Current Affairs

1. CHINA SURPASSES US AS INDIA’S LARGEST TRADING PARTNER –

• According to data released by the Global Trade Research Initiative (GTRI), China has emerged as India’s largest trading partner in the fiscal year 2023-24, with two-way commerce totaling USD 118.4 billion.
• This marks a narrow overtaking of the United States, whose two-way trade with India amounted to $118.3 billion during the same period. The shift reflects a dynamic in bilateral trade relationships, with China reclaiming its position as India’s top trading partner after the US held the position in the preceding two fiscal years.
• Imports from China increased by 3.24% to $101.7 billion, while exports rose by 8.7% to $16.67 billion compared to FY23. From FY19 to FY24, India’s exports to China experienced a slight decline of 0.6%, reaching $16.66 billion.
• Conversely, imports from China surged by 44.7% during the same period, reaching $101.75 billion.
• India primarily imports electrical and electronic equipment, engineering goods, chemicals, plastics, and textiles from China. India’s major exports to China include engineering goods, agricultural products, ores and minerals, chemicals, and petroleum products.
• The trade balance heavily favors China, with the trade deficit expanding from $53.57 billion in FY19 to $85.09 billion in FY24.
• India relies on Chinese imports to meet domestic demand and preferences, contributing to the widening trade deficit. India’s exports mainly consist of primary commodities, while Chinese exports are dominated by machinery, chemicals, and technology.
• India’s pharmaceutical industry heavily depends on China for active pharmaceutical ingredients (APIs), further exacerbating the trade deficit. India’s reliance on critical products from China, such as telecom components and lithium- ion batteries for EVs, contributes to the trade deficit.

 

2. INDIA-IRAN CONTRACT ON CHABAHAR PORT –

• India and Iran signed a 10-year contract for the operation of Chabahar Port.
• The long-term agreement was signed between Indian Ports Global Ltd. (IPGL) and Port and Maritime Organisation (PMO) of Iran, enabling operation of the Shahid-Beheshti terminal.
• The pact replaces one-year contracts that were being signed to keep the port operational until now. India has also offered a credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure.
• Iran’s Chabahar port is located on the Gulf of Oman and is the only oceanic port of the country. It is situated in the city of Chabahar in Sistan and Baluchestan Province. Chabahar has two ports; Shahid Kalantari and Shahid Beheshti.

 

3. CHINA’S THIRD AIRCRAFT CARRIER COMPLETES MAIDEN SEA TRIALS –

• China’s third aircraft carrier, Fujian has successfully completed its eight- day maiden sea trials. Fujian is an 80,000-tonne supercarrier with electromagnetic catapults for launching aircraft.
• Trials focused on propulsion, electrical systems, and other equipment, achieving expected results.
• China is the second country after the US to field a supercarrier with this technology.
• China’s first aircraft carrier Liaoning was commissioned in 2012 and the second carrier Shadong was launched in 2017.
• China announced that it is building its fourth aircraft carrier, likely a nuclear- powered supercarrier.
• The Indian Navy operates two aircraft carriers namely the INS Vikramaditya, a refurbished Russian carrier commissioned in 2013, and the INS Vikrant, an indigenously designed and built carrier commissioned in September 2022.