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Year: 2024
Navi Mumbai Cyber Yodha: By the People, For the People
Signing of MOU with CP Shri Milind Bharambe IPS, Jt CP Shri Yenpure IPS, Addl CP (Crime) Shri Deepak Sakore IPS, and Navi Mumbai Cyber Yodha team members
During the pandemic in 2020-21, when we were all forced to go online, digital transactions surged significantly, including the transition to remote work. We are now experiencing what can be termed a “SCAMDEMIC,” negatively impacting all segments of society.
Citizens are being defrauded due to greed, fear, and a lack of awareness about cybersecurity. Regular education on cyber hygiene, explained in simple terms, is crucial at this time.
To implement effective preventive measures, a group of industry professionals dedicated to raising cybersecurity awareness among the citizens of Navi Mumbai came together in September 2021. They informally established the Navi Mumbai Cyber Yodha (NMCY) to promote cybersecurity awareness, especially for the elderly, educational institutions, and to assist the Navi Mumbai Police with various technical challenges and training, all on a pro bono basis.
The group currently consists of 15 Information Technology and Cyber Security experts who permanently reside in Navi Mumbai.
The NMCY gained further strength when Sh. Ahmad Javed, IPS (Retd), former Commissioner of Police for Navi Mumbai and Mumbai, and former Ambassador of India to Saudi Arabia, agreed to join us as the Chief Mentor.
In February 2024, several NMCY members met with the Navi Mumbai Commissioner of Police, Shri Milind Bharambe, IPS, who is known to be tech-savvy. After an extensive discussion, it was decided that both groups would collaborate in a structured manner with a defined scope of work. A Memorandum of Association (MoA) was signed between NMCY and the Navi Mumbai Police Commissionerate to ensure continued collaboration despite potential transfers of senior police officers.
Navi Mumbai Cyber Youth (NMCY) was officially launched in June 2024 through an internal Memorandum of Understanding (MoU). On August 14, 2024, a formal MoU was signed with the Navi Mumbai Police Commissionerate.
Since then, NMCY has closely collaborated with Shri Milind Bharambe, IPS, the Commissioner of Police, and his team, including Senior Inspector Shri Gajanan Kadam, head of the Navi Mumbai Cyber Crime Police Station. Their efforts began in March and focus on several key areas:
- Cybersecurity Advisory and Consultancy: Providing guidance to the Navi Mumbai Police Department regarding cybersecurity issues.
- Training: Offering workshops, seminars, and training sessions aimed at enhancing the skills of police officers.
- Awareness Campaigns: Educating residents of Navi Mumbai—especially citizens, students, and senior citizens—about the importance of cybersecurity and best practices for protecting against cyber threats.
- Collaboration: Building a network of cybersecurity professionals to share knowledge, collaborate on security initiatives, and address cybersecurity challenges.
- Cyber Hygiene: Encouraging good cyber habits to prevent common security breaches and attacks.
In collaboration with CDAC Kharghar and Pune, a two-day training session on drones, antidrones, and awareness of DGCA rules was organised for the Navi Mumbai Police.
To promote cyber awareness, a WhatsApp channel was launched on August 14, 2024, by the Navi Mumbai Police. NMCY is contributing to content creation alongside CDAC and other digital marketing organisations, ensuring that cybersecurity information is available in regional languages for citizens.
Cyber awareness sessions are being planned for Cooperative Housing Societies throughout Navi Mumbai. NMCY, in partnership with the Cyber Crime Police Station, has also started hosting sessions via the Navi Mumbai Police Facebook Live Utility on weekends—either Friday or Saturday evenings at 8 PM. Recordings of these sessions will be made available for future viewing.
NMCY is currently accepting a limited number of interns from colleges in Navi Mumbai.
Future Plans (To assist in):
Introducing blockchain or another mechanism as additional security for the Evidence Management System.
Implementing a Drone Training and Research & Development Centre in Navi Mumbai.
Establishing a basic standalone Cyber Forensic Lab for the Commissionerate.
The Dark Web: A Whole New World! -Ivor Vaz
The dark web is a small, less accessible part of the deep web, and makes up a tiny portion of the World Wide Web. To access the dark web, users need to install a private browser like Tor, use a Virtual Private Network (VPN), and use search engines designed to find hidden sites. And since users cannot be tracked or monitored, the dark web is often used for illegal purposes.
“There’s a compounding and unravelling chaos that is perpetually in motion in the dark web’s toxic underbelly,” says James Scott, Senior Fellow, Institute for Critical Infrastructure Technology.
The dark web refers to a hidden part of the internet not indexed by regular search engines and requires specialised browsers like Tor to access. It hosts both legal and illegal activities, offering anonymity but also posing risks like scams and illicit content.
The Internet is vast, comprising millions of web pages, databases, and servers that operate 24 hours a day. However, the portion known as the ‘visible’ Internet—also referred to as the surface web or open web— consists of sites that can be accessed through search engines like Google and Yahoo. This represents only the tip of the iceberg.
There are several terms surrounding the non-visible Web, but it is worth knowing how they differ if you are planning to browse off the beaten path.
The Surface Web or Open Web
The open web, or surface web, is the visible surface layer. If we continue to visualise the entire web like an iceberg, the open web would be the top portion above the water. From a statistical standpoint, this collective of websites and data make up under 5% of the total internet.
All commonly public-facing websites accessed via traditional browsers like Google Chrome, Internet Explorer, and Firefox are contained here. Websites are usually labelled with registry operators like ‘.com’ and ‘.org’ and can be easily located with popular search engines.
Locating surface web websites is possible because search engines can index the web via visible links (a process called ‘crawling’ due to the search engine travelling the web like a spider).
The Deep Web
The deep web lies beneath the surface web and makes up approximately 90% of all websites. It can be compared to an iceberg, with the bulk hidden below the water’s surface and much larger than what is visible above. This hidden web is so vast that it’s impossible to determine exactly how many pages or websites are active at any given moment.
Carrying on with the analogy, big search engines could be considered
like fishing boats that can only ‘catch’ websites close to the surface. Everything else, from academic journals to private databases and more illicit content, is out of reach. This deep web also includes the portion that we know as the dark web.
While many news outlets use ‘deep web’ and ‘dark web’ interchangeably, much of the deep portion is perfectly legal and safe. Some of the largest parts of the deep web include:
- Databases: Public and privately protected file collections that are not connected to other areas of the web, only to be searched within the database itself.
- Intranets: Internal networks for enterprises, governments, and educational facilities used to communicate and control aspects privately within their organisations.
If you are wondering how to access the deep web, chances are you already use it daily. The term ‘deep web’ refers to all web pages that are unidentifiable by search engines. Deep websites may be concealed behind passwords or other security walls, while others tell search engines not to ‘crawl’ them. Without visible links, these pages are hidden for various reasons.
On the larger deep web, its hidden content is generally cleaner and safer. Everything from blog posts in-review and pending web page redesigns, to the pages you access when you bank online, are part of the deep web. Furthermore, these pose no threat to your computer or safety at large. Most of these pages are kept hidden from the open web to protect user information and privacy, such as:
- Financial accounts like banking and retirement
- E-mail and social messaging accounts
- Private enterprise databases
- HIPPA sensitive information like medical documentation
- Legal files
Exploring the deep web can present significant dangers. However, for some users, certain areas of the deep web provide a means to bypass local restrictions and access television or movie services that may not be available in their region. Others go somewhat deeper to download pirated music or steal movies that are not yet in theatres.
At the dark end of the web, you will find the more hazardous content and activity. Tor websites are located at this far end of the deep web, which are deemed the ‘dark web’ and are only accessible by an anonymous browser.
Deep web safety is more relevant to the average internet user than dark web safety, as you could end up in dangerous areas by accident: many portions of the deep web can still be accessed in normal internet browsers. This is how users can travel through enough tangential pathways and end up on a piracy site, a politically radical forum, or viewing disturbingly violent content.
The Dark Web
The dark web refers to sites that are not indexed and only accessible via specialised web browsers. Significantly smaller than the tiny surface web, the dark web is considered a part of the deep web. Using our ocean and iceberg visual, the dark web would be the bottom tip of the submerged iceberg.
The dark web, however, is a very concealed portion of the deep web that few will ever interact with or even see. In other words, the deep web covers everything under the surface that is still accessible with the right software, including the dark web.
Breaking down the construction of the dark web reveals a few key layers that make it an anonymous haven:
- No webpage indexing by surface web search engines. Google and other popular search tools cannot discover or display results for pages within the dark web.
- Virtual traffic tunnels via a randomised network infrastructure.
- Inaccessible by traditional browsers due to its unique registry operator. Also, it is further hidden by various network security measures like firewalls and encryption.
The reputation of the dark web has often been linked to criminal intent or illegal content, and ‘trading’ sites where users can purchase illicit goods or services. However, legal parties have made use of this framework as well.
When it comes to dark web safety, deep web dangers are very different from dark web dangers. Illegal cyber activity cannot necessarily be stumbled upon easily but tends to be much more extreme and threatening if you do seek it out. Before we unpack the dark web’s threats, let us explore how and why users access these sites.
How to Access the Dark Web
The dark web was once the province of hackers, law enforcement officers, and cybercriminals. However, new technology like encryption and the anonymisation browser software, Tor, now makes it possible for anyone to dive dark if they are interested.
Tor (The Onion Routing) network browser allows users to access websites with the ‘Onion’ domain. This browser is a service originally developed in the latter part of the 1990s by the United States Naval Research Laboratory.
Understanding that the nature of the internet meant a lack of privacy, an early version of Tor was created to hide spy communications. Eventually, the framework was repurposed and has since been made public in the form of the browser we know today. Anyone can download it free of charge.
Think of Tor as a web browser like Google Chrome or Firefox. Notably, instead of taking the most direct route between your computer and the deep parts of the web, the Tor browser uses a random path of encrypted servers known as nodes. This allows users to connect to the deep web without fear of their actions being tracked or their browser history being exposed.
