8th September 2024
Topic: India-Brunei Relations
Relevance: GS Paper: 2 – International Relations
Source: DD News
Context
An important turning point in India-Brunei relations will be reached when Prime Minister Narendra Modi visits the country in September 2024 to celebrate 40 years of diplomatic ties.
About
- It was the Indian Prime Minister’s first bilateral trip to Brunei.
- As a sign of Brunei’s significance to India’s strategic and commercial interests in Southeast Asia, this visit is essential to the advancement of India’s Act East Policy and Indo-Pacific Vision.
- Both countries have a rich history of friendship and collaboration, which dates back to the year 1984 when diplomatic relations were established.
Principal Aspects of the Visit
- Memorandum of Understanding on Space Cooperation: the signing of a Memorandum of Understanding (MoU) regarding launch vehicle and satellite telemetry, tracking, and telecommand station operations. India’s aspirations in space are strengthened by this partnership, as Brunei provides vital infrastructure for ISRO.
- Economic Cooperation: The two leaders placed a strong emphasis on increasing trade in industries such as finance, agriculture, and technology.
- Talks also centered on sharing agricultural best practices and ensuring food security.
- Direct Flight Connection: To promote trade, tourism, and people-to-people exchanges, a new direct flight between Bandar Seri Begawan and Chennai was recently announced.
- Cooperation in Defense and Security: The leaders talked about strengthening defense relations by organizing combined naval drills and port visits.
- In the Indo-Pacific region, both nations emphasized the value of maritime cooperation and respect for international law.
- Regional Cooperation: They called for regional stability, denounced terrorism, and reiterated their commitment to the ASEAN-India Comprehensive Strategic Partnership.
Significance of India-Brunei Relations:
- In terms of maritime security and regional peace, Brunei is especially important to India’s Indo-Pacific strategy.
- Boosting Bilateral Relations: The visit marks a change to an “Enhanced Partnership,” with an emphasis on collaboration in space technology, defense, and cultural exchanges.
- Act East Policy: As part of its larger Act East Policy, Brunei plays a significant role in assisting India in strengthening its ties with Southeast Asia, especially through ASEAN.
Also Read Topics & Concepts:
https://www.mea.gov.in/bilateral-documents.htm?dtl/38254
Mains Model Questions
Q. Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (UPSC PYQ 2016)
Introduction:
In order to fortify India’s strategic and commercial connections with Southeast Asia, East Asia, and the Pacific, the Look East Policy (LEP) was introduced in 1991. The objective was to utilize India’s close proximity to these areas and capitalize on their thriving economies in order to expedite India’s own economic expansion.
Body:
India’s Look East Strategy in the International Post-Cold War Scenario:
Economic Dimension:
- ASEAN Integration: As a result of the Look East Policy, India was admitted to ASEAN as a full dialogue partner in 1995, which boosted economic cooperation.
- Trade: From $2.9 billion in 1993 to $82.5 billion in 2020, trade between India and ASEAN grew.
- Investment: In 2019, India invested $41.9 billion in the ASEAN, primarily in the manufacturing, telecommunications, and energy sectors.
- Liberalization: Increased inflows of foreign direct investment (FDI) were a result of policies enacted in the 1990s.
- Privatization: The efficiency and competitiveness of state-owned businesses were increased through privatization.
Strategic Aspect:
- Counterbalancing China: The Look East Policy sought to offset China’s sway over Southeast Asia.
- Maritime Cooperation: To uphold an Indo-Pacific rules-based order, India worked with ASEAN countries on maritime security projects.
- Regional Groupings: India participated in talks about regional security when it joined the East Asia Summit (EAS) in 2005.
Boosting India’s Standing:
- Security Cooperation: Through cooperative defense cooperation agreements and joint military drills, India strengthened security ties with ASEAN nations.
- Regional Power: India’s position as a regional power has been cemented by its active participation in ASEAN-led forums such as the ASEAN Regional Forum (ARF).
Infrastructure and Connectivity:
- The goal of the India-Myanmar-Thailand Trilateral Highway project was to increase trade and connectivity between India and Southeast Asia.
- The goal of the Kaladan Multi-Modal Transit Transport Project was to create maritime connections between Myanmar and northeastern India.
