July 2020: International Relations | Additional Study Material for UPSC PDF Download

Underground Nuclear Facility of Iran

Recently, a fire broke out at Natanz, an underground nuclear facility of Iran used for enriching uranium.

• Enriched uranium is a type of uranium in which the percent composition of uranium-235 is increased.

Key Points

➤ Natanz

• Located in Iran's central Isfahan province in Tehran, Natanz hosts the country's main uranium enrichment facility. 
• It is known as the first Pilot Fuel Enrichment Plant of Iran. 
• Fordow Fuel Enrichment Plant (FFEP) is Iran's second pilot enrichment plant. 
• It is among the sites monitored by the International Atomic Energy Agency (IAEA) after Iran's 2015 nuclear deal with world powers (the USA, the UK, France, China, Russia and Germany).

➤ International Atomic Energy Agency

• Widely known as the world atoms for Peace and Development' organization within the United Nations family, the IAEA is the international centre for cooperation in the nuclear field. 
• It was created in 1957 in response to the deep fears and expectations generated by the discoveries and diverse uses of nuclear technology. 
• Headquarter: Vienna, Austria. 
• It works with its member states and multiple partners worldwide to promote the safe, secure and peaceful use of nuclear technologies.
• In 2005, it was awarded the Nobel Peace Prize for its efforts towards a safe and peaceful world.

➤ Functions

• It is an independent international organization that reports annually to the UN General Assembly. When necessary, the IAEA also reports to the UN Security Council in regards to instances of members' non-compliance with safeguards and security obligations.

➤ Controversy

• IAEA Inspection: Natanz became a point of controversy as Iran refused to allow an IAEA inspector into the facility in October 2019, after allegedly testing positive for suspected traces of explosive nitrates. 
• Nitrates are common fertilisers but when mixed with proper amounts of fuel, they can become explosive as powerful as Trinitrotoluene (TNT). 
• TNT is also known as 2,4,6-Trinitrotoluene and does not occur naturally in the environment. 
• It is an explosive used in military shells, bombs and grenades and underwater blasting.

➤ Stuxnet Computer Virus

• The Stuxnet computer virus, believed to be an American and Israeli creation, disrupted and destroyed centrifuges at Natanz amid the height of Western concerns over Iran's nuclear program in 2010.

➤ USA's Response

• The USA has unilaterally withdrawn from the nuclear deal in May 2018 as Iran has continuously been breaking all the production limits set by the deal. According to the IAEA, Iran enriched uranium to about 4.5% purity, above the terms of the nuclear deal.

Economic Measures by India Against China

India is considering a range of economic measures aimed at Chinese firms amid the border tensions between the two countries.

• The ban on 59 Chinese apps is one of the economic measures taken by India, with other measures likely to follow if tensions along the Line of Actual Control (LAC) continue without disengagement. 
• India wants to indicate that China cannot continue trade and investment relations as normal if it does not agree to return to the status quo of April before its incursions along the LAC began.

Key Points

➤ Economic Measures Planned by India

• The government is considering trade and procurement curbs targeting China. 
• It is also increasing scrutiny of Chinese investments in many sectors, and weighing a decision to keep out Chinese companies including 5G trials. 
• Recently, the Union Minister for Road Transport and Highways has announced that Chinese companies would not be allowed to take part in road projects.

Implications

➤ Overall India-China Trade

• In the India-China economic relationship, trade is lopsided in China's favour as China's exports to India account for less than 3% of its overall exports. Thus, China could inflict immediate economic pain if it chooses to. 
• In 2019-20, India's imports from China accounted for USD 65 billion out of two-way trade of USD 82 billion. 

➤ Dependence on Chinese Goods 

• India remains deeply dependent on Chinese goods, whether they are procured from China or through other countries. 
• India also relies on China for crucial imports for many of its industries including auto components and Active Pharmaceutical Ingredients (APIs). 
• Between 70- 90% of APIs needed for the pharma industry of India come from China.

➤ Investments

• On the investment front, Chinese investment in Indian tech start-ups has crossed USD 4 billion spanning major investments in companies including Paytm, Swiggy, Ola and Flipkart. 
• Possible Harm to the Chinese Economy:
  (i) The economic measures taken by India could potentially cost Chinese companies billions of dollars in contracts and future earnings.
  (ii) For TikTok, one of the 59 apps banned, India is the biggest overseas market with more than 100 million users. Thus, the app is anticipating a loss of more than USD 6 billion, most likely more than the combined losses for all the other Chinese companies behind the other 58 apps banned in India.
  (iii) A move to restrict Chinese companies from India's 5G rollout would also have a similar effect of costing hundreds of millions of dollars in potential revenue.
  (iv) Moreover, losing the Indian market would come at a time when the Chinese economy is facing its challenges in the wake of the Covid-19 pandemic and facing increased barriers in many Western countries.