Sites on the deep web also use Tor (or similar software such as I2P, the ‘Invisible Internet Project’) to remain anonymous, meaning you will not be able to find out who is running them or where they’re being hosted.
Is it illegal to go on the dark web?
In simple terms, it is not illegal to access the dark web. Some uses are perfectly legal and support the value of the dark web. On the dark web, users can seek out three clear benefits from its use:
- User anonymity
- Virtually untraceable services and sites
- Ability to take illegal actions for both users and providers
As such, the dark web has attracted many parties who would otherwise be endangered by revealing their identities online. Abuse and persecution victims, whistleblowers, and political dissidents have been frequent users of these hidden sites. But of course, these benefits can be easily extended to those who want to act outside the constraints of laws in other explicitly illegal ways.
When viewed through this lens, the dark web’s legality is based on how you as a user engage with it. You might fall to the wayside of legal lines for many reasons that are important for the protection of freedom. Others may act in ways that are illegal for the protection and safety of others. Let us unpack these concepts of the ‘dark web browser’ and the websites themselves.
Is ‘Tor’ Illegal to Use?
On the software end, Tor and other anonymised browsers are not strictly illegal. These supposedly dark web browsers are not tethered exclusively to this portion of the internet. Many users now leverage Tor to browse the public Internet and the deeper parts of the web privately.
The privacy offered by the Tor browser is important in the current digital age. Corporations and governing bodies alike currently participate in unauthorised surveillance of online activity. Some do not want government agencies or Internet Service Providers (ISPs) to know what they are looking at online, while others have little choice. Users in countries with strict access and user laws are often prevented from accessing even public sites unless they use Tor clients and virtual private networks (VPNs).
However, you can still take illegal actions within Tor that could incriminate you regardless of the browser’s legality. You could easily use Tor in an attempt to pirate copyrighted content from the deep web, share illegal pornography, or engage in cyber terrorism. Using a legal browser will not make your actions fall to the right side of the law.
Are Sites on the Dark Web Illegal to Use and Visit?
On the network end, the dark web is a bit more of a grey area. The use of the dark web usually means that you are attempting to engage in an activity that you could not otherwise carry out in the public eye.
Government critics and outspoken advocates fear backlash if their real identities are discovered. Those who have endured harm at the hands of others may not want their attackers to discover their conversations about the event. If an activity is deemed illegal by the governing bodies you fall under, it would be unlawful.
While anonymity has its benefits, it also has a darker side. Criminals and malicious hackers often prefer to operate in secrecy. For instance, cyberattacks and trafficking are activities that those involved know are illegal and could lead to severe consequences. Consequently, they turn to the dark web to conceal their actions.
Browsing the dark web is not illegal, but it can pose certain risks. While not illegal, there are many areas on the dark web where unsavoury activities take place, which can expose inexperienced users to unnecessary dangers. It is important to exercise caution or have the knowledge and skills necessary to navigate its threats. So, what are the primary uses of the dark web when it comes to illegal activities?
Types of Threats on the Dark Web
If you are considering using the dark web for basic privacy purposes, you might still question: Is the dark web dangerous to use?
Unfortunately, it can be a dangerous place to be. Below are some common threats you may face during your browsing experiences:
Malicious Software
Malicious software — i.e. malware — is fully alive all across the dark web. It is often offered in some portals to give threat actors the tools for cyber attacks. However, it also lingers all across the dark web to infect unsuspecting users just like it does on the rest of the web.
The dark web does not carry as many social contracts that website providers follow to protect users on the rest of the web. As such, users can find themselves regularly exposed to some types of malware like:
- Keyloggers
- Botnet malware
- Ransomware
- Phishing malware
If you choose to pursue exploring any sites on the dark web, you put yourself at risk of being singled out and targeted for hacks and more. Most malware infections can be caught by your endpoint security programmes.
The threats of online browsing can extend into the unplugged world if your computer or network connection can be exploited. Anonymity is powerful with Tor and the framework of the dark web, but it is not infallible. Any online activity can carry breadcrumbs to your identity if someone digs far enough.
Government Monitoring
With many Tor-based sites being overtaken by police authorities across the globe, there is a clear danger of becoming a government target for simply visiting a dark website.
Illegal drug marketplaces like the Silk Road have been hijacked for police surveillance in the past. Utilising custom software to infiltrate and analyse activity has allowed law officials to discover the user identities of patrons and bystanders alike. Even if you never make a purchase, you could be watched and incriminate yourself for other activities later in life.
Infiltrations can put you at risk of monitoring for other types of activity as well. Evading government restrictions to explore new political ideologies can be an imprisonable offence in some countries. China uses what is known as the ‘Great Firewall’ to limit access to popular sites for this exact reason. The risk of being a visitor to this content could lead to being placed on a watchlist or immediate targeting for a jail sentence.
Scams
Some alleged services like professional hitmen may be scams designed to profit from willing customers. Reports have suggested the dark web offers many illegal services – from paid assassinations to trafficking for sex and weapons.
Some of these are well-known, established threats that circulate in this nook of the web. However, others may take advantage of the dark web’s reputation to trick users out of large sums of money. Also, some users on the dark web may attempt phishing scams to steal your identity or personal information for extortion.
End-user Protection Against Exploitation by the Dark Web
Regardless of being a business, parent, or any other web user, you ought to take precautions to keep your information and private life off the dark web.
Identity theft monitoring is critical to keep your private information from being misused. All types of personal data can be distributed online for a profit. Passwords, physical addresses, bank account numbers, and social security numbers circulate on the dark web. You may already be aware that malicious actors can use these to harm your credit, engage in financial theft, and breach your other online accounts. Leaks of personal data can also damage your reputation via social fraud.
Antimalware and antivirus protections are equally crucial to prevent malicious actors from exploiting you. The dark web is filled with information theft from malware-infected users. Attackers can use tools like keyloggers to gather your data, and they can infiltrate your system on any part of the web. Endpoint security programmes like Kaspersky Security Cloud are comprehensive to cover both identity monitoring and antivirus defences.
How to Access the Dark Web Safely
If you have a legitimate or viable need to access the dark web, you will want to ensure you stay safe if you decide to use it.
Seven Tips for Safe Access to the Dark Web
- Trust your intuition. To avoid being scammed, you will want to protect yourself with smart behaviour on the web. Not everyone is who they seem. Staying safe requires being careful who you talk to and where you visit. You should always take action to remove yourself from a situation if something does not feel right.
- Detach your online persona from real life. Your username, email address, real name, password, and credit card should never be used anywhere else in your life. Create brand-new throwaway accounts and identifiers for yourself if necessary. Acquire prepaid, unidentifiable debit cards before making any purchases. Do not use anything that could be used to identify you — whether online or in real life.
- Employ active monitoring of identity and financial theft. Many online security services now offer identity protection for your safety. Be sure to use these tools if they are available.
- Explicitly avoid dark web file downloads. Fear of malware infection is significantly higher in the lawless territory of the dark web. Real-time file scanning from an antivirus programme can help you check incoming files in case you download them.
- Disable ActiveX and Java in any available network settings. These frameworks are notorious for being probed and exploited by malicious parties. Since you are travelling through a network filled with said threats, you will want to avoid this risk.
- Use a secondary non-admin local user account for all daily activities. The native account on most computers will have full administrative permissions by default. Most malware must take advantage of this to execute its functions. As such, you can slow or halt exploitation by limiting the account to strict privileges.
- Always restrict access to your Tor-enabled device. Protect your children or other family members so they are not at risk of stumbling across something no one should see. Visit the deep web if you are interested, but do not let kids anywhere near it.
An In-Depth Guide About The Dark Web
The dark web includes websites not indexed by search engines, allowing for potential anonymity. The dark web is not the same thing as the deep web. Frankly, the dark web is only a tiny fraction of the deep web, which contains mostly benign sites, such as password-protected E-mail accounts, certain parts of paid subscription services like Netflix, and sites accessible only through online forms. Both are highly effective sources of mass media.
The identities of dark web site visitors are hidden by anonymising software on their computers, which dark web networks require for access. Each dark web site URL ends with a domain-name extension associated with the software necessary for its use (e.g., ‘.onion’ for The Onion Router ‘Tor’ network). While all software used to enter the dark web operates differently, the common principle is that encrypted data is rerouted through the computers of other users running the same programme, thereby disguising the data’s origin and destination.
The earliest form of the modern dark web arose in March 2000 when Irish student Ian Clarke developed and released Freenet, which offers anonymous online communication via a decentralised network of Freenet’s users. However, the software that popularised the dark web is The Onion Router (Tor), which launched on September 20, 2002. The Naval Research Laboratory of the U.S. government created Tor for members of the intelligence community to use the Internet without the risk of being identified. To prevent this anonymising software from being restricted to a single intelligence agency, the U.S. government made Tor open source in 2004. Since then, it has funded the software’s maintenance through a nonprofit organisation known as the Tor Project.
As anticipated, the Tor anonymous network gained popularity among computer enthusiasts, privacy advocates, journalists, dissidents from repressive governments, and others seeking strict secrecy. At the same time, Tor became an effective shield for the illicit sale of heavily controlled goods, such as guns and drugs. The Tor network also gave hackers, terrorists, and distributors of illegal pornography a secure method of communication. The term dark web first appeared in print in a 2009 newspaper article describing these criminal applications.
The rise of cryptocurrency, particularly Bitcoin, significantly increased the dark web’s use in illegal trade. Users could exchange funds online without sharing credit card numbers or other identifying information. In February 2011, Ross Ulbricht founded what is believed to be the dark web’s first black market, Silk Road. The U.S. Federal Bureau of Investigation (FBI) arrested Ulbricht in October 2013, but many larger imitators continue to emerge.
In addition to traditionally forbidden trade, the dark web became a hub for the sale of stolen information. Credit card and social security numbers are routinely purchased, as are passwords for E-mail accounts—sometimes en masse. In March 2012, Russian hacker Yevgeniy Nikulin and three accomplices stole passwords for 117 million E-mail addresses from the social media company LinkedIn and then offered the data for sale on the dark web. In July 2016, passwords for roughly 200 million Yahoo! accounts appeared for sale.
