October 22
Table of contents:
- India China reach deal on easing LAC tensions
- India’s Rise: A new Era of Economic Prosperity
- India China reach deal on easing LAC tensions:
India and China have finally come up with a solution regarding LAC tensions. This comes after announcement of an agreement on the “patrolling arrangements” and the resolution of military stand-off at the Line of Actual Control by foreign secretary Vikram Misri in BRICS summit.
This has been seen that in past few weeks, Indian and Chinese diplomatic and military negotiators are closely engaged with each other. This is a good sign as far as relation between the two nation is concerned.
Notably, in 2020 Indian and Chinese troops were engaged in aggressive faceoff at Galvan valley after which the sides accepted “Buffer Zones” in some disputed areas which means the military patrolling in the area will be restricted the two countries
Pointing towards significance of the deal, S. Jaishankar said “We will be able to do patrolling which we were doing till 2020 and with that we have gone back to where the situation was in 2020. With that we can say that the disengagement process with China has been completed”,.
About Line of Actual Control (LAC):
- It is the demarcation that separates Indian – controlled territory from Chinese-controlled territory.
- It is divided into three sectors: The eastern sector which includes Ap and Sikkim, middle sector which includes Uttarakhand and HP and the western sector that is in Ladakh.
- As per Indian govt. the LAC is tend to be 3,488km long whereas Chinese govt. consider it as around 2000 km.
- India’s claim line is the line seen in the official boundary marked on the maps as released by the Survey of India, including both Aksai Chin and Gilgit-Baltistan.
About Belt and Road Initiative of Chine:
- It was launched in 2013, which aims to grow trade and economic growth across Asia. It involves projects including roads, railways, ports etc.
Ambition:
- Establishing economic corridors to fulfil the economic activities.
- Developing infrastructure by building the ports and roads.
- Encouraging the cross-border investment and attracting the foreign investments for the sake of nations as well as continent’s development.
- Minimizing the demographic division and cultural exchange that aims to strengthen the relation between the nations.
2. India’s Rise: A new Era of Economic Prosperity:
Context: Talks during the Annual India Leadership Summit in New Delhi focused on India’s growing economic power in contrast to China’s long possession in the tech market. With more than 151,000 companies and a predicted 7% GDP growth, India is driving fast in terms of digital innovations.
Information from the report:
- India’s GDP is expected to grow at a rate of 7% in FY 2024–2025, continuing to be the major economy with the fastest rate of growth (World Bank, 2023).
- Market performance: Chinese stock markets shows negative growth, growing at an negative growth near zero (Ananth Narayan, SEBI, 2024)., while Indian stock markets shows a 15% compound annual growth rate (CAGR report).
- As far as the startups are concerned, India is among the third largest startup ecosystem and a 15x increase in investment from 2015 to 2022.
- As the growing trend of digitalization after 201, India has surged Rs. 13,166 crore in FY 2023-24 which is much higher as compared to FY 2018 – 19 i.e Rs. 92 crore.
- The Pradhan Mantri Jan Dhan Yojana(PMJDY) has facilitates over 53 crore bank accounts which means millions of people are listed in the formal financial system(GOI 2024).
India’s economic transition is being driven by the following factors:
- Initiative like Digital India has changed the trend of ordinary transaction to online transaction through UPI. And this facility is inclusive
- Market performance: Chinese stock markets underperformed, growing at an almost zero or negative rate over the previous five years, while Indian stock markets produced a 15% compound annual growth rate (CAGR) (Ananth Narayan, SEBI, 2024).
