UPSC 2017: Comprehensive News Analysis - June 06

Context: Isolation of Qatar by the Gulf countries.

In News:

Political ties in the region

Background information:

• Qatar is a part of the Islamic Military Alliance, as well as part of the Saudi coalition taking part in the Yemen intervention.
• Qatar challenges the Saudi monarchy as well as the regimes in many countries in the Gulf.
• Qatari Emir Al-Thani’s tie with Iran is the major trigger.
• There has been an increased call from the Kingdom of Saudi Arabia (KSA), as well as UAE, Bahrain and other countries for Qatar to proclaim which side it is on.
• India has traditionally stayed out of the “Shi’a-Sunni”, “Arab-Persian” or “Wahabbi-Salafi” divides, and maintained good ties with all.

Present scenario: fragmenting West Asia will require even more deft diplomacy from India’s side to keep these ties untouched by the tensions.

Trade and manpower

• India sources more than half of its energy import needs from countries in the Persian Gulf.
• Six million Indians live and work in West Asia and they sent home about $63 billion last year.
• Energy imports may not be affected immediately, unless the Gulf countries follow through with sanctions. However, as in the case of Yemen, Libya, Lebanon and other countries, any tensions in the region have an immediate impact on thousands of Indian workers.

Cooperation in fighting terror: The KSA and the UAE are important partners for India on counter-terrorism cooperation and intelligence sharing.

Air travel : The Saudi coalition has decided to cancel Qatar Airways flights to their countries. This will affect Indian passengers who hoped to use Doha as a hub to get to other destinations in the Gulf.

In news:

• Nepal has signed an agreement with a Chinese company to build 1,200 megawatt Budhi-Gandaki hydroelectric project (the largest hydroelectric plant).
• Nepal suffers from a chronic energy shortage. Water-rich Nepal has a mountain river system that could make it an energy-producing powerhouse, but instead it imports much of its electricity from neighbouring India.
• Demand for electricity has long outstripped supply in Nepal due to chronic under-investment and inefficiencies in the power network. The result has been crippling for domestic industry and deterred foreign investment.

In news:

• The Arab world’s strongest powers cut ties with Qatar. Saudi Arabia, Egypt, the United Arab Emirates and Bahrain cut relations with Qatar in a coordinated move. Yemen, Libya’s eastern-based government and the Maldives joined in later.

Reasons: Alleged support for Islamists- the Muslim Brotherhood, ISIS (Islamic State) and al-Qaeda and Iran.

Aircraft banned: Saudi Arabia and Bahrain’s civil aviation bodies banned Qatari planes from landing in the kingdom’s airports and banned them from crossing their airspace.

Key Fact:

• Qatar meets almost a third of global LNG demand. The fuel is used largely for power generation.
• India is the second biggest buyer of Qatari LNG, according to energy consultancy Wood Mackenzie, after Japan.
• Qatar is also a major exporter of condensate, an ultra-light form of crude oil, as well as liquefied patroleum gas (LPG), with most supplies of the two fuels going to Japan and South Korea under long term supply contracts.

C. GS3 Related

Category: ENVIRONMENT AND ECOLOGY

1. India rejects Trump’s allegations on Paris pact

2. Survey puts Nilgiri tahr population at 1,420

3. India’s biodiversity riches grow by 499 species

Category: SCIENCE AND TECHNOLOGY

1. India successfully fires heaviest launch vehicle

2. IMD to give malaria, chikungunya alerts

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