MAINS Current Affairs includes India–Greece Bilateral Ties & India’s Net-Zero Pathway: Ambition, Investment and Reform

International Relations

1. India–Greece Bilateral Ties

Context

India’s Defence Minister held bilateral discussions with his Greek counterpart in New Delhi. Both sides reaffirmed that the India–Greece Strategic Partnership rests on shared principles of peace, stability, sovereignty, and mutual respect.

Recent Developments

• A Joint Declaration of Intent was signed to deepen defence industrial collaboration, laying the foundation for a five-year roadmap.
• A Bilateral Military Cooperation Plan for 2026 was exchanged to structure armed forces engagements and joint activities.

India–Greece Relations: Key Dimensions

Political Relations

• India and Greece have traditionally maintained cordial ties, including mutual support at forums such as the United Nations.
• Bilateral ties were elevated to a Strategic Partnership in 2023 during Prime Minister Modi’s visit to Greece. 

Defence Cooperation

• Regular naval interactions in the Mediterranean.
• Participation in multinational air exercises such as INIOCHOS-23, INIOCHOS-24 and INIOCHOS-25.
• Notably, after India’s 1998 Pokhran nuclear tests, Greece signed a defence cooperation MoU despite wider European criticism.
• Opportunities for co-production and technology transfer are being explored under India’s Make in India 

Economic Engagement

• Bilateral trade stood at approximately US$ 2 billion (2022-23), with a target to double it by 2030.
• Tourism forms nearly 25% of Greece’s GDP, and the country is gaining popularity among Indian travellers.

Connectivity & Geostrategic Value

• Greece’s strategic location in the Eastern Mediterranean and its membership in both the EU and NATO positions it as a potential gateway for India’s access to Europe.

Challenges

1. Limited Public Visibility

• Despite high-level visits, bilateral engagement lacks sustained policy and academic focus. People-to-people ties remain modest.

2. Geographical & Logistical Constraints

• Absence of direct air connectivity and limited maritime linkages restrict economic exchanges.

3. Third-Party Pressures

• Regional dynamics involving Türkiye and broader West Asian geopolitics complicate strategic balancing.
• China’s investments in Greece under the BRI may also limit India’s influence in the Mediterranean.

4. Asymmetry of Priorities

• While Greece supports India’s UNSC aspirations, its foreign policy focus remains anchored in EU, NATO and Mediterranean politics.

Opportunities

Strategic Maritime Convergence

• India’s Indo-Pacific outreach and Greece’s Mediterranean positioning create complementary geostrategic potential. Greek ports could serve as entry points under the India–Middle East–Europe Economic Corridor (IMEC).

Multipolar Alignment

• Both countries advocate strategic autonomy and a rules-based order, enabling convergence on sovereignty, counter-terrorism and multilateral reforms.

Multilateral Support

• Greece has consistently backed India’s bid for a permanent seat at the UN Security Council, providing scope for coordinated diplomacy.

Way Forward

• Initiate an India–Greece 2+2 Dialogue (Foreign and Defence Ministers) to institutionalise strategic coordination.
• Strengthen maritime and energy partnerships, leveraging ports like Alexandroupolis and Thessaloniki under IMEC.
• Promote collaboration in renewable energy, green hydrogen and sustainable infrastructure aligned with EU climate goals.
• Develop a long-term roadmap ensuring continuity beyond political cycles.

Conclusion

Over the past two years, India–Greece ties have advanced significantly, culminating in a Strategic Partnership. As India diversifies its engagement in the Mediterranean region, Greece offers both geopolitical relevance and economic opportunity. With sustained institutional efforts, the partnership can expand further across defence, trade, connectivity and global governance.

Environment

2. India’s Net-Zero Pathway: Ambition, Investment and Reform

Context: According to NITI Aayog’s report “Scenarios Towards Viksit Bharat @2047 and Net Zero”, India can attain net-zero emissions by 2070 while simultaneously emerging as a developed nation by 2047. However, this dual objective demands large-scale financial mobilisation and deep structural reforms across sectors.

