International Relations: October 2021 Current Affairs | UPSC Mains: International Relations PDF Download

 Page 1


 
13                                                                                                                                                                       
Efforts by India in development cooperation 
• Indian Technical and Economic Cooperation (ITEC) 
programme, India’s capacity-building initiative was 
constituted in 1964 and emerged as a prominent 
aspect of the development cooperation by 2015. 
• India Aid Mission (IAM) launched in Nepal in 1952. 
• ‘New, Emerging and Strategic Technologies’ (NEST) 
division is being set to facilitate collaboration with 
foreign countries on advanced technologies, as well 
as geographical divisions for better coordination. 
• In Ethiopia, India provided better quality 
germplasm, new technology for processing and 
access to markets, apart from support for packaging 
for better access to European markets. 
• India has been supporting the developmental 
endeavours of several partner countries in Africa 
and Asia. 
2. INTERNATIONAL RELATIONS 
2.1. INDIA’S DEVELOPMENT COOPERATION 
Why in News? 
Enhancing the efficacy of India’s development cooperation endeavors has been a challenging issue for the past several 
decades. 
Background 
• The first effort by India to shape a framework for India’s development cooperation was in 2003 with the 
announcement of the India Development Initiative (IDI).  
• Subsequently, the Indian Development and Economic Assistance Scheme (IDEAS) was launched in 2005 for 
managing credit lines.  
• In 2007, Govt suspended IDI and announced the setting up of the India International Development Cooperation 
Agency (IIDCA), which never took off. 
• There has been clear lack of firm institutional foundation to support India’s Development Cooperation. 
• India needs a clear vision to lead a sustainable development agenda while positioning itself as a global power with 
interests beyond its immediate neighborhood.  
o To achieve this, there is an urgent need to push for reforms in existing institutional structures on development 
cooperation.  
India’s development cooperation 
• Indian model of developmental cooperation is 
comprehensive and involves multiple instruments 
including grant-in-aid, line of credit and capacity building 
and technical assistance.  
o Depending on the priorities of partner countries, 
India’s development cooperation ranges from 
commerce to culture, energy to engineering, health 
to housing, IT to infrastructure, sports to science, 
disaster relief and humanitarian assistance to 
restoration and preservation of cultural and heritage 
assets. 
• Currently, India’s development cooperation objectives are 
broadly based on the South-South cooperation (SSC) 
framework — a technical cooperation tool among the 
developing countries in the Global South. 
• Although the allocation is less than 1% of India’s overall budget, it is still a significant contribution as compared to 
other high-income countries, such as Australia (US$ 2.8 billion, 0.22 percent of GDP), South Korea (0.15 percent of 
GDP) and Austria (0.27 percent of GDP), considering India’s US$ 2 billion in credit lines. 
• The Development Partnership Administration (DPA), housed within the Ministry of External Affairs, is responsible 
for the overall management, coordination and administration of India’s development partnerships 
• In the last couple of years, India’s assistance to other developing countries has multiplied several times.  
o On average, India provides development assistance of $6.48 billion and receives assistance of $6.09 billion 
annually from key partners as Official Development Assistance (ODA). 
o ODA involves financial or technical help given by one country’s government to another country to assist social 
and economic development or to respond to a disaster in the receiving country. 
Need for India’s development cooperation Agency 
• Evolution in geopolitics: Future economic diplomacy agencies will have to be located in a new geopolitical 
dimension that goes far beyond the impulse of the Bandung Conference of 1955, which set up cooperation channel s 
between Asia and Africa in the colonial and post-colonial era. 
Page 2


 
13                                                                                                                                                                       
Efforts by India in development cooperation 
• Indian Technical and Economic Cooperation (ITEC) 
programme, India’s capacity-building initiative was 
constituted in 1964 and emerged as a prominent 
aspect of the development cooperation by 2015. 
• India Aid Mission (IAM) launched in Nepal in 1952. 
• ‘New, Emerging and Strategic Technologies’ (NEST) 
division is being set to facilitate collaboration with 
foreign countries on advanced technologies, as well 
as geographical divisions for better coordination. 
• In Ethiopia, India provided better quality 
germplasm, new technology for processing and 
access to markets, apart from support for packaging 
for better access to European markets. 
• India has been supporting the developmental 
endeavours of several partner countries in Africa 
and Asia. 
2. INTERNATIONAL RELATIONS 
2.1. INDIA’S DEVELOPMENT COOPERATION 
Why in News? 
Enhancing the efficacy of India’s development cooperation endeavors has been a challenging issue for the past several 
decades. 
Background 
• The first effort by India to shape a framework for India’s development cooperation was in 2003 with the 
announcement of the India Development Initiative (IDI).  
• Subsequently, the Indian Development and Economic Assistance Scheme (IDEAS) was launched in 2005 for 
managing credit lines.  
• In 2007, Govt suspended IDI and announced the setting up of the India International Development Cooperation 
Agency (IIDCA), which never took off. 
• There has been clear lack of firm institutional foundation to support India’s Development Cooperation. 
• India needs a clear vision to lead a sustainable development agenda while positioning itself as a global power with 
interests beyond its immediate neighborhood.  
o To achieve this, there is an urgent need to push for reforms in existing institutional structures on development 
cooperation.  
India’s development cooperation 
• Indian model of developmental cooperation is 
comprehensive and involves multiple instruments 
including grant-in-aid, line of credit and capacity building 
and technical assistance.  
o Depending on the priorities of partner countries, 
India’s development cooperation ranges from 
commerce to culture, energy to engineering, health 
to housing, IT to infrastructure, sports to science, 
disaster relief and humanitarian assistance to 
restoration and preservation of cultural and heritage 
assets. 
• Currently, India’s development cooperation objectives are 
broadly based on the South-South cooperation (SSC) 
framework — a technical cooperation tool among the 
developing countries in the Global South. 
• Although the allocation is less than 1% of India’s overall budget, it is still a significant contribution as compared to 
other high-income countries, such as Australia (US$ 2.8 billion, 0.22 percent of GDP), South Korea (0.15 percent of 
GDP) and Austria (0.27 percent of GDP), considering India’s US$ 2 billion in credit lines. 
• The Development Partnership Administration (DPA), housed within the Ministry of External Affairs, is responsible 
for the overall management, coordination and administration of India’s development partnerships 
• In the last couple of years, India’s assistance to other developing countries has multiplied several times.  
o On average, India provides development assistance of $6.48 billion and receives assistance of $6.09 billion 
annually from key partners as Official Development Assistance (ODA). 
o ODA involves financial or technical help given by one country’s government to another country to assist social 
and economic development or to respond to a disaster in the receiving country. 
Need for India’s development cooperation Agency 
• Evolution in geopolitics: Future economic diplomacy agencies will have to be located in a new geopolitical 
dimension that goes far beyond the impulse of the Bandung Conference of 1955, which set up cooperation channel s 
between Asia and Africa in the colonial and post-colonial era. 
 
