75 Days Mains Revision Plan 2024 – International Relations
International Relations
Topic: Important international institutions, fora, agencies and their mandate
Q1. Discuss the factors that drive India’s engagement with the Pacific Islands in Forum for India-Pacific Islands Cooperation (FIPIC). (10M)
Key Demand of the Question:
Discuss the factors driving India’s engagement with the Pacific Islands through the Forum for India-Pacific Islands Cooperation (FIPIC).
Directive:
Discuss – This involves examining the various factors that influence and motivate India’s involvement with the Pacific Islands within the FIPIC framework.
Structure of the answer:
Introduction:
Briefly introduce FIPIC and its relevance.
Body:
Factors Driving Engagement:
Strategic interests and geopolitical significance.
Economic opportunities and trade relations.
Environmental and climate change cooperation.
Cultural and diplomatic ties.
Support for regional stability and security.
Conclusion:
Emphasize the strategic importance of strengthening ties through FIPIC.
Introduction:
India supports the sovereignty and integrity of all countries and emphasised the shared priority of reforming international institutions to amplify the voice of the Global South. Recently, India co-chaired the third FIPIC summit with Papua New Guinea. FIPIC is a major initiative launched in 2014 under the rubric of the Act East Policy for the Pacific Islands.
Body:
Factors Driving Engagement:
- Strategic Interests and Geopolitical Significance:
- Countering China’s Influence: India seeks to counter China’s growing presence in the Pacific Islands by strengthening its own ties with these countries.
- Strategic Presence: Enhancing relationships in the Pacific helps India assert its influence in the Indo-Pacific region, crucial for maintaining a balance of power.
- Economic Opportunities and Trade Relations:
- Resource Access: The Pacific Islands are rich in natural resources, including fisheries and minerals, which are of interest to India for economic development and security.
- Trade Expansion: India aims to increase trade relations and investment opportunities with Pacific Island nations, contributing to economic growth and diversification. Eg: 9 of the world’s 10 busiest seaports are in this region
- Environmental and Climate Change Cooperation: Many Pacific Island nations are highly vulnerable to climate change. India’s support in areas such as climate resilience and disaster management strengthens its role as a responsible global player.
- Support for Regional Stability and Security:
- Maritime Security: India supports regional stability by contributing to maritime security in the Indo-pacific region.
- Development Assistance: By providing development aid and technical assistance, India helps promote stability and security in the region.
- Example: India donated 1.2 million doses of Covishield vaccine to Fiji under its Vaccine Maitri initiative, supplied essential medicines and medical equipment worth USD 2 million to Papua New Guinea, 100 metric tonnes of rice to Nauru under its Mission Sagar initiative, line of credit worth USD 75 million to Fiji for a co-generation power plant project.
- Shared Historical Ties: India and the PICs share historical and cultural ties and have been engaging with the PICs through various bilateral and multilateral platforms, such as the Non-Aligned Movement.
Way ahead:
- Consistent Outreach: Maintain regular high-level interactions with PICs through bilateral and multilateral platforms like the Forum for India-Pacific Islands Cooperation.
- Commitment Fulfillment: Ensure the effective implementation of the 12-step action plan, meeting deadlines and honoring promises made to PICs.
- Economic Engagement: Boost trade, investment, and aid, and encourage Indian businesses to explore opportunities in the PICs.
- People-to-People Ties: Foster connections through cultural, educational, scientific, and sports exchanges.
- Maritime Capacity Building: Assist PICs in enhancing maritime surveillance, disaster management, and protection of Exclusive Economic Zones.
- Strategic Collaborations: Work with allies like the U.S., Australia, and Japan to offer a balanced alternative to China’s influence, while prioritising PICs’ primary interests.
Conclusion:
Strengthening these ties through FIPIC is strategically important for India to enhance its influence, contribute to regional development, and support global environmental goals.
Topic: Effect of policies and politics of developed counties on India’s interests.
Q2. Trade decoupling from China may be slowly spreading from the US to other advanced economies. In this context, what are the strategic challenges to global economy in active decoupling from China? How will India benefit from it? (15M)
Key Demand of the Question:
Explain the strategic challenges of global trade decoupling from China and explore how India might benefit from this shift.