Understanding Net Zero

Net zero refers to balancing greenhouse gas (GHG) emissions with their removal from the atmosphere over a defined period.

It is achieved through:

1. Emission Reduction

• Transition from fossil fuels to renewable energy
• Improving energy efficiency
• Electrifying transport and industrial processes
• Deploying cleaner production technologies

2. Emission Removal

• Natural carbon sinks such as forests, soils and wetlands
• Technological solutions like carbon capture, utilisation and storage (CCUS)

The approach covers all major greenhouse gases including CO₂, methane and nitrous oxide, requiring economy-wide decarbonisation.

Significance of Net Zero

• Essential to limit global warming to 5–2°C under the Paris Agreement.
• Reduces risks from climate change such as extreme weather and sea-level rise.
• Drives innovation, green jobs and sustainable economic transformation.

Major Concerns Highlighted by NITI Aayog

1. Massive Financing Requirement

• Estimated investment need: $22.7 trillion by 2070.
• Funding gap: $6.53 trillion, even after domestic mobilisation.
• Heavy reliance on international climate finance poses uncertainties regarding scale, timing and conditions.

2. Low Current Investment

• Present climate finance flows (~$135 billion annually) are insufficient.
• Clean energy investments lag behind projected energy demand growth.

3. Power Sector Transition Risks

• Renewable capacity must expand to 6,500–7,000 GW.
• Grid stability, storage, and transmission infrastructure remain major challenges.
• Continued coal use for energy security complicates decarbonisation.

4. Rising Energy Demand

• Increased demand from cooling, industry, and data centres may offset efficiency improvements.
• Cooling demand alone is a significant driver of electricity consumption.

5. Industrial Technology Gaps

• Hard-to-abate sectors depend on green hydrogen and CCUS, which remain costly and immature.

6. Critical Mineral Dependence

• Transition increases reliance on lithium, copper and nickel.
• Risks include import dependency, supply concentration and price volatility.

7. Financial Sector Limitations

• Shallow corporate bond markets and limited financialisation of savings restrict capital mobilisation.
• Absence of a dedicated green finance institution weakens coordinated investment deployment.

8. Policy Coordination Challenges

• Long-term policy certainty, inter-sectoral coordination and enforcement are critical.
• Delays in reform could escalate costs.

Key Recommendations

1. Establish a National Green Finance Institution

• A specialised body to mobilise and de-risk large-scale climate investments and attract global capital.

2. Mobilise Global Climate Finance

• Developed countries should bridge the $6.53 trillion gap.
• Strengthen India’s integration with international capital markets.

3. Deepen Domestic Financial Markets

• Expand corporate bond market from ~16% to ~30% of GDP by 2070.
• Increase financialisation of household savings to 75%.

4. Scale Renewable Energy

• Achieve 6,500–7,000 GW renewable capacity.
• Invest in battery storage and pumped hydro systems.

5. Promote Electrification

• Electrification to anchor decarbonisation.
• Target over 70% electrification in road transport.

6. Enhance Demand-Side Management

• Tighten appliance and building efficiency standards.
• Encourage behavioural shifts to manage cooling demand.

7. Decarbonise Industry

• Improve efficiency and promote circular economy models.
• Fast-track green hydrogen and CCUS adoption.

8. Secure Critical Minerals

• Expand domestic exploration and recycling.
• Diversify import sources.

9. Maintain Energy Security

• Use coal as a transitional fuel while expanding renewables and nuclear power.

Conclusion

NITI Aayog’s assessment indicates that India’s net-zero goal is attainable but hinges on bold domestic reforms and substantial financial support from developed nations. Coordinated action across energy, finance, industry and international cooperation will determine whether India can successfully combine climate ambition with economic advancement.

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