Table of Contents

1. POLITY AND GOVERNANCE ________________4 3.9.1. India Secures 14.3% of Global Remittances: World
1.1. Cooperatives ____________________________ 4 Bank________________________________________ 57
1.2. 10 Years of NITI Aayog ____________________ 7 3.9.2. India Remains the Fastest-Growing Economy: Word
Bank________________________________________ 57
1.3 Lokpal and Lokayukta _____________________ 9
3.9.3. Government to Borrow Rs 3.94 lakh Crore via
1.4. Election Commission of India (ECI) _________ 11 Treasury Bills (T-bills) __________________________ 58
1.5. Internet Shutdown ______________________ 14 3.9.4. RBI Releases List Of NBFCs In The Upper Layer
1.6. News in Shorts _________________________ 15 (NBFC-UL) For 2024-25 _________________________ 59
1.6.1. Right to Access to Justice Not Absolute: Supreme 3.9.5. BAANKNET (Bank Asset Auction Network) ____ 59
Court _______________________________________ 15 3.9.6. Prepaid Payment Instruments (PPI) __________ 60
1.6.2. Designing Innovative Solutions for Holistic Access 3.9.7. Role Of Trade in Reducing Food Insecurity ____ 60
to Justice (DISHA) Scheme ______________________ 16 3.9.8. Revised Open Market Sale Scheme (Domestic)
1.6.3. Amendment to Prison Manual and Correctional Policy for 2024-25 _____________________________ 61
Services Act __________________________________ 16 3.9.9. Project VISTAAR _________________________ 61
1.6.4. Doctrine of Merger _______________________ 16 3.9.10. Logistics Ease Across Different States (LEADS)
1.6.5. State Consent for CBI _____________________ 17 2024’ Report Released _________________________ 61
1.6.6. Panchayat Se Parliament 2.0 _______________ 17 3.9.11. Entity Locker ___________________________ 62
1.6.7. Viksit Panchayat Karmayogi’ Initiative ________ 17 3.9.12. Z Morh Tunnel (Sonamarg Tunnel) _________ 62
1.6.8. Pay Commission _________________________ 17 3.6.13. Banihal Bypass _________________________ 62
1.6.9. Edelman Trust Barometer __________________ 18 3.9.14. Anji Khad Bridge ________________________ 63
2. INTERNATIONAL RELATIONS ______________19 4. SECURITY _____________________________ 64
2.1. USA's Protectionist Measures _____________ 19 4.1. INTERPOL _____________________________ 64
2.2. Minilateralism and Multilateralism _________ 21 4.2. Draft Digital Personal Data Protection (DPDP)
2.3. Role of Institutions in Climate Negotiations __ 23 Rules 2025 ________________________________ 66
2.4. World Health Organization (WHO) _________ 24 4.3. Coastal Security Scheme _________________ 69
2.5. Indus Water Treaty______________________ 26 4.4. Telecommunications (Procedures and
2.6. AUKUS ________________________________ 28 Safeguards for Lawful Interception of Messages)
2.7. QUAD Grouping ________________________ 29 Rules, 2024________________________________ 70
2.8. Shift in India–Afghanistan Relations ________ 32 4.5. News in Shorts _________________________ 72
2.9. India-European Union (EU) Relations _______ 33 4.5.1. Ministry of Defense declares 2025 as ‘Year of
2.10. India-Indonesia Relations _______________ 36 Reforms’ ____________________________________ 72
2.11. News in Shorts ________________________ 38 4.5.2. Frontier Technologies in Warfare ___________ 72
2.11.1. 60 Years of India-Singapore Bilateral Relations 38 4.5.3. Indian Cybercrime Coordination Centre ______ 73
2.11.2. BRICS _________________________________ 39 4.5.4. Pig-Butchering Scam ______________________ 74
2.11.3. Birthright Citizenship In US ________________ 39 4.5.5. Naval Combatants – INS Surat, INS Nilgiri and INS
2.11.4. World’s Largest Hydropower Dam on Vaghsheer commissioned_______________________ 74
Brahmaputra _________________________________ 40 4.5.6. Anti-Tank Guided Missile (ATGM)- Nag Mk 2 __ 74
2.11.5. Pangsau Pass ___________________________ 41 4.5.7. Bhargavastra ____________________________ 75
2.11.6. Philadelphi Corridor _____________________ 41 4.5.8. Pralay missile and Pinaka rocket ____________ 75
2.11.7. Gulf of Mexico __________________________ 41 4.5.9. Eurodrone ______________________________ 75
2.11.8. Panama Canal __________________________ 42 4.5.10. SANJAY System _________________________ 75
3. ECONOMY _____________________________43 4.5.11. Exercises in News _______________________ 76
3.1. Rupee Depreciation _____________________ 43 5. ENVIRONMENT ________________________ 77
3.2. Internationalization of Rupee _____________ 44 5.1. Annual Ground Water Quality Report 2024 __ 77
3.3. WPI Base Year Revision __________________ 46 5.2. 150 years of India Meteorological Department
3.4. Fiscal Health Index Report 2025 ___________ 48 (IMD) ____________________________________ 80
3.5. Household Consumption Expenditure Survey 5.3. Indigenous Hydrogen Train Engine _________ 82
(HCES), 2023-24 ____________________________ 50 5.4. Thermal Power Plants and Sulphur dioxide __ 84
3.6. Central Bank Digital Currency _____________ 51 5.5. National Turmeric Board _________________ 86
3.7. India's Digital Economy __________________ 53 5.6. News in Shorts _________________________ 87
3.8. ‘Cashless Treatment’ Scheme for Road Accident 5.6.1. International Year of Glaciers’ Preservation ___ 87
Victims ___________________________________ 55 5.6.2. Yala Glacier in Himalayas Projected to Vanish by
2040s _______________________________________ 87
3.9. News in Shorts _________________________ 57

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2. INTERNATIONAL RELATIONS
2.1. USA'S PROTECTIONIST MEASURES
Why in the news?
The USA, upholding its ‘America First Policy,’ has decided to exit from key global institutions like the World Health
Organization (WHO), Paris agreement and the International Criminal Court (ICC).
More on the News
• USA had earlier exited Paris Agreement in 2017, but rejoined in 2021 and initiated process of withdrawal from WHO
in 2020, reversed in 2021.
• USA is also engaged in a tariff war and has threatened to impose high tariffs on imports from trade surplus
countries to reduce trade deficit of the USA.
o In 2023, the US trade deficit was at $1.05 trillion, with 4 countries (China, Mexico, Canada and EU) accounting
for almost 80% of the trade deficit.
• These protectionist measures are being promoted to benefit American economy, upholding the idea of economic
nationalism,

About Protectionism
• Protectionist policies also allow the government to protect developing domestic industries from established
foreign competitors.
• Types of Protectionism: Tariffs (taxes/duties on imports), Quotas (restrictions on volume of imports), Subsidies
(negative taxes give to domestic producers).
Advantages Disadvantages
Promotion of local industries Hampers technological advancement
Increased opportunities to increase market No incentive for domestic producers to innovate and
competitiveness. E.g. for MSMEs invest in R&D due to lack of global competition
Maintains trade balance and reduces trade deficits Limits choice and increased cost for customers
E.g. Protects against dumping of cheap goods Due to restricted market access for global firms
Higher employment opportunities for local workforce Misallocation of resources
Due to restrictions on immigrants Affects efficiency of production and labour due to
lack of measures for innovation.
Equitable competitiveness Ineffectiveness of tariffs
Easier for developing countries to compete with advanced May harm the industries in the long-term due to
developed countries with a free market and high wages interconnectedness of global supply chains

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Potential Impact of these Measures
Impact on Multilateralism/ Multilateral Institutions
• Weakening of Global international order: USA’s ‘sovereigntist view of international law’ accelerates the
weakening of the normative authority of multilateral institutions.
o ‘Sovereigntist view of international law’ assumes that multilateral treaties restrict a countries sovereign
authority.
• Threat to global research: US has ceased negotiations on the WHO Pandemic Agreement and the amendments to
the International Health Regulations.
o This risks success of many critical global research programmes for diseases and vaccine development as
well as excludes the US from global information databases on diseases.
• Funding: USA is the highest contributor to funding various global institutions, impacting developmental and
emergency works.
o E.g., U.S. has historically been the single largest contributor to WHO with total contributions being 15.6%
WHO’s total revenue in the 2022-2023.
• Environmental impact: US International Climate Finance Plan, established to channel funds through multilateral
and bilateral institutions to help developing countries’ climate challenges has been scrapped.
o This is against the principle of Common but Differentiated Responsibilities (CBDR).
• Global Trade and Supply Chains: USA’s America First Trade Policy with the use of tariffs and potential import
restrictions disrupts global supply chains, increases uncertainty in trade flows, impacts investor confidence and
potentially disregards WTO rules.
• Global South: The Global South, with lack of adequate resources, rely on multilateral institutions to ensure
fairness and justice.
o US Agency for International Development (USAID) funded climate-resilient agriculture projects in Tanzania
impacted due to fund cuts, impacting yield productivity.
Impact on India-US cooperation
Positive
• Trade promotion: India can be seen as alternative manufacturing destination amidst the US-China trade tensions.
E.g. IT services, Electronics and pharmaceuticals.
o US Department of Commerce’s Bureau of Industry and Security removed 3 Indian organisations from its Entity
List (list of organizations subject to export restrictions and licensing requirements)
• Indo-Pacific: Based on the “Pivot to Asia” strategy, the USA has promoted strategic partnership with India in the
Indo-Pacific region intended to counter China’s geopolitical influence.
o E.g. QUAD, India Middle East Economic Corridor (IMEC), Indo-Pacific Economic Framework (IPEF) etc.
• Technology: Knowledge sharing and technology transfer through initiatives like US-India Initiative on Critical and
Emerging Technology (iCET) and civil nuclear energy partnership.
Negative
• Trade competition: Indian exporters may face heightened
competition in third markets where Chinese goods are
diverted and redirected due to US tariffs.
o E.g. Indian textile exporters competing with Chinese
goods in Southeast Asia.
• Tariffs on Indian Trade: USA has criticized India’s trade
policies, highlighting high tariffs on imports (e.g. Harley
Davidson motorcycles) and may impose high tariffs on
Indian exports (E.g. steel, automobiles etc.).
o US has a trade deficit of $45.7 billion with India.
• Immigration Policies: Tighter immigration policies like H1-B visa restrictions, banning birthright citizenship etc.
may impact Indian tech workers and diaspora in the USA.
o India supplies ~70% of H1-B workers annually.

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• USA’s push for domestic production: Policy of ‘Buy American’ may impact Indian exports due to restricted market
access and impact Make in India initiative, PLI Scheme etc.
Conclusion
In the context of changing global economic landscape, India’s ability to navigate the complexities of trade wars,
financial realignments, and emerging blocs will be pivotal. Indian policies should focus on strengthening bilateral trade
agreements, diversifying export markets, and championing reforms in multilateral institutions. India’s
geoeconomic success will depend on its ability to balance collaboration with strategic autonomy in a rapidly changing
global landscape.

2.2. MINILATERALISM AND MULTILATERALISM

Why in the news?
Recent adoption of Cybercrime Treaty by UN General Assembly is not only a breakthrough for a fractured cyber
governance system but also a major victory for multilateralism.
UN Cybercrime treaty and resurgence of Multilateralism
• In recent times, a number of factors like the rise of nationalism, populism, economic inequalities, great power
competition is leading to the fall of liberal world order and multilateralism.
o Also, there has been a growing access to internet, rising cybercrime, inadequacy of liberal institutions, broken
international dialogue all of which has caused erosion of multilateralism.
• The above factors have led to the emergence of short-term strategic alliances and minilaterals, involving small
groups of nations collaborating to pursue mutual goals.
• The process of adoption of UN Cybercrime Treaty, despite diverging national interests, is therefore a major triumph
for multilateralism.
o The UN Cybercrime Treaty relied heavily on collective efforts to tackle the global and interconnected nature of
cybercrime.
About Multilateralism and Minilateralism
• Multilateralism: It is defined as opposite to bilateralism and unilateralism involving cooperation between 3 or more
states adhering to a common issue based on shared system of norms and values.
o Emergence: Most of the multilateral institutions emerged after the World War II. E.g., United Nations,
International Monetary Fund, World Bank, General Agreement on Tariffs and Trade (GATT), NATO, etc.
• Minilateralism: It is an informal, flexible, and voluntary framework with varied situational interests, shared values
or relevant capabilities. It allows nations to collaborate on critical issues without holding the same worldview.
o Emergence: It is not a new idea and coexisted in global governance since 1945.
 It was pursued in disguise between major powers and led to the creation of multilateral institutions.
 E.g., GATT originated as minilateral negotiations between major powers, and was subsequently
multilateralised by adding other countries.
Comparison between Minilateralism and Multilateralism
Parameters Minilateralism Multilateralism
Actors • Lesser participants, 3 or 4. • Collaboration among multiple countries
Involved
Formality • Ad hoc arrangements, voluntary outcomes and • Formal, institutionalized and adherence
commitments. to rules and norms.
Target • Initiatives to address a specific threat, contingency • Deal with broader global issues.
or security issue.
Level of • Only involve the critical mass of members. • Broad and Inclusive approach.
Engagement

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 Example • Regional Comprehensive Economic Partnership • WTO is multilateral framework for
(RCEP), free trade agreement among Asia-Pacific international trade regulation.
countries is a minilateral framework. • Others: United Nations and its agencies,
• Others: Trilateral framework between UAE, India, World Bank, IMF, etc.
and France, QUAD,
Factors Responsible for the shift towards Minilateralism
• Rising multipolarity: Emergence of multiple centres of power like the rise of China, Russia has challenged the
multilateral institutions established under USA’s leadership.
• Strategic Alliance Vs Global Cooperation: Strategic alliances facilitate creation of issue-specific partnership with
like minded countries.
o E.g., QUAD, India-Japan-USA trilateral, etc. foster
greater defence and security cooperation in the new
regional theatres like Indo-Pacific.
• Easy Regulation: Informal mechanisms used in
minilateral institutions such as the Basel Committee and
the Financial Stability Board offer advantages like the
bottom up approach, flexibility, in regulation, etc.
• Decision Making: Large organisations having formal
institutional structure, international bureaucracies, and
heterogenous membership often delays decision making.
o Agile and adaptable approach of minilateralism helped in the quick culmination of “Partnership for the Future”
to I2U2 (India, Israel, UAE, USA).
• Stagnation in reforms: The membership of United Nations Security Council does not depict the present realities,
stalemate in WTO Doha rounds, etc.
• Perceived failure of Multilateralism: To achieve global cooperation on the most pertinent issues faced by the
international community.
o Recent CoP-29 of the UNFCCC highlighted the issue of climate finance and climate justice.
Need for co-existence of Minilateralism and Mulitlateralism
• Minilateralism as building blocks of Multilateralism: It could supplement the inadequacies of existing
multilateralism without delegitimizing it.
o E.g., strength of minilateralism lies in its ability to achieve concrete results timely, hence it could act as a
catalyst for operationalization of multilateral-level dialogue.
• Streamlining Negotiations: Minilateral lay the groundwork for political dialogue and promote confidence-
building between key partners, before being taken up at the multilateral platforms.
o Regional groups like European Union (EU) and Association of Southeast Asian Nations (ASEAN), etc., can
arrive at informal consensus with high possibility of formal consensus.
• Accelerate the pace in multilateral negotiations: E.g., Paris negotiations of 2015 received an impetus with the
finalisation of US- China agreement (major emitters) on reducing emissions.
• Filling gaps: Multilateral institutions suffer from issues like pending reforms, while minilateral institutions can suffer
from power imbalance and may lead to several conflicting agreements.
o Synergy between the two can help overcome the above challenges.
• Dealing with Global Challenges: Like climate change, terrorism, etc., require enhanced forms of co-operation at
regional and global scale.
• Rule-Based Framework: Multilateral organisations help build consensus towards legally binding treaties like UN
Convention on the Law of the Sea, offering a rules-based framework for minilateral cooperation.
Conclusion
While minilaterals cannot replace multilaterals, they can supplement the work of multilateral organisations by providing
a platform for diplomacy, confidence-building, and cooperation. Example, in case of climate action, minilaterals can
provide an inclusive platform for interacting with sub-national and non-government actors to formulate innovative
solutions for global warming.

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2.3. ROLE OF INSTITUTIONS IN CLIMATE NEGOTIATIONS
Why in the news?
Recent CoP29 of the UNFCCC in Baku, Azerbaijan witnessed a rift on the issue of climate finance between the
developed and the developing countries questioning the efficacy of multilateral institution in provisioning of global
common good.
Role of Institutions in advancing climate negotiations
• Legitimacy and Credibility: Institutions provide legitimacy to climate negotiations through structured frameworks,
membership inclusivity, confidence-building measures, and binding obligations.
• Building Trust: Well-designed institutional frameworks foster trust among nations through transparency, structured
interactions, and ideological balance.
• Addressing Climate Corruption: Institutions can help curb environmental crimes such as illegal logging,
unregulated coal burning, and deforestation, which contribute significantly to greenhouse gas emissions.
• Supporting implementation in Global South: Institutions through its sets of rules, formal or informal procedures
play a crucial role in implementing, sustaining, and enhancing climate change mitigation in the Global South.
• Flexibility to ensure compliance: It is done by avoiding overly stringent standards, offering discretion in
implementation; promoting domestic interests, etc.
• Promoting Climate Justice: Institutions provide a platform to the vulnerable and small island developing states to
forward their grievances.
Challenges in multilateral Climate Negotiations
• Limitations of UNFCCC: Under the Paris
Agreement and its rulebook, all countries are now
on their own to mitigate, adapt and pay for the
costs of climate impacts reducing UNFCCC to
merely a platform to collect, synthesize and
disseminate information.
• Unresolved Issue of Climate Justice: The
UNFCCC has lacked in its ability to provide
dependable assurances to developing countries on
climate finance from developed countries.
• Non-Recognition to the Problem of Climate
Change: Major countries like USA responsible for
large emissions do not recognise the problems of
climate change as evident from the recent
withdrawal of USA from Paris Agreement.
• Rising Emissions: Despite Kyoto Protocol, major
agreements like Cancun and Paris, UNFCCC has little results with the increased levels of emissions.
Way forward on promoting effective institutional frameworks for Climate Negotiations
• Role of Minilateralism: A polycentric and multi-level governance system, involving smaller, interest-based
coalitions, can be more effective than large multilateral negotiations.
o Examples: Climate Vulnerable Forum (CVF) and the G20 Climate and Energy Framework.
• Inclusive Multilateralism: Climate institutions should involve diverse stakeholders, including youth, women,
Indigenous communities, and civil society, ensuring a bottom-up approach to climate action.

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• Promoting Epistemic Institution: Organizations like the Intergovernmental Panel on Climate Change (IPCC) play a
crucial role in integrating scientific research into policy frameworks for better decision-making.
• Promoting Value-Based Cooperation: Institutions must uphold core values like equity, transparency, inclusivity,
and non-discrimination to ensure fair and effective climate policies.
• Strengthening Climate Finance Mechanisms: A clear and enforceable framework for climate finance, including
loss and damage compensation, is necessary to build trust and ensure accountability.
To know more about UNFCCC COP29, refer to Article 5.1. UNFCCC COP29 in November 2024 Monthly Current Affairs
Magazine.

2.4. WORLD HEALTH ORGANIZATION (WHO)

Why in the News?
United States announced its withdrawal from WHO, pausing transfer of any funds, support or resources to WHO.
US in WHO
• Founding Member: US was a founding member of WHO in 1948 and has participated in shaping and governing
WHO’s work ever since.
• Earlier Withdrawal: US earlier withdrew from WHO in 2020 citing following reasons:
o Mishandling of the COVID-19 pandemic and other global health crisis,
o Failure to adopt urgently needed reforms, and
o Its inability to demonstrate independence from the inappropriate political influence of WHO member states.
• Funding from US: For the two-year budget ending in 2025, the U.S. is projected to be WHO’s largest single contributor
by far.
o It is expected to donate $958 million, or nearly 15%, of the agency’s roughly $6.5 billion budget.
About WHO
• UN Agency: The WHO is the United Nation’s specialized health agency and is mandated to coordinate the world’s
response to global health threats.
• Genesis: The International Health Conference held in New York in 1946 adopted the Constitution of WHO, which
entered into force in 1948.
• Key Functions: WHO coordinates the world’s response to health emergencies, promote well-being, prevent
disease and expand access to health care.
o It also provides technical assistance to poorer countries, helps distribute scarce vaccines, supplies and
treatments and sets guidelines for hundreds of health conditions, including mental health and cancer.
• Membership: 194 member states grouped into 6 regions (Africa, Americas, Eastern Mediterranean, Europe, South-
East Asia, and Western Pacific).
o All countries which are Members of the United Nations may become members of WHO by accepting its
Constitution.
o Other countries may be admitted as members when their application has been approved by a simple majority
vote of the World Health Assembly.
• Funding: Highest Funding (2020-23) came from the US, Bill & Mellinda Gates Foundation, UK and Germany. Two
main sources of funding:
o Assessed contributions (AC): Member States pay their AC, which are a percentage of a country’s gross
domestic product (Agreed by the United Nations General Assembly).
 Member states approve them every two years at World Health Assembly and they cover less than 20% of
total budget.

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 o Voluntary Contributions (VC): Largely from Member States as well as from other UN organizations,
intergovernmental organizations, philanthropic foundations, the private sector, and other sources.
• Governance and Organizational Structure:
o World Health Assembly (WHA): WHO’s highest level decision-making forum, is held annually in Geneva,
Switzerland.
 Main functions are to determine policies of organizations, appoint Director-General, supervise financial
policies, and review and approve proposed programme budget.
o Executive Board: It gives effect to the decisions and policies of WHA and is headed by the Director-General.
 Director General is appointed by the WHA on the nomination of the Executive Board.
o WHO Secretariat: Includes its Headquarters in Geneva, Switerland, 6 regional offices and other stations located
in 150+ countries.

Significance of WHO
• Regulating international health laws: It shaped
International Health Regulations (IHR), which are
legally binding on WHO member states.
• Universal Health Coverage (UHC): WHO’s
programmes emph asize access to primary and
preventative healthcare, and sustainable financial
protection for people.
o WHO’s Global Drug Facility has enabled millions of
patients in developing countries to access high-
quality anti-TB medicines.
o Currently, at least half of the world’s people do not
receive the health care they need, and out-of-
pocket health care costs push about 100 million
into extreme poverty every year.
• Tackling Health Emergencies: Supports countries to
prepare for, detect, respond to and recover from
health emergencies and declares a Public Health
Emergency of International Concern (PHEIC).
• Eliminating diseases: WHO played a key role in
eradicating smallpox, achieving near eradication of
polio, eliminating range of tropical diseases like
leprosy, trachoma, in seven countries including India.

