Download All Test form here :- https://t.

me/testseries4exams

SHUBHRA RANJAN IAS STUDY PVT LTD


your strategic partner in IAS preparation

ONLINE PSIR ANSWER WRITING SKILL DEVELOPMENT AND TEST SERIES 2017


TEST: 17


TOPICS: INDIA AND THE GLOBAL CENTRES OF POWER AND COMPARATIVE

POLITICS (REVISION TEST)

ALL QUESTIONS ARE COMPULSORY


MAX MARKS: 125 MAX TIME: 1.5 HOURS

1. What are the strengths and weaknesses of systems approach to comparative

politics? Why it is treated as ‘status quoist'?

2. What are the strengths and weaknesses of political economy approach? Also,

examine the relevance of political economy approach to the study of comparative

politics.

3. India needs a sound and sustainable policy towards Russia. Suggest measures

in this regard.

4. Discuss the evolution of India- US relations since the election of Trump as

president of USA.

5. Do you think IORA is a credible institution? Is it a talking shop? Can it be a

game changer? Substantiate your views.

6. Analyse Russia's current engagement in South Asia. What are the implications

over India?

7. Do you think Japan is India's natural ally or India-Japan relations are sub set of

India-US relations?

8. Discuss the implications of BREXIT on India.

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

SHUBHRA RANJAN IAS STUDY PVT LTD

your strategic partner in IAS preparation
ONLINE PSIR ANSWER WRITING SKILL DEVELOPMENT AND
TEST SERIES 2017
ANSWER KEY: TEST 17

Question : What are the strengths and weaknesses of systems approach to

comparative politics? Why it is treated as ‘status quoist'?
Answer : Define Comparative Politics
Comparison is one of the oldest form of study of politics. Broadly the goal of comparative politics is to
encompass the major political similarities and differences between countries. The task is to develop
some perspective on the mixture of constants and variability which characterizes the world’s
government and the context in which they operate.

Define system’s approach to comparative politics

Ludwig Von Burtalanffy in journal “Behavioral Science” said the goal of the System’s theory was the
integration of the various sciences, natural and social. The search for a systematic interpretation of
society and polity was continued by David Easton in his application of General Systems Theory to the
study of political systems in his work “Political System”, 1953 ,“A Framework of Political Analysis”, 1965
and “A System’s Analysis of Political Life”, 1965.
Easton identified following attributes of political system like units and boundaries; inputs and outputs;
differentiations within a system and integration within a system. Outcomes emerge from the political
system in the form of binding decisions and policy actions. These decisions and actions are fed back into
the environment by satisfying the demands of some members of the system. They in turn generate
support for the system.

Give its strength & weaknesses

System’s approach gave several applications found in works of Herbert Spino, Karl Deutsch and Morton
Kaplan. They either follow Easton’s conceptual framework or a parallel framework. Other strengths
include having elements like caste, religion, ethnicity, etc as parameters. Interaction in system is
patterned, and not haphazard. System’s approach is problem solving rather than merely descriptive.
System approach is essentially comparative in nature and follows inter-disciplinary approach. It studies
processes, context, environment, etc unlike traditional approach.

However, the System Approach has certain weaknesses as it doesn’t take micro perspective. It takes
macro perspective only explain institutions, and functions within political system. Example: Judiciary.

Thorson argued that persistence of the system is central not only to Easton’s theory but to his
exposition as well. He further argues that Easton’s framework is both mechanistic and artistic at the

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

same time-like a machine which is also alive but lacks operational possibilities.
William Mitchell criticized Easton’s concept of politics as the allocation of values, as leading to
misleading assumptions in theorizing politics.
Traditionalist says that system’s approach is nothing but conceptual framework. It brings complications,
lacks analytical depth, and is too general in nature.
Marxist call it status quoist, and Paul Kress called System's approach empty vision of politics which lacks
substance & projects very artificial nature of working of political system.

