PIB Summaries 15 November 2023

CONTENTS

1. 5th Edition of the India-US 2+2 Ministerial Dialogue 
2. India-Ethiopia Joint Trade Committee

5th Edition of the India-US 2+2 Ministerial Dialogue 

Context:

Recently, 5th Edition of the India-US 2+2 Ministerial Dialogue took place, where both countries highlighted progress in various areas of bilateral cooperation including defense, semiconductors, emerging technology, space, health etc. 

Relevance:

GS II: International Relations

Dimensions of the Article:

1. Understanding 2+2 Meetings: A Diplomatic Framework
2. Key Highlights of the India-US 2+2 Dialogue
3. India-U.S. Relations
4. Major Challenges in India-U.S. Relations

Understanding 2+2 Meetings: A Diplomatic Framework

Participation Dynamics:

• Involves two high-level representatives, namely Ministers responsible for Foreign Affairs and Defence, from each participating country.
• Aims to elevate the depth and breadth of dialogue between the nations.

Enhanced Communication and Understanding:

• Establishes a mechanism for better comprehension and appreciation of each other’s strategic concerns and sensitivities.
• Takes into consideration political factors on both sides to foster a more integrated and robust strategic relationship.

Adapting to Global Changes:

• Facilitates engagement in the context of a rapidly changing global environment.
• Offers a platform for addressing evolving geopolitical dynamics and challenges.

India’s 2+2 Partners:

• United States:
  • Holds the distinction of being India’s oldest and most significant 2+2 talks partner.
• Other Nations:
  • Engaged in 2+2 meetings with ministers from Australia, Japan, the United Kingdom, and Russia.
• Diverse Dialogues:
  • Covers a spectrum of strategic aspects, promoting a comprehensive understanding between nations.

Key Highlights of the India-US 2+2 Dialogue

Collaborative Defence Systems Development

• Both nations aim to co-develop and co-produce defense systems.
• Strengthening the partnership in defense technologies is a shared objective.

Defense Deals in Progress

• Ongoing negotiations for the purchase of MQ-9B unmanned aerial vehicles.
• Discussions about licensed manufacturing of General Electric’s F-414 jet engine in India.

Advancing India’s Defence Capabilities

• Deals align with India’s goal to enhance its defense capabilities.

Security of Supply Arrangement (SOSA)

• Ministers anticipate finalizing SOSA to integrate defense industrial ecosystems and enhance supply chain resilience.

Cooperation in Infantry Combat Vehicles

• Discussions on Stryker and infantry combat vehicles in defense industry cooperation roadmap.
• Formalizing cooperation contingent on finalizing Indian military needs and establishing a production plan.

Progress of INDUS-X

• Review of the progress made in the India-U.S. Defence Industrial Ecosystem, INDUS-X.
• Aimed at expanding strategic technology partnerships and defense industrial cooperation.

Commitment to Maritime Security

• India’s full membership in Combined Maritime Forces welcomed.
• Signifying India’s commitment to regional maritime security.

Indo-Pacific Maritime Security Focus

• Both nations emphasize the importance of safeguarding sea lanes and promoting stability.

India-US Initiative on Critical and Emerging Technology (iCET)

• Recognition of rapid progress under iCET for technology collaborations.
• Call for continued strategic partnerships in quantum, telecom, biotechnology, AI, and semiconductors.

Strategic Trade Dialogue Monitoring Mechanism

• Welcome for the early meeting of the Strategic Trade Dialogue Monitoring Mechanism.

Beyond China Challenges

• Emphasis on the bilateral relationship extending beyond addressing challenges posed by China.

India’s Stance on Israel-Hamas Conflict

• Advocacy for a two-state solution in the Israel-Hamas Conflict.
• Humanitarian assistance provided with adherence to international humanitarian law and condemnation of civilian casualties.

India-U.S. Relations

Shared Values and Commitments

• Foundation of the U.S.-India strategic partnership lies in shared values, including a commitment to democracy and the rules-based international system.
• Mutual interests in promoting global security, stability, and economic prosperity through trade, investment, and connectivity.

Economic Ties and Trade Growth

• In 2022-23, the U.S. emerged as India’s largest trading partner.
• Bilateral trade increased by 7.65% to USD 128.55 billion in 2022-23.
• Exports to the U.S. rose by 2.81%, reaching USD 78.31 billion, while imports grew by about 16% to USD 50.24 billion.

Multilateral Cooperation

• Close cooperation at various multilateral organizations, including the United Nations, G-20, ASEAN Regional Forum, IMF, World Bank, and WTO.
• Support for India’s two-year term at the UN Security Council and backing a reformed UN Security Council with India as a permanent member.

Quad Cooperation

• The Quad, comprising the U.S., India, Australia, and Japan, promotes a free and open Indo-Pacific and provides tangible benefits to the region.
• Participation in the Indo-Pacific Economic Framework for Prosperity (IPEF) with the United States.

Other Regional Collaborations

• India’s membership in the Indian Ocean Rim Association (IORA) with the U.S. as a dialogue partner.
• U.S. joining the International Solar Alliance headquartered in India in 2021 and collaboration with USAID in 2022.

