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Within hours of a series of an- anouncements deepening ties be- tween India and the United States across sectors and reflecting their shared ambitions, Prime Minister Narendra Modi said his visit to the US has resulted in a "great positive trans- formation" and the two countries, despite emerging from different circumstances and his- tory, will together demonstrate that "democracies matter and democracies deliver".
Addressing a joint session of the US Congress where he received a rousing welcome, Modi said ties had deepened like never before: "In the past few years, there have been many advances in Al-Artificial Intelligence. At the same time, there have been even more momentous developments in another Al-America and India."
Govt & Politics
Micron plant in Gujarat may start chip assembly by 2024; next in line; manufacturing (Page no. 8)
(GS Paper 3, Science and Technology)
US chipmaker Micron Technology’s upcoming semiconductor assembly and test facility in Gujarat could start production as early as 2024, and eventually also manufacture chips at the plant, in a major boost to the country’s chip-making ambitions.
A day after Micron announced its investment in its first chip assembly and testing plant in India, Rajeev Chandrasekhar, Minister of State for Electronics and IT, told “In the future, Micron might also start producing memory modules, rather than just its casing, in India”. However, that could take a longer time.
The plant, which will come up at the Sanand Industrial Park in Gujarat, will essentially focus on packaging chips — it will transform wafers into ball grid array integrated circuit packages, memory modules and solid-state drives.
Express Network
To control rising retail prices, govt to sell wheat rice in the open market (Page no. 10)
(GS Paper 3, Economy)
The centre announced sale of 4 lakh metric tonnes (LMT) of wheat and 5 LMT of rice from the central pool in the open market under the Open Market Sale Scheme (Domestic) to check their rising retail prices, which are 5-10 per cent higher than last year.
The Food Corporation of India (FCI) will conduct an e-auction of wheat on June 28 and that of rice on July 5; the tenders will be floated soon, said officials.
Addressing a press conference on Friday, FCI chairman and managing director Ashok Meena said the government has all the “instruments”, including the option of reducing import duty on wheat, which will be used when required.
Modi in America
India joins US-led critical mineral club, boost likely for EV, electronics (Page no. 12)
(GS Paper 2, International Relation)
India has been inducted into the Mineral Security Partnership (MSP), a US-led collaboration of 14 countries that aims to catalyse public and private investment in critical mineral supply chains globally.
The India-US joint statement issued early, reiterating the intention of the two governments “to work together to ensure that our respective markets are well-supplied with the essential critical minerals” and reaffirming a pledge by the two sides “to hasten bilateral collaboration to secure resilient critical minerals supply chains”, welcomed India into the grouping.
The US enthusiastically welcomes India as the newest partner in the MSP, to accelerate the development of diverse and sustainable critical energy minerals supply chains globally while agreeing to the principles of the MSP including environmental, social, and governance standards.
Jump in jet engine tech transfer, plans to procure MQ-9B drones (Page no. 13)
(GS Paper 3, Defence)
A discussion with General Electric (GE) Aerospace, which started in 2012 over transferring 58 per cent technology to India for manufacturing jet engines, eventually took shape, with the former agreeing to transfer 80 per cent of the technology instead after hectic negotiations in the last few years, a top defence official said Friday.
GE Aerospace signed a Memorandum of Understanding (MoU) with Hindustan Aeronautics Limited (HAL) to produce fighter jet engines for the Indian Air Force.
The final deal is expected to be signed soon after approval from the US Congress and finalisation of commercial terms.
After 2014, there were ambitions of getting a higher percentage of technology transfer. Complete technology transfer has been agreed to on certain parameters, which was not agreed to in 2012.
Editorial
Road not taken before (Page no. 14)
(GS Paper 2, International Relation)
The sweeping ambition of the agreements unveiled by Prime Minister Narendra Modi and US President Joe Biden — ranging from advanced technology cooperation to climate change, from moon missions to reformed multilateralism, from the production of a fighter jet engine to investments in semiconductors, and countering terrorism to digital public infrastructure — is breathtaking.