Explain why it is treated as ‘status quoist’

Eugene Miller says that Easton was concerned with an intellectual crisis and the imminent washing of
democratic liberalism. In the name of scientific and causal theory, he presented a status-quo oriented
general theory of political system. Easton lost its importance as he opted for the dogma of empiricism.
Other Marxist scholars claim it ‘status quoist’ as it is modelled on functioning of western liberal
democracies, thus trying to depict it as "ideal type". It will lead to other comparing themselves & trying
to be near liberal way. Also, it has no scope for explaining "civil unrest", revolutions, crisis, and other
Constitutional changes which are regular in 3rd world countries. Sometimes it is called ‘status quoist’ as
it takes order & stability in Western countries also for granted.

Conclude on following lines

The merits of the input-output or political system approach cannot be ignored. The approach has
provided an excellent technique for comparative analysis. It has also provided a set of concepts and
categories which have made comparative analysis ignore interesting and instructive.
According to Eugene Meehan, "Easton has produced one of the few comprehensive attempts to lay the
foundation for systems analysis in political science and to provide a general functional theory of
politics."

Question : What are the strengths and weaknesses of political economy

approach? Also, examine the relevance of political economy approach to the
study of comparative politics.
Answer : Define Political Economy Approach
Comparative politics is the study and appraisal of domestic politics across countries. In his “History of
Economic Analysis” Joseph Schumpeter defined political economy as an exposition of a comprehensive
set of economic politics on the strength of certain unifying normative principles.
Adam Smith, also called father of Political Economy approach in his work “Inquiry into the Nature and
Causes of the Wealth of Nations” discussed the major themes of commodity, values, capital, simple and
complex labour.
Marx’s major work “Das Kapital” is subtitled “A Critique of Political Economy” and emphasizes
commodities, money, surplus value, and accumulation of capital creating pillar for studying political
economy approach.

Give its strength & weaknesses

William Roseberry says that Political economy approach goes for combination mathematical technology,

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

quantitative tools, with help of normative theories. The approach involves prescriptive approach, and
has utility in understanding poverty, unemployment, underdevelopment, etc. unlike Structural
Functional approach which just provides conceptual framework. Studies related to political economy
approach provides suggestions.
Hall and Taylor write that Political Economy approach is able to explain how institutions affect
individuals’ preferences or identities; and it provides an explanation how actors choose strategies from
culturally-specific repertoires.

Despite numerous studies proving the effectivity of Political Economy approach, there exists certain
limitations which render its use only upto an extent. Lane Kenworthy says the approach seems
inadequately sensitive to the historical, political, and cultural contexts; As a matter of fact, political
culture scholars argue that the conceptual weakness of rational choice theory can be corrected through
the use of political cultures; political culture when conceptually clear and empirically defined is able to
specify the whole range of human objectives or goals.
William Roseberry writes that despite all the advancements in political economy through Marxism, some
short falls in the approach has led to criticism and alternate views on the interaction between society
and economy. Modes of production on a global scale often created conflicting forces across the
landscape because there is little room for human agency. Rather than serving the analysis of social
groups, mode of production analysis has been criticized as serving its self. Theories of political economy
understand that studying people in terms of capitalist processes often move into a kind of functionalist
reasoning. Political Economy Approach neglects understanding of Constitution, and Political Institutions
by turning its focus to economic aspects of polity. Studies related to the approach uses nomenclature
like North-South countries, Developing- Developed countries, Third world countries which has made
political economy approach biased. The approach is normative, and specialized knowledge is needed for
quantitative techniques utilized by it. Political Economy studies are costly due to sophistication, and due
to such numerous faultlines, it can't give comprehensive understanding of the subject.

