International Relations - 5 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

India-Australia Ministerial Dialogue

Context

The second India-Australia 2+2 Ministerial Dialogue took place in New Delhi, India, with the participation of the Foreign Affairs Ministers and Defense Ministers from both countries.

What are the Key Highlights of the India-Australia 2+2 Ministerial Dialogue?

• Enhanced Cooperation:
  • Both nations emphasized further cooperation in information exchange and Indo-Pacific Maritime Domain Awareness (MDA), underlining the importance of these aspects in strengthening their strategic ties.
  • The Quad’s Indo-Pacific MDA is in the implementation phase, slated to be a prominent agenda item at the upcoming Quad summit hosted by India.
• Implementing Arrangements:
  • Both sides discussed the implementing arrangements on hydrography cooperation and cooperation for air-to-air refueling, signaling a step toward concrete collaboration in defense areas.
• Niche Training Areas:
  • There's a shared vision to collaborate in specialized training areas such as Artificial Intelligence (AI), Anti-Submarine Warfare, anti-drone warfare, and the cyber domain, highlighting a commitment to developing advanced defense capabilities.
• Defense Industry Collaboration:
  • Both countries recognized the potential of deepening cooperation in defense industry and research as a means to enhance their already strong relationship.
  • They Identified potential areas of collaboration including shipbuilding, ship repair and maintenance, as well as aircraft maintenance, repair, and overhaul.
• Research in Underwater Technologies:
  • Discussion on joint research in underwater technologies and collaboration between defense start-ups signifies a push for innovation and technological advancement in defense strategies.
• Reaffirmed Bilateral Defense Relations:
  • Both countries reaffirmed commitment to strengthen bilateral defense relations and expressed satisfaction over increasing military-to-military cooperation, joint exercises, exchanges, and institutional dialogues.

How have been the India- Australia Relations so far?

• Historical Perspective:
  • Diplomatic relations between Australia and India were first established in the pre-Independence period, with the opening of the Consulate General of India as a Trade Office in Sydney in 1941.
  • Relations faced a setback when Australia condemned India's nuclear tests in 1998.
  • In 2014, a significant step was taken with Australia signing a Uranium supply deal with India, acknowledging India's non-proliferation record.
• Strategic Ties:
  • In 2020, the bilateral relationship was elevated from a Strategic Partnership to a Comprehensive Strategic Partnership during the India-Australia Leaders' Virtual Summit.
  • The prime ministers of both countries met during COP26 at Glasgow in 2021.
  • High-level engagements and ministerial visits occurred in 2022 and 2023, including the 2nd India-Australia Virtual Summit.
• Defence Cooperation:
  • The 2+2 Ministerial Dialogue took place in September 2021, and the Deputy Prime Minister and Defence Minister of Australia visited India in June 2022.
  • The Mutual Logistics Support Agreement (MLSA) was signed during the Virtual Summit in June 2020 to enhance defense cooperation.
  • Australia will host the "Malabar" exercises in August 2023, with participation from India, Japan, and the US.
  • India has been invited to join the Talisman Sabre exercises in 2023.
• China Factor:
  • Strained Australia-China ties, including issues like the ban on Huawei and calls for a Covid-19 origins inquiry, have led to trade barriers and severed ministerial contact.
  • India faces Chinese aggression along the border, contributing to shared concerns between Australia and India.
  • Both countries support a rules-based international order and are active participants in the Quad (India, Australia, US, Japan).
• Multilateral Cooperation:
  • Members of the Quad, Commonwealth, Indian Ocean Rim Association (IORA), ASEAN Regional Forum, Asia Pacific Partnership on Climate and Clean Development, and participants in the East Asia Summits.
  • Cooperating as members of the Five Interested Parties (FIP) in the World Trade Organization.
  • Australia supports India's membership in the Asia Pacific Economic Cooperation (APEC).
• Economic Cooperation:
  • Economic Cooperation Trade Agreement (ECTA), the first free trade agreement signed by India with a developed country in a decade, came into force in December 2022.
  • Immediate reduction of duty on significant exports and zero duty on a substantial portion of bilateral trade.
  • Partners in the Supply Chain Resilience Initiative (SCRI) with Japan, aiming to enhance supply chain resilience in the Indo-Pacific Region.
  • Bilateral trade reached USD 27.5 billion in 2021, with the potential to reach around USD 50 billion in five years.
• Cooperation on Clean Energy:
  • In February 2022, a Letter of Intent on New and Renewable Energy was signed for cooperation in reducing the cost of renewable energy technologies.
  • Australia committed AUD 10 million for Pacific Island Countries under the International Solar Alliance (ISA).
  • Both countries committed USD 5.8 million to the three-year India-Australia Critical Minerals Investment Partnership.

