The Big EFTA Deal

The significance of the trade and economic partnership between India and the European Free Trade Association (EFTA) announced on March 10 goes much beyond a commercial and tariff arrangement. The grouping comprising Norway, Switzerland, Iceland, and Liechtenstein has, as part of the agreement, agreed to help channel $100 billion of private investment over the next 15 years and widen the range of Indian exports to these nations. There is a strong geopolitical context to the pact as it signals a desire to diversify from China. The assessment of this group of European nations, known for their hard-headed and practical approach to trade and commerce, is that India is capable of generating durable returns over time. Nordic business entities have been keen on greater access to the Indian market and have pressed their governments to move in this direction. The trade pact is a reminder to the EU and the UK that they need to conclude FTAs with India without delay. The EU bureaucracy and the maze of political and commercial interests that dominate thinking in Brussels have retarded trade negotiations. And despite the need to deepen trade ties with non-European nations post-Brexit, British politics remains in a time warp and the FTA with India is seriously delayed. The EFTA nations have recognised the need to seize the moment with India rather than waste time on prescriptive commentary about India’s economic and political choices—a colonial hangover that elites in the UK find difficult to get over. The $100 billion target is a strong commitment and it is clear the Indian government will do its bit to vastly increase investments from EFTA nations with Prime Minister Narendra Modi not only welcoming the “watershed” moment but promising that India will extend all possible help to new trade allies and facilitate industry and business to achieve committed targets and go beyond them. The trade pact with the four European nations also reflects a sense of realism in the wake of the Russian invasion of Ukraine which dramatically highlighted EU’s ill-considered policy choices that have reduced its options in energy security and military preparedness. The trade pact, apart from covering the traditional economy, promises accelerated cooperation and investments in forward-looking sectors like digital trade, transport and logistics, biotechnology and clean energy.

Bajrang Cops Out

A little more than a year-and-a-half ago, ace wrestler Bajrang Punia won the Commonwealth Games (CWG) gold in Birmingham by thoroughly dominating his Canadian opponent. There was a glint in his eyes as Punia recovered from an unexpected takedown that cost him two points and he made sure there were no further hiccups in achieving a third consecutive gold at CWG. His participation in the agitation against former WFI chief Brij Bhushan Sharan Singh seems to have distracted him from his sport and he cut a sorry figure in the selections for the Paris Olympics despite having trained in Russia recently. He was easily bested by Rohit Kumar by a 9-1 margin. It is evident that Bajrang is far from his best form that made him a wrestling legend and a national icon. He did not even stay to complete the competition for the third and fourth places, having lost the race for the Paris Games in the 65kg category. Sport officials feel Punia needs to focus with much greater effort on wresting as he is not getting younger and newer talent is rapidly emerging through state and national-level tournaments.

Amethi Dilemma

The influx into BJP of several political figures, including many from Congress, continues even as Rahul Gandhi’s yatra enters Gujarat. The recent departure of veteran Congress leader Arjun Modhwadia raised more than a few eyebrows given his long association with the party. As Modhwadia made it clear, BJP did not need him to advance its goals in the state which it dominates. He pointed to Congress declining the invitation for the January 22 consecration of the Ram Lalla idol in Ayodhya as a reason for his exit and this poses difficult questions for the party. Though Congress has confirmed that Rahul will contest from Wayanad, his current Lok Sabha seat, there is silence on reports that he may also stand from Amethi. The Congress scion has made several disparaging comments about the Ram Mandir consecration, calling the event a show for the rich like the Ambanis and the Adanis. He incorrectly stated that Aishwarya Rai Bachchan, daughter-in-law of Bollywood icon Amitabh Bachchan, attended the event. His dismissive comments are sure to be brought up if he does choose to contest from Amethi which he lost to BJP’s Smriti Irani in 2019. Criticism of the Ram Mandir event by Congress leaders—party president Mallikarjun Kharge said BJP was raising the issue as part of a conspiracy—could hurt prospects of Congress candidates everywhere.

Fighter Punch

The recent Cabinet Committee on Security decision to green-light the development of a fifth-generation stealth fighter is a crucial one intended to significantly enhance India’s capacities in developing aerial warfare platforms. It hinges on the pathbreaking deal with Boeing to manufacture F414 engines in India. The manufacture and technology transfer will make India capable of manufacturing advanced fighter jets needed to supplement and ultimately replace the imported line of aircraft, such as Mirages and Jaguars acquired a couple of decades ago. India has lagged in advanced avionics needed to manufacture advanced jets as also in the field of alloys and specialised engineering required for production of modern fighters. The indigenous Kaveri engine project, which was sanctioned in the mid 1980s, failed to deliver results due to a range of reasons like the inability to generate required thrust and metallurgical failings. It was also true that India’s design and manufacturing capacities were limited. The capacity to manufacture engines is a key attribute of nations with established defence industries.

Patience Pays

Being overlooked for a party ticket is every politician’s nightmare and BJP’s decision to axe several sitting MPs while also asking Rajya Sabha faces to contest has set off a few tremors. But it is remarkable that most of those who have been replaced have not been very vocal in their disappointment. For one, protesting is futile and options of moving to other parties are limited. It has also come home to BJP leaders that patience can pay if a bad moment is allowed to pass. BJP seniors who resigned from the Union Cabinet have been given important party assignments and are back in circulation even if a ministerial berth seems ruled out. The younger faces that entered the Council of Ministers also have their tasks cut out. Many of them will be in the fray and must prove their winnability and utility. The BJP brass is determined to ensure that the mix of candidates, whether at state or national level, is refreshed and legislators do not take their privileges for granted.

AmethiBajrang PuniaEFTA Dealnational politcsRahul GandhiRohit Kumarwrestlers