Not all mass data thefts facilitated by the dark web have been motivated by money. In 2013, US National Security Agency (NSA) contractor Edward Snowden, who was concerned about the extent of government surveillance, used Tor to coordinate with journalists on leaking 1.5 million classified government documents. The publicising of Snowden’s actions led to a global spike of interest in Tor, resulting in rapid expansion of the network’s user base.
Cyber Crimes Offences and Penalties in India – N Chandra Shekar
Cybercrime Offences and Penalties in India
Each year, the number of reported cybercrimes across the country continues to rise significantly. One of the biggest challenges in combating cybercrime in India has been the lack of awareness regarding cybersecurity practices. Even when crimes are reported to the authorities, the existing infrastructure and processes for addressing such cases are often inefficient. India has only recently begun to establish a comprehensive cybersecurity framework to protect its large internet user base, which is the second largest in the world.
In 2018, the Ministry of Home Affairs in India established the Indian Cyber Crime Coordination Centre (I4C) as a framework to combat cybercrime. Subsequently, in 2019, the government launched the National Cybercrime Reporting Portal (NCRP) under the I4C initiative.
Cybercrime is defined as any illegal activity that involves a computer, network, or electronic device. With the increasing digitisation of the world, cybercrimes have become very common. Most of these crimes aim to cause financial, reputational, or active harm through illicit electronic means. While strict laws and penalties exist to punish cybercriminals and protect internet users, it is equally important for internet users to be more vigilant in order to prevent many cybercrimes.
Some common types of cybercrimes include:
Hacking: Unauthorised access to a computer or network with the intent to cause harm. Hackers may steal data, install malware, or disrupt systems.
Data Theft:
Stealing sensitive information such as usernames, passwords, financial details, and trade secrets from computers or networks.
Identity Theft:
Misusing a person’s private information, including name, date of birth, address, and credit card details, to commit fraudulent activities.
Cyberstalking:
Using electronic devices or the internet to stalk or harass someone, which can include intimidating emails, text messages, or posts. Phishing and Fraud: Deceiving people into divulging sensitive information, such as bank details or passwords, through emails, texts, or fraudulent websites.
Spreading Malware:
Intentionally distributing viruses, worms, and Trojan horses to damage computers, networks, or steal data. Denial of Service Attacks: Overloading servers or networks to disrupt online services for legitimate users.
Posting Illegal Content:
Uploading or sharing obscene, defamatory, or hateful material online, which is prohibited under Indian laws.
Cyber Terrorism:
Using cyber means to threaten national security, incite public unrest, or spread terror.
Cybercrime is on the rise in India as more individuals and businesses move online. To combat this issue, the Government has implemented strict laws and penalties for cybercriminals. The key piece of legislation is the Information Technology Act of 2000, which defines various cybercrimes and establishes penalties.
In India, the legal framework for addressing cybercrimes is primarily outlined in several important laws and regulations.
Overview of the Main Legal Provisions
Information Technology Act, 2000 (IT Act) Section 66:
Addresses computer related offences, including hacking, identity theft, and data theft. It provides penalties for unauthorised access to and destruction of data.
Section 66A:
Previously addressed cyber offences related to sending offensive messages through communication services, among others. However, it was struck down by the Supreme Court in 2015 for being unconstitutional. The IT Act still covers various cybercrimes under other sections.
Section 67:
Deals with the publication or transmission of obscene material in electronic form, imposing penalties for the dissemination of pornographic content.
Section 69:
Grants the government the authority to intercept, monitor, or decrypt information under certain circumstances.
Section 72:
Addresses breaches of confidentiality and privacy, making it an offence to disclose information acquired during employment without consent. Indian Penal Code, 1860 (IPC)
Section 384:
Covers extortion, including online extortion and threats made through digital platforms.
Section 420:
Addresses cheating and fraud, encompassing online scams and fraudulent activities.
Section 469:
Pertains to forgery and falsification of electronic documents.
Section 471:
Involves the use of forged documents, including electronic ones.
Criminal Procedure Code, 1973 (CrPC):
This code outlines the procedures for the investigation, arrest, and prosecution of cybercrimes. It includes provisions for obtaining digital evidence and conducting searches.
National Digital Crime Resource and Training Centre (NDCRTC):
This is a government initiative aimed at training law enforcement and other agencies in effectively managing cybercrimes and handling digital evidence.
Cyber Crime Investigation Cells:
Many States have established dedicated cybercrime units within their police forces to focus on investigations and enforcement related to cybercrimes.
Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021:
These rules regulate intermediaries, such as social media platforms, requiring them to remove harmful content, implement grievance redressal mechanisms, and assist law enforcement agencies.
Data Protection Laws:
The Personal Data Protection Bill, 2023 (PDP Bill), although not yet enacted, is anticipated to provide a comprehensive framework for data protection, privacy, and the management of personal data, specifically addressing issues around data breaches and cybercrimes involving personal data.
Cybersecurity Policies:
Various policies and frameworks, such as the National Cyber Security Policy of 2013, aim to enhance cybersecurity infrastructure and response mechanisms.
These provisions collectively address different aspects of cybercrime, including unauthorised access, data breaches, online fraud, and digital harassment. They establish a legal framework for investigating, prosecuting, and adjudicating offences related to cyber activities.
Relevant Provisions under the Information Technology Act, 2000
Objective and Application of the Act:
The Information Technology Act, 2000 (IT Act) is a crucial piece of legislation in India that addresses various aspects of the digital domain, including cybercrimes. It was enacted to provide legal recognition to electronic transactions and to facilitate E-governance while considering concerns related to cybercrimes and data security.
Objectives of the Act
The primary aim of the Information Technology Act, 2000, is to establish a legal framework for electronic transactions and communications, ensuring their validity and security. Its objectives include:
- Facilitating E-commerce: The Act promotes ecommerce and electronic transactions by providing them with legal recognition.
- Data Protection: It addresses issues pertaining to data protection, privacy, and security within the digital space.
- Cybercrimes: The Act defines and penalises various cybercrimes, creating a legal basis for prosecution.
- Electronic Governance: It supports E-governance initiatives and provides a framework for the electronic maintenance of records.
Application of the Act
The Information Technology (IT) Act applies throughout India and to any offence or contravention committed outside India by any person. It encompasses:
Persons: The Act applies to individuals, government entities, and businesses involved in electronic transactions.
Electronic Records: It covers electronic records, digital signatures, and other forms of electronic data.
Digital Signatures: The Act recognises digital signatures and affirms their legal validity.
Salient Features of the Act The Information Technology Act of 2000 is a comprehensive piece of legislation in India that addresses various aspects of electronic transactions, data protection, and cybercrimes.
Key Features of the Act Extraterritorial Jurisdiction: The Act extends its jurisdiction beyond national boundaries, allowing the regulation of activities that may occur outside India.
Definition of Terms: Important terms such as cyber cafes, digital signatures, and electronic records are clearly defined under Section 2(1) for legal clarity and understanding.
Validation of Electronic Contracts: Contracts made through electronic means are declared legally valid and protected under Section 10A.
Legal Recognition of Electronic Transactions: The Act gives legal recognition to electronic records and digital signatures, making them equivalent to physical documents and handwritten signatures in most cases.
Recognition of Digital Signatures: The Act acknowledges digital signatures and establishes methods for their authentication.
Appointment of Controller and Powers: It includes provisions for appointing a Controller and specifies their powers.
Recognition of Foreign Certifying Authorities: Foreign certifying authorities are acknowledged under Section 19 of the Act.
Penalties for System Damage: The Act outlines penalties for damages inflicted on computer systems by individuals other than the system’s owner.
Establishment of Appellate Tribunal: It provides for the creation of an Appellate Tribunal to address appeals from decisions made by the Controller or adjudicating officer Appeals can further be escalated to the High Court.
Offences and Penalties: The Act defines various offences related to data and specifies the corresponding punishments for those offences.
Intermediaries’ Liability Exemption: It outlines circumstances under which intermediaries are not held liable, even in cases of data privacy breaches.
Cyber Regulation Advisory Committee: The Act establishes a committee to advise the Central Government on issues related to ecommerce and digital signatures.
Procedure of Investigation and Trial (Chapter XI) under the Information Technology Act, 2000
Investigation Procedure
- Search and Seizure: Authorised police officers, not below the rank of Inspector, can conduct searches and seize computers, devices, or data that are believed to be associated with cyber offences.
- Power to Issue Directives for Interception, Monitoring, or Decryption of Information: Government authorities are empowered to issue directives for monitoring, intercepting, or decrypting information through computers if it is deemed essential for national sovereignty or security.
- Appointment of Adjudicating Officer: The Central Government appoints Adjudicating Officers who are responsible for hearing and deciding on penalties for violations of the rules or regulations established under the Act.
- Forensic Laboratory: The Government is required to establish forensic laboratories to analyse and process digital evidence critical for investigations.
- Request for Information: Law enforcement officials or authorised officers have the authority to request any person to provide information or assist during investigations related to cyber offences.
Trial Procedure
Applicability of the Code of Criminal Procedure, 1973 (CrPC) (Section 78): The Code of Criminal Procedure, 1973, applies to all offences under the Information Technology Act unless otherwise specified.
Court Jurisdiction: Cases under this Act fall within the jurisdiction of courts that are at least at the rank of a Metropolitan Magistrate or a Judicial Magistrate of the First Class.
Procedure for Trials: Trials for offences committed under this Act are conducted in a manner similar to a summary trial, which helps expedite the legal process.
Appellate Tribunal: Appeals from the orders issued by the Adjudicating Officer can be taken to the Cyber Appellate Tribunal, which has been established under this Act. This ensures there is a channel for higher level review and resolution.
Burden of Proof: The burden of proof, whether to establish innocence or guilt, lies with the accused or the individual challenging the order issued by the Adjudicating Officer.