➤ China's Stand

• China has asked India to review its recent economic measures taken against it. 
• It has also stated that these economic measures are selectively and discriminatorily aimed at certain Chinese apps, going against the general trend of international trade and E-commerce. 
• It has also stated that such measures are not conducive to consumer interests and the market competition in India. 
• Chinese state media have also widely criticised calls in India to boycott Chinese goods. China's History in Trade and Procurement Curbs

➤ Background

• Economic sanctions have been one of the key tools of Chinese coercion. 
• China usually uses economic sanctions with the countries with whom it faces territorial claims. 
• Sanctions include restrictions on trade, encour­agement for boycotts and cutting off tourism. 
• China used these measures to inflict immediate economic pain. 
• China's coercive actions are always selective and focused on targets where the economic cost of coercing is low but the impact is high.

➤ Affected Countries

• South Korea
  (i) China had boycotted South Korean goods in 2016 and 2017 when South Korea had deployed the USA Terminal High-Altitude Area Defense (THAAD) missile system. In October 2017, South Korea had issued a list of assurances meant to clarify to China that it would not expand the scope of THAAD.
  (ii) China had also placed curbs on tourism to South Korea, costing the country millions of dollars in tourism revenue.
• Japan
  (i) In 2010, China had restricted the exports of rare earth elements to Japan, a key ingredient for many electronics industries, following a collision near disputed East China Sea islands.
  (ii) Two years later, mass protests organised by China led to boycotts of Japanese brands and, in some instances, violence targeting Japanese branded-cars and stores.
• Philippines
  (i) A dispute over the Scarborough Shoal in the South China Sea in 2012 led to China curbing imports on bananas and restricting tourism, costing the country millions of dollars in revenue.

Australia Suspends Extradition Treaty with Hong Kong

Recently, Australia has suspended its extradition treaty with Hong Kong in response to a new national security law imposed by China.

• The extradition treaty has been in place since 1993.

➤ Extradition

• Extradition is the formal process of one state surrendering an individual to another state for prosecution or punishment for crimes committed in the requesting country's jurisdiction. 
• It is generally enabled through a bilateral or multilateral treaty. 
• The legal basis for extradition with countries with whom India does not have an Extradition treaty is provided by Section 3 (4) of the Indian Extradition Act, 1962.

➤ Background

• Hong Kong was formerly a British colony and was handed over to mainland China in 1997, becoming one of its Special Administrative Regions (SAR). 
• It is governed by a mini-constitution called the Basic Law, which affirms the principle of 'one country, two systems'. 
• The constitutional document is a product of the 1984 Sino-British Joint Declaration, under which China promised to honour Hong Kong's liberal policies, a system of governance, independent judiciary and individual freedoms for 50 years from 1997.

Key Points

➤ Issues With National Security Law

• China bypassed Hong Kong's Legislative Council to impose the national security law which prohibits activities that are viewed by China as secessionist, subversive or terrorist activities or foreign intervention in Hong Kong affairs.
• Under the law, police have sweeping powers to conduct searches without warrants and order internet service providers and platforms to remove messages deemed to violate the legislation.
• Thus, the law is considered as an attack on human rights especially freedom of speech and freedom of assembly of the people of Hong Kong. 
• It also violates the basic law of Hong Kong which suggests that no central government agencies can interfere in the functioning of the Special Administrative Region (Hong Kong). 
• Article 12 of the Basic Law suggests that there will be a high degree of autonomy for the administration of Hong Kong.

➤ Global Response

• Australia: It has announced a range of visa extensions from two to five years and pathways to permanent residency visas. 
• Earlier, Australia had offered 'haven' visas to Chinese people after the crackdown on pro-democracy protesters around Beijing's Tiananmen Square in 1989. 
• More than 27,000 Chinese students in Australia at the time were allowed to stay permanently. o Britain: It has declared that it is extending residency rights for up to 3 million Hong Kongers eligible for British National Overseas passports, allowing them to live and work in the UK for five years. 
• Canada: It has suspended its extradition treaty with Hong Kong and is looking at other options including migration. 
• India: India is expecting relevant parties would address the concerns properly, seriously and objectively. 
• The large Indian community makes the Hong Kong Special Administrative Region of China it's home and thus, India has been keeping a close watch on recent developments.

