15-February-2025-Daily-Current-Affairs

DEALING WITH CHINA’S WEAPONIZATION OF E-SUPPLY CHAINS

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

China has imposed restrictions on the movement of its engineers and the export of specialized equipment to India, disrupting India’s manufacturing sector. This move highlights China’s control over supply chains and its economic strategies to maintain dominance.

Impact of China’s Restrictions on India’s Manufacturing

Disruptions in Indian Factories

• China has halted exports of critical manufacturing equipment to India.
• Skilled Chinese engineers working in India were recalled, delaying production.
• Taiwanese workers were brought in, but they lack access to essential tools and machinery.

China’s Strategy of Economic Pressure

• China aims to slow India’s manufacturing growth by restricting technical knowledge transfer.
• The move affects India’s goal of becoming a global electronics hub.
• By controlling specialized machinery exports, China ensures dependency on its supply chains.
• Global firms relying on China face production uncertainties.

India’s Role in the China Plus One Strategy

Diversification of Supply Chains

• Many multinational companies are looking to reduce dependence on China by shifting production to India, Vietnam, and Mexico.
• India is emerging as a key alternative due to its skilled workforce and policy support.

China’s Efforts to Retain Its Position

• China views India’s growing manufacturing sector as competition.
• By disrupting India’s supply chains, China reminds global businesses of its dominance.

India’s Efforts to Boost Manufacturing

• The Indian government is attracting investments in the electronics sector, particularly smartphone manufacturing.
• Several high-end smartphone models were assembled in India for the first time in 2024.
• The smartphone manufacturing industry was valued at $14 billion by March 2024.

• The Production-Linked Incentive (PLI) scheme was increased from ₹6,125 crore ($0.70 billion) to ₹8,885 crore ($1.02 billion) in the Union Budget 2025.
• Import duties on printed circuit boards, camera modules, connectors, and lithium-ion battery equipment were removed.

India-China Relations and Economic Challenges

Diplomatic Engagements

• In October 2024, India and China agreed on military patrolling rules to ease tensions in Ladakh.
• Despite these agreements, China continues to use economic tactics against India.

India’s Continued Dependence on China

• India still relies on China for raw materials and advanced machinery.
• Trade imbalances affect India’s ability to negotiate effectively.

Strategies for India to Reduce Dependence on China

• India should work with global companies to secure alternative suppliers.
• Negotiating trade agreements with other countries can ensure a stable supply of raw materials.

• India must focus on producing high-tech components domestically. Investments in semiconductor and chip-making industries are crucial.
• Policies should attract domestic companies to manufacture electronic components. Supporting contract manufacturers can help both Indian and foreign brands.
• Industry-specific training should be introduced in educational institutions. On-site training programs should be expanded to bridge the skill gap.

Conclusion

China’s trade restrictions highlight the risks of over-reliance on a single country for critical components. India must take decisive steps to strengthen its supply chains, reduce dependency on China, and establish itself as a global manufacturing powerhouse.

MAINS PRACTICE QUESTION

Analyze the impact of China’s trade restrictions on India’s electronics manufacturing sector. Suggest measures India can take to reduce its dependence on Chinese supply chains. (250 Words / 15 Marks)

INDIA-US DIPLOMATIC ENGAGEMENT: KEY OUTCOMES AND STRATEGIC PRIORITIES

TOPIC: (GS2) INTERNATIONAL RELATIONS: INDIAN EXPRESS

The recent meeting between Indian Prime Minister Narendra Modi and former U.S. President Donald Trump was a significant diplomatic event. It successfully addressed potential areas of conflict while securing agreements in defense, trade, energy, and technology.

Major Takeaways for India

• Joint statements highlight the crucial outcomes of such meetings.
• Six key focus areas emerged: defense, trade and investment, energy, technology, multilateral cooperation, and people-to-people ties.
• The top priorities were defense, trade, and energy, which align with India’s long-term strategic goals.
• The mention of multilateral cooperation at the end of the statement suggests the U.S. prefers direct bilateral dealings over broader regional partnerships.

