Strengthening Indo-French Ties & Co-Chairing AI Summit

Strengthening Indo-French Ties & Co-Chairing AI Summit

What’s in Today’s Article?

  • India-France AI Summit Latest News
  • Indo-France relationship in brief
  • Robust Defence Collaboration
  • India at AI Summit: A Recognition of Its Growing Role
  • New Delhi’s Focus at the AI Summit
  • India-France AI Summit FAQs

India-France AI Summit Latest News

  • France and India have significantly deepened their partnership since 1998, expanding cooperation in defence, nuclear energy, space, trade, and culture. 
  • Now, with AI as a new frontier, France has invited India to co-chair the AI Action Summit, reaffirming their global collaboration.

Indo-France Relationship in Brief

  • PM Modi and President Macron share a strong personal rapport, having met thrice in 2024, with Macron attending India’s Republic Day celebrations as Chief Guest.

Enduring Diplomatic Relations

  • India-France ties are built on strategic autonomy and mutual respect. France has historically stood by India during critical moments:
    • In 1998, France refused to impose sanctions after India’s nuclear tests.
    • In 1976, Chirac visited India as PM during the Emergency, when India faced global isolation.

Robust Defence Collaboration

  • India and France maintain a strong defence partnership, reviewed under the Annual Defence Dialogue and the High Committee on Defence Cooperation. 
  • Major ongoing projects include:
    • Rafale fighter jet acquisitions, with discussions on purchasing 26 Rafale-M jets for the Indian Navy.
    • P-75 Scorpene Project, with plans for three additional submarines.
    • Co-development of next-generation fighter jet engines.
    • DRDO office in the Indian Embassy (opened in 2023) to enhance technology cooperation.
    • France’s commitment to “Make in India” and technology transfer sets it apart from competitors, with dedicated training programs for Indian personnel.

Expanding Beyond Defence

  • Bilateral cooperation now extends to renewable energy, trade, supply-chain partnerships, and people-to-people relations. Key developments include:
    • India-France Innovation Year 2026 logo unveiling.
    • New Indian Consulate in Marseille to boost economic and cultural ties.
    • Marseille as a strategic data hub for global communications via undersea cables.

Economic & Technology Partnerships

  • In 2023-2024, India and France's bilateral trade exceeded $15 billion for the first time. 
  • India's exports to France increased to $7.14 billion, while imports from France increased to $7.97 billion.
  • During the current visit, PM Modi and President Macron will hold an India-France CEOs’ Forum, focusing on:
    • Make in India collaboration in renewable energy, defence, start-ups, and pharmaceuticals.
    • Triangular Development Cooperation Initiative for climate and SDG-focused projects in the Indo-Pacific.
    • ITER fusion project visit near Marseille, with India playing a key role in advancing fusion energy technology.

India at AI Summit: A Recognition of Its Growing Role

  • India’s invitation to co-chair the AI Summit highlights its expanding influence in emerging technologies and Paris’s commitment to shared values. 
  • While China dominates AI globally, France’s choice underscores strategic alignments.
  • The Summit, attended by key global leaders, offers India an opportunity to:
    • Promote inclusive and responsible AI development.
    • Address ethics, governance, and accessibility concerns.
    • Advocate for AI democratisation and its benefits for the Global South.

Aims of the AI Summit

  • The Paris AI Summit builds on previous global efforts, including the UK Summit (November 2023) and the South Korea Summit (May 2024), to advance responsible AI governance.
  • Key Outcomes from Previous Summits
    • Bletchley Park Declaration (UK Summit): Affirmed AI should be safe, human-centric, trustworthy, and responsible.
    • Seoul Declaration (South Korea Summit): Strengthened international cooperation on AI and proposed a network of AI Safety Institutes.

