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Joint Naval Exercise Proposed: EUNAVFOR Operation ATALANTA proposed a joint maritime exercise with the Indian Navy around the end of May 2025.
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Objective: Enhance coordination and maritime cooperation, particularly against piracy and geopolitical instability in the Red Sea.
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Advanced Drills: Proposed drills would go beyond routine PASSEX, including advanced tactical maneuvers, counter-piracy operations, and inter-naval communications training.
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Resurgent Piracy: Piracy off the Horn of Africa saw a resurgence amid Houthi rebel attacks in the Red Sea.
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Operation ATALANTA Background: EU’s counter-piracy mission in the Western Indian Ocean and Red Sea,
launched in 2008, expanded to include protecting WFP vessels, enforcing arms embargo on Somalia, monitoring trafficking, combating IUU fishing, and disrupting illegal charcoal trade. -
Shared Interests: Maintain the Indian Ocean as a “free, open, sustainable and inclusive area free of danger.”
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Coordination Success: Citing the hijacking of MV Ruen as an example of successful coordination with India.
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Indian Navy’s Role: Indian Navy recognised as a major actor in the area for anti-piracy.
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Apprehension of Pirates: Joint anti-piracy efforts led to the apprehension of 70 suspected pirates last year, with the Indian Navy accounting for 44 captures.
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Challenges: The vastness of the Indian Ocean region, necessitating significant assets and robust logistics.
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Europe’s Commitment: Europe is a good long-term partner and should work for keeping this area free and open.
India’s Startup Boom
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Innovation Focus Urged: Commerce and Industry Minister Piyush Goyal calls for Indian startups to move beyond consumer services like grocery delivery and focus on high-tech areas like semiconductors, machine learning, robotics, and AI.
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Startup Ecosystem Size: India has the world’s 3rd largest startup ecosystem with over 1.57 lakh DPIIT-recognized startups (Dec 2024).
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Government Support: Startup India, SISFS, FFS, AIM, CGSS, and MeitY Startup Hub are key initiatives, but SISF may not be providing adequate funding.
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Infrastructure and Economic Challenges: High operational costs, infrastructure gaps, and a segmented demand structure
hinder startup success. Limited R&D spending (0.64% of GDP) is also a factor. -
Funding Issues: Seed funding dipped by 25%, and D2C funding fell by 18% in 2024, with over 5,000 startup closures reported in Maharashtra. More domestic VC investment is needed.
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Exit Concerns: Underperforming IPOs increase investor caution due to high valuations and profitability concerns.
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Collaboration is Key: Industry-institution-academia partnerships (DRDO, ISRO, IITs) are crucial for scaling deep-tech ventures. Outcome-based grants are also needed in India Semiconductor Mission, IndiaAI Mission and National Quantum Mission
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Global Competitiveness: Startups need to develop high-quality, scalable products to compete globally, with a focus on green innovation.
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Talent and Digital Compliance: Investing in AI, ML, and data analytics skills is vital, alongside establishing a unified digital compliance platform to ease regulatory burdens.
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Debate on Innovation: While India has a growing number of startups, questions remain about the depth of innovation and scalability, with deep tech ventures facing high capital requirements.
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Startup India Impact: The Startup India initiative has encouraged many to start ventures, with multiple ministries involved and significant debt capital flowing into startups.
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India vs. China: China’s nationalistic view of technology, closed ecosystem, and higher per capita GDP have contributed to a more mature
startup ecosystem.
Trade Outlook 2025
- Decline in Merchandise Trade: Global merchandise trade is projected to decline by 0.2% in 2025, a sharp contrast from the 2.9% growth in 2024, due to trade tensions.
- Tariff Impact: Reactivation of US reciprocal tariffs could cut global trade growth by 0.6%, and US-China tariff escalation could reduce trade by another 0.8%.
- Modest Services Growth: Global services trade is projected to grow by 4.0% in 2025, slower than expected due to tariff-induced disruptions in goods trade.
- Regional Disparities: North America is expected to face a 12.6% decline in exports. Asia and Europe are projected to see modest trade growth.
- Vulnerable Economies: LDCs are particularly vulnerable to the downturn due to reliance on a narrow range of exports.
- Trade Diversion: US-China trade disruption may cause trade diversion, increasing Chinese exports outside North America and creating opportunities for other suppliers to fill US import gaps.
- Recession Risk: UNCTAD forecasts global growth to slow to 2.3% in 2025, signaling a potential shift toward recession, especially for developing countries.
- India’s Trade Position: India’s rank among merchandise exporters and importers has dropped, with a steady or slightly decreased share of global trade.
- Call for Coordination: UNCTAD urges increased regional and international policy coordination to strengthen global economic resilience amidst rising economic fragmentation.
- Policy Uncertainty: Uncertainty surrounding trade policy, especially the US-China stand-off, acts as a brake on global growth.