14                                                                                                                                                                       
• Post pandemic opportunity: Post-pandemic, countries worldwide are exploring ways to reinvigorate their 
development cooperation efforts. This gels well with the increase in the scope of development cooperation 
following higher economic growth and rising trade and investment flows to emerging markets and developing 
economies.  
• Enhancing Bilateral relations: India’s development 
cooperation is moving towards a need-driven approach 
where meeting the partner country’s development 
objectives goes hand-in-hand with India’s objective for 
strengthening the bilateral relationships through 
private sector investments. 
• Effective Accountability and evaluation framework: As 
India’s development cooperation grows, the spending 
will come under public scrutiny; this requires an 
effective accountability and evaluation framework. The 
lack of information disseminated in the public domain 
about India’s current development cooperation framework has been widely criticised by policy experts.  
o This opacity makes monitoring and evaluation difficult and creates a credibility crisis. 
Way Forward 
• Independent development partnership agency: The proposed new entity should  
o address better delivery, monitoring and evaluation mechanisms,  
o should engage with new actors, especially from civil society and the private sector 
o provide handholding to select performing Indian social enterprises to operate in other countries as well.  
o facilitate development partnerships between India and other countries.  
o support partner countries in combating natural disasters (Nepal), political and humanitarian crises (Maldives, 
Afghanistan), and in building social infrastructure (Kenya, Madagascar). 
• India’s Development Cooperation Act, 2022: India’s upcoming Development Cooperation Act should reflect that a 
focused approach towards addressing global crisis is in its national interest. 
• Restructure development finance apparatus: It is high time India restructures its development finance apparatus 
for deeper and effective engagement and to address the rapidly evolving newer competitive development financing 
landscape. 
• Learn from its own programmes: India’s own development experience is evolving with programmes like the JAM 
trinity, Ayushman Bharat and other initiatives like Gati Shakti — the learnings from which should be absorbed in the 
portfolio to be shared with fellow developing countries. 
2.2. INDIA-CENTRAL ASIA  
Why in news? 
Recently, Foreign minister was in Kyrgyzstan on a 
bilateral visit, where he announced a $200 million 
credit line and later attended a meeting of the 
Conference on Interaction and Confidence-Building 
Measures in Asia (CICA) in Kazakhstan. 
India-Central Asia relations: From Past to Present 
• Central Asian Republics (Kazakhstan, Kyrgyzstan, 
Turkmenistan, Tajikistan, and Uzbekistan) form a 
part of India’s extended neighbourhood.  
• India has several millennia old historical, cultural 
and civilisational links with Central Asia (Refer 
timeline).  
Page 3


