Indian Air Force Day is celebrated annually on 8 October to honor the establishment and achievements of the Indian Air Force (IAF). This day commemorates the founding of the IAF in 1932 and highlights its vital role in safeguarding the nation’s airspace and supporting ground operations.

92nd Indian Air Force Day 2024

Indian Air Force Day, observed on October 8th, commemorates the establishment of the Indian Air Force (IAF) in 1932. This day is celebrated with grandeur across the nation to honor the valiant service and contributions of the IAF and its personnel.

Since its inception, the IAF has played a crucial role in defending India, participating in all major conflicts, and contributing to disaster relief and humanitarian missions. As one of the world’s most modern and powerful air forces, the IAF operates a diverse fleet of fighter jets, bombers, transport aircraft, helicopters, and advanced missile and radar systems.

Committed to safeguarding India’s airspace and national security, the IAF also plays a pivotal role in regional peace and stability.

Indian Air Force Theme 2024

The theme for Indian Air Force Day 2024 is "Bhartiya Vayu Sena – Saksham, Sashakt, Atmanirbhar". This theme emphasizes the Indian Air Force’s focus on being potent, powerful, and self-reliant, highlighting its commitment to utilizing indigenous aircraft and technologies.

The celebrations will include a grand air show on October 6, 2024, in Tamil Nadu, featuring aerobatic performances by elite teams like Akash Ganga, Suryakiran, and Sarang. The main parade will take place at Hindon Air Force Station on October 8, 2024.

Indian Air Force New Ensign

Historically, the Royal Indian Air Force (RIAF) ensign featured the Union Jack in the upper left corner and a Red, White, and Blue roundel on the fly side. Following India's independence, the ensign was redesigned, replacing the Union Jack with the Indian tricolor and the RAF roundel with the IAF tricolor roundel in the lower right corner.

Recently, a new IAF ensign has been introduced to better reflect the values and identity of the Indian Air Force. This redesign includes the addition of the Air Force Crest in the top right corner, symbolizing a reaffirmation of the IAF’s core principles and heritage.

India Air Force Crest

The Indian Air Force (IAF) Crest prominently displays the national emblem, the Ashoka Lion, at the top, with the phrase "सत्यमेव जयते" (Truth Alone Triumphs) written below it in Devanagari script. Beneath the Ashoka Lion, a Himalayan eagle is depicted with its wings spread wide, symbolizing the IAF’s strength and indomitable spirit. Encircling the eagle is a light blue ring with the words "भारतीय वायु सेना" (Indian Air Force) in Devanagari script. This crest embodies the pride, valor, and identity of the Indian Air Force.

Indian Air Force Motto

The motto of the Indian Air Force (IAF), “नभः स्पृशं दीप्तम्” (Nabhaḥ Sparśaṁ Dīptam), is elegantly inscribed beneath the Himalayan eagle in golden Devanagari script. Taken from verse 24, Chapter 11 of the Bhagavad Gita, it translates to “Radiant Thou Touchest Heaven” or “Touching the Sky with Glory.” This powerful motto embodies the IAF’s pursuit of excellence and its commitment to achieving greatness in the skies.

History of Indian Air Force Day

Indian Air Force Day is celebrated on October 8th each year to commemorate the establishment of the Indian Air Force (IAF) on this day in 1932. Initially formed as an auxiliary air force of the British Empire, it was known as the Royal Indian Air Force (RIAF). After India gained independence in 1947, the prefix "Royal" was dropped, and the air force became the Indian Air Force (IAF) in 1950, when India became a republic.

Indian Air Force Day serves as a tribute to the valiant efforts and contributions of the IAF in protecting the nation's airspace and playing a crucial role in various military operations, including all wars India has been involved in since independence. It is also celebrated to honor the sacrifices of IAF personnel and to showcase the advancements in the country’s air defense capabilities.

The day is marked with grand celebrations, including aerial displays, parades, and ceremonies at air force bases across the country, with the main event taking place at Hindon Air Force Station near Delhi. The celebration reflects the strength, resilience, and technological progress of one of the most powerful air forces in the world.