Talk about its relevance in study of comparative politics

As Zuckerman and Lichbach indicate, no approach displays rigid and uniform orthodoxy; and they share
an ontological and epistemological symmetry. In order to improve theory in our field we should
embrace creative confrontations and try to absorb the best out of each school of thought.
Political Economy approach contains relevance for studying comparative politics which is displayed in
the numerous advantages the approach carriers. Moreover, recent studies like Immanuel Wallerstein’s
“World System Theory” , Joseph Stiglitz’s "Nature & Impact of Globalization", Rudolph & Rudolph’s
“Green Revolution” which talked about rise of dominant bullock capitalist & strengthening dominant
caste, Atul Kohli who talked of failure of Land Reforms in Hindi Heartland due to Congress domination
which was led by upper class, Hamza Alavi study on “State in Pakistan”

Conclude on following lines

Adam Smith called Political Economy as that science for statesmen which leads to wealth & prosperity.
The approach has now more than four hundred year old history and includes the works of French
Physiocrats, Adam Smith, David Ricardo and Karl Marx, among others which despite limitations have led
to emergence of conclusive findings beneficial for better understanding of politics.

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

Question : India needs a sound and sustainable policy towards Russia. Suggest
measures in this regard.
Answer : Briefly describe India’s relation with Russia
According to Nilova Roy Chaudhury, relations with Russia are a key pillar of India's foreign policy. Under
the special and privileged partnership the two countries share, several institutionalized dialogue
mechanisms operate at both political and official levels to ensure regular interaction and follow up on
cooperation activities. The two countries have established substantial trust and understanding, a
convergent worldview, and a stake in preserving a relationship that few countries can claim to have.
However, the issue of Russia’s increasing ties with Pakistan has the potential to strain bilateral relations.
After the first ever joint military exercises, the first ever foreign office consultations were held between
them in December 2016. Pakistan recently approved Russia’s request to use the strategic Gwadar Port
for its exports which has brought long standing relationship to a downturn.

Suggests measure to have sound & sustainable policy

C Raja Mohan suggests Russian actions would nudge some sort of realism to India atleast. India has been
dealing with Russia with idealism, it must come out of Soviet nostalgia, and India shouldn’t get hurt as
Russia isn't Soviet. For creation of any sound & sustainable policy, two countries should communicate
with each other as China is common threat for both Russia, India.
Ashok Sajjanhar suggests that India-Russia are natural allies and Modi-Putin need to give much greater
personal attention to building and strengthening the India-Russia partnership. This task cannot be
delegated to Foreign Ministers or Foreign Offices. In the current scenario also, it would devolve upon
Modi to take charge of bilateral ties with Russia, as he has done with several other significant partners.
He further adds that there is an urgent need to train and raise a new generation of Indologists in Russia.
Scholars and academics have always played a critical role in promoting cooperation between the two
countries and India's participation in EEU to be encouraged. Russia feels that India is virtually entering
into a military alliance with USA, which will severely restrict Russia's ability to share sophisticated
defence technology such as for India’s nuclear submarine programme with it. India must assure Russians
India’s expanding ties with USA are neither at the expense of Russia nor are they in any way directed
against Russia or detrimental to its interests. Strategically they are designed to provide greater political
space as well as maneuverability for healthy relations with China.

Harsh Pant says that there is attitude problem in both nations, Russia has started looking all
relationships thru prism of zero-sum games whereas problem with India that it fails to accept "new
normal" of India-Russia relationship.

Conclude on following lines

Hence, as Dr. Subhash Kapila points out that whether India goes close to USA or not, Russia will go close
to Pakistan due to its geo-political importance. Russia has previously also supplied weapons to Pak but
India need not look into relationship with sentimentalism, & nostalgia. India needs to remind Russia of
its disintegration due to Pakistan and the fact that there is no other country which has genuine interest

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

in Russian rise with no reason to oppose Russia. Russia needs to take calculated risk, and India need not
worry too much.

Question :Discuss the evolution of India- US relations since the election of

Trump as president of USA.
Answer : Briefly write about India-US relations
India-U.S. bilateral relations have developed into a "global strategic partnership", based on shared
democratic values and increasing convergence of interests on bilateral, regional and global issues. In
words of Ashley Tellis, Indo-US Partnership has reached Plateau and the partnership has been one of the
few areas that have been non-controversial and a bright spot for the USA on the foreign policy front in
recent years. It can be confidently asserted that India-US relations enjoy bipartisan support in the US
Congress and across the board among the US citizens. Starting with Bill Clinton’s visit to India in March,
2000, the state of partnership today is the highest ever between the two countries.

