International Relations: August 2022 Current Affairs | UPSC Mains: International Relations PDF Download

Iran Nuclear Deal Talks

• Officials from various countries including Iran were meeting for the first time since March 2022.

What is the Iran Nuclear Deal?

• About:
  • The Joint Comprehensive Plan of Action aims to guarantee the civilian nature of Iran's nuclear programme in exchange for a gradual lifting of sanctions.
  • Iran signed the agreement with the five permanent members of the U.N. Security Council — the U.S., Russia, France, China, and the United Kingdom — as well as Germany and the European Union.
  • Under the deal, Iran agreed to significantly cut its stores of centrifuges, enriched uranium and heavy-water, all key components for nuclear weapons.
  • Iran also agreed to implement a protocol that it would allow inspectors from the International Atomic Energy Agency (IAEA) to access its nuclear sites to ensure Iran would not be able to develop nuclear weapons in secret.
• Issues:
  • Due to the unilateral withdrawal of the United States in 2018 under former president Donald Trump and the re-imposition of U.S. sanctions, Iran has backtracked on its obligations.
  • Iran subsequently exceeded the JCPOA's uranium enrichment rate of 3.67%, rising to 20% in early 2021.
    • It then crossed an unprecedented 60% threshold, getting closer to the 90 percent needed to make a bomb.
  • Opposing countries:
    • Israel, America’s closest ally in the Middle East, strongly rejected the deal, and other countries like Iran’s great regional rival Saudi Arabia, complained that they were not involved in the negotiations even though Iran’s nuclear programme posed security risks for every country in the region.

What is the significance of JCPOA for India?

• Enhance regional connectivity:
  • Removing sanctions may revive India’s interest in the Chabahar port, Bandar Abbas port, and other plans for regional connectivity.
  • This would further help India to neutralize the Chinese presence in Gwadar port, Pakistan.
  • Apart from Chabahar, India’s interest in the International North-South Transit Corridor (INSTC), which runs through Iran, and will improve connectivity with five Central Asian republics, may also get a boost.
• Energy Security:
  • Due to the pressure linked to the US Countering America’s Adversaries Through Sanctions Act (CAATSA), India has to bring down oil imports to zero.
  • Restoration of ties between the US and Iran will help India to procure cheap Iranian oil and aid in energy security.

Way Forward

• The US would have to factor in not only Iran’s nuclear programme but also its increasingly hostile behavior in the region. It would also have to take into consideration the reality of the new multipolar world, in which its unilateral leadership is no longer guaranteed.
• Iran would have to consider the rapidly changing dynamics in the Middle East, given that Israel has recalibrated its relations with several Middle Eastern Arab countries in recent years.

India-Uzbekistan Relations

• Further, he highlighted India-Uzbekistan relations as key to India’s vision of integrated extended neighbourhood.
  • IGC meeting is an important platform to deliberate on ideas, discuss issues & strengthen bilateral relations especially in the field of trade & investment.

What are the Key Highlights of the Session?

• Minister Highlighted:
  • That there is a need to take the relationship forward in newer areas like technology, digital payment solutions, and investment in start-ups.
  • The need for an integrated approach for regional connectivity and cooperation.
  • Further, there are seven emerging areas of cooperation between both nations namely Digital Payments, Space Cooperation, Agri and Dairy, Pharma, Gems and Jewellery, MSME, and Inter-regional cooperation.

How has been India-Uzbekistan Relations?