Paris Summit Themes

  • The summit will focus on five main areas:
    • Public Interest AI
    • Future of Work
    • Innovation and Culture
    • Trust in AI
    • Global AI Governance

New Delhi’s Focus at the AI Summit

  • India AI Mission
    • India will showcase the IndiaAI Mission, a ₹10,371 crore initiative under the theme “Making AI in India and Making AI for India”. 
    • The program aims to democratize AI innovation and ensure its equitable distribution among citizens.
  • Focus on Global AI Cooperation
    • Global Partnership on Artificial Intelligence (GPAI)
      • India is a founding member and lead chair of GPAI (2024), an OECD-backed initiative for responsible AI development.
      • India seeks to make GPAI the central platform for global AI cooperation.
    • Bridging the AI Divide
      • India is advocating inclusive AI governance to reduce disparities between AI-leading and AI-lagging nations.
      • The goal is to democratize AI and ensure fair access to AI advancements.
    • Prioritizing the Global South
      • India is pushing for greater representation of developing nations in AI discussions.
      • It highlights the unique challenges and opportunities of the Global South in AI governance.

India-France AI Summit FAQs

Q1. What is the AI Summit?

Ans. The AI Summit is a global event focused on responsible AI governance, ethics, innovation, and international cooperation in artificial intelligence.

Q2. What is the AI mission in India?

Ans. The IndiaAI Mission is a ₹10,371 crore initiative aimed at advancing AI innovation, research, and responsible AI adoption across sectors.

Q3. What is the budget of IndiaAI Mission 2024?

Ans. The IndiaAI Mission 2024 has a budget of ₹10,371 crore, dedicated to fostering AI research, development, and democratization. 

Q4. Is India a member of GPAI?

Ans. Yes, India is a founding member and the lead chair of the Global Partnership on Artificial Intelligence (GPAI) in 2024.

Q5. What is the purpose of GPAI?

Ans. GPAI promotes responsible AI development, international collaboration, ethical AI use, and bridging gaps between AI-leading and AI-lagging nations.

Source: IE | EOI

Centre vs Delhi Government: Constitutional Conflict and Supreme Court Rulings

Centre vs Delhi Government: Constitutional Conflict and Supreme Court Rulings

What’s in Today’s Article?

  • Centre vs Delhi Government Latest News
  • Introduction
  • Constitutional Status of Delhi
  • Legal Battles Between Centre and Delhi Government
  • Central Government's Legislative Response
  • Governance Crisis and Political Fallout
  • Conclusion
  • Centre vs Delhi Government Conflict FAQs

Centre vs Delhi Government Latest News

  • Over the past decade, the Aam Aadmi Party and the Central government has seen a constant legal battle over Delhi’s unique constitutional status and how it is governed.

Introduction

  • The governance of Delhi, India's national capital, has been a contentious issue for years, leading to a continuous legal battle between the Aam Aadmi Party (AAP)-led Delhi Government and the BJP-led Central Government.
  • The primary conflict revolves around Delhi’s unique constitutional status, which places it under a special category as a Union Territory (UT) with a legislature.
  • The struggle over administrative control, particularly over bureaucratic appointments, law enforcement, and governance powers, has led to several Supreme Court (SC) interventions and amendments in governance laws.

Constitutional Status of Delhi

  • Delhi’s governance is defined by Article 239AA of the Indian Constitution, introduced through the Sixty-Ninth Constitutional Amendment Act (1991). This article provides Delhi with:
    • A Legislative Assembly with the power to make laws on subjects from the State List and Concurrent List, except police, public order, and land.
    • An elected Chief Minister (CM) and a Council of Ministers responsible for day-to-day administration.
    • A Lieutenant Governor (L-G), appointed by the President of India, who acts as the Centre’s representative in Delhi.
  • This division of powers has frequently led to conflicts over jurisdiction, policy decisions, and administrative control.

Legal Battles Between Centre and Delhi Government

  • The 2015 Notification and Initial Conflict
    • When AAP returned to power in Delhi in 2015, the Union Home Ministry issued a notification giving the L-G control over bureaucratic services, land, police, and public order.
    • The Delhi Government challenged this decision in the High Court, arguing that the elected government should have authority over services and administration.
  • Supreme Court Verdicts on Delhi’s Powers
    • The legal battle escalated to the Supreme Court, leading to multiple landmark rulings:
    • 2016 Delhi High Court Ruling
      • The Delhi HC ruled in favor of the Centre, stating that the L-G had overriding powers over Delhi.
      • This decision effectively curtailed the Delhi Government’s autonomy.
    • 2018 Supreme Court Judgment
      • A five-judge Constitution Bench ruled in favour of the Delhi Government. It declared that:
      • The L-G must act on the "aid and advice" of the elected government except in matters of public order, land, and police.
      • The Delhi Government has legislative and executive control over other subjects, including administrative services.
    • 2023 Supreme Court Verdict
      • A second Constitution Bench reaffirmed the 2018 ruling, clarifying that:
      • The Delhi Government has control over administrative services, except matters related to law enforcement and land.
      • The Centre’s argument that no UT has control over services was rejected.
    • Despite these Supreme Court victories, the Central Government introduced amendments to limit Delhi’s powers.

