Context: 

The Government launched the ‘Startup India initiative’ in January 2016 to foster India’s startup culture, promote economic growth, support entrepreneurship, and generate employment opportunities. 

Key Points:

• The initiative also focuses on strengthening women entrepreneurship through policies and enabling networks.

Measures to Promote Women Entrepreneurship in Startup India:

• Fund of Funds for Startups Scheme: Measures taken to promote women entrepreneurship include reserving 10% of the fund (Rs. 1000 crore) in the Fund of Funds for Startups Scheme operated by SIDBI for women-led startups.
• Virtual Incubation Program for Women Entrepreneurs: Virtual Incubation Program for Women Entrepreneurs supports 20 women-led tech startups with pro-bono acceleration support for 3 months.
• Dedicated Webpage for Women Entrepreneurs: A dedicated webpage on the Startup India portal provides policy measures for women entrepreneurs from both Central and State Governments.
• Awareness and Capacity-Building Workshops for Women Entrepreneurs: The department conducts awareness and capacity-building workshops specifically for women entrepreneurs, covering various topics and sharing success stories of entrepreneurs. 
  • These workshops cater to both aspiring and existing women entrepreneurs.
• WING (Women Industrialist Network Groups) Program: It is a capacity development program for existing and aspiring women entrepreneurs. 
  • It offers mentoring sessions in areas such as Venture Ideation and Business Model Validation, Governance, Marketing/Branding, Finance & Financial Decisions, and Mastering Customer Acquisition Strategy & Scaling-up.

News Source: PIB

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The Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry, and Dairying is implementing the Credit Guarantee Scheme under the Animal Husbandry Infrastructure Development Fund (AHIDF).

About Credit Guarantee Scheme:

• Objective: The goal is to facilitate credit flow to Micro, Small & Medium Enterprises (MSMEs) in the Livestock sector without the need for collateral security.
• Credit Guarantee Fund:
  • A Credit Guarantee Fund Trust of Rs. 750.00 crores has been established by the Department of Animal Husbandry & Dairying (DAHD).
  • It provides credit guarantee coverage of up to 25% of credit facilities extended to MSMEs by eligible lending institutions.
• Target Beneficiaries:
  • The scheme supports first-generation entrepreneurs and underprivileged sections of society in the Livestock sector.
  • It aims to benefit un-served and under-served segments of the Livestock industry.

AHIDF Scheme Features:

• Part of the Prime Minister’s AtmaNirbhar Bharat Abhiyan stimulus package of Rs. 15,000 crores.
• Encourages investments in Livestock infrastructure projects, including dairy and meat processing, animal feed plants, breed improvement, waste management, and veterinary vaccine/drugs manufacturing.
• Key Features of AHIDF Scheme:
  • Interest Subvention: 3%
  • Loan Up to 90% project cost funding from Scheduled Banks or National Cooperative Development Corporation (NCDC).
• Benefits:
  • Enhances credit access for MSMEs in the Livestock sector.
  • Strengthens MSMEs and contributes to the development of the rural economy through Livestock sector growth.

Credit Guarantee Fund Trust under AHIDF Scheme

• One of the key features of the AHIDF scheme is the establishment of a Credit Guarantee Fund Trust of Rs. 750.00 Crores. 
• Objective: To extend the credit guarantee to Micro, Small & Medium Enterprises under AHIDF scheme.
• Partnership: DAHD collaborated with NABSanrakshan Trustee Company Private Limited, a wholly-owned subsidiary of NABARD, to set up the Credit Guarantee Fund Trust.
• First of its Kind: This Credit Guarantee Fund Trust is a pioneering initiative in the agriculture and Animal Husbandry sector, marking the nation’s first-ever fund trust under the AHIDF’s Credit Guarantee Scheme.

News Source: PIB

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Context: 

There are 8 types of intellectual property rights covered under Intellectual Property Rights Policy Management (IPRPM) framework.

