January 2021 India and the World

Sakshi Education

‘Chinese using Indian roads for trespass’
As India and China started the ninth round of Corps Commander talks to address the nine-month-long standoff along the Line of Actual Control (LAC) at the Moldo border personnel meeting point on the Chinese side opposite Chushul in Eastern Ladakh, the head of one of the border villages claimed that Chinese vehicles were using Indian roads to enter Indian territory.

The area where the Chinese are trying to assert themselves is close to Patrolling Point 38.

Indian nomads have not been there for winter grazing for the past two years due to some illness in the livestock.

Chinese sauntering in Indian areas this time around has never happened. They are using roads built by India to encroach on our territory.

There was no commonly delineated LAC and there was an overlap in the perception of the LAC in many areas.

It has to be a comprehensive disengagement plan beginning with all friction points in Eastern Ladakh and then de-escalation along the Line of Actual Control, referring to China’s insistence on discussions centred on the South Bank of Pangong Tso first and taking up other friction areas later.

Any withdrawal will be phased and will take time, given the large number of troops and equipment deployed by both sides and also verify compliance on the ground by the Chinese side at each step.
India, UK call for strengthening international cooperation to combat cross-border terrorism in South Asia
India and the United Kingdom held the fourteenth meeting of the India-United Kingdom Joint Counter-Terrorism Working Group. The conference will actually be held from January 21 to 22, 2021.

At this meeting, both countries strongly condemned terrorism in all its forms and manifestations.

Both countries emphasized the need to strengthen international cooperation so that in addition to combating cross-border terrorism in South Asia, the problem of global terrorism can also be completely resolved.

Countries have reviewed terrorist entities and terrorist threats stipulated by the United Nations. The two countries also exchanged views on evaluating terrorist entities and individuals as counter-terrorism tools.

In addition, the challenges faced by terrorism in response to the COVID-19 pandemic were discussed.

The two countries finally demanded that other countries take immediate steps to ensure that the territories under their control are not used for terrorist activities. They also demand that all countries, if any attacks are launched on certain territories, their respective countries must take action.
PM Narendra Modi to attend G7 Summit in June 2021
British Prime Minister invited the Indian Prime Minister to the UK for the G7 summit in June 2021.

The proposed summit will be the first in-person G-7 summit in almost two years, as it will be held in the English region of Cornwall from June 11 to 13.

Besides India, Australia and South Korea have also been invited as guest countries as a testament to UK’s commitment to ensuring multilateral institutions better reflect today’s world.

G7 PLUS India, Australia and South Korea is seen as a gathering of D-10 —10 leaders who represent over 60% of people living in democracies around the world. This is also seen as a signal to China.

India had attended the G-7 summit in Biarritz in France in August 2019 and was also invited for the 2020 summit hosted by the US — which could not take place due to the pandemic.

This is expected to be second G-7 summit in the tenure of present PM; his predecessor had attended the G-8 summit (it became G-7 from G-8 with the expulsion of Russia in 2014) five times between 2005 and 2009.

G7 is the most prominent grouping of democratic countries, and it has long been the catalyst for decisive international action to tackle the greatest challenges. From cancelling developing world debt to our universal condemnation of Russia’s annexation of Crimea, the world has looked to the G7 to apply our shared values and diplomatic might to create a more open and prosperous planet.

The G7, which includes UK, Canada, France, Germany, Italy, Japan, the USA and the EU, is the only forum where the world’s most influential and open societies and advanced economies gather for discussions.

The summit itself will be held in the coastal town of Carbis Bay, supported by neighbouring St. Ives and other towns across the Cornwall region.

In February, UK will assume the Presidency of the UN Security Council, and, later this year, it will host the COP26 climate summit in Glasgow and a global education conference.
PM Modi, Xi Jinping among world leaders to participate in virtual Davos summit
Prime Minister Narendra Modi and Chinese President Xi Jinping will attend the Davos Agenda Summit. The Davos Agenda Summit was organized by the World Economic Forum.

