International Relations - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Malabar: Not just an exercise

Context

The 31st iteration of the Malabar multilateral exercise is scheduled to take place off the coast of Sydney from August 11 to 21.

About Exercise Malabar

• It was started in 1992 as a bilateral naval exercise between India and US navy.
• The first Malabar Exercise in the Bay of Bengal took place in 2007.
• It was expanded into a trilateral format with the inclusion of Japan in 2015.
• In 2020, the Australian Navy joined the Malabar Exercise, making it a quadrilateral naval exercise.
• The aim of the Malabar Exercise of India, the US, Japan and Australia is to coordinate for a free, open, and inclusive Indo-Pacific.
• It takes place annually in the Indian Ocean and Pacific Oceans alternatively.
• This exercise includes a diverse range of activities such as fighter combat operations and maritime interdiction operations.

Other Joint Maritime Exercises of India

• IBSAMAR: It is a maritime exercise held by India, South Africa, and Brazil.
• SIMBEX: India and Singapore.
• SLINEX: India and Sri Lanka.

Global Value Chains

Context

• In the past, companies typically produced goods primarily within one country. However, this approach has evolved significantly. Nowadays, a single finished product often results from manufacturing and assembly processes spread across multiple countries, each contributing value to the final product.
• Global Value Chains (GVCs) play a crucial role in this shift, integrating the expertise of lead firms and suppliers of essential components across various production stages and in multiple offshore locations. The international flow of know-how between firms is the distinguishing feature of GVCs.
• The extent to which countries engage with GVCs determines the benefits they derive from this approach. Recognizing the importance of resilient and sustainable Global Value Chains, the G20 trade and investment ministers recently called for the development of a 'framework for mapping GVCs' to better prepare for and withstand future shocks.

Global value Chains (GVCs)

Global value Chains represent the complex network of production and distribution processes that span multiple countries and involve various stages of production for goods and services. GVCs involve the participation of numerous firms, suppliers, and intermediaries in different countries, each contributing to the creation of a final product or service.
Key Characteristics of Global Value Chains are:

• Fragmentation of Production: GVCs involve the division of production processes into different stages, often located in different countries. Each country specializes in specific stages of production, capitalizing on its comparative advantages.
• Interconnectedness: GVCs rely heavily on international trade to transport intermediate goods and components across borders. This interconnectedness leads to increased trade and cross-border investment.
• Diverse Participants: GVCs include various participants, such as suppliers, manufacturers, service providers, and distributors. These participants can range from small and medium-sized enterprises (SMEs) to multinational corporations.
• Coordination and Governance: The success of GVCs relies on effective coordination and governance mechanisms to ensure smooth collaboration among various participants. This can involve contracts, partnerships, and technological platforms.
• Technology and Innovation: GVCs often require the adoption of advanced technologies and innovation to enhance efficiency and quality at different stages of production.
• Supply Chain Risks: The interconnected nature of GVCs can lead to vulnerabilities in case of disruptions, such as natural disasters, political instability, or supply chain issues.

Benefits of GVCs

• Efficiency: Global Value Chains (GVCs) enable countries and companies to concentrate on their respective strengths and specialize in specific production stages. This specialization leads to cost savings and increased overall efficiency in the production process.
• Economic Growth: Participation in GVCs has the potential to stimulate economic growth, particularly in developing countries. This is achieved through attracting foreign direct investment (FDI), creating job opportunities, and enhancing exports as a result of increased economic activity within the value chain.
• Access to Markets: GVCs offer a significant advantage by providing access to global markets. Companies involved in these chains can tap into a broader customer base, expanding their reach beyond domestic markets.
• Technology Transfer: Engaging in GVCs facilitates technology transfer for participating companies. Collaboration with more technologically advanced partners in the value chain allows for the exchange and adoption of advanced technologies, enhancing the capabilities of less technologically developed participants.

Challenges of Global Value Chains

• Uneven Distribution of Benefits: The benefits of GVC participation are not equally distributed. Developing countries may face challenges in capturing a fair share of the value added due to power dynamics and resource limitations.
• Dependency and Vulnerability: Overreliance on GVCs can make economies vulnerable to disruptions and changes in global demand.
• Labor and Social Concerns: Labor conditions and wages can be contentious issues within GVCs, as some stages of production might occur in regions with lower labor standards.
• Environmental Impact: GVCs can result in increased resource use and environmental degradation, particularly if environmental regulations are lax in certain stages of production.