Handling Sensitive Issues: Trade, Immigration, and Security

• Trade: The U.S. did not directly criticize India’s tariffs but instead agreed to work on a broader trade agreement by late 2025 to reduce India’s trade surplus.
• Immigration: Both nations pledged to tackle illegal migration while ensuring smooth student and work visa processes.
• Security: The two leaders addressed security concerns diplomatically.
  • India raised concerns about separatist activities.
  • The U.S. focused on the Gurpatwant Singh Pannun case while emphasizing national security.
  • Both nations agreed to collaborate on protecting diplomatic and public safety.

Key Agreements and Collaborations

Strengthening Defense Ties

• A 10-year defense pact will be finalized in 2024.
• India will procure Javelin anti-tank missiles, Stryker combat vehicles, and P-81 maritime patrol aircraft from the U.S.
• Plans to co-produce AI-powered underwater drones were announced.
• Trump hinted at a possible future sale of F-35 fighter jets to India.

Expanding Energy Trade

• India committed to increase oil and gas imports from the U.S. from $15 billion to $25 billion.
• A framework to facilitate U.S. involvement in India’s nuclear energy sector was proposed.

Strategic Minerals Initiative

• A program to recover crucial minerals from industrial waste was launched.
• This aims to reduce dependency on China in critical supply chains, which is essential for India’s defense and economic security.

Diplomatic and Strategic Success

• Modi’s visit had both symbolic and practical importance in strengthening bilateral ties.
• His interactions with key figures like Elon Musk, Tulsi Gabbard, and Vivek Ramaswamy further reinforced India’s global stature.
• While trade disagreements remain, the agreements on defense, energy, and technology lay the foundation for deeper cooperation.
• The meeting successfully balanced economic concerns with strategic partnerships.

MAINS PRACTICE QUESTION

Discuss the key outcomes of the meeting between Indian Prime Minister Narendra Modi and former U.S. President Donald Trump. Analyze how the agreements on defense, trade, energy, and technology reflect the strategic priorities of both nations. (150 Words / 10 marks)

TRUMP’S RECIPROCAL TARIFFS: A DISRUPTIVE SHIFT IN GLOBAL TRADE

The US, under Donald Trump, has proposed reciprocal tariffs, meaning it will impose the same import duties on foreign goods as those applied to American products. This policy could challenge existing trade norms and affect global trade flows, especially for developing nations.

Understanding Reciprocal Tariffs

• Reciprocal tariffs mean that the US will match the import duties imposed by other countries on American goods.
• This move challenges the WTO framework, which allows developing nations to maintain higher tariffs to protect domestic industries.
• If enforced, it could alter global trade relations and disrupt existing trade agreements.

Impact on Free Trade and WTO Principles

• Since World War II, global trade has favored liberalization, encouraging free trade to benefit all economies.
• The WTO allows developing countries to impose protective tariffs to support their industries.
• Trump’s proposal ignores these trade exemptions, disrupting the balance of international trade.

Challenges in Implementation

• Determining reciprocal tariffs is complicated as it involves calculating subsidies, tax benefits, and other government incentives for domestic industries.
• If the US includes these factors, countries like India, which provide subsidies to industries, may face steep tariff hikes.
• This could negatively impact their exports to the US, affecting economic stability.

Reasons Behind Trump’s Policy

• Trump believes that trade deficits harm the US economy and give unfair advantages to other nations.
• The US has a large trade deficit, especially with China, which Trump sees as an economic threat.
• By imposing reciprocal tariffs, he aims to reduce the deficit by either increasing US exports or pushing foreign companies to set up manufacturing units in the US.

Are Trade Deficits Always Bad?

• A trade deficit means a country imports more than it exports, but this is not always harmful.
• It can indicate strong domestic demand and economic prosperity.
• For instance, India has a trade surplus with the US but a deficit with China, showing trade imbalances exist in different directions.
• Instead of restrictive tariffs, boosting domestic productivity is a better strategy for economic growth.

Impact on India

• India has been mentioned in Trump’s tariff policy, meaning it could be directly affected.
• If reciprocal tariffs are enforced, India may have to increase imports of US products like defense equipment and energy to balance trade.
• This could lower the cost of American goods in India but might also weaken the rupee due to higher dollar demand.
• The Atmanirbhar Bharat (Self-Reliant India) initiative may suffer if India relies more on US imports, slowing domestic manufacturing growth.
• While Indian consumers may benefit from cheaper US goods, the long-term effects on self-reliance need careful assessment.

