News of the Day

1. PM Modi, Saudi Crown Prince speak over phone; discuss bilateral, multilateral issues
2. “PM Modi, President Biden to discuss Indo-Pacific, elevate …”: White House
3. Manipur: No violence in last 48 hrs; MHA cleared Rs 101.75-cr relief package: Security advisor
4. Agni Prime–next generation nuclear missile–set to be inducted into India’s arsenal
5. “Not Good For Ties”: India To Canada On Event Disrespecting Indira Gandhi

What Else

6. NATO template doesn’t apply to India, says foreign minister Jaishankar
7. 2 coaches of train derail near Coonoor in Tamil Nadu, none injured
8. President Murmu highlights India-Serbia trade and investment potential at Business Forum
9. RBI keeps policy repo rate unchanged as inflation softens
10. Pakistan: Rs 6tr deficit budget to be unveiled today
11. Pakistan, Turkmenistan ink JIP for TAPI
12. Pakistan: Populated by PTI defectors, Jahangir Tareen launches ‘Istihkam-e-Pakistan Party’
13. US feels pressure to respond to China’s expanding nuclear capability: senior Pentagon official
14. US House panel reviewing university with Pentagon contract for ties to Chinese Programs

PM Modi, Saudi Crown Prince speak over phone; discuss bilateral, multilateral issues

• PM Modi on Thu had a telephone exchange with the Crown Prince of Saudia Arabia, Mohammed bin Salman, with both leaders reviewing several bilateral, multilateral and global issues.
• PM Modi also thanked the Saudi Crown Prince for his support during the evacuation of Indian nationals from Sudan via Jeddah.
• “Discussed boosting ties in connectivity, energy, defense, trade & investment, and exchanged views on regional and global issues,” included in his tweet.
• Meanwhile, Crown Prince fully supported India’s ongoing G20 Presidency. (here)
• Saudi Arabia has emerged in recent years as one of India’s key partners in West Asia, especially in defence and energy.
• [It comes a day after, when Blinken met MBS in Saudi and then MBS held phone call with President Putin.]

“PM Modi, President Biden to discuss Indo-Pacific, elevate …”: White House

• During PM Modi’s visit to the US, dialogs between him and President Biden will center around strengthening commitment to a free, open, prosperous, and secure Indo-Pacific.
• The two leaders will also emphasize their shared determination to enhance the strategic technology partnership, with a specific focus on defense, the WH said on Wed.
• PM Modi is scheduled to visit the US on June 22 following an invitation from President Joe Biden and First Lady Jill Biden. (here)
• India and the US held the 1^st Strategic Trade Dialogue with a focused agenda of reviewing existing US export control regulations that affect the development of strategic trade in emerging and critical technologies in Washington DC on Tue.
• Foreign Secy led the Indian delegation while the State Deptt’s Under Secy for political affairs and Commerce Deptt’s Under Secy, industry, and Security led the US side.
• In a statement after the talks, the Indian side said that the dialogue “both govts can facilitate the development and trade of technologies in critical domains such as semi-conductors, space, telecom, quantum, AI, defense, biotech and others”. (here)

Manipur: No violence in last 48 hrs; MHA cleared Rs 101.75-cr relief package: Security advisor

• The situation remained peaceful and under control as no incident of violence was reported in the last 48 hours in the state, Security Advisor to the govt said on Thu.
• To provide relief to the displaced people of Manipur, Singh said the Ministry of Home Affairs has approved a relief package worth Rs 101.75 crore.
• The MHA’s approval of the relief package for the displaced in Manipur followed Union Home Minister Amit Shah’s direction to the state to send a request for such a package.
• As per Advisor, a total of 27 arms, 245 ammunition, and 41 bombs in Porompat PS and 1 arm and 2 bombs in Bishnupur have been recovered during the past 24 hours. (here)
• Security forces including Indian Army and Assam Rifles on Wed launched joint combing operations in Manipur to recover arms looted by mobs from police stations and govt armories of the ethnic violence-hit state. (here)

Agni Prime–next generation nuclear missile–set to be inducted into India’s arsenal

• The 2,000km range Agni Prime, the next–gen ballistic nuclear missile that covers all critical cities in Pakistan, has cleared all tests and is set to be inducted into the arsenal.
• The Agni P, initially named Agni-1P (weight 50% of Agni 3), was successfully flight-tested by the Defence Research Org. from off the coast of Odisha on Wed at 7.30 pm.
• This was the first pre-induction night launch conducted by the users after 3 successful developmental trials of the missile, validating the accuracy and reliability of the system.
• The Ministry said that range instrumentation like radar, telemetry, and electro–optical tracking systems, including 2 down-range ships, at the terminal point to capture flight data covering the entire trajectory of the vehicle.
• Features: Unlike the other nuclear missiles in the arsenal, Agni P comes with its unique technology, giving it more accuracy while making it difficult to intercept.
• It comes with new composites, propulsion systems, innovative guidance, and control mechanisms, besides the latest navigation systems.
• The missile will add to the array of ballistic nuclear missiles in India’s arsenal. (here)

