICAL PINNING’S

2000

India and Germany have a ‘Strategic Partnership’ since May 2000

2011

Relations have been further strengthened with the launch of Intergovernmental Consultations (IGC) in 2011 at the level of Heads of Government which allows for a comprehensive review of cooperation and identification of new areas of engagement.

2022

6th Inter-Governmental Consultations: Prime Minister visited Berlin on 2 May 2022 to co-chair the 6th IGC with Chancellor Olaf Scholz where he was accompanied by External Affairs Minister, Finance Minister, National Security Advisor and Minister of State (I/C) for Science & Technology. A total of 14 agreements were signed in diverse fields such as green partnership, development cooperation, renewable energy, migration and mobility, economic cooperation and agriculture. Prime Minister and Chancellor also signed a Joint Declaration of Intent on a Green and Sustainable Development Partnership.

OUTCOME OF THE RECENT VISIT

The changing geopolitical and geostrategic environment has led to the strengthening of the bilateral relations between two countries. The Ukraine crisis has led to shift its focus from Russia and China and treating India as a key partner in its foreign policy.

  • Defence: The meetings included discussions around co-development of military hardware and tech transfers, and a deal worth $5.2 billion where Germany would jointly build six conventional submarines in India could be underway.
  • Also first ever France-India-Germany military exercise drill is slated to take place in 2024 towards enhanced security and defence collaboration.
  • Indo-Pacific region: For Germany, the stability of supply chains and trade routes linking Asia to Europe assumes critical importance given its status as Europe’s economic powerhouse and its reliance on exports. Thus Germany intends to enhance its strategic involvement in the region through greater military deployment. Germany’s symbolic gesture of sending its frigate Bayern to the Indo-Pacific in 2021, with a stopover in Mumbai (January 2022), was a demonstration of this.
  • Clean energy and green technologies: Collaboration in clean energy and green technologies has emerged as the central pillar in the partnership, with the launch of a Green and Sustainable Development Partnership last year and cooperation in the area of green hydrogen.
  • Mobility and migration: The subject of mobility and migration was also under focus given Germany’s shortages of skilled manpower; where technically skilled Indians could help plug this gap.
  • Work visas : improving the legal framework so Germany becomes more attractive for software developers and those with IT development skills is a priority for his government
  • Values: the strong ties between India and Germany are based on shared democratic values of each other’s interests
  • People to people relationship: people-to-people relations between the two countries and the initiatives like ‘Make in India’ &Aatmanirbhar Bharat campaign.
  • Reform in the UN: India and Germany also cooperate in multilateral forums, as part of the G-4 grouping pushing for United Nations Security Council reform, and as evident in Germany’s invitation to Mr. Modi to attend last year’s G-7 summit.

EU BASIC FACTS

EUROPEAN PARLIAMENT

  • The European Parliament is the EU’s law-making body. It is directly elected by EU voters every 5 years. The last elections were in May 2019.
  • Role: Directly-elected EU body with legislative, supervisory, and budgetary responsibilities
  • Members: 705 MEPs (Members of the European Parliament)
  • Legislative role: Passing EU laws, together with the Council of the EU, based on European Commission proposals.

EUROPEAN COMMISSION

  • The European Commission is the EU’s politically independent executive arm. It is alone responsible for drawing up proposals for new European legislation, and it implements the decisions of the European Parliament and the Council of the EU.
  • Role: Promotes the general interest of the EU by proposing and enforcing legislation as well as by implementing policies and the EU budget.

COUNCIL OF THE EU

  • In the Council of the EU, informally also known as the Council, government ministers from each EU country meet to discuss, amend and adopt laws, and coordinate policies. The ministers have the authority to commit their governments to the actions agreed on in the meetings. Council meetings take place in Brussels, except for three months (April, June and October) when they are held in Luxembourg.
  • Together with the European Parliament, the Council is the main decision-making body of the EU.

EVOLUTION OF EU

History of the European Union 1945-59

5 May 1949 – The Council of Europe is established— 10 Western European countries create the Council of Europe to promote democracy and protect human rights and the rule of law.

9 May 1950 – A plan for new political cooperation in Europe.

18 April 1951 – European Coal and Steel Community—Based on the Schuman plan, six countries sign a treaty to run their coal and steel industries under a common management. The six are Germany, France, Italy, the Netherlands, Belgium and Luxembourg. The European Coal and Steel Community came into being in 1952.

1957 – Treaties of Rome

Building on the success of the Coal and Steel Treaty, the 6 founding countries expand their cooperation to other economic sectors. They formalise this by signing two treaties, creating the European Economic Community (EEC) and the European Atomic Energy Community (Euratom). These bodies come into being on 1 January 1958.

1958 – Birth of the European Parliament— It replaces the Common Assembly of the European Coal and Steel Community and changes its name to the European Parliament on 30 March 1962.

The ‘Swinging Sixties’ – a period of economic growth

1960 – European Free Trade Association created: The European Free Trade Association (EFTA) is created, to promote free trade and economic integration between certain countries not in the EEC.

1968 – beginning of the Customs Union: The 6 EEC member countries remove customs duties on goods imported from each other, allowing free cross-border trade for the first time.