Shortcomings of WHO
• Poorly coordinated responses to outbreaks: While some criticize the WHO delaying declaration of 2014 Ebola
outbreak as PHEIC, others describe its 2009 swine flu response as disproportionate as the outbreak was milder.
• Political Pressures: WHO is believed to be under undue political pressure, especially from China and USA.
o For instance, WHO’s endorsement of taxes on soft drinks to reduce sugar consumption met with resistance
from beverages industry and US government.
• Complex Organizational Structure: Multiple departments with overlapping tasks, extensive autonomy enjoyed by
regional offices, rigid operational processes slows decision making process.
• Absence of financial independence and effective legal powers: makes it too weak to influence states unwilling or
unable to cooperate and faces difficulties in dealing with corporations and other non-state actors.
• Conflict of Interest: It is alleged that WHO decisions had been swayed by the interests of the pharmaceutical sector.
WHO Reforms
• Transformation Agenda (2017): It aims at supporting health leadership, providing global goods for public health,
and provide tailored support to countries.

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• Three-Level Operating Model: Includes country
offices, regional offices and headquarters
operating as “one WHO” along with creation of a
new executive level post of Chief Scientist.
o Also, to assert its authority over these regional
power bases, the WHO has begun requiring staff
to rotate among posts around the world, similar
to a policy at UNICEF.
• Sustainable Financing: WHO launched its first
investment round in 2024 to secure funding for
WHO’s new strategy.
o WHO has also established Agile Member State
Task Group for strengthening WHO budgetary,
programmatic and financing governance.
• WHO Results Framework: Tracks country-level
progress using output scorecards and performance
indicators.
• Supply Chain & Logistics: Dedicated Transport &
Logistics Hub ensures efficient medical supply
delivery.
• Partnerships: WHO Youth Council, WHO Civil
Society Commission, WHO Foundation and
partnership with organizations such as Google and
FIFA.
• Incident Management System: Enables rapid deployment of medical teams, equipment, and medicines during
emergencies.

2.5. INDUS WATER TREATY

Why in the News?
Recently, the World Bank appointed Neutral Expert on Indus Water Treaty (IWT) has backed India’s position on its
competence to decide the outcome of a dispute over two hydroelectric projects in India’s Jammu and Kashmir.

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More on the News
• Complaint was initiated by Pakistan in 2015, leading to dual-track dispute resolution by the World Bank invoking
both a Neutral Expert (On India’s request) and the Permanent Court of Arbitration (On Pakistan’s request).
• Disputed Hydroelectric Projects include 330 MW Kishenganga Project, inaugurated in 2018 and 850 MW Ratle
Project, under construction, on the Jhelum and Chenab rivers, respectively.
o Even though these are run-of-river projects, Pakistan has objected to their construction, citing potential impacts
on water flow to its agricultural lands.
About IWT
• Genesis: Signed in 1960 between India and Pakistan mediated by
the World Bank.
• Water usage rights:
o Eastern Rivers (Ravi, Beas, and Sutlej) for India's unrestricted
use.
o Western Rivers (Indus, Jhelum, and Chenab) are allocated to
Pakistan, with India allowed for specific non-consumptive uses
like navigation, floating of timber or other property, flood
protection or flood control, fishing or fish culture.
 India is, however, permitted to use waters of these rivers for
following purposes:
✓ Domestic use;
✓ Non-consumptive use;
✓ Agriculture use;
✓ Generation of hydro-electric power.
 This gives India roughly 30% and Pakistan 70% of the water carried by the Indus River System.
• Implementation: Requires both countries to create permanent Commissioners for Indus Waters to serve as the
regular channel of communication on all matters relating to the implementation of the Treaty.
• Dispute Resolution Mechanism (Three Level Graded Mechanism)
o Permanent Indus Commission (PIC): For questions concerning the interpretation or application of this Treaty
or the existence of any fact which might constitute a breach of this Treaty.
o Neutral Expert: For technical disputes where the PIC cannot reach a consensus.
 Neutral Expert shall be appointed by the World Bank or jointly by the Government of India and the
Government of Pakistan.
o Court of Arbitration: 7-member arbitral tribunal for legal adjudication of disputes if unresolved at lower levels.
Challenges to IWT
• Pakistan’s opposition to Indian projects: Pakistan frequently opposes Indian projects such as Kishanganga
Hydroelectric Project on the Jhelum River and Ratle Hydroelectric Project on the Chenab River, primarily questioning
their compliance with the technological criteria set by the treaty.
• Environmental Concerns: Rapid melting of Himalayan glaciers due to climate change poses a challenge in terms
of alteration in the river flow in the Indus system.
• India's Growing Needs: With a burgeoning population and expanding agricultural sector, India seeks to reevaluate
its water rights to meet current demands for irrigation and electricity needs.
• Security and Political Pressure:
o Strategic Use: Water has been seen as a strategic asset, with statements like "blood and water cannot flow
together" by Indian leaders indicating water's role in geopolitics.
o Terrorism Concerns: India has linked water issues with cross-border terrorism from Pakistan, suggesting that
treaty compliance should reflect security considerations, especially after incidents like the Uri attack in 2016.
Way Forward
• Integrated water management and climate adaptation: Both nations can adopt integrated river basin
management approaches and initiate joint climate impact studies, focusing on sustainable water use,
conservation, and flood management.

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• Modernization and renegotiations: To take into account technological advances and changes in water-demand
scenario.
o It can also take into account principles of international water law including Equitable and Reasonable
Utilization (ERU) and No Harm Rule (NHR).
> The No-Harm Rule is a widely recognised principle of customary international law whereby a State is duty-
bound to prevent, reduce and control the risk of environmental harm to other states.
• Transparency and data sharing: Real-time satellite-based monitoring and a joint data-sharing mechanism can
help address the trust deficit regarding water flow data, dam operations, and flood management.

International Principles on Transboundary Water Sharing

Helsinki Rules, 1966
• Regulates how rivers and their connected groundwaters that cross national boundaries can be used.
• Includes principles for resolving issues through negotiations, arbitration, tribunals, or the International Court of
Justice.
Helsinki Convention, 1992
• Provides a legal framework for preventing and controlling water pollution across national borders.
• Requires parties to apply the precautionary principle.
UN Convention on the Law of Non-Navigational Uses of International Watercourses, 1997
• Also referred as the UN Watercourses Convention, it is a flexible and overarching global legal framework that
establishes basic standards and rules for cooperation between watercourse states on the use, management,
and protection of international watercourses.
• It established two key principles: "equitable and reasonable use" and "the obligation not to cause significant
harm" to neighbours.

2.6. AUKUS
Why in the News?
AUKUS, a trilateral security
and defense partnership
between Australia, the
United Kingdom, and the
United States, has entered its
fifth year.
About AUKUS
• Genesis: In September
2021 as a three-way
strategic defence
alliance
between Australia, the
UK and US.
• Aim: To boost defense
capabilities, accelerate
technological
integration, and expand
the industrial capacity of
all three nations as part of
a collective effort to
stabilize the Indo-Pacific
region.

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• Composed of two pillars:
o Pillar 1: To support Australia in acquiring conventionally armed, nuclear-powered submarines (SSNs).
 It will make Australia the seventh nation in the world to operate nuclear-powered submarines, after the US,
UK, France, China, India and Russia.
o Pillar 2: Focuses on expediting cooperation
in intelligence sharing and critical
technologies, including cyber capabilities,
artificial intelligence, quantum technologies,
undersea technologies, etc.
Significance of AUKUS
• Strategic: Strengthening of defense capabilities
of Australia and ramping up defense industrial
base by 2040 aligns AUKUS with the vision of free
and open Indo-Pacific.
• Complements QUAD in Indo-Pacific: Due to
India’s reluctance to project the QUAD alliance
as a security platform against China, AUKUS can
fill the gap by emphasizing upon the defense
partnerships in Indo-Pacific region.
• Strategic Competition with China: For
technological dominance, particularly in
emerging technologies is central to second pillar of AUKUS.
• Alliance of Democracies: AUKUS being projected as the alliance of liberal democracies against autocratic powers
strengthens its acceptance and legitimacy as a security group.
o e.g., Japan has shown interest in joining the pact, especially the second pillar, for cooperation in critical
technologies segment.
Concerns related to AUKUS
• Geopolitical: Many South East Asian nations like Indonesia and Malaysia, raised concerns about potential arms
races and nuclear proliferation in the Indo-Pacific Region.
o Australia’s abrupt cancellation of a submarine deal with the France in favor of AUKUS, led to strained ties
between France and the AUKUS members.
• Weakening of QUAD’s Strategic Role: Quadrilateral Security Dialogue (QUAD), which includes the U.S., India,
Japan, and Australia, might see a shift in focus as AUKUS takes center stage.
• Nuclear Proliferation risks: AUKUS enables Australia to acquire nuclear-powered submarines, raising concerns
over the potential precedent it sets under the Nuclear Non-Proliferation Treaty (NPT).
o Concerns have been raised that this arrangement could encourage other nations to seek nuclear-powered
technology under similar security justifications.
Conclusion
For India, AUKUS presents both challenges and opportunities—necessitating a balanced approach that upholds
strategic autonomy, strengthens indigenous defense capabilities, and deepens regional partnerships. By leveraging
QUAD, engaging ASEAN, and expanding its naval and technological strengths, India can navigate the evolving security
landscape while maintaining stability and influence in the Indo-Pacific.

2.7. QUAD GROUPING

Why in the news?
Quadrilateral Security Dialogue Quad marked the 20th anniversary of Quad cooperation.

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About Quad

• Formalisation led by the then Japanese PM Shinzo Abe in 2007.

• Members: Australia, India, Japan, and the U.S
• Nature: An informal strategic partnership and an alliance of maritime democracies.
• Purpose: Supports an open, stable, and inclusive Indo-Pacific. Four Democracies acts as a force for global good,
delivering positive and lasting impact.
• Vision: Launched Vision Statement in 2023 which is centred around theme ‘Enduring Partners for the Indo-
Pacific’.
• Working: Work of the Quad is taken forward through following six Leader level Working Groups in six areas: Climate,
Critical and Emerging Technologies, Cyber, Health Security Partnership, Infrastructure and Space
• Key Summits: Annual Quad Leaders' Summits and Foreign Ministers' Meetings.
• Global Footprint: Represents-
o 24% of the world's population,
o 35% of global GDP
o 18% of global trade

Changing Dynamics of QUAD: From Military to Economic Alliance

Even though Quad is not a formal military bloc, it has transitioned from a military-focused group to a broader alliance
emphasizing economic cooperation and regional stability, adapting to global geopolitical shifts.

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 Sector of Description
cooperation
Military Focus (initial • Quad partners have been working side-by-side with partners throughout the region to
phase) bolster maritime security, improve maritime domain awareness, and uphold a free
and open Indo-Pacific.
o Some key initiative include annual Malabar Exercises and the 2+2 Dialogue (India-
U.S.) strengthen defence ties
o Strengthening the Quad Act: Passed by US House in 2024, it directs the US State
Department to enact a strategy for increasing engagement and cooperation with
the Quad.
> It also Seeks to establish a Quad Intra-Parliamentary Working Group to
facilitate cooperation between members
Economic Expansion Post Covid-19, most of the Quad initiatives are more focused on economic and sustainable
(recent phase) development. Some of them are as follows
• Wilmington Declaration: Marked a key Quad meeting in the U.S.
• Health Security: Launched the Health Security Partnership and Quad Cancer
Moonshot to fight cervical cancer.
• Indo-Pacific Logistics Network: Enhancing disaster response through shared airlift and
logistics.
• Quality Infrastructure: Quad Ports of the Future initiative for resilient port
infrastructure.
• Critical & Emerging Tech: Promoting Open RAN deployment and Quad Investors
Network (QUIN) for tech investments.
• Clean Energy: Supporting secure clean energy supply chains.
• Quad Climate Change Adaptation and Mitigation Package (Q-CHAMP), 2022
to enhance climate and clean energy cooperation
• Cybersecurity: Action Plan to Protect Undersea Telecommunications Cables for
digital security.
• Space Collaboration: Earth Observation data sharing for climate disaster
management.
• Counterterrorism: First Counter Terrorism Working Group (CTWG) (2023) addressing
C-UAS and CBRN threats.
Challenges faced by QUAD
• Lack of Institutional Framework: Quad lacks a formal structure like NATO and operates through informal
meetings. This weakens its ability to act decisively in crises.
• Unequal Burden-Sharing: Quad members have varying financial resources, strategic priorities, and military
capabilities. This creates an imbalance, placing more responsibility on certain members.
• Conflicting Partnerships: India’s ties with Russia and the SCO may contradict Quad’s strategic objectives.
Australia’s economic dependence on China could make it vulnerable to coercion.
o Quad’s focus on security, maritime defense, and intelligence sharing even fuelled speculation about it
becoming an "Asian NATO."
• Diverging China Strategies: Japan and Australia rely on China for trade but oppose its military assertiveness.
India has a direct strategic rivalry but continues economic engagement with China.
• India’s Specific Concerns
o Geopolitical Strains: Strengthening Quad ties could alienate key partners like Iran (enemy of US) and
Myanmar (ally of China).
o Different Indo-Pacific Visions: India focuses on the Indian Ocean, while others emphasize the Pacific.
Way Forward for Strengthening Quad
• Defining a Clear Indo-Pacific strategy: Quad must articulate a well-defined Indo-Pacific strategy to align
economic and security goals. This will reassure smaller nations about its role in regional stability.

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• Expanding Membership: India should advocate for the inclusion of countries like Indonesia and Singapore. A
broader Quad could enhance regional credibility and influence.
• Strengthening India's Maritime Strategy: India needs a robust Indo-Pacific maritime doctrine. This should
address security challenges, integrate military and diplomatic efforts, and engage strategic allies.

2.8. SHIFT IN INDIA–AFGHANISTAN RELATIONS

Why in the news?
Recently, 1st bilateral meeting between India’s foreign secretary and Afghanistan’s acting foreign minister took
place in Dubai.
More on the news
• The meet marks India’s diplomatic shift and
growing engagement with Taliban-backed
Afghan government.
• This was the highest level of engagement with
Taliban since the latter’s takeover of Kabul in
2021 post US withdrawal.
• Earlier in November, 2024, 1st official meeting
between Indian diplomats and Taliban’s defence
minister took place in Kabul.
Why shift in India’s diplomatic policy?
• Deteriorating Afghan–Pakistan relations: The
recently strained relationship between the two countries provides an opportunity for India to isolate Pakistan
from the region.
o E.g., Pakistan has expelled more than 5,00,000 refugees, creating a humanitarian crisis in Afghanistan;
o Pakistani airstrike on eastern Afghanistan to
neutralize Tehrik-e-Taliban Pakistan (TTP)
camps, has been alleged as a direct violation to
Afghan’s sovereignty.
• To counter rising Chinese influence: Since
Taliban’s return, China has been taking aggressively
proactive steps in normalizing its ties with
Afghanistan.
o E.g., China’s appointment of new
ambassador, signing minerals and other mining
contracts, taking up urban development projects
in Kabul etc.
• To prevent Afghan-soil based terrorism:
Afghanistan has been used as launchpad by terror
groups; constructive engagement ensures that
Taliban would not allow Afghan territory to be used
against India.
o E.g., Since the US withdrawal, India has been
cognizant of covert or overt threat from
Pakistan-backed terrorist groups operating in
Afghanistan, such as Lashkar-e-Tayyaba (LeT),
Jaish-e-Mohammad (JeM) etc.
• To strengthen connectivity and access to Central
Asia: Afghanistan’s strategic location at ‘Heart of Asia’ – crossroads of Central and South Asia – is significant, as
it has served as a route to India since the ancient times through the selected passage of Khyber and Bolan.

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 o E.g., Collaborating with Iran on Chabahar port development will improve access to Central Asia via
Afghanistan.
• To restart developmental projects and secure already done investments: E.g., India has invested more than $ 3
billion in over 500 projects across Afghanistan, including roads, power lines, dams, hospitals etc.
o India has also trained Afghan officers, awarded thousands of scholarships to students and built a new
parliament building in Afghanistan.
• To strengthen India’s soft power: In the form of humanitarian assistance like providing wheat supplies to drought-
affected Afghanistan in late 2021.
o E.g., in the Union Budget for 2024-25, India allocated Rs 50 crore for assistance to Afghanistan.
• To ensure stability in the region: India is concerned about the potential for instability in Afghanistan spilling over
into the region.
Why the shift in diplomatic approach can be challenging?
• Taliban’s internal dynamics: Taliban being a violent and brutal actor has done little to reform itself from what it
was in the 1990s, especially in its treatment towards women and girls.
o E.g., Since its return to power, Taliban has failed to form a functioning inclusive government to provide the
Afghan people with basic economic opportunities, health facilities, educational options etc.
• Terrorism and security concerns: Taliban is known to back global and regional terror outfits in their courtyard,
which poses a direct security threat to India.
o E.g., Presence of terror groups such as Islamic State of Khorasan (ISKP), Al-Qaeda, Pakistan-backed LeT, JeM
etc. have made the region more vulnerable to radicalism, and extremism.
• Drug trafficking: Afghanistan is the leading producer of opium globally, and the drug trade has fueled instability
and violence in the region, impacting both Afghanistan and India.
o E.g., in 2021, over 80% of world's opium originated from Afghanistan, and India fears that the earning could be
used for terror financing.
• Increasing presence of China: China's rising involvement in Afghanistan after Taliban’s takeover has raised
concerns in India over Beijing's expanding influence and engagements in the region.
o E.g., China is keen on expanding China-Pakistan Economic Corridor (CPEC) to Afghanistan.
Way forward
• Act West Policy: India should be realism in acting west, and should capitalize its traditional friendship and engage
Afghanistan more prominently in its ‘Act West Policy’.
• Humanitarian assistance: Keeping in mind the complex geopolitical chessboard and to counter China, India
should enhance its humanitarian assistance for Afghan’s health sector and for rehabilitation of refugees.
• Resuming developmental projects: Increasing investments through developmental projects would improve the
Afghan economy, create jobs, curb drug trafficking, reduce terrorism and would also deepen India's economic
engagement with Afghanistan.
• Cultural engagements: Develop people-to-people ties through liberalizing the visa regime for Afghan people,
sports (cricket) infrastructure support, educational scholarships etc.
• Enhanced diplomatic engagements: At various international and multi-lateral forums such as South Asian
Association for Regional Cooperation (SAARC) etc.

2.9. INDIA-EUROPEAN UNION (EU) RELATIONS

Why in the News?
Recently, in a High- Level Meeting was held between the EU Trade Commissioner, the Indian Commerce and Industry
Minister.

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More on the news
• During the meeting a roadmap based on six broad principles for building a mutually beneficial partnership
between India and the European Union (EU) was outlined. (see infographic)

Significance of India-EU Relations

Mutual
• Historical Relations: India was amongst the first countries to
establish diplomatic relations with the European Economic
Community in 1962.
o During the 5th India-EU Summit
held (2004) in Hague, their
relationship was upgraded to a
Strategic Partnership.
• Trade Partnership:
o EU: India's largest trading partner
o India: EU's 9th-largest trading
partner with India maintaining
trade surplus (2023)
• Strategic Alignment: Common
interests in security, renewable
energy, climate action, and
multilateralism. Examples-
o India-EU Bilateral Dialogues
exist on Counter-Terrorism, Cyber
Security, Migration and Mobility,
Maritime Security, Human Rights,
Non-Proliferation and
Disarmament.

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 o EU’s Indo-Pacific Strategy provides strategic convergence on India’s role in the Indo-Pacific.
o Both are committed to reforming multilateral institutions like the World Trade. Organization (WTO) is an
essential priority for both.
o India-EU Clean Energy and Climate Partnership launched in 2016 aims at reinforcing cooperation on clean
energy and implementation of the Paris Agreement.
• Connectivity: Connectivity Partnership (2021) between both focused on enhancing digital, energy, transport and
people-to-people connectivity.
o Projects like India Middle East-Europe Economic Corridor (IMEC) hopes to strengthen connectivity between
the EU-India.
For India
• Investment: Foreign Direct Investment (FDI) inflows from the EU to India, one of the largest sources, is valued at USD
107.27 Bn. (Apr 2000-December 2023).
o E.g. Business 20 (B20) platform under G20 promotes trade and investment promotion between India and the
EU.
• Export promotion: The EU provides an avenue for tapping India’s export potential, particularly in IT,
pharmaceuticals, textiles, and agriculture.
o E.g. EU-India Bilateral Trade in Services increased by 48% between 2019 and 2022.
• Security & Defence: European defence companies can contribute to India’s defence modernisation under the
‘Make in India’ campaign. E.g. manufacturing of Airbus C-295 aircrafts in India.
• Technology & Innovation: Collaboration in AI and digital transformation accelerates India’s technological progress.
o E.g. India-EU Trade and Technology Council (2022) is a strategic coordination mechanism to tackle challenges
related to the nexus of trade, technology, and security.
For the European Union (EU)
• Access to market: India can be the EU’s valuable trade partner and provide access to India’s large and growing
market.
o E.g. In 2024, India and the European Free Trade Association (EFTA) signed a Trade and Economic Partnership
Agreement (TEPA) with 4 European states- Iceland, Liechtenstein, Norway and Switzerland.
• Cultural & Educational Ties: India’s young, skilled workforce contributes to Europe’s talent pool and strengthens
academic collaborations.
• Geopolitical cooperation: The EU can leverage India’s centrality in the Indo-Pacific and growth potential to
improve its geopolitical position in the Global South.
• Security and Stability: India can provide security and stability in the Indian Ocean through which critical European
sea lines of communications (SLOCs) carrying 35% of its trade with Asia pass.
Challenges
• Lack of Trade diversification: Due to restrictive trade regime and regulatory with non-tariff barriers like Technical
barriers to trade (TBT), sanitary and phyto-sanitary (SPS) measures.
o Only 20 product categories make up 90% of total EU goods exports to India.
• EU’s import dependence on China: Since 2010, India’s share in the EU’s import basket has stagnated, compared
to the growing share from China.
• Delayed FTA negotiations: Due to Divergent perspectives: On issues like digital regulation, bilateral investment
treaties, dispute settlement process and investor protection, etc.
o Bilateral Trade and Investment Agreement (BTIA) negotiations were held between 2007 and 2013 but remained
dormant till 2021.
• Carbon border adjustment mechanism (CBAM): India has concerns that it could create new trade barriers for its
exports to the EU.
o The EU's CBAM will impose additional 25% tax on energy-intensive goods exported from India to the EU,
impacting 0.05% of India’s GDP (Centre for Science and Environment).
• Lack of consensus: on some aspects of labour laws, human rights, environmental standards etc. which hinders
investments in India by EU companies.

