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Editorials & Articles – 23 Feb 2024

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Editorials & Articles – 23 Feb 2024

The government must keep the regulatory environment of space sector clear

Context
  • The article discusses India’s transformative steps in the space sector, opening doors to private investment, foreign partnerships, and strategic reforms.
  • It explores the country’s ambition to compete globally and catch up with China in the rapidly evolving space exploration landscape.

Evolution of Space Exploration Narratives:

  • Space exploration has evolved from a romantic notion to a field with financial, socio-economic, and geopolitical implications.
  • Private sector involvement is now crucial, challenging the traditional dominance of national agencies.

India’s Space Sector Reforms (2020-2023):

  • In 2020, India initiated state-led reforms opening the space sector to private companies.
  • Geospatial Guidelines, Indian Space Policy, and the creation of IN-SPACe followed, promoting private sector participation.
  • The Telecommunications Act 2023 allowed for satellite broadband services, signalling a comprehensive approach.

FDI Opening Doors (February 21, 2023):

  • The Indian government allows 100% FDI in the manufacturing of satellite components and systems.
  • Up to 74% FDI permitted in satellite manufacturing, operations, and data products; up to 49% in launch vehicles, space ports, and related systems.

Strategic Advantages and Catching up with China:

  • India aims to leverage foreign ties for substantial FDI, positioning itself strategically against China in the global space race.
  • China’s space program faces challenges in attracting foreign investments due to belligerent foreign policies and military modernization efforts.

Impacts on India’s Space Economy:

  • The decision enhances India’s ability to compete globally, attracting investments to space start-ups.
  • Increased access to talent and capital, balancing upstream and downstream opportunities, boosting local manufacturing, and improving investor confidence are expected outcomes.

Sustaining Positive Trends:

  • To sustain the positive changes, the government needs to maintain a clear regulatory environment, reduce red tape, garner public support, and facilitate Indian companies’ access to foreign markets.
  • Ongoing efforts are crucial for fostering a dynamic and thriving private space sector in India.

Conclusion:

  • This strategic move positions India to capitalize on the evolving dynamics of the global space industry, fostering innovation, competitiveness, and economic growth.
Regulation of Space Sector in India
Need for Regulation:

  • Promote private sector participation: Enables a level playing field and encourages investment in space activities.
  • Ensure safety and security: Regulates space debris mitigation, launch activities, and potential hazards etc.
  • Protect national interests: Safeguards sensitive information and technologies related to space exploration and applications.

Challenges:

  • Evolving space industry: Rapid technological advancements require adaptable regulations to avoid stifling innovation.
  • Balancing safety and competitiveness: Balancing stringent safety measures with fostering a dynamic and competitive space market.
  • International collaboration: Ensuring compatibility with international regulations and frameworks for seamless collaboration.

Way Forward:

  • Phased approach: Implement regulations progressively, starting with core aspects and adapting to industry growth.
  • Stakeholder consultation: Involve industry, academia, and public in regulatory development for informed decision-making.
  • Focus on risk-based regulation: Tailor regulations based on the specific risks associated with different space activities.
  • Leverage international best practices: Learn from established spacefaring nations and adapt regulations to the Indian context.
  • Effective regulation can unlock the immense potential of India’s space sector, ensuring its safe, secure, and sustainable growth.

In a tough world, the beacon of U.K.- India strategic ties.

Context
  • The article highlights the deepening Indo-UK ties, focusing on maritime connections, challenges to global trade, joint responses to conflicts like Operation Prosperity Guardian, ongoing support to Ukraine.
  • The article also highlights strengthening of defense and industrial partnerships between the two nations.

 Indo-UK Maritime Connections:

  • UK and India, as outward-facing, mercantile societies, share historical and contemporary ties through oceanic trade.
  • Maritime activities, essential for global prosperity, now extend to underwater data cables supporting online banking and capital flows.

