International Relations - 4 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Oslo Forum and Afghan Peace Talks

Context

• A report on a peace conference held in Oslo, Norway, where representatives from the Taliban met with Indian and Pakistani special envoys, as well as officials from other countries and international diplomats.

Details

• Taliban representatives met with Indian and Pakistani special envoys and international diplomats in Oslo.
• The talks were organized by the Norwegian government to address the impasse in negotiations.
• Afghan diaspora groups criticized the talks for legitimizing the Taliban.

Reasons for the Talks:

• The Norwegian Foreign Minister emphasized the importance of not isolating Afghanistan.
• Isolation could worsen the situation for the Afghan people and create opportunities for terrorist groups like ISIS.
• Three Afghan civil servants, not top leadership, participated in the talks to discuss major challenges in the country.

Humanitarian Crisis in Afghanistan:

• Afghanistan is facing a humanitarian crisis with acute food shortages and human rights violations, including the denial of education and employment to women by the Taliban.

India's Involvement:

• India reopened its mission in Kabul in June 2022 and maintains a technical team overseeing aid and development initiatives.
• India's recent shipment of 20,000 tonnes of wheat arriving via the Chabahar port in Iran was discussed during the talks.

Participants and Discussions:

• Taliban officials held closed-door talks with special envoys from the U.S., the U.K., Norway, Qatar, India, and Pakistan, as well as the head of UNAMA.
• Members of Afghan civil society, including a woman negotiator and a leading lawyer, also participated.
• Concerns were raised about the decision to halt girls' education in Afghanistan.

Priority Areas for Stabilization:

• Discussions highlighted priority areas to stabilize the situation in Afghanistan.
• The Taliban regime received admiration from the U.S. and European delegations for cracking down on opium production in the country.

Criticism and Legitimacy Concerns:

• Afghan diaspora groups, including those in Norway, criticized the talks for legitimizing the Taliban.
• Critics argue that engaging with the Taliban may give them undue credibility and reward their actions.

About Taliban

Emergence in the 1990s:

• The Taliban emerged in the early 1990s in Afghanistan, primarily consisting of Afghan Pashtun students who were educated in religious schools in Pakistan.
• They gained popularity by promising to bring stability, law, and order to a war-torn Afghanistan.

Rise to Power:

• By 1996, the Taliban had captured Kabul and established the Islamic Emirate of Afghanistan, controlling around 90% of the country.
• Their strict interpretation of Islamic law and harsh treatment of women drew international attention and condemnation.

Control and Rule:

• Under Taliban rule, Afghanistan became a safe haven for terrorist groups, including Al-Qaeda, led by Osama bin Laden.
• They imposed a severe version of Sharia law, restricting women's rights, banning forms of entertainment, and enforcing punishments such as public executions and amputations.
• The destruction of ancient Buddha statues in Bamiyan in 2001 drew global outrage.

International Response:

• The Taliban's support for terrorism led to international isolation and sanctions imposed by the United Nations.
• The United States and its allies invaded Afghanistan in October 2001 as a response to the 9/11 attacks, with the goal of removing the Taliban from power and dismantling Al-Qaeda.

Taliban's Insurgency:

• Following their removal from power, the Taliban regrouped and launched an insurgency against the Afghan government and international forces.
• They found support among disenchanted segments of the Afghan population due to corruption, instability, and civilian casualties resulting from the conflict.

Negotiations and Fragmentation:

• Over the years, several attempts were made to engage the Taliban in peace talks to find a political solution to the conflict.
• The Taliban fragmented into different factions, with some more open to negotiations and others continuing the armed struggle.

Return to Power in 2021:

• In August 2021, the Taliban swiftly captured major Afghan cities and ultimately took control of Kabul, leading to the collapse of the Afghan government and President Ashraf Ghani's departure.
• The takeover was facilitated by the withdrawal of international troops, signaling the end of a 20-year military presence in Afghanistan.

International Recognition and Concerns:

• The Taliban's return to power raised concerns about the future of human rights, particularly women's rights, and the potential for Afghanistan to become a safe haven for terrorists once again.
• Various countries and international organizations engaged in discussions with the Taliban, seeking assurances regarding inclusive governance, human rights, and the prevention of terrorism.

Ongoing Challenges:

• The Taliban's rule faces significant challenges, including the need to address the
• country's economic crisis, provide basic services to the population, and gain international recognition and support.
• The international community closely watches the Taliban's actions and commitments, particularly regarding human rights, terrorism, and governance, as Afghanistan enters a new phase under their control.

