Daily Prelims Notes 26 December 2023

December 26, 2023
Posted by: OptimizeIAS Team
Category: DPN

No Comments

Daily Prelims Notes

26 December 2023

Table Of Contents

1. Migrants March in Mexico

Subject : IR

Section : Places in news

Context: Migrants are marching towards the US Border.

More about the news:

A large migrant caravan, consisting of people from Central America, Venezuela, Cuba, and other countries, is making its way through Mexico towards the US border.
The caravan, comprising around 6,000 individuals, signals challenges in the joint efforts by the Biden administration and the Mexican government to control the influx of migrants.
Departing from Tapachula, near Mexico’s southern border, the caravan includes many families with children.
The Mexican authorities, adopting past tactics, are observing the march, anticipating fatigue among the migrants before offering temporary legal status.
Despite previous agreements, the surge in migration disrupts bilateral trade and fuels anti-immigrant sentiments in the US.
The Biden administration and Mexican President López Obrador are set to discuss the situation, with arrests at the US border reaching up to 10,000 a day this month.

Some additional Facts:

Migrants in Mexico are entitled to health care, but many aren’t receiving it. The country’s Comprehensive Health Care Plan for the Migrant Population guarantees health care for the migrant population but has not been fully funded nor implemented.

Some facts about Mexico:

Mexico is a country in the southern portion of North America.
It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatemala, Belize, and the Caribbean Sea; and to the east by the Gulf of Mexico.
Mexico City is the capital of Mexico

2. “FLip” mutations of SARS-COV-2 may be evading immunity and leading to a surge in COVID cases, suggests researchers

Subject :S&T

Section : HEALTH

JN.1 Emergence:

The omicron sub-variant JN.1, featuring the L455S “FLip” spike protein mutation, is expected to become the predominant strain of the SARS-CoV-2 virus worldwide.
JN.1 emerged from the BA.2.86 lineage, rapidly surpassing its predecessors and related strains due to the mutation’s impact on the spike protein.
JN.1 is expected to make up a significant proportion of SARS-CoV-2 variants, raising concerns about its transmissibility and immune evasion.
While JN.1’s prevalence increases, its specific impact on infection rates or severity remains uncertain.

Mutations and ACE2 Receptors:

ACE2 is a protein found in the epithelial cells in different parts of the body, such as the lungs, heart, and kidneys.SARS-CoV-2 virus binds to ACE2 as an entry point through the virus’ spike-like protein on its surface.
Mutations like L455S/F alter the spike protein, potentially affecting ACE2 receptor binding. This could impact transmissibility, immune evasion, and the virus’s entry point into cells.

Transmissibility vs. Danger:

Dominance doesn’t inherently imply increased danger; viruses naturally mutate. However, the L455S/F mutations may enhance transmissibility.
JN.1 displays heightened transmissibility and potential ability to evade immunity conferred by vaccines, observed in breakthrough infections and reinfections.

EG.5 Variant:

Another omicron subvariant, EG.5, remains the most reported variant of interest globally but is declining in occurrence.

Source: Down To Earth

3. A dive into sanitation solutions: processing, managing and treating used water

Subject :Environment

Section: Pollution

Urban Sewer Systems:

Sewers: Underground pipe networks in densely populated urban areas transporting waste to treatment facilities.
Sewage Treatment: Conveys waste to sewage treatment plants (STPs) for purification and pollutant removal.

Sanitation System Types:

On-Site Sanitation Systems (OSS): Used in rural or spacious urban areas, including twin pits, septic tanks, bio-digester toilets, bio-tanks, and urine diversion dry toilets.
- The functionality of OSS: Collection and storage structures that passively treat used water, disposing of liquid waste into the surrounding soil. Faecal sludge or septage, mainly solids from human excreta, accumulates within pits and tanks.
Twin Pits and Septic Tanks:
- Twin Pits: Two pits are used alternately; liquid waste soaks into the ground while solids degrade at the pit’s bottom. Unused pit left for two years for safe, natural waste disposal.
- Septic Tanks: Separate solids and scum from liquid waste; require periodic removal of accumulated faecal sludge.
Other OSS Systems:
- Bio-digester Toilets, Bio-tanks, Urine Diversion Dry Toilets: Additional OSS types serving as collection and storage structures for waste treatment.

