Chapter 9. International Relations Notes for UPSC Mains

Western Europe

The Great Britain

Impact on India
- Con
  - Entry point to Europe – Could be affected
    - Indian companies in UK greater than Europe put together
    - Pharma is one of the companies more severely affected
  - Could lead to a wave of more protectionism from UK and maybe other countries which hurts Indian interests
  - Pound Devaluation
    - Indian trade balance could suffer
  - Hurts economic prospects in the world – which could impact India as well
- Pro
  - SBI report – Brexit will help India as Britain will come closer to her former colonies
    - More trade – FTA
  - Devaluated Pound – may help Indian tourists or students
- Overall
  - Less than significant impact on India as Britain is no longer the dominant force it once used to be
Brexit
- Other impacts
  - US- Loss- Closest ally out – can weaken NATO
  - Russia – Benefit- Can come closer to Europe in absence of British opposition
  - Germany – strengthened as the Europe’s top economy
  - France- biggest Eurosceptic now (as is Netherlands) – Franco- German tensions over leadership could rise
- World in general looses out
- Article 50 of the EU agreement – deals with exits
  - 2 years negotiation
  - Britain can pursue Norwegian model which is out of EU but still has access to EU market
India – UK
- Capital – India to raise 1 billion pounds of Masala Bond in Britain
- Renewable Energy – India, UK have set up joint funds to invest in renewable energy in each other countries
- Infra –
  - Bangalore – Mumbai industrial corridir
  - Smart City
- Political
  - G20, NSG
  - Support in UNSC
  - Seeked support over Chagos Archipalego – conflict with Mauritius
  - Shashi Tharoor
    - Kohinoor
    - Apology
- Education
  - THE – Oxbridge best 2 colleges
- Skill India
- Issues in Immigration
  - Minimum salary raised to 30k Pounds
  - Penalties to landlord providing rent to illegal immigrants
  - Positive – Frequent Business Visitors Travellers Scheme
    - Just Like Permanent Residdency Status scheme started by India

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France

Defence
- 126 fighter planes ( MMRCA – Medium Multi Role Combat Aircraft ) from Dassault
  - Plan changed
  - Now, 36 planes (2 squadrons) to be bought in fly ready condition directly from France
  - Earlier provision was of 18, and the rest to be manufactured in India
  - Original deal worth 20 billion $, now 10 billion $
  - Benefit
    - Saves money, time like on technology and skill up gradation at HAL
    - Battle ready in current times of terrorism , tension with neighbors
  - Current status of Indian Air Force
    - See Security
- Joint production of SAM missiles
  - Elaboration required
- 6 Scorpene submarines
  - 20k crore
  - First sub delivery- 2016
  - Current status required
- Mirage 2000 planes
- Distant plans to buy Nuclear Barracuda class submarines
Political
- France unequivocal support to UNSC permanent seat for India

Nuclear
- French company Areva interests in Jaitapur
  - 6 European pressursed reactors
  - Each at 5 billion $
Technology
- Space
  - India still launches GSAT satellite from French Guiana
    - Because GSLV still in testing stage in India
    - GSATs are heavy satellites
  - Joint Thermal Infrared Earth Observation Mission proposed
  - SARAL satellite
    - Oceanographic study 0
- Smart city
  - Will take up Chandigarh and 2 others
  - Will be upgrading Delhi Chandigarh railway line to 200 km/hr
India’s reciprocal treatment
- India supported Mali air strikes in Mali
  - India & France support the ideology of sovereignty in security
Economy
- Trade low – only at 8 billion $
- Issue of India EU FTA lingering
- Elaboration required
Challenges
- Economy
  - Trade low
  - Confusion over Indo EU FTA
- Divergence in developed, developing over Climate, trade talks
- Elaboration required
France support in past
- India using Dassault fighter planes ever since 1960s
- France thwarted UN sanctions against India following Nuclear tests of 1998
- In 1999 Kargil War, France supplied Air Force with spare parts
- India used to launch satellite from French Guiana even during the sanction days post test
Elaboration required

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Germany

PM Visit
Lot of synnergy and see eye to eye
Cooperation areas
- Trade and Investment
  - 4th largest economy and largest European economy and
  - Largest Tradin gpartner inside EU
  - Post Brexit – Need to reroute Indian investments
- Political –
  - G4
  - Merkel talked about need to look beyond Traditional Allies ( USA )
    - Inconsistency of Trump
  - NSG , G20
  - China – Germany also not part of OBOR
    - Possible part of Asia Africa growth crorridor
  - De Facto Leader of Europe
- Defence
  - One of the largest defence manufacturers
    - Although, German companies missing out of recent Defence deals may have been felt
- Terrorism
- Science
  - Solar and renewable Energy
  - ARIES with Belgium
Cons
- FTA
  - Dairy, Automobile, TRIPS+,
  - More issue after India unilaterally looking to amend BITs
- Developed vs Developing
- Make in India may work against German competitiveness
- Our trade and Investment dwarfed by China and trade with Europe and US