National IPR Policy 2016:

• The framework was launched in the form of National IPR Policy 2016 encompassing all IPRs into a single vision document setting in place an institutional mechanism for implementation, monitoring and review of IP laws.
• Seven Objectives of the Policy:
  1. Encourage Innovation and Creativity
  2. Provide Stronger Protection and Incentives for Inventors, Artists, and Creators
  3. Improve Procedural Requirements in IP Processing
  4. Modernize & Digitize IP Offices for Streamlined Workflow
  5. Scheme for Facilitating Start-Ups Intellectual Property Protection (SIPP)
  6. Awareness Initiatives and Programs for Stakeholders
  7. Expand Knowledge Capacity & Skill Building

Types of Intellectual Property Rights Covered under IPRPM Framework:

• Patents
• Trademark
• Industrial Designs
• Copyrights
• Geographical Indications
• Semiconductor Integrated Circuit Layout Design
• Trade Secret
• Plant Varieties

Under the National IPR Policy, various objectives and activities have been undertaken to promote and protect intellectual property rights:

• Amendment in IPR Laws and Rules: Improving procedural requirements in IP processing for faster grant and disposal.
• Modernisation & Digitisation of IP Offices: Enhancing functioning and performance of IP Offices through streamlined workflow processes.
• Scheme for Facilitating Start-Ups IP Protection (SIPP): Encouraging startups to file patent applications.
• Reduction in Filing Fees: Offering fee rebates for startups, MSMEs, and educational institutes to promote patent filing.
• Expedited Examination for Certain Applicants: Fast-tracking patent grants for startups, small entities, and women inventors.
• Awareness Initiatives and Programs: Educating stakeholders on the importance of protecting their IPR during early business development.
• National Intellectual Property Awareness Mission (NIPAM): Imparting IP awareness and basic training in educational institutes.
• National IP Awards: Recognizing and rewarding top achievers for their IP creations and commercialization.
• Patent Facilitation Programme: Revamping the process to provide financial, technical, and legal support for patent filing.
• Expand Knowledge Capacity & Skill Building: Setting up IPR chairs in educational institutions to promote research and development in IPR. Currently, 37 IPR Chairs are incorporated, facilitating 146 patent filings, 424 registered patents, and conducting 1373 IP programs.
• Commercialization of IP: Establishing Technology Innovation Support Centres (TISCs) in universities and councils to support IPR education, boost IP filings, and commercialize IP. 

News Source: PIB

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Context: 

Recently, the Ministry of Agriculture and Farmers Welfare launched several new technological initiatives under the Pradhan Mantri Fasal Bima Yojana to empower farmers and streamlining the operations.

YES-TECH Manual:

• It is a comprehensive guide developed after extensive testing and piloting in 100 districts of India.
• It facilitates the implementation of YES-TECH, a technology-driven yield estimation system (YES).
• The manual offers methodologies, best practices, and integration insights for accurate yield assessments.
• Significance: It helps in enhancing yield estimation and decision-making processes in the agricultural sector.

WINDS Portal:

• It is a centralized platform that hosts, manages, and processes hyper-local weather data.
• It collects data from Automatic Weather Stations and Rain Gauges at Taluk/Block and Gram Panchayat levels.
• Significance: Enhances risk assessment and decision-making in crop insurance, agriculture advisories, and disaster mitigation.

AIDE Mobile App:

• The AIDE mobile app aims to revolutionize the enrolment process for crop insurance.
• It is introduced on the Android platform and brings the enrolment process directly to the doorstep of farmers.
• Significance: Ensures a seamless and transparent enrolment process, making crop insurance more accessible and convenient for farmers.

News Source: PIB

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Context: 

The Government has initiated the procurement of tomatoes under the Price Stabilization Fund to address the increase in tomato prices.

Key Points:

• The Department of Consumer Affairs monitors daily prices of 22 essential food commodities, including tomatoes.
• To address the increase in tomato prices and provide affordable options to consumers, the government has initiated tomato procurement under the Price Stabilization Fund.
• The National Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing Federation (NAFED) are actively procuring tomatoes from mandis in Andhra Pradesh, Karnataka, and Maharashtra.
• The procured tomatoes are being sold at affordable prices in major consuming centers like Delhi-NCR, Bihar, Rajasthan, etc., after subsidizing the price for consumers.