Discuss how things seem to change since election of Trump as President

Since election of President Trump has taken place merely 3 months before, a lot is still to be unfolded on
how relations will proceed. However, till now the signs look varied with multitude of possibilities.
Donald Trump has hence inherited a vigorous and vibrant relationship between India and the USA.

Recent visit of US National Security Advisor Gen McMaster and subsequent meetings with PM Modi,
NSA Doval points toward cordial continuation of Indo-US relationship. The two sides discussed a range
of bilateral and regional issues, including their shared interest in increasing defense and counter-
terrorism cooperation. NSA McMaster emphasized the importance of the US-India strategic relationship
and reaffirmed India’s designation as a Major Defence Partner,” it added while noting that the meetings
were “productive”.

According to a White House statement, Trump emphasised that Washington considers India a “true
friend and partner in addressing challenges around the world.” Both leaders were said to have discussed
opportunities to strengthen their partnership on the economy and defence. Several visits by Foreign
Secretary, National Security Advisor after the coming of new dispensation have reportedly discussed
contentious issues like H1B visa, safety of Indians, and a wide range of bilateral security issues related to
the defence relationship. Recent killings of Indian origin people in America have been flagging concerns
in both the countries, and If Trump acts on his promise of bringing down the corporate tax in the USA
from 35% to 15% & policy of “Buy American, Hire American”, it could encourage and tempt some US
companies currently based in India to relocate to USA. This could have an adverse impact on the Make
in India initiative of the Indian government if some companies leave the country.

As Manoj Joshi writes, a perusal of statements made by Trump during his campaigning would
demonstrate that he did not make any sharply critical comments about India as he did for many other
countries. On the contrary, he by and large made positive and laudatory references to India. He said that
if he got elected, India will have a true friend in the White House. He showered encomiums on Prime

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

Minister Modi saying that he is very energetic and that he (Trump) was looking forward to working with
him.

Conclude on following lines

In conclusion, As Manoj Joshi writes it appears highly likely that in strategic, political, security, defence
and economic terms, relations between India and the USA will continue their upward trajectory under
President Trump. Impact of USA’s relations with Pakistan on India is likely to be beneficial and positive.
As far as implications for India with respect to USA’s evolving relations with China and Russia are
concerned, it will be better to wait for further denouements to unfold. It is too early to speculate how
they will evolve and what ramifications they might entail for India.

Question : Do you think IORA is a credible institution? Is it a talking shop? Can it

be a game changer? Substantiate your views.
Answer : Briefly tell what IORA is
Indian Ocean Rim Association (IORA), is an international organisation consisting of coastal states
bordering the Indian Ocean. The IORA is a regional forum, tripartite in nature, bringing together
representatives of Government, Business and Academia, for promoting co-operation and closer
interaction among them. It is based on the principles of Open Regionalism for strengthening Economic
Cooperation particularly on Trade Facilitation and Investment, Promotion as well as Social Development
of the region.

Address whether IORA can be game changer

C Raja Mohan says that for the pessimists, the IORA is a talking shop that is unlikely to turn the diverse
littoral into a coherent region. Realists will concede that IORA is not yet a credible regional institution.
However, such viewpoints represent oversimplification of futuristic discourse as IORA's existence is a
reminder of the untapped potential of Indian Ocean regionalism. Today, the IORA underlines the
region’s agency in shaping its own future.

C Raja Mohan further adds that IORA can be a game-changer as New Delhi, Canberra seems to reinvest
in Indian Ocean regionalism lately but it's success would depend, to a large extent, upon what the
middle powers of the Indian Ocean littoral, like Indonesia, Australia and India, can do. Together the
three countries have already breathed new life into an organisation that few had heard of. Those who
did had taken IORA for dead. Indian Ocean Rim Association (IORA) celebrated its 20th Anniversary when
Indonesia, as the current Chair of IORA, hosted the first ever IORA Leaders' Summit on 7 March 2017 in
Jakarta under the theme "Strengthening Maritime Cooperation for a Peaceful, Stable, and Prosperous
Indian Ocean". In a historic first, the Summit brought together the Leaders of the 21 IORA Member
States and its 7 Dialogue Partners as well as other special invitees including the Republic of the Union of
Myanmar. Member States issued the Jakarta Concord - Promoting Regional Cooperation for a Peaceful,
Stable and Prosperous Indian Ocean - which sets out a vision for a revitalized and sustainable regional
architecture.