• About:
  • India and Uzbekistan have a long history of cooperation.
  • After Uzbekistan's independence, India was one of the first countries to acknowledge its state sovereignty.
  • Bilateral relations now encompass a wider canvas, including political and strategic issues, defense and security, trade and investment, energy, agriculture, S&T, education, and people-to-people ties.
• Initiatives:
  • Defense Cooperation:
    • The first-ever joint military exercise held between India and Uzbekistan was named Dustlik.
    • India has also assisted in setting up an India Room at the Armed Forces Academy of Uzbekistan in Tashkent.
  • Security Cooperation:
    • India and Uzbekistan share common perspectives on a number of security issues, including terrorism, trans-national organized crime, illegal trafficking, smuggling, etc.
    • The main focus of engagement in this sphere has been to provide assistance to Uzbek security agencies through training and capacity building.
  • Trade:
    • It has increased from USD 247 million in 2019-20 to USD 342 million in 2021-22, a growth of 38.5%.
    • Investments:
    • Indian investments by Indian companies include those in the field of pharmaceuticals, amusement parks, automobile components, and the hospitality industry.
    • Amity University and Sharda University have opened campuses in Tashkent and Andijan respectively.
    • Indian institutions like iCreate are actively cooperating with Uzbek counterparts for promoting a start-up ecosystem in Uzbekistan and training entrepreneurs in setting up incubators.
  • Tourism:
    • The Uzbek government has extended the e-Visa facility to Indian tourists.
    • Uzbekistan has also emerged as a significant source of medical tourism with about 8,000 Uzbeks annually seeking medical treatment in India.
    • Solar Power:
    • Uzbekistan has expressed interest in joining the International Solar Alliance.
    • There is interest in Indian participation in the development of the solar power sector through competitive bidding.
• Bilateral Mechanism:
  • National Coordination Committees: India and Uzbekistan have set up National Coordination Committees to oversee the implementation of mutually agreed projects and initiatives.
• Multilateral Initiatives:
  • India-Central Asia Business Council: The dialogue brought together Business Councils of all five Central Asian countries to take the trade and investment partnership forward with a special focus on energy, pharmaceuticals, automotive, agro-processing, education, and urban infrastructure, transport, civil aviation, IT and tourism.
  • India- Central Asia Dialogue: It enables the issues of further strengthening ties between India and the countries of Central Asia in the spheres of politics, economics, digitalization, and cultural and humanitarian direction.

What are the Challenges in India-Uzbekistan Relations?

• There is a very low amount of trade and commerce between the two countries.
• Lack of connectivity, as Uzbekistan is a landlocked country, and the air connectivity is not up to the mark.
• China has made in-roads with Belt and Road Initiative in all the central Asian countries including Uzbekistan.

Way Forward

• Indian companies can take advantage of Uzbekistan’s various trade agreements and implement joint beneficial investment projects in the area to tap the economic and trade potential of the two countries.
• There is a need for increased convergence between the two countries.
• Uzbekistan should join the International North-South Transport Corridor (INSTC). With both Iran and India as members of INSTC, the addition of Uzbekistan will move things, especially connectivity, in the proper direction.

India Maldives Relations

• The Prime Minister while highlighting the threat of transnational crime, terrorism and drug trafficking in the Indian Ocean said that the coordination between India and Maldives in the field of defence and security is vital for peace and stability.

What are the Outcomes of the Bilateral Talks?

• Security:
  • To counter the threat of transnational crime, terrorism and drug trafficking in the Indian Ocean region, India will give 24 vehicles and one naval boat to the Maldives Security Force and help train the island-nation’s security personnel.
  • India will also cooperate in building police facilities in 61 islands of Maldives.
• Male connectivity project:
  • The two leaders also welcomed the launch of the Greater Male Connectivity Project, a USD 500 million project funded by New Delhi.
  • Both leaders participated in the virtual “pouring of the first concrete” ceremony of the USD500-million Greater Male Connectivity Project, being built under grant and concessional loan support from India.
• Agreements:
  • The countries signed six agreements to expand cooperation in a range of areas in Maldives, including:
    (i) Cybersecurity
    (ii) Capacity Building
    (iii) Housing
    (iv) Disaster Management
    (v) Infrastructure Development
    (vi) India announced USD100 million financial aid to help the island-nation complete certain infrastructure projects.

How has India’s Relations with Maldives been?

• Security Partnership:
  • Recently, the National College for Policing and Law Enforcement (NCPLE) was inaugurated by India’s External Affairs Minister during his two day visit to Maldives in 2022.
  • Rehabilitation Centre:
  • Signing of an USD80-million contract for the Addu reclamation and shore protection project.
  • A drug detoxification and rehabilitation centre in Addu built with Indian assistance.
  • The centre is one of 20 high impact community development projects being implemented by India in areas such as healthcare, education, fisheries, tourism, sports and culture.
• Economic Cooperation:
  • Tourism is the mainstay of Maldivian economy. The country is now a major tourist destination for some Indians and a job destination for others.
  • In August 2021, Afcons, an Indian company, signed a contract for the largest-ever infrastructure project in Maldives which is the Greater Male Connectivity Project (GMCP).
  • India is Maldives 2nd largest trading partner – rising up from its 4th position in 2018.
  • In 2021, bilateral trade registered a growth of 31% over the previous year – overcoming the pandemic-related challenges.

What are the Challenges in India Maldives Relations?