Significance of Indian Air Force Day

Indian Air Force Day carries profound significance, extending well beyond a military celebration. Here’s an in-depth look at its diverse meaning:

1. Honoring the Fallen: It is a solemn occasion to remember and pay tribute to the IAF personnel who have made the ultimate sacrifice while protecting the nation's skies. Their bravery and selflessness remain forever etched in the country’s memory.
2. Recognizing Heroes: The day celebrates the achievements and contributions of both past and present IAF members. Their courage, skill, and unwavering dedication are acknowledged and appreciated on this significant occasion.
3. Inspiring Future Generations: Indian Air Force Day serves as a powerful source of inspiration for the youth, showcasing the IAF as a career path filled with purpose, honor, and service to the nation. It encourages young minds to consider joining this esteemed force.
4. Symbol of National Strength: The impressive aerial displays and technological showcases during the celebrations instill a sense of pride and confidence in India’s capability to defend itself, symbolizing the strength and resilience of the nation.
5. A Unifying Event: This day transcends individual differences, bringing citizens together in a collective spirit of patriotism and appreciation for the IAF’s vital role in safeguarding the nation, fostering unity and shared national pride.
6. Showcasing Technological Advancements: It highlights the IAF’s continuous efforts in modernization and innovation, displaying advancements in indigenous aircraft, weapons systems, and cutting-edge technologies that ensure the nation’s defense readiness.

In conclusion, Indian Air Force Day is not only a military commemoration but a celebration of national pride, unity, and the IAF’s critical role in shaping India’s security and future. It is a day to reflect on past sacrifices, celebrate current achievements, and look toward future aspirations.

Indian Air Force Day FAQs

Q1. Why is Indian Air Force Day celebrated?
Ans. Indian Air Force Day is celebrated to commemorate the establishment of the Indian Air Force and honor its personnel's sacrifices and achievements.

Q2. Which Indian Air Force Day is today?
Ans. Today marks the 92nd Indian Air Force Day.

Q3. What is the anniversary of Indian Air Force?
Ans. The anniversary of the Indian Air Force is on October 8th, commemorating its formation in 1932.

Q4. When is Indian Air Force Day celebrated?
Ans. Indian Air Force Day is celebrated on October 8th every year.

Q5. What is Indian Air Force Motto?
Ans. The Indian Air Force motto is "नभः स्पृशं दीप्तम्" (Nabhaḥ Sparśaṁ Dīptam), meaning "Touch the Sky with Glory."

What’s in today’s article?

• Why in the News?
• About Bilateral Investment Treaty
• India’s Model Bilateral Investment Treaty (BIT)
• Benefits of Model BIT
• Challenges of Model BIT
• News Summary

Why in the News?

• India has eased certain conditions for UAE in the bilateral investment treaty.
• The India-UAE Bilateral Investment Treaty came into force on August 31 this year.

About Bilateral Investment Treaty

• A Bilateral Investment Treaty (BIT) is an agreement between two countries that establishes the terms and conditions for private investments by nationals and companies of one country in the other country.
• BITs are aimed at promoting and protecting investments, ensuring a stable legal environment for investors from both countries.

India’s Model Bilateral Investment Treaty (BIT)

• India’s Model Bilateral Investment Treaty (BIT), introduced in 2016, is a framework designed to guide India’s negotiations of investment treaties with other countries.
• The objective of this Model BIT is to strike a balance between investor protection and sovereign rights of the host state to regulate in public interest.
• The introduction of the Model BIT came after several disputes arose under India’s earlier BITs, prompting the country to revise its investment treaty policy to safeguard both investor interests and India's regulatory autonomy.
• Key Features:
  • Protection of Investor Rights:
    • The Model BIT ensures fair and equitable treatment (FET) of foreign investors but limits its scope.
    • Unlike traditional BITs, where FET is broadly interpreted, the Indian Model BIT provides a narrow definition, making it harder for investors to claim arbitrary treatment.
  • National Treatment and Most-Favoured-Nation (MFN) Clauses:
    • National Treatment guarantees foreign investors the same treatment as domestic investors.
    • However, the MFN clause has been excluded from India’s Model BIT to prevent foreign investors from using provisions from other treaties to gain favourable treatment.
  • Non-Expropriation:
    • The Model BIT assures that expropriation (when the state takes private property for public use) will be carried out only for a public purpose and with due process.
    • It ensures that investors will be compensated fairly for expropriation, but it provides strong provisions to protect the state’s right to regulate for public interest, such as health, environment, and social welfare.
  • Right to Regulate:
    • One of the most notable changes in India’s Model BIT is the explicit right to regulate in areas like public health, environmental protection, and safety.
    • The Model BIT emphasizes that state actions taken to protect public interest should not be considered a breach of the treaty.
  • Investor Obligations:
    • India’s Model BIT introduces the concept of investor obligations, which means that foreign investors must comply with the host country’s laws and regulations, including environmental and social standards.
• Exclusions in India’s Model BIT:
  • No Protection for Tax-Related Issues:
    • One of the significant exclusions is the lack of protection for taxation matters.
    • India’s Model BIT explicitly states that taxation measures will not be subject to ISDS.
  • No Most-Favoured-Nation Clause:
    • The MFN clause is absent in the Model BIT to avoid treaty-shopping by foreign investors (using favourable clauses from another treaty to their advantage).