U.S.-India initiative on Critical and Emerging Technology

Context

Recently, India and the United States have taken a significant step towards strengthening their strategic partnership and driving technology and defense cooperation. Under the Initiative on Critical and Emerging Technologies (iCET), the two nations have unveiled a roadmap for enhanced collaboration in high-technology areas.

• The initiative focuses on addressing regulatory barriers, aligning export controls, and fostering deeper cooperation in critical and emerging fields.

What is the iCET?

• About:
  • The iCET was announced by India and the US in May 2022 and was officially launched in January 2023 and is being run by the National Security Council of both countries.
  • Under iCET, both countries have identified six areas of cooperation which would include co-development and co-production, that would gradually be expanded to QUAD, then to NATO, followed by Europe and the rest of the world.
  • Under iCET, India is ready to share its core technologies with the US and expects Washington to do the same.
  • It aims to promote collaboration in critical and emerging technology areas, including AI, quantum computing, semiconductors, and wireless telecommunication.
• Focus Areas of the Initiative:
  • AI research agency partnership.
  • Defense industrial cooperation, defense technological cooperation, and defense startups.
  • Innovation Ecosystems.
  • Semiconductor ecosystem development.
  • Cooperation on human spaceflight.
  • Advancement in 5G and 6G technologies, and adoption of OpenRAN network technology in India.
• Progress Made So Far:
  • Key achievements include the Quantum Coordination Mechanism, public-private dialogue on telecommunication, important exchanges on AI and space, MoU on establishing a semiconductor supply chain, and conclusion of a roadmap for defense industrial cooperation.
  • The two countries are close to finalizing a mega jet engine deal, and a new initiative called the India-U.S. Defence Acceleration Ecosystem (INDUS-X) is set to be launched.
  • Strategic Trade Dialogue has been established to address regulatory barriers and review export control norms.

How have been India’s Relations with the US?

• Economic Relations:
  • The U.S. has emerged as India's biggest trading partner in 2022-23 on account of increasing economic ties between the two countries.
  • The bilateral trade between India and the U.S. has increased by 7.65% to USD 128.55 in 2022-23 as against USD 119.5 billion in 2021-22.
  • Exports to the U.S. rose by 2.81% to USD 78.31 billion in 2022-23 as against USD 76.18 billion in 2021-22, while imports grew by about 16% to USD 50.24 billion.
• International Cooperations:
  • India and the United States cooperate closely at multilateral organizations, including the United Nations, G-20, Association of Southeast Asian Nations (ASEAN) Regional Forum, International Monetary Fund, World Bank, and World Trade Organization.
  • The United States welcomed India joining the UN Security Council in 2021 for a two-year term and supports a reformed UN Security Council that includes India as a permanent member.
  • Together with Australia and Japan, the United States and India convene as the Quad to promote a free and open Indo-Pacific and provide tangible benefits to the region.
  • India is also one of twelve countries partnering with the United States on the Indo-Pacific Economic Framework for Prosperity (IPEF).
  • India is a member of the Indian Ocean Rim Association (IORA), at which the United States is a dialogue partner.
  • In 2021, the United States joined the International Solar Alliance headquartered in India, and in 2022 the United States Agency for International Development (USAID).

What is OpenRAN Network Technology?

• About:
  • It is a non-proprietary version of the Radio Access Network (RAN) system.
    • A RAN is a major component of a wireless telecommunications system that connects individual devices to other parts of a network through a radio link.
  • Allows interoperability between cellular network equipment from different vendors.
• Advantages of OpenRAN Network Technology:
  • Creates a more open and flexible RAN architecture.
  • Based on open interfaces and virtualization.
  • Supported by industry-wide standards.
  • Cost reduction.
  • Increased competition.
  • Faster innovation.
• Applications of OpenRAN Network Technology:
  • Supporting 5G and 6G networks.
  • Enhancing network performance and security.
  • Enabling new services and capabilities.
  • Bridging the digital divide.

China Blocks Proposal to Blacklist Pakistan-Based Terrorist

Context

• China yet again blocked a proposal by India and the US at the United Nations to designate Pakistan-national Lashkar-e-Taiba terrorist Sajid Mir as a global terrorist on the UN Security Council’s 1267 list..

