INDIA-RUSSIA RELATIONS

BACKGROUND
● Bilateral ties with Russia are a key pillar of India’s foreign policy. India sees Russia as a long
standing and time tested friend that has played a significant role in India’s economic development
and security.
● The Russian Revolution inspired Indian freedom fighters. Nehru ji himself was impressed with
socialist ideology and many of his economic ideas that were adopted in India after its
independence were shaped during his visit to Soviet Union in 1927.
● On April 3, 1947- notably even before India’s independence- India and the Soviet Union
established diplomatic relations.
● After Independence, when India was aiming to achieve self-sufficiency by investing in heavy
industry, the Soviet Union invested in energy, mining and steel plants.
○ Bhilai and Bokaro steel plants and IIT- Bombay were the results of active cooperation and
support of the Soviet Union.
● Treaty of Peace and Friendship was signed between two countries in 1971 during India’s support
to Bangladesh’s liberation from Pakistan.
● After the dissolution of the Soviet Union, India and Russia entered into a new Treaty of Friendship
and Cooperation in January in 1993, and a bilateral Military-Technical Cooperation agreement in
1994.
● Since the signing of the “Declaration on the India-Russia Strategic Partnership” in October 2000
(during the visit of Russian President Vladimir Putin to India), India-Russia ties have acquired a
qualitatively new character with enhanced levels of cooperation in almost all areas of the bilateral
relationship including political, security, trade and economy, defence, science and technology and
culture.
● During the visit of the Russian President to India in December 2010, the Strategic Partnership was
elevated to the level of a “Special and Privileged Strategic Partnership.”.

Key Events in India-Russia Relations

Year Event
1947 Diplomatic relations established even before India’s independence
1965 The Soviet Union served successfully as a peace broker between India and Pakistan after
the Indo-Pak war, which led to the signing of the Tashkent agreement between the two
countries.
1971 Treaty of Peace and Friendship signed between two countries
1993 A new Treaty of Friendship and Cooperation was signed after the dissolution of USSR in
1991
1994 Both countries signed a bilateral Military-Technical Cooperation Agreement
2000 India and Russia became strategic partners and level of cooperation increased
2009 A long term pact for civil nuclear cooperation was signed
2010 Strategic partnership was elevated to the level of “Special and Privileged Strategic
Partnership”

POLITICAL RELATIONS
● The Annual Summit meeting between the Prime Minister of India and the President of Russia is
the highest institutionalised dialogue mechanism under the Strategic Partnership between India

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 and the Russian Federation. So far, 21 such summits have taken place alternatively in India and
Russia. Last annual summit was held in December, 2021 in New Delhi.
● Also, an Informal summit between the Indian PM and Russian President was held in Sochi in
Russia in 2018. The summit facilitated both the leaders to deepen their friendship and to exchange
their views on regional and global cooperation.
● Also, there are regular high-level interactions between the two countries through several
institutionalised dialogue mechanisms to enhance cooperation in all areas of bilateral relationship.
○ Inter-Governmental Commission on Military and Military-Technical Cooperation co-chaired
by Indian and Russian Defence Ministers.
○ Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural
Cooperation co-chaired by External Affairs Minister and Russia’s deputy Prime Minister.
○ 2+2 dialogue of Foreign and Defence Ministers of India and Russia (Inaugural session held in
2021 in New Delhi). This dialogue holds importance for exchanging views on regional and
global political-security developments.
● The leaders of the two countries also meet on the sidelines of meetings of various multilateral
forums such as United Nations, G20, Shanghai Cooperation Organisation (SCO), Russia-India-China
(RIC), BRICS.

GLOBAL AND REGIONAL COOPERATION

● Russia supported India’s membership in Shanghai Cooperation Organisation and also supports
India’s membership in Nuclear Suppliers Group (NSG) and bid for permanent seat in United
Nations Security Council (UNSC).
● Russia, being a permanent member of the UNSC, supports its reforms to make it more
representative, effective and efficient in dealing with the issues of International peace and
security.
● Both the countries cooperate on the platforms like SCO, RIC and BRICS.
● Both countries share similar views on
○ Fighting terrorism without double standards;
○ A more representative multi-polar world based on International law;
○ Resolving threats to International peace and security
● Both countries have collaborated in setting up Rooppur Nuclear Power Plant in Bangladesh and
are exploring similar cooperation in third countries especially in South East Asia, Central Asia and
Africa.
● Both Sides intend to strengthen cooperation within the UN Committee on the Peaceful Uses of
Outer Space (UN COPUOS), including the issues of the long-term sustainability of outer space
activities.
● Both countries are committed to cooperate on global challenges such as cyber security,
Prevention of proliferation of Weapons of Mass Destruction (WMD) including Chemical and
Biological Weapons, Prevention of arms race and weaponization of outer space.
● India wants Russia to be more involved in the Indo-Pacific as a stable Indo-Pacific is important
for the proposed maritime route from Vladivostok to Chennai.
● Both the countries support for a peaceful, stable and secure Afghanistan while emphasising the
respect for sovereignty, unity and territorial integrity and non-interference in its internal affairs.
Both nations are also committed to provide immediate humanitarian assistance to the Afghan
people.

ECONOMIC RELATIONS

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● Both governments have established India-Russia Strategic Economic Dialogue (IRSED) under
which discussions are held in 6 key areas- Transport, Agriculture, Digital Transformation, SMEs,
Trade and Banking and Tourism.
● As per the estimates of the Department of Commerce, Bilateral trade in goods between two
countries in 2021-22 was worth $13.2 Bn (Imports- $9.86 Bn, Exports- $3.26 Bn)..
● Bilateral trade in services has remained stable during the last 5 years with trade balance in
Russia’s favour. It amounted to $1.021 Bn for the year 2021.
● A Green corridor was launched during the 19th Annual summit of both countries in 2018 to
simplify custom operations between India and Russia.
● The major bilateral investments by Russia in India are in the oil and gas, petrochemicals, banking,
railways and steel sectors, while Indian investments in Russia are mainly in oil and gas and
pharmaceuticals sectors.
● Both the countries have set targets of increasing
○ Bilateral investments to $50 Bn by 2025 and;
○ Bilateral trade to $30 Bn by 2025.
● Negotiations for signing of a Free Trade Agreement between India and Eurasian Economic Union
are expected to commence soon as several rounds of talks between the officials have been
concluded.
○ Eurasian Economic Union is an economic union of northern Eurasia states that was
established in 2014.
○ Member countries of the union include- Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan
with a combined GDP of approximately $5 trillion.
○ It is expected that it will double the bilateral trade between India and Russia once it is finalised
and comes into force.
● Some of the key sectors for collaboration between two countries are- fertilisers, steel,
pharmaceuticals and diamonds.

ENERGY COOPERATION
● During the 20th annual bilateral summit, both countries finalised a Roadmap for Cooperation in
hydrocarbons for 2019-24 to further deepen the bilateral cooperation in the Energy sector.

Oil and Gas Cooperation

● India has increased its crude oil imports from Russia in the last quarter of 2022 due to which Russia
replaced Iraq as India’s largest crude oil supplier. (Oct-Dec 2022).

The main reason for the increase in oil imports is due to the discounted price offered by Russia
which is due to the price cap imposed by Western countries on Russian oil.

● An MoU has been signed between two countries for reliable long term supplies of coal to India
for steel production.
● Russia is India’s “largest” oil and gas investment destination for the exploration and production
of hydrocarbons. India has invested billions of dollars in the Russian oil and gas sector.
○ Indian companies bought a 100 percent stake in Russia’s Imperial Energy Corporation, along
with a 26 per cent stake in the Vankorneft oil field in Northern Russia.
● Russian company Rosneft acquired Indian company Essar oil in 2017.

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● Also, Russia has been a long time energy partner for India. ONGC Videsh Ltd. made a $1.7 Bn
investment in 2001 for a 20% stake in Sakhalin-1 oil field in the Russia Far East, with production
starting in 2006.
○ Before the Ukraine crisis, Sakhalin-1 was producing 220,000 barrels of oil per day, with ONGC
selling its share of oil mostly in the International market.
● In September 2019, India and Russia launched a Vladivostok-Chennai energy corridor to boost
energy cooperation between two countries.
● India also received 1st cargo of Russian LNG (Liquified Natural Gas) in 2018 and both countries are
working together to enhance LNG imports from Russia.
● Two sides have agreed for the expansion of cooperation in the gas sector and have created the
Gas Task Force to identify mutually beneficial areas including the development of investment in
gas infrastructure and distribution projects, use of natural gas in transport and emerging fuels
including hydrogen.

Nuclear Energy Cooperation

● Russia is an important partner for India in the area of peaceful use of Nuclear energy. It recognizes
India as a country with advanced nuclear technology with an impeccable nonproliferation record.
● Nuclear cooperation between India and Russia can be traced back to the 1960s. During that
decade, Moscow extended scientific and technical nuclear assistance to India.
● Even after the 1974 nuclear tests by India, the Soviet Union continued to supply fuel which was
crucial for the survival of India’s nuclear programme during the country’s global nuclear
cooperation.
● Despite the United States normalising India’s civilian nuclear program, Russia has been the biggest
benefactor of the market for foreign nuclear suppliers in India.
● In 2009, India and Russia sealed a breakthrough long-term pact for expanding civil nuclear
cooperation that is free from any restrictions on India and guarantees it against any curbs in the
future.
● In December 2014, Department of Atomic Energy (DAE) and Russia’s Rosatom signed the Strategic
Vision for strengthening cooperation in peaceful uses of atomic energy between India and
Russia.
● Presently, Kudankulam Nuclear Power Plant (KKNPP) is a flagship project between India and
Russia in this sphere. KNPP Units 1 & 2 have already become operational and construction of Units
3 & 4 and 5 & 6 is going on. KKNPP provides power to TamilNadu, Kerala and Puducherry.
● Both countries are also holding technical discussions on the 1200 VVER designed by Russia, joint
manufacturing of equipment and localisation of components. (VVER is a series of Pressurised
water reactors).

TRANSPORT AND CONNECTIVITY

Transport
● Russian companies are increasingly participating in the modernization of the railway sector in
India. They bring capital, technology and equipment to India.
○ They are participating in signals and telematic systems, high-speed rail projects, electrification
of railways while abiding by India’s Make in India and Atma Nirbhar Bharat programmes.
● Electronic Toll Collection Technology based on satellite navigation technology is implemented by
India-Russia joint venture Bharat Telematics Systems Pvt Ltd.

Connectivity

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● Chennai-Vladivostok Maritime corridor
○ During the India-Russia Annual summit in 2019, the corridor was proposed to enhance trade
ties and import oil and gas from Russia.
○ The proposed corridor is expected to take 24 days from Chennai port to Vladivostok
comprising 5,647 nautical miles. It is expected to cover the Sea of Japan, East and South China
Sea through Malacca strait to reach Bay of Bengal.
○ Presently, European route from Mumbai port to St. Petersburg through the Red Sea,
Mediterranean Sea and Baltic Sea takes around 40 days to cover the 8,675 nautical miles.

● International North-South Transport Corridor

○ India initiated this project in 2000 along with Russia and Iran.
○ It is a multi-modal (rail,road and ship) transnational transport network that facilitates cargo
transport at lesser cost and time and enhances India’s connectivity to Eurasia including Russia.

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DEFENCE AND SECURITY COOPERATION
● It is the strongest pillar of India-Russian relationship and has become a bedrock of mutual trust.
● Defence diplomacy began between India and Russia after 1962 when India became one of the first
countries to get Soviet Technology transfer and permission to locally co-produce the MiG-21 jet
fighter.
● Today, Russia is India’s largest defence partner with over two-third of the defence equipment is
of Russian origin.
● The two countries also hold exchanges and training exercises between their armed forces
annually. A joint tri-services exercise INDRA is conducted between the two countries.
● An Indian Army contingent also participated in Russia's military exercise-Vostok in 2022 despite
the concerns raised by the USA.

Defence Hardware cooperation

Indian Navy
● Around 40% of the Indian Navy’s equipment are of Russian-origin.
● Submarines
○ INS Kalvari- India’s first submarine was brought from the USSR and inducted into service in
1967.
○ Out of 16 conventional diesel-electric submarines, 8 are kilo-class of Russian origin.
● Aircraft carrier
○ Before India’s indigenous aircraft carrier, A Soviet made vessel- INS Vikramaditya was the only
aircraft carrier possessed by the Indian Navy.

Indian Army
● About 90% of the Indian Army’s equipment comes from Russia.
● Anti Tank Guided Missiles and Air defence systems of the army are of Russian origin. For example-
S-400 Long range Air defence system.
● Regarding small arms, AK-47 is the most common rifle seen in the hands of an Indian soldier. Also,
Russia and India have signed a MoU in 2021 to jointly produce over 6 lakh AK-203 Assault rifles
in India.

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Indian Air Force
● Around 70% of the equipment of the IAF are of Russian origin.
● It includes fighter jets such as Sukhoi Su-30 and MIG-29.
● It also includes helicopters like Mi-17 utility helicopters, Mi-35 attack helicopters, Mi-26 heavy lift
helicopters.

Change in the nature of defence partnership

● India-Russia military technical cooperation has evolved from a simple buyer - seller framework to
one involving joint research, development and production of advanced defence technologies
and systems.
● Russia is committed to become a partner in the ‘Make in India’ programme for production of
Defence hardware in India.
● Brahmos is a supersonic cruise missile jointly developed by both the countries.
● Also, joint production of SU-30 aircrafts, T-90 tanks, AK-203 rifles is taking place in India and a
joint venture has been formed to manufacture Ka-226T helicopters in India.

Significance of India-Russia Defence Partnership

● No threat of sanctions from Russia
○ Russia has never imposed any sanctions on India. Even when India conducted nuclear tests in
1974 and then 1998, Russia did not impose any sanctions.
○ Similarly, the USSR agreed to ship heavy water for India’s nuclear reactors when the US and
Canada suspended their shipments for the Tarapur plant in reaction to the 1974 test.
● Financial advantage
○ Historically, the USSR did not often ask India for immediate payment after weapon delivery,
nor did it request it in any hard currency.
○ It supplied India with $35 Bn in equipment between 1960-90 without immediate payment and
that too be paid in Indian Rupees at concessionary interest.
● Exclusive access to most sophisticated Russian technology
○ Since the Cold War, Russia has been supplying India with high-tech material it denies to other
countries. For example, Su-35 fighter jets and S-400 air defence systems.
● Technical assistance, transfer of technology and co-development
○ Russia has helped India to build its factories to assemble licensed MiG-21 and MiG-23/27
fighters as well as to repair T-72 tanks.
○ Russia has been more open than the west to the transfer of technologies in the framework of
joint ventures.
○ Most successful example is the joint development of Brahmos Missile.
○ Russia has also assisted India in development of its first nuclear-armed submarine INS Arihant.

Reducing Reliance on Russia for defence imports

● India needs to achieve self-sufficiency in defence production for its national sovereignty as well
as to reduce the import bill on the hardware purchases from the other countries.
○ According to the SIPRI report, 2021- India was the world's largest importer of major arms in
2017-21 and accounted for 11% of total global arms imports in the period.
○ Hence, India is focussing on developing the indigenous production of defence hardware. As a
result, Arms imports have also decreased by 33% in 2016-20 as compared to 2010-15 period.
(SIPRI report).
● India is also diversifying its sources of military equipments due to following reasons:

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 ○ Quality of Russian material is sometimes unsatisfactory. For example, A Defence Ministry
report in 2012 highlighted that nearly half of the 872 MIGs procured from the Soviet
Union/Russia had crashed.
○ India is increasing its convergence with the US and other western countries in the framework
of Indo-Pacific. Hence, India pledged in 2019 to purchase more US weapons systems.
● As per SIPRI report (2017-21), Top 3 Largest arms suppliers to India were- Russia (47%), France
(27%) and USA (12%) which together accounted for over 85% of the arms imports during 2017-
21.

SPACE COOPERATION
● India’s first satellite ‘Aryabhatta’ was launched on the Soviet launch vehicle ‘Soyuz’ in 1975.
Since then, the countries have maintained strong cooperation in the area of exploration and the
use of outer space for peaceful purposes.
● In June 2015, the space agencies signed an MoU on expansion of cooperation in the field of the
exploration and use of outer space for peaceful purposes.
● In 2016, ISRO and Roscosmos signed an MoU to establish ground measurement stations for
GLONASS and NaVIC in Russia.
● Russian State space agency “Roscosmos” and ISRO are collaborating on the human spaceflight
programmes and four Indian astronauts are being trained by Russia for India’s first human
spaceflight mission “Gaganyaan”.
● During the 21st Annual summit in 2021, Both the countries signed an agreement for joint building
and operation of launch vehicles and ground-based space infrastructure.

SCIENCE AND TECHNOLOGY COOPERATION

● An India-Russia Technology Assessment and Accelerated Commercialisation Programme is being
implemented to provide opportunities to start ups and SMEs of two countries to address societal
challenges through innovative technologies.
● Youth exchanges take place between two countries to engage school students on both sides to
provide technological solutions for societal problems.
● Both countries have established a Russia-India network of Universities for cooperation in
technical higher education universities.

EDUCATION, CULTURE AND TOURISM COOPERATION

● About 20 Russian Institutions, including leading universities and schools, regularly teach Hindi to
1500 Russian students.
● Apart from Hindi, languages such as Tamil, Marathi, Gujarati, Bengali, Urdu, Sanskrit and Pali are
taught in Russian Institutions.
● There is general interest among Russian people in Indian dance, music, yoga and ayurveda.
● Both the countries have set up Russia-India network of universities to promote educational
linkages between universities and educational institutions.
● Both countries also implement a Bilateral Cultural Exchange Programme which plays a crucial role
in enhancing people to people contact.
● Both countries have introduced e-VISA facility to simplify the Visa formalities to strengthen
tourism and people-to-people contacts.
● The size of the Indian Community in the Russian Federation is estimated at 14,000. In addition,
there are about 1,500 Afghan nationals of Indian origin in Russia.
● There are approximately 4,500 Indian students currently enrolled in medical and technical
institutions in the Russian Federation. About 90% of the students are pursuing medical studies.

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COOPERATION DURING COVID-19
● India supplied critical medicines, including hydroxychloroquine, paracetamol and certain
antibiotics during the first phase of the pandemic in Russia.
● Russia provided ventilators, oxygen concentrators and other critical equipment during India’s
second phase of the pandemic.
● Both sides gave early mutual recognition to covid vaccination certificates issued by the other
country to facilitate movement of persons between the two countries
● Both countries established an Air-Bubble arrangement to serve the interim travel needs of citizens
of both countries.

CHALLENGES IN INDIA-RUSSIA RELATIONS

● Under-utilised trade relations
○ India and Russia have not realised the full potential of the trade opportunities due to poor
connectivity, logistics issues, slow progress of INSTC corridor and trade barriers which have
resulted in higher costs.
○ There is no direct pipeline to transport oil and gas from Russia to India.
● Declining Defence dependency on Russia
○ India is increasing defence purchases from the USA and exploring other sources to reduce
dependency on Russia.
○ Imports from Russia fell down to 47% in 2017-21 from 70% in 2010-14.
○ India faces issues in supply and servicing of defence supplies from Russia.
● Increasing closeness in Indo-US ties
○ India’s relations with the USA have enhanced significantly in the last 5 years with designation
of Major Defense Partner in 2016 and enhanced cooperation through Quad initiative.
○ India feels pressure from the US to cut its relations with Russia, especially after the Ukraine-
Russia war.
○ It is a challenge for India to balance relations with both the US and Russia.
● Growing Russia-China ties
○ International sanctions have been imposed by US and European countries in the last few years
due to Annexation of Crimea in 2014 and Russia’s actions in Syria, due to which the Russian
economy has been hit badly, which is a reason for growing China and Russia relations.
○ In February 2022, Russia signed a 30-year contract to supply gas to China.
○ Russian officials have repeatedly criticised the idea of the Indo-Pacific and Quad, arguing
that it is meant to contain China.
○ China-Russia Military and Economic partnership is strengthening with time which is a cause
of concern for India.
● Growing Russia-Pakistan Defence Partnership
○ Both the countries have established a Joint Military Consultative Committee in 2018 which is
the top bilateral forum on defence cooperation.
○ In 2021, the Russian Foreign Minister visited Pakistan making it the first ever visit to Pakistan
by a Russian minister.
○ Russia is now Pakistan’s 2nd largest arms supplier.
○ Russia has also started an annual military exercise with Pakistan.

EASTERN ECONOMIC FORUM

● It is a platform for entrepreneurs to expand their business in Russia’s Far East region.
● It was established in 2015 by Russia to encourage foreign investments in Russia’s Far East region.

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● Mainly investments have come from Asian countries like China, Japan, South Korea and India in
the sectors like infrastructure, agriculture, mining, construction and transportation.
● China is the biggest investor in the region comprising 90% of total investments.
● Russia wants to develop the region with the aim of connecting Russia to the Asian trading routes.

About Russia’s Far East region

● It comprises around one-third of Russia's territory and is rich in mineral resources such as oil,
natural gas, fish, diamonds, timber, rare earth minerals etc.
● The region is about twice the size of India with a small population which is sparsely located.
Hence, the region has a shortage of manpower to harness the resources.
● It is geographically placed at a strategic location, acting as a gateway to Asia.

India and Russia’s Far East Region

● Indian PM Modi was invited as the chief guest of Eastern Economic Forum in 2019 and PM
announced the extension of the $1 Bn Line of Credit (LoC) to develop infrastructure in the region.
● The Far East potentially acts as a conduit for connectivity and to expand economic scope in the
Indo-Pacific region. Also, Resource-rich Far East region can fulfil India’s energy needs.
● A delegation of four chief ministers led by the Union Minister of Commerce and Industry visited
Vladivostok in 2019 for the first time to explore the opportunities and potentials of business to
business (B2B) cooperation in the FAR.
● The key sectors that were seen as potential areas of cooperation were minerals and rare earth,
energy, forestry and timber, healthcare, agriculture and food processing, ceramics, tourism and
infrastructure.
● Some of the Indian businesses have been set up in the region, For example,
○ Keshrimal Ghisilal Kothari Group (KGK), a leading gems and jewellery industry, has set up a
high-tech diamond cutting and polishing factory in Vladivostok.
○ Business representatives of Gujarat and Republic of Sakha (Russia) have launched agreements
in the Pharma and Diamond industry.
● Chennai-Vladivostok Maritime corridor will help in connecting India with Russia’s far east region.

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INDIA’S STAND ON UKRAINE-RUSSIA WAR
● India has abstained on all votes in the UN General Assembly, Security Council and Human Rights
Council that criticise Russia’s actions in Ukraine including the bombing of civilians and the
annexation of occupied territories. India has not criticised the actions of Russia publicly or on
any Multilateral fora.
● Also, The Indian Government has defied western sanctions on oil and defence trade and Russia
has emerged as the largest oil supplier to India in the last quarter of 2022. This Indian stand is in
line with its national interest.
● India chose to abstain from voting against Russia for conducting referendums and annexing
Donetsk, Luhansk, Zaporizhzhia and Kherson.
● However, Indian PM Modi has also commented that “Now is not the time for war” and India’s
External Affairs Minister has remarked to observe adherence to UN charter and importance of
protecting territorial sovereignty.
● India also called for the “immediate cessation of violence and hostilities” and regretted that “the
path of diplomacy was given up” and urged the concerned states to return to it.
● India has constantly been raising concerns regarding the humanitarian crisis resulting from the
Ukraine-Russia war and has even offered to play a role in the peace process between the two
countries if warranted.

Reasons why India has not criticised Russian actions publicly

● To prevent Russian isolation
○ India fears that any public condemnation or deterioration in India-Russia ties will further
deepen Russia’s ties with China and Pakistan, which both are India’s immediate neighbours
and enduring threats.
● Russian support to India at UN
○ Russia did openly support Indian claims on Jammu and Kashmir in 1955 and has used its veto
power 6 times in the UNSC in India’s favour which it can do again in future as well.
● Russia- a dependable partner
○ Russia supported India against US pressure during 1971 Indo-Pakistan war.
○ It has never criticised developments in Indian domestic politics (including human rights
violations during anti-CAA protests, farmer protests or shutdown in Jammu and Kashmir).
● Nuclear power support
○ Russia is the only country in the world that is currently operating nuclear power plants in India
(Kudankulam Nuclear plant).
● Dependence on Russian military hardware
○ India is still heavily dependent on Russia for the spare parts and after-sales support necessary
to maintain its large inventory of Russian-origin military equipment.
○ Also, Russia is often willing to provide high-leverage strategic technologies to India.
○ Russia has pursued the co-development and coproduction of advanced weapons systems in
India and supports its ‘Make in India’ programme.
● India’s policy of strategic autonomy
○ India’s strategic autonomy depends on maintaining ties with all powers, including those
hostiles to each other. India has to conduct its foreign policy based on its own strategic
interests.

INDIA-EUROPE

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BACKGROUND
• The Treaty of Paris, signed
in 1951 by six members—
Belgium, France, West
Germany, Italy,
Luxembourg, and the
Netherlands—created the
European Coal and Steel
Community (ECSC).
• The European Economic
Community (EEC) and the
European Atomic Energy
Community (Euratom)
were established in 1957
as a result of the Treaties
of Rome, which also
vowed to forge a "ever
closer union" between the
six member states.
• The three communities'
institutions were legally
combined into the
European Community (EC)
in 1967, resulting in the
creation of a single
Commission, a single Council of Ministers, and the body that is now known as the European
Parliament.
• Initially, national parliaments chose the members of the European Parliament, but in 1979 the
first direct elections were held, and they have since taken place every five years.
• The "four freedoms" of mobility of people, goods, services, and money are what make up the
Single Market, which was completed in 1993.
• The Treaty of Maastricht on the European Union, which was signed in 1993, established the
groundwork for future kinds of co-operation in judicial and internal affairs, foreign and defence
policy, and the establishment of an economic and monetary union, which included the
introduction of a single currency.
• The European Union (EU), which was then coexisting with the EC, was founded as a result of this
increased integration. 1995 saw the entry of Sweden, Finland, and Austria, bringing the total
number of members to 15.
• On January 1, 1999, a new currency known as the euro was introduced to the world's money
markets. All EU members save Denmark, Sweden, and the UK adopted the euro as their official
currency.
• The twelve nations' citizens started utilising euro banknotes and coins in 2002. Cyprus, the Czech
Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia were among
the ten nations that joined the EU in 2004.
• The number of members has increased to 28 with the additions of Croatia in 2013 and Bulgaria
and Romania in 2007. (Seven of these new nations—Cyprus, Estonia, Latvia, Lithuania, Malta,

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 Slovakia, and Slovenia—have now ratified the adoption of the euro, increasing the total number
of members of the euro zone to 19.)
• The Treaty of Nice, which was concluded in 2000 and came into effect in 2003, established
regulations to simplify the structure and operating processes of EU institutions in an effort to
ensure that the EU could continue to operate effectively with an increased membership. A
"Constitution for Europe" initiative that grew out of a convention held in 2002–2003 failed when
it was defeated in 2005 referendums in France and the Netherlands.
• Prior to taking effect in 2009, the Treaty of Lisbon was ratified by every member state of the EU.
It gives the EU contemporary institutions and more productive working practices.
• The basic consolidated versions of the Treaty on European Union (TEU) and the Treaty on the
Functioning of the European Union (TFEU), now governing what remains a very specific
integration project.