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 o The role and opinions of European civil society may be seen as contentious with India’s strategic autonomy
principle. E.g. ban on activities of Amnesty International in India.
Way Forward
• Fastrack FTA: Formal re-negotiations for the India - EU Free Trade Agreement (FTA), an Investment Protection
Agreement and a Geographical Indications Agreement were launched in 2022.
• Trade Reforms: Predictable tariffs and harmonised rules, liberalizing imports through diversification of supply
chains would further increase business confidence and investment.
o E.g. Liberalisation of public procurement would create opportunities for European firms and address India’s
infrastructure deficit.
• Green cooperation: Focus on sustainability and energy transition can be capitalized through closer cooperation for
trade and innovation in green transition goods.
• Labour policy: India has been reforming its labour codes based on international standards.
o Provisions of occupational safety and labour sustainability need to be upheld to enable the India-EU FTA
negotiations.

2.10. INDIA-INDONESIA RELATIONS

Why in the News?
In the context of the 75th Anniversary of India-Indonesia Diplomatic Relations, the Indonesian President visited
India.
Key Developments during the visit
• The two countries signed MoUs on Health Cooperation, Traditional Medicine, Maritime Safety and Security,
Digital Development and Cultural Exchange Programme (2025-2028).
• A joint report was presented by the co-chairs at the 3rd India- Indonesia CEOs Forum.
• He was also the chief guest at India’s 76th Republic Day celebrations.
• A joint statement was released by the 2 countries highlighting the areas of cooperation.

Significance of India-Indonesia Relations

Mutual Benefits
• Economic engagement: India–Indonesia Economic and Financial Dialogue (EFD Dialogue) (2023) aims to
enhance collaboration and foster a shared understanding of global issues.
• Maritime Security: Enhancing cooperation through engagement with regional mechanisms to ensure the safety
and security of sea lanes of communication.
o E.g. Safety of Navigation in the Straits of Malacca and Singapore (SOMS)

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• Defence and Security:
o Strategic and operational interaction between the defence forces: E.g. India–Indonesia Coordinated Patrol
(CORPAT), bilateral exercises Garuda Shakti (Army) and Samudra Shakti (Navy), and participation in other
multilateral exercises- Milan, Komodo, Tarang Shakti and Super Garuda Shield.
o Developing defence indigenization
and modernization capacities: E.g.
talks on technology transfer of
Brahmos missile are in progress.
• Multilateral reforms: Close coordination in
the multilateral fora including UN and the
G20 and focus on reformed
multilateralism.
• Regional partners: Indonesia recently
became a full member of the BRICS and
both are part of other forums Indian Ocean
Rim Association (IORA), Indo-Pacific
Oceans’ Initiative (IPOI), Indian Ocean Rim
Association (IORA), Pacific Islands Forum
(PIF), etc.
• Infrastructure & Connectivity: E.g. India’s
Development Partnership with the
Indonesia-Malaysia-Thailand Growth
Triangle (IMT-GT)
• Cultural and Heritage Cooperation: E.g.
Cultural Exchange Programme (2025-
2028), Annual festival ‘Bali Jatra’ commemorates the maritime trade and cultural exchange between India
(Odisha) and Bali (Indonesia).
• Other areas of common interests: Condemning all forms of terrorism, Collaboration in Digital Public
Infrastructure (DPI), cybersecurity etc.
For India
• Trade: Indonesia is the second largest trading partner of India in the ASEAN region (after Singapore).
o Bilateral trade increased from $4.3 billion in 2005-06 to $29.40 billion in 2023-24.
• Geostrategic significance: India, in line of its Security and Growth for All in the Region (SAGAR) initiative, is aiding
development of Sabang port in Aceh, Indonesia.
o It enhances maritime connectivity and provides a geostrategic leverage in the Indo-Pacific region to counter
China’s influence.
o Sabang port would allow India easier access to the Malacca Strait and there is a proposal to
establish connectivity to Andaman and Nicobar.
• Internationalization of rupee: MoU on Local Currency Settlement Systems (LCSS) for financial integration through
usage of local currency for bilateral transactions (2024).
• Health and Pharmaceuticals: Sharing best practices on Digital Health initiatives increase capacity building
programmes for healthcare professionals etc.
For Indonesia
• Market Access: India is an important export destination for Indonesia as it is the 2nd largest buyer of coal and
crude palm oil from Indonesia.
• Investment: Indian companies have made significant investments in Indonesia in infrastructure, power, textiles,
steel, automotive, etc.
o E.g. India’s GMR Airports Limited will be developing and operating Kualanamu International Airport in Medan,
Indonesia.

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• Climate Change and Disaster Resilience: Humanitarian Assistance and Disaster Relief (HADR) activities by India
have aided Indonesia which is prone to earthquakes, tsunamis etc.
o Indonesia joined the India-led Coalition for Disaster Resilient Infrastructure (CDRI).
• Food Security: India’s support in Indonesia’s new mid-day meal scheme through the sharing of knowledge and
experience.
• Space Cooperation: Cooperation between ISRO and its Indonesian counterpart (BRIN) on Integrated Biak
Telemetry, Tracking and Command (TTC) Facilities for Satellites and Launch Vehicles (2024).
• Education and Skill Development: Capacity building training for Indonesian professionals under the Indian
Technical and Economic Cooperation (ITEC) Programme, cooperation under the ASEAN-India Network of
Universities (AINU).
Challenges
• Unrealized Trade Potential: The bilateral trade potential between India and Indonesia stands at US$ 61 billion
which around 33% higher than the actual current trade volume.
o High tariff, non-tariff barriers along with low FTA (India-ASEAN Free Trade Agreement) utilisation are major
constraints to trade.
o The bilateral trade of $29.40 billion (2023-24) is low compared to the set target of US$ 50 billion in trade by
2025.
• China’s influence: China plays a dominant role in the development of Indonesia. Indonesia has accepted huge
investments from China under the Belt and Road Initiative (BRI) which raises concerns for India.
• Slow Progress of strategic projects: Progress on strategic projects like Indonesia’s purchase of Brahmos
missiles, development of Sabang Port etc. has been slow with impact of various economic and geopolitical factors.
• Lack of connectivity: Limited direct air connectivity, visa issues have hindered greater people-to-people
interactions.
Way Forward
• Identifying areas of collaboration: India and Indonesia must also identify areas of collaboration for convergence
beyond the China factor by creating an “ASEAN Plus” policy.
o E.g. Aligning ASEAN’s Outlook on the Indo-Pacific (AOIP) with India’s Indo-Pacific Oceans Initiative (IPOI)-
Indonesia has committed to supporting the maritime resources pillar under the IPOI.
• Trade Reforms: Rationalizing FTAs, accelerating consensus on a Comprehensive Economic Partnership
Agreement (CEPA) etc. be encouraged to improve economic integration.
• Capitalizing on Regional cooperation: Engaging more actively in fora like ASEAN, East Asia Summit (EAS), BRICS,
IPOI etc.
o Indonesia can be invited to join the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic
Cooperation (BIMSTEC) for realizing the goal of Act East Policy.
• Cooperation in the Global South: Work together on issues of importance to the Global South through South-South
Cooperation.
o E.g. Indonesia acts as a bridge connecting India to the Pacific Island countries.
• Developing Minilaterals: Minilaterals like the trilateral partnerships like India-Indonesia-Australia can be promoted
to act on focussed sectors of cooperation.
• People-to-people Ties: Promoting cultural exchanges, opportunities for education and employment and tourism.
o E.g. Capitalizing on 2025 being declared as the ASEAN-India Year of Tourism.

2.11. NEWS IN SHORTS

2.11.1. 60 YEARS OF INDIA-SINGAPORE BILATERAL RELATIONS
The Presidents of India & Singapore jointly unveiled a logo to mark the 60th anniversary of diplomatic relations between
the two nations.

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India-Singapore Relations
• Diplomatic Relations: India was one of
the first countries to recognize
Singapore’s independence & establish
diplomatic relations in 1965.
o Comprehensive Economic
Cooperation Agreement was signed
in 2005. In 2015 relations were
upgraded to a Strategic Partnership
which further elevated to a
Comprehensive Strategic
Partnership in 2024.
• Trade: Singapore is India’s 6th largest
trade partner (2023-24) with a share of
3.2 % of India’s overall trade. It is
India’s largest trade partner in ASEAN
(India is net importer).
• Multilateral Cooperation: Both are
members of forums like East Asia
Summit, Commonwealth, IORA (Indian
Ocean Rim Association), and IONS
(Indian Ocean Naval Symposium).
• Defence Cooperation: India and
Singapore hosts’ military exercises i.e. Exercise Agni Warrior (Army) & SIMBEX (Navy).
• Indian Diaspora: Indian origin people constitute 9% of Singapore’s population.
o Tamil is one of the four official languages of Singapore.

2.11.2. BRICS
Nigeria has been admitted as "partner country" of BRICS grouping.
• It is the 9th BRICS partner country, joining Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, and
Uzbekistan.
About BRICS
• Total members: 10
o Informal grouping formed by Brazil, Russia, India and China in 2009, with South Africa added in 2010.
o Other Full Members: Egypt, Ethiopia, Iran, UAE, Indonesia.
• Three pillars of Cooperation: Political and Security; Economic and financial; Cultural and people to people
exchanges.
• Represents ~40% of global population and an estimated 37.3% of global GDP.
• India hosted 4th (2012), 8th (2016) and 13th (2021) BRICS Summit.
To know more about BRICS, refer to Article 2.5. BRICS in October 2024 Monthly Current Affairs Magazine.

2.11.3. BIRTHRIGHT CITIZENSHIP IN US

The United States President Signed an Executive Order to End Birthright Citizenship
• However, A federal judge has temporarily blocked this executive order that sought to curtail birthright citizenship
in the United States regardless of parents' immigration status.
About Birthright Citizenship in the US
• Definition: Birthright citizenship is a provision under the 14th Amendment (1868) of the US constitution that grants
automatic citizenship to anyone born on US soil.

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• Historical Context: Upheld by the US Supreme Court in United States v. Wong Kim Ark (1898), even for children of
non-citizen parents.
Implications for India with End of U.S. Birthright Citizenship
• H-1B Visa Holders: Children born to Indian professionals on H-1B visas, or those awaiting Green Cards (allows a
person to live and work in US permanently), will no longer qualify for automatic citizenship.
• Temporary Visa Holders: Indian students (one of the largest groups of international students) and families on
temporary visas will face difficulties securing citizenship for their US-born children.
• Impact on Immigration: The policy would discourage Indian professionals, students, etc, from migrating to the US,
pushing them toward immigration-friendly countries like Canada and Australia.
• Curb “birth tourism”: A practice of women travelling to the US specifically to give birth, so their children can claim
citizenship.

2.11.4. WORLD’S LARGEST HYDROPOWER DAM ON BRAHMAPUTRA

China has approved the construction of the world's largest dam and world’s biggest infra project in Medog region of
Tibet.
• The dam is over three times the capacity of the Three Gorges Dam (currently the world’s largest, in central China).
Project Overview
• Location: Lower reaches of the Yarlung Zangbo River
(Tibetan name for Brahmaputra) at a huge gorge in the
Himalayan reaches where river makes a huge U-turn
to flow into Arunachal Pradesh.
• Stated Purpose: To support China’s carbon neutrality
goals, boost industries, and create jobs in Tibet.
Concerns Associated with the Dam Construction
• Engineering Challenges: Tibetan plateau, regarded as
the roof of the world, frequently experiences earthquakes
as it is located over the tectonic plates.
• Environmental Impact: Potential disruption to local
ecology and downstream water flow. Risk of altering the
river’s course, affecting agriculture and biodiversity.
• Geopolitical Risks: India and Bangladesh fear China’s
ability to control water flow—concerns about the dam’s
use to release excess water during conflicts, causing floods.

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China and India have established Expert Level Mechanism (ELM) in 2006 to address trans-border river issues under
which China provides India with hydrological data on Brahmaputra and Sutlej rivers during flood seasons. India is also
building its hydropower dam on the Brahmaputra in Arunachal Pradesh.

2.11.5. PANGSAU PASS

The Pangsau Pass International Festival, a three-day event celebrating border trade and cultural exchange, concluded
recently in Arunachal Pradesh.
About Pangsau Pass
• Location: Situated at 3,727 feet (1,136 m) on the Patkai Hills along the India-Myanmar border.
• Origin of Name: Named after the nearest Burmese village, Pangsau.
• Historical Significance: Believed to be the route of the 13th-century Ahom invasion of Assam by the Shan tribe.
• Connectivity: The historic Stilwell Road (Ledo Road) passes through Nampong and the Pangsau Pass into
Myanmar.

2.11.6. PHILADELPHI CORRIDOR

Recent ceasefire terms between Israel and Hamas also
stipulate Israel’s withdrawal from the Philadelphi Corridor.
About Philadelphi Corridor
• Corridor was originally established under the 1979
Israel-Egypt Peace Treaty.
• It is a narrow strip of land along the Gaza-Egypt border,
~14 km long and 100 meters wide.
• It serves as a critical border area between the southern
Gaza Strip and Egypt's Sinai Peninsula.
• It runs from the Mediterranean to Kerem Shalom
crossing with Israel and was designated as a
demilitarised border zone after the withdrawal of
Israeli settlements and troops from Gaza in 2005.

2.11.7. GULF OF MEXICO

Recently, there has been a proposal to change name of Gulf of Mexico to “Gulf of America”.
About Gulf of Mexico
• Boundaries: United States (North), Mexico (West and South), Cuba (South-east).
• It connects to the Atlantic Ocean through the Straits of Florida and to the Caribbean Sea via the Yucatán Channel.
• Draining Rivers: Mississippi River, Rio Grande
• Control and Ownership: Shared by U.S., Mexico, and Cuba
• Significance: Large continental shelf, oil and natural gas extraction, fisheries etc.
• Vulnerability: Prone to hurricanes and twisters due to warm waters and atmospheric conditions

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2.11.8. PANAMA CANAL
U.S. President-elect Donald Trump threatened to reimpose U.S. control over
the Panama Canal.
About Panama Canal
• It is an 82-km (51-mile) artificial waterway that connects Pacific &
Atlantic Oceans through Panama.
• The canal transports ships through Gatun Lake.
• Significance:
o It is one of the two most strategic artificial waterways in the world,
the other being the Suez Canal.
o It shortens the journey of ships between east and west coasts of
U.S. by 8,000 miles (around 22 days).

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11. PLACES IN NEWS

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 Table of Contents
1. POLITY AND GOVERNANCE ________________4 3.9.11. Regulation of Payment Systems in India _____ 51
1.1. Freebies________________________________ 4 3.9.12. Digital Payments Index (DPI) ______________ 52
1.2. Status of Devolution to Panchayats in States __ 6 3.9.13. Market Infrastructure Institutions (MIIs) ____ 52
1.2.1. Proxy Representation in PRIs ________________ 8 3.9.14. Algorithmic Trading _____________________ 53
3.9.15. Potash ________________________________ 53
1.3. News in Shorts __________________________ 9
3.9.16. Electronics Manufacturing ________________ 54
1.3.1. Govt to Set Up Deregulation Commission ______ 9
3.9.17. Union Budget 2025: Developing 50 Top Tourist
1.3.2. President’s Rule in Manipur _________________ 9
Destinations in 'Challenge Mode' ________________ 54
1.3.3. Union Cabinet Approves the Revised Waqf
3.9.18. RuTAGe Smart Village Center (RSVC) ________ 54
(Amendment) Bill, 2024 ________________________ 10
3.9.19. Global Capability Centers _________________ 55
1.3.4. Digital Brand Identity Manual (DBIM) ________ 11
3.9.20. SwaRail Application _____________________ 56
2. INTERNATIONAL RELATIONS ______________12 3.9. Errata ________________________________ 56
2.1. Geo-Economic Fragmentation _____________ 12
4. SECURITY _____________________________ 57
2.2. India’s Neighbourhood First Policy _________ 13
4.1. Regionalism ___________________________ 57
2.3. Triangular Partnership ___________________ 16
4.2. Algorithmic Amplification and Radicalisation _ 59
2.4. India - U.S.A Relations ___________________ 18
4.3. Hybrid Warfare _________________________ 60
2.4.1. India-U.S. Civil Nuclear Agreement __________ 20
4.4. Nuclear Disarmament ___________________ 62
2.5. India-France Relationship ________________ 22
4.5. News in Shorts _________________________ 65
2.6. News in Shorts _________________________ 25
4.5.1. Naval Anti-Ship Missile–Short Range (NASM-SR) 65
2.6.1. India And Qatar Elevate Bilateral Ties to Strategic
4.5.2. Military Exercises ________________________ 65
Partnership __________________________________ 25
2.6.2. BIMSTEC________________________________ 25
4.6. Errata ________________________________ 66
2.6.3. International Criminal Court ________________ 26 5. ENVIRONMENT ________________________ 67
2.6.4. Economic Community of West African States 5.1. Solar Energy in India _____________________ 67
(ECOWAS) ___________________________________ 26 5.2. Soil Health Card Scheme _________________ 69
2.6.5. Organization of the Petroleum Exporting Countries 5.3. Stubble Burning ________________________ 71
(OPEC) ______________________________________ 26 5.4. News in Shorts _________________________ 73
2.6.6. International Organization of Aids to Marine 5.4.1. Wetland Accredited Cities _________________ 73
Navigation (IALA) ______________________________ 27 5.4.2. Four More Wetlands Included Under The Ramsar
3. ECONOMY _____________________________28 Convention __________________________________ 74
3.1. Mutual Credit Guarantee Scheme for MSMEs 28 5.4.3. Inland Mangrove of Guneri ________________ 75
3.2. National Critical Mineral Mission (NCMM) ___ 30 5.4.4. United Nations Human Settlements Programme
3.2.1. Major and Minor Minerals _________________ 32 (UN-Habitat) _________________________________ 75
3.3. Prime Minister Dhan Dhaanya Krishi Yojana _ 34 5.4.5. Agri-NBSAPs ____________________________ 75
3.4. Makhana ______________________________ 35 5.4.6. Champions of Animal Protection ____________ 76
5.4.7. F11 Bacteria ____________________________ 76
3.5. Mission for Cotton Productivity ____________ 37
5.4.8. Shallow-Depth Earthquake ________________ 76
3.6. Urban Challenge Fund (UCF) ______________ 39 5.4.9. Shift In Earth’s Magnetic North _____________ 77
3.7. Urban Cooperative Banks ________________ 42 5.4.10. Draft Rules For ‘One Nation, One Time’ _____ 78
3.8. Restructured Skill India Programme ________ 45 5.4.11. Stratovolcano __________________________ 78
3.9. News in Shorts _________________________ 47 5.4.12. Mount Dukono _________________________ 78
3.9.1. Gross Domestic Knowledge Product _________ 47 5.4.13. CASPIAN SEA ______________________ 79
3.9.2. Deposit Insurance ________________________ 48 6. SOCIAL ISSUES ____________________ 80
3.9.3. New Harmonised System Codes For GI Tagged Rice 6.1. Middle-Income Class ____________________ 80
____________________________________________ 48
6.2. Three-Language Formula _________________ 82
3.9.4. ‘AI for Entrepreneurship’ Micro-learning Module
____________________________________________ 49 6.3. Quality Higher Education in India __________ 84
3.9.5. E-Shram Microsites & Occupational Shortage Index 6.4. Swachh Bharat Mission-Grameen (SBM-G)___ 87
(OSI) ________________________________________ 49 6.5. Jal Jeevan Mission ______________________ 89
3.9.6. Time Use Survey (TUS) ____________________ 50 6.6. News in Shorts _________________________ 91
3.9.7. FDI Limit Hiked In Insurance Sector __________ 50 6.6.1. “Imagine A World With More Women In Science”
3.9.8. Enhanced Certificate of Origin (eCoO) 2.0 System Campaign ___________________________________ 91
____________________________________________ 50 6.5.2. Swavalambini ___________________________ 91
3.9.9. Tonnage Tax Scheme _____________________ 51 6.6.3. ASER 2024 Released by NGO Pratham Foundation
3.9.10. RBI Cut Repo Rate _______________________ 51 ____________________________________________ 92

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2. INTERNATIONAL RELATIONS
2.1. GEO-ECONOMIC FRAGMENTATION
Why in the News?
The Economic Survey 2024-25 highlights a global shift from economic integration to geo-economic fragmentation
(GEF), signalling the replacement of globalization.
About Geo-Economic Fragmentation (GEF): The New Global Reality
• Geo-Economic Fragmentation (GEF): Is defined as a policy-driven reversal of global economic integration often
guided by strategic considerations. Examples:
o ‘Friendshoring’: Growing trade practice where supply chain networks are focused on countries regarded as
political and economic allies.
 E.g., Apple is shifting some of its iPhone production to India from China.
o ‘Nearshoring’: When a company chooses to work with a supplier that's located in a nearby country.
 E.g., a German company outsourcing customer service to a team in Poland
• Channels of GEF: GEF manifests through various channels, including trade restrictions, reduced capital
movements, disruptions in technology diffusion, Tech Decoupling etc.
o Technological decoupling involves reducing or ending international trade and investment in high-tech
industries due to national security, intellectual property, and data privacy concerns.
o E.g. USA’s Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act (2022) aims to
boost domestic manufacturing of semiconductor whereas China’s ‘Made in China 2025’initiative focuses
on achieving global leadership in high-tech industries.

Impact of Geo-Economic Fragmentation (GEF)

• Economic Output Losses: Reduced trade due to increased barriers (e.g., tariffs, non-tariff barriers) can lower global
domestic growth.
o India’s goal to become a USD 5 trillion economy by FY28 and USD 6.3 trillion by FY30 can be threatened.
• Relocation of Foreign investment: Foreign investment moving towards geopolitically aligned countries isolates
emerging markets, especially in developing economies.
o E.g., Foreign direct equity investments into India fell to a five-year low in FY24.
• Labor Market Effects: Limits on cross-border migration can deprive host economies of skills and reduce remittances
to migrant-sending countries.
• Hinders multilateralism: GEF hinders multilateral efforts on climate change, pandemics, and other global
challenges.
• Decline in globalization: Overall decline in globalization limits access to new markets, spread of technological
innovation, access to capital, competition and cultural exchange.

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Way Forward
• Strengthening Domestic Supply Chains: So as to ensure self-reliance in critical sectors like manufacturing, energy,
and technology.
o E.g., Khanij Bidesh India Limited (KABIL) to secure mineral supplies, particularly lithium and cobalt, through
overseas exploration and acquisition, with projects in Argentina, Australia, and Chile.
• Leveraging Regional Partnerships: Within the Indo-Pacific and build stronger trade and diplomatic relations with
countries that share similar interests, ensuring better access to markets and resources.
o Groupings like BIMSTEC, Indo-Pacific Economic Framework for Prosperity (IPEF) can be utilized by India.
• Innovation and Technology: Particularly in sectors such as renewable energy, digital transformation, and AI.
Conclusion
Geo-economic fragmentation marks a shift from the post-Cold War free trade model that fuelled globalisation and hyper-
globalisation. However, it would be too early to say that world is heading toward de-globalization where there is a fall in
trade volumes or overall ratio of trade to GDP.
India's success in achieving its 2047 goals hinges on adapting to geo-economic fragmentation, focusing on domestic
reforms, innovation, and strategic partnerships to drive sustainable growth and secure its global position.

