04 April 2025 : The Hindu Editorial Analysis
1. The other space race — the geopolitics of satellite net
(Source – The Hindu, International Edition – Page No. – 8)
| Context |
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India’s Connectivity Challenge and New Partnerships
- Many parts of India still lack fiber optic networks and have limited access to cellular towers.
- Recent partnerships between SpaceX and Indian telecom companies are expected to bring satellite internet to remote regions.
- This development can reshape how we think about digital connectivity, national sovereignty, and economic influence.
Mutual Benefits for All Parties
- For Indian telecom companies, satellite internet helps extend service to remote areas without high infrastructure costs.
- For the satellite provider, India offers a large market and regulatory benefits by collaborating with domestic players.
- These arrangements also help navigate India’s complex rules on foreign technology and data use.
Geopolitical Dimensions of Satellite Internet
- Satellite-based internet is closely linked to national security due to its control over critical communications.
- With the rise of competing constellations like China’s GuoWang, India’s partnership reflects a shift toward aligning with democratic countries in the Indo-Pacific.
- India avoided reliance on authoritarian-controlled systems and opted for partnerships that support a strategic alliance.
Concerns Over Market Monopoly
- SpaceX has launched around 7,000 satellites, giving it dominance in low Earth orbit internet services.
- Competitors like OneWeb have far fewer satellites (less than 650), and other projects like Amazon’s are still developing.
- This concentration raises concerns about reduced competition, pricing power, and over-dependence on a single company.
Framework of Economic Value vs Geopolitical Control
- A “Digital Sovereignty” model offers both profits and control, like China’s GuoWang system.
- “Market Dominance” brings economic value but limited national control, which describes India’s current position.
- India’s own satellite internet systems fall under “Strategic Asset” — high control but low economic value.
- Amazon’s Kuiper represents “Marginal Presence” — limited control and revenue potential.
India’s Strategic Approach and Missed Opportunities
- India is working towards digital sovereignty by developing its own space technologies.
- Partnering with private telecom companies preserves some national control while gaining technological benefits.
- Requiring local data storage and technology transfer can help India in the long term.
- State-run BSNL’s absence is a missed opportunity since it could have balanced strategic control and rural reach.
Challenges and Future of Satellite Internet
- These partnerships may offer a new model for global internet governance with geopolitical dimensions.
- If internet access remains costly, it might widen digital inequality unless pricing models adapt to rural needs.
- Satellite internet also raises global concerns like managing space debris and controlling satellite traffic.
Conclusion
- As space-based networks grow, they will become as important as land-based ones.
- The goal is to achieve widespread internet access without compromising national autonomy or global cooperation.
| Practice Question: How does India’s collaboration with foreign satellite internet providers impact its pursuit of digital sovereignty and control over critical communication infrastructure? (150 Words /10 marks) |
2. Should India reduce tariffs given the U.S.’s moves?
(Source – The Hindu, International Edition – Page No. – 9)
| Topic: GS3 – Indian Economy |
| Context |
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Economists Support Low Tariffs
- Most economists believe that lower tariffs are better for the economy.
- Lower tariffs benefit consumers and improve economic efficiency.
- The harmful effects of tariffs increase when different products have different tariff rates. A simple, uniform tariff structure is preferred.
Efficiency and Consumer Focus
- High tariffs increase the price of goods for consumers.
- For example, a 20% duty on a car raises its price significantly.
- Businesses should survive only if they are globally competitive.
- India should focus on producing what it is good at and import the rest, supporting better use of resources.
Understanding the U.S. Strategy
- The U.S. believes many countries protect their industries, often at the cost of American businesses.
- Imposing tariffs is seen as a strategy to push other countries to lower their own trade barriers.
- However, applying different rules to different countries can harm global trade.
- Traditional mechanisms like the World Trade Organization (WTO) are considered ineffective due to their slow and complex functioning.
Concerns About the WTO
- The WTO allows each country to veto trade agreements, making progress difficult.
- Some countries, including India, have often been seen as obstacles to trade negotiations.
- Actions by the U.S., which accounts for 20-25% of global GDP, could hurt the global trade system.
Non-Tariff Barriers: A Hidden Problem
- Non-tariff barriers are rules and standards that make trade harder.
- These exist in many countries, including India.
- It is often difficult to clearly identify whether a rule is a trade barrier.
- Such barriers include quality benchmarks and sanitary standards.
India’s Way Forward
- India should reduce tariffs gradually across all sectors.
- A clear and long-term plan will help industries adjust and boost investment.
- India could also explore free trade agreements with the U.S., EU, U.K., and Japan to benefit from open trade.
| Practice Question: Examine the implications of rising global tariff tensions on India’s trade policy and evaluate the role of tariff rationalisation in enhancing economic efficiency. (150 Words /10 marks) |
