INDIA-FRANCE RELATIONS
1. Context
2. India and France-Historical Background
- France has had a significant impact on Indian polity. The ideals of liberty, equality, and fraternity in the Preamble of the Indian Constitution have been borrowed from the French. India has been constituted into a ‘Republic’. This word too has been borrowed from France.
- India and France have been ‘Strategic Partners’ since 1998, ever since an agreement was signed in the same year between the two nations.
- Ever since, this strategic dialogue has evolved to include diverse areas like nuclear technology, defence partnership including maritime cooperation, cyber security, and space technology amongst others.
- This relationship needs to be closely watched and could emerge as a partnership, sans any issues and challenges.
3. The strategic partnership between the two Nations
Defence/Strategic Ties:
- India has signed a ‘Strategic Agreement’ with more than 35 countries but the deal signed with France in 1998 remains unique. While many other partnerships have run into trouble or are clouded by differences over various issues, the partnership has been growing with France.
- The area of cooperation now extends to technologies related to Nuclear energy, space, defence, cyber security, intelligence-sharing, and counter-terrorism amongst others.
France has supported India in its ‘Make in India’ program and extended its support to all forms of defence manufacturing. - France is a critical partner of the Indian Navy in its P 75I Program which seeks to build 24 naval submarines by 2030, 18 of which will be conventional and 6 shall be nuclear.
- 36 Rafale Fighter Jets will be handed over to the Indian Air Force soon. Already, during the Galwan Valley dispute with China, a few jets were handed over to India.
- As far as the Joint Exercises between the Armed Forces are concerned: Varuna 1, Garuda 2, and Shakti 3 have been held regularly.
- Earlier, the Cyber Security and Digital technology roadmap had been agreed to by both sides. This entails cooperation in the field of emerging technologies such as Artificial Intelligence, Super Computing and Machine Learning amongst others.
- Recently, an Agreement between the Centre for Development of Advance Computing (C-DAC) and ATOS for cooperation in quantum computing, AI and supercomputing is signed.
- France also supports India in its bid for permanent membership of the United Nations Security Council.
- With the assistance and support of France, India became a member of various non-proliferation groups such as the Wassenaar group (2017), NSG, Missile Technology Control Regime (2016) and the Australia Group (2018).
- France has also opposed many of the unsustainable projects being executed under China’s One Belt One Road (OBOR) initiative.
4. Other areas that can be explored in Strategic Partnership:
- India and France can cooperate in other areas such as the Afghan peace deal which is under considerable strain as the US selfishly leaves the region. Indian interests are expected to be 164 affected as Pakistan state-sponsored terrorists run amok in Kabul and other cities. It is here that India and France can step in along with other nations and forge a partnership.
- Another area that is of mutual interest to both nations is Iran. France supported the Joint Comprehensive Plan of Action in 2015 along with the US and other nations. India which faced the fear of attracting sanctions under the US legislation ‘Countering American Adversaries Through Sanctions Act (CAATSA)’ reduced its oil imports and delayed its other connectivity projects in Iran. This deal in 2015 brought a sigh of relief to India. However, this was short-lived as in 2018, the US pulled out of the deal. India once again faces the fear of CAATSA.
- In the year 2016, India and France signed a ‘White shipping agreement’ to encourage the movement of commercial ships.
- One potential area of cooperation exists in the Indo-Pacific region. France can join the ASEAN nations and the QUAD grouping in ensuring that freedom of navigation on the high seas is protected.
5. What is the Bastille Day celebration?
- Bastille Day, also known as French National Day or La Fête Nationale, is a significant celebration in France that commemorates the storming of the Bastille prison on July 14, 1789.
- This event marked a pivotal moment in the French Revolution and the beginning of the end of absolute monarchy in France. Bastille Day is celebrated annually on July 14th and is a symbol of French unity, liberty, and national pride.
- Bastille Day commemorates the storming of the Bastille prison, which was seen as a symbol of royal authority and tyranny. The event marked the uprising of the French people against the monarchy and served as a catalyst for the French Revolution.
