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Date

Nov 04 2024
Expired!

Time

8:00 am

4th November 2024

Article: 4th November, 2024

Topic: Namo Drone Didi Scheme

Relevance: GS Paper: 3 – Role of technology in Agriculture

Source: News on AIR

Context

  • The Namo Drone Didi Scheme Operational Guidelines have been made public by the government.
  • The instructions state that the Empowered Committee of Secretaries from key departments will oversee the Scheme at the central level.

About the Namo Drone Didi Scheme

  • This program is of the Central Sector and is a component of the National Rural Livelihood Mission (DAY-NRLM) initiative.
  • Goal: By renting out drones for agricultural purposes, Self-Help Groups (SHGs) will empower women. From 2024 to 2026, it seeks to assist 14,500 SHGs across the country.
  • Ministry: Ministry of Agriculture and Farmers’ Welfare

Important features:

  • Financial Support: SHGs can purchase drones with an 80% subsidy up to Rs 8 lakh.
  • Other funding possibilities are available through the Agriculture Infra Financing Facility (AIF), which offers loans with an interest subvention of 3%.
  • Drone kit: Batteries, cameras, chargers, spray assemblies, and measurement instruments are all included in every kit.
    Up to 20 acres can be covered each day thanks to the additional batteries and propellers that are supplied.
  • Training Program: A designated drone pilot from each SHG will receive 15 days of instruction in drone operation, with an emphasis on agricultural duties like spraying pesticides and nutrients.
  • Implementation and Oversight: In collaboration with state departments, drone manufacturers, and SHG federations, Lead Fertilizer Companies (LFCs) will carry out the plan at the state level.
  • The program will be governed by a central Empowered Committee made up of representatives from several departments.
  • IT-Based Drone Portal: This Management Information System (MIS) will offer real-time drone usage tracking, fund disbursement, and end-to-end monitoring.

Importance

  • Empowers Women: By offering options for revenue generation through agricultural drone services, this initiative supports women’s self-help groups (SHGs).
  • Modernizes Agriculture: Drones are used to apply pesticides and fertilizer more effectively, boosting crop productivity and yield.
  • Lowers Costs for Farmers: By saving time and labor, drones help farmers afford more sophisticated farming techniques.
  • Encourages Rural Skill Development: Increases digital literacy in rural regions by teaching SHG members how to operate and maintain drones.
  • Encourages Government Initiatives: supports the objectives of sustainable agriculture and rural empowerment in line with DAY-NRLM and Kisan Drones.

Problems & Issues

  • Financial Burden on SHGs: While the program pays for 80% of the expenses, SHGs are required to get the remaining 20% through loans, which could be risky for financially disadvantaged groups if the expected economic benefits of using drones in agriculture are not realized.
  • Limited Technical Complexity Training: SHG members may not receive enough training in 15 days to manage difficult duties like applying pesticides or resolving unforeseen problems.
  • Dependency on Lead Fertilizer in Bureaucratic Layers: The implementation of the plan could be slowed down by bureaucratic inefficiencies introduced by coordinating companies.
  • Health and Environmental Risks: The possible effects on biodiversity, particularly in ecologically sensitive places, have drawn criticism. For instance, conservationists in Tamil Nadu’s Nilgiris district voiced worries that pollinators and delicate ecosystems would be harmed by aerial spraying.

Way Ahead

  • Enhanced Financial Support: To avoid putting SHGs under financial strain, think about using grants or subsidies for the remaining 20% in place of loans.
  • Programs for Extended Training: To guarantee that SHGs are better prepared to manage technological issues, implement lengthier, more thorough training programs that may include refresher courses.

Also Read Topics & Concepts:

https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/nov/doc2024114428601.pdf

Prelims Practice Questions

Q. Consider the following statements regarding Namo Drone Didi Scheme

1. The plan is to position India as a leader in drone technology worldwide.
2. The program’s main goal is to give women business owners financial support.

Which of the above statements are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Ans: d

Explanation

The main goal of the plan is not to position India as a leader in drone technology worldwide. Its primary goal is to empower women by giving them training and access to drone technology so they may increase their agricultural incomes. Women entrepreneurs do not receive direct financial support from the program. Its main goal is to give them training and access to drone technology so they may enhance their farming methods and raise their income.

