The Memorandum of Understanding on Indo-Denmark Energy Cooperation between the Ministry of Power, Government of the Republic of India and the Ministry for Energy, Utilities and Climate, Government of the Kingdom of Denmark  to  develop a strong, deep and long-term co-operation between two countries in the power sector on the basis of equality, reciprocity and mutual benefit was signed on 5th June , 2020.

The MoU was signed by Mr. Sanjiv Nandan Sahai, Secretary (Power) from the Indian side and Mr. Freddy Svane, Ambassador of Denmark to India from the Danish side.

The MoU provides for collaboration in areas like offshore wind, long term energy planning, forecasting, flexibility in the grid, consolidation of grid codes to integrate and operate efficiently variable generation options, flexibility in the power purchase agreements, incentivize power plant flexibility, variability in renewable energy production etc. The Indian electricity market would  benefit from cooperation with Denmark in these areas.

For implementation of the identified areas, a Joint Working Group (JWG) will be established under the MoU. The JWG will be co-chaired by Joint Secretary level officials and will report to a Steering Committee, jointly chaired by the Secretary level officer from both the sides.

The Governments will endeavour to take necessary steps to encourage and promote strategic and technical co-operation in the power sector for mutual benefit in the identified areas through the MoU.

Source:Press Information Bureau

India Australia relations background

Diplomatic Ties

India established a Trade Office in Sydney in 1941. After independence, in 1950, Robert Menzies became the first Australian Prime Minister to visit India. He had earlier supported India’s admission into the Commonwealth as a republic.

Growing people-to-people ties

• There are many citizens in Australia with Indian origins. Out of the country’s 24 million people, about half a million are of Indian origin.
• The fastest growing language in Australia is Punjabi and the fastest growing religion is Hinduism.
• As of 2017, more than 60000 students from India are studying in Australia.
• More than 2 lakh Indians visit Australia every year.

India – Australia Economic Relations

Major Australian Imports to India

• Coal
• Services (chiefly education)
• Gold
• Copper ores and concentrates
• Vegetables for consumption by consumers

Major Indian Exports to Australia

• Refined petroleum
• Services (such as outsourcing)
• Pearls
• Gems
• Jewellry
• Medicaments

Both countries have established a Strategic Research Fund for $100 million.

Uranium Import

India – Australia Military Relations

A joint naval exercise called AUSINDEX is carried out between India and Australia every year.
In 2007, Australia was a participant in the Malabar Exercise which is an annual trilateral naval exercise between India, USA and Japan.

Indian diaspora in Australia

India Australia Prospects and Future Challenges

• Energy sector – Australia is poised to overtake Qatar as the largest exporter of Liquified Natural Gas (LNG). India can diversify the sourcing of its LNG supply with Australia (reducing dependency on West Asian countries) and reap huge benefits from a long-term relationship. This is in addition to the already-blooming relations in the nuclear fuel supply domain.
• Comprehensive Economic Cooperation Agreement (CECA) – Negotiations for a CECA started in 2001. If this is materialised, India will have better access to the world’s 12th largest economy. Half of India’s exports to Australia face stiff tariffs, and if the CECA is made, Indian businesses would be in the same footing as other FTA partners of Australia such as China. This would also improve investments from Australia, which has the third-largest pool of investment funds under management in the world.
• Why CECA is in a deadlock
  • India is opposed to greater access for Australian businesses in the sector of dairy and agricultural markets in the interests of its small and marginal farmers and people working in the dairy industry.
  • India wants greater free movement and relaxed visa norms for its IT professionals, which Australia is reluctant to agree to citing local unemployment as the reason.
  • India wants Australia to soften its high non-trade barriers for Indian products.
  • India is reluctant to open up its doors for legal services from Australia.
  • There is also no concrete agreement on greater market access for Australia’s wine, meat, auto components and financial services industries.
  • Both countries also differ in their preference towards Rules of Origin (ROO) in fixing the tariff lines for goods.
• India can seek Australia’s expertise in the food processing industry.
• Australia has good experience in paddy cultivation in relatively arid lands. India can learn much from their technology and experience in this regard.
• Mining technology and clean coal technology are two other areas where India can collaborate with Australia.
• Another domain in which cooperation can be fostered is solar energy. Australia has joined the International Solar Alliance, which is sponsored by India and France.

India - AustraliaVirtual Summit 2020

• India has for long been preoccupied with the perennial challenges in the neighbourhood and the ties with the great powers.
• It has, in the past, missed out on the opportunities for productive partnerships with the middle powers.
• Few countries have been underestimated in India such as Australia.
• The recent summit thus is an effort to plug that gap in India’s diplomatic tradition.

