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DAILY CURRENT AFFAIRS, 13 FEBRUARY 2026

CONSUMER PRICE INDEX (CPI)

 
 

1. Context

The Ministry of Statistics and Programme Implementation (MoSPI) on Thursday released the Consumer Price Index (CPI) data based on a new series with 2024 as base year, placing retail inflation in January 2026 at 2.75%.

2. Consumer Price Index

  • The Consumer Price Index (CPI) is a measure of the change in prices of a basket of goods and services that are commonly purchased by consumers. It is the most commonly used measure of inflation.
  • The CPI is calculated by comparing the prices of the goods and services in the basket in a particular period to those of the same in a base period.
  • The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the CPI inflation rate.
  • The CPI is calculated for eight different categories of goods and services Food and beverages, Housing, Clothing and footwear, Transport, Health, Education, Communication, Recreation and Miscellaneous goods and services.
  • The weights of each category in the CPI are determined by the expenditure patterns of urban households. For example, food and beverages have the highest weight in the CPI, followed by housing and transport.
  • The CPI inflation rate is an important indicator of the cost of living.
  • It is used by the government to set monetary policy and by businesses to make pricing decisions.

3. Wholesale Price Index

  • The Wholesale Price Index (WPI) is a measure of the change in prices of goods and services at the wholesale level.
  • It is calculated by comparing the prices of a basket of goods and services in a particular period to those of the same in a base period.
  • The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the WPI inflation rate.
  • The WPI is calculated for 67 groups of commodities, which are further divided into 225 subgroups.
  • The weights of each group and subgroup in the WPI are determined by the value of the goods and services produced in each group and subgroup.
  • The WPI inflation rate is an important indicator of inflation at the wholesale level.
  • It is used by businesses to make pricing decisions and by the government to set monetary policy.

4. Findings of the Report

4.1. Food inflation

  • Food inflation in India remained high in August, at 9.94%. This was driven by rising prices of essential food items, such as cereals, pulses, vegetables, and oils.
  • Eleven of the 12 items on the heavyweight food and beverages group of the CPI logged price increases, with oils and fats, the sole item logging a year-on-year decline in prices, posting its first sequential increase in nine months.
  • Vegetables provided some relief, with tomatoes leading an appreciable month-on-month deflation of 5.88% in the 19-member basket.
  • However, the cooking staples of potatoes and onions were among the seven items that continued to log sequential inflation (2.3% and 12.3%, respectively).

4.2. Monsoon deficit and rising crude oil prices

  • The near-term inflation outlook is also made more uncertain by other factors, including a distinct deficit in monsoon rainfall.
  • Besides the overall 10% shortfall, sharp regional and temporal anomalies in rain distribution have impacted either the sowing or the quality of produce of several farm items.
  • Kharif's sowing of pulses had, as of September 8, recorded an 8.6% shortfall compared with the year-earlier period.
  • Another inflation driver, crude oil, has also seen a steady rise in prices as the output cuts by major oil producers of the OPEC+ grouping start to bite.
  • The price of India's crude basket had, as of September 12, climbed 7.2% from the average in August to $92.65/barrel, according to official data.

4.3. RBI measures to control inflation

  • For the RBI, the latest inflation data further roils its interest rate calculus.
  • Unless CPI inflation decelerates by an incredible 250 basis points in September to a 4.33% pace, price gains are certain to substantially overshoot the monetary authority's 6.2% forecast for the July-September quarter, leaving it with few real options to achieve its medium-term price stability goal of 4% inflation.
  • As the RBI has been at pains to stress, failure to anchor inflation expectations risks hurting growth.

5. About the sticky Consumer Price Index (CPI)

  • The sticky Consumer Price Index (CPI) is a subset of the CPI that includes goods and services that change prices relatively infrequently.
  • These goods and services are thought to incorporate expectations about future inflation to a greater degree than prices that change more frequently.
  • Some of the items included in the sticky CPI are Rent, Housing costs, Utilities, Education, Healthcare, Transportation, Household furnishings and appliances, Personal insurance, Recreation, and Miscellaneous goods and services. 
  • The sticky CPI is often used by economists to measure inflation expectations.
  • This is because prices of sticky goods and services are less likely to be affected by short-term changes in supply and demand, and are therefore more likely to reflect changes in inflation expectations.
  • The sticky CPI is also used by central banks to set monetary policy.
  • This is because the central bank wants to make sure that inflation expectations are anchored at a low level.
  • If inflation expectations start to rise, the central bank may raise interest rates to bring them back down.

6. How India’s retail inflation is measured?

  • India's retail inflation is measured by the Consumer Price Index (CPI), a basket of goods and services commonly purchased by urban households.
  • The CPI is calculated by the National Statistical Office (NSO) every month.
  • The CPI is calculated by comparing the prices of the goods and services in the basket in a particular month to those of the same in a base month.
  • The base month is usually the previous year's corresponding month. The difference in prices is expressed as a percentage, and this is the CPI inflation rate.
  • The CPI is calculated for eight different categories of goods and services, Food and beverages, Housing, Clothing and footwear, Transport, Health, Education, Communication, Recreation and Miscellaneous goods and services.
  • The weights of each category in the CPI are determined by the expenditure patterns of urban households. For example, food and beverages have the highest weight in the CPI, followed by housing and transport.
  • The CPI inflation rate is an important indicator of the cost of living in India.
  • It is used by the government to set monetary policy and by businesses to make pricing decisions.

7. Calculation of Inflation

  • Inflation is the rate at which the prices of goods and services increase over time.
  • It is calculated by comparing the prices of a basket of goods and services in a particular period to the prices of the same basket of goods and services in a base period.
  • The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the inflation rate.

There are two main ways to calculate inflation

1. Consumer Price Index (CPI): The CPI is a measure of the change in prices of a basket of goods and services that are commonly purchased by consumers. It is the most commonly used measure of inflation.

The CPI is calculated by the following formula:

CPI = (Cost of a basket of goods and services in current period / Cost of a basket of goods and services in base period) * 100

2. Producer Price Index (PPI): The PPI is a measure of the change in prices of goods and services that are produced by businesses. It is used to track inflation at the wholesale level.