Global Trade Challenges:

  • Norms governing maritime behaviour, crucial for global trade, are increasingly under threat globally from the Black Sea to the South China Sea.
  • The article emphasizes the need to secure global lifelines of goods and resources flowing across seas amid rising instability.

Operation Prosperity Guardian:

  • In response to threats in the Red Sea and Gulf of Aden, the UK, the US, and partners initiated Operation Prosperity Guardian in December 2023.
  • The operation aims to defend and protect commercial shipping, addressing threats posed by indiscriminate actions, such as Houthi attacks.

Indo-UK Defence Partnership:

  • Recognizing the Indo-Asia-Pacific as the future global economic centre, the UK welcomes the establishment of its tilt policy in 2023.
  • Indo-UK defence ties deepen, with increased interactions between British and Indian forces, culminating in visits and exercises.

Defence Industrial Partnership:

  • The UK and India’s defence industrial partnership strengthens, encompassing areas like electric warship propulsion, complex weaponry, and jet engines.
  • Military education ties, spanning 75 years, are set to be enhanced with Indian Armed Forces officers joining British service academies.

Global Strategy and Coalition Building:

  • Emphasizing the historical ineffectiveness of isolationism or coercion, the article underscores the importance of friends, partners, and allies.
  • Advocacy for the rules-based International Order, crucial for peace and prosperity, becomes even more vital in an increasingly unstable world.

India as a Valued Ally to UK:

  • In the face of challenges, the UK expresses gratitude for India’s friendship, considering it a source of support and strength.
  • Both nations are committed to uphold shared values and contribute to the rules-based International Order for global peace.

Conclusion:

  • The article comprehensively covers Indo-UK maritime connections, global trade challenges, responses to regional conflicts, deepening defence partnerships, and the collective advocacy for a rules-based international order.
  • It underscores the importance of strategic alliances and the shared commitment to peace and prosperity in an evolving global landscape.

 A long institutional road

Context:
  • Two recent decisions by the Supreme Court of India have garnered attention for their impact on electoral democracy.
  • The first decision declared the electoral bonds scheme unconstitutional, while the second pronounced the Aam Aadmi Party (AAP) as the winner in the mayoral race in Chandigarh.
  • These decisions are viewed as a positive development in a context where the Supreme Court’s role in upholding democratic principles has been questioned.
  • However, while these decisions are lauded individually, their systemic implications and their ability to counteract the degradation of institutional legitimacy require further analysis.

  Balancing Institutional Legitimacy:

  • The Supreme Court, like any institution, must balance its actions to maintain its legitimacy while also fulfilling its constitutional duties.
  • The Court often treads cautiously to avoid antagonizing the executive branch, as its own legitimacy is intertwined with maintaining a delicate balance of power.
  • Even when the Court rules against the government, it may not challenge the core ideological projects of the ruling party.
  • Therefore, while decisions like those on electoral bonds and the Chandigarh mayoral race are commendable, they may not signal a fundamental shift in the Court’s relationship with the executive.

Maintaining the Façade of Legitimacy:

  • In some cases, the Court’s intervention serves to remind the executive of the need to maintain the façade of legitimacy, particularly concerning democratic principles and constitutional norms.
  • Decisions such as those related to electoral integrity or egregious violations of constitutional principles highlight the boundaries that even a brazen executive cannot cross without risking legitimacy.
  • However, the broader political culture’s response to such decisions indicates a normalization of institutional perfidy, where even significant breaches do not necessarily lead to political consequences for the ruling party.

Challenges to Systemic Regeneration:

  • Despite occasional positive rulings, skepticism remains regarding the Court’s ability to foster systemic regeneration.
  • The Court’s historical acquiescence to the executive’s agenda and the broader political culture’s acceptance of institutional degradation undermine hopes for significant change.
  • The fragmented opposition and the lack of consistent civic courage contribute to the normalization of institutional breacheseroding expectations of accountability.