• With a GDP of more than US$1.4 trillion, Australia is the 13th largest economy in the world.
• This is followed closely behind Russia that stands at $1.6 trillion.
• Australia is rich in natural resources that India’s growing economy needs.
• It also has huge reservoirs of strength in higher education, scientific and technological research.
• In the global diplomatic arena, Australia has a significant place than is believed.
• Its armed forces, hardened by international combat, are widely respected.
• Canberra’s intelligence establishment is valued in many parts of the world.
• Australia has deep economic, political and security connections with the ASEAN.
• It also has a strategic partnership with one of the leading non-aligned nations, Indonesia.
• Canberra has a little “sphere of influence” of its own in the South Pacific (now under threat from Chinese penetration).

• All these Australian strengths should be of interest and value to India.
• India’s first Prime Minister, Jawaharlal Nehru, believed Australia is a natural part of Asia.
• He invited Australia to participate in the Asian Relations Conference in Delhi in 1947, a few months before independence.
• But the rest of the 20th century did not see much cooperation between the two countries.

• India's nuclear tests in 1998 have been significant in changing the course of relationship with Australia.
• The following political differences between Delhi and Canberra complicated the possibilities that the end of the Cold War opened up.
• But since 2000, Canberra has taken consistent political initiative to advance ties with India.
• It has worked on resolving the nuclear difference and expanding the template of engagement.
• Notably, there was a gap of nearly three decades between Rajiv Gandhi’s visit to Australia in 1986 and Modi’s trip in 2014.

• It was exactly in that gap of nearly three decades that China transformed its relationship with Australia.
• Delhi’s temptation to judge nations on the basis of their alignments with other powers stands in contrast to Beijing.
• Beijing always seems to put interests above ideology.
• China promotes interdependence with a targeted middle power.
• It then turns it into political influence and tries to weaken its alignment with the rival powers.
• However, now, India-Australia ties are being renewed with India's new political will to liberate its relations from ideological prejudice.

• The Indian diaspora, now estimated at nearly 7,00,000, is the fastest growing in Australia.
• This has become an unexpected positive factor in the bilateral relations.
• Besides, there is common membership of many groupings like the G-20, East Asia Summit, IORA, and the Quad.
• This has increased the possibilities for diplomatic cooperation on regional and global issues.
• The current downturn in the global economy limits the immediate possibilities for realising the full potential of commercial relations.
• But there are a host of emerging issues.
• Some of them include reforming the WHO, 5G technology, strengthening the international solar alliance, building resilience against climate change and disasters.
• The geopolitical events in the Indo-Pacific have opened up a massive space for consequential security cooperation between the two countries.

• Over the last few years, defence engagement between the two countries has also grown.

What is the way forward?

• With growing Chinese assertiveness and the uncertain US political trajectory, Delhi and Canberra need new ways of securing their interests.
• The scale of the security challenge in the Indo-Pacific demands more than incremental steps.
• Security establishments must develop strategic coordination in the various sub-regions of the Indo-Pacific littoral.
• Lying at the heart of the Indo-Pacific, Eastern Indian Ocean connects the two oceans, where the two countries can initiate a full range of joint activities.
• These might include maritime domain awareness, development of strategically located islands and marine scientific research.
• The sea lines of communication between the Indian and Pacific oceans run through the Indonesian archipelago.
• There is also a shared political commitment to the Indo-Pacific idea between Delhi, Jakarta and Canberra.
• Modi and Morrison must thus seek trilateral maritime and naval cooperation with Indonesia.
• Besides Indonesia, three other powers present themselves as natural partners for India and Australia - Japan, France and Britain.
• Enhanced trilateral engagements at diplomatic and practical maritime level with each of these will go a long way in securing geopolitical interests.
• Notably, Britain wants to return to the oriental seas.
• In the east, Britain continues to lead the so-called Five Power Defence Arrangement (FDPA) set up back in 1971, after Britain pulled back most of its forces from the East of Suez.
• The FPDA brings together the armed forces of the UK, Malaysia, Singapore, Australia and New Zealand.
• Modi and Morrison must explore the possibilities for engagement between India and the FPDA.
• In all, building a series of overlapping bilateral and minilateral platforms for regional security cooperation by Delhi and Canberra is what is called for now.