 
13                                                                                                                                                                       
Efforts by India in development cooperation 
• Indian Technical and Economic Cooperation (ITEC) 
programme, India’s capacity-building initiative was 
constituted in 1964 and emerged as a prominent 
aspect of the development cooperation by 2015. 
• India Aid Mission (IAM) launched in Nepal in 1952. 
• ‘New, Emerging and Strategic Technologies’ (NEST) 
division is being set to facilitate collaboration with 
foreign countries on advanced technologies, as well 
as geographical divisions for better coordination. 
• In Ethiopia, India provided better quality 
germplasm, new technology for processing and 
access to markets, apart from support for packaging 
for better access to European markets. 
• India has been supporting the developmental 
endeavours of several partner countries in Africa 
and Asia. 
2. INTERNATIONAL RELATIONS 
2.1. INDIA’S DEVELOPMENT COOPERATION 
Why in News? 
Enhancing the efficacy of India’s development cooperation endeavors has been a challenging issue for the past several 
decades. 
Background 
• The first effort by India to shape a framework for India’s development cooperation was in 2003 with the 
announcement of the India Development Initiative (IDI).  
• Subsequently, the Indian Development and Economic Assistance Scheme (IDEAS) was launched in 2005 for 
managing credit lines.  
• In 2007, Govt suspended IDI and announced the setting up of the India International Development Cooperation 
Agency (IIDCA), which never took off. 
• There has been clear lack of firm institutional foundation to support India’s Development Cooperation. 
• India needs a clear vision to lead a sustainable development agenda while positioning itself as a global power with 
interests beyond its immediate neighborhood.  
o To achieve this, there is an urgent need to push for reforms in existing institutional structures on development 
cooperation.  
India’s development cooperation 
• Indian model of developmental cooperation is 
comprehensive and involves multiple instruments 
including grant-in-aid, line of credit and capacity building 
and technical assistance.  
o Depending on the priorities of partner countries, 
India’s development cooperation ranges from 
commerce to culture, energy to engineering, health 
to housing, IT to infrastructure, sports to science, 
disaster relief and humanitarian assistance to 
restoration and preservation of cultural and heritage 
assets. 
• Currently, India’s development cooperation objectives are 
broadly based on the South-South cooperation (SSC) 
framework — a technical cooperation tool among the 
developing countries in the Global South. 
• Although the allocation is less than 1% of India’s overall budget, it is still a significant contribution as compared to 
other high-income countries, such as Australia (US$ 2.8 billion, 0.22 percent of GDP), South Korea (0.15 percent of 
GDP) and Austria (0.27 percent of GDP), considering India’s US$ 2 billion in credit lines. 
• The Development Partnership Administration (DPA), housed within the Ministry of External Affairs, is responsible 
for the overall management, coordination and administration of India’s development partnerships 
• In the last couple of years, India’s assistance to other developing countries has multiplied several times.  
o On average, India provides development assistance of $6.48 billion and receives assistance of $6.09 billion 
annually from key partners as Official Development Assistance (ODA). 
o ODA involves financial or technical help given by one country’s government to another country to assist social 
and economic development or to respond to a disaster in the receiving country. 
Need for India’s development cooperation Agency 
• Evolution in geopolitics: Future economic diplomacy agencies will have to be located in a new geopolitical 
dimension that goes far beyond the impulse of the Bandung Conference of 1955, which set up cooperation channel s 
between Asia and Africa in the colonial and post-colonial era. 
 
14                                                                                                                                                                       
• Post pandemic opportunity: Post-pandemic, countries worldwide are exploring ways to reinvigorate their 
development cooperation efforts. This gels well with the increase in the scope of development cooperation 
following higher economic growth and rising trade and investment flows to emerging markets and developing 
economies.  
• Enhancing Bilateral relations: India’s development 
cooperation is moving towards a need-driven approach 
where meeting the partner country’s development 
objectives goes hand-in-hand with India’s objective for 
strengthening the bilateral relationships through 
private sector investments. 
• Effective Accountability and evaluation framework: As 
India’s development cooperation grows, the spending 
will come under public scrutiny; this requires an 
effective accountability and evaluation framework. The 
lack of information disseminated in the public domain 
about India’s current development cooperation framework has been widely criticised by policy experts.  
o This opacity makes monitoring and evaluation difficult and creates a credibility crisis. 
Way Forward 
• Independent development partnership agency: The proposed new entity should  
o address better delivery, monitoring and evaluation mechanisms,  
o should engage with new actors, especially from civil society and the private sector 
o provide handholding to select performing Indian social enterprises to operate in other countries as well.  
o facilitate development partnerships between India and other countries.  
o support partner countries in combating natural disasters (Nepal), political and humanitarian crises (Maldives, 
Afghanistan), and in building social infrastructure (Kenya, Madagascar). 
• India’s Development Cooperation Act, 2022: India’s upcoming Development Cooperation Act should reflect that a 
focused approach towards addressing global crisis is in its national interest. 
• Restructure development finance apparatus: It is high time India restructures its development finance apparatus 
for deeper and effective engagement and to address the rapidly evolving newer competitive development financing 
landscape. 
• Learn from its own programmes: India’s own development experience is evolving with programmes like the JAM 
trinity, Ayushman Bharat and other initiatives like Gati Shakti — the learnings from which should be absorbed in the 
portfolio to be shared with fellow developing countries. 
2.2. INDIA-CENTRAL ASIA  
Why in news? 
Recently, Foreign minister was in Kyrgyzstan on a 
bilateral visit, where he announced a $200 million 
credit line and later attended a meeting of the 
Conference on Interaction and Confidence-Building 
Measures in Asia (CICA) in Kazakhstan. 
India-Central Asia relations: From Past to Present 
• Central Asian Republics (Kazakhstan, Kyrgyzstan, 
Turkmenistan, Tajikistan, and Uzbekistan) form a 
part of India’s extended neighbourhood.  
• India has several millennia old historical, cultural 
and civilisational links with Central Asia (Refer 
timeline).  
 
15                                                                                                                                                                       
• India deals with Central Asia at multiple levels. Firstly, at the bilateral level, secondly, at the multilateral level 
through platforms such as the SCO, the Conference on Interaction and Confidence-Building Measures in Asia (CICA) 
and the United Nations. Thirdly, multi-layered engagement between India and Central Asia such as the India-
Central Asia Dialogue at the foreign minister’s level. 
 