ABOUT EUROPEAN UNION

• The European Union, which consists of 28 nations from all over the continent of Europe.
• It has developed into a hybrid intergovernmental and supranational organisation.
• The EU commerce with the rest of the world accounts for almost 20% of worldwide exports and
imports despite having only 6,9% of the global population.
• A common currency: The Euro is used as a common currency by the 19 member countries of
the Eurozone, which is governed by the European Economic and Monetary Union (EMU).
○ On January 1, 1999, the euro was adopted as the unified currency by the eleven member
nations. 2001 in Greece.
○ The euro has been adopted by Slovenia (2007), Cyprus and Malta (2008), Slovakia (2009),
Estonia (2011), Latvia (2014), and Lithuania (2015);
○ The adoption of the euro is mandated by EU treaties for the remaining 7 member states,
excluding the UK and Denmark, which have official opt-outs.
● The GDP PPP of the EU as a whole was $21.68 trillion (2021 est.).
● The EU is among the most prosperous regions in the world with a GDP Per Capita: of $38,411
(2021 est.).
● The Schengen Area is one of the EU's greatest accomplishments.
○ It is a region without internal boundaries, allowing residents, many non-EU nationalities,
businesspeople, and visitors to move about freely without having to pass through border
controls.
○ Since 1985, it has steadily expanded to include nearly all EU States as well as a few related
non-EU nations.
● Applying to the EU: Any nation that meets the requirements for membership may do so.
○ These conditions are known as the ‘Copenhagen criteria’ and include a free-market
economy, a stable democracy and the rule of law, and the acceptance of all EU legislation,
including of the euro.

INSTITUTIONAL SETUP OF EUROPEAN UNION

The distinctive institutional structure of the EU consists of the following:
• European Council: The European Council, which brings together national and EU-level leaders,
including the President of the European Commission and Heads of state and government, sets the
EU's broad priorities.
• European Parliament: In the European Parliament, directly elected Members of the European
Parliament (MEPs) represent European citizens (751 seats).

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• EU Council: Governments represent the national interests of their respective nation in the EU
Council. It is a body at the ministerial level. It carries out legislative duties as well as policymaking
and coordination tasks.
• European Commission: The European Commission, whose members are chosen by national
governments, advances the interests of the EU as a whole. A College of Commissioners, led by the
president, is made up of 28 members (one from each member nation), each of whom is in charge
of one or more policy areas. Jean-Claude JUNCKER now serves as its president.

New laws are often proposed by the Commission, then approved by the Parliament and Council.
• The Commission then oversees their implementation by the member nations and guarantees that
the laws are effectively followed.
• The EU's Court of Justice, which is based in Luxembourg, maintains the rule of European law, while
the Court of Auditors, which is also based there, oversees the financing of EU operations.
• The European Central Bank, which oversees monetary policy in Europe and is based in Frankfurt,
Germany.

INDIA & EUROPEAN UNION

• India and the European Union marked 60 years of diplomatic ties in 2022. India and the European
Union (EU) discussed ‘EU-India Connectivity Partnership and the EU’s Global Gateway Strategy’
during a virtual event, which was also held to mark the celebration of India’s 75 years of
Independence.
• The EU is also India's top export market and a significant source of investment and cutting-edge
technology.
• Relations between India and the EU have existed since the early 1960s, and one of the first
nations to establish diplomatic ties with the EEC was India. The two nations' connection went
beyond trade and economic cooperation after they signed a cooperation pact in 1994.
• The first India-EU Summit, which took place in Lisbon on June 28, 2000, was a turning point in
the development of the alliance. There have been thirteen yearly Summits since that time.
• The partnership was upgraded to a "Strategic Partnership" at the 5th India-EU Summit held in
Hague in 2004. The two parties adopted a Joint Action Plan in 2005 (which was reviewed in 2008)
that called for expanding trade and investment, bringing peoples and cultures together, and
improving systems for interaction and consultation in the political and economic arenas.
• Through joint statements on the urban partnership, counterterrorism, clean energy, and climate
change, the two parties indicated in 2017 that they intended to cooperate.
• With the adoption of the India-EU Agenda 2020, which lays out a road map for cooperation on a
wide range of issues including nuclear cooperation, investments, Internet Governance, climate
change, and 5G communications, at the 13th India-EU Summit in Brussels, held in March 2016
after a four-year hiatus, India-EU relations received a further boost.

AREA OF COOPERATION
Political and Security Co-operation
• A process for fostering communication and collaboration between Asia and Europe was
developed in 1996 and is known as the Asia-Europe Meeting (ASEM). At the ASIA Europe
Meeting, India and the EU also converse (ASEM).
○ Currently, it has 53 partners, including the European Union, the ASEAN Secretariat, 30
European and 21 Asian nations.
○ In an atmosphere of respect for one another and partnership on an equal footing, ASEM
addresses topics of shared concern in politics, economics, social, culture, and education.

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● Communication between the EU and India's foreign ministers is frequent.
● Since May 2006, the Joint Action Plan has mandated an annual Security Dialogue.
● In 2016, the Security Dialogue and the Foreign Policy Consultations were combined.
● At the 2016 EU-India Summit, a Joint Declaration on counterterrorism was adopted.
● Foreign Policy Consultations at the level of Secretaries have also been established by both parties.
The first meeting happened in New Delhi on November 15, 2011, while the second round
happened in Brussels on July 20, 2012. The fourth round of the Foreign Policy Consultations
concluded on February 29, 2016, in Brussels.
● The Security Dialogue receives findings from a bilateral Joint Working Group on Counter-Terrorism
as well as talks on cyber-security and anti-piracy.
● The eighth meeting of the India-EU Ad-hoc Dialogue on Human Rights, which is conducted
annually in New Delhi, was held on November 27, 2013.
● In addition, a Secretary-Level High-Level Dialogue on Migration and Mobility has been established.
● India took part in both the October 2016 Brussels Conference on Afghanistan, which was
organised by the EU, and the April 2017 Brussels Conference on Supporting the Future of Syria
and the Region.
● To monitor relations with India, the European Parliament (EP) formally established the Delegation
for Relations with India (D-IN) in 2007.
● India and the European Union (EU) held their 15th “annual” summit in 2020 after a gap of more
than two years.
○ The practice was put off due to disagreements over trade and investment that define their
bilateral ties.
○ It saw adoption of a wide-ranging joint statement and an India-EU Strategic Partnership
Roadmap for 2025.
○ The Agreement on S&T Cooperation was extended for a further period of 5 years and the two
sides issued a Joint Declaration on Resource Efficiency and Circular Economy.
○ The Summit also decided to establish a High-Level Dialogue on Trade and Investment at the
level of CIM and EU Commissioner for Trade.
● The European Commission and Council, along with 27 heads of state from Europe, convened the
first-ever EU+27 Leaders Meeting in 2021 to meet with Indian Prime Minister Narendra Modi
digitally.
○ The gathering was conducted in a hybrid setting.
○ This was the first meeting between the EU and India in the EU+27 framework.
○ Foreign policy and security, COVID-19, climate and environment, and trade, connectivity,
and technology are the three main theme topics.
○ Moving Forward With the 4 Cs:
■ Climate,
■ COVID-19,
■ Commerce, and
■ Connectivity
○ The leaders of the EU and India have primarily covered the following topics:
■ Funding the Strategic Partnership between India and the EU
■ COVID-19 and beyond: Increasing global health preparedness and resilience
■ green development while preserving the environment
■ trade, connectivity, and technology to promote inclusive growth
■ pursuing a more democratic, wealthy, and safe world

Trade and Economic Cooperation

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● India and the EU have been in the process of negotiating a bilateral Broad-based Trade and
Investment Agreement (BTIA) since 2007.
○ As of late, both sides are discussing the modalities of resumption of BTIA talks on a fast track.
● The India-EU Joint Commission dealing with economic and commercial issues meets annually, as
do its three Sub-Commissions on Trade, Economic Cooperation and Development Cooperation.
● In addition to enhance sector-specific cooperation, there are regular meetings of Joint Workings
Groups
○ Textiles and Clothing,
○ Agriculture and Marine Products,
○ Technical Barriers to Trade and Sanitary and
○ Phyto-sanitary Issues, Pharmaceuticals and Biotechnology (SPS/TBT) as well as Food
Processing Industries.
● A Macroeconomic Dialogue at Secretary Level along with a Dialogue on Financial Services
Regulations have also been instituted and take place annually.
● The 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.
● India is already an important trade and investment partner for the EU and could hold significant
further potential.
○ It represents a sizable and dynamic market, with an annual projected GDP growth rate of over
8% according to the IMF, which would make it the fastest-growing emerging economy.
○ India received around US$ 83 bn FDI flows from Europe during 2000-17 constituting
approximately 24% of the total FDI inflows into the country during the period making it one
of the largest sources of FDI.
● Trade in goods between the EU and India increased by about 30% in the last decade.
● Trade in services between the EU and India reached €30.4 billion in 2020.

Cooperation in Science & Technology, Space, Energy and Environment

● Science and Technology:
○ The yearly meeting of the India-EU Science and Technology Steering Committee is used to
discuss this area of collaboration.
■ S&T cooperation is carried out under a Cooperation Agreement which was renewed for a
further period of 5 years in July 2020. The cooperation is reviewed by a Joint Steering
Committee.
● Space:
○ ISRO has a long-standing cooperation with the EU since the 1970s.
■ ISRO and the European Space Agency are working towards enhancing cooperation in Earth
Observation.
■ A Joint Working Group identifies cooperation opportunities under various themes such as
earth science, space science, space technology and integrated applications.
● Information Technology:
○ The India- EU JWG on ICT cooperation held its latest Meeting virtually on 19 April 2021.
○ At the 15th Summit, in July 2020, the two sides also decided to establish a Joint Task Force on
Artificial Intelligence, which was launched on 24 June 2021.
● Energy:
○ To improve collaboration in the crucial fields of energy and energy security, India and the EU
established an Energy Panel in 2005.

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 ○ Under the panel, distinct sub-groups have been formed to address issues including energy
efficiency, renewable energy, and coal and clean coal conversion technologies.
● Climate Change and Environment:
○ A Joint Working Group on Environment has been established to address issues including
pollution prevention, waste minimization, the preservation of biological variety, sustainable
forest management, environmental education, etc.
○ Each year, a forum called the Environmental Forum convenes to discuss specific
environmental issues with representatives from academia, business, and civil society on all
sides of the aisle.
○ On November 23–24, 2015, the National Water Mission of India and the EU delegation to India
jointly hosted the "Indo European Water Forum."

Migration and Mobility Cooperation

● The India-EU Common Agenda on Migration and Mobility (CAMM) provides a frame work for
cooperation on joint objectives, recommendations and actions.
● In the last High-Level Dialogue on Migration and Mobility (HLDMM) held on 10 July 2019 in New
Delhi, both sides agreed to explore possibilities to move forward through a comprehensive
partnership on migration and mobility.

Connectivity Cooperation
● India and the EU Connectivity partnership was announced during the India-EU Leaders' Meeting
held on 08 May 2021.
● The partnership is focused on outlining the norms, standards and principles that underpin the
approach of India and the EU to Connectivity as a whole.
● It also outlines various areas of cooperation on Connectivity between India and EU, and includes
India-EU partnership in third countries on Connectivity.

Education and Culture Cooperation

• Three Joint Declarations encompassing collaboration in the areas of Education and Training,
Multilingualism, and Culture offer the framework for India-EU cooperation in these areas.
• There are 50,000 Indian students enrolled in higher education in the EU, and 5,000 of them
received ERASMUS scholarships.
• India-EU Joint Declarations of2010 cover cooperation in the fields of education & training, and
multilingualism. Senior official meetings review periodically initiatives and cooperation in the field
of education and languages. Indian students avail Erasmus+ scholarship for studies in EU
countries.
• India and the EU have a dialogue on culture to discuss cooperation in the field of cultural
exchanges. In this context, festivals of culture (e.g., Europalia-India festival), exchanges on
heritage such as yoga & ayurveda, and other activities are taken up between the two sides.

INDIA AND FRANCE

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Background
• There have always been cordial ties
between France and India. The two nations
established a Strategic Partnership in
1998, which, in addition to their tight and
developing bilateral connection, is
symbolic of their agreement on a variety of
international concerns.
• The three main foundations of our Strategic
Partnership are cooperation in the fields of
defence, space, and civil nuclear energy.
• In addition to these more established areas
of collaboration, India and France are
working together more frequently in
brand-new ones, such as the International
Solar Alliance, climate change, and
sustainable growth and development.
• France is the only western nation with a sizable territory in the Indian Ocean Region (IOR), which
includes the Reunion Islands, and it has a population of one million French citizens in the region,
with about 30% of them being of Indian descent. The IOR spans approximately two million square
kilometres of an Exclusive Economic Zone (EEZ).
• The French navy keeps bases in the UAE, Djibouti, and Reunion, and it has 20,000 troops stationed
there permanently.

Convergence
• A multipolar world system is supported by France and India. France has persisted in backing both
India's demand for permanent membership in the Security Council and UN changes.
• France has consistently supported India's application to join the NSG and MTCR multilateral
export control regimes. The assistance of France was essential to India's membership in the MTCR
in June 2016.
• France’s support was vital in India’s accession to the Wassenaar Arrangement (WA) and Australia
Group (AG).
• India and France have vowed to cooperate in promoting the UN's passage of the Comprehensive
Convention on International Terrorism (CCIT), which they have both steadfastly denounced.
• India and France also released a Joint Statement on Counter Terrorism in January 2016 during
the visit of the then-President Hollande, in which they decided to intensify their bilateral
cooperation in this area.

Dialogue Mechanism
Various institutional conversations between France and India are held on a regular basis:
• There is an India-France Strategic Dialogue between the National Security Advisors (NSAs) of the
two countries.
• The two-way conversation on Track 1.5 of the Joint Working Group on Counter Terrorism on
Maritime Cooperation.
• The Observer Research Foundation from our side, the Strategy and Policy Planning Division of the
French MFA called CAPS, and the Centre for International Studies and Research (CERI as the
French acronym stands) are the other active mechanisms in the dialogue (headed by Joint
Secretary (PP&R), MEA).

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Area of Cooperation
Defence and Security
• At the Services Chief level, visits are exchanged often.
• The three services also regularly engage in defensive drills, including Exercises Shakti (Army),
Varuna (Navy), and Garuda (Air Force).
• Since 1983, the Varuna exercise has been conducted.
• In addition to service-level staff discussions, the two sides hold yearly meetings of the High
Committee on Defence Cooperation (HCDC), which is composed of the French Director General
of the Directorate of International Relations and Strategy and the Defence Secretary (DGRIS).
• In addition, a variety of staff training programmes, workshops, etc. are regularly held.
• The following are significant ongoing defense-related projects:
○ Rafale Deal: On September 23, 2016, RM Manohar Parrikar and French Defense Minister Le
Drian inked an intergovernmental agreement in New Delhi for India to purchase 36 Rafale
planes in fly away condition.
■ On 10 September 2020, French Armed Forces’ Minister Florence Parly participated in the
formal induction ceremony of five Rafale aircraft at the Ambala air base. All the Rafale
aircrafts have been ferried to India.
○ P-75 Scorpene Project: In October 2006, M/s DCNS and the Navy agreed on a deal for six
Scorpene submarines. The Mazagaon Docks Ltd. will transfer technology to build all six vessels.
Kalvari and Khanderi, the first two submarines, have been constructed.
■ Third submarine, INS Karanj, Scorpene class, was commissioned on 10 March 2021.
Fourth Submarine, INS Vela was commissioned in November 2021.
■ The fifth submarine INS Vaghir was delivered to the Indian Navy in December 2022.
■ The construction of the 6th Vagsheer is underway.
● The two nations released a Joint Strategic Vision of India-France Cooperation in the Indian Ocean
region during President Emmanuel Macron's 2018 visit.
● In 2018, the two sides also signed an agreement on reciprocal logistics support for armed forces.
This agreement will make it easier for the armed forces of the two nations to provide one another
with logistical support, supplies, and services during authorised port visits, joint exercises, and
joint training, among other things.
● An agreement on the exchange and reciprocal protection of classified or protected information
was also signed by two nations.

Space Technology Cooperation

● With ISRO and the French Space Agency, CNES, conducting numerous cooperative research
programmes and satellite launches, India and France have a long history of cooperation in the
sphere of space dating back fifty years. During PM Modi's visit to France in April 2015, a joint
stamp was issued to mark fifty years of bilateral space collaboration.
● In June 2016, M/s Antrix and M/s Airbus Defence and Space also agreed to cooperate
commercially.
● On October 5, 2016, the twenty-first ISRO satellite to be launched by Arianespace, GSAT-18, was
sent into orbit from Kourou, operated by Arianespace. On June 28, 2017, GSAT-17 was launched
from Kourou.
● France continues to be a significant equipment and component supplier to the Indian space
programme.
● In January 2016, during President Hollande's visit to India, ISRO and CNES inked a Letter of Intent
for collaboration in planetary exploration, an Implementing Agreement (IA) for the joint

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 development of a thermal infrared satellite mission, and a payload of French Argos-IV
instrument on India's Oceansat-3 satellite.
● In 2011, the Megha Tropiques satellite mission, which was collaboratively built, was launched.
○ It is a joint Indo-French satellite mission to research the tropical water cycle and energy
exchanges.
○ Understanding the life cycle of convective systems that affect tropical weather and climate, as
well as their function in the associated energy and moisture budget of the atmosphere in
tropical regions, is the fundamental goal of this project.
● A collaborative Ka-band propagation experiment is also in progress.
● ISRO and the French Space Agency, CNES have been carrying on various joint research
programmes and collaborating in satellite launches. Both sides have exchanged cooperative
proposals addressing Earth observation, Maritime domain awareness, Global navigation
satellite system, exploration of solar system, space transportation system and human
spaceflight.
● As part of the ongoing bilateral cooperation between ISRO and Arianespace, GSAT-30 was
launched on 16 January 2020.
● CNES is supporting the Indian human space flight programme – Gaganyaan, in the field of space
medicine and supply of crew support elements.

Civil Nuclear Cooperation

● A landmark agreement on civil nuclear cooperation was signed between India and France on 30
September 2008 during the visit of Prime Minister Dr. Manmohan Singh to France.
● Subsequently, during the visit of President Nicolas Sarkozy to India in December 2010, the General
Framework Agreement and the Early Works Agreement between NPCIL and M/s AREVA for the
implementation of EPR for the Jaitapur Nuclear Power Project (JNPP) were signed. The power
plant will have six reactors with a capacity of 1,650 MW each.
● During Prime Minister Modi’s visit to France in April 2015, M/s L&T and M/s AREVA signed an MoU
to maximize localisation for manufacturing of critical and large forgings involved in EPR technology
for JNPP (including Reactor Pressure Vessel) and M/s AREVA and NPCIL signed a pre-engineering
agreement.
● Following M/s AREVA’s restructuring, French utility EDF has now been designated as the lead
agency from the French side for negotiations and implementation of the JNPP.
● During the 2018 visit of the French president India and France signed an agreement to expedite
the Jaitapur nuclear power. NPCIL (Nuclear Power Corporation) and EDF France have signed an
industrial way forward agreement. This indicates that negotiations between entities of France and
the Indian government would conclude by 2018-end and construction can begin.
● Once installed, the Jaitapur project will be the largest nuclear power plant in the world, with a
collective capacity of 9,900 MW.

Environment and Renewable Energy Cooperation

● France is a founding member of the International Solar Alliance (ISA), announced by PM Modi in
2015 at UN Climate Change CoP21.
● The 3rd ISA Assembly held in October 2020 re-elected India and France as President and Co-
President of the ISA.
● The countries signed an MoU on renewable energy in January 2021.

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 ○ The objective of the MoU is to promote bilateral cooperation in the field of new and renewable
energy on the basis of mutual benefit, equality and reciprocity.
○ It covers technologies relating to solar, wind, hydrogen and biomass energy.
● In February 2021 AFD and SECI signed a letter of intent for developing 150 MW floating solar
power system.
● On 6 October 2021, the National Thermal Power Corporation and the French electricity agency
EDF (Electricité de France) signed an MoU to work on clean energy projects in Europe, Asia, West
Asia and Africa and to collaborate on R&D, technical services and consultancy assignments on a
global scale.
● India and France also work together on climate and biodiversity. In this context, India joined the
French-led initiative called the High Ambition Coalition for Nature and People, on 7 October
2021.
○ The HAC has an objective of protecting at least 30% of the world’s lands and oceans by 2030.
● At the One Ocean Summit on 11 February 2022, Prime Minister announced India’s support to
the French initiative of the High Ambition Coalition on Biodiversity Beyond National Jurisdiction
(BBNJ). The PM also expressed India’s readiness to work with France on a global initiative on
combating single-use plastic pollution.

Economic and Trade Cooperation

● India and France have significant trade and commercial ties as well as bilateral investments.
● Both India and France have important bilateral investments and trade and commercial
cooperation, particularly in sectors involving IT corridors, smart-cities, railways, capital and trade
exchanges, skill development etc.
● France has emerged as a major source of FDI for India with more than 1,000 French
establishments already present in India.
○ France is the 11th largest foreign investor in India with a cumulative FDI stock of USD 9.83
billion from April 2000 to March 2021, which represents 2 % of the total FDI inflows into India.
● There are more than 150 Indian companies operating in France (including sub-subsidiaries),
employing more than 7,000 persons. Seventeen investments from India were recorded in 2018,
creating or maintaining 141 jobs.
● France’s GDP is almost similar to that of India’s, but our bilateral trade remains far below
potential, even though India has enjoyed a consistent trade surplus.
○ In the period April 2020-March 2021, India-France bilateral trade stood at USD 7.86 billion.
India’s exports to France were valued at USD 5.6 billion, down by 22.9%.
○ Meanwhile, French exports to India decreased by 20.95% during the same period to USD 5.1
billion. Trade with France constitutes only 1.41% of India’s total international trade.
● At the level of both sides' ministers of commerce and foreign trade, there is a Joint Economic
Committee.
● Seven bilateral collaborative working groups, including
○ IT & Telecommunications,
○ Roads,
○ Sustainable Urban Development,
○ Agriculture and Food Processing,
○ Mineral Exploration and Development,
○ Energy, and
○ Post, exist in a variety of disciplines.

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● There is an India-France CEOs' Forum, which consists of the top executives from both countries
who gather yearly to deliver their reports to the presidents and prime ministers of India and
France.
● Nearly every significant French corporation is represented in India, including Renault, Saint
Gobain, Veolia, Michelin, Capgemini, Sanofi, EDF, Airbus, Lactalis, Sodexho, Total, and others. In
Madhepura, Bihar, Alstom has been awarded a significant project worth Euro 3.2 billion to
produce 800 locomotives.
● Major French businesses like Dassault, SAFRAN, Thales, and others in the defence sector have
signed joint cooperation agreements with India's Reliance, Tata, and Mahindra, among other large
companies. French infrastructure firms anticipate big prospects in Indian projects, such as those
involving smart cities and renewable energy.
● Indian Railways have established a Permanent Indo-French Railway Forum.
○ They have been cooperating in the studies for the feasibility of semi-high speed upgrade of
Delhi-Chandigarh section and station development study of Ambala and Ludhiana.
● The Bilateral Investment and Protection Agreement between India and France expired in 2010,
ten years after coming into force.
○ GoI intends to replace it with a revised Bilateral Investment Treaty. A model text of the
agreement was proposed by the Indian side in 2015.
○ The French side has informed that as all trade-related agreements are subject to the purview
of the EU, France cannot unilaterally decide on the matter.
○ As declared during the visit of President Macron to India, both India and France support the
efforts of India and EU to negotiate an early harvest EU- India Trade Agreement.
● In May 2020, the advisory board of the Agence Française de Développement (AFD) announced
that it has allocated 200 million Euros and will sign an agreement with India’s Finance Ministry
to support welfare measures and the most vulnerable sections of society.

Development Cooperation
● AFD, the French Agency for Development has, since 2008, committed close to 2 billion Euros in
the form of loans to the State and State-owned companies, as well as technical assistance
programs.
● It has extended a loan of Euro 100 million to the Government of India for its Smart Cities
Mission.
● The French side has been actively cooperating with various programmes in especially three
Smart Cities, viz. Chandigarh, Nagpur and Puducherry.
● AFD has partnerships with the Indian Renewable Energy Development Agency (IREDA), Small
Industries Development Bank of India (SIDBI) and it works closely with the Department of
Economic Affairs (DEA) through Annual Negotiation Meetings (ANM).

Science & Technology and Education

● In the field of S&T, the Indo-French Centre for the Promotion of Advance Research (CEFIPRA)
based in New Delhi, established in 1987, plays a major role by identifying and funding joint
proposals for research projects.
● During the visit of Prime Minister Modi to France in April 2015, the two sides decided to facilitate
professional experience for their students in both countries after the completion of their academic
courses.
● The French government has started granting the residence permit called “Authorization
Provisoire de Sejour” (APS) of 12 months for the second year after the completion of the first

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 period of 12 months which was already been granted to Indian students of Masters-level and
above.
● GoI, on its part, has implemented the facilitation of visa for 250 French students annually under
the French VIE scheme (Volontariat International en Enterprises) in which French students fresh
after graduation are encouraged by the French government to seek internship opportunities in
companies abroad to supplement their academic experience.
● During the visit of President Macron to India (March 2018), the two sides encouraged their
respective Universities and academic institutes to increase the number and quality of student
exchanges with the aim of reaching the number of 10,000 students by 2020.
○ Having reached this target, during the visit of the PM to France (August 2019), the two sides
revised the student exchange target to 20,000 by 2025.
○ During this latter visit, an Administrative Arrangement was also signed between the two
countries for Cooperation in Skill Development and Vocational Training.
○ An Agreement on the mutual recognition of degrees, signed in March 2018, has already
entered into force.
○ Two Knowledge Summits have also been held courtesy the French side in March 2018 (New
Delhi) and October 2019 (Lyon).
● During EAM’s visit to France in February 2022, the two sides adopted the India- France Roadmap
on Blue Economy and Ocean Governance. The roadmap rests on four pillars:
○ Institutional Pillar: annual bilateral dialogue between the Economic Advisory Council to the
Prime Minister and the French Ambassador for Maritime Affairs in MoFA to share best
practices and support ongoing and future cooperation.
○ Economic Pillar: facilitating contact between economic players, business heads of
organisations, technopoles and maritime clusters of India and France.
○ Infrastructure Pillar: cooperating on sustainable and resilient coastal and waterways
infrastructure.
○ Scientific and Academic Pillar: enhancing scientific cooperation and exchanges between
students and researchers.