What is the UNSC 1267 list?

• The UNSC resolution 1267 was adopted unanimously on 15 October 1999.
• It came to force in 1999, and strengthened after the September, 2001 attacks.
• It is now known as the Da’esh and Al Qaeda Sanctions Committee.

What is UNSC 1267 committee?

• It comprises all permanent and non-permanent members of the United Nations Security Council (UNSC).
• The 1267 list of terrorists is a global list, with a UNSC stamp.
• It is one of the most important and active UN subsidiary bodies working on efforts to combat terrorism, particularly in relation to Al Qaeda and the Islamic State group.
• It discusses UN efforts to limit the movement of terrorists, especially those related to travel bans, the freezing of assets and arms embargoes for terrorism.

How is the listing done?

(1) Submission of Proposal

• Any member state can submit a proposal for listing an individual, group, or entity.
• The proposal must include acts or activities indicating the proposed individual/group/entity had participated in the financing, planning, facilitating, preparing, or perpetrating of acts or activities linked to the said organizations.

(2) Actual decision

• Decisions on listing and de-listing are adopted by consensus.
• The proposal is sent to all the members, and if no member objects within five working days, the proposal is adopted.
• An “objection” means rejection for the proposal.

(3) Putting and resolving ‘Technical Holds’

• Any member of the Committee may also put a “technical hold” on the proposal and ask for more information from the proposing member state.
• During this time, other members may also place their own holds.
• The matter remains on the “pending” list of the Committee.
• Pending issues must be resolved in six months, but the member state that has placed the hold may ask for an additional three months.
• At the end of this period, if an objection is not placed, the matter is considered approved.

Why is India furious this time?

• Recently PM Modi and Xi Jinping attended the Shanghai Cooperation Organisation (SCO) summit in Samarkand.
• The grouping had agreed to take strong and consolidated action against terrorism in the region.
• Despite this, China has exposed its double standards on the issue of terrorism for consistently stopping the listing of Pakistan-based terrorists.
• This is again very surprising movement by China by putting a ‘Technical Hold’.

Here is a timeline of how China disrupts the global efforts against terrorism:

• 2009: After the 26/11 Mumbai attacks, India moved an independent terror designation proposal against Masood Azhar but China blocked the move.
• 2016: After seven years, India proposes listing of Masood Azhar as a global terrorist and is supported by the US, the UK and France. China blocks the move again.
• 2017: The trio moves a third proposal only to be blocked by China again.
• 2019: After the attacks on the CRPF personnel in J-K’s Pulwama, India calls 25 envoys of different countries to highlight the role Islamabad plays in funding, promoting and strengthening global terrorism. India moves the fourth proposal demanding Masood Azhar’s listing. China lifted its technical hold.
• June 2022: China blocked a proposal by India and the US to list Pakistan-based terrorist Abdul Rehman Makki as a ‘Global Terrorist’
• August 2022: China blocks India-US joint proposal to list Jaish-e-Mohammad (JeM) deputy chief Abdul Rauf Azhar as UNSC designated terrorist.

Conclusion

• China’s actions expose its double speak and double standards when it comes to the international community’s shared battle against terrorism.
• This clearly depicts its care for its vassal state Pakistan.

India’s Jet Engine Deal with the US

Context

A landmark agreement to facilitate the transfer of at least 11 critical jet engine technologies is likely to be announced during Prime Minister Narendra Modi’s ongoing official State Visit to the United States.

What is the background of the issue?

• India and the U.S. have almost finalised details and the White House is set to sign off on the deal.
• GEA & HAL – The deal will allow American manufacturing company General Electric (GE) Aerospace to share critical technology with Hindustan Aeronautics Limited (HAL).
• Tejas Mk-II – The deal will felicitate for the joint production of GE-F414 jet engines that will power indigenous Light Combat Aircraft (LCA) Tejas Mk-II.
• The proposed agreement has evoked considerable interest in India and beyond.
• Experts have termed it a significant step for bilateral defence and high-tech cooperation amid China’s growing influence and global technological dominance.

When did India’s quest for indigenous aero-engines begin?

