Indian Express Editorial Summary

Editorial Topic : India’s Foreign Policy Under Jaishankar

 GS-2 Mains Exam : IR

Revision Notes

Question : Evaluate the impact of Jaishankar’s approach towards the Global South and its implications for India’s foreign policy.

Introduction

• BJP-led coalition government continues with S Jaishankar as Foreign Minister.
• Jaishankar’s tenure will see a blend of continuity and change in India’s foreign policy approach.

Jaishankar’s Global Voice for India

• In 2022, Jaishankar challenged the notion that Europe’s problems hold global significance while ignoring issues faced by the rest of the world.
• This resonated with India and the Global South, prompting German Chancellor Olaf Scholz to acknowledge the validity of his point a year later.
• India’s goodwill as a neutral and non-aggressive power has served it well in recent years despite major geopolitical shifts.
• Going forward, India will need a more nuanced narrative based on its economic growth, participation in global trade regimes, and its digital advancements.

Continuities in Foreign Policy

1. Focus on Subcontinent

• The presence of India’s South Asian neighbors (except Pakistan) and Indian Ocean partners at the inauguration of the new government reflects continued focus on regional integration and geopolitical cohesion.

1. Championing the Global South

• India’s G20 presidency in 2023 prioritized the Global South, exemplified by the inclusion of the African Union.
• The launch of the “Development and Knowledge Sharing Initiative” highlights India’s commitment to knowledge sharing and capacity building for the Global South.

1. Maintaining Relations with Great Powers

• India has fostered strong ties with major powers like the US, Russia, and the G7 countries, evidenced by participation in various multilateral groupings and dialogues.
• Despite border tensions, India has managed its relationship with Russia, maintaining political engagement and defense imports.
• While not yet part of trade regimes with major powers, India is exploring such partnerships with middle powers.

The shifts in foreign policy

1. A shift from geo-politics to geo-economics

• India’s global conversation has to transition from the political to the economic.
• Delhi has made many commitments to investors, and the biggest is that India can be a trusted +1 alternative to China.
• Expect a greater effort on the Make in India initiative and the expansion and professionalisation of supply chains and attendant infrastructure.
• Corporate India will be encouraged to increase investments in manufacturing.
• India will need to position itself as a services exporter, beyond IT services.
• Much of the Global South is rich in human capital and will be following India’s example.
• A new coalition partner in the government, the Telugu Desam Party, is completing the building of Amaravati. Its goal is to have a modern capital — one that can compete on the tech front domestically (with Bangalore and Hyderabad) and internationally.
• India’s digital public infrastructure model is already accepted and promoted in developed and developing countries.

 

2. More coordination among Middle powers

• The last five years have seen instability.
• Covid, the Russia-Ukraine war, the Gaza conflict and the sanctions imposed by the great powers have pushed the global system to the brink.
• The middle powers — countries with economic, regional and military heft — are beginning to be heard. Many like Australia, South Korea, Saudi Arabia, Turkey, Singapore, and Germany punch above their weight.
• The emerging middle powers have significant talent and populations.
• This is where India fits in, along with Brazil, South Africa, Mexico, and Indonesia.
• India will increase its engagement with its peer group.

 

Conclusion: India is an important participant in several groupings, old and new. Its goal is economic and financial progress, and just global governance. This is a reflection of the emerging multipolar world order, with neither the “exorbitant privilege” of dollar domination, nor the reserve-currency obsession of the Yuan. India is central to the on-going global shifts. By keeping itself anchored, it helps to keep the world steady.

 

 

Indian Express Editorial Summary

Editorial Topic : GST Council Meeting

 GS-3 Mains Exam : Economy

Revision Notes

Introduction:

• On Saturday, the newly formed Union government’s GST Council met for the first time.
• The council’s decisions aimed to simplify tax compliance and reduce litigation for taxpayers.

What is the GST Council?

• Established in 2016 under Article 279A(1) of the amended Constitution.
• Joint forum of the Central Government and states.
• Members:
  • Union Finance Minister (Chairperson)
  • Union Minister of State (Finance)
  • Finance or Taxation Ministers from each state

GST Council Recommendations:

• Waive interest and penalties on tax demand notices under Section 73 for three financial years if tax is paid by March 2025.
• Reduce pre-deposit required to file appeals.
• Introduce monetary limits for the tax department to file appeals.

Burning Issues for the GST Council:

1. Rate Rationalization:
   • Group of Ministers (GoM) formed in September 2021 to examine the issue.
   • Interim report submitted in June 2022.
   • Potential discussion at the next council meeting.
   • Balancing revenue neutrality:
     • Chief Economic Advisor’s report suggests a revenue neutral rate of 15.3%.
     • Weighted average GST rate at 14.4% in May 2017, dropping to 11.6% by September 2019.
   • Possible measure: Merging two tax slabs.
2. Expanding GST Coverage:
   • Including currently exempt items like petroleum products.
   • Challenge: Significant revenue source for both Centre and states.
3. Compensation Cess:
   • Originally levied for five years (ending June 2022), extended to March 2026.
   • To repay loans for compensating states’ pandemic revenue losses.
   • Loans of Rs 1.1 lakh crore (2020-21) and Rs 1.59 lakh crore (2021-22).
   • Potential discontinuation after 2025-26 if loans are repaid.

Conclusion:

• Extensive deliberation needed within the GST Council on these critical issues.
• Central government must address state revenue concerns and build consensus for future measures.