The PPI is calculated by the following formula:

PPI = (Cost of a basket of goods and services at the wholesale level in the current period / Cost of a basket of goods and services at the wholesale level in the base period) * 100

 

For Prelims: Consumer Price Index, Wholesale Price Index, Inflation,  retail inflation, Producer Pirce Index, National Statistical Office, OPEC+, Crude oil, Kharif season, Monsoon, 
For Mains: 
1. Analyse the factors contributing to high food inflation in India in recent months. Discuss the impact of high food inflation on the Indian economy and suggest measures to mitigate it. (250 words)
2. Explain the concept of sticky inflation. What are the various factors that contribute to sticky inflation? Discuss the implications of sticky inflation for the Indian economy. (250 words)
 
 
Previous Year Questions
 
1. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
 
Answer: C
 
2. With reference to India, consider the following statements: (UPSC 2010)
1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.
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: C
 
3. Consider the following statements: (UPSC 2020)
1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct?
 A. 1 and  2 only       B. 2 only       C. 3 only           D. 1, 2 and 3
 
4. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct? 
A. 1 and 2 only          B. 2 and 3 only        C. 1 and 3 only          D. 1, 2 and 3
 
Answer: B
 
 
5. The Public Distribution System, which evolved as a system of management of food and distribution of food grains, was relaunched as _______ Public Distribution System in 1997. (SSC JE EE 2021) 
A. Evolved         B. Transformed      C. Tested            D. Targeted
 
Answer: D
 
6. Under the Antyodaya Anna Yojana, up to what quantity of rice and wheat can be purchased at a subsidised cost? (FCI AG III 2023) 
A. 35 kg          B. 40 kg          C. 30 kg           D. 25 kg           E. 50 kg
 
Answer: A
 
7. As per the the National Statistical Office (NSO) report released on 7 January 2022, India's Gross domestic product (GDP) is expected to grow at ___________ per cent (in first advance estimates) in the fiscal year 2021-22?  (ESIC UDC 2022) 
A. 17.6 per cent     B. 9.5 per cent     C. 11 per cent        D. 9.2 per cent   E. None of the above
 
Answer: D
 
8. The main emphasis of OPEC (Organisation of the Petroleum Exporting Countries) is on which of the following? (UKPSC 2016)
A. The production of petroleum
B. Control over prices of petroleum
C. Both (a) and (b)
D. None of the above
 
Answer: C
 
9. In the context of global oil prices, "Brent crude oil" is frequently referred to in the news. What does this term imply? (UPSC 2011)
1. It is a major classification of crude oil.
2. It is sourced from the North Sea.
3. It does not contain sulfur.
Which of the statements given above is/are correct?
A. 2 only    B. 1 and 2 only        C. 1 and 3 only         D. 1, 2 and 3
 
Answer: B
 
10. The term 'West Texas Intermediate', sometimes found in news, refers to a grade of (UPSC 2020)
A. Crude oil   B. Bullion         C. Rare earth elements       D.  Uranium
 
Answer: C
 
11. With reference to the cultivation of Kharif crops in India in the last five years, consider the following statements: (UPSC 2019)
1. Area under rice cultivation is the highest.
2. Area under the cultivation of jowar is more than that of oilseeds.
3. Area of cotton cultivation is more than that of sugarcane.
4. Area under sugarcane cultivation has steadily decreased.
Which of the statements given above are correct? 
A. 1 and 3 only        B.  2, 3 and 4 only        C. 2 and 4 only         D. 1, 2, 3 and 4
 
Answer: A
 
Source: The Hindu
 
 

DEFENCE ACQUISITION COUNCIL

 

1. Context

The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, on Thursday accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth approximately ₹3.6 lakh crore.
 

2. About the Defence Acquisition Council

The Defence Acquisition Council (DAC) is the apex body for all defence acquisitions in India. It was formed after recommendations made by the Group of Ministers on 'Reforming the National Security System' in 2001, post-Kargil war. The DAC is headed by the Defence Minister and comprises the following members:

  • Chief of the Defence Staff (CDS)
  • Secretary, Department of Defence Production
  • Secretary, Finance
  • Secretary, Defence Research and Development
  • Controller General of Defence Accounts
  • Other senior officers from the Ministry of Defence and the Services

The Role of the Defence Acquisition Council

The DAC's primary role is to:

  • Accord approval for AoN (Acceptance of Necessity) for Capital Acquisition Proposals.
  • Categorise the acquisition proposals into 'Buy, Buy & Make, & Make'.
  • In-principle approval of 15-Year Long-Term Integrated Perspective Plan (LTPP) for Defence Forces.
  • Delegate powers to Services/C&AS for the acquisition of items up to a certain value.
  • Consider and approve other issues as may be referred to it by the Defence Minister.

Functions of the Defence Acquisition Council

The DAC's primary functions are to:

  • Approve capital acquisitions for the Indian Armed Forces.
  • Formulate and implement policies and procedures for defence acquisitions.
  • Monitor the progress of defence acquisitions.
  • Oversee the implementation of the Defence Procurement Procedure (DPP).

Reasons for the creation of the Defence Acquisitions Council 

The DAC was created to address the following shortcomings of the previous defence acquisition system:

  • Lack of a clear and transparent decision-making process.
  • Delays in the procurement of defence equipment.
  • Escalation of costs.
  • Lack of coordination between different agencies involved in the procurement process.

3. About Defence acquisition

Defence acquisition is the process of acquiring goods and services for the Indian Armed Forces. It is a complex and time-consuming process that involves the identification of requirements, the preparation of specifications, the selection of vendors, the negotiation of contracts, and the delivery of equipment. The Indian defence acquisition process is governed by the Defence Procurement Procedure (DPP), which is a set of guidelines that outlines the process for acquiring defence equipment.

The key stages of the defence acquisition process:

  •  The first step is to identify the requirements of the Armed Forces. This is done through a detailed assessment of the operational needs of the Armed Forces and the availability of resources.
  • Once the requirements have been identified, the next step is to prepare the specifications for the equipment to be acquired. The specifications must be clear, detailed, and unambiguous so that the vendors can understand what is required.
  • The next step is to select the vendors who will be invited to participate in the bidding process. The vendors are selected based on their technical ability, financial strength, and experience.
  • Once the vendors have been selected, the next step is to negotiate the contracts. The contracts must be fair and reasonable, and they must protect the interests of the government.
  • The final step is to deliver the equipment to the Armed Forces. Once the equipment has been delivered, it must be tested and accepted by the Armed Forces.