The "Great Reset Initiative" of the World Economic Forum will be launched during the Davos Agenda Summit.

The theme of the Davos Agenda Summit in 2021 is "Stakeholders Build a Cohesive and Sustainable World".

The US priority policy of the United States has caused a huge collapse in international agreements in the past few years. It broke several global agreements including the Paris climate change agreement.

Tensions in Iran: Under the authorization of US President Donald Trump, General Qassem Soleimani was killed by US troops in a drone attack. This has exacerbated geopolitical tensions between the United States and Iran.

Since the Cold War, Russia's annexation of Crimea has put greater pressure on the tensions between the United States and Russia.

In 2021, the World Economic Forum proposed a new bimodal system at its Davos meeting. One of the meetings is the usual Davos Agenda Summit, and the other is the new big reset initiative.

Just like the Davos Agenda Summit, the Great Reset Initiative will convene world leaders and will mainly focus on managing the immediate consequences of the COVID-19 crisis. Basically, the big reset plan is being launched to recover the global economy from the COVID-19 crisis.
Indian, French Rafale fighters to take part in joint combat
India and France will hold ex-Desert Knight 21 exercises. This is a bilateral air exercise between the Indian Air Force and the French Air Force. Desert Knight 21 will be held in Jodhpur, Rajasthan. Rafale fighters will participate in the exercise.

Under the leadership of the Indo-French Defense Cooperation Organization, the French Air Force and the Indian Air Force have so far conducted six air exercises called the "Eagle."

The last of the six exercises was held at Mont-de-Marsan Air Force Base in France in 2019. In addition to the Garuda series of exercises, "Desert Front Knight 21" will also be held.

About Former Desert Rider 21: The main purpose of this exercise is to provide operational risks and share best practices. Rafale flying jets from the French Aerospace Agency, multi-purpose tanker transport aircraft and approximately 175 personnel will participate in the exercise. Su-30 MKI, Mirage 2000 and IL-78 flying tankers from the Indian Air Force will participate in this exercise.

The regular defense exercises between India and France are as follows:

Shakti exercise was held between the Indian and French forces

The Varuna exercise was held between the Indian Navy and the French Navy

The Garuda exercise was held between the two air forces

The three main pillars of the India-French strategic partnership are space, defense and civil nuclear cooperation.

France has been supporting India as a permanent member of the UN Security Council. France has also received strong support from India in the missile technology control system, the Wassenaar arrangement, the Australian group and the nuclear supplier group.

India joined the Wassenaar Arrangement and became the 42nd member. In addition, India joined the missile technology control regime in 2018. Since India is a non-signatory of the NPT, India's accession has been widely opposed.
Government of India strengthens cargo handling capacity of Chabahar Port, Iran
The Indian government has strengthened the cargo handling capacity of Iran's Chabahar port.

India has provided cargo of two Mobile Harbour Cranes (MHC) to Iran’s Chabahar Port. According to the contract agreement, the total value of the contract exceeds USD 25 million and a total of 6 MHCs are supplied.

This is a stage towards India's responsibility towards infrastructure development of ?Shahid Beheshti Port of Chabahar.

The bilateral contract between the Islamic Republic of Iran and the Republic of India was signed in 2016, with a total value of USD 85 million, for the equipment, mechanization and start of operation at Shahid Beheshti Port of Chabahar development Phase- I.

In order to achieve this ambitious goal, an SPV namely India Ports Global Limited (IPGL), Mumbai was incorporated under the ambit of the Ministry of Ports, ?Shipping and Waterways.

The development of Chabahar Port is the anchor point for the expansion of economic and mutual relations between India and Iran, and it will further promote the maritime trade between both countries.