Exemption from Liability of Intermediaries in Certain Cases (Section 79)
Under this Section, intermediaries are not held liable for third party information, data, or communication links that they host or make available, regardless of other existing laws.
Conditions for Exemption
The exemption applies if:
- The intermediary’s role is solely to provide access to a communication system where third-party information is transmitted or temporarily stored.
- The intermediary does not initiate the transmission, choose the recipient, or modify the transmitted information.
- The intermediary performs its duties diligently and complies with the guidelines established by the Central Government.
Exceptions to Exemption
The exemption does not apply if:
- The intermediary has actively conspired, aided, abetted, or induced an unlawful act.
- After receiving notice from the appropriate government or its agency about the use of their resources for unlawful activities, the intermediary fails to promptly remove or disable access to such materials without tampering with evidence.
Explanation: In this context, “third-party information” refers to any information handled by an intermediary in their role as an intermediary.
The Information Technology Act in India serves to protect citizens against white-collar crimes and terrorist attacks. India enforces strict penalties for cybercrimes under this Act to punish offenders, deter potential criminals, and protect internet users
In summary, the Information Technology Act outlines various cybercrimes and prescribes strict penalties—including imprisonment and fines—to address these issues. The goal is to mitigate the escalating problem of cybercrime in India.
The Changing Geolocation of Cybercrime Hotspots in India
According to a recent study by a start-up incubated at IIT Kanpur, Rajasthan’s Bharatpur and Uttar Pradesh’s Mathura have now overtaken Jharkhand’s Jamtara and Haryana’s Nuh as the notorious hotspots for cybercrime in India. The study revealed that the top 10 districts account for a staggering 80% of cybercrime across the country.
What links Mathura in Uttar Pradesh, Bharatpur in Rajasthan, and Mewat in Haryana? These three districts create a triangle that is quickly becoming the new “Jamtara,” the Jharkhand city infamously known as India’s “phishing capital.” Certain areas in Nuh, particularly those bordering Bharatpur and Mathura, have emerged as significant centres for cybercrime. This region has gained infamy as the ‘new Jamtara,’ especially following extensive police raids that targeted 300 locations across 14 villages in Nuh. This operation, the largest against cybercrime in the area, involved 102 police teams and over 5,000 officers. The UP Police’s Cyber Cell also conducted investigations into approximately 400 cyber fraud cases in recent months, highlighting the prevalence of deepfake-based blackmail schemes in this ‘triangle.’
The Future Crime Research Foundation (FCRF), another start-up incubated at IIT Kanpur, conducted a thorough analysis of cybercrime trends in India from January 2020 to June 2023. According to their findings, ten districts are responsible for 80% of reported cybercrime incidents in the country.
Bharatpur district in Rajasthan is identified as the most cybercrimeprone region, accounting for 18% of reported incidents. Following closely is Mathura in Uttar Pradesh, responsible for 12%. Nuh in Haryana ranks third, contributing 11% to the nation’s cybercrime statistics. Notably, Jamtara district in Jharkhand, the backdrop for the Indian Netflix original series “Jamtara – Sabka Number Ayega,” which explores a phishing racket, now ranks fifth on this list.
The FCRF study highlighted that while established cybercrime hubs remain significant threats, emerging hotspots require immediate attention and proactive measures from individuals and authorities. These new areas are experiencing a rise in various forms of digital criminal activity, often catching law enforcement agencies and the public off guard.
Different regions exhibit unique patterns of online mischief. For instance, in Rajasthan, cyber tricksters use social engineering tactics for sextortion, while fraudsters crowd online marketplaces or pose as customer support on Google to execute their scams. Jharkhand sees a variety of scams, including one-time password deception, fake KYC processes, manipulation of utility bills, and misleading online quizzes. In Delhi, issues include loan app harassment, gift card traps, matrimonial fraud, and fake employment and investment schemes, while Bihar faces challenges related to phishing and unauthorised credit card transactions.
The findings identify Bharatpur as the leading hotspot, accounting for 18% of cybercrimes. This prevalence is attributed to its proximity to major cities like Delhi and Jaipur, and limited job opportunities leading individuals to cybercrime as a side hustle. Mathura, a popular tourist destination with numerous financial transactions, also stands out, comprising 12% of cybercrime cases. Nuh follows closely with 11% of such cases. Its proximity to the national capital attracts both cybercriminals and potential victims. Deoghar accounts for 10%, largely due to the absence of adequate law enforcement resources. Jamtara, though now fifth with 9.6%, remains notorious for online fraud and phishing activities. Gurgaon, known as a corporate IT hub, represents 8.1% of cybercrime activity, drawing criminals in search of valuable data and money. Alwar, at 5.1%, serves as a transit point for scammers due to its convenient location between Delhi and Rajasthan. Bokaro and Karma Tand, both at 2.4%, face cyber threats due to limited resources and lack of digital education, while Giridih, at 2.3%, is an attractive spot for web crimes due to its remote location and minimal law enforcement presence.
This analysis reveals several common factors that contribute to the vulnerability of these districts. Key elements include geographical proximity to major urban centres, limited cybersecurity infrastructure, socioeconomic challenges, and low digital literacy. These conditions increase residents’ susceptibility to cybercrimes such as online fraud and phishing.
In the case of Bharatpur, the high cybercrime rate can be attributed to its proximity to major urban centres like Delhi and Jaipur, making it an attractive hub for cybercriminal activities. Additionally, a lack of awareness and digital literacy among the population further contributes to its vulnerability.
Mathura, a prominent tourist destination, experiences a significant rate of cybercrime due to the financial transactions related to tourism, which makes it an appealing target for cybercriminals. The limited cybersecurity infrastructure and awareness among businesses and individuals exacerbate this issue.
Nuh’s elevated cybercrime rate may be influenced by its closeness to the National Capital Region (NCR), which attracts both cybercriminals and potential victims. Socioeconomic challenges in the region may also drive individuals toward cybercrime as an illicit source of income.
Deoghar, despite its relatively small size, struggles with cybercrime due to insufficient law enforcement resources and a lack of specialised cybercrime units. Moreover, limited digital literacy and awareness among the local population make them more susceptible to online scams.
Jamtara is notorious as a hub for cybercriminal activities, particularly related to online fraud and phishing. The area has developed a culture of cybercrime with well-organised criminal networks operating within it.
Gurgaon’s high cybercrime rate is influenced by its status as a major corporate and IT hub, attracting cybercriminals seeking valuable data or financial gains. Despite its economic affluence, disparities in digital literacy and cybersecurity awareness persist among Gurgaon’s diverse population.
Alwar, located between Delhi and Rajasthan, serves as a potential transit point for cybercriminals due to its location. Limited cybersecurity infrastructure and awareness in smaller towns within the district contribute to their vulnerability.
Bokaro’s cybercrime rate is linked to the absence of specialised cybercrime units and resources for law enforcement agencies, while economic challenges in the region may drive individuals toward cybercrime as an alternative source of income.
Karma Tand’s cybercrime rate is influenced by its proximity to districts with higher cybercrime rates, facilitating the spread of such activities. Limited access to digital education and cybersecurity resources leaves the population susceptible to online fraud.
Giridih, being relatively remote with a limited law enforcement presence, is an attractive location for cybercriminal operations. The lack of digital literacy and awareness further contributes to the local population’s vulnerability.
Online financial fraud, including phishing and online scams, accounted for a staggering 77.41% of the total reported cybercrimes in India from January 2020 to June 2023, according to the FCRF report.
The increase in such cases can be attributed to a complex interplay of factors such as low technical barriers that allow individuals with limited expertise to engage in cybercriminal activities using readily available hacking tools and malware.
Inadequate Know Your Customer (KYC) and verification processes on online platforms enable criminals to create fake identities, making it challenging for law enforcement to trace them. Additionally, easy access to fake accounts and rented SIM cards on the black market allows criminals to operate anonymously, complicating tracking and prosecution efforts.
Furthermore, the affordability of AIdriven cyberattack tools empowers criminals to automate and scale their attacks, increasing their efficiency. Virtual private networks (VPNs) also provide anonymity for cybercriminals, making it difficult for authorities to trace their online presence and location. The FCRF report also noted that unemployed or underemployed individuals are often recruited and trained by cybercrime syndicates, creating a growing pool of potential criminals.
Financial frauds top the list of cybercrimes, accounting for 77.41% of all reported incidents. These fraudulent activities predominantly involve Internet Banking Fraud, including tactics such as debit/ credit card fraud, depository fraud, and vishing (impersonating reputable companies over calls to seek bank details and credit card numbers). Particularly alarming is the sharp increase in UPI fraud, which constitutes an astonishing 47.25% of all online financial crimes. Online and social mediarelated frauds are second on the list, making up 12% of incidents. These include acts like impersonation, cyberbullying, sexual harassment, and phishing.
Cybercriminals in the country are targeting everyone, from ordinary citizens to the daughter of a prominent political leader. Particularly concerning is their use of technology—designed to simplify online payments, social media interactions, and shopping— to deceive and scam individuals. These criminals employ various tactics, such as creating fake online shopping portals, offering jobs instead of cash, and sending phishing links to extract money from unsuspecting victims.
One prevalent form of cyber fraud involves online transactions on E-commerce sites and marketplaces. Fraudsters often monitor platforms like OLX, where people sell their products. They create fake accounts, sometimes posing as army personnel, and approach sellers with offers. In one recent incident, a woman named Harshita was trying to sell a second-hand sofa on OLX. She was contacted by a scammer who posed as a buyer. To establish legitimacy, the scammer initially transferred a small amount to her account. He then sent a QR code for her to scan, claiming it would authorise the full payment. Unfortunately, after she scanned the code, Rs 34,000 was debited from her account.