About Price Stabilization Fund (PSF):

• Establishment: It was established during the 2014-15 period under the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW).
  • It was transferred from DAC&FW to the Department of Consumer Affairs (DOCA) on 1st April 2016.
• Purpose: To regulate the price volatility of important agri-horticultural commodities like onions, potatoes, and pulses.
• Buffer Stock Creation and Release:
  • The PSF creates a strategic buffer stock of the specified commodities.
  • This buffer stock is utilized for subsequent calibrated release in the market to moderate price volatility.

Other initiatives by the Government to stabilize prices:

• Market Intervention Scheme (MIS): 
  • To protect farmers from distress sale during bumper crop periods when prices fall below economic levels, the Department of Agriculture & Farmers Welfare (DAFW) implements the Market Intervention Scheme (MIS). 
  • Under the scheme, the loss on account of the fall in price is borne between the Central Government and State Government on a 50:50 basis.
• Operation Greens: 
  • Implemented by the Ministry of Food Processing Industries, it aims to enhance value addition and reduce post-harvest losses of agri-horticultural commodities, including tomatoes. 
  • The scheme includes both short-term and long term interventions 
    • Short Term: Transportation and storage subsidies for various stakeholders.
    • Long Term: Grants-in-aid for Integrated Value Chain Development Projects and Stand-alone Post-Harvest Infrastructure Projects.
  • Objectives:
    • Enhancing value realization of produce for farmers; 
    • Protect the growers from making distress sale; 
    • Increase in food processing/preservation capacities and value addition; and 
    • Reduction in post-harvest losses.

News Source: PIB

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Context:

• The Union Minister for Jal Shakti inaugurated a two-day National Conference on Rural WASH Partners’ Forum (RWPF) at Vigyan Bhawan in New Delhi  to celebrate the 1st anniversary of formation of RWPF.  

More about the news: 

• Theme of the conference: Accelerating Progress towards a Swachh Sujal Bharat.
• About RWPF: It is a platform set up by the Department of Drinking Water and Sanitation (DDWS) in collaboration with KPMG India for Development/ Sector Partners working in rural WASH space of India. 
• Objective: The main objective of the Forum is to support the expeditious implementation of the Jal Jeevan Mission (JJM) and Swachh Bharat Mission-Grameen (SBM-G), the flagship missions of DDWS, Ministry of Jal Shakti, Govt. of India. 
• Enabling Environment: The Forum has brought organisations working in the rural WASH sector under one umbrella for better collaboration & synergy, besides creating an environment of learning and knowledge sharing, finding scalable and cost-effective solutions, sharing best practices & success stories while avoiding overlap in efforts. 

News Source: pib

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Context: 

• There have been reports of an unusual increase in sudden cardiac deaths in apparently healthy individuals who had a history of COVID-19. However, currently, there is insufficient evidence to definitively establish the exact cause of these unexpected fatalities.

More About the news: 

• In order to ascertain the facts  of rising cases of cardiac arrest after COVID-19, Indian Council of Medical Research (ICMR) is conducting studies.
• In order to address the health issues related to cardiovascular disease, the Department of Health and Family Welfare provides technical and financial support to the states and Union Territories under the National Programme for Prevention and Control of Non-Communicable Diseases (NP NCD) and Cardiovascular Disease is an integral part of NP NCD.

National Programme for Prevention and Control of Non-Communicable Diseases (NPNCD):

• Non-Communicable Disease(NCDs): In India, NCDs like Cardiovascular Diseases (CVD), Cancer, Chronic Respiratory Diseases, Diabetes are estimated to account for around 60% of all deaths.
• National Health Mission(NHM): The Government of India has been implementing the above stated programme to deal with NCDs since 2010  under NHM. 
• Focus Areas: NPCDCS has a focus on awareness generation for behavior and life-style changes, screening and early diagnosis of persons with high level of risk factors and their referral to appropriate treatment facilities i.e. Community Health Centres and District Hospital for management of non-communicable diseases including cardiovascular diseases.

News Source: TOI

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Context: 

• For the first time, scientists have witnessed metal fragments demonstrating a remarkable self-healing capability. As these fragments cracked, they spontaneously fused back together without any human intervention. 

