• The scale of plastic pollution is staggering. According to the United Nations Environment Programme (UNEP), plastic waste production nearly tripled between 1970 and 1990 and surged significantly in the early 2000s, growing more in that decade than in the previous 40 years combined. Today, the world generates approximately 400 million tonnes of plastic waste annually, a figure projected to reach 1,100 million tonnes by 2050 if current trends persist.
• Single-use plastics have become increasingly prevalent, with 36% of all plastics used in packaging, of which 85% ends up in landfills or unmanaged waste. Nearly all single-use plastic items—98%—are derived from fossil fuels, contributing to greenhouse gas emissions that could consume 19% of the global carbon budget by 2040.
• Despite efforts, less than 10% of the seven billion tonnes of plastic waste ever produced has been recycled. Much of this waste is lost to the environment or exported for disposal, often burned or dumped.
• The financial loss from inefficient processing of plastic packaging waste is estimated at $80–$120 billion annually. Commonly discarded items include cigarette butts (containing microplastics), food wrappers, bottles, and grocery bags

• India has expressed reservations about proposals to regulate the production of primary plastic polymers, citing concerns about its developmental rights. At the INC negotiations, India's delegation, led by Naresh Pal Gangwar, emphasized its commitment to consensus-based decision-making under multilateral agreements.
• India highlighted its existing measures, such as banning 22 single-use plastic items and implementing an Extended Producer Responsibility (EPR) regime to enforce recycling obligations for companies.
• However, India views restrictions on plastic production as trade barriers, given its economic reliance on virgin polymer production and exports, with major corporations like Reliance Industries heavily invested in this sector.
• India aligns with countries like China and Saudi Arabia in opposing stringent production cuts. While 85–100 countries supported measures to limit plastic production and set year-wise targets, India objected to voting mechanisms for advancing treaty negotiations, arguing that such processes could undermine equity and consensus

5. CAG Audit and Financial Irregularities

Obstacles Faced by CAG The CAG's audit covered Rs 8, 500 crores of the total expenditure, as the BMC objected to auditing the remaining amount. The BMC issued a legal notice to halt the audit of any acts, works or decisions related to Covid management and expenditure amounting to Rs 3, 538.73 crores, citing provisions of the Epidemic Act, 1897 and the Disaster Management Act 2005.

Project Audits and Findings The CAG report, spanning 146 pages, highlighted weaknesses in internal control mechanisms within the BMC. It revealed instances where work orders were awarded without tenders, contractual documents were not executed and third-party auditors were not appointed to assess the quality of work.

Departments Under Scrutiny Various BMC departments were found to have financial irregularities. The Development Plan Department was flagged for overvaluation of expenditure during land acquisition and delays in acquiring land for public amenities.  The Bridges Department awarded work orders without registering private contractors with the BMC. The report also mentioned cost escalations, delayed clearances and irregularities in various other projects and departments.

Financial Transactions During the Pandemic While the ED is investigating financial transactions during the Pandemic period, the CAG report sheds light on the wide-ranging financial irregularities across multiple BMC departments.

6. The way forward

The ED raids and the CAG report have brought to light alleged financial irregularities in the BMC's operations. Investigations and further actions will be taken to determine the extent of the scam and hold those responsible accountable.

COST INFLATION INDEX (CII)

• The Cost Inflation Index (CII) is a measure used in India to adjust the purchase price of assets for inflation, primarily for calculating long-term capital gains tax.
• It is determined by the Central Board of Direct Taxes (CBDT) and is used to index the cost of acquisition, improvement, or transfer of a capital asset to reflect the effect of inflation over the years.
• The indexation helps reduce the overall tax burden on the seller by accounting for inflationary increases in asset prices

• The global economy is ever-changing and consistently evolving. One significant indicator of this change is the diminishing purchasing power of money, driven by a continuous rise in the prices of goods and services.
• This decline in money's value, which subsequently raises the cost of living for individuals, is termed inflation.
• The Cost Inflation Index (CII) is a tool employed to estimate the annual increase in an asset’s value due to inflation.
• This index is determined by the Central Government and published in its official gazette to measure inflation. It is updated annually by the government and is specified under Section 48 of the Income Tax Act, 1961

3. What is the Purpose of CII?

 

The primary purpose of the Cost Inflation Index (CII) is to account for inflation when calculating long-term capital gains tax on the sale of assets in India.