While the extraordinary promise of these agreements needs to be translated into concrete actions in the days ahead, there is no doubt that Modi and Biden have nudged India and the US on a road not travelled before — towards a joint construction of a stable Asian balance of power system.
This new moment in bilateral relations is also a defining one for the evolution of Asian geopolitics, condemned in recent times to inevitable Chinese dominance.
The new India-US defence partnership makes it possible to conceive of an Asia that is not vulnerable to domination by any one power.
Ideas Page
Together, a better future to world, a better world to future (Page no. 15)
(GS Paper 2, International Relation)
It is always a great honour to address the United States Congress. It is an exceptional privilege to do so twice. For this honour, I extend my deepest gratitude on behalf of the 1.4 billion people of India.
Standing here, seven Junes ago, that’s the June when Hamilton swept all the awards, I said that the hesitations of history were behind us.
Now, when our era is at a crossroads, I am here to speak about our calling for this century. Through the long and winding road that we have travelled, we have met the test of friendship.
A lot has changed since I came here seven summers ago. But a lot has remained the same — like our commitment to deepen the friendship between India and the US. In the past few years, there have been many advances in AI, Artificial Intelligence. At the same time, there have been even more momentous developments in another AI — America and India.
Democracy is one of our sacred and shared values. It has evolved over a long time, and taken various forms and systems. Throughout history, however, one thing has been clear. Democracy is the spirit that supports equality and dignity. Democracy is the idea that welcomes debate and discourse.
Democracy is the culture that gives wings to thought and expression. India is blessed to have such values from times immemorial. Millennia ago, our oldest scriptures said, “the truth is one but the wise express it in different ways”.
The US is the oldest and India the largest democracy. Our partnership augurs well for the future of democracy. Together, we shall give a better future to the world, and a better world to the future.
World
Rich nations pledge to unlock billions of dollars for climate fight (Page no. 16)
(GS Paper 3, Climate Change)
Multilateral development banks like the World Bank are expected to find $200 billion in extra firepower for low-income economies by taking on more risk, a move that may require wealthy nations to inject more cash, world leaders said.
The leaders, gathered at a summit in Paris to thrash out funding for the climate transition and post-COVID debt burdens of poor countries, said their plans would secure billions of dollars of matching investment from the private sector.
An overdue pledge of $100 billion in climate finance for developing nations was also now in sight.
Many in attendance, however, said over the two-day summit that the World Bank and the International Monetary Fund were increasingly ill-suited for tackling the most pressing challenges and needed a broad revamp.
We expect an overall increase of $200 billion of MDBs’ lending capacity over the next ten years by optimizing their balance sheets and taking more risks,” the summit’s final statement obtained by Reuters.
If these reforms are implemented, MDBs may need more capital,” it added, recognising in a final summit document for the first time that wealthy nations may have to inject more cash.
Economy
Inflation is holding back consumer spending, private capex: RBI bulletin (Page no. 17)
(GS Paper 3, Economy)
Bringing down inflation and stabilising inflation expectations can revive consumer spending, boost corporate profitability and spur growth in private capital expenditure, the Reserve Bank of India said.
The RBI said the recent national accounts data and corporate results show that inflation is slowing down personal consumption expenditure, which in turn, is moderating corporate sales and holding back private investment in capacity creation.
“Bringing down inflation and stabilising inflation expectations will revive consumer spending, boost corporate revenues and profitability, which is the best incentive for private capex,” RBI said in the ‘State of the Economy’ article, published in the central bank’s June bulletin released.
Explained
The India-US embrace (Page no. 18)
(GS Paper 2, International Relation)
Sitting in the Oval Office at the White House, Prime Minister Narendra Modi on Thursday reminded United States President Joe Biden: “Eight years ago, you said that ‘our goal is to become India’s best friend’. This personal commitment to India is inspiring us to take many bold and ambitious measures.”
“Today India and the US are walking shoulder to shoulder, from the depths of oceans to heights of skies. From ancient culture to artificial intelligence.
Days before this meeting, US Secretary of State Antony Blinken had met China’s President Xi Jinping in Beijing.