Defence and technology cooperation is key to US-India partnership

The possibility of India’s continuing rise over this century seems to be on a stronger wicket today than it did a decade ago, marred as the early 2010s were by political instability and economic turmoil.

Historical background of dominance of world economy by the East

Prior to the era of colonial exploitation followed by self-inflicted stagnation due to communist economic policies adopted across the region, the ancient civilisations of India and China dominated the world economy

There existed a deep history of scientific innovation and technological prowess, which spread by osmosis and intercourse from the East to the West.

The West, led principally by Great Britain, then stole a march over Asia with the advent of the Industrial Revolution.

Emergence of the US: A pyrrhic victory for Britain in the Second World War marked the formal transfer of the Western bloc’s leadership to the US.

Geopolitics in 2020s

Emergence of China: China is now home to a manufacturing-led and technology-driven economy, competing head-on with the US in areas like biotech, robotics, artificial intelligence, and advanced materials.

India, which faced an economic setback when the liberalisation process largely came to a halt between 2004-2014, is back on its feet, with consistent commitment and concerted policy action focused on building domestic capabilities in critical technologies as well as in key manufacturing industries and pursuing important structural economic reforms.

Common threat of China: From seeing non-democratic China as a benign partner, the US now sees it as a threat, the present preoccupations in Europe notwithstanding.

India, which for a time welcomed Chinese involvement in its economy, has also recalibrated after the 2020 Galwan face-off.

Unlike India and the US, which are both well-established republics with deep democratic cultures, China is “a party with a state attached to it”.

Concerns for India:  Being inextricably linked by geography, Beijing’s ambition to dominate its periphery and proximate region is of particular concern to India.

What this mean for India-US relations?

Natural allies: Given this background, India and the US are natural allies to confront the challenges posed by an expansionist and aggressive China in the Indo-Pacific and beyond.

New areas of cooperation: There are clear signals of unprecedented cooperation between the two countries in areas like national security, defence production and most prominently, new-age information technology and internet industries where American financial firms and blue-chip corporates are contributing growth capital as well as know-how.

Closer cooperation in scientific research and critical emerging technologies is imperative.

Reducing India’s dependence for defence equipment: In particular, as some American lawmakers highlighted when providing India with exemption under CAATSA that the American defence industry should contribute to reducing India’s dependence on Russian armaments and equipment.

Technology cooperation: Connected to the expansion of defence-industrial ties is the broadening of technology collaboration in areas like artificial intelligence, drones, advanced materials, space technology, semiconductors, and biotech in India, beyond the consumer tech and software sectors.

Conclusion

Demographic and economic trends firmly position India as a global force that will have the weight to stride alongside America and China, who would constitute the other two geopolitical — and ideological — poles over the 21st century.

ICJ’s latest judgment on Rohingya Genocide

Judges at the United Nations’ highest court have dismissed preliminary objections by Myanmar to a case alleging for genocide against the Rohingya ethnic minority.

Who are the Rohingyas?

Rohingya Muslims comprise one million out of the 53 million people that live in Myanmar, forming the world’s largest stateless population in a single country.

Universally reviled by the country’s Buddhist majority, they have been oppressed by the government since the late 1970s when the government launched a campaign to identify ‘illegal immigrants’.

Serious abuses were committed, forcing as many as 250,000 Rohingya refugees to flee to Bangladesh.

The 1982 Citizenship Law in former Burma made the Rohingyas stateless people.

They have often been called the most persecuted minority in the world.

The 1.1 million Rohingya Muslims squeezed precariously into the northwest state of Rakhine, in mainly Buddhist Burma, bordering majority Muslim Bangladesh, are stateless and unwanted.

Why are they persecuted by Myanmar?

To qualify for citizenship, Rohingya applicants had to renounce their identity And accept being labelled as ‘Bengalis’ on all official documents.

They also had to prove that they could trace the presence of their family in Rakhine back three generations, something which is extremely difficult as many Rohingya lack documents or had lost them in 2012.

Why did the Rohingya Crisis happen?

Since World War II they have been treated increasingly by Burmese authorities as illegal, interloping Bengalis, facing apartheid-like conditions that deny them free movement or state education.

The army “clearing operations” sparked the mass exodus of Rohingyas in both October 2016.

In August 2017, were launched after insurgents known as the Arakan Rohingya Salvation Army (ARSA) attacked several paramilitary check posts.

Rohingya activists claim the insurgents are mainly young men who have been pushed to breaking point by relentless oppression.

Security Implications

The Rohingya issue and its spill over impact on Myanmar`s western peripheral region and security implications figured in the discussions is not clear.

In all probability, the import of the ferment caused by the Rohingya migration, efforts of radical Islamists to influence some of the Rohingya youth, and the Pakistan ISI’s attempts to capitalise on the situation.

Rising anger in the Muslim world about the plight of the Rohingya has compounded fears of home-grown militancy as well as support from international jihadists.

Illegal movement of people, combined with human trafficking and cross-border migration, can weaken Myanmar’s relations with its neighbour Bangladesh and its ASEAN partners.