More about the news:

• Self healing structures: This inherent ability could be engineered into metals, leading to the creation of self-healing machines and structures. For example, self-healing engines, bridges, and airplanes. 
• Reversing damages: These innovations could effectively reverse damage caused by wear and tear, significantly enhancing the safety and longevity of various structures and machinery.
• Mitigating fatigue damage: Self-healing can reduce fatigue damage, a common machine failure cause. After repeated stress or motion, machines develop microscopic cracks that grow and eventually lead to machine failure. Self-healing properties could automatically repair such damage, preventing catastrophic breakdowns and lowering maintenance costs.

News Source: Financial Express

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Context:

• The evaluation studies carried out for relevant component schemes of Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) has revealed that substantial direct/indirect employment opportunities have been created in projects supported through its relevant component   schemes.

Food Processing Industry:

• It  is responsible for converting raw ingredients or agricultural products into edible food items suitable for human consumption. It plays a vital role in processing and preserving perishable materials, resulting in packaged food products with an extended shelf life, making them convenient for distribution and consumption. 

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About food processing industry: 

• Sunrise Industry: The Food Processing Industry is a sunrise industry (burgeoning in its infancy stage that shows promise of a rapid boom)  providing vital linkages between the two pillars of our economy – manufacturing and agriculture.
• High Growth: The Food Processing industry in India is undergoing a significant transformation. With a turnover of $110 billion, it accounts for 35 per cent of the Indian food market, and has been growing at a better rate of 14 per cent in the last few years.

Key Facts:

• Sector Growth:  Its output is expected to reach US$ 535 billion by 2025-26.The Indian food industry is expanding at a CAGR of 11% and the food processing sector accounts for 32% of the total food industry.
• Job creation: This sector is expected to generate 9 million jobs by 2024.
• FDI: India’s food sector attracted US$ 4.18 billion in foreign direct investments between April 2014 and March 2020.
• Consumer Base: By 2030, Indian annual household consumption is expected to triple, making India the fifth-largest consumer in the world.

Key Drivers: 

• Surplus raw material: High level of agricultural production – large livestock base, wide variety of crops, inland water bodies and a long coastline, that help increase marine production
• Strong domestic demand: Changing lifestyle and food habits due to increased disposable income.
• Export opportunities: There is a rise in the demand for Indian processed food in the international market. In addition to changing consumer tastes in foreign markets, huge demand from people of Indian origin live abroad. According to government’s estimates, Indian exports of processed food and related items rose at a compound annual growth rate (CAGR) of 11.74 percent during 2011-16, reaching US$16.2 billion.
• Availability of cheap workforce: India has a relatively cheaper workforce that can be effectively utilized to set-up a low production base for the domestic and export market. Production costs in India are lower by about 40 percent in comparison to most developed and developing countries

Opportunities:

• Reducing food wastage: The food processing industry can play a vital role in reducing food wastage and improving food security. 
• Feeding the population: India faces the challenge of feeding a growing population, and a significant amount of agricultural produce is lost due to spoilage and inadequate storage facilities. By investing in advanced processing and preservation techniques, the industry can help minimize post-harvest losses and ensure a steady supply of food throughout the year.
• Employment Opportunities: Food processing industry also holds a great potential to generate employment opportunities, particularly in rural areas. A parliamentary report from 2022 highlighted that the food processing industry is a major segment in terms of employment, accounting for 12.38% of the jobs generated in the Registered Factory sector in 2017-18. 
• Entrepreneurship: With proper training and skill development programs, individuals can be empowered to become entrepreneurs, contributing to local economic development. This not only creates jobs but also addresses the issue of rural-urban migration.
• Growth Acceleration: The food processing industry can provide an immense acceleration to India’s economy. Although the industry has experienced steady growth, there is still significant untapped potential to be realized. 

Upstream requirements of Food processing industry:

• Accessibility to raw materials 
• Modern extraction techniques.
• Good linkages with farmers.
• Raw materials
• Good quality testing facilities.
• Transport facilities 
• Work force.

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Downstream Requirements in Food processing industry:

• Processing of the materials collected during the upstream stage into a finished product. 
• Actual sale of product to customers like businesses, governments or individuals. 