4. The Defence Procurement Procedure (DPP)

The Defence Procurement Procedure (DPP) is the guideline for defence acquisitions in India. The DPP was first introduced in 2006 and has been revised several times since then. The DPP outlines the process for defence acquisitions, from the identification of a requirement to the final acceptance of a product.

The DPP is designed to ensure that defence acquisitions are conducted in a transparent, efficient, and cost-effective manner. The DPP also seeks to promote indigenous defence production and to maximize the involvement of Indian companies in the defence sector.

Key features of the DPP

  • The DPP emphasizes the need for transparency in all stages of the defence acquisition process. This includes publishing all relevant documents online and making them available to the public.
  • The DPP aims to streamline the defence acquisition process and reduce delays. This includes simplifying the tendering process and reducing the number of approvals required.
  • The DPP seeks to ensure that defence acquisitions are conducted cost-effectively. This includes negotiating the best possible price for goods and services and promoting indigenous defence production.
  • The DPP promotes indigenous defence production by giving preference to Indian companies in the tendering process. The DPP also provides incentives for Indian companies to invest in research and development.
  • The DPP seeks to maximize the involvement of Indian companies in the defence sector. This includes encouraging Indian companies to form joint ventures with foreign companies.

5. The Way Forward

The DAC and the DPP play a vital role in ensuring that the Indian Armed Forces are equipped with the latest and best possible weapons and equipment. The DAC and the DPP are also important for promoting indigenous defence production and for maximizing the involvement of Indian companies in the defence sector.

 

For Prelims: Defence Acquisition Council, Defence Procurement Procedure, Light Combat Aircraft, Tejas Mk 1 A and 156, Light Combat Helicopters, Hindustan Aeronautics Limited, Kargil war
For Mains: 
1. Critically analyze the role of the Defence Acquisition Council (DAC) in streamlining and expediting defence acquisitions in India. (250 Words)
 
Previous Year Questions
 
1. The Light Combat Aircraft (LCA) designed and developed by HAL is also known as (MP Police Constable 2017)
A. Suryakiran        B. Aryabhatta      C. Tejas         D. Prakash
 
 
2. Which of the following statements is true about the recent procurement of Tejas fighter’s aircraft by IAF? (IB ACIO Grade II 2021) 
(1) The IAF has recently purchased 83 Tejas fighters aircraft from HAL
(2) The total deal is Rs. 78,000-crore
A. 1 only         B. Neither 1 nor 2         C.  Both 1 and 2      D. 2 only
 
 
3. What is the name of India's indigenously built Light Combat Helicopter? (OSSC BSSO  2022) 
A. Nag         B. Trishul         C. Prachand          D. Agni
 
 
4. The headquarters of the Hindustan Aeronautics Limited is located at _______________. (MP Police Constable 2017) 
A. Chennai        B. Bengaluru        C.  Dewas     D. Koraput
 
 
5. What was Kargil war otherwise known as? (MP Patwari  2017) 
A. Operation Vijay       B. Operation Vishwas   C. Operation Shaurya   D. Operation Paramveer
 
Answers:1-C, 2-A, 3-C, 4-B 5-A
 
Mains
1. Analyze the circumstances that led to the Tashkent Agreement in 1966. Discuss the highlights of the Agreement. (UPSC 2013)
 
Source: The Indian Express
 
 
 

SUSTAINABLE HARNESSING AND ADVANCEMENT OF NUCLEAR ENERGY FOR TRANSFORMING INDIA (SHANTI) ACT

 
 
1. Context
 
The SHANTI Act, passed in the Winter Session of Parliament, opens the nuclear power sector to private entities and alters the liability framework under the Civil Liability for Nuclear Damage Act (CLNDA). The changes — especially on supplier indemnity and liability caps — have raised concerns about safety and accountability.
 
 
2. Why is SHANTI significant?
 
 
  • The SHANTI framework seeks to open India’s nuclear energy sector to private participation and may also facilitate the inflow of foreign investment.
  • At present, the construction and operation of nuclear power plants are restricted exclusively to public sector entities.
  • India aims to scale up its nuclear capacity from the existing 8.8 GW—roughly 1.5% of total installed power capacity—to 100 GW by 2047, thereby raising nuclear energy’s share in electricity generation from around 3%.
  • Public sector nuclear utilities estimate that they will contribute nearly 54 GW of this expansion, with the remaining capacity expected to come from private players
 
3. What are the major differences in SHANTI?
 
 
  • Because of nuclear energy’s association with atomic weapons, the movement and use of nuclear fuel such as uranium are subjected to rigorous oversight to prevent its diversion for the production of weapons-grade plutonium.
  • Past disasters—including the 1979 Three Mile Island accident, the 1986 Chernobyl catastrophe, and the Fukushima core meltdown triggered by the 2011 tsunami—have reinforced a global culture of caution, leading to stringent controls over every stage of nuclear plant functioning.
  • Internationally, there is now broad agreement that in the event of a nuclear accident, the operator of the facility bears the primary responsibility for compensating affected individuals in proportion to the harm caused.
  • Such compensation must be provided promptly, without waiting for investigations into causation or fault.
  • Subsequently, however, the operator may seek reimbursement if it can demonstrate that the accident resulted not from managerial failure but from defective equipment supplied by another party
  • Under the earlier Civil Nuclear Liability framework, operators were permitted to pursue recourse against equipment providers in three situations: first, where an explicit contractual provision existed; second, where the incident was attributable to defects in the supplier’s equipment; and third, where the damage was caused by a deliberate act intended to inflict nuclear harm.
  • The SHANTI legislation removes the second ground for recourse. Even after the 2008 Indo-US civil nuclear agreement, which reopened India’s access to uranium supplies and advanced nuclear technology following restrictions imposed after the 1974 and 1998 nuclear tests, reactor manufacturers from the United States and France remained reluctant to enter the Indian market due to the potential exposure to massive liability claims.
  • By eliminating this clause—and even removing explicit references to “suppliers”—the proposed framework effectively addresses these concerns
 