Conclusion:
In terms of its strategic and economic aspects, India’s Look East Policy has been a huge success. It has aided India in strengthening its strategic ties with important allies like the US and Japan as well as its economic integration with the Asia-Pacific area. India’s Look East Policy has allowed it to become a major player in the Asia-Pacific region in the post-Cold War international scene, contributing to the stability and prosperity of the area.
Topic: Vishvasya-Blockchain Technology Stack
Relevance: GS Paper: 3 – Science & Technology
Source: PIB
Context
The Vishvasya-Blockchain Technology Stack was introduced by the Ministry of Electronics and Information Technology (MeitY).
Blockchain Technology
- Blockchain is an immutable shared ledger used in business networks to track assets and record transactions.
- To guarantee transaction security, it digitally saves information electronically.
- Distributed Ledger Technology (DLT) is the term for it.
- It transforms and digitally stores anything valuable, including money.
- Historical connections: Although it was first presented as a research project in 1991, Bitcoin first used blockchain technology in 2009.
- A cryptocurrency called Bitcoin is based on block technology.
- Organization and Safety: is made up of linked data blocks.
- Every block is connected to every other block, creating a chain.
- The purpose of blocks is to be safe and resistant to tampering or hacking.
Application
- Banking and Finance: Financial Establishment Blockchain testing for securities, foreign exchange, trade finance, and cross-border settlement.
- India has a sizable population of underbanked people, so it can use blockchain to promote financial inclusion.
- Governance and Public Services: There is active research being done on how blockchain technology can improve accountability and transparency in government. Voting systems, identity verification, and land record management are some examples of applications.
- Healthcare: Blockchain technology can be applied to safely maintain patient records, guarantee data integrity, and make it easier for institutions to securely share medical records with one another.
- Transparent Elections: By offering tamper-proof and transparent voting records, blockchain technology can improve election procedures.
- Supply Chain Management: Blockchain makes it easier to track products from point of origin to point of destination.
Challenges
- Ignorance In India, blockchain technology is still in its infancy, despite growing interest.
- There are still misconceptions, like the idea that blockchain will completely replace current systems.
- Issues with Scalability: Scalability is still a major problem.
- Regulatory Uncertainty: For broad adoption, precise regulatory guidelines are necessary.
- Cybercrime: As cryptocurrencies become more widely used, scams and cybercrime are increasing.
Recent Actions
- Blockchain Technology Stack with Vishvasya: With a geographically dispersed infrastructure built to support different permissioned Blockchain based applications, it provides Blockchain-as-a-Service.
- The National Blockchain Framework: MeitY launched the National Blockchain Framework (NBF) with the goal of building trustworthy digital platforms. This framework will support research and application development while enabling the provision of cutting-edge, transparent, secure, and reliable digital services to the general public.
- MeitY also unveiled the National Blockchain Portal, Praamaanik, an inventive blockchain-enabled solution for authenticating the origin of mobile apps, and the NBFLite-Lightweight Blockchain Platform.
- Blockchain Startup and Academic Sandbox: A blockchain sandbox platform called NBFLite was created specifically for academic institutions and startups to facilitate quick application prototyping, research, and capacity building.
Conclusion and Way Forward
- Blockchain technology has the potential to revolutionize Indian governance by improving the accountability, efficiency, and transparency of public services.
- Ensuring effective transaction processing becomes increasingly important as blockchain networks expand.
- The goal of the stakeholders should be to establish India as a global leader in blockchain technology and spread the created solutions for widespread adoption, using blockchain to promote social progress, economic expansion, and digital empowerment.
Also Read Topics & Concepts:
Mains Model Questions
Q. While the advantages of virtual currencies may be up for debate, the technology that underpins them is undoubtedly promising. Discuss.
Introduction:
One kind of digital currency that is only available electronically and not physically is called virtual currency. Only approved software, computer or mobile applications, or specialized digital wallets are used for its storage and transactions, which take place over secure dedicated networks or the internet.
Body:
Virtual currency has a number of advantages, including:
- Cost-effectiveness: Virtual currencies have very cheap transaction fees and a single worldwide valuation. Additionally, they do away with third-party clearing houses, which reduces expenses and delays.
- Absence of obstacles: By eliminating obstacles and limitations to international trade, virtual currencies increase accessibility to trade, ultimately making it easier to accept payments in different currencies.
- Convenient: The ease of use of virtual currency is another advantage. Fund transfers between individuals and businesses are simple and generally secure.
The difficulties presented by virtual currency
- As most of a virtual currency’s value is derived from speculation, price volatility could result in potential losses for customers.
