Exercise ‘Prachand Shakti’
In a major step towards battlefield modernisation, the Indian Army conducted a powerful military demonstration titled ‘Prachand Shakti’, organised by the Ram Division.
About Exercise Prachand Shakti
🔹 The exercise was conducted by the Indian Army at the Kharga Corps Field Training Area, located in Meerut, Uttar Pradesh.
🔹 The main focus was to showcase the use of disruptive technologies by infantry units in Strike Corps operations, highlighting the Army’s ability to adapt to technological advancements in real battlefield conditions.
🔹 The demonstration also highlighted how the nature of modern warfare is changing — with elements such as drones (UAVs), Artificial Intelligence (AI)-enabled systems, loitering munitions, and automated platforms playing a decisive role.
🔹 The exercise was part of the Indian Army’s ‘Year of Tech Absorption’ initiative, aimed at integrating indigenously developed and advanced technological solutions by civilian innovators into military operations.
European Free Trade Association (EFTA)
Recently, the Union Minister of Commerce and Industry announced that the Free Trade Agreement (FTA) between India and the four-member European group ‘European Free Trade Association’ (EFTA) will be implemented from 1st October.
About EFTA
• EFTA is an intergovernmental organisation, established in 1960 through the Stockholm Convention.
• Objective: To promote free trade and economic integration among its member countries in Europe and globally.
Member Countries
The original seven founding members were: Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the United Kingdom (UK).
• Iceland joined in 1970,
• Finland in 1986,
• Liechtenstein in 1991.
However:
• In 1973, Denmark and the UK joined the European Union (EU),
• In 1986, Portugal joined the EU,
• In 1995, Austria, Finland, and Sweden also joined the EU and exited EFTA.
Currently, EFTA has four member countries:
Iceland, Liechtenstein, Norway, and Switzerland.
These four countries support free trade and global trade liberalisation.
Responsibilities of EFTA
- Management of free trade among EFTA countries.
- EFTA’s participation in the European Economic Area (EEA) – which includes the EU and three EFTA countries (Iceland, Liechtenstein, and Norway; Switzerland is not included).
- Management of EFTA’s global network of Free Trade Agreements (FTAs).
🔄 Difference between EFTA and the EU:
• The EU is a customs union, whereas EFTA is not.
• Therefore, EFTA countries are free to set their own customs tariffs and trade policies with non-EFTA countries.
EFTA’s Free Trade Agreements (FTAs):
- EFTA has signed Free Trade Agreements with over 60 countries and territories worldwide, including the European Union (EU).
EFTA Governance Structure
- Its highest decision-making body is the EFTA Council, which generally meets 8 times a year at the ambassadorial level and twice at the ministerial level.
- Headquarters: Geneva
- The EFTA Secretariat assists the Council and manages the negotiation and operation of FTAs.
EFTA Surveillance Authority (ESA)
- It monitors compliance with EEA rules in Iceland, Liechtenstein, and Norway.
⚖️ EFTA Court
- Located in Luxembourg.
- It resolves disputes related to the implementation and interpretation of the EEA Agreement.
- It functions similarly to the Court of Justice of the European Union (CJEU) but only for EEA-EFTA countries.
India-European Union (EU) Free Trade Agreement
- Significant progress has been made in the 12th round of FTA negotiations between India and the EU.
- The Digital Trade Chapter has been agreed upon in principle, with substantial progress in services and investment.
🖥️ India-EU FTA Talks
Digital Trade Chapter – A Milestone
- Includes cross-border data flows, essential for e-commerce and digital services.
- This will help India’s IT and digital economy expand globally.
🔐 Services and Investment
- EU’s demand: Elimination of discriminatory and disproportionate barriers.
- India’s strength: Its growing IT and financial services sectors could benefit from increased EU investment.
- Services account for over 70% of the EU’s total global FDI.
💾 Cross-Border Data Flow – Strategic and Contested
- India’s stance: Firm on data localisation — focusing on privacy and cyber sovereignty.
- RBI's 2018 guidelines: Mandate that payment data of Indian residents be stored within India.
- UNCTAD’s 2018 report: Highlighted data’s strategic value and supported localisation for development and regulatory oversight.
🌐 Global Examples
- Vietnam and the Philippines have also adopted data localisation to protect their emerging digital sectors.
⚖️ Investment and Dispute Settlement Mechanism
- Significant progress in state-to-state mediation.
- In 2016, India unilaterally terminated several Bilateral Investment Treaties (BITs), raising EU concerns.
- India is now negotiating new investment agreements under a revised legal framework.
- The EU supports the establishment of a Multilateral Investment Court.
✅ Conclusion
The recent progress in the India-EU Free Trade Agreement, particularly in digital trade and investment, marks a historic turning point.
India aims to balance economic integration with policy sovereignty, safeguarding national interests while seizing global trade opportunities — a strategy in line with its broader trade and digital vision.