➤ China's Response

• China has warned Australia against interfering in China's internal affairs with Hong Kong. 
• It has also indicated that such steps will cause a huge negative impact on the Australian economy making the issue more serious.

Expat Quota Bill Approved in Kuwait

Recently, the legal and legislative committee of Kuwait's National Assembly has approved the draft ex-pat (expatriate) quota bill. 

• According to the bill, Indians should not exceed 15% of the population and if it is enacted into law, over 8 lakh Indians could be forced out of Kuwait. 
• Kuwait is a country located in the Persian Gulf region.

➤ Key Points

• Lawmakers and government officials including the Prime Minister of Kuwait have been calling to reduce the number of ex-pats from 70% to 30% of the population. 
• The draft law will impose a cap on the number of ex-pats and gradually reduce them by almost 5% every year.
  For example, if ex-pats constitute 70% of the population this year, next year it will 65% and 60% in the following year.

➤ Reasons Behind the Move

• Anti-expat aspirations have been rising in Kuwait since the beginning of the Covid-19 pandemic. 
• Foreigners have accounted for the majority of Kuwait's virus cases as the disease spread among migrant workers living in overcrowded housing. 
• Kuwait has been working to reduce its dependence on foreign workers. It no longer wants to remain an expat-majority nation with its citizens turning into a minority. 
• This move is similar to the USA's decision to extend the 60-day ban on immigrant and non­immigrant worker visas till the end of 2020. 
• Kuwait faces problems in its population structure due to huge numbers of ex-pats. 
• Almost one-third of the ex-pats are either illiterate or can merely read and write. They do not contribute to the country's growth and hence, are not needed. 
• The oil-price crash has also affected the country's economic conditions.

➤ Data Analysis

• In Kuwait, ex-pats account for 3 million out of the total population of 4.3 million. 
• Indians constitute the largest ex-pat community in Kuwait, totalling 1.45 million. 
• About 28,000 Indians work in various government jobs like nurses, engineers in national oil companies and scientists. 
• Majority of Indians (around 5 lakh) work in the private sector. 
• There are about 1.16 lakh dependents out of which about 60,000 are students studying in various Indian schools in the country.

➤ India's Perspective

• The Indian community in Kuwait has always played an important factor in bilateral ties. 
• Indians are present in all segments of society in Kuwait and are largely considered disciplined, hardworking and law-abiding. 
• Kuwait is a top source of remittances for India. In 2018, India received nearly USD 4.8 billion from Kuwait as remittances.
• The Indian embassy has been closely following developments related to the proposed legislation. 
• However, India has so far not made any statement on the issue.

➤ Persian Gulf Region

• The lands around the Persian Gulf are shared by eight countries namely, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). 
• These all eight countries are members of the United Nations. 
• UAE, Bahrain, Saudi Arabia, Oman, Qatar, Kuwait are members of the Gulf Cooperation Council (GCC). 
• Out of the Persian Gulf countries, Iran, Iraq, Kuwait, UAE and Saudi Arabia are members of the Organization of the Petroleum Exporting Countries (OPEC). 
• Being major producers of crude oil and natural gas, there is a commonality of interest among these countries. 
• This commonality of interest has given rise to their prosperity and subsequently, economic- political entanglements among them.

World Bank’s Support to India for MSMEs

Recently, the World Bank (WB) and the Government of India has signed the USD 750 million agreement for an Emergency Response Programme for Micro, Small, and Medium Enterprises (MSMEs). 

• Emergency Response Programmes are dedicated to enhancing the resilience of communities and livelihoods to address fragility, poverty and vulnerability to conflict and disaster.

Key Points

➤ Financial Support

• The USD 750 million loans which are being granted from the International Bank for Reconstruction and Development (IBRD - a part of the WB group), has a maturity of 19 years including a 5-year grace period. 
• The WB groups and its private sector arm - the International Finance Corporation (IFC), will support the government's initiatives to protect the MSME sector which is severely impacted by the Covid-19 crisis. 
• Covid-19 pandemic has severely impacted the MSME sector leading to loss of livelihoods and employment. 
• Earlier, the World Bank has committed to supporting India's emergency Covid-19 response, including the new MSME project with USD 2.75 billion. 
• The first USD 1 billion emergency support was announced in April 2020 for immediate support to India's health sector. 
• Another USD 1 billion projects was approved in May to increase cash transfers and food benefits to the poor and vulnerable, including a more consolidated delivery platform - accessible to both rural and urban populations.