2.2. INDIA’S NEIGHBOURHOOD FIRST POLICY

Why in the News?
India’s Neighbourhood First policy has completed a decade.

About India’s Neighbourhood First Policy (NFP)

• Genesis: The NFP was conceived in 2008, with its focus intensifying post-2014.

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• Concept: India’s ‘NFP guides its approach towards the management of relations with countries in its immediate
neighbourhood.
• Countries part of NFP: Afghanistan, Bangladesh, Bhutan, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka.
• Aim: To enhance physical, digital and people to people connectivity across the region, as well as augmenting trade
and commerce.
• Key principles of engagement: 5S- Samman (respect), Samvad (dialogue), Shanti (peace), Samriddhi (prosperity)
and Sanskriti (culture) guided by Consultative and Non-Reciprocal, Outcome-Oriented and Holistic Approach.

Key aspects of India’s NFP

• Enhanced Economic Cooperation through Connectivity: Aims to create interdependencies that strengthen India’s
influence and counter external powers.
o E.g., Bangladesh: Mongla seaport rights and rail transit in July 2024 reduce costs for northeastern India.
• Increased High-Level Political Engagements: Build trust and strengthen diplomatic ties, ensuring a stable regional
environment.
o E.g., Nepal: Prime Minister of India’s 2014 visit, first in 17 years.
o E.g., Afghanistan: Zaranj-Delaram Road, Pul-e-Khumri to Kabul Transmission Line, Salma Dam Power Project,
Afghan Parliament Construction.
• Development Assistance and Infrastructure Projects: Aid is critical during crises and for long-term development,
consequently, positioning India as a reliable partner.
o E.g., Maldives: Greater Malé Connectivity Project bridge, Hanimadhoo Airport, etc.
• Energy Cooperation and Regional Power Markets: Develop regional energy markets and enhance energy security
through hydropower and power trade agreements.
o E.g., Bangladesh: Tripartite Power Trade in 2024 enables importing 40 MW from Nepal via India.
• Geopolitical Balancing and Countering External Influence: The policy provides opportunities to counter China’s
influence and maintain South Asia as India’s sphere of influence.
o E.g., Maldives: Steady financial support to Maldives, particularly currency swaps, is a direct counter to China’s
influence.
• Humanitarian and Disaster Relief Engagement: India has consistently responded as the first responder.
o E.g., Vaccine Maitri: Maldives and Bhutan becoming the first recipients, in line with “Neighbourhood First”
policy.
o E.g., Sri Lanka: India’s US$4 billion financing during the 2022 economic crisis.
Challenges Faced by India in its Neighbourhood

• Internal instability: Recent political upheavals and instability in neighbouring countries have significant
implications for regional stability and India's strategic interests in the neighbourhood. (see infographic)

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• Perceived Interventionism: Negative perceptions of India as an interventionist power (perceived ‘Big-Brother’
attitude), consequently, worsening relations.
o E.g., India’s 2015 economic blockade in Nepal, seen as protecting Madhesi interests, heightened anti-India
sentiment.
• Slow Project Implementation: Delays in infrastructure projects erode confidence and fuel anti-India sentiment.
o E.g., The Greater Malé Connectivity Project in Maldives faced protracted timelines, becoming a political issue.
• Unresolved Disputes and Irritants: Failure to resolve key issues like water sharing, taxes, and fishing, causing
ongoing friction.
o E.g., Teesta River water sharing with Bangladesh, illegal fishing in Sri Lankan waters, and the Kalapani dispute
with Nepal remain unresolved.
• Lack of Coordination Within India: Internal policy inconsistencies affect trade and transit, exacerbating tensions.
o E.g., The Suvidha fee implemented by West Bengal increased costs for boulder exports from Bhutan to
Bangladesh via India.
• China's Growing Influence: Despite India’s efforts, China’s increasing presence in South Asia, notably in Sri Lanka
(e.g., Hambantota Port), Nepal & Bangladesh (part of BRI), and Maldives, continues to challenge India’s regional
dominance.
To know more about India’s approach to tackle instability in its neighbourhood, refer to Article 2.1. Instability in India’s
Neighbourhood in July 2024 Monthly Current Affairs Magazine.
Way forward
• Diplomatic Engagement and Sensitivity: India needs to engage diplomatically with its neighbors while being
sensitive to their political realities and domestic issues.
o Given that most of these nations are democratic, the pressures of electoral cycles and competitive politics
also have to be managed.

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• Addressing Critical Irritants: India must resolve long-standing issues, such as water-sharing disputes (e.g., the
Teesta River issue) and territorial disputes (e.g., Kalapani and Kachatheevu).
• Balancing Economic Assistance: While offering economic support, India should avoid fostering over-dependence.
Projects should be implemented efficiently to enhance India’s image as a reliable partner.
• Geopolitical Prudence: By managing China’s growing influence in the region while ensuring that neighboring
countries do not feel pressured into choosing sides.
• Encouraging Democratic Values: India must support democratic processes while addressing concerns regarding
political instability, as seen in Bangladesh, the Maldives, Afghanistan & Myanmar.
• Adapting to Domestic Political Shifts: India should remain flexible in its approach to diplomatic relationships,
especially in countries like the Maldives and Sri Lanka, where domestic politics often shift.
Conclusion
India’s Neighbourhood First policy, guided by Samman (respect), Samvad (dialogue), Shanti (peace), and Samriddhi
(prosperity), contrasts with China’s neo-imperialistic, debt-trap diplomacy, fostering cooperative, sustainable, and
mutually beneficial regional relations.

2.3. TRIANGULAR PARTNERSHIP

Why in the News?
A recent report by the OECD and the Islamic
Development Bank stresses that triangular
partnerships can effectively win influence in
a divided and conflicted world.
About Triangular Partnership or Triangular
Cooperation
• Definition: Triangular cooperation refers to
projects and initiatives combining the
comparative advantages of traditional
donors and southern countries to share
knowledge and address development
concerns in developing countries.
• Key Advantages
o Enables more efficient development
delivery through resource pooling, co-
creation, and the best available
technology
o Builds the capacity of developing
countries as providers of development cooperation
o Contributes to the SDGs
• Global Trends
o Between 2000 and 2022, 199 countries and 85 organizations engaged in over 1,000 triangular projects (OECD
estimate).
o 68% of these projects had budgets under $1 million, providing low-cost, flexible development solutions
ensuring cost-effective, flexible solutions.
• India’s Participation in Triangular Cooperation
o Ranks 8th among top 10 countries in triangular partnerships.

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 o Key India-led Triangular Partnerships
 India and Japan signed a memorandum of cooperation with Sri Lanka to develop the East Container
Terminal (ECT) in 2019.
 India and the US signed the ‘Statement of Guiding Principles on Triangular Cooperation for Global
Development’ (SGP) and its validity extended up-to 2026.
Reasons for Resurgence of Triangular Partnerships
• Failure of Western Aid Model: By the early 2000s, the traditional charity-based development aid system with strict
donor-recipient hierarchies lost credibility, prompting calls for reform.
• Rise of Emerging Donors: Countries like China, India, and Brazil introduced development programs based on equal
partnerships and mutual benefit, gaining support from recipient nations.
• China’s Influence: China’s growing footprint, particularly in the infrastructure sector in Africa, the Association of
Southeast Asian Nations (ASEAN), and the South Pacific, has made it imperative for the G7 countries to engage with
India, a democratic country with shared values.
• Geopolitical rivalries: Conflicts within and between nations are exacerbating economic instability demanding new
model of development
Challenges of Triangular Partnerships
• Power Imbalance and Trust Issues: Donor countries' priorities and agendas may often overshadow recipient
countries' interests.
o For e.g., some developed countries prefer to work with only investment-grade countries in Africa, not the Heavily
Indebted Poor Countries (HIPCs).
• Hesitance of recipient countries: Developing countries find it cumbersome to adhere to all the norms and
standards required by developed country partners.
o For e.g., most recipient countries, particularly in Africa, find it cumbersome to abide by the European notions of
sustainability, and their required norms and standards.
• Implementation Challenges: Partner countries often differ over procurement rules, financial structure, and legal
framework.
o For e.g., Under the Indian lines of credit programme, 75 % of the inputs are procured from India, and Indian
companies implement the projects. This often leads to disagreements with partner countries, which prefer
prioritizing their own companies.
• Limited scale and scope: Most of these trilateral partnership initiatives adopt a project-based approach, which the
Paris Declaration on Aid Effectiveness warns may result in a disconnect with broader development goals.
Way Ahead for Strengthening Triangular Partnerships
• Promoting Inclusive Partnerships: Ensure recipient nations have a say in decision-making to build trust. Encourage
mutual learning to create practical and feasible guidelines.
• Simplifying Standards for Recipient Countries: Adapt sustainability and regulatory norms to local contexts rather
than imposing one-size-fits-all European standards.
• Enhancing Flexibility in Implementation: Align procurement policies to balance donor interests with local
economic priorities.
• Scaling Up and Aligning with Long-Term Development Goals: Move beyond project-based approaches to integrate
triangular cooperation with national and regional development strategies.
o Leverage international frameworks like the Paris Declaration on Aid Effectiveness to ensure sustainable
impact.
Conclusion
By fostering equity, adaptability, and long-term vision, triangular cooperation can become a more effective and
mutually beneficial development model.

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2.4. INDIA - U.S.A RELATIONS
Why in the News?
The Indian Prime Minister paid an Official Working Visit to the USA.
Key Outcome of the Visit
Area/Sphere Development
Defense & • Proposed Ten-year Framework for the U.S.-India Major Defense Partnership: Announced
Security plans to sign Partnership to advance defense ties further.
• Autonomous Systems Industry Alliance (ASIA): To scale industry partnerships and
production in the Indo-Pacific.
• Other: Announced new co-production arrangements of Javelin (Anti-Tank Guided Missiles)
and Stryker (Infantry Combat Vehicles) in India.
Technology • U.S.-India TRUST (Transforming the Relationship Utilizing Strategic Technology) Initiative:
and Innovation It will catalyze government-to-government, academia and private sector collaboration to
promote the application of critical and emerging technologies in areas like defense, etc.
• INDUS Innovation: It will advance U.S.-India industry and academic partnerships and foster
investments in space, energy, and other emerging technologies.
o It is modeled after the INDUS-X initiative, which facilitates partnerships between U.S. and
India to enhance military capabilities.
• Strategic Mineral Recovery Initiative: A new U.S.-India program to recover and process
critical minerals (including lithium, cobalt, and rare earths) from heavy industries like
aluminum, coal mining and oil and gas.
Others • U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated
Commerce & Technology) for the 21st Century: Promote a results-driven agenda to
demonstrate the level of trust for a mutually beneficial partnership.
• Indian Ocean Strategic Venture: A new bilateral, whole-of-government forum to advance
coordinated investments in economic connectivity and commerce.
• Launched Mission 500, aiming to more than double total bilateral trade to $500 billion by 2030.
Significance of a Robust India-US Relationship
• Advancing Economic Opportunities: USA is the top-most
merchandise export destination for India.
o India has joined three pillars of USA led Indo-Pacific Economic
Framework [IPEF].
• Strengthening Global Strategic Influence: E.g. Quad, a
diplomatic partnership between Australia, India, Japan, and the
United States committed to supporting an open, stable and
prosperous Indo-Pacific.
o Such initiatives will help in countering the influence of China.
• Defense Modernization and Capacity Development: India has
signed foundational defense agreements with US which include a
General Security Of Military Information Agreement (GSOMIA),
Logistics Exchange Memorandum of Agreement (LEMOA),
Communications Compatibility and Security Agreement
(COMCASA) and Basic Exchange and Cooperation Agreement
(BECA).
o US recognized India as a Major Defense Partner with Strategic
Trade Authorization-1 (STA-1) authorization.
• Expanding Frontiers in Emerging Technologies: Launched US-India Initiative on Critical & Emerging
Technologies (iCET, 2023).

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• Expanding Space Outreach: E.g. NISAR (NASA-ISRO Synthetic Aperture Radar) mission.
o Also, India has joined the US led Artemis Accord, provides a common set of principles to enhance the
governance of the civil exploration and use of outer space.
• Ensuring Energy Security: U.S.-designed nuclear reactors will be built in India to fully realize the U.S.-India 123
Civil Nuclear Agreement, 2008.
o In recent years, the U.S. has emerged as one of the largest suppliers of Liquefied natural gas (LNG) to India.
• Countering Terrorism: U.S. recently approved the extradition to India of Tahawwur Rana, accused in the 26/11
attacks.
• Support at Multilateral Forums: E.g. US support for India's permanent UN Security Council membership and
Nuclear Suppliers Group.
o Supports India’s bid to join the International Energy Agency as a full member.
• Fighting Climate Change & Renewable Energy: US joined the India led International Solar Alliance.
o Also, launched US-India Renewable Energy Technology Action Platform (RETAP).
o Both are part of Global Biofuels Alliance (GBA)

Issues Straining India-US Partnership in recent times

• Trade & Economic Challenges
o Imposition of reciprocal tariffs along with other protectionist measure will make Indian products less
competitive.
o India remained on the Priority Watch List of the U.S. 2024 “Special 301” report, an annual review of the global
state of intellectual property rights (IPR) protection and enforcement.
o US revoked India’s GSP (Generalized System of Preferences) in 2019, impacting duty-free Indian exports.
• Geopolitical Divergences: India follows strategic autonomy and independent foreign policy.
o E.g. India is part of QUAD but avoids turning it into a military alliance and India's stance on Russia-Ukraine War
• Visa & Immigration Challenges: Recently, US is tightening visa regulations (E.g. H-1B Visa), which will affect Indian
IT professionals and others.
o Also, illegal Indian Immigrants have been deported.
• Concerns over Human & Religious Rights: Concerns raised by the United States Commission on International
Religious Freedom (USCIRF) against the Citizenship (Amendment) Act (CAA), 2019 have been seen as internal
interference in India.
• Imposition of Sanctions: US has raised concerns over the acquisition of advanced weaponry, such as the S-400 air
defense system from Russia by India, citing potential implications under the Countering America’s Adversaries
through Sanctions Act (CAATSA).
Ways to further Strengthen India-US Partnership
• Finalizing Bilateral Trade Agreement (BTA): The recently announced plan to negotiate a BTA would enhance market
access, reduce tariffs, boost investment, strengthen supply chains, etc.
o Also, it will help in resolving issue related with reciprocal tariff, IPR, etc.

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• Finalisation of defence framework: Both countries can work for early finalization of new 10-year defence framework
that will run from 2025 to 2035
o Reciprocal Defense Procurement (RDP) agreement can also be finalised.
• Easing H-1B Visa Restrictions: The US can streamline visa processes for Indian IT professionals, researchers, etc.
• Waiver under CAATSA: Influence of Indian-American can be used to get long-term exemptions for India under
CAATSA to strengthen defense ties and counter regional threats.
• Managing Concerns over Human & Religious Rights: The US should avoid interference in India’s internal affairs,
recognizing the diversity of its democratic system.
• Enhance cooperation in emerging technologies and artificial intelligence (AI): It is essential as data regulation,
information sharing, and privacy protection is crucial to national security.
o E.g. U.S.-India Roadmap on Accelerating AI Infrastructure will be prepared under U.S.-India TRUST Initiative.
To know more about USA’s protectionist measures and their impacts, refer to Article 2.1. USA's Protectionist Measures
in January 2025 Monthly Current Affairs Magazine.

2.4.1. INDIA-U.S. CIVIL NUCLEAR AGREEMENT

Why in the News?
The budget's focus on developing 100 GW of nuclear energy by 2047, alongside amendments to the Atomic Energy Act
and Civil Liability for Nuclear Damage Act, can revitalize the dormant India-U.S. Civil Nuclear Agreement.
More on the News
• Also, recently, the United States (U.S.) has removed three Indian nuclear entities from its Entity List.
o The U.S. Entity List restricts trade with foreign entities deemed a national security risk.
• The three entities are: Bhabha Atomic Research Centre (BARC), Indira Gandhi Atomic Research Centre (IGCAR) and
the Indian Rare Earths (IRE).
• Significance of the Removal: Paves the way for implementing the long-pending “The U.S.-India Agreement
Concerning Peaceful Uses of Nuclear Energy”, also known as the 123 Agreement.
The Nuclear Energy Mission, that proposes to amend Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage
Act, 2010 has been discussed in Article 7.1. Nuclear Energy Mission.
About India-U.S. Civil Nuclear Agreement or 123 Agreement
• Background
o 1978: U.S. imposed sanctions on India after India’s 1974 nuclear test.
o 2005: U.S. and India agreed on civilian nuclear cooperation.
o 2008: U.S.-India Civil Nuclear Agreement, or "123 Agreement" (under Section 123 of the U.S. Atomic Energy
Act), was finalized
• Overview of India-U.S. Nuclear Agreement
o International Atomic Energy Agency (IAEA) Safeguards: India permanently placed its civilian nuclear reactors
under IAEA safeguards.
 Further, India signed an Additional Protocol, enabling more intrusive IAEA inspections of civilian nuclear
facilities.
o Nuclear Testing & Security: India put a voluntary moratorium on nuclear weapons testing and strengthened
the security of its nuclear arsenals.
o U.S. Collaboration: U.S. companies were allowed to build nuclear reactors in India and supply nuclear fuel
for its civilian energy program.
o Nuclear Suppliers Group (NSG) Waiver: Despite being a non-signatory to the Non-Proliferation Treaty (NPT),
the NSG lifted its ban, enabling other countries to sell nuclear fuel and technology to India.
 NSG: Formed in 1974 post-India’s Pokhran-I test; regulates nuclear trade.
 NPT: Effective in 1970 under the UN, aims to prevent proliferation, promote disarmament, and enable
peaceful nuclear use.

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Significance of India-U.S. Civil Nuclear Agreement
• Ended India’s Nuclear Isolation: The Agreement marked a historic shift by lifting a three-decade U.S. ban on
nuclear trade with India.
• Legitimized India’s Nuclear Status: It granted India de facto recognition as a nuclear weapons state (despite its
refusal to sign the NPT), allowing access to international nuclear technology and fuel at the same time permitting it
to maintain its nuclear weapons program.
o E.g., Cooperation agreements with France, Russia, UK, Japan, and Canada enabled peaceful nuclear projects
like Jaitapur and Kudankulam plants.
• Strengthened India-US Strategic Partnership: The agreement laid the foundation for deeper U.S.-India ties,
transforming a once-strained relationship into a comprehensive global strategic partnership.
• Enhanced Domestic Energy Security: Nuclear fuel access improved reactor efficiency from 50-55% (2006-2007) to
80%, supported by long-term uranium import agreements with France, Kazakhstan, Australia, Canada, and
Russia.
• Enabled participation in other regimes: Post 2008, India joined 3 major export control regimes- Missile Technology
Control Regime (MTCR) (Joined in 2016); Wassenaar Arrangement (2017); Australia Group (2018).
Challenges in India-U.S. Civil Nuclear Agreement
• Civil Liability Law Conflicts: India's Civil Liability for Nuclear Damage Act (CLND) 2010 created tension with
international norms.
o Section 17B of CLND Act: It allowed operators (Nuclear Power Corporation of India Limited (NPCIL), which
operates India's nuclear power plants) to seek compensation from suppliers (e.g., US companies) in case of
accidents.
• Supreme Court Judgement: In 2010 SC, influenced by Bhopal Gas Tragedy lessons, upheld supplier liability
under India's nuclear law, deterring private investments.
• Commercial Viability Challenges: Westinghouse, a major nuclear power plant manufacturer, filed for bankruptcy
in 2017 jeopardized the implementation of India-U.S. nuclear deal.
o It affected plans to set up six AP1000 nuclear reactors in Kovvada, Andhra Pradesh.
• High Capital Costs of Nuclear Energy: India had gradually shifted its focus toward solar and wind energy, which
are more cost-effective than nuclear power.

Key Features of India’s Civil Liability for Nuclear Damage (CLND) Act, 2010
• Operator Liability: The CLND Act channels strict liability exclusively to the nuclear plant operator.
• Supplier’s Right of Recourse: Section 17 allows operators to seek recourse from suppliers for
defects/intentional damage (via contracts).
• Compatibility with Convention on Supplementary Compensation for Nuclear Damage (CSC): India’s CLND
Act complies with CSC requirements, enabling India to join the CSC.
• Insurance Pool Mechanism: The India Nuclear Insurance Pool (₹1,500 crore) covers operator/supplier
liabilities, reducing litigation risks and enabling market-based risk-sharing.
• No Retrospective Application: Future amendments to liability limits cannot retroactively alter existing contracts,
protecting suppliers under the law at the time of agreement.

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Way forward to operationalize India-U.S. Civil Nuclear Agreement

• Amend India’s Civil Liability for Nuclear Damage (CLND) Act: Align the CLND Act with the international
Convention on Supplementary Compensation (CSC) by channelling all liability solely to the operator of a nuclear
plant.
• Establish an Intergovernmental Understanding on Liability: Formalize an agreement between the U.S. and Indian
governments to confirm the limited liability of foreign private companies involved in nuclear trade.
• Expedite the Implementation of the Insurance Pool: Fully fund and operationalize the insurance pool created
under the CLNDA to provide financial safety for operators and suppliers.
Conclusion
The India-US Civil Nuclear Agreement holds transformative potential for energy collaboration, but resolving liability
challenges is essential to unlock technological partnerships and attract critical foreign investments.

2.5. INDIA-FRANCE RELATIONSHIP

Why in the News?
India and France co-chaired Artificial Intelligence (AI)
Action Summit held in France.
More on the news
• The AI Action Summit, organized by France in Paris,
with UNESCO as a key participant, aimed to ensure
that the development and deployment of AI benefits
societies, economies, and the environment, in the
interest of the common good.
• The Summit witnessed participation from Heads of
State/Government, Heads of International
Organizations, and business leaders from the field.
• France supported India as the host of the next AI
Action Summit.

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Key Dimensions of India-France Partnership
France was the first country with which India launched its first-ever Strategic Partnership on 26 January 1998 to deepen
bilateral relations. Key Areas of Cooperation are:
Cooperation Area Description
Economic • The total trade for FY 2022-23 breached the USD 13 billion trade mark for the first time, with
exports from India crossing USD 7 billion.
Defence • Important exercises: SHAKTI (Army Exercise), Exercise GARUDA (Bilateral Air Exercise), TARANG
SHAKTI (Multinational Air Exercise), Exercise VARUNA (Naval Exercise).
• FRIND-X (France-India Defence Startup Excellence) launched in line with the vision enshrined
in Horizon 2047 and the India-France Defence Industrial Roadmap.
o This collaborative platform brings together key stakeholders across both defence
ecosystems, including defence startups, investors, incubators, accelerators, and academia
• Horizon 2047: roadmap was launched on the 25th Anniversary of the India-France Strategic
Partnership to set the course for the bilateral relationship up to 2047.
o 2047 will celebrate the centenary of India’s independence, the centenary of the
diplomatic relations between the two countries and 50 years of the strategic partnership.
• India-France Defence Industrial Roadmap: Launched for co-design and co-development of
military hardware and space cooperation.
Science • India-France Roadmap on AI: Rooted in the philosophical convergence in their approaches
focusing on the development of safe, open, secure and trustworthy artificial intelligence.
• Creation of the Indo-French Life Sciences Sister Innovation Hub.
• NPCI International Payments Limited (NIPL) and France’s Lyra Collect executed an agreement
to implement Unified Payment Interface (UPI) in France and Europe.