Major irritants

• Border Disputes – Share about 3,488-km long border which is yet to be fully delineated.
• India supports a Tibetan gov. in exile formed by Dalai Lama, unacceptable to china. China recently opposed to the Dalai Lama’s visit to Arunachal Pradesh, particularly Tawang, which it considers as Southern Tibet.
• China began the practice of issuing stapled visa to residents of AP and J & K, though it stopped it for J & K but continues for AP.
• China has an undeclared policy of String of Pearls to encircle India, which involves building of ports and naval bases around India’s maritime reaches. While India has been trying to develop closer arrangements with the countries surrounding China viz. Japan, South Korea & Vietnam
• China has been building dams in Tibet part of Brahmaputra. India has objected to it but there has been no formal treaty over sharing of the Brahmaputra water.
• China has been blocking India’s attempt to entry to NSG & has also blocked India’s attempt at the UN for sanctions against Jash-e-Mohammad chief Masood Azhar.
• India considers building of the CPEC as China’s interference in India’s sovereignty and territorial integrity.
• Trade imbalance with the imbalance skewed in China’s favour viz. $46.56 billion in 2016

Border Dispute India China

Image Source:Google

China Pak Axis

• Higher than the mountains, deeper than the oceans, sweeter than honey
• China is Pakistan’s great economic hope and its most trusted military partner
• Pakistan lies at the heart of China’s geostrategic ambitions i.e. New silk road connecting the energy fields of the Middle East and the markets of Europe to China
• China opposed India’s admission into permanent seat of UNSC, & insisted for Pakistan
• CPEC – will connect Kashgar in China’s Xinjiang province with the port of Gwadar
• Military and nuclear arms support by China in the past besides economic support
• China‘s has been shielding Pakistan’s terrorist outfit chief, Massod Azhar from being listed as a ‘Global Terrorist’ by the UN.

OBOR – Will Connect Asia, Africa, Middle East & Europe

• Three main goals of China are:

• Economic diversification
• Political stability and the
• Development of a multipolar global order

• All of India’s neighbours, except Bhutan, sent highlevel delegations for the summit.

India’s Objection to OBOR 

• Projects in the Gilgit-Baltistan region, ignoring India’s “sovereignty and territorial integrity”.
• Lack of transparency in China’s agenda, New Delhi believes that it is not just an economic project but one that China is promoting for political control
• Smacks of Chinese neo-colonialism – Could push smaller countries on the road into a crushing debt cycle, destroy the ecology and disrupt local communities.
• India fears that CPEC, passing through the Pakistan controlled Kashmir, would serve the purpose of granting legitimacy to Pakistan’s control over the region, and by promoting the construction of the corridor, China intends to meddle in the Kashmir dispute.
• Indian security experts also fear that after gaining access to Gwadar port, the Chinese will find it easy to sail into the Indian Ocean.

India’s decision to skip the meeting came after a year of bilateral discord over China’s stubborn opposition to India’s entry into the NSG and a UN ban against Pakistan-based terrorist group Jaish-e-Muhammad leader Masood Azhar. The decision to not attend even as an observer, however, effectively closes the door for diplomacy. Expert believe that by boycotting the Beijing meet, India was denying itself unending benefits of something as big as OBOR for ex. infrastructural shortcoming that it is facing currently. Meanwhile India & Japan have come up with Asia Africa Growth Corridor to counter China’s OBOR.

The Baloch Angle 

Gwadar is located in Baluchistan, & Baloch are against CPEC because they claim that the CPEC’s benefits will not flow to them. They further state that CPEC is not an economic project. Pakistan and China together are building a military infrastructure in Balochistan’s coastal areas. The purpose is to strengthen their military supremacy in the region which will undermine the stability of the region. A fear of a massive inflow of migrants from different areas of Pakistan which will change the demography of Balochistan and reduce the Baloch people to a permanent minority in their historic homeland.

South China Sea Dispute

New islands were constructed by dredging sand onto reefs, an effort by China to boost its claim to all of the Spratly Islands in the South China Sea. It has also built ports, Runaways and radar facilities on the manmade islands. satellite images of the islands, show that China now appears to have installed large antiaircraft guns and weapons systems as well – Paracel and Spratly islands

• China rejected an international ruling on the South China Sea as “null and void” and devoid of any “binding force”.
• China’s development in the region is seen as threatening to other nations Taiwan, Brunei, Philippines and Malaysia.
• About half of the world’s annual merchant fleet tonnage—passed through the South China Sea in 2010. Any tension in the region may immensely affect the international trade and economy
• China has demonstrated a desire to control all of the passage through what it considers its sphere of naval power. This predilection is in direct opposition to the U.S.-backed global standard of free passage through the high seas.

India has made it clear that it recognised that the tribunal had been set up within the jurisdiction of the UN’s Convention on the Law of the Sea (UNCLOS) that must be given the “utmost respect”. As part of a soft-diplomacy effort, India is looking to have South China Sea countries such as Vietnam, Malaysia and Philippines use the tsunami early warning-system developed by India.