- The celebration of Bastille Day involves various festivities, including parades, fireworks, concerts, and public gatherings. The largest and most renowned parade takes place on the Champs-Élysées in Paris, where military troops, historical reenactments, and public figures participate.
6. Challenges observed in the bilateral relations between India and France
- Nuclear Non-Proliferation: One challenge in the India-France relationship has been India's status as a nuclear-armed nation outside the framework of the Nuclear Non-Proliferation Treaty (NPT). France is a signatory to the NPT and has expressed concerns regarding nuclear proliferation. Balancing India's nuclear ambitions with France's commitment to non-proliferation has been an ongoing challenge.
- Defense Trade Imbalance: While defense cooperation between India and France has seen significant growth, there has been a trade imbalance in this sector. India is a major buyer of French defense equipment, including aircraft, submarines, and missiles. However, there has been limited progress in developing a more balanced trade relationship, with Indian defense exports to France being relatively modest.
- Economic and Trade Issues: Despite efforts to enhance economic cooperation, there have been some trade-related challenges. These include issues related to market access, trade barriers, and regulatory hurdles. Both countries have made efforts to address these challenges through dialogues and negotiations, but further progress is still needed to unlock the full potential of bilateral trade and investment.
- Climate Change and Environmental Concerns: Climate change and environmental sustainability have become increasingly important areas of cooperation between India and France. However, challenges exist in aligning their priorities and approaches to address climate change. India's focus on development and energy security, including its reliance on coal, may sometimes diverge from France's emphasis on clean energy and emissions reduction.
- Regional and International Dynamics: India and France have their own regional and international interests, which can sometimes create divergences or competing priorities. For example, France has historical ties and strategic interests in regions such as the Middle East and Africa, where India also has growing economic and geopolitical interests. Aligning their respective policies and approaches in these regions can be a challenge.
- Cultural Differences and Communication: Cultural differences and communication gaps can also pose challenges in bilateral relations. Differences in language, communication styles, and cultural norms can create misunderstandings or difficulties in effectively engaging with each other.
For Prelims: Strategic Agreement, P 75I Program, Varuna 1, Garuda 2, Shakti 3, Countering American Adversaries Through Sanctions Act (CAATSA), QUAD, ASEAN, and Bastille Day.
For Mains: 1. Examine the bilateral relations between India and France, highlighting the key areas of cooperation, challenges faced, and the potential for future collaboration.(250 words).
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Previous year Questions1. Consider the following countries: (UPSC 2015)
1. China
2. France
3. India
4. Israel
5. Pakistan
Which among the above are Nuclear Weapons States as recognized by the Treaty on the Non-Proliferation of Nuclear Weapons, commonly known as the Nuclear Non-Proliferation Treaty (NPT)?
A. 1 and 2 only
B. 1, 3, 4, and 5 only
C. 2, 4, and 5 only
D. 1, 2, 3, 4 and 5
Answer: A
2. India along with which country jointly launched International Solar Alliance during the United Nations Climate Change Conference (COP21)? (KPSC 2017)
A. United Kingdom
B. France
C. United States of America
D. Germany
Answer: B
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INDEX OF INDUSTRIAL PRODUCTION (IIP)
1. Context
2. About the Index of Industrial Production (IIP)
- The Index of Industrial Production (IIP) is a macroeconomic indicator that measures the changes in the volume of production of a basket of industrial goods over some time.
- It is a composite index that reflects the performance of the industrial sector of an economy.
- The IIP is compiled and released by the Central Statistical Organisation (CSO) in India.
- The IIP is calculated using a Laspeyres index formula, which means that the weights assigned to different industries are based on their relative importance in a base year. The current base year for the IIP is 2011-12.
- The eight core sector industries represent about 40% of the weight of items that are included in the IIP.
- The eight core industries are Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement and Fertilizers.
- It covers 407 item groups included into 3 categories viz. Manufacturing, Mining and Electricity.
- The IIP is a useful tool for assessing the health of the industrial sector and the overall economy.
- It is used by policymakers, businesses, and investors to track trends in industrial production and make informed decisions.
3. Significance of IIP
The IIP is a significant economic indicator that provides insights into the following aspects
- The IIP reflects the growth or decline of the industrial sector, which is a major contributor to overall economic growth.