Cyberspace and Digital technology Cooperation

● The two countries have several convergences in their respective positions on digital sovereignty,
privacy and data protection.
● The Indo French Roadmap on Cybersecurity and Digital Technology was signed between the two
countries during PM Modi’s visit to France on 22 August 2019.
● The roadmap lays down areas of cooperation such as cybersecurity, fight against cybercrime,
regulation of Artificial Intelligence, protection of personal information, digital governance.
● There exists an MoU between ANSII and Cert-in on exchange of information signed in 2019.
● The Prime Minister gave the keynote address at the 5th Edition of Vivatech, held in Paris, in June
2021.
● In the field of exascale computing, Atos in collaboration with CDAC has developed “PARAM-
Siddhi- AI”, India’s fastest supercomputer.
● Additionally, there exists immense potential in collaborating in future technologies such as 5G and
6G, developing global tech standards, training and capacity building programs and connecting the
startup ecosystems of the two countries.
● The fourth India-France Cyber Dialogue was held on 13 October 2021 in the virtual mode. The
Indian side proposed an Action Plan which is under consideration at the French side.

Counter Terrorism

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● India and France have consistently condemned terrorism and have resolved to work together for
adoption of the Comprehensive Convention on International Terrorism (CCIT) in the UN.
● Following the Pulwama attack (Feb 2019), France steadfastly supported India and nationally
listed the Pakistan-based ‘global terrorist’ Hafiz Saeed, which was followed up with the listing
at the UN.
● France has also supported India’s requests to block attempts by Pakistan to enlist innocent Indian
citizens under the UNSC 1267 sanctions Committee based on fabricated charges.
● As France witnessed a string of terrorist attacks in 2020, most notably the “Paris stabbing attack”
in September and beheading of Samuel Paty in October 2020, India expressed its condolences.
● In the face of the backlash against purported French “Islamophobia”, in countries such as Turkey
and Pakistan, Prime Minister Modi extended his support to President Macron. Both sides held the
15th JWG on CT on 16 November 2021 in Paris.

Cultural Cooperation
● Indian culture enjoys a wide following amongst the people of France. An Indian Cultural Centre,
named Vivekananda Cultural Centre, is being opened in Paris. The building which was acquired
for the purpose is undergoing renovation.
● As decided during the visit of President Hollande to India in January 2016, ICCR presented the
Namaste France cultural festival in France from 15 September to 30 November 2016.
○ The festival brought home to the French audience various manifestations of Indian culture
including classical and contemporary dances and music, exhibitions, seminars, food, fashion,
films etc.
○ The festival saw more than 80 events presented in more than 40 cities in France and proved
to be a great success.
● The French side presented the French cultural festival Bonjour India in India from November
2017 to February 2018.
● India was the Country of Honour for the 2022 edition of the Paris International Book Fair (Livre
Paris, June 2022).
● GoI has also offered five scholarships for study of Sanskrit in India to French nationals. Various
other bilateral programmes of cultural cooperation are under implementation.
● The International Day of Yoga has been organized by the Embassy of India, Paris in Paris and in
other cities of France since 2016.
● Various events have also been held to commemorate the 150th birth anniversary of Mahatma
Gandhi, the 550th Birth anniversary of Shri Gurunanak Devji, and the 70th year of the Constitution
of India.
● These events have received wide acclaim and press coverage. Several events have been planned
in 2021-22 to commemorate 75 years of India’s independence and celebrate ‘Azadi Ka Amrit
Mahotsav’.
● One of the first such events from the French side was organised on 26 February 2022 as part of
MEA’s AKAM Week, where a French mural artist, Fabien Poes, created a wall art at the Mandi
House Metro Station in Delhi on the theme of “A French Garden” to reflect the"enduring
friendship" between the two countries.
○ The wall painting was inaugurated by Minister of State for External Affairs and Culture, on 26
February 2022.

INDIA-GERMANY

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Background
● Following the Second World War,
India was one of the first nations to
establish diplomatic relations with
the Federal Republic of Germany.
After the Cold War ended and
Germany was reunited, relations
between the two countries
considerably improved.
● Over the past ten years, India and
Germany's economic and political
ties have grown. Today, both
bilaterally and globally, Germany is
one of India's most significant allies.
● Since 2000, India and Germany have
had a "Strategic Partnership," which
has been strengthened through the
Intergovernmental Consultations
(IGC) between the two Governments,
which provide a forum for
identifying new areas of engagement and a thorough evaluation of current areas of
collaboration.
○ 6th Inter-Governmental Consultations: Prime Minister visited Berlin on 2 May 2022 to co-
chair the 6th IGC with Germany’s Chancellor.
○ 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.
● Germany has such a discussion mechanism with a select few nations, including India.
● Within the G-4, tight coordination exists between Germany and India on the UNSC expansion
issue.
● In the G-20, both nations discuss one another on international concerns including climate change
and sustainable development.
● German expertise matches most of India's present priorities in sectors including renewable
energy, skill development, smart cities, water management, and waste management.

Dialogue Mechanism
Following are the institutional agreements to discuss bilateral and global issues of interests:
● Joint Commission on Industrial and Economic Cooperation,
● Foreign Office Consultations (FOC),
● High Technology Partnership Group (HTPG),
● High Defence Committee,
● Indo-German Energy Forum,
● Indo-German Environment Forum,
● India-Germany Committee on S&T,
● Joint Working Groups (JWG) on various fields, including skills development, automotive, and
aerospace

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● The JWG on Quality Infrastructure for Cooperation on Standardization, Conformity Assessment,
and Product Safety.

Area of Cooperation
Multilateral Cooperation
● Germany and India support each other on UNSC expansion within the framework of the G4.
○ The last meeting of the G4 was held at the level of Foreign Ministers on the side-lines of the
77th UNGA in September 2022.
● Germany joined the Coalition for Disaster Resilient Infrastructure (CDRI) in February 2020 and
participated in the first Governing Council meeting in March 2020.
● In April 2021, the German Federal Cabinet approved the signing of the amended framework
agreement of the International Solar Alliance (ISA), and thereby confirming Germany's
accession to the ISA.
● On September 10, 2021, during their visit to Delhi, Parliamentary State Secretaries from the
German Federal Ministry of Economic Cooperation and Development handed over the Instrument
of Accession to Secretary (Economic Relations), MEA.

Defence Cooperation
● A framework for cross-border defence cooperation is provided under the 2006 India-Germany
Defence Cooperation Agreement. Annually, sessions of the High Defence Committee (HDC) at the
level of the Defence Secretary are held alternately in Berlin and New Delhi.
● Admiral Andreas Krause, commander of the German Navy, attended the February 2016
International Fleet Review in Vishakhapatnam.
● The 10th HDC meeting between Defence Secretary and State Secretary was held on January 12,
2021, and next HDC meeting is scheduled to be held on January 09-10, 2023, in Berlin.
● INS TEG participated in Hamburg Port Festival in 2012 and INS TARANGINI participated in Hanse
Sail Rostock/ Sail Bremerhaven in August 2015.
● Two Indian Navy ships INS TARKASH and INS TABAR were transited through Kiel Canal in July
2019 and July 2021 respectively.
● German naval frigate ‘BAYERN’ conducted a PASSEX with INS TRIKAND on August 26, 2021, and
made a port call at Mumbai on January 21, 2022, as a part of its seven-month deployment to the
Indo-Pacific.

Economic Cooperation
● Germany is India’s largest trading partner in Europe and has consistently been among India’s top
(10-12) global partners. Germany was also the 11th largest trading partner in FY 2021-22.
● Bilateral trade in 2021-22 was USD 24.85 billion registering an increase of 14.2% over FY 2020-21.
○ Indian exports during this period increased by 21.6% reaching USD 9.88 billion and Indian
imports increased by 9.7% to USD 14.97 billion.
○ During 2022-23 (until August 2022), bilateral trade was USD 10.81 billion, an increase of 9.32%
over the corresponding period in FY 2021-22. Indian exports with USD 4.32 billion during this
period witnessed an increase of about 15.2% and Indian imports with USD 6.49 billion
registered an increase of 5.7%.
● The areas of IT, biotechnology, renewable energy, green technology, urban transportation &
development, and the entertainment industry all provide significant room for collaboration.
● Germany is the 9th largest FDI source for India. The total FDI from Germany to India from April
2000-June 2022 is over USD 13 billion. During 2021-22, German FDI was USD 728 million. In FY
2022-23 (up to June 2022), German FDI in India was USD 89 million.

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 ○ As per Indo-German Chamber of Commerce, there are more than 1,700 German companies in
India.
○ German investments in India have been mainly in sectors of transportation, electrical
equipment, metallurgical industries, services sector (particularly insurance), chemicals,
construction activity, trading and automobiles.
● The majority of the main German businesses are already present in India. Automotive behemoths
from Germany including Daimler, Volkswagen, BMW, and Audi have set up factories and assembly
plants in India. Siemens, ThyssenKrupp, Bosch, Bayer, BASF, SAP, Deutsche Bank, Metro,
Lufthansa, Merck, Munich Re, and other notable German firms have large operations in India.
Along with huge corporations, German medium-sized businesses are becoming more interested
in India.
● Fast Track Mechanism is in place by DPIIT and German Ministry of Economic Affairs and Climate
Action (BMWK) to address issues/grievances of companies in India and Germany. The
mechanism was announced in 2019 at the 5th IGC which started meeting since 2020. The last
meeting was held in January 2021.
● In the past few years, Indian investments in Germany have also increased significantly. Over US$
7 billion has been invested in Germany by Indian corporate companies.
● More than 200 Indian businesses are active in Germany. India has made investments in the IT,
automotive, pharmaceutical, and biotech industries. Major Indian software suppliers like Infosys,
WIPRO, and TCS have operations in Germany, and Indian software businesses are increasingly
present in the German market.
● A market entry support programme, the ‘Make in India Mittelstand’ (MIIM) for German
Mittelstand (SMEs) and Family-Owned Businesses is being implemented by Embassy of India,
Berlin to support high potential Mittelstand companies with medium to long term potential for
manufacturing in India. As of date, 152 companies are being facilitated through this programme
with a declared investment of nearly Euro 1.47 billion. More than 30 of these companies are
‘hidden champions’ that are world market leaders in niche products/technologies.

Science and Technology

● In 1971 and 1974, the Intergovernmental S&T Cooperation Agreement was signed, marking the
beginning of Indo-German scientific and technological cooperation.
● Germany is India's second-largest global collaborator in terms of output in all areas of science.
● Germany is one of the top three international locations for Indian scientists.
● More than 7000 scientist exchanges, more than 2000 joint scientific publications, and more than
400 Indo-German workshops and seminars have all been produced as a result of the more than
2000 joint projects that have so far been successfully completed. More than 170 projects are now
being carried out.
● Leading German R&D institutes like the Max Planck Society, Fraunhofer Laboratories, and the
Alexander von Humboldt Foundation have close working relationships with India's scientific
establishments.
● The Department of Science and Technology (DST) and the German Federal Ministry for
Education and Research (BMBF) are the nodal agencies for overall coordination. An apex Indo-
German Committee on S&T, established in 1994 coordinates the implementation of cooperation
and reviews joint activities.
● India has invested in major science projects in Germany such as the Facility for Anti-Proton and
Ion Research (FAIR) at Darmstadt and the Deutsche Elektronen Synchrotron (DESY) for
experiments in advanced materials and particle physics.

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● The hon’ble Minister of Science & Technology, Mr. Harsh Vardhan inaugurated the India-centric
PETRA-III beamline at DESY in September 2016.
● The jointly funded Indo-German Science and Technology Centre (IGSTC) was set up in Gurgaon in
September 2008.
○ A Joint Declaration was signed during the 3rd IGC in 2015 to extend the tenure of the IGSTC
until March 2022 (with a provision for automatic renewal) with increased funding up to a
maximum of Euro 4 million per year on the principles of activity matching funding by each side
as per national rules of the respective country.
○ A total of 40 projects (21 completed and 19 ongoing) have been supported on various themes
of national priority areas such as:
■ Advanced Manufacturing (Make in India),
■ Embedded System and ICT (Digital India),
■ Sustainable Energy/Environment,
■ Biotechnology/Bioeconomy (Food Security),
■ Bio-Medical Technology (Healthy India)/Water and
■ Wastewater Technology (Clean India), Smart Cities, etc.
● Department of Biotechnology is an Associate member of the European Molecular Biology
Conference (EMBC) which provides postdoctoral fellowship, and funds to conduct research and
organize conferences, symposia and workshops.
● Under the Indo-German Science & Technology Cooperation Programme, the DST along with the
Alexander von Humboldt Foundation, Germany organizes “Indo-German Frontiers of
Engineering, INDOGFOE” Symposium alternatively in India and Germany.

Cultural Cooperation
● The longstanding cultural relations between India and Germany are strengthened by the cultural
and intellectual exchanges between the two countries.
● The systematic and academic study of Indian literature, especially Vedas and Upanishads, and
also translation of famous works from Sanskrit to German language significantly contributed to
the better understanding of India and its culture.
● Most importantly, the translation of Kalidasa’s ‘Shakuntala’ in 1791 initiated institution-based
scientific research on sacred Indian texts giving Germans an insight into Indian philosophy and
literature.
● Max Mueller was the first scholar of Indo-European languages to translate and publish
Upanishads and Rigveda.
○ The Max Mueller Bhavan (Goethe Institute), counterpart of Indian Council for Cultural
Relations (ICCR) in India, imparts German language training in cities across India.
● The visit of Nobel Laureate Gurudev Rabindranath Tagore to Germany in 1921, 1926 and 1930
was one of the most important bridges of cultural and intellectual exchange between India and
Germany.
○ Gurudev Tagore’s impassioned lectures inspired Germans that portrayed the universal
relevance of Indian culture and spirituality.
● The cultural relationship between India and Germany in the 21st century has been supported
by established networks in socio-cultural fields.
● The contemporary cultural exchange between India and Germany endeavours to strengthen
cultural relations by encouraging cooperation in the field of culture, media, entertainment and
education.

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● The popularity of Indian films in Germany, especially Bollywood films, can be traced back to the
unique collaboration between Himanshu Rai and Director Franz Osten that produced the film ‘The
Light of Asia’ under the banner of Bombay Talkies in 1924.
● There is immense interest in contemporary Indian literature and theatre. Literary works and
plays of renowned authors in Indian languages have been translated and published by German
publishers.
● Ayurveda, the Indian traditional system of medicine, is being acknowledged as a
complementary system of medicine in Germany.
○ Several research institutions in Germany have been contributing to this development through
international exchanges and research projects.
● The holistic approach of Yoga in health care and well-being has led many Germans to embrace
Yoga. The presence of Yoga schools in almost all the cities of Germany has made Yoga accessible
to the people.
● The International Day of Yoga 2022 was organized in Erfurt, capital city of the federal state of
Thuringia, with an objective to raise awareness of Yoga and its benefits among school children.
The event witnessed a huge footfall of school students from Thuringia.
● The Memorandum of Understanding for museum cooperation signed during the 5th IGC
envisages cooperation for capacity building in fields of restoration, conservation, education and
digital infrastructure.

INDIA AND UNITED KINGDOM

Background
● Great Britain and
Northern Ireland's
United Kingdom. Wales,
Scotland, and England
are all parts of the island
of Great Britain.
● In mediaeval times, the
term "Great Britain," in
the sense of "Larger
Britain," was used to
distinguish the island
from "Little Britain," or
what is now known as
Brittany in modern
France.
● On April 12, 1927, the
United Kingdom of Great
Britain and Northern
Ireland was given its
current name by the
Royal and Parliamentary
Titles Act.
● In the past, the United
Kingdom has taken the
lead in improving science

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 and literature as well as parliamentary democracy. The British Empire covered one-fourth of the
earth's surface at its height in the 19th century.
● The Northern Ireland Assembly, National Assembly for Wales, and Scottish Parliament all came
into existence in 1998.
● The UK pursues a global approach to foreign policy as one of the five permanent members of the
UN Security Council and a founding member of NATO and the Commonwealth.
● The UK joined the EU in 1973 and has participated actively ever since, although opting out of the
Economic and Monetary Union.
● However, UK residents narrowly chose to exit the EU on June 23, 2016, spurred in part by
annoyance with a distant bureaucracy in Brussels and a wave of immigration into the nation.
● In advance of the UK's scheduled departure from the EU on March 29, 2019, the EU and UK will
negotiate a framework for their future relationship while discussing the details of the UK's
withdrawal.

Bilateral relationship
● In 2004, a bilateral cooperation was transformed into a strategic partnership.
● During his first term, British Prime Minister David Cameron made three trips to India (July 2010,
February 2013 and November 2013).
● The bilateral relationship received a boost from Prime Minister Modi's fruitful visit to the UK in
November 2015.
● The two prime ministers agreed to establish a new defence and international security partnership
to boost collaboration on defence and security, including cyber security, counterterrorism, and
maritime security, and they decided to attend biannual PM-level summits to further the
partnership.
● Theresa May, the prime minister of the United Kingdom, visited India in November 2016. It was
her first abroad trip following taking office in July 2016, and it demonstrated the ongoing nature
of political exchanges.
● In light of Brexit, the Commonwealth Summit, which is slated to take place in London in April 2018,
offers another chance for the two nations to rekindle their bilateral relationship through a meeting
at the Heads of Government level.

Dialogue Mechanism
There are several bilateral discussion platforms between India and the UK that cover a wide range of
topics, including politics, trade, education, science and technology, and defence, among others. These
are the crucial ones:
● Economic and Financial Dialogue at Finance Minister-level Joint Economic & Trade Committee at
Commerce Minister-level
● Strategic Dialogue at National Security Advisor (NSA)-level
● Foreign Office Consultations at Foreign Secretary-level
● Home Secretary-level Dialogue
● Defence Consultative Group at Defence Secretary-level
● Cyber Dialogue and
● Counter Terrorism Dialogue.

Area of Cooperation
Economic Cooperation
● India-UK bilateral merchandise trade (Trade in Goods & Trade in Service):

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 ○ India-UK bilateral trade (both goods and services) stood at £25.7 billion during the period from
April 2021 - March 2022, registering an increase of 35.2% or £6.7 billion from the same period
in 2020-21.
○ Out of the above, India’s total imports from the UK amounted to £8.8 billion and India’s total
exports to the UK amounted to £16.9 billion.
○ India was the UK’s 12th largest trading partner in this period accounting for 1.9% of UK’s total
trade. During the period from April 2021 - March 2022, total bilateral trade in goods
(merchandise) was £14.4 billion, of which India’s export to the UK was £9.1 billion while India’s
import from the UK was £5.3 billion.
○ During the period from April 2021 - March 2022, our total trade in service was £11.3 billion,
comprising India's export of £7.8 billion and India’s import of services from the UK of £3.5
billion.
● Indian investment in UK:
○ India invested in 107 projects and created 8,664 new jobs in the UK to retain the position of
second-largest source of foreign direct investment (FDI) after the US, according to the
Department for International Trade (DIT) inward investment statistics for 2021-2022.
○ The number of projects and jobs increased in comparison to the 2020-21 figures of 99 projects
and 4,830 jobs. As per the CII-Grant Thornton India meets UK Report 2022, there are 900
Indian companies operating in the UK, with combined revenues of almost £54.4 billion.
○ Together, they paid over £304.6 million in corporate tax and employed 141,005 people. This
figure excludes employees of UK branches of Indian companies.
● UK's investment in India: UK is the 6th largest inward investor in India, with a cumulative equity
investment of US $ 32.82 billion (April 2000 - September 2022), accounting for around 5.3% of all
foreign direct investment into India.

Defence Cooperation
● Another crucial pillar of bilateral collaboration is defence sector cooperation. Joint exercises and
extensive interactions between the three services are regularly performed at all three military
levels.
● From December 1–14, 2017, Bikaner hosted the final Army Joint Exercise "Ajeya Warrior."
● From July 21 to August 1, 2015, the Indian Air Force took part in Exercise "Indradhanush-IV" in
the UK.
● INS Tarkash took part in the Joint Navy Exercise "Konkan 2017" that took place in Plymouth, UK,
in May 2017.
● During the Prime Minister's visit to the UK in November 2015, the two nations decided to
strengthen their defence cooperation by forming capabilities alliances in key sectors.
● Each year, the Defence Secretary participates in the Defense Consultative Group Meeting, an
institutionalised forum for talking on defence cooperation. The 18th DCG meeting took place in
London on October 9 and 10, 2017.
● On December 3–5, 2017, the Director General of the Defense Intelligence Agency visited and
interacted with his counterpart in London, kicking off cooperation in defence intelligence.
● Air Marshal Sandeep Singh, PVSM, AVSM, VM, ADC, Vice Chief of the Air Staff (VCAS), Indian Air
Force visited the UK from 13 to 17 July 2022 and attended the Global Air and Space Chiefs’
Conference (GASCC) - 2022 and Royal International Air Tattoo (RIAT) - 2022.
● UK Youth and Cadets Delegation consisting of two Officers and ten Cadets took part in the
Special Youth Exchange Programme organised by the Director General National Cadet Corps
from 09 to 17 Aug 2022 and took part in the Independence Day celebrations.

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● Indian Naval Sail Training Ship Tarangani visited the UK from 14-18 Aug 2022 and Gibraltar from
04 to 07 Sep 22 as part of the Lokayan 2022 deployment to commemorate the Azadi ka Amrit
Mahotsav.

Science & Technology and Education Cooperation

● The relationship between India and the UK has significantly expanded since the advent of bilateral
mechanisms including the Newton-Bhabha Fund, the India-UK Education Forum, the UK-India
Education and Research Initiative (UKIERI), the Joint Working Group on Education, and
Scholarship programmes.
● 35 British academics have been to India as part of the Global Initiative for Academic Network
(GIAN) programme, and the UK has pledged a new investment of up to £12 million to the Skills
India Mission.
● Over £200 million has been invested jointly in UK-India research, up from less than £1 million in
2008.
● India-UK Clean Energy R&D Center with an emphasis on solar energy storage and joint R&D
programme in energy efficient building materials were launched during UKPM Theresa May's visit
to India.
● There have also been established new research partnerships worth £80 million, such as a new
Shared Strategic group on Anti-Microbial Resistance (AMR) with a joint investment of up to £13
million.
● Education cooperation is an important pillar of India-UK Bilateral relationship as envisaged
under India-UK Roadmap 2030, which was released in May 2021 during Prime Ministerial level
virtual Summit.
● Since 2015-16, the number of first year enrolment of Indian students in the UK Universities have
been increasing.
● India and UK signed mutual recognition of academic qualifications.
○ Memorandum of Understanding on 21 July 2022, giving a fillip to cooperation in the education
sector between the two countries.

Diaspora
● The Indian Diaspora in the UK is the largest ethnic minority community in the country, including
approximately 1.6 million British nationals of Indian origin and about 3,00,000 NRls living in the
UK equating to almost 2 percent of the UK population and contributing 6% of the country's GDP.
At present there are sixteen Indian origin MPs in the UK Parliament.
● As per the report ‘India in the UK: The diaspora effect’ prepared by Grant Thornton and FICCI,
there are over 65,000 companies owned by Indian diaspora. The report researched 654
companies with turnover of more than £100,000 per year. Their combined revenue is £36.84
billion, they paid over £1 billion in corporate tax, invested over £2 billion through capital
expenditure, and created over 174,000 jobs.

People-to-People Exchanges
● India and UK signed the Migration and Mobility Partnership (MMP) Agreement on 4 May 2021
with the intention to address swifter movement of working professionals between the two
countries - an important element of India-UK economic partnership.
● On 16 November 2022, PM Narendra Modi and Prime Minister Rishi Sunak announced the Young
Professional Scheme on the side-lines of the G20 Bali Summit.
○ Under the scheme, 3000 visas will be provided every year to graduates between the age of 18-
30 to get 2-year visas to live and work in each other's country.

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Brexit
● Brexit, which is created by fusing the phrases Britain and departure, has come to be used as a
shorthand for the UK's exit from the EU.
● On June 23, 2016, UK residents cast ballots in a referendum to leave the European Union (EU). By
invoking Article 50 of the Lisbon Treaty, the UK formally informed the European Council of its
decision to leave the EU on March 29, 2017. On March 29, 2019, at 11 p.m. UK time, it is scheduled
to leave.
● For the time being, the UK is still a full member of the EU, and all of its rights and obligations still
apply to it.
● The UK and EU are in talks on their "divorce" issues. The first round of talks was focused on:
○ Citizens' rights issues
○ The financial agreement
○ The Northern Irish border
○ Further concerns with secession

2nd Phase of Negotiations

On 29 January 2018, EU27 ministers adopted a new set of negotiating directives giving details on the
EU27 position on the transition period. The main points are:
● The negotiating directives suggest that the transition phase terminate on December 31, 2020.
● Throughout the transition period, the UK will continue to be subject to the entirety of the EU
acquis as if it were a member state, and any modifications to it will also be applicable to the UK.
● The UK will no longer participate in any of the organisations established by the accords the EU has
signed, but it will continue to be obligated by the duties resulting from those agreements.
● Because it is already a third country, the UK will no longer take part in the EU's institutions or
decision-making processes.
● All currently in place EU regulatory, budgetary, oversight, judicial, and enforcement instruments
and mechanisms will also be applicable, including the jurisdiction of the European Union Court of
Justice.
● Economic growth in the UK was expected to have been 1.8% in 2016, second only to Germany's
1.9% among the G7's top industrialised nations, defying predictions of impending disaster. In
2017, the UK economy grew at almost the same pace as in 2016.