Here are the key objectives of CII:

• Adjusting for Inflation: CII helps in adjusting the historical cost of assets to reflect current inflation rates, ensuring that the calculation of capital gains is based on the real value of money rather than nominal values.

• Reducing Tax Burden: By indexing the cost of acquisition and improvement of an asset, taxpayers can reduce their taxable capital gains. This effectively lowers the amount of capital gains tax they need to pay.

• Fair Taxation: CII ensures a fairer taxation system by taking into account the erosion of purchasing power over time. This prevents taxpayers from being taxed on the inflationary increase in asset values rather than the actual real gains.

• Encouraging Investment: By mitigating the impact of inflation on capital gains tax, CII can encourage long-term investment in assets, as investors are assured that inflationary effects will not disproportionately increase their tax liabilities.

• Compliance with Tax Laws: The use of CII is mandated under Section 48 of the Income Tax Act, 1961. It ensures taxpayers comply with the legal provisions for calculating capital gains tax in a standardised manner.

​

What Does a Base Year in CII Mean?   In the context of the Cost Inflation Index (CII), the base year is a specific year chosen by the government to serve as a reference point for measuring inflation. The index for the base year is set to a standard value, typically 100, and subsequent values of the CII reflect the inflationary increase relative to this base year. Here's what the base year signifies: Reference Point: The base year acts as a fixed reference point against which all other years are compared to measure the rate of inflation. It provides a consistent starting point for calculating the index. Standardization: By setting a specific base year, the government standardizes the way inflation is measured over time, ensuring consistency in how the cost of assets is indexed. Calculation of Indexed Cost: The base year is crucial for calculating the indexed cost of acquisition and improvement of assets. The formula for indexing involves the CII of the year of sale, the year of purchase or improvement, and the CII of the base year. For example: Indexed Cost=(Cost of Acquisition×CII of the Year of Sale)/CII of the Year of Acquisition or Base Year

 

 

4. Way Forward

The choice of base year can impact the capital gains calculations significantly. A more recent base year would mean less indexing over fewer years, whereas an older base year would provide a longer duration for indexing and potentially a higher inflation adjustment

The government can reset the base year periodically to reflect more current economic conditions. For instance, the base year for CII was shifted from 1981 to 2001, and changes like these help in making the index more relevant to current economic scenarios

 

Source: The Hindu

 

GREENHOUSE GASES(GHGs)

 

 

1. Context

 

The Indian economy has consistently showcased its robust growth over the past few decades. But higher economic growth is believed to have come with increasing environmental pressure, notably through higher greenhouse gas (GHG) emissions.

 

2.What are greenhouse gases?

 

Greenhouse gases are gases that trap heat in the Earth's atmosphere, leading to the greenhouse effect and contributing to global warming. These gases include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), ozone (O3), and fluorinated gases (such as hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride).

These gases allow sunlight to enter the Earth's atmosphere freely. Once absorbed, the Earth's surface emits infrared radiation, but instead of allowing this radiation to escape back into space, greenhouse gases trap and re-radiate some of it back towards the Earth's surface. This process warms the Earth's surface and lower atmosphere, leading to the greenhouse effect.

Human activities, such as the burning of fossil fuels, deforestation, and industrial processes, have significantly increased the concentration of greenhouse gases in the atmosphere, amplifying the greenhouse effect and contributing to global climate change

Here are the major greenhouse gases:

• Carbon dioxide (CO2): The most abundant greenhouse gas emitted through human activities. It is released when fossil fuels like coal, oil and natural gas are burned
• Methane (CH4): Methane is emitted from agriculture, waste decomposition, and fossil fuel production. It is a more potent greenhouse gas than CO2, but it breaks down in the atmosphere more quickly
• Nitrous oxide (N2O): Nitrous oxide is emitted from agriculture, industrial processes, and burning fossil fuels. It is a long-lived greenhouse gas that can stay in the atmosphere for centuries
• Fluorinated gases These are man-made chemicals used in refrigerants, air conditioners, and fire extinguishers. They are very potent greenhouse gases, but they are emitted in much smaller quantities than other greenhouse gases
• Water vapor (H2O): The most abundant greenhouse gas in the atmosphere. Water vapor plays an important role in the natural greenhouse effect, but human activities do not significantly affect the amount of water vapor in the atmosphere