1970-79

A growing Community – the first new members join

Denmark, Ireland and the United Kingdom join the European Communities on 1 January 1973, raising the number of member countries to 9.

1980-89

The changing face of Europe – the collapse of communism

1981 – Greece becomes the 10th country to join

Greece joins the European Communities. It has been eligible to do so since the military regime was overthrown and democracy restored in 1974.

1986 – Two new members – Spain and Portugal

1986 – Towards a single market

Although customs duties disappeared in 1968, trade is not flowing freely across the borders between member countries. The main obstacles are differences in national regulations. The Single European Act launches a vast 6-year programme to sort these out and thus create a single market.

1990-99

A Europe without frontiers

In 1993, the single market is launched with the ‘4 freedoms’ of free movement for people, goods, services and money.

The 1990s is also the decade of 2 treaties –

  1. the Treaty on European Union (Maastricht Treaty) in 1993 and
  2. the Treaty of Amsterdam in 1999. Austria, Finland and Sweden joined the EU in 1995, and a small village in Luxembourg gives its name to the Schengen agreement that will gradually allow people to travel to large parts of the EU without passport checks.

1992 – Maastricht Treaty: European Union’ is officially created by the treaty, which enters into force on 1 November 1993.

1994 – European Economic Area is created—The agreement establishing the European Economic Area (EEA) enters into force, extending the single market to countries in EFTA

1999 – The euro is born—The euro is introduced in 11 countries for commercial and financial transactions only.

2000-09

Further expansion

European Union developed from 2000 to 2009 with 12 new countries joining, the euro becoming legal tender and the signing of the Lisbon Treaty.

2010-19

A challenging decade

European Union developed from 2010 to 2019, responding to the financial crisis, Croatia joining the EU, and the UK voting to leave.

2020-today

A united and resilient EU

European Union has developed since 2020, responding to unprecedented challenges such as the COVID-19 pandemic, Russia’s war of aggression against Ukraine, and fighting climate change.

INDIA EU RELATIONSHIP

  • India-EU bilateral relations date back to the early 1960s with India being amongst the first countries to establish diplomatic relations with the European Economic Community in 1962. The Joint Political Statement signed in 1993, coupled with the Cooperation Agreement signed in 1994 opened the way for strengthening the bilateral ties.
  • A multi-tiered institutional architecture of cooperation has since been created, presided over by the India-EU Summit since 2000.The first India-EU Summit took place in Lisbon in June 2000 and marked a watershed in the evolution of the relationship.
  • India -EU relationship was upgraded to “strategic partnership” during the 5th India-EU Summit held in 2004 in The Hague. As on date, 15 Summits have been held between India and the EU.
  • In 2018 , the EU came out with strategy on india that viewed India as an emerging global power that plays a key role in the current multipolar world and a factor of stability in a complex region and calls for greater India – EU political, security and defence cooperation.
  • 15th India-EU Summit: The 15th India-EU summit was held in virtual mode on 15 July 2020. It saw the adoption of a wide-ranging joint statement and also an India-EU Strategic Partnership Roadmap for 2025. An Agreement on Civil Nuclear Energy Cooperation was signed and another Agreement on S&T Cooperation was extended for a further period of 5 years. Both sides also issued a Joint Declaration on Resource Efficiency and Circular Economy.
  • India-EU Leaders’ Meeting: In continuation of the highly successful 15th India-EU Summit, the first ever India-EU Leaders’ Meeting was held on 08 May 2021 in hybrid mode. In thus it was decided to launch an ambitious and comprehensive ‘Connectivity Partnership’ which is focused on enhancing digital, energy, transport and people-to-people connectivity; and reiterated their commitment to achieving the goals of the Paris Agreement and agreed to strengthen joint efforts for mitigation, adaptation and resilience to the impacts of climate change.
    • many analysts have called the summit as a “turning point.”
    • Relaunched FTA talks suspended since 2013
    • Apart from the US, India is the only country with which EU has had summit in this format, showing india’s growing salience in EU’s geopolitical calculations
    • India welcomed the EU’s decision to join CDRI. India and the EU also agreed to enhance bilateral cooperation on digital and emerging technologies such as 5G, AI,etc

Areas of cooperation

Economic Cooperation

●  EU is India’s third largest trading partner accounting for €88 billion worth of trade in goods in 2021 or 10.8% of total Indian trade. India is the EU’s 10th largest trading partner, accounting for 2.1% of EU total trade in goods. Trade in services between the EU and India reached €30.4 billion in 2020.

●  Investment: The EU’s share in foreign investment inflows to India more than doubled from 8% to 18% in the last decade making the EU India’s largest source of FDI.

●  BTIA: The negotiations for a Broad-based Bilateral Trade and Investment Agreement (BTIA) were held between 2007 to 2013 but remained dormant till 2021.

●  india-Europe trade and technology council was launched. EU has this mechanism only with the US

Strategic Cooperation

●  Both EU and India have a common interest in avoiding a bipolar world and sustaining a rules-based multilateral system with the UN and WTO at its core

●  Defence– Information Fusion Centre-IOR linked to Maritime Security Centre-Horn of Africa (MSC-HOA) established by EU naval force.