4. Will SHANTI spur India’s nuclear vision?
 
  • Homi Bhabha, regarded as the architect of India’s nuclear energy programme, envisaged nuclear power as a cornerstone of the country’s energy security while also overcoming India’s limited uranium reserves through the eventual use of thorium.
  • His three-stage plan begins with the construction of pressurised heavy water reactors that utilise natural uranium (U-238) to generate electricity and produce plutonium as a by-product.
  • The second stage involves fast breeder reactors, which are designed to generate additional plutonium and uranium-233 while producing power. In the third and final stage, uranium-233 is combined with India’s abundant thorium resources to generate electricity, creating a largely self-reliant thorium-based nuclear system.
  • India has yet to transition fully into the second stage, having only a prototype fast breeder reactor so far. This project, delayed by nearly two decades, was earlier scheduled to become operational in 2025 but has now been postponed further, with commissioning expected in September 2026.
  • To meet its near-term nuclear energy targets, India is increasingly exploring Small Modular Reactors (SMRs).
  • These are scaled-down versions of conventional reactors currently deployed in countries such as the United States and France, and they require enriched uranium-235—a resource that India does not possess in sufficient quantities. Like India’s first-stage reactors, SMRs generate various radioactive by-products, including plutonium and strontium.
  • SMRs are expected to be manufactured in modular components across multiple locations and assembled at a central site, much like the global production processes used for aircraft or smartphones.
  • However, due to their smaller size, they produce less electricity per unit compared to large reactors. They also do not offer a fundamentally superior solution to nuclear waste management, although some designs incorporate enhanced safety features that allow automatic shutdown during emergencies.
  • While SMRs may contribute to electricity generation, they do little to advance India’s long-term objective of transitioning to thorium-based nuclear power
 
5. Way Forward
 

Under the previous legal framework, victims of a nuclear incident could seek compensation from the plant operator up to a ceiling of ₹1,500 crore. Any damage beyond this limit was to be covered by the Union government through an insurance mechanism, capped at ₹4,000 crore. The SHANTI legislation introduces a tiered liability structure instead. Operators of facilities with a capacity exceeding 3,600 MW would face a maximum liability of ₹3,000 crore. For plants in the 1,500–3,600 MW range, the liability limit is set at ₹1,500 crore; for capacities between 750 MW and 1,500 MW, it is ₹750 crore; for 150–750 MW plants, the cap is ₹300 crore; and facilities below 150 MW carry a liability limit of ₹100 crore. At present, all nuclear power plants in India have capacities of 3,000 MW or less.

Science Minister Jitendra Singh, who introduced the Bill in Parliament, explained that this differentiated structure was designed to avoid deterring private sector investment. However, during parliamentary discussions, concerns were raised that the actual costs of compensation in major nuclear accidents have historically run into several billions of dollars, far exceeding the proposed liability ceilings

 

 

For Prelims: Nuclear Waste Management, Prototype Fast Breeder Reactor, uranium, plutonium
For mains: 
1. Discuss the challenges associated with nuclear waste management in the context of India's nuclear energy program. How can these challenges be addressed effectively? (250 Words)
2. Ethical considerations play a crucial role in nuclear waste management. Discuss the ethical concerns surrounding the potential for environmental injustice and the responsibility of nations in dealing with nuclear waste.(250 Words)

 

Previous Year Questions

1. To meet its rapidly growing energy demand, some opine that India should pursue research and development on thorium as the future fuel of nuclear energy. In this on text, what advantage, does thorium hold over uranium? (UPSC 2012)

  1. Thorium is far more abundant in nature than uranium.
  2. On the basis of per unit mass of mined mineral, thorium can generate more energy compared to natural uranium.
  3. Thorium produces less harmful waste compared to uranium.

Which of the statements given above is/are correct?

(a) 1 only         (b) 2 and 3 only            (c) 1 and 3 only              (d) 1, 2 and 3

2. Which among the following has the world’s largest reserves of Uranium? (UPSC 2009)

(a) Australia
(b) Canada
(c) Russian Federation
(d) USA

Answers: 1-D, 2-A

Source: The Hindu

 

INDIA-US PARTNERSHIP

 
 
1. Context
 
A day after unilaterally releasing a fact sheet on the interim India-US trade agreement, mentioning “certain pulses” among American agricultural products that will see tariff cuts by New Delhi, the White House has updated the document, removing those two words
 
2.India-US Relationship
  • India and the United States has been multifaceted and has evolved over the years. It covers various areas such as strategic, economic, technological, and cultural cooperation.
  • India and the United States have developed a strategic partnership, marked by regular high-level diplomatic engagements and cooperation on regional and global issues. Both countries share common values such as democracy and a commitment to a rules-based international order
  • Defense and security ties between India and the U.S. have strengthened. Both countries participate in joint military exercises, and there is ongoing collaboration in defense technology and procurement. The Logistics Exchange Memorandum of Agreement (LEMOA) and the Communications Compatibility and Security Agreement (COMCASA) are examples of agreements aimed at enhancing defense cooperation.
  • Economic ties have expanded, with both countries being significant trade partners. Bilateral trade has increased, and efforts have been made to address trade imbalances. The U.S. has been a major source of foreign direct investment (FDI) in India, and both sides have expressed interest in further deepening economic collaboration.
3. Key Elements of Partnerships of India-US