➤ Significance

• Unlocking Liquidity: Considering the current uncertainties, lenders remain concerned about borrowers' ability to repay - resulting in a limited flow of credit. 
• Therefore, the program will support the government's efforts to channel liquidity to the MSME sector by de-risking lending from banks and Non-Banking Financial Companies (NBFCs) to MSMEs through a range of instruments, including credit guarantees.
• Strengthening NBFCs and SFBs: The programme will address the urgent and varied needs of the MSMEs by improving the funding capacity of key market-oriented channels of credit, such as the NBFCs and Small Finance Bank (SFBs).
• This will support the government's refinance facility for NBFCs. 
• In parallel, the IFC would provide direct support to SFBs through loans and equity. o 
• Enabling Financial Innovations: Currently only about 8% of MSMEs are served by formal credit channels. The program will incentivize and mainstream the use of fintech and digital financial services in MSME lending and payments.

➤ World Bank Group

• With 189 member countries, the World Bank Group is a unique global partnership that consists of five development institutions. 
• International Bank for Reconstruction and Devel­opment (IBRD) provides loans, credits, and grants. 
• International Development Association (IDA) provides low- or no-interest loans to low-income countries. 
• The International Finance Corporation (IFC) provides investment, advice, and asset management to companies and governments. 
• The Multilateral Guarantee Agency (MIGA) insures lenders and investors against political risk such as war. 
• The International Centre for the Settlement of Investment Disputes (ICSID) settles investment- disputes between investors and countries. 
• India is not a member of ICSID.

Fishermen Issue with Sri Lanka

Recently, Sri Lanka's northern fishermen have reported a sudden increase in the number of Indian trawlers spotted in its territorial waters. 

• The territorial waters extend seaward up to 12 nautical miles (nm) from the baselines of a country. 
• Fishermen along the northern coast of Jaffna Peninsula have lost their nets worth lakhs of rupees in the sea, after being caught under the large Indian trawlers. 
• These Indian trawlers are known to originate from the Indian State of Tamil Nadu.

➤ Background

• Introduction of the International Maritime Boundary Line:
  (i) Indian boats have been fishing in the troubled waters for centuries and had a free run of the Bay of Bengal, Palk Bay and the Gulf of Mannar until 1974 and 1976 when treaties were signed between the two countries to demarcate International Maritime Boundary Line (IMBL).
  (ii) However, the treaties failed to factor in the hardship of thousands of traditional fishermen who were forced to restrict themselves to a meagre area in their fishing forays.
• Katchatheevu Island Issue
  (i) The small islet of Katchatheevu, hitherto used by them for sorting their catch and drying their nets, fell on the other side of the IMBL.
  (ii) Fishermen often risk their lives and cross the IMBL rather than return empty-handed, but the Sri Lankan Navy is on alert, and have either arrested or destroyed fishing nets and vessels of those who have crossed the line.
• Implementation of Practical Agreements
  (i) Both countries have agreed on certain practical arrangements to deal with the issue of bona fide fishermen of either side crossing the International Maritime Boundary Line.
  (ii) Through these arrangements, it has been possible to deal with the issue of detention of fishermen humanely.
  (iii) India and Sri Lanka have agreed to set up a Joint Working Group (JWG) on Fisheries between the Ministry of Agriculture and Farmers' Welfare of India and Ministry of Fisheries and Aquatic Resources Development of Sri Lanka as the mechanism to help find a permanent solution to the fishermen issue.
• Threat to Livelihoods
  (i) The Sri Lankan fishermen fear that their livelihoods will be hit due to trawlers which are already under strain due to the coronavirus pandemic induced reduction in export.
• Step Taken by Sri Lanka
  (i) In the last couple of years, Sri Lanka has introduced tougher laws banning bottom-trawling and has also introduced heavy fines for trespassing foreign vessels.
  (ii) The Sri Lankan Navy arrested over 450 Indian fishermen in 2017 and 156 in 2018 on charges of poaching. A total of 210 arrests were made in 2019, while 34 have been made so far in 2020.
• Scare of Covid-19
  (i) The Sri Lankan fishermen have been alleging that currently, the Sri Lankan Navy is reluctant to arrest the trespassing fishermen from Tamil Nadu now, due to the Covid-19 prevalence in India.
  (ii) However, the Sri Lankan Navy claims to be very vigilant along their borders not just to monitor illegal fishing, but also to take action on any illicit activity such as the narcotics trade.