Mains Model Questions

Q. Discuss about how the “Namo Drone Didi” scheme supports government initiatives to use technology for the security and well-being of society.

  Introduction: The Indian government’s “Namo Drone Didi” program is a noteworthy attempt to empower women in a variety of self-help organizations. By offering drone technology for a variety of uses, it represents a revolutionary step in using technology to improve society.     Body:   Empowerment and the Skill Development:

Women’s Empowerment and Training: The program aims to teach women in Self-Help Groups how to fly drones for a variety of uses, including mapping, agricultural, disaster relief, and surveillance. This program helps close the gender gap in technology by promoting women’s economic independence and skill development.Improving Women’s Involvement in Unusual Fields: The program promotes gender equality and women’s empowerment in the technological sphere by giving women access to drone technology and encouraging them to actively participate in fields that have historically been controlled by males.

Contributions to Community Development and Agriculture:

Modernising Agricultural Practices: The programme uses drones to modernise farming methods, increase productivity, and save labour and time when it comes to tasks like applying liquid fertilisers and pesticides. Data gathering and access to remote places are made possible by the use of drones, which greatly aids in community development and effective resource management by providing access to isolated areas for data collecting and monitoring.

Possibilities for the Economy and the Creation of Jobs:

Diverse Economic options: The program gives women access to new financial options, increasing their potential for income generation in fields like agriculture and disaster management​​.Jobs in Drone-Related Industries: Additionally, it develops a new industry ecosystem around drone technology by creating job opportunities in drone manufacture, piloting, repairs, and spare-part dealerships.

Effect on Security and Welfare in Society:

Increasing Agricultural Productivity and Efficiency: The program promotes agrarian family culture and increases agricultural productivity by enabling women to operate drones, which benefits society as a whole. Drones are used in surveillance and disaster management, which improves community security and readiness and demonstrates the importance of technology in societal security.       Conclusion: The Indian government’s dedication to using technology for the security and well-being of society is demonstrated by the “Namo Drone Didi” program. By improving neighborhood security, generating new economic opportunities, and empowering women via skill development, the program sets an example for how technology may be used for the benefit of society. It helps achieve the larger objective of creating a more technologically sophisticated and inclusive society in addition to promoting the socioeconomic advancement of women.    

Article: 4th November, 2024

Topic: Dedicated Freight Corridors (DFC)

Relevance: GS Paper: 3 – Economy

Source: Business Standard

Context

  • According to a University of New South Wales report, India’s GDP has benefited from dedicated freight corridors.

About the Study

  • The study used a variety of data, such as population statistics, industrial inputs, and freight prices, and came to the conclusion that the DFCs greatly helped western regions and states with lower per capita GDPs by lowering freight costs.
  • According to DFCS, Indian Railways’ revenue increased by 2.94% from FY 2018–19 to FY 2022–23. Commodity prices have decreased by 0.5% as a result of lower freight costs and shorter journey durations brought about by increased freight transport efficiency.

What are Dedicated Freight Corridors (DFCs)?

  • These are freight-specific routes that facilitate higher-capacity and speedier transportation, enhancing supply chains and promoting export-import operations.
  • The DFC project was revealed in the Railway Budget for FY 2005-06.
  • For the purpose of building and running the corridors, the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) was created in 2006 as a Special Purpose Vehicle.

Salient Features

Recent Advancements

  • In 2006, the Ministry of Railways launched two DFCs:
    – From Sonnagar, Bihar, to Sahnewal, Punjab, the Eastern Dedicated Freight Corridor (EDFC) is 1,337 kilometers long and finished.
    – From Jawaharlal Nehru Port in Mumbai to Dadri in Uttar Pradesh, the Western Dedicated Freight Corridor (WDFC) is a 1,506-kilometer route that is 93% commissioned and anticipated to be finished by December 2025.
  • India has suggested four additional Dedicated Freight Corridors (DFCs) in addition to the Eastern and Western DFCs:
    East-West DFC: Mumbai to Kolkata
    North-South DFC: Chennai to Delhi
    East Coast DFC: Vijayawada to Kharagpur
    South DFC: Goa to Chennai