• Political Instability:
  • India’s major concern has been the impact of political instability in the neighbourhood on its security and development.
  • The February 2015 arrest of Maldives’ opposition leader Mohamed Nasheed on terrorism charges and the consequent political crisis have posed a real diplomatic test for India’s neighbourhood policy.
• Radicalisation:
  • In the past decade or so, the number of Maldivians drawn towards terrorist groups like the Islamic State (IS) and Pakistan-based jihadist groups has been increasing.
  • This gives rise to the possibility of Pakistan based terror groups using remote Maldivian islands as a launch pad for terror attacks against India and Indian interests.
• China Angle:
  • China’s strategic footprint in India’s neighbourhood has increased. The Maldives has emerged as an important 'pearl' in China’s “String of Pearls” construct in South Asia.
  • Given the uncertain dynamics of Sino-Indian relations, China’s strategic presence in the Maldives remains a concern.
  • Also, the Maldives have started using the China card to bargain with India.

Way Forward

• Although India continues to be an important partner of the Maldives, India must not grow complacent over its position and must remain attentive to the developments in the Maldives.
• India must play a key role within Indo-Pacific security space to ensure regional security in South Asia and surrounding maritime boundaries.
  • The Indo-Pacific security space has been developed as a response to the growth of extra-regional powers (particularly China’s) in India’s maritime sphere of influence.
• At present, the ‘India Out’ campaign has support from a limited population but this cannot be taken for granted by the Indian government.
  • If the issues raised by the supporters of the ‘India Out’ are not handled carefully and India does not effectively convince the Maldivians about its intentions behind the projects on the island nation, the campaign may change the domestic political situation in the Maldives and may set ripples in India’s currently favourable relationship with the country.

India-Mauritius Joint Trade Committee

What are the Outcomes of the Session?

• Trade:
  • Bilateral merchandise trade between India and Mauritius rose to USD 786.72 million in 2021-22 from USD 690.02 million in 2019-20.
  • Both sides agreed to enhance bilateral collaboration to further increase bilateral trade and realize the true potential of the bilateral relationship especially under the CECPA.
• CECPA:
  • Inclusion of the General Economic Cooperation (GEC) Chapter and Automatic Trigger Safeguard Mechanism (ATSM) in CECPA.
  • The GEC chapter will enable enhancement of export competitiveness and enlarging the existing scope for collaboration in the fields of Investments, Financial Services, Textile, Small and Medium Enterprises, Handicrafts, Gems and Jewellery etc.
  • ATSM protects the country from any sudden or dramatic increase in imports.
  • Under this mechanism, if the imports of a product are rising alarmingly, then after reaching a certain threshold, India can impose safeguard duties on imports from Mauritius automatically.
  • The same provision applies to Mauritius as well against Indian imports.
• Skilled Professional:
  • Interactions were held between both the sides in the Services sector with regard to establishing equivalence in certification, skills and licensing requirements of various professional bodies arrangement between the Ministry of Skill Development & Entrepreneurship and its counterpart in Mauritius on developing skill-sets.
  • The Mauritian side, while conveying the shortage of professionals in Mauritius in various sectors such as Information and communication technologies (ICT), Financial Services, Film production, Engineering, Health etc., welcomed movement of high skilled professionals from India to Mauritius.

What is India - Mauritius CECPA?

• About:
  • It is a kind of free trade pact that aims to provide an institutional mechanism to encourage and improve trade between the two countries.
  • It is a limited agreement that will cover only select sectors.
  • It will cover sectors such as Trade in Goods, Rules of Origin, Trade in Services, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, etc.
• Benefit to India:
  • More than 300 domestic goods from agriculture, textiles, electronics and other sectors will get market access at concessional customs duties in Mauritius.
  • Indian service providers will have access to around 115 sub-sectors from the 11 broad service sectors, such as professional services, computer related services, research & development, other business services, etc.
• Benefit to Mauritius:
  • It will benefit from preferential market access into India for its 615 products, including frozen fish, speciality sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment, and apparel.
  • India has offered around 95 sub-sectors from the 11 broad services sectors, including professional services, R&D, other business services, telecommunication, environmental, health, etc.

How has India’s relations with Mauritius been?

