16 Dec 2023: UPSC Exam Comprehensive News Analysis

E. Editorials

Category: INTERNATIONAL RELATIONS

1. India-Oman relations

Syllabus: GS-2, Effect of policies and politics of developed and developing countries on India’s interests.

Mains: India-Oman relations

Context:​ Sultan Haitham bin Tarik’s state visit to India from December 16, 2023. The significance of the visit given Oman’s strategic importance to India.

Historical Ties

• Trade between India and Oman has a history of several millenniums and archaeological excavations in Oman have unearthed evidence to show Indo-Oman trade during the Classical Age dated to circa third century BCE.
• Later, Oman had links with the Indians through Gujarat, and with Tamilakam along the Malabar Coast.
• The Sultans of Oman and Zanzibar heavily banked on Kutchi moneylenders such as Jairam Shivji.
• A large number of Kutchi Bhatias migrated from Kutch to Muscat and from Muscat to Zanzibar.

Contemporary Ties

• The relationship was upgraded to Strategic Partnership in 2008 during Prime Minister Manmohan Singh’s visit to Oman.
• Oman has been a key pillar of India’s West Asia Policy.
• Oman is a strategic partner of India in the Gulf and an important interlocutor at the Gulf Cooperation Council (GCC), Arab League, Indian Ocean Rim Association (IORA) and Indian Ocean Naval Symposium (IONS).

Oman’s Strategic Importance:

• Geopolitical Significance:
  • Proximity to India, key Omani ports along the Arabian Sea, Gulf of Oman, and access to the Persian Gulf.
  • Oman, along with Saudi Arabia and the UAE, forms a crucial strategic partnership for India in the Gulf region.
• Historical Ties:
  • Strong historical connections between the ruling family of Oman and India.
  • Sultan Qaboos’ positive stance towards India, inviting Indian companies and professionals.
• Role in Diplomacy and Peace:
  • Oman’s role as an island of peace in a conflict-prone region.
  • Pursuit of a foreign policy based on moderation, mediation, and deliberate neutrality.
• Key Diplomatic Engagements:
  • Oman’s role in diffusing tensions during the Persian Gulf crisis in 2019.
  • Oman’s involvement in the Iran nuclear deal in July 2015.
  • Refusal to join the diplomatic ties break with Qatar in 2017.

India-Oman Strategic Partnership:

• Defence and Security:
  • MoU in 2005 governing defence and security engagement.
  • Joint exercises with all three wings of India’s defence forces.
  • Joint Military Exercises: Al Najah (Army exercise), Eastern Bridge (Air Force exercise), Naseem Al Bahr (Naval Exercise). 
  • Duqm Port: In 2018, India announced that it had secured access to the facilities at Duqm for the Indian Air Force and the Indian Navy.
  • During the Persian Gulf crisis in June 2019, the Indian Navy launched ‘Operation Sankalp’ to ensure the safe passage of Indian-flagged ships which most often operated off the coast of Oman.
  • Operation Kaveri in Sudan & Anti-Piracy Missions in the Gulf of Aden.
• Economic & Cultural Ties
  • Oman is a major supplier of oil, minerals, LNG, polyethene, propylate, aluminium, and urea to India.
  • For Oman, India was the 3rd largest (after UAE and China) source for its imports and 3rd largest market (after UAE and Saudi Arabia) for its non-oil exports.
  • Major Indian financial institutions have a presence in Oman.
  • In 2022, India and Oman launched the Rupay debit card in Oman, a key footprint of India’s initiative of promoting digital public infrastructure (DPI) in the world.
  • Indian companies have invested in Oman in sectors like iron and steel, cement, fertilizers, textiles, etc.
  • There is a large Indian community of almost 7 lakh people.
• Trade and Commerce:
  • Bilateral trade reaching $12.388 billion in FY2022-23.
  • Over 6,000 India-Oman joint ventures with an investment of over $7.5 billion.
  • India was the second-largest market for Oman’s crude oil exports in 2022.
• Recent Developments:
  • Launch of Rupay debit card in Oman in October 2022.
  • MoU on space cooperation and the potential agreement on joint exploration of rare earth metals.
  • Proposal for the India-Middle-East-Europe Connectivity Corridor (IMEEC) and the South Asia Gas Enterprise (SAGE) pipeline project.

