Context:

Recently, the Prime Minister attended the 20th ASEAN-India Summit and the 18th East Asia Summit (EAS) in Jakarta, Indonesia.

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• ASEAN-India annual summit process began in 2002.
• ASEAN and India celebrated the 30th anniversary last year and the relations between them have elevated to the level of Comprehensive Strategic Partnership (CSP).
  • A CSP is a high level diplomatics and strategic relationship between two countries or entities that signifies a deepening of their cooperation across various sectors.

Highlights of 20th ASEAN-India Summit:

• Theme: ‘ASEAN Matters: Epicentrum of Growth’
• Alignment with Indo-Pacific Initiatives: PM highlighted the alignment between India’s Indo-Pacific Ocean’s Initiative (IPOI) and ASEAN’s Outlook on the Indo-Pacific (AOIP), showcasing the convergence of regional strategies.
• AITIGA Review Urged: PM stressed the importance of expeditiously completing the review of the ASEAN-India Free Trade Agreement (AITIGA), underlining its significance for trade and economic cooperation.
• Maritime Cooperation: India and ASEAN members pledged to enhance maritime cooperation with a focus on:
  • Sharing information and capacity-building.
  • Ensuring maritime safety and security.
  • Promoting sustainable Blue Economy.
  • Enhancing connectivity and infrastructure.
  • Encouraging innovation and eco-tourism.
• The opening of the embassy of India in Timor-Leste has also been announced by the Prime Minister. Timor-Leste is an observer in the ASEAN.

Prime Minister of India presented a 12-point proposal to bolster India-ASEAN cooperation: 

1. Multi-Modal Connectivity and Economic Corridor: Proposing the establishment of a multi-modal connectivity and economic corridor that connects South-East Asia, India, West Asia, and Europe.
2. Digital Transformation: Offering to share India’s Digital Public Infrastructure Stack with ASEAN partners to facilitate digital transformation.
3. Digital Future Fund: Announcing the creation of the ASEAN-India fund for Digital Future, focusing on digital transformation and financial connectivity.
4. Support for Research: Renewing support for the Economic and Research Institute of ASEAN and East Asia (ERIA) to serve as a knowledge partner for enhancing engagement.
5. Global South Advocacy: Calling for collective action to address issues faced by the Global South in multilateral forums.
6. Traditional Medicine Center: Inviting ASEAN countries to join the Global Centre for Traditional Medicine being established by the World Health Organization (WHO) in India.
7. Mission LiFE: Urging collaboration on Mission LiFE, which focuses on a sustainable and eco-friendly future.
8. Affordable Medicines: Offering to share India’s experience in providing affordable and high-quality medicines through Jan-Aushadhi Kendras.
9. Counterterrorism and Cybersecurity: Advocating for collective efforts against terrorism, terror financing, and cyber-disinformation.
10. Disaster Resilience: Inviting ASEAN countries to join the Coalition for Disaster Resilient Infrastructure.
11. Cooperation in disaster management
12. Maritime Safety and Security: Emphasizing the need for enhanced cooperation in maritime safety, security, and domain awareness.

Highlights of 18th East-Asia Summit:

• At the East-Asia Summit in Jakarta, Prime Minister Modi conveyed several key points:
• Free and Open Indo-Pacific: He emphasized the importance of a free and open Indo-Pacific, hinting at China and promoting regional stability.

• South China Sea Code of Conduct: India advocated for an effective South China Sea code of conduct aligned with UNCLOS, promoting rules-based order
• ASEAN’s Central Role: PM underscored ASEAN as central to India’s Act-East Policy and pledged to amplify the voice of the Global South for common interests.

India’s Relationship with ASEAN:

• Central to Act East Policy: ASEAN holds a central position in India’s Act East Policy. Originally conceived as an economic initiative, this policy has expanded to encompass political, strategic, and cultural dimensions. 
• ASEAN Plus Six: India is part of the ASEAN Plus Six grouping, which includes ASEAN member states along with China, Japan, South Korea, New Zealand, and Australia. 
  • This forum provides a platform for dialogue, cooperation, and collaboration on various regional and global issues.
• Free Trade Agreement: In 2010, India and ASEAN signed a Free Trade Agreement (FTA) that entered into force. This agreement has facilitated trade and economic cooperation between India and ASEAN nations.
  • The bilateral trade between them was just US$ 9 billion when they had the 1st summit way back in 2002, and now the trade is likely to cross the US$ 150 billion mark in 2023.
• Economic Significance: Collectively, they contribute to 7% of the world’s GDP and represent 26% of the global population, highlighting their substantial combined strength.
• Defence Ties: The 1st ASEAN-India Maritime Exercise took place in May 2023, marking a significant achievement.
  • India and Singapore signed a bilateral agreement that will allow Indian Navy ships logistical support, including refuelling, at Singapore’s Changi naval base located near the disputed South China Sea.
• Key Developments:
  • Maiden Defence Meeting: India and Cambodia co-chaired the inaugural India-ASEAN Defence Ministers’ Meeting in November 2022.
  • Enhancing Partnership: The ASEAN Post Ministerial Conference with India in July 2023 resulted in the adoption of the Annex to the Plan of Action for ASEAN-India Partnership (2021-2025), further strengthening ties.