Foundational Agreements

India has signed all four foundational agreements with the U.S.

• Logistics Exchange Memorandum of Agreement (LEMOA) in 2016.
• Communications Compatibility and Security Agreement (COMCASA) in 2018.
• Basic Exchange and Cooperation Agreement for Geo-Spatial cooperation (BECA) in 2020.

Major Challenges in India-U.S. Relations

Historical Differences in Foreign Policy Approach

• Nonalignment vs. Alliances: India’s historical nonalignment contrasts with the U.S.’ alliance-centric foreign policy since World War II.

Cold War Era Nonalignment Concerns

• Cold War Nonalignment: During the Cold War, India’s nonalignment policy raised concerns for the U.S.
• Lack of Military Support: Indian military vetoed dispatching troops to Afghanistan after the 9/11 attacks.
• Withheld Support for Iraq Invasion: India’s PM withheld military support during the U.S. invasion of Iraq in 2003.

Current Policy Divergences

• Russian-Ukraine War: India’s refusal to align with the U.S. on the Russian-Ukraine war.
• Import of Russian Oil: India’s significant import of cheap Russian oil, despite U.S. concerns.

Divergent Stances on Global Issues

• Oil Blockades: Criticism of the U.S. decision to block Iranian and Venezuelan oil.
• SCO Involvement: India’s active efforts to bring Iran into the Shanghai Cooperation Organization (SCO).
• Border Talks with China: India’s continued participation in talks with China to resolve border disputes.

U.S. Reports Questioning Indian Democratic Practices

• Democracy and Human Rights Concerns: Reports by U.S. organizations question democratic discourse, press freedom, religious freedom, and minority conditions in India.

Economic Protectionism and Trade Disputes

• Atmanirbhar Bharat Campaign: U.S. perception of India becoming a protectionist closed market economy.
• GSP Program Withdrawal: U.S. withdrawal of duty-free benefits affecting Indian exporters in sectors like pharma, textiles, agri products, and automotive parts.

Calls for Alignment with U.S. Interests

• Pro-U.S. Voices: Voices calling for India to align with the U.S. and “get on the right side of history.”

India-Ethiopia Joint Trade Committee

Context:

The 6th Session of the India-Ethiopia Joint Trade Committee (JTC) recently concluded in Addis Ababa, Ethiopia, bringing together officials from both countries to strengthen economic ties.

Relevance:

GS II: International Relations

Dimensions of the Article:

1. India-Ethiopia Joint Technical Committee (JTC) Meeting Highlights
2. India-Ethiopia Trade Relations

India-Ethiopia Joint Technical Committee (JTC) Meeting Highlights

Bilateral Collaboration on Payment Infrastructure

• Unified Payment Interface (UPI): India invited Ethiopia to collaborate on integrating UPI with Ethiopia’s Ethswitch.
• Ethswitch Platform: Ethswitch serves as a payment platform infrastructure in Ethiopia.

Local Currency Trade Transactions

• Currency Conservation: India urged Ethiopia to explore settling trade transactions in the local currency for mutual benefit.
• Enhanced Bilateral Trade: Aim to enhance bilateral trade and conserve foreign exchange reserves.

Key Sectors for Mutual Investments

• Diverse Investment Areas: Health and pharmaceuticals, automobiles, textiles, infrastructure projects, food, and agro-processing identified as key sectors for mutual investments.
• Diversification of Collaboration: Reflects a broad spectrum of collaborative opportunities.

Progress in Memorandum of Understanding (MoUs)

• Standardization and Quality Assurance: Ongoing discussions for MoUs in the field of standardization and quality assurance.
• Customs Procedure: Ongoing discussions for MoUs in the field of customs procedure.
• Commitment to Conclude Expeditiously: Both sides agreed to conclude these MoUs expeditiously.

India-Ethiopia Trade Relations

Concessional Credit and Investment

• Concessional Credit: India is a major source of long-term concessional credit to Ethiopia, exceeding USD 1 billion. The credit supports sectors like rural electrification, sugar industry, and railways.
• Foreign Investment: Indian companies rank among the top three foreign investors in Ethiopia, with existing investments totaling USD 5 billion.

Bilateral Trade Figures

• Bilateral Trade Volume: Bilateral trade between India and Ethiopia reached USD 642.59 million in the fiscal year 2022-23.
• Indian Export Dominance: India holds the position of the second-largest exporter to Ethiopia.

Economic Growth and Cooperation

• Ethiopian Economic Growth: Ethiopia’s economy experienced an estimated 6.4% growth in the fiscal year 2021-22.
• Key Sectors of Cooperation: Trade relations encompass sectors such as rural electrification, sugar industry, railways, and other areas of mutual interest.

Foreign Direct Investment (FDI)

• Indian FDI Presence: Indian companies’ substantial FDI presence in Ethiopia underscores the depth of economic engagement.

High-Level Diplomatic Exchanges

• Diplomatic Visits: India and Ethiopia have witnessed several high-level visits, including those by presidents, prime ministers, and ministers.
• Bilateral Engagement: The visits indicate a commitment to strengthen bilateral ties and explore new avenues for cooperation.