 Hello friends welcome to salespedia current tapas digital library so today we are going to see four topics three on problems just most favorite nation status silk route and foreign trade on January 2019 so this on problems perspective and India Saudi Arabia bilateral relations in mains perspective now let's see the most favorite nation status okay so on February 15 2019 so India has cancer the most favored nation status which is according to Pakistan okay so this came in the backdrop of the pulvama attack in which the Siapoyev Javans were killed okay so this is the news now let's see what is this most favored nation status okay so this most favored nation status was started in the year 1996 under WTO's general agreement on tariffs and trade okay so according to this principle the guard has stressed all the countries to get into this most favored nation status in order to have a free international trade okay so here each and every state must give this mf1 status to other nations so that is the real motive of this mf1 status now so what is here so both India as well as Pakistan are signatory for this most favored nation status okay so in this most favored nation status the recipient of this status must enjoy the same equal authority as well as same equal opportunity like the country which is granting that status so hence if India gives a status to Pakistan it has all the accessibility and opportunity like that of India okay now so India has extended this mf1 status to all the South countries including Pakistan okay as a way back all the South countries has also extended those special status to India except Pakistan okay so under this guard agreement India can withdraw this most favored nation at any time if it wishes okay so initially India has India has actually reviewed this whether to withdraw this most favored nation in during Uri attack so now they have actually withdrew this status okay so what are all the benefits of this most favored nation first it you'll have an equal treatment among all the countries so when you give the most favored nation status it is considered to be the same country which is trading with us so hence we'll have an equal treatment among the countries and that will help to have a stable predictable and reliable as well as competitive international trade so which is a very rash scenario in this present year okay now they'll have the lower tariffs so lower tariffs will make the goods cheaper and it also makes people affordable so this also a benefit of this then free trade so any countries can divert actually then you can create trades and also decreases the trade diversion so that helps to have a free flow of goods as well as services then apart from that we have equal opportunities transparency without discrimination and fair competition so these are the other benefits of this most favored nation status now so withdrawing this most favored nation to Pakistan so what are all the impacts it's going to have so we are exporting the chemicals and other raw materials which are very much important for the Pakistan industries so with this withdrawal of most favored nation status the industries in Pakistan are going to be affected more okay so this is about most favored nation status now let's move on to our next topic silk root okay so the silk root we have to see about the China's influence in China silk root the initial founding of silk root and the present scenario first silk root was formed by the Han Dynasties of China okay Han Dynasties of China so it was started from 130 BC it ended till 1453 AD okay here the trade was used from Asia to other European countries okay only silk is not transported there are many goods like chemicals the gunpowders which was introduced by China is traded the paper which was introduced by China is transmitted to these silk roots but still silk is of more demand in those areas particularly in Rome and Green so hence this root is known as silk root okay now that's the modern world present these imping in the year 2013 has stressed an economic as well as a foreign policy of silk root in order to revive the ancient silk root of China in order to connect the Pacific as well as Indian Ocean countries so this silk root actually covers more than 60 countries in this route okay now what are all they have said okay so here the Silk Road initiative is called as an economic belt initiative it is collectively known as one belt and one road concept that means oboe okay here it has two components one is one belt another one is one road so one belt means it is of the roadways and one road it is about the maritime hence Silk Road covers both land as well as the sea route okay here they have to connect the Pacific Ocean as well as the Indian Ocean so these are the benefits of this Silk Road now what are all the objective of this Silk Road first and foremost so China has to prove that it is having a bigger role in global affairs when it comes to Indian Ocean region as well as an Asian region so hence it is an ambitious project and it is considered to be the largest developmental project economic project conducted by any other countries okay so here oboe is considered to be an economically motivated according to China but apart from economic motivation it also