The geographical location of Chabahar Port has strategic advantages and huge potential. It can establish connectivity between India, Iran, Afghanistan, Uzbekistan and other CIS countries (especially the eastern countries of the CIS) to increase these Trade between countries.
India, Singapore defence ministers sign submarine rescue support agreement
5th Defence Ministers' Dialogue (DMD) was recently held between India and Singapore through a video conferencing and continues the substantial increase in bilateral cooperation and defence partnership over the years.

Defence and security engagements between India and Singapore have broadened significantly in scale and scope across all three Services of the Armed Forces as well as in the areas of defence technology and industry.

Both countries have also found common ground on multilateral fora and engagements.

Both navies signed Implementing Agreement on Submarine Rescue Support and Cooperation.

Full support was conveyed by both countries towards the early conclusion of agreements to establish reciprocal arrangements for the cross-attendance of military courses and facilitate conduct of live firings.

Both also welcomed the initiatives to expand bilateral defence cooperation including the implementing agreement on Humanitarian Assistance and Disaster Relief (HADR) cooperation in August 2020.
India to chair three-key subsidiary bodies of UNSC
It was announced by the Permanent Representative of India at the United Nations Security Council that India will be chairing three-key subsidiary bodies of the United Nations Security Council (UNSC).

Panels: Counter-Terrorism Committee (for 2022), Taliban Sanctions Committee, and Libya Sanctions committee.

India will chair the Counter-Terrorism Committee of UNSC in 2022. Chairing of this committee has a special resonance for India. This committee is at the forefront of fighting terrorism especially cross border terrorism and it is also been one of its biggest victims of terrorism.

Taliban Sanctions Committee has a strong interest and commitment to peace, security, development, and progress of Afghanistan.

India will be assuming the chair of the Libya Sanctions Committee at a critical juncture when there is an international focus on Libya and on the peace process.
India, Bangladesh police to enhance work against terrorist activities
The police forces of India and Bangladesh will enhance their work against terrorist entities including the Global Terrorist Groups as well as other fugitives wherever they are present and active. The decision was taken during the delegation level dialogues between the police chiefs of India and Bangladesh held virtually today. The two sides discussed ongoing bilateral cooperation and decided to further strengthen the relationship of the police forces between the two countries.

Home Ministry in a statement said that designated ‘nodal points’ would be established for timely and effective handling and response to existing as well as emerging security and counter-terrorism challenges. The Ministry said that both sides agreed to enhance their work jointly against terrorist entities including the Global Terrorist Groups, as well as other fugitives. Both sides also reiterated the need for sharing of real time intelligence and feedback through the designated ‘nodal points’, while appreciating each other’s ongoing action against insurgent groups operating in the region.

During the meeting, the scope of enhanced coordination to combat trans-border crimes, including smuggling of drugs, fake Indian Currency Notes, arms and ammunition and human trafficking was also discussed.

The dialogue concluded with assurances of greater cooperation on both sides to address all security challenges in future.
India seeks action for attack on Hindu temple in Pakistan
Karak Hindu Temple was demolished by a mob in the Khyber Pakhtunkhwa province of Pakistan.

This is the second time since 1997 that the Karak temple had been demolished.

This time India has expressed “serious concerns” over this vandalisation, and called upon the Pakistan government to take “strict action” against those responsible.

Despite ongoing tensions over the temple attack and increasing ceasefire violations at the Line of Control, India and Pakistan continued traditional exchanges of information on New Year’s Day according to previously signed agreements. Both countries exchanged lists of nuclear installation and facilities and others.
Donald Trump extends bans H-1B visa until March 31, Indian IT professionals to be hit
US President extended pandemic related bans on green cards and work visas to large groups of applicants through 31st March 2021. This has made U.S. immigration policy more restrictive.

In April 2019, US imposed a ban on green cards issued abroad that largely targets family members of people already in the U.S.

Further in June 2019, US added H1B visas, which are widely used by American and Indian technology company workers and their families; H2B visas for nonagricultural seasonal workers; J1 visas for cultural exchanges; and L1 visas for managers and other key employees of multinational corporations.