- The IIP measures the level of industrial activity, indicating the production volume of various industries.
- The IIP serves as a guide for policymakers to assess the effectiveness of economic policies and make informed decisions.
- Businesses use the IIP to assess market conditions, make production plans, and evaluate investment opportunities.
- The IIP influences investor sentiment as it reflects the overall health of the industrial sector.
4. Service Sector and IIP
- The IIP does not include the service sector. It focuses on the production of goods in the industrial sector, such as manufacturing, mining, and electricity.
- The service sector is measured by a separate index, the Index of Services Production (ISP).
- The IIP data is released monthly by the Central Statistical Organisation (CSO) in India.
- The data is released with a lag of six weeks, allowing for the collection and compilation of information from various industries.
5. Users of IIP Data
The IIP data is used by a wide range of stakeholders, including:
- Government agencies and central banks use the IIP to assess economic conditions and formulate policies.
- Companies use the IIP to evaluate market trends, make production decisions, and assess investment opportunities.
- Investors use the IIP to gauge the health of the industrial sector and make investment decisions.
- Economic analysts and researchers use the IIP to study economic trends and develop forecasts.
- The IIP is widely reported in the media and is of interest to the general public as an indicator of economic performance.
6. Manufacturing Drives Industrial Production Growth
- Factory output gained on the back of a 9.3 per cent increase in manufacturing, which accounts for 77.6 per cent of the weight of the IIP (Index of Industrial Production).
- Manufacturing output had grown by 5 per cent in July and had contracted by 0.5 per cent in August 2022.
- In absolute terms, it improved to 143.5 in August from 141.8 in July and 131.3 in the year-ago period.
- As per the IIP data, seven of the 23 sectors in manufacturing registered a contraction in August, with furniture, apparel, and computer and electronics among the significant non-performers.
- Among the performing sectors, fabricated metal products, electrical equipment and basic metals fared better.
- Garments and chemicals witnessed negative growth. This can be attributed to lower growth in exports as these two are export-dependent.
- The electronics industry also witnessed negative growth, which again can be linked to existing high stocks and lower export demand.
- In terms of the use-based industries, consumer durables output returned to positive territory for the second time this fiscal with 5.7 per cent growth in August, reflecting a pickup in consumption demand.
- However, it came on the back of a 4.4 per cent contraction in consumer durables output in the year-ago period.
- Primary, infrastructure/ construction, and capital goods recorded double-digit growth rates in August at 12.4 per cent, 14.9 per cent and 12.6 per cent, respectively.
For Prelims: The Index of Industrial Production (IIP), Central Statistical Organisation,
For Mains:
1. Discuss the significance of the Index of Industrial Production (IIP) as an economic indicator and its role in assessing the health of the industrial sector and the overall economy. (250 Words)
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Previous Year Questions
1. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries? (UPSC CSE 2012)
1. Cement
2. Fertilizers
3. Natural gas
4. Refinery products
5. Textiles
Select the correct answer using the codes given below:
A. 1 and 5 only B. 2, 3 and 4 only C. 1, 2, 3 and 4 only D. 1, 2, 3, 4 and 5
Answer: C
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LINE OF ACTUAL CONTROL (LAC)

The eastern sector which spans Arunachal Pradesh and Sikkim,
The middle sector in Uttarakhand and Himachal Pradesh, and the western sector in Ladakh
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- The alignment of the LAC in the eastern sector is along the 1914 McMahon Line, and there are minor disputes about the positions on the ground as per the principle of the high Himalayan watershed
- This pertains to India’s international boundary as well, but for certain areas such as Longju and Asaphila
- The line in the middle sector is the least controversial but for the precise alignment to be followed in the Barahoti plains.
- The major disagreements are in the western sector where the LAC emerged from two letters written by Chinese Prime Minister Zhou Enlai to PM Jawaharlal Nehru in 1959, after he had first mentioned such a ‘line’ in 1956.