has so many strategic motives in Indian Ocean region as well as Pacific region nearly all our neighbors are actually applauding this initiative and are all their members but India is still not a member and it has not denied its membership to this Silk Road initiative now it also helps to address the domestic needs of the Chinese people okay where the routes covers most of the underdeveloped areas so with this route that underdeveloped areas can also be developed and China is known for its hard power by developing nuclear technologies and other military technologies but with this they are trying to prove that China is also formulating the soft power mechanisms so hence it is also known as China's Marshall Plan okay China's Marshall Plan and they also want to impart a synocentric economic and security region so Indian Ocean must be controlled by China so that is their objectives and moreover they also want to convince that rising of Chinese power is not a threat according to Western concept USA has said that the rising of China is actually a threat to Asia at the region but they need to make it as a negative point so they are proving that we are not up of threatening okay next they also have the People's Liberation Army's movement they can deploy anywhere in Indian Ocean as well as beyond Indian Oceans okay so here first they were focusing on Asia and Europe okay that is the main objectives and it covers more than 60 countries okay here we also have another concern called CPEC which was signed with Pakistan so that actually surpasses the Indian area okay so that will have a strategic access for China in the Arabian Sea okay so these are the objectives of this Silk Route okay now what are all the initiatives taken by India to counter this Silk Route measureship the first one is project Mausam so project Mausam is an initiative of Indian government which wanted to revive the ancient route of ancient trade route of India so it is actually a counter measure for the Silk Route okay the next one Sagar Mala project is nothing but port led development model so port led development model helps to develop our port and also helps to make our defense more applicable to the present scenario and Chabahar port it is a deal between Iran and India surpassing Pakistan so that will have a strategic influence in Arabian Sea surpassing this Guadar port so Guadar port is in Pakistan which has an influence of China but Chabahar port will have influence of India and many other naval ports in Indian Ocean regions like Maldives, Seychilles so that will also have a strongest presence of India in the Indian Ocean regions and also alliances with other member countries like Japan South Korea which are like-minded countries which are facing the same threat of China so these are the initiatives taken by India to counter the Silk Route initiative of China okay so with this I can do this Silk Route topic now we'll move on to our next topic foreign trade on January 2019 so this was a step this is released by Reserve Bank of India on a periodic basis okay now we are going to see the export and import scenario as well as the trade balance of India in the foreign trade okay so it's completely about fashion information so first we'll see an overall export of this Indian trade so here we can see the US dollar has increased from 439.98 billion which is an increase of 9.07 percentage compared to the previous year so export has grown a bit larger as well as the import has also seen a growth of 10.74 percentage okay so overall mercantile as well as the service sector has shown a positive growth in export as well as a positive growth in import sectors okay now this are the picture representation of this export and import areas now we'll move this mercantile so when mercantile we can see an export growth of 3.74 percentage whereas in service sector we can see an increase of just 0.01 percentage compared to the previous year so mercantiles we have lesser amount okay then these are the pictorographic information where some of the export sectors which has shown the positive growth which means engineering goods, gem jewelry, organic inorganic chemicals drugs pharmaceuticals and RMG of all textile so these have shown some positive development in export sector now other goods which shows negative growth in import sectors are petroleum products, transports, pearls, precious stones, vegetable oil and metaphors ore and other minerals that has shown a negative trend in import sector okay so this is about the mercantile as well as some of the export and import goods now we'll move to the service so service has also seen a positive growth of 7.5 percentage in export sector and 12.53 percentage growth in import sector okay so hence now the overall trade balance is we are facing a trade deficit overall like from 75.73 billion dollars to 90.58 billion dollars so hence the trade deficit has increased compared to the previous year so this is about the foreign trade on January 2019 released by RBA so it is completely about the factory information okay so now we'll complete this plums topic and we'll move to our main topic India and Saudi Arabia so why does it news so Saudi Arabian Queen Prince Queen Prince Crown Prince Mohammed Bin Salman is actually visiting