The effects of COVID-19 on the U.S. labour market and on the health of American communities is a matter of ongoing national concern for US. Hence, these measures would protect American jobs in a pandemic wracked economy, while on the other hand, this step would hamper a recovery.
India looks at lithium reserves in Argentina, Chile and Bolivia
India started reaching out to the ‘Lithium Triangle’ in South America. In 2019, KhanijBidesh India Ltd inked a pact with an Argentine firm to jointly prospect lithium in the South American country.

South American country has the third-largest reserves of the silver-white alkali metal— a crucial building block of the lithium-ion rechargeable batteries that power electric vehicles (EVs), laptops and mobile phones.

The new company, KhanijBidesh India Ltd was incorporated in August 2019 with a specific mandate to acquire strategic mineral assets such as lithium and cobalt abroad.

It is a consortium of three PSU companies including National Aluminum Company (NALCO), Hindustan Copper (HCL) and Mineral Exploration Corp Ltd., (MECL).

The Consortium has been formed by the Ministry of Mines, Government of India, for identifying, exploring, acquiring, developing and processing strategic minerals overseas.

India is exploring options in Chile and Bolivia, two other top lithium-producing countries.

Currently, India is heavily dependent on the import of these cells and the move to ink sourcing pacts for lithium is seen as another economic offensive against China, which is a key source of both the raw material and cells.

India is seen as a late mover as it attempts to enter the lithium value chain, coming at a time when EVs are in need of an hour and India has set a target on achieving an all-electric car fleet by 2030.

2021 is likely to be an inflection point for battery technology, with several potential improvements to the Li-ion technology, and alternatives to this tried- and-tested formulation, under advanced stages of commercialization.

Li-ion batteries are commonly used in portable electronic devices, solar power plants as well as electric vehicles due to their high energy density and high charge and discharge rate capabilities, as compared with another type of batteries such as Ni-MH or Lead Acid.
Cabinet approves signing of MoC between India and Japan on partnership in ‘Specified Skilled Worker’
The Union Cabinet has approved the signing of a Memorandum of Cooperation between the Government of India and Government of Japan, on a Basic Framework for Partnership for Proper Operation of the System Pertaining to "Specified Skilled Worker".

Under this MOC, a Joint Working Group will be set up to follow up the implementation of this MOC.

It would set an institutional mechanism for partnership and cooperation between India and Japan on sending and accepting skilled Indian workers, who have qualified the required skill and Japanese language test, to work in fourteen specified sectors in Japan.

These Indian workers would be granted a new status of residence of "Specified Skilled Worker" by the Government of Japan.

The Memorandum of Cooperation (MOC) would enhance people-to -people contacts, foster mobility of workers and skilled professionals from India to Japan.

Skilled Indian workers from fourteen sectors viz. Nursing care; Building cleaning; Material Processing industry; Industrial machinery manufacturing industry; Electric and electronic information related industry; Construction; Shipbuilding and ship-related industry; Automobile maintenance; Aviation; Lodging; Agriculture; Fisheries; Food and beverages manufacturing industry and Food service industry would have enhanced job opportunities to work in Japan.
India to replace UK as fifth-biggest economy in 2025, says UK think-tank
India will again overtake the UK to become the fifth largest in 2025 and race to the third spot by 2030, the Centre for Economics and Business Research (CEBR) said.

India had overtaken the UK in 2019 to become the fifth-largest economy in the world but has been relegated to the 6th spot in 2020.

The CEBRs annual report said that the coronavirus crisis had been a ‘human and an economic catastrophe’ for India.

The UK appears to have overtaken India again during 2020 as a result of the weakness of the rupee.

The CEBR forecasts that the Indian economy will expand by 9 percent in 2021 and by 7 percent in 2022.

Growth will naturally slow, as India becomes more economically developed, with the annual GDP growth expected to sink to 5.8 percent in 2035.