3. What is the Greenhouse gas effect?

The greenhouse effect is a natural process that occurs when certain gases in the Earth's atmosphere trap heat from the sun. This process is essential for maintaining the Earth's temperature within a range suitable for life. Without the greenhouse effect, the Earth would be much colder, and life as we know it would not exist.

Here's how the greenhouse effect works:

• Solar radiation: Sunlight reaches the Earth's atmosphere and passes through it, warming the Earth's surface.

• Absorption and re-radiation: The Earth's surface absorbs some of this solar energy and then emits it as infrared radiation (heat). Greenhouse gases in the atmosphere, such as carbon dioxide (CO2), methane (CH4), water vapor (H2O), and others, absorb some of this infrared radiation.

• Re-emission: The absorbed energy is re-radiated in all directions, including back toward the Earth's surface. This trapped heat warms the lower atmosphere and the Earth's surface, similar to how a greenhouse traps heat.

• Balance: The greenhouse effect helps maintain the Earth's temperature in a range suitable for life. However, human activities, such as burning fossil fuels and deforestation, have significantly increased the concentration of greenhouse gases in the atmosphere, leading to enhanced greenhouse effect or global warming

 

4. What are hydrofluorocarbons?

 

• Hydrofluorocarbons (HFCs) are a class of synthetic greenhouse gases commonly used in refrigeration, air conditioning, foam blowing agents, aerosol propellants, and other industrial applications. They are composed of hydrogen, fluorine, and carbon atoms.
• HFCs were developed as alternatives to chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs), which were phased out due to their significant ozone-depleting potential. Unlike CFCs and HCFCs, HFCs do not contain chlorine atoms, so they do not contribute to ozone depletion.
• However, they are potent greenhouse gases, with high global warming potentials (GWPs), meaning they trap heat in the atmosphere at a much higher rate than carbon dioxide (CO2).
• Due to their role in contributing to climate change, efforts have been made internationally to regulate and phase out the use of HFCs. The Kigali Amendment to the Montreal Protocol, adopted in 2016, aims to gradually reduce the production and consumption of HFCs globally.
• Many countries are transitioning to alternative refrigerants with lower global warming potentials, such as hydrofluoroolefins (HFOs) and natural refrigerants like ammonia and carbon dioxide. These efforts are essential for mitigating climate change by reducing the emissions of potent greenhouse gases like HFC

5. What are the adverse effects?

 

The greenhouse gas effect, when intensified beyond natural levels due to human activities, leads to a range of adverse effects on the environment, ecosystems, and human societies.

 

Some of these effects include:

• The primary consequence of intensified greenhouse gas effect is global warming. Increased concentrations of greenhouse gases in the atmosphere trap more heat, leading to a rise in average global temperatures
• Global warming alters weather patterns and climatic conditions worldwide, leading to changes such as more frequent and intense heatwaves, storms, droughts, and floods. These changes can disrupt ecosystems, agriculture, and water supplies, leading to ecological imbalances and economic losses
• Warmer temperatures cause polar ice caps and glaciers to melt, contributing to rising sea levels. This phenomenon threatens coastal communities, low-lying islands, and habitats, increasing the risk of flooding and erosion
•  Increased atmospheric CO2 levels lead to higher levels of carbon dioxide dissolving into oceans, resulting in ocean acidification. This harms marine life, particularly organisms with calcium carbonate shells or skeletons, such as corals, mollusks, and certain plankton species
• Climate change disrupts ecosystems and habitats, forcing species to migrate, adapt, or face extinction. The rapid pace of climate change often outpaces the ability of many species to adapt, leading to biodiversity loss and ecosystem degradation
• Climate change exacerbates health risks, including heat-related illnesses, respiratory problems from poor air quality, increased prevalence of infectious diseases, and food and water insecurity due to changing agricultural conditions
• Climate change can lead to displacement of populations due to extreme weather events, loss of livelihoods in sectors such as agriculture and fishing, and increased conflicts over resources like water and arable land. These disruptions can strain social systems and economies, particularly in vulnerable regions

6.What is Montreal Protocol?

