UPSC Essentials | Mains Answer Practice | GS 2 : Questions on India-Oman deal and India-Russia logistics agreement (Week 134)

QUESTION 1

Discuss how the India-Oman trade deal complements India’s broader West Asia policy objectives.

QUESTION 2

Discuss the impact of the India-Russia logistics agreement on regional security dynamics in the Indian Ocean Region and the wider Indo-Pacific.

QUESTION 1: Discuss how the India-Oman trade deal complements India’s broader West Asia policy objectives.

Note: This is not a model UPSC answer. It only provides you with thought process which you may incorporate into the answers.

Introduction:

— Amid rising trade limitations in the United States due to tariffs and in the European Union due to the carbon tax, India has struck a trade agreement with Oman to broaden the footprint of its exports in West Asia.

— This is consistent with additional Delhi’s goal of rapidly pursuing more and more free trade agreements (FTAs), thereby safeguarding additional markets amidst ongoing uncertainty surrounding the trade pact with the United States.

Body:

You may incorporate some of the following points in your answer:

— Indian exporters have also been pushing for better market access in the Arab region due to less stringent standards compared with the European Union (EU). This not only raises the cost of compliance for exporters, but also often acts as a non-tariff barrier (NTB). The Oman deal comes even as talks for a trade deal with the Gulf Cooperation Council (GCC) — which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the UAE — did not materialise. India will now have a deal with two members of the GCC, namely, Oman and the UAE.

(Graphic by Abhishek Mitra)

— Oman is much less diversified and a much smaller market for India compared with the UAE. Its strategic location serves as a hub from where Indian products can find other markets in the region and in Africa.

— Notably, Oman has an FTA with the US that came into effect in 2009. Under the deal, a wide range of products from Oman reaches the US duty-free. Oman’s top exports to the US include industrial supplies, aluminium, fertilisers, jewellery, and oil by-products such as plastics. India is also looking to boost exports of gems and jewellery, which have faced the most tariff-related stress.

— As Oman has offered zero-duty access on 98 per cent of its tariff lines, the deal is expected to improve competitiveness for Indian industrial exports. To be sure, sustained growth will depend on quality upgrades and product differentiation in Oman’s relatively small market, experts said.

— Oman largely exports crude oil, liquefied natural gas and fertilisers, chemical inputs such as methyl alcohol and anhydrous ammonia, along with petroleum coke. These items are critical for India’s energy sector and already enjoy low tariffs under India’s other FTAs.

Conclusion:

— Oman’s substantial global services imports amount to $12.52 billion, with the share of India’s exports in Oman’s global imports basket at 5.31 per cent. According to the agreement, Oman has extended substantial commitments across a broad spectrum of sectors, including computer-related services, business and professional services, audio-visual services, research and development, education and health services.

(Source: How Oman deal adds heft to India’s West Asia trade strategy amid rising trade curbs in the West)

Points to Ponder

Read more about India-Oman relations

Read about India’s involvement in the West Asia

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QUESTION 2: Discuss the impact of the India-Russia logistics agreement on regional security dynamics in the Indian Ocean Region and the wider Indo-Pacific.

Note: This is not a model UPSC answer. It only provides you with thought process which you may incorporate into the answers.

Introduction:

— The Reciprocal Exchange of Logistics Support (RELOS) agreement sets out procedures governing the movement of military formations, warships and military aircraft between Russia and India, as well as the arrangements for providing logistical support to each other’s forces.

— It will facilitate the mutual use of airspace by Russian and Indian military aircraft, and has provisions related to port calls by warships of both countries.

Body:

You may incorporate some of the following points in your answer:

Impact of the India-Russia logistics agreement

— It is designed to regulate not only the dispatch of troops and military equipment, but also the logistics associated with such deployments. This includes support services that may be required when forces from either country operate on the other’s territory.

— The established framework is intended to be applied during joint military exercises and training activities, as well as in situations involving humanitarian assistance and disaster relief operations.

— For India, RELOS provides an institutional framework for access to Russian air and naval bases, from Vladivostok on the Pacific to Murmansk on the Arctic, for refuelling, repairs, and maintenance, boosting operational reach and readiness, especially for Russian-origin equipment.

— It supports India’s broader Indo-Pacific strategy by leveraging Russia’s extensive network: access to over 40 Russian bases will help the Indian Navy and Air Force to operate further from home, and during long-range deployments. Reciprocally, the Russian military will gain greater access to Indian ports and airfields for refuelling, repairs, and operations.

Conclusion:

— RELOS is similar to existing agreements — LEMOA (Logistics Exchange Memorandum of Agreement), COMCASA (Communications Compatibility and Security Agreement), and BECA (Basic Exchange and Cooperation Agreement) — with the US. However, it has been tailored to the India-Russia dynamic.

— While these pacts strengthen India, a key US partner in the QUAD, to balance Chinese influence in the Indo-Pacific, for the US, they make India a more capable and interoperable partner in its strategic goal towards a free and open Indo-Pacific.

(Source: Explained: India-Russia logistics agreement, with eye on Arctic, Indo-Pacific)

Points to Ponder

Read more about recent developments between India and Russia

Read more about RELOS

Related Previous Year Question

Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (2020)

Previous Mains Answer Practice

UPSC Essentials: Mains answer practice — GS 3 (Week 134)

UPSC Essentials: Mains answer practice — GS 3 (Week 133)

UPSC Essentials: Mains answer practice — GS 2 (Week 132)

UPSC Essentials: Mains answer practice — GS 2 (Week 133)

UPSC Essentials: Mains answer practice — GS 1 (Week 133)

UPSC Essentials: Mains answer practice — GS 1 (Week 132)

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