Benefits of Model BIT

• Balanced Approach:
  • It strikes a balance between investor protection and the state’s right to regulate in public interest, ensuring that India can pursue policy objectives without fear of excessive litigation.
• Investor Obligations:
  • The inclusion of investor obligations, such as compliance with local laws and regulations, ensures accountability and promotes responsible investment.
• Limiting Arbitrary Claims:
  • By narrowing the scope of Fair and Equitable Treatment and removing the Most-Favoured-Nation clause, the Model BIT reduces the likelihood of investors exploiting treaty provisions for arbitration.
• Local Remedies Requirement:
  • Requiring investors to exhaust local remedies before initiating Investor-State Dispute Settlement (ISDS) promotes the use of domestic legal systems, easing the burden of international arbitration.

Challenges of Model BIT

• Investor Reluctance:
  • Stricter conditions, such as the local remedies clause and limited ISDS scope, may deter foreign investors from investing in India, fearing lengthy legal processes or inadequate protection.
• Absence of MFN Clause:
  • The exclusion of the MFN clause could put Indian BITs at a disadvantage compared to treaties of other countries, reducing the attractiveness of India as an investment destination.
• Complex Dispute Resolution:
  • The requirement to resolve disputes through domestic courts first might lead to delays in settling disputes, making investors wary of India’s dispute resolution framework.
• Exclusion of Taxation Matters:
  • By excluding tax-related disputes from arbitration, the Model BIT leaves investors vulnerable to unexpected tax policy changes without recourse to international arbitration.

News Summary

• The India-UAE Bilateral Investment Treaty (BIT), which came into effect on August 31, 2024, reflects changes aimed at making the treaty more investor-friendly.
• According to the Global Trade Research Initiative (GTRI), two key changes stand out:
  • Reduction in Local Remedies Period:
    • The period that investors must attempt to resolve disputes through India's legal system has been reduced from five years to three years.
    • This change provides investors with quicker access to Investor-State Dispute Settlement mechanisms.
    • While it attracts investors by speeding up dispute resolution, it also weakens India's ability to handle disputes domestically, increasing the chances of costly international arbitration.
  • Inclusion of Portfolio Investments:
    • Unlike India's Model BIT, which excludes portfolio investments (such as stocks and bonds), the India-UAE BIT includes them as protected investments.
    • This broadens the treaty's scope and increases India's exposure to disputes over financial instruments, moving away from the Model BIT’s focus on long-term, direct investments.
    • Overall, the treaty signals a shift towards a more open investment environment, but at the cost of some regulatory sovereignty.
    • While it may encourage more investment from the UAE, it also raises the risk of higher arbitration claims.
    • The UAE is currently the seventh-largest investor in India, with about $19 billion in Foreign Direct Investment (FDI) from April 2000 to June 2024.

Q1. What is the difference between Tariff and Tax?

Tariffs are direct taxes levied on products coming from another country. On the other hand, duties are indirect taxes consumers of imported products have to pay. Tariffs and duties defend domestic industries by raising the cost of imports.

Q2. What is the difference between Free Trade Agreement & Preferential Trade Agreement?

The key difference between an FTA and a PTA is that while in a PTA there is a positive list of products on which duty is to be reduced; in an FTA there is a negative list on which duty is not reduced or eliminated.