- In addition to price volatility, investors face significant risks due to the proliferation of unregulated cryptocurrency exchanges across the country.
- Because virtual currencies are untraceable and difficult to assess whether a transaction is taxable, their use can result in money laundering, tax evasion, financing of terrorism, and other issues.
The future of blockchain technology is undoubtedly promising:
- Smart contracts powered by blockchain technology, in which all data is recorded in an irreversible and traceable manner, would improve business operations, increase contract accuracy, credibility, and efficiency, and significantly lower the risk of fraud.
- Sensitive clinical data can be reliably and securely stored with the aid of blockchain technology.
- By lowering the possibility of claim fraud, blockchain technology can be extremely helpful in the administration of insurance claims.
- Technology will provide a time-stamped archive of student employment records and pass rates, making it simpler for employers to verify applicants.
Conclusion:
India, a rising powerhouse, needs real answers to serious issues like data breaches, corruption, tampering with financial ledgers, and middlemen intervention. For India to transform its main industries—agricultural, healthcare, financial services, and real estate—new technologies are also required. Blockchain appears to be the most practical way to do this.
Topic: Target for technical textiles to cross $10bn export by 2030
Relevance: GS Paper: 3 – Economy
Source: PIB
Context
- By 2030, the annual export of technical textiles is expected to surpass $10 billion, according to the Union Minister for Textiles.
What are technical textiles?
- Technical textiles are materials and products made of textiles that are primarily used for their functional and technical qualities rather than their decorative or artistic qualities.
- Both natural and synthetic fibers with improved functional qualities, like increased tenacity, superior insulation, increased thermal resistance, etc., are used in their manufacturing.
- Application: These products are used in a variety of non-traditional textile industries, including construction, healthcare, sports, aviation, defense, and agriculture.
- Each is utilized separately to fulfil a specific purpose, such as coated fabric for awnings and fire-retardant fabric for firefighters’ uniforms.
- Meaning: Technical textiles are economical, strong, lightweight, adaptable, user-friendly, environmentally friendly, and convenient in terms of logistics.
India’s Technical Textile Industry
- Roughly 13% of all textiles produced in India are technical textiles.
- Technical textiles are traded for about $300 billion worldwide, with India having a $25 billion domestic market and $2.6 billion in yearly exports.
- A strong value chain, cheap labor, power, and shifting consumer trends, in addition to the availability of raw materials like cotton, wood, jute, and silk, are some of the elements that have contributed to India’s growth in this industry.
State-sponsored Projects
- The National Technical Textiles Mission (NTTM) was established in 2020 with the goal of fostering industry collaboration, conducting research and development, and establishing centers of excellence in order to build a robust ecosystem for technical textiles.
- The government provides incentives to companies that increase production and achieve higher sales of technical textiles under the Production Linked Incentive (PLI) Scheme for textiles.
- Support for R&D and Innovation: By providing funds and other resources for research projects, the government fosters innovation in technical textiles.
- Technotex India is a premier event hosted by the Ministry of Textiles in association with the Federation of Indian Chambers of Commerce & Industry (FICCI). Stakeholders from all points along the global technical textile value chain participate in the exhibitions, conferences, and seminars.
Also Read Topics & Concepts:
Mains Model Questions
Q. India’s inclusive growth may benefit greatly from the contribution of the textile industry. Discuss about the importance of the “Technical Textiles Mission” in light of this.
Introduction:
India’s cultural legacy has been symbolized by the textile industry. With the handwoven sector at one end and the capital-intensive mill sector at the other, it represents a rich and varied spectrum of activities. An estimated 35 million people receive direct employment from the textile sector in India, which also contributes 4% of the country’s GDP and 35% of its gross export revenue. Because of its disorganized structure, it can play a major role in social welfare and employment creation.
Body:
The contribution of India’s textile industry to inclusive growth
- Employment creation: The textile sector employs the greatest number of people in the nation and is labor-intensive. It provides jobs in both urban and rural locations.
- Farmer welfare: Raw materials are needed by the textile industry and are primarily obtained locally. For example, the primary material used to make yarn and fabric is cotton.
- Greater wages: Unionized workers enjoy safe employment with pay rates that are much greater than those of the unorganized sector of the economy.
- Government revenue: It serves as a source of income and a way for the government to obtain foreign currency. Exports by the industry contribute significantly to the provision of foreign exchange resources.