What are the Challenges in India-Australia Relations?

• Adani Coal Mine Controversy: There was controversy over the Adani coal mine project in Australia, with some activists protesting against it, which created a strain in the relationship between the two countries.
• Visa Issues: There have been concerns over visa restrictions for Indian students and professionals seeking to work in Australia.
• Violence with Indian Diaspora: Attacks on Indian Diaspora and temples in the recent past by Khalistan supporters have been an issue of strain.

Way Forward

• The India-Australia relations have strengthened in recent years due to shared values, interests, geography, and objectives.
• Both countries envision a free, open, inclusive, and rules-based Indo-Pacific region, unilateral or coercive actions are not preferred and are to be avoided in resolving any disagreements or conflicts.
• Renewed relationship between India- Australia through initiatives such as India Australia bilateral Summits give an opportunity to further strengthen the ties between the two countries to play an active role in ensuring rule-based order in the Indo-Pacific.

Sri Lanka’s Debt Crisis and Paris Club 

Context

• Sri Lanka has recently concluded an initial debt restructuring agreement with India and the Paris Club Group, clearing the path for the resumption of a halted International Monetary Fund (IMF) loan program. This development is crucial for Sri Lanka, which faced a debt default in 2022, as it enables the country to access the next installment of a USD 3 billion IMF lending arrangement that was agreed upon in March 2023.
• In the context of sovereign debt, a default occurs when a country is incapable of fulfilling its financial commitments to its creditors. This inability to meet financial obligations can manifest in various forms and carries significant implications for the country's economic stability.

What is Sri Lanka’s Debt Scenario?

• Sri Lanka has foreign debts of about USD 46 bn, the largest share of which is owed to Chinese lenders, with Japan, India and commercial bondholders also large creditors.
• Sri Lanka has yet to reach a deal with the commercial bondholders, which could yet slow down progress on the country’s economic recovery.
• Sri Lanka in May 2022 became the first country in the Asia-Pacific to default on its debts in two decades, the result of domestic economic mismanagement and a surge in global inflation following the coronavirus pandemic and Russia’s invasion of Ukraine.
• A sharp drop in foreign currency reserves led to shortages of imported food, fuel and medicine, devastating living standards on the island and triggering mass protests in 2022.

What is the Paris Club?

• About:
  • The Paris Club is a group of mostly western creditor countries that grew from a 1956 meeting in which Argentina agreed to meet its public creditors in Paris.
    • It describes itself as a forum where official creditors meet to solve payment difficulties faced by debtor countries.
  • Their objective is to find sustainable debt-relief solutions for countries that are unable to repay their bilateral loans.
• Members:
  • The members are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Japan, Netherlands, Norway, Russia, South Korea, Spain, Sweden, Switzerland, the United Kingdom and the United States.
  • All 22 are members of the group called Organisation for Economic Co-operation and Development (OECD).
• Involved in Debt Agreements:
  • According to its official website, Paris Club has reached 478 agreements with 102 different debtor countries.
  • Since 1956, the debt treated in the framework of Paris Club agreements amounts to USD 614 billion.
• Recent Developments:
  • The Paris group countries dominated bilateral lending in the last century, but their importance has receded over the last two decades or so with the emergence of China as the world’s biggest bilateral lender.
  • In Sri Lanka’s case, for instance, India, China, and Japan are the largest bilateral creditors.
    • Sri Lanka’s debt to China is 52% of its bilateral debt, 19.5% to Japan, and 12% to India.