India Global Week 2020: India Inc.

Recently, the Prime Minister of India has addressed the inaugural session of a three-day virtual conference of India Global Week 2020 organised in London, United Kingdom by India Inc. 

• It also marks the 100th birth anniversary of Pandit Ravi Shankar, a great Indian musician (Sitar player, composer and singer).

➤ India Global Week

• It is an annual flagship event organised by India Inc., a London based media house to re-energise and ignite optimism at the global level.
• It brings about an action-oriented focus by giving a forum to global deliberations from geopolitics to business, arts & culture to emerging technologies, banking and finance, pharma, defence and security, social impact and the diaspora dividend. 
• India Inc. also produces incisive contents and events on investment, trade and policy matters related to India's increasingly globalised economic and strategic agenda. 
• Its flagship publication: India Global Business. 
• Diaspora news network: iGlobal.

➤ Key Points

• Theme: Be The Revival: India and a Better New World. 
• Objective: Explore business, strategic and cultural opportunities, understand the challenges and make informed decisions as the world looks ahead to a better, brighter future beyond Covid-19.

➤ Significance for India

• Global Revival: As India is playing a leading role in the global revival, it has brought India's ancient culture (AYUSH), universal, peaceful ethos and the beauty of classical music to the world. 
• Global Audience: The event as a forum has helped to bring the opportunities in India to a global audience and made the links between India and the UK stronger. 
• Trade and Investment: It would focus on India's trade and foreign investment processes as it has done many reforms e.g. private investment in the space sector. 
• Reforms in agriculture would provide an opportunity to invest in storage and logistics. 
• Invest India Programme: It will help in improving the Invest India programme. India has recently been reviewing 50 investment proposals from China under its new screening policy which is being done under the new rules. 
• New rules: India announced new investment rules in April 2020. Under the new rules, all the investments by the entities based in neighbouring countries have to be approved by the Indian Government. This was introduced to curb opportunistic takeovers during the Covid-19-period. 
• Battle against the Covid-19: As India is fighting a strong battle against the global pandemic it would recognise India's efforts towards revival with care, compassion and sustainability - both for the environment and the economy.

➤ Initiatives to fight Covid-19

• AtmaNirbhar Bharat Initiative: It is about being self-sustaining and self-generating. AtmaNirbhar Bharat merges domestic production and consumption with global supply chains. 
• Economic Relief Packages: The package has been targeted to help the poorest with aid of technology and providing free cooking gas, cash in the bank accounts, free food grains to millions.

India-Indonesia Defence Ministers’ Dialogue

Recently, the Defence Ministers' Dialogue between India and the Republic of Indonesia has been held in Delhi.

• The Indonesian Defence Minister General Prabowo Subianto is in India for strengthening the ties between the two maritime neighbours. 

➤ Key Points 

• At the dialogue, India and Indonesia aimed at injecting a new momentum into their strategic partnership by expanding security cooperation in a range of areas including defence industries and technology sharing. 
• India conveyed satisfaction on the military to military interactions and indicated that the defence cooperation between both nations has witnessed an upswing in recent years, in consonance with the Comprehensive Strategic Partnership between the two sides. 
• The issue of possible export of BrahMos cruise missile to Indonesia by India and ways to further deepen maritime security cooperation figured prominently in the talks. 
• Even though both countries acknowledge China's aggressive posturing in eastern Ladakh and the South China Sea, there was no official statement on it.