Technical Textiles Mission: Importance
- Research, Innovation, and Development: The goal is to advance application-based research in the fields of geo-textiles, agro-textiles, medical textiles, and other related fields as well as fundamental research at the fiber level.
- Promotion and Market Development: Compared to developed nations where the penetration rate of technical textiles is between 30 and 70%, India has a low level of penetration, ranging from 5 to 10%. Through market development, market promotion, international technical collaborations, investment promotions, and “Made in India” initiatives, the mission seeks to achieve an average growth rate of 15-20% per year.
- Export Promotion: Its goal is to promote technical textiles for export. To ensure efficient coordination and promotion of the sector’s activities, an Export Promotion Council for Technical Textiles will be established.
- Education, Training, and Skill Development: The Mission will support higher-level technical education. A sufficient pool of highly skilled labor resources will be established, and skill development will be encouraged.
- Growth that is inclusive: The mission will concentrate on the use of technical textiles in a number of flagship initiatives, including those in key industries. Technical textiles will improve agricultural productivity and farmers’ incomes by being used in dairy, agriculture, and government initiatives like Jal Jeevan Mission, Swachh Bharat Mission, and Ayushman Bharat.
- Waste management: It will also create equipment that is appropriate for disposing of used technical textiles in an environmentally responsible manner, with a focus on the secure disposal of waste related to hygiene and medicine.
Conclusion:
The textile industry holds a unique position in the national economy due to its substantial contribution to industrial production and substantial workforce. Therefore, the fulfilment of both the most basic human needs and the economic growth of a nation depend on the consistent and balanced expansion of this industry. The mission of technical textiles is crucial in this regard.
Topic: 1st ever India Mediterranean Business Conclave 2024
Relevance: GS Paper: 2 – International Relations
Source: News on AIR
Context
The India-Middle East-European Economic Corridor (IMEC) has the potential to improve India’s maritime security and expedite the flow of goods between Europe and Asia, according to the Union Minister of Commerce & Industry.
India-Middle East-Europe Economic Corridor (IMEC)
- Participants: The India-Middle East-Europe Economic Corridor was established through the signing of a Memorandum of Understanding (MoU) by the United States, the United Arab Emirates, Saudi Arabia, France, Germany, Italy, and the European Union during the Delhi G20 Summit.
- Goal: Through improved connectivity and economic integration between Asia, West Asia, the Middle East, and Europe, the corridor will support and spur economic development.
Components
- The two distinct corridors that make up the India-Middle East-Europe Economic Corridor are the Northern corridor, which connects Europe to West Asia/Middle East, and the East corridor, which connects India to West Asia/Middle East.
- The project would entail the construction of a railway line that would cross the Arabian Peninsula via Saudi Arabia and the United Arab Emirates, as well as the development of shipping connections to Europe and India at either end of the corridor.
- Energy could be transported via pipelines and data could be transported via an optical fiber link if the corridor is further developed.
The following ports are a part of IMEC
- India: Jawaharlal Nehru Port Trust (Navi Mumbai), Kandla (Gujarat), and Mundra (Gujarat).
- Europe: Marseille, France; Messina, Southern Italy; and Piraeus, Greece.
- Middle East: Saudi Arabia has ports at Dammam and Ras Al Khair, and the United Arab Emirates has ports at Fujairah, Jebel Ali, and Abu Dhabi.
- Israel: Port of Haifa.
- Railway Line: The railway line will travel through Saudi Arabia (Ghuwaifat and Haradh) and Jordan to connect the ports of Fujairah, the United Arab Emirates, and Haifa, Israel.
India’s maritime security
- Important maritime routes are connected by a strong and secure trade corridor made possible by the IMEC. India’s participation will guarantee the protection of its vital maritime chokepoints, such as the Arabian Sea and the Strait of Hormuz. It will also give India a strategic role in patrolling and securing these areas.
- Enhanced intelligence sharing and cooperative maritime exercises will be made possible by the cooperation of the countries along the corridor.
- In unstable areas like the Red Sea or the Gulf of Aden, it will be especially helpful to India in keeping an eye out for maritime threats like terrorism, human trafficking, and piracy.
- India has the chance to increase its naval presence in important ports in the Middle East and Eastern Mediterranean as IMEC enhances connectivity.
- By preventing Chinese investments from taking control of the strategically important Indian Ocean region, IMEC will help India maintain its maritime dominance and lessen external threats.