 

The Montreal Protocol is an international environmental agreement aimed at protecting the Earth's ozone layer by phasing out the production and consumption of ozone-depleting substances (ODS). It was negotiated in 1987 and entered into force in 1989. The protocol is regarded as one of the most successful international environmental treaties.

Key points about the Montreal Protocol include:

• Objective: The primary goal of the Montreal Protocol is to phase out the production and consumption of ODS, which are substances that contain chlorine and bromine atoms and are responsible for ozone depletion in the stratosphere.

• Ozone Layer: The ozone layer is a region of the Earth's stratosphere that contains a high concentration of ozone molecules (O3). This layer plays a crucial role in absorbing and filtering out harmful ultraviolet (UV) radiation from the sun, protecting life on Earth from its harmful effects.

• Ozone-Depleting Substances: The Montreal Protocol targets several categories of ODS, including chlorofluorocarbons (CFCs), halons, carbon tetrachloride, and methyl chloroform, among others. These substances were commonly used in refrigeration, air conditioning, foam blowing agents, fire extinguishers, and other industrial applications.

• Phasing Out: The protocol established a timetable for phasing out the production and consumption of ODS, with developed countries committing to earlier phase-out schedules and developing countries given more time to comply. Amendments to the protocol tightened regulations and accelerated the phase-out schedules over time.

• Success: The Montreal Protocol is widely regarded as successful in achieving its objectives. By reducing the production and consumption of ODS, the protocol has led to a gradual recovery of the ozone layer. Scientific assessments have confirmed a decrease in the atmospheric concentrations of ODS and a healing of the ozone layer.

• International Cooperation: The Montreal Protocol exemplifies successful international cooperation in addressing global environmental challenges. It has been ratified by almost every country in the world, demonstrating a shared commitment to protecting the ozone layer and mitigating climate change (as many ODS are also potent greenhouse gases)

7.Way Forward

 

Since 2020, the US has banned the import of HCFC 22 for any purpose other than in a process which results in its transformation or destruction. The American Innovation and Manufacturing (AIM) Act, passed by Congress in December 2020, authorised the US Environmental Protection Agency (EPA) to phase down the production and consumption of numerous forms of HFCs

 

 

For Prelims: General issues on Environmental ecology, Bio-diversity and Climate Change – that do not require subject specialization For Mains: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment

 

 

Previous Year Questions   1.Global warming is attributed to the presence of the following gases in the atmosphere : (UGC NET 2022) (A) Methane (B) Sulphur dioxide (C) Surface Ozone (D) Nitrogen dioxide (E) Carbon dioxide Choose the correct answer from the options given below : 1.(A), (B), (C), (E) only 2.(A), (C), (E) only 3.(A), (C), (D), (E) only 4.(A), (B), (D), (E) only Answer (2)

Source: Indianexpress

 

HIGH SEAS TREATY

 

 

1. Context

 

India signed an important international agreement called the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement, or the High Seas Treaty at the United Nations General Assembly in New York on September 25, 2024. So far, 105 countries have signed the treaty which is ratified by 14 countries. The High Seas treaty would come into force 120 days after at least 60 countries submit their formal ratification documents

 

2. What are High Seas?

 

• Covering 64% of the ocean's surface and approximately 43% of the Earth's area, the high seas are home to around 2.2 million marine species and up to a trillion types of microorganisms. These international waters are open to all, granting equal rights for navigation, overflight, economic ventures, scientific research, and the establishment of infrastructure such as undersea cables.

• The lack of designated responsibility for the high seas has led to widespread issues such as resource overexploitation, biodiversity loss, pollution—including plastic waste—and ocean acidification. According to the United Nations, an estimated 17 million tonnes of plastic were dumped into oceans in 2021, a figure projected to rise in the years ahead.