Geopolitical Implications

• The US’s tough stance on trade is not just limited to China or India but also affects allies like Canada and the EU.
• Trump’s rejection of trade agreements suggests India should not expect stable trade relations with the US.
• India must be cautious about over-dependence on the US economy, as sudden policy shifts could create economic risks.

Conclusion

Trump’s reciprocal tariff policy marks a shift in global trade, moving from cooperative trade practices to unilateral actions.

PRACTICE QUESTION

Explain the concept of reciprocal tariffs and discuss their potential impact on global trade, particularly for developing nations like India. How should India respond to such policies? (150 Words / 10 Marks)

INDIA’S MARITIME STRATEGY AND THE INDIAN OCEAN CONFERENCE

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

India is hosting the Eighth Indian Ocean Conference (IOC) in Muscat, along with Singapore and Oman. The event brings together leaders from 30 countries to discuss the geopolitical and economic significance of the Indian Ocean.

Understanding the Indian Ocean Conference (IOC)

• IOC is an annual global platform to discuss security, trade, and regional cooperation in the Indian Ocean.
• It includes policymakers, academics, and business leaders focusing on economic and strategic issues.
• The first IOC was held in Singapore in 2016, with the seventh in Perth, Australia (2024).
• It is organized by the India Foundation in collaboration with regional partners.

Historical Importance of the Indian Ocean

• Unlike the Atlantic and Pacific, the Indian Ocean is named after India due to its long-standing influence.
• It connects 26 nations and acts as a crucial trade and cultural link, including for landlocked countries like Nepal and Bhutan.
• While the Indo-Pacific is a recent strategic concept, the Indian Ocean has been a historical center for trade and connectivity.

India’s Past Maritime Dominance and Decline

• India was a leading maritime power in the first millennium, with trade links to Arabia and Southeast Asia.
• Ancient rulers like the Cholas and Pallavas strengthened naval capabilities.
• However, European colonization (Portuguese, Dutch, French, British) led to India’s maritime decline.
• British rule neglected India’s naval potential, causing a lag in shipbuilding.
• Today, India holds only 0.06% of the global shipbuilding market.

Revival of India’s Maritime Strategy

• Diplomat K.M. Panikkar in 1945 emphasized India’s need for strong naval power.
• Despite this, India remained focused on land-based defense.
• Recent years have seen a shift, recognizing the ocean’s role in economic and security matters.
• The Indian Ocean handles 70% of global container traffic and 90% of India’s energy trade, making it a critical economic zone.

Geopolitical Rivalries in the Indian Ocean

• The U.S., U.K., and France have military bases in the region, such as Diego Garcia.
• China has expanded its presence through port investments and undersea infrastructure.
• India launched the SAGAR (Security and Growth for All in the Region) initiative in 2015 to establish leadership in the Indian Ocean.

Key Challenges in the Indian Ocean

• Piracy, terrorism, and illicit activities like arms smuggling.
• Overfishing and illegal maritime activities.
• Climate change threats such as rising sea levels and extreme weather.
• Digital infrastructure competition, with undersea cables becoming strategic assets.

Strengthening India’s Position in the Region

• Alfred T. Mahan stated that dominance in the Indian Ocean translates to global influence.
• The IOC in Muscat serves as a platform to strengthen regional cooperation.
• By focusing on security, diplomacy, and economic growth, India and its partners can maintain control over the Indian Ocean’s future.

Why the Indian Ocean Region (IOR) Matters

Geopolitical Importance

• Serves as a crucial transit route for global trade, including energy supplies.
• Home to vital chokepoints like the Strait of Malacca and Bab-el-Mandeb.

Economic Importance

• Hosts fast-growing economies, including India and Southeast Asia.
• Rich in natural resources like oil, gas, and fisheries.
• Contributes to 64% of the global population and 60% of global GDP.

Security Importance

• Faces threats from piracy, terrorism, and military conflicts.
• Major powers like the U.S., India, and China are increasing their military presence.

Environmental Importance

• Supports marine ecosystems, including coral reefs and mangroves.
• Vulnerable to climate change effects like sea-level rise and natural disasters.

PRELIMS PRACTICE QUESTION

Which of the following international groups is India a part of?