Indian and Brexit

The EU, according to many Brexit advocates, is the main barrier to trade between the UK and India.
India continues to have a stake in the referendum's outcome for two reasons:
● The first is related to the well-being of the almost three million U.K. residents of Indian descent
living abroad,
● The second relates to the interests of a sizable migrant Indian population that visits Britain on a
yearly basis as tourists, businesspeople, professionals, students, spouses, parents, and other
family members.
● The Indian economy in the United Kingdom is booming. There are 800 Indian companies in the
nation, which is more than all of Europe put together. Indian businesses create 110,000 jobs,
according to the India Tracker 2016 report, which was commissioned by the Confederation of
Indian Industry (CII). The number of Indian businesses growing at more than 10%, the essential
requirement for being listed, has nearly doubled this year compared to last.

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● The U.K. Council for International Student Affairs reports that the number of Indian students
studying at British universities has already decreased from 22,385 in 2012–2013 to 18,320 in
2014–2015 as a result of work-related visa restrictions.
● However, Indian companies and financial institutions are taking precautions. The Economic
Research Department of the State Bank of India published a research that said Brexit would
benefit India. In this setting, the Commonwealth's importance has grown.

RECENT DEVELOPMENT IN INDIA & EUROPE RELATIONS

Arctic Region
The Arctic Council is made up of eight Arctic States: Canada, the Kingdom of Denmark, Finland,
Iceland, Norway, Russia, Sweden, and the United States.
The Arctic Ocean and its surrounding continent have drawn significant interest from the world's
scientific community and are a major research priority for decision-makers.
The Arctic has an impact on the earth's ecosystem's
biogeochemical, oceanic, and atmospheric cycles.
India’s Arctic Policy
India's Arctic policy titled 'India and the Arctic: building
a partnership for sustainable development’ lays down
six pillars:
Enhancing Indian scientific collaboration and
research
Environmental and climate protection
Human and economic development
Connectivity and transportation
International collaboration and governance
Building up national capabilities in the Arctic.
The inter-ministerial Empowered Arctic Strategy Group
would be a part of an effective governance and review
system to carry out India's Arctic policy.
Numerous parties, including the academic world, the scientific community, business, and industry,
will be involved in the implementation of India's Arctic policy.

The India-Nordic Relations

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About Nordic Countries
● It is a region in Northern Europe
and the North Atlantic, both
geographically and culturally.
● It encompasses the Faroe
Islands, Greenland, the
autonomous province of Aland,
and the sovereign states of
Denmark, Finland, Iceland,
Norway, and Sweden.
● In several national performance
indicators, such as education,
economic competitiveness, civil
rights, quality of life, and human
development, the Nordic
countries are grouped close to
the top.

India – Nordic Countries Relations

● India urged Nordic businesses to invest in the Blue Economy sector, particularly the Sagarmala
project.
● Health Sector: Both parties talked about working together to establish a health infrastructure and
conduct collaborative research on vaccines.
● Nordic sovereign wealth funds were invited to make investments in India.
● The world's largest emitters of greenhouse gases will be guided by a Leadership Group on Industry
Transition, which will be established under an India-Sweden effort.
○ It now has 16 nations and 19 companies as members.
● Water bodies: The two leaders also discussed working together to create and restore India's water
bodies.

India-Nordic Relation’s Significance

● The increase of India-Nordic collaboration in the Arctic region is made possible by India's Arctic
Policy.
● The blue economy can lead to higher food security, better nutrition, and the creation of new jobs.
● A robust cooperation between India and the Nordic nations can support trade and investment
that is profitable for both parties as well as innovation, economic growth, and climate-friendly
solutions.
● United Nations Security Council: The Nordic nations reaffirmed their support for India being a
permanent member of an updated and expanded UNSC.
● India committed to collaborating with other nations to combat climate change, address it, and
save the environment.
○ They reaffirmed their dedication to ambitious collaboration on energy efficiency, smart grids,
and renewable energy.
● India has over $5 billion in bilateral trade with the Nordic region (2020–21), and over $3 billion
in cumulative FDI.
● Both parties are eager to restructure the UN, including the Security Council, the World Trade
Organization (WTO), and to increase cooperation on global health concerns like pandemic
preparedness.

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First Nordic Summit, 2018
● The leadership focused on global security, economic growth, innovation, and climate change
during the summit's first iteration in 2018, highlighting innovation and digital transformation as
growth drivers.
● The inaugural summit attempted to examine how the application could be expanded to include
New Delhi's major initiatives like Make in India, Startup India, Digital India, and Clean India, as
well as how to support India's Smart Cities project with funding from the Nordic Sustainable Cities
Project.
● The Nordic nations welcomed India's request to join the Nuclear Suppliers' Group during the first
summit.

Second Nordic Summit, 2022

The prime ministers of Denmark, Norway, Sweden, Iceland, and Finland recently met with their
counterparts from India.
● During the meetings, ideas for strengthening bilateral ties were discussed as well as perspectives
on local and international events were shared.
● The gathering was planned to coincide with the second India-Nordic Summit in Copenhagen,
Denmark.

Highlights of the Meeting

● India and Iceland: Both addressed ways to deepen economic links, particularly in the fields of
geothermal energy, the blue economy, the Arctic, alternative energy sources, fishing, food
processing, higher education, including online institutions, and culture.
○ The topic of advancing trade discussions between India and the European Free Trade
Association (EFTA) was also discussed.
● India and Finland: Both have discussed ways to deepen their collaboration in cutting-edge areas
like artificial intelligence, quantum computing, future mobile technologies, renewable technology,
and smart grids.
○ In particular, the Indian market offers significant prospects in telecom infrastructure and
digital revolutions, and the Indian PM asked Finnish enterprises to collaborate with Indian
companies and take advantage of these opportunities.
● India and Norway: discussion included the blue economy, green hydrogen, solar and wind
projects, green shipping, fisheries, water management, rainwater harvesting, space cooperation,
long-term infrastructure investment, health, and culture.
○ The Indian Prime Minister argued that Norway is an important tenet of India's recently
unveiled Arctic Policy.
● India-Sweden: During the meeting, the two presidents reviewed the Joint Action Plan's
development and expressed their appreciation for the initiative's growing breadth, the Leadership
Group on Industry Transition (LeadIT), which they had jointly launched.
○ A Leadership Group on Industry Transition (LeadIT) will be established in September 2019 at
the UN Climate Action Summit as part of a collaborative global initiative between Sweden and
India to help lead the world's largest emitters of greenhouse gases toward a low-carbon
economy.
○ The two countries adopted a comprehensive Joint Action Plan to advance a wide range of
initiatives in defence, trade and investment, renewable energy, smart cities, women's skill
development, space and science, healthcare, etc. during Prime Minister Modi's 2018 visit to
Sweden.

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● India and Denmark: To strengthen bilateral ties, they spoke about a wide range of topics of
common interest, such as the conflict in Ukraine, their free trade agreement with the EU, and the
situation in the Indo-Pacific.
○ A decision was made to focus on green hydrogen, renewable energy, and wastewater
management in order to further develop the green strategic partnership.

General Data Protection Regulation (GDPR) & its implication for India
European Union’s General Data Protection Regulation (GDPR):
● A data-related rule known as the General Data Protection Regulation (GDPR) is in effect for
businesses doing
business in the
European Union.
● The GDPR mechanism is
applicable to all
processing operations
involving personal data,
including those carried
out by both public and
private organisations.
● It has drawn flak for
being overly strict and
placing onerous
requirements on
companies that process
data.
● Additionally, it specifies
a few exceptions to the
rule of law, such as those connected to national security, defence, public safety, etc.
● This law gives the person significant rights in dealing with
○ Data controllers: A government or private news website are examples of those who decide
why and how data is collected.
○ Data processors are those that handle data on behalf of controllers, such as an Indian IT
company that received data analytics outsourcing from an EU company.

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Principles of GDPR
● Lawfulness, fairness and transparency. Data subjects must be clearly informed about how their
data will be used.
● Purpose limitation. Data can be collected only for specific purposes.
● Data minimization. The amount of data collected is limited to what is necessary for specific
processing.
● Organizations collecting data must ensure its accuracy and update it as necessary. Data must be
deleted or changed when a data subject makes such a request.
● Storage limitation: Collected data won't be retained longer than needed.
● Integrity and confidentiality. Appropriate protection measures must be applied to personal data
to ensure its secure and protected against theft or unauthorized use.
● Data collectors are responsible for ensuring compliance with the GDPR.

The seven principles of the GDPR underlie specific data subject rights, including:
● Right to be forgotten: Data subjects can request PII to be erased from a company's storage. The
company has the right to refuse requests if it can successfully demonstrate a legal basis for their
refusal.
● Right of access: Data subjects can review the data an organization has stored about them.
● Right to object: Data subjects can refuse permission for a company to use or process the subject's
personal data. The company can ignore the refusal if it can satisfy one of the legal conditions for
processing the subject's personal data but must notify the subject and explain the reasoning
behind doing so.
● Right to rectification: Data subjects can expect inaccurate personal information to be corrected.
● Right of portability: Data subjects can access the personal data a company has about them and
transfer it.

Concerns for European data protection rule:

● In order to safeguard EU individuals' personal data in the emerging digital environment, GDPR will
supersede the Data Protection Directive of 1995.

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● All international businesses with activities or clients in the EU are required to comply because the
rule applies to all of the EU member states and their nationals.
● The ITeS, BPO, and pharmaceutical industries in India heavily rely on the European market.
● Germany and France, the top two EU members, are expected to have an IT market worth $155-
220 billion.

Implications of the new regulation

● Companies that target data subjects in the EU with their operations will also be subject to the
restrictions.
● A natural person's genetic, mental, economic, cultural, or social identity, as well as location
information and IP addresses, are now clearly included in the definition of personal data. Personal
data rights for individuals will be strengthened.
● The right to be forgotten, the right to data portability, and the right to object to profiling are some
of the new rights. Data processing requires the freely provided agreement of the consumer.

Implications on India
● The GDPR has worldwide repercussions since it applies to people outside the EU who either watch
how EU citizens behave or sell them products and services.
● India's greatest economic partner is the European Union, with bilateral trade in services alone
exceeding €28 billion (Rs.2.2 lakh crore).
○ As a result, it will significantly affect Indian IT companies and other service providers doing
business in the EU.
● However, only one-third of Indian IT companies are preparing for the GDPR, and a second third
are not aware of the regulation.
● This will probably result in penalties, lost revenue, missed opportunities, and political bickering in
trade negotiations between India and the EU.

Repercussions for not complying with GDPR

● A maximum fine for breaking the laws is 20 million euros, which is equal to 4% of an organization's
annual global income, whichever is higher.

Positives to EUs GDPR

● Due to GDPR, Indian businesses would probably have to pay higher compliance expenses or risk
severe fines if they fail to comply. However, they might consider it a business opportunity.
● Additionally, the Srikrishna Committee in India has suggested a data protection framework in
response to the Supreme Court's ruling. Of course, it is still unclear if the legislation will meet the
requirements outlined in the GDPR.

What should Indian companies prepare for the EU GDPR?

● They should, among other things, assess their relationships with third-party contractors, their
contracts with employees, and their policies, procedures, and current privacy programmes.
● Additionally, Indian businesses must assess their readiness to handle the audit process and
employ the proper digital tools to get ready for it.

The influx of refugees into Europe

The European refugee crisis, often known as the migrant crisis, was a time when many people
immigrated to mainland Europe. The majority of the migrants came from the Middle East and North
Africa, where they were trying to escape the wars that were sweeping these continents.

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Background of the European Refugee Crisis
● The migrant crisis was a component of a pattern of rising forced migration to the European Union
from other continents, which is believed to have started in 2014.
● The bulk of migrants at their peak in 2015 were of the Syrian, Afghan, and Iraqi nationalities.
Report from the UNHCR's High Commissioner for Refugees attests to this.
● Many of the refugees that travelled to Italy and Greece were from nations where there were active
hostilities, most notably the Syrian Civil War and the Iraqi Conflict.
● 58% of the migrants who entered Europe by water in 2015 were males older than 18, compared
to 17% females older than 18, and 25% under 18.
● The European Union announced the refugee crisis to be over in 2019, yet significant efforts to
resettle them are still ongoing.

Probable reasons that led to the Refugee Crisis

● The Middle East is now the most unstable and unstable region on the earth as a result of ongoing
dictatorship-style regimes and Islamic fundamentalism.
○ This is because there are several nations in the Middle East that are dominated by Islamic
fundamentalists. In order to guarantee a consistent supply of oil for themselves and to take
part in the Gulf Boom that started in the early 1980s, the Western countries have always
adopted a partial stance on these issues.
● The refugee crisis has given Europe a wake-up call about the realities of its conflicts in numerous
MENA regions (Middle East and North African region).
○ The situation did not get better despite their ability to assassinate or overthrow dictator
leaders during the battles that occurred in these nations.
○ Though the infrastructure and living conditions were already at a deplorable level, the war
made them even worse.
○ As a result, the inhabitants of these regions started searching for greener pastures, which they
found in Europe; this marked the start of the refugee crisis.
● The conflict in Libya has contributed to a significant increase in the number of refugees.
○ Civil war and pro-democracy movements are also major elements. We observe that there are
many people who have been compelled to escape their homes if we consider the refugee crisis
to be a catastrophe that started with the joint war waged by the United States and the United
Kingdom to liberate Iraq.
● Europe, or, to use a more cliched term, the "West," which includes the United States, because the
nations that caused this crisis are also the ones that must suffer the consequences. This is
demonstrated through a brief and cursory examination of history.
○ One could say that the Middle East is the holy grail of the Western world since two American
gentlemen discovered the unexpected oil discovery in Saudi Arabia.
○ Undoubtedly beneficial to locals as well as the millions of Asian and African immigrants who
moved in the Middle East, it also cleared the way for a geopolitical catastrophe that has
persisted in the area.
● The issue has reached a completely new level as a result of the rise of ISIS.
○ Western powers' attempts to instal stable governments in these countries were
unsuccessful. People have endured the atrocities carried out by ISIS or weak regimes backed
by the West, on the one hand.
○ On the other hand, people have experienced tyranny, poverty, and famine. They had to start
the protracted trek to Europe if they were to have any hope of surviving. As a result, one of
the biggest recorded emigration occurrences in history began.

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● The Shia-Sunni dispute also played a role in making things worse by dividing people, societies,
and governments, which in turn sparked several conflicts.
○ This is one of the main causes of why so many Palestinians have previously been forced to flee
their homes during wars with Iraq and Iran, Iraq and Kuwait, and other conflicts.

Which Country in Europe has Most Refugees?

● The following list of European Union nations with the highest refugee populations as of the end
of 2014 comes from the UNHCR, the United Nations High Commissioner for Refugees.
○ France
○ Germany
○ Sweden
○ Great Britain

Recent Development in the issue

● The far-right government in Italy has adopted a cabinet order that sets stricter regulations on
humanitarian ships that save migrants at sea.
● These regulations will make it more difficult for such ships to save as many people as they can,
and they come with harsh consequences for breaking them.
● Over the past 30 years, the number of migrants looking for safety on Italian soil has increased.
According to figures from the World Bank, compared to 1990, when they made up 2.5% of the
whole population, international migrants made up roughly 9.5% of the overall population in
2015.
● Numerous political and economic problems in West Asia and Africa have also contributed to an
increase in "illegal migration," or undocumented migrants and asylum seekers sneaking into Italy.
● Migrants frequently face serious risks. For instance, one typical route used by migrants to enter
Italy involves a perilous Mediterranean Sea passage from either North Africa or Turkey.
● As a result of the influx of migrants into Italy, social tensions have increased and immigration
has emerged as a contentious political issue.
● Consequences:
○ Several charities and NGOs are currently conducting rescue operations off the coast of Italy in
an effort to find migrants whose frail boats may have capsized in rough seas. These rescue
ships typically run for days at a time, performing numerous rescues and perhaps
transporting hundreds of people.
○ Italy's new rule will force captains to turn around as soon as they perform even one rescue,
which might have fatal repercussions.
○ Finding one floating survivor in the water may indicate that there are many more in the area.
The new regulation in Italy, however, will prevent rescue vessels from conducting any more
search efforts. In accordance with the new rule, the captains are also required to let the
survivors know that "they can appeal for international protection anywhere in the European
Union."
○ Captains who violate these regulations face fines of up to 50,000 euros ($53,175), and
persistent infractions may result in the vessel being impounded.

India-EU FTA or the BTIA

BTIA (Broad-based Trade and Investment Agreement)
● Numerous aspects of trade in commodities, services, and investments are covered by the BTIA
broad trade arrangement.

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● India is one of the EU's key trading partners, if not its biggest, as it accounted for 13.5% of all trade
in 2015–2016. The BTIA is crucial for both the EU and India, as a result.
● The Broad-based Trade and Investment Agreement has been under discussion for decades
between India and the European Union.
● The conversations cover a wide range of topics, including investments, market access, and tariff
reductions.
● Recent developments like the Brexit and the termination of other international investment
treaties may directly affect the BTIA, and talks are likely to pick back up in the future years.

Background
● India is an obvious partner for an EU Free Sanitary and Phytosanitary Measures
Trade Agreement (FTA) given its rapid Sanitary and phytosanitary (SPS) precautions are
expansion, complementing trade baskets, those used to safeguard against pollutants,
and relatively high level of market diseases, and pests that may affect people,
protection. animals, and plants.
● In its report from the EU-India High Level Every nation has policies in place to protect
Trade Group in October 2006, the EU and consumers from foodborne illness and to stop the
India outlined the parameters for an spread of pests and illnesses among plants and
ambitious FTA. animals.
● 16 rounds of negotiations have taken Both locally produced food and imported goods
place since the free trade agreement that come from other nations are subject to
between India and the EU began to be sanitary (human and animal health) and
negotiated back in 2007. Negotiations phytosanitary (plant health) standards.
were put on hold following the final round These phytosanitary and sanitary measures may
in 2013. be in the following forms:
● Since 2013, these trade, investment, and mandating that goods come from a region free of
intellectual property-related sickness, product inspection, specialised handling
negotiations have been impassed. or processing, Determining the maximum levels of
● The EU favours stricter sanitary and pesticide residues that are acceptable or allowing
phytosanitary regulations as well as the use of just specific additives in food.
investor-state dispute settlement (ISDS)
rules.
● Things have become even more complicated as a result of India's recent unilateral cancellation
of bilateral investment treaties (BITs) with numerous EU members, including Germany.
○ This has many European businesses concerned about the protection of their investments in
India.
● India had unilaterally terminated BITs with most EU members in 2017, asking them to revise the
agreement in accordance with a new model BIT that was approved by the Cabinet in December
2015.
● According to the Indian Model BIT, foreign investors must pursue their claims in domestic courts
for at least five years before turning to an international tribunal.
○ In contrast, the ISDS clause in the EU-Singapore FTA (2013) allows investors to choose
whether to take a dispute with a host state to the national court of the nation where the
investment was made or to international arbitration.

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● India countered the EU's request to postpone this termination with a scaled-back BTIA that
included an investment chapter and temporarily avoided sensitive topics.
● The EU, however, disagreed. The subject was brought up once more during the meeting of the
two top trade negotiators.
● Both parties agreed to reopen talks for the BTIA during the 14th India-EU Summit, which took
place in Delhi in October 2017.
○ In it was discussed a path ahead for the two sides protracted free trade agreement
negotiations after months of impasse. Finding a path ahead to resume negotiations is more
important than starting again with the BTIA negotiations.

Demands from each other

● Since May 2013, the negotiations for the deal have been stalled since both parties have yet to
close significant gaps on important issues like:
○ Rights to intellectual property,
○ Reduced taxes on alcohol and automobiles
○ liberal visa policy
● Disagreements between the two parties
over professional progress must be resolved.
India has to have a flexible visa policy in this
situation.
● The EU wants a robust intellectual property
regime in addition to considerable tariff
reductions on vehicles, wines, spirits, and
dairy products.
● India is requesting that the EU grant it the
designation of "data secure nation."
○ The nation is one of those that the EU
considers to not have data security.
○ The issue is important because it will
affect Indian IT businesses' desire for
market access.

The India-Meeting on BTIA Talks: Recent

Developments
● India and EU re-launched Free Trade
Agreement negotiations after 9-years in a
joint event held at the EU headquarters in
Brussels in 2022.
● Additionally, negotiations for a
Geographical Indicators (GIs) Agreement
and a stand-alone Investment Protection Agreement (IPA) were started.
○ To boost investor trust, IPA would offer a legal framework for international ventures.
○ A transparent and predictable regulatory environment is anticipated to be established by
the GI Pact, facilitating trade of GI goods like handicrafts and agricultural commodities.
● 52 technical sessions spanning 18 FTA policy areas as well as seven sessions on investment
protection and GIs were held during the first round.
● Trade discussions: Based on the values of fairness and reciprocity, both parties seek broad-based,
balanced, all-encompassing trade negotiations.

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● Trade: In 2021–2022, India and the EU had bilateral trade of $116.36 billion.
● After the US, the EU is currently India's second-largest commercial partner and the second-largest
market for its exports.

Significance
● The trade agreement will increase economic prospects for our firms, diversify and secure supply
chains, and benefit our citizens greatly.
● India's efforts to use its expanding home economy and middle class to bolster its ascent as a global
economic force will be strengthened by the FTA.
● According to the EU, the free trade agreement (FTA) with India will improve its position in global
trade governance and further its goal of using FTAs to promote partner nations' integration into
the global economy.
● From India's perspective, it will support the "Make in India" initiative and the desire to position
India as a regional manufacturing powerhouse and global hub.
● An agreement that has been successfully concluded will increase commerce and investment
between the two regions. India's primary source of technology transfer is the EU.

Irritants (Challenges) between India-EU (FTA)

● Difference: Expectations between Europe and India differ on topics including tariffs on imports of
vehicles, wines, and dairy goods from the EU, as well as on the easing of the visa requirements for
Indian professionals entering the EU.
● WTO trade disputes: The EU and India have even engaged in WTO trade disputes over alcoholic
beverages and pharmaceuticals.
● Restrictions on foreign direct investment (FDI): Rules governing FDI in insurance, wholesale
commerce, and single-brand retail have subsequently been modified, but tariffs on products like
vehicles and wine continue to range from 60 to 100%.
● Although advantages are anticipated from the liberalisation of the services sector, India will be a
net loser from the FTA in terms of trade in products due to the loss of revenues from lower or
zero tariffs.
● Effects on welfare: Liberalizing trade in products would have conflicting effects on welfare.
● Regulations and standards of the EU have an impact on India as well, particularly with regard to
agricultural exports.
● Data-secure nation: Despite modifying its information technology act in 2000 and publishing new
information technology rules in 2011 in accordance with the "safe harbour" principles adopted by
the United States, India is not currently regarded as a data-secure nation under EU law.
● Professionals from India with advanced degrees: India's goal is to reform to enable professionals
from India with advanced degrees to temporarily reside and work in EU member states. Increased
access to the EU services market would be beneficial for Indian enterprises if professional mobility
regulations were liberalised.
● Coverage: It is unclear if it will cover deeper types of integration like investment and competition
policy or just trade in goods.
● Restrictive measures: The need that 15 categories of IT and consumer electronics devices be
registered in India has drawn criticism from the EU.
● The requirement for in-country testing and certification of telecom network components is a
comparable problem.

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A road map for India-EU ties

Early 1960s saw the beginning of contacts between India and the European Union, with one of the
first nations to do so being India. The two nations' connection went beyond trade and economic
cooperation after they signed a cooperation pact in 1994. In June 2000, the first summit between India
and the EU represented a turning point in the development of the relationship.
Strategic Ties
● The partnership was upgraded to a "Strategic Partnership" at the 5th India-EU Summit in The
Hague in 2004.
● The two parties adopted a Joint Action Plan in 2005 (which was reviewed in 2008) that called for
expanding trade and investment, fostering cross-cultural understanding, and developing
discussion and consultation mechanisms in the political and economic realms.

Typical road map

● A shared road plan was provided at the 15th India-EU Summit in July 2020 to direct cooperative
activity and further solidify the cooperation over the ensuing five years.
● The road map stresses collaboration in five areas: trade and economy, sustainable modernization
partnership, global governance, and people-to-people ties. Foreign policy and security
cooperation is also highlighted.

Economic Ties
● Since then, the India-EU alliance has rapidly expanded. In 2021–2022, two-way trade was worth
around $116 billion.
● After the United States, the EU is India's second-largest commercial partner and the second-
largest market for its exports.
● In the nation, 6,000 European businesses support 6.7 million jobs both directly and indirectly.

Defense industry
● Defense sector collaboration with the EU has also significantly risen.

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● It is crucial for India right now to lessen its reliance on Russian hardware in light of the situation
in the Ukraine and strive to diversify its armament purchases from other regions with cutting-edge
technologies in the wake of its battle with China.
● Regular cooperative military and naval drills between India and the EU demonstrate their
commitment to the Indo-Pacific region's free, open, inclusive, and rules-based order.

Further opportunities for cooperation

● The EU and India can cooperate in a number of ways. For instance, India and Denmark's "green
strategic relationship" attempts to address pollution, biodiversity loss, and climate change.
● The green technology and industry transformation that are essential for sustainable and inclusive
growth were the main topics of discussion at the India-Nordic Summit in May 2022.
● All of this will stimulate further cooperation between the two regions.
● The start-up and innovation ecosystem in India and Europe is another fast expanding area of
collaboration.
● The two's Joint Steering Committee on Science and Technology has a particular interest in fields
including earth sciences, artificial intelligence, and healthcare.
● The European Atomic Energy Community and the Government of India signed a deal in 2020 to
cooperate in research and development for nuclear energy's non-military applications.

Advancing steps
● Both parties have recently taken more initiative to deepen their connection with one another.
● The Free Trade Agreement's completion date has been set for 2023–2024.

Concerns
● In several sectors, the two nations hold contrasting views and have different interests.
● One point of contention has been India's hesitation to expressly denounce Russia's action in
Ukraine and the nation's growing economic partnership with Russia.
● India has criticised the EU for applying different standards to the same matter given that the EU
will import 45% of its gas from Russia in 2021.
● The EU's approach to countering China's ascent is likewise unclear.
● A prime example is how it behaved when there was a fight in Galwan.
● The EU may skillfully use India's economic, political, and demographic weight to balance out
China's influence throughout the region. However, there appears to be considerable hesitation in
this.

Impact of Ukrainian crisis’ on European Economy

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About
● The Ukraine conflict has reached a
breaking point as Russia launched a
full-scale invasion to "demilitarise"
and "denazify" Ukraine in response
to its recognition of rebel regions in
eastern Ukraine (the Donbas
region)—Donetsk and Luhansk.
● Russia continues to be India's largest
and most reliable supplier of military
gear, but the US, the EU, and the UK
are also important allies that India
cannot afford to alienate.
● A reasonable course of action is to
continue with the balanced strategy
that India has up to this point, taking
into account its strategic interests.