3.1.Technology partnership

  • Micron Technology, in collaboration with the backing of the India Semiconductor Mission, plans to allocate over $800 million for the establishment of a new semiconductor assembly and test facility in India, contributing to a total investment of $2.75 billion. Additionally, Applied Materials is set to construct a Semiconductor Centre for Commercialization and Innovation in India, aimed at enhancing the diversification of the semiconductor supply chain between the two countries. Simultaneously, Lam Research intends to facilitate the training of 60,000 Indian engineers through its "Semiverse Solution," aligning with India's objectives for accelerated semiconductor education and workforce development
  • India has recently joined the Minerals Security Partnership (MSP) led by the United States, aimed at expediting the establishment of robust and sustainable global supply chains for critical energy minerals. Commencing in June 2022, MSP already includes 12 other partner nations and the European Union. As part of this collaboration, Epsilon Carbon Limited from India is set to inject $650 million into the creation of a greenfield facility for electric vehicle battery components, marking the most substantial Indian investment to date in the U.S. electric vehicle battery sector.
  • India and the United States have initiated collaborative efforts through public-private Joint Task Forces dedicated to the advancement and implementation of Open RAN systems, as well as the progress of advanced research and development in telecommunications. The joint leadership of India's Bharat 6G and the U.S. Next G Alliance in this public-private research endeavour is aimed at diminishing expenses, enhancing security, and fortifying the resilience of telecommunication networks.
  • India has officially endorsed the Artemis Accords, aligning itself with 26 other nations dedicated to fostering peaceful, sustainable, and transparent collaboration for the exploration of celestial bodies such as the Moon, Mars, and beyond. In a significant development, NASA is set to offer advanced training to astronauts from the Indian Space Research Organization (ISRO), with the objective of initiating a joint mission to the International Space Station in 2024. Furthermore, NASA and ISRO are actively working on establishing a strategic framework for cooperation in human spaceflight, with plans to finalize the agreement by the conclusion of 2023.
  • A collaborative effort has been instituted by both nations through the creation of a Joint Indo-US Quantum Coordination Mechanism. This mechanism is designed to streamline cooperative research endeavors involving the public and private sectors in both countries. Additionally, they have formalized an implementing arrangement to bolster joint research initiatives focusing on quantum technologies, Artificial Intelligence (AI), and advanced wireless technologies.
  • The National Science Foundation of the United States has disclosed 35 collaborative research projects in conjunction with India's Department of Science and Technology. Additionally, a fresh cooperative agreement has been formalized between the U.S. National Science Foundation and India's Ministry of Electronics and Information Technology, specifically targeting emerging technologies
  • Sterlite Technologies Limited of India has committed a $100 million investment towards establishing a manufacturing facility for optical fiber cables in close proximity to Columbia, South Carolina. This initiative is expected to support annual optical fiber exports from India amounting to $150 million
3.2.Defence Partnership
  • The Joint Statement expressed approval for the innovative proposal put forth by General Electric to collaboratively manufacture the F414 jet engine in India. General Electric and Hindustan Aeronautics Limited (HAL) have formalized a Memorandum of Understanding (MoU), and a manufacturing license agreement has been presented for Congressional Notification. This unprecedented initiative, marking the first time F414 engines will be produced in India, is poised to facilitate a more extensive transfer of U.S. jet engine technology than previously experienced
  • India has plans to acquire armed MQ-9B SeaGuardian Unmanned Aerial Vehicles (UAVs), aiming to enhance the country's intelligence, surveillance, and reconnaissance capabilities
  • The U.S. Navy has finalized a Master Ship Repair Agreement (MSRA) with Larsen and Toubro Shipyard in Kattupalli (Chennai) and is in the process of completing agreements with Mazagon Dock Limited (Mumbai) and Goa Shipyard (Goa). These arrangements will permit U.S. Navy vessels to undergo maintenance and repair at Indian shipyards during their voyages.
  • The inauguration of the India-US Defence Acceleration Ecosystem (INDUS-X) took place on June 21, 2023. This network involves participants from universities, incubators, corporations, think tanks, and private investors. The program is designed to foster collaborative innovation in defense technologies and expedite the integration of India's private sector defense industry with its U.S. counterpart
3.3. Cooperation in the Indo-Pacific
 

Titled 'Taking the Lead on the Global Platform,' the Joint Statement highlights several strategic actions undertaken by the two nations.

  • Indo-Pacific and Indian Ocean: The United States will become a participant in the Indo-Pacific Oceans Initiative, a regional effort initiated by Prime Minister Modi in 2015 to ensure a secure, stable maritime environment and advocate for its conservation and sustainable utilization. India will maintain its role as an observer in the Partners in the Blue Pacific. The U.S. and India plan to conduct an Indian Ocean Dialogue involving experts and stakeholders from the broader Indian Ocean region to enhance regional coordination.
3.4.Sustainable development
  • India and the United States will persist in their collaborative efforts to meet their individual climate and energy objectives. The United States appreciates India's commitment to jointly spearhead the Hydrogen Breakthrough Agenda, a multinational initiative aimed at making affordable renewable and low-carbon hydrogen accessible worldwide by 2030
  • The Joint Statement underlines the mutual dedication of both nations to establishing inventive investment frameworks. These frameworks aim to reduce the capital costs and draw substantial international private financing for projects related to renewable energy, battery storage, and emerging green technologies in India. Additionally, the statement acknowledges efforts to decarbonize the transportation sector and highlights India's establishment of the Global Biofuels Alliance, in which the U.S. is a founding member
3.5.Initiatives on health
  • The U.S. National Cancer Institute is set to encourage cooperation between American and Indian scientists through two recently awarded grants. These grants aim to create an Artificial Intelligence (AI)-enhanced digital pathology platform for purposes such as cancer diagnosis, prognosis, and forecasting therapeutic outcomes. Additionally, the grants will support the development of AI-driven automated radiotherapy treatment specifically for cervix, head, and neck cancers.
  • The U.S. National Institute of Diabetes and Digestive and Kidney Diseases is poised to enter into an agreement with the Indian Council of Medical Research. This collaboration aims to advance research in the realms of basic, clinical, and translational studies on diabetes. Additionally, the United States and India are set to convene a US-India Cancer Dialogue, facilitated by President Biden's Cancer Moonshot initiative. This dialogue will serve as a platform for experts from both countries to identify specific areas of collaboration, accelerating the pace of progress in the fight against cancer.
3.6.Fighting terror and drugs
  • The Joint Statement reaffirmed the commitment of the United States and India to jointly combat global terrorism, condemning terrorism and violent extremism in all its forms. President Biden and Prime Minister Modi reiterated the need for concerted action against UN-listed terrorist groups, including al-Qa’ida, ISIS/Daesh, Lashkar e-Tayyeba (LeT), Jaish-e-Mohammad (JeM), and Hizb-ul-Mujhahideen.
  • They strongly denounced cross-border terrorism and the use of terrorist proxies. The leaders called on Pakistan to take immediate action to prevent any territory under its control from being used for launching terrorist attacks. Additionally, they urged for the perpetrators of the 26/11 Mumbai and Pathankot attacks to be brought to justice.

4. Way forward

India and the U.S. often collaborate on various global and regional challenges, including United Nations initiatives, counterterrorism efforts, and regional stability.
 