Significance of Central Asia for India  
• Natural and mineral resources: These countries are endowed with commercially viable quantities of most minerals 
like coal, oil, gas, uranium, gold, lead, zinc, iron ore, tin, copper, manganese etc. Kyrgyzstan and Tajikistan have 
enormous hydel resources. Thus, the region can help in India’s quest for energy security. 
• Geostrategic: Traditionally, Central Asia has been an arena of "great game". The modern version is being played out 
even today. Russia, China, US, Turkey, Iran, Europe, EU, Japan, Pakistan, India, Afghanistan have all substantial 
security and economic interests in the region.   
o Also, the region lies at the crossroads of Russia, the Middle East, South Asia and the Far East. Any geopolitical 
changes in the region inevitably extend their impact on several states in the neighbourhood. 
• Security: Peace and stability in the region is crucial factor for India's security as challenges to Indian security have 
traditionally come overland from the northwest. Illegal Drug trade emanating from ‘Golden Crescent’ of opium 
production (Iran-Pak-Afghan) is threat to regional security. 
o Religious extremism, fundamentalism and terrorism are other challenges. Any advance by Islamic extremist 
groups in the region could invigorate similar elements active in Kashmir. 
• Agriculture: Central Asia has huge cultivable areas lying barren and without being put to any productive use. 
Uzbekistan alone offers an enormous opportunity for cultivation of pulses. Indian agribusiness companies can 
setup commercial agro-industrial complexes in Central Asia. 
Page 4


 
13                                                                                                                                                                       
Efforts by India in development cooperation 
• Indian Technical and Economic Cooperation (ITEC) 
programme, India’s capacity-building initiative was 
constituted in 1964 and emerged as a prominent 
aspect of the development cooperation by 2015. 
• India Aid Mission (IAM) launched in Nepal in 1952. 
• ‘New, Emerging and Strategic Technologies’ (NEST) 
division is being set to facilitate collaboration with 
foreign countries on advanced technologies, as well 
as geographical divisions for better coordination. 
• In Ethiopia, India provided better quality 
germplasm, new technology for processing and 
access to markets, apart from support for packaging 
for better access to European markets. 
• India has been supporting the developmental 
endeavours of several partner countries in Africa 
and Asia. 
2. INTERNATIONAL RELATIONS 
2.1. INDIA’S DEVELOPMENT COOPERATION 
Why in News? 
Enhancing the efficacy of India’s development cooperation endeavors has been a challenging issue for the past several 
decades. 
Background 
• The first effort by India to shape a framework for India’s development cooperation was in 2003 with the 
announcement of the India Development Initiative (IDI).  
• Subsequently, the Indian Development and Economic Assistance Scheme (IDEAS) was launched in 2005 for 
managing credit lines.  
• In 2007, Govt suspended IDI and announced the setting up of the India International Development Cooperation 
Agency (IIDCA), which never took off. 
• There has been clear lack of firm institutional foundation to support India’s Development Cooperation. 
• India needs a clear vision to lead a sustainable development agenda while positioning itself as a global power with 
interests beyond its immediate neighborhood.  
o To achieve this, there is an urgent need to push for reforms in existing institutional structures on development 
cooperation.  
India’s development cooperation 
• Indian model of developmental cooperation is 
comprehensive and involves multiple instruments 
including grant-in-aid, line of credit and capacity building 
and technical assistance.  
o Depending on the priorities of partner countries, 
India’s development cooperation ranges from 
commerce to culture, energy to engineering, health 
to housing, IT to infrastructure, sports to science, 
disaster relief and humanitarian assistance to 
restoration and preservation of cultural and heritage 
assets. 
• Currently, India’s development cooperation objectives are 
broadly based on the South-South cooperation (SSC) 
framework — a technical cooperation tool among the 
developing countries in the Global South. 
• Although the allocation is less than 1% of India’s overall budget, it is still a significant contribution as compared to 
other high-income countries, such as Australia (US$ 2.8 billion, 0.22 percent of GDP), South Korea (0.15 percent of 
GDP) and Austria (0.27 percent of GDP), considering India’s US$ 2 billion in credit lines. 
• The Development Partnership Administration (DPA), housed within the Ministry of External Affairs, is responsible 
for the overall management, coordination and administration of India’s development partnerships 
• In the last couple of years, India’s assistance to other developing countries has multiplied several times.  
o On average, India provides development assistance of $6.48 billion and receives assistance of $6.09 billion 
annually from key partners as Official Development Assistance (ODA). 
o ODA involves financial or technical help given by one country’s government to another country to assist social 
and economic development or to respond to a disaster in the receiving country. 
Need for India’s development cooperation Agency 
• Evolution in geopolitics: Future economic diplomacy agencies will have to be located in a new geopolitical 
dimension that goes far beyond the impulse of the Bandung Conference of 1955, which set up cooperation channel s 
between Asia and Africa in the colonial and post-colonial era. 
 
