International Relations: December 2022 UPSC Current Affairs | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

NSA Meet with Central Asia

Why in News?

The National Security Advisor (NSA) of India, for the first time, hosted a special meeting with his counterparts from Central Asian countries - Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.

• Earlier in January 2022, the Prime Minister of India hosted the first India-Central Asia Summit in virtual format.

What are the Key Highlights about the Meetings of NSAs?

• 30^th Anniversary: This was the first time that NSAs of Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan were in Delhi for a high-level security meeting.
• The meeting coincides with the 30^th anniversary of the establishment of diplomatic ties between India and the Central Asian countries.
• Afghanistan the Centre of Talks: The focus was mainly on the security situation in Afghanistan and the threat of terrorism originating from the country under the Taliban.
• Deliberations over Chabahar: The NSAs supported India’s proposal to include Chabahar port within the framework of the INSTC (International North-South Transport Corridor) connecting Iran to Russia via Central Asia.
• Other Deliberations: Deliberations over the need for collective and coordinated action against the “misuse of new and emerging technologies, arms and drugs trafficking, abuse of cyber space to spread disinformation and unmanned aerial systems”.
• Institutionalisation of Mechanism: During the summit, the leaders agreed to institutionalise the Summit mechanism by deciding to hold it biannually.
• An India-Central Asia Secretariat in New Delhi would be set up to support the new mechanism.

Wassenaar Arrangement

Why in News?

• Recently, on 26^th annual plenary of the Wassenaar Arrangement in Vienna, Ireland handed over the chairmanship to India and India will officially assume the chairmanship from 1^st January, 2023.

What is Wassenaar Arrangement?

• About:
  • The Wassenaar Arrangement is a voluntary export control regime. The Arrangement, formally established in July 1996, has 42 members who exchange information on transfers of conventional weapons and dual-use goods and technologies.
  • Dual-use refers to the ability of a good or technology to be used for multiple purposes - usually peaceful and military.
  • Wassenaar Arrangement’s Secretariat is in Vienna, Austria.
• Members:
  • It has 42 member states comprising mostly NATO (North Atlantic Treaty Organization) and EU states.
  • Participating States are required to report their arms transfers and transfers/denials of certain dual-use goods and technologies to destinations outside the Arrangement on a six-monthly basis.
  • India became a member of the Arrangement in 2017.
• Objectives:
  • The group works by regularly exchanging information in respect of technology, both conventional and nuclear-capable, that is sold to, or denied to countries outside the grouping.
  • This is done through maintenance and updating of detailed lists of chemicals, technologies, processes and products that are considered militarily significant.
  • It aims at controlling the movement of technology, material or components to countries or entities which undermine international security and stability.
  • Wassenaar Arrangement Plenary: It is the decision-making body of the Arrangement.
  • It is composed of representatives of all Participating States and normally meets once a year, usually in December.
  • The position of Plenary Chair is subject to annual rotation among Participating States.
  • In 2018 the Plenary Chair was held by the United Kingdom, and in 2019 the Chair is held by Greece.
  • All Plenary decisions are taken by consensus.

Why is the Chairmanship Significant for India?

• Can Bolster Anti-Terrorism Efforts:
  • The timing of India’s WA chairmanship coincides with a recent increase in country’s anti-terrorism position in international bodies.
  • India is also actively engaging global stakeholders in curbing terrorist financing.
  • Indian home minister is presently the chair of the No Money for Terrorism (NMFT) ministerial initiative.
• Prevent Arms Diversion to Terrorists:
  • As a chair of the plenary, India would be in a position to steer discussions of the group to further strengthen the export controls to prevent arms diversion to terrorists or to sovereign nations supporting terrorism.
• Strong Anti-Proliferation Framework:
  • The worsening economic crisis in India’s western neighbour coupled with rapid radicalization of historically moderate sects in communities in the country poses a peculiar set of challenges to India.
  • Strengthening the licensing and enforcement practices under the WA and adoption of new export controls in areas like flight technology, interception technology and digital investigation tools will pave the way for the creation of a strong anti-proliferation framework for South Asia.
• Democratization of space and Defense Technologies:
  • India can play a significant role in democratising access to technologies and processes that can serve as crucial building blocks for the newly emerging defence and space manufacturing sectors in India.
  • India is slowly emerging as a low-cost producer of several items in the WA’s control lists.