This growth trajectory will see India become the world's third-largest economy by 2030, overtaking the UK in 2025, Germany in 2027, and Japan in 2030.

The UK-based think tank forecast that China will in 2028 overtake the US to become the world's biggest economy.

Japan would remain the world's third-biggest economy, in dollar terms, until the early 2030s when it would be overtaken by India, pushing Germany down from fourth to fifth.
Trade, energy cooperation on agenda in Jaishankar’s Qatar visit
External Affairs Minister on a two-day visit to the Gulf nation met business leaders in Qatar and highlighted the investment opportunities in India.

He briefed them about new opportunities flowing from 'Atmanirbhar Bharat'.

The visit is part of India’s ongoing outreach to West Asia, which sees as part of its extended neighborhood.

Qatar is home to over seven lakh Indians. The bilateral trade was USD 10.95 billion in 2019-20.

Both sides remain committed to intensifying bilateral cooperation in various fields including energy and investments.

India and Qatar have also worked together to face the COVID-19 pandemic and coordinated, smooth operation of flights under an air bubble arrangement.

In an conversation earlier, both nations decided to create a special task force to facilitate investments by the Qatar Investment Authority in India, and to explore Qatari investments in the country’s energy value-chain.

Indian workers have benefited from Qatar’s labour reforms ahead of the 2022 football World Cup, including a 25 percent hike in the minimum wage and the dismantling of a system that required workers to seek the consent of employers to switch jobs.

The two sides agreed on institutionalizing measures to promote and protect the rights of workers, including settling labour issues and facilitating the movement of people between the two countries in a safe and secure manner.
Maintaining inflation target at 4% is appropriate for India: RBI Working Paper
A Reserve Bank of India (RBI) working paper has recommended that India should maintain the inflation target at 4 per cent.

The paper, authored by Harendra Kumar Behera and Michael Debabrata Patra, comes amid the growing speculations that the Centre may ask the central bank to relax its inflation target to help push the economy back on the track.

The working paper is published by the RBI’s Department of Economic and Policy Research. It noted that central to monetary policy is the concept of ‘Trend Inflation’ to which actual inflation outcomes are expected to converge after short-run fluctuations die out.

Accordingly, the inflation target needs to be fixed in alignment with trend inflation to avoid unhinging inflation expectations and flattening the aggregate supply curve or imparting a deflationary bias to the economy.

“Results from a regime switching model applied to a ‘hybrid New Keynesian Philips’ curve suggest a steady decline in trend inflation since 2014 to 4.1-4.3 per cent just before Covid-19 struck. This points to maintaining the inflation target at 4 per cent for India,” the paper authored by Harendra Kumar Behera and Michael Debabrata Patra of RBI.

“Analogously, a target that is fixed above trend renders monetary policy too expansionary and prone to inflationary shocks and unanchored expectations. Hence, maintaining the inflation target at 4 per cent is appropriate for India,” it said.

The paper added the decline in trend inflation since 2014 is, however, coincident with a flattening of the ‘Philips Curve’.

Trend inflation provides key insights for monetary policy committee in at least three important ways.

The Phillips curve is an economic concept that shows that inflation and unemployment have a stable and inverse relationship.

“First, the level and variability of trend inflation indicate how anchored inflation expectations are. Second, it is a valuable gauge of the appropriateness of the monetary policy stance and the necessity or otherwise of additional monetary policy actions to achieve steady state inflation,” it said.

Third, trend inflation provides a centering point for the evaluation of inflation forecasts over various time periods and, this, in turn, can usefully inform the setting of monetary policy.
India begins its two-year tenure as a Non-Permanent Member of the UNSC
India, which has been at the forefront of years-long efforts to reform the United Nations Security Council (UNSC), on Friday began its two-year tenure as a non-permanent member of the powerful organ of the world body.

India will sit in the 15-nation UNSC for the 2021-22 term as a non-permanent member - the eighth time that the country has had a seat.