Scammers from regions such as Mathura and Bharatpur often target individuals advertising the sale of second-hand motorcycles, cars, gadgets, and various everyday items. For instance, a retired bank manager was recently scammed out of Rs 5 Lakh after posting a month-old double-door refrigerator for sale for Rs 50,000. The fraudster, pretending to be an army man, initially deposited Rs 100 into the victim’s account to appear genuine. He then claimed he could not transfer the full payment due to being stationed near the border and asked the seller to scan the QR code he provided to complete the transaction. The exbanker ultimately lost Rs 5 Lakh after following the scammer’s instructions.
Several gangs with similar tactics have been busted in these regions before. This tri-junction has become the new Jamtara, but it is even more notorious, expanding its operations beyond phone scams to exploit banking, social media profiles, and online marketplaces.
Cyber experts report that cybercriminals are using fake SIM cards from distant states for their scams. In Mewat, scammers use SIM cards from Assam and Telangana, while in Jamtara, SIM cards come from West Bengal. During one investigation, over 14,000 fake numbers connected to Mewat were identified.
New forms of scams and blackmail have emerged. In sextortion cases, scammers lure victims through links or video calls. A scammer may initiate a video call, record it, edit it with explicit content, and use it to blackmail the victim. Within seconds, the trap is set — the scammer displays ‘obscene’ images and accuses the victim of consuming pornography. First, they demand money directly. If the victim blocks them, the scammer switches to another number to continue harassing them. In the final stage, they impersonate law enforcement: pretending to be from the Delhi Police Cyber Crime Unit, they accuse the victim of distributing pornography and demand money to ‘resolve the case.’
The police reported receiving over 100 cybercrime complaints in just two months. Scammers have also started superimposing their male targets’ faces onto explicit videos, then blackmailing them for sums ranging from Rs 5,000 to Rs 50,000. Some scammers speak fluent English to target affluent individuals in cities like Mumbai and Kolkata. Recently, a Lucknow businessman became a victim to a sextortion attempt. After accepting a woman’s friend request on social media, he received a brief WhatsApp video call from her, which she used to manipulate him. Minutes later, he was contacted and threatened to pay Rs 30 Lakh or have the recording released publicly.
Scammers are also using SMS messages to trick people. Through offers like cashback, luxury hotel stays, and other rewards, victims are lured to a scratch card portal and defrauded. On social media platforms like Facebook, fraudsters use fake profiles and distress messages to solicit help, deceiving people and leading them into financial loss.
As the magnitude of the problem continues to escalate, it has captured the attention of decisionmakers in Delhi. In a recent meeting, the Ministry of Home Affairs (MHA) urged States to take decisive action against these criminals. The Cybercrime Cell of the Home Ministry has also called upon citizens and cyber experts to volunteer in identifying, flagging, and reporting illegal and unlawful content, including child pornography, rape, terrorism, radicalisation, and anti-national activities.
The white paper has highlighted the importance of understanding the key factors contributing to cybercrime in specific districts to design effective prevention and mitigation strategies. An analysis of the top 10 cybercrime hubs in India reveals several common factors that enhance their vulnerability. These include their geographical proximity to major urban centres, limited cybersecurity infrastructure, economic challenges, and low digital literacy levels.
To reduce cybercrime rates in these districts and improve the overall cybersecurity landscape in India, it is crucial to address these factors through targeted awareness campaigns, enhanced law enforcement resources, and educational initiatives.
All Eyes On Accra As AfCFTA Gets Ready To Roll
Ghana has fulfilled all its obligations towards the establishment and the setting up of the AfCFTA Secretariat in Accra, following its selection by the AU Assembly. A flagship project of the African Union’s Agenda 2063, the AfCFTAcreates a market of 1.2 billion people with a combined GDP of USD 3 trillion.
GHANA PRESIDENT Nana AddoDankwaAkufo-Addo officially commissioned and handed over the Secretariat building of the African Continental Free Trade Area (AfCFTA) to the African Union Commission in Accra late last year.
At a symbolic ceremony at the African Trade House, the President handed the keys to the Secretariat to MoussaFaki, Chairperson of the AU.He also handed a scroll, the symbol of authority, to the Secretary-General of the AfCFTA, WamkeleKeabetweMene, kickstarting Africa’s push to create the world’s largest integrated market that would boost the continent’s growth and bring prosperity for its 1.27 billion people.
The Secretariat will house the offices of the AfCFTA Secretary- General and staff who would provide administrative support for the implementation of the AfCFTA Agreement brokered by the AU that requires member states that have signed unto the agreement to remove tariffs from 90% of goods to allow for free access to commodities, goods, and services across the continent.
Akufo-Addo, in his remarks, pointed out that the coming into being of the AfCFTA was one of the most important decisions taken by the AU considering the low intra-regional trade between African nations.He noted that increased intra-regional trade would contribute to the continent’s quest to end endemic poverty and ensure the desired economic growth for Africa and its people. “The last part of the growth and prosperity that we seek will come from us trading more amongst ourselves…We in Ghana believable increasing trade is the surest way to deepen Regional integration,” he stressed. Akufo-Addo was optimistic that Africa’s new sense of urgency for
GHANA PRESIDENT Nana AddoDankwaAkufo-Addo officially commissioned and handed over the Secretariat building of the African Continental Free Trade Area (AfCFTA) to the African Union Commission in Accra late last year. At a symbolic ceremony at the African Trade House, the President handed the keys to the Secretariat to MoussaFaki, Chairperson of the AU.He also handed a scroll, the symbol of authority, to the Secretary-General of the AfCFTA, WamkeleKeabetweMene, kickstarting Africa’s push to create the world’s largest integrated market that would boost the continent’s growth and bring prosperity for its 1.27 billion people. The Secretariat will house the offices of the AfCFTA Secretary- General and staff who would provide administrative support for the implementation of the AfCFTA Agreement brokered by the AU that requires member states that have signed unto the agreement to remove tariffs from 90% of goods to allow for free access to commodities, goods, and services across the continent. Akufo-Addo, in his remarks, pointed out that the coming into being of the AfCFTA was one of the most important decisions taken by the AU considering the low intra-regional trade between African nations.He noted that increased intra-regional trade would contribute to the continent’s quest to end endemic poverty and ensure the desired economic growth for Africa and its people.
“The last part of the growth and prosperity that we seek will come from us trading more amongst ourselves…We in Ghana believable increasing trade is the surest way to deepen Regional integration,” he stressed.
Akufo-Addo was optimistic that Africa’s new sense of urgency for economic integration would lay the foundation for an ‘Africa Beyond Aid’, and make the continent truly self-reliant.And with it, will come a rapid increase in the exchange of agricultural, industrial, financial, scientific and technological products, which he said, “will significantly enhance our economic fortunes as a continent create profit and provided opportunities for employment for the broad masses of Africans, particularly the youth.”
“It will provide the vehicle for us to trade among ourselves in a more modern and sophisticated manner; it will offer a huge opportunity to exploit the abundant wealth and resources of our great continent for the benefit of all our people; and it will give us protection in how to deal with other trading blocks,” he added.
The President also indicated that the coronavirus pandemic and the attendant disruption in the global supply chain had heightened the importance of the AfCFTA and reinforced the necessity for closer integration amongst countries “so that we can boost our mutual self-sufficiency, strengthen our economies, and reduce our dependence on external sources.”
He appealed to member states who were yet to ratify the AfCFTA Agreement to do so before the AU’s next extraordinary Summit scheduled for December 2020 to pave way for the smooth commencement of trading from 2021 onwards.
“We are now the world’s largest free trade area since the formation of the World Trade Organisation, and we must make it count,” he stressed.
54 member states have signed unto the Agreement. But only 30 have so far approved its ratification.
Akufo-Addo urged the AfCFTA Secretary-General to work towards building a strong, efficient and effective Secretariat, with the capacity to implement the various trade rules, in line with the text of the Agreement, to help build credibility, and reduce trade policy uncertainty in the continent.
“The world is watching to see whether the Secretariat will, indeed, provide the springboard for Africa’s economic integration and rapid growth, and I am confident that, under your tenure, it will.Mr. Secretary-General, be rest assured of the firm support of the Government of Ghana for your work and activities,” he added.
Akufo-Addo also commended the Nigeriene leader, MahamadouIssoufou, who is also the current Chair of ECOWAS, for the work he has done in championing the African Continental Free Trade initiative.
He congratulated the South African President, Cyril Ramaphosa, current Chair of the Authority of the Assembly of the AU, for the benign, progressive guidance and supervision he has offered to make the handing over ceremony possible.
A statement on behalf of South Africa President Cyril Ramaphosa, who is the Chairperson of the AU, was delivered on the occasion of the handover ceremony of the AfCFTA Secretariat. “On behalf of the African Union and the entire Continent, I express our profound gratitude to the Government and people of Ghana for generously offering the building and residences, which house the AfCFTA. This day is indeed a milestone and a strong affirmation of the vision of an integrated Africa, which was envisioned by the founding fathers of the OAU, including Kwame Nkrumah, 57 years ago. It is a fitting tribute that the AfCFTA Headquarters are being housed in Ghana.”
“When successfully implemented, the AfCFTA will be a huge milestone towards the realisation of Agenda 2063, the Africa we want.As AU Chair, I also wish to assure you of the AU’s commitment to the successful implementation of the AfCFTA, as a practical contribution to economic development of Africa,” he added.
AfCFTA Secretary-General WamkeleKeabetweMeme noted that Africa continued to be trapped in a colonial economic model, which required the aggressive implementation of the AfCFTA as a tool for effecting a fundamental structural transformation of Africa’s economy.
“The AfCFTA is therefore a critical response to Africa’s developmental challenges. It has the potential to enable Africa to significantly boost intra Africa trade and to improve economies of scale through an integrated market.It has the potential to be a catalyst for industrial development, placing Africa on a path to exporting value-added products and improving Africa’s competitiveness both in its own markets and globally.It also sends a strong signal to the international investor community that Africa is open for business, based on a single rule-book for trade and investment,” he said.
He thanked the government and the people of Ghana, for hosting the Secretariat and for providing world class facilities that will enable Africa to progress on the historic vision of achieving an integrated Africa.