Framework for mapping GVCs

• The world is currently facing a multi-dimensional crisis, presenting global challenges such as macroeconomic instability, food insecurity, and disruptions across Global Value Chains (GVCs).
• This crisis is jeopardizing resilient, sustainable, and inclusive economic growth, posing a threat to overall economic development and global trade expansion. Its impact is particularly pronounced in developing countries and has severe consequences for Micro, Small, and Medium Enterprises (MSMEs).
• GVCs have grown increasingly complex over time, leading to heightened dependencies and vulnerabilities to disruptions. Some sectors within GVCs encounter challenges in responding promptly and effectively to significant disruptions, emphasizing the need for GVC mapping to identify opportunities for building resilience.

To make GVCs conducive to sustainable and inclusive development:

• Participation Expansion: Countries, especially in the developing world, can stimulate economic growth by expanding their participation in GVCs and moving up the value chain. Sustainable and inclusive investments play a crucial role in achieving this.
• Disparity in GVC Participation: A significant gap exists between developing and developed countries in GVC participation. Bridging this gap depends on countries' capacity to attract global production, emphasizing the promotion and fostering of linkages between foreign enterprises and domestic companies, particularly MSMEs.
• Promotion of Open and Inclusive Conditions: It is essential to promote open, inclusive, non-discriminatory, predictable, and transparent conditions that facilitate sustainable investment. This approach aims to create an environment conducive to global production and GVC participation.

Reviving GVC growth

• It is crucial to identify solutions, particularly digital solutions, to sustain high levels of Global Value Chain (GVC) participation and revive GVC growth. This objective can be achieved through improved regulatory cooperation, capacity-building initiatives, accessible information provisions, transparency in rules and regulations, and the streamlining of administrative procedures.
• Within a generic framework, key dimensions should be identified to evaluate the resilience of GVCs at both the sectoral and product levels. The following non-exhaustive set of indicators can aid in such evaluation, involving domestic authorities:
  • Concentration of Suppliers and Markets: Heavy reliance on a small group of players or concentration in the buyers/sellers market can significantly impact GVC resilience.
  • Volatility of Trade Volume and Value: GVCs subjected to high uncertainty in supply and demand experience notable volatility in both trade volumes and values.
  • Upstreaming of an Industry or Product: An industry or product situated upstream in a GVC has the potential to disrupt the entire chain through spillover effects.
  • Downstream of an Industry or Product: Industries or products dependent on multiple inputs across various stages are more susceptible to frequent disruptions.
  • Critical Nature of Industry and Product: Certain industries and products may be considered critical due to their resilience and robustness, given their end-use.
  • Product Attributes: Products with long lead times in the production process or limited shelf life can be critical from a replacement and timing perspective.
  • Connectivity: The resilience of GVCs is influenced by logistics and communication infrastructure, customs efficiency, and information technology networks.
• Consulting with stakeholders, including industries, can provide additional insights and expertise that can further enhance GVC mapping efforts.

Conclusion

Global value chains are instrumental in the contemporary global economy, allowing countries and companies to leverage specialization, technological progress, and international trade for mutual benefit. Despite their advantages, the dynamics of these chains also pose challenges that require attention to foster inclusive and sustainable economic growth.

Sulina Channel

Context

• Overnight drone strikes occurred on August 16 in Russia's targeting of ports and grain storage facilities along the Danube River in Ukraine.
• The Danube delta had become a crucial alternative passage for Ukraine's grain shipments after Russia withdrew from the Black Sea grain deal the previous month.
• The Black Sea grain deal, previously brokered by the UN and Turkey, facilitated safe passage for cargo ships carrying grain from Ukrainian Black Sea ports, including Odessa, Chornomorsk, and Pivdennyi.
• A key element of this 'new' trade route is the Sulina Channel, connecting major Ukrainian ports on the Danube River to the Black Sea, entirely within the borders of Romania.

Danube River

• Significance: The Danube River is the second-longest river in Europe, following the Volga. It plays a crucial historical, economic, and cultural role in the regions it traverses.
• Origin: The river originates in the Black Forest region of Germany, near the town of Donaueschingen. It begins as two smaller streams, the Brigach and the Breg, which merge to form the Danube proper.
• Flow Direction: The Danube flows eastward, passing through multiple countries before reaching its endpoint at the Black Sea.
• Countries Passed Through:
  • Germany
  • Austria
  • Slovakia
  • Hungary
  • Croatia
  • Serbia
  • Bulgaria
  • Romania
  • Moldova
  • Ukraine
• Length: The Danube River spans approximately 2,850 kilometers, making it the second-longest river in Europe, after the Volga.
• Drainage Basin: The river boasts a significant drainage basin, covering an area of around 800,000 square kilometers.