Conclusion:

  • While the recent decisions by the Supreme Court are welcome, they should not be seen as isolated instances of legitimizing the façade of constitutionalism.
  • Instead, they need to be part of a broader pattern challenging authoritarianism and communalism wherever they manifest.
  • In the absence of sustained efforts to hold the government accountable and restore institutional integrity, the significance of individual judicial interventions remains limited.

How to make MSP work

Context:
  • Since its inception in 1965, the Minimum Support Price (MSP) system in India has faced various challenges, including issues related to crop inclusion, MSP formula, effective implementation, and enforcement.
  • It is noteworthy that protests surrounding the MSP often emerge from regions benefiting the most from it, where implementation has been relatively successful.
  • This paradox underscores the complexity of agricultural pricing policies and their implications.

Reasons for Focus on MSP:

  • The focus on MSP stems from several factors, including inefficient and poorly competitive markets, the failure of markets to adapt to the changing needs of the agricultural sector, neglect of non-price factors affecting productivity and income, and the direct impact of prices on farmers’ income.
  • These issues have fueled demands for reforms aimed at ensuring fair remuneration for farmers and addressing agrarian distress.

Evolution of MSP Implementation:

  • Initially, MSP implementation was limited to a few states and a select set of crops, notably paddy, wheat, and cotton.
  • However, concerns over stagnating agricultural income, unfavorable terms of trade, and rising farmer suicides prompted attention towards the need for remunerative pricing policies.
  • The recommendations of the National Commission on Farmers, led by the Swaminathan Panel, emphasized reforms in agricultural markets, contract farming, and land reform, among others.
  • Particularly noteworthy was the recommendation that MSP should be at least 50 percent higher than the weighted average cost of production.

Challenges with New MSP Concept:

  • The introduction of the “new MSP” concept, as proposed by the Swaminathan Panel, mandated a minimum of 50 percent margin over the comprehensive cost (C2) of production.
  • However, this approach raised concerns regarding its sustainability and impact on market dynamics.
  • By fixating on cost C2 and imposing a fixed margin, the new MSP may distort market signals and discourage demand-driven growth in agriculture.

Policy Options and Recommendations:

  • Various policy options, including legal guarantees for MSP, deficiency price payment systems, and assured prices to farmers, have been proposed to address pricing challenges.
  • However, each option presents its own set of complexities and trade-offs.
  • For instance, legalizing MSP may not ensure effective implementation or address market distortions.
  • Similarly, deficiency price payment systems may face fiscal constraints and WTO challenges if not properly designed.

Conclusion:

  • To address the challenges surrounding MSP effectively, a balanced approach is necessary.
  • This involves revisiting the MSP formula to incorporate variable margins and exploring alternative pricing mechanismssuch as Assured Price to Farmers (APF), which includes a component for farmer margin or profit.
  • Additionally, there is a need for greater coordination between the central and state governments to ensure the effective implementation of MSP across different crops and regions.
  • Ultimately, a comprehensive set of reforms is required to enable markets to provide remunerative prices to farmers and reduce their dependence on government intervention.
        Various Committees on Minimum Support Price (MSP)
  • The Agricultural Prices Commission (APC) was founded in 1965 with the purpose of recommending MSPs for agricultural commodities. The Commission for Agricultural Costs and Prices (CACP) was later given its new name. For 23 different crops, including wheat, rice, pulses, oilseeds, and cotton, the CACP suggests MSPs.
  • National Commission on Farmers (NCF): The NCF was established in 2004 under the leadership of M.S Swaminathan, to address the problems of farmers and recommend policies for their welfare. The NCF recommended a minimum of 50% profit over the cost of production as MSP.
  • Shanta Kumar Committee: The Shanta Kumar Committee was set up in 2014 to review the Food Corporation of India (FCI) and suggest reforms. The committee recommended a shift from price-based to income-based support for farmers.

Kiru Hydel Project

Why in News?

