Mains Articles for 4-April-2025

by Vajiram & Ravi

Bolstering India's Undersea Cable Infrastructure: Importance, Risks and Measures for Growth Blog Image

What’s in Today’s Article?

  • India Subsea Cable Infrastructure Latest News
  • About Undersea Cables
  • India’s Undersea Cable Hubs
  • Risks Surrounding Undersea Cable Deployment in India
  • Measures to Strengthen India’s Subsea Cable Infrastructure

India Subsea Cable Infrastructure Latest News

  • India is expanding its international internet bandwidth with new cable landing systems. The latest is Airtel’s 2Africa Pearls system, backed by Meta, adding 100 terabits per second of capacity. 
  • Earlier in the year, the SEA-ME-WE-6 cable also landed in Chennai and Mumbai, further boosting connectivity.

About Undersea Cables

  • Undersea cables are the backbone of global internet connectivity. 
  • They link internet service providers and telecom operators across countries, enabling fast and reliable data transmission worldwide.

Structure and Functionality

  • These cables are just a few inches thick but heavily protected to survive harsh sea environments. 
  • Inside, they contain fiber optic strands that carry vast amounts of data at high speeds.

Landing Points and Stations

  • Undersea cables come ashore at designated “landing points” — typically manholes buried under sand. 
  • From there, they connect to “landing stations” inland, where they integrate with major networks.

Critical Role in the Modern World

  • According to experts, undersea cables handle: 90% of global data; 80% of world trade; $10 trillion in financial transactions, and secure government communications.

Data Capacity

  • Modern cables offer several hundred gigabits per second of capacity, serving thousands of telecom users.

Connection to Terrestrial Networks

  • Once on land, undersea cables link to terrestrial networks — a web of less-visible infrastructure like towers and cables — that deliver internet to homes and businesses.

India’s Undersea Cable Hubs

  • India has two major undersea cable landing hubs — Mumbai and Chennai.
  • Mumbai handles 95% of subsea cable traffic, mostly through a six-kilometre stretch in Versova. Many cables that land in Chennai also connect to Mumbai.

Current Cable Infrastructure

  • 17 international cable systems currently land in India.
  • India also has two domestic cable projects:
    • CANI (Chennai–Andaman and Nicobar Islands)
    • Kochi–Lakshadweep Islands project

Planning and Cost

  • Undersea cable projects are capital-intensive and time-consuming, taking months or years to plan and execute, and costing millions of dollars.

India’s Capacity

  • India holds only 1% of global cable landing stations and 3% of subsea cable systems.
  • For now, existing infrastructure meets demand, and most traffic is handled by current capacity.
  • However, experts warn of future shortfalls due to rapidly increasing data usage.

Risks Surrounding Undersea Cable Deployment in India

  • Vulnerability to Cable Cuts at Sea
    • India’s internet infrastructure is highly dependent on undersea cables, with more cables landing in Singapore than in India, making the country vulnerable to disruptions at sea.
    • A disruption in critical areas like the Red Sea could bring down 25% of India’s internet connectivity.
  • Impact of Cable Cuts in the Red Sea
    • In 2024, subsea cable cuts in the Bab-el-Mandeb Strait (due to strikes by Houthi rebels) caused temporary issues. 
    • These cuts did not significantly destabilize India’s internet due to excess capacity in other networks, but a larger disruption could have a severe impact.
    • Large-scale damage to multiple cables in the region could cause significant internet outages, with limited ability to reroute data.
  • Historical Dependence on Shipping Routes
    • Subsea cables have traditionally followed shipping trade routes, as these routes made it easier to lay down cables.
    • This alignment makes India’s internet infrastructure susceptible to risks from disruptions in these maritime trade corridors.

Measures to Strengthen India’s Subsea Cable Infrastructure

  • Streamlining Regulatory Processes
    • Companies face delays due to excessive permissions required for landing subsea cables in India. 
    • Currently, around 51 different approvals are needed, spanning various departments like the Department of Telecom, Home Ministry, Environment Ministry, and local municipalities.
    • Simplifying and streamlining these regulatory procedures would reduce delays and improve the ease of laying subsea cables.
  • Enhancing Cable Security
    • Securing subsea cables is a significant concern, as fishing trawlers frequently damage cables, disrupting services.
    • Better security measures and monitoring systems need to be implemented to protect these critical infrastructures from physical damage.
  • Building Domestic Repair Capabilities
    • India currently depends on foreign repair vessels for fixing damaged subsea cables, which involves long approval processes.
    • There is a need for increased domestic investment in subsea cable repair vessels and cable storage depots to expedite repair work and reduce dependency on foreign resources.

India Subsea Cable Infrastructure FAQs

Q1. What role do undersea cables play in global connectivity?

Ans. Undersea cables handle 90% of global data, 80% of trade, and $10 trillion in financial transactions.

Q2. What are India's key subsea cable hubs?

Ans. India’s main subsea cable hubs are Mumbai and Chennai, with Mumbai handling 95% of the traffic.

Q3. Why is India vulnerable to subsea cable disruptions?

Ans. India relies on cables landing in Singapore and other areas, leaving it vulnerable to global disruptions.

Q4. How can India's subsea cable infrastructure be improved?

Ans. By streamlining regulatory processes, enhancing cable security, and building domestic repair capabilities for cables.

Q5. What caused the subsea cable disruption in the Red Sea in 2024?

Ans. The disruption was due to attacks by Houthi rebels in the Bab-el-Mandeb Strait, affecting India’s connectivity.

Source: TH | UNCLOS


India-Thailand Strategic Partnership: PM Modi’s Visit Reinforces ‘Act East–Act West’ Synergy Blog Image

What’s in Today’s Article?

  • India-Thailand Latest News
  • Historical and Cultural Linkages
  • Political Relations between India and Thailand
  • Economic and Commercial Relations
  • The Indian Diaspora in Thailand
  • News Summary
  • India-Thailand Strategic Partnership FAQs

India-Thailand Latest News

  • Prime Minister Narendra Modi landed in Thailand on a two-day visit to attend the 6th BIMSTEC summit.

Historical and Cultural Linkages

  • India and Thailand share civilizational ties rooted in history, culture, and religion. 
  • Buddhism, which originated in India, remains a key spiritual bond between the two countries. 
  • Ancient linkages through maritime trade routes and cultural exchanges, such as the adaptation of the Ramayana in Thai folklore as Ramakien, have ensured a long-standing mutual cultural appreciation. 
  • Indian influence is visible in Thai architecture, language (Sanskrit-Pali roots), traditional medicine, and performing arts.
  • Thailand has historically acknowledged these ties, recently reaffirmed by the issuance of a commemorative postage stamp based on the Ramayana mural paintings during PM Modi’s 2025 visit.

Political Relations between India and Thailand

  • India and Thailand share warm and friendly political relations rooted in historical and cultural ties. 
  • The relationship gained momentum after India launched its 'Look East Policy' in the early 1990s, which evolved into the 'Act East Policy' under Prime Minister Modi. 
  • Thailand, in turn, has embraced its 'Act West Policy', seeking deeper engagement with South Asia.
  • Both nations support multilateralism and collaborate closely in regional forums like ASEAN, BIMSTEC, ADMM-Plus, and the East Asia Summit.

Economic and Commercial Relations

  • India and Thailand are important economic partners within Southeast Asia.
  • During FY 2023-24, Thailand was the 21st largest trading partner of India with total bilateral trade of around USD 14.94 Billion
  • Thailand is part of India’s regional trade ambitions through ASEAN and BIMSTEC.
  • There is a push to enhance mutual investments, MSME collaboration, and connectivity through initiatives such as the India-Myanmar-Thailand trilateral highway. 

The Indian Diaspora in Thailand

  • The Indian community in Thailand, estimated at over 250,000, includes both historical and recent migrants.
  • They are primarily engaged in trade, jewellery business, hospitality, and various service sectors. 
  • Indians are well integrated into Thai society and have contributed to strengthening people-to-people ties. 
  • Prominent Indian-origin associations and Buddhist spiritual networks further bridge societal connections between the two nations.

News Summary

  • Upgrading to a Strategic Partnership
    • During his two-day visit to Thailand in April 2025, Prime Minister Narendra Modi announced the elevation of bilateral ties to a "Strategic Partnership" following delegation-level talks with Thai PM Paetongtarn Shinawatra
    • This development signifies a deepening of ties in security, trade, and regional cooperation in the Indo-Pacific. 
    • The leaders agreed to establish a Strategic Dialogue between security agencies of both nations, signalling enhanced maritime and defence cooperation.
  • Indo-Pacific Vision and Regional Connectivity
    • Reaffirming India’s support for ASEAN Centrality and Unity, PM Modi underlined the shared vision of a free, open, inclusive, and rules-based Indo-Pacific. 
    • He contrasted India’s developmental approach (vikaasvaad) against expansionism (vistaarvaad), sending a clear message in line with India's evolving geopolitical stance in Asia. 
    • PM Modi also reiterated India’s commitment to the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), which both countries are a part of.
    • Ahead of the 6th BIMSTEC Summit, he stressed BIMSTEC’s role in boosting regional connectivity and trade. 
    • A key agenda item included the signing of an Agreement on Maritime Cooperation, a strategic component given India’s and Thailand’s maritime interests.
  • Cultural Diplomacy and Symbolic Gestures
    • In a powerful gesture of soft diplomacy, Thailand gifted PM Modi with the World Tipitaka: Sajjhaya Phonetic Edition, symbolizing shared Buddhist heritage. 
    • This version was specially published in 2016 to commemorate the 70-year reign of Thai monarch King Bhumibol Adulyadej.

India-Thailand Strategic Partnership FAQs

Q1. What major development occurred during PM Modi’s 2025 visit to Thailand?

Ans. India and Thailand elevated their bilateral ties to the level of a Strategic Partnership.

Q2. What sectors saw new cooperation agreements during the visit?

Ans. New cooperation areas include MSMEs, handlooms, handicrafts, tourism, and education.

Q3. How does the India-Thailand partnership align with the Indo-Pacific strategy?

Ans. Both countries support a free, open, inclusive, and rules-based Indo-Pacific order.

Q4. What cultural gesture did Thailand make during PM Modi’s visit?

Ans. Thailand issued a postage stamp based on Ramayana murals and gifted PM Modi the Tipitaka scriptures.

Q5. What regional platform did PM Modi engage with during the visit?

Ans. PM Modi participated in the 6th BIMSTEC Summit held in Thailand.

Source: IE


Trump Imposes Reciprocal Tariffs from April 2: Impact on India & Global Trade Blog Image

What’s in Today’s Article?

  • Trump’s Reciprocal Tariffs on India Latest News
  • Announcement of Reciprocal Tariffs
  • Analysis of the Tariffs: Kindness or Economic Strategy
  • India and the US Tariffs
  • Silver Linings for India Amidst Trump’s Tariff Storm
  • Trump’s Reciprocal Tariffs on India FAQs

Trump’s Reciprocal Tariffs on India Latest News

  • On April 2, US President Donald Trump marked "Liberation Day" by announcing reciprocal tariffs on major trading partners. 
  • President Trump’s tariffs mark a protectionist shift more intense than the 1930s Smoot-Hawley Act, which had worsened the Great Depression. The reciprocal tariff logic implies more hikes if other nations retaliate. Experts fear there is only two paths from here: either negotiation or escalation.

Announcement of Reciprocal Tariffs

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  • Base Tariff
    • A 10% base tariff will be imposed on all countries.
    • This is a significant increase from the pre-Trump tariff rate of 2.5%.
    • The base tariff will take effect from April 5.
  • Country-Specific Tariffs
    • Additional tariffs will be applied based on how much each country charges on US goods.
    • These tariffs are set at half the rate of what the US estimates other countries impose.
    • President Trump cited American "kindness" as the reason for this discounted approach.
    • These tariffs will be enforced from April 9.

Analysis of the Tariffs: Kindness or Economic Strategy

  • Disproportionate Impact on Low-Income Countries
    • Cambodia, with a low per capita income of $2,950 and contributing just 1% to the US trade deficit, faces the highest tariffs.
    • Bangladesh, with an even lower per capita income and only 0.5% of the US trade deficit, faces a 37% tariff.
  • Lighter Tariffs on Major Deficit Contributors
    • China, which accounts for 25% of the US trade deficit, faces a 34% tariff.
    • The EU, responsible for 20% of the deficit, faces a 20% tariff.
    • Only three regions (China, EU, and Vietnam) contribute double-digit shares to the US trade deficit.
  • Wealthier Nations Not Exempt
    • Countries richer than the US per capita (Switzerland and Singapore) also face tariffs.
  • Trade Surplus Countries Also Affected
    • Even countries where the US enjoys a trade surplus—like the UK, Brazil, Singapore, and Colombia—face sharp tariff increases.

India and the US Tariffs

  • India has been smacked with a tariff rate of 26%.

Key Concerns Raised by the US

  • High and Unpredictable Tariffs
    • India’s WTO-bound agricultural tariff rates average 113.1%, going up to 300%.
    • Frequent tariff hikes without prior notice create uncertainty for US exporters.
    • Tariffs were increased in multiple budgets on solar products, telecom equipment, and consumer electronics.
  • Regulatory and Policy Barriers
    • Lack of transparency in tariff announcements and trade regulations.
    • No uniform government procurement policy, leading to inconsistent practices.
    • Inadequate intellectual property (IP) enforcement.
  • Foreign Investment and Market Access Restrictions
    • FDI restrictions in retail and dominance of state-owned banks (holding 60% market share).
    • Unequal competition in the insurance sector, with state-owned firms enjoying government support.
  • Agriculture and Subsidies
    • Extensive subsidies (credit waivers, crop insurance, and input subsidies) distort market competition.
  • Digital and Trade Barriers
    • Frequent internet shutdowns disrupt commercial operations and hinder digital trade.
    • Lack of transparency in regulatory changes, often without proper WTO notification.

Silver Linings for India Amidst Trump’s Tariff Storm

  • Comparative Advantage Over Key Export Rivals
    • Initially, President Trump announced a 26% reciprocal tariff on India. However, the final executive order’s annexure later revised this to 27%, reflecting a slight upward adjustment in the tariff rate.
    • This is significantly lower than tariffs imposed on China (34%), Vietnam (46%), Bangladesh (37%), Thailand (36%), and Indonesia (32%).
    • India's key export sectors like textiles and garments may gain a competitive edge over these nations in the US market.
    • Though some nations like Japan, South Korea, and the EU face lower tariffs, they don’t compete directly with India in most export categories.
    • Moreover, pharmaceuticals — India’s biggest export to the US — are exempted under the executive order.
  • Scope for Bilateral Negotiation
    • The Trump administration has left room for revision of tariffs if trade concerns are addressed.
    • India is already in talks with the US for a bilateral trade deal, aiming to finalize the first phase by October.
  • India’s Pragmatic Non-Retaliatory Approach
    • While countries like EU, Japan, Australia, and China may retaliate, India is unlikely to do so given its relatively lower tariff burden and ongoing trade talks.
    • Retaliation could trigger a damaging tariff war, which India appears keen to avoid.
    • Instead, India could use this opportunity to:
      • Reduce its own high tariffs
      • Negotiate trade concessions with both the US and other partners
      • Dismantle arbitrary non-tariff barriers recently imposed
  • Conclusion 
    • The tariffs may act as a wake-up call to make domestic policy more transparent and predictable, especially in areas like tariffs, FDI, IP enforcement, and digital regulation.
       

Trump’s Reciprocal Tariffs on India FAQs

Q1. What is the base tariff rate under Trump’s new policy?

Ans. A 10% base tariff will be imposed on all countries, a significant increase from 2.5%.

Q2. How does India’s tariff rate compare to other countries?

Ans. India faces a 26% tariff, which is lower than China’s 34%, Vietnam’s 46%, and Bangladesh’s 37%.

Q3. Which Indian export sector benefits from Trump's tariffs?

Ans. Textiles, garments, and pharmaceuticals (India’s largest export) are positively impacted, especially in comparison to other nations.

Q4. How has India responded to Trump’s tariffs?

Ans. India is focused on bilateral negotiations, aiming to reduce high tariffs and improve trade relations with the US.

Q5. What is the potential impact of India’s pragmatic approach?

Ans. India’s non-retaliatory stance helps avoid a trade war, allowing space for negotiation and potential tariff reductions.

Source: IE | TH | IE