AIR Summary and Sansad TV
May 3rd Week
Geopolitical significance of Chabahar Port
In news
- Long-term Main Contract for development of Shahid Beheshti Port Terminal, Chabahar signed between India Port Global Limited (IPGL) and Ports and Maritime Organization (PMO) of Iran
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Details:
- Chabahar Port is located in southeastern Iran on the coast of the Gulf of Oman, near the border with Pakistan. Specifically, it is situated in Sistan and Baluchestan Province, making it Iran's only oceanic port with direct access to the Indian Ocean.
- Its strategic position is about 72 kilometers (45 miles) west of the Pakistan border and approximately 950 kilometers (590 miles) southeast of Tehran, the capital of Iran.
- This location provides it with a critical advantage for maritime trade routes and regional connectivity, particularly between the Middle East, Central Asia, and South Asia.
Key Agreements and Investments:
- 2016 Trilateral Agreement: In May 2016, India, Iran, and Afghanistan signed a trilateral agreement to develop Chabahar Port and establish transit and transport corridors.
- Financial Commitment: India pledged $500 million for the development of Chabahar Port, including port infrastructure, equipment, and operations. Additionally, India committed $1.6 billion for related infrastructure projects, such as rail link
Significance of Chabahar Port:
1)Strategic and Geopolitical Importance:
- Regional Connectivity:
- Direct Access to Afghanistan: Chabahar Port provides India with a direct maritime route to Afghanistan, bypassing Pakistan. This enhances India's strategic access to Central Asia and reduces dependency on Pakistani routes.
- Link to Central Asia: By connecting to the International North-South Transport Corridor (INSTC), Chabahar facilitates trade between India, Iran, Russia, and Central Asia, enhancing regional connectivity.
- Counterbalance to Gwadar:
- Strategic Rivalry: Chabahar serves as a counterbalance to Pakistan's Gwadar Port, which is developed with Chinese assistance. This helps India maintain a strategic presence in the region and counter China's influence.
- Security Considerations: The port’s location in the Gulf of Oman enhances India's maritime security and provides a strategic foothold near the Strait of Hormuz, a critical chokepoint for global oil shipments.
2)Economic and Trade Benefits:
- Trade Facilitation:
- Reduced Transit Time and Costs: Chabahar Port offers a shorter and more efficient route for Indian goods to Afghanistan and Central Asia, significantly reducing transit time and costs compared to traditional routes through Pakistan.
- Boost to Indian Exports: The port enhances the export potential of Indian goods, including agricultural products, textiles, and pharmaceuticals, by providing a reliable and efficient trade route.
- Regional Economic Integration:
- Economic Growth: Chabahar Port is expected to boost economic growth in the region by facilitating trade and investment, benefiting not only Iran and India but also Afghanistan and Central Asian countries.
- Infrastructure Development: The development of associated infrastructure, such as rail and road links, enhances regional connectivity and economic integration, promoting overall regional development.
3)Developmental Impact on Afghanistan:
- Alternative Trade Route:
- Access to Global Markets: Chabahar provides Afghanistan with an alternative route to global markets, reducing its dependency on Pakistani ports and enhancing its trade prospects.
- Economic Stability: Improved connectivity through Chabahar contributes to Afghanistan's economic stability and development, fostering better trade links and economic opportunities.
- Humanitarian and Reconstruction Aid:
- Aid and Supplies: Chabahar facilitates the transport of humanitarian aid and reconstruction supplies to Afghanistan, supporting its recovery and development efforts.
- Employment Opportunities: Development projects related to Chabahar Port generate employment opportunities in Afghanistan, contributing to local economic growth and stability.
4)Regional Stability and Cooperation
- Strengthening Bilateral Relations:
- India-Iran Cooperation: The development of Chabahar Port strengthens India-Iran bilateral relations, fostering closer economic and strategic ties between the two countries.
- Trilateral Cooperation: The trilateral agreement involving India, Iran, and Afghanistan enhances regional cooperation and stability, promoting mutual interests and economic integration.
- Reducing Extremism and Conflict:
- Economic Development: By promoting economic development and job creation, Chabahar Port can help reduce the conditions that lead to extremism and conflict in the region, contributing to long-term stability.
5)Technological and Infrastructure Advancements
- Modernization of Port Facilities:
- State-of-the-Art Infrastructure: Investments in modernizing Chabahar Port's infrastructure enhance its operational capacity and efficiency, making it a competitive maritime hub.
- Enhanced Logistics: Improved logistics and handling facilities at Chabahar Port facilitate the efficient movement of goods, reducing delays and costs.
- Transport Network Expansion:
- Rail and Road Links: The development of rail and road links connecting Chabahar to Zahedan and further to the Iranian and Afghan networks improves regional transport infrastructure, facilitating smoother trade flows.