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

Conclude on following lines

However, IORA has a challenging task ahead. The ideas of regional and global integration that held sway
since the turn of the 1990s has taken some beating amidst the resurgence of the dark forces of de-
globalisation in the West. While Indonesia, Australia and other middle powers are important players in
the Indian Ocean, their regionalist priorities are elsewhere. As the largest economy and biggest military
power, it is largely up to India to shape the future of Indian Ocean regionalism.

Question : Analyze Russia's current engagement in South Asia. What are

the implications over India?
Answer : Write about Russia-India engagement
American scholar Lavina Lee says India-Russia story is one of consistent engagement from the late
1960s, which over time has resulted in a relationship based on a deep level of trust unsurpassed in their
relations with any other state. Despite the end of the Cold War, Indian-Russian relations have, if
anything deepened in many sectors. Traditionally, the Indo-Russian strategic partnership has been built
on five major components: politics, defence, civil nuclear energy, anti-terrorism co-operation and space.
Russian PM Dmitry Medvedev says that India-Russia mutual ties of friendship are filled with sympathy,
and trust, and openness.

Briefly talk about Russia’s current engagement in South Asia

According to Harsh V Pant, there seems to be a reversal in Russia’s South Asia policy, with New Delhi
and Moscow drifting apart. Russia is looking the region through the prism of its larger geopolitical
struggle with the West and seems ready to join the China-Pakistan axis. Harsh Pant adds that China
seems found a new ally in Russia, which is keen to join with China, even as a junior partner, to scuttle
Western interests. Jettisoning its traditional antipathy to the Taliban, Russia is now indicating that it is
ready to negotiate with the militant group against the backdrop of the growing threat of the Islamic
State (ISIS) in Afghanistan. Pakistan has emerged an important player in this context, where China and
Russia are now converging to challenge a number of Western objectives. Moscow and Islamabad held
their first-ever joint military exercise in September 2016 and their first-ever bilateral consultation on
regional issues in December. In September 2016, China and Russia conducted joint naval exercises in the
South China Sea, where China has grandiose territorial claims.

Analyze Russia’s current engagement

Vinay Kaura writes that Russia's diplomatic efforts to accommodate the Taliban as an instrument against
the ISIS, in tandem with Pakistan and China, may also have unexpected ramifications for Indo-Russian
ties. The Indian leadership, both publicly and behind diplomatic corridors, has been trying to convince
Russia that Pakistan is the fountainhead of terrorism in the region. But India's traditional ally Russia
seems not convinced.
Moscow's diplomatic outreach toward the Taliban has provided legitimacy to the Taliban insurgency and
frustrated the efforts of the Afghan government to militarily defeat the Taliban.
Moreover, after initially denying Pakistani media reports that Russia would join the China-Pakistan
Economic Corridor (CPEC) and acquire access to the Gwadar port, Russia's ambassador to Pakistan has

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

now clarified that Moscow and Islamabad have held discussions to merge the China-backed CPEC with
Russia-backed Eurasian Economic Union.

Although Russia continues to insist that its ties with Pakistan will not come at the cost of its ties with
India, Moscow's tilt towards Islamabad has certainly injected growing uncertainty in the direction of the
India-Russia relationship.

Tell about their implications over India

Vinay Kaura adds that Russia's engagement with the Taliban, its military cooperation with Pakistan and
possible support for the CPEC have the potential to harm India's vital strategic interests. Even as Russia
is more worried about the ISIS than about losing India's friendship, Pakistani policymakers are making
all-out efforts to be seen as acting in Russian interests. Islamabad does not want to miss the historic
opportunity of exploiting Russia's sense of vulnerability arising from the ISIS threat. Russia's major
strategic partners in the region Iran and China have also increased their engagement with the Taliban.
Strategically, these circumstances have put Pakistan in a more advantageous position than India.