Upgraded dimensions of DFC

Need for Dedicated Freight Corridors (DFCs)

  • Reduce traffic: Delhi, Mumbai, Chennai, and Howrah are connected by the Golden Quadrilateral of Indian Railways, which is overcrowded.
    Dedicated Freight Corridors (DFCs) will ease traffic, boost productivity, and meet India’s expanding transportation needs.
  • Improving Freight Efficiency and Cutting Down on Travel Time: DFCs offer freight-specific tracks that enable quicker and continuous cargo transportation.
  • Economic Impact: Reduce logistical expenses to help industry and boost Indian Railways’ earnings. DFCs helped Indian Railways increase its revenue by 2.94% in FY 2018–19 and FY 2022–23.
  • Decreased Freight and Commodity Prices: DFCs increase productivity, cut down on transportation expenses, and have the potential to slash commodity prices.

Also Read Topics & Concepts:

https://www.itln.in/railway/dedicated-freight-corridors-transforming-indias-logistics-backbone-1352140

Prelims Practice Questions

Q. Consider the following statements regarding Dedicated Freight Corridor

1. As there will be more freight trains using the dedicated freight corridor, carbon dioxide emissions are predicted to rise.
2. From Punjab to Bihar, the Eastern Dedicated Freight Corridor (EDFC) is completely functional.

Which of the above statements are incorrect?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Ans: a

Explanation

Over time, it is anticipated that the dedicated freight corridor will reduce carbon dioxide emissions. This is due to the fact that dedicated freight routes are made to transport goods trains more quickly and effectively. As a result, there are fewer delays and increased fuel efficiency on conventional passenger routes. Electric locomotives can also be used in designated corridors, which lessens the need for diesel and the pollution that come with it.

From Punjab to Bihar, the Eastern Dedicated Freight Corridor (EDFC) is completely functional.

Mains Model Questions

Q. Bring out the socio-economic effects of the introduction of railways in different countries of the world. (UPSC PYQ 2023)

  Introduction: Since their establishment in the early 19th century, railways have been instrumental in influencing the socioeconomic environments of many nations, with the UK leading the way in this regard. In addition to promoting domestic development, the rail system was used to carry out colonial policies, fundamentally changing the landscape in places like Africa and India.     Body:   Impacts on Society and the Economy in Developed Nations   Benefits:

Urbanization: The rise of famous stations like New York’s Grand Central encouraged urban growth and gave rise to suburbs in the USA, improving regional connectivity and making cities like London important centers of activity. Employment: Especially during the building of large-scale projects like the US Transcontinental Railroad, railways greatly increased employment opportunities by spawning new professions with positions ranging from station masters to engineers.Cultural Exchange: By linking Paris and Constantinople, the Orient Express acted as a vital cultural link, promoting the sharing of customs and ideas and deepening understanding between various societies.

Negative Effects:

Environmental Degradation: Historically, railways have presented environmental problems; the Channel Tunnel between the UK and France, for example, has drawn criticism for possible negative effects on marine ecosystems. Socioeconomic Disparities: Projects like the BART system in the San Francisco Bay Area have come under fire for escalating gentrification and driving up real estate costs in metropolitan areas.

Impacts on Society and the Economy in Developing Nations

Benefits:


Economic Growth: By boosting trade and commerce, railways in African countries have contributed to economic growth. The Kenya-Uganda railway is a prominent example, as it encourages commercial ventures and interregional trade. Social Mobility: In South Asian nations like India, where programs like Lifeline Express offered healthcare to isolated communities, railways had a significant positive social impact.Building Communities: By connecting far-flung regions of Russia, the Trans-Siberian railway promoted community integration and national cohesion.

Negative Effects:

Resource exploitation: The development of local industries was significantly hampered by rail networks, such as the British colonial railways in India, which made it simple to transfer raw materials to ports for sale. Displacement of Communities: When railways were built in India during British control, many communities were uprooted as a result of the enormous railway constructions.       Conclusion: The construction of railroads around the world has had both positive and negative effects, contributing to socioeconomic development but also posing significant difficulties. Creating pathways that guarantee safety and sustainable growth is crucial as we look to the future and consider innovations like the hyperloop.