Central Government's Legislative Response

  • Government of National Capital Territory of Delhi (Amendment) Act, 2023
    • In May 2023, the Centre passed an amendment to override the Supreme Court’s ruling. This amendment:
      • Extended the L-G’s power over appointments and transfers of bureaucrats.
      • Created a new authority comprising the Delhi CM, Chief Secretary, and Home Secretary, where the CM can be vetoed by bureaucrats.
    • Delhi Government challenged this amendment in the Supreme Court, arguing it violates the principles of federalism.

Governance Crisis and Political Fallout

  • Impact of Legal Battles on Delhi’s Administration
    • The governance crisis has delayed policymaking and project implementation in Delhi.
    • AAP has accused the Centre of obstructing development programs and administrative reforms.
  • Political Context and Future Implications
    • With BJP set to take power in Delhi in 2025, the legal challenges might lose momentum.
    • The Centre’s increased control over Delhi’s administration may continue, affecting AAP’s ability to govern freely.
    • The Supreme Court is yet to give a final ruling on the 2023 amendment, which could determine the future balance of power in Delhi.

Conclusion

  • The Centre vs Delhi Government conflict is a constitutional, legal, and political issue that has shaped governance in the national capital.
  • Despite multiple Supreme Court rulings in favor of Delhi’s autonomy, the Centre has used legislative amendments to assert control over key administrative functions.
  • The legal and political struggle continues, with implications for the broader question of federalism in India.
  • As the case progresses, it will set a precedent for the governance of Union Territories with legislatures, such as Puducherry and Jammu & Kashmir.

Centre vs Delhi Government Conflict FAQs

Q1. What is the main reason for the conflict between the Centre and the Delhi Government?

Ans. The conflict arises due to Delhi’s unique status as a Union Territory with a legislature, leading to disputes over control of administrative services and governance powers.

Q2. What was the 2018 Supreme Court ruling on Delhi’s governance?

Ans. The SC ruled that the Delhi Government has executive power over all matters except public order, police, and land, and the L-G must act on its advice.

Q3. How did the Central Government limit Delhi’s powers in 2023?

Ans. The Centre amended the Government of NCT of Delhi Act to give the L-G authority over bureaucratic appointments and transfers, reducing the Delhi Government’s control over administration.

Q4. What impact does this conflict have on governance in Delhi?

Ans. The power struggle has led to administrative delays, legal battles, and policy gridlocks, affecting governance and public service delivery in the capital.

Q5. Is there a final resolution to the Centre vs Delhi Government dispute?

Ans. No, the issue is still under judicial review in the Supreme Court, and the 2023 amendment remains challenged by the Delhi Government.

Source: IE

India Faces Steel Dumping Risk as Trump Imposes 25% Tariff on Imports

India Faces Steel Dumping Risk as Trump Imposes 25% Tariff on Imports

What’s in Today’s Article?

  • Steel tariff impact on India Latest News
  • India’s Concerns Amid Trump’s Fresh Tariff Threat
  • Canada & Brazil Face Direct Impact; India Less Affected
  • Potential Global Retaliation
  • Conclusion: Navigating Uncertainty
  • Steel tariff impact on India FAQs

Steel tariff impact on India Latest News

  • Trump announced a 25% tariff on all foreign steel and aluminium imports, including from allies like Canada and Mexico. He also plans to introduce reciprocal tariffs later in the week. 
  • This move follows previous tariff hikes on Chinese goods and threats against Europe, Taiwan, and key industries.
  • Indian metal stocks reacted sharply to this news, with the Nifty Metal index falling 3%, while Tata Steel and JSW Steel saw declines of 4%. Investors fear reduced export competitiveness and shrinking revenues for Indian metal producers.