Sulina Channel

• Location:
  • The Sulina Channel is situated in the eastern part of Romania, near the town of Sulina.
  • It serves as a crucial connection point, linking the Danube River to the Black Sea directly.
• Geographical Significance:
  • Sulina is positioned at the mouth of the Danube River.
  • The Sulina Channel acts as a distributary of the Danube, with a total length of 71.7 km.
• Navigation:
  • The Sulina Channel is the primary navigational route for ships entering or leaving the Danube River, connecting it to the Black Sea.
  • It offers a well-maintained and marked passage, facilitating the navigation of ships through the delta region and enabling access to the deeper waters of the Danube River.

News Summary: Sulina Channel and Ukraine Grain Trade

• The Danube delta has provided Ukraine with an alternative passage for its grain after Russia withdrew from the Black Sea grain deal last month.
• Of particular importance in this ‘new’ trade route is the Sulina Channel.

What is the route of the alternate path?

• Ships carrying grain from Ukraine leave from Ukrainian ports such as Izmail and Reni on the mainstream (or the Chilia Channel), and head to the port of Sulina, at the mouth of the Sulina Channel.
• From there, they head around 140 km south to Constanta, Romania’s biggest seaport.
• Here the cargo is transferred to bigger ships that carry it out of the Black Sea into the Mediterranean through the Bosphorus straits. 
• This route is under constant surveillance and protection of NATO.

What are the challenges in this route?

• Targeting Ukrainian Ports and Grain Facilities:
  • Russia has persisted in targeting Ukrainian ports and grain facilities along the Danube.
  • The continuous attacks pose a severe threat to the region's economic infrastructure.
• Avoidance of NATO-Controlled Territories:
  • Up to this point, Russia has refrained from attacking territories controlled by NATO.
• Potential Impact of Danube Targeting:
  • The ongoing targeting of Ukrainian ports and grain facilities on the Danube could have devastating consequences.
  • This strategic approach could significantly cripple Ukraine's economic capabilities.
• Ukrainian Port Capacity:
  • Historically, Ukraine has not utilized the Danube for grain exports, relying instead on its rail network and Black Sea ports.
  • The reliance on alternative transportation methods means that the capacity of Ukrainian ports to handle the sudden influx of grain is relatively limited.
• Congestion on the Channel:
  • The congestion issue arises due to the substantial traffic on the Sulina Channel.
  • Boats are experiencing prolonged waiting times at the channel's mouth, leading to significant shipping delays.
• Overall Impact:
  • The combined challenges of targeted attacks and infrastructure limitations may have cascading effects on the region's economic and logistical dynamics.

Panama Canal

Context

The Panama Canal has recently restricted daily transits to an average of 32 ships due to an ongoing extended period of drought.

About Panama Canal

• It is a constructed waterway that connects the Atlantic and Pacific oceans across the Isthmus of Panama.
• It is one of the two most strategic artificial waterways in the world, the other being the Suez Canal. 
• It is approximately 80 kilometers long.
• The canal was built by the United States between 1904 and 1914, and it was officially opened on August 15, 1914.
• It is owned and administered by the Republic of Panama since the oversight of the Canal was transferred from the United States to Panama in 1999.
• The Panama Canal consists of a series of locks that raise and lower the water level to facilitate the passage of ships through the continental divide.

What is an Isthmus?

• An isthmus is a narrow strip of land connecting two larger land masses which is bounded by water on two sides. 
• The word has its origins from the Greek word isthmós which means “neck.”
• Two notable isthmuses are the Isthmus of Panama which separates the continents of North America and South America and the Isthmus of Suez which divides Africa from Asia.

India and G20

Context

The G20 Summit serves as an intergovernmental forum fostering international economic cooperation and shaping global economic architecture and governance. Originally centered on global macroeconomic issues and financial stability, the G20's agenda has expanded to encompass diverse concerns such as trade, climate change, sustainable development, health, agriculture, energy, environment, and anti-corruption. The present G20 Presidency provides India with a distinctive opportunity to lead a collective effort in addressing multifaceted global economic challenges and highlighting the aspirations of the developing world on this influential platform.