➤ India-Indonesia

• Both of them have agreed to work together for peace, security, and prosperity to achieve their shared vision on maritime cooperation in the Indo-Pacific region. 
• The Strait of Malacca - waterway connecting the Andaman Sea (Indian Ocean) and the South China Sea (Pacific Ocean) - runs between the Indonesian island of Sumatra to the West and peninsular (west) Malaysia and extreme southern Thailand to the east. 
• Both of them recognise the threat of extremism and terrorism and have agreed to work closely bilaterally and globally to tackle them. 
• India is working with Indonesia to strengthen the ties in the areas of defence, security, connectivity, trade and investment and people-to-people exchanges. 
• Trade and Commerce: o Bilateral trade has increased from USD 4.3 billion in 2005-06 to USD 21 billion in 2018-19. 
• Indonesia has emerged as the second-largest trading partner of India in the ASEAN region. 
• India is the second-largest buyer of coal and crude palm oil from Indonesia and imports minerals, rubber, pulp and paper and hydrocarbons reserves. 
• However, there is a need for greater market access for Indian commodities in Indonesia including, pharmaceutical, automotive and agricultural products. 
• Both countries are members of G20, the Non-Aligned Movement (NAM), East Asia Summit and the United Nations.

➤ Comprehensive Strategic Partnership

• The two countries inked a defence cooperation agreement in 2018 which aimed at reflecting the elevation of the relationship between the two countries to a comprehensive strategic partnership. 
• 2019 marked the 70th anniversary of the establishment of diplomatic relations between India and Indonesia. 
• In September 2019, Indonesia announced that the country's capital would be relocated to East Kalimantan province on Borneo island from Jakarta. 
• Bilateral Exercises
  (i) Exercise Samudra Shakti the bilateral maritime exercise.
  (ii) Garuda Shakti is the joint military exercise between India and Indonesia.

India-EU Virtual Summit

Recently, India and the European Union (EU) held their 15th “annual" summit after a gap of more than two years.

• The practice was put off due to disagreements over trade and investment that define their bilateral ties.

Key Points

➤ India-EU Strategic Partnership

• India-EU Strategic Partnership: A Roadmap to 2025 has been endorsed between India and EU as a common roadmap to guide joint action and further, strengthen the Strategic Partnership over the next five years. 
• Same Values: India and EU both are "unions of diversity", sharing values of democracy, rule of law and human rights. Both are equally convinced of the necessity to preserve the rules-based international order and effective multilateralism. 
• Common Interests: Both have a common interest in each other's security, prosperity and sustainable development. They can contribute jointly to a safer, cleaner and more stable world.

➤ Trade Pact

• India and the EU have agreed to launch a high-level trade dialogue to foster progress on “balanced, ambitious and mutually beneficial" trade and investment agreements, address trade irritants and discuss supply chain linkages. 
• High-level trade dialogue will be held between the EU trade commissioner and India's Commerce Minister.
• India and EU had launched talks for having a wide-ranging Free Trade Agreement (FTA), officially called broad-based Bilateral Trade and Investment Agreement (BTIA), long ago in 2007. 
• The BTIA was proposed to encompass trade in goods, services and investments. 
• However, the talks stalled in 2013 over differences in market access and movement of professionals. 
• The EU is India's largest trading partner grouping (the countrywide USA is India's largest trading partner), while India is the EU's ninth biggest trading partner. 
• Civil Nuclear Cooperation
  (i) A civil nuclear cooperation agreement was signed between the European Atomic Energy Community or Euratom and the Department of Atomic Energy, India.
  (ii) The agreement will focus on research and development cooperation for peaceful uses of nuclear energy and on new ways of using nuclear energy.

➤ Defence and Security Cooperation

• The two sides also agreed to scale up defence and security ties which included: 
• The launch of a new maritime security dialogue. 
• Consultations on crisis management and deeper cooperation between the Indian Navy and the European Union Naval Force Atalanta. 
• The EU's counter-piracy military operation in the western Indian Ocean. 
• The EU officials described the recent India-China border standoff on the Line of Actual Control (LAC) as a matter of considerable concern. 
• India's Central Bureau of Investigation (CBI) and Europol launched negotiations to combat organised crime and terrorism. 
• Both decided to intensify cooperation to tackle terror and its financing, radicalisation and abuse of the internet for such activities. 
• Pakistan's support for terrorism aimed at India and other countries in the region was also figured in the discussions.

➤ Other Negotiations

• A joint declaration on circular economy and resource efficiency. 
• A circular economy is an economic system aimed at eliminating waste and the continual use of resources. 
• The renewal of a science and technology coop­eration agreement and stepping up cooperation in environment and climate change.

➤ Issues Involved

• The EU is critical about India's protectionist measures on tariffs, on opening up India's services sector for European Companies and the termination of bilateral investment treaties with 25 EU member states. 
• The EU also views India's recent Atma Nirbhar Bharat Abhiyaan as an initiative that might lead to protectionism. 
• The trade relationship is also far below the potential, with India accounting for less than 3% of the EU's total trade. 
• The EU has been critical over the removal of Article 370 in Jammu and Kashmir as well as the Citizenship Amendment Act, which according to India is an internal matter.