What are other Export Control Regimes?

• The Nuclear Suppliers Group (NSG), for the control of nuclear related technology.
• The Australia Group (AG) for control of chemical and biological technology that could be weaponized.
• The Missile Technology Control Regime (MTCR) for the control of rockets and other aerial vehicles capable of delivering weapons of mass destruction.

Way Forward

• Membership to these not only allows greater technology and material access but enhances the credibility of a nation as a responsible member of the world order.
• India is poised to become a significant player in the world and thus requires a voice to further its claim as a rising power.

India as Voice of Global South

• Context
  • The Honorable PM of India recently inaugurated a virtual event, “Voice of the Global South Summit”.
• About:
  • India hosted the summit in a bid to articulate the views of the developing countries regarding the effects of the pandemic and the war in Ukraine.
  • The event has planned eight ministerial sessions including finance, energy, education, foreign affairs, and commerce. 
• Theme:
  • It was held under the theme - ‘Unity of Voice, Unity of Purpose’ - essentially envisages bringing together countries of the global south and sharing their perspectives and priorities on a common platform across a whole range of issues.
• Uniting Global south:
  • Prime Minister through this event has set the stage on behalf of developing countries, many of which are united by a history of colonisation. 
  • Offering to become the voice of the Global South, India during the event gave a new agenda to the world on behalf of the countries of the South: ‘respond, recognise, respect, and reform’.
  • The ‘Global South’ broadly refers to countries in Asia, Africa, and South America.
• Voice of global South in the ongoing Crisis:
  • According to PM, the world is facing a lasting crisis and there is no clarity about how long this “state of instability” will last.
  • The Global South does not have adequate voice in the “eight decades old model of global governance” and that it should shape the “emerging order”.
  • As stated by him, “Most of the global challenges have not been created by the Global South. But they affect us more. We have seen this in the impact of COVID pandemic, climate change, terrorism and even the Ukraine conflict. The search for solutions also does not factor in our role or our voice”.
• India’s goal:
  • The goal of India in 2023 is to represent the Global South
  • As India begins its G20 Presidency this year, it is natural that our aim is to amplify the voice of the Global South.

Significance of categorization

• Shared similarities:
  • What sets the terms Global North and South apart are that first, they are arguably more accurate in grouping countries together, measuring similarly in terms of wealth, indicators of education and healthcare, etc. 
  • Another commonality between the South countries is that most have a history of colonisation, largely at the hands of European powers.
• Present requirements: 
  • Why the concept is being reiterated now is partly because of the economic emergence of some of these South countries, such as India and China, in the last few decades. 
  • Many consider the world to now be multipolar rather than one where the US alone dominates international affairs. 
• Challenging the ideal:
  • The progress achieved by many Asian countries is also seen as challenging the idea that the North is the ideal.
• Criticisms
  • The term is too broad: 
  • The problem of proper naming is still not resolved.
  • North countries paying for funding green energy, having historically contributed to higher carbon emissions, many in the Global North have objected to China and India’s exclusion from this, given their increasing industrialisation.
• No different objective:
  • There is also the question of whether the South simply aims to replace the North and the positions it occupies, again continuing a cycle in which a few countries accumulate crucial resources. 
• Possible neglect of Africa:
  • In the rise of Asia, the continued neglect of Africa has been questioned as well.

Way ahead

• In this multipolar world, the whole North and South needs to come together to fight the issues of developed and developing countries and promote the East like the West.
• Some economists have argued that international free trade and unhindered capital flows across countries could lead to a contraction in the North–South divide. 
  • In this case more equal trade and flow of capital would allow the possibility for developing countries to further develop economically.
• As some countries in the South experience rapid development, there is evidence that those states are developing high levels of South–South aid.

Indian and Chinese Troops Clash in Arunachal Pradesh

Why in News?