“Not Good For Ties”: India To Canada On Event Disrespecting Indira Gandhi

• A tableau celebrating the assassination of former PM Indira Gandhi by her Sikh bodyguards was paraded in Brampton on Jun 4^th.
• India on Thu warned Canada against giving space to separatists and extremist elements, saying it was not good for the bilateral ties, 4 days later, when the video floated.
• External Affairs Minister S Jaishankar said he has a similar message to the UK and Australia against allowing pro-Khalistani elements to operate from their territories.
• On the Brampton, he said, “…the space that Canada has continuously and frankly, we are at a loss to understand other than the requirements of vote bank politics, why anybody would do this.”
• On the issue of around 700 Indian students facing deportation from Canada due to fraudulent admissions, Dr. Jaishankar said that India is in touch with Canada over it.
• Asked about reports of the Canadian NSA criticizing India for commenting on Canada’s internal matter, he used a Hindi phrase, “The phrase that came to mind is a Hindi phrase which is ‘Ulta Chor Kotwal Ko Date’ (the pot calling the kettle black)” [see Jun 6^th letter]
• Canadian High Commissioner in India tweeted that there is no place in Canada for “hate or for the glorification of violence“.
• The Congress also asked why PM Modi has not spoken to his counterpart and why the Canadian envoy was not summoned to lodge a strong protest over the issue. (here)
• In a clear message to Beijing, EAM described as unfounded any expectation that it will normalize its ties with China when the border situation is not normal. (here)
• Jaishankar effectively brings an end to rumors that the Ukrainian President may get the opportunity to address the G20 countries during the summit. (here)

NATO template doesn’t apply to India, says foreign minister Jaishankar

• Jaishankar on Thu categorically ruled out India’s chances of becoming a member of the West-led NATO- Minister said the military alliance is not suitable for India.
• “NATO template doesn’t apply to India,” Jaishankar said when asked about a recommendation by a US House panel to include New Delhi in NATO.
• The talk about including India in the 30-member military alliance gained prominence recently following endorsement from the US Congress on CCP to add New Delhi.
• This comes almost a month before PM Modi’s scheduled visit to the US. The suggestion was made to win the “strategic competition with the Chinese Communist Party”. (here)

2 coaches of train derail near Coonoor in Tamil Nadu, none injured

• Two coaches of a train heading to Mettupalayam from Ooty derailed on Thu near Tamil Nadu’s Coonoor area.
• So far, there have been no reports of any passengers getting injured in the incident.
• This comes a few days after the triple-train crash in Odisha’s Balasore district which killed at least 288 people and injured 1,000 more. (here)
• Major train accident averted in Bhadrak: Another major train accident in Bhadrak district could have now hogged headlines.
• There was a boulder stuck in the middle of the interlock at Manjuri Road station. (here)
• Fire reported in a express train in India’s eastern state of Odisha. Train resumes journey as fire services personnel bring fire under control.

President Murmu highlights India-Serbia trade and investment potential at Business Forum

• Emphasizing the large potential for India-Serbia trade and investment, President Droupadi Murmu has urged to “take advantage” of the economic partnership between the two countries.
• President Murmu, who is in Serbia in the last leg of her 2-nation visit, was addressing the India-Serbia Business Forum in Belgrade on Thu.
• Murmu was also called on by Serbian PM Ana Brnabic.
• At the outset of her address, she thanked President Aleksander Vucic for making this event possible.
• The President then spoke on the growing digital capability of India with IT parks and electronic cities mushrooming across the country. (here)
• I am aware that Serbia is looking for skilled workers and professionals from overseas, to help meet your workforce requirements.
• I am convinced that Indian talent can be a credible partner in the progress of Serbia.

RBI keeps policy repo rate unchanged as inflation softens

• The Reserve Bank of India’s monetary policy committee unanimously decided to keep the repo rate unchanged at 6.5%, which RBI lends to other banks.
• A consistent decline in inflation (currently at an 18-month low) and its potential for further decline may have prompted to put the brake on the key interest rate again.
• Barring the Apr pause, the RBI raised the repo rate by 250 basis points cumulatively to 6.5% since May 2022 in the fight against inflation.
• India’s retail inflation was above RBI’s 6% target for three consecutive quarters and had managed to fall back to the RBI’s comfort zone only in Nov 2022. (here)
• Indian banks can issue Rupay prepaid Forex cards: RBI Governor: Banks will now be able to issue RuPay Prepaid Forex cards, RBI Governor Das announced on Mon.
• It will expand the reach and acceptance of RuPay cards globally.
• Governor said RuPay Debit and Credit cards issued by banks in India are gaining increased acceptance abroad. (here)

