UPSC Essentials | Mains answer practice — GS 2: Questions on Trust Initiative and India—France relations (Week 90)

QUESTION 1

The United States has launched the “Trust Initiative” to curb economic and technological risks posed by certain nations. Examine the key objectives of this initiative and analyse its potential implications for global trade and India’s economic interests.

QUESTION 2

India and France have strengthened their strategic partnership across multiple domains, including defence, energy, and technology. Discuss the key drivers behind this deepening relationship and analyse its significance in the context of evolving global geopolitics.

General points on the structure of the answers

Introduction

— The introduction of the answer is essential and should be restricted to 3-5 lines. Remember, a one-liner is not a standard introduction.

— It may consist of basic information by giving some definitions from the trusted source and authentic facts.

Body

— It is the central part of the answer and one should understand the demand of the question to provide rich content.

— The answer must be preferably written as a mix of points and short paragraphs rather than using long paragraphs or just points.

— Using facts from authentic government sources makes your answer more comprehensive. Analysis is important based on the demand of the question, but do not over analyse.

QUESTION 1: The United States has launched the “Trust Initiative” to curb economic and technological risks posed by certain nations. Examine the key objectives of this initiative and analyse its potential implications for global trade and India’s economic interests.

Introduction:

— Under the Transforming Relationship Utilising Strategic Technology (TRUST) initiative, the two countries will reduce barriers to technology transfer, address export controls, and enhance high-tech commerce.

— The TRUST initiative will emphasise creating strong supply chains of critical minerals, advanced materials and pharmaceuticals.

— The TRUST initiative follows India’s induction into the US-led Minerals Security Finance Network in September last year. India joined the Minerals Security Partnership (MSP) in 2023.

Body:

— The TRUST initiative will build on existing bilateral collaboration. It also puts India and the United States to boost current efforts while countering China’s dominance in crucial mineral supply chains.

— “This initiative will catalyse collaboration among governments, academia and the private sector to drive innovation in defence, artificial intelligence, semiconductors, quantum computing, biotechnology, energy and space,” said Vikram Misri, India’s Foreign Secretary.

— The TRUST initiative’s endeavour to build strong pharma supply chains could focus on active pharmaceutical ingredients (APIs), many of which rely on key minerals such as lithium, magnesium, zinc, and selenium.

Potential implications for global trade and India’s economic interests

— The TRUST initiative’s emphasis on lowering barriers to technology transfer, resolving export controls, and promoting high-tech trade provides the framework for closer cooperation between India and the United States in the crucial minerals field.

— Although the initiative does not provide Indian companies with tax breaks under the US Inflation Reduction Act (IRA) for battery components and crucial raw materials, as Japanese companies do, it greatly expands the possibility for partnership.

— In its bilateral spirit, the TRUST initiative builds on the Minerals Security Finance Network (MSFN) under the MSP, which aims to bring together development finance institutions (DFIs) and export credit agencies (ECAs) from participating countries to “create synergies and increase impact”.

Conclusion:

— The MSP is a 14-country initiative led by the United States with the goal of catalysing public and private investment in essential mineral supply chains. It encompasses the United States, India, Australia, Canada, Estonia, Finland, France, Germany, Italy, Japan, the Republic of Korea, Sweden, the United Kingdom, and the European Union.

— Strategic industries such as defence, electronics, quantum computing, energy, and space rely heavily on critical minerals and REEs. Elements like neodymium, praseodymium, and samarium are essential for high-performance magnets found in missiles, fighter jets, and radars.

(Source: The India-US TRUST initiative: what is it, and how will it strengthen the critical minerals and pharma supply chains by Aggam Walia)

Points to Ponder

What are critical minerals?

Read more about MSP.

What are rare earth elements?

Related Previous Year Questions

‘The West is fostering India as an alternative to reduce dependence on China’s supply chain and strategically to counter China’s political and economic dominance.’ Explain this statement with examples. (2024)

“The USA is facing an existential threat in the form of China, that is much more challenging than the erstwhile Soviet Union.” Explain. (2021)

QUESTION 2: India and France have strengthened their strategic partnership across multiple domains, including defence, energy, and technology. Discuss the key drivers behind this deepening relationship and analyse its significance in the context of evolving global geopolitics.

Introduction:

— Recently, Prime Minister Narendra Modi visited France at the invitation of French President Emmanuel Macron.

— The PM’s visit had two key dimensions: the AI Action Summit which he co-chaired with President Macron, and consolidating India-France ties, which were elevated to the strategic partnership level in 1998. The two countries also reviewed the ‘Horizon 2047’ Roadmap agreed two years ago.

Body:

— French views have traditionally converged with the Indian preference for a multipolar world, making India a reliable partner for France. Additionally, the two countries share a strong commitment to addressing climate change.

Defence and connectivity

— Unlike commercial contacts, defence ties between countries have a political component and reflect an awareness of their unique geopolitical contexts. France, along with Russia, has long been an important and dependable supply of defensive supplies for India. Such supplies also give the exporting country some political leverage and have a direct impact on the importing country’s defence preparedness.

— France was one of the few Western nations to refrain from slapping sanctions on India following the 1998 Pokhran-II nuclear tests. Since then, the two countries have worked closely together in practically all multilateral venues, including the UN Security Council.

— According to the Stockholm International Peace Research Institute, France was among the top three worldwide arms exporters from 2019 to 2023.

— The two presidents decided to collaborate more closely on the implementation of the India-Middle East-Europe Economic Corridor, which was initially discussed on the sidelines of the G20 Summit in New Delhi in 2023.

Nuclear energy, roadblocks

— France is a pioneer in civil nuclear energy, generating over 70% of its electricity from nuclear power.

— Both leaders emphasised that nuclear energy is an “essential part of the energy mix” for increasing energy security and transitioning to a low-carbon economy. France has promised to construct nuclear power reactors at Jaitapur, Maharashtra. However, many projects have encountered difficulties such as excessive costs and outstanding technical and legal constraints.

— However, the focus has shifted to Small Modular Reactor (SMR) and Advanced Modular Reactor (AMR) technologies. These compact reactors have significant advantages, including less physical area and a lower capital expenditure.

Conclusion:

— In the Union Budget presented on February 1, a Nuclear Energy Mission worth Rs 20,000 crore was announced for the research and development of SMRs. India and France have signed a letter of intent over cooperation on AMRs and SMRs during the visit.

— During the visit, France proposed Marseille, located on the Mediterranean Sea, as a strategic hub for the project.

(Source: Defence to energy, deepening of India-France ties amid geopolitical shifts by Gulshan Sachdeva)

Points to Ponder

What are small modulator reactors?

India-France developments

Nuclear projects in India

Related Previous Year Questions

The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyse India’s energy policy cooperation with West Asian countries. (2017)

‘Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (2022)

Previous Mains Answer Practice

UPSC Essentials: Mains answer practice — GS 3 (Week 90)

UPSC Essentials: Mains answer practice — GS 3 (Week 89)

UPSC Essentials: Mains answer practice — GS 2 (Week 89)

UPSC Essentials: Mains answer practice — GS 2 (Week 88)

UPSC Essentials: Mains answer practice — GS 1 (Week 88)

UPSC Essentials: Mains answer practice — GS 1 (Week 87)

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