25 Aug 2023: UPSC Exam Comprehensive News Analysis

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
INTERNATIONAL RELATIONS
1. BRICS to add six new member countries
2. India and the Northern Sea Route
C. GS 3 Related
D. GS 4 Related
E. Editorials
INTERNATIONAL RELATIONS
1. India’s G-20 opportunity for an African Renaissance
F. Prelims Facts
G. Tidbits
1. To enhance IAF efficiency, govt. to buy weapons locally
2. Start-up AR4, Sodion ally to make sodium ion battery packs
3. Modi seeks level playing field for smaller e-com companies
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

2. India and the Northern Sea Route

Syllabus: Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.

Mains: Opening of Northern Sea route: Impact on trade and relation with Russia 

Prelims: Map-based question on water bodies surrounding the Northern Sea route 

Context: Murmansk, an Arctic hub and NSR starting point, sees rising Indian cargo involvement. In 2023’s first seven months, India led with 35% of 8 million tonnes at Murmansk port, sparking NSR interest.

Significances of the Arctic region for India:

• Climate Impact: The vulnerability of the Arctic region to climate change could affect India’s economic security, water security, and sustainability.
• Resource Potential: The Arctic holds substantial untapped hydrocarbon reserves, estimated at over 40% of global oil and gas reserves, along with coal, zinc, and silver.
• Sustainable Development: India’s approach to Arctic development aligns with UN Sustainable Development Goals, emphasizing responsible economic growth.

Why is India involved in Murmansk’s Cargo Traffic?

• Cargo Share: India accounted for 35% of the eight million tonnes of cargo handled by Murmansk port in the first seven months of 2023.
• Economic Interests: The Northern Sea Route (NSR) presents a shorter shipping route for India’s trade with Europe and Asia-Pacific countries.
• Resource Imports: India’s increasing import of crude oil and coal from Russia contributes to the growing cargo traffic.

India’s history of engagement with the Arctic region:

• Early Engagement: India’s Arctic engagement dates back to the signing of the Svalbard Treaty in 1920.
• Scientific Studies: India has conducted various scientific studies and research in the Arctic, focusing on atmospheric, biological, marine, hydrological, and glaciological studies.
• Research Stations: India established the Himadri research station in Svalbard and launched observatories and laboratories for Arctic research.
• Observer-State: In 2013, India became an observer-State of the Arctic Council, alongside other nations like China.

About the Northern Sea Route (NSR):

• Shortest Route: NSR is a 5,600 km shipping route in the Arctic Ocean, offering shorter transit between Europe and the Asia-Pacific compared to traditional routes via Suez or Panama.
• Distance Savings: The NSR can potentially save up to 50% in distance compared to alternative routes.
• Suez Canal Blockage: The 2021 Suez Canal blockage heightened interest in the NSR due to its reliability as an alternative route.

     Northern Sea Route

Source: The Hindu

How does Russia ensure the navigability of the NSR?

• Icebreaking Assistance: The Arctic Ocean remains icebound for much of the year, so Russia provides icebreaking assistance to ensure safe navigation.
• Nuclear-Powered Fleet: Russia operates a nuclear-powered icebreaker fleet, with seven nuclear icebreakers and more planned for commissioning.
• Infrastructure Operator: Rosatom State Nuclear Energy Corporation manages the NSR infrastructure, ensuring navigability and safety.

Impact of the Chennai-Vladivostok Maritime Corridor (CVMC) on NSR:

• CVMC Project: The CVMC project, connecting Chennai and Vladivostok, is being explored to link with the NSR for international container transit.
• Reduced Transport Time: CVMC could cut transport time to 12 days, significantly shorter than the existing St. Petersburg-Mumbai route.
• Cargo Types: Coking coal, crude oil, LNG, and fertilizers are among the cargoes that could be imported from Russia to India through CVMC.

Future Developments:

• NSR Cargo Targets: Russia aims for cargo traffic targets of 80 million tonnes (2024) and 150 million tonnes (2030) as part of the NSR development plan.
• Indian Participation: A Russian delegation engaged with Indian businesses to encourage their involvement in NSR-related projects.
• CVMC Workshop: A workshop involving stakeholders from India and Russia is planned in October to discuss the CVMC project’s impact and potential.

Nut Graf:  Murmansk, the gateway to the Northern Sea Route (NSR) in the Arctic, is witnessing increased Indian cargo activity, with India accounting for 35% of the eight million tonnes handled in seven months. This surge highlights India’s growing interest in the NSR due to strategic economic and trade considerations.

2. Start-up AR4, Sodion ally to make sodium ion battery packs

• Coimbatore-based start-up AR4 Tech joined hands with Singapore’s Sodion Energy to produce sodium ion battery packs.
• AR4 Tech will establish a 15,000 sq. ft factory in Coimbatore within four months for production.
• The partnership aims to create battery packs from Sodion’s sodium-ion batteries.
• The upcoming factory will feature imported equipment and operate semi-automatically.
• It will possess the capability to manufacture nearly 100 battery packs daily.
• Sodion Energy holds a stake in AR4 Tech as part of their collaboration.
• The produced packs will be used by AR4 Tech to convert conventional petrol vehicles, particularly two-wheelers, into electric vehicles (EVs).
• P. Bala, CEO of Sodion Energy, noted the absence of established quality and safety standards in India for sodium ion battery packs, highlighting the need for a supportive regulatory framework.
• Sodium ion battery technology is emerging, and the sector requires favourable regulations to thrive.

Also read Augmented Reality (AR).

3. Modi seeks level playing field for smaller e-com companies

• Prime Minister Narendra Modi highlighted the importance of fair competition between big and small vendors in the e-commerce sector.
• He aimed to empower small businesses to connect with global supply chains.
• PM Modi urged global policymakers to pay more attention to the needs of Micro, Small, and Medium Enterprises (MSMEs).
• MSMEs are vital, contributing to 60% to 70% of employment and 50% of the global GDP.
• Empowering smaller businesses not only benefits them but also empowers society as a whole.
• India’s G20 presidency prioritised increasing the involvement of MSMEs in global trade and value chains.
• The “Jaipur Initiative” is proposed to provide better access to market and business information for MSMEs.
• The initiative aims to address challenges MSMEs face due to limited market information.
• PM Modi stressed the importance of fair competition between large and small sellers.
• He also highlighted the need to resolve issues consumers face in finding fair prices and addressing grievances.

Q1. Consider the following statements:

Q2. Consider the following countries:

Q3. Consider the following statements about the Northern Sea Route (NSR):

Q4. Consider the following statements regarding Sodium Ion Batteries:

Q5. The area known as 'Sahel Region' sometimes appears in the news in the context of: