21th may 2025 Current Affairs
India and the European Union (EU) Syllabus:IR Context India and the European Union (EU) have resumed negotiations for a Free Trade Agreement (FTA), aiming to finalize a comprehensive deal in two phases. Talks, which had been stalled since 2013 due to market access issues, resumed in June 2022. Both sides have now agreed to conclude the agreement using India’s phased negotiation approach, similar to the one adopted in FTAs with Australia. The goal is to seal the deal by the end of 2025, as agreed upon by Prime Minister Narendra Modi and the European Commission President. Key Areas of Focus Market Access: EU seeks tariff reductions in sectors such as automobiles, medical devices, wines, spirits, meat, and poultry. Services & Investment: Discussions include liberalization of services, investment protection, and clearer dispute resolution frameworks. Regulatory Issues: Strengthening of Intellectual Property Rights (IPR), and agreements on: Sanitary & phytosanitary measures Technical barriers to trade Customs procedures Government procurement Sustainability and green transition Expected Benefits Boost to Indian exports, especially garments, pharmaceuticals, steel, petroleum, and electrical machinery. Stronger investor confidence and bilateral cooperation. Promotion of innovation and sustainable development. India-EU Bilateral Relations Political Ties Formal relations date back to the early 1960s. A Cooperation Agreement was signed in 1994, deepening ties beyond trade. The first India-EU Summit in 2000 was a milestone. In 2004, the partnership was upgraded to a Strategic Partnership at the 5th Summit in The Hague. Economic Ties The EU is India’s largest trading partner for goods. In 2023–24, bilateral trade in goods stood at USD 137.41 billion. 17% of India’s exports go to the EU; 9% of EU exports come to India. Other Areas of Cooperation India-EU Water Partnership (IEWP): Launched in 2016 for cooperation on water management technologies and policies. Nuclear Energy R&D: Agreement signed in 2020 for peaceful research collaboration. Trade and Technology Council (TTC): Established in 2023 to foster cooperation on trade, technology, and security. About the European Union (EU):A political and economic union of 27 countries. Origins: Started as the European Coal and Steel Community (1950) with six members. Became the European Economic Community (1957) under the Treaty of Rome. Officially formed as the European Union in 1993 under the Maastricht Treaty. Purpose: To promote economic and political integration, democratic values, and human rights. Currency: 20 EU nations use the euro as their official currency. Global Role: One of the world’s most influential trade and political blocs. With reference to the India-EU Free Trade Agreement negotiations, consider the following statements: The negotiations were resumed in 2022 after being suspended due to disagreements over intellectual property rights. The phased approach adopted in the FTA negotiations with the EU has also been used by India in other FTAs. The EU has no existing FTAs with any Asian country. Which of the statements given above is/are correct?A. 2 onlyB. 1 and 2 onlyC. 3 onlyD. 1, 2 and 3 Answer: A Explanation: Statement 1 is incorrect – The negotiations were suspended in 2013 primarily due to disagreements over market access, not intellectual property rights. Statement 2 is correct – India has adopted a phased approach in FTA negotiations with countries like Australia. Statement 3 is incorrect – The EU has existing FTAs with several Asian countries including South Korea, Japan, and Vietnam. India’s Relationship with Türkiye and Azerbaijan Syllabus:IR Context: India’s diplomatic and trade relations with Türkiye and Azerbaijan are under pressure following their vocal support for Pakistan and condemnation of India’s recent counter-terror operations. Recent Developments: On May 7, India launched Operation Sindoor targeting nine terror camps in Pakistan and Pakistan-occupied Kashmir in response to the April 22 terror attack in Pahalgam, Kashmir. During this operation, Pakistan employed Turkish-origin drones in failed attacks on Indian military installations. Subsequently, India and Pakistan agreed to cease all military actions across land, air, and sea. Türkiye and Azerbaijan’s statements backing Islamabad triggered a backlash within India, leading to diplomatic and public responses. India’s Trade Relations with Türkiye Formal ties: Bilateral trade pact signed in 1973; a Joint Commission for Economic and Technical Cooperation was formed in 1983. Exports (Apr–Feb 2024-25): USD 5.2 billion (1.5% of India’s total exports) Imports: USD 2.84 billion (0.5% of India’s total imports) Major exports to Türkiye: Mineral fuels, electrical machinery, auto components, organic chemicals, pharmaceuticals, textiles, iron and steel Major imports from Türkiye: Marbles, apples, gold, vegetables, lime, cement, mineral oil, pearls, iron and steel Trade balance: India enjoys a trade surplus India’s Trade Relations with Azerbaijan Exports (Apr–Feb 2024-25): USD 86.07 million (0.02% of India’s total exports) Imports: USD 1.93 million (0.0002% of India’s total imports) Major exports: Tobacco, tea, cereals, chemicals, rubber, paper, ceramic products Major imports: Animal fodder, organic chemicals, essential oils, leather Oil Trade: India ranked third among importers of Azerbaijani crude oil in 2023 Trade balance: India has a surplus People-to-People Ties Indian diaspora: ~3,000 in Türkiye (including 200 students); ~1,500 in Azerbaijan Tourism: ~3 lakh Indian tourists visited Türkiye and ~2 lakh visited Azerbaijan in 2023 Emerging Challenges Türkiye and Azerbaijan’s support for Pakistan’s narrative has led to diplomatic strain. Calls for boycotts of Turkish and Azerbaijani products and tourism have intensified in India. Tourism cancellations, suspension of promotional campaigns, and withdrawal of academic MoUs (e.g., IIT Bombay, JNU) reflect growing public and institutional backlash. Indian traders are reportedly reducing imports of Turkish goods like apples and marble in protest. India’s trade with both countries remains relatively limited in volume but carries strategic and symbolic significance amid rising geopolitical tensions. With reference to India’s bilateral relations with Türkiye and Azerbaijan in the context of recent geopolitical developments, consider the following statements: Türkiye and Azerbaijan jointly condemned India’s operation in Pakistan-occupied Kashmir, and Türkiye-origin drones were used during the conflict. India maintains a trade surplus with both Türkiye and Azerbaijan, yet Türkiye accounts for a higher share of India’s imports than Azerbaijan. Despite strained ties, India remains among the top five destinations for crude oil