Current Affairs Oct 2018 - Foreign Affairs

1 - India Signs $5 Billion S-400 Triumf Missile Shield Systems Deal

Prime Minister Narendra Modi and Russian President Vladimir Putin have signed a $5 billion deal to procure one of the world's most advanced air-defence systems, namely S-400 Triumf missile shield. The missile system is expected to be delivered to India by 2020.

The S-400 is an upgraded version of the S-300 missile systems. It is manufactured by Almaz-Antey, which has been in service in Russia since 2007.

S-400 Triumf missile is better known as Russia's most advanced long-range surface-to-air missile defence system. In 2014, China became the first foreign buyer to seal a government-to-government deal with Russia to procure the lethal missile system.

Besides the Triumf deal, Mr. Modi and Mr. Putin also signed extensive deals on space cooperation. An Indian monitoring station now will be built nearby the Russian city of Novosibirsk in Siberia.

Highlights of the 19^th annual India-Russia bilateral summit

The 19^th annual India-Russia bilateral summit was held at New Delhi's Hyderabad House.
Russia, India signed a deal for the procurement of S-400 Triumf air defence systems; the deal ignores the American sanction on purchase of arms from Russia.
In this summit, India and Russia are expected to sign (about) 20 bilateral agreements including a deal to purchase four Krivak-class frigates worth USD 2 billion.
In this defence deal, India will be purchasing 200 light utility Ka-226 helicopters for worth USD $1 billion. Out of the 200 Ka-226 helicopters, 60 (most likely) would be built in Russia and transported to India and the rest will be built in India.
In addition to this, Mr. Putin and Mr. Modi also discussed the issue of security challenges in the Afghanistan-Pakistan region; the terrorism threat that emanates from Pakistan and US sanctions on import of Iranian crude oil.

2 - Sahyog-Hop Tac 2018

A joint exercise ‘Sahyog-Hop Tac 2018’ between Vietnam and India was recently held in the Bay of Bengal off the Chennai coast. The exercise saw the participation of Vietnam Coast Guard ship CSB 8001, the Indian vessel 'Sagar Manjusha' - owned by the National Institute of Ocean Technology among other vessels of the Indian Coast Guard.

The exercise was aimed at enhancing cooperation between the two Coast Guards in areas of maritime safety and security.

3 - India and Japan signed Currency Swap Agreement

India and Japan have signed a currency swap agreement worth USD75 billion. The agreement aims to strengthen economic relations between the two countries.

The finance ministry posted on its Twitter handle that “this New Swap Agreement should aid in bringing greater stability to foreign exchange & capital markets in India.” Besides, the facility will serve as a second line of defence for the rupee after the $393.5 billion of foreign exchange reserves that the Reserve Bank of India (RBI) has at its disposal. After this arrangement, India can now acquire dollars from Japan in exchange for rupees.

Highlights of the currency swap agreement

With the help of currency swap, one country can exchange its national currency for that of another or even a third one.
India now can acquire yen or dollars from Japan worth of (up to) USD 75 billion in exchange for rupees.
The exchange rate would be fixed for a transaction.
Foreign investor would have comfort from this arrangement.

4 - Two MoUs signed between India and Uzbekistan

Uzbekistan's President Shavkat Mirziyoyev met Prime Minister Narendra Modi at Hyderabad House in New Delhi and signed two MoUs. The two leaders stressed on expanding trade and investment ties. They also set a target of one billion dollars’ trade by 2020.

17 agreements and MoUs were signed in the fields of law, tourism, military education, agriculture, science and technology, commerce and industry, pharmaceutical, national security and illicit trafficking besides others.