Source: India eases certain conditions for UAE in bilateral investment treaty: GTRI

What’s in today’s article?

• Why in News?
• Key outcomes of the bilateral meeting
• Analysis of this visit

Why in News?

PM Modi and the visiting President of Maldives Mohamed Muizzu met on 7 October 2024. They comprehensively reviewed the entire gamut of bilateral ties while noting the progress made by both countries in deepening their historically close and special relationship.

Key outcomes of the bilateral meeting

• Vision Document released to transform the bilateral relationship
  • Both sides agreed to transform the bilateral relationship to a Comprehensive Economic and Maritime Security Partnership.
  • In this regard, a Vision Document was released which has detailed sections on various aspects of the bilateral relations between the two countries. 
  • It is a blueprint for relations that has been charted out for the next several years and provides a framework for the ongoing visit. 
  • The document also aims to bring together the objectives for India's own development as have been set out under the Viksit Bharat 2047 plan and Maldives’ own action plan and objectives to become a developed country by 2040.
• Economic and Financial Support
  • India has extended financial support to Maldives, offering INR 30 billion and USD 400 million through a bilateral currency swap agreement. 
    • This assistance aims to alleviate Maldives' financial struggles, as the country's foreign exchange reserves have dropped to dangerous levels. 
  • The two sides have also initiated negotiations for a Free Trade Agreement (FTA) to boost economic cooperation and Indian investments in various sectors of Maldives.
  • The two sides also agreed to settle trade transactions in local currencies.
• Political Exchanges
  • Both countries agreed to intensify political exchanges, including among parliamentarians and local government representatives. 
  • A Memorandum of Understanding (MoU) will institutionalize cooperation between the two Parliaments.
  • Reviving Defence and Security Cooperation
  • India and Maldives agreed to bolster their defence and security cooperation, which had suffered after President Muizzu ordered Indian military personnel out of the country earlier this year. 
  • India will refit and repair a Maldivian Coast Guard vessel, and both nations will collaborate on maritime security, disaster response, and defence capacity building. 
  • Several initiatives have been launched to strengthen Maldives' maritime capabilities, including the provision of radar systems, defence platforms, and infrastructure support.
• Defence and Maritime Security Initiatives
  • Both countries recognized the importance of collaboration in defence and maritime security, agreeing to:
    • Enhance Maldives' surveillance and monitoring capabilities.
    • Support the Maldives National Defence Force (MNDF) with equipment and infrastructure.
    • Strengthen disaster response, risk mitigation, and information-sharing capabilities.
    • Inaugurate the Maldivian Ministry of Defence building constructed with India's assistance.
• Key Agreements Signed
  • Five pacts were signed during the meeting, including agreements on a bilateral currency swap, training of judicial officers, prevention of corruption, law enforcement training, and youth and sports cooperation. 
  • Additionally, the two leaders inaugurated 700 social housing units and a new runway at the Hanimaadhoo International Airport was launched in the Maldives.
  • The two sides also launched the RuPay card in Maldives, which will enhance ease of payments for Indian tourists visiting Maldives
• Development cooperation
  • India and Maldives will collaborate on multiple infrastructure projects, including ports, airports, roads, and housing. Key projects include:
    • The timely completion of the Greater Malé Connectivity Project (GMCP).
    • Feasibility studies for island connections and a commercial port at Thilafushi.
    • Joint development of an Agriculture Economic Zone and fish processing facilities.
• Digital Cooperation
  • India will assist Maldives in developing its digital and financial infrastructure, including launching services like UPI and RuPay for better e-governance and payment ease for tourists.
• Health Cooperation
  • India will help in establishing Jan Aushadhi Kendras and enhancing emergency medical evacuation capacity.
• Capacity Building and Training
  • India will continue to provide customized training for civil servants and launch a program for women-led development. 
  • They also plan to establish a Start-up Incubator-Accelerator in the Maldives to support youth innovation.
• Strengthened People-to-People Ties
  • The two nations also agreed to expand their people-to-people connections. 
  • Plans were announced to establish a consulate of Maldives in Bengaluru and a consulate of India in Addu City. 
  • Both countries acknowledged the strong ties formed through tourism, education, and healthcare, with India being a key source market for tourists visiting Maldives.
  • India will support the establishment of higher education institutions and skilling centers in Maldives. 
  • An ICCR Chair will be established at Maldives National University to foster academic exchange.