After officially lifting an arms embargo against Pakistan in 2014, Pakistan’s military will be receiving four
Russian-made Mi-35M attack helicopters this year. This could bring concerns in India regarding this new
found love between Moscow and Islamabad.
India’s policy vis-à-vis Afghanistan will also have to evolve with these changing ground realities. New
Delhi has been demanding dismantling of safe havens and terror sanctuaries in the region, besides
pressing for deeper engagement of various stakeholders for Kabul’s stability and security.

Conclude on following lines

Although there may be uneasy times ahead for India's relationship with Russia, the Indian diplomacy will
have to be both dynamic and imaginative to secure New Delhi's security interests in Afghanistan.
As Harsh Pant says that with a pro-Russia Donald Trump assuming office in Washington, New Delhi will
be hoping that a rapprochement between the U.S. and Russia might realign Indian and Russian priorities
on Afghanistan. How India addresses this challenge will in all likelihood determine the final size of India’s
footprint in its neighborhood.

Question : Do you think Japan is India's natural ally or India-Japan relations are
sub set of India-US relations?
Answer : Define India’s relations with Japan
Former Foreign Secretary Kanwal Sibbal defines Indo-Japanese partnership passing through "cherry
blossom" times. Former Prime Minister Manmohan Singh, used the label “transformational” to describe
India’s relations with only two countries – the US and Japan, and the relationship with both these
countries have been phenomenally becoming the pillar of New Delhi’s Foreign policy.

Explain why India-Japan relations are said to be sub-set of India-US relations

Manoj Joshi says that relations with Japan are a subset of ties with the US, and again, serve mutual
needs—India wants Japanese investment and technology, while Tokyo seeks India’s participation in the
East Asian coalition. He adds that India-Japan relations thrive not because we have an identity of

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

interests, but a congruence of needs that the other can fulfill. India needs the world’s foremost military
power to maintain a balance against China, while the US needs India because it is the only credible
partner it has in building a coalition in East Asia including Japan to confront China. This makes India-US-
Japan a formidable alliance where India-Japan relations are pursued as per the entire scheme of East
Asian security balance theme.

Explain why Japan is India’s natural ally

However, Japan as India’s natural ally is rather true till a large extent as Shyam Saran says that friendship
between India and Japan has a long history rooted in spiritual affinity and strong cultural and
civilizational ties. The modern nation states have carried on the positive legacy of the old association
which has been strengthened by shared values of belief in democracy, individual freedom and the rule
of law. Over the years, the two countries have built upon these values and created a partnership based
on both principle and pragmatism. Today, India is the largest democracy in Asia and Japan the most
prosperous. Moreover, India’s growing strategic alignment with USA, and ambivalence with Chinese
have cemented partnership with Japan further.

In 2007, Abe wrote it would “not be a surprise if in another decade, Japan-India relations overtake
Japan-US and Japan-China ties”. Abe wants Japan to become a “normal” country in diplomacy and
defence which makes him aligned towards partnership with India. When PM Modi went to Japan last
year, this two-way domestic tie-up was tightened with Tokyo agreeing to help his flagship projects such
as Digital India and Skill India. Japan through successes such as the Delhi Metro and Maruti Suzuki, has
helped India expand its mindset. Recent Nuclear deal of Japan with India despite being Non-NPT
signatory was a marked exception from Japanese principle position and prove that relationship with
India is no more a mere sub-set of India-USA relationship.

Hence, India and Japan are creating a “Special Strategic and Global Partnership”, even as the Sino-Indian
“Strategic and Cooperative Partnership for Peace and Prosperity,” deepens.