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 Space • France is a key supplier of components and equipment for India's space program. Both nations
signed an agreement for India's first human space mission, Gaganyaan.
• Ongoing projects include joint satellite TRISHNA, maritime domain awareness, payloads,
ground station support, human spaceflight, and professional exchanges.
Civil Nuclear • India and France signed a civil nuclear agreement in 2008 and continue to collaborate on
peaceful nuclear energy, including the Jaitapur Nuclear Power Plant.
• India is also a member of the International Thermonuclear Experimental Reactor (ITER), a
global fusion project based in Cadarache, France.
• Both nations are now working on a partnership for Small Modular Reactors (SMR) and
Advanced Modular Reactors (AMR)
Other Areas • Climate Change: Both nations actively drive the implementation of the 2015 Paris Climate
Agreement and in 2018 Co-launched the International Solar Alliance.
• Culture: To mark 60 years of the India-France cultural agreement (1966), both countries will
hold cultural exchanges as part of the Year of Innovation 2026.
o Year of Innovation 2026 is a cross-sectoral initiative that includes culture. Recently a logo
for this was launched.
• Trilateral Cooperation
o The India-France-Austral: Promotes a free, open, and rules-based Indo-Pacific.
o The India-France-UAE: focuses on solar and nuclear energy, climate action, and
biodiversity protection.
Key Challenges in India-France relations
• Roadblocks in Nuclear Energy Cooperation: France has offered to build nuclear power reactors in Jaitapur, but
challenges remain, including high costs, delays, and concerns over India’s Civil Liability for Nuclear Damage Act
(2010).
o The CLNDA that ensures compensation for nuclear disaster victims created tensions with foreign (including
France) suppliers.
• Divergent Geopolitical Stances: France actively supports Ukraine against Russia, whereas India maintains a neutral
stance, abstaining from UNGA resolutions. This difference in approach could affects diplomatic alignment,
• Intellectual Property Rights (IPRs) Concerns: French businesses cite weak enforcement of intellectual property rights
in India, particularly in pharmaceuticals, fashion, and technology.
o Issues like counterfeiting, prolonged patent approval processes, and inadequate legal protection discourage
French investment and innovation collaborations.
• Trade Barriers and Protectionist Policies: Indian exports face resistance in France, especially in agriculture. The
French rice association’s opposition to recognizing Basmati rice as a Geographical Indication (GI) product is a notable
example. Additionally, stringent EU sanitary and phytosanitary measures create non-tariff barriers for Indian goods.
• Stalled India-EU Free Trade Agreement (FTA): The India-EU Broad-based Trade and Investment Agreement (BTIA) has
been in negotiation since 2007 with no resolution.
o Because of this both countries have not been able to harness their trade potential.
• Limited Private Sector and People-to-People (P2P) Engagement: India-France cooperation is largely government-
driven (G2G), focusing on defense, space, and energy.
o However, business-to-business (B2B) and people-to-people (P2P) engagement remain suboptimal.
Conclusion
Strategic Partnership does not mean agreeing on everything, but handling disagreements privately. India and France have
built this kind of relationship over many years. Both countries need to solve nuclear energy problems, speed up trade
agreements with the EU, and improve intellectual property protections to strengthen economic connections. They also
need to find shared positions on global conflicts like Ukraine to work better together diplomatically.

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2.6. NEWS IN SHORTS
2.6.1. INDIA AND QATAR ELEVATE BILATERAL TIES TO STRATEGIC PARTNERSHIP
Elevation was done during state visit to India by Amir
of Qatar with a focus on strengthening cooperation
in trade, energy, investments, technology, food
security, and people-to-people ties.
• Both sides also aimed to double bilateral trade to
$28 billion in five years.
Other Key outcomes of Visit:
• Two MoUs signed to strengthen the strategic
partnership, covering double taxation
avoidance and fiscal evasion prevention.
• Additional MoUs signed between Qatari
Businessmen Association and CII, and between
Invest Qatar and Invest India to boost business
and investment collaboration.
India Qatar Ties
• Economic Ties: Bilateral trade is USD 14.08
billion (2023-24). (With an effective trade deficit
for India).
o India was among Qatar's top three export
destinations and is also among top three
sources of Qatar’s imports (2022-23).
• Energy Ties: Qatar is India's largest LNG supplier, providing over 40% of imports.
• Defense Ties: India-Qatar Defense Cooperation Agreement was extended for five years in 2018.
o Bilateral Exercises: Za’ir Al Bahr (Naval).
o India also regularly participates in the biennial Doha International Maritime Defense Exhibition and Conference
(DIMDEX) in Qatar.
• Cultural Relations: Regular exchanges and activities under the 2012 Agreement on Cultural Cooperation, with the
Indian Cultural Centre active in Qatar.
o People-to-People Ties: A vibrant Indian community of over 830,000 in Qatar strengthens cultural bonds.

2.6.2. BIMSTEC
Ministry of Youth Affairs and Sports has hosted the first-ever Bay of Bengal Initiative for Multi-Sectoral Technical
and Economic Cooperation (BIMSTEC) Youth Summit in Gandhinagar, Gujarat.
• Its goal is to strengthen youth collaboration across region and facilitating exchange of youth-led initiatives among
BIMSTEC Member Countries.
About BIMSTEC (Secretariat: Dhaka, Bangladesh)
• Genesis: Established in 1997 with the signing of Bangkok Declaration.
• Members: Bangladesh, India, Sri Lanka, Thailand, Myanmar, Nepal, Bhutan.
• Objective: Promote rapid economic development, social progress, and ensure peace and stability across Bay of
Bengal region.
• 7 focus area: Trade; Environment and Climate Change; Security; Agriculture and Food Security; People-to-People
Contact; Science, Technology, and Innovation; Connectivity.’

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2.6.3. INTERNATIONAL CRIMINAL COURT
USA President signed an executive order sanctioning International Criminal Court (ICC).
• The order imposes financial and visa restrictions on individuals and their families who assist in ICC investigations
of American citizens or allies such as Israel.
International Criminal Court (Headquarter:
Hague, Netherlands)
• It is the world’s first permanent international
criminal court.
• Founding Treaty: Rome Statute (adopted in
1998 entered into force in 2002).
• Type of Crimes dealt: Genocide, War Crimes,
Crimes against Humanity & Crime of
Aggression.
• Membership: 125 countries
o India, Israel, the US, Russia and China are
not parties to the Rome Statute.
o Recent Members: Malaysia (2019) Ukraine (2025).
• Management: The Assembly of States Parties is the Court's management oversight and legislative body.
o It is composed of representatives of the States which have ratified or acceded to Rome Statute.
• Official languages: English, French, Arabic, Chinese, Russian and Spanish.
Structural Issues in functioning of ICC
• High dependence on state cooperation as it lacks executive power for arrests and evidence collection.
• Political Pressure: It often gets caught between power politics and human rights and is often used by some States
for targeting opponents.

To know more about ICC, refer to Article 2.4. International Criminal Court (ICC) in May 2024 Monthly Current Affairs Magazine.

2.6.4. ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS)

Three countries (Mali, Burkina Faso and Niger) under military rule have officially left West African regional bloc,
ECOWAS, following diplomatic tensions.
About ECOWAS (Hq: Abuja, Nigeria)
• Genesis: 1975
• Aim: Promote economic cooperation among member states in order to raise living standards and promote
economic development.
o Citizens of ECOWAS countries have the right to live and work in all member states, along with free circulation
of goods.
• Members: 12 (after the current withdrawal)
o Benin, Cabo Verde, Cote d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Nigeria, Senegal, Sierra
Leone, and Togo.

2.6.5. ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES (OPEC)

Recently, Brazil approved entry into OPEC+.
About OPEC
• It is a permanent intergovernmental organization of 12 oil-exporting developing nations.
o India is not a member.
• Genesis: It was created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

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• Objective: To co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and
stable prices for petroleum producers.
• HQ: Vienna (Austria)
• OPEC+
o In response to falling oil prices driven by significant increase in U.S. shale oil output, OPEC signed an agreement
with 10 other oil-producing countries in 2016 to create OPEC+.

2.6.6. INTERNATIONAL ORGANIZATION OF AIDS TO MARINE NAVIGATION (IALA)

India is elected to the Vice Presidency of IALA in Singapore, strengthening its commitment to maritime safety,
navigation, and international cooperation.
About IALA (Hq: Saint-Germain-en-Laye, France)
• Establishment: 1957 as a Non-Governmental Organization (NGO).
• Transition to IGO: In 2024, IALA transitioned from a NGO to an Intergovernmental Organization (IGO).
• Aim: Urges members to cooperate to standardize Marine Aids to Navigation globally, ensuring safe, efficient, and
environmentally friendly vessel movement.
• Member Categories: Three types of IALA Members- National Member, Associate Member and Industrial Member.

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12. PLACES IN NEWS

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 Table of Contents
1. POLITY AND GOVERNANCE ________________4 3.15.6. ‘Becoming A High-Income Economy In A
1.1. Judicial Accountability ____________________ 4 Generation' Report Released By World Bank _______ 47
1.2. Regulating Big Tech ______________________ 5 3.15.7. UNCTAD Released ‘A World Of Debt Report 2024’
____________________________________________ 47
1.3. News in Shorts __________________________ 8
3.15.8. Bilateral Swap Agreement (BSA) ___________ 48
1.3.1. Immigration And Foreigners Bill, 2025 Introduced
3.15.9. Largest INVIT Monetization In Roads Sector __ 48
In Lok Sabha ___________________________________ 8
3.15.10. Digital Footprint-Based Lending For MSMEs _ 49
1.3.2. Standing Committee On Rural Development And
3.15.11. Venture Capital ________________________ 49
Panchayati Raj Report ___________________________ 9
3.15.12. Reinsurance __________________________ 49
1.3.3. Dedicated Cell For Mercy Petitions ___________ 9
3.15.13. Samarth______________________________ 49
1.3.4. Sansad Bhashini Initiative __________________ 10
3.15.14. Uplink Initiative _______________________ 50
1.3.5. Future of Free Speech Index 2025 ___________ 10
1.4. Errata ________________________________ 10 4. SECURITY _____________________________ 51
4.1. Role of Quantum Computing in National Security
2. INTERNATIONAL RELATIONS ______________12
_________________________________________ 51
2.1. Bilateral Investment Treaty (BIT) ___________ 12
4.2. News in Shorts _________________________ 53
2.2. Indian Ocean Rim Association (IORA) _______ 13
4.2.1. Trends in International Arms Transfers, 2024 __ 53
2.3. India-Mauritius Bilateral Relations _________ 15 4.2.2. Smuggling of Gold in India _________________ 53
2.4. India New Zealand Relations ______________ 16 4.2.3. C-Dot Trinetra ___________________________ 54
2.5. News in Shorts _________________________ 17 4.2.4. Missile ‘Gandiva’ _________________________ 54
2.5.1. AustraliA’s New Roadmap For Economic 4.2.5. Ashwini ________________________________ 54
Engagement With India _________________________ 17 4.2.6. Sonic Weapon ___________________________ 54
2.5.2. Five Eyes Intelligence (FVEY) Alliance _________ 18 4.2.7. Golden Dome ___________________________ 55
2.5.3. Squad Alliance ___________________________ 18 4.2.8. Convention On Cluster Munitions ___________ 55
2.5.4. Ottawa Convention _______________________ 18 4.2.9. Exercises In News ________________________ 56
2.5.5. Raisina Dialogue 2025 _____________________ 19 5. ENVIRONMENT ________________________ 57
2.6. Errata ________________________________ 19 5.1. Biofuels _______________________________ 57
3. ECONOMY _____________________________20 5.2. National Board for Wildlife (NBWL) ________ 58
3.1. Liquidity Deficit ________________________ 20 5.3. Project Lion and IUCN Green Status of Species 60
3.2. Incentive Scheme For Promotion of Low-Value 5.4. River Dolphins _________________________ 62
BHIM-UPI Transactions ______________________ 21 5.5. Jumping Spiders ________________________ 64
3.3. Priority Sector Lending ___________________ 22 5.6. Marine Heatwaves ______________________ 64
3.4. 50 years of Microfinance _________________ 24 5.7. Geological Survey of India ________________ 66
3.5. Remittances To India ____________________ 26 5.8. News in Shorts _________________________ 67
3.6. Unified Pension Scheme (UPS)_____________ 27 5.8.1. IUCN Green List__________________________ 67
3.7. Self-Reliance in Electronics Component 5.8.2. 58th Tiger Reserve (TR) ___________________ 68
Manufacturing _____________________________ 29 5.8.3. Biodiversity Heritage Sites (BHS) ____________ 69
3.8. Equalisation Levy _______________________ 30 5.8.4. United Nations World Water Development Report
3.9. Farmer Producer Organisations (FPOs) ______ 31 ____________________________________________ 69
3.10. India’s Bio-Economy ____________________ 33 5.8.5. Global Energy Review _____________________ 69
3.11. National Technical Textiles Mission (NTTM) _ 35 5.8.6. World Air Quality Report, 2024 _____________ 70
5.8.7. Budget For Climate Action _________________ 70
3.12. National Waterways (Construction of
5.8.8. 2030 Global Forest Vision _________________ 71
Jetties/Terminals) Regulations, 2025 ___________ 38 5.8.9. Antarctic Circumpolar Current (ACC) _________ 71
3.13. Coal Sector for India’s Development _______ 40 5.8.10. Deep-Sea Ecosystems Discovered in Antarctica 72
3.14. National Programme for Dairy Development 5.8.11. Okjökull Glacier_________________________ 73
(NPDD) ___________________________________ 42 5.8.12. Narwhal _______________________________ 73
3.15. News in Shorts ________________________ 44 5.8.13. Blue Flag ______________________________ 74
3.15.1. PAC Calls For Review Of GST _______________ 44 6. SOCIAL ISSUES _________________________ 75
3.15.2. Making CSR, IBC & ESG Effective ___________ 45 6.1. Cinema and Society _____________________ 75
3.15.3. Parliamentary Standing Committee on Agriculture 6.2. Social Media and Adolescents _____________ 77
Submits Report on Fisheries Sector _______________ 45
6.3. Changing Institution of Family _____________ 79
3.15.4. Scheme For Cooperative Sugar Mills ________ 46
3.15.5. Tobacco _______________________________ 46
6.4. Women-Led Development ________________ 81
6.5. News in Shorts _________________________ 83

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2. INTERNATIONAL RELATIONS
2.1. BILATERAL INVESTMENT TREATY (BIT)
Why in the News?
An announcement was made in the Union Budget 2025 regarding the revision of the model Bilateral Investment Treaty
(BIT) text to make it more investor-friendly.
About Bilateral Investment Treaties (BITs)
• Also referred to as International Investment Agreements (IIAs), they are a tool for providing assurance to foreign
investors against measures that may adversely impact their investments while assuring state’s sovereign right to
regulate.
• Concept: They provide rights to investors (through the investor-state dispute settlement) or to home states like
investing state like US (through state-state dispute settlement), to bring a claim against a host state (receiving
foreign investment, e.g., India).
• India approved new Model BIT Text in 2015, which replaced Indian Model BIT, 1993.
o Since then, Model text 2015 is used for (re)negotiations of BITs and investment chapters of Comprehensive
Economic Cooperation Agreements (CECAs)/ Comprehensive Economic Partnership Agreements (CEPAs) / Free
Trade Agreements (FTAs).
• Recent countries with which BITs were signed: Uzbekistan (2024), UAE (2024)
Key Features of Model BIT 2015
• “Enterprise” based definition of investment: It means an enterprise that has been constituted, organised, and
operated in good faith by an investor in accordance with the domestic laws of the country
• Non-discriminatory treatment through due process: Each Party shall accord full protection and security to the
investments and investors.
• National Treatment: Treating foreign investors at par with domestic companies.
• Protection from expropriation: Limits country’s ability to dominate foreign investments in its territory.
• Exclusion of matters to preserve the regulatory authority: Such as government procurement, taxation,
subsidies, compulsory licenses and national security.
• Investor State Dispute Settlement (ISDS) mechanism: A foreign investor should first exhaust local remedies
at least for a period of 5 years before going for ISDS mechanism.
Issues with India’s present BIT Architecture
• Ambiguity: It lacks clarity in terms such as "investment,"
“customary international law (CIL)” etc. leading to disputes and
challenges in treaty interpretation by ISDS tribunal.
o E.g., India has received 37 notices of dispute, with 8 still
active at various arbitration stages. (Committee on External
Affairs (2021-22))
• Mandatory waiting period to exhaust local remedies: Given
India’s overburdened judiciary, this requirement could delay
dispute resolution and increase legal uncertainties for investors.
• Restrictions on the jurisdiction of ISDS tribunals: They are
barred from reviewing the “merits” of a decision made by the
domestic court without defining what “merits” means.
• Limited rights to foreign investors: Due to following issues in
model BIT -
o Exclusion of Most Favoured Nation (MFN) provision and the Fair and Equitable Treatment (FET) standard.
o Exclusion of tax-related regulatory measures reduces investor confidence.
o Tribunals cannot mandate policy changes, restricting awards to monetary compensation.

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• Exclusion from ICSID Convention: India is not a member of International Centre for Settlement of Investment
Disputes (ICSID), which limits options for investors seeking enforcement within India.
o ICSID, established in 1966 by the ICSID Convention, is a World Bank institution that provides facilities for
conciliation and arbitration of investment disputes between contracting states and nationals of other contracting
states.
Way forward
• Providing greater clarity of terminologies for states and investors and curbs arbitral discretion.
o E.g., India-UAE BIT specifically lists when state action will amount to a treaty violation instead of linking it to terms
like customary international law (CIL).
• Eliminating/Reducing mandatory waiting period and allowing investors to choose between domestic courts or
international arbitration upfront.
• Including MFN provision with appropriate qualifications to prevent “treaty shopping” while ensuring non-
discrimination.
o Treaty shopping typically involves the attempt to indirectly access the benefits of a tax treaty between two
jurisdictions by a person who is not a resident of one of those jurisdictions, often through complex structures and
arrangements.
• Adopting a narrowly defined FET provision, similar to that in the European Union’s new-generation investment
treaties, to better balance investor and state rights by outlawing arbitrary state behaviour.
• Becoming a signatory to the ICSID Convention to enhance investor confidence by providing a globally recognized
enforcement mechanism.
• Removing the blanket exclusion of tax measures, while allowing ISDS tribunals to review abusive or discriminatory
tax actions while deferring to national authorities on policy matters.
• Developing Domestic architecture in Investment Arbitration to reduce reliance on foreign legal firms and control
arbitration costs.
o Promote and develop the New Delhi International Arbitration Centre (NDIAC) to make India a global hub for
investment arbitration.
o Create a pool of domestic lawyers and law firms specialized in international investment arbitration.

2.2. INDIAN OCEAN RIM ASSOCIATION (IORA)

Why in the News?
India will assume the chair of
IORA in 2025 for the next two
years.
About IORA
• Genesis: An inter-
governmental
organization
established in 1997 with
its vision originating
during a visit by Nelson
Mandela to India in
1995.
• Objective: Encourage
regional cooperation
and sustainable
development within
the Indian ocean
region.
• Secretariat: Mauritius

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• Members: 23 Members and 12 dialogue partners (see infographic)
• IORA Governance:
o IORA Council of Ministers: Highest decision making body comprised of the Minister of Foreign Affairs (or
equivalent) of all Member States which meets annually.
o Troika: An institutional mechanism consisting of the current Chair, Vice-Chair, which is the future chair, and
past Chair (referred to as previous chair in the Charter) of the IORA.
• Flagship Projects:
o Indian Ocean Dialogue (IOD): A Track 1.5 forum launched in 2013, encouraging open dialogue among member
states, on key strategic issues in the Indian Ocean Region.
o IORA Sustainable Development Program (ISDP): Introduced in 2014 for the least developed countries (LDCs)
that require assistance and support to conduct
projects.
Significance of IORA bloc for India
• Geostrategic and economic significance of Indian
Ocean region: Indian Ocean transports 75% of global trade
and 50% of daily oil consumption and the intra IORA trade
is around $800bn (2022).
• Challenges in other regional organisations: E.g., SAARC
(South Asian Association for Regional Cooperation) and
BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral
Technical and Economic Cooperation), face their own
challenges like political instability, stagnant negotiations
etc.
• Safe space: IORA is a less contentious space for India and
other countries of the region that wish to keep out of big-
power rivalries.
o E.g., the QUAD (Quadrilateral Security Dialogue) is
U.S.-led, along with military allies Australia and Japan.
• Maritime Security: IORA upholds the United Nations
Convention on the Law of the Sea principles and organizes
regular workshops on cooperation on maritime security.
Issues related to functioning of IORA
• Funding Constraints: IORA’s funds are insufficient to support its growing areas of engagement.
o Competition with other regional bodies like BIMSTEC, Indian Ocean Naval Symposium (IONS) etc. further
dilutes focus and resource.
• Institutional Weaknesses: The Secretariat in Mauritius has limited staff and insufficient technological integration
for effective governance.
• Geopolitical Tensions: Rivalries like India-Pakistan tensions, Russian-Ukraine war and China's involvement through
the Belt and Road Initiative complicate cooperative dialogue among members and partners.
• Other issues: Lack of Private Sector Engagement in policy-making and funding contributions; non-transparent
investments and unsustainable debt; Economic disparities among members; Maritime security Concerns in the
Indian ocean region like Piracy off the horn of Africa, Houthi attacks etc.
Conclusion
While aligning IORA's goals with India's SAGAR (Security and Growth for All in the Region) vision, India can utilize its
chairmanship to promote regional stability and development. To ensure IORA's long-term viability, sustainable funding
can be secured through seed funding, PPPs, and industry engagement. Further, institutional capacity can be enhanced
through visibility, high-level summits, and member-state alignment, along with strengthening maritime security through
reinforced security frameworks and naval cooperation.