Impact of War on Europe

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Effect of this conflict on India
● Cooking gas, gasoline, and other fuel costs will surge for Indian households and companies as a
result of the Russia-Ukraine situation. Increased fuel costs raise the cost of shipping and
transportation.
● Depending on how long oil prices remain high, the tensions may cast doubt on the reliability of
the RBI's inflation forecasts and cause problems with the government's budget calculations,
notably the fiscal deficit.
● The rise in crude oil prices will result in higher oil import bills for India, and gold imports could
increase again, further depressing the currency.
● India's imports of Russian petroleum products make up a small portion of the overall oil import
expenditure and are so replaceable.
○ However, finding other supplies for sunflower oil and fertilisers might not be that simple.
● Less than 1% of India's overall exports go to Russia, however shipments to the Commonwealth
of Independent States (CIS) and tea exports may encounter difficulties.
● Increased freight costs could also reduce the competitiveness of exports as a whole.

Future after the war

● However, the global economy is today highly integrated, unlike during the Cold War. The
consequences of a protracted confrontation are too high, especially when considering the pain
and deaths now occurring in Ukraine.

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● A slowdown brought on by a battle would be disastrous for the world, which is still recovering
from the Covid-19 pandemic, which primarily affected the poorest nations and populations.
● Russia has a responsibility to carry out a cease-fire so that talks can resume between the two
parties. Escalation is not a possibility.
● New Security Order for Europe: Without defending the strategy used by Russia to "right" the
perceived "wrongs," it can be argued that the current crisis is the outcome of a flawed security
system in Europe.
● A lasting security order must be driven from inside and must take into account contemporary
realities; it cannot only be a continuation of the Cold War regime.
● Furthermore, a European order that does not address Russia's concerns through sincere
engagement cannot be long-term stable.
● Restarting the Minsk Peace Process: Restarting the Minsk peace process is an effective way to
resolve the issue.
● Because of this, the West (the US and other western nations) should encourage both sides to pick
up the pace of negotiations and adhere to their Minsk Agreement pledges in order to restore
some measure of calm along the border.

INDIA-AFRICA

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Background
● Peninsular India was once a part of the merged "Super-Continent" known as "Gondwanaland,"
which was once a part of Africa. When the continental drift process began around 200 million
years ago, the area split off from the African continent and moved northeast until it met South
Asia.
● For millennia, the East Coast of Africa and India have been connected by trade and interactions
through the Arabian Peninsula and Indian Ocean route.
● The Aksum empire was created in what is now Ethiopia and Eritrea in the first century CE, and at
that time trade links between India and Africa were already well-established.
● Both parties experienced something similar with the advent of European colonialism.

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● The British sent tens of thousands of Indian labourers to places like South Africa and Kenya to
build the Kenyan Railway.
● Mahatma Gandhi, who stayed and worked in South Africa and later served as an inspiration for
the African National Congress, also served as the leader of the liberation movement in India.
● Following India's independence, Prime Minister Nehru emphasised the solidarity between Afro-
Asians, which was notably evident during the Asian-African summit at Bandung in 1955.
● The Non-Aligned Movement (NAM) saw a significant increase in African participation as a result,
and the continent's nations are united in their opposition to colonialism and imperialism.
● 1960 is known as the Year of Africa because a number of occasions, including the independence
of 17 African countries, brought attention to the increasing Pan-African sentiments on the
continent.
● India played a vital role in the UN's peacekeeping operations in Africa, such as those in the
Belgian Congo, on behalf of the African colonies (ONUC 1960-64).
● In addition, India has consistently taken a principled anti-apartheid position.
● India and Africa have a great chance to collaborate for mutual benefit due to their shared
economic concerns and complementarities in resources and capacity.
● Nevertheless, relations with Africa stalled as India became bogged down in its own problems.
● It's been suggested that China has surpassed India in Africa over the past 20 years.
● Since its inception in 2008 and its most recent iteration in 2015, the India-Africa Forum Summit
(IAFS) demonstrates the growth of connections between India and Africa.
● The 52nd Annual General Meeting of the African Development Bank (AfDB) was held in
Gandhinagar, India, in May 2017.
● African Union, a continental union made up of 55 African nations, was established in 2001. Adis
Abeba (Ethiopia) serves as its headquarters.
● There are currently eight recognised regional economic communities in Africa that serve as the
foundation for the African Union, among a variety of other regional economic communities. AMU,
CEN-SAD, COMESA, EAC, ECCAS, ECOWAS, IGAD, and SADC are the eight groups mentioned.
● It is the second-largest and second-most populous continent in the globe, with 54 countries. In
2015, the global GDP was $2.8 trillion.
● With its rapidly expanding population, rising economy, and untapped mineral and agricultural
richness, Africa is referred to as the last remaining El-dorado.
● The future of humanity depends on relations between the continent and major economies with
the fastest growth rates in the globe.
● Although the recent global downturn has had an impact on India's trade and investment growth,
the long-term trajectory is still positive.
● African nations can contribute significantly to the argument for UN Security Council membership.
● Similarities: Both India and Africa have a colonial past as well as a comparable developmental
trajectory and setbacks.
● Complementarities: Africa's desire for development and India's growing demand for African
commodities.
● Multilateral collaboration:
○ Brazil, South Africa, India and China grouping (BASIC),
○ India-Brazil-South Africa Dialogue Forum (IBSA),
○ Brazil, Russia, India, China, and South Africa. (BRICS)
● Capacity building/Development Partnerships:
○ The Jugaad spirit and Indian technology's applicability to Africa
○ It is commonly known that India is a particularly good development partner for Africa.
○ Pan Africa E-Network

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 ○ ITEC scholarships
○ India’s contribution towards Ebola, Public Health.
● Urbanization, industrialization, youth population, and poverty are socioeconomic similarities.
● Relations are primarily driven by private operators, such as market forces and middlemen, which
has led to steady but slow relationship growth. Africa's developmental trajectory can be advanced
by finding solutions to India's problems.
● India imports crude oil from Africa.

Areas of Cooperation
Politics Cooperation
● India and Africa have frequently shared leadership roles in international forums and collaborated
to further the interests of other emerging nations.
● They have worked to protect the food and livelihood concerns of farmers at the Doha
Development Round of WTO negotiations and have advanced joint proposals, such as the
Agricultural Framework Proposal and Protection of Geographical Indications, at the World Trade
Organization (WTO) and World Intellectual Property Organization.
● India and Africa will "enhance cooperation through training and collective negotiations on global
trade issues, including at the WTO to protect and promote the legitimate interests of developing
countries, especially the LDCs [least developed countries]," according to the "Framework for
Strategic Cooperation," the Third India-Africa Forum Summit's outcome document.
● The India–Africa Forum Summit (IAFS) is the official platform for the African-Indian relations
● It is held once in every three years beginning from 2008
● Currently, India and South Africa are also currently pressing for a waiver of certain provisions of
the Trade Related Intellectual Property Rights for COVID-19 treatment and vaccines.

Economic Cooperation
● The bilateral commerce between India and Africa has been continuously increasing year after
year, with the trade volume reaching US$55.9 billion in 2020–21.
○ With an estimated $70 billion in annual merchandise trade, or approximately 10% of India's
total worldwide trade, Africa is already a significant economic partner for that country.
○ India's exports to the rest of the world have mostly remained flat, although those to Africa
have increased.
● India has made total investments of US$54 billion, making it the fifth largest investor in Africa.
● The extent of India's development assistance to Africa has likewise expanded quickly.
● In order to finance the construction of railway lines, electricity and irrigation projects, farm
mechanisation projects, among others, India started using concessional lines of credit (LoC) in
2003.
● The LoCs are demand-driven and extended on the basis of the principle of mutual benefit —
recipient countries benefit from the development, while the LoCs assist in opening up new
markets for Indian businesses, promoting export growth, fostering goodwill with nations that are
important sources of resources like food and energy, and improving the country's reputation
abroad.
● Through the Export Import (EXIM) Bank of India, India has approved 182 Letter of Credit (LoC)
projects in Africa so far, with a total credit commitment of roughly US$ 10.5 billion.
● Demand for Indian goods and services, particularly foodstuffs, finished goods (automobiles,
pharmaceuticals, consumer goods), IT/IT-Enabled Services, healthcare and education, skill
development, managerial experience, banking, financial services, and insurance, still exists in
Africa.

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● India can assist in developing the necessary architecture for the African Union Commission,
including uniform external tariffs, a competition policy, intellectual property rights, and the free
movement of natural persons.
● African Continental Free Trade Area (AfCFTA)
○ The AfCFTA agreement was adopted and opened for signature on 21st March 2018 in Kigali.
The AfCTA entered into force on 30 May 2019.
○ AfCFTA seeks to create a single continental market for goods and services, with free movement
of business persons and investments, and thus pave the way for accelerating the
establishment of the Continental Customs Union and the African customs union.
○ The AfCFTA preliminary work is on steps such as incremental tariff reduction, elimination of
non-tariff barriers, supply chains and dispute settlement.
○ It establishes the largest free trade area in the world since the creation of the World Trade
Organization in 1995.
○ In a world becoming increasingly dependent on African markets and commodities, AfCFTA will
have a global impact.
○ The AfCFTA aims to boost intra-African commerce by 52.3% when it is implemented.
○ Once the AfCFTA is accepted as a beneficial game changer, India can contemplate an India-
African FTA.

Development Cooperation
● After two centuries of colonial domination, India was poor and underdeveloped, but immediately
after gaining independence, it started a concerted campaign to support African development.
● Launched in 1964 to teach other developing nations from across the world what India has learned
about development, the Indian Technical and Economic Cooperation (ITEC) programme is now a
key component of India's overall development cooperation strategy.
○ Approximately 98 Indian colleges currently provide training programmes in subjects like
agriculture, food and fertiliser, engineering and technology, and environment and climate
change.
○ ITEC also manages and organises defence training programmes, study tours, disaster relief
assistance, the deputation of Indian professionals overseas, and project-based collaboration
in addition to civilian training programmes.
○ The programme primarily benefits Africa, with roughly 50% of the ITEC seats earmarked for
nations across the continent.
● Building techno-economic capacity has also been a focus of India-Africa collaboration.
○ All summits of the India-Africa Forum focused heavily on skill development and capacity
building.
● Additionally, India revealed the Asian Africa Growth Corridor Vision Document, which was
created in collaboration with Japanese and Indian think tanks.
○ The corridor will put an emphasis on creating cooperation projects, good infrastructure,
institutional connectivity, skill development, and inter-personal relationships.
● According to India, its cooperation with Africa combines India's development goals with those
of the African Union's and the continent's Agenda 2063, as well as other development initiatives.

Information Technology Cooperation

● Given the importance of the information and communication technology (ICT) sector to India's
economic story and the priority that most African leaders place on the development of the ICT
sector, this is a crucial pillar of India's technical cooperation with Africa.

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● The Pan African e-Network was an innovative project that was created in 2009 to use Indian IT
knowledge to improve healthcare and educational facilities in 53 African nations.
● Utilizing its skills in information technology, India has contributed $100 million to the Pan-African
E-Network in an effort to reduce the continent's digital gap.
● e-VidyaBharti and e-ArogyaBharti (e-VBAB), the second phase of this programme, was launched
in 2018 with the goal of offering free tele-education to 4,000 African students annually for five
years and continuing medical education to 1000 African physicians, paramedics, and nurses.
○ The Pan-African e-Network Project's E-VBAB Network Project is largely a technological
improvement and expansion.
○ By connecting educational institutions and hospitals in India with those from the partnering
African countries, the Project intends to deliver tele-education and telemedicine.
○ The government of India is fully funding the e-VBAB Network Project, and any of our African
partner nations are welcome to participate.
● Additionally, a number of prosperous businesses focused on digital technology have also been
able to establish strongholds in the area.
● Recently, an Indian microblogging network startup called Koo managed to develop a sizable
following and an active user base in Nigeria after that country's government outlawed Twitter.

Defence and Security Cooperation

India's lengthy involvement in UN peacekeeping operations has actively contributed to the efforts to
uphold peace and security in Africa.
● In the past, India has offered to train African security personnel at its various defence training
academies. It has also assisted in the development of infrastructure and training programmes in
nations like Ethiopia, Nigeria, Mauritius, Zambia, Ghana, Sudan, Botswana, South Africa,
Tanzania, Egypt, and Lesotho.
● The Indian navy has been performing patrol operations in the Gulf of Aden for the past few years,
and it has successfully escorted over 2,400 vessels there.
● Additionally, it has promised to support the African-led force in Mali and the African Union mission
in Somalia.
● The 2nd India-Africa Defence Dialogue (IADD) was held on the sidelines of DefExpo 2022 in
Gandhinagar, Gujarat.
○ The Gandhinagar Declaration was approved as an IADD 2022 result document.
○ By increasing training slots and deputising training teams, empowering and strengthening
the defence forces of Africa, taking part in exercises, and providing aid during natural
disasters, it seeks to improve collaboration in training in all areas of shared interest.
○ A volume on India–Africa Defence cooperation was also released.

India and Africa Program for Security Fellowships:

● IADD additionally promoted additional study of security-related topics by providing fellowships to
specialists from African nations.
● The India-Africa Security Fellowship Program would be used for this.

Climate Change Cooperation

● The International Solar Alliance was founded by India, and nearly half of its members are from
Africa.
● For the implementation of off-grid solar energy projects, India has announced a LoC worth US$ 2
billion over five years to Africa.

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● Additionally, India is working to develop solar power systems throughout the Sahel region to
provide electricity to roughly half of Africa's 600 million people who are currently without access
to the grid.

Energy Cooperation
● A major organisation that has pushed the quick advancement of renewable energy technologies
is the International Solar Alliance.
● The "One Sun One World One Grid" programme, which aims to further promote solar and
renewable energy, came after this.
● Clean and green energy have taken centre stage in recent years in both third country partnerships
as well as India's development programmes in Africa.

COVID-19 Assistance
● India sent 150 tonnes of medical aid to 32 African nations.
● Many of them also used vaccines that were "Made in India," whether they were imported from
India or not.
● India has joined forces to advocate for fair and inexpensive access to vaccinations in international
fora, including through a TRIPS waiver.

Loan and Assistance:

● India has extended concessional loans of over USD 12.3 billion to Africa.
● In addition, India has granted USD 700 millions of grant assistance.

Importance of Africa
● Africa is one of the world's growth hotspots since it is home to more than half a dozen of the
nations with the fastest economic growth this decade, including Rwanda, Senegal, Tanzania, and
others.
● In the last ten years, real GDP growth in Africa and Sub-Saharan Africa has been more than twice
as fast as it was in the 1980s and 1990s.
● With a population of over one billion people and a GDP of 2.5 trillion dollars, the African continent
offers a sizable market.
● Africa is a country with abundant natural resources, including metals like gold and other metals,
leather, gas, pulses and lentils, and crude oil, all of which India does not have access to in adequate
amounts.
● Africa can play a significant part in India's energy matrix as it seeks to diversify its oil supplies away
from the Middle East.

Challenges
● China Effect
○ India and China are in competition with one another in Africa. The trade surplus between China
and Africa is $220 billion. Djibouti served as the location of China's first military outpost.
○ The formation of relationships depends on increased connectedness and face-to-face
interaction. For instance, unprovoked assaults against African nationals in India have been a
cause for concern; such incidents should be handled with zero tolerance in India.
○ In the end, both regions should work together to create a just, representative, and egalitarian
international order that gives one-third of humankind a voice, much as India and Africa did to
fight colonialism.
● Social Tensions

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 ○ Due to racial, religious, and governance issues in some countries, foreign donors are reluctant
to enter the region.
● Internal instability
○ The prospect for long-term investment in India may be impacted by internal political upheaval
in some African nations. For instance, South Sudan has been plagued by civil war since 2013.
● Terrorism
○ Extremists with ties to Al-Qaida and ISIS have drastically intensified their terrorist attacks
across Africa in recent years. India has previously sent soldiers and weaponry to numerous
African countries and has plans to do so in the future in order to combat the menace of
terrorism and uphold security and unity.

SECOND INDIA-AFRICA DEFENCE DIALOGUE (IADD)

The Indian Defence Minister recently addressed the second India-Africa Defence Dialogue (IADD).
About
● In Gandhinagar, Gujarat, DefExpo 2022 was co-located with the India-Africa Defence Dialogue.
● The second India-Africa Defense Dialogue has the following as its central theme: "Adopting
methods for synergizing and boosting defence and security cooperation."
● To improve collaboration in the areas of training and military exercises, the Gandhinagar
Declaration was adopted.

Dialogue Highlights
● The defence minister suggested that India and African nations may investigate brand-new fields
like maritime security, capacity building, cyber security training, and counterterrorism.
○ He also extended an invitation to African nations to investigate Indian defence technologies
and gear.
○ The minister claimed that the Indian defence sector was prepared to meet African demands.
● Africa Field Training Exercise in India:
○ In the first quarter of 2019, the next iteration of the Africa India Field Training Exercise will
take place.
○ The most recent event took place in 2019.
○ India has assisted African partners in establishing defence training facilities and provided
assistance for counterinsurgency education.
● Expanding the UN Security Council:
○ During the discussion, India's defence minister stated that his country does not adhere to the
global system that is based on hierarchy (UNSC).
○ Along with the other African nations, India urged for the democratisation of the global order
during the discussion.

CONTRIBUTION OF INDIAN DIASPORA IN VARIOUS FIELDS IN AFRICA

A nation's pride is symbolised by its diasporas, who represent it abroad. Through their impressive
success stories, they contribute to increasing the value of the nation abroad. It is now widely
acknowledged that the diaspora can promote Indian soft power, advocate for India's national
interests, and boost the country's economy.
● Geographically, India is connected with the African continent, therefore our cultural ties to the
continent run deep.
● Relationships between India and Africa, especially in trade, can be traced back to the Ethiopian
Aksumite Empire (100–940 AD). There were several reasons for these trade relationships and

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 despite their geographical separation, these nations’ economies and social requirements were
similar.
● Also, the coast of the Horn of Africa was an important trading route between India, Egypt, and
the Roman Empire and the periodic changes in the Indian monsoon made it easier for trade to
occur.
● The waves of Indian Diaspora in Africa can be broadly divided into four parts;
○ Pre-colonial migration of Persons of Indian Origin towards Africa,
○ During colonial time,
○ Postcolonial time, and
○ The present context.
● In pre-colonial times, Indian coastal communities developed good ties with East Africa, East
Asia, and Central Asia. The ‘trade Diaspora’ was distinguished as it consisted mainly of ‘temporary’
and ‘circular’ migration.
● They were sent to look for trade elsewhere but expected to return to their motherland eventually.
International trade allowed people from different cultures to learn about and appreciate one
another. Many South Asian merchants began migrating outside Asia in the eighteenth century.
● The second phase of migration; into Africa by Indians came due to colonization. Significant
clusters of Indians were taken as indentured labourers across the colonial empires in the
nineteenth and early twentieth centuries.
● It is important to note that some Indians emigrated to serve colonial administrations abroad in
the capacities of clerks and instructors, expanding the reach of colonial power.
○ About 769,427 Indians are estimated to have emigrated to Mauritius, South Africa, Seychelles,
and the East African area between 1829 and 1924.
○ After numerous African nations became independent in the 1960s, many Indians in the
professional classes served in Africa in countries like Ethiopia and Nigeria as instructors in
schools and universities, railways, mines and hospitals.
○ Such persons were not settlers but were seeking to put their skills toward creating personal
financial security.
○ Others saw opportunities in the African marketplace for entrepreneurism and acquired rapid
fortunes in import trading.
● In South Africa, where the number of Indian-origin persons is most prominent in the continent,
the descendants of indentured labour became educated and upwardly mobile.
● They gained merit as doctors and lawyers during the freedom movement in defending the cause
of African political prisoners.
● People from India reside in 46 different African countries. Indians in Africa constitute 12.37
percent of all Indians who have moved away from India over time. The number of people from
India who live in different parts of the continent varies greatly. For example, 70 percent of the
people living in Mauritius are from the Indian Diaspora. In Nigeria, more than 800,000 Indians
live and own about 100,000 businesses there.
● Trade was the prominent reason for the Indian migration and brought cultural connection too.
○ During the colonial period of the 19th century, British and French colonies brought Indians as
indentured labor for railway construction work, and later, they became residents of the host
countries.
● During the liberation of African countries, Indians supported Africa, and Mahatma Gandhi
played a significant role in fighting against racial discrimination in South Africa.
● Jawaharlal Nehru promoted the non-alignment movement and supported south-south
cooperation with African leaders like Julius Nyerere and Kwame Nkrumah. Later, Nelson Mandela

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 was a big supporter of the Indian Diasporas and when he became the first president of South
Africa, he appointed several Indians to the South African parliament.
● Our cultural and art, historical and geographical linkage is the most prominent evidence for the
close connection with Africa. Indian Diaspora communities play the most significant role in Africa
regarding economic development and political transformation.
○ Indian private businesses have been at the forefront of Africa’s economic boom in recent
years, profoundly influencing how the Indian government sees its Diaspora.
● India’s growing political and economic interests in Africa and Indian Diaspora would play a big
role in making robust partnership with the African countries and will also help to understand
African current requirements and their cultural knowledge.
● Once every two years, the Indian Diaspora gathers for Pravasi Bharatiya Divas to renew links with
their homeland and foster greater cooperation between the Indian government and the Diaspora.
● In addition, several initiatives, such as “Mission,” have been launched by the Indian government
to re-establish communication between the Indian Diaspora in Africa with its motherland India.
● In the 21st century, existing international institutions have accelerated the unification of the
world’s economies, societies, and cultures. The cultural and trade ties between India and Africa
date back to over three thousand years and today through the links of diaspora the ties between
the two countries have strengthened.

INDIA’S FOREIGN DIRECT INVESTMENT (FDI) IN AFRICA’S HYDROCARBON SECTOR

Because it gives African exporters access to a foreign market and aids India in meeting its energy
demands, India's petroleum-related FDI and commerce with Africa might be mutually beneficial.
● India is interested in Africa because of its growing refining capabilities
● Indian public and private sector oil corporations have increased their foreign interests in oil and
gas reserves throughout Africa.
● Strengthening bilateral ties is crucial for India's marine security.
● India's trade and investment in Africa's hydrocarbons industry may prove to be less effective
economically over the medium and long term, despite the mutually advantageous partnership in
the near term.

Challenges
● Solar energy is predicted to be more affordable than even the cheapest fossil fuels, thanks to
technological advancements in renewable energy.
● The price is predicted to be negatively impacted by increased government efforts to control and
limit carbon emissions, enact "carbon taxes" as deterrents, and move government subsidies from
fossil fuels to renewables.
● The extraction of fossil fuels requires growing amounts of energy input relative to energy
production, which causes the petroleum industry to experience "diminishing returns."
● This research reveals that while trade in African hydrocarbons and FDI from India may benefit one
another's interests in the short term, they may result in considerable financial liabilities over the
medium to long term.
● It might be more financially advantageous to think about moving such assets to other industries
with strong growth prospects.

CHINA’S GROWING FOOTPRINT IN AFRICA AND ITS CHALLENGE FOR INDIA

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China is now working on
infrastructure projects in 35
different African nations. Angola,
Nigeria, and Sudan are countries with
a concentration of projects. China,
though, is preparing a fresh slate of
initiatives in other nations,
particularly in the Democratic
Republic of the Congo (DRC). The
operations of the nation are mostly
split between the ICT sector and the
two primary sectors of power
generation (particularly
hydropower) and transportation
(notably railroads) (mainly
equipment supply). The least amount
of activity was centred around water
initiatives. China has huge demand
for African ivory, abalone,
rhinoceros’ tusk and materials from
other endangered species. This has
taken a significant toll on
conservation efforts.

China’s growing Footprint

● Strategic Establishments:
○ In the Horn of Africa, which includes Eritrea, Ethiopia, Somalia, Djibouti, and Kenya, China
has a special envoy. It demonstrates the strategic value of the Indian Ocean to China.
■ China declared its three goals for Africa in January 2022: containing the epidemic, putting
the FOCAC outcomes into practice, and defending shared interests while opposing
hegemonic politics.
■ The Horn as a whole participated in the 2021 forum, and four resolutions were approved:
● FOCAC's eighth ministerial conference's declaration: The Dakar Declaration of the Eighth
Ministerial Conference of FOCAC was unanimously adopted by both parties under the theme
"Deepen China-Africa Partnership and Promote Sustainable Development to Build a China-Africa
Community with a Shared Future in the New Era" and their shared commitment to the growth of
FOCAC and the deepening of the China-Africa comprehensive strategic and cooperative
partnership. The FOCAC encourages China's contribution to the Horn's socioeconomic and
infrastructure development.
● The Dakar Action Plan: The Forum has been strongly promoting the development of relations
between China and Africa over the past 21 years since its inception, according to the two sides,
who also believe that it has become an important benchmark for international cooperation with
Africa. The two sides applaud the development of relations between China and Africa.
● Vision 2035 for China-Africa Cooperation: It was created to establish the goals and orientations
of China and Africa's medium- and long-term cooperation and to advance the development of a
stronger community with a shared destiny.

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● Sino-African Climate Change Declaration: It seeks to improve coordination and collaboration in
the multilateral climate process and collectively protect the legitimate rights and interests of
China, Africa, and other developing nations.
○ Military installations: Since 2017, Beijing has maintained a facility in Djibouti with 400 PLA
soldiers, near to French and American installations.
○ Railways: The Ethiopian capital Addis Ababa and Djibouti are connected by a railway line
constructed by the Chinese.
● Infrastructure Establishment
○ Chinese firms tended to capture the larger civil works contracts.
■ The average size of a civil works contract awarded to a Chinese contractor was US$6 million
in the case of the African Development Fund (an ADB affiliated structure) and US$11
million in the case of the International Development Association arm of the World Bank,
compared to more typical contract values of US$3 to 4 million.
○ Overall, about 70 percent of the value of contracts won by Chinese firms under multilateral
projects was accounted for by just four countries:
■ Ethiopia,
■ Mozambique,
■ Tanzania, and
■ The DRC
○ Kenya: Significant Belt and Road initiatives have been launched by China in Kenya. At the port
city of Mombasa, a ceremony marking the completion of an oil terminal built by Chinese
engineers recently took place.
○ Comoros Islands: China has provided a lot of development aid to the Comoros Islands, which
are off the coast of Mozambique.
○ Tanzania: The 1,860-km Tanzania-Zambia railway, the first transnational railroad in Africa, was
the first Chinese infrastructure undertaking on the continent.
○ Zambia: In addition to transporting passengers, it also shipped ore from copper mines in
Zambia to the Tanzanian port city of Dar es Salaam.
● Financial Assistance to the African Countries
○ South Africa, the Democratic Republic of the Congo, Angola, Ethiopia, and Zambia are the top
five African countries that have received Chinese investments.
○ China is investing in transportation, scientific research, and the services industry, however
mining and infrastructure development projects account for the majority of its investments in
African nations.
○ China has been Africa's top trading partner for a decade. Undoubtedly, China benefits greatly
from the trade balance.
○ According to the "China-Africa Annual Economic and Commerce Relationship Report 2021,"
two-way trade reached $ 187 billion in 2020.
● Major Accomplishment
○ China's current top political concern is the Taiwan question.
○ With the help of African countries, China was able to join the UN in 1971 and take over
Taiwan's seat.
○ Numerous nations in Africa, including Algeria, Egypt, Ethiopia, and Zambia, have emphasised
how much they support the "one-China policy".