Doklam Plateau Face-off 

Indian troops intervened to block the path of Chinese People’s Liberation Army soldiers engaged in building road-works on the Doklam plateau, a strategically vital 269 sq. km. patch of Bhutan’s territory that Beijing laid claim to.

• This is the first time that India used troops to protect Bhutan’s territorial interests.
• Earlier China have made Bhutan a “package deal” under which the Chinese agreed to renounce their claim over the 495-sq.-km disputed land in the Northern Bhutan, in exchange for disputed land of Doklam plateau.

India’s concern 

• The construction of a new road through the Chumbi valley would further endanger the “Chicken’s Neck” – the narrow Siliguri corridor links the north-east with the rest of India
• India has conveyed to the Chinese government that the latter’s construction of road in the disputed Doklam area ‘would represent a significant change of status quo with serious security implications for India.’
• India is vulnerable in this corridor as it is the only access point to the northeast. The Corridor is about 500 km from the Chumbi Valley.

Chinese reaction

• Following the tensions, Chinese authorities have closed the Nathu La pass to Kailash Mansarovar pilgrims.
• China served notice on India to withdraw its forces, as a precondition for a “meaningful dialogue” – unacceptable to India, unless the PLA also withdraws its troops and road-building teams.
• China has long desired an independent Bhutanese stand without Indian advocacy and interference on the boundary issue. Chinese academia often dubbed India’s interference as hegemony in South Asia.
• By challenging Bhutanese security, Beijing hoped to put a strain on the India-Bhutan “special relationship”.

India & China Mutually Disengaged Their Troops

• The end of Dokalam standoff is a huge political, diplomatic & moral victory for India. It will contribute to raising the stature of the country. The fact that the Indian government stayed steadfast and resolute in the face of extreme provocation, speaks volumes of the determined and decisive approach of the present government.

• The episode has significantly established the image of India as a responsible, decisive and reliable actor on the global scene.
• The episode has contributed to further strengthen relations between India and Bhutan. The message to India’s neighbourhood is also positive and reassuring.

• However India and China should not see Doklam in terms of point-scoring but rather as a warning of the need for extending their border management framework across other borders as well.
• Stronger economic and commercial partnership between the two countries can be a win -win scenario for both the countries if China removes its non-tariff barriers against Indian products and services.
• India must necessarily “hope for the best, and prepare for the worst”, when it comes to tensions with its northern neighbour.

Deterioration of India-China relation

• Delhi has expressed disappointment over China’s rejection of its concerns on sovereignty issues, and refusal to corner Pakistan on cross-border terrorism or help India’s bid for NSG membership.
• In turn, India’s spurning of the OBOR Initiative and cooperation with U.S. on maritime issues has not played well in China
• Dalai Lama visit to Tawang was strongly protested by China – it accused India for fuelling secessionist in Tibet.
• India is also working with Japan, South Korea and the US to contain China’s power in the Indian Ocean provoking China

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Cooperation between India and China 

• Both members of BRICS, which is now establishing a formal lending arm, the New Development Bank.
• India, a founding member of the China-backed Asian Infrastructure Investment Bank.
• China welcomed India’s full membership of Shanghai Cooperation Organization.
• Both countries have advocated democratization of international institutions such as World Bank, IMF
• China and India have similar stand during WTO negotiations.
• China and India, being the main targets of criticism by the US and its friends, have so far successfully coordinated their strategies in the environmental summits

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Way forward for India 

• Necessary to build up economic and security capabilities and begin to close the power gap with China.
• India’s foreign policy formulations on China and Pakistan need no longer be considered as separate instead one hyphenated strategic entity.
• Time for India to join hands with Japan, US and EU to promote alternatives to Chinese economic exploitation.
• India should aggressively pursue ‘Cotton Route’, Project Mausam and Spice Route to strengthen economic ties between countries in the Indian Ocean rim.
• Bring into action planned strategic Asia Africa Growth Corridor with the help of Japan.

Most of its neighbours have been adept at playing the “China card” against India’s alleged “hegemony”, and China has been quick to exploit this to its advantage. Its strategy has been to bottle up India in the subcontinent, but India can defeat this strategy of China by mending fences with the neighbours and by convincing them that it has no hegemonic ambition.

Hindu ruler Hari Singh tried to negotiate with India & Pak to have an independent status for his state. Since majority population of the state was Muslim, the Pakistan thought Kashmir ‘belonged‘ to them.

