Highlights
- Economy: India and the four-nation European Free Trade Association signed the Trade and Economic Partnership Agreement (TEPA), projecting USD 100 billion in FDI over 15 years.
- Polity: The Model Code of Conduct had not yet come into force; political parties were still permitted to announce schemes, with the Lok Sabha election schedule expected on 16 March.
- Environment: Air quality governance continued with Delhi recording severe pollution days; the State Energy Efficiency Index scores remained under debate at state capitals.
- Science: ISRO's PSLV integration facility discussion continued, with analysts noting the doubling of launch cadence from 6 to 15 missions per year.
1. India-EFTA TEPA: the trade architecture
GS area: Economy (international trade), International Relations
India and the European Free Trade Association signed the Trade and Economic Partnership Agreement in New Delhi on 10 March 2024. EFTA comprises Iceland, Liechtenstein, Norway and Switzerland.
Key terms of the agreement:
- FDI commitment: EFTA committed to facilitate USD 100 billion in investment in India over 15 years, targeting 1 million direct jobs. This is the first time a trade agreement includes a specific FDI target.
- Market access for India: improved access for Indian IT services, business process services and education services. Better rules of origin for pharmaceutical exports.
- Intellectual property: robust IP chapter including patent term extension (relevant to Swiss pharma companies) and geographical indication protections.
- Sustainable development chapter: first-of-its-kind chapter in an Indian FTA covering labour standards and environmental commitments.
- Challenges: EFTA members and India have very different economic structures. Swiss pharmaceutical firms backed by strong IP protection compete with Indian generic producers who rely on flexible patent norms (Section 3(d) of the Patents Act 1970).
India's trade with EFTA in 2022-23 was approximately USD 30 billion, heavily dominated by Switzerland (gold and watches). The agreement aims to diversify and expand this relationship.
Static linkage: Economy (international trade), Indian economy.
2. Model Code of Conduct: how it works
GS area: Polity (elections, Election Commission)
The Model Code of Conduct (MCC) comes into force the moment the Election Commission of India announces the election schedule. Expected to be announced on 16 March 2024.
What the MCC prohibits:
- Government announcements: no new schemes, projects or policy decisions that could influence voters can be announced by the ruling party in government after MCC is in effect.
- Misuse of official machinery: ministers cannot use government vehicles, staff or facilities for campaign work.
- Speeches: no appeals to caste or communal sentiment.
- Polling day conduct: strict rules on booth management.
What the MCC is:
- Not a statute: the MCC has no statutory backing. It is a set of guidelines that political parties have agreed to observe and which the ECI enforces through persuasion and, where needed, referral to law enforcement.
- Constitutional basis: the ECI derives its authority from Article 324 (superintendence, direction and control of elections).
Static linkage: Polity (Election Commission, elections).
3. India's trade policy and WTO commitments
GS area: Economy (international trade)
India's approach to trade agreements has evolved significantly. With EFTA, India showed willingness to accept IP commitments that it had resisted in earlier negotiations (EU FTA, abandoned since 2013). Key WTO-level data:
- India's trade: goods exports approximately USD 447 billion in FY2022-23; services exports USD 322 billion, making India one of the top 10 global services exporters.
- Most-Favoured Nation (MFN) principle: WTO members must give the same trade terms to all other members. FTAs are an exception under Article XXIV of GATT.
- India's FTAs: agreements with ASEAN (2009), South Korea (2009), Japan (2011), UAE (2022), Australia (interim, 2022) and now EFTA (2024).
Static linkage: Economy (WTO, trade agreements).
4. PSLV and India's launch cadence
GS area: Science and Technology (space)
The new PSLV Integration Facility inaugurated on 1 March 2024 at VSSC, Thiruvananthapuram is designed to allow two PSLV vehicles to be assembled simultaneously, raising ISRO's launch rate from 6 per year to 15. Context:
- PSLV: the Polar Satellite Launch Vehicle is ISRO's workhorse for medium-payload missions to polar and sun-synchronous orbits. It has over 50 successful missions.
- GSLV Mk III (LVM-3): ISRO's heavy launch vehicle for geosynchronous orbits; used for Chandrayaan-3 and OneWeb commercial missions.
- Commercial arm: NewSpace India Limited (NSIL) manages ISRO's commercial launches.
Static linkage: Science and technology (ISRO, space).
5. Briefly noted
- India-Malaysia Samudra Laksamana exercise: concluded on 2 March 2024. Bilateral maritime exercise between India (INS Kiltan) and Malaysia (KD Lekir). Focuses on anti-submarine warfare, search and rescue, and coordination drills.
- Swachh Bharat Mission targets: the urban mission covers 4,700 cities. Cities are rated on a Garbage-Free City rating system. Processing capacity for municipal solid waste has expanded significantly since 2014 under the mission.
- World Wildlife Day (3 March): observed annually. Theme for 2024: "Connecting People and Planet: Exploring Digital Innovation in Wildlife Conservation." The day marks the adoption of CITES in 1973.
Practice MCQs