GS paper 2
Syllabus: Bilateral, regional and global groupings involving India and affecting India’s interests etc
Directions: Important for Prelims and mains, you can use it as an example in mains for India’s balancing nature by being part of multiple forums
Context: Russia hosted the seventh Eastern Economic Forum (EEF) Vladivostok.
- The forum is a platform for entrepreneurs to expand their businesses into Russia’s Far East (RFE).
What is the Eastern Economic Forum?
- It was established in 2015 to encourage foreign investments in the RFE.
- The EEF displays:
- Economic potential
- Suitable business conditions
- Investment opportunities in the region.
- The agreements focus on:
- Transportation projects
- Mineral excavations
Who are the major investors in the Forum?
- China is the biggest investor in the region as it sees potential in promoting the Belt and Road Initiative and the Polar Sea Route in the RFE.
- China’s investments in the region account for 90% of the total investments.
- China is also looking to develop its Heilongjiang province which connects with the RFE.
It has invested in:
- Shipbuilding projects
- Manufacturing of electrical equipment
- Gas-liquefying plants
- Agricultural production and fisheries.
- It has identified eight areas of economic cooperation and pushed private businesses to invest in the development of the RFE.
- India is keen in:
- cooperation in energy
- maritime connectivity
- diamond industry
- In 2019, India also offered a $1 billion line of credit to develop infrastructure in the region.
- India is keen in:
Aim of EEF:
- FDI: To increase the Foreign Direct Investments in the RFE.
- Rich resources: To harness rich natural resources such as fish, oil, natural gas, wood, diamonds and other minerals.
- Connect: The Russian government’s aim of connecting Russia to the Asian trading route.
A balance between the EEF and the Indo-Pacific Economic Framework(IPEF):
- Investment in EEF: India has not shied away from investing in the Russia-initiated EEF despite the current international conditions.
- Acceptance to IPEF: India has given its confirmation and acceptance to three of the four pillars in the IPEF.
Importance of IPEF for India:
- Ideal opportunity for India to act in the region: without being part of the China-led Regional Comprehensive Economic Partnership or Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
- Disengage from Supply Chains: It will help in disengaging from supply chains that are dependent on China and will also make it a part of the global supply chain network.
- New sources of raw materials and other essential products: It will further reduce India’s reliance on China for raw materials.
Indo-Pacific Economic Framework (IPEF):
It was announced in 2021 to set regional standards for cooperation and to encourage regional economies to “decouple” from the Chinese market by leading them to alternative supply chains.
Q.What is the significance of Indo-US deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. (UPSC 2020)
- Arctic Ocean