What is the case against Myanmar?

Last year, the Republic of the Gambia moved the ICJ against Myanmar over alleged violations of the Convention on the Prevention and Punishment of the Crime of Genocide.

The Gambia urged the ICJ to direct Myanmar to stop the genocide, ensure that persons committing genocide are punished, and allow the “safe and dignified return of forcibly displaced Rohingya”.

The Gambia and Myanmar are parties to the Genocide Convention that allows a party to move the ICJ for violations.

Disputes between the Contracting Parties are settled according to Article 9 of the Genocide Convention.

International support for Gambia’s case

The Netherlands and Canada are backing Gambia, saying in 2020 that the country took a laudable step towards ending impunity for those committing atrocities in Myanmar and upholding this pledge.

Canada and the Netherlands consider it their obligation to support these efforts which are of concern to all of humanity.

What next?

The ICJ’s ruling sets the stage for court hearings, airing evidence of atrocities against the Rohingya that human rights groups and a UN probe say amount to breaches of the 1948 Genocide Convention.

The International Court of Justice rules on disputes between states.

It is not linked to the International Criminal Court, also based in The Hague, which holds individuals accountable for atrocities.

Prosecutors at the ICC are investigating crimes committed against the Rohingya who were forced to flee to Bangladesh.

The ruling of the ICJ is binding on Myanmar, and cannot be appealed. However, no means are available to the court to enforce it.

What is the Controversy over GST levies on Food?

From July 18, a 5% Goods and Services Tax (GST) has been levied on several food items and grains that are sold in a pre-packed, labelled form even if they are not branded.

What is the news?

So far, these items, which include curd, lassi, buttermilk, puffed rice, wheat, pulses, oats, maize and flour, were exempted from the GST net.

The fresh tax levies have attracted an outcry from traders as well as consumers.

What is GST?

GST launched in India on 1 July 2017 is a comprehensive indirect tax for the entire country.

It is charged at the time of supply and depends on the destination of consumption.

For instance, if a good is manufactured in state A but consumed in state B, then the revenue generated through GST collection is credited to the state of consumption (state B) and not to the state of production (state A).

GST, being a consumption-based tax, resulted in loss of revenue for manufacturing-heavy states.

What are GST Slabs?

In India, almost 500+ services and over 1300 products fall under the 4 major GST slabs.

There are five broad tax rates of zero, 5%, 12%, 18% and 28%, plus a cess levied over and above the 28% on some ‘sin’ goods.

The GST Council periodically revises the items under each slab rate to adjust them according to industry demands and market trends.

The updated structure ensures that the essential items fall under lower tax brackets, while luxury products and services entail higher GST rates.

The 28% rate is levied on demerit goods such as tobacco products, automobiles, and aerated drinks, along with an additional GST compensation cess.

How did the rate hikes come about?

The 5% tax on unbranded packed food items was approved by the GST Council.

Some of the other items to have lost their tax-exempt status include bank cheques, maps and atlases, hotel rooms that cost up to ₹1,000 a night, and hospital room rents of over ₹5,000 a day.

The pre-packed items weighing over 25 kg would not attract GST.

Why such move?

This move was part of a broader set of changes in the GST structure to do away with tax exemptions as well as concessional tax rates.

The Centre and States had discussed the need to raise revenues from the GST, which at the time of its launch five years ago, was premised on levying a ‘revenue-neutral’ rate of 15.5%.

All affected food items, including wheat, pulses, rice, curd and lassi, will be exempt from GST when sold loose.

What has the government said on the issue?

FM has hit out at misconceptions about the GST levies on food items and dismissed suggestions that they were imposed unilaterally by the Centre.

The 5% levy, she said, was critical to curb tax leakages and was not taken by ‘one member’ of the GST Council alone as all States had agreed to the move.

When GST was rolled out, a GST rate of 5% was made applicable on branded cereals, pulses, flour.

This was later amended to tax only such items which were sold under a registered brand or brands on which enforceable right was not foregone by the suppliers.

This tax exemption triggered ‘rampant misuse’ by reputed manufacturers and brand owners leading to a gradual drop in revenues.

Monkeypox is ‘Public Health Emergency’

The World Health Organization’s Director-General has declared monkeypox a public health emergency of international concern (PHEIC) July 23, 2022.

What is PHEIC?

Definition: Under the International Health Regulations (IHR), a public health emergency is defined as “an extraordinary event which is determined, as provided in these Regulations: to constitute a public health risk to other States through the international spread of disease; and to potentially require a coordinated international response”.

What criteria does the WHO follow to declare PHEIC?

PHEIC is declared in the event of some “serious public health events” that may endanger international public health.

The responsibility of declaring an event as an emergency lies with the Director-General of the WHO and requires the convening of a committee of members.

Implications of a PHEIC being declared

The PHEIC is the highest level of alert the global health body can issue.

There are some implications of declaring a PHEIC for the host country.

Only polio and SARS-CoV-2 were ongoing PHEIC prior to monkeypox.

Declaring a PHEIC may lead to restrictions on travel and trade.