- Multimodal Transport: Chabahar’s integration into the INSTC supports multimodal transport solutions, combining sea, rail, and road transport to optimize trade routes.
What Challenges Hinder the Potential of Chabahar Port?
1.Geopolitical and Diplomatic Issues
- Sanctions on Iran:
- International Sanctions: The re-imposition of U.S. sanctions on Iran in 2018 has severely restricted financial transactions and investments, affecting the development and operational capabilities of Chabahar Port. The sanctions have limited access to international financial systems and deterred foreign investors due to potential repercussions.
- Uncertainty for Investors: The geopolitical uncertainty surrounding Iran has made investors cautious. For instance, in 2019, the value of foreign direct investment (FDI) in Iran fell to just $1.5 billion from $5 billion in 2017, reflecting the impact of sanctions and diplomatic isolation.
- Political Instability: Regional instability, particularly in the Middle East, affects the operational environment of Chabahar Port. Iran’s involvement in regional conflicts and its strained relations with neighboring countries contribute to a volatile security landscape.
- Iran-U.S. Relations: The tense relations between Iran and the U.S. complicate international cooperation and create an unpredictable environment for long-term projects. The U.S. withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in 2018 exacerbated these tensions.
2.Security Concerns
- Proximity to Conflict Zones: Chabahar Port is near areas affected by militancy and terrorism, particularly in the Sistan and Baluchestan province. The region has witnessed several terrorist attacks, including a suicide bombing in December 2018 that killed two and injured over 40 people.
- Maritime Security: Ensuring safe passage in the Gulf of Oman and the Strait of Hormuz is critical, given the strategic importance of these waterways. Incidents such as the attacks on oil tankers in 2019 highlight the security risks in the region.
- The Houthi rebels can disrupt sea lanes of communication, which will affect traffic at the Chabahar port as well
3.Economic and Financial Constraints:
- Funding and Investment:
- Lack of Investment: The economic sanctions have significantly hindered the flow of investment into Iran. According to the World Bank, Iran's GDP growth contracted by 6.8% in 2019, highlighting the economic challenges the country faces.
- High Costs: Developing modern port infrastructure is capital-intensive. Estimates suggest that the full development of Chabahar Port and its associated infrastructure could require investments upwards of $1 billion, which is challenging to secure under current economic conditions.
- Trade Volumes: Achieving sufficient trade volumes to justify the investment remains a challenge. For instance, in 2019, Chabahar Port handled approximately 2.1 million tons of cargo, a fraction of its potential capacity, indicating underutilization due to various constraints.
4.Infrastructure and Connectivity
- Construction and Modernization: Progress on infrastructure projects has been slow. The development of the railway line from Chabahar to Zahedan, a critical link for trade, has faced significant delays. The project, originally expected to be completed by 2022, is still ongoing with no definitive completion date.
- Rail and Road Links: Efficient connectivity to the wider region is crucial. The lack of fully developed and operational rail and road links hampers the port's ability to serve as a major trade hub.
- Technological Advancements:
- Outdated Technology: Implementing modern logistics and port management systems is necessary but challenging. The port needs substantial upgrades in technology to improve its efficiency and competitiveness.
5.Bureaucratic and Regulatory Hurdles:
- Administrative Challenges:
- Regulatory Framework: Iran’s complex regulatory environment can be difficult for foreign entities to navigate.
- Bureaucratic Delays: Inefficiencies and delays in administrative processes can slow down project implementation and day-to-day operations, affecting the port's overall efficiency.
6.Competition from Regional Ports
- Gwadar Port: Pakistan’s Gwadar Port, developed with substantial Chinese investment as part of the China-Pakistan Economic Corridor (CPEC), poses direct competition. Gwadar is strategically located just 170 kilometers from Chabahar and has received investments exceeding $1 billion, aimed at making it a major trade and transshipment hub.
- Established Trade Routes: Existing and well-established trade routes and ports in the region, such as Dubai’s Jebel Ali Port, present strong competition. Jebel Ali, the largest port in the Middle East, handled over 14 million TEUs in 2019, showcasing its dominant position in regional trade.
Conclusion:
- Looking ahead, continued cooperation between India and Iran, coupled with international support and investment, will be crucial in overcoming the challenges and realizing the full potential of Chabahar Port. By leveraging its strategic location, modernizing infrastructure, and enhancing logistical capabilities, Chabahar Port has the potential to emerge as a vibrant hub of trade, commerce, and cooperation in the region, fostering mutual prosperity and strengthening ties between India, Iran, Afghanistan, and beyond.
CITATIONS:
Open Network for Digital Commerce
In news
- Department for Promotion of Industry and Internal Trade (DPIIT) organised the ‘ONDC Startup Mahotsav’, a first of its kind event, at Vanijya Bhawan, New Delhi. The event symbolized the celebration and collaboration of two of DPIIT’s flagship initiatives – the Startup India initiative and Open Network for Digital Commerce (ONDC)..
Key Details:
- It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT)under the Ministry of Commerce and Industry.
- Open Network for Digital Commerce (ONDC) is an initiative aiming at promoting open networks for all aspects of exchange of goods and services over digital or electronic network
- It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
- ONDC is to be based on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.
- Providers and consumers would be able to use any compatible application of their choice for exchange of information and carrying out transactions over ONDC
- Thus, ONDC goes beyond the current platform-centric digital commerce model where the buyer and seller have to use the same platform or application to be digitally visible and do a business transaction
Objectives of ONDC:
Major ONDC objectives are as follows:
- Democratisation and decentralization of e-Commerce
- Inclusivity and access for sellers, especially small and medium enterprises as well as local businesses
- Increased choices and independency for consumers
Benefits of ONDC to Sellers and Buyers:
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Benefits of ONDC to Sellers
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Benefits of ONDC to Buyers
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On a single platform, sellers gain access to a vast consumer base..
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The absence of intermediaries often results in lower prices for goods and services, benefiting buyers.
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Sellers can reduce expenses related to advertising and commissions typically charged by intermediaries
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Access to a broader range of sellers grants buyers a wider array of high-quality options..
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By studying customer behavior and trends, sellers can tailor their marketing strategies on an individual level.
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User-friendly features and customized suggestions contribute to a smoother and more convenient shopping experience for buyers.
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Utilizing user-friendly tools and analytics, sellers can optimize their products and services effectively.
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The presence of hyperlocal retailers ensures faster deliveries, improving convenience for buyers.
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Various supply-chain services such as logistics and fulfillment are available to sellers.
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Personalized recommendations, informed by browsing and purchasing histories, enhance the shopping experience for buyers.
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Concerns regarding the Success of ONDC:
The challenges ahead for the Open Network for Digital Commerce (ONDC) include:
- Technical Infrastructure and Integration: Developing and maintaining a robust technical infrastructure that can seamlessly integrate various e-commerce platforms, payment gateways, logistics providers, and regulatory systems is a significant challenge.
- Data Privacy and Security: Safeguarding the privacy and security of user data is paramount.
- Regulatory Compliance and Legal Frameworks: Navigating complex regulatory landscapes and compliance requirements poses a challenge for ONDC.
- User Adoption and Trust: Encouraging widespread adoption of ONDC among consumers, sellers, and service providers will require effective communication, education, and awareness campaigns.
- Market Competition and Monopolistic Practices: Competing with established e-commerce players and addressing concerns about monopolistic practices in the digital commerce ecosystem is a significant challenge.
- Infrastructure and Connectivity: Ensuring adequate infrastructure and connectivity, especially in rural and remote areas, is crucial for the success of ONDC
- Supply Chain and Logistics Management: Optimizing supply chain and logistics operations to enable efficient and timely delivery of goods is essential
- Quality Assurance and Customer Service: Maintaining high standards of product quality, authenticity, and customer service is vital to build trust and credibility among buyers.
Way Forward:
- Interoperability and Technology Investment: Ensuring interoperability and compatibility among diverse stakeholders will require substantial investments in technology and coordination.
- Data Protection and Compliance: ONDC must implement stringent data protection measures to prevent unauthorized access, data breaches, and misuse of personal information. Compliance with data protection regulations and standards will be crucial to building trust among users and stakeholders.
- Legal Framework and Collaboration: Collaborating with regulatory authorities and policymakers to create conducive legal frameworks will be crucial.
- Trust Building and Transparency: Building trust in the platform's reliability, transparency, and security is essential to overcome skepticism and resistance to change.
- Product Verification and Customer Satisfaction: Implementing mechanisms for product verification, dispute resolution, and grievance redressal will be crucial to address concerns about counterfeit products and ensure customer satisfaction.
- Logistics and Supply Chain Management: Addressing challenges related to last-mile delivery, inventory management, and warehousing will require collaboration with logistics partners and investment in technology-driven solutions.
- Competition Regulation and Fair Practices: ONDC must promote fair competition, prevent market dominance by a few players, and ensure a level playing field for all participants.
Conclusion:
- Overall, addressing these challenges will require concerted efforts from various stakeholders, including government agencies, industry players, technology providers, and civil society organizations, to realize the full potential of ONDC in transforming India's digital commerce landscape.
CITATIONS:
Heat Wave Conditions
In news
The Indian Meteorological Department has forecasted Heat Wave conditions in several regions across India.
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Key details :
What is Heat Wave?
- According to the IMD, the definition of a heat wave depends on the physiography of regions.