• Concluded in March 2023, the treaty focuses on ocean areas beyond any nation's jurisdiction. National jurisdictions typically extend up to 200 nautical miles (370 km) from the coastline, known as exclusive economic zones (EEZs). Beyond these zones lie the high seas or international waters. This treaty, formally titled the Agreement on Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction, addresses the conservation and sustainable use of marine resources in these global commons

 

3. Key Objectives of High Seas Treaty

 

➤ Establishment of marine protected areas (MPAs), similar to designated protected forests and wildlife zones.
➤ Sustainable utilization of marine genetic resources and fair distribution of benefits derived from them.
➤ Implementation of environmental impact assessments for significant oceanic activities.
➤ Promotion of capacity-building initiatives and technology transfer

 

4.Key takeaways from High Seas

 

• Marine-Protected Areas (MPAs): MPAs are zones in the ocean where ecosystems and biodiversity are under stress from human activities or climate change. They are akin to national parks or wildlife sanctuaries on land. Activities within these areas will be strictly regulated, with conservation measures similar to those implemented in forest and wildlife reserves. Currently, only about 1.44% of high seas are protected, according to the International Union for Conservation of Nature (IUCN).

• Marine Genetic Resources: Oceans are home to an immense variety of life forms, many of which hold potential for applications like drug development. Genetic data from these organisms is being extracted and studied for potential benefits. The treaty aims to ensure that any resulting benefits, including financial ones, are equitably shared and not restricted by stringent intellectual property rights. Additionally, knowledge gained from these explorations is to remain openly accessible to all.

• Environmental Impact Assessments (EIAs): The treaty mandates conducting prior environmental impact assessments for activities that could harm marine ecosystems or conservation efforts. These assessments must be made publicly available. EIAs are also required for activities within national jurisdictions if their impact extends to the high seas.

• Capacity Building and Technology Transfer: Emphasis is placed on capacity building and technology transfer to support countries, particularly small island nations and landlocked states, that lack the resources or expertise to participate effectively in conservation or sustainable exploitation of marine resources. The treaty seeks to alleviate the additional burden these nations might face, such as conducting environmental impact assessments

 

Ratification and Treaty   Ratification refers to the formal process through which a country commits to being legally obligated by the provisions of an international law. This is distinct from simply signing the law. Signing signifies a country’s agreement with the law's principles and its intention to adhere to them. However, until the country completes the ratification process— which differs across nations— it is not legally required to comply with the provisions of that law

 

 

5.UN Convention on Laws and Seas

 

• The United Nations Convention on the Law of the Sea (UNCLOS) is a comprehensive international legal framework that establishes guidelines for the proper use and governance of seas and oceans globally. It outlines nations' rights and responsibilities concerning oceanic activities and addresses issues such as sovereignty, navigation, and exclusive economic rights. Territorial waters and Exclusive Economic Zones (EEZs) are demarcated based on UNCLOS provisions.

• According to UNCLOS, the Territorial Sea (TS) extends up to 12 nautical miles from a nation’s coastline. While a state exercises complete sovereignty over the waters within its TS, the EEZ grants the state exclusive economic rights over the resources beneath the sea's surface without full sovereignty.

• UNCLOS provides overarching principles for fair access to ocean resources and the conservation of biodiversity and marine ecosystems. However, it does not detail the methods for achieving these goals. This gap is addressed by the High Seas Treaty, which functions as an implementation agreement under UNCLOS, similar to how the Paris Agreement operates within the framework of the UN Framework Convention on Climate Change (UNFCCC)

 

For Prelims: UN high seas, UN high seas treaty, UNCLOS,  Biodiversity of Areas Beyond National Jurisdiction (BBJN), Exclusive Economic Zone, Territorial Waters. For Mains: 1. Discuss the significance of the Treaty of High Seas and explain how to save our high seas from overfishing and pollution.

 

Previous year Question

1. Concerning the United Nations Convention on the Law of Sea, consider the following statements: ( UPSC 2022) A coastal state has the right to establish the breadth of its territorial sea up to a limit not exceeding 12 nautical miles, measured from a baseline determined by the convention. Ships of all states, whether coastal or landlocked, enjoy the right of innocent passage through the territorial sea. The Exclusive Economic Zone shall not extend beyond 200 nautical miles from the baseline from which the breadth of the territorial sea is measured. Which of the statements given above is correct? A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3 Answer : D

 

Source: Indianexpress

 

INDIA- CANADA

1. Context

• The recent diplomatic crisis between India and Canada has the potential to create significant political and geopolitical consequences.
• It all began when Canadian Prime Minister Justin Trudeau made a startling allegation in Parliament, suggesting the Indian government's involvement in the murder of a Khalistani separatist in Canada.
• The situation escalated rapidly, with both countries taking drastic diplomatic measures. 