African Continental Free Trade Area (AfCFTA)
The AfCFTA aims to boost intra-African trade by providing a comprehensive and mutually beneficial trade agreement among the member states, covering trade in goods, services, investment, intellectual property rights and competition policy.
The African Continental Free Trade Area (AfCFTA) is a flagship project of Agenda 2063 of the African Union, Africa’s own development vision. It was approved by the 18th Ordinary Session of Assembly of Heads of State and Government, held in Addis Ababa, Ethiopia in January 2012, which adopted the decision to establish a Continental Free Trade Area. This is an initiative whose immediate implementation would provide quick wins, create impact on socio-economic development, and enhance confidence and the commitment of Africans as the owners and drivers of Agenda 2063. The AfCFTA aims at accelerating intra-African trade and boosting Africa’s trading position in the global market by strengthening Africa’s common voice and policy space in global trade negotiations.At the time of writing, 36 countries have ratified the AfCFTA agreement.
The African Continental Free Trade Area (AfCFTA) will cover a market of 1.2 billion people and a gross domestic product (GDP) of USD 2.5 trillion, across all 55 member States of the African Union. In terms of numbers of participating countries, AfCFTA will be the world’s largest free trade area since the formation of the World Trade Organisation.It is also a highly dynamic market. The population of Africa is projected to reach 2.5 billion by 2050, at which point it will comprise 26% of what is projected to be the world’s working age population, with an economy that is estimated to grow twice as rapidly as that of the developed world.With average tariffs of 6.1%, businesses currently face higher tariffs when they export within Africa than when they export outside it. AfCFTA will progressively eliminate tariffs on intra-African trade, making it easier for African businesses to trade within the continent and cater to and benefit from the growing African market.Consolidating this continent into one trade area provides great opportunities for trading enterprises, businesses and consumers across Africa and the chance to support sustainable development in the world’s least developed region. ECA estimates that AfCFTA has the potential both to boost intra-African trade by 52.3% by eliminating import duties, and to double this trade if non-tariff barriers are also reduced. Located in Accra, Ghana, the African Continental Free Trade Area Secretariat is the administrative organ to coordinate the implementation of the AfCFTA. The Secretariat is responsible for convening meetings, monitoring and evaluating the implementation process and other duties assigned to it by the Committee of Senior Officials, Council of Ministers, and the Assembly of the African Union (AU).
The Assembly of the AfCFTA is the highest decision-making organ of the AU, consisting of all AU Heads of State and Government. It has exclusive authority to adopt interpretations of this Agreement on the recommendation of the Council of Ministers, andprovides oversight and guidance on the AfCFTA. The Council of Ministers comprises Ministers for Trade of the State Parties. It will take decisions on all matters under the AfCFTA Agreement, and reports to the Assembly through the Executive Council of the AU. The AfCFTA Council of Minister is separate from the AU Ministers of Trade (AMOT). The Committee of Senior Trade Officials comprises Permanent Secretaries or other officials designated by State Parties. It is responsible for the development of programmes and action plans for the implementation of the AfCFTA Agreement.
The Protocols of the AfCFTA Agreement establish various technical committees to assist with the implementation of the Agreement. They include the Trade in Goods Committee and Trade in Services Committee.
India-Russia: Partnership for Peace, Progress and Prosperity
Amidst growing differences between India and Russia due to India’s growing closeness with the US and Russia’s congruence with China, India and Russia held the 21st India-Russia Annual Summit to discuss the entire gamut of bilateral relations, including regional and global issues. Recent events saw the distancing of Russia from India through the re-evaluation of its position as regards to AF-Pak region and the Indo-Pacific. Further Russia’s worsening relations with the West and lack of support for its position including from India saw the necessity to sit down and discuss the issues and reduce the trust deficit among the two. India and Russia focused on ways to boost bilateral cooperation in areas ranging from defence to energy and a coordinated approach to regional issues. N Chandra Shekar reports…
INDIAN PRIME MINISTER Narendra Modi welcomed Russian President Vladimir Putin emphasising the importance of strategic relations between the two nations. Referring to the Russian President as a “friend”, PM Modi said “our meeting today will strengthen our Special and Privileged Strategic Partnership. The initiatives that we take today will further increase the scope of our cooperation to new areas’.
Modi also noted in his opening remarks that this was only Putin’s second foreign visit since the start of the Covid-19 pandemic and reflects his personal commitment to bilateral relations. The year 2021 is important for bilateral ties as it marks five decades of the Indo-Soviet Treaty of Peace, Friendship and Cooperation of 1971 and two decades of the bilateral strategic partnership, he added.
In his opening remarks ahead of the bilateral meeting He said, “2021 is also special for our Strategic Partnership. Today was the inaugural meeting of the 2+2 dialogue between our Foreign and Defence Ministers. This has started a new mechanism to enhance our practical cooperation,”. India-Russia relations have been one of the success stories of global diplomacy and PM Modi’s warm relationship with President Putin has stood the test of the dynamic geopolitical situations and their congruence on global issues will influence regional and global politics.
President Putin said Russia perceives India as a “great power” with whom relations “are developing and are looking to the future”. Though trade turnover declined by more than 17% in 2020, the growth was more than 38% in the first nine months of 2021, he said. Total bilateral investments now stand at $38 billion, and this is roughly equally divided, with slightly more investments from the Russian side, Putin said, adding the two sides are also cooperating in areas such as energy, high technology and space. “We continue to work actively in the international arena, and… our positions on very many issues do coincide. We are undoubtedly concerned about everything related to terrorism and the fight against it, as well as drugs and organised crime,” he said. The two sides are also concerned about the developing situation in Afghanistan, he added.
India-Russia economic relations have been lopsided and marked by a steep imbalance favouring Russia. India-Russia annual trade in goods is about $10 billion. Whereas Russia’s trade with China is around $100 billion. In contrast India’s trade with US and China is around $100 billion. During the last 20 summits both sides have been repeatedly reiterating the need for enhancing trade and investment ties. One of the most visible glaring aspect of India Russia ties is its failure to boost trade. Trade between India and Russia has been one way with India becoming Russia’s largest armament buyer other than energy. This summit has dawned on both of them a new sense of realisation to leverage on the strong historical ties and lay new grounds for expansive economic cooperation.
The India-Russia Joint Statement called ‘Partnership for Peace, Progress and Prosperity’ said, “The completion of 5 decades of the 1971 Treaty of Peace, Friendship and Cooperation and 2 decades of Declaration on Strategic Partnership is symbolic of the long standing and time-tested India-Russia relations characterized by mutual trust, respect for each other’s core national interests and similarity of positions on various international and regional issues.” The meeting saw the signing of 28 agreements across sectors from defence to energy to space exploration, science and technology, heavy engineering, to trade and investment.
Agreements/MoUs signed during the 21st India-Russia Annual Summit in New Delhi
Roadmap for science, technology and innovation cooperation between the Ministry of Science and Higher Education of the Russian Federation and the Ministry of Science and Technology of the Government of the Republic of India.
Memorandum of cooperation in the field of intellectual property between the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of the Republic of India and the Federal Service for Intellectual Property, Russian Federation.
Agreement on Program of the Military-Technical Cooperation from 2021-2031. [This 10-year defence cooperation programme outlines the ongoing defence cooperation and future possible cooperation between the two countries. Such agreements have been signed since 1994.]
A MoU between Joint Stock Company Rosgeologia (ROSGEO), a legal entity incorporated under the laws of the Russian Federation and Geological Survey of India (GSI), Ministry of Mines, Government of the Republic of India on cooperation in the field of geoscience. [It seeks cooperation in the field of earth sciences and geological study of subsoil, long-term cooperation in the area of geological onshore and offshore exploration works.]
Protocol on introduction of amendments to the Merchant Shipping Agreement between the Government of the Republic of India and the Government of the Russian Federation. [It introduces an amendment leading to recognising the seafarer’s identity documents.]
A cultural exchange programme between the Ministry of Culture of the Government of the Republic of India and the Ministry of Culture of the Russian Federation for the years 2021-2024.
Protocol between the Department of State Support of the Art and Folk Creativity of the Ministry of Culture of the Russian Federation and Indian Council for Cultural Relations under the Ministry of External Affairs of the Republic of India on the organisation of culture festivals between the Russian Federation and the Republic of India for 2022-2023.
An agreement between the Government of the Republic of India and the Government of the Russian Federation on technology protection due to cooperation in the field of research and use of outer space for peaceful purposes and building and operation of launch vehicles and ground-based space infrastructure.
Protocol between Government of the Russian Federation and Government of the Republic of India on allotment of land plots for allocation of Consular offices of the Republic of India in the Russian Federation and terms of housing the Consulate General of the Republic of India in the city of Vladivostok.
Commercial and other Agreements/MoUs
A MoU between Opto-electronics Factory, Dehradun and JSC Rosoboronexport.
A cooperation agreement between Reserve Bank of India and the Bank of Russia in the field of responding to cyber attacks
A MoU on cooperation between ICAI (The Institute of Chartered Accountants of India) and IPAR (The Institute of Professional Accountants of Russia). [It seeks to establish collaboration through joint research, quality support, capability and capacity building.]
A MoU for cooperation in the power sector between NTPC Ltd, Government of India Enterprise and Inter Rao-Export LLC.
A memorandum of cooperation between SAIL and Russian Company SSC FSUE TsNIIchermet im. I. P. Bardin. [It seeks to join efforts in carrying out research, technological and strategic work in the field of metallurgical technologies.]
A memorandum of cooperation between JSPL (Jindal Steel and Power Ltd) and Russian Company SSC FSUE TsNIIchermet im. I. P. Bardin. [It seeks to join efforts in carrying out research, technological and strategic work in the field of metallurgical technologies.]
A MoU between JSW Steel Ltd and Russian Company SSC FSUE TsNIIchermet im. I. P. Bardin. [It seeks to join efforts in carrying out research, technological and strategic work in the field of metallurgical technologies.]