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2.3. INDIA-MAURITIUS BILATERAL RELATIONS
Why in News?
India and Mauritius elevated their ties to an ‘enhanced strategic partnership’ during Indian Prime Minister’s visit to the
country.
More about news
• Prime Minister of both the countries inked various
pacts to boost cooperation in several sectors,
including maritime security, and promote trade
in local currencies.
• India also announced India’s new vision for the
Global South, naming it “MAHASAGAR (Mutual
and Holistic Advancement for Security and Growth
Across Regions)”.
• A navigational chart of St. Brandon Island also
handed over.
Significance of Mauritius for India
India established diplomatic relations with Mauritius in 1948, before it achieved independence.
Significance of Mauritius could be outlined under the following dimensions
Dimensions Description
Strategic • Mauritius’s location in the western Indian Ocean makes it vital for India’s maritime and regional
Location security, especially amid China’s rising influence.
• It helps India tackle piracy, terrorism, trafficking, and illegal fishing.
Geopolitical • Known as the “Star and Key of the Indian Ocean,” Mauritius is at the heart of growing global
Importance interest from China, Europe, Gulf nations, and others.
• China has established its base in Djibouti, which has made Mauritius a strategic hotspot.
Maritime • Mauritius is key to India’s efforts to secure the Indian Ocean. It is part of the Colombo Security
Security Conclave alongside India, Sri Lanka, Maldives, and Bangladesh.
Partner • India has developed infrastructure on Mauritius’ Agaléga island, set up coastal radar stations,
and provided access to its naval Information Fusion Centre.
Airspace • India inaugurated a new airstrip and jetty on the Agalega island of Mauritius.
Cooperation • With this upgrade of the existing 800-metre airstrip into a full-length airfield, India can station
and deploy these large carriers directly on the island, providing security in the region.
Business and • As part of the African Continental Free Trade Area (AfCFTA), Mauritius serves as a key gateway
Economic for India’s trade and investment in Africa.
Gateway to • Owing to India-Mauritius Double Taxation Avoidance Agreement (DTAA), it is a major route for
Africa investment into India and a platform for Indian businesses entering Africa.
Cultural Ties • Around 70% of Mauritius’s population is of Indian origin, strengthening cultural and people-to-
people ties.
• The legacy of the Girmitiyas (Indentured Indian labourers) forms a deep historical bond between
the two nations.
What are the challenges in India-Mauritius Relations?
• Trade and Taxation Agreements: Mauritius has sought
amendments to its trade and taxation agreements with India to
restore its position as a preferred investment conduit.
o Since the 2016 treaty revision, FDI inflows from Mauritius to
India have sharply declined. Thus, Mauritius is seeking parity
with Singapore and positions itself as a gateway for Indian
investors targeting African markets.

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• China's Growing Influence: China has funded major infrastructure projects, including an airport terminal, the
Bagatelle Dam, a sports complex, and a cruise ship terminal.
• Balancing Ethnic Engagement: With a diverse population, including Indian-origin, African, and European
communities, India has to engage all groups to maintain balanced relations with Mauritius.
• Drug Trafficking: Mauritius has become a drug trafficking hub, posing a risk to India’s maritime interests.
• Environmental Risks: Mauritius faces climate challenges like rising sea levels, cyclones, and coastal degradation.
Conclusion
India’s role as a leading development partner and first responder in times of crisis has reinforced its image as a
reliable and supportive friend. While Mauritius continues to balance ties with global powers, it values India’s
consistent support in boosting its sovereignty and strategic autonomy. The Prime Minister’s visit to Mauritius signals
India’s deep commitment to further strengthening this unique, multi-dimensional partnership in both regional and global
arenas.
What is MAHASAGAR?
• MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) is an expanded version
of India’s 2015 maritime policy, SAGAR (Security and Growth for All in the Region).
o While SAGAR focused on India’s immediate neighborhood, MAHASAGAR has a wider reach, especially in the
Global South.
> SAGAR facilitated deepening maritime ties through information exchange, coastal surveillance,
infrastructure development, and enhancing security capabilities.
• Key Focus Areas
o Trade for Development
o Mutual Security
o Technology Sharing
o Financial Assistance
• New Initiatives under MAHASAGAR:
o IOS (Indian Ocean Ship) Sagar: Promotes maritime cooperation with Indian Ocean Region (IOR) countries.
o AIKEYME (Africa-India Key Maritime Engagement): A large-scale naval exercise with African nations to
boost maritime security, interoperability, and unity (AIKEYME means "unity" in Sanskrit)
NOTE:
• MAHASAGAR (Maritime Heads for Active Security And Growth for All in Region) Launched by Indian Navy in 2023
aligns with India's SAGAR vision
• It is a bi-annual initiative that brings together naval leaders and maritime officials from Bangladesh, Comoros,
Kenya, Madagascar, Maldives, Mauritius, Mozambique, Seychelles, Sri Lanka, and Tanzania.

2.4. INDIA NEW ZEALAND RELATIONS

Why in the News?
Prime Minister of New Zealand visited India on an official five day visit.
Key Outcomes of the Visit
• New Zealand (NZ) joined the Indo-Pacific Oceans’ Initiative (IPOI) and becomes member of Coalition for Disaster
Resilient Infrastructure (CDRI).
• Launch of negotiations on Free Trade Agreement (FTA) and for an arrangement facilitating the mobility of
professionals and skilled workers.
To know more about Indo-Pacific Oceans’ Initiative (IPOI) and Coalition for Disaster Resilient Infrastructure (CDRI) refer
to Article 2.5. Indo-Pacific Oceans Initiative (IPOI) and Article 5.4.10. Coalition for Disaster Resilient Infrastructure
(CDRI) marks its Fifth Anniversary of September 2024 Monthly Current Affairs magazine.
Contemporary relevance of Bilateral relations
• Bilateral Trade: In 2023-24, India-New Zealand trade totaled $1.75 billion, with India having a trade surplus of 0.07
billion USD.

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 o New Zealand exports to India: Wool, iron & steel, fruit & nuts, aluminum.
o India exports to New Zealand: Pharmaceuticals,
mechanical machinery, textiles, pearls & precious stones.
• Defence and Security Cooperation: E.g., Both countries’
navies are working together in the Combined Task Force-150
for maritime security in the Indian Ocean.
• Mutual support on multilateral forums: E.g., both advocate
the need for UN reforms, including of the Security Council
through expansion in its membership, to make it more
representative, credible and effective.
o NZ supports India’s candidature for permanent
membership in a reformed UN Security Council.
• Areas of strategic alignment: Both countries share common
stance with respect to Nuclear Disarmament and Non-
Proliferation; Anti-terrorism, advocating for concrete actions
against UN-proscribed terrorist organizations; Open,
inclusive, stable and prosperous Indo-Pacific upholding
rules-based international order and China's growing
influence in the Indo-Pacific.
o NZ identified India as a priority country in its 2011 “Opening
Doors to India” policy.
• Safety and Contribution of Indian Diaspora: India is the
largest source of skilled migrants and 2nd largest source of international students in NZ.
• Green energy partnership: E.g., NZ became a member of the India led International Solar Alliance (ISA) in 2024.
• Close sporting links: Particularly in cricket, hockey and other Olympic sports.
o ‘Sporting Unity’ events have been planned in 2026, to recognise and celebrate 100 years of sporting contact
between India and New Zealand.
Challenges in bilateral relations
• Long Delayed FTA: Despite 10 negotiation rounds (2010–2015), the India-NZ FTA remained stalled due to structural
economic differences, particularly over dairy exports and agricultural tariffs.
o India's dairy industry expresses concern over potential disruption from New Zealand's milk producers, as FTA
discussions could open the sector to foreign competition, impacting domestic prices.
• Security concerns: India has raised its concern over anti-India activities in New Zealand including protests and a
Khalistan referendum held by the ‘Sikhs for Justice’ group.
• Other concerns: Low bilateral trade reflects untapped potential; New Zealand's strong trade ties with China etc.
Conclusion
Both countries should aim for an FTA that addresses sensitivities of Indian industries while providing reciprocal benefits.
Establishing a bilateral task force can help in addressing sensitive issues like separatist movements while ensuring
respect for democratic freedoms and lawful protests. Further, regular high-level discussions on geopolitical issues like
China’s influence can align their approaches to regional stability.

2.5. NEWS IN SHORTS

2.5.1. AUSTRALIA’S NEW ROADMAP FOR ECONOMIC ENGAGEMENT WITH INDIA
Australia’s ambitious roadmap focuses on deepening and diversifying its trade and investment ties with India identifying
four "superhighways of growth" - clean energy, education and skills, agribusiness, and tourism.
Key highlights of the Roadmap
• Identifies nearly 50 specific opportunities to focus and accelerate Australia's engagement with India in several
areas such as defence industries, sports, culture, space, and technology.

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• Australia-India Trade and Investment Accelerator Fund: It will help Australian businesses unlock new commercial
opportunities in India.
• Australia-India Business Exchange (AIBX) to accelerate B2B engagement.
• Reinvigorated Australia-India CEO Forum: To provide a key business-to-business mechanism to accelerate
commercial engagement.
• Maitri ('friendship') Grants programme: To enhance P2P, B2B and cultural links between the two nations.
Evolving relationship between India and Australia
• Trade: Economic Cooperation and Trade Agreement (ECTA) 2021 gave a boost to free trade with Australia aiming
to place India among its top three export markets by 2035.
• Nuclear cooperation: Civil Nuclear Cooperation Agreement signed in 2014.
• Strategic partnership: Australian Government in its National Defense Strategy (NDS) 2024 identified India as ‘top-
tier security partner’ in the Indo-Pacific Region.
• Defense cooperation: Mutual Logistics Support Arrangement and Defense Science and Technology Implementing
Arrangement have been signed.
o AUSTRAHIND, AUSINDEX, Pitch Black are a joint military exercise between two countries.

2.5.2. FIVE EYES INTELLIGENCE (FVEY) ALLIANCE

Recently, intelligence officials from several countries—including representatives from the Five Eyes (FVEY) alliance—
convened in Delhi.
About Five Eyes Intelligence (FVEY) Alliance
• Its foundation was laid with the British-U.S. Communication Intelligence Agreement (BRUSA), signed in 1946
focussing on signals intelligence (SIGINT),
o SIGNIT covers areas like traffic analysis, decryption, and acquisition of communication documents.
• Core Members: U.S.A., U.K. Canada (joined in 1948), Australia and New Zealand (both joined in 1956)
• Five Eyes Intelligence Oversight and Review Council (FIORC): It was created in 2016 as the “non-political
intelligence oversight, review, and security entities” of the member countries.
• Scope and Purpose:
o Geopolitical Intelligence: Monitoring emerging threats, such as terrorism, Chinese influence, and cyber threats.
o Comprehensive Intelligence: Medical intelligence, counterterrorism, geospatial intelligence, etc.
o Continuous Cooperation: Intelligence products continuously shared through secret databases.

2.5.3. SQUAD ALLIANCE

Philippines urged India to Join ‘Squad’ Alliance.
About Squad alliance
• An informal minilateral alliance involving the US, Japan, Australia, and the Philippines.
• Aim: Address aggression and maintaining stability in the Indo-Pacific Ocean Region, etc.
• It is different from Quad which consists of India, USA, Japan and Australia

2.5.4. OTTAWA CONVENTION

North Atlantic Treaty Organization (NATO) members Poland, Lithuania, Latvia and Estonia plan to withdraw from the
Ottawa convention owing to military threat from Russia.
About Ottawa Convention
• Official Name: Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel
Mines and on their Destruction
• Objective: Puts obligations on State parties to not use, develop, stockpile anti-personnel mines under any
circumstances.
o Further obligates them to destroy such mines.
• Adopted at Oslo (1997), signed at Ottawa, opened for signature from 1997-1999, enforced in 1999.

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• Signatories: 133, India not a signatory.
• Depositary: Secretary-General of the United Nations.

2.5.5. RAISINA DIALOGUE 2025

The 10th edition of the Raisina Dialogue was recently held in New Delhi.
Raisina Dialogue 2025
• Hosted by: Observer Research Foundation with the Ministry of External Affairs, Government of India.
• About: India’s annual flagship conference on geopolitics and geo-economics, committed to addressing the most
challenging issues facing the international community.
• Participation: Representatives from about 125 countries including Ministers, Heads of State and Governments,
Academicians, Think Tanks, Youth, etc.
• Theme (2025): "Kālachakra - People, Peace and Planet”.
o Discussions focussed on six thematic pillars like Green Trilemma, Digital Planet, etc.

2.6. ERRATA
In the Monthly Current Affairs Magazine (February 2025), under article 2.6.3. International Criminal Court, the
information regarding recent members was incorrectly mentioned: Malaysia (2019) Ukraine (2025).
The correct information is Malaysia is not member of ICC (Malaysia withdraws from ICC one month after signing treaty).
Also Ukraine joined ICC in 2024.

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11. PLACES IN NEWS

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 Table of Contents
1. POLITY AND GOVERNANCE ________________ 4 3.5.11. International Standards of Accounting And
1.1. Separation of Powers ____________________ 4 Reporting (ISAR) ______________________________ 51
1.2. Assent to State Bills ______________________ 5 3.5.12. Bombay Stock Exchange (BSE) _____________ 52
3.5.13. Cape Town Convention and Protocol ________ 52
1.3. States’ Demand for Autonomy _____________ 8
3.5.14. Nano Sulphur __________________________ 52
1.4. 5 Years of SVAMITVA scheme _____________ 10 3.5.15. Saline Aquaculture Hubs _________________ 52
1.5. News in Shorts _________________________ 12
4. SECURITY _____________________________ 54
1.5.1. Deputy Speaker of the Lok Sabha ___________ 12
1.5.2. Inaction By Speakers on Defection Petitions___ 13
4.1. Terrorism in Jammu and Kashmir__________ 54
1.5.3. Immigration and Foreigners Bill, 2025 _______ 14 4.2. India’s Defence Exports _________________ 56
1.5.4. Panchayat Advancement Index (PAI) ________ 14 4.3. Biological Weapons Convention (BWC) _____ 58
2. INTERNATIONAL RELATIONS ______________ 15 4.4. News in Shorts _________________________ 60
2.1. Emerging World Order ___________________ 15 4.4.1. Vibrant Villages Programme-II (VVP-II) _______ 60
4.4.2. I4C ____________________________________ 61
2.2. Inward-Looking Development Strategies ____ 17
4.4.3. Rafale Marine (M) Fighter Jets ______________ 61
2.3. Indus Waters Treaty_____________________ 19 4.4.4. Long-Range Glide Bomb ‘Gaurav’ ____________ 62
2.3.1. Simla Agreement ________________________ 20 4.4.5. Mk-II(A) DEW system _____________________ 62
2.4. 75 Years of India-China Relations __________ 22 4.4.6. Project Varsha ___________________________ 63
2.5. China’s Rare Earth Elements Export Control _ 24 4.4.7. Exercises In News ________________________ 63
2.6. India – Sri Lanka Relations ________________ 25 5. ENVIRONMENT ________________________ 64
2.7. India-Saudi Arabia Relations ______________ 27 5.1. Eco-centric Approach ___________________ 64
2.8. India-UAE Relations _____________________ 29 5.2. Revised Classification of Industries ________ 65
2.9. 6th BIMSTEC Summit ____________________ 30 5.3. Bio-Input Resource Centres (BRCs) ________ 67
2.10. Indian Diaspora _______________________ 32 5.4. Functional De-extinction_________________ 68
2.11. News in Shorts ________________________ 34 5.5. News in Shorts _________________________ 69
2.11.1. SAARC Visa Exemption Scheme ____________ 34 5.5.1. Command Area Development and Water
2.11.2. BRICS Labour & Employment Minister’s Meet Management (M-CADWM)______________________ 69
2025 Adopts Declaration _______________________ 34 5.5.2. Green Municipal Bonds ___________________ 70
2.11.3. ASEAN-India Trade In Goods Agreement (AITIGA) 5.5.3. Similipal Tiger Reserve ____________________ 71
___________________________________________ 35 5.5.4. Gandhi Sagar Wildlife Sanctuary ____________ 71
2.11.4. Extradition ____________________________ 35 5.5.5. International Big Cat Alliance _______________ 72
2.11.5. India-Thailand Strategic Partnership ________ 36 5.5.6. Global Geoparks Network (GGN) ____________ 72
2.11.6. India’s Extended Continental Shelf Claim ____ 36 5.5.7. Particulate Emission Trading Market in Gujarat 73
2.11.7. Transshipment Facility For Bangladesh ______ 37 5.5.8. Net Zero Framework for Global Shipping ______ 74
2.11.8. Heard And McDonald Island ______________ 37 5.5.9. WHO Global Conference on Air Pollution and
2.11.9. Morag Axis ____________________________ 38 Health ______________________________________ 74
3. ECONOMY ____________________________ 39 5.5.10. Baku to Belem Roadmap _________________ 75
3.1. Innovation Ecosystem for Deep Tech _______ 39 5.5.11. Aim4nature Initiative ____________________ 75
3.2. Electronics Component Manufacturing Scheme 5.5.12. Vulture Conservation And Breeding Centre (VCBC)
_________________________________________ 40 ___________________________________________ 75
3.3. Pradhan Mantri Mudra Yojana (PMMY) _____ 42 5.5.13. Small Hive Beetle (SHB) __________________ 75
3.4. One State, One RRB _____________________ 45 5.5.14. Aral Sea _______________________________ 76
3.5. News in Shorts _________________________ 46 6. SOCIAL ISSUES _________________________ 77
3.5.1. India’s External Debt _____________________ 46 6.1. Workplace Automation__________________ 77
3.5.2. MOSPI Releases CAPEX (Capital Expenditure) 6.2. News in Shorts _________________________ 78
Survey ______________________________________ 47 6.2.1. MoSPI Released “Women and Men In India 2024:
3.5.3. Coastal Shipping Bill, 2025 _________________ 48 Selected Indicators And Data” ___________________ 78
3.5.4. New Steel Policy_________________________ 48 6.2.2. AI Kiran ________________________________ 79
3.5.5. Tax Collected at Source ___________________ 49 6.2.3. IMF Report Stresses on Silver Economy _______ 79
3.5.6. Safe Harbour ___________________________ 49 7. SCIENCE AND TECHNOLOGY ______________ 80
3.5.7. Liquidity Coverage Ratio (LCR) ______________ 49 7.1. Green Hydrogen Certification Scheme of India 80
3.5.8. IMF’s Global Financial Stability Report _______ 50 7.2. News in Shorts _________________________ 81
3.5.9. Global Trade Outlook and Statistics 2025 _____ 50 7.2.1. Non-Nuclear Hydrogen Bomb ______________ 81
3.5.10. UNCTAD Releases Technology and Innovation 7.2.2. Jevons Paradox __________________________ 82
Report 2025 _________________________________ 51

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2. INTERNATIONAL RELATIONS
2.1. EMERGING WORLD ORDER
Why in the News?
At the BIMSTEC meeting, External Affairs Minister highlighted
that the new world order will be regional and agenda-
specific.
About World Order
• Definition: World order refers to the arrangement of
power and authority that provides the framework for the
conduct of diplomacy and world politics on a global
scale.
o In the world affairs, ‘order’ brings a certain method
in the way one country conducts its affairs with other
countries.
Factors contributing to Emergence of New World Order
• Decline of the Post-War Multilateral Order: For
instance, the United Nations, once a pillar of global
governance, appears outdated. Multilateralism is no
longer effective in managing global threats.
o E.g., UN has struggled to address major conflicts
like the Russia-Ukraine war and the Gaza crisis.
• Rise of Polycrisis and Global Instability: The world is
facing simultaneous, interconnected crises (wars,
climate change, populism).
o E.g., Russia’s invasion of Ukraine, trade war, cyber
warfare, pandemic, etc.
• Rise of Regional & Agenda-specific geopolitics: For
instance, the emerging world order emphasizes
empowering the Global South by strengthening
independent multilateral platforms.
o E.g., BRICS aims to reduce over-reliance on
traditional powers and enhance South-South
cooperation.
o There’s a shift toward being “non-West” without
being “anti-West”.
• Rise of Multipolarity: The emerging world order is no longer dominated by one (unipolar) or two (bipolar)
superpowers but shaped by several influential nations asserting autonomy.
o For instance, India demonstrated its independent stance by maintaining ‘strategic autonomy’ and abstaining
from UN votes condemning Russia during the Ukraine conflict.
• Rise of Strategic Self-Help: “World is moving to an era of self-help. Every region needs to look out for itself —
whether it is in food, fuel and fertilizer, vaccines or speedy disaster response.” – EAM S. Jaishankar
o For instance, shorter supply chains (Near Shoring) & immediate neighbours (e.g., BIMSTEC countries) have
much more salience now.
Opportunities for India in an Emerging World Order
• India as Voice of the Global South: India’s pluralistic, non-Western democratic model offers an alternative to
existing world order that neglects the needs of the Global south.
o E.g., India hosting the G20 under “Vasudhaiva Kutumbakam” theme; advocacy for Global South and its
aspiration to be a “friend to the world” (‘Vishvamitra).
o E.g., Convened “Voice of the Global South Summits” to foster dialogue among developing nations.

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• Balanced Multipolarity: Diffusion of power can reduce hegemony and promote democratic internationalism.
o E.g., India’s balancing act in BRICS, SCO, QUAD and G20.
• Issue-based cooperation (food, tech, climate): Through compact, efficient platforms.
o E.g., BIMSTEC’s focus on connectivity and disaster management; IPEF (Indo-Pacific Economic Framework).
• Digital and Tech Leadership: India leading with platforms like CoWIN, UPI, and Open Network for Digital Commerce
(ONDC).
• Climate Diplomacy: Championing green growth and climate finance reform.
o E.g., International Solar Alliance (ISA); Coalition for Disaster Resilient Infrastructure (CDRI).
• Cultural and Civilizational Soft Power: Promotion of India’s civilizational ethos as a unifying force in a divided world.
o E.g., International Yoga Day, Indian diaspora diplomacy, Buddhism diplomacy with ASEAN.
Challenges Before India’s Role in the Emerging World Order
• Fragmentation of global cooperation due to national interests: E.g., The weakening of the World Trade
Organization (WTO) dispute settlement mechanism (U.S. blocking new appointments to the appellate body).
o Hence, dysfunctional global institutions hinder India’s trade potential, reflected in its low share of global trade
(4.3% in 2023).
• Climate Justice Divide: Developed vs developing countries over climate finance and responsibility.
o E.g., COP27 debate on Loss & Damage Fund.
• Geopolitical Rivalries and Regionalism: Shift from global institutions to regional/informal alignments weakens
consensus-building.
• Deglobalization: Nationalism and protectionism reduce economic interdependence.
o E.g., U.S.–China trade war; EU’s CBAM (Carbon Border Adjustment Mechanism) will make India’s export to EU
costly and hence uncompetitive.
• Other challenges: Balancing relationships with competing global powers (US and China); Increasing on-the-ground
diplomatic presence; Addressing long-standing border disputes and managing regional tensions, etc.

Conclusion
As the emerging world order gives rise to new definitions of interstate relations, behaviours, and doctrines. India must
seize this opportunity to translate its multipolar vision into action by leading the creation of fair, inclusive, and future-
ready global rules and institutions.