US-India Strategic Energy Partnership

Recently, India and the USA have participated in a virtual ministerial meeting of the U.S.-India Strategic Energy Partnership (SEP) to review progress, highlight major accomplishments, and prioritize new areas for cooperation. 

• The SEP was established in April 2018 whose objective is to encourage meaningful engagements through robust government-to-government cooperation and industry engagement. 
• The next Ministerial meeting will be held in 2021.

Key Points

➤ Description

• The SEP organizes inter-agency engagement on both sides across four primary pillars of cooperation: 
• Power and Energy Efficiency, 
• Oil and Gas, 
• Renewable Energy, 
• Sustainable Growth. 
• The SEP also supports USA efforts under the AsiaEDGE initiative, which establishes India as a strong energy partner in the Indo-Pacific region. 

Major Outcomes 

The number of achievements and priorities for new work under the SEP were announced by both sides. These can be broadly segregated under the four primary pillars of cooperation, as given below

Power and Energy Efficiency

• Modernizing the Power System: Both countries have been collaborating on the integration of new technologies into the smart grid; modernizing the power distribution sector i.e. rooftop solar, deployment of Smart Meters etc. The two countries are leading joint research and development (R&D) through Advance Clean Energy-Research (PACE-R) on smart grids and energy storage to increase the resilience and reliability of the electric grid. 
• New areas of research on transformational power generation based on supercritical CO₂ (sCO₂) power cycles and advanced coal technologies for power generation including carbon capture, utilization, and storage (CCUS) were also initiated. 
• sCO₂ is a fluid state of carbon dioxide where it is held at or above its critical temperature and critical pressure. 
• Commitment to advance civil nuclear cooperation i.e. recent progress on the Westinghouse (USAs Electric Company) nuclear reactor project at Kovvada, Andhra Pradesh were also discussed. 
• It also promotes continued bilateral R&D engagement on advanced civil nuclear energy technologies through the U.S.-India Civil Nuclear Energy Working Group. 

Oil and Gas 

• A Memorandum of Understanding (MoU) was signed to begin cooperation on Strategic Petroleum Reserves operation. 
• The possibility of India storing oil in the U.S. Strategic Petroleum Reserve was also discussed. 
• Both sides have noted the significant increase in the bilateral hydrocarbon trade through SEP touching 9.2 billion USD during 2019-20 and marking a 93% increase since 2017-18, 
• Through the U.S.-India Natural Gas Task Force, it affirmed to promote greater hydrocarbon trade between the two countries. 

Renewable Energy 

• Both sides launched a public-private Hydrogen Task Force to help scale up technologies to produce hydrogen from renewable energy and fossil fuel sources and to bring down the cost of deployment for enhanced energy security and resiliency. 
• Efficient Buildings and Clean Technologies: A MoU was signed to collaborate on India's first-ever Solar Decathlon in 2021, establishing a collegiate competition to prepare the next generation to design and build high-efficiency buildings powered by renewables. 
• In response to the Covid-19 pandemic, United States Agency for International Development (USAID) and Energy Efficiency Services Ltd (EESL), India has jointly initiated "Retrofit of Air Conditioning to Improve Air Quality for Safety and Efficiency" (RAISE) for healthy and energy-efficient buildings. 
• Launched collaboration between the USA Department of Energy (DOE) National labs and the Indian National Institutes under the Ministry of New & Renewable Energy as part of the South Asia Group for Energy (SAGE), supported by USAID, for joint research on the development of advanced clean technologies. 
• Information exchange on sustainable biofuel production (bioethanol and renewable diesel) and use for air and sea transport were also discussed. 
• It will also explore cooperation on utilizing the economic value of converting bio-waste into biogas. 

Sustainable Growth 

• The best practices are being adopted through methodologies in energy data management and capacity building in energy modelling. 
• USAID and NITI Aayog jointly launched India Energy Modeling Forum to build a network of modelling communities and its linkage with the Government for analytical work and policy-making exercise. 
• Empowering Women in the Energy Sector: USAID launched the South Asia Women in Energy (SAWIE) platform focused on the power sector and both countries have been working to incorporate gender-focused activities across the technical pillars.