CEPA is the Growth Engine For India-UAE Bilateral Trade

The Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates (UAE) represents a close, kinship-based relationship between the two nations that goes beyond simple economic cooperation. The agreement’s success in promoting economic growth and creating investment opportunities has opened up new avenues for cross-sector cooperation and collaborations.

Background: Relations between India and the United Arab Emirates

Historical ties: The Indian Ocean’s network of trade has shaped centuries of cultural and economic interaction between India and the United Arab Emirates. Arab traders have been travelling to India’s west coast since the fourth century AD, establishing historical relations between the two nations that date back to the pre-modern era.

India’s third-largest trading partner: The UAE emerged as India’s third-largest trading partner, highlighting the two countries’ positive outlook towards economic cooperation.

Trade partnership strengthened with oil: The India-UAE partnership was forged first on the trade of traditional items, and then strengthened with oil. It found a formal dimension after the creation of the UAE Federation in 1971, and then accelerated in the 1990s when a liberalised India embraced the opportunity to export to the UAE and markets beyond.

Relationship is today more than an economic partnership: It speaks to the Emirates’s deep, fraternal, and strategically important relationship with India, reinforcing the UAE’s position as a key partner in India’s foreign policy. The two countries share strong cultural and people-to-people ties, with a significant Indian diaspora in the UAE.

key partner in India’s development agenda: The UAE has been a key partner in India’s development agenda, including investments in the oil and gas sector, renewable energy, and infrastructure. The UAE has also been supportive of India’s efforts in combating terrorism and enhancing security cooperation.

India- UAE Comprehensive Economic Partnership Agreement (CEPA)

The India-UAE Comprehensive Economic Partnership Agreement (CEPA) is a bilateral trade agreement that aims to strengthen economic ties between the two countries.

The CEPA covers a wide range of subjects, including trade in goods, trade in services, investment, intellectual property rights, and competition policy.

The CEPA has been in the making for several years, with negotiations starting in 2017 and the agreement finally coming into force on May 1, 2022. The agreement builds on the decades of mutual enterprise between the two countries, with the UAE emerging as India’s third-largest trading partner.

How India- UAE CEPA benefits both the countries?

Increased trade: The CEPA is expected to significantly increase trade volumes between India and the UAE, with the potential to create new investment opportunities and increase business partnerships. This will help both countries to diversify their trade relationships beyond their traditional trading partners.

Diversified trade: The CEPA covers a wide range of subjects, including trade in goods, trade in services, investment, intellectual property rights, and competition policy, allowing for a more diversified trade relationship between the two countries.

Access to new markets: The CEPA is inspiring innovators and investors, catalysing SMEs, startups, and India Inc to make decisive inroads into new markets, particularly the Emirati market, and from there to the Middle East, Africa, and Europe. This will benefit both countries in terms of access to new markets and opportunities.

Support for entrepreneurship: The CEPA provides support for startups in both India and the UAE, enabling them to explore growth and diversification into each other’s markets, as well as other markets in the region and beyond. The India-UAE Startup Bridge will also enable them to attract investment from venture capitalists and angel investors.

Addressing developmental challenges: The CEPA provides a trade lens to tackle issues such as energy and food security, agriculture, and sustainability, making it a strategic catalyst in addressing vital developmental challenges.

Aspirational Cities Programme (ACP): A Step in the Right Direction

With a comprehensive approach to urban administration, Maharashtra’s Aspirational Cities Programme (ACP) seeks to address the problems caused by growing urbanisation. The ACP is planned to concentrate on better governance, deal with enduring civic challenges, and expand financial options for the urban local governments. The Maharashtra economy might be significantly impacted by the ACP’s performance, which would also make urban living more comfortable.

India’s urban population

377 million people lived in urban areas in India as per the 2011 Census, or 31.16% of the country’s total population. By 2030, over 590 million people would reside in urban areas.

While cities constitute about 3 per cent of the land in the country, they generate 70 per cent of the Gross Domestic Product (GDP) and contribute substantially to economic growth and opportunities.

There is a robust relationship between the index of cities’ liveability and the country’s GDP per capita suggesting that long-term growth is only feasible if the city attributes in terms of providing equitable access to basic services, residences, and improved economic management are woven seamlessly through digital service delivery platforms.

Challenges of urbanization in Maharashtra

Deficient Infrastructure: Maharashtra’s cities are grappling with issues of deficient infrastructure, such as inadequate roads, public transport, water supply, and waste management systems.

Air Pollution: Urbanization has led to an increase in air pollution in Maharashtra’s cities, primarily due to vehicular emissions and industrial activities.

Social Inequities: The growth of informal settlements and slums in Maharashtra’s cities has led to social inequities, with the urban poor lacking access to basic services, such as healthcare, education, and housing.