14                                                                                                                                                                       
• Post pandemic opportunity: Post-pandemic, countries worldwide are exploring ways to reinvigorate their 
development cooperation efforts. This gels well with the increase in the scope of development cooperation 
following higher economic growth and rising trade and investment flows to emerging markets and developing 
economies.  
• Enhancing Bilateral relations: India’s development 
cooperation is moving towards a need-driven approach 
where meeting the partner country’s development 
objectives goes hand-in-hand with India’s objective for 
strengthening the bilateral relationships through 
private sector investments. 
• Effective Accountability and evaluation framework: As 
India’s development cooperation grows, the spending 
will come under public scrutiny; this requires an 
effective accountability and evaluation framework. The 
lack of information disseminated in the public domain 
about India’s current development cooperation framework has been widely criticised by policy experts.  
o This opacity makes monitoring and evaluation difficult and creates a credibility crisis. 
Way Forward 
• Independent development partnership agency: The proposed new entity should  
o address better delivery, monitoring and evaluation mechanisms,  
o should engage with new actors, especially from civil society and the private sector 
o provide handholding to select performing Indian social enterprises to operate in other countries as well.  
o facilitate development partnerships between India and other countries.  
o support partner countries in combating natural disasters (Nepal), political and humanitarian crises (Maldives, 
Afghanistan), and in building social infrastructure (Kenya, Madagascar). 
• India’s Development Cooperation Act, 2022: India’s upcoming Development Cooperation Act should reflect that a 
focused approach towards addressing global crisis is in its national interest. 
• Restructure development finance apparatus: It is high time India restructures its development finance apparatus 
for deeper and effective engagement and to address the rapidly evolving newer competitive development financing 
landscape. 
• Learn from its own programmes: India’s own development experience is evolving with programmes like the JAM 
trinity, Ayushman Bharat and other initiatives like Gati Shakti — the learnings from which should be absorbed in the 
portfolio to be shared with fellow developing countries. 
2.2. INDIA-CENTRAL ASIA  
Why in news? 
Recently, Foreign minister was in Kyrgyzstan on a 
bilateral visit, where he announced a $200 million 
credit line and later attended a meeting of the 
Conference on Interaction and Confidence-Building 
Measures in Asia (CICA) in Kazakhstan. 
India-Central Asia relations: From Past to Present 
• Central Asian Republics (Kazakhstan, Kyrgyzstan, 
Turkmenistan, Tajikistan, and Uzbekistan) form a 
part of India’s extended neighbourhood.  
• India has several millennia old historical, cultural 
and civilisational links with Central Asia (Refer 
timeline).  
 
15                                                                                                                                                                       
• India deals with Central Asia at multiple levels. Firstly, at the bilateral level, secondly, at the multilateral level 
through platforms such as the SCO, the Conference on Interaction and Confidence-Building Measures in Asia (CICA) 
and the United Nations. Thirdly, multi-layered engagement between India and Central Asia such as the India-
Central Asia Dialogue at the foreign minister’s level. 
 
Significance of Central Asia for India  
• Natural and mineral resources: These countries are endowed with commercially viable quantities of most minerals 
like coal, oil, gas, uranium, gold, lead, zinc, iron ore, tin, copper, manganese etc. Kyrgyzstan and Tajikistan have 
enormous hydel resources. Thus, the region can help in India’s quest for energy security. 
• Geostrategic: Traditionally, Central Asia has been an arena of "great game". The modern version is being played out 
even today. Russia, China, US, Turkey, Iran, Europe, EU, Japan, Pakistan, India, Afghanistan have all substantial 
security and economic interests in the region.   
o Also, the region lies at the crossroads of Russia, the Middle East, South Asia and the Far East. Any geopolitical 
changes in the region inevitably extend their impact on several states in the neighbourhood. 
• Security: Peace and stability in the region is crucial factor for India's security as challenges to Indian security have 
traditionally come overland from the northwest. Illegal Drug trade emanating from ‘Golden Crescent’ of opium 
production (Iran-Pak-Afghan) is threat to regional security. 
o Religious extremism, fundamentalism and terrorism are other challenges. Any advance by Islamic extremist 
groups in the region could invigorate similar elements active in Kashmir. 
• Agriculture: Central Asia has huge cultivable areas lying barren and without being put to any productive use. 
Uzbekistan alone offers an enormous opportunity for cultivation of pulses. Indian agribusiness companies can 
setup commercial agro-industrial complexes in Central Asia. 
 