A statement of intent of collaboration between IOCL and SIBUR. [It seeks to consider the possibility to explore the feasibility of setting up a Dual Feed Cracker Unit along with downstream units at Odisha.]
A MoU between National Sports University, Imphal and Russian International Olympic University (RIOU), Sochi, Russia.
A MoU between Indian Institute of Science Education and Research Kolkata (India) and A.V. Zhirmunsky National Scientific Centre of Marine Biology of the Far Eastern Branch of Russian Academy of Sciences (NSCMB FEB RAS) (Russian Federation). [It seeks to establish Centre for Excellence in Blue Economy for collaborative exchanges]
A MoU between Lovely Professional University, Phagwara, India and Southern Federal University, Russia. [It seeks to collaborate on academic and research activities, exchange of academic information, student and faculty exchange etc.]
An agreement for academic collaboration between University of Delhi and Skoltech University, Moscow. [It seeks to promote capacity-building and expertise in scientific areas and is aimed at developing programmes and exchanges for national technological development.]
An agreement between the Federal State Autonomous Educational Institution of Higher Education I.M.Sechenov First Moscow State Medical University of the Ministry of Health of the Russian Federation (Sechenov University) and University of Delhi. [It seeks to promote cooperation in life sciences in the fields of Nano-medicine, Regenerative Medicine, Molecular Medicine, Bio-medical Science, Translational Medicine, Pre-clinical and Clinical Research, New Drug Discovery, Industrial Technologies and Entrepreneurship.]
A MoU between Uttar Pradesh FICCI and BCCI, Russia. [It seeks to establish links, exchange experience in international cooperation, small and medium businesses.]
A MoU on manpower supplies between Magic Billion and Volshebny Milliard.
A statement of intent of collaboration between IOCL and Gazpromneft for VGO Hydrocracking Technology, Catalytic Iso-dewaxing for lobs and catalyst regeneration for fixed bed catalyst.
A MoU between Rosneft and OVLled Indian Consortium on Training Cooperation. [It seeks to provide education and training programs in the oil and gas sector.]
A MoU between Indian Trade Promotion Organisation and Roscongress Foundation for bilateral trade cooperation.
A crude oil supply agreement between Rosneft and Indian Oil Corp. Ltd. [It seeks to renew the previous contract between Rosneft and IOCL.]. FOCUS 28 Oct-Nov-Dec | 2021 OPEN TRADE African Continental
Partnership for Global Good
PRESIDENT JOSEPH R. BIDEN welcomed Prime Minister Narendra Modi to the White House today for their first in-person Leaders’ engagement, renewing their close relationship and charting a new course to advance the partnership between the world’s largest democracies.
The Leaders affirmed a clear vision that will guide the U.S.-India relationship forward: building a strategic partnership and working together with regional groupings, including ASEAN and Quad members, to promote shared interests in the Indo-Pacific region and beyond; developing a trade and investment partnership that increases prosperity for working families in both countries; finishing the fight against the COVID-19 pandemic and other health challenges; galvanizing global efforts to scale up climate action; strengthening democratic values and institutions in support of our respective peoples; and enhancing people-to-people ties that have made both countries stronger.
President Biden and Prime Minister Modi expressed deep pride and appreciation about their nations’ close cooperation to fight the COVID-19 pandemic over the past year, as governments, civil society, businesses, and diaspora communities mobilized in unprecedented ways to share emergency relief supplies during each country’s times of need. Having administered hundreds of millions of doses of vaccine to protect their own citizens at home and abroad, they reiterated their commitment to lead the global effort to end this pandemic. President Biden welcomed India’s announcement that it will resume exports of safe and effective COVID-19 vaccines including to COVAX. The Leaders also hailed the finalization of the overarching Memorandum of Understanding on Health and Biomedical Sciences to bolster cooperation on key areas affecting global health, including pandemic preparedness and biomedical research, to reduce the risk of future pandemics.
Prime Minister Modi welcomed President Biden’s initiative to convene the Global COVID-19 Summit on Ending the Pandemic and Building Back Better to Prepare for the Next, given our shared commitment to combat the Covid-19 pandemic.
Prime Minister Modi welcomed U.S. leadership on climate action, including the return of the United States to the Paris Agreement. President Biden expressed support for Prime Minister Modi’s intention to achieve a domestic goal of installing 450 GW of renewable power by 2030 and acknowledged the importance of mobilizing finance for investments in renewables, storage, and grid infrastructure that will guarantee clean, reliable power for millions of Indian households. Through the two main tracks of the Strategic Clean Energy Partnership (SCEP) and the Climate Action and Finance Mobilization Dialogue (CAFMD) under the U.S.-India Climate and Clean Energy Agenda 2030 Partnership, the United States and India will accelerate clean energy development and deployment of critical technologies to advance a clean energy transition. India welcomed the United States joining the Leadership Group for Industry Transition (LeadIT).
President Biden reaffirmed the strength of the defense relationship between the United States and India and the unwavering commitment to India as a Major Defense Partner through close defense engagements in information sharing, sharing of logistics and military-tomilitary interactions, strengthening cooperation in advanced military technologies, and expanding engagements in a multilateral framework including with regional partners. The Leaders welcomed the deepening of advanced industrial cooperation. In this context, they noted the recent project to co-develop air-launched unmanned aerial vehicles (UAVs) under the Defense Technology and Trade Initiative, and encouraged more such joint efforts. They called upon the government and private stakeholders to use the existing ecosystems of innovation and entrepreneurship in defense industries for co-development, coproduction and expanding mutual defense trade. They also looked forward to the inaugural meeting of the Industrial Security Agreement summit to facilitate high-end defense industrial collaboration.
The Leaders reaffirmed that the United States and India stand together in a shared fight against global terrorism, will take concerted action against all terrorist groups, including groups proscribed by the UNSCR 1267 Sanctions Committee, condemned cross-border terrorism, and called for the perpetrators of the 26/11 Mumbai attacks to be brought to justice. They denounced any use of terrorist proxies and emphasized the importance of denying any logistical, financial or military support to terrorist groups which could be used to launch or plan terror attacks. They noted that the upcoming U.S.-India Counterterrorism Joint Working Group, Designations Dialogue, and renewed U.S.-India Homeland Security Dialogue will further strengthen counterterrorism cooperation between India and the United States, including in the areas of intelligence sharing and law enforcement cooperation. They also welcomed opportunities to develop counterterrorism technologies. They commended the U.S.-India Counter Narcotics Working Group and are committed to finalizing a new Bilateral Framework which would facilitate joint efforts to combat drug trafficking, illicit narcotics production and precursor chemical supply chains.
The Leaders resolved that the Taliban must abide by UNSC Resolution 2593 (2021), which demands that Afghan territory must never again be used to threaten or attack any country or to shelter or train terrorists, or to plan or finance terrorist attacks, and underscored the importance of combating terrorism in Afghanistan. The Leaders called on the Taliban to adhere to these and all other commitments, including regarding the safe, secure, and orderly departure from Afghanistan of Afghans and all foreign nationals and to respect the human rights of all Afghans, including women, children, and members of minority groups. They emphasized the importance of efforts to provide humanitarian assistance to Afghanistan, called on the Taliban to allow full, safe, direct and unhindered access for the United Nations, its specialized agencies and implementing partners, and all humanitarian actors engaged in humanitarian relief activity, including with respect to internally displaced persons. Reflecting their long-term commitment to promoting development and economic opportunity for the Afghan people, they determined to continue to closely coordinate and to work jointly with partners toward an inclusive and peaceful future for all Afghans. The Leaders called for an end of the use of violence, for release of all political detainees, and for a swift return to democracy in Myanmar. They further called for the urgent implementation of the ASEAN Five Point Consensus.
The Leaders welcomed increased cooperation under the Quad, including in the multilateral domain given their shared vision of a free, open and inclusive Indo-Pacific region with respect to territorial integrity and sovereignty, and international law. President Biden applauded India’s strong leadership during its UN Security Council Presidency in August 2021. In this context, President Biden also reiterated U.S. support for India’s permanent membership on a reformed UN Security Council and for other countries who are important champions of multilateral cooperation and aspire to permanent seats on the UN Security Council. He also reaffirmed U.S. support for India’s entry to the Nuclear Suppliers Group. They welcomed the extension of the Statement of Guiding Principles on Triangular Cooperation for Global Development to leverage the combined capacities of India and the United States to address global development challenges around the world, particularly in the Indo-Pacific and Africa. In addition, they looked forward to the launch of the U.S.- India Gandhi-King Development Foundation to advance cooperation on health, education, and the environment.
They looked forward to reconvening the India-U.S. Trade Policy Forum before the end of 2021, to enhance the bilateral trade relationship by addressing trade concerns, identifying specific areas for increased engagement and developing an ambitious, shared vision for the future of the trade relationship. The Leaders looked forward to convening the U.S.-India CEO Forum and the Commercial Dialogue in early 2022, leveraging the talents of the private sector. The Leaders noted ongoing negotiations on an Investment Incentive Agreement that facilitates investment in development projects and committed to an early conclusion. They further discussed how the United States and India will work together to set sustainable and transparent rules of the road that will lift economies throughout the Indo- Pacific. They welcomed increased collaboration through the Coalition for Disaster Resilient Infrastructure and the upcoming Indo-Pacific Business Forum.
The Leaders noted that the movement of highly skilled professionals, students, investors and business travelers between their countries enhances their economic and technological partnership. The Leaders highlighted the importance of resilient and secure supply chains between the two countries. They welcomed the involvement of the private sector in both countries in building stronger linkages in critical sectors such as pharmaceuticals, biotechnology, semiconductors, and information technology. The Leaders recognized the importance of critical and emerging technologies in delivering economic growth and achieving strategic priorities. They looked forward to reviving the High Technology Cooperation Group (HTCG) in early 2022, with the objective of accelerating high technology commerce in key areas. The Leaders decided that the United States and India must continue and expand their partnership in new domains and many areas of critical and emerging technology – space, cyber, health security, semiconductors, AI, 5G, 6G and future generation telecommunications technology, and Blockchain, that will define innovation processes, and the economic and security landscape of the next century. The Leaders recognized the foundational need to address vulnerabilities and threats in cyberspace, including to promote critical infrastructure resilience, and welcomed the increasing partnerships among governments to counter ransomware and other cyber-enabled crime, including efforts to combat cybercriminals that operate from within their borders. The Leaders reiterated the importance of sustainable capacity-building and noted that mutual technical assistance efforts to respond to cyber threats should be prioritized and increased, including through dialogues, joint meetings, training and sharing of best practices. They looked forward to the finalization of a Space Situational Awareness Memorandum of Understanding that will help in sharing of data and services towards ensuring the longterm sustainability of outer space activities by the end of the year.
