24 Jun 2023: UPSC Exam Comprehensive News Analysis

B. GS 2 Related

Nothing here for today!!!

E. Editorials

Category: INTERNATIONAL RELATIONS

1. India-Egypt summit

Syllabus: Bilateral, Regional & Global Groupings & Agreements Involving India and/or Affecting India’s Interests

Mains: Significance of Egypt to India

Context: Prime Minister Narendra Modi’s visit to Egypt (June 24-25, 2023).

Introduction:

• India and Egypt, two ancient civilizations, have a longstanding history of cultural and economic ties that date back centuries. 
• With shared values of democracy, diversity, and strategic regional importance, the bilateral relationship between the two nations has been growing steadily over the years. 
• Despite historical goodwill and cultural exchanges, tangible outcomes have been limited. Therefore, historical inspiration must be invoked to enhance bilateral relevance and substance, building upon the rich past of India-Egypt relations.

Performance of bilateral ties:

• In the fiscal year 2022-23, India’s trade with Egypt amounted to $6,061 million, with a significant portion being petroleum-related. 
• However, this figure represented a 17% decline from the previous year. Egypt ranked as India’s sixth largest trading partner, while India stood at the 38th position for Egypt.
• Indian investments in Egypt totalled $3.15 billion across 50 projects, with a substantial portion contributed by a single company. On the other hand, Egypt’s investments in India were only $37 million.
• The current underperformance of bilateral ties cannot be attributed to a lack of bilateral institutional mechanisms, as numerous mechanisms exist. 
  • These include a Joint Commission, Foreign Office Consultations, and various joint working groups. 
• Furthermore, both countries have witnessed visits from their Defense and External Affairs Ministers, and a bilateral summit was held less than five months ago when the Egyptian President, Abdel Fattah El-Sisi, visited India.

Opportunities and challenges:

• The upcoming Cairo Summit must seize the opportunities available while navigating potential challenges. 
  • With a large population of 105 million and a significant economy worth $378 billion, Egypt offers considerable potential for collaboration. 
    • The country’s major imports, including refined petroleum, wheat, cars, corn, and pharmaceuticals, present opportunities for India to supply.
  • Egypt’s ambitious infrastructure development agenda, encompassing 49 mega projects such as New Cairo ($58 billion), a nuclear power plant ($25 billion), and a high-speed rail network ($23 billion), further opens avenues for cooperation with India. 
  • Additionally, Egypt’s position as the world’s third-largest arms importer during 2015-19 provides potential opportunities for defense trade.
• However, these opportunities are countered by substantial challenges. 
  • Egypt’s economy is currently facing a severe crisis, with significant financial commitments coinciding with a stagnant economy, global slowdown, pandemic, and the Ukraine conflict. 
    • These factors have led to a decline in tourism and increased costs for essential imports like cereals. 
  • Annual inflation has surpassed 30%, and the currency has depreciated by more than half since February 2022. Foreign exchange scarcity has forced the deferral of payments for crucial items like wheat.
  • While a $3 billion bailout package was secured from the International Monetary Fund six months ago, it is conditional upon implementing challenging economic reforms. However, progress in these reforms has been hindered by entrenched interests and crony capitalism, resulting in a slowdown.
  • Egypt’s foreign debt stands at over $163 billion, equivalent to 43% of its GDP, and the country’s net foreign assets are in negative territory at minus $24.1 billion. 

Road Ahead: 

• Indian participants at the Cairo Summit should cautiously manage their engagement with Egypt while capitalizing on available opportunities. 
• India could assess and accept manageable economic and political risks to access Egypt’s lucrative prospects, utilizing innovative approaches such as the EXIM line of credit, barter, and rupee trading.
• India should also explore alternative funding arrangements for projects in Egypt or elsewhere, such as trilateral partnerships involving Gulf nations, the G-20, or multilateral financial institutions.
• By considering trilateral funding mechanisms, India can mitigate potential risks, share the financial burden, and ensure a more sustainable and equitable arrangement for construction projects in Egypt. 
  • This approach would help India leverage its partnerships while avoiding potential financial liabilities that could adversely impact its domestic taxpayers.
• It is imperative for India and Egypt to reevaluate the efficacy and purpose of their existing bilateral mechanisms, moving beyond symbolic gestures.
• Both countries need to prioritize concrete actions and collaborations that foster economic growth, investment, and people-to-people exchanges. By doing so, the bilateral relationship can overcome its current underperformance and achieve greater relevance and substance in the future.

