Highlights
- India-Japan Semiconductor Supply Chain Partnership: a formal MoU was signed during PM Modi's bilateral with Japanese PM Kishida.
- Global Maritime India Summit 2023: inaugurated in Mumbai; third edition; theme "Amrit Kaal of Indian Maritime."
- India-EU Trade and Technology Council (TTC): second meeting held; focus on semiconductor supply chain resilience and digital standards.
- Artificial Intelligence governance: G7 released "Hiroshima AI Process" guidelines for advanced AI systems.
1. India-Japan Semiconductor Supply Chain Partnership
GS area: Science and Technology, International Relations, Economy
India and Japan signed a semiconductor supply chain partnership agreement in October 2023, formalising cooperation in chip supply chain diversification.
- Context: global supply chain disruptions (2020-22 chip shortage) highlighted the risks of concentrating semiconductor production in Taiwan. Both India and Japan seek supply chain diversification.
- Japan's semiconductor strengths: Japan dominates specific segments: chip manufacturing equipment (Tokyo Electron, Shin-Etsu Silicones); silicon wafers; photoresists; ultra-pure materials. Without Japan's materials, global chip production would halt within months.
- India's comparative advantage: large semiconductor design talent pool (20 per cent of global chip design engineers); growing domestic chip demand; younger demographic; strategic location on sea lanes.
- Key companies involved: CG Power (India) and Renesas (Japan) are in a joint venture for OSAT in Sanand, Gujarat. Renesas is one of Japan's leading microcontroller manufacturers.
- OSAT (Outsourced Semiconductor Assembly and Test): the packaging and testing of bare chips from fabs. Lower capital intensity than fabrication; more feasible as a first step for India.
- Quad semiconductor cooperation: India, US, Japan, Australia have a Semiconductor Supply Chain Initiative under the Quad Plus framework.
- India Semiconductor Mission budget: outlay of Rs 76,000 crore (approximately USD 10 billion).
Static linkage: Science and technology, international relations.
2. Global Maritime India Summit 2023: Third Edition
GS area: Economy, Governance, International Relations
The third Global Maritime India Summit (GMIS 2023) was inaugurated in Mumbai in October 2023.
- Theme: "Amrit Kaal of Indian Maritime."
- Previous editions: 2016 (Mumbai) and 2021 (virtual).
- Objective: attract investment into Indian ports, shipbuilding, maritime logistics, and shipping.
- India's maritime sector:
- India has 12 major ports and 200+ minor ports (non-major ports managed by states).
- Major ports handle about 60 per cent of India's seaborne trade by volume.
- India ranks 14th globally in merchant shipping fleet size.
- The Sagarmala Programme (2016) targets port-led development, connectivity, coastal economic zones.
- Sagarmala: port modernisation, port connectivity, port-led industrialisation, coastal community development. Flagship projects include the East Coast Economic Corridor and port logistics parks.
- Shipbuilding ambition: India targets becoming a global shipbuilding hub. Currently, global leaders are South Korea, China, and Japan. India's Defence Public Sector yards (MDL, GRSE, CSL, HSL) have expertise but limited commercial scale.
- Green shipping: GMIS 2023 highlighted low-carbon shipping. India aims to reduce shipping sector emissions in line with the International Maritime Organization (IMO) goals (net zero by 2050 adopted July 2023).
- Blue Economy: India's Exclusive Economic Zone of 2.37 million sq km; coastline of 7,516 km.
Static linkage: Economy, governance.
3. India-EU Trade and Technology Council: Digital Standards
GS area: International Relations, Governance
The second India-EU Trade and Technology Council (TTC) meeting was held in October 2023.
- India-EU TTC: established June 2023 at the India-EU Summit. Three working groups: strategic technologies, green and clean energy technology, trade and investment facilitation.
- AI governance track: both India and the EU are developing AI regulation frameworks. The EU's AI Act (under discussion, enacted 2024) is the world's most comprehensive. India is developing a light-touch AI governance framework under MeitY.
- Digital trade facilitation: the TTC discussed mutual recognition of digital signatures, data flows, and supply chain resilience.
- EU-India trade: bilateral trade (goods and services) approximately USD 130 billion. The EU is India's largest trading partner overall; India is the EU's 9th largest.
- EU-India FTA: under negotiation. Stalled for 2007-2013; relaunched in 2022. Contentious issues include data localisation, IPR, agricultural market access, and auto-sector tariffs.
- Semiconductor cooperation: the TTC's strategic technologies track targets semiconductor supply chain resilience. The EU is building its own semiconductor capacity under the European Chips Act (2023).
Static linkage: International relations, governance.
4. IMO 2050 Net Zero Target for Shipping
GS area: Environment, International Relations
The International Maritime Organization (IMO) adopted a revised GHG strategy in July 2023; its implications were being discussed at GMIS 2023.
- IMO 2023 Strategy: achieve net zero GHG emissions from international shipping by or around 2050.
- Milestones: reduce GHG by 20-30 per cent by 2030; 70-80 per cent by 2040; net zero by 2050.
- Shipping's emissions share: international shipping accounts for about 2.89 per cent of global GHG emissions. It is exempt from most national climate targets (similar to international aviation under CORSIA).
- MARPOL: the IMO's main environmental convention. Annex VI covers air pollution and GHG emissions from ships. IMO adopted the Carbon Intensity Indicator (CII) and the Energy Efficiency Existing Ship Index (EEXI) measures in 2022.
- Green fuels for shipping: methanol, ammonia, and liquefied hydrogen are being tested as zero-emission marine fuels. Maersk (Denmark) commissioned the first methanol-powered ocean-going vessel in 2023.
- India's green shipping opportunity: Indian ports can develop green bunkering (methanol/ammonia fuelling) infrastructure to attract green shipping business.
Static linkage: Environment, international relations.
5. Hiroshima AI Process: G7 Guidelines on Advanced AI
GS area: Science and Technology, Governance, International Relations
The G7's Hiroshima AI Process released a voluntary Code of Conduct for AI developers in October 2023.
- Hiroshima AI Process: launched at the May 2023 G7 Hiroshima Summit. Aimed at developing common governance frameworks for advanced AI (especially generative AI like ChatGPT, GPT-4).
- Code of Conduct for AI developers (October 2023): 11 principles. Key ones:
- Identify and mitigate risks before and after deployment.
- Invest in cybersecurity measures for AI systems.
- Develop technical mechanisms to ensure AI-generated content can be identified (watermarking).
- Share information on AI risks with governments and other stakeholders.
- Report to governments on AI safety capabilities annually.
- Voluntary nature: the Code of Conduct is voluntary for AI developers in G7 countries.
- Context: 2023 was the year of rapid generative AI deployment (ChatGPT launched November 2022; GPT-4 March 2023; Gemini announced late 2023). Governance urgency intensified.
- India's AI governance approach: MeitY's IndiaAI mission takes a "light touch" approach, contrasting with the EU's binding AI Act risk-classification model.
Static linkage: Science and technology, governance.
6. Briefly noted
- Supreme Court collegium: the collegium recommended appointment of 6 additional judges to the Allahabad High Court. The collegium system (established through NJAC's striking down in 2015) remains the method for judicial appointments.
- India-UK FTA negotiations: the two sides were in the 13th round of talks in October 2023. Key sticking point: visa/mobility provisions for Indian professionals.
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