16                                                                                                                                                                       
• Trade and Investment: Central Asia is a huge consumer market for a range of goods and services, which India can 
provide. For India, economic cooperation is possible through joint ventures in banking, insurance, agriculture, 
information technology, and the pharmaceutical industry. 
o Large Indian companies can bid for road and railway construction, electric power transmission and 
distribution, telecommunications, power generation, etc. 
o Import of spices from Central Asia could increase the volume of trade between Kyrgyzstan, Tajikistan and 
Uzbekistan, on the one hand, and India, on the other. 
Challenges in development of India-Central Asian relationships 
• Poor connectivity: The key constraint India faces is the lack of direct access to Central Asia. The adverse 
geographic terrain and the thorny India-Pakistan border dynamic, greatly impedes connectivity, thereby curbing 
greater economic cooperation between India and the region. 
o Further, planned connectivity projects are facing serious financial, political, and security challenges, frustrating 
oil, and gas diplomacy.  
• Unrealised trade potential:  India’s trade with the region amounts to US$ 2 billion, owing to limited connectivity 
and low economic engagement with the region. This amount is less than 0.5 percent of India’s total trade, 
whereas the region’s trade with China amounts to US$ 100 billion.  
o Besides the physical barriers, factors such as trade regulatory hindrances and political fragility have often 
created obstacles in the free flow of trade within the region. 
• Energy geopolitics: Various reports suggest Indo-Pacific region will become increasingly reliant on oil from the 
Middle East and Central Asia. The scramble for oil and gas in Central Asia has attracted several actors in the region. 
The presence of major powers in the region constrains India as a latecomer. 
o China has emerged as the dominant player, as compared to India, by providing loans and investing heavily 
in the region through ambitious projects like Belt and Road Initiative (BRI) .  
• Volatile Security scenario: In addition to traditional security threats, instability in Afghanistan and Pakistan, 
concerns regarding confrontation between Iran and the United States, diminishes reliability and safety required for 
trade and commerce, discouraging investments. 
• Internal dynamics: Delineation of borders by communist leadership overlooked many ethnic, tribal, linguistic, 
geographical, and even economic factors. Consequently, the post-soviet era saw problems of governance, 
regulation of movement across the borders and many inter-state disputes. 
o The fall in the oil and commodity prices, compounded by Western sanctions on Russia, has, however, 
impacted the economies of the Central Asian countries.  
Ways to enhance the relationships 
• Deepening engagement: India could take the initiative to set up an India-Central Asia Forum Summit on the lines 
of the India-Africa Forum Summit to discuss issues of mutual concern and to come up with concrete suggestions.   
o India should also facilitate the setting up of India-Central Asia Think Tank Forum to discuss and debate 
economics, history, politics, and business at the Track-2 level.  
o In economic realm, it is in India’s interest to expeditiously finalise the much-awaited Free Trade 
Agreement (FTA) between India and the Eurasian Econo mic Union (EAEU). 
• Revitalizing interaction in cooperation with third countries: There is a possibility of India, the US and Russia 
cooperating in areas such as non-conventional sources of energy, thus containing the dangers of drug trafficking 
and other negative activities.  
o This will go a long way in stabilising the region, as well as ensuring the interests of all partners. 
• Defence cooperation: Apart from annual exercises (like KAZIND with Kazakhstan), joint manufacturing, especially in 
the defence sector is highly required. Defence cooperation should be institutionalised through mechanisms like 
setting up a Joint Working Group on defence related activities. An India-Central Asia Defence Expo could be 
organised. 
• Capacity Building: India can strengthen its outreach in Central Asia by providing assistance in augmenting the Social 
Capital through programs like the Indian Technical and Economic Cooperation (ITEC) Programme and the Indian 
Council for Cultural Relations (ICCR). MEA should prepare a proper database of former students/ trainees of these 
programs.  
Page 5


 
13                                                                                                                                                                       
Efforts by India in development cooperation 
• Indian Technical and Economic Cooperation (ITEC) 
programme, India’s capacity-building initiative was 
constituted in 1964 and emerged as a prominent 
aspect of the development cooperation by 2015. 
• India Aid Mission (IAM) launched in Nepal in 1952. 
• ‘New, Emerging and Strategic Technologies’ (NEST) 
division is being set to facilitate collaboration with 
foreign countries on advanced technologies, as well 
as geographical divisions for better coordination. 
• In Ethiopia, India provided better quality 
germplasm, new technology for processing and 
access to markets, apart from support for packaging 
for better access to European markets. 
• India has been supporting the developmental 
endeavours of several partner countries in Africa 
and Asia. 
2. INTERNATIONAL RELATIONS 
2.1. INDIA’S DEVELOPMENT COOPERATION 
Why in News? 
Enhancing the efficacy of India’s development cooperation endeavors has been a challenging issue for the past several 
decades. 
Background 
• The first effort by India to shape a framework for India’s development cooperation was in 2003 with the 
announcement of the India Development Initiative (IDI).  
• Subsequently, the Indian Development and Economic Assistance Scheme (IDEAS) was launched in 2005 for 
managing credit lines.  
• In 2007, Govt suspended IDI and announced the setting up of the India International Development Cooperation 
Agency (IIDCA), which never took off. 
• There has been clear lack of firm institutional foundation to support India’s Development Cooperation. 
• India needs a clear vision to lead a sustainable development agenda while positioning itself as a global power with 
interests beyond its immediate neighborhood.  
o To achieve this, there is an urgent need to push for reforms in existing institutional structures on development 
cooperation.  
India’s development cooperation 
• Indian model of developmental cooperation is 
comprehensive and involves multiple instruments 
including grant-in-aid, line of credit and capacity building 
and technical assistance.  
o Depending on the priorities of partner countries, 
India’s development cooperation ranges from 
commerce to culture, energy to engineering, health 
to housing, IT to infrastructure, sports to science, 
disaster relief and humanitarian assistance to 
restoration and preservation of cultural and heritage 
assets. 
• Currently, India’s development cooperation objectives are 
broadly based on the South-South cooperation (SSC) 
framework — a technical cooperation tool among the 
developing countries in the Global South. 
• Although the allocation is less than 1% of India’s overall budget, it is still a significant contribution as compared to 
other high-income countries, such as Australia (US$ 2.8 billion, 0.22 percent of GDP), South Korea (0.15 percent of 
GDP) and Austria (0.27 percent of GDP), considering India’s US$ 2 billion in credit lines. 
• The Development Partnership Administration (DPA), housed within the Ministry of External Affairs, is responsible 
for the overall management, coordination and administration of India’s development partnerships 
• In the last couple of years, India’s assistance to other developing countries has multiplied several times.  
o On average, India provides development assistance of $6.48 billion and receives assistance of $6.09 billion 
annually from key partners as Official Development Assistance (ODA). 
o ODA involves financial or technical help given by one country’s government to another country to assist social 
and economic development or to respond to a disaster in the receiving country. 
Need for India’s development cooperation Agency 
• Evolution in geopolitics: Future economic diplomacy agencies will have to be located in a new geopolitical 
dimension that goes far beyond the impulse of the Bandung Conference of 1955, which set up cooperation channel s 
between Asia and Africa in the colonial and post-colonial era. 
 