Treatment Facilities (FSTPs & STPs):

Faecal Sludge Treatment Plants (FSTPs): Use mechanical or gravity-based methods to treat faecal sludge; reuse treated solids and water for various purposes.
Sewage Treatment Plants (STPs): Employ physical, biological, and chemical processes to purify used water before discharge or reuse.
STP Variations and Functions:
- STPs can be mechanised or non-mechanised, chosen based on a city’s resources. FSTPs are smaller, often decentralised and colocated with waste management sites.
- Purpose: Removal of impurities from used water to prevent pollution and public health issues; historical shift from odour/aesthetics focus to public and environmental health.

Significance:

Effective waste management is crucial to protect water bodies and groundwater from pollution, emphasizing the importance of these sanitation systems.
These sanitation systems are essential in containing, treating, and managing used water to ensure public health safety and environmental protection from potential pollution.

Challenges:

Universal access to safe sanitation remains challenging due to poorly designed systems and inadequate operational practices.

Source: The Hindu

4. Environment Organisations

Subject :Environment

Section: Climate Change

Friday for Future (FFF):

FFF is a youth-led and -organised global climate strike movement that started in August 2018, when Greta Thunberg began a school strike for climate.
Goals:
- The goal of the movement is to put moral pressure on policymakers, to make them listen to the scientists, and then to take forceful action to limit global warming.
- This movement is independent of commercial interests and political parties and knows no borders.

Extinction Rebellion (XR):

It is a UK-founded global environmental movement, with the stated aim of using nonviolent civil disobedience to compel government action to avoid tipping points in the climate system, biodiversity loss, and the risk of social and ecological collapse.
It was established in Stroud (the U.K.) in May 2018 by Gail Bradbrook,[Simon Bramwell, and Roger Hallam, along with eight other co-founders from the campaign group Rising Up!

Just Stop Oil:

It is a British environmental activist group.
Using civil resistance, direct action, vandalism and traffic obstruction, the group aims for the British government to commit to ending new fossil fuel licensing and production.
Founded in February 2022 and began protesting at English oil terminals in April 2022.
The group has received particular attention, positive and negative, for its methods of activism.

Last Generation:

The Last Generation is a group of climate change activists mostly active in Germany, Italy, and Austria.
It describes itself as an “alliance” and was formed in 2021 from participants in the Hungerstreik der letzten Generation (“last generation hunger strike”).
The term was chosen because they considered themselves to be the last generation before tipping points in the earth’s climate system would be reached.
Goal: To promote a generational collective initiative to protect our earth, and to build a more substantial future, through popularizing reaching out to policy makers, maintaining an open forum to discuss issues pertinent to marginalized communities, and by enforcing these ideals through motivating students to delegitimize the stereotype that they are too young to make a tangible change to our society.
They have staged direct non-violent actions including numerous road blockades and using paint to vandalise yachts, notorious paintings, buildings, restaurants and private jets.

5. IMF Warning on India’s Debt

Subject : Economy

Section : External sector

The IMF warns that India’s general government debt may exceed 100% of GDP by 2028 in the medium term.
Long-term risks are identified due to the need for significant investment in climate resilience
New concessional financing, increased private sector investment, and carbon pricing are recommended.

Sovereign Debt Risks Disagreement:

The Indian government disagrees with the IMF, stating sovereign debt risks are limited.
Sovereign debt is mainly denominated in domestic currency, reducing vulnerability.
India disputes the IMF’s baseline, considering the risk of debt exceeding 100% of GDP extreme.
Points out the limited risks from sovereign debt, highlighting historical stability.

Exchange Rate Reclassification:

The IMF reclassifies India’s exchange rate regime to a “stabilized arrangement.”
India disputes this, emphasizing the importance of exchange rate flexibility.