India in February 19 and 20 so he had planned for a five Asian nation visits starting from Pakistan China India and then Maldives and Indonesia which was actually postponed now okay so he has planned for a five Asian nation theory so this tour has planned in the backdrop of two intentional incidents happened recently so one is an ambassador called Jamal Khashoggi which was killed in Turkey Embassy of Saudi Arabia so that was a serious issue in international arena where he was brutally murdered where the hands of Mohammed Bin Salman is actually included and other tension one is the Pulverma attack of India it was actually we claim it to be the attack of Pakistan so this two tension areas are there apart from this the Prince is actually visiting Pakistan and then to India okay so this is about the presence scenario now let's see how India and Saudi Arabia are actually integrated bilaterally the first one so India imports more than 80% of oil from outer country okay it actually imports from that the major portion comes from Saudi Arabia so because of this oil import so we are the fourth largest trading partner for Saudi Arabia so this is about the status of India and Saudi Arabia while the Prince coming to India what are the things which are going to be discussed first one India is likely to ask for the cheaper oil prices that is the first one because the opaque countries by which Saudi Arabia is the head is actually charging extra livy on Asian countries it is actually Asian premium we call this Asian premium so for that Asian premium we are paying two to three dollars extra for each barrel of imports okay so now we are going to ask for a cheaper oil prices and we are also want to showcase that opaque is having a preferential terms for US and other European countries so hence India is planning to form a bias forum including China Japan as well as South Korea so this bias forum is also on the cards of India and now they wanted to have a stable energy price mechanism so these are the problems you're going to be discussed during this India Saudi Arabia meeting okay now what are all they have asked now we need an energy cooperation which must be very strong with Saudi Arabia because US has sanctioned against Iran as well as Venezuela okay so Iran and Venezuela so we have to have a strong relationship with Saudi Arabia because we have only six month waiver to trade with Iran and Venezuela okay now Saudi Arabia is also so much interested in investing our India's national investment infrastructure fund which funds for most of the infrastructure projects like engineering's then buildings as well as port like development so India is also stressing Saudi Arabia to invest in India's national investment infrastructure fund okay and they are also focusing on technology agriculture and energies also securities that is defense including counter terrorism okay so these are some of the areas which they are going to discuss in this scenario now even Saudi Arabia is also going to invest in refineries which is a Maharashtra Shatnagiri area along with UAE's investments okay so these are some of the sectors they are going to discuss in these present meeting okay now let's see what all the other things Indian diaspora is actually the largest in the Gulf Cooperation Council so we have a stronger reason to stress for this oil supplies okay then we also have the largest hutch quota to annually to revive the pilgrimage one okay so we have a strongest relationship with Saudi Arabia now what are the things about Saudi Arabia so Saudi Arabia is actually shaping this world with this energy market so this is considered to be the world's third largest energy producing country so hence it has the strongest power and also it is a unique place of the Muslim world headquarters where Mecca and Medina is present in Saudi Arabia and also it also has an influence in all the Middle East activities even in the wars as well as determining its defense positions so Saudi Arabia has the strongest position in Middle East okay now what are all the things we can do okay the first one is initially the Gulf States were mostly focused on America as well as British but now the America as well as the British are moving away from this Gulf States so hence the Gulf States are taking the greater responsibility of managing their regional peacefulness and stability so now what India needs to do so India needs to move away from its bilateral approach in case of Gulf Nations because we have the largest number of the but diaspora living in there and we also have some major stake in Indian Ocean region in where the Yemen attack has also happened in Indian Ocean region so in order to have a regional security as well as peace so India needs to move away from bilateral approach and it also need to have an integrated regional approach so that the ever-rising problems of Middle East can be solved as well as in the Indian Ocean regions so hence what we need to do is we need to move from a bilateral approach towards an integrated regional strategy in order to secure India's positions so these are the way forward for India's and Saudi Arabia's relationship okay so with this I conclude today's topic so thank you so please subscribe like and share our comment okay thank you