• India’s pursuit of self-reliance and technological transformation in the defence sector stems from the necessity to deal with the dual threat along its borders.
• India needs to self-sustain in defence sector in order to maintain strategic autonomy in the emerging world order.
• India has designed and built a fighter jet but hasn’t achieved much success in producing engines to power these aircraft.
• HF-24 Marut – The quest began in the 1960s with the country’s first indigenous fighter, HF-24 Marut.
• Kaveri programme – A few decades later, India sanctioned the Kaveri programme to develop an indigenous military gas turbine engine for the ambitious LCA project.
• With Kaveri still a work in progress, India shortlisted American GE-F404 engines for LCA Tejas Mark-1 as an interim measure.
• F414 engines – In 2010, the Aeronautical Development Agency (ADA) selected the more powerful variant, F414 engines, to power Tejas Mark-2.
• The deal, however, did not materialise due to U.S. domestic legislation and regulatory hindrances and remained on the back burner for over a decade.
• GE-HAL deal – A new framework pushed by PM Modi and President Joe Biden last year put the focus back on the GE-HAL deal.

What will the deal include?

• Co-production of F414 – While there has been no official confirmation yet, senior officials have hinted at a possible collaboration on the co-production of F414 jet engines.
• Tech transfer – Media reports claim that the U.S. has agreed to transfer around 80% transfer of the tech value to India.
• Know-how to a non-ally – This is unprecedented considering that America maintains strict controls over domestic military technology and has never handed over such critical technological know-how to a non-ally in the past.
• The agreement will require final approval from the U.S. Congress before it is inked by the two leaders.

What are the features of the F414 engine?

• F414-INS6 – India has shortlisted the F414-INS6 model for LCA Mk-II for the IAF, and the export market in the future.
• An advanced and more efficient version of the F404 engines conceived in the early ‘90s, F414 engines currently power the LCA Tejas.
• Specifications – The engine’s main specifications are:
  1. An afterburner turbofan 154-inch long engine in the 22,000-pound (98 kilo newtons) thrust class, 35% more thrust than the F404 engines.
  2. A thrust-to-weight ratio of 9:1, which is an indicator of aircraft propulsion.
  3. Has low maintenance costs and boasts of unrestricted engine performance on demand with more than five million engine flight hours.
  4. The engine is designed to maximise time on wings, which is a measure of the operational reliability of an engine.

How crucial is the deal for India?

• 5^th Country – India will become the 5^th country in the world to produce jet engines once the deal is sealed, joining the U.S., Russia, France and the U.K.
• Russia-Ukraine conflict – It helps India in boosting its military capabilities and growing defence manufacturing at a time when the world is reeling due to the impact of the Russia-Ukraine conflict.
• Ageing Russian fighters – The agreement will help replace the fleet of ageing Russian fighters.
• Powerful engines – The deal would bolster India’s capacity to field indigenously produced fighters with powerful and reliable engines, saving decades of research and development costs.

What is the way forward?

• Expanding the type and sophistication of the arms the U.S. is willing to sell to India may elevate the U.S. as an alternative to India’s traditional dependence on Russian hardware.
• This is particularly important, amid rising concerns about Russia’s strategic embrace of China.
• Also there is a growing questions about the quality, reliability, and capacity of a Russian defence industrial base increasingly strained by the Ukraine conflict.

India-Egypt Relations

Context

Recently, the Indian Prime Minister (PM) has visited Egypt for the first time since 1997 to discuss bilateral relations between India and Egypt.

• The Government of Egypt bestowed the highest honor of the land — the Order of the Nile — on the PM.

What are the Key Highlights of the Visit?

• Strategic Partnership Agreement: The visit marked the signing of a strategic partnership agreement between India and Egypt, which is a significant milestone in the bilateral relationship between the two countries. The strategic partnership will have broadly four elements:
  • Political
  • Defense and Security
  • Economic engagement
  • Scientific and academic collaboration.
  • Cultural and people-to-people contact
• Memoranda of Understanding (MoUs): Three MoUs were signed between India and Egypt in the fields of agriculture, archaeology and antiquities, and competition law, aiming to enhance cooperation in these areas.
• Bilateral Discussions: Indian PM and Egypt’s President discussed various topics, including multilateral cooperation at the G-20, food and energy security, Climate Change, and Clean Energy collaboration.
• India Unit in Egyptian Cabinet: 
  • Indian PM met with the India Unit, a group of high-level ministers constituted by Egyptian President in Egyptian Cabinet in March, 2023 to enhance India-Egypt relations.
• Commonwealth War Grave Cemetery: Indian PM paid homage to over 4,300 Indian soldiers who lost their lives in Egypt and Aden during World War I at the Heliopolis Commonwealth War Grave Cemetery.
• Egypt's Participation in G-20 Summit: Egypt was designated as a "guest country" at the upcoming G-20 summit scheduled to be held in September, further strengthening bilateral ties between India and Egypt.
• Al-Hakim Mosque: Indian Prime Minister visited the 11^th-century Al-Hakim Mosque in Cairo, which was restored by India's Dawoodi Bohra community.
  • The mosque was built in 1012 and is the fourth oldest mosque in Cairo. The Dawoodi Bohra Muslims are known for their adherence to the Fatimi Ismaili Tayyibi school of thought and originated from Egypt before establishing a presence in India in the 11th century.