Challenges of food processing industry in India:

• Supply Side Issues: Small and dispersed marketable surplus due to fragmented holdings, low farm productivity, high seasonality, perishability and intermediation result in lack of distribution on supply and quality, and in turn, impede processing and exports
• Infrastructure bottlenecks: Inadequate logistics and cold chain infrastructure, which results in the loss of more than 30 percent of the produce from the farm, inadequate primary processing, storage and distribution facilities, transportation of perishable products due to reliance on traditional modes of transport instead of specialized vehicles such as reefer vans. 
• Poor supply chain linkages: India’s agriculture market has a long and fragmented supply chain that results in high wastage and high costs, especially due to seasonality, perishability, and variability of produce.
• Supply side advantages: High level of agricultural production – large livestock base, wide variety of crops, inland water bodies and a long coastline, that help increase marine production.
• Lack of skilled manpower: The food processing industry (FPI) has a large unorganized segment, and to explain to them the inefficiencies in the existing production system and invest in technology upgrades becomes a challenge.  Many food processing businesses operate in the small and medium enterprises (SMEs) sector, which often lacks the resources needed to upgrade their facilities and machinery to the latest technology. 
• Deficiencies in the regulatory environment: Numerous laws, under the jurisdiction of different ministries and departments, govern food safety and packaging. The multiplicity of legislation leads to contradictions in specifications, conflicting approach, lack of co-ordination and administrative delays. Limited knowledge about the quality certifications required for the export markets.
• Demand Side Issues: There is negative perception on consumers regarding the nutritional value of the ready to eat food. The younger generation has often been prohibited from consuming packaged ready-to-eat products, affecting overall demand and sales in India. 
• Low brand value and strength: Indian brands have little to no strength in the foreign markets with only Indian-origin people being able to recognise the Indian food brands and products. 

GOVERNMENT INITIATIVES:

• FDI POLICY:
  • 100 % FDI permitted for food processing
  • 100 % FDI under government approval route for trading, including the same through e-commerce, with respect to food products manufactured and/or produced in India
• PRADHAN MANTRI KISAN SAMPADA YOJNA (PMKSY):
  • The initiative aims to create modern infrastructure for food processing and preservation, improve access to finance for food processing SMEs, and provide training and technical assistance to these enterprises. The government has also set up a number of food parks and clusters, which provide a range of facilities and support services to food processing companies.
• Scheme for Mega Food Parks:
  • The Mega Food Parks Scheme covering a minimum area of 50 acres, operates using a cluster-based approach, following a hub and spokes model that aims to establish a vital link between agricultural production and the market. By bringing together farmers, processors, and retailers, the scheme seeks to maximize the value addition of agricultural products, minimize wastage, boost farmers’ income, and create employment opportunities, especially in rural areas.
• Scheme for creation/ expansion of Food Processing and Preservation Capacities:
  • Creation of processing and preservation capacities and modernization/ expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage.
• Scheme for creation of backward and forward linkages:
  • Provide effective and seamless backward and forward integration for processed food industry by plugging the gaps in supply chain in terms of availability of raw material and linkages with the market, financial assistance provided for setting up of primary processing centers/ collection centers at farm gate and modern retail outlets at the front end along with connectivity through insulated/ refrigerated transport.
• PM Formalisation of Micro food processing Enterprises (PMFME) Scheme: 
  • The scheme provides financial, technical and business support for setting up / upgradation of 2 lakh micro food processing enterprises in the country through credit linked subsidy during five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 cr.
• The Scheme of Cold Chain, Value Addition, and Preservation Infrastructure:
  • It aims to establish a seamless and integrated cold chain system from the farm gate to the end consumer. This comprehensive infrastructure includes pre-cooling facilities at production sites, reefer vans, mobile cooling units, and value addition centers, ensuring the preservation and enhancement of agricultural products throughout the supply chain.