Historical Background of G20 Summit

• The Group owes its origin to the Financial Crisis in 1997-98 of the Asian Tigers (Countries of East and Southeast Asia), which caused its establishment in 1999. It worked first as a forum for the Central Bank Governors and Finance Ministers of the major industrialised and developing economies to discuss global economic and financial stability.
• Elevation to Leader’s Level: After the 2008 global financial crisis, it was upgraded to the level of Heads of State or Government when it became clear that crisis coordination would be possible only at the highest political level.
  • In 2009, it was declared as the “premier forum for international economic cooperation”.
  • The G20 Leaders have met on a regular basis since then, and the G20 has emerged as the leading platform for global economic cooperation.

G20 Countries List

G20 comprises 19 countries, namely Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkiye, the United Kingdom, the United States and the European Union.

• These members account for around 85% of the world GDP, 75% of the total international trade, and two-thirds of the global population.
• In addition to these member countries, the G20 each year invites guest countries and international organisations such as the United Nations, World Bank, IMF, OECD, ASEAN, etc., to participate in its meetings.

Structure and Functioning of G20

The G20 operates on the basis of annual meetings of Finance Ministers and Central Bank Governors, with a leaders' summit held once a year. The G20 consists of two parallel tracks called the Finance Track and the Sherpa Track. These two tracks play an active role in shaping ideas and priorities for the host presidency while also guiding the intergovernmental negotiations carried out throughout the presidency. They prepare and follow up on the issues and commitments adopted at the Summits. 

• Troika: The G20 does not have a charter or a secretariat. The Presidency is supported by the Troika, which includes the previous, current, and incoming presidencies. The G20 Presidency hosts the Summit and directs the agenda for a calendar year.
• A non-binding forum: Its decisions are not legally binding, and member countries are not required to implement them.
• Working with international organisations: The G20 members also work closely with international organisations such as the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO).

Significance of G20 Summit 2023

• Diverse Agenda Evolution:
  • The G20's agenda has broadened from macroeconomic policies to encompass various areas of cooperation.
• Examples of Focus in Recent G20 Summits:
  • The Hangzhou summit in 2016 highlighted the convergence of the US and China on the Paris Agreement.
  • The 2018 Argentina summit emphasized fair and sustainable development.
  • The 2021 Germany summit addressed issues related to money laundering, international tax havens, and corruption.
  • The 2022 Bali summit focused on financial stability, humanitarian crises, poverty, aid to least developed nations, and other global matters.
• Commitments and Initiatives:
  • Food Security: Commitment to collaborative efforts addressing food security, acknowledging initiatives like the Black Sea grains initiative.
  • Gender Equality: Recognition of the importance of gender equality, with commitments to enhance women's participation in the workforce, reduce the gender pay gap, and improve access to education and healthcare.
• Promoting a Global Balance of Power:
  • The G20 promotes a more equitable distribution of power globally, fostering balance between developed and developing nations.
• Bringing Adversaries Together:
  • The G20's significance lies in its ability to unite countries with diverse ideologies, political systems, and economic interests on a shared platform for addressing global economic issues.
• Climate Change Initiatives:
  • Acknowledgment of the threat of climate change with commitments focusing on energy efficiency, renewables, advanced and clean technologies, resilient infrastructure, biodiversity conservation, and Circular Carbon Economy adoption.
• Networking and Collaboration:
  • The G20 serves as a platform for leaders to exchange ideas, strengthen relationships, and promote collaboration on economic matters.
• Global Economic Crisis Response:
  • The G20 has played a crucial role in responding to economic crises, including the 2008 global financial crisis, the Eurozone debt crisis, and the COVID-19 pandemic, demonstrating global economic cooperation.

Issues and Limitations of G20

• Consensus Difficulties:
  • The diverse economic and political systems among member countries make reaching a consensus on crucial issues challenging.
  • During events like the 2008 global financial crisis, the G20 faced difficulties in coordinating a unified response.
• Friction on Climate Change:
  • Friction within the group arises on issues like climate change, reflecting varying perspectives and priorities among member nations.
  • Geopolitical tensions, such as the Russia-Ukraine crisis, have also impeded consensus during events like the Bali G20 summit and India's G20 presidency.
• Lack of Permanent Secretariat:
  • The absence of a permanent secretariat hampers efficient monitoring as discussions expand, leading to logistical challenges.
• Non-binding Decisions:
  • Decisions made at G20 meetings are non-binding, and member countries are not legally obligated to implement them.
  • Compliance mechanisms for agreed-upon guidelines, like those for preventing the financing of terrorism, are lacking.
• Limited Membership:
  • The G20 comprises only 19 countries and the European Union, excluding other significant economies.
  • Expanding membership could enhance the group's representation of the global economy, ensuring a more comprehensive and inclusive perspective.