• Economic:
  • Social Housing Units:
  • In May 2016, India had extended a grant of USD 353 million to Mauritius as Special Economic Package (SEP) to execute five priority projects identified by Mauritius, among others:
  • Metro Express Project
  • Supreme Court Building
  • New ENT Hospital
  • Supply of Digital Tablets to Primary School Children
  • Social Housing Project.
  • With the inauguration of the Social Housing Project, all the high-profile projects under the SEP have been implemented.
• Construction of a State-of-the-Art Civil Service College:
  • It is being financed through a grant support of USD 4.74 million, under an MoU signed in 2017 during the visit of Prime Minister of Mauritius to India.
  • 8 MW Solar PV Farm:
  • It involves the installation of 25,000 PV cells to generate approximately 14 GWh of green energy annually, to electrify approximately 10,000 Mauritian households.
  • Foreign Direct Investment:
  • Mauritius was the third top source (15.98%) of Foreign Direct Investment (FDI) into India in 2021-22.
• Recent Developments:
  • India has signed a contract with Mauritius for the export of an Advanced Light Helicopter Mk III.
  • The helicopter will be used by the Mauritius Police Force.
  • India and Mauritius signed a USD 100 million Defence Line of Credit agreement.
  • The two sides also discussed the Chagos Archipelago dispute, which was an issue of sovereignty and sustainable development before the United Nations (UN).
  • In 2019, India voted at the UN General Assembly in support of the Mauritian position on the issue. India was one of the 116 countries that voted demanding that the UK end its “colonial administration” from the group of islands.
  • India also delivered 1,00,000 Covishield vaccines to Mauritius.

Way Forward

• India’s approach to Mauritius is being increasingly entrenched within a regional framework, as seen with Mission Sagar, India’s initiative to deliver Covid-19 related assistance to countries in the Indian Ocean region.
  • To take this engagement further, India needs to remain proactive in bringing together like-minded partners such as Mauritius, Comoros, Madagascar, Seychelles, Maldives, and Sri Lanka in numerous and overlapping ways.
• While India and Mauritius share cultural contiguity dating back to colonial times and a special partnership in recent years, India cannot take its influence in Mauritius for granted and should continue to enhance its engagement with this important island country.
• As India takes an integrated view of its security cooperation in the south western Indian Ocean, Mauritius is the natural node for it.
  • Therefore, it is important to take course-corrections in India’s Neighbourhood First policy.

India & its Neighbourhood

What is India’s Neighbourhood First Policy?

• About:
  • Under its 'Neighbourhood First' policy, India is committed to developing friendly and mutually beneficial relations with all its neighbours.
  • India is an active development partner and is involved in several projects in these countries.
  • India’s policy of ‘Neighbourhood First’ focuses on creating mutually beneficial, people-oriented, regional frameworks for stability and prosperity.
• Purpose:
  • Connectivity:
    (i) India has entered into MoU (Memorandum of Understanding) with members of the South Asian Association for Regional Cooperation (SAARC).
    (ii) These agreements ensure a free flow of resources, energy, goods, labour, and information across borders.
  • Improving Relations with Neighbours:
    (i) Priority is to improve the relations with immediate neighbours as peace and tranquillity in South Asia is essential for realising development agenda.
  • Dialogue:
    (i)It focuses on vigorous regional diplomacy by engaging with neighbouring nations and building political connectivity through dialogue.
  • Economic Cooperation:
    (i) It focuses on enhancing trade ties with neighbours.
    (ii) India has participated and invested in SAARC as a vehicle for development in the region.
    (iii) One such example is the Bangladesh-Bhutan-India-Nepal (BBIN) grouping for energy development i.e. motor vehicles, waterpower management and inter-grid connectivity.
  • Disaster Management:
    (i) The policy also focuses on cooperating on disaster response, resource management, weather forecasting and communication and also capabilities and expertise in disaster management for all South Asian citizens.
  • Military and Defence Cooperation:
    (i) India is also focusing on deepening security in the region through military cooperation by conducting as well as participating in various defence exercises.

How has India’s Relations with its Neighbours been?