1. Asia-Pacific Economic Cooperation (APEC)
2. Association of Southeast Asian Nations (ASEAN)
3. East Asia Summit (EAS)

Choose the correct option:
(a) 1 and 2 only
(b) 3 only
(c) 1, 2, and 3
(d) None of the above

Answer: (b)

VICE-PRESIDENT QUESTIONS CHIEF JUSTICE’S ROLE IN EXECUTIVE APPOINTMENTS

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Vice President of India, Jagdeep Dhankhar, has raised concerns about the Chief Justice’s involvement in appointing the CBI Director. He stressed the need to reassess the balance of power between the judiciary and the executive.

Chief Justice’s Role in CBI Director’s Appointment

• The Chief Justice of India (CJI) is part of a committee that selects the CBI Director. This practice was introduced to ensure fairness and transparency in appointments.

Arguments Supporting the Chief Justice’s Role

• Judicial Oversight: The Chief Justice’s participation helps prevent politically motivated appointments.
• Checks and Balances: Involvement of the judiciary maintains equilibrium between different branches of governance.
• Independence of Investigations: Judicial presence reduces the risk of government interference in CBI operations.
• Legal Precedent: The judiciary introduced this practice to ensure impartiality in key appointments.
• Democratic Protection: A system where multiple institutions participate in appointments prevents excessive concentration of power.

Arguments Against the Chief Justice’s Role

• Separation of Powers: The judiciary’s role in executive decisions contradicts the doctrine of separation of powers.
• Judicial Overreach: Direct involvement in administrative decisions can blur the distinction between judiciary and executive.
• Lack of Accountability: The executive is answerable to the public, whereas judicial participation in appointments reduces direct accountability.
• Delays in Decision-Making: The process of judicial review may slow down the appointment of important officials.
• Different International Practices: In many countries, investigative agency heads are appointed solely by the executive or legislature.

Conclusion

The debate over the Chief Justice’s role in executive appointments highlights the need to reassess institutional responsibilities. A balanced approach should be adopted to ensure fairness while maintaining the principle of separation of powers.

GUARDIANS OF ‘GREEN GOLD’

TOPIC: (GS3) ENVIRONMENT: THE HINDU

Konda Veduru is a unique bamboo species found in the Godavari Valley of Andhra Pradesh. It plays a crucial role in the lives of the Konda Reddi and Koya tribes, providing food, income, and commercial benefits.

Why is it Called Green Gold?

• Konda Veduru is known as “green gold” because of its rapid growth and high economic value.
• It is widely used in construction, handicrafts, and paper industries.
• Its eco-friendly and sustainable qualities add to its significance.

Habitat and Distribution

• Grows in forested regions and hill plains, primarily in the Godavari Valley.
• Andhra Pradesh has around 2.25 lakh hectares of bamboo forests, covering 53% of India’s total bamboo area.

Culinary Importance

• Konda Reddi tribes use bamboo shoots as a major food source.
• A traditional dish called Kommu Koora is prepared using bamboo shoots, grains, and meat.
• Boiling is necessary before consumption to remove harmful toxins.

Economic and Cultural Value

• Used in tobacco drying and sold in local tribal markets.
• Acts as a key livelihood source for Particularly Vulnerable Tribal Groups (PVTGs).

Conclusion

Konda Veduru is an essential resource for Andhra Pradesh’s tribal communities. Its economic, ecological, and cultural benefits make it a valuable asset that needs conservation and sustainable management.

US-INDIA COMPACT INITIATIVE: STRENGTHENING STRATEGIC TIES

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The US and India have launched the COMPACT (Catalysing Opportunities for Military Partnership, Accelerated Commerce & Technology) initiative to enhance cooperation in defense, trade, and technology. This initiative focuses on military sales, co-production, and countering regional security threats.

Deepening Strategic Partnership

• The COMPACT initiative strengthens bilateral ties between the US and India across multiple sectors.
• It signifies growing mutual trust and aims to bring transformative advancements, particularly in defense and high-tech industries.

Defense Cooperation and Regional Security

• This agreement highlights India’s increasing military collaboration with the US, particularly to counter China’s influence in the Indo-Pacific.
• It includes military equipment sales, technology sharing, and joint development of defense systems.
• Key discussions involve advanced defense technologies like F-35 stealth fighter jets and autonomous military systems.