Challenges in India-ASEAN Relations:

• Strategic Competition: The strategic competiton between the United States and China in the Asia-Pacific region poses a significant challenge for ASEAN.
  • The pressure to choose sides in this rivalry can destablize the region.
• Lack of Strong and Committed Leadership: ASEAN faces a challenge in the form of a dearth of strong and committed leaders who can effectively address the diverse range of challenges within the region. 
  • Many leaders in ASEAN countries are preoccupied with domestic issues, including political, social, and economic concerns.
  • For example, on 1 February 2021 the Myanmar military launched a coup against the civilian government.
• Absence of a Custodian or Central Authority: Unlike the European Union (EU), ASEAN lacks a centralized custodian or authority responsible for overseeing and coordinating the affairs of the 10-nation bloc. 
• Connectivity Issues: Despite initiatives like the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multimodal Transit Transport Project, connectivity challenges in the region persist. Delays in infrastructure development can hinder trade and cooperation.
• Territorial Disputes: Territorial disputes in the South China Sea, involving some ASEAN members and China, can complicate regional security and stability. 
  • For Example: Malaysia, the Philippines and Vietnam have formally disputed a new Chinese map that claims most of the South China Sea as Chinese territory.
• Economic Challenges:
  • Regional Comprehensive Economic Partnership (RCEP): India was part of negotiations to join the RCEP, a mega regional trade agreement involving ASEAN and its FTA partners. 
    • However, India decided not to join the RCEP in 2020 due to concerns about its potential impact on domestic industries. 
    • Inadequate safeguards and lowering of customs duties would have adversely impacted India’s Manufacturing, agriculture and dairy sectors. 
  • Fragmented Markets: ASEAN is not a single market, posing challenges for Indian businesses seeking streamlined trade.
  • Imbalance Trade: India’s exports to ASEAN increased to US$ 44 billion from US$ 42.32 billion in 2021-22. However, imports jumped to US$ 87.57 billion compared to US$ 68 billion in 2021-22.
  • Reciprocal Trade and Investment Barriers: ASEAN faces trade and investment barriers in India, such as concerns regarding India’s CAROTAR rules imposed in 2020.
    • CAROTAR (Customs Administration of Rules of Origin under Trade Agreements) Rules, 2020 set guidelines for enforcement of the ‘rules of origin’ for allowing preferential rate on imports under Free Trade Agreements.

Way Forward:

• AITIGA Review: Efforts to conclude the ASEAN-India Free Trade Agreement (AITIGA) review may intensify, particularly in promising sectors like pharmaceuticals, health, cyber, financial, and maritime security domains.
• Collaborative Initiatives: India’s International Solar Alliance (ISA) and Coalition for Disaster Resilient Infrastructure (CDRI) could provide solutions to ASEAN’s challenges.
• Enhanced Partnership: Deepen the Comprehensive Strategic Partnership established in 2022, focusing on diverse sectors such as connectivity, maritime cooperation, digital transformation, trade, and the economy.
• Digital Transformation: Promote digital transformation, including digital connectivity and technology sharing.
  • India and Singapore, for example, have started deeper collaboration in FinTech including interoperability in payment systems.
• Integration of ASEAN Studies: Courses on ASEAN studies should be integrated into school curricula, spanning from primary school to university level.
• Reforming ASEAN Secretariat: Efforts should be directed towards improving the dynamics and functionality of the ASEAN secretariat.
• Revising Funding Policy: Consider revising the policy on funding, moving towards a model where wealthier nations contribute more substantial funding, akin to the United Nations practice.

News Source: The Economic Times 

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Context:

• The World Meteorological Organization (WMO) released a report titled 2023 WMO Air Quality and Climate Bulletin.
• It coincides with International Day of Clean Air for blue skies, commemorated annually on 7 September in recognition of the fact that clean air is important for the health and day-to-day lives of people.