• India - Maldives:
  • Security Partnership:
    (i) Recently, the National College for Policing and Law Enforcement (NCPLE) was inaugurated by India’s External Affairs Minister during his two day visit to Maldives in 2022.
  • Rehabilitation Centre:
    (i) Signing of an USD80-million contract for the Addu reclamation and shore protection project.
    (ii) A drug detoxification and rehabilitation centre in Addu built with Indian assistance.
    (iii) The centre is one of 20 high impact community development projects being implemented by India in areas such as healthcare, education, fisheries, tourism, sports and culture.
  • Economic Cooperation:
    (i) Tourism is the mainstay of Maldivian economy. The country is now a major tourist destination for some Indians and a job destination for others.
    (ii) In August 2021, Afcons, an Indian company, signed a contract for the largest-ever infrastructure project in Maldives which is the Greater Male Connectivity Project (GMCP).
• India - Bhutan:
  • Indo-Bhutan Treaty of Peace and Friendship, 1949:
    (i) The Treaty provides for, among other things, perpetual peace and friendship, free trade and commerce and equal justice to each other’s citizens.
    (ii) In 2007 the treaty was re-negotiated, and provisions were included to encourage Bhutan’s sovereignty, abolishing the need to take India’s guidance on foreign policy.
  • Hydropower Cooperation:
    (i) This hydropower cooperation comes under the 2006 Agreement on Cooperation in Hydropower.
    (ii) Under a protocol to this agreement, India has agreed to assist Bhutan in the development of a minimum of 10,000 MW of hydropower and import of surplus electricity from the same by 2020.
  • Economic Assistance:
    (i) India is Bhutan’s leading development partner.
    (ii) Since the launch of the First Five Year Plan of Bhutan in 1961, India has been extending financial support to Bhutan’s FYPs.
    (iii) India has allotted Rs 4500 crore to Bhutan’s 12th FYP (2018-23).
• India - Nepal:
  • High Level Visit:
    (i) Recently, the Indian Prime Minister has visited Lumbini, Nepal, the birthplace of Buddha, where he laid a foundation stone along with Nepalese Prime Minister for a Buddhist Vihara, being built with Indian assistance.
  • Treaty of Peace and Friendship of 1950:
    (i) The treaty talks about reciprocal treatment of Indian and Nepali citizens in the two countries, in residence, property, business and movement.
    (ii) It also establishes national treatment for both Indian and Nepalese businesses (i.e. once imported, foreign goods would be treated no differently than domestic goods).
  • Hydropower Projects:
    (i) The two countries signed five agreements, including one between the Satluj Jal Vidyut Nigam (SJVN) Ltd and the Nepal Electricity Authority (NEA) for development and implementation of 490.2 megawatts Arun-4 hydropower project.
    (ii) Nepal also invited Indian companies to invest in the West Seti hydropower project in Nepal.
• India - Sri Lanka:
  • Hybrid Power:
    (i) India & Sri Lanka signed a MoU that provided India to set up hybrid power projects in three Islands (Nainativu , Delft or Neduntheevu , and Analaitivu) off Jaffna.
  • Maritime Rescue Coordination Center:
    (i) India and Sri Lanka have also agreed to set up a Maritime Rescue Coordination Center (MRCC), signaling greater defence sector collaboration between the neighbours.
  • Unitary Digital Identity framework:
    (i) India has agreed to provide a grant to Sri Lanka to implement a ‘Unitary Digital Identity framework’, apparently modelled on the Aadhaar card.
    (ii) It is similar to India’s own Aadhaar and under the proposed Unitary Digital Identity framework, Sri Lanka is expected to introduce a:
    (iii) Personal identity verification device based on biometric data.
    (iv) Digital tool that can represent the identities of individuals in cyberspace.
    (v) Identification of individual identities that can be accurately verified in digital and physical environments by combining the two devices.

What are the Challenges in India’s Neighbourhood First Policy?

• Growing Chinese Pressure:
  • It failed to take a meaningful direction and growing Chinese pressure has prevented the country from winning allies in the region.
  • On the maritime front, China is extending its influence across the Indo-Pacific region.
• Interference in Domestic Affairs:
  • India is interfering in the domestic affairs of neighbouring countries especially in Nepal in the violation of their sovereignty.
  • India is also creating hurdles in free transit and free trade within and beyond Nepal and keeps suppressing its people and government.
• Impact of India’s Domestic Politics:
  • India’s domestic policies are creating problems in Bangladesh, a Muslim-majority country, showing India’s neighbourhood first policy faces serious challenges even in friendly territories like Bangladesh.
• Impact of India’s Tilt towards West:
  • India draws closer to the West, particularly through the Quad and other multilateral and mini-lateral initiatives.
  • But Sri Lanka’s connections with the West are not moving in a good direction as the country’s current government faces increasing criticism from Western capitals on human rights issues and freedoms.

Way Forward

• India’ neighbourhood policy should be based on the principles of Gujral Doctrine.
• This would ensure India’s stature and strength cannot be isolated from the quality of its relations with its neighbours and there can be regional growth as well.
• Integrating India’s regional economic and foreign policy remains a major challenge.
• Therefore, India should resist compromising bilateral relationships with neighbours for short economic interests.
• Regional connectivity must be pursued with greater vigour while security concerns are addressed through cost-effective, efficient and reliable technological measures which are in use in other parts of the world.

To read more information:

• India Nepal Relations 
• India and Bhutan Relations 
• Indo Afghan Bilateral Relations-1 
• India Bangladesh Relations 
• India Myanmar Relations-1 
• Indo China Relations-1