Optimistic Outlook and Structural Reforms:

IMF provides a fairly optimistic outlook for India’s economy.
Potential for faster growth than the IMF’s forecast of 6.3% with key structural reforms.

Medium-Term Fiscal Consolidation Urged:

IMF calls for “ambitious” fiscal consolidation over the medium term to control public debt.
Identifies potential challenges, including global growth slowdown, supply disruptions, weather shocks, and inflationary pressures.
Despite the multitude of shocks, the global economy has faced in the past two decades, India’s public debt-to-GDP ratio at the general government level has barely increased from 81% in 2005-06 to 84% in 2021-22, and back to 81% in 2022-23.

Challenges in Credit Ratings:

India faces challenges in enhancing credit ratings due to elevated debt levels and servicing costs.
Agencies attribute India’s lower rating to weak fiscal performance, burdensome debt stock, and low GDP per capita.

Per Capita Income and Uneven Distribution:

India’s per capita income doubled since 2014-15, reaching Rs 1,72,000.
Uneven income distribution, exacerbated by the Covid-19 pandemic, remains a challenge.

Expert Perspectives on Sovereign Rating:

Experts suggest considering the improving quality of government expenditure in sovereign ratings.

Debt-to-GDP ratio

Debt-to-GDP ratio is a financial metric that compares a country’s total debt to its gross domestic product (GDP).

It is expressed as a percentage and provides insight into the ability of a country to manage its debt relative to the size of its economy.

The formula for calculating the Debt-to-GDP ratio is as follows:

Debt-to-GDP Ratio = (Total Debt/Gross Domestic Product) × 100

In this formula:

Total Debt refers to the cumulative debt of a country, including both internal and external debt.
Gross Domestic Product (GDP) is the total value of all goods and services produced within the country’s borders within a specific time frame.

A higher Debt-to-GDP ratio indicates that a country has a higher level of debt relative to its economic output.

While a certain level of debt is normal for most countries, an excessively high ratio can signal potential risks, such as challenges in servicing the debt or economic vulnerability. Central banks, policymakers, and economists closely monitor the Debt-to-GDP ratio as part of assessing a country’s fiscal health and economic stability.

6. The IMF’s sovereign debt risk assessment for India has spurred a sharp reaction

Subject :Economy

Section : External sector

Context:

The Finance Ministry, last Friday, issued a statement titled ‘Factual position vis-à-vis IMF’s Article IV consultations with India’.
The International Monetary Fund (IMF), under its Articles of Agreement, holds bilateral discussions with members, usually every year. IMF staffers collect economic and financial information, and discuss policies with top officials, before preparing a report that is discussed by the Fund’s executive board.

India’s debt

The combined debt of central and State governments stood at 81% of GDP in 2022-23, from 88% in 2020-21. Under favourable circumstances, the IMF reckons this could even go down to 70% by 2027-28.
The shocks faced by India so far in this century were global, and affected the entire world economy, be it the 2008 financial crisis or the pandemic, the Ministry pointed out.
Reacting to initial news flashes, it further clarified its statement was not a rebuttal to the IMF but “an effort to arrest misinterpretation or misuse” of its comments to imply that General Government debt would exceed 100% of GDP in the medium term.
Semantics experts may argue whether the communiqué was confrontational or clarificatory. India’s Director on the IMF Board had already placed on record reservations about its staff’s conclusions on debt risks and some other aspects of the economy.

Ministry’s statement

The Ministry statement, four days after the IMF released its latest India consultation details, noted that “certain presumptions have been made taking into account possible scenarios that does not reflect factual position”.
In particular, the Ministry was referring to an IMF view that adverse shocks could lift India’s general government debt to, or beyond 100% of GDP in the medium-term (by 2027-28).
The Ministry asserted this was only a worst-case scenario and not a fait Accomplishment, and emphasised that other IMF country reports show much higher extreme ‘worst-case’ scenarios, for instance, at 160%, 140% and 200% of GDP, for the U.S., the U.K. and China, respectively.