How is India Helping Sri Lanka with Debt Management and Economic Development?

• Contribution to Debt Restructuring: India has actively participated in collaborating with the International Monetary Fund (IMF) and other creditors to assist Sri Lanka in restructuring its debt. India took the lead by being the first country to express support through a letter for financing and debt restructuring in Sri Lanka.
• Connectivity and Renewable Energy: The two nations share a joint vision that underscores comprehensive connectivity, encompassing People-to-People connectivity and a focus on renewable energy. This collaborative approach is evident in Indian companies undertaking renewable energy projects in northeastern Sri Lanka, showcasing an increasing partnership in the energy sector.
• Economic and Technology Cooperation Agreement (ETCA): India and Sri Lanka are exploring the potential for an Economic and Technology Cooperation Agreement (ETCA) aimed at integrating their economies and promoting mutual development.
• Multi-Project Petroleum Pipeline Agreement: A significant agreement involves the establishment of a multi-product petroleum pipeline from southern India to Sri Lanka. This initiative is designed to ensure a cost-effective and reliable supply of energy resources to Sri Lanka, recognizing the pivotal role of energy in economic development.
• Adoption of India's UPI: Sri Lanka has adopted India's Unified Payments Interface (UPI) service, marking a noteworthy advancement in fintech connectivity between the two nations. Additionally, the use of the Indian rupee for trade settlement is contributing to Sri Lanka's economic recovery and growth. These initiatives represent tangible steps in supporting Sri Lanka's economic revitalization.

Gujral Doctrine of Foreign Policy

Context

The 11th death anniversary of IK Gujral, the 12th Prime Minister of India, was observed on November 30. He holds a distinctive place in Indian political history as the only Prime Minister associated with a foreign policy approach known as the Gujral Doctrine.

Who is Inder Kumar Gujaral?

• Inder Kumar Gujral was sworn in as the 12^th Prime Minister of India from April 1997 to May 1998.
• IK Gujral can be remembered for two significant contributions to Indian foreign policy:
  • He propounded the 'Gujral doctrine' when he was the Union minister of External Affairs from 1996 to 1997.
  • Despite international pressure, Gujral firmly refused to sign the Comprehensive Test Ban Treaty (CTBT) in October 1996.

What is the Gujral Doctrine?

The Gujral Doctrine, articulated during a speech at Chatham House in London in September 1996, outlined India's approach toward its neighboring countries, encapsulating five fundamental principles:

• India, surrounded by neighbors like Nepal, Bangladesh, Bhutan, Maldives, and Sri Lanka, would not seek reciprocity but rather offer assistance wholeheartedly, guided by goodwill and trust.
• South Asian nations would not tolerate the use of their territory to harm the interests of another country in the region.
• None of the South Asian countries would interfere in the internal affairs of another.
• All South Asian countries must respect each other's territorial integrity and sovereignty.
• Nations would settle all their disputes through peaceful bilateral negotiations.

The Gujral Doctrine asserted that India, given its substantial size and population, naturally assumed a key role in South East Asia. To enhance its standing and reputation, the doctrine advocated adopting a non-dominant approach towards smaller neighboring countries, recognizing the supreme importance of maintaining friendly and cordial relations with them. It also emphasized the significance of ongoing dialogue and refraining from unnecessary provocations, such as commenting on the internal affairs of other nations.

How Successful was the Gujral Doctrine?

• Gujral’s approach to foreign policy helped strengthen trust and cooperation in India’s neighborhood.
• The Water-Sharing Treaty, 1977 between India and Bangladesh expired in 1988, and negotiations failed due to inflexibility on both sides. The resolution of the water-sharing dispute with Bangladesh came in just three months in 1996-97.
• India obtained Bhutanese approval for a canal project to increase water flow to the Ganga.
• This almost coincided with the treaty with Nepal for taming the Mahakali river for the generation of hydel power.
• It was followed by agreements with Sri Lanka for expanding development cooperation.
• Also, it led to the starting of composite dialogue with Pakistan.
  • The composite dialogue was based on the principle that entire spectrums of relationships came under sincere problem-solving dialogues.
  • Cooperation must begin on agreed terms in agreed areas (trade, travel, culture etc.) even as certain disputes remain unresolved.