Source: Indianexpress

INDIA-RUSSIA

 
 
1. Context
 
 
Stating that “sky is the limit” as far as India-Russia relations go, Russia Foreign Minister Sergei Lavrov on Wednesday said that except US President Donald Trump, nobody else has declared that India will stop buying Russian oil.
 

2. How is Indo-Russia Relations?

 

  • India and Russia have traditionally enjoyed a close relationship, characterized by cooperation across political, security, economic, and cultural spheres, it's important to avoid oversimplification. Examining the relationship through a nuanced lens reveals a more complex story.
  • The India-Russia partnership boasts a strong foundation, cemented by the "Declaration on the India-Russia Strategic Partnership" in 2000 and rooted in Cold War-era ties between India and the Soviet Union. This historical depth and shared strategic interests continue to hold value for both nations.
  • However, the post-Cold War landscape has introduced new complexities. Russia's close links with China and Pakistan, both considered geopolitical rivals of India, have caused friction. Additionally, India's diversifying foreign policy and growing engagement with the West create further strains.
  • The COVID-19 pandemic and Russia's invasion of Ukraine have further complicated the picture. While India has maintained a neutral stance on the Ukraine war, it faces increasing pressure to condemn Russia. This adds to the growing perception of a potential "downfall" in relations.
  • Instead of painting a solely negative picture, it's crucial to recognize the multifaceted nature of the relationship. Areas of cooperation still exist, particularly in defence, energy, and space exploration. Moreover, public opinion in India largely remains supportive of the partnership, highlighting its continued relevance despite the challenges.
 

3. Important Areas of Cooperation

 

  • The highest institutionalized dialogue mechanism in the strategic partnership between India and Russia is the Annual Summit meeting between the Prime Minister of India and the President of the Russian Federation.
  • Prime Minister Narendra Modi and President Vladimir Putin held their first informal Summit in Sochi, Russia, in 2018.
  • In 2019, President Putin awarded PM Narendra Modi Russia’s highest state decoration, The Order of St Andrew the Apostle, for his distinguished contribution to the development of a privileged strategic partnership between Russia and India.
  • Two Inter-Governmental Commissions – on Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC) and Military-Technical Cooperation (IRIGC-MTC) – meet annually.
  • India-Russia military-technical cooperation has evolved from a buyer-seller framework to joint research, development, and production of advanced defence technologies.
  • Joint military programs include the BrahMos cruise missile, 5th generation fighter jet, Sukhoi Su-30MKI, Ilyushin/HAL Tactical Transport Aircraft, KA-226T twin-engine utility helicopters, and some frigates.
  • India has acquired military hardware from Russia, including the S-400 Triumf, Kamov Ka-226 (made in India under Make in India), T-90S Bhishma, INS Vikramaditya aircraft carrier, and submarines.
  • Russia is a crucial partner for India in peaceful nuclear energy use, with cooperation in the Kudankulam Nuclear Power Plant (KKNPP) in India and the Rooppur Nuclear Power Project in Bangladesh.
  • Cooperation in outer space includes satellite launches, the GLONASS navigation system, and joint activities in the field of the Human Spaceflight Programme.
  • Institutional mechanisms for bilateral Science and Technology cooperation include the Working Group on Science and Technology, the Integrated Long-Term Programme (ILTP), and the Basic Science Cooperation Programme.
  • Cultural ties involve the teaching of Hindi and other Indian languages in Russian institutions, as well as the promotion of Indian dance, music, yoga, and Ayurveda in Russia.
 

4. India's Significance for Russia

 

  • The border tensions in eastern Ladakh marked a turning point in India-China relations, highlighting the potential role of Russia in defusing such conflicts. Russia organized a trilateral meeting among the foreign ministers of Russia, India, and China, signalling a diplomatic effort to address the situation in the Galwan Valley.
  • Beyond traditional cooperation in weapons, hydrocarbons, nuclear energy, and diamonds, new avenues for economic engagement are emerging. Sectors like mining, agro-industrial activities, and high technology (robotics, nanotech, and biotech) are expected to play a significant role. India's expanding footprint in the Russian Far East and the Arctic is set to boost connectivity projects.
  • India and Russia are collaborating to address challenges in Afghanistan, emphasizing the need for the early finalization of the Comprehensive Convention on International Terrorism to strengthen their collective efforts against terrorism.
  • Russia lends support to India's aspirations for permanent membership in a reformed United Nations Security Council and membership in the Nuclear Suppliers Group, reflecting shared interests in global governance.
  • Russia has been a major arms exporter to India, even though its share in India's arms imports declined by over 50% in the last five years compared to the previous period (2011–2015). Over the past two decades, India has imported arms and weapons worth USD 35 billion from Russia, according to the Stockholm International Peace Research Institute, underscoring the enduring defence partnership between the two countries.
 

5. Russia's Significance for India

 

Strategic Partner

  • Military Powerhouse: Russia provides crucial access to advanced weapons and military technology, vital for India's security interests against regional rivals like China and Pakistan.
  • Nuclear Fuel Supplier: Russia is a key source of nuclear fuel for India's growing nuclear power program, ensuring energy security and independence.
  • Political Ally: Russia supports India's position on key issues like Kashmir and UN reform, offering diplomatic backing and counterbalancing Western pressure.
  • Counterbalance to the West: Russia's partnership helps India diversify its foreign relations and hedge against Western dominance, promoting a multipolar global order.

Economic Partner

  • Trade and Investment: Bilateral trade is growing, though below potential. Both nations aim to increase it significantly, offering mutual economic benefits.
  • Emerging Areas of Cooperation: New sectors like mining, agro-industrial, and high technology (robotics, nanotech, biotech) hold promising potential for collaboration and economic growth.
  • Connectivity Projects: India's participation in Russia's Arctic and Far East development initiatives can open up new avenues for trade and resource access.

Security Collaborator

  • Joint counter-terrorism efforts: Both nations face similar threats and collaborate on intelligence sharing, training, and operations to combat terrorism.
  • Afghanistan crisis: Both have concerns about the situation in Afghanistan and cooperate to promote stability and prevent the resurgence of extremist groups.
  • Space Exploration: Collaborative projects in satellite launches, navigation systems, and human spaceflight programs strengthen scientific and technological advancements.