2. Canada's Allegation

• Canadian Prime Minister Justin Trudeau accusation that Indian security agencies might be linked to the murder of a Canadian citizen, Hardeep Singh Nijjar, sent shockwaves through diplomatic circles.
• Such a serious charge by a foreign leader against another nation before conclusive proof is rare and demands a thorough investigation.
• Canada's Foreign Minister Melanie Joly has emphasized the need for cooperation between the two countries in the investigation.

3. Diplomatic Escalation

• Canada took the initial step in the escalation by expelling an Indian diplomat in Ottawa, identified as the head of the Indian intelligence agency.
• In response, India expelled a Canadian diplomat based in New Delhi.
• India also issued travel advisories for its citizens in Canada, raising concerns about their safety. Visa services were suspended, affecting various categories of travellers.

4. About the Khalistan movement 

• The Khalistan movement is a Sikh separatist movement that seeks to create an independent Sikh state called Khalistan in the Indian state of Punjab.
• The movement began in the 1970s and has been marked by violence and political unrest.
• The Khalistan movement is based on the belief that the Sikhs are a distinct people with their own unique culture and history.
• Sikhs believe that they have been persecuted by the Indian government, and they demand an independent state where they can govern themselves.
• The Khalistan movement has been supported by some Sikhs in India and abroad.
• However, it is opposed by the Indian government, which considers it to be a threat to national security.

4.1. Khalistan Problem Resurfaces

• This crisis has brought the long-standing issue of Khalistan back into India-Canada relations.
• While the relationship faced challenges in the past, including Canada's criticism of India's nuclear tests in 1998, the current issue centres around Canada's perceived support for separatist Khalistani groups.
• Canada's Liberal Party has been accused of pandering to these groups for votes, particularly in constituencies where Khalistani sympathies hold sway.

4.2. Khalistan and Canadian Politics

• Jagmeet 'Jimmy' Dhaliwal, associated with Canada's New Democratic Party, is viewed with suspicion by the Indian establishment due to his pro-Khalistan sympathies.
• Canada's hosting of events attended by individuals linked to pro-Khalistan outfits, like Jaspal Atwal, during Trudeau's visit in 2018, further strained relations.
• The Khalistan "referendum," encouraged by Pakistani intelligence agencies, has been a significant irritant in recent years.

5. Social and economic indicators between India and Canada

Canada's FDI in India: Canada accounts for a modest 0.56% of India's total Foreign Direct Investment (FDI). Out of the $645,386.0884 million in FDI equity inflow into India between April 2000 and June 2023, Canada contributed 0.5644% ($3,642.5243 million).

Indian Diaspora in Canada: Canada is home to a significant portion of overseas Indians. Of the 3,21,00,340 overseas Indians, 5.26% (16,89,055) reside in Canada. This includes 1,78,410 Non-Resident Indians (NRIs) and 15,10,645 Persons of Indian Origin (PIOs).

Indian Students in Canada: Canada is a popular destination for Indian students. In 2022, out of an estimated 13,24,954 Indian students studying abroad, 13.83% (1,83,310) were enrolled in Canadian institutions, according to data from the Ministry of External Affairs.

Canada's Role in Indian Tourism: Canada is the fourth-largest source of tourists visiting India, based on 2021 figures. Canadian tourists accounted for 5.3% (80,437) of Foreign Tourist Arrivals (FTAs) in India during that year. Notably, a significant portion of these tourists (72.6%) were members of the Indian diaspora.

Bilateral Trade: India's bilateral trade with Canada amounted to $8,161.02 million in the financial year 2022-23, making up only 0.70% of India's total trade of $1,165,000.88 million. Despite its modest size, India maintains a trade surplus with Canada, with exports surpassing imports by $58.45 million.