As global partners, the United States and India resolved to further strengthen their collaboration in education, science and technology and people-to-people engagement. The Leaders welcomed close consultations through the 2+2 Ministerial Dialogue of the Foreign and Defense Ministers of India and the United States to be held later this year. The Leaders celebrated the deep and vibrant ties between the people of both nations, which underpins the special bond between the United States and India, and has sustained their partnership for nearly 75 years. They reaffirmed, and encouraged others to embrace, their shared values of freedom, democracy, universal human rights, tolerance and pluralism, and equal opportunities for all citizens, and committed to pursue efforts towards sustainable development and global peace and security.
Prime Minister Modi conveyed his deep appreciation for the repatriation of antiquities to India by the United States. The Leaders committed to strengthen their efforts to combat the theft, illicit trade and trafficking of cultural objects.
Reflecting shared values and principles, and growing strategic convergence, President Biden and Prime Minister Modi resolved to advance the U.S.-India Comprehensive Global Strategic Partnership, and looked forward to what the United States and India will achieve together.
US-INDIA Relations Entering A New Chapter
The recent meeting between the Indian Prime Minister Narendra Modi and US President Joe Biden evoked a lot of interest for watchers in the diplomatic sphere given the fact that Narendra Modi had been seen openly supporting the Republican Party’s incumbent Presidential candidate Donald Trump. It was indeed a pleasant surprise that Joe Biden put US-India relations ahead and lead the talks to build on existing relations and to strengthen US-India trade relations which were going down hill under the previous regime. N Chandra Shekar reports on some of the key takeaways from this visit…
THE INDIA-US TRADE RELATIONS have been much in the storm in the recent years. India’s trade surplus with the US had become a bone of contention for the erstwhile President Trump. Both India and US accused each other of unfair trade practices and were among the most active litigants at the World Trade Organisation. Not withstanding the bonhomie between President Trump and Prime Minister Narendra Modi both nations have not been able to arrive at common ground on the myriad of trade issues that plague the two. When US President Joe Biden and Indian Prime Minister Narendra Modi met in Washington last month for the first time in Biden’s presidency, their talks on trade were limited and only briefly referenced in a joint statement. This cursory treatment suggests trade has been relegated to secondary importance. Instead, this should be an inflection point for growing the US-India trade relationship, ideally to eventually match the scale and importance of their strategic relationship.
While US President Joe Biden has begin to pursue his restorationist agenda on “rescuing US foreign policy” after Donald Trump’s presidency, his agenda on USIndia ties will differ. While US ties with partners across the Atlantic for instance, will warrant Biden’s mitigation efforts, the agenda with India will pertain to furthering Trump’s record. However, the domain of US-India trade, which peaked at $146.1 billion in 2019, will cause some trepidation owing to frictions witnessed in the Trump years. Given Trump’s focus on exacting “fair and reciprocal” trading arrangements, his administration vocalised apprehensions against nations that had amassed trade surpluses over the US. Even though India’s trade surplus is less than a tenth of the US-China trade imbalance, New Delhi did not escape Trump’s action against nations “cheating” the US. It all started with the imposition of import tariffs on steel and aluminium from twelve countries including India. This later developed into a full-fledged bilateral trade war with China. The US also rolled back export incentives for Indian Exporters under its Generalised System of Preferences (GSP) programme affecting India’s exports worth USD 6billion dollars to US under the scheme. In retaliation, India imposed high customs duties on twenty-eight US products, including almonds. The US administration has also started targeting nations who are having a trade surplus with the US including India. With either side not giving in a whole lot of issues have become a bone of contention.
For India one of the key issues has been the withdrawal of the concessions offered to Indian Exporters under the US Generalised System of Preferences which allowed tariff free import of selected commodities (around 3500) from 129 countries for failure to provide equitable and reasonable market access. GSP provides nonreciprocal, duty-free tariff treatment to certain products imported from qualifying developing countries. India has given a representation with the US trade officials for the extension of the GSP.
One of the important issues for the US is its export of farm and poultry products. Sanitary and phytosanitary (SPS) barriers in India limit U.S. agricultural exports. The United States has been raising questions on the scientific and risk-based justifications of such barriers. India had banned chicken imports from US citing avian infuenza risks. But in 2015, the US obtained a favourable verdict from the WTO’s DSB. The WTO ruled that India’s measure was disproportionate to the threat and constituted a non-tariff barrier. In the context of the WTO verdict, the government made changes in the health certification requirement for imported poultry items from the US.
Further the US accused India that it is under reporting subsidies given under Minimum Support Price (MSP) This is the first ever Committee on Agriculture notification by a country under The Agreement on Agriculture (AoA). The US also raised obstructions on India’s food security programme at the Buenos Aires Ministerial Conference (MC). Because of this US stand, WTO failed to reach consensus to provide a permanent solution to the Public Stock Holding of Food Grains on food security ground. As a reply, India and China asked the developed world to reduce their exorbitant levels of farm subsidies. At the Buenos Aires Ministerial Conference of the WTO, the US argued that countries like China and India doesn’t qualify for the Special and Differential Treatment benefits given for developing countries. India strongly objected to the US version
Bilateral tensions have increased over each side’s tariff policies. India has relatively high average tariff rates. The US increased tariff on Steel and Aluminium imports from twelve countries including India. The Indian government approached the WTO’s Dispute Settlement Body against the US move. The government’s stand is that use of the tariff against selected countries is a violation of the Most Favoured Nation clause of the WTO.
As a response to the US tariff on Steel and Aluminium, Commerce Ministry on June 20th notified tariff hike on twenty-nine US products, including almonds, apples and phosphoric acid etc. (worth $10 bn) in retaliation to the steel and aluminium tariff hikes by the US. At the same time, India reduced tariff on selected imports from India including that on few categories of bikes to defuse the trade tension. Perhaps the most devastating step by the Trump administration has been to put a curb on H1 B visas. A key issue for India is U.S. temporary visa policies, which affect Indian nationals working in the United States. India is challenging U.S. fees for worker visas in the WTO and monitoring potential U.S. action to revise the H-1B (specialized worker) visa program. Under its visa restrictions policies, the number of visas to be issued under H1B was reduced; Visa fees were doubled for H1B; Visa eligibility in terms of annual income raised; thereby reducing opportunities for India’s skilled Labour. It also stated that H1 B visas will be issued for single projects. After the completion of the project, the person would have to return without looking for any other job in the US. Further the qualification requirement was also changed such that a two-year degree/diploma was invalidated, and a four-year degree qualification was necessitated for the issue of H1B visas. All these steps hurting the operations of Indian IT firms in the US.
The United States continues to press India to address its “forced” localization practices, such as incountry data storage, domestic content, and domestic testing requirements—viewed by the United States as presenting barriers to trade with India. Adding to U.S. concerns are India’s new restrictive localization rules for certain financial data flows, which affect companies such as Visa and MasterCard. At the same time, India has moved to ease some local sourcing rules for singlebrand retailers, which would affect companies such as Apple. The US had taken India to the WTO’s Dispute Settlement Body against the limited
local sourcing requirement under the National Solar Mission and secured a favourable verdict. Later, the US alleged that India is not following the verdict and sought WTO’s permission for taking retaliatory measures.
India is continuously listed under the priority watch list in the US Intellectual Property documents that is prepared under the infamous Special 301 law. India is placed along with China and ten other countries. According to the US, countries in the list will be the subject of particularly intense bilateral engagement in future.
A surprising development is US policy on currency management. Here, the US included India under currency practices and macroeconomic policies monitoring list along with China, South Korea, Japan etc.
The US also raised objections at the WTO to the export incentives given by India arguing that India doesn’t qualify to provide export incentives allowable for low income developing countries. It stated that India’s GNI per capita income crossed $1000 for three consecutive years and hence the country is not eligible to provide export subsidies. The US objected to five export incentives given by India.
The United States and India trade on WTO terms, as they do not have a bilateral FTA. The United States and India often have opposing stances in the WTO, whose future direction is unclear amid debate over institutional reforms and future negotiations. India objected to the US stand of vetoing the appointment of judges to the WTO’s Dispute Settlement Body. India demanded that US should not block the running of the DSB and this is needed to protect the multilateralism-based governance of global trade. India and 37 other countries made a formal proposal for the appointment of the judges that has been blocked by the US. The US demanded changes in the functioning of the Appellate Body and demanded an amendment to the existing rule which allows judges to continue cases assigned to them before their terms ended.
Currently the United States and India are holding negotiations to address bilateral trade frictions. They reportedly are discussing a deal for U.S. reinstatement of GSP for India in exchange for certain market access commitments from India. Both are understood to have resolved most of the important trade issues, thus paving the way for an ‘initial trade package’ wherein the two countries are looking for an equitable market access.
However it would be unrealistic to hope that the United States and India might suddenly work together multilaterally on trade, which makes the bilateral trade relationship even more essential for resolving specific trade problems and generating productive dialogue going forward. Yes, the value of US-India bilateral trade and cross-border investments continues to grow—but this part of the relationship between the US and India remains unstable. It’s threatened by a range of risks, including regulatory trends that restrict economic integration and the threat of economic sanctions over India’s defense trade with Russia.
To shift toward stability, Washington and New Delhi will need to articulate a joint vision for a deeper, broader, and more integrated economic relationship