[NEIGHBORHOOD]

Pakistan: Rs 6tr deficit budget to be unveiled today

• A draft of the federal budget with over Rs 6 trillion deficit has been prepared that will be presented in the cabinet on Fri for its approval and later in the day in parliament.
• It carries a proposal of imposing new taxes worth Rs700 billion.
• The govt employees are likely to receive a boost of 30% in their ad hoc relief allowances as well as a 20% hike in pensions.
• It has also been suggested that the medical and conveyance allowance of govt employee should be increased by 100%.
• The fiscal deficit target has been set at 7.7% of the GDP.
• A revenue collection target of Rs 9.2 trillion has been estimated.
• The Federal Board of Revenue (FBR) will be assigned a target of generating revenue at Rs 2.8 trillion, 55% of which will be transferred to the provinces.
• A sum of Rs1.8 trillion (30%) has been proposed for defense. (here)

China, Pakistan, Iran hold first trilateral meeting on counter-terrorism in Beijing: Pak FO

• China, Pakistan, and Iran held their first trilateral meeting on counter-terrorism in Beijing on Wed, a statement issued by the FO said.
• The delegations from the 3 countries held “detailed discussions on the regional security situation, particularly the threat of terrorism faced by the region”.
• Based on the outcome, they decided to institutionalize the trilateral consultations on counter-terrorism and security for which further details would be worked out
• Also, a statement issued by the Chinese foreign ministry said that the 3 countries had “in-depth” exchanges on the regional CT, and decided to hold the meeting regularly.
• At the 5^th Trilateral Foreign Ministers Dialogue in May, had held “productive” discussions on matters of mutual interest, including political meetings, CT, etc. (here)

Pakistan, Turkmenistan ink JIP for TAPI

• Pakistan and Turkmenistan on Thu signed a Joint Implementation Plan in a bid to expedite work on Turkmenistan, Afghanistan, Pakistan, and India gas pipeline project and complete the feasibility of the project at the earliest.
• The JIP was signed by Minister of State for Petroleum Dr. Musadik Malik and State Minister and Head of Turkmen Gaz Maksat Babayev.
• The signing ceremony was witnessed by PM Shehbaz Sharif, senior cabinet officials, representatives from the Petroleum Division, and Inter State Gas Systems Pvt Ltd.
• The accord was signed at the end of a two-day visit to Pakistan by a high-ranking Turkmenistan delegation headed by Babayev.
• The pipeline will transport up to 33 billion m³ of natural gas per year over 30 years.
• The supply source is the Galkynysh gas field in the eastern region of Turkmenistan whereas Pakistan’s off-take will be 1.3 BCFD with a pipeline diameter of 56 inches, a length of 1,849 km. (here)

Pakistan: Populated by PTI defectors, Jahangir Tareen launches ‘Istihkam-e-Pakistan Party’

• Former PTI leader Jahangir Tareen has officially launched his political party called the Istihkam-e-Pakistan Party.
• “We are laying a foundation of a new political party — IeP Party,” announced Tareen at a press conference flanked on Thu.
• Tareen, who is a former close aide of PTI Chief Imran Khan and played a major in the formation of the PTI –led govt in 2018.
• Tareen parted ways with Khan when a money laundering was registered against him during the PTI-led govt. (here)
• Minutes after the launch of a new political party, the PTI rejected the IePP launch, saying that this was not the solution to the prevailing crises in the country. (here)

US feels pressure to respond to China’s expanding nuclear capability: senior Pentagon official

• As China and N Korea dramatically increase their nuclear weapons, the US has come under pressure to respond by modernizing its atomic arsenal and mapping out an expanded nuclear umbrella and contingency planning, a Pentagon official said on Thu.
• China, which has declined to join non-proliferation talks, could have 1,500 nuclear warheads by 2035, up from some 400 managed by the PLA.
• However, its total is still a fraction of the estimated 5,977 held by Russia or the 5,428 held by the US, according to the Stockholm International Peace Research Institute.
• “It’s no secret the PLA is amid a major nuclear modernization,” said Ely Ratner, assistant secretary of defense for Indo-Pacific security affairs. (here)

US House panel reviewing university with Pentagon contract for ties to Chinese Programs

• The chairman of the House select committee on China said in a letter to US Defence Secretary Lloyd Austin on May 31 that you are funding advanced hypersonic weapons-related research at a US university that actively partners with a Chinese university
• Chairman sought more information from the Defence Department regarding the “alarming matter” and “efforts to safeguard sensitive US military research”.
• A department spokesperson said on Thu that the Pentagon would respond to the chairman as “appropriate”.
• Located in upstate New York, Alfred University features a leading school in ceramics, which helped it secure a 5-year research contract last year with the US Army Capabilities Development Command and the Army Research Laboratory.
• Under the agreement, the school is scheduled to receive $13.5 million in federal grants through 2027. (here)