Long-Term Defense Collaboration

• A new 10-year defense cooperation framework has been introduced to improve military coordination, logistics, and joint production.
• India has already integrated several US-made defense platforms, including:
  • C-130J Super Hercules (transport aircraft)
  • P-8I Poseidon (maritime surveillance)
  • AH-64E Apache (attack helicopters)
  • MQ-9B drones (unmanned aerial surveillance)
• Plans are underway to co-produce Javelin Anti-Tank Missiles and Stryker Infantry Combat Vehicles in India, boosting domestic manufacturing.

Advancements in Technology and Procurement

• India’s designation as a Major Defense Partner and inclusion in the Strategic Trade Authorization-1 (STA-1) list enhance its access to cutting-edge US military technology.
• Both nations aim to simplify arms trade by reviewing arms transfer rules (International Traffic in Arms Regulations – ITAR) and negotiating a Reciprocal Defense Procurement (RDP) Agreement to align defense procurement processes.

Expanding Defense Technology Collaboration

• As a key member of the Quad alliance, India and the US will boost cooperation in air defense, space, missile technology, and underwater warfare.
• The US is considering policy changes to provide India with fifth-generation fighter jets and advanced maritime defense systems, strengthening India’s deterrence capabilities.

Conclusion

The US-India COMPACT initiative marks a major milestone in their defense and technological partnership. By increasing collaboration in military production, procurement, and technology sharing, this initiative enhances India’s defense capabilities while reinforcing regional security and stability.

CONSERVING INDIA’S ARCHAEOLOGICAL HERITAGE

TOPIC: (GS1) HISTORY: THE HINDU

India’s rich cultural heritage is under threat due to climate change, urbanization, and pollution. The Archaeological Survey of India (ASI) is taking active measures to safeguard and preserve historical sites for future generations.

India’s Vast Cultural Legacy

• India is home to diverse archaeological and cultural sites, including temples, forts, palaces, and religious monuments.
• These structures represent the country’s historical and architectural heritage, attracting global recognition.

Challenges Posed by Climate Change

• Climate change is accelerating the deterioration of monuments through extreme weather events.
• Rising sea levels, heatwaves, floods, and strong winds contribute to the decay of both movable and immovable heritage.
• Natural disasters and pollution also play a significant role in damaging these historical sites.
• Timely conservation efforts are essential to protect India’s cultural identity.

Role of the Archaeological Survey of India (ASI)

• ASI, founded in 1861, is responsible for preserving and maintaining historical monuments.
• It manages 3,698 nationally significant heritage sites across India.
• Protection is ensured under laws like the Ancient Monuments Preservation Act (1904) and Ancient Monuments and Archaeological Sites and Remains Act (1958).
• ASI oversees various heritage sites, including temples, mosques, churches, forts, tombs, and prehistoric caves.
• Conservation programs are conducted annually to ensure the structural stability of monuments.
• ASI has 37 Circle offices and 1 Mini Circle that coordinate preservation efforts.

Increased Funding for Heritage Conservation

• The Government has significantly raised funds for monument preservation.
• In 2020-21, ₹260.90 crores were allocated, rising to ₹443.53 crores in 2023-24, marking a 70% increase.
• Strict regulations have been implemented to prevent commercial encroachments around heritage sites.
• The National Conservation Policy (2014) provides guidelines for safeguarding historical structures.

Climate Resilience and Protection Measures

• ASI monitors historical sites to assess damage caused by climate change.
• Advanced scientific methods and preservation techniques are used to prevent degradation.
• Automated Weather Stations (AWS), in collaboration with ISRO, track environmental conditions affecting monuments.
• Air pollution monitoring is conducted at major heritage sites to mitigate damage from pollutants.
• ASI works alongside other government bodies to strengthen conservation strategies.
• The National Disaster Management Authority (NDMA) and ASI have developed disaster risk management plans for heritage protection.

Conclusion

Protecting India’s archaeological heritage requires continuous efforts and collaboration between multiple agencies. By implementing conservation policies, legal measures, and climate-adaptive solutions, ASI and the Government aim to safeguard these historical sites for future generations.