 

Article: 4th November, 2024

Topic: The paradox of stagnant rural wages

Relevance: GS Paper: 3 – Economy

Source: Indian Express

Context

  • Rural incomes have essentially stagnated despite India’s remarkable GDP growth in recent years, posing a paradox that calls into question inclusive economic development.

India’s Rural Wages

  • In India, the economic health and well-being of the rural population—which makes up a sizable component of the labor force—have been closely correlated with rural wages.
  • The average daily salary rates for both agricultural and non-agricultural occupations have fluctuated throughout time, according to the Labour Bureau. The salary Rate Index, for example, shows variations in salary growth across various industries.

Consequences of Rural Wage Stagnation

  • Economic ramifications include decreased consumer spending, rising inequality and poverty, and urban migration, among other things.
  • Social Consequences: Effects on Health and Education; Gender Inequality; and Social Unrest like higher levels of crime, political instability, and social tensions.

Comparing Wage Stagnation and Economic Growth

  • In recent years, India’s GDP has grown at a strong rate, averaging 7.8%. For rural workers, this expansion hasn’t resulted in appreciable pay gains, though.
  • In actuality, real earnings have decreased or remained unchanged after accounting for inflation. This disparity draws attention to a crucial problem: the character of economic growth in general.

The Causes of Wage Stagnation

  • Comparing Capital-Intensive and Labor-Intensive Growth Capital-intensive industries, which provide fewer jobs than labor-intensive industries, have contributed significantly to India’s recent economic growth. Because of this change, there is less demand for labor in rural areas, which has kept wages low.
  • Inflation: Although nominal salaries have increased somewhat, inflation has exceeded these gains, reducing rural workers’ actual purchasing power.
  • For example, according to data from the Labour Bureau, real salary increase in rural areas was -0.4%, although nominal wage growth was 5.2%.
  • Labor Force Participation: Government programs such as Ujjwala and Har Ghar Jal have encouraged more rural women to enter the workforce, which has enlarged the labor pool.
    – Due to increased competition for the same jobs, wages have been under pressure to decline.
  • Agricultural Dependency: Despite general economic success, a sizable percentage of rural employment is remains in agriculture, a sector that has not witnessed proportionate pay increase.
    – In recent years, agricultural growth rates of 4.2% and 3.6% have not been enough to propel significant wage rises.

Actions to Promote Wage Growth in Rural Areas

  • Employment Diversification in Rural regions: Encouraging non-agricultural job options in rural regions might assist lessen reliance on agriculture and generate new revenue streams. Programs for skill development and incentives for rural industries can help achieve this.
    – One important piece of legislation designed to increase employment and raise wages in rural regions is the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Nonetheless, there has been discussion on MGNREGA’s efficacy.
  • Inflation Control: Nominal pay rises can be converted into actual wage gains with the support of effective inflation control policies.
    – It consists of monetary policies designed to lower inflationary pressures and stabilize prices.
  • Income Support Programs: By increasing income support initiatives like direct cash transfers, rural people can receive quick assistance and lessen the impact of wage stagnation.
  • Additional cash transfers provided by initiatives like Maharashtra’s Ladki Bahin Yojana can help partially compensate for stagnant salaries.
  • Labor Market changes: Rural employment can become more appealing and sustainable by enacting labor market changes that improve working conditions and job security.
    – It entails paying rural workers social security benefits and upholding minimum wage regulations.

Implications for Policy

  • Need for tailored measures: To combat wage stagnation, policymakers must create tailored measures.
    – It entails advancing agricultural productivity, encouraging rural industrialization, and putting social safety nets into place.
  • Emphasis on Inclusive Growth: It’s critical to make sure that economic expansion benefits every sphere of society. The goal of policy should be to give rural workers more fair access to financial, medical, and educational possibilities.
  • Strengthening Labor Rights: Rural workers’ negotiating power and ability to receive fair compensation can both be increased by strengthening their labor rights and protections.
    – It entails paying social security benefits and upholding minimum wage regulations.
  • Technology’s role: Precision farming, mobile apps and platforms like eNAM, the creation of new jobs and training in digital skills, the improvement of market access through e-commerce platforms like Amazon Saheli and Flipkart Samarth, blockchain for supply chain transparency, and other initiatives are all contributing to increased agricultural productivity.