• Recently, India and China troops clashed along the Yangste river in Tawang sector in Arunachal Pradesh.
• This was the first such incident involving the Indian soldiers and Chinese PLA troops since the Galwan Valley incident in 2020.
• Both sides patrol areas up to their claim lines and this has been a trend since 2006.

What is the Background?

• According to the India Army, there are certain areas along the Line of Actual Control (LAC) in the Tawang Sector that are areas of differing perception.
• The LAC is divided into western (Ladakh), middle (Himachal Pradesh and Uttarakhand), Sikkim, and eastern (Arunachal Pradesh) sectors.
• The incident came days after China expressed objection to Operation Yudhabhyas, an India-US joint military exercise at Auli in the Uttarakhand hills, claiming it was a violation of 1993 and 1996 border agreements.

What is the Importance of Arunachal Pradesh from an Indian/Chinese Perspective?

• Strategic Significance:
  • Arunachal Pradesh, known as the Northeast Frontier Agency (NEFA) until 1972, is the largest state in the northeast and shares international borders with Tibet to the north and northwest, Bhutan towards the west and Myanmar to the east.
  • The state is like a protective shield to the northeast.
  • However, China claims Arunachal Pradesh as a part of southern Tibet.
  • And while China may lay claim to the entire state, its main interest lies in the district of Tawang, which is in the north-western region of Arunachal and borders Bhutan and Tibet.
• Bhutan Factor:
  • Taking control of Arunachal would mean that Bhutan would have Chinese neighbours on both its western and eastern borders if Beijing gained control.
  • On the western side of Bhutan, China has already begun building motorable roads linking strategic points.
• Waterpower:
  • Since, China has control over India's water supply to the northeastern region. It has constructed several dams and can use water as a geo-strategic weapon against India by causing flooding or drought in the region.
  • The Tsangpo river, which originates in Tibet, flows into India and is called Siang in Arunachal Pradesh before it becomes the Brahmaputra.
  • In 2000, a dam breach in Tibet caused floods that wreaked havoc in northeast India claiming 30 lives and leaving more than 100 missing.

Why is China Interested in the Tawang Sector?

• Strategic Importance:
  • China's interest in Tawang could be for tactical reasons as it provides a strategic entry into India's northeastern region.
  • Tawang is a critical point in the corridor between Tibet and Brahmaputra Valley.
• Tawang Monastery:
  • Tawang, which also borders Bhutan, hosts the Galden Namgey Lhatse, the world's second-largest monastery of Tibetan Buddhism, the largest being the Potala Palace in Lhasa.
  • The monastery was founded by Merag Lodroe Gyamtso in the year 1680-81 to honour the wishes of the fifth Dalai Lama.
  • China claims that the monastery is evidence that the district once belonged to Tibet. They cite historical ties between the Tawang monastery and the Lhasa monastery in Tibet to support their claim over Arunachal.
• Cultural Connections and China’s Anxieties:
  • Tawang is an important center of Tibetan Buddhism and there are some tribes in the upper Arunachal region which have cultural connections to the people of Tibet.
  • The Monpa tribal population practices Tibetan Buddhism and are also found in some areas of Tibet.
  • According to some experts, China fears that the presence of these ethnic groups in Arunachal could at some stage give rise to a pro-democracy Tibetan movement against Beijing.
• Political Significance:
  • When the Dalai Lama escaped Tibet in 1959 amid China crackdown, he entered India through Tawang and stayed in the Tawang monastery for some time.

Way Forward

• India needs to be vigilant enough for any new development in China near its border to protect its interests efficiently.
• Further, it needs to build robust Infrastructure in difficult border areas in its territory to ensure movement of personnel and other logistical supplies in an efficient manner.
• Border troops should continue their dialogue, quickly disengage, maintain proper distance and ease tensions.
• The two sides should abide by all the existing agreements and protocols on China-India boundary affairs and avoid any action that could escalate matters.

India’s Import Dependence on China

Why in News?  