Directive:
It requires an examination of both aspects of the issue. You should outline the strategic challenges that arise from global trade decoupling from China and analyze how India can potentially benefit from this shift. Provide a balanced view of the impacts and opportunities.
Structure of the answer:
Introduction:
Briefly define trade decoupling and its relevance in the context of global economies.
Body:
First part: Explain how trade decoupling is spreading to other advance economies from US.
Second part: Strategic Challenges to Global Economy
Disruption of global supply chains.
Increased costs for businesses and consumers.
Potential for economic fragmentation and reduced global trade.
Geopolitical tensions and trade wars.
Impact on multinational companies and foreign direct investment.
Third part: Benefits to India
Opportunities to diversify trade partnerships and expand markets.
Potential for increased foreign investment as companies seek alternatives to China.
Strengthening of India’s manufacturing and export sectors.
Enhanced geopolitical positioning and strategic partnerships.
Conclusion:
Emphasize the need for India to leverage these opportunities for economic growth and strategic advantage.
Introduction:
Trade decoupling, as defined by the World Economic Forum, involves raising trade barriers, which can negatively impact the global economy if economic agents cannot adapt. In May, U.S. President Joe Biden announced new tariffs on Chinese imports, sparking fears of increased global economic decoupling.
Body:
Trade Decoupling from US to other advance economies:
- European Union: The EU is focusing on reducing dependency on Chinese technology in areas like 5G and semiconductors.
- Initiatives like the European Chips Act aim to boost local production.
- United Kingdom:
- Huawei Ban: The UK decided to phase out Huawei equipment from its 5G networks by 2027, citing security concerns and aligning with broader Western strategies.
- Australia: Australia has implemented measures to limit Chinese influence in critical sectors, including cybersecurity and critical infrastructure.
- It has also increased its defense and technology partnerships with other Western countries. Eg: AUKUS and Minerals Security Partnership (MSP)
Strategic challenges in active decoupling from China:
- Protectionism: Ongoing tariffs may lead to a cycle of retaliatory measures, increasing global protectionism.
- Eg: Trade war between China and USA
- Green Transition: Import restrictions on Chinese clean energy products could delay global renewable energy goals.
- Impact on Multinationals: Western firms reliant on China may face declining earnings due to China’s slowing growth.
- Eg: Tesla and Apple
- Resource-rich Countries: Nations like Australia and Brazil may face economic difficulties due to China’s economic slowdown and falling commodity prices.
- Supply Chain Risks: China may tighten control over critical raw materials, complicating global supply chains.
- Eg: On August 1, 2023, China began restricting exports of gallium and germanium, followed more recently, on December 1, with new export controls on high-grade graphite.
- Southeast Asia and India: Southeast Asia remains dependent on Chinese technology, while India faces uncertain benefits from decoupling due to regional competition.
Benefits for India:
- Increased Trade Opportunities:
- Diversified Markets: As Western economies seek alternatives to Chinese suppliers, India could benefit from increased trade opportunities and become a preferred partner for manufacturing and services. Eg: Apple’s manufacturing in India.
- Export Growth: India’s export potential could grow as companies look for reliable partners to meet their supply needs. Eg: India-Australia ECTA
- Self-Reliance: India can leverage this opportunity to strengthen its domestic manufacturing capabilities and reduce its own dependency on Chinese imports.
- Eg: Make in India, Make for the World.
- Strategic Partnerships:
- Alliances with Western Economies: India can form stronger strategic partnerships with Western countries. Eg: Minerals Security Partnership.
- Technology Transfer: Increased collaborations with advanced economies can lead to technology transfer and knowledge sharing, boosting India’s technological capabilities. Eg: iCET between India and USA.
- Regional Leadership: India could strengthen its role as a leader in the Indo-Pacific region, promoting regional stability and economic integration.
- Eg: BBIN, Forum for India-Pacific Islands Cooperation (FIPIC)
Conclusion:
There are many strategic challenges of active decoupling from China. However, India stands to benefit from increased trade opportunities, a boost to its manufacturing sector, enhanced strategic partnerships, and greater geopolitical leverage. Balancing these dynamics will be crucial for India to capitalize on the evolving global economic landscape.
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