How Has Been the India-Egypt Relations?

• History:
  • The history of contact between India and Egypt, two of the world’s oldest civilizations, can be traced back to at least the time of Emperor Ashoka.
    • Ashoka’s edicts refer to his relations with Egypt under Ptolemy-II.
  • In modern times, Mahatma Gandhi and the Egyptian revolutionary Saad Zaghloul shared the common goal of independence from British colonial rule.
    • The joint announcement of establishment of diplomatic relations at Ambassadorial level was made on 18^th August 1947.
  • India and Egypt signed a friendship treaty in 1955. In 1961, India and Egypt along with Yugoslavia, Indonesia and Ghana established the Non-Aligned Movement (NAM).
  • In 2016, the joint statement between India and Egypt identified political-security cooperation, economic engagement and scientific collaboration, and cultural and people-people ties as the basis of a new partnership for a new era.
• Bilateral Trade:
  • India’s trade with Egypt stood at USD 6,061 million in 2022-23, having declined by 17% over the previous year.
    • Nearly a third of it was petroleum related.
  • India was Egypt’s sixth largest trading partner, while Egypt was India’s 38th in 2022-23.
  • Indian investments in Egypt are spread over 50 projects totalling USD 3.15 billion. Egypt has invested USD 37 million in India.
• Defense Cooperation:
  • The two Air Forces collaborated on the development of fighter aircraft in the 1960s, and Indian pilots trained their Egyptian counterparts from the 1960s until the mid-1980s.
    • Both the Indian Air Force (IAF) and Egyptian air force fly the French Rafale fighter jets.
  • In 2022, a pact was signed between the two countries that have decided to also participate in exercises and cooperate in training.
  • The first joint special forces exercise between the Indian Army and the Egyptian Army, "Exercise Cyclone-I" was completed in January 2023 in Jaisalmer, Rajasthan.
• Cultural Relations:
  • The Maulana Azad Centre for Indian Culture (MACIC) was established in Cairo in 1992. The centre has been promoting cultural cooperation between the two countries.

What are the Opportunities and Challenges for India?

• Opportunities:
  • Combat Religious Extremism: India aims to combat Religious Extremism by supporting moderate countries in the region and promoting social reforms.
    • India has identified it as a key player in the Gulf Region since it maintains a moderate stance on religion, enjoys strong relations with the UAE (United Arab Emirates) and Saudi Arabia (which have made substantial investments in Egypt).
  • Strategically Located: Egypt holds a strategically significant position with the Suez Canal, through which 12% of global trade passes.
    • By enhancing bilateral relations with Egypt, India hopes to advance its goals in the region.
  • Indian Investment: Egypt seeks investments in infrastructure — Metro projects in Cairo and Alexandria, a Suez Canal economic zone, a second channel of the Suez Canal, and a new administrative capital in a Cairo suburb.
    • More than 50 Indian companies have invested more than USD 3.15 billion in Egypt.
  • Similar Socio-Economic Conditions: Egypt is a large country (population 105 million) and economy (USD 378 billion). It is politically stable, and its socio-economic conditions are quite similar to India.
    • Egypt’s largest imports are refined petroleum, wheat (world’s largest importer), cars, corn and pharmaceuticals — all of which India has the potential to supply.
  • Infrastructure Development: Moreover, the Egyptian government has an ambitious infrastructure development agenda, with 49 mega projects including the construction of a New Cairo (USD 58 billion), a USD 25 billion nuclear power plant and a USD 23 billion high-speed rail network.
    • During 2015-19, Egypt was the world’s third-largest arms importer. These present opportunities for India.
• Challenges:
  • Economic Crisis in Egypt: The huge financial commitments of the Egyptian economy have coincided with a static economy, pandemic, global slowdown and the Ukraine conflict.
    • Consequently, tourism has dropped and imports such as cereals have become costly. Annual Inflation is above 30% and the currency has lost more than half its value since February 2022.
  • Abysmal Debt and Forex: Egypt’s foreign debt is over USD 163 billion (43% of the GDP) and its net foreign assets are minus USD 24.1 billion.
    • The acute forex situation compelled the government to issue in January 2023 an order for the postponement of projects with a large foreign currency component and cuts to non-essential spending.
  • China’s Growing Influence: India's concerns regarding China in Egypt revolve around China's growing economic influence, its expanding presence in strategic areas, its bilateral trade agreements, which can have potential implications for India's regional interests and security.
    • China’s bilateral trade with Egypt is currently at USD 15 billion, double that of India’s USD 7.26 billion in 2021-22.
    • During the past eight years, the President of Egypt has traveled to China seven times to lure Chinese investments.

