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Eastern Economic Forum

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• GS Paper 2Bilateral, regional, and global groupings and agreements involving India and/or affecting India’s interests.
• Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
• Tags: #Russia #putin #india #internationalrealtions #easterneconomic Forum #currentaffairs #upsc.

Why in the News?

Russian President Vladimir Putin Lauds PM Modi’s ‘Make In India’ Program in 8^th8th Eastern Economic Forum (EEF) in response to a media query on Russian-made cars.

The Eastern Economic Forum (EEF) is an annual international event hosted in Vladivostok, Russia, aimed at promoting foreign investments in the Russian Far East. Established in 2015 by Russian President Vladimir Putin, the EEF serves as a platform for fostering economic, political, and cultural ties between the Asia Pacific region and Russia. Headquartered in Vladivostok, the forum is organized by the Russian government through the Roscongress Foundation and is held at the Far Eastern Federal University.

Participating Nations

• The EEF facilitates cooperation and relations between Russia and the Asia Pacific region, attracting a diverse group of participants, including representatives from economic, political, and cultural spheres. Notable attendees include regions from Asia Pacific and ASIAN members.
• Key EEF members also include Afghanistan, India, Russia, and Iran, actively participating in discussions and collaborations.

EEF Objectives

• Boost Foreign Direct Investment (FDI) in RFE: The primary goal of the EEF is to attract increased Foreign Direct Investments (FDI) in the Russian Far East (RFE).
• Leverage Abundant Resources: The RFE, covering one-third of Russia’s landmass, boasts abundant natural resources such as fish, oil, natural gas, wood, diamonds, and minerals.
• Population Encouragement: Encouraging migration and employment in the sparsely populated RFE is a key strategy to harness its economic potential.
• Contribute to Russia’s GDP: Despite its wealth, the RFE’s resource potential accounts for only 5% of Russia’s GDP, partly due to staffing challenges in resource procurement and supply.
• Strategic Geographical Location: The RFE’s strategic location serves as a gateway to Asia, enabling Russia to connect with Asian trade routes, a focal point of the Russian government’s development efforts.
• Addressing Economic Challenges: Amid concerns over the Ukraine invasion and resultant economic challenges, Russia looks to partner with China and other Asian powers to mitigate the impact of sanctions and navigate the crisis.
• Formation of International Alliance: The collaboration of countries like Myanmar, Armenia, Russia, and China suggests the formation of an international group aimed at countering sanctions, potentially altering the global economic order.

8th Eastern Economic Forum (EEF)

• The 8th Eastern Economic Forum (EEF) was held in Vladivostok, Russia, from September 10-13, 2023.
• The theme of the forum was “The Asia-Pacific: From Dialogue to Cooperation”.
• The forum discussed a wide range of issues, including trade, investment, infrastructure, and sustainable development.
• The forum also saw the signing of several agreements, including a memorandum of understanding between Russia and India on cooperation in the field of energy.
• The Indian delegation to the forum was led by Minister Sarbananda Sonowal
• India is also interested in developing the Chennai-Vladivostok Maritime Corridor, which would provide a shorter route for trade between India and the Russian Far East.
• The forum was also attended by the Prime Ministers of Mongolia, Singapore, and Vietnam.
• The forum was a success and helped to promote cooperation and investment in the Asia-Pacific region.
• The 9th Eastern Economic Forum will be held in Vladivostok in 2024.

Major Actors in the EEF

• China’s Dominance: China emerges as the most significant player in the Eastern Economic Forum (EEF), driven by its interest in promoting the Chinese Belt and Road Initiative and the Polar Sea Route in the Russian Far East (RFE). Approximately 90% of the total investments in the region come from China.
• South Korea’s Diverse Investments: South Korea engages in a wide range of investments in the RFE, including shipbuilding projects, manufacturing of electrical equipment, gas-liquefying plants, agricultural production, and fisheries.
• Japanese Investments: Japan is another crucial trading partner actively involved in the EEF. In 2017, it invested a substantial $16 billion through 21 projects.

India’s Engagement with Russia’s Far East

• Expanding Influence: India aims to expand its influence in the RFE and offered a substantial $1 billion line of credit in 2019 to develop regional infrastructure.
• Deepening Cooperation: During the forum, Prime Minister Modi expressed India’s readiness to enhance trade, connectivity, and investments in Russia. Focus areas include energy, pharmaceuticals, maritime connectivity, healthcare, tourism, the diamond industry, and the Arctic.

India’s Balance Between EEF and IPEF

• Incomparable Initiatives: The US-led Indo-Pacific Economic Framework for Prosperity (IPEF) and the EEF differ significantly in geographic coverage and partnerships with host countries.
• India’s Commitment: India has demonstrated its commitment to both initiatives despite their differences, highlighting its multifaceted engagement in the international arena.
• Clear Purpose: While India engages in the EEF to deepen ties with Russia and tap into the RFE’s potential, it has also affirmed its support for three of the four pillars of the IPEF, underscoring its strategic objectives.

The Eastern Economic Forum serves as an international platform with the primary objective of enhancing economic relations between nations. This forum has played a pivotal role in bolstering India’s international engagement, particularly in strengthening ties with China, while also contributing to its economic growth through initiatives such as mining, agricultural improvements, and more, facilitated by Russia’s support.

Sources: Economic Times, Zeenews, Forumvostok.

Mains Question:

How has the Eastern Economic Forum contributed to enhancing economic relations between India and other nations, and what role has the ‘Make in India’ initiative played in this context 250 words.