Nut Graf: Oman is India’s gateway to West Asia, playing a vital role in regional stability. The ongoing Israel-Hamas war adds significance to Sultan Haitham bin Tarik’s visit, making it timely and crucial for India and the region.

1. Govt U-turn on ethanol production

Context: Government’s reversal on the ban on using sugarcane juice for ethanol production. Flexibility granted to use both sugarcane juice and B-heavy molasses, capped at 17 lakh tonnes of sugar diversion in 2023-24.

Background and Reversal:

• Initial Ban:
  • A week earlier, the government banned the use of sugarcane juice and sugar syrup for ethanol production.
  • Industry sought a reversal of the decision.
• Revised Decision:
  • December 15: Government reverses the ban and allows the use of sugarcane juice and B-heavy molasses for ethanol.
  • Sugar diversion capped at 17 lakh tonnes for the 2023-24 supply year.

Sugar Production Challenges:

• Anticipated decline in sugar production to 32.3-33 million tonnes in 2023-24.
• Factors: Low cane production, recent rainfall affecting recovery, drought in Maharashtra and Karnataka.

Ethanol Blending Targets:

• Target of 15% blending of ethanol with petrol for the 2023-24 supply year.
• Achieved 12% blending in the previous supply year (2022-23).
• Industry’s financial health.

Concerns and Demand:

• Industry faces difficulties due to low sugar prices, no sugar export, and ban on sugarcane juice for ethanol.
• Demand for a revision in ethanol prices to improve millers’ financial health.

Export and Production Projection:

• India exported 64 lakh tonnes of sugar in the 2022-23 marketing year.
• Projected sugar production at 325 lakh tonnes in 2023-24 with potential diversion of 17-20 lakh tonnes for ethanol.

Investment and Risk:

• Industry invested ₹15,000 crore in the last three years for ethanol production capacity.
• The risk associated with the huge investment due to uncertainties in policies.

Ethanol Pricing Demands:

• Ethanol Price Revision: Demand to raise ethanol prices from ₹59 to ₹64 per litre for B-heavy molasses. C-heavy molasses price to be increased to ₹58-59 per litre from ₹49 per litre.

H. UPSC Prelims Practice Questions

Q1. Essequibo region, often seen in the news, is a source of dispute between 
which of these countries?

1. Guyana and Venezuela
2. Venezuela and Brazil
3. Brazil and Guyana
4. Guyana and Suriname

CHECK ANSWERS:-

Answer: a

Explanation: Essequibo is the western region of Guyana which Venezuela claims as its own. This mineral-rich region is a source of dispute between Venezuela and Guyana.

Q2. Consider the following statements with respect to Ethanol:

1. It is a biofuel produced from sugar and starch-based feedstocks which are also used as food and animal feed.
2. Ethanol yields from grains are higher compared to molasses.

Which of these statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

CHECK ANSWERS:-

Answer: c

Explanation: Both the statements are correct.

Q3. Which of these countries do not border the Red Sea?

1. Libya
2. Yemen
3. Sudan
4. Eritrea

CHECK ANSWERS:-

Answer: a

Explanation: Libya does not share a border with the Red Sea. It borders the Mediterranean Sea. 

Q4. Which of the following countries is a member of both G7 and G20?

1. Australia
2. Mexico
3. Brazil
4. Canada

CHECK ANSWERS:-

Answer: d

Explanation: Canada is a member of the G7 grouping as well as the G20. 

Q5. Exercise ‘Al Najah’ Exercise ‘Eastern Bridge’ and Exercise 
‘Naseem Al Bahr’ are joint military exercises between India and

1. Oman
2. Saudi Arabia
3. United Arab Emirates
4. Maldives

CHECK ANSWERS:-

Answer: a

Explanation: Joint Military Exercises between India and Oman are: Al Najah (Army exercise), Eastern Bridge (Air Force exercise), and Naseem Al Bahr (Naval Exercise).