Analysis of this visit

• Background: Strained Relations Between India and Maldives
  • Maldivian President's visit to India comes after a period of tension between the two countries. 
  • Muizzu, who assumed office in November 2023, had campaigned on an ‘India Out’ platform, calling for the withdrawal of Indian military personnel from the Maldives. 
  • This led to strained relations, as Muizzu was perceived to be closer to China, evident from his official visits to Turkey and China soon after taking office, bypassing India.
    • Traditionally, India had been the first destination for Maldivian presidents.
  • Relations worsened when Maldivian officials made derogatory comments about Indian PM Modi, which sparked a social media conflict between Maldivians and Indians.
  • The tensions earlier this year affected tourism, with Indian tourist numbers to the Maldives dropping by 50,000, causing a loss of $150 million.
    • India was the biggest source market for tourism to the Maldives in 2023, accounting for over 11% of the 1.8 million tourist arrivals. 
• Muizzu’s Shift in Stance
  • Muizzu’s softened approach toward India reflects his realization of the Maldives' domestic and economic challenges. 
  • Despite his earlier rhetoric, Muizzu emphasized that the Maldives would not compromise India's security and stressed the importance of maintaining a balanced relationship with both India and other countries, including China.
  • Facing a looming economic crisis, including debt repayments and downgraded credit ratings by Moody’s, Muizzu’s visit is seen as an attempt to seek financial assistance from India.

Q.1. What was the significance of President Muizzu’s visit to India in 2024? 

President Muizzu's 2024 visit aimed to reset strained India-Maldives relations and transform the bilateral relationship into a Comprehensive Economic and Maritime Security Partnership. Key agreements included financial aid, defense cooperation, infrastructure development, and the initiation of Free Trade Agreement (FTA) negotiations.

Q.2. What are the major outcomes of the India-Maldives bilateral meeting in 2024? 

Major outcomes include the signing of five pacts, financial aid in the form of INR 30 billion and USD 400 million, defense collaboration, and infrastructure development projects like the Greater Malé Connectivity Project and the launch of RuPay cards in Maldives.

Source: Five pacts inked, agreement on FTA negotiations: India steps up economic aid to Maldives after talks to reset ties | Indian Express | Indian Express

 What’s in today’s article?

• Why in News?
• Significance of Maldives for India
• India – Maldives Bilateral Relation
• Visit of President of Maldives to India

Why in News?

The Enforcement Directorate (ED) has filed a chargesheet against Vivo China, accusing the company of siphoning off Rs 70,000 crore from India under the guise of import payments.