The recent Tawang skirmish has led to rising demands for severing trade ties with China. However, contrary to the demands, India’s imports from China have seen a sharp increase post the Galwan Valley clash in 2020.  

How are India’s Trade Relations with China? 

• One of the Biggest Partners: China is India’s second biggest trading partner after the US.  
• In 2021-22, Indo-China bilateral trade was USD 115.83 billion - 11.2% of India’s total merchandise trade of USD 1,035 billion (Indo-US trade - 11.54%). 
• China as a trading partner stood at 10th position about 2 decades ago; this upward trend has begun since 2002-03.  
• China was India’s top trading partner in 2011-12, from 2013-14 to 2017-18 and in 2020-21.  
• Difference in Trade with China and US: 
  • The major difference in India’s trade with the US and China is that while India enjoys a trade surplus with the US (USD 32.85 bn - 2021-22), with China India has a trade deficit of USD 73.31 bn (2021-22), the highest for any country.  
  • While India's imports from China (between 2001-02 and 2021-2020) have increased from USD 2 bn to USD 94.57 bn, (in the same period) India’s exports to China have increased from about USD 1 bn to only USD 21 bn.  
• Major Imports: 
  • The top commodities that India buys from China include: 
  • Electrical machinery and equipment and parts thereof 
  • Television image and sound recorders and reproducers and parts 
  • Nuclear reactors, boilers, machinery and mechanical appliances and parts of thereof 
• Organic chemicals 
  • Plastic and plastic articles 
• Fertilisers 
  • The most valued Chinese imports are:  
  • Personal computer (laptop, palmtop etc.) > monolithic integrated circuits-digital > lithium-ion > solar cells > urea 
• Major Exports:  
  • In 2021-22, India’s exports to China were 5% of its total shipments. The top exported commodities included:  
  • Ores, slag and ash  
  • Organic chemicals, mineral fuels/oils and products of their distillation, bituminous substances, mineral waxes;  
• Iron and steel 
  • Aluminum and articles  
• Cotton  
  • Among single items, light Naphtha was India’s most valued export 

What does Heavy Import Reliance on China Imply? 

• From the perspective of the government, the political and security challenges are deepened when the state is dependent on importing products and services from an unfriendly country.  
• India imports most of the Active Pharmaceutical Ingredients (APIs) it uses in its pharmaceutical industry from China. The cost of Chinese APIs is cheaper than the Indian ones even on the Indian market. 
• The depth of the problem was revealed during the Covid-19 pandemic when due to travel restrictions, exports of Chinese APIs to India were temporarily restricted and consequently India had to cut its exports of APIs too.  
• Approximately 24% of coal energy generated in India may be coming from plants that are using critical equipment imported from China. This, therefore, may not necessarily be considered a strategic dependence, but is certainly a form of a security challenge.  
• While there are demands to limit or even block such imports from China, this would simply mean forcing private Indian power companies to suffer higher costs.

What has India done to Counter Over-Reliance on China?  

• Ban on Chinese apps 
  • Scrutinising Chinese investments - keeping Chinese companies out of 5G trials 
  • Curbing opportunistic takeover of domestic firms - FDI restriction on China 
  • Cutting import dependency for APIs - Promotion of Bulk Drug Parks and PLI Scheme  
  • De facto ban on the import of Chinese power equipments  
  • Imposed anti-dumping duties - On certain aluminium goods and chemicals, for 5 years to protect local manufacturers 
  • Identification of 12 sectors to make India a global supplier and cut import bills 
  • These sectors are food processing, organic farming, iron, aluminium and copper, agro-chemicals, electronics, industrial machinery, furniture, leather and shoes, auto parts, textiles, and coveralls, masks, sanitisers and ventilators. 

Way Forward  

• India cannot completely end its strategic dependence on the import of most crucial products. What it can do, however, is diversify this dependence by reducing China’s role in it.  
• India can diversify dependence by working more with the U.S., Europe, South Korea and Japan. This way it will increase its reliance on countries with which it also enjoys good political relations. 
• Providing further impetus to self-reliance in major sectors where India is a net-importer is a prudent way forward where technology and capital will have a huge role to play.