Highlights from the Report: 

• Strong connection between heat waves and wildfires: Heatwaves are increasing the severity of wildfires. 
  • In 2022, heatwaves in the United States and Europe caused wildfires which combined with desert dust, resulted in hazardous air quality conditions.
• Increase in GHG emissions: Heatwaves contribute to additional carbon emissions increasing the concentration of greenhouse gasses(GHG) in the atmosphere.
• Desert dust: During the second half of August 2022, there was an unusually high intrusion of desert dust over the Mediterranean and Europe. 
• Impact on human health and well-being: Heatwaves worsen air quality, with knock-on effects on human health, ecosystems, agriculture and indeed our daily lives
  • The increase in ozone levels impacted agriculture globally, with ozone-induced crop losses averaging 4.4 per cent–12.4 per cent for staples. 
  • Losses for wheat and soybean were as high as 15 per cent-30 per cent in key agricultural areas of India and China.
• Increase in Marine Heatwaves: Climate change is leading to increased intensity and extensive occurrence of current marine heatwaves.
  • Marine heatwaves can develop when ocean temperatures in a specific region are significantly higher than average for an extended period of time. 

What is a heatwave?

• As per the World Meteorological Organization,  heatwave is defined as five or more consecutive days during which the daily maximum temperature surpasses the average maximum temperature by 5 °C (9 °F) or more.
  • It is a period of prolonged abnormally high surface temperatures relative to those normally expected.
• The extreme temperatures and resultant atmospheric conditions adversely affect people living in these regions as they cause physiological stress, sometimes resulting in death.

Criterion for declaring heat wave in India:

• Heat wave is considered if the maximum temperature of a station reaches at least 40°C or more for Plains and at least 30°C or more for Hilly regions.
• In coastal regions, heat waves are considered when the maximum temperature departure is 4.50°C or more from normal, provided the actual maximum temperature is 370°C or more.

Threats Posed by Extreme Heat:

• Heatstroke: Prolonged heat exposure causes heat strokes and heat exhaustion and causes various respiratory and cardiovascular diseases.

• Impact on economy: Heatwaves have an adverse impact on these workers’ productivity and thereby affect the overall economy of India. 
  • As per UNEP,  75 per cent of India’s workforce dependent on heat-exposed labor is in threat due to heatwaves.
• Agriculture: Prolonged heat waves adversely impact agricultural productivity and affect the livestock sector as animals are more vulnerable to heatwaves. 
  • As per a report by Indian Council of Agricultural Research (ICAR) titled Heat Wave 2022, heatwave falling in parallel with the developing stage of wheat, resulted in 15-25 per cent reduction in yields. 
• Urban heat island effect: Due to this, buildings, roads, and infrastructure absorb heat, leading to temperatures that can be 1 to 7 degrees F hotter in urban areas than outlying areas.

• The impact is most intense during the day, but the slow release of heat from the infrastructure (or an atmospheric heat island) overnight can keep cities much hotter than surrounding areas. 

Way Forward: 

• Heat preparedness plans: Identifying vulnerable populations and creating heat preparedness plans with steps like opening cooling centers during periods of extreme heat and adopting workplace heat stress standards.
• Reducing the urban heat island effect: It includes installing cool and green roofs, cool pavement, planting trees to provide shade, and cooling the air through evapotranspiration.
• • Pursuing energy efficiency to reduce demand on the electricity grid, especially during heat waves.
• Climate Mapping for Resilience and Adaptation portal: It helps communities understand and plan for their climate risks including a real-time map of wildfire, drought, flooding, and extreme heat.
• Sendai Framework: Effective implementation of the Sendai Framework for Disaster Risk Reduction(SFDRR) 2015-30, is now the need of the hour. 
  • SFDRR emphasizes disaster risk reduction with the state playing a leading role and sharing responsibility with other stakeholders such as local governments and the NGO sector.
• Early Warning Systems(EWS): Installing improved EWS that communicate heatwave threats, recommend preventive measures, and predict disaster impact scenarios.
• Declaration as natural disaster: Heatwave is India’s second most lethal disaster after the flood.
  • Declaring it a natural disaster will help the State and District administration prepare a heatwave action plan at the regional level. 

News Source: DTE

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Context:

RBI introduced guidelines enabling a borrower to transition from a floating interest rate-based loan to one with a fixed interest rate.

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• According to RBI, the endeavor was to address borrowers’ grievances pertaining to the elongation of loan tenure and an increase in the EMI amount in the event of an increase in the benchmark interest rate.
• The provisions would be extended to existing as well as new loans by the end of the current calendar year.