Conclusion

  • A complex strategy that involves encouraging varied employment, managing inflation, increasing income support, and enacting labor market reforms is needed to address the conundrum of stagnating rural wages.
  • India can guarantee more equitable and balanced development by coordinating rural salaries with overall economic advancement.

Also Read Topics & Concepts:

https://www.investopedia.com/terms/s/stagnation.asp#:~:text=Understanding%20Stagnation,-Stagnation%20occurs%20within&text=Persistent%20unemployment%2C%20flat%20job%20growth,experience%20a%20time%20of%20stagnation.

Prelims Practice Questions

Q. With reference to the Indian economy, demand-pull inflation can be caused/increased by which of the following? (UPSC PYQ 2021)

1. Expansionary policies

2. Fiscal stimulus

3. Inflation-indexing of wages

4. Higher purchasing power

5. Rising interest rates

Select the correct answer using the code given below:

a. 1, 2 and 4 only 

b. 3, 4 and 5 only

c. 1, 2, 3 and 5 only 

d. 1, 2, 3, 4 and 5

Ans: a

Explanation

Economists refer to demand-pull inflation as “too many dollars chasing too few goods,” which is the rising pressure on pricing that occurs after a deficit in supply.
Expansionary policies: More money enters the market as the government spends more freely. It causes demand-pull inflation and raises the demand for the items.
Fiscal Stimulus: It also boosts market liquidity, which raises consumer demand for goods and drives demand-pull inflation.
Increased Purchasing Power: People feel more confident and spend more money when they make more money. More demand and fuels result from this. Inflation driven by demand
Demand-pull inflation is not increased or caused by inflation-indexing salaries and rising interest rates.

Mains Model Questions

Q. Examine the paradox of India’s static rural wages in spite of the country’s strong GDP growth. Analyze the causes of this stagnation and provide ways to boost wage growth in rural areas.

  Introduction: Although India’s GDP has grown rapidly in recent years, real incomes in rural areas have stagnated, which raises questions about how inclusive economic development is. This paradox highlights systemic problems in the economy, especially in labor markets in rural areas.     Body:   Rural wages stagnating in the face of robust GDP growth is a paradox.

Capital-intensive economic growth: The demand for labor in rural areas has decreased as a result of recent economic growth favoring capital-intensive industries like infrastructure. Limited growth in the agricultural sector: Compared to other industries, agriculture, which employs a significant percentage of the rural workers, has had slower growth.Informal employment prevalence: A sizable section of the workforce in rural areas works in informal employment, which offers no job security or opportunities for advancement. Regional disparities: Rural areas have lagged behind urban centers in economic progress. Problems with underemployment: Many workers in rural areas are underemployed, putting in fewer hours than they would want to, which results in stagnating pay.

Factors contributing to rural wage stagnation

Oversupply of labor: As the rural labor force grows, especially as the female labor force participation rate (LFPR) rises, wages are under pressure to decline. Inflationary pressures: Rural workers’ real wage gains have been undermined by rising inflation, particularly in necessary items. Restricted availability of credit: Rural business and income diversification are hindered by limited access to affordable finance, which also stifles wage growth. Poor infrastructure: Economic activity and wage growth are restricted in rural areas by inadequate infrastructure, such as roads and power.

Actions to boost wage growth in rural areas

Promotion of labor-intensive industries: Increasing job possibilities in rural regions can be achieved by promoting growth in labor-intensive industries including agro-processing, handicrafts, and textiles.Infrastructure development: Putting money into rural infrastructure, like roads, power, and internet access, can increase economic activity and raise wages. Access to reasonably priced credit: Increasing financial inclusion and offering reasonably priced credit can encourage job creation and entrepreneurship in rural areas. Programs for skill development: It is essential to implement focused skill development initiatives to improve rural workers’ employability.       Conclusion: A comprehensive strategy emphasizing labor-intensive sectors, skill development, and enhanced infrastructure is necessary to address the problem of stagnant rural wages. India can encourage equitable and sustainable development by making sure that pay growth in rural areas keeps pace with economic advancement.    