India’s G2O Presidency 2023

India is hosting the G20 Leaders' Summit 2023 for the first time in history, with 43 Heads of Delegation attending the final New Delhi Summit in September 2023, the most ever in the G20. Amitabh Kant is the G20 Sherpa of India. India is on a mission to create a shared global future with a rules-based order, peace, and just growth for all through its Amrit Kaal initiative.

• Theme of India’s G20 presidency: “Vasudhaiva Kutumbakam” or “One Earth - One Family - One Future”.
• Troika: During the presidency, the Troika would consist of Indonesia, India and Brazil. 
• Invitees: Other than the members and multilateral institutions, nine countries have been invited - Bangladesh, Netherlands, Oman, Singapore, Nigeria, Spain and the United Arab Emirates, Egypt, and Mauritius.
• African representation: To make G20 more inclusive, India has proposed to include the African Union as a full-time member.
• Challenge for India presidency: In its various G20 meetings, India as a host, has been unable to draft a final joint statement acceptable to all members due to Russia-Ukraine tensions.

India's G20 Priorities

• Green Development, Climate Finance and Lifestyle for Environment (LiFE): India's emphasis on combating climate change, with a focus on climate technology and finance, as well as ensuring equitable energy transitions for developing nations.
• Accelerated, Inclusive & Resilient Growth:Focus on initiatives that could result in structural change, such as: assisting small and medium-sized businesses in international trade, advancing labour rights and welfare, addressing the global skills gap, and constructing inclusive agricultural value chains and food systems.
• Accelerating progress on SDGs: Recommitment to achieving the goals outlined in the 2030 Agenda for Sustainable Development, with an emphasis on addressing the COVID-19 pandemic's effects.
• Technological Transformation and Digital Public Infrastructure: Encouragement of a human-centric view of technology and increased knowledge exchange in areas like financial inclusion, digital public infrastructure, and tech-enabled development in industries like agriculture and education.
• Multilateral Institutions for the 21st century: Efforts to reform multilateralism and build a more accountable, inclusive, and representative global order capable of addressing the challenges of the twenty-first century.
• Women-led Development: In order to promote socio-economic development and the achievement of the SDGs, emphasis should be placed on inclusive growth and development, with a focus on women's empowerment and representation.

Significance of India’s G20 Presidency

• India’s growing economic influence: As the fastest-growing large economy, India’s role in the G20 is critical, and its presidency will help it further strengthen its economic ties with other G20 members.
• India’s leadership on climate change: India has been a strong advocate for climate action. As the world grapples with the challenge of climate change, India’s presidency can help set the tone for global cooperation on this issue.
• India’s focus on inclusive growth: By prioritising inclusive growth, India’s presidency will focus on issues such as infrastructure development, job creation, and women’s empowerment.
• India’s strategic importance: The presidency of the G20 will provide a platform for India to engage with other major powers, including the United States, China, and Russia, on issues of global importance.
• Becoming the voice of Global South: By holding the meeting of the Global South countries along with G20 meetings, India has become the voice of the erstwhile sidelined Global South.
• India’s role in quality healthcare: India has played a leading role in ensuring that developing and low-income countries have access to vaccines, financing, and other resources they need to recover from the pandemic. Thus, India can ensure universal, quality, and affordable health services.

India’s global superpower ambition and an opportunity to lead the world

Context

In September 2014, during his initial meeting with President Barack Obama, Prime Minister Narendra Modi articulated his vision of positioning the United States as a key partner in facilitating India's ascent as a responsible and influential global power. This marked the first instance where an Indian Prime Minister openly expressed the nation's aspiration to evolve into a responsible and influential world power.