India Pakistan Relations

On 15th August Harisingh offered standstill agreement with both countries which allowed the free movement of people & goods. Pakistan signed the agreement but India didn’t. Pakistan became impatient & started violating standstill agreement.  24th October Hari Singh demanded military assistance from India. Mountbatten pointed out that under international law India can send its troops only after state signs a formal instrument of accession – on 26^th Oct Maharaja signed instrument of accession – ratified in 1954.
On 27th Oct. morning nearly 100 planes airlifted men and weapons to Srinagar. Pakistan army left the main valley region but continue to occupy a large chunk of territory of Gilgit, Baltistan region – Pak occupied Kashmir.
At the same time India lodged complaint against Pakistan for their illegal actions in UN. Instead of getting justice at UN, Western powers backed Pakistan. India also accepted UN resolution on ceasefire in spite of its advantageous position and agreed for plebiscite in Kashmir, which laid down two conditions for holding plebiscite –

• Pak should withdraw its forces from the state of J&K
• The authority of the Srinagar administration should be restored over the whole state

• Above mentioned first conditions was never fulfilled, so there was no plebiscite there.
• Meanwhile J&K participated in India’s general elections and then the talk of plebiscite remained irrelevant.

Kashmir conflict didn’t prevent cooperation between governments of India & Pak. Both the governments worked together to restore the abducted women to their original families, a long term dispute of river water sharing was resolved – with world Bank’s mediation and India-Pakistan Indus Water Treaty was signed by Nehru and General Ayub Khan in 1960.

India Pakistan Wars

1965 India Pakistan War 

• Pakistan launched armed attacks in the Rann of Kutch area of Gujarat, later it launched bigger offensive in J & K in 1965.
• Pakistan thought that this time the local population would support the cause of Pakistan, but nothing of this sort happened.
• Meanwhile, in order to ease the pressure from Kashmir front, Shastri ordered Indian troops to launch counter offensive on the Punjab border.
• War was won by India, and the hostilities came to an end with UN intervention.

Due to the mediation of Soviet Union, Both the countries signed the Tashkent Agreement [Shastri from India & General Ayub Khan from Pak] in January 1966. Although India won the war, this war added India the economic difficulties.

1971 India Pakistan War 

The internal crisis of Pakistan after the verdict of their general elections turned violent. Ruling party of Zulfikar Bhutto emerged as winner in West Pakistan while in Eastern Part Rahman’s Awani League won with great margins. However, strong and powerful western establishment ignored the democratic verdict and didn’t accept the League’s demand for federation. Instead of responding to their demands and verdict positively, Pak army arrested Rahman and unleashed brutal terror activities and suppressed their voices.

• To end this menace permanently, people of Eastern Pak started liberation struggle of Bangladesh from Pak.
• Due to the huge influence of refugees from Eastern Pak, India deliberated much and later extended its support to people’s cause materially and morally, which was frowned by Western Pak as Indian conspiracy to break of Pakistan.
• The support to Western Pak came from the USA & China to quash the people’s movement.
• To ensure its safety from the attacks of American and Chinese backed Pak, India signed 20 year Treaty of Peace and Friendship with the Soviet Union.
• Even after much diplomatic deliberations no concrete results could be achieved, and full scale war broke out in 1971 on both the western and Eastern front.
• With the support of local population in the form of “Mukti Bahini” Indian army made rapid progress and compelled the Pakistani troops to surrender in 10 days only.

With emergence of Bangladesh as an independent country, India declared a unilateral ceasefire. Later Shimla Agreement of 1972 between Indira Gandhi & Zulfikar Bhutto brought back the peace between two nations.

Kargil War 

After the debacle of 1971 war, Pak army never tried to fight with Indian army directly & started the proxy war by sending the terrorists trained by their secret agencies to create havoc and panic in J & K and India.

• In 1999, so called Mujahideens occupied several points on the Indian side of LOC in the Mashkoh, Dras, Kaksar, Batalik.
• Suspecting Pak’s hand behind such activities, Indian forces immediately started retaliating to such proxy war which is known as “Kargil conflict”.
• This conflict got worldwide attention because of the nuclear capabilities attained by these countries in 1998, which could be used by either side, however nuclear weapons were not used in war, and Indian troops regained their points.

There was huge controversy surrounding this Kargil conflict, that, the then PM of Pak was kept in the dark of such move. Later, the then Pak army Chief General Parvez Musharraf took over as its President.
International Court of Justice stayed the execution of Kulbhushan Jadhav, who was sentenced to death by a Pakistan military court on the charge of spying. The Court said that India should have been granted consular access to Kulbhushan Jadhav as per the Vienna Convention.
India accused Pakistan of violating the Vienna Convention and conducting a “farcical trial” for convicting Jadhav without a “shred of evidence.