Way Forward

• India needs to carefully balance its exposure to Egypt with the opportunities on hand.
• India may countenance manageable eco-political risks to partake Egypt’s lucrative opportunities through various innovations such as the EXIM line of credit, barter, and rupee trading.
• India should, however, avoid a repetition of its experience of Iraq in the 1980s and 1990s of having to defer its hard-earned construction project dues until they had to eventually be paid off by the Indian taxpayer.
  • Moreover, such an arrangement may set a precedent other similarly placed friendly countries may cite. India may, instead, consider trilateral funding arrangements for such projects in Egypt or elsewhere with its partners in the Gulf, the G-20 or the multilateral financial institutions.

India-UAE Local Currency Settlement System

Context

India and the United Arab Emirates (UAE) signed a Memorandum of Understanding (MoU) to establish a Local Currency Settlement System (LCSS) for using their local currencies, the Indian rupee (INR), and the UAE Dirham (AED), for cross-border transactions. The trade volume between India and UAE reached approximately USD 85 billion in 2022. UAE stands as India’s third-largest trading partner, while India holds the position of being UAE's second-largest trading partner.

What is a Local Currency Settlement System (LCSS)?

The Local Currency Settlement System (LCSS) functions as a mechanism enabling cross-border transactions between two nations to be conducted in their respective domestic currencies. This approach allows exporters and importers to invoice and make payments in their local currencies, thereby reducing dependence on a third-party currency, such as the US dollar. To illustrate, let’s consider a scenario where a company in India exports goods to a company in the United Arab Emirates (UAE). With LCSS in place, the Indian exporter can issue an invoice in Indian rupees (INR), and the UAE importer can make the payment in UAE dirhams (AED).

Advantages: Here are the advantages associated with the implementation of the Local Currency Settlement System (LCSS):

1. Reduction in foreign exchange costs: With LCSS, an Indian exporter can invoice in INR, while a UAE importer can pay in AED, eliminating the need for currency conversion into a third-party currency like USD.

2. Mitigation of exchange rate risks: Companies can manage and hedge exchange rate risks more effectively by conducting transactions in local currencies, thereby limiting losses caused by fluctuations in exchange rates.

3. Improved transaction efficiency: LCSS streamlines transaction processes as parties can invoice and settle payments in their domestic currencies. This reduces complexities and time delays typically associated with currency conversions.

4. Enhanced trade and investment opportunities: The utilization of LCSS promotes bilateral trade and investment between India and the UAE by facilitating easier and more efficient cross-border transactions.

5. Optimized remittances: Indian residents in the UAE can send remittances in INR through LCSS, benefiting from lower transaction costs and faster settlement times.

Other agreements between India and UAE: In addition to LCSS, India and UAE have entered into several other agreements:

1. Linking UPI with IPP: The two countries agreed to link India’s Unified Payments Interface (UPI) with UAE’s Instant Payment Platform (IPP).

2. Mutual acceptance of domestic cards: India and UAE will link their respective Card Switches, specifically RuPay switch and UAESWITCH, to enable mutual acceptance of domestic cards and the processing of these card transactions.

3. Linking of financial messaging systems: India’s Structured Financial Messaging System (SFMS) will be linked with the messaging system in the UAE to ease their financial messaging.

4. Establishment of IIT-Delhi campus: India will establish an IIT-Delhi campus in Abu Dhabi, marking the second IIT campus abroad after Tanzania.