India in World politics

• India is not new to playing a proactive role in world politics: Right from Independence, India’s leadership had actively pursued an agenda that favoured the interests of developing or less developed countries.
• India took a form stand against the domination of developed countries: Whether it was the GATT negotiations or the Non-Proliferation Treaty, India took a principled stand and stood up to the policy domination of the developed world.
• India as a protector of developing world: India’s role as the protector of the interests of the developing world during WTO negotiations has been significant.
• For instance: Murasoli Maran, as the Minister of Commerce in the Vajpayee government, played a very critical role in preventing developed countries from pushing through their trade and commercial agendas. The UPA government continued that approach, inviting opprobrium and occasional isolation from the interested players. However, that didn’t deter India from opposing agendas that were seen as against the interests of not only its people but also the larger developing world.
• India added moral dimension to the developing world but seen as obstructionist: India’s significant contribution in all these fora was that it added a moral dimension to the developed world’s monetary vision. However, India, in the process, acquired the image of being a nay-sayer and obstructionist.

India’s smart shift in its approach

• Proactive Global Role: India, while safeguarding its strategic autonomy and championing the cause of the developing world, has proactively engaged in finding solutions to global challenges.
• Paris Climate Summit and New Priorities: The Paris Climate Summit in 2015 provided a crucial platform for India to emphasize its evolving priorities. India played a pivotal role in securing the climate deal, ensuring that the concerns of the developing world were safeguarded.
• PM Modi's Stand on Justice: Prime Minister Modi eloquently conveyed India's stance on justice, asserting that developing countries should be allowed to grow within their carbon capacity. This advocacy led to developed nations agreeing to the principle of "common and differentiated responsibility."
• Introduction of INDCs: India successfully advocated for the formulation of "intended nationally determined contributions" (INDCs) instead of externally imposed targets, gaining consensus from developed countries.
• Global Significance During the COVID-19 Pandemic: India's prominence on the global stage was further solidified by its response to the COVID-19 pandemic. Through the "Vaccine Maitri" program, India not only conducted a massive domestic vaccination campaign but also supplied vaccines to over 90 countries, showcasing its global responsibility.
• Economic Resilience Post-COVID: India's importance has grown across various domains, including a commendable economic recovery post-COVID. The World Bank revised its GDP growth projections for 2022 to 6.9%, while the IMF estimated it at 6.8%, surpassing global growth projections of 4.9%.

India in a new year

• Stronger ties with African nations: The India Africa Forum Summit (IAFS), started in 2008 as a triennial event by then Prime Minister Manmohan Singh, met for the third time in 2015 in Delhi. PM Modi took a special interest in cultivating stronger ties with African nations which led to the highest-ever participation in the Summit. It is important to revive the process.
• India’s crucial role in Russia-Ukraine war: At the Bali G20 Summit, India played a crucial role in ensuring that both Russia and its critics like the US had their say on the Russia-Ukraine war in a dignified way without being interrupted. On its part, India conveyed to the Russian leadership that it was not a time for war. The new year will bring an opportunity before India to play a role in ending the war.
• Opportunity to set new agenda for global public good: As G20 chair, India has the opportunity to set a new agenda before the world’s most powerful block of nations. In the past, it always worked for the judicious sharing of global public goods. It is time now to undertake similar efforts for global digital and genetic goods.

Way ahead

• India must continue to act as voice of global south: While striving to achieve its ambition, India must not lose sight of the principles that it always championed. It must continue to act as the voice of the Global South.
• Focus on neighbourhood must increase: India’s diplomatic, strategic and political investments in its neighbourhood and Asia, Africa and Latin America must increase.
• Attention in ASEAN IOR must grow: With SAARC failing and BIMSTEC remaining a non-starter, India’s attention to the ASEAN and Indian Ocean neighbourhood must grow. India’s Act East policy needs more teeth.
• India must bring moralist dimensions in new tech developments: India always upheld moralism in global politics. In climate talks, too, the Indian side is resorting to traditional wisdom to achieve global good. India must bring that moralist dimension to new technological developments.
• India must lead to regulate technologies for humanity’s future: The advent of artificial intelligence and genetic manipulation technologies is going to throw the world into turmoil. If not regulated globally on time, these technologies are going to play havoc with humanity’s future.

Conclusion
As the new year dawns, India finds itself in a positive position with leadership roles in key multilateral organizations such as the G20 and SCO. This presents an opportune moment for India to realize its ambitions of becoming a significant global power. However, challenges accompany opportunities, particularly the potential for China to impede India's aspirations by maintaining tension along the border. India must navigate these challenges delicately, seeking a harmonious balance to safeguard its interests and ambitions on the world stage.