PIB Summary- 2nd April, 2022 | PIB (Press Information Bureau) Summary - UPSC PDF Download

The India-Australia Economic Cooperation and Trade Agreement

Context:

India and Australia have signed the Economic Cooperation and Trade Agreement (ECTA).

The “IndAus ECTA” : Salient Features

• The India-Australia ECTA is an addition of a historic event in chapters of India’s trade outreach.
• This agreement has been the single largest investment by the Australian government.
• Witnessed by the Prime Minister, this agreement has been signed in a virtual ceremony.
• The agreement involves bilateral economic and commercial relations between India and Australia.
• It covers areas such as:
  (i) trade in goods,
  (ii) rules of origin,
  (iii) trade in services
  (iv) Technical barriers to trade (TBT)
  (v) Sanitary and Phytosanitary measures
  (vi) Dispute Settlement
  (vii) Movement of natural persons, telecom, customs procedures, pharmaceutical products and cooperation in other areas.  
• The ECTA offers an institutional framework for improving trade between the two partner countries facilitating the easy execution of trade procedures.
• It covers all the tariff lines that associate both the countries.
• Tariff lines refer to the items listed in a country’s tariff schedule. 
• As an outcome of this agreement, India will benefit from a preferential market access given by Australia on 100% of its tariff lines. 
• The sectors that will probably reap the benefits include the labour intensive sectors of export interest to India for example, gems and jewellery, textiles, leather, footwear, furniture, food and agricultural products, engineering products, medical devices and automobiles. 
• On the other hand, India will offer preferential market access to Australia on 70% of its tariff lines. These include lines of export to Australia’s interest like raw materials, mineral ores and wines. 
• Australia has extended its commitment, as a part of trade in services, towards 135 sub-sectors and Most Favoured Nation in 120 sub-sectors that comprise India’s interests like Information Technology, ITES (IT Enabled Services), business services, health, education and audio visual. 
• India has agreed upon a market access to Australia in 103 sub-sectors and Most Favoured Nation in 31 sub-sectors that involve services like business, communication, construction and related engineering services and so on and so forth. 
• A separate annexure on pharmaceutical products has been approved by both the countries for speedy process of approvals for patents, generic and biosimilar medicines. 

Growing stability in the Indo-Pacific Region:

• India and Australia are partners in the trilateral Supply Chain Resilience Initiative arrangement along Japan which intends to enhance the supply chain in the Indo-Pacific Region. 
• The onset of ECTA will contribute to the stability of the Indo-Pacific region and will also further the strengthening of QUAD developing the partnership in the areas of common interests.  

Indian diaspora in Australia
There is a fast-growing Indian community of nearly 295,000 residing in Australia. This is not including the people of Indian origin from other countries such as South Africa, Fiji, Malaysia, Kenya, etc. who have migrated to Australia. They are significant contributors to the Australian economy as teachers, accountants, doctors, engineers and I.T. professionals. India is now the third-largest source of immigrants to Australia, after the UK and New Zealand and the second-largest source of skilled professionals.

India Australia Prospects and Future Challenges

• Energy sector – Australia is poised to overtake Qatar as the largest exporter of Liquified Natural Gas (LNG). India can diversify the sourcing of its LNG supply with Australia (reducing dependency on West Asian countries) and reap huge benefits from a long-term relationship. This is in addition to the already-blooming relations in the nuclear fuel supply domain.
• Comprehensive Economic Cooperation Agreement (CECA) – Negotiations for a CECA started in 2001. If this is materialised, India will have better access to the world’s 12th largest economy. Half of India’s exports to Australia face stiff tariffs, and if the CECA is made, Indian businesses would be in the same footing as other FTA partners of Australia such as China. This would also improve investments from Australia, which has the third-largest pool of investment funds under management in the world.
• Why CECA is in a deadlock
  (i) India is opposed to greater access for Australian businesses in the sector of dairy and agricultural markets in the interests of its small and marginal farmers and people working in the dairy industry.
  (ii) India wants greater free movement and relaxed visa norms for its IT professionals, which Australia is reluctant to agree to cite local unemployment as the reason.
  (iii) India wants Australia to soften its high non-trade barriers for Indian products.
  (iv) India is reluctant to open up its doors for legal services from Australia.
  (v) There is also no concrete agreement on greater market access for Australia’s wine, meat, auto components and financial services industries.
  (vi) Both countries also differ in their preference towards Rules of Origin (ROO) in fixing the tariff lines for goods.
• India can seek Australia’s expertise in the food processing industry.
• Australia has good experience in paddy cultivation in relatively arid lands. India can learn much from its technology and experience in this regard.
• Mining technology and clean coal technology are two other areas where India can collaborate with Australia.
• Another domain in which cooperation can be fostered is solar energy. Australia has joined the International Solar Alliance, which is sponsored by India and France.

Ugadi

Context: 
The Prime Minister expressed his warm greetings on the occasion of Ugadi.

Ugadi: Facts of Essence 

• Ugadi is also known as Yugadi and is celebrated on the first day of the beginning of the year.
• It marks the first day of the Hindu lunisolar calendar’s month of Chaitra.
• It is celebrated in states like Andhra Pradesh, Karnataka and Telangana.
• In accordance with Hindu mythology, it is believed that Lord Brahma started creation of the universe on the day of Ugadi.
• It’s a nine day festival that celebrates nine forms of goddess Durga as Chaitra Navratri. 
• The 12th century mathematician Bhaskaracharya identified Ugadi as the beginning of a new year, new month and a new day. 
• geographically , it is identified as the onset of spring and the milder weather after the harsh cold of the winter.
• The Yugadi derives from the word ‘Yuga’ which means period and ‘ Adi’ means the commencement of something. 

Chetak Helicopters

Context:
The Indian Air Force commemorated 60 years of remarkable service by Chetak helicopters.  

About Chetak:

• The French origin Chetak was inducted into the IAF as Aloutte III in 1962.
• The Hindustan Aeronautics Ltd (HAL) delivered the first licence produced helicopter with the name Chetak (Aloutte III)  in 1965. 
• It is a two tonne helicopter with a maximum speed of 185 Km/hour and a range of 500 km. 
• This single engine helicopter is capable of carrying seven people including two pilots. 
• Chetak is operated by each of three defence services and the coast guards as well and has been the military’s workhouse for decades.
• However, the ageing helicopter, over a period of time, has been accompanied by some security issues that have come under scrutiny in the wake of recent crashes.
• As a result, it is now due for replacement along with the Cheetah helicopter fleet operated by air force and the army with indigenous Light Utility Helicopters. 

Read about Light Utility Helicopters

• It is noteworthy of mention that Chetak holds a special place in India’s aviation history as it has been used for training pilots at the Heli copter Training School of the IAF and it has been the backbone of the rotary wing fleets of the services as well as civil aviation. 
• At present, Chetak and Cheetah helicopters are a critical lifeline for troops in high-altitude areas including the Siachen glacier.