Article: 4th November, 2024

Topic: The BRICS Summit boost to India-Iran ties

Relevance: GS Paper: 2 – International Relations

Source: The Hindu

Context

  • India and Iran had a key chance to revive their bilateral relations, which had stagnated in recent years despite having long-standing historical and cultural links, at the recent BRICS Summit in Kazan, Russia.

The BRICS meeting

  • Iran looks to India for assistance in defusing the situation as tensions rise as a result of the Gaza conflict, taking advantage of India’s positive ties with both Israel and Iran.
  • Mutual understanding of one another’s contributions to regional stability and the possibility of a deeper collaboration in a number of areas were highlighted at this bilateral meeting.
  • Iran also acknowledged India’s expanding global influence and emphasized the crucial part it played in Iran’s admission into important multilateral organizations including the BRICS and the Shanghai Cooperation Organization (SCO) in 2023.

Important Domains of Collaboration Between Iran and India and Their Consequences

Regional Connectivity

  • INSTC and Chabahar Port: Chabahar Port is essential to India-Iran ties. A 10-year operating agreement between India and Iran was signed in May 2024, highlighting Chabahar’s significance for regional connectivity.
  • Strategic Importance: Chabahar, which is situated beyond the Strait of Hormuz, offers reliable access to the ports of Kandla and Mumbai in India, reducing the danger of trade disruptions brought on by possible Persian Gulf hostilities.
  • Improved Connectivity: India would be able to transport humanitarian relief to Afghanistan without going through Pakistan thanks to a projected road link from Zahedan to Zaranj in Afghanistan and the expedited 700-kilometer railway link between Chabahar and Zahedan.
  • Using Iran’s Strategic Coastline: Indian businesses can take advantage of the port facilities and shared logistics along Iran’s coastline, boosting India’s trade footprint in the region.

Security of Energy

  • Imports of Oil and Gas: With its enormous deposits of natural gas and crude oil, Iran is essential to India’s energy security. Iran’s petroleum production increased to 3.4 million barrels per day in May 2024, and in March 2024, its exports reached 1.61 million barrels per day.
  • India, Oman, and Iran Gas Pipeline: The pipeline proposal was first put forth in 1993 and has since attracted new attention. Two underwater pipelines between Iran and Oman are moving forward, and if political and logistical obstacles are removed, they may eventually reach India.
  • Taking Up Oil Imports: Prior to 2019, Iran provided almost 12% of India’s oil need. This collaboration might provide Iran with a crucial market while assisting India in meeting its energy needs with the possible lifting of sanctions.

Defense Cooperation

  • Military Cooperation: Iran has improved its military capabilities, including as armed drones and ballistic and hypersonic missiles. Russia is receiving drones from Iran for the conflict in Ukraine. India may think about working with Iran on this as it develops its drone program.
  • Intelligence sharing and counterterrorism: Both countries are interested in fighting terrorism, especially that which comes from organizations in Pakistan. Regional security could be improved by cooperative exercises and intelligence exchange.

Diplomatic Difficulties

  • Handling Controversial Statements:
  • Bilateral ties are occasionally strained by statements made by Iranian leaders, such as the Supreme Leader of Iran’s recent comparison of Indian Muslims to Palestinians in Gaza.
  • Maintaining their strategic partnership will require navigating these sensitivities.
  • Managing Western Sanctions:
  • Iran continues to have difficulties with Western sanctions, particularly in the areas of energy commerce and defense cooperation.
  • However, India establishes a precedent with its stance to the Russia-Ukraine crisis, demonstrating its strategic autonomy.
  • India should take a similar stance to Iran, putting its own interests ahead of outside influences.

Conclusion
With Iran solidifying its diplomatic gains and India expanding its involvement in West Asia, particularly in the wake of the recent BRICS Summit, the two countries have the potential to strengthen their strategic alliance.


Also Read Topics & Concepts:

https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2024)766243#:~:text=Under%20Russia’s%20presidency%2C%20BRICS%20(acronym,October%20in%20Kazan%20(Russia).

Prelims Practice Questions

Q. Consider the following statements regarding BRICS grouping

1. A significant amount of the global GDP and trade volume is accounted for by the BRICS nations.
2. BRICS is viewed as a geopolitical force that seeks to challenge current power structures, change international institutions, and represent developing countries’ interests on a global scale.
3. The BRICS member nations founded the New Development Bank (NDB) with the goal of financing space exploration initiatives.