Chinese Commercial Entities (CCE) and India’s internal security

• Background
  • A disturbing picture of Chinese Commercial Entities (CCE) has emerged after a series of actions by Indian authorities since 2020.
    • The investigation began after the June 15, 2020, incident in Ladakh’s Galwan.
  • Actions by Indian authorities included busting of spying rings, tax raids on major Chinese telecom companies, a crackdown on mobile apps and a study of incoming investments into India.
  • The actions by these agencies revealed a web of companies and individuals indulging in espionage, profiling of high value individuals, large-scale tax evasion and exfiltration of bulk data.
  • Findings of investigating agencies
  • The assessment by agencies found that the Chinese commercial entities operate in India with five primary objectives: 
    • influencing minds; build economic control; acquisition of data; for espionage and to target scientists to compromise innovation and intellectual property rights (IPRs).
  • The objective of counterintelligence is pursued through top officials of Chinese companies in India.
  • Small-size shell companies were also used as financial conduits to fund espionage rings and resident agents.
• Modus operandi of these entities
  • Hundreds of small companies controlled by Chinese nationals have dummy Indian directors and managers for a show of legitimacy.
  • Many of these companies did not physically exist at their registered offices. However, their banking accounts were active and being operated from abroad.
  • A cheap (and sometimes below production cost) pricing model that has given them control of a large chunk of the telecom and hardware markets in India.
  • Investigations also show that some senior Chinese employees of these companies are documented members of the Chinese Communist Party.
    • Hence, Beijing has a strong leverage on their operations in India.
  • Agencies also found a seamless flow of data to Chinese servers through remote access of modems, switches, routers and networks sold and installed by these companies in India.
  • Similarly, a seamless data link through Chinese origin mobile phones was also established during investigations. 
    • The data collected has helped Chinese artificial intelligence (AI) engines create portraits, with biometric details of millions of Indians.
• Threat for India’s Internal Security
  • Access to personal data of Indians
    • Chinese entities have been storing away information and data using multiple methods, with the objective of gaining strategic advantage over India’s economic and security systems.
  • Influencing minds
    • Deep cover resident agents, posing as officials of these companies, are attempting to fund and influence masses in India.
    • This is being done to foment the sentiments of masses and create internal disturbances.
    • Such entities are also used to influence Tibetan monks living in India.
    • Chinese national Luo Sang, who was arrested for money laundering in August 2020, was actively sending money in packets to Tibetan monks.
    • Agencies are suspecting that it was intended to gather information about the Dalai Lama and the Tibetan government in exile.
  • Espionage and money laundering
    • Small-size shell companies were also used as financial conduits to fund espionage rings and resident agents.
    • E.g., operating under the name of Charlie Peng, the web is believed to have laundered over Rs 1,000 crore, with some of the proceeds used to gather intelligence in India.
    • Recently, a top executive of a telecom company found in the possession of sensitive documents.
    • The investigation also revealed of exhaustive profiling of key business leaders.

Steps Taken By The Government 

• Crackdown by investigating agencies
  • Chinese commercial entities are under sustained investigation by the intelligence agencies since 2020.
  • Multiple raids have been conducted by the ED under the provision of Prevention of Money Laundering Act.
• Clampdown on Chinese investment
  • In 2020, Central govt declared that foreign investments from countries with which India shares land border shall be under approval route.
  • Since China shares a land boundary with India, this announcement clamped down on investments from China making prior government clearance mandatory for all forms investments, even indirect ones.
• Ban on Chinese app
  • The govt of India has banned more than 250 Chinese apps including PUBG Mobile, Tiktok, Shein, AliExpress and more.
• Other steps
  • The Intelligence Bureau created a new wing — China Coordination Centre — to collaborate with financial enforcement agencies to investigate Chinese companies.
  • The 57th Director General of Police conference, held in January 2023, discussed the issue of influence wielded by Chinese commercial firms.

Vivo China siphoned off Rs 70,000 crore

• About the news
  • ED has filed a chargesheet against Vivo China, accusing the company of siphoning off Rs 70,000 crore from India under the guise of import payments.
• Allegations made by ED
  • The ED claims that Vivo India remitted Rs 70,837 crore abroad since 2014, with large sums being sent to overseas entities controlled by Vivo China. 
    • These entities, based in Hong Kong, Samoa, and the British Virgin Islands, were allegedly set up as trading companies to conceal their connection to Vivo China.
  • The ED also stated that Vivo China tried to hide its relationship with Vivo India, creating a structure that distanced itself on paper while maintaining control over the distribution network. 
    • Special Purpose Vehicles, like Multi Accord Ltd in Hong Kong, were set up to exert control over Vivo India. 
  • The chargesheet also alleges that Vivo India and its state distributor companies misdeclared their ownership to the Indian government. 
    • Chinese nationals used Indian firms like Labquest Engineering Pvt Ltd and Lava International Ltd to carry out unauthorized business activities and obtain invitations to India without raising suspicion.

Q.1. What are the allegations made by the Enforcement Directorate against Vivo China? 

The ED alleges that Vivo China siphoned off Rs 70,000 crore under the guise of import payments. Funds were funneled to overseas entities controlled by Vivo China, using shell companies to conceal their involvement and evade Indian authorities.

Q.2. How did Chinese companies like Vivo China impact India’s internal security? 

Investigations reveal that Chinese companies like Vivo China were involved in espionage, data exfiltration, and economic manipulation. The ED uncovered a network of dummy companies and unauthorized data flow to Chinese servers, posing a threat to India’s internal security.

Source: ED: Vivo China siphoned off Rs 70,000 crore under garb of imports | Hindustan Times | The Economic Times | India Today