What are the Criticism of Gujral Doctrine?

• Lenient approach toward Pakistan: Gujral doctrine was criticized for going too soft on Pakistan, and leaving India vulnerable to the threats of the future, including the many terror attacks.
• Security Concerns: It was perceived by some as being too idealistic and neglecting India's security concerns. Critics argued that the doctrine did not adequately address the security challenges posed by some of India's neighbors, especially in the context of historical conflicts and ongoing geopolitical issues.
• Failure to Address Bilateral Issues: The Gujral Doctrine did not effectively address long standing bilateral issues between India and its neighbors. For example, issues like territorial disputes, and cross-border terrorism were not given sufficient attention according to some critics.
• Domestic Opposition: Some argued that the emphasis on goodwill and non-reciprocity might be perceived as weakness and could be exploited by adversaries.

Way Forward

• Balancing Idealism and Realism: Future foreign policies should strike a balance between idealistic principles and realistic assessments of security challenges. Ensuring national security should be a paramount consideration.
• Comprehensive Conflict Resolution: Addressing unresolved bilateral issues with neighbors requires a comprehensive and proactive approach. Dialogue must encompass territorial disputes and security concerns.
• Adapting to Evolving Threats: Recognizing the evolving nature of security threats, future doctrines should incorporate strategies to counter terrorism and ensure the safety of the nation.
• Strengthening Regional Alliances: Building on the positive aspects of the Gujral Doctrine, India should continue strengthening regional alliances and cooperation for mutual benefit.
• Public Diplomacy and Domestic Consensus: In crafting foreign policies, fostering domestic consensus is crucial. Public diplomacy efforts can help in conveying the rationale behind diplomatic decisions, mitigating potential domestic opposition.

India Offers Agricultural Line of Credit to Kenya

Context

In a recent visit by Kenya's President to India, India announced a USD 250 million line of credit (LOC) to support the modernization of Kenya's agricultural sector. A line of credit is a prearranged borrowing limit that can be accessed when needed. The borrower can withdraw funds as necessary up to the established limit. Once repaid, the funds become available for borrowing again, making it a flexible financing arrangement.

What are the Key Highlights of the Recent Visit of Kenya’s President?

• India and Kenya signed five pacts providing for cooperation in a range of areas including sports, education and digital solution, and unveiled a joint vision document to scale up maritime engagement in the Indian Ocean region.
• India also raised the issue of two Indian nationals who went missing in the east African country last year.
• Both sides agreed to strengthen bilateral ties in the field of defense, trade, energy, digital public infrastructure and healthcare.
• Both sides deliberated on defense cooperation and emphasized on military exercises, capacity building as well as linking the defense industries of both the countries .
• Kenya invited Indian companies to take advantage of the conducive and attractive environment to invest in Kenya, especially in agriculture, manufacturing, pharmaceutical, health, green energy and green mobility sectors.
• Terrorism is the most serious challenge and both sides have decided to increase counter-terror cooperation.

What are the Key Points Related to Kenya?

• Kenya is situated in East Africa, characterized by a landscape that ascends from a low coastal plain along the Indian Ocean to mountains and plateaus at its center. Its strategic location between the Indian Ocean and Lake Victoria has historically facilitated trade and travel, attracting people from various regions of Africa and the Middle East. This has contributed to a rich and diverse culture with numerous ethnic groups and languages.
• The Turkana Basin in Kenya is notable for yielding the bones of one of the earliest human ancestors ever discovered. Lake Turkana, the largest desert lake globally, is part of the Omo-Turkana basin, spanning four countries: Ethiopia, Kenya, South Sudan, and Uganda.
• Additionally, Nairobi, the capital city of Kenya, serves as the headquarters for UN-Habitat at the United Nations Office.