Which of the above statements are correct?

  1. 1 only
  2. 2 only
  3. 1 and 2
  4. 1, 2, 3

Ans: c

Explanation

A significant amount of the global GDP and trade volume is accounted for by the BRICS nations.
BRICS is viewed as a geopolitical force that seeks to challenge current power structures, change international institutions, and represent developing countries’ interests on a global scale.

The BRICS Bank is another name for the New Development Bank (NDB). It was founded by the BRICS nations and serves as a substitute for more established lending organizations such as the World Bank and the International Monetary Fund by concentrating on funding sustainable development and infrastructure projects in emerging economies.

Mains Model Questions

Q. For India, the port of Chabahar is essential. Discuss about the measures India needs to take to preserve its strategic independence while avoiding US sanctions.

  Introduction: Chabahar Port, Iran’s only maritime entryway to the outside world, is tucked away on the Gulf of Oman in southeast Iran. India, Iran, and Afghanistan have a lot of potential at this vital seaport. By avoiding reliance on Pakistan’s land access, it provides India with an essential detour route for trade with Afghanistan and Central Asia. India has made significant investments in Chabahar’s capacity development in recent years, making it a possible fulcrum of the International North-South Transport Corridor, a massive commerce route that links India, Europe, and Central Asia.     Body:   Chabahar Port’s Importance to India   Access to Afghanistan and Central Asia: Bypassing Pakistan, Chabahar Port gives India direct access to Afghanistan and Central Asian nations. This is essential to India’s strategic outreach in the area, particularly in opposition to China’s Belt and Road Initiative and Pakistan’s influence.Reversing Chinese Influence: Chabahar acts as a buffer against China’s investment in the nearby Gwadar Port in Pakistan, which is only 72 kilometers away. India is concerned about the strategic ramifications of the China-Pakistan Economic Corridor (CPEC), of which this is a component. Trade Connectivity: The port serves as a gateway for trade between Afghanistan and India, as well as between Afghanistan and Central Asia. Compared to routes that go through Pakistan, it enables the efficient transit of commodities, cutting down on both the time and expense of transportation. Economic Opportunities: India can expand its economic relationships with Central Asian landlocked nations and create new markets for its goods and services by building Chabahar.Energy Security: India relies heavily on Iran for its energy needs. A consistent and dependable supply of energy resources, such as natural gas and oil, from Iran and the surrounding area can be ensured by Chabahar Port.

Avoiding US sanctions while preserving strategic independence

Exemptions and Waivers: In light of its role in Chabahar, India should keep requesting exemptions and waivers from US sanctions. In the past, this has been somewhat successful because the US has issued waivers acknowledging the port’s contribution to trade facilitation with Afghanistan.International Support: Assist other nations that have made investments in Afghanistan’s progress, such Japan and the European Union, in promoting Chabahar’s exemption from sanctions. Regional Connectivity: To emphasize the port’s significance in regional economic networks, fortify relations with Central Asian nations. By doing this, a coalition of supporters may be formed to jointly lobby the US.Alternative Trade channels: In order to lessen reliance on any one strategic asset, India should prioritize Chabahar while simultaneously creating and funding alternative trade channels and alliances.Economic Cooperation: To preserve economic links with Iran without breaking sanctions, concentrate on industries like medicines and agriculture that are not specifically targeted by US sanctions.Modernization of Chabahar: Keep funding the port’s expansion to make sure it satisfies global standards and can manage higher trade volumes, which will make it a more appealing and practical choice for regional trade.       Conclusion:   India hopes to guarantee its economic interests, increase its regional influence, and create a dependable and important commerce route by utilizing Chabahar Port. This is in line with India’s overarching goals of being a key factor in regional economic development and connectivity. India can manage the intricacies of US sanctions while utilizing the strategic advantages of Chabahar Port by striking a balance between diplomatic engagement, regional collaboration, economic diversification, and stringent compliance measures. India’s strategic autonomy and wider geopolitical and economic interests in the area would be upheld by this multipronged approach.    

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