 

6. Trade Between India and Russia

 

India-Russia Trade Relations

  • The two countries intend to increase bilateral investment to US$50 billion and bilateral trade to US$30 billion by 2025.
  • Bilateral trade during FY 2020 amounted to USD 8.1 billion.
  • From 2013 to 2016 there was a major decline in the trade percentage between the two countries. However, it increased from 2017 onwards and a constant increase was noticed in 2018 and 2019 as well.

Increasing Dependency on Russian Oil Imports

  • India's oil imports have shifted significantly towards Russia, surpassing traditional suppliers such as Saudi Arabia and Iraq.
  • Russia's geopolitical situation, including Western sanctions following the military operation in Ukraine, has prompted Moscow to offer steep discounts on its crude oil, finding a ready market in India.
  • India, unlike Western countries, has chosen not to impose formal sanctions on Russia, leading to a nearly 13-fold increase in crude oil imports from Russia in 2022-23, reaching over $31 billion.

Payment Challenges and Geopolitical Ramifications

  • India faces difficulties in paying for Russian oil due to breaching the $60 per barrel price cap set by the US and European nations, as Russia offers lower discounts on its crude.
  • Using currencies like the Chinese yuan for payments raises geopolitical concerns due to strained ties with Beijing.
  • Western sanctions have limited Russia's access to the global secure interbank system (SWIFT), making it challenging for Indian exporters to receive payments for goods already shipped to Russia.

The Rupee-Rouble Mechanism and Trade Deficit Concerns

  • Negotiations between India and Russia to reactivate the rupee-rouble trade arrangement, an alternative payment mechanism, have faced obstacles.
  • Concerns over the rouble's convertibility and volatility, along with India's ballooning trade deficit, have hindered the implementation of the rupee-rouble payment mechanism.
  • India's trade deficit with Russia reached $43 billion in 2022-23, leading to significant amounts of Indian rupees in Russian banks that cannot be utilized for Russia's war efforts.

De-Dollarisation Efforts and Alternative Payment Methods

  • The US sanctions have prompted countries to explore de-dollarisation, replacing the US dollar as the global reserve currency.
  • India has released a roadmap for the internationalization of the Indian rupee to enhance its acceptance globally.
  • Indian refiners have settled non-dollar payments for Russian oil using currencies like the Chinese yuan and the UAE dirham.

 

7. Challenges and Uncertainties

 

Geopolitical

  • Ukraine War: Russia's invasion of Ukraine has strained its relations with the West, potentially impacting India's ties with both nations. India's neutral stance faces increasing pressure to condemn Russia, creating a delicate balancing act.
  • China's Shadow: Russia's close relationship with China, India's geopolitical rival, creates friction and uncertainty. While Russia played a mediating role in the Ladakh border tensions, its alignment with China raises concerns for India's security interests.
  • Diversifying Foreign Policy: India's growing engagement with the US and other Western powers could further complicate the relationship with Russia, potentially leading to strategic competition and conflicting interests.

Economic

  • Trade below potential: Bilateral trade between India and Russia remains below its potential, despite ambitious goals to increase it significantly. This could be due to factors like infrastructure limitations, lack of diversification, and competition from other trading partners.
  • Investment gaps: While both countries desire increased investment, attracting Russian investment to India remains a challenge. This could be due to concerns about regulatory hurdles, bureaucratic complexities, and competition from other investment destinations.
  • Energy dependence: India's reliance on Russia for critical resources like nuclear fuel and military equipment creates vulnerability to potential disruptions in supply or price fluctuations. Diversifying energy sources and arms imports is a long-term goal, but comes with its own challenges.

Strategic

  • Shifting military landscape: India's efforts to diversify its arms imports and develop its own defence capabilities could gradually reduce its dependence on Russian military technology. This could potentially weaken the strategic partnership in the long run.
  • Differing priorities: While both nations share some strategic interests, their priorities may not always align perfectly. This could lead to disagreements on issues like regional security, international sanctions, or global governance.
  • Domestic politics: Internal political dynamics in both countries can also impact the relationship. Changes in leadership or shifts in public opinion could lead to changes in priorities or policies, potentially creating uncertainty and instability.

 

8. The Way Forward

 

Indo-Russia relations are a complex tapestry woven with historical ties, strategic interests, and evolving geopolitical realities. While facing challenges, the partnership holds significant value for both sides and is likely to continue adapting to the changing global landscape.

 

For Prelims: India-Russia, Kudankulam Nuclear Power Plant, Cold War, Russia-Ukraine War, Covid-19 Pandemic

For Mains: 

1. Discuss the challenges and opportunities for increasing bilateral trade and investment between India and Russia. What specific initiatives can be undertaken to overcome existing obstacles and achieve the set goals? (250 Words)
2.  Critically evaluate the impact of Russia's invasion of Ukraine on its relations with India, considering both geopolitical implications and domestic public opinion.  (250 Words)
 
 
 
Previous Year Questions
 

1. Recently, India signed a deal known as ‘Action Plan for Prioritization and Implementation of Cooperation Areas in the Nuclear Field’ with which of the following countries? (UPSC 2019)

(a) Japan
(b) Russia
(c) The United Kingdom
(d) The United States of America

Answer: B

2. Consider the following pairs: (UPSC 2014)

Region often in news            Country

1. Chechnya                         Russian Federation

2. Darfur                               Mali

3. Swat Valley                      Iraq

Which of the above pair is/are correctly matched?  

A. 1 only         B. 2 and 3 only        C. 1 and 3 only          D. 1, 2 and 3

Answers: 1-B, 2-A

Mains

1. What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. (UPSC 2020)

 

Source: The Indian Express

 

 

RCEP

 

1. Context

Trade diplomacy is a game of chess. The real world of trade negotiations rarely conforms to David Ricardo’s theory of comparative advantage where the French sell their wine to England and the British sell their cloth to France. Trade negotiations are also about asserting national power and security.

2. Regional Comprehensive Economic Partnership (RCEP)

  • The Regional Comprehensive Economic Partnership (RCEP) is a significant free trade agreement (FTA) that was signed on November 15, 2020.
  • It is a comprehensive trade pact involving 15 countries from the Asia-Pacific region, including 10 member states of the Association of Southeast Asian Nations (ASEAN) and five of ASEAN's trading partners: China, Japan, South Korea, Australia, and New Zealand.
  • The purpose of the deal is to create an “integrated market” spanning all 16 countries. This means that it would be easier for the products and services of each of these countries to be available across the entire region.