Conclude on following lines

Harsh Pant says the relationship between India and Japan is perhaps the best it has ever been, largely
because both countries have Prime Ministers who view the region and the world in very similar terms.
Abe, a long standing admirer of India, has been a strong advocate of strategic ties between New Delhi
and Tokyo. He was one of the first Asian leaders to envision a “broader Asia”, linking the Pacific and
Indian Oceans to form the Indo-Pacific. And as he has gone about reconstituting Japan’s role as a
security provider in the region and beyond, India seems most willing to acknowledge Tokyo’s centrality
in shaping the evolving security architecture in the Indo-Pacific which reflect relations to be
independently managed as per India’s National Interest.

Question : Discuss the implications of BREXIT on India.

Answer : Define Brexit
Brexit is a commonly used term for the United Kingdom's planned withdrawal from the European Union.

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

Brexit took place on 23 June 2016 in the United Kingdom (UK) and Gibraltar to gauge support for the
country either remaining a member of, or leaving, the European Union (EU). The referendum resulted in
51.9% of voters voting in favour of leaving the EU.

While capital markets across the globe were quick to react and bounce back, long-term ramifications of
this verdict on geopolitics and geo-economics will unfold in the months to come. The decision certainly
does not bode well for the world economy that is still grappling in the clutches of recession and
austerity. However, this verdict may have positive implications for India, especially in economic and
trade ties, according to experts.

Give positive implications for India

Brexit could potentially open up new trading opportunities with Britain and EU. With Britain freed of
strict EU regulations, one can only hope that it will be easier for India to engage in business with the
fifth-largest economy in the world.

Moreover, now is the time for India to enter into an FTA with the UK. A depreciating pound also means
cheaper British imports into India, especially in the field of food, technology, fine liquor and capital
machinery. Also, in the longer run, Brexit could help strengthen India-UK economic relationship as the
UK seeks to compensate for loss of preferential access to EU markets.

Give negative implications for India

The immediate, short-term effect must be negative, with its severity depending on the extent to which
the major economies in Europe are affected. If Brexit results in a sharp contraction in these economies,
then their demand for Indian exports will shrink. This process will be faster for those Indian companies
which compete with British manufacturers in European markets since the British companies can no
longer treat continental Europe as a “home market” in so far as import taxes are concerned.
Moreover, the devaluation of the pound implies that imports will be costlier in Britain and this will be
another source of decrease in imports over and above that caused by a shrinking economy. Since Britain
is an important destination for Indian exporters, this will also have a non-negligible impact on Indian
exports. Indian firms which use Britain as a base for their European operations will now experience an
increase in trading costs since they will face increased tariff barriers once Britain formally leaves the EU.

Brexit may have the potential to affect immigration negatively, through "work and study routes" from
non-EU nations, as the nation has done in a move expected to make it difficult for British firms to hire
professionals from countries like India. The most worrying issue is that this exit might prompt other
nations to go ahead with shifting the power back to national governments in areas like immigration,
while maintaining the trading union.
Impact of Brexit on higher education opportunities for Indian students appears beneficial. A cheaper
pound will benefit Indian students seeking education in the UK.

Conclude on following lines

Following the 2016 referendum vote to leave, the UK government started the withdrawal process on 29
March 2017 invoking Article 50 of Lisbon Treaty, putting the UK on course to leave by April 2019. These
stormy developments in Europe should be a wake-up call for India to fine-tune its negotiating strategy

https://t.me/pdf4exams https://t.me/pdf4exams
 Download All Test form here :- https://t.me/testseries4exams

with Brussels now, and the UK in future.

Situation of the Indian economy is also such that it is calibrating and making assessment of the situation.
India is resilient to any financial shocks that may arise due to a credit crunch in the global market. With
comfortable foreign exchange reserves, inflation coming down and structural reforms on path, India will
be able to deal with all eventualities, as it did after stocks markets and rupee dropped on results from
UK referendum on EU membership showed the “leave” camp doing better.

Hence, as C Raja Mohan says New Delhi must immediately signal strong solidarity with Britain and
Europe, both of whom are likely to be weakened in the near term. Finding ways to rejuvenate the
economic and political ties to both should now be at the top of India’s diplomatic agenda.

https://t.me/pdf4exams https://t.me/pdf4exams