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Way Forward: 

1. Policy initiatives to plug supply side and infrastructure bottlenecks:
   • Backward linkages: Fixing the broken supply chain by directly linking the farmers with food processing companies – by connecting demand with supply. Fostering development of backward linkages is crucial for securing scale and economic.
   • Private sector participation: Private players should be involved, and they should work with the SHFs to perfectly assess the situation. Private players can help by investing in logistics and storage facilities, financing the activities needed to create and boost the brand value and strength of Indian food products in the export markets.
   • Technology upgradation: Encourage technology up gradation of existing facilities and investment in development of ancillary industries like research and development, packaging, food processing equipment manufacturing, food safety certifying agencies by extending fiscal incentives to investors.
   • Institutional credit: Enable better access to credit to facilitate the high cost technology adoption and scale enhancement.
   • Awareness and capacity building: Raising awareness about new techniques and spreading efficient farming knowledge amongst the smallholder farmers (SHFs) is essential for limiting crop damage and for stopping the overuse of chemicals in the fields. 
2. Streamlining the regulatory structure:
   • Single window clearance: Remove impediments of multiple departments and laws in seeking approvals by bringing them under a single window thereby providing clarity in roles and channels of operational and service delivery.
   • Ensure uniform implementation of the APMC act to encourage private sector investment in infrastructure development.
3. Human resource development-to meet increasing demand for skilled manpower:
   • Professional courses: Encourage State Agricultural Universities to commence courses in food packaging, processing, bio-technology, information technology in agriculture and such allied fields.
   • Joint Collaboration: Effective collaboration between the government and the industry is necessary to support the industry’s growth, benefiting not only the sector itself but also the agriculture industry and the overall economy.

News Source: pib

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Context:

Recently, Sri Lanka’s President Ranil Wickremesinghe visited Delhi for an official visit.  

Major Pillars of India-Sri Lanka Relations:

• Historical Relations: India and Sri Lanka have a long history of cultural, religious, and trade ties dating back to ancient times.
  • There are strong cultural ties between the two countries, with many Sri Lankans tracing their heritage to India. Buddhism, which originated in India, is also an important religion in Sri Lanka.
• Economic Cooperation: India is Sri Lanka’s third largest export destination, after the US and UK. More than 60% of Sri Lanka’s exports enjoy the benefits of the India-Sri Lanka Free Trade Agreement. 
  • India is Sri Lanka’s largest trading partner with a share of 16 percent in Sri Lanka’s total trade with the world.
• Defense Cooperation: India and Sri Lanka conduct joint Military (Mitra Shakti) and Naval exercise (SLINEX).
• Development Cooperation: The Indian Housing Project, with an initial commitment to build 50,000 houses in war affected areas and estate workers in the plantation areas, is Government of India (GoI)’s flagship grant project in Sri Lanka.
• Regional cooperation: India and Sri Lanka are both members of the South Asian Association for Regional Cooperation (SAARC) and are actively involved in regional initiatives aimed at improving economic and social conditions in South Asia.
• Tourism: The Government of India formally launched the e-Tourist Visa (eTV) scheme for Sri Lankan tourists in 2015.
  • To enhance connectivity between the two nations India and Sri Lanka entered into an Open Sky Agreement in 2016 enabling Sri Lankan Airlines to operate an unlimited number of flights to India.
• Human Resource Development: India offers about 710 scholarship slots annually to Sri Lankan students.
  • Indian institutes under ‘Study in India’ Program provide technical expertise across a diverse range of courses, and include programs in niche disciplines such as Ayurveda, Yoga, and Buddhist Studies. 

Challenges in India-Sri Lanka Relations:

• Tamil ethnic issue: The Sri Lankan Civil War, which lasted till 2009, had a significant impact on India-Sri Lanka relations. 
  • Sri Lanka’s Tamil ethnic minority, which shares cultural and linguistic ties with Tamil Nadu, has been a concern for India. The treatment of the Tamil population during the conflict and the aftermath have at times strained relations between the two countries.
• Terrorism: The Liberation Tigers of Tamil Eelam (LTTE) was a militant organization that emerged in the northern region of Sri Lanka which sought to establish an independent state called Tamil Eelam for the ethnic Tamil minority in the northern and eastern parts of Sri Lanka. 
  • It assassinated former Indian Prime Minister Rajiv Gandhi which led to a significant deterioration in India-Sri Lanka relations.
• Maritime Boundary Dispute: Katchatheevu is a small uninhabited island in Palk Strait, that connects the Bay of Bengal to the Arabian Sea.
  • It is a disputed territory between Sri Lanka and India, claimed until 1976 by India, and administered by Sri Lanka at the moment.
• Fisheries Dispute: India and Sri Lanka have been facing a long-standing dispute over fishing rights in the Palk Bay.
• China’s Growing Influence: China’s increasing influence in Sri Lanka, through investment and infrastructure projects, has been a source of concern for India and has put pressure on the relationship.
  • For Example: Cumulative Chinese investments account for 18 per cent of Sri Lanka’s 2021 GDP and 10.8 percent of the country’s foreign debt. This allows China special access to Sri Lanka — and its waters.
  • Recently, the Chinese ship, Yuang Wang 5 was docked at Hambantota port which possessed sensors that could track India’s ballistic missiles if they are tested. 
• Political Instability: Political instability in Sri Lanka has also had an impact on the relationship, with changes in government leading to shifts in foreign policy.
• India’s Support to 13th Amendment of Sri Lanka’s Constitution Implementation: In the aftermath of the civil war, there have been discussions on the devolution of power to the provinces in Sri Lanka, particularly in the Northern and Eastern regions. 
  • India has shown interest in a lasting political solution that accommodates the aspirations of the Tamil minority.

Importance of Sri Lanka to India:

• Geopolitical Location: Sri Lanka is situated in a strategically significant location in the Indian Ocean region, very close to India’s southern tip. Its proximity makes it a critical neighbor for India in terms of security and regional stability.
• Maritime Security: Sri Lanka’s position in the Indian Ocean and the presence of crucial maritime chokepoints like the Palk Strait and the Gulf of Mannar give it importance in maintaining India’s maritime security interests.
• Cultural and Historical links: India and Sri Lanka have deep-rooted cultural and historical connections dating back centuries. These ties provide a strong foundation for diplomatic relations and people-to-people contacts.
• Energy security: Sri Lanka’s location makes it significant for India’s energy security, as it is a potential partner for regional energy projects, including those involving renewable energy and power connectivity.
• Regional influence: Both India and Sri Lanka play essential roles in the dynamics of South Asia. Their collaboration and coordination can significantly impact regional affairs and contribute to peace and stability in the broader South Asian region.

India’s Role in Recent Sri Lanka Economic Crisis:

• India extended emergency financial support of about $4 billion, providing relief at a time when citizens struggled amid critical shortages of essentials. 
• India played a key role in helping Sri Lanka secure a nearly $3-billion package from the International Monetary Fund (IMF).
• India is also part of an official creditor’s committee, with Japan and other Paris Club members, and is currently negotiating a debt treatment plan with Sri Lanka. 

Way Forward: 

• Sustained Engagement and Collaboration:The way forward in India-Sri Lanka relations involves sustained engagement and collaboration, based on mutual respect and understanding, to enhance the well-being of their peoples and the stability of the region.
• Decoupling from Tamil Nadu Politics: India’s Sri Lanka policy should not be guided by Tamil Nadu. This must be avoided if India has to make effective course correction in Sri Lanka. India playing into its domestic coalition politics calculation has meant that it has lost the strategic field to China to a great extent. 
• Diversifying Engagement in Sri Lanka: While bringing ethnic Tamils to the national mainstream and peace and reconciliation in Sri Lanka are important goals, India should not be pursuing a Tamils-only agenda in its outreach to Sri Lanka. India must create different constituencies in Sri Lanka that will ensure a level playing field for India. 
• Managing China’s Influence: Engaging in constructive dialogue with Sri Lanka about its relations with other countries, including China, to avoid misunderstandings and suspicions.
  • Offering competitive alternatives to Sri Lanka in terms of infrastructure development and investments to mitigate over-reliance on a single partner.
• Non-Reciprocal Engagement with Sri Lanka: India must engage, understand, and assist Sri Lanka in a non-reciprocal manner, but it has to ensure that it is not taken for granted under any circumstance. 
  • India should not be complacent with the policy announcement from Colombo and must insist that India’s concerns and interests should be taken due care of.

News Source: The Hindu

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