3. Key features of the RCEP:

  • Economic Scope: RCEP is the largest free trade agreement in the world in terms of economic significance. It covers a vast region, comprising approximately 30% of the global population and accounting for about 30% of the world's GDP. This agreement aims to promote economic integration and facilitate trade and investment among member countries.
  • Tariff Reductions and Market Access: RCEP seeks to eliminate or reduce tariffs and other trade barriers among its member nations. This reduction in trade barriers is expected to create more opportunities for businesses to access larger markets and promote economic growth.
  • Rules of Origin: RCEP establishes rules of origin to determine the country of origin of goods. This is crucial to prevent non-member countries from benefiting from the preferential trade provisions and ensures that only products manufactured within the RCEP member countries can avail of the agreed-upon trade benefits.
  • Trade in Services: The agreement also addresses trade in services, promoting greater access and liberalization in sectors such as telecommunications, finance, professional services, and e-commerce, among others.
  • Intellectual Property Rights: RCEP includes provisions related to the protection of intellectual property rights, which is important for fostering innovation and creativity within member countries.
  • Investment: The agreement aims to improve investment opportunities and create a more predictable and secure investment environment among member countries. This includes provisions related to investor-state dispute settlement (ISDS) mechanisms.
  • Economic Cooperation: RCEP promotes economic cooperation in various areas, such as customs procedures, trade facilitation, technical barriers to trade, and economic and technical assistance for less-developed member countries.

4. Outstanding issues in RCEP

  • Tariff Reductions: Agreeing on tariff reduction schedules is another significant challenge. Each member country may have different priorities and sensitivities regarding the products they want to protect or liberalize. Negotiating tariff reductions requires balancing the interests of all parties involved to achieve a mutually beneficial outcome.
  • Services and Investment: The liberalization of trade in services and investment is a contentious issue in many trade agreements. RCEP member countries have different levels of development and varying domestic regulations. Negotiating how much to open up services and investment sectors to foreign participation while safeguarding national interests can be challenging.
  • Intellectual Property Rights: Balancing intellectual property rights protection with access to affordable medicines and technologies is a delicate matter. RCEP countries need to find a middle ground that promotes innovation while ensuring access to essential medicines and technologies for their populations.
  • Investor-State Dispute Settlement (ISDS) Mechanism: The inclusion of ISDS in trade agreements has been a contentious issue globally. RCEP member countries need to agree on the scope and limitations of ISDS to protect investor rights while safeguarding the government's right to regulate in the public interest.
  • Data Protection and E-commerce: With the increasing importance of digital trade and e-commerce, addressing data protection, privacy, and cross-border data flows is a crucial issue for RCEP members. Negotiating agreements on these issues requires balancing economic interests with the need to protect individual privacy and national security.

5. Concerns of India Including Civil Society, and Political Opposition regarding RCEP:

  • Impact on Domestic Industries: India's domestic industries have expressed concerns that the Regional Comprehensive Economic Partnership (RCEP) could lead to increased competition for goods and services imported from other member countries. There are fears that cheaper imports could negatively affect certain sectors, potentially leading to job losses and economic challenges for domestic industries.
  • Trade Deficit: India has had a persistent trade deficit with several RCEP member countries, especially China. Critics worry that the agreement may exacerbate the trade imbalance, leading to an influx of cheaper Chinese goods that could further widen the deficit and harm domestic manufacturing.
  • Agriculture Sector: India's agricultural sector has raised concerns over the potential impact of RCEP on farmers. They fear that cheaper agricultural imports from other member countries could harm domestic farmers by reducing the prices and competitiveness of Indian agricultural products.
  • Impact on Small and Medium Enterprises (SMEs): Small and Medium Enterprises (SMEs) form a significant part of India's economy. Some worry that increased competition from larger corporations in other RCEP member countries might pose challenges for Indian SMEs, limiting their growth prospects.
  • Safeguarding Agriculture and Dairy: India's dairy and agricultural sectors have been vocal about protecting their interests in any trade agreement. They fear that certain provisions in RCEP could adversely affect the livelihoods of farmers and the dairy industry.

6. Why did India withdraw from the RCEP?

The following are the three main reasons for India's withdrawal from RCEP:
  • The free trade agreement with the member countries might force them to dump cheap and low-quality products from countries like China, Thailand, South Korea, and Japan, etc., This will result in the occupation of the Indian market by foreign products while the Indian products will be out of the market.
  • It will increase the number of imports and exports simultaneously, resulting in a decrement in the forex reserves in India.
  • India's concern about its country of origin has not been seriously entertained by the RCEP.
For Prelims: Regional Comprehensive Economic Partnership (RCEP), Association of Southeast Asian Nations (ASEAN), Investor-state dispute settlement (ISDS) mechanism, and Small and Medium Enterprises (SMEs).
For Mains: 1. Discuss the significance of the Regional Comprehensive Economic Partnership (RCEP) as a major free trade agreement in the Asia-Pacific region. Analyze its potential impact on trade, investment, and economic cooperation among member countries. (250 words).
 

Previous year Questions

1. The term 'Regional Comprehensive Economic Partnership; often appears in the news in the context of the affairs of a group of countries known as (UPSC 2016)
A. G20
B. ASEAN
C. SCO
D.SAARC
Answer: B
 
2. Consider the following statements about Regional Comprehensive Economic Programme (RCEP). (WBCS 2019)
1. It is an economic cooperation for China-led free trade.
2. It is a counter-cooperation for the America-led trans-Pacific partnership.
3. In the countries involved in this cooperation Indian Professionals will have a job market.
Select the correct answer using the codes given below:
A. 1 and 2
B. 1 and 3
C. 2 and 3
D. All of the above
Answer: D
 
3. Recently launched Regional Comprehensive economic partnership, RCEP is the largest regional trading block at present. Which of the following countries is NOT a member of this free trade agreement? (Haryana Civil Services, 2021)
A. Australia
B. New Zealand
C. Brunei
D. Bangladesh
Answer: D
Source: The Indian Express
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