Concerns of India over China’s Presence

● Dominance in the Indian Ocean:

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 ○ As one of China's "string of pearls" of military alliances and assets around India, along with
Bangladesh, Myanmar, and Sri Lanka, Djibouti, which is located on the northwestern margin
of the Indian Ocean, might join the group.
○ In recent days, China has increased activities in the Indian Ocean, which India believes to be
within its sphere of influence, citing freedom of navigation and anti-piracy patrols. The Indian
Navy has been compelled to increase surveillance of the critical seas.
● China aims to exert control over Important Shipping Routes
○ 80% of the world's oil and a third of the world's bulk cargo are transported along the maritime
channels of the Indian Ocean. China wants to protect its commercial and energy transit
linkages along the important shipping route.
● Influencing Indian Ocean nations:
○ Nations aiming for a stronger role in international affairs are increasingly using the Indian
Ocean as a proving ground. China is investing in facilities including ports, roads, and trains in
an effort to gain favour and influence among the nations of the Indian Ocean.
○ Building ports and other infrastructure in Sri Lanka, Bangladesh, and Pakistan is part of China's
strategy to increase its influence in the Indian Ocean.
● Expanding through OBOR:
○ China's ambitious One Belt, One Road (OBOR) programme to create a new Silk Route places a
lot of emphasis on the Indian Ocean.
○ India has avoided using OBOR as its focal point.

Challenges for India

● India and China stand far apart in terms of the size of their economies. India’s US$2.7 trillion
versus China’s US$14 trillion which acts as a roadblock for New Delhi to make further inroads in
African nations.
● According to United Nations trade data, 39 African countries imported more than US$71 billion
worth of goods from China in 2017 and only US$21 billion from India.
● African nations are unwilling to choose between China and India because of the accruing benefits
and investments from both nations.
● China’s Belt and Road Initiative aims at connecting Asia with Africa and Europe through land and
maritime routes which would enable regional integration and growth in trade and commerce as
well as China’s Monopoly.
● China in the last few years has been strengthening its presence and influence in Africa, as well
as some of the African littoral states in the Indian Ocean.

STRATEGIC PARTNERSHIP BETWEEN INDIA AND SOUTH AFRICA

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Background
● India’s links with the struggle for freedom and justice in South Africa date back to the period during
which Mahatma Gandhi started his Satyagraha movement in South Africa over a century ago.
● India was also at the forefront of the international community in its support to the anti-apartheid
movement; it was the first country to sever trade relations with the apartheid Government (in
1946) and subsequently imposed a complete - diplomatic, commercial, cultural and sports -
embargo on South Africa.
○ India worked consistently to put the issue of apartheid on the agenda of the UN, NAM and
other multilateral organizations and for the imposition of comprehensive international
sanctions against South Africa.
○ The African National Congress (ANC) maintained a representative office in New Delhi from the
1960s onwards. India actively worked for the AFRICA Fund to sustain the struggle through
support to the frontline countries.

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 ○ Following talks between the then South African Government and the ANC, India’s relations
with South Africa were restored after a gap of over four decades with the opening of a Cultural
Centre in Johannesburg in May 1993.
○ An Agreement establishing full diplomatic and consular relations with South Africa was
signed on 22 November 1993 during the visit of the then South African Foreign Minister, Pik
Botha, to India.
○ A Consulate General was thereafter established in Johannesburg. The Indian High
Commission in Pretoria was opened in May 1994, followed by the opening of the Consulate
General in Durban the same month.
○ Since Parliament in South Africa meets in Cape Town, a permanent office of the High
Commission was opened there in 1996, which has been re-designated as Consulate General of
India with effect from January 2011.
● South Africa established its High Commission in Delhi and opened a Consulate General in Mumbai
in April 1994.
● The Red Fort Statement for Strategic Alliance, signed in 1997, served to solidify this partnership
over time, and 2017 commemorated the 20th anniversary of that declaration.
● In addition to the Tshwane Declaration, cooperation was improved in 2006 in a number of areas,
including education, railroads, science and technology, and visa policies.

Major Area of Co-operation

Political Cooperation
● India and South Africa established a strategic partnership in March 1997. 2017 marked 20 years
of our Strategic Partnership and 2018 marked 25 years since the re-establishment of diplomatic
relations with South Africa.
● 2018 also marked 125 years since the Pietermaritzburg ‘incident’ involving Mahatma Gandhi.
● Against the background of India’s consistent support to the anti-apartheid struggle, there has
been a steady consolidation of our close and friendly ties with South Africa, both bilaterally and
through BRICS, IBSA etc.
● A number of bilateral agreements have been concluded between the two countries since the
assumption of diplomatic relations in 1993 in diverse areas ranging from economic and
commercial cooperation, defence, culture, heath, human settlements, public administration and
science and technology.
● India’s Technical and Economic Cooperation Programme (ITEC) has been a useful medium of
promoting cooperation in development of human resources.

Defence Cooperation
● The Defence Cooperation between India and South Africa officially commenced in 1996 with the
signing of an MoU on “Cooperation in the field of Defence Equipment” which was replaced by an
MoU on “Defence Cooperation” in 2000.
● Consequently, an India-South Africa Joint Defence Committee (JDC) co-chaired by the Defence
Secretaries of both countries was instituted.
● Indian Navy Ships Tarkash and Kolkata visited Cape Town from 1 to 13 October 2018 and
participated in the 6th IBSA Maritime Exercise (IBSAMAR).
● INSV Tarini visited Cape Town from 2-14 March 2018 as part of Navika Sagar Parikrama.
● The South African Army participated in the Multinational Field Training Exercise for African
Nations conducted by Indian Army at Pune in March 2019.
● South Africa was also part of the second India-Africa Defence Dialogue (IADD) 2022 took place
in Gandhinagar, India.

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Skill Development
● To address the shortage of skills among South Africans which is a national priority of the
Government of South Africa, an MoU on the setting up of the “Gandhi-Mandela Centre of
Specialisation for Artisan Skills” (GMCoS) in South Africa was signed during the Prime Minister’s
visit to South Africa in July 2018.
○ The Centre, with the collaboration of Hindustan Machine Tools Limited (HMTL) will offer
technical expertise, training material, machines and equipment as well as interactive ICT
equipment for video conferencing in a multi-skills formation comprising of four skills such as
mechanical fitter, electrician, boilermaker and millwright for all of which there is demand in
South Africa.

Science and Technology Cooperation

● The Department of Science and Technology of both countries have collaborated, especially in the
Square Kilometer Array (SKA) project.

Commercial & Economic Co-operations

● Indian activity is largely led by the private sector, as opposed to China’s state-led approach.
● Even though significantly smaller in quantum, the Indian method is deemed by analysts to be more
beneficial in the long run.
● It prioritises local productivity, is more transparent and fosters skills that Africa needs, as opposed
to China’s ‘resource for cash’ approach.
● India’s strategy is further supported by the activities of the Indian Exim Bank, Confederation of
Indian Industry events and India-Africa conclaves.
● There are also important soft power tools that New Delhi can unlock in Africa.
○ Healthcare diplomacy was evident during the pandemic, as India donated vaccines to several
countries, reinforcing its comparative advantage as the ‘pharmacy of the world’. At a time
when Western powers were hoarding vaccines, this gained India goodwill across Africa.
● Major Indian exports to South Africa include vehicles and components, transport equipment,
drugs and pharmaceuticals, engineering goods, footwear, dyes and intermediates, chemicals,
textiles, rice, and gems and jewellery, etc.
● Major Indian imports from South Africa include gold, steam coal, copper ores & concentrates,
phosphoric acid, manganese ore, aluminium ingots & other minerals.
● India on 10 April 2020 facilitated the export of about 25 Million tablets of Paracetamol and 0.5
Million tablets of Hydroxychloroquine (200mg) to South Africa.

3-year Strategic Partnership Agreement 2019:

● A three-year agreement has been reached between the two nations to increase cooperation in
areas including agro-processed commodities, defence equipment, mining equipment, and
technology and financial services, including insurance, start-ups, healthcare and pharma, bio-tech,
IT, and IT-enabled industries.
● Both nations will work together in the gems and jewellery industry and may look into options for
acquiring diamonds directly. It will guarantee economies of scale and lower costs for buyers and
sellers alike.
● On projects related to agriculture, research and technology, commerce and investment, tourism,
leveraging the "blue economy," marine cooperation, and security cooperation.

Areas of Mutual Collaborations

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● Commerce and investment: The two nations now conduct over $10 billion in bilateral trade. To
encourage investment, the two nations signed the Double Taxation Avoidance Agreement
(DTAA) in 1998.
● Governmental organisations: Both nations are members of the BRICS, IBSA, IORA, G-20, and
other associations.
○ Both countries are dedicated to winning representation in an expanded UN Security Council in
order to achieve a more representative UN Security Council membership. Both are current full
members of the Commonwealth of Nations and were once British colonies.
● Global terrorism: Both nations are in favour of an early agreement and implementation of the UN
Comprehensive Convention on International Terrorism.
● Other areas of cooperation include naval engagement in the Indian Ocean region, training
initiatives to enhance skills (Indian Technical and Economic Cooperation), pharmaceutical welfare
mitigated by investments made by Indian enterprises, cooperation in the defence industry, etc.

India-South Africa Multilateral projects:

In order to obtain greater autonomy and make sure that the agenda of the "South" is prioritised, India
and South Africa have a long history of cooperating by coordinating their opinions and efforts in
institutions of global governance and multilateral fora.
● IBSA discussion forum
○ The Brasilia Declaration, a 2003 agreement between India, South Africa, and Brazil
establishing "South-South" cooperation, is predicated on the idea that the three countries are
regional powers of South Asia, Southern Africa, and South America.
○ In World Trade Organization discussions with Western nations, a tripartite free trade pact
served as a unified front (WTO).
○ In addition, it was agreed that both parties would back each other's candidature for permanent
membership with veto power on the United Nations Security Council.
○ The IBSA Dialogue Forum was established to encourage collaboration and agreement on
issues related to commerce, alleviation of poverty, intellectual property rights, social
development, agriculture, combating climate change, defence, education, energy, health
care, information society, science and technology, peaceful nuclear energy, tourism, and
transportation.
● BRICS
○ With the addition of South Africa, the previously recognised grouping of BRIC became BRICS
in 2010.
○ India and South Africa both recognise the BRICS Forum's significant contribution to the
transformation of the world's financial and economic system.
● G20
○ India and South Africa call on the international community to use monetary, fiscal, and
structural changes to kick-start the global economy and acknowledge the G20 as the principal
venue for cooperation in international financial and economic concerns.
● WTO
○ India and South Africa support the WTO as the only multilateral organisation dealing with
international trade and business, as well as the Doha Development Round's emphasis on the
development agenda.

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INDIA-EGYPT DEFENCE COOPERATION

Background
● India and Egypt, two of the oldest civilizations in the world, have a long history of close
engagement.
● Ashoka's edicts make reference to his interactions with Egypt under Ptolemy II even before the
Common Era.
● In modern times, Mahatma Gandhi and the Egyptian rebel Saad Zaghloul shared a desire for
freedom from British colonial authority. Three days after India gained her independence, the two
countries jointly announced the formation of ambassadorial-level diplomatic ties.
● President Gamal Abdel Nasser and Prime Minister Jawaharlal Nehru penned a friendship pact in
1955.
● The Non-Aligned Movement naturally sprang from this connection.
● Since the 1960s, the two nations have cooperated in the defence sector.

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● The partnership has a crucial element of training. The pilot training provided by India to the
Egyptian Air Force in the 1960s and 1970s is particularly significant.
● The two nations also worked together to produce the renowned Helwan HA-300 jet fighter in the
1960s.

Post-2000 Relation
● The Joint Defense Committee (JDC) was formally established in 2006, which pushed for more
defence cooperation.
○ The JDC was entrusted with figuring out potential defence cooperation areas. Since then, the
committee has held nine meetings
● Dating back to 2014: With frequent encounters at the leadership and ministerial levels, the two
nations' political cooperation has increased in 2015 as well.
○ President Sisi and Prime Minister Shri Narendra Modi met in September 2015 in New York for
the UNGA.
○ They discussed terrorism prevention, expanding economic ties, and regional challenges.
● The relationships have recently improved, as both delegations backed UN Security Council reform
during Egypt's tenure as a non-permanent member in 2016–17 and India's in 2021–22.
● Egypt is a crucial ally in the multilateral sphere. It is a conversation partner in the Shanghai
Cooperation Organization (SCO) and the Indian Ocean Rim Association (IORA), joined the BRICS
bank in 2021, and will be a guest nation when India hosts the G20 meeting in 2019.

Post-Covid Cooperation
● Recently, there has been a rise in bilateral engagements in the area of defence following the fall
in the COVID-19 epidemic.
● Desert Warrior, the first joint tactical air exercise between the Egyptian and Indian air forces, took
place in late October 2021.
● It offered a chance to highlight the Hindustan Aeronautics Limited-made Su-30 MKI and India's
proficiency in further localising spare parts and components.
● At the Air Chief level, there have been trips back and forth. Egypt's Air Force Chief Mahmoud
Foaad Abd El-Gawad visited New Delhi earlier this year after India's Air Chief Marshal V.R.
Chaudhari's trip to Cairo in 2021.
● Similar to this, Indian Navy ships have made multiple trips to Egypt.
● The biggest destroyer in the Indian Navy, the INS Kochi, paid a visit to Port Safaga in Egypt in June
2022.
● Along with the Egyptian Navy, INS Kochi took part in a maritime collaboration exercise.

Recent Development
● India has invited Egypt as a special guest for the G-20 summit which shows our age-old
relationship.
● The President of Egypt, Abdel Fattah el-Sisi, was the chief guest at the 74th Republic Day parade.
● In preparation for the 75th anniversary of diplomatic ties with India in 2022, Egypt recently
issued a postage stamp.
● The 75th anniversary of the two nations' establishment of diplomatic relations is being
commemorated.
● India and Egypt signed five MoUs covering culture, cooperation on youth matters, cyber security,
information and technology (IT) and public broadcasting.

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 ○ They reaffirmed their dedication to international law, multilateralism, the foundational
principles of the Non-Aligned Movement, and respect for the sovereignty and territorial
integrity of all governments. They also reaffirmed their commitment to multilateralism.
○ They decided to "initiate new engagements to strengthen military-to-military engagements"
and scheduled additional joint drills for the two nations' armed services.
○ They also agreed to increase communication between their respective National Security
Councils and combat terrorism in all its manifestations, "including cross-border terrorism."
○ They have stated that they are looking into the potential of giving Indian industries land in
the Suez Canal Economic Zone.
■ The Mediterranean Sea and the Red Sea are linked via the Suez Canal.
■ It is one of the principal commerce routes in the world. Currently, the trade route is
necessary to maintain the about 12% of daily global trade that travels through it.

Significance of the relation

● Egypt's pragmatism was also helpful to its relationship with India, particularly in the context of the
Nupur Sharma issue in 2022, when Cairo remained silent while certain Gulf nations were
outspoken in their opposition to India.
● Since 12% of all international traffic travels via the Suez Canal, Egypt, the most populous nation
in West Asia, holds a vital position and is a major player in the area.
○ It can serve as a gateway to both Europe and Africa and is a significant market for India.
● Furthermore, it has bilateral trade agreements with significant West Asian and African
countries.
● The two nations' collaboration will aid in the abolition of violence because the expansion of
extreme ideology, terrorism, and other forms of violence pose a severe threat to not only the
two nations but also to all other nations in the world.

INDIA-LATIN AMERICA RELATIONS

HISTORICAL AND GEOGRAPHICAL BACKGROUND OF LATIN AMERICA

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● Latin America is typically
believed to include the entire
South American continent, as
well as Mexico, Central
America, and the Caribbean
islands whose residents speak
Spanish, Portuguese, and
French.
● From the late 15th to the early
18th centuries, the inhabitants
of this sizable region saw
colonisation and conquest by
the Spanish and Portuguese,
as well as struggles for
independence from both
countries in the early 19th
century.
● It has been suggested that
Iberoamerica would be a
better word than Latin
America because the Spanish
and Portuguese influence on
the region's history was so
significant.
● Lesser Antilles, a lengthy
chain of little islands in the
Caribbean Sea that stretches from Grenada to the Virgin Islands in a north-south direction. Other
islands that are physiographically a part of the South American continental shelf but are typically
referred to as the Lesser Antilles include Trinidad and Tobago, which are off the northeastern
coast of Venezuela, and the east-west island chain that stretches from Margarita Island to Aruba,
which is off the country's northern coast.
○ The bigger Caribbean Sea islands of Cuba, Hispaniola (which includes Haiti and the Dominican
Republic), Puerto Rico, Jamaica, and the Cayman Islands are together referred to as the
Greater Antilles.

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● Since the beginning, the Spanish had focused their efforts on the Greater Antilles, leaving the
smaller islands largely uninhabited. Even some of the larger islands in the Spanish Caribbean were
underpopulated as improvements passed by.
○ Thus, throughout the course of the 17th century, the French and English were able to conquer
the tiny islands, Jamaica, and the western end of Hispaniola with the help of buccaneers of
their respective nations in order to cultivate tropical crops, especially sugar, for themselves.
● Most of Spanish and Portuguese America gained freedom very abruptly after three centuries of
colonial control.
○ Except for the Spanish colonies of Cuba and Puerto Rico, all of Latin America escaped the
control of the Iberian powers that had dominated the continent since the invasion between
1808 and 1826.
● The Monroe Doctrine was released by the USA on December 2nd, 1823.
○ This was an anti-European colonialism strategy in the Americas. Further attempts by European
countries to annex any independent state in North or South America would be seen as "the
expression of an unfriendly disposition toward the United States," according to the
document.
○ The theory was initially introduced by President James Monroe in his seventh annual State of
the Union speech to Congress. In 1850, the phrase "Monroe Doctrine" was first used.

INDIA AND LATIN AMERICA RELATIONS

● India must become more well-known internationally and broaden its influence in the area, which
has a combined GDP of $4.9 trillion, 600 million people, or roughly half the population of India,
and a landmass five times that of India.
● Over the previous seven decades, the Cold War era, world politics, physical distance, and mutually
incompatible priorities have all had an impact on the relationships.

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 ○ For many years, India and South America have just about managed to keep up minimum
bilateral relations.
● In place of strong geographic linkages, South America and India are united by a shared post-
colonial past.
○ Today, there are other factors besides economics that explain why India and South America
have strong bilateral ties, such as India's need to diversify its energy sources and a rising
Chinese influence in the region.
○ Reducing India's reliance on West Asia for its energy security is in its strategic best interest.
● India wants to expand the range of its exports to include more recent markets in the Caribbean
and Latin America.
● The Ministry of External Affairs has however emphasised the possibility of greater trade volumes:
"India's exports to Latin America are rising at a robust rate. There are devoted buyers for Indian
pharmaceuticals, cars, textiles, chemicals, machinery, and other value-added items all over the
region.”
● Indian businesses like UPL, Godrej, Hero, and others have invested in greenfield ventures or
purchased local businesses. In development and delivery centres located throughout Latin
America, more than a dozen Indian software companies work with a few dozen to several
thousand software workers.
● In an increasingly unstable and uncertain global climate, Latin America provides a vital alternative
source for our raw material needs as well as new markets for the export of our goods and
services with value added.

History of Relations
● The trips made by then-Prime Minister Indira Gandhi to eight Latin American nations in 1968 may
still be considered the pinnacle of Indian diplomacy with the continent.
● India and Latin American nations were both colonies of European powers. After achieving
independence, both adopted socialist policies, which did little to enhance relations.
● Many Latin America and the Caribbean (LAC) countries joined the Non-Aligned Movement
(NAM).
● India also supported LAC countries against US interventions in the UN and other multilateral
gatherings, but this did not address the deficit in the relationship.
● During his 2014 trip to Brazil for the BRICS Summit, Prime Minister Narendra Modi made a vow of
deeper engagement.
● After the BRICS Summit in 2014, Prime Minister Modi has not travelled to any Latin American
countries, and in 2016, he made history by missing the Non-Aligned Movement (NAM) Summit,
which was hosted by Venezuela that year.
● There hasn't been much political interaction either way; since 2014, only five presidents from
Latin America have visited India.

Major Area of Cooperation’s

Economic & Commercial
● In 2016–17, India traded $30 billion worth of goods with Latin America, of which $10.4 billion was
exported and $19.6 billion was imported.
● The decline in commodity prices that India imported from Latin America and the region's
recession in 2015 and 2016 are the primary causes of the decline in trade.
● Due to the drop in crude oil prices, from over $100 to less than $50, India's imports of crude oil
from the region decreased from $20 billion in 2014–15 to $9.5 billion in 2016–17. The amount of
imported crude has actually increased.

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● With a US$6.69 billion trade surplus, Brazil has surpassed Venezuela to take the top spot as
India's top trading partner. Trade with Venezuela was $5.8 billion, including $3 billion from
Argentina, $2.6 billion from Chile, $1.69 billion from Colombia, and $1.5 billion from Peru.
● The Indian government has given Cuba a $173 million Line of Credit for projects like a milk
powder processing factory, a bulk fertilizer blending plant, a power cogeneration project, and a
wind farm.
● Ecuador indicated interest in establishing a PTA with India in May 2017 in order to strengthen
commercial ties.
○ Colombia has also expressed interest in working with other nations in sectors including
agriculture and food processing.
○ South African Customs Union (SACU) comprises South Africa, Lesotho, Swaziland, Botswana
and Namibia. So far, 5 rounds of negotiations of India-SACU PTA have been held.
● India enjoys Preferential Trade Agreements (PTAs) with Chile and Mercosur—a South American
grouping consisting of Argentina, Brazil, Paraguay, and Uruguay—these are limited in scope and
cover a small percentage of bilateral trade, with slightly lower import duties rather than duty-free
access.
○ Unlike FTAs or Comprehensive Economic Partnership Agreements (CEPAs), PTAs do not
include investments, people-to-people exchanges, or services.
○ So far, New Delhi has yet to negotiate an FTA with Latin America and has not shown any
interest in doing so either.
○ Unfortunately, the region’s exclusion in New Delhi’s geoeconomics calculations is by design:
Latin America has always been the least visited region by Indian politicians, and the region
receives far less attention in Delhi in comparison to Asia (or any sub-region, including Central
Asia), Africa, and Europe.
● India and Peru have begun discussions over a PTA.
○ The PTA between India and Chile was expanded in 2016, with India granting reductions on
1,031 tariff lines while Chile offered some 1,798 tariff lines.
● India’s exports to Brazil at US $6.48 billion are more than the exports to Japan (US $6.1 billion) or
Thailand (US $5.7 billion)—both of which are FTA partners for India.
● Exports to Mexico at US $4.4 billion are more than exports to Canada (US $3.7 billion) or Russia
(US $3.2 billion).
● India-LAC trade nearly doubled over the past decade, reaching $42.5 billion in 2021 and there are
over 160 Indian companies present in LAC with investments exceeding $30 billion.
● Latin America remains one of the main export destinations for India’s cars, motorcycles,
pharmaceutical products, organic and inorganic chemicals, and textiles.
● Additionally, India imports vital resources from Latin America, including between 15 percent to
20 percent of India’s single-largest import item (crude petroleum oil), indispensable quantities
of minerals like copper, silver and gold, and vegetable oils.
● Indian companies are driven by two major factors to do business with Latin America:
○ Latin America lies in the ‘Goldilocks zone’ for international business—it is a sweet spot
between the highly regulated markets of the United States (US) and Europe, where
competition is fierce and quality standards remain high, and the less-regulated markets of
Africa, which have less purchasing power.
○ Latin America remains an important part of emerging markets globally, with a steady and
rising middle class. As a result, the region is the preferred export destination for India’s value-
added consumer products and inputs such as cars, motorcycles, pharmaceuticals, and
chemical products. Many Indian companies in these sectors hold considerable market share in
Latin America, and depend on the region for a healthy share of their global revenue.

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● Panama is blessed with probably the largest number of Diaspora from India in the entire LAC
region and has a dollarized economy.
○ Panama as “Hub of Hubs” is considered as the Bridge of the World and Heart of Universe. And
for India it could be exploited to connect logistics companies, Freight Forwarders, 3PL and 4PL
logistics services, including warehousing, value addition, and Supply Chain Management
○ Panama City is seen as the Banking and Finance Hub of Americas, therefore there is a need to
open branches of some Banks from India. Also, there is a need to have direct flight between
the two countries. In fact, Tocumen Intl Airport (Panama City) is directly connected to more
than 90 destinations, especially to all the airports of the LAC region.
○ Investment in agricultural lands, good ROI, re-export of Agri produce (including Teakwood and
Pine) to entire Americas, Europe and even to Asia (mainly Avocado, Coffee, Teak and Pine to
India).
● Argentina, Brazil, India, and Mexico are members of the G20, an intergovernmental grouping
which India will chair for the first time in 2023.
○ With Brazil hosting the G20 and the BRICS in 2024 and Argentina’s intention to join the BRICS,
opportunities for policy coordination and economic cooperation arise.

Food and Energy Security

● In addition to the region's abundance of fertile land, food security is a significant factor influencing
India's decision to expand its relations with Latin America.
● For instance, Brazil is a global leader in agriculture, boasting vast expanses of cultivable land as
well as state-of-the-art food storage facilities. A leader in agricultural research is also Argentina.
In the future, the two parties are prepared to establish more joint ventures and research
cooperation in this field.
● In recent years, Latin America has also emerged as a significant supplier of hydrocarbons for
India, accounting for 10% of the country's energy imports. India plans to expand its partnership
with Brazil in the area of environmentally friendly ethanol. Venezuela, Colombia, Mexico, and
Cuba are a few of the region's major oil suppliers to India.
● Recently, India is looking at the Latin American and Caribbean (LAC) region for energy security.
Due to the ongoing Russia-Ukraine war, India has requested the US help to recover its dues from
the sanction hit Venezuela.
● Also, India is Colombia’s third largest market for oil and ONGC Videsh has important investments
in oil fields in Colombia and an increasing collaboration with Ecopetrol, which is Colombia’s oil
company.
● The Caribbean nation is all set to overtake South American nation Brazil as top oil producer in the
region.
○ India has been making efforts to diversify its imports of crude from other countries since 2020.
India is in talks to buy more crude from Guyana and talks are on.