- The IMD will declare a heat wave if the maximum temperature recorded at a station is
(i)40 degrees Celsius or more in the plains,
(ii)37 degrees Celsius or more in the coast,
(iii)30 degrees Celsius or more in the hills.
- A heatwave’s severity is determined by its departure from normal temperature.There is a ‘normal heatwave’ when the departure is by 4.5-6.4 degrees Celsius and a ‘severe heatwave’ if the departure is greater.
- Heatwave declaration could also be based on actual maximum temperature: a ‘heatwave’ is when this figure is greater than 45 degrees Celsius and a ‘severe heatwave’ when greater than 47 degrees Celsius.
- The IMD takes the latter two ‘routes’ only when at least two stations in a meteorological subdivision report such a high maximum or when at least one station has recorded a corresponding departure from the normal for at least two consecutive days.
What are favorable conditions for Heat wave?:
- Transportation / Prevalence of hot dry air over a region (There should be a region of warm dry air and appropriate flow pattern for transporting hot air over the region).
- Absence of moisture in the upper atmosphere (As the presence of moisture restricts the temperature rise).
- The sky should be practically cloudless (To allow maximum insulation over the region).
- Large amplitude anti-cyclonic flow over the area. Heat waves generally develop over Northwest India and spread gradually eastwards & southwards but not westwards
What is heat index?
- The heat index is the combination of air temperature and relative humidity, it measures of how hot it really feels when relative humidity is factored in with the actual airtemperature. This is also sometimes referred as Apparent temperature and can be understood as the temperature what the body perceive
Health Impacts of Heat Waves?
- The health impacts of Heat Waves typically involve dehydration, heat cramps, heat exhaustion and/or heat stroke.
- The signs and symptoms are as follows:
- Heat Cramps: Ederna (swelling) and Syncope (Fainting) generally accompanied by fever below 39*C i.e.102*F.
- Heat Exhaustion: Fatigue, weakness, dizziness, headache, nausea, vomiting, muscle cramps and sweating.
- Heat Stoke: Body temperatures of 40*C i.e. 104*F or more along with delirium
What are Impacts of Heat Waves on Agriculture?
Physical impacts:
- Water resources: - Because of the close relationship between climate and water, heat wave intensifies the water crises in several regions, especially in arid and semi-arid areas.
- Wild/Forest fires: - Forest Survey of India has estimated that 4 per cent (1,524,21 sq.km) area under forest is vulnerable to forest fires.
- Energy consumption: - The energy sector is one of the key vulnerable industries in the wake of the projected rise in surface air temperature. Power outages are triggered by the disproportionally high electricity demand due to air-conditioning during heat waves.
Physiological impacts:
- Crops :High temperatures beyond certain optimum level reduce plant growth by affecting the shoot net assimilation rates, and thus the total dry weight of the plant is collectively termed as heat stress, which is one of the most important factors limiting crop.
- Livestock: Under heat stress, a number of physiological and behavioral responses of livestock vary in intensity and duration in relation to the animal genetic makeup and environmental factors.
- Poultry Heat stress interferes with the broilers comfort and suppresses productive efficiency, growth rate, feed conversion and live weight gain due to changes in behavioural, physiological and immunological responses.
- Fisheries Heat Waves can affect fisheries and aquaculture via acidification, changes in sea surface temperatures and circulation patterns, frequency and severity of extreme events and sea level rise and associated ecological changes.
Initiatives Taken by the Government of India to Tackle Heat Waves:
- Early Warning Systems
- Heat Wave Warnings: Issuing timely heat wave warnings and advisories to the public and authorities to prepare and respond effectively.
- Forecasting Models: Utilizing advanced forecasting models to predict heat wave conditions accurately and provide early alerts.
- Weather Forecasting Services
- Daily Forecasts: Providing daily weather forecasts during the summer months, highlighting regions expected to experience heat wave conditions.
- Extended Range Forecasts: Offering extended range forecasts up to two weeks in advance to help in planning and preparedness.
- Heat Wave Bulletins
- Special Bulletins: Issuing special heat wave bulletins that provide detailed information on the expected duration, intensity, and geographic extent of heat waves.
- Regional Bulletins: Tailoring bulletins to specific regions to address localized heat wave conditions.
- Collaboration with State Governments and Agencies
- Coordination with NDMA: Working closely with the National Disaster Management Authority (NDMA) and state governments to disseminate heat wave warnings and take preventive measures.
- Support to Health Departments: Providing data and forecasts to health departments to prepare for increased cases of heat-related illnesses.
Conclusion:
- Heat waves pose significant health, environmental, and economic challenges, particularly in regions prone to extreme temperatures like India. Addressing these challenges requires a multifaceted approach involving accurate forecasting, public awareness, and robust emergency response systems
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