Perceptions of India’s fiscal position

In the broader picture, IMF staff’s perceptions of India’s fiscal position have actually improved over the past year.
From arguing in 2022 that India’s fiscal space is at risk, they now believe sovereign stress risks are moderate. This is in no small part due to the ability of the Centre, whose debt levels were about 57% of GDP last year, to meet fiscal deficit targets in recent times.

About International Monetary Fund (IMF)

The International Monetary Fund (IMF) works to achieve sustainable growth and prosperity for all of its 190 member countries. The IMF, also known as the Fund, was conceived at a UN conference in Bretton Woods, New Hampshire, United States, in July 1944.
It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. The IMF is governed by and accountable to its member countries.
The IMF has three critical missions:
- furthering international monetary cooperation,
- encouraging the expansion of trade and economic growth,
- and discouraging policies that would harm prosperity.
To fulfil these missions, IMF member countries work collaboratively with each other and with other international bodies.

7. Govt. targets documents’ saturation in PVTG villages in one week

Subject :Schemes

Section :Vulnerable section

Context:

Centre has set a target of one week to achieve Aadhaar, caste certificate, and Jan Dhan account saturation across 15,000 PVTG habitations in 100 districts.

What is the PM-JANMAN Scheme?

PM JANMAN is a government scheme that aims to bring tribal communities into the mainstream.
The scheme (comprising Central Sector and Centrally Sponsored Schemes) will be implemented by the Ministry of Tribal Affairs, in collaboration with the State governments and the PVTG communities.
The scheme will concentrate on 11 critical interventions overseen by 9 line Ministries, ensuring the implementation of existing schemes in villages inhabited by PVTGs.
It encompasses various sectors, including safe housing under the PM-AWAS Scheme, access to clean drinking water, improved healthcare, education, nutrition, road and telecommunications connectivity, as well as opportunities for sustainable livelihoods.
The plan also includes the establishment of Van Dhan Vikas Kendras for trading in forest produce, off-grid solar power systems for 1 lakh households, and solar street lights.
The scheme is expected to enhance the quality of life and well-being of the PVTGs, by addressing their multiple and intersecting forms of discrimination and exclusion, and by recognizing and valuing their unique and valuable contribution to national and global development.

Who are Particularly Vulnerable Tribal Groups (PVTGs)?

In 1973, the Dhebar Commission established Primitive Tribal Groups (PTGs) as a distinct category, encompassing tribal communities characterized by a declining or stagnant population, the use of pre-agrarian technology, economic backwardness, and low literacy.
These groups are identified as less developed among the tribal communities.
In 2006, the Government of India renamed the PTGs as PVTGs. They reside in remote and inaccessible areas, facing challenges due to poor infrastructure and administrative support.
There are 75 PVTG communities spread across 18 States and Union Territories in India.
Odisha has the highest number of PVTGs (15), followed by Andhra Pradesh (12), Bihar and Jharkhand (9), Madhya Pradesh and Chhattisgarh (7), Tamil Nadu (6), and Kerala and Gujarat (5 each).
The rest of the communities are spread across Maharashtra, West Bengal, Karnataka, Uttarakhand, Rajasthan, Tripura, and Manipur.
All four tribal groups in the Andaman and one in the Nicobar Islands are recognized as PVTGs.

Other Initiatives for PVTGs

Janjatiya Gaurav Divas.
Viksit Bharat Sankalp Yatra.
PM PVTG Mission.

8. Can Amazon strategy help Blue Origin top SpaceX?

Subject :Science and Tech

Section :Space Tech

Context:

An Amazon veteran tapped by Jeff Bezos to lead Blue Origin aims to pull from the ecommerce giant’s speedy manufacturing playbook to give the space company’s rocket launch and moon lander business a badly needed boost against Elon Musk’s SpaceX.