Defence
● Transnational Crime Organisation and Drug Trafficking Organisations are one of the most
significant threats that the entire region faces presently.
○ These organisations have evolved over time to become extremely organized in nature and are
heavily armed with the latest in weapons.
● To combat this menace, the police of specific drug control units in most Latin American countries
have become highly militarized, hence requiring similar logistical support in context of weapons,
tactile equipment, armoured vehicles and textile.

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● Indian companies which specialize in security equipment and technology, experts in cyber
security, small arms, patrol vessels, night vision equipment, and body armour will find a lot of
opportunities to export in the region.
● The Indian defence minister had unveiled around 75 technologies for the use by the Indian Armed
Forces as well as for civil usage. These technologies included dealing with cyber security too. Some
of these are meant to be exported to friendly nations.
● Following is some of the more notable sales of Indian defence goods in the Latin America:
● The donation of one Mahindra Rapid Intervention Vehicle and two Mahindra Rakshak armoured
vehicles to the Guyana Police Force.
● To the Honduran Army, 139 Ashok Leyland 4x4 trucks.
● To Belize, Uruguay, and Argentina with Mahindra 4x4 vehicles.
● The Chilean Carabineros Special Forces will receive 29 Mahindra Marksman vehicles.
● To Peru, two Dhruv helicopters of the civil model.
● Three Chetak helicopters to Suriname, and seven Dhruv helicopters to Ecuador.

Minerals:
● Copper and precious metals are imported from Chile and Peru; wood from Ecuador, etc.
● Raw Gold imports in 2017-18 were 2 billion dollars. Argentina, Bolivia and Chile together have the
most deposits of Lithium in the world. This region is also known as the Lithium triangle.

SIGNIFICANCE OF LATIN AMERICA

● Increasing energy demand: Latin America is of importance to New Delhi because of India's rising
energy needs and desire for foreign investment. After all, the area is rich in natural resources for
extraction.
● Important markets: Indian enterprises are eager to penetrate Latin America's sizable market given
that three G20 economies—namely, Brazil, Mexico, and Argentina—are located there.
○ India's trade with Latin American nations has increased significantly over the past 20 years,
and the country has broadened its investment portfolio to include industries like
manufacturing and information technology (IT).
○ Additionally, the area has grown to be a significant market for the Indian automotive and
pharmaceutical sectors.
● China's growth in the region: According to analysts in India's strategic community, China is quickly
becoming a strategic and economic partner of Latin America, and India must start growing its own
presence there.
● India's rising power position, its economic expansion, as well as its soft power in the form of its
cultural and civilizational traditions, such as yoga, have found traction in Latin America, which is
to its advantage.

Significance of Indo-Latin American Ties

● Additionally, India exports generic medications worth $1 billion to Latin America, assisting these
nations in lowering the cost of healthcare.
○ Latin American local and international businesses have been under pressure to lower their
pricing as a result of the introduction of Indian generic medications over the past 20 years.
● A billion dollars has been invested in India by businesses from Latin America in industries like
soft beverages, multiplexes, theme parks, and auto components.
● Over a thousand Indian software engineers are employed by Latin American software
companies, which have established development and delivery centres there.
● Latin America has also become an important source of energy security for India.

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 ○ Presently, 20% of India's crude oil imports come from Brazil, Columbia, Mexico, and Venezuela.
● India surpassed China in 2012 to become the region's biggest consumer of Venezuelan oil.
● Defending the Area Against Chinese Expansion
○ Chinese imports clog their markets at the expense of local enterprises, which is why many
Latin American governments dislike them. Their increased reliance on Chinese capital is
another concern.
○ In contrast, there is seldom any criticism to India's small trade and investment activities. In the
long run, this gives New Delhi an unanticipated competitive edge over China.

CHINA FACTOR FOR INDIA IN THE REGION

China is becoming a more important role in the world, and the Indian government should be motivated
to take the necessary steps to strengthen India's ties with South America by the country's gradually
expanding presence and influence. Throughout the 21st century, India has exported more
pharmaceutical products to Latin America than China, with the sole exception of 2021, when Chinese
exports of COVID vaccines to the region outnumbered India’s. India’s presence in Latin America is
dwarfed by China’s.
● India’s annual trade of US$30 billion to US$50 billion with Latin America is a mere shadow of
China’s US$400 billion.
● Chinese investments in the region, estimated to be roughly US$159 billion, and their loans of
US$136 billion, can only be compared with the US and Europe.

China’s Growth in the region

● In 2017, China displaced the European Union (EU) as the region's second-largest trading partner,
surpassing the US to become the top destination for exports from nations including Brazil, Chile,
and Peru.
● China aims to become the dominant economic force in the region by 2025 with a target of
US$500 billion in trade and US$250 billion in investments.
● China has launched significant infrastructure projects in the area, including the Nicaragua Canal
project and the Bi-Oceanic Railway linking the ports of Santos in Brazil and Callao in Peru. In fact,
China is putting a high standard for other states to meet.
● China, a manufacturing powerhouse, has enormous needs for raw minerals, including copper,
iron, silver, and tin, all of which are found in abundance in Latin America.
● China further plans to import significant amounts of agricultural products from Latin American
nations, especially crops like soybean, to meet the demands of its expanding population.
● Greater Latin American engagement challenges the United States' long-held control in the region
on a symbolic level. Latin America has a lot to offer in terms of the economy. For instance, Beijing
looks to the area to provide its oil needs, with Brazil and Venezuela emerging as key players in
China's energy strategy.

India’s Growth in the region

● In the automobile sector, India supplies more cars to the region while China exports more
motorcycles and auto parts. However, Indian companies in the automobiles and auto parts sectors
invest more and provide more employment than their Chinese counterparts in the region.
● Indian IT companies, which were amongst the first from India to enter the Latin American
region, today employ more than 38,000 people in the region.
○ Although they initially sought to benefit from the ‘nearshoring’ model—to service clients in
the US and Canada—today they rely on Latin American clients.

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 ○ Indian IT companies even made inroads in smaller countries like Guatemala, where India’s HCL
Technologies employs 2,230 people.
○ These companies add significant value to the service sector and are a means to diversify away
from Latin America’s dependence on commodity exports.

Difference in approaches of India and China

● India enjoys heaps of goodwill
in the region, unlike China. But
India is a democracy that faces
challenges similar to Latin
American countries—of poverty
alleviation, infrastructure
development, frequent political
battles, and a constant cycle of
elections.
● China has for two decades
formulated and updated its Latin
America policy through official
white papers and special envoys,
while India has no official policy
for Latin America, a region resigned to the last of India’s three concentric circles of foreign policy.
India’s foreign policy is often framed as operating in three concentric circles.
○ The first circle refers to the neighbourhood (thus India’s ‘Neighbourhood first’ policy),
○ The second includes the extended neighbourhood, particularly Asia, as well as strategic
partners like the US and Russia, and,
○ The third and final circle includes the rest of the world, including Latin America.

Way Forward for India

● There are several situations when lessons can be learned. China ceased purchasing Argentine
soybean oil in April 2010, after Argentina imposed import restrictions on China. India quickly
increased their imports of this oil, saving Argentina's oil industry from suffering a significant
financial loss.
● Brazil, one of the BRICS nations, is also dealing with the fact that a much more powerful China is
attempting to use BRICS as an extension of its own economic clout. India can establish a much
more equal relationship with Brazil that will strengthen its reputation as a trustworthy global
stakeholder.
● Additionally, India's accession to the Pacific Alliance might strengthen its economic links with
the organisation and counterbalance China's ambitious Belt and Road Initiative.
○ Currently, Chile, Colombia, Mexico, and Peru are all Pacific Ocean-bound members of the
Pacific Alliance, a Latin American trading group. In the bloc, India was given "observer" status
in 2014.
● Latin America may be a willing partner for India as nationalism and anti-immigration attitudes
spread throughout the developed world.
● Given India’s renewed interest in FTAs and its outward-looking economic policies, this is an
opportune time for New Delhi to frame a Latin America policy that could be a win-win for India’s
automobile, pharmaceutical, IT, energy, and agricultural companies, while equally benefitting
Latin America’s commodity exporters and the region’s value-added manufacturing and service
sectors.

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REGIONAL INSTITUTIONS

MERCOSUR
● Mercosur is a sub-regional bloc of South
American Countries.
● Its purpose is to promote free trade and the fluid
movement of goods, people, and currency
● Its full members are Argentina, Brazil, Paraguay,
Uruguay and Venezuela.
● Its associate countries are Bolivia, Chile, Peru,
Colombia, Ecuador and Suriname.
● The Mercosur trading bloc was established in
1991.
● Headquarter: Montevideo (Uruguay).
● Brazil has asked India to expand its commercial
and multilateral footprints in South America by
expanding its relation with MERCOSUR.
● The South American economic bloc Mercosur has
suspended Venezuela from it for violating the bloc’s democratic principles and failing to meet its
basic standards. The membership was revoked by the Foreign Ministers of the four founding
members of Mercosur — Argentina, Brazil, Uruguay and Paraguay.

IBSA
Basics and Backgrounds
● IBSA is a unique Forum which was formalised by the Brasilia Declaration of 6 June 2003 and brings
together India, Brazil and South Africa, three large democracies and major economies from three
different continents, facing similar challenges.
● All three partners are developing, pluralistic, multicultural, multi-ethnic, multilingual and multi-
religious nations.
● Established in June 2003, IBSA is a coordinating mechanism amongst three emerging countries,
three multi ethnic and multicultural democracies.

Objective
● Contribute to the construction of a new international architecture
● Bring their voice together on global issues
● Deepen their ties in various areas
● IBSA also opens itself to concrete projects of cooperation and partnership with less developed
countries.

Principles
● The principles, norms and values underpinning the IBSA Dialogue Forum are participatory
democracy, respect for human rights and the Rule of Law.
● The strength of IBSA is the shared vision of the three countries that democracy and development
are mutually reinforcing and key to sustainable peace and stability.

Structure
● IBSA keeps an open and flexible structure.

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● IBSA does not have a headquarters or a permanent executive secretariat.
● At the highest level, it counts on the Summits of Heads of State and Government.

Initiatives of IBSA
● IBSA fund has formed various developing projects in needy countries like- Vietnam, Cambodia,
Burundi and so on.
● The external ministries of the three countries are actively supporting each other for a coordinated
grouping.
● India has been coordinating the IBSA Visiting Fellows Programme through the Delhi-based
Research and Information System for Developing Countries.

Cooperation of IBSA Countries

● Political Coordination
● Sector Cooperation, through 14 Working Groups
● IBSA Facility for Poverty and Hunger Alleviation (IBSA Fund)
● People-to-People fora (Involvement of other actors beyond the Executive, e.g., civil society)

IBSA’s Declaration on South South Cooperation

● SSC as a common endeavour of peoples and countries of the South. It notes the shared histories,
understanding and beliefs and developmental experiences of the global south.
● Developing Countries as developing Partners: Developing countries engaged in SSC are not
donors and recipients but developing partners.
● Solidarity and the spirit of sharing are the primary motivations for SSC.
● Voluntary in nature: SSC is voluntary in nature and not obligatory like Official Development
Assistance (ODA).
● Demand driven process: Partner countries determine the priorities in the SSC projects. Primary
responsibility towards development rests with the States themselves under their ownership and
leadership.
● Respect for national sovereignty is at the core of SSC. It is guided by principles of respect for
national sovereignty; national ownership and independence; equality; non-conditionality; non-
interference in domestic affairs; and mutual benefit.
● Complements North-South Cooperation: South-South Cooperation serves as a complement to
and not as a substitute for North-South cooperation, in supporting the acceleration of the
development agenda. It calls upon the global North to honour its ODA commitments fully, scale
up existing resources and commit additional resources to provide the necessary means to achieve
the goals of the Paris Agreement on Climate Change as well as implementing SDGs.

INDIA-BRAZIL-SOUTH AFRICA (IBSA) Dialogue Forum

● IBSA Dialogue Forum is an international tripartite grouping for promoting international
cooperation between India, Brazil and South Africa.
● IBSA was formally established by the Brasilia Declaration of 6 June 2003 by external affairs
ministers of India, Brazil and South Africa.
● It represents three important poles for galvanising South-South cooperation and greater
understanding between three important continents of the developing world namely, Africa, Asia
and South America, facing similar challenges.
IBSA Mechanism for Development Cooperation – IBSA Fund for the Alleviation of Poverty and
Hunger

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● It was set up with the objective of facilitating the execution of human development projects to
advance the fight against poverty and hunger in developing countries.
● Each member country contributes $1 Million annually to this fund.
● The IBSA Fund is managed by the United Nations Office for South-South Cooperation (UNOSSC).
● With a cumulative contribution of $35mn, IBSA Fund has thus far partnered 19 countries from the
Global South for implementing 26 projects over the last decade. 62.4 percent of the IBSA Fund has
been devoted to Least Developed Countries (LDCs).

Relevance of IBSA vis-à-vis BRICS

● Although IBSA’s visibility in international affairs pales against that of the yearly BRICS Summits,
the three IBSA members have identified themselves as partners because they share a set of
fundamental notions about global order.
● All three IBSA members are multiparty democracies and are thus able to freely debate how to
implement difficult reforms necessary to boost growth in a messy and complex political context.
These matters cannot be discussed openly at BRICS Summits.
● In the same way, issues related to human rights and civil society are not mentioned when the
BRICS meet. During the 2011 IBSA Summit, the Brazilian President succeeded in including the
“Responsibility While Protecting” (a concept that seeks to qualify and refine the “Responsibility
to Protect” concept) into the final declaration, something which it promptly failed to do several
months later at the 4th BRICS Summit due to Chinese and Russian opposition.
● As emerging countries that are not yet fully integrated in today’s international structures, they
all consider current structures to be unjust and in need of reform. While the degree of rejection
of some institutions differs – for example, India is far more hostile towards the Non-Proliferation
Treaty (NPT) than Brazil – all three agree that they deserve more institutional responsibility,
including permanent seats on the UN Security Council.
● IBSA provides an intimate setting undisturbed by at times strained bilateral ties – after all,
relations between India, Brazil and South Africa are simply too incipient to hit any meaningful
roadblocks or clashes of interest.

Way Forward
● Strengthening IBSA is a positive step for the BRICS perspective also.
● It will then strengthen the voice of BRICS in other international institutions and forums.
● As IBSA’s main aims are-to contribute to the construction of a new international architecture,
bring their voice together in the world and to deepen their ties in various areas; IBSA has definitely
its unique importance in the global south.

PYQs
Q. What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with
reference to stability in the Indo-Pacific region. (2020)

Q. ‘The time has come for India and Japan to build a strong contemporary relationship, one involving
global and strategic partnerships that will have a great significance for Asia and the world as a
whole.’ Comment. (2019)

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 Q. What introduces friction into the ties between India and the United States is that Washington is
still unable to find for India a position in its global strategy, which would satisfy India’s national self-
esteem and ambitions’. Explain with suitable examples. (2019)

Q. Economic ties between India and Japan while growing in recent years are still far below their
potential. Elucidate the policy constraints which are inhibiting this growth. (2013)

Q. “If the last few decades were of Asia’s growth story, the next few are expected to be of Africa’s.”
In the light of this statement, examine India’s influence in Africa in recent years. [2021]

Q. The newly tri-nation partnership AUKUS is aimed at countering China’s ambitions in the Indo-
Pacific region. Is it going to supersede the existing partnerships in the region? Discuss the strength
and impact of AUKUS in the present scenario. [2021]

Q. Indian diaspora has a decisive role to play in the politics and economy of America and European
Countries’. Comment with examples. [2020]

Q. Increasing interest of India in Africa has its pros and cons. Critically examine. [2015].

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INDIA-EUROPE
BACKGROUND
• The Treaty of Paris, signed
in 1951 by six members—
Belgium, France, West
Germany, Italy,
Luxembourg, and the
Netherlands—created the
European Coal and Steel
Community (ECSC).
• The European Economic
Community (EEC) and the
European Atomic Energy
Community (Euratom)
were established in 1957
as a result of the Treaties
of Rome, which also
vowed to forge a "ever
closer union" between the
six member states.
• The three communities'
institutions were legally
combined into the
European Community (EC)
in 1967, resulting in the
creation of a single
Commission, a single Council of Ministers, and the body that is now known as the European
Parliament.
• Initially, national parliaments chose the members of the European Parliament, but in 1979 the
first direct elections were held, and they have since taken place every five years.
• The Treaty of Maastricht on the European Union, which was signed in 1993, established the
groundwork for future kinds of co-operation in judicial and internal affairs, foreign and defence
policy, and the establishment of an economic and monetary union, which included the
introduction of a single currency.
• On January 1, 1999, a new currency known as the euro was introduced to the world's money
markets. All EU members save Denmark, Sweden, and the UK adopted the euro as their official
currency.

ABOUT EUROPEAN UNION

• The European Union, which consists of 28 nations from all over the continent of Europe.
• It has developed into a hybrid intergovernmental and supranational organisation.
• The EU commerce with the rest of the world accounts for almost 20% of worldwide exports and
imports despite having only 6,9% of the global population.
• A common currency: The Euro is used as a common currency by the 19 member countries of
the Eurozone, which is governed by the European Economic and Monetary Union (EMU).

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 ○ On January 1, 1999, the euro was adopted as the unified currency by the eleven member
nations. 2001 in Greece.
○ The euro has been adopted by Slovenia (2007), Cyprus and Malta (2008), Slovakia (2009),
Estonia (2011), Latvia (2014), and Lithuania (2015);
○ The adoption of the euro is mandated by EU treaties for the remaining 7 member states,
excluding the UK and Denmark, which have official opt-outs.
● The GDP PPP of the EU as a whole was $21.68 trillion (2021 est.).
● The EU is among the most prosperous regions in the world with a GDP Per Capita: of $38,411
(2021 est.).
● The Schengen Area is one of the EU's greatest accomplishments.
○ It is a region without internal boundaries, allowing residents, many non-EU nationalities,
businesspeople, and visitors to move about freely without having to pass through border
controls.
○ Since 1985, it has steadily expanded to include nearly all EU States as well as a few related
non-EU nations.
● Applying to the EU: Any nation that meets the requirements for membership may do so.
○ These conditions are known as the ‘Copenhagen criteria’ and include a free-market
economy, a stable democracy and the rule of law, and the acceptance of all EU legislation,
including of the euro.

INSTITUTIONAL SETUP OF EUROPEAN UNION

The distinctive institutional structure of the EU consists of the following:
• European Council: The European Council, which brings together national and EU-level leaders,
including the President of the European Commission and Heads of state and government, sets the
EU's broad priorities.
• European Parliament: In the European Parliament, directly elected Members of the European
Parliament (MEPs) represent European citizens (751 seats).
• EU Council: Governments represent the national interests of their respective nation in the EU
Council. It is a body at the ministerial level. It carries out legislative duties as well as policymaking
and coordination tasks.
• European Commission: The European Commission, whose members are chosen by national
governments, advances the interests of the EU as a whole. A College of Commissioners, led by the
president, is made up of 28 members (one from each member nation), each of whom is in charge
of one or more policy areas. Jean-Claude JUNCKER now serves as its president.

INDIA & EUROPEAN UNION

• India and the European Union marked 60 years of diplomatic ties in 2022.
• The EU is also India's top export market and a significant source of investment and cutting-edge
technology.
• Relations between India and the EU have existed since the early 1960s, and one of the first
nations to establish diplomatic ties with the EEC was India. The two nations' connection went
beyond trade and economic cooperation after they signed a cooperation pact in 1994.
• The first India-EU Summit, which took place in Lisbon on June 28, 2000, was a turning point in
the development of the alliance. There have been thirteen yearly Summits since that time.
• The partnership was upgraded to a "Strategic Partnership" at the 5th India-EU Summit held in
Hague in 2004. The two parties adopted a Joint Action Plan in 2005 (which was reviewed in 2008)

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 that called for expanding trade and investment, bringing peoples and cultures together, and
improving systems for interaction and consultation in the political and economic arenas.
• Through joint statements on the urban partnership, counterterrorism, clean energy, and climate
change, the two parties indicated in 2017 that they intended to cooperate.
• With the adoption of the India-EU Agenda 2020, which lays out a road map for cooperation on a
wide range of issues including nuclear cooperation, investments, Internet Governance, climate
change, and 5G communications, at the 13th India-EU Summit in Brussels, held in March 2016
after a four-year hiatus, India-EU relations received a further boost.

AREA OF COOPERATION
Political and Security Co-operation
• A process for fostering communication and collaboration between Asia and Europe was
developed in 1996 and is known as the Asia-Europe Meeting (ASEM). At the ASIA Europe
Meeting, India and the EU also converse (ASEM).
○ Currently, it has 53 partners, including the European Union, the ASEAN Secretariat, 30
European and 21 Asian nations.
○ In an atmosphere of respect for one another and partnership on an equal footing, ASEM
addresses topics of shared concern in politics, economics, social, culture, and education.
● Communication between the EU and India's foreign ministers is frequent.
● Since May 2006, the Joint Action Plan has mandated an annual Security Dialogue.
● In 2016, the Security Dialogue and the Foreign Policy Consultations were combined.
● At the 2016 EU-India Summit, a Joint Declaration on counterterrorism was adopted.
● Foreign Policy Consultations at the level of Secretaries have also been established by both parties.
The first meeting happened in New Delhi on November 15, 2011, while the second round
happened in Brussels on July 20, 2012. The fourth round of the Foreign Policy Consultations
concluded on February 29, 2016, in Brussels.
● The European Commission and Council, along with 27 heads of state from Europe, convened the
first-ever EU+27 Leaders Meeting in 2021 to meet with Indian Prime Minister Narendra Modi
digitally.
○ The gathering was conducted in a hybrid setting.
○ This was the first meeting between the EU and India in the EU+27 framework.
○ Foreign policy and security, COVID-19, climate and environment, and trade, connectivity,
and technology are the three main theme topics.
○ Moving Forward With the 4 Cs:
■ Climate,
■ COVID-19,
■ Commerce, and
■ Connectivity
○ The leaders of the EU and India have primarily covered the following topics:
■ Funding the Strategic Partnership between India and the EU
■ COVID-19 and beyond: Increasing global health preparedness and resilience
■ green development while preserving the environment
■ trade, connectivity, and technology to promote inclusive growth
■ pursuing a more democratic, wealthy, and safe world

Trade and Economic Cooperation

● India and the EU have been in the process of negotiating a bilateral Broad-based Trade and
Investment Agreement (BTIA) since 2007.

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 ○ As of late, both sides are discussing the modalities of resumption of BTIA talks on a fast track.
● The India-EU Joint Commission dealing with economic and commercial issues meets annually, as
do its three Sub-Commissions on Trade, Economic Cooperation and Development Cooperation.
● The 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.
● India is already an important trade and investment partner for the EU and could hold significant
further potential.
○ It represents a sizable and dynamic market, with an annual projected GDP growth rate of over
8% according to the IMF, which would make it the fastest-growing emerging economy.
○ India received around US$ 83 bn FDI flows from Europe during 2000-17 constituting
approximately 24% of the total FDI inflows into the country during the period making it one
of the largest sources of FDI.
● Trade in goods between the EU and India increased by about 30% in the last decade.
● Trade in services between the EU and India reached €30.4 billion in 2020.

Migration and Mobility Cooperation

● The India-EU Common Agenda on Migration and Mobility (CAMM) provides a frame work for
cooperation on joint objectives, recommendations and actions.
● In the last High-Level Dialogue on Migration and Mobility (HLDMM) held on 10 July 2019 in New
Delhi, both sides agreed to explore possibilities to move forward through a comprehensive
partnership on migration and mobility.

Connectivity Cooperation
● India and the EU Connectivity partnership was announced during the India-EU Leaders' Meeting
held on 08 May 2021.
● The partnership is focused on outlining the norms, standards and principles that underpin the
approach of India and the EU to Connectivity as a whole.
● It also outlines various areas of cooperation on Connectivity between India and EU, and includes
India-EU partnership in third countries on Connectivity.

RECENT DEVELOPMENT IN INDIA & EUROPE RELATIONS

Arctic Region
The Arctic Council is made up of eight Arctic States: Canada, the Kingdom of Denmark, Finland,
Iceland, Norway, Russia, Sweden, and the United States.
The Arctic Ocean and its surrounding continent have drawn significant interest from the world's
scientific community and are a major research priority for decision-makers.
The Arctic has an impact on the earth's ecosystem's biogeochemical, oceanic, and atmospheric

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 cycles.
India’s Arctic Policy
India's Arctic policy titled 'India and the Arctic: building
a partnership for sustainable development’ lays down
six pillars:
Enhancing Indian scientific collaboration and
research
Environmental and climate protection
Human and economic development
Connectivity and transportation
International collaboration and governance
Building up national capabilities in the Arctic.
The inter-ministerial Empowered Arctic Strategy Group
would be a part of an effective governance and review
system to carry out India's Arctic policy.
Numerous parties, including the academic world, the
scientific community, business, and industry, will be involved in the implementation of India's Arctic
policy.

The India-Nordic Relations

About Nordic Countries
● It is a region in Northern Europe
and the North Atlantic, both
geographically and culturally.
● It encompasses the Faroe
Islands, Greenland, the
autonomous province of Aland,
and the sovereign states of
Denmark, Finland, Iceland,
Norway, and Sweden.
● In several national performance
indicators, such as education,
economic competitiveness, civil
rights, quality of life, and human
development, the Nordic
countries are grouped close to
the top.

India-Nordic Relation’s Significance

● The increase of India-Nordic collaboration in the Arctic region is made possible by India's Arctic
Policy.
● The blue economy can lead to higher food security, better nutrition, and the creation of new jobs.
● A robust cooperation between India and the Nordic nations can support trade and investment
that is profitable for both parties as well as innovation, economic growth, and climate-friendly
solutions.

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● United Nations Security Council: The Nordic nations reaffirmed their support for India being a
permanent member of an updated and expanded UNSC.
● India committed to collaborating with other nations to combat climate change, address it, and
save the environment.
○ They reaffirmed their dedication to ambitious collaboration on energy efficiency, smart grids,
and renewable energy.
● India has over $5 billion in bilateral trade with the Nordic region (2020–21), and over $3 billion
in cumulative FDI.
● Both parties are eager to restructure the UN, including the Security Council, the World Trade
Organization (WTO), and to increase cooperation on global health concerns like pandemic
preparedness.