Additional Prospects for India
- Getting around Pakistan: Pakistan’s veto over India’s land connection to the West is overridden by IMEC. India has been looking for different transregional connectivity projects with Pakistan since the 1990s.
- Collaboration between India and the US in the Middle East: This project has dispelled the myth that cooperation between the US and India is limited to the Indo-Pacific region.
Challenge before IMEC
- One of the main components of the multi-nation initiative, the normalization of Arab-Israeli relations, has been halted by the Israel-Palestine conflict.
- The Strait of Hormuz is vulnerable. Because Iran controls and is close to the Strait of Hormuz, there is always a high risk of disruptions to the entire trade of the IMEC architecture.
- Other partners are hesitant to contribute to the project because of the security issues in the area.
Way Ahead
- A careful balance between taking into account the geopolitical interests of the participating countries and resolving any potential political sensitivities is required to manage the geopolitical concerns.
- Additionally, since the project goes through some unstable parts of the world, it is necessary to keep up the necessary security apparatus.
Also Read Topics & Concepts:
Mains Model Questions
Q. Discuss about the India-Middle East-Europe Economic Corridor’s (IMEC) strategic importance in relation to India’s foreign policy and economic goals. In terms of regional influence and connectivity, how does it stack up against China’s Belt and Road Initiative (BRI)?
Introduction:
An innovative infrastructure project called the India-Middle East-Europe Economic Corridor (IMEC) aims to improve connectivity and economic integration between Asia, the Arabian Gulf, and Europe. IMEC, which will be unveiled at the G20 Summit in 2023, represents a significant change in global trade routes and will have a significant impact on India’s foreign policy and economic objectives.
Body:
Strategic Importance for India’s International Relations
- Strategic Advantage: By strengthening India’s clout in the Middle East and Europe, IMEC acts as a counterweight to China’s Belt and Road Initiative (BRI).
- Strengthening Alliances: IMEC works to fortify India’s strategic alliances with the US, UAE, Saudi Arabia, and European countries.
- Security and Stability: By encouraging economic interdependence, IMEC is expected to improve regional stability.
- Peace and stability in the region can be fostered by reducing political tensions in the Arabian Peninsula through improved connectivity and economic ties.
- Diversified Energy Routes: By diversifying India’s energy import routes, the corridor, which includes plans for energy pipelines, will improve the country’s energy security.
Financial Interests
- Trade enhancement: Makes trade between Europe, the Middle East, and India easier and faster.
boosts India’s export potential for textiles, pharmaceuticals, and IT services by cutting down on transit times and costs. - Investment Opportunities: Draws large amounts of foreign capital to India’s infrastructure initiatives.
generates employment opportunities and economic growth through investments in the public and private sectors. - Technological Advancements: Encourages digital connectivity and high-speed data cables.
backs India’s goal of developing a digital economy. - Increased infrastructure and connectivity between Europe, the Middle East, and India encourage travel.
facilitates travel, which is beneficial for India’s hospitality and service industries. - Efficiency of the supply chain and logistics: increases cost-effectiveness and worldwide competitiveness by streamlining supply chain and logistics processes.
Comparing the Belt and Road Initiative (BRI) of China
- Strategic Goals: Although improving connectivity is the common goal of both the BRI and the IMEC, the BRI has drawn criticism for imposing debt dependence and Chinese influence on member nations, while the IMEC is viewed as a more transparent and cooperative effort involving a wider range of stakeholders.
- Regional Influence: For nations leery of China’s geopolitical intentions, IMEC offers a strong substitute for BRI.
- Economic Integration: While both programs aim to unite local economies, IMEC places a stronger emphasis on inclusive growth and sustainability, conforming to international norms for environmental protection and infrastructure development.
- Political Stability: By leveraging partnerships to ease tensions in the region, IMEC seeks to promote political stability through economic integration and connectivity. However, BRI has come under fire for feeding dependency and escalating geopolitical rivalries.
Conclusion:
With its strategic advantages and potential to spur economic growth, the India-Middle East-Europe Economic Corridor presents significant opportunities for India’s foreign policy and economic interests. By offering a competitive substitute for China’s Belt and Road Initiative, IMEC can increase regional connectivity and influence while promoting a more multipolar and balanced international system. In the future, achieving effective implementation and cooperating with partner countries will be essential to achieving the full potential of IMEC.