Space Tourism

Space tourism is about humans travelling into space for recreational purposes. It seeks to give laypeople the ability to go to space for recreational, leisure or business purposes.
It will make space more accessible to those individuals who are not astronauts and want to go to space for non-scientific purposes.
Three private companies – Blue Origin, Virgin Galactic and SpaceX are now spearheading the human endeavour to explore space.
Their progress will decide whether space travel will one day become as accessible as air travel.

Previous Space Tourists:

The first space tourist was US millionaire Dennis Tito, who in 2001 paid USD 20 million to hitch a ride on a Russian Soyuz spacecraft to visit the international space station and spent eight days there.
After Tito, there were only seven other private citizens who travelled to space until 2009 when the Russian space agency wound up the business of selling tickets to private citizens.
Space Adventures is the only private company to send paying customers to orbital space so far. In 2004, test pilot Mike Melville became the first private astronaut to fly beyond the Karman Line.

Significance:

Huge Market: There is an estimated market of 2.4 million people for such flights.

Base for Testing: It can provide a base for testing supersonic travel between different destinations on earth, significantly compressing travel time. Besides, it heralds the entry of the private sector into this arena.

9. Revanth govt. plans an onsite ‘expose’ into Telangana’s Kaleshwaram project

Subject :Geography

Section: Indian Physical geography

Concept:

The Kaleshwaram Lift Irrigation Scheme of Telangana is a multi-purpose irrigation project on the Godavari River in Kaleshwaram, Bhupalpally in Telangana.
The project starts at the confluence point of Pranahita River and Godavari River.
Originally called Pranahita-Chevella project in erstwhile Andhra Pradesh, it was redesigned, extended and renamed as Kaleshwaram project in Telangana in 2014.
The project will also support Mission Kakatiya and Mission Bhagiratha schemes of telangana designed to provide drinking water to many villages and improve the capacities of tanks.

Additional Information:

Godavari River

The Godavari is India’s second longest river after the Ganga.
Source: Trimbakeshwar, Maharashtra.
Areas drained: It flows east for 1,465 kilometres, draining the states of Maharashtra, Telangana, Andhra Pradesh, Chhattisgarh, Odisha, and Karnataka, ultimately emptying into the Bay of Bengal through its extensive network of tributaries.
Tributaries: The major tributaries of the river are classified as the left bank tributaries which include the Purna, Pranhita, Indravati and Sabari River and the right bank tributaries are Pravara, Manjira, Manair.
Kumbh Mela is held at Nasik (on the Godavari), Prayagraj (at the confluence of Ganga, Yamuna, and the mythical Saraswati), Haridwar (on the Ganges), and Ujjain (on the Shipra) every four years by rotation.
Sadarmatt Anicut across river Godavari is one among the two irrigation projects in the International Commission on Irrigation and Drainage (ICID) Register of Heritage Irrigation Structures.

Pranahita River

Pranahita River is the largest tributary of the Godavari river covering about 34% of its drainage basin.
It is a confluence of various other smaller tributaries like Wardha, Penganga and Wainganga Rivers

10. Stagflation Risk Assessment by RBI

Subject : Economy

Section: National Income

Stagflation Risk Reduction: Officials at the Reserve Bank of India (RBI) have revised down the risk of stagflation, a combination of economic stagnation and high inflation, from 3% in August to 1% based on recent data.
Methodology Used: The assessment involved two approaches. The first considered phases of low economic growth coinciding with high inflation.

The second employed “Inflation at Risk” (IaR) and “Growth at Risk” (GaR) frameworks, using quantile regression to gauge the likelihood of stagflation.