Mobility and Migration: Maharashtra’s cities continue to face the challenge of frequent mobility and migration, with an inward net movement of people for better livelihood opportunities.

Vulnerabilities to Disasters and Climate Change: Rapid urbanization has increased the vulnerability of Maharashtra’s cities to disasters and climate change, such as floods and heatwaves.

Poor Urban Planning: Many of the challenges faced by Maharashtra’s cities are a result of poor urban planning, with a lack of coordination between various government departments and inadequate implementation of policies and programmes.

What is Aspirational Cities Programme (ACP)?

The Aspirational Cities Programme (ACP) is an initiative of the Government of Maharashtra aimed at addressing the challenges of rapid urbanization in the state by adopting a holistic approach to urban governance.

The ACP has identified 57 cities that have been proposed for the programme. Service level benchmarking will be done for the cities based on the data collected on the Performance Assessment System of the Government of Maharashtra.

The performance of the 57 selected cities would be monitored and ranked quarterly through a standard digital monitoring platform with indicators on the themes of urban infrastructure, education, urban services, skill development, and climate change.

The ACP is based on three priority areas: inclusive urban development, scientific data methods for assessing and monitoring outcomes, and citizen participation in civic affairs.

The Maharashtra government’s Aspirational Cities Programme (ACP) focuses on three priority areas

Inclusive Urban Development: The ACP aims to bring an integrated approach to urban programming that involves all development sectors. This is aimed at ensuring that the benefits of urban development reach all sections of society, including the most vulnerable.

Scientific Data Methods: The ACP seeks to adopt scientific data methods for assessing and monitoring the outcomes of both state and central schemes. This will provide a better understanding of the impact of various policies and programmes on the ground.

Citizen Participation: The ACP aims to enhance the voice and participation of citizens in civic affairs through physical and digital means. This is aimed at ensuring that governance is citizen-centric and responsive to the needs and aspirations of the people.

Other key features of Maharashtra’s ACP

Improved Governance: The ACP is set to focus on improved governance, address persistent civic issues, and increase funding avenues for the urban local bodies. This is aimed at ensuring that the governance of cities is efficient, transparent, and accountable.

Service Level Benchmarking: Service level benchmarking will be done for the cities based on the data collected on the Performance Assessment System of the Government of Maharashtra. This will enable the state government to monitor and rank the performance of the 57 selected cities quarterly through a standard digital monitoring platform.

Provision of Adequate Potable Tap Water: The ACP agenda includes provisioning adequate potable tap water to all households by taking advantage of the ambitious Jal Jeevan Mission.

Reformed Property Tax: The ACP aims to reform property tax by delinking it from the reasonable rental value method and adopting the market value of the property as a base for assessment.

Article 355 imposed in Manipur

The High Court’s recent decision to follow a 10-year-old recommendation to grant the non-tribal Meitei community Scheduled Tribe (ST) status precipitated recent turmoil in the state of Manipur.

Reliable sources claim that the Centre has implemented Article 355 throughout the state in an effort to regulate the situation due to the current, unprecedented fire crisis.

How does Article 355 work?

The Indian Constitution’s Article 355 gives the Union government the authority to defend each state against external aggression and domestic unrest.

It is a clause found in the section of the Constitution known as “Emergency Provisions” (Part XVIII).

It is based on the principle of “duty to protect” enshrined in the Constitution, which makes it mandatory for the Union government to protect every state from external and internal threats.

Restrictions under Article 355

Under Article 355, the Union government has the power to issue directions to any state to ensure compliance with the Union’s laws and regulations. However, there are certain restrictions on this power:

The directions can only be given when there is a failure of the state machinery to comply with or give effect to any Union law or regulation.

The directions should be of an urgent nature and may not extend beyond the necessary period for remedying the failure of the state machinery.

The state government should be given an opportunity to submit its views before the issuance of such directions.

The Union government cannot use this power to intervene in the internal affairs of a state unless there is a failure of the state machinery.

Duration of restriction

The duration of the assistance provided under Article 355 is not specified in the Constitution.

The Union government can withdraw its assistance when the situation is normalized or when the state government requests it to do so.

The duration of the assistance provided under Article 355 is subject to judicial review and can be challenged in court if it violates any fundamental rights or constitutional provisions.

Circumstances of imposition

Article 355 can be invoked by the President of India in certain circumstances, such as:

When a state fails to comply with or to give effect to any of the directions given by the Union under the Constitution.

When the security of India is threatened by external aggression or internal disturbance.

When there is a threat to the unity and integrity of India due to any violent activities by any group or organization.

When a state requests for assistance from the Union to maintain public order and the Union is satisfied that the situation in the state cannot be controlled by the state’s own forces.

When a state fails to provide adequate protection to minorities, particularly in cases of communal violence.

When a state government fails to ensure that the constitutional machinery is maintained in the state.