India’s Concerns Amid Trump’s Fresh Tariff Threat

  • US President Donald Trump’s renewed threat of a 25% tariff on steel and aluminium has raised concerns among Indian companies about downward pressure on domestic steel prices due to reduced access to the US market.

Rising Steel Imports and Dumping Concerns

  • There are concerns over dumping with steel imports already on the rise.
  • Higher tariffs may divert Asian steel exports to India, intensifying competition and pushing domestic prices downward. 
    • In 2018, when the U.S. last imposed such tariffs, countries exporting steel to the U.S. were forced to seek alternative markets, flooding India with excess supply. 
    • This led to price drops and significant losses for domestic producers.
  • Small Indian producers could suffer from low-cost Chinese dumping, requiring India to tread cautiously in its trade policies.

Indian Steel Producers to Face Export Challenges

  • Moody’s Ratings warned that Indian steelmakers will struggle to export following the US decision to impose an additional 25% tariff on steel and aluminium imports.
  • The new US tariffs will intensify competition and worsen oversupply in global steel markets, further challenging Indian steel exports.

Global Overcapacity Threatens Indian Manufacturing

  • Countries like China, Japan, and South Korea face significant overcapacity in steel production. 
  • China, in particular, has shifted from long to flat products, increasing exports worldwide, which poses a risk to India’s domestic steel sector.

Ripple Effects on Indian Steel Exports

  • Past US tariffs led to trade diversions, with Chinese steel exports shifting towards Europe, prompting the EU to impose import restrictions that negatively impacted Indian exports. 
  • Experts warn that the new tariffs could once again disrupt the global stainless steel market.

Rupee Under Pressure

  • The Indian rupee is expected to weaken further due to market uncertainty and potential disruptions in trade. 
  • Analysts predict increased currency volatility in the coming weeks.

Canada & Brazil Face Direct Impact; India Less Affected

  • The US imports most of its steel from Canada, Brazil, and Mexico, with South Korea and Vietnam also being significant suppliers. 
  • Canada alone accounted for 79% of US primary aluminum imports in the first 11 months of 2024.

India’s Limited Exposure

  • India’s primary steel exports to the US in 2024 amounted to $450 million, while aluminium exports reached $820 million. 
  • Steel pipes, tubes, and related products had minimal exports, totalling just $2.83 million, indicating limited direct impact from the new tariffs.

Potential Global Retaliation

  • Experts warned that major exporters like China, South Korea, Japan, and the EU might introduce countermeasures if the tariffs take effect. 
  • The EU had previously retaliated against similar US tariffs in 2018 by imposing duties on American goods.

Conclusion: Navigating Uncertainty

  • India’s metal industry must prepare for market volatility. Strategies like supply chain diversification, domestic demand growth, and government intervention may help mitigate the impact. 
  • Indian steelmakers are advocating for higher import duties (from 7.5% to 15%) to curb excessive imports.
  • The government is considering expanding production-linked incentive (PLI) schemes for domestic manufacturing.
  • With steel imports already increasing, the Ministry of Commerce and Industry launched a safeguard duty investigation. 
    • A safeguard duty is a type of customs duty imposed by emergency action under the WTO Agreement on Safeguards. 
    • It is designed to prevent harm and injury to a domestic industry that would face intense competitive pressure from the continued importation of a particular good.

Steel tariff impact on India FAQs

Q1. What is a safeguard investigation?

Ans. A safeguard investigation assesses whether surging imports harm domestic industries and may recommend temporary duties to protect local producers.

Q2. What are safeguard duties?

Ans. Safeguard duties are emergency tariffs imposed to prevent serious injury to domestic industries from a sudden surge in imports.

Q3. What is steel made of?

Ans. Steel is primarily made of iron and carbon, with varying amounts of manganese, chromium, and nickel for strength and durability. 

Q4. Is steel on the periodic table?

Ans. No, steel is an alloy, not a pure element, so it is not listed on the periodic table.

Q5. Is steel 100% iron?

Ans. No, steel contains iron and small amounts of carbon and other elements to enhance strength, corrosion resistance, and flexibility. 

Source: IE | TF | CNBC

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