Trade Highlights

India's major exports to Canada during 2022-23 included medicines, vannamei shrimp, smartphones, gold-set diamond jewellery, basmati rice, iron pipes for oil/gas pipelines, coaches powered by external electricity, diamonds, and cotton t-shirts.

Key imports from Canada included coking coal, potassium chloride, lentils (masur dal), newsprint, wood pulp (mechanical and chemical pulp processes), and copper ores and concentrates.

5.1. Top Indian Imports from Canada

Coking Coal: Coking Coal was the most valued item India imported from Canada during 2022-23. At 28.96 lakh tonnes, Canada was the fifth largest supplier of coking coal to India after Australia, the US, Singapore, and Russia. 

 

Potassium Chloride: Canada is India’s biggest source of potassium chloride. During 2022-23, India imported 11.43 lakh tonnes of the chemical from Canada. The other countries that supplied potassium chloride to India were Israel, Jordan, Belarus, Turkmenistan, and Russia.

 

Lentils: Canada is the biggest supplier of ‘masur’ dal to India. During 2022-23, India imported 4.85 lakh tonnes of lentils from Canada. The other countries exporting lentils to India are Australia, the Netherlands, the UAE, and Sri Lanka.

 

News Print: Canada is a major source of newsprint. During 2022-23, India imported 2.5 lakh tonnes of ‘Other Newsprint’ (under HSN code 48010090) from Canada, which was the highest from any country. The other countries that supplied the newsprint to India were Russia, Korea, Malaysia, and the UAE. 

 

Wood Pulp: Canada is also a major source of wood pulp obtained by a combination of mechanical and chemical pulp processes. During 2022-23, India imported 2.06 lakh tonnes of wood pulp from Canada. The other countries that supplied wood pulp to India last year were New Zealand, Sweden, Estonia, the US, and the Netherlands.

 

6. Diplomatic Complexity

• Diplomats familiar with Canada's foreign policy assert that the country is often influenced by immigrant interests.
• Pro-Khalistan elements, though a minority in the Canadian Sikh community, control several influential gurdwaras and can exert political influence in key constituencies.
• This small but influential group shapes Canada's policy towards India.

7. Geopolitical Implications

• Canada holds a significant role in global geopolitics, being part of the G7 and sharing intelligence within the Five Eyes alliance.
• This diplomatic standoff poses a challenge for Western powers, including the US, UK, Australia, Germany, France, and Japan, as they maintain strategic partnerships with both Canada and India.
• Balancing these relationships becomes crucial in the wake of this crisis.

8. Conclusion

• The India-Canada diplomatic crisis underscores the importance of addressing each other's concerns and conducting a fair and impartial investigation into the allegations.
• Both nations must work to de-escalate tensions and find a way forward while considering the broader geopolitical implications of their actions.
• This crisis serves as a lesson for Canada and its partners on how to handle the sensitive issue of Khalistan in diplomatic relations.

For Prelims: India-Canada, Khalistan, Foreign Direct Investment, Tourism, Bilateral Trade, Geo-politics, Wood Pulp, News Print, Lentils, Potassium Chloride, Coking Coal For Mains:  1. Examine the resurgence of the Khalistan movement in India-Canada relations. How has Canada's perceived support for Khalistani groups affected bilateral ties? (250 Words)

 

 

Previous Year Questions   1. In the context of bilateral trade negotiations between India and the European Union, what is the difference between European Commission and European Council?  (UPSC 2010) 1. European Commission represents the EU in trade negotiations whereas the European Council partici­pates in the legislation of matters pertaining to economic policies of the European Union. 2. European Commission comprises of the Heads of State or government of member countries whereas the European Council comprises of the persons nominated by European Parliament. Which of the statements given above is/are correct? A. 1 only       B. 2 only        C.  Both 1 and 2         D. Neither 1 nor 2   Answer: D   2. With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic? (UPSC 2020) A. It is the investment through capital instruments essentially in a listed company. B. It is a largely non-debt creating capital flow. C. It is the investment which involves debt-servicing. D. It is the investment made by foreign institutional investors in the Government securities.   Answer: B

 

Source: The Indian Express