First Nordic Summit, 2018

● The leadership focused on global security, economic growth, innovation, and climate change
during the summit's first iteration in 2018, highlighting innovation and digital transformation as
growth drivers.
● The inaugural summit attempted to examine how the application could be expanded to include
New Delhi's major initiatives like Make in India, Startup India, Digital India, and Clean India, as
well as how to support India's Smart Cities project with funding from the Nordic Sustainable Cities
Project.
● The Nordic nations welcomed India's request to join the Nuclear Suppliers' Group during the first
summit.

Second Nordic Summit, 2022

The prime ministers of Denmark, Norway, Sweden, Iceland, and Finland recently met with their
counterparts from India.
● During the meetings, ideas for strengthening bilateral ties were discussed as well as perspectives
on local and international events were shared.
● The gathering was planned to coincide with the second India-Nordic Summit in Copenhagen,
Denmark.

Highlights of the Meeting

● India and Iceland: Both addressed ways to deepen economic links, particularly in the fields of
geothermal energy, the blue economy, the Arctic, alternative energy sources, fishing, food
processing, higher education, including online institutions, and culture.
○ The topic of advancing trade discussions between India and the European Free Trade
Association (EFTA) was also discussed.
● India and Finland: Both have discussed ways to deepen their collaboration in cutting-edge areas
like artificial intelligence, quantum computing, future mobile technologies, renewable technology,
and smart grids.
○ In particular, the Indian market offers significant prospects in telecom infrastructure and
digital revolutions, and the Indian PM asked Finnish enterprises to collaborate with Indian
companies and take advantage of these opportunities.
● India and Norway: discussion included the blue economy, green hydrogen, solar and wind
projects, green shipping, fisheries, water management, rainwater harvesting, space cooperation,
long-term infrastructure investment, health, and culture.
○ The Indian Prime Minister argued that Norway is an important tenet of India's recently
unveiled Arctic Policy.

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● India-Sweden: During the meeting, the two presidents reviewed the Joint Action Plan's
development and expressed their appreciation for the initiative's growing breadth, the Leadership
Group on Industry Transition (LeadIT), which they had jointly launched.
○ A Leadership Group on Industry Transition (LeadIT) will be established in September 2019 at
the UN Climate Action Summit as part of a collaborative global initiative between Sweden and
India to help lead the world's largest emitters of greenhouse gases toward a low-carbon
economy.
○ The two countries adopted a comprehensive Joint Action Plan to advance a wide range of
initiatives in defence, trade and investment, renewable energy, smart cities, women's skill
development, space and science, healthcare, etc. during Prime Minister Modi's 2018 visit to
Sweden.
● India and Denmark: To strengthen bilateral ties, they spoke about a wide range of topics of
common interest, such as the conflict in Ukraine, their free trade agreement with the EU, and the
situation in the Indo-Pacific.
○ A decision was made to focus on green hydrogen, renewable energy, and wastewater
management in order to further develop the green strategic partnership.

India-EU FTA or the BTIA

BTIA (Broad-based Trade and Investment Agreement)
● Numerous aspects of trade in commodities, services, and investments are covered by the BTIA
broad trade arrangement.
● India is one of the EU's key trading partners, if not its biggest, as it accounted for 13.5% of all trade
in 2015–2016. The BTIA is crucial for both the EU and India, as a result.
● The Broad-based Trade and Investment Agreement has been under discussion for decades
between India and the European Union.
● The conversations cover a wide range of topics, including investments, market access, and tariff
reductions.
● Recent developments like the Brexit and the termination of other international investment
treaties may directly affect the BTIA, and talks are likely to pick back up in the future years.

Background

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● India is an obvious partner for an EU Free Sanitary and Phytosanitary Measures
Trade Agreement (FTA) given its rapid Sanitary and phytosanitary (SPS) precautions are
expansion, complementing trade baskets, those used to safeguard against pollutants,
and relatively high level of market diseases, and pests that may affect people,
protection. animals, and plants.
● In its report from the EU-India High Level Every nation has policies in place to protect
Trade Group in October 2006, the EU and consumers from foodborne illness and to stop the
India outlined the parameters for an spread of pests and illnesses among plants and
ambitious FTA. animals.
● 16 rounds of negotiations have taken Both locally produced food and imported goods
place since the free trade agreement that come from other nations are subject to
between India and the EU began to be sanitary (human and animal health) and
negotiated back in 2007. Negotiations phytosanitary (plant health) standards.
were put on hold following the final round These phytosanitary and sanitary measures may
in 2013. be in the following forms:
● Since 2013, these trade, investment, and mandating that goods come from a region free of
intellectual property-related sickness, product inspection, specialised handling
negotiations have been impassed. or processing, Determining the maximum levels of
● The EU favours stricter sanitary and pesticide residues that are acceptable or allowing
phytosanitary regulations as well as the use of just specific additives in food.
investor-state dispute settlement (ISDS)
rules.
● Both parties agreed to reopen talks for the BTIA during the 14th India-EU Summit, which took
place in Delhi in October 2017.
○ In it was discussed a path ahead for the two sides protracted free trade agreement
negotiations after months of impasse. Finding a path ahead to resume negotiations is more
important than starting again with the BTIA negotiations.

Demands from each other

● Since May 2013, the negotiations for the deal have been stalled since both parties have yet to
close significant gaps on important issues like:
○ Rights to intellectual property,
○ Reduced taxes on alcohol and automobiles
○ liberal visa policy
● Disagreements between the two parties over professional progress must be resolved. India has to
have a flexible visa policy in this situation.
● The EU wants a robust intellectual property regime in addition to considerable tariff reductions
on vehicles, wines, spirits, and dairy products.

The India-Meeting on BTIA Talks: Recent Developments

● India and EU re-launched Free Trade Agreement negotiations after 9-years in a joint event held
at the EU headquarters in Brussels in 2022.
Significance
● The trade agreement will increase economic prospects for our firms, diversify and secure supply
chains, and benefit our citizens greatly.
● India's efforts to use its expanding home economy and middle class to bolster its ascent as a global
economic force will be strengthened by the FTA.

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● According to the EU, the free trade agreement (FTA) with India will improve its position in global
trade governance and further its goal of using FTAs to promote partner nations' integration into
the global economy.
● From India's perspective, it will support the "Make in India" initiative and the desire to position
India as a regional manufacturing powerhouse and global hub.
● An agreement that has been successfully concluded will increase commerce and investment
between the two regions. India's primary source of technology transfer is the EU.

A road map for India-EU ties

Early 1960s saw the beginning of contacts between India and the European Union, with one of the
first nations to do so being India. The two nations' connection went beyond trade and economic
cooperation after they signed a cooperation pact in 1994. In June 2000, the first summit between India
and the EU represented a turning point in the development of the relationship.
Strategic Ties
● The partnership was upgraded to a "Strategic Partnership" at the 5th India-EU Summit in The
Hague in 2004.
● The two parties adopted a Joint Action Plan in 2005 (which was reviewed in 2008) that called for
expanding trade and investment, fostering cross-cultural understanding, and developing
discussion and consultation mechanisms in the political and economic realms.

Typical road map

● A shared road plan was provided at the 15th India-EU Summit in July 2020 to direct cooperative
activity and further solidify the cooperation over the ensuing five years.
● The road map stresses collaboration in five areas: trade and economy, sustainable modernization
partnership, global governance, and people-to-people ties. Foreign policy and security
cooperation is also highlighted.

Economic Ties
● Since then, the India-EU alliance has rapidly expanded. In 2021–2022, two-way trade was worth
around $116 billion.
● After the United States, the EU is India's second-largest commercial partner and the second-
largest market for its exports.
● In the nation, 6,000 European businesses support 6.7 million jobs both directly and indirectly.

Defense industry
● Defense sector collaboration with the EU has also significantly risen.
● It is crucial for India right now to lessen its reliance on Russian hardware in light of the situation
in the Ukraine and strive to diversify its armament purchases from other regions with cutting-edge
technologies in the wake of its battle with China.
● Regular cooperative military and naval drills between India and the EU demonstrate their
commitment to the Indo-Pacific region's free, open, inclusive, and rules-based order.

Further opportunities for cooperation

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● The EU and India can cooperate in a number of ways. For instance, India and Denmark's "green
strategic relationship" attempts to address pollution, biodiversity loss, and climate change.
● The green technology and industry transformation that are essential for sustainable and inclusive
growth were the main topics of discussion at the India-Nordic Summit in May 2022.
● All of this will stimulate further cooperation between the two regions.
● The start-up and innovation ecosystem in India and Europe is another fast expanding area of
collaboration.
● The two's Joint Steering Committee on Science and Technology has a particular interest in fields
including earth sciences, artificial intelligence, and healthcare.

Impact of Ukrainian crisis’ on European Economy

About
● The Ukraine conflict has reached a
breaking point as Russia launched a
full-scale invasion to "demilitarise"
Ukraine in response to its
recognition of rebel regions in
eastern Ukraine (the Donbas
region)—Donetsk and Luhansk.
● Russia continues to be India's largest
and most reliable supplier of military
gear, but the US, the EU, and the UK
are also important allies that India
cannot afford to alienate.
● A reasonable course of action is to
continue with the balanced strategy
that India has up to this point, taking
into account its strategic interests.

Impact of War on Europe

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INDIA-AFRICA

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Background
● The Non-Aligned Movement (NAM) saw a significant increase in African participation as a result,
and the continent's nations are united in their opposition to colonialism and imperialism.
● 1960 is known as the Year of Africa because a number of occasions, including the independence
of 17 African countries, brought attention to the increasing Pan-African sentiments on the
continent.
● India played a vital role in the UN's peacekeeping operations in Africa.
● In addition, India has consistently taken a principled anti-apartheid position.
● India and Africa have a great chance to collaborate for mutual benefit due to their shared
economic concerns and complementarities in resources and capacity.
● Nevertheless, relations with Africa stalled as India became bogged down in its own problems.

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● It's been suggested that China has surpassed India in Africa over the past 20 years.
● Since its inception in 2008 and its most recent iteration in 2015, the India-Africa Forum Summit
(IAFS) demonstrates the growth of connections between India and Africa.
● African Union, a continental union made up of 55 African nations, was established in 2001.
● It is the second-largest and second-most populous continent in the globe, with 54 countries. In
2015, the global GDP was $2.8 trillion.
● Similarities: Both India and Africa have a colonial past as well as a comparable developmental
trajectory and setbacks.
● Complementarities: Africa's desire for development and India's growing demand for African
commodities.
● Multilateral collaboration:
○ Brazil, South Africa, India and China grouping (BASIC),
○ India-Brazil-South Africa Dialogue Forum (IBSA),
○ Brazil, Russia, India, China, and South Africa. (BRICS)
● Capacity building/Development Partnerships:
○ The Jugaad spirit and Indian technology's applicability to Africa
○ It is commonly known that India is a particularly good development partner for Africa.
○ Pan Africa E-Network
○ ITEC scholarships
○ India’s contribution towards Ebola, Public Health.
● Urbanization, industrialization, youth population, and poverty are socioeconomic similarities.
● Relations are primarily driven by private operators, such as market forces and middlemen, which
has led to steady but slow relationship growth. Africa's developmental trajectory can be advanced
by finding solutions to India's problems.
● India imports crude oil from Africa.

Areas of Cooperation
Politics Cooperation
● India and Africa have frequently shared leadership roles in international forums and collaborated
to further the interests of other emerging nations.
● They have worked to protect the food and livelihood concerns of farmers at the Doha
Development Round of WTO negotiations and have advanced joint proposals, such as the
Agricultural Framework Proposal and Protection of Geographical Indications, at the World Trade
Organization (WTO) and World Intellectual Property Organization.
● India and Africa will "enhance cooperation through training and collective negotiations on global
trade issues, including at the WTO to protect and promote the legitimate interests of developing
countries, especially the LDCs [least developed countries]," according to the "Framework for
Strategic Cooperation," the Third India-Africa Forum Summit's outcome document.
● The India–Africa Forum Summit (IAFS) is the official platform for the African-Indian relations
● It is held once in every three years beginning from 2008
● Currently, India and South Africa are also currently pressing for a waiver of certain provisions of
the Trade Related Intellectual Property Rights for COVID-19 treatment and vaccines.

Economic Cooperation
● The bilateral commerce between India and Africa has been continuously increasing year after
year, with the trade volume reaching US$55.9 billion in 2020–21.
○ With an estimated $70 billion in annual merchandise trade, or approximately 10% of India's
total worldwide trade, Africa is already a significant economic partner for that country.

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 ○ India's exports to the rest of the world have mostly remained flat, although those to Africa
have increased.
● India has made total investments of US$54 billion, making it the fifth largest investor in Africa.
● The extent of India's development assistance to Africa has likewise expanded quickly.
● In order to finance the construction of railway lines, electricity and irrigation projects, farm
mechanisation projects, among others, India started using concessional lines of credit (LoC) in
2003.
● The LoCs are demand-driven and extended on the basis of the principle of mutual benefit —
recipient countries benefit from the development, while the LoCs assist in opening up new
markets for Indian businesses, promoting export growth, fostering goodwill with nations that are
important sources of resources like food and energy, and improving the country's reputation
abroad.
● Through the Export Import (EXIM) Bank of India, India has approved 182 Letter of Credit (LoC)
projects in Africa so far, with a total credit commitment of roughly US$ 10.5 billion.
● Demand for Indian goods and services, particularly foodstuffs, finished goods (automobiles,
pharmaceuticals, consumer goods), IT/IT-Enabled Services, healthcare and education, skill
development, managerial experience, banking, financial services, and insurance, still exists in
Africa.
● African Continental Free Trade Area (AfCFTA)
○ The AfCFTA agreement was adopted and opened for signature on 21st March 2018 in Kigali.
The AfCTA entered into force on 30 May 2019.
○ AfCFTA seeks to create a single continental market for goods and services, with free movement
of business persons and investments, and thus pave the way for accelerating the
establishment of the Continental Customs Union and the African customs union.

Development Cooperation
● After two centuries of colonial domination, India was poor and underdeveloped, but immediately
after gaining independence, it started a concerted campaign to support African development.
● Launched in 1964 to teach other developing nations from across the world what India has learned
about development, the Indian Technical and Economic Cooperation (ITEC) programme is now a
key component of India's overall development cooperation strategy.
○ Approximately 98 Indian colleges currently provide training programmes in subjects like
agriculture, food and fertiliser, engineering and technology, and environment and climate
change.
○ ITEC also manages and organises defence training programmes, study tours, disaster relief
assistance, the deputation of Indian professionals overseas, and project-based collaboration
in addition to civilian training programmes.
○ The programme primarily benefits Africa, with roughly 50% of the ITEC seats earmarked for
nations across the continent.
● Building techno-economic capacity has also been a focus of India-Africa collaboration.
○ All summits of the India-Africa Forum focused heavily on skill development and capacity
building.
● Additionally, India revealed the Asian Africa Growth Corridor Vision Document, which was
created in collaboration with Japanese and Indian think tanks.
○ The corridor will put an emphasis on creating cooperation projects, good infrastructure,
institutional connectivity, skill development, and inter-personal relationships.
● According to India, its cooperation with Africa combines India's development goals with those
of the African Union's and the continent's Agenda 2063, as well as other development initiatives.

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Information Technology Cooperation
● Given the importance of the information and communication technology (ICT) sector to India's
economic story and the priority that most African leaders place on the development of the ICT
sector, this is a crucial pillar of India's technical cooperation with Africa.
● The Pan African e-Network was an innovative project that was created in 2009 to use Indian IT
knowledge to improve healthcare and educational facilities in 53 African nations.
● Utilizing its skills in information technology, India has contributed $100 million to the Pan-African
E-Network in an effort to reduce the continent's digital gap.
● Additionally, a number of prosperous businesses focused on digital technology have also been
able to establish strongholds in the area.
● Recently, an Indian microblogging network startup called Koo managed to develop a sizable
following and an active user base in Nigeria after that country's government outlawed Twitter.

Defence and Security Cooperation

India's lengthy involvement in UN peacekeeping operations has actively contributed to the efforts to
uphold peace and security in Africa.
● In the past, India has offered to train African security personnel at its various defence training
academies. It has also assisted in the development of infrastructure and training programmes in
nations like Ethiopia, Nigeria, Mauritius, Zambia, Ghana, Sudan, Botswana, South Africa,
Tanzania, Egypt, and Lesotho.
● The Indian navy has been performing patrol operations in the Gulf of Aden for the past few years,
and it has successfully escorted over 2,400 vessels there.
● Additionally, it has promised to support the African-led force in Mali and the African Union mission
in Somalia.

Climate Change Cooperation

● The International Solar Alliance was founded by India, and nearly half of its members are from
Africa.
● For the implementation of off-grid solar energy projects, India has announced a LoC worth US$ 2
billion over five years to Africa.
● Additionally, India is working to develop solar power systems throughout the Sahel region to
provide electricity to roughly half of Africa's 600 million people who are currently without access
to the grid.

Energy Cooperation
● A major organisation that has pushed the quick advancement of renewable energy technologies
is the International Solar Alliance.
● The "One Sun One World One Grid" programme, which aims to further promote solar and
renewable energy, came after this.
● Clean and green energy have taken centre stage in recent years in both third country partnerships
as well as India's development programmes in Africa.

COVID-19 Assistance
● India sent 150 tonnes of medical aid to 32 African nations.
● Many of them also used vaccines that were "Made in India," whether they were imported from
India or not.

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● India has joined forces to advocate for fair and inexpensive access to vaccinations in international
fora, including through a TRIPS waiver.

Loan and Assistance:

● India has extended concessional loans of over USD 12.3 billion to Africa.
● In addition, India has granted USD 700 millions of grant assistance.

Challenges
● China Effect
○ India and China are in competition with one another in Africa. The trade surplus between China
and Africa is $220 billion. Djibouti served as the location of China's first military outpost.
○ The formation of relationships depends on increased connectedness and face-to-face
interaction. For instance, unprovoked assaults against African nationals in India have been a
cause for concern; such incidents should be handled with zero tolerance in India.
○ In the end, both regions should work together to create a just, representative, and egalitarian
international order that gives one-third of humankind a voice, much as India and Africa did to
fight colonialism.
● Social Tensions
○ Due to racial, religious, and governance issues in some countries, foreign donors are reluctant
to enter the region.
● Internal instability
○ The prospect for long-term investment in India may be impacted by internal political upheaval
in some African nations. For instance, South Sudan has been plagued by civil war since 2013.
● Terrorism
○ Extremists with ties to Al-Qaida and ISIS have drastically intensified their terrorist attacks
across Africa in recent years. India has previously sent soldiers and weaponry to numerous
African countries and has plans to do so in the future in order to combat the menace of
terrorism and uphold security and unity.

CONTRIBUTION OF INDIAN DIASPORA IN VARIOUS FIELDS IN AFRICA

A nation's pride is symbolised by its diasporas, who represent it abroad. Through their impressive
success stories, they contribute to increasing the value of the nation abroad. It is now widely
acknowledged that the diaspora can promote Indian soft power, advocate for India's national
interests, and boost the country's economy.
● The waves of Indian Diaspora in Africa can be broadly divided into four parts;
○ Pre-colonial migration of Persons of Indian Origin towards Africa,
○ During colonial time,
○ Postcolonial time, and
○ The present context.
● In pre-colonial times, Indian coastal communities developed good ties with East Africa, East
Asia, and Central Asia. The ‘trade Diaspora’ was distinguished as it consisted mainly of ‘temporary’
and ‘circular’ migration.
● They were sent to look for trade elsewhere but expected to return to their motherland eventually.
International trade allowed people from different cultures to learn about and appreciate one
another. Many South Asian merchants began migrating outside Asia in the eighteenth century.

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● The second phase of migration; into Africa by Indians came due to colonization. Significant
clusters of Indians were taken as indentured labourers across the colonial empires in the
nineteenth and early twentieth centuries.
● It is important to note that some Indians emigrated to serve colonial administrations abroad in
the capacities of clerks and instructors, expanding the reach of colonial power.
○ About 769,427 Indians are estimated to have emigrated to Mauritius, South Africa, Seychelles,
and the East African area between 1829 and 1924.
○ After numerous African nations became independent in the 1960s, many Indians in the
professional classes served in Africa in countries like Ethiopia and Nigeria as instructors in
schools and universities, railways, mines and hospitals.
○ Such persons were not settlers but were seeking to put their skills toward creating personal
financial security.
○ Others saw opportunities in the African marketplace for entrepreneurism and acquired rapid
fortunes in import trading.

CHINA’S GROWING FOOTPRINT IN

AFRICA AND ITS CHALLENGE FOR
INDIA

China is now working on

infrastructure projects in 35
different African nations. Angola,
Nigeria, and Sudan are countries with
a concentration of projects. China,
though, is preparing a fresh slate of
initiatives in other nations,
particularly in the Democratic
Republic of the Congo (DRC). The
operations of the nation are mostly
split between the ICT sector and the
two primary sectors of power
generation (particularly
hydropower) and transportation
(notably railroads) (mainly
equipment supply). The least amount
of activity was centred around water
initiatives. China has huge demand
for African ivory, abalone, rhinoceros’ tusk and materials from other endangered species. This has
taken a significant toll on conservation efforts.

China’s growing Footprint

● Strategic Establishments:
○ In the Horn of Africa, which includes Eritrea, Ethiopia, Somalia, Djibouti, and Kenya, China
has a special envoy. It demonstrates the strategic value of the Indian Ocean to China.
■ China declared its three goals for Africa in January 2022: containing the epidemic, putting
the FOCAC outcomes into practice, and defending shared interests while opposing
hegemonic politics.
■ The Horn as a whole participated in the 2021 forum, and four resolutions were approved:

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● The Dakar Action Plan: The Forum has been strongly promoting the development of relations
between China and Africa over the past 21 years since its inception, according to the two sides,
who also believe that it has become an important benchmark for international cooperation with
Africa. The two sides applaud the development of relations between China and Africa.
● Vision 2035 for China-Africa Cooperation: It was created to establish the goals and orientations
of China and Africa's medium- and long-term cooperation and to advance the development of a
stronger community with a shared destiny.
● Sino-African Climate Change Declaration: It seeks to improve coordination and collaboration in
the multilateral climate process and collectively protect the legitimate rights and interests of
China, Africa, and other developing nations.
○ Military installations: Since 2017, Beijing has maintained a facility in Djibouti with 400 PLA
soldiers, near to French and American installations.
○ Railways: The Ethiopian capital Addis Ababa and Djibouti are connected by a railway line
constructed by the Chinese.
● Infrastructure Establishment
○ Chinese firms tended to capture the larger civil works contracts.
■ The average size of a civil works contract awarded to a Chinese contractor was US$6 million
in the case of the African Development Fund (an ADB affiliated structure) and US$11
million in the case of the International Development Association arm of the World Bank,
compared to more typical contract values of US$3 to 4 million.
○ Overall, about 70 percent of the value of contracts won by Chinese firms under multilateral
projects was accounted for by just four countries:
■ Ethiopia,
■ Mozambique,
■ Tanzania, and
■ The DRC
○ Kenya: Significant Belt and Road initiatives have been launched by China in Kenya. At the port
city of Mombasa, a ceremony marking the completion of an oil terminal built by Chinese
engineers recently took place.
○ Comoros Islands: China has provided a lot of development aid to the Comoros Islands, which
are off the coast of Mozambique.
○ Tanzania: The 1,860-km Tanzania-Zambia railway, the first transnational railroad in Africa, was
the first Chinese infrastructure undertaking on the continent.
○ Zambia: In addition to transporting passengers, it also shipped ore from copper mines in
Zambia to the Tanzanian port city of Dar es Salaam.
● Financial Assistance to the African Countries
○ South Africa, the Democratic Republic of the Congo, Angola, Ethiopia, and Zambia are the top
five African countries that have received Chinese investments.
○ China is investing in transportation, scientific research, and the services industry, however
mining and infrastructure development projects account for the majority of its investments in
African nations.
○ China has been Africa's top trading partner for a decade. Undoubtedly, China benefits greatly
from the trade balance.
○ According to the "China-Africa Annual Economic and Commerce Relationship Report 2021,"
two-way trade reached $ 187 billion in 2020.
● Major Accomplishment
○ China's current top political concern is the Taiwan question.

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 ○ With the help of African countries, China was able to join the UN in 1971 and take over
Taiwan's seat.
○ Numerous nations in Africa, including Algeria, Egypt, Ethiopia, and Zambia, have emphasised
how much they support the "one-China policy".

Concerns of India over China’s Presence

● Dominance in the Indian Ocean:
○ As one of China's "string of pearls" of military alliances and assets around India, along with
Bangladesh, Myanmar, and Sri Lanka, Djibouti, which is located on the northwestern margin
of the Indian Ocean, might join the group.
○ In recent days, China has increased activities in the Indian Ocean, which India believes to be
within its sphere of influence, citing freedom of navigation and anti-piracy patrols. The Indian
Navy has been compelled to increase surveillance of the critical seas.
● China aims to exert control over Important Shipping Routes
○ 80% of the world's oil and a third of the world's bulk cargo are transported along the maritime
channels of the Indian Ocean. China wants to protect its commercial and energy transit
linkages along the important shipping route.
● Influencing Indian Ocean nations:
○ Nations aiming for a stronger role in international affairs are increasingly using the Indian
Ocean as a proving ground. China is investing in facilities including ports, roads, and trains in
an effort to gain favour and influence among the nations of the Indian Ocean.
○ Building ports and other infrastructure in Sri Lanka, Bangladesh, and Pakistan is part of China's
strategy to increase its influence in the Indian Ocean.
● Expanding through OBOR:
○ China's ambitious One Belt, One Road (OBOR) programme to create a new Silk Route places a
lot of emphasis on the Indian Ocean.
○ India has avoided using OBOR as its focal point.

Challenges for India

● India and China stand far apart in terms of the size of their economies. India’s US$2.7 trillion
versus China’s US$14 trillion which acts as a roadblock for New Delhi to make further inroads in
African nations.
● According to United Nations trade data, 39 African countries imported more than US$71 billion
worth of goods from China in 2017 and only US$21 billion from India.
● African nations are unwilling to choose between China and India because of the accruing benefits
and investments from both nations.
● China’s Belt and Road Initiative aims at connecting Asia with Africa and Europe through land and
maritime routes which would enable regional integration and growth in trade and commerce as
well as China’s Monopoly.
● China in the last few years has been strengthening its presence and influence in Africa, as well
as some of the African littoral states in the Indian Ocean.

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