  • The Central Bureau of Investigation (CBI) conducted raids at locations linked to former Jammu and Kashmir Governor Satya Pal Malik.
  • The agency is investigating alleged corruption in the award of a contract for the Kiru Hydel Project, in J&K’s Kishtwar district.

What’s in Today’s Article?

  • What is the Kiru Hydel Power Project?
  • Benefits of the Kiru Hydroelectric Power Project
  • What are the Corruption Allegations Surrounding the Kiru Hydel Project?

What is the Kiru Hydel Power Project?

  • Kiru hydroelectric power project is a run-of-the-river scheme being developed over the Chenab River in the Kishtwar Tehsil of Doha district in Jammu and Kashmir (J&K), India.
    • The project will be constructed between Kirthai II (upstream) and Kwar (downstream) hydroelectric plants.
  • The project is being developed by Chenab Valley Power Projects (CVPP), a joint venture between –
    • National Hydroelectric Power Corporation (NHPC, 49%),
    • Jammu & Kashmir State Power Development Corporation (JKSPDC, 49%) and
    • Power Trading Corporation (PTC, 2%).
  • It is being constructed at an estimated cost of Rs 4,287 crore for an installed capacity of
  • It was awarded scoping clearance by the Ministry of Environment Forests and Climate Change (MoEF&CC) in 2008.
  • Environment clearance was issued in 2016 and the project received approval from the State Administrative Council (SAC) in 2019.
  • The foundation stone for the hydroelectric power plant was laid in 2019, while the deadline for initiating commercial operations is July 2025.

Benefits of the Kiru Hydroelectric Power Project:

  • The project will address the energy deficiency in the Northern region of India and will simultaneously improve the transportation, education, medical, and road transportation network in the region.
  • The power plant will bring electricity to the rural area, which will reduce the dependency of the locals on alternative sources of energy.
  • Increased power supply in the region will enhance the development of small-scale and cottage industries in the region, which will in turn provide jobs and revenue to the locals.

What are the Corruption Allegations Surrounding the Kiru Hydel Project?

  • Satya Pal Malik, who was the governor of Jammu and Kashmir between August 23, 2018, and October 30, 2019, had claimed that he was offered a Rs 300-crore bribe for clearing two files, including one pertaining to the project.
  • In 2022, the J&K government had asked for a CBI probe into alleged malpractices (flagged earlier by Satya Pal Malik) in the awarding of two government contracts.
  • The award of civil works (to Patel Engineering Ltd – a major infrastructure and construction company that was founded in 1949) has been called into question.
  • The CBI has booked then CVPPPL chairman, MD and Directors, along with Patel Engineering.
  • The FIR says an investigation had been conducted by the J&K Anti-Corruption Bureau and the Power Department.
  • The FIR alleges that guidelines for e-tendering in the awarding of civil works in the project were not followed.
  • Further, allegations of substandard work and failure to provide jobs to local youth have been made against the hydel project.

Government Allows Donor Egg & Sperm in Surrogacy

Why in the News?

  • There is new hope for couples dreaming to become parents via surrogacy.
  • The Central government has amended Surrogacy (Regulation) Rules, 2022 to allow use of a donor gamete – ova or egg cells and sperm.

What’s in Today’s Article?

  • About Surrogacy (Meaning, Surrogacy in India, Law, Key Provisions, etc.)
  • News Summary

About Surrogacy:

  • A surrogate, sometimes also called a gestational carrier, is a woman who conceives, carries and gives birth to a child for another person or couple (intended parent/s).
  • The surrogate agrees to give the child to that person or couple after the birth.
  • Types of Surrogacies:
    • Commercial Surrogacy:
      • It includes surrogacy or its related procedures undertaken for a monetary benefit or reward (in cash or kind) exceeding the basic medical expenses and insurance coverage.
    • Altruistic Surrogacy:
      • It involves no monetary compensation to the surrogate mother other than the medical expenses and insurance coverage during the pregnancy.