Illegal Indian Migration to the U.S.

Context

The recent incident, where 303 Indians were forcibly returned after being detained at a French airport, sheds light on the growing issue of illegal migration from India. The distress and desperation experienced by Indian youths, exacerbated by factors such as the farming crisis, have contributed to a notable increase in illegal migration from the country.

Increasing illegal migration numbers

• According to the latest U.S. Customs and Border Protection data, from November 2022 to September 2023, up to 96,917 Indians were arrested while crossing illegally into the U.S.
• In 2019-20,19,883 Indians were apprehended. In 2020-21, up to 30,662 Indians were arrested, while in 2021-22 this number was 63,927.

What is donkey routes used by the illegal migrants?

• The phenomenon of illegal migration from India is often referred to as taking the 'donkey routes.' This term denotes a method in which migrants navigate through countries with lenient visa policies to reach their desired destinations, primarily the U.S., the U.K., Canada, and the EU.
• Illegal migrants may resort to perilous methods to cross borders, including:
  • Traversing dense forests inhabited by wild animals and criminal gangs.
    Traveling in sub-zero temperatures.
    Crossing rivers and other water bodies in rickety boats under treacherous conditions.
• For entering Europe, a common route used by illegal migrants involves exploiting Siberia's visa-free regime for Indians. They create fake travel histories to enter Siberia and then proceed to Austria, Hungary, Romania, and ultimately reach Italy and France.
• In the case of entering the U.S., countries like Ecuador, Bolivia, and Guyana offer visas on arrival for Indian citizens. Illegal migrants may use this route to enter the U.S. Some migrants also opt for a route where they first travel to Europe and then directly to Mexico before finally entering the U.S.

What are the factors propelling illegal Migration from India?

• Agrarian Distress: The farming crisis in India is characterized by low agricultural productivity, burdensome debts, and unpredictable weather patterns. This crisis has resulted in a sharp decline in incomes, heightening the vulnerability of individuals and making them susceptible to exploitation.
• Youth Unemployment: The prevalence of high youth unemployment in rural areas, such as in Punjab, has propelled individuals to seek illegal migration as an alternative.
• Economic Hardship: Widespread poverty and economic difficulties serve as major factors driving illegal migration.
• Limited Educational Opportunities: The lack of access to quality education hampers skill development among the youth, compelling them to seek higher-paying unskilled jobs abroad.
• Social Pressures: Social and familial expectations create pressure on young individuals to contribute a stable income to their families, prompting them to explore opportunities abroad.
• Ineffective Government Policies: The paralysis in implementing government policies related to agriculture, employment, and economic development has further aggravated the challenges contributing to illegal migration.
• Trafficking Racket and Exploitation: A prevalent trafficking racket, particularly in rural Punjab and Haryana, preys on individuals with promises of a better future in the U.S., exacerbating the issue of illegal migration from India.

What should be the way forward?

To address the multifaceted challenge of illegal migration from India, the following measures should be considered:

• Agricultural Reforms: Strengthen and expand policies such as PM-KISAN, with a focus on integrating technology and improving market access. This approach aims to increase agricultural income and alleviate agrarian distress.
• Job Creation: Enhance the coverage of MGNREGA and introduce sector-specific initiatives to stimulate employment opportunities in rural areas.
• Education and Skill Development: Invest in education infrastructure and promote vocational training through initiatives like the Skill India Mission to enhance employability.
• Social Welfare Programs: Extend the reach and effectiveness of existing social welfare schemes, ensuring they cater to the specific needs of vulnerable populations.
• International Collaboration: Collaborate with destination countries, including the U.S. and Europe, to share best practices and establish fair and legal migration pathways.

By implementing these targeted interventions, India can work towards a more sustainable and inclusive future. Addressing the root causes of illegal migration and providing viable alternatives will empower citizens and foster an environment conducive to growth and prosperity.