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2.2. INWARD-LOOKING DEVELOPMENT STRATEGIES
Why in the News?
The U.S. introduced a Reciprocal Tariff Plan proposing a 10% base tax on all imports and higher tariffs on countries
that have trade surpluses with the U.S.
More on the News
• This move signals a shift towards inward-looking development strategies, moving away from earlier outward-
oriented policies.
• It reflects the broader trend of deglobalization and is seen as a key factor behind ongoing trade wars, especially
between the U.S. and China.
• Other Key Examples of Inward-looking development Strategies
o China’s strategic export controls of rare earth minerals like Germanium.
o India’s Make in India, Product Linked Incentive (PLI) scheme, Atmanirbhar (Self-Reliant) India campaign.
Inward-Looking Development Strategies
● Definition: Inward-looking development strategy focuses on indigenous raw materials and production oriented
towards the internal market. It prioritizes domestic economic development through policies that protect local
industries and minimize external dependencies.
● Genesis: Different countries have adopted these strategies at different time periods historically. For example,
o Following the World War I and the Great Depression, countries in Latin America turned towards inward looking
development strategy to counter the economic crises caused due to free trade that began in the 19th century.
o After independence, influenced by colonial exploitation and a desire for economic autonomy, the Indian
government focused on building domestic industries and adopted a strong protectionist stance.

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What Are the Major Objectives and Approaches for Inward-Looking Development Strategies?
Objectives Approaches
National Security • Countries develop domestic supply chains in key sectors (e.g. semiconductors, pharma,
and Strategic renewable energy) to reduce dependency on global markets to avoid supply shocks during
Autonomy crises like COVID-19 or geopolitical conflicts. For Example,
o United States’ CHIPS Act provides subsidies to revitalize domestic semiconductor
manufacturing.
o Japan’s Economic Security Promotion Act (2022) aims to secure critical supply chains
Reclaiming • Global trade rules and institutions such as the WTO and IMF often favor rich nations, limiting
Economic developing countries’ control over their economies. Inward strategies provide more
Sovereignty autonomy. For example,
o India’s Atmanirbhar Bharat Abhiyaan (₹20 lakh crore package) to boost local self-
reliance.
o China’s dual circulation policy promotes domestic consumption while maintaining
selective external engagement.
Reviving • Gobalization has shifted many manufacturing jobs countries having lower labor costs.
Domestic Inward-looking policies push import substitution and domestic production, creating jobs.
Manufacturing For example,
Employment and o The Ministry of Defence has issued 5 Positive Indigenisation Lists, mandating certain
Strengthening items be sourced only from Indian industry.
Economic o Germany’s National Industrial Strategy 2030 specifically targets ten strategic sectors
Competitiveness for domestic development and protection.
Addressing Trade • Nations often implement tariff and non-tariff barriers to create a more level playing field
Imbalances against economically and technologically advanced competitors.
o For example, Indian government has reserved 75% of the defence budget for
procurement from domestic companies.
What could be potential negative impacts of Inward-Looking Development Strategies?
• Higher Consumer Prices: Protectionist policies such as tariffs and import restrictions often lead to increased
production costs and reduced competition.
o These costs are ultimately passed on to consumers, resulting in higher prices and limited product choices in
domestic markets.
• Loss of efficiency: While moving production back home (reshoring) or to allied nations (friendshoring) aims to
reduce dependency on geopolitical rivals, it also leads to duplication of infrastructure and loss of efficiency.
o This transition can be costly and may not always deliver expected gains in resilience or job creation.
• Fragmentation of Global Supply Chains: Industries that rely on complex, multi-country inputs, such as electronics
and automobiles, face delays, higher costs, and reduced innovation due to weakened international collaboration.
• Escalation of Trade Tensions and Wars: Protectionist strategies often trigger retaliatory measures from trade
partners, escalating into trade wars.
• Emergence of Trade Blocs and Bilateralism: As multilateralism weakens, countries increasingly turn to regional
trade blocs and bilateral agreements.
o This fragmented trade environment can exclude smaller or developing nations and reduce the effectiveness of
global trade norms.
Conclusion
While inward-looking strategies can protect vulnerable industries and ensure economic sovereignty, they may lead to
reduced economic efficiency and higher prices for consumers. Successful implementation typically requires
complementary policies to enhance domestic productive capacity, technological capabilities, and human capital
development. The optimal approach often involves selective protectionism in strategic sectors rather than complete
economic isolation.

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2.3. INDUS WATERS TREATY
Why in the News?
India announced the Indus Waters Treaty (IWT) of 1960 with Pakistan will be held ‘in abeyance’ with immediate effect,
until Pakistan stops its support for cross-border terrorism, after recent terror attack.
More on the news
• The term ‘abeyance’ refers to a state of temporary disuse or suspension, but it is not a legally recognized concept
under international treaty law.
• Neither IWT nor the Vienna Convention on the Law of Treaties, 1969 (VLCT) provides ‘abeyance’ as a basis for
halting or suspending treaty obligations.
o The Vienna Convention on the Law of Treaties (VCLT) is the leading international Convention on treaties, which
codifies the customary laws governing how states approach agreements, and is therefore commonly referred to
as ‘the treaty on treaties’.
• The IWT does not have a provision allowing for unilateral
suspension.
o Article XII (4) of the IWT states the treaty “shall continue
in force until terminated by a duly ratified treaty
concluded for that purpose.
About the Indus Waters Treaty
• Origin: Signed in 1960 between India and Pakistan with the
help of the World Bank, which is also a signatory.
• Objective: To determine the distribution of the waters of the
Indus and its tributaries between India and Pakistan.
• Division of water:
o Eastern Rivers: (Ravi, Beas, and Sutlej) for India’s
unrestricted use.
o Western Rivers: (Indus, Jhelum, and Chenab) are
allocated to Pakistan but India allowed for specific non-
consumptive uses like navigation, flood protection or
flood control, Domestic use, Agricultural use, Generation
of hydro-electric power etc.
o According to Article III (1) of the Treaty, “India is under
obligation to let flow” waters of the Western Rivers to
Pakistan.
• Exchange of Data: IWT provides for data exchange with respect to the flow in, and utilization of the waters of, the
Rivers regularly between the Parties.
• Dispute Resolution: IWT provides 3 Step Dispute Resolution Mechanism viz.
o Step 1: Permanent Indus Commission (PIC): Disputes are first decided at the level of the Indus Commissioners.
> The treaty required the creation of a PIC, with a commissioner from each country for communication.
> PIC is mandated to meet regularly at least once a year, alternately in India and Pakistan.
o Step 2: Neutral Expert: Appointed by World Bank and involves rendering a binding decision.
o Step 3: Court of Arbitration (CoA): If a neutral expert fails, the dispute goes to CoA. It is a generally seven-
member ad-hoc arbitral tribunal, determines its procedures and decisions by majority vote.
Implications of the suspension of the Indus Waters Treaty
On India On Pakistan
• Credibility as a responsible international • Food insecurity: According to the World Bank’s report, the
actor: Unilaterally violating the IWT can be Indus system irrigates over 80% of the Pakistan’s food
seen as violation of treaty. crops.
• Ecological imbalance: New water • Economy: Wheat, rice and cotton majorly dependent on
infrastructure projects could have Indus river system are major exports items that earned USD
4.8 billion in 2022.
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 consequences in the biodiversity-rich and • Electricity and water stress: One-third of Pakistan’s
seismically sensitive Indus basin. electricity comes from hydropower also Pakistan is a water-
• Weaponising water resources: Same stressed country.
strategy can be used by China with respect to
Brahmaputra.
Other issues with IWT
• Pakistan’s objections to Indian dams: Kishanganga (Jhelum) and Ratle (Chenab) dams are objected by Pakistan.
• Not following dispute resolution mechanism: Pakistan on India’s Kishanganga Hydroelectric Project
bypassed the Neutral Expert mechanism and proceeded directly to arbitration at the Permanent Court of
Arbitration (PCA) in The Hague.
o It violates the treaty’s dispute resolution framework, which mandates a sequential escalation from technical
mediation to legal arbitration.
• Biodiversity Impact: Shahpurkandi (Ravi), Ujh (Ravi) projects can alter the flow of Ravi, affecting Indus River dolphins
and their habitat.
• Climate Change: The Standing Committee on Water Resources in 2021 in India has urged to renegotiate IWT with
Pakistan to factor in the impact of climate change and pollution on the Indus River.
• State-sponsored terrorism: In 2016, after a terrorist attack in Kashmir, India warned that “water and blood cannot
flow together”.
• No regular data sharing as planned in the treaty: The flow data sharing is significantly important to understand the
dynamics of the river basin in totality.
International principles on international water sharing

• Helsinki Rules, 1966: Adopted by the International Law Association and regulating “the use of water of an
international drainage basin”.
• Helsinki Convention, 1992: Provides a legal framework for preventing and controlling water pollution across
national borders.
• UN Watercourses Convention, 1997: United Nations Convention on the Law of the Non-Navigational Uses of
International Watercourses (UN Watercourses Convention) codified international law on trans boundary water
resources.
o India, China and Pakistan has not signed.
Conclusion
India’s use of the term ‘abeyance’ is not about rejecting its international duties. Instead, it’s a strategic message, i.e.
treaty agreements must consider real-world politics, and they can only last if all sides stay credible and do not harm
India’s interests.

2.3.1. SIMLA AGREEMENT

Why in the News?
Pakistan declared it would hold “in abeyance” its participation in all bilateral agreements with India, including the Simla
Agreement.
Shimla Agreement
• Background: The Agreement was signed between India and Pakistan in 1972 as a peace measure after the India-
Pakistan 1971 War.
o The 1971 war led to the creation of the new nation of Bangladesh out of East Pakistan.
• Key Provisions of the Shimla Agreement
o Normalization of Relations: The principles and objectives of the United Nations Charter shall govern the
relations between the two countries.
> The agreement outlined steps to resume communications, trade, cultural exchanges, and people-to-
people contacts.

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 > It also facilitated the repatriation of prisoners of war and civilians detained during the conflict, marking a
humanitarian gesture.
o Bilateral Resolution: To settle differences by peaceful means through bilateral negotiations or by any other
peaceful means mutually agreed upon between them.
o Establishment of the Line of Control (LoC) in Jammu and Kashmir: The agreement converted the 1971
ceasefire line into the LoC.
o Respect for Sovereignty and Territorial Integrity: Both sides pledged to respect each other’s sovereignty,
territorial integrity, and political independence and refrain from interference in internal affairs.
o Provisions for future meetings: Between the heads of government to further peace efforts and address
unresolved issues.

Implications of the suspension of the Shimla Agreement

• Symbolic and Diplomatic Impact: Pakistan’s suspension is mainly symbolic, as the agreement’s practical
relevance has diminished due to repeated violations.
o The bilateral dialogue mechanism envisioned under the deal has been dormant, with high-level talks suspended
after major incidents like the 2019 Pulwama attack.
• Strategic Implications for the LoC: Pakistan’s non-recognition of the LoC as a de facto border could lead to
attempts to alter the status quo, as seen in past conflicts like Kargil.
o However, India’s military preparedness mitigates immediate tactical consequences.
• Regional Stability: The suspension undermines regional stability, particularly in the context of nuclear-armed
neighbours.
o It could escalate diplomatic and military brinkmanship, derailing prospects for dialogue.
• International Perspectives: Pakistan’s move may invite criticism for violating international commitments,
strengthening India’s narrative of Pakistan’s unreliability.
• India’s Strategic Advantage: The suspension paradoxically benefits India by removing diplomatic constraints.
o India can pursue more harder line against cross-border terrorism, revisit claims over Pakistan-Occupied
Kashmir (PoK), and intensify diplomatic efforts to isolate Pakistan.
o The absence of the agreement may also prompt India to reassess other bilateral treaties, such as visa regimes
and trade agreements, aligning them with national security interests.
Other important agreements between India and Pakistan
• The Nehru-Liaquat pact: Signed in 1950 relates to the treatment of minorities in their respective countries.
• Indus Waters Treaty 1960: For the utilization and distribution of water of Indus river system.
• The Bilateral Protocol on Visits to Religious Pilgrimages: Signed in 1974 facilitates hundreds of Hindu and Sikh
pilgrims to 15 temples and gurdwaras in Pakistan, as well as Muslim pilgrims to five mosques and shrines in India.
• Agreement on the Prohibition of Attack Against Nuclear Installations and Facilities between India and
Pakistan in 1988: Both countries are to inform each other on 1st January of every calendar year of the nuclear
installations and facilities.
• Agreement on prevention of air space violations and for permitting over flights and landings by military
aircraft 1991: To avoid violations of each other’s airspace and co-operation.
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 • Agreement On Pre-Notification Of Flight Testing Of Ballistic Missiles, 2005: Advance Notification of the flight
test that it intends to undertake of any land or sea launched, suface-to-suface ballistic missile.
• Kartarpur corridor agreement in 2019: Facilitating visa-free travel for Indian pilgrims to Gurdwara Darbar Sahib
Kartarpur in Pakistan.
Conclusion
The Shimla Agreement has the potential to reset India-Pakistan relations as its principles of bilateralism and peaceful
coexistence provided a framework for stability. Moving forward, both nations may draw upon the spirit of the Shimla
agreement to overcome historical grievances and foster mutual trust.

2.4. 75 YEARS OF INDIA-CHINA RELATIONS

Why in the news?
Marking 75 years of diplomatic ties, Chinese President called for a “Dragon-Elephant tango” relations between India
and China to symbolize a harmonious partnership between the two nations.
More on the News
• The term “Dragon-Elephant Tango” is a metaphorical phrase used to describe a vision of peaceful and
cooperative relations between China and India.
• Dragon represents China (a symbol from Chinese mythology) and Elephant represents India (a culturally significant
and strong symbol in Indian heritage).
• Tango (a dance form) symbolizes coordination, harmony, and mutual understanding.
Significance of Stable India–China Relations
• Regional Peace and Stability: Reduces the risk of conflict along the disputed border and contributes to broader
stability across South Asia and the Indo-Pacific region.
o De-escalation allows both countries to redirect resources from military buildup towards socio-economic
development and other pressing domestic priorities.
• Prosperity and Peace in Indo-Pacific Region: Stable India–China relations are vital for fostering a prosperous and
peaceful Indo-Pacific region by reducing strategic tensions and encouraging cooperative development.
• Trade and Investment: A stable relationship fosters a predictable environment for bilateral trade and investments,
benefiting various sectors in both economies.
o E.g., China is a major source of Active Pharmaceutical Ingredients (APIs) for India’s pharmaceutical industry,
and a significant investor in India’s startup ecosystem.
• Access to Critical Resources for India: China dominates the production of rare-earth metals, crucial for emerging
technologies. Stable ties can ensure India’s access to these vital resources.
o India also relies on China for solar modules & cells, essential for its renewable energy goals.
• Global Influence: As major Asian powers, stable India–China ties enable constructive roles in global governance
and amplify their influence through joint efforts in multilateral forums like BRICS and SCO.
o Cooperation between India and China can offer a counterweight to Western influence in international affairs,
pushing for reforms in institutions like the WTO, IMF, and UN.
• Countering Global Challenges: Stable India–China relations facilitate collaboration on global challenges like
climate change, public health, and energy security, while promoting joint action on broader transnational issues.
Key concerns in India-China Relations
• Unsettled Borders: Along the 3,488-kilometer Line of Actual Control (LAC), the lack of mutual agreement between
the two countries has led to multiple military clashes.
o The recent clashes include Doklam standoff in 2017 and the Galwan Valley clash in 2020.
• Trade imbalance: India’s trade deficit with China rose to USD 85 billion (2023-24) against USD 83.2 billion (2022-
23). India is also dependent on China for Semiconductors, Pharma APIs etc.
o Currently, China is the largest trading partner of India with bilateral trade of USD 118.4 billion (2023- 2024).
• China-Pakistan Nexus: India views the China-Pakistan Economic Corridor (CPEC) passing through Pakistan-
occupied Kashmir (PoK) as a violation of its sovereignty and territorial integrity.
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• China’s Assertiveness: Particularly in South Asia through strategies like String of Pearls, presence in Maldives, Sri
Lanka, assertion over South China Sea, etc. create insecurities in Indo-Pacific.
o India, meanwhile, is strengthening ties with like-minded nations through platforms like the Quad (India, US,
Japan, Australia), seen as a
counter to China’s assertiveness.
• Water Power: China has control over
India’s water supply to the northeast
region. It has constructed several dams
(Zangmu, Dagu, Jiexu, and Jiacha
Dams) and can use water as a geo-
strategic weapon against India.
Way Forward
• Diplomatic engagements: Maintaining
open channels of communication
through bilateral or regional
cooperation like in BRICS, SCO, etc.
o Both countries are members of
BRICS, SCO, G20, and AIIB.
• Building a relationship based on
mutual respect and understanding:
Both countries need a “durable base”
for rebuilding the relations based on a
threefold formula of mutual respect,
mutual sensitivity and mutual interest.
• Strategic balancing: India must
balance strategic caution with engagement, maintaining sovereignty while avoiding unnecessary escalation.
• Water resource management: Enhancing cooperation on sharing hydrological data for Transboundary Rivers and
exploring mechanisms for joint management to mitigate potential conflicts.
• Confidence Building Measures (CBMs): Expanding CBMs beyond military interactions to include economic and
cultural exchanges in border regions could foster greater trust.
Conclusion
Foreign Minister of India Dr. S. Jaishankar in his book ‘The India Way: Strategies for an Uncertain World’ argued that
managing China is about realism, agility, and strategic clarity. In this context, it would be prudent for India to pursue a
steady course of balancing engagement with deterrence, leveraging global partnerships, and asserting its interests
without becoming a proxy in larger power rivalries. In this uncertain world, managing China is not about reaching a
final settlement, but about sustaining equilibrium through strength, diplomacy, and foresight—hallmarks of a mature
global power.
The String of Pearls
• The String of Pearls refers to a geopolitical and strategic framework in which China is developing a network of
commercial and military assets (or “pearls”) along the Indian Ocean Region (IOR) to secure its energy routes
and expand its influence.
• Network of Ports and Bases: China has invested in and developed port facilities in countries like Pakistan
(Gwadar), Sri Lanka (Hambantota), Bangladesh (Chittagong), and Myanmar (Sittwe and Coco Islands), and has a
military base in Djibouti.
India’s Response – Necklace of Diamonds” strategy
A multi-pronged approach often referred to as the “Necklace of Diamonds” strategy, includes –
• Developing Naval Bases and Access: E.g., Iran (Chabahar), Oman, Singapore (Changi Naval Base), etc.
• Strengthening Regional Partnerships: Act East Policy and enhanced ties with ASEAN, Japan, and Australia.
Strategic partnerships through Quad and Indo-Pacific initiatives.
• SAGAR (Security and Growth for All in the Region) & MAHASAGAR India’s vision for maritime cooperation.

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2.5. CHINA’S RARE EARTH ELEMENTS EXPORT CONTROL
Why in the News?
China’s Ministry of Commerce imposed export restrictions on seven rare earth elements (REEs) and magnets used in the
defence, energy, and automotive sectors in response to U.S. tariff increases.
More on the News
• The new restrictions apply to 7 of 17 REEs: It requires companies to secure special export licenses to export these
minerals and magnets.
• The new restrictions are not a ban: They require firms to apply for a license to export rare earths.
What are Rare Earth Elements (REE)?
• Misnomer: According to the United States Geological Survey (USGS), most REEs are not as rare as their name
suggests and are found in abundance in the Earth’s crust.
o However, they’re rarely found in concentrations that are economically viable for mining.
• They were named “rare-earth elements” because most were identified during the 18th and 19th centuries as “earths
Elements” and, in comparison to other “earths Elements,” such as lime or magnesia, they were relatively rare.
o Earth’s Elements are defined as materials that cannot be changed further by heat.
• Rare Earth Elements (RREs): As per the International Union of Pure and Applied Chemistry (IUPAC) in 2005, are a
group of 17 elements.
o These elements share similar properties such as high density and high conductivity.
o cerium (Ce), dysprosium (Dy), erbium (Er), europium (Eu), gadolinium (Gd), holmium (Ho), lanthanum (La),
lutetium (Lu), neodymium (Nd), praseodymium (Pr), promethium (Pm), samarium (Sm), scandium (Sc), terbium
(Tb), thulium I, ytterbium (Yb), and yttrium (Y).
• Source: Main sources of REEs are minerals such as bastnasite, loparite and monazite.

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Geostrategic significance of recent export control of REE
• To gain upper hand in the tariff war: Retaliation against the USA’s reciprocal tariffs, which may hurt the Chinese
industry due to a fall in exports.
• Implications on Critical technologies: Yttrium and Dysprosium, which are widely used in the manufacturing of jet
engine components, defence equipment, and advanced electronics.
o For importing nations, supply disruptions can cripple industries, inflate costs, and delay technological
advancements.
• Global supply Chain disruption: Due to crunch in supply may affect major REE-consuming countries like the US,
Japan, Vietnam, and Germany.
• Weaponisation of REE: China first weaponized rare earths in 2010 when it banned exports to Japan over a fishing
trawler dispute.
o Between 2023 and 2025, China began imposing export restrictions of strategic materials including gallium,
germanium etc.
• Geostrategic alternatives: Longer-term consequences include diversification of supply, reshoring and friend-
shoring of manufacturing, and acceleration of recycling.
o Reshoring means bringing back the production to the home country, and Friend shoring is where businesses
source or produce goods in countries with shared values.
o Countries are seeking alternatives in Africa (notably the Democratic Republic of Congo and Malawi), South
America, and Australia.
Global efforts to reduce dependence on China for REE
• Critical Minerals Mapping Initiative (CMMI) in 2019: Formed by the US, Australia and Canada to conduct research
on critical mineral resources, including REEs.
• The UN Secretary-General’s Panel on Critical Energy Transition Minerals: To discuss proper management and a
roadmap for Critical energy transition minerals such as rare earth elements.
• Mineral Security Partnership (MSP): Partnerships between countries, including India to focuses on the supply chain
of minerals and metals that are most relevant for advanced technologies, defence, energy, and industrial processes
Indian Initiatives for REE production
• Launch of the National Critical Mineral Mission (NCMM): Announced in Budget for 2024-25, to secure India’s
critical mineral supply chain.
• The Mines and Minerals (Development and Regulation) Amendment Act, 2023: Now allows private companies
to bid for the exploration of critical minerals, including REEs.
• Bilateral and Multilateral Cooperation: Such as India-Australia Critical Minerals Investment Partnership, for
co-investing in Australian Rare Earth Element (REE) projects.
• Exploration efforts: Department of Atomic Energy discovered around huge source of in-situ Rare Earth
Elements Oxide (REO) in Balotra, Rajasthan.
Conclusion
To reduce dependence on China for rare earth elements (REEs), countries may build strategic inventories, boost
domestic production, and invest in advanced refining technologies. Deep-sea exploration and recovery from secondary
sources offer additional supply avenues. Streamlined regulations and private sector incentives are essential to
accelerate self-reliance in the REE value chain.