Reasonable restrictions

It is important to note that the use of Article 355 is subject to certain restrictions:

The President cannot use this article on his/her own initiative; it must be done on the advice of the Union Council of Ministers.

The use of Article 355 does not authorize the President to intervene directly in the affairs of the state.

The President can use this article only to give directions to the state government, and not to the state legislature or the judiciary.

The use of Article 355 should be limited in duration and scope, and should not result in the permanent erosion of the state’s autonomy or the violation of its constitutional rights.

Centrestage of the row: Meitei Community

Manipur is geographically divided into the Imphal Valley and the surrounding hills.

The Imphal Valley is dominated by the non-tribal Meitei community, which accounts for more than 64% of the population.

The hills, which comprise 90% of Manipur’s geographical area, are inhabited by more than 35% recognized tribes, which are largely Christians.

The Meiteis are largely Hindus followed by Muslims, while the 33 recognized tribes are broadly classified into ‘Any Naga tribes’ and ‘Any Kuki tribes.’

Behind the ST status: The Meitei Argument

The Manipur High Court directed the State government to submit a 10-year-old recommendation for the inclusion of the Meitei community in the Scheduled Tribe (ST) list.

The ST status is needed to “preserve” the community and “save the ancestral land, tradition, culture, and language” of the Meiteis.

The Meiteis were recognized as a tribe before the merger of the State with the Union of India in 1949.

Tribal groups’ opposition to the ST Status

Advantaged community: Many tribal groups say the Meiteis have a demographic and political advantage besides being more advanced than them academically and in other aspects.

Benefits at others cost: They feel the ST status to the Meiteis would lead to loss of job opportunities and allow them to acquire land in the hills and push the tribals out.

Already benefited: The language of the Meitei people is included in the Eighth Schedule of the Constitution, and many of them have access to benefits associated with the SC, OBC, or EWS status.

Political vendetta: The demand for ST status is a ploy to attenuate the fervent political demands of the Kukis and Nagas, as well as a tacit strategy of the dominant valley dwellers to make inroads into the hill areas of the State.

Immediate triggers of unrest

Some tribal groups with vested interests are trying to scuttle Chief Minister Nongthombam Biren Singh’s crusade against drugs.

The anti-drug drive began with destroying poppy fields and the theory that “illegal settlers” from Myanmar — ethnically related to the Kuki-Zomi people of Manipur — are behind clearing forests and government lands to grow opium and cannabis.

The first violent protest on March 10 was against the eviction of the residents of a Kuki village.

The large-scale arson and violence claiming the life of at least one person on May 3 and 4 followed a “tribal solidarity rally” against the reported move to include the Meiteis in the ST list.

What is the Washington Declaration?

The recent trip to the US by the president of South Korea to mark the 70th anniversary of bilateral ties between the two countries provides the setting. The “Washington Declaration” was signed during the visit as a nuclear deterrence measure against regional aggression by North Korea.

Key Terms of the Washington Declaration

US nuclear submarine deployment: The announcement said that an American nuclear ballistic submarine would be stationed in the Korean peninsula.

Intel mechanism: A nuclear consultative group would be formed to formulate principles of joint response tactics, and South Korea would receive Intel from the US regarding nuclear advancements.

Joint training: The US will strengthen South Korea’s nuclear deterrence capabilities through joint military training programs and an annual intergovernmental simulation.

Deterrence creation: The declaration reaffirmed the Non-Proliferation Treaty implying that South Korea would not venture into the creation of its own independent nuclear capabilities and would instead focus on deterrence measures through an alliance-based approach.

Implications of the treaty

Big power politics: While the existence of the agreement is based on the security needs of South Korea, the policy reflects big power politics where the interests of the larger power (US) takes precedence.

US proprietorship over the nukes: The US is the only ‘sole authority’ to use the nuclear arsenal of the US in the event of a nuclear confrontation.

Maintaining stability: The assurance that the US and its nuclear weapons would protect its allies by being responsible for maintaining stability in the region aligns with the larger goal of non-proliferation.

US Stance on South Korea’s Nuclear Capabilities

Fouled the SK nuclear program: South Korea’s nuclear development programme supported by former president Park Chung Hee was hindered due to US pressure.

Strategic arms reduction: The US withdrew one hundred nuclear weapons from South Korea in the 1990s as part of their “Strategic Arms Reduction Treaty” to make North Korea unarm itself.

Renewed interest after North Korea’s Rise: The Nuclear Posture Review 2022 reflects a shift in the US narrative where it is now concerned about the progressing nuclear capacities of North Korea.

Regional and domestic responses

China: It said it undermines the nuclear non-proliferation regime and the strategic interests of other countries.

North Korea: Kim Jong-Un’s sister warned that the declaration would only result in making peace and security of North-East Asia and the world be exposed to more serious danger.