Surrogacy in India:

  • Since 1978, surrogacy has been practiced in India, which is also known for having a high rate of “reproductive tourism” and being a burgeoning hub of the fertility industry.
  • Although commercial surrogacy was made legal, no bill or explicit rule was created and put into effect.
    • This led to a sharp rise in uncontrolled surrogacy in India by low-cost fertility clinics.
  • Subsequently, in 2021, President of India gave assent to the Surrogacy Regulation Bill, 2021 which was passed by the parliament.

Key Provisions of the Surrogacy (Regulation) Act, 2021:

  • Regulation of Surrogacy:
    • The Act prohibits commercial surrogacy, and allows altruistic surrogacy.
    • The Act permits surrogacy when it is:
      • (i) for intending couples who suffer from proven infertility;
      • (ii) altruistic;
      • (iii) not for commercial purposes;
      • (iv) not for producing children for sale, prostitution or other forms of exploitation; and
      • (v) for any other condition or disease specified through regulations.
  • Eligibility Criteria for Surrogate Mother: To obtain a certificate from the appropriate authority, the surrogate mother has to:
    • (i) be a close relative of the intending couple;
    • (ii) be an ever-married woman having a child of her own;
    • (iii) be 25 to 35 years old;
    • (iv) not have been a surrogate mother earlier; and
    • (iv) have a certificate of medical and psychological fitness.
    • Further, the surrogate mother cannot provide her own gametes for surrogacy.
  • Registration of Surrogacy Clinics:
    • Surrogacy clinics cannot undertake surrogacy or its related procedures unless they are granted registration by the appropriate authority.
  • National and State Surrogacy Boards:
    • The central and state governments shall constitute the National Surrogacy Board (NSB) and the State Surrogacy Boards (SSBs), respectively.
  • Offences & Penalties:
    • The Act creates certain offences which include:
      • (i) undertaking or advertising commercial surrogacy;
      • (ii) exploiting the surrogate mother;
      • (iii) selling or importing human embryo or gametes for surrogacy, and
      • (iv) abandoning, exploiting or disowning a surrogate child/
    • These offences will attract a penalty of up to 10 years and a fine of up to 10 lakh rupees.

News Summary:

  • The Central government has modified the surrogacy rules to permit married couples opting for surrogacy to use donor gametes — a move that would come as a big relief to those with medical complications.
    • The Surrogacy (Regulation) Act, 2021, restricted married couples from getting donor gametes.
    • A gamete is a reproductive cell. Female gametes are called ova or egg cells, and male gametes are called sperm.
  • A fresh notification issued on 21 February by the Union Ministry of Health and Family Welfare said the couple undergoing surrogacy must use their own gametes for having a surrogate child.
  • However, in case a District Magistrate Board certifies that either husband or wife suffers from a medical condition, then the couple can use a donor gamete.
  • But the notification allows only one of the two partners – either wife or husband – to use a donor gamete.
    • A child to be born through surrogacy must have at least one gamete from the intending parents.
    • This means a married couple where both partners have medical issues or are unable to have their own gametes cannot opt for surrogacy.
  • The modifications in the Surrogacy Rules by the Central government came after the Supreme Court doubted the correctness of the existing rules.
    • Applications were filed by married women in the Supreme Court who were unable to conceive due to medical complications.

CERN scientists carry out laser cooling of Positronium

Why in news?

  • In a major scientific breakthrough, an international team of researchers has successfully demonstrated laser cooling of Positronium for the first time.
  • The breakthrough experiment was carried out by the Antihydrogen Experiment: Gravity, Interferometry, Spectroscopy (AEgIS) collaboration at the European Organization for Nuclear Research (CERN).

What’s in today’s article?

