PIB Summary- 19th July, 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

India and Malaysia to increase cooperation in the field of Oil palm and other sectors

Context

Union Minister Shivraj Singh Chouhan and Malaysian Minister Johari Abdul Ghani met on July 18, 2024, to discuss enhancing India-Malaysia cooperation in agriculture.

Key topics included the National Mission on Edible Oil, market access issues, institutional cooperation, and digital technology in plantations. Both sides expressed optimism for continued collaboration.

Analysis of the news:

• The Union Minister for Agriculture & Farmers Welfare and Rural Development of India, Shri Shivraj Singh Chouhan, met with the Minister for Plantations and Commodities of Malaysia, Shri Datuk Seri Johari Abdul Ghani, on July 18, 2024.
• The Malaysian Minister is visiting India from July 16-19, 2024.
• The meeting focused on enhancing bilateral cooperation in agriculture, particularly in the oil palm sector.
• Discussions included collaboration on the National Mission on Edible Oil- Oil Palm, addressing market access issues for agricultural and allied products, institutionalising agricultural cooperation, and applying digital technology in the plantation sector.

India – Malaysia Relations

• Significance of Malaysia for India Strategic Location: Malaysia’s strategic location in Southeast Asia is crucial for India’s maritime security and trade routes, facilitating connectivity between the Indian and Pacific Oceans.
• Agricultural Collaboration: Oil palm is a crucial aspect of India-Malaysia relations, with Malaysia being one of the world’s largest producers.
• India imports significant quantities of palm oil from Malaysia for its edible oil needs. This trade relationship supports Malaysia’s economy and addresses India’s demand for affordable cooking oil.
• Economic Ties: Malaysia is one of India’s key trade partners in ASEAN, with significant bilateral trade in goods and services. It serves as a hub for Indian investments in the region.
• Investment Opportunities: Malaysian investments in India span various sectors, including technology, infrastructure, and manufacturing, boosting economic cooperation.
• Diaspora Community: A large Indian diaspora in Malaysia strengthens cultural and economic ties, contributing to bilateral relations through trade, tourism, and cultural exchange.
• Strategic Partnership: Both nations can cooperate on regional security, counterterrorism, and maritime security, enhancing mutual strategic interests and regional stability.

Report on “Electronics: Powering India’s Participation in Global Value Chains” by NITI Aayog released today

Context

NITI Aayog’s report outlines a strategy for India to become a global electronics powerhouse, targeting USD 500 billion in manufacturing by FY30 and generating 5.5 to 6 million jobs.

The plan emphasizes boosting production, enhancing design capabilities, diversifying into new tech areas, and overcoming existing challenges.

Analysis of the news:

• NITI Aayog’s report titled “Electronics: Powering India’s Participation in Global Value Chains” highlights India’s potential and challenges in the electronics sector.
• Global Value Chains (GVCs) are crucial, accounting for 70% of international trade; electronics represent 75% of its exports.
• India’s electronics sector grew to USD 155 billion in FY23, with production nearly doubling from USD 48 billion in FY17 to USD 101 billion.
• Mobile phones drive the sector, now constituting 43% of production, and India manufactures 99% of smartphones domestically.
• Despite progress, India holds only 4% of the global electronics market, mainly focusing on assembly with limited design and component capabilities.
• The global electronics market is valued at USD 4.3 trillion, with India exporting about USD 25 billion annually.
• Projections show India’s electronics manufacturing could reach USD 278 billion by FY30 in a Business As Usual scenario, generating 3.4 million jobs and USD 111 billion in exports.
• For India to achieve its target of USD 500 billion by FY30, including USD 350 billion from finished goods and USD 150 billion from components, it needs substantial policy support and strategic interventions.
• The strategy includes enhancing production in mobile phones, expanding into wearables, IoT devices, and automotive electronics, and improving components manufacturing.