Determinants of Stagflation Risk: According to the RBI, empirical findings indicate that supply-side shocks, such as spikes in commodity prices, along with tighter financial conditions and a relatively higher depreciation of the domestic currency, are major determinants of stagflation risk in India.
Historical Context: Elevated risks of stagflation were observed during specific episodes, including the Asian Crisis, the Global Financial Crisis, the taper tantrum, and the COVID-19 pandemic.
Concerns Raised: Stagflation is viewed as a destabilizing factor with the potential to disrupt the entire macroeconomic framework by creating an environment of uncertainty. The RBI considers it a major concern, given its mandate to maintain price stability while considering the objective of growth.
Global Stagflation Concerns:Higher commodity prices and the appreciation of the U.S. dollar post-pandemic have raised concerns about stagflation globally. Delays in the monetary normalization process after the pandemic also contribute to worries about potential costly stagflation.
Weak Passthrough of Crude Oil Prices: The weak passthrough of crude oil prices to domestic petrol and diesel prices limits the predictive power for stagflation, according to the RBI.
Central Bank Focus: The focus of central banks on maintaining price stability and ensuring the financial health of institutions has helped anchor long-term inflation expectations to the inflation target, unlike the 1970s when expectations were weakly anchored and reached exorbitantly high levels.

Inflation in India

Inflation: Inflation refers to the general increase in prices and the fall in the purchasing power of money. It occurs when the demand for goods and services surpasses their supply, leading to an increase in their prices. High inflation can erode the value of savings and income, leading to reduced consumer spending and economic instability.

Types of inflation include:

Demand-pull inflation: Caused by increased consumer demand that outpaces supply.
Cost-push inflation: Caused by an increase in production costs, such as wages or raw materials, leading to higher prices.

Deflation: Deflation is the opposite of inflation and refers to a sustained decrease in the general price level of goods and services. It occurs when the supply of goods exceeds demand, leading to reduced prices. Deflation can discourage spending, as consumers may delay purchases in anticipation of lower prices, which can further slow down economic growth and potentially lead to recession.

Stagflation: Stagflation is a situation characterized by a combination of stagnant economic growth, high unemployment, and high inflation. It presents a challenge for policymakers, as traditional measures to stimulate economic growth, such as increasing the money supply, may exacerbate inflation.

Hyperinflation: Hyperinflation is an extremely high and typically accelerating inflation. It occurs when the price levels rise rapidly, eroding the value of the currency. This phenomenon often results from a collapse in the currency and is detrimental to the economy, leading to a loss of confidence in the currency and undermining economic stability.

Reflation: Reflation is an attempt to stimulate an economy that is experiencing deflation. It involves the implementation of monetary or fiscal policies to increase the money supply and boost aggregate demand, with the aim of reversing deflation and stabilizing prices.

Disinflation refers to a slowdown in the rate of inflation. While prices may still be rising, they are doing so at a slower pace compared to the previous period. Disinflation does not imply a decrease in prices, as is the case with deflation, but rather a reduction in the rate of increase of the general price level in an economy. Disinflation can occur for various reasons, such as increased productivity, reduced consumer demand, or a drop in the prices of commodities.

11. ASEAN-India FTA Review

Subject: Economy

Section: External sector

Negotiations in February: India and the ten-member Association of South East Asian Nations (ASEAN) will commence negotiations in February to modernize their 15-year-old free trade agreement (FTA) officially known as the ASEAN India Trade in Goods Agreement (AITGA).
Review Objectives: The primary objective of the review is to address the trade deficit for India and modernize the FTA, considering the significant changes that have occurred since its signing. New elements, including product-specific rules and trade remedies, will be introduced to enhance efficiency.
First Round of Negotiations: The initial round of negotiations is scheduled for February 18-19 in New Delhi, with subsequent negotiations following a quarterly schedule aiming to conclude by 2025.
Disproportionate Benefits: India has long advocated for a review of the AITGA, as the current pact resulted in disproportionate benefits for the ASEAN. India’s trade deficit with the region has grown substantially from $7.5 billion per annum to $43.57 billion in FY23.
Trade Deficit Concerns: India aims to bring balance to the FTA, considering the escalating trade deficit. Input from various sectors on tariff and non-tariff barriers faced in the ASEAN has been collected by the Commerce Department.
Sectors Needing Attention:Industries such as chemicals and alloys, plastics and rubber, minerals, leather, textiles, gems, and jewelry require support, as per industry analysis.
Rules of Origin Changes: Modernizing the AITGA includes changes in the Rules of Origin (ROO) to favor India by increasing market access for certain items and preventing potential rerouting of goods by China through ASEAN countries.
Introduction of PSRs:Product-Specific Rules (PSRs) will be introduced, allowing India to relax rules for certain items to boost exports while blocking loopholes to prevent circumvention by China.
Trade Remedies Chapter: The modernized AITGA will feature a chapter on trade remedies to provide a safety net for domestic industries against unfair trade practices or unforeseen surges in imports.
Exclusions in Review: No new areas, such as labor, environment, Small and Medium Enterprises (SMEs), or gender, will be added to the AITGA. The focus is on making the existing pact more efficient without complicating it with additional issues.
ASEAN’s Trade Contribution: The ten-member ASEAN, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia, accounted for 11.3% of India’s global trade in 2022-23.