  • CERN
  • Antihydrogen Experiment: Gravity, Interferometry, Spectroscopy (AEgIS)
  • Positronium
  • News Summary

CERN

  • The name CERN is derived from the acronym for the French “Conseil Européen pour la Recherche Nucléaire”, or European Council for Nuclear Research.
  • About
    • CERN was founded in 1954 with the mandate of establishing a world-class fundamental physics research organization in Europe.
    • CERN is a scientific research organization that studies fundamental physics.
    • It operates the world’s largest particle physics laboratory.
  • Function
    • At CERN physicists and engineers are probing the fundamental structure of the universe.
    • They use the world’s largest and most complex scientific instruments to study the basic constituents of matter – the fundamental particles.
    • The particles are made to collide together at close to the speed of light.
    • The process gives the physicists clues about how the particles interact, and provides insights into the fundamental laws of nature.
  • Location
    • CERN is located on the Franco-Swiss border near Geneva, Switzerland.
  • Members
    • Now CERN has 22 members.
      • India became an Associate Member State of CERN in 2016.
      • India was inducted as an Observer at CERN in 2004.

Antihydrogen Experiment: Gravity, Interferometry, Spectroscopy (AEgIS)

  • About
    • AEgIS is an experiment at CERN that studies the effects of gravity on antimatter.
    • The experiment’s primary goal is to directly measure the gravitational acceleration of Earth on antihydrogen.
      • Antihydrogen is the antimatter counterpart to hydrogen.
      • A hydrogen atom is made up of a positively charged proton and a negatively charged electron.
      • An antihydrogen atom is made up of a negatively charged antiproton and a positively charged positron.
    • It is a collaboration between physicists from Europe and India.
    • The experiment is designed to help explain the matter-antimatter asymmetry in the visible universe.
      • Antimatter is stable as long as it doesn’t come into contact with matter.
      • However, it only lasts a fraction of a second on Earth without special precautions.
  • Location
    • The experiment is located at the Antiproton Decelerator facility at CERN.
  • Achievement
    • In 2018, AEgIS became the first in the world to demonstrate the pulsed production of antihydrogen atoms.

Positronium

  • Positronium, comprising a bound electron (e-) and positron (e+), is a fundamental atomic system.
    • The matter, which forms the world around us, consists of atoms, the simplest of which is hydrogen.
    • This is made up of a positively-charged proton and a negatively-charged electron.
    • Positronium, on the other hand, consists of an electron and its antimatter equivalent, a positron.
      • It was first detected by scientists in the US in 1951.
  • Due to its very short life, it annihilates with a half-life of 142 nano-seconds.
  • Its mass is twice the electron mass and enjoys the unique distinction of being a pure leptonic atom.
  • This hydrogen-like system, with halved frequencies for excitation, makes it a great contender for attempting laser cooling and thereby performing tests of fundamental theories in physics.
    • Cooling the Positronium slows the atoms down, making it easier for scientists to study.

News Summary

  • In a first, an international team of physicists from the AEgIS collaboration has achieved a breakthrough by demonstrating the laser cooling of Positronium.
  • The results show that the researchers were able to cool Positronium atoms from about 380 Kelvin to 170 Kelvin using a specialised laser system.

Potential benefits of the experiment

  • This experiment will pave the way for performing spectroscopic comparisons required for the Quantum Electrodynamics (QED).
    • QED is the study of the light and its interaction with charged matter.
  • The new scientific development will allow high-precision measurements of the properties and gravitational behaviour of matter–antimatter system, which could reveal newer physics.
  • It also allows the production of a positronium Bose–Einstein condensate (BEC), in which all constituents occupy the same quantum state.
    • A BEC is a state of matter that occurs when particles are cooled to near absolute zero and coalesce into a single quantum object.
  • Such a condensate could be used to generate coherent gamma-ray light through the annihilation of matter and antimatter constituents.
    • This light would be similar to laser light, consisting of monochromatic waves with a constant phase difference between them.

New trade route to Israel involving Mundra port

Why in news?

  • As Houthis continue to attack Israel-linked ships in the Red Sea, Israeli transport minister recently announced an alternative route for trade, involving the Mundra port in Gujarat.

What’s in today’s article?