●  EU in Indo-Pacific: EU has released its “ EU strategy for cooperation in the Indo pacific” that highlights “china’s expansionism as threat to european security and prosperity” and focuses on “centrality of ASEAN” in the indo-pacific.

●  India is looking at EU countries as a natural partner in forging a durable Balance of power in the indo pacific region. As it confronts a rising China, India needs both the United States and Europe to construct a multipolar Asia.

Sectoral Cooperation:

India and the EU have cooperation in various sectors, including Agriculture & Marine, Energy, Environment, Water, Pharmaceuticals, Biotechnology & Medical Devices, Science & Technology, Science and Technology, Infrastructure, Information & Communications Technology and aviation.

Development Partnership

●  European Investment Bank: European Investment Bank’s (EIB) is providing loans for Lucknow, Bangalore, Bhopal, Kanpur and Pune Metro Projects. EIB opened its first office for the South Asian Region headquartered in New Delhi on 30 March 2017.

●  Indian students avail Erasmus+ scholarship for studies in EU countries.

Bilateral Dialogues

India and EU have institutionalized political dialogues, inter alia, on Counter-Terrorism, Cyber Security, Migration and Mobility, Maritime Security, Human Rights, Non-Proliferation and Disarmament. The two sides meet regularly to discuss bilateral cooperation and international developments in these areas.

ISSUES IN INDIA EU RELATIONSHIP WITH RESPECT TO THE BTIA

Negotiations on free trade agreement has been started in 2007 , but it has been suspended due to “gap in ambitions” of both parties

Various issues in this include:

  • Opposition from Indian dairy sector
  • Opposition from farmers especially in wines and spirit
  • EU has not given India the status of data secure nation hence posing restrictions for its IT companies
  • EU’s emphasis on strong IPR regimes
  • EU reluctant to liberalise its service sector and movement of persons
  • The EU’s insistence on labour and environmental standards, access to government procurement, stricter intellectual property rules and cross-border data flow will not be easy for India to meet. With India’s move towards data localization, negotiations could be acrimonious. While India will seek to have zero duty access for textiles, garments and leather products, UK and EU will seek market access in automobiles, wines and Scotch whisky.
  • India accounts for only 2% of the EU’s external trade while china stands at 14% thus it has more strong relations with China.
  • Time and again EU’s calls for alleged HR violations in Kashmir and on recent CAA act create diplomatic mistrust between the two entities
  • India’s excessive focus on select countries like France,UK and Germany

HOW WILL INDIA AND GERMANY RELATIONS STRENGTHEN INDIA-EU RELATIONSHIP?

  • With a population of 83.1 million, Germany is the most populous member state of the European Union.
  • Germany is India’s largest economic partner in the European Union (EU). Thus, trade naturally figured high on the agenda boosted by the relaunch of the India-EU free-trade agreement negotiations where the Chancellor, travelling with his high-powered business delegation, stated he would “get personally involved”.
  • Germany has now been sceptical about Russia and China axis and now searching for other partners to balance the relationship. Strong EU and India relation will be strategically important for balancing the China’s aggression and assertiveness. Thus Germany will make efforts to conclude the BTIA.

THE WAY FORWARD:

  • The is a need for strong political will to conclude the BTIA for strengthening the rule based world order.
  • Need for regular consultation and negotiation for its early conclusion.
  • All the commitments should be strictly adhered to build mutual trust.
  • There is need to have strategic calculations rather than only focusing on the economic interests in the context of rising aggressive China.

THE CONCLUSION: To establish rule based world order and respect multilateralism with multipolar world order, India and the EU can play an important role. Thus India and Germany should work together to strengthen the India and EU relationship and conclude the free trade agreement BTIA.

Additional information:

Brexit and impact on India:

  • Britain left the EU under article 50 of the Lisbon Treaty.
  • After losing access to the EU single market, the UK would want to develop trade relations with emerging markets around the world. India, with strong economic fundamentals and a large domestic market, is in a better position to gain that opportunity.
  • India is a significant Foreign Direct Investment (FDI) source for the UK because many Indian firms have used it as a gateway to the EU single market. Initially, after divorcing from the EU, the UK wouldn’t like to miss Indian investment. It will attract Indian firms by offering more incentives such as tax breaks, relaxed regulations and opening up markets.
  • The depreciation in the pound would help Indian companies to import items from their UK subsidiaries and will create incentive for Indian investment in the region. It would make the UK an attractive destination for higher studies.
  • UK might sign an FTA with India before India finalises BTIA with EU.
  • Automobile and steel sector may face adverse impact of slowdown of British Economy.

Windsor Framework:

The Windsor Framework is a proposed post-Brexit legal agreement between the European Union and the United Kingdom which was announced on 27 February 2023. It is designed to address the problem of the movement of goods between the European Single Market and the United Kingdom in the current Northern Ireland Protocol.

Mains Question

  1. In the changing geostrategic scenario, it is imperative for the EU and India to cooperate together. Critically analyse.
  2. Critically examine whether strong India and Germany relations will help strengthen the India -EU relationship.