- In his letter, Zhou said the LAC consisted of “the so-called McMahon Line in the east and the line up to which each side exercises actual control in the west”
- After the 1962 War, the Chinese claimed they had withdrawn to 20 km behind the LAC of November 1959
- During the Doklam crisis in 2017, the Chinese Foreign Ministry spokesperson urged India to abide by the “1959 LAC”
- India rejected the concept of LAC in both 1959 and 1962. Even during the war, Nehru was unequivocal: “There is no sense or meaning in the Chinese offer to withdraw twenty kilometres from what they call ‘line of actual control’
- LAC was discussed during Chinese Premier Li Peng’s 1991 visit to India, where PM P V Narasimha Rao and Li reached an understanding to maintain peace and tranquillity at the LAC.
- India formally accepted the concept of the LAC when Rao paid a return visit to Beijing in 1993 and the two sides signed the Agreement to Maintain Peace and Tranquillity at the LAC
- The reference to the LAC was unqualified to make it clear that it was not referring to the LAC of 1959 or 1962 but to the LAC at the time when the agreement was signed
- To reconcile the differences about some areas, the two countries agreed that the Joint Working Group on the border issue would take up the task of clarifying the alignment of the LAC
The LoC emerged from the 1948 ceasefire line negotiated by the UN after the Kashmir War. It was designated as the LoC in 1972, following the Shimla Agreement between the two countries. It is delineated on a map signed by DGMOs of both armies and has the international sanctity of a legal agreement.
The LAC, in contrast, is only a concept – it is not agreed upon by the two countries, neither delineated on a map or demarcated on the ground.
For Prelims: LAC, LOC For Mains: 1.What is this ‘line of control’? Is this the line China have created by aggression. Comment 2.What we know about the clash between Indian and Chinese soldiers in Arunachal Pradesh |
Previous Year Questions 1.The Line of Actual Control (LAC) separates (Karnataka Civil Police Constable 2020) A.India and Pakistan B.India and Afghanistan C.India and Nepal D.India and China Answer (D) 2.LAC (Line of Actual Control) is an effective border between India and ______. (SSC CHSL 2020) A.Pakistan B.Bhutan C.Sri Lanka D.China Answer (D) |
CORPORATE SOCIAL RESPONSIBILITY (CSR)
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- Around 47% of India’s population relies on agriculture for employment, a share far above the global average of 25%. Agriculture contributes about 16.73% to India’s GDP. With food production now relatively stable, current concerns focus on issues like the degradation of natural resources, stagnating farmer incomes, and the impacts of climate change.
- Recently, corporations have shown increased interest in supporting climate action and sustainability in India’s agricultural sector through their CSR budgets.
- A CSR outlook report from last year indicated that 23% of surveyed companies prioritized “environment and sustainability” in their CSR initiatives. Indian agriculture today faces urgent needs for capital investment and infrastructure development, areas where CSR efforts have already made an impact and are expected to continue.
- Examples include establishing grain banks, farmer training centers, agriculture-based livelihood projects, water conservation programs, and energy-efficient irrigation systems.
- The recent shift towards sustainable and modern agriculture further underscores the role CSR funding from the private sector can play in supporting these efforts
- A significant challenge limiting CSR's impact on agriculture is the lack of a comprehensive system to consistently track and categorize funds directed specifically toward agriculture-related projects.
- Current reporting methods do not emphasize agricultural CSR initiatives distinctly. According to Schedule VII of the Companies Act, CSR activities that support agricultural sustainability may fall within 11 of the 29 categories for CSR spending.
- These categories include areas like gender equality, agroforestry, hunger and poverty eradication, technology incubation, animal welfare, environmental sustainability, livelihood enhancement, resource conservation, rural development, reducing socio-economic inequalities, and women’s empowerment.
- However, these broad categories cover diverse activities, many unrelated to agricultural sustainability, making it difficult to isolate and assess funding specifically for agriculture.
- Given agriculture’s critical role in India’s economy and its alignment with national goals for sustainable growth and a just transition, defining agriculture as a standalone CSR sector is essential.
- Shifting the reporting framework to focus on specific sectors receiving funds could enhance fund targeting, improve accountability, and ensure meaningful contributions.
- Identifying key sustainability challenges in agriculture and directing resources accordingly would also support measurable progress in this vital sector