  • Red Sea
  • Houthis
  • News Summary

What is Red Sea?

  • About
    • Red Sea is narrow strip of water extending southeastward from Suez, Egypt, to the Bab el-Mandeb Strait.
    • Basically, it is a narrow inland sea between the Arabian Peninsula and Africa.
      • The Red Sea separates the coasts of Egypt, Sudan, and Eritrea from those of Saudi Arabia and Yemen.
    • The Gulf of Aqaba, a north eastern extension of the sea, reaches southern Israel and southwestern Jordan.
  • Significance
    • The Red Sea contains some of the world’s hottest and saltiest seawater.
    • It is one of the most heavily travelled waterways in the world, carrying maritime traffic between Europe and Asia.
  • Significance for India
    • Freight rates for Indian shipments headed to Europe and Africa could surge as much as 25-30 per cent if there is disruption along this route.
      • For India, the Red Sea trade route is the shortest trade route for ships moving from Asia to Europe.
      • India is heavily reliant on the Bab-el-Mandeb Strait for its crude oil, LNG imports and trade with parts of West Asia, Africa, and Europe.
    • This route is vital for 30 per cent of global container traffic.

Who are Houthis?

  • About
    • The Houthis are a Shiite Muslim sect and political and military organization that emerged in Yemen (which is predominantly Sunni) in the 1990s.
      • Named after the Houthi tribe, they are Zaydi Shias.
      • Zayadism is a sub-sect of Shia Islam and it believes in following the lineage of the Prophet Muhammad’s family, as the political leader of the state.
    • The Houthis are also known as Ansar Allah, which translates to “Supporters of God”.
  • Involvement in civil war of Yemen
    • The Houthis are one side of the Yemeni civil war that has raged for nearly a decade.
    • Yemen’s civil war began in 2014 when Houthi insurgents took control of Yemen’s capital and largest city, Sana’a.
    • By early 2015, Saudi Arabia, along with other Gulf states and with U.S. support, was launching airstrikes against the Houthis, who are backed by Iran.
    • A ceasefire was finally signed in 2022. It lapsed after six months but the warring parties haven’t returned to full-scale conflict.
  • Houthis attacking Red Sea ships
    • The Iran-backed Houthi rebels of Yemen have been attacking ships in the Red Sea in response to Israel’s military campaign in Gaza.
    • The Houthis support Hamas, and vowed on November 19 to target vessels they believe are heading to and from Israel.

News Summary: New trade route to Israel involving Mundra port

What is happening in the Red Sea?

  • Yemen’s Houthi rebels have been attacking ships linked to Israel in the Red Sea, in solidarity with Gaza.
  • This has disrupted global trade, some 12% of which passes through the Red Sea.
  • To avoid the danger zone, ships are going all the way to the south of Africa and crossing the Cape of Good Hope, increasing both costs and the time taken.
  • In this scenario, Israel has been looking for ways to carry out trade bypassing the Red Sea.

What is the new route?

  • Under this, goods would move:
    • from Mundra to ports in the UAE, such as Dubai’s Jebel Ali Port, by sea, and
    • then via land through Saudi Arabia and Jordan to Israel.
      • Land corridor became feasible due to signing of the Abraham Accords (aimed at normalising ties between Israel and some Arab states) in 2020.
  • A major part of the land transport will be carried out on trucks.
  • A similar route might be used in the India Middle East Europe Economic Corridor (IMEC) too.
    • The ambitious project aims to link India to Europe via the Middle East, but its final shape is yet to be decided and the Gaza war has thrown a spanner in its progress.

What are the benefits, costs of the new route?

  • The land route will significantly cut travel time and costs for Israel, and will generate revenue for Saudi Arabia and Jordan in terms of transport fee and duties.
  • However, trucks can carry far fewer goods than a ship can, and to that extent, trade will be limited.
  • Also, the route depends on Israel maintaining friendly ties with the two countries, in a rapidly fluctuating situation in the Middle East.

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