Chapter 13. International Relations Notes for UPSC Mains

Act East

  • Also called Act East by Modi
  • Look east coined by Narasimha Rao
  • 10 Asean republic day
    • Look east now really act east
    • Shows Asean unstated unease with China and Indian alternative

ASEAN

  • Has 10 members
  • Economic
    • FTA signed in 2009
    • But Indian exports meager
      • Less than half the imports from Malaysia
    • FTA extended to investments and services
      • Economic Survey 2015-16
        • 50% increase in trade
        • Tilted BoP negative though ( Imports rise 70%. Export 30%)
        • Sector wise- Apparel sector export boost
    • India ASEAN trade stands at 100 billion $, one of the highest
    • RCEP
      • – Regional Comprehensive Economic Partnership Agreement
      • Deal between ASEAN & the 6 countries it has FTA with
      • i.e India, China, Japan, S Korea Australia, New Zealand
      • Hoped will be finalised this year
      • Will be a mega trade pact
      • Elaboration required
    • Elaboration required
  • Political
    • India ASEAN summits
    • East Asia summit to which India is a part
  • Strategic
    • ASEAN strategic partner of India
    • Vietnam, uncomfort with China
    • Terrorism – bombing in Bali in 2003
  • Other
    • Oil, natural gas in Vietnam
    • NE connectivity
    • SARS, H1N1 recently gripped the region. Hence, cooperation important
    • Growing connectivity over Terrorism , Cyber, Piracy in Malacca, trafficking

CMLV

  • Cambodia, Myanmar, Laos and Vietnam
  • Indian gov’t looking to form a SPV ( Special purpose vehicle) to invest in the region
  • Reason
    • General expansion to new market
    • TPP – trans pacific partnership
      • Investment in CMLV would allow India to access the free trade area , and would give cheaper route to major markets like US
  • Also, CMLV is rival
    • It has similar comparative advantage like cheap labour
    • In 2014, Nokia moved out from Chennai to Vietnam
  • India to set up a 500 crore investment fund for investment in CMLV
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SINGAPORE

  • History
    • Since Cholas
    • Colonial connection
    • Large Indian settlement
  • Political
    • Strategic Partnership Agreement recently inked
      • WTF is it ?
        • Focusses mainly on defence, but also considers other avenues like trade, investment, cyber, health, education
        • Has no of strategic partners inculding US, UK, China, Russia, Iran, Japan, etc
        • National Security Research in New Delhi published India’s Strategic Partners: A Comparative Assessment and ranked India’s top strategic partners with a score out of 90 points : Russia comes out on top with 62, followed by the United States (58), France (51), UK (41), Germany (37), and Japan (34)
  • Economic
    • 2 way FDI
      • 2nd largest source of FDI
      • Indian FDI in Singapore stands at 40 billion $, 1 of the top destinations
    • Trade at 10 billion $
    • Currently CECA (Comprehensive Economic Cooperation Agreement
    • To be replaced by RCEP
  • Investment
    • 3 billion dollars power plant in Andhra
    • Terminal at JNPT making it largest terminal in India
    • Development of Amravati Smart City
  • Cultural
    • Ethnic Indians make 10%
    • See history section

Malaysia

  • Muslim majority– Generally favours Pak
  • Many Chinese businessmen- pro China
  • Yet more than 2 million citizens of Indian origin
    • Descendants of workers taken by British to work in plantations
    • Are economically weakest in the country

VIETNAM

  • Defence
    • India to build satellite tracking center
      • Will also receive images from Indian observatory satellites
      • India too can use the tracking centre to monitor satellite launches
      • Both will be able to monitor Chinese space activities
    • To provide Patrol Ships
      • Also to Philippines and Mauritius
    • 500 million$ concessional credit.
    • Vietnam interested in Brahmos
  • South China sea confusion and Freedom of Navigation
  • Oil
    • 3rd largest crude oil reserve of Asia
    • ONGC exploration earlier
  • Buddhism rising – Tourism
  • Civil Nuclear Agreement signed
  • 1 billion $ of investment – TATA
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Thailand

  • 2nd largest economy in ASEAN
  • Maritime neighbour of India
  • Historical
    • Hinduism – Ramayana famous
    • Buddhism – Theravada
  • Political – BIMSTEC, MGC, ASEAN FTA
  • Economic
    • Trade of 10 billion dollars
    • Trilateral Highway
      • India, Myanmar, Thailand
      • 3k km highway
  • Strategic
    • Participation in Cobra gold military exercise and operation Maitri of India ( against Bodo militants )
  • Extradition treaty signed

Philippines

  • Terrorism
    • ISiS took over a town
    • India thus pledges a support of 0.5 million $
  • PCA – China
  • Drugs – New President
  • Cultural an dcolonial linkage

Brunei

  • Mainly Energy Diplomacy
  • Muara – One of the most important ports for India for trade with the region
  • Deal for uninterrupted energy lanes and maritime security cooperation
  • Brunei is 4th largest producer of LNG in the world
  • Strategically important location in South China sea.
  • Half of worlds cargo pass through the region