ASEAN–India Free Trade Area (AIFTA):

Formation: A free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and India.
Commencement: Came into force from January 2010.
Objective:
- Facilitate trade and economic cooperation between ASEAN member states and India.
- Promote the exchange of goods and services.
Elimination of Duties:
- The pact outlines timelines for the gradual elimination of duties on a wide range of goods traded between ASEAN and India.
Key Features:
- Aims to boost economic relations and enhance trade flows.
- Provides a framework for reducing or eliminating tariffs to create a more open and integrated market.
- Encourages collaboration in areas beyond trade, fostering economic ties in investment, technology, and other domains.
- AIFTA contributes to the broader goal of regional economic integration among ASEAN countries and India.
- Intended to have a lasting impact on the economic landscape by creating a more conducive environment for businesses and trade.

12. Indian ASEAN

Subject :IR

Section: Groupings

ASEAN (Association of Southeast Asian Nations):

Formation: ASEAN, established on August 8, 1967, is a regional intergovernmental organization comprising ten Southeast Asian countries. The founding members are Indonesia, Malaysia, the Philippines, Singapore, and Thailand.
Member States: The current member states include Brunei, Cambodia, Laos, Myanmar, and Vietnam.
Motto: “One Vision, One Identity, One Community.”
Secretariat: Located in Indonesia, Jakarta
ASEAN promotes intergovernmental cooperation and facilitates economic, political, security, military, educational, and sociocultural integration among its members.
Principles: ASEAN operates on the principles of non-interference in internal affairs, consensus-building, and mutual respect.

ASEAN Plus Six:

ASEAN Plus Six refers to a regional grouping that includes the ten member states of ASEAN plus six more countries, forming a broader economic and political framework.
Six Partner Countries: The six partner countries are China, Japan, South Korea, India, Australia, and New Zealand.
Purpose: The ASEAN Plus Six framework aims to enhance economic cooperation, trade, and diplomatic relations among the participating nations. It fosters regional integration and stability.
Areas of Cooperation: The collaboration covers various areas, including trade agreements, investment, technology exchange, cultural ties, and diplomatic dialogues.
Economic Significance: ASEAN Plus Six represents a significant economic bloc, bringing together some of the world’s major economies. The framework provides a platform for discussions on regional economic issues and facilitates the growth of the participating countries.

Significance of the Grouping:

3rd largest market globally, larger than EU and North American markets.
6th largest economy globally, 3rd in Asia.
Free-trade agreements (FTAs) with China, Japan, South Korea, India, Australia, and New Zealand.
4th most popular global investment destination.

India’s Transition from Look East Policy to Act East Policy:

Look East Policy (LEP): Initiated in the 1990s for active engagement with Southeast Asian countries.
- Reasons: Collapse of the Soviet Union, Balance of Payment crisis.
- Initially focused on trade and economic linkages with ASEAN.
Act East Policy (AEP): Maturity of Look East Policy with a focus on extended neighborhood in the Asia-Pacific region since 2014.
- Principles: Promote economic cooperation, cultural ties, and strategic relationships.
- Emphasis on tangible action, concrete results, deepening cooperation, and focus on North Eastern Region.