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• Post pandemic opportunity: Post-pandemic, countries worldwide are exploring ways to reinvigorate their 
development cooperation efforts. This gels well with the increase in the scope of development cooperation 
following higher economic growth and rising trade and investment flows to emerging markets and developing 
economies.  
• Enhancing Bilateral relations: India’s development 
cooperation is moving towards a need-driven approach 
where meeting the partner country’s development 
objectives goes hand-in-hand with India’s objective for 
strengthening the bilateral relationships through 
private sector investments. 
• Effective Accountability and evaluation framework: As 
India’s development cooperation grows, the spending 
will come under public scrutiny; this requires an 
effective accountability and evaluation framework. The 
lack of information disseminated in the public domain 
about India’s current development cooperation framework has been widely criticised by policy experts.  
o This opacity makes monitoring and evaluation difficult and creates a credibility crisis. 
Way Forward 
• Independent development partnership agency: The proposed new entity should  
o address better delivery, monitoring and evaluation mechanisms,  
o should engage with new actors, especially from civil society and the private sector 
o provide handholding to select performing Indian social enterprises to operate in other countries as well.  
o facilitate development partnerships between India and other countries.  
o support partner countries in combating natural disasters (Nepal), political and humanitarian crises (Maldives, 
Afghanistan), and in building social infrastructure (Kenya, Madagascar). 
• India’s Development Cooperation Act, 2022: India’s upcoming Development Cooperation Act should reflect that a 
focused approach towards addressing global crisis is in its national interest. 
• Restructure development finance apparatus: It is high time India restructures its development finance apparatus 
for deeper and effective engagement and to address the rapidly evolving newer competitive development financing 
landscape. 
• Learn from its own programmes: India’s own development experience is evolving with programmes like the JAM 
trinity, Ayushman Bharat and other initiatives like Gati Shakti — the learnings from which should be absorbed in the 
portfolio to be shared with fellow developing countries. 
2.2. INDIA-CENTRAL ASIA  
Why in news? 
Recently, Foreign minister was in Kyrgyzstan on a 
bilateral visit, where he announced a $200 million 
credit line and later attended a meeting of the 
Conference on Interaction and Confidence-Building 
Measures in Asia (CICA) in Kazakhstan. 
India-Central Asia relations: From Past to Present 
• Central Asian Republics (Kazakhstan, Kyrgyzstan, 
Turkmenistan, Tajikistan, and Uzbekistan) form a 
part of India’s extended neighbourhood.  
• India has several millennia old historical, cultural 
and civilisational links with Central Asia (Refer 
timeline).  
 
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• India deals with Central Asia at multiple levels. Firstly, at the bilateral level, secondly, at the multilateral level 
through platforms such as the SCO, the Conference on Interaction and Confidence-Building Measures in Asia (CICA) 
and the United Nations. Thirdly, multi-layered engagement between India and Central Asia such as the India-
Central Asia Dialogue at the foreign minister’s level. 
 
Significance of Central Asia for India  
• Natural and mineral resources: These countries are endowed with commercially viable quantities of most minerals 
like coal, oil, gas, uranium, gold, lead, zinc, iron ore, tin, copper, manganese etc. Kyrgyzstan and Tajikistan have 
enormous hydel resources. Thus, the region can help in India’s quest for energy security. 
• Geostrategic: Traditionally, Central Asia has been an arena of "great game". The modern version is being played out 
even today. Russia, China, US, Turkey, Iran, Europe, EU, Japan, Pakistan, India, Afghanistan have all substantial 
security and economic interests in the region.   
o Also, the region lies at the crossroads of Russia, the Middle East, South Asia and the Far East. Any geopolitical 
changes in the region inevitably extend their impact on several states in the neighbourhood. 
• Security: Peace and stability in the region is crucial factor for India's security as challenges to Indian security have 
traditionally come overland from the northwest. Illegal Drug trade emanating from ‘Golden Crescent’ of opium 
production (Iran-Pak-Afghan) is threat to regional security. 
o Religious extremism, fundamentalism and terrorism are other challenges. Any advance by Islamic extremist 
groups in the region could invigorate similar elements active in Kashmir. 
• Agriculture: Central Asia has huge cultivable areas lying barren and without being put to any productive use. 
Uzbekistan alone offers an enormous opportunity for cultivation of pulses. Indian agribusiness companies can 
setup commercial agro-industrial complexes in Central Asia. 
 