Differences between the two exchange rates systems:

Significant Impacts of Lending Guidelines:

• Risk Management and Cost Savings: Borrowers can switch to a fixed rate during times of rising interest rates to protect against future increases and switch to a flexible rate during times of falling rates to take advantage of lower costs.
• Improved Budgeting: Switching to a fixed rate can provide stability and predictability, while a flexible rate may offer lower initial payments.
• Transaction Costs: Switching between fixed and flexible rates may involve transaction costs, which can erode any potential interest rate savings.
• Complexity and Uncertainty: Frequent rate switches can introduce uncertainty into borrowers’ financial planning, as they may not know when to switch or how future interest rates will change.

News Source: The Hindu

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Context: In the run-up to the  G20 Summit, a day-long conference on Transnational Grid Interconnections for One Sun, One World, One Grid (OSOWOG) was held in New Delhi.

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• The World Bank presented the Transnational Grid Interconnection-Middle East & Africa perspective.
• It emphasized on the significance of Pan Arab Electricity Market (PAEM), interregional grids’ integration between South Asia, EU & Africa.

About OSOWOG or the Green Grid

• The idea for the OSOWOG initiative was put forth by India at the First Assembly of the International Solar Alliance in October 2018.
• Vision: Under the mantra the sun never sets, OSOWOG initiative aims to connect different regional grids through a common grid.
• Launch: The initiative was jointly launched by India and the United Kingdom during the ‘Accelerating Innovation and Clean Technology Deployment’ event at the World Leaders Summit held in November 2021 during COP26.
• Partners: World Bank Group and International Solar Alliance (ISA).
  • ISA is a collaborative platform for increased deployment of solar energy technologies. It was conceived as a joint effort by India and France.
• SAARC, BIMSTEC and ASEAN countries can be utilized through transnational interconnections.

News Source: PIB

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Context:

Recently, the regional commissioner of Mysore was directed to clear illegal constructions in the Bandipur Eco Sensitive Zone (ESZ) as they were in violation of the law.

About Eco-Sensitive Zones

• ESZs are protected and environmentally sensitive areas where certain activities and land uses are regulated to minimize human impact and protect the ecology and wildlife.
• These zones are established under the Environment Protection Act, 1986, to create a buffer around national parks, wildlife sanctuaries, and other ecologically fragile areas.
• Regulation of Activities:
  • Prohibited: Commercial mining, major hydroelectric projects etc.
  • Regulated: Establishment of hotels and resorts, felling of trees etc.
  • Permitted: Organic farming, horticulture practices etc.

Bandipur Tiger Reserve:

• It was established as one of the first nine tiger reserves under the Project Tiger in 1973-74.
• Location: It lies in Western Ghats in Karnataka, in the tri-junction area of Karnataka, Tamil Nadu and Kerala.
• Surrounded by: 
  • Wayanad  Wildlife Sanctuary (Kerala) in Southwest.
  • Mudumalai Tiger Reserve (Tamil Nadu) in the South.
  • Nagarhole Tiger Reserve (Karnataka) in North-West (separated by Kabini Reservoir).
  • Together these 4 areas are part of the Nilgiri Biosphere Reserve.
• Rivers: Kabini River in the North, Moya River in the South. Nugu River also runs through the reserve.
• Peaks: Himavad Gopalaswamy Betta is the highest peak of the reserve.

News Source: The Hindu

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Context: Reserve Bank of India (RBI) Governor has asked fintech entities to form a Self-Regulatory Organisation (SRO). 

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• There have been many instances where a few fintech players were involved in unethical practices such as charging exorbitant higher interest rates and harassment of borrowers etc.
  • For instance, Hyderabad Police has reportedly busted an Rs 903 Cr money laundering fraud involving a China-based illegal investment application.
• The self-regulatory processes of fintech entities are administered through impartial mechanisms.

About Self Regulatory Organisations:

• An SRO is a non-governmental organisation that sets and enforces rules and standards relating to the conduct of entities in the industry (members).
• Aim:  Protecting the customer and promoting ethics, equality, and professionalism.
• Framing of Rules: SROs typically collaborate with all stakeholders in framing rules and regulations.
• Recognition: Reserve Bank of India will be authority of issuing letters of recognition.

Functions of an SRO:

• Establishing codes of conduct: To foster transparency, fair competition, and consumer protection.
• Watchdog: It encourages members to adopt responsible and ethical practices.
• Linkage: It can provide a link between the regulator and market participants through a less formal set-up.
• Others: SRO is expected to address concerns such as to protect workers, customers or other participants in the ecosystem.

News Source: Indian Express

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