Read more on India-Egypt Relations.

Nut Graf: Despite historical goodwill between India and Egypt, tangible outcomes have been limited. To enhance bilateral relevance and substance, India and Egypt must reevaluate existing mechanisms, prioritize concrete actions, and explore alternative funding arrangements for projects. 

Category: INDIAN SOCIETY

1. Bridging the gap

Syllabus: Population and Associated Issues

Mains: Challenges of gender disparities in India

Context: Annual Gender Gap Report, 2023

Key Details: 

• In the annual Gender Gap Report 2023, India has shown progress by climbing eight places to rank 127 out of 146 countries in terms of gender parity. 
• India has the opportunity to enhance gender equality across four key markers: economic participation and opportunity, educational attainment, health and survival, and political empowerment.
• India has performed well in education and political empowerment, with over 40% representation of women in local governance.
• The report highlights that women represent only 15.1% of parliamentarians, the highest since 2006. 
  • This emphasizes the need for the Women’s Reservation Bill, pending since 1996, which aims to reserve 33% of seats in the Lok Sabha and State Assemblies for women.
• To gauge the current state of women’s participation in politics, consider the case of Nagaland, a state established in 1963, where the first two women MLAs were elected only in 2023. 
  • This example underscores the importance of accelerating efforts to enhance women’s representation and participation in political decision-making processes.
• When it comes to economic participation and opportunity, India ranks poorly with less than 40% gender parity, indicating a significant disparity between men and women.
  • Although there have been improvements in wage and income parity, there is a decline in the representation of women in senior positions and technical roles.

Road Ahead: 

• By promoting gender equality in politics and providing equal opportunities in education, healthcare, and economic participation, India can unleash the potential of its female population and drive comprehensive development.
• It is crucial for India to build on its achievements and address the remaining gender gaps, enabling women to play an active role in shaping the country’s future and contributing to its progress.
• India’s performance in health and survival also raises concerns, despite some progress in the sex ratio at birth after a period of slow improvement. 
  • To address this, it is crucial to ensure equal access to education for girls at both school and college levels, as well as providing opportunities for paid work.
• The burden of unpaid work that women bear at home often prevents them from pursuing paid employment. 
• By providing girls with an education that guarantees job prospects, overall development indicators, including nutrition, can be improved. 
  • This approach can also break the cycle of early marriages that lead to poor maternal and child health outcomes.
• Achieving gender equality requires comprehensive measures to address economic disparities, promote education and job opportunities, and challenge deeply ingrained gender norms. By doing so, India can create a more inclusive society that benefits both men and women.
• Despite the challenges, it is essential to remain committed to advancing gender equality, as it is not only a matter of justice and rights but also critical for the overall socio-economic development and well-being of the nation.

Nut Graf: In the Gender Gap Report 2023, India improved its ranking, but significant gender disparities persist. India must focus on economic participation, education, health, and political empowerment to bridge the gaps. Enhancing women’s access to education, healthcare, and paid work is vital for achieving comprehensive development and gender equality in India.

Q1. Consider the following:

Q2. Consider the following statements w.r.t Global Gender Gap Report:

Q3. The Cabinet Committee on Security is chaired by:

Q4. India Semiconductor Mission was launched in the year:

Q5. ‘L-20’, recently seen in news is:

I. UPSC Mains Practice Questions

1. Discuss the opportunities and challenges in the India-Egypt bilateral relationship. (150 words, 10 marks)  (GS-2; International Relations)
2. “India has to go a long way on certain indicators according to the Gender Gap Report”. Comment. (150 words, 10 marks) (GS-1; Indian Society)

Read the previous CNA here.