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• Trade and Investment: Central Asia is a huge consumer market for a range of goods and services, which India can 
provide. For India, economic cooperation is possible through joint ventures in banking, insurance, agriculture, 
information technology, and the pharmaceutical industry. 
o Large Indian companies can bid for road and railway construction, electric power transmission and 
distribution, telecommunications, power generation, etc. 
o Import of spices from Central Asia could increase the volume of trade between Kyrgyzstan, Tajikistan and 
Uzbekistan, on the one hand, and India, on the other. 
Challenges in development of India-Central Asian relationships 
• Poor connectivity: The key constraint India faces is the lack of direct access to Central Asia. The adverse 
geographic terrain and the thorny India-Pakistan border dynamic, greatly impedes connectivity, thereby curbing 
greater economic cooperation between India and the region. 
o Further, planned connectivity projects are facing serious financial, political, and security challenges, frustrating 
oil, and gas diplomacy.  
• Unrealised trade potential:  India’s trade with the region amounts to US$ 2 billion, owing to limited connectivity 
and low economic engagement with the region. This amount is less than 0.5 percent of India’s total trade, 
whereas the region’s trade with China amounts to US$ 100 billion.  
o Besides the physical barriers, factors such as trade regulatory hindrances and political fragility have often 
created obstacles in the free flow of trade within the region. 
• Energy geopolitics: Various reports suggest Indo-Pacific region will become increasingly reliant on oil from the 
Middle East and Central Asia. The scramble for oil and gas in Central Asia has attracted several actors in the region. 
The presence of major powers in the region constrains India as a latecomer. 
o China has emerged as the dominant player, as compared to India, by providing loans and investing heavily 
in the region through ambitious projects like Belt and Road Initiative (BRI) .  
• Volatile Security scenario: In addition to traditional security threats, instability in Afghanistan and Pakistan, 
concerns regarding confrontation between Iran and the United States, diminishes reliability and safety required for 
trade and commerce, discouraging investments. 
• Internal dynamics: Delineation of borders by communist leadership overlooked many ethnic, tribal, linguistic, 
geographical, and even economic factors. Consequently, the post-soviet era saw problems of governance, 
regulation of movement across the borders and many inter-state disputes. 
o The fall in the oil and commodity prices, compounded by Western sanctions on Russia, has, however, 
impacted the economies of the Central Asian countries.  
Ways to enhance the relationships 
• Deepening engagement: India could take the initiative to set up an India-Central Asia Forum Summit on the lines 
of the India-Africa Forum Summit to discuss issues of mutual concern and to come up with concrete suggestions.   
o India should also facilitate the setting up of India-Central Asia Think Tank Forum to discuss and debate 
economics, history, politics, and business at the Track-2 level.  
o In economic realm, it is in India’s interest to expeditiously finalise the much-awaited Free Trade 
Agreement (FTA) between India and the Eurasian Econo mic Union (EAEU). 
• Revitalizing interaction in cooperation with third countries: There is a possibility of India, the US and Russia 
cooperating in areas such as non-conventional sources of energy, thus containing the dangers of drug trafficking 
and other negative activities.  
o This will go a long way in stabilising the region, as well as ensuring the interests of all partners. 
• Defence cooperation: Apart from annual exercises (like KAZIND with Kazakhstan), joint manufacturing, especially in 
the defence sector is highly required. Defence cooperation should be institutionalised through mechanisms like 
setting up a Joint Working Group on defence related activities. An India-Central Asia Defence Expo could be 
organised. 
• Capacity Building: India can strengthen its outreach in Central Asia by providing assistance in augmenting the Social 
Capital through programs like the Indian Technical and Economic Cooperation (ITEC) Programme and the Indian 
Council for Cultural Relations (ICCR). MEA should prepare a proper database of former students/ trainees of these 
programs.  
 
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Connectivity efforts by India 
• International North-South Transport Corridor (INSTC) 
agreement in 2000 also offers connectivity between 
India and Central Asia through Iran. 
• India has also explored the possibility of connecting with 
Central Asia via Iran’s Chabahar port and thereafter 
overland corridors passing through Afghanistan. 
• To facilitate transport of goods between India and 
Central Asia via Iran, India acceded to the Customs 
Convention on International Transport of Goods under 
cover of TIR Carnets in 2017 and joined the Ashgabat 
Agreement, which includes Iran, Oman, Turkmenistan, 
and Uzbekistan in 2018. 
o Under High Impact Community Development Projects (HICDP), India provides Grant assistance for furthering 
socio-economic development. 
o India’s rich experience in managing the local-self-
government can also be helpful to Central Asian 
countries where mahalla culture (local self-
government) is widely prevalent. 
• Soft-diplomacy approach: In contrast to China’s 
images as a coercive-assertive hegemon, debt-trap 
diplomacy and rising anti-China sentiments 
amongst the population of the region, India can 
use its soft diplomacy to take the opportunities 
presented in the region. 
Conclusion 
With the actualization of the BRI, India’s Connect Central Asia policy, and the EU’s new Central Asia strategy, the 21st 
century could possibly be the most decisive period for the region. Stemming from its historic cultural and economic 
bonds, India is now well placed to take a more active role in the development of the region.  
2.3. NEWS IN SHORTS 
2.3.1. UNITED NATIONS HUMAN RIGHTS COUNCIL (UNHRC) 
• India was re-elected to the United Nations Human Rights Council (UNHRC) for the 2022-24 term. 
o India's current term was set to end on December 31 2021. 
• The UNHRC consists of 47 Member States elected directly and individually by secret ballot by the majority of the 
members of the General Assembly. 
o The members of the Council shall serve for a period of three years and shall not be eligible for immediate re-election 
after two consecutive terms. 
2.3.2. NORD STREAM 2 PIPELINE 
• Recently, the Nord Stream 2 (NS2) which is 
running across Russia to Germany is now 
completed. 
• NS2 is a new export gas pipeline running from 
Russia to Europe across the Baltic Sea.  
o NS2’s construction began in 2018 and is 
being implemented by the Nord Stream 2 
AG project company. 
• The decision to build Nord Steam 2 was based 
on the successful experience in building and 
operating the Nord Stream gas pipeline.  
o The new pipeline, like the one in operation, 
will establish a direct link between Gazprom 
and the European consumers. 
• Significance of NS2 Pipeline 
o Economical and Environment-friendly: The 
1,224 km, $11-billion underwater link is the 
shortest, most economical and 
environment-friendly route to double 
Russia’s gas export to Germany.  
o Energy security to europe: It will also 
ensure a highly reliable supply of Russian gas to Europe.