2.6. INDIA – SRI LANKA RELATIONS

Why in the News?
Prime Minister of India was honoured with Sri Lanka’s highest civilian award, Mithra Vibhushana during his two-day state
visit to Sri Lanka.
Key Outcomes of the Visit
• Defence cooperation: India and Sri Lanka signed a comprehensive MoU on defense cooperation, consolidating
existing understandings into a structured framework.
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 o Also, Sri Lankan President reaffirmed no use of its territory against India, addressing concerns over China’s
regional influence.
• Energy Collaboration: India, Sri Lanka, and the UAE agreed to jointly develop an energy hub in Trincomalee.
• Digital Transformation: Both countries signed MoU on Cooperation in the Field of Sharing Successful Digital
Solutions Implemented at Population Scale for Digital Transformation.
o India announced support for Sri Lanka’s Unique Digital Identity project.
• Grant Assistance: India announced grant assistance for the development of Thirukoneswaram temple in
Trincomalee, Sita Eliya temple in Nuwara Eliya, and Sacred City Complex project in Anuradhapura.
• Others:
o India agreed on the conversion of 100 million US dollars in loans to grants.
o India announced a 2.4 billion Lankan rupees package for the Eastern Province.
o India also announced comprehensive capacity-building programme in India covering 700 Sri Lankans annually.

Significance of India- Sri Lanka Relations

For both Nations
• Cooperation at International forums: India supports Sri Lanka’s application to become a member of BRICS.
o Sri Lanka has extended its support to India’s candidature for a non-permanent seat on the UN Security Council
for 2028-29.
• Shared maritime security interests in Indian Ocean Region (IOR): Both are committed to countering traditional
and non-traditional threats and to ensure a free, open, safe and secure IOR.
• Energy cooperation: Several projects are at different stages of discussions, for instance, plans for inter-grid
connectivity, a multi-product petroleum pipeline between the two countries, supply of LNG, and the under-
preparation Sampur Power Project.
• Regional and multilateral cooperation: Both are part of, commonwealth Group, Indian Ocean Rim Association
(IORA), and BIMSTEC.
• Military collaboration: Joint exercises like SLINEX (Naval) and MITRA SHAKTI (Army) are held annually.
o Sri Lanka also participates in MILAN, the multilateral naval exercise hosted by the Indian Navy.

For Sri –Lanka For India

• Financial Aid: Nearly USD 4 billion was provided by India in • Security of Indian Ocean: Sri Lanka is
various kinds of aid in 2022 and 2023 to help the country navigate India’s closest maritime neighbour and
its economic crisis. plays crucial role in preventing territorial
o Indian provided assistance for renovating the actions inimical to India’s security/
Kankesanthurai Port in Jaffna. stability.
• IMF Bailout: India was among the first countries to provide • Alignment with India’s policy: Sri Lanka
financing assurances to IMF, a prerequisite for the IMF’s $2.9 has a central place in India’s
billion bailout package approved in 2023. ‘Neighbourhood First’ policy and
• Economic Importance: India has been Sri Lanka’s largest trade MAHASAGAR (Mutual and Holistic
partner, top FDI contributor, & largest source of tourists. Advancement for Security and Growth
• Humanitarian Assistance: India acts as a ‘first responder’ for Sri Across Regions) vision.
Lanka in the field of Humanitarian Assistance and Disaster Relief. • Indian Origin Tamils (IOTs): Around 1.6
E.g., During COVID-19 pandemic, India sent 500,000 vaccines million IOTs, primarily employed in tea and
to Sri Lanka. rubber plantations, with a significant
presence in Colombo’s business sector.
Irritants in India-Sri Lanka Relations
• Chinese Influence: China’s growing influence through financial aid and projects like Hambantota Port increases its
leverage over Sri Lanka, impacting India’s interests.
o Chinese vessels (Shi Yan-6, Yuan Wang-5) conduct data collection activities may potentially aid future military
operations against India.
• Fishermen Disputes: Sri Lanka opposes use of bottom trawlers by Indian fishermen and frequent entry into Sri
Lankan waters citing concerns regarding environmental damage and overfishing.

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 o Also, territorial dispute over this Kachchatheevu Island, ceded to Sri Lanka in 1974, remains a contentious
issue, with Indian fishermen claiming traditional fishing rights.
• Tamil Ethnic Issue: Slow reconciliation efforts, e.g., delay in implementation of 13th Amendment (in Sri Lanka’s
Constitution) post Tamil-Sinhala conflict impact India’s domestic politics.
o The amendment was a result of Indo-Lanka Accord (1987). Sinhala nationalists oppose it as an imposition while
Tamil groups seek broader powers.
Way Forward
• India’s Five “S” Approach: Samman (Respect), Samvad (Dialogue), Sahyog (Cooperation), and Shanti (Peace); to
create conditions for universal Samriddhi (Prosperity).
• Constructive engagement: Establish a permanent bilateral institutional mechanism to address fishermen disputes,
moral persuasion and developmental support to push for effective implementation of the 13th Amendment, etc.
• Soft power and cultural diplomacy: Joint promotion of religious tourism under Buddhist circuit and Ramayana Trail
with infrastructure support, digital platforms, and diaspora engagement.
• Multilateral cooperation: Effective utilization of institutions like BIMSTEC and Indian Ocean Rim Association (IORA)
to create common positions on regional maritime security, climate change, and economic integration.

2.7. INDIA-SAUDI ARABIA RELATIONS

Why in the News?
Recently Prime Minister visited Saudi Arabia.
List of Outcomes
• Strategic Partnership Council (SPC): The 2nd India-
Saudi Arabia SPC created 2 new Ministerial
Committees on Defence Cooperation & Tourism and
Cultural Cooperation under it.
o Formed in 2019, India is the 4th country after UK,
France and China to form such a council with Saudi
Arabia.
• High Level Task Force on Investment (HLTF): Aims to
fast-track Saudi Arabia’s $100 billion investment in
energy, tech, infrastructure, and other key sectors in
India.
o Also, both sides agreed to collaborate on
establishing two refineries in India.
• MoUs/Agreements Signed: Space (for Peaceful
Purposes), Anti-Doping Education and Prevention,
health, etc.
Significance of Bilateral Relations
For Both Countries
• India-Saudi ties reflect India’s Middle East policy shift: From a past limited to remittances and religious
diplomacy, India has entered a new era—of investment flows, strategic dialogues, joint defence platforms, etc.
o Hence, India’s engagement with the Saudi Arabia is not an outreach. It is a realignment of relation.
o E.g., Upgradation of “hydrocarbon energy partnership” to a “comprehensive energy partnership” for
renewable, petroleum and strategic reserves.
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• Strengthening Bilateral Relations: Diplomatic relations between India and Saudi Arabia were established in 1947.
o Consequently, the Riyadh Declaration (2010) elevated ties to a Strategic Partnership.
o Bilateral Defence Engagements: Al Mohed Al Hindi (Naval), SADA TANSEEQ (Army).
• Both Partners in Regional Maritime Security and Trade Corridor: E.g., Indian Ocean Naval Symposium (IONS),
Combined Maritime Forces (CMF), Conference on Interaction and Confidence Building Measures in Asia (CICA).
For India
• Saudi Arabia is a Key Supplier of Crude and
Petroleum Products: For instance, Saudi Arabia
remained India’s 3rd largest source of crude oil
and petroleum products (2023–24). Also, it was the
3rd largest LPG supplier (2023–24).
• Strong and Growing Economic Partnership: For
instance, Bilateral trade reached ~USD 43 billion
(2023-24). Also, Saudi Arabia is currently India’s 5th largest trading partner.
• Khaliji Capital and Investment: India aims to leverage Khaliji capital (sovereign wealth funds) for its economic
growth.
o For instance, Saudi Arabia has invested around USD 10 billion in India so far and in 2019, it announced plans
to invest USD 100 billion more.
• Strengthening People-to-People and Cultural Ties:
o Remittances: In 2024, Saudi Arabia contributed 6.7% of India’s total inward remittances.
o Religious Ties: India’s Hajj quota for 2025 has increased, reflecting deepening religious cooperation.
• Counter-Terrorism and Strategic Cooperation: Saudi Arabia has consistently supported India’s fight against
terrorism and transnational crime. For example:
o Facilitated arrest of Zabiuddin Ansari (2008 Mumbai attack) & deported Abdul Salam (fake currency racket)
o Also, during “Operation Kaveri,” it enabled the evacuation of 3,500 Indians from conflict-hit Sudan.
• Support for Moderate Islam and Regional Stability: Saudi Arabia’s promotion of moderate Islam under Crown
Prince’s reforms is vital for India, given the religious and political interlinkages between the Middle East and South
Asia.
o For instance, radical ideologies from the Middle East often spill into South Asia, home to 600 million Muslims,
including 400 million in India.
For Saudi Arabia
• India–Saudi Arabia Economic Relations: India is Saudi Arabia’s 2nd largest trading partner. Indian investments in
Saudi Arabia have also increased in recent years, reaching a cumulative figure of approximately USD 3 billion as of
2023.
• Vision 2030 Synergy: Saudi Arabia’s Vision 2030 aims to diversify its economy, and India is seen as a key partner in
this transformation.
Challenges in India–Saudi Arabia Relations
• Labor and Migration Policies: Saudi Arabia’s “Saudization” policy mandates local hiring quotas, limiting jobs for
expatriates, including Indians.
• Trade Imbalance: In FY 2022-23, India’s trade deficit with Saudi Arabia reached a record high of approximately USD
31.3 billion.
• Delayed Strategic Projects: The proposed $50-billion West Coast refinery project, a joint venture involving Saudi
Aramco, has faced delays due to land acquisition challenges and environmental clearance issues in Maharashtra.
• Stalled Free Trade Agreement (FTA) Negotiations: Efforts to finalize a Free Trade Agreement between India and the
Gulf Cooperation Council (GCC), of which Saudi Arabia is a key member, have been ongoing since 2004.
• Geopolitical Divergences: Saudi Arabia’s continued economic support to Pakistan presents a complex dynamic,
given India’s strategic concerns in the region.
• Geopolitical Misalignments: India’s close ties with Iran and Saudi Arabia’s deepening partnership with China create
strategic divergences.

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Conclusion
The last decade of engagement has highlighted the growing significance of unconventional areas such as defense and
security cooperation, food and environmental security, and cultural exchange, while reaffirming the importance of
traditional sectors and strengthening the strategic partnership between India and Saudi Arabia.

2.8. INDIA-UAE RELATIONS

Why in the News?
The recent visit of Crown Prince of Dubai, was his first official to India.
Key Announcements during the visit
• Bharat Mart & Virtual Trade Corridor (VTC): To boost bilateral trade and strengthen the India-Middle East-Europe
Economic Corridor (IMEEC).
o The Bharat Mart is India’s warehousing facility which
would help the Indian exports showcase their products
under one roof. This is similar to China’s Dragon Mart.
• Ship Repair Clusters (Kochi & Vadinar): Expected to
enhance India’s maritime sector with global best practices.
• Other Initiatives: India-UAE Friendship Hospital (in Dubai),
IIM Ahmedabad’s Dubai campus and Dubai Chamber of
Commerce’s India office to further deepen economic
collaboration.
Significance of Bilateral Relations
For Both Countries:
• Growing Political Relationship: Since PM’s 2015 visit—first
in 34 years—relations have significantly deepened, from what
used to be a buyer-seller relationship into a
Comprehensive Strategic Partnership (2017).
o UAE was invited as a Guest Country (only 9 guest countries were invited) to the G20 Summit held under
India’s Presidency.
• Strategic Global Partnership: Both countries actively engage in key international groupings such as BRICS, I2U2
(India-Israel-UAE-USA), and the UAE-France-India (UFI) Trilateral.
• India-UAE’s Expanding Role in Regional Cooperation:
o India-Middle East Economic (IMEEC) Corridor: The Agreement for an Intergovernmental Framework on the
India-Middle East Economic Corridor facilitates multilateral cooperation between India and the UAE.
o Indian Ocean Naval Symposium (IONS): Both collaborate to ensure free sea lanes.
o Naval Engagements & Joint Exercises: Bilateral drills, e.g., Gulf Star 1 and PASSEX, alongside Desert Cyclone
(India-UAE) and trilateral Desert Knight (India-France-UAE), strengthen maritime cooperation.
For India
• UAE’s Pivotal Role as India’s Key Energy Partner: For instance, UAE is India’s 4th largest source of crude oil and
the 2nd largest source of LNG & LPG.
o Strategic Oil Reserves: UAE is the only nation in the region to offer to store strategic oil reserves in India.
• Robust Trade Relations: For instance, Bilateral trade reached $85 billion (2022-23), with India exporting goods
worth approximately $32 billion.
o It makes the UAE India’s 3rd largest trading partner and 2nd largest export destination.
• Deepening Economic Integration & Investment: UAE is the only country with which India has both a trade
agreement—CEPA, 2022—and an investment agreement—Bilateral Investment Treaty (BIT, 2023).
o Comprehensive Economic Partnership Agreement (CEPA) target: To take bilateral non-oil trade to USD 100
billion level by 2030.
o Also, UAE is the 7th largest in the total FDI received in India (2000- 2024).

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• Strengthening People-to-People and Cultural Ties: The Indian expatriate community in the UAE numbers
approximately 3.5 million, making it the largest ethnic group in the country.
o Remittances: The UAE was a key contributor to India’s remittance inflows in FY24, accounting for 19.2%
(approximately $11.7 billion) of the total.
o Cultural Milestone: ‘BAPS Mandir’, first Hindu temple in UAE, is the largest of its kind in the Gulf region.
For UAE
• India as a Major Destination for UAE Investments: For instance, India accounts for approximately 5% of UAE’s
total Overseas Direct Investments (2000 – 2024).
• UAE’S Enhanced Market Access under CEPA: E.g., Tariff reductions/eliminations on over 80% of products entering
India from UAE.
o For instance, Following CEPA, UAE’s exports to India rose by 7%.
• India Provides Food Security: As UAE’s agricultural vulnerability—only 0.7% arable land—makes it highly
dependent on food imports, India (extensive agricultural base) is a natural partner.
o E.g., Platforms like Agriota, links Indian
farmers directly with UAE markets.
Challenges in India-UAE relationship
• Migration and Labor Issues: The UAE’s
Kafala system has been criticized for
contributing to labor abuses and forced labor.
o The Kafala system is a sponsorship-
based labor system in Gulf countries,
where employers have control over
foreign workers’ legal status, including
their visas and employment conditions.
• Trade Imbalances: In FY 2022, the India’s
trade deficit with UAE reached US$16.78
billion.
• Energy Pricing and OPEC Disagreements:
As an OPEC member, the UAE supports policies that may not align with India’s stance as a major oil importer,
especially when it comes to controlling oil prices.
• Air Services Agreement Disputes: The UAE wants to increase the number of flights and destinations to India, but
India has limited the expansion to protect its domestic airlines.
• Regional Crises: The war in Gaza and Houthi attacks in the Red Sea have affected some regional cooperation,
including the India-Middle East Corridor.
• India-Iran vs. UAE-China Dynamics: India’s strategic relationship with Iran, especially over regional security and
energy interests, can sometimes clash with the UAE’s growing ties with China.
Conclusion
India-UAE relations have evolved into a strategic partnership, marked by strong trade ties and cooperation. However,
challenges like geopolitical balancing, energy debates, and labor concerns must be navigated carefully.

2.9. 6TH BIMSTEC SUMMIT

Why in the News?
The 6th BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) Summit with the
theme “BIMSTEC: Prosperous, Resilient and Open”, concluded in Bangkok under the chairmanship of Thailand.
Major India -Led Initiatives launched at 6th BIMSTEC Summit
• BIMSTEC Centres of Excellence: To be set up in India on Disaster Management, Sustainable Maritime Transport,
Traditional Medicine, and Research and Training in Agriculture.
• BODHI (BIMSTEC for Organized Development of Human Resource Infrastructure): For skilling the youth through
training & scholarships to professionals, students, researchers, etc.
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• Digital Public Infrastructure: India to conduct a pilot study assessing its need in the region.
• Strengthening people-to-people linkages: India to host first BIMSTEC Games in 2027. India would also host
BIMSTEC Traditional Music Festival.
Other Outcomes
• Establishing BIMSTEC Chamber of Commerce: With the organization of BIMSTEC Business Summit annually.
• BIMSTEC Bangkok Vision 2030: First-ever vision outlining a strategic plan to build a Prosperous, Resilient and
Open or “PRO BIMSTEC” by 2030 focusing on economic integration, connectivity, and human security.
• Agreement on Maritime Transport Cooperation
• MoUs with Indian Ocean Rim Association (IORA) and Uns Office on Drugs and Crime (UNODC): To
institutionalize partnership in shared priority areas.
• Adoption of Rules of Procedure for the BIMSTEC Mechanisms
About BIMSTEC
• Genesis: It is a regional organization established in
1997 with signing of the Bangkok Declaration.
o It was originally formed with 4 Members
(Bangladesh, India, Sri Lanka & Thailand) with
the acronym ‘BIST-EC’.
• Secretariat: Dhaka, Bangladesh
• Member States (7): Bangladesh, Bhutan, India,
Myanmar, Nepal, Sri Lanka, and Thailand.
• BIMSTEC Charter: Foundational document that
outlines the goals, principles, and structure of the
BIMSTEC. It was finalized in the 5th Summit (2022)
in Sri Lanka.
o Charter confers legal personality on the
grouping and paves the way for external
partnerships and admission of observers and
new members.
• Objective: To create an enabling environment for
rapid economic development and social
progress and maintain peace and stability in the
Bay of Bengal region.
• 7 Priority Areas/Pillars (each led by 1 Member country): Trade & Investment (Bangladesh); Environment & Climate
Change (Bhutan); People-to-People Contacts (Nepal); Agriculture & Food Security (Myanmar); Science &Technology
and Innovation (Sri Lanka) and Connectivity (Thailand).
o India is the Lead Country for Security pillar under which there are 3 sub-sectors – Counter-Terrorism and
Transnational Crime, Disaster Management and Energy Security.
How BIMSTEC can help realize India’s foreign policy objectives?
• Alternative to SAARC: SAARC’s progress has been hampered by India-Pakistan tensions. BIMSTEC excludes
Pakistan, offering India a more functional platform for regional cooperation.
o SAARC (South Asian Association for Regional Cooperation) remains largely defunct due to geopolitical
tensions, especially India-Pakistan rivalry.
• Aligned with India’s Foreign Policy: BIMSTEC aligns closely with India’s ‘Act East’ and ‘Neighbourhood First’
policies.
o It could also be seen as aligning with India’s broader goal of enhancing trade and security in the IOR and
supporting the Indo-Pacific vision championed by QUAD countries.
• Strategic bridge between South Asia and Southeast Asia: Effectively linking India with ASEAN countries through
member states like Thailand and Myanmar, which are part of ASEAN.
o A stronger partnership between ASEAN and BIMSTEC could create a broader Indo-Pacific framework that
connects continental and maritime Asia.

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• Blue Economy and Maritime security: Promotes India’s interests in Bay of Bengal and helps in securing maritime
trade routes, anti-piracy operations, and disaster management.
o This also effectively aligns with India’s SAGAR (Security and Growth for All in the Region) and MAHASAGAR
(Mutual and Holistic Advancement for Security and Growth Across Regions) in Indian Ocean Region.
• South Asian integration: Focuses on infrastructure, energy, and transport connectivity, promoting regional
integration through projects like the BIMSTEC Master Plan for Transport Connectivity
Issues with BIMSTEC
• Slow Organizational Progress: The charter enforced after 27 years of formation. Just 6 summits, including the
current one, have been held in the last 27 years.
o BIMSTEC didn’t have an official headquarters or secretariat until 2011. However it presently suffers from
inadequate financial & manpower assistance for its operational activities.
• Geopolitical Challenges: China’s growing influence in member countries through the Belt and Road Initiative
(BRI) creates strategic concerns for India.
o All BIMSTEC member countries except India and Bhutan are part of BRI projects, giving China strategic
leverage across South and Southeast Asia.
• Low Intra-Regional Trade: Despite its potential, intra-BIMSTEC trade remains relatively low i.e., around 6-7% of total
trade, indicating a lack of deep economic integration.
o The BIMSTEC FTA, initiated in 2004, remains unimplemented despite numerous negotiations, hindering trade
liberalization and economic integration within the region.
• Infrastructural and Connectivity Gaps: Poor physical connectivity among member states due to stalled
connectivity projects or delays in execution limits trade, people-to-people contact, and integration.
o E.g., India-Myanmar-Thailand (IMT) Trilateral Highway, Bangladesh-Bhutan-India-Nepal (BBIN) Motor
Vehicles Agreement etc. are facing considerable delays.
• Political Instability: Internal political crises and conflicts in member states like Myanmar, Nepal, and Sri Lanka
divert attention and resources, hindering regional cooperation.
o Strained Relations between Members e.g. Bangladesh-Myanmar relations over the Rohingya refugee crisis, the
India-Nepal border issue, etc. also hinders cooperation.
Conclusion
BIMSTEC represents a functional, forward-looking grouping that aligns well with India’s geopolitical and economic
interests, especially in light of SAARC’s stagnation. It exemplifies India’s strategic pivot towards subregional and
transregional cooperation to bypass the limitations of older frameworks and enhance regional integration under India’s
leadership.

2.10. INDIAN DIASPORA

Why in the News?
Standing Committee on External Affairs (2024-25) released report on Indian Diaspora Overseas.
About Indian Diaspora
• Definition: They refer to those people of Indian origin who had migrated to foreign lands from India either several
generations ago or in the recent past on long term Visas issued by other countries and have since settled abroad.
• Indian Diaspora includes:
o Persons of Indian Origin (PIOs): A person who or whose any of ancestors was an Indian national and who is
presently holding another country’s citizenship/ nationality i.e. he/she is holding foreign passport.
o Overseas Citizens of India (OCIs): A person registered as Overseas Citizen of India (OCI) Cardholder under
section 7A of The Citizenship Act, 1955.
> Note: PIO and OCI cardholders have been merged under one category OCI in 2015.
o Non-Resident Indians (NRIs): An Indian citizen who is ordinarily residing outside India and holds an Indian
Passport.
• Current Status: As of January 2024, the population of Indian Diaspora was about 35.42 million (15.85 million NRIs
and 19.57 million PIOs and OCIs).

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• Geographical Distribution: Major countries with significant Indian populations include the United States, United
Kingdom, Canada, Gulf countries, Australia, South East Asia, and Caribbean.

Key-Concerns related to Indian Diaspora highlighted by the Committee

• Limited voting Rights to NRIs: As per existing norms, NRIs who have enrolled in voters list have to be present
physically to cast their votes.
o Due to logistical and practical problems, only a few among the registered voters come down for voting.
• Transfer of Sentenced Persons from Foreign Jails: The Committee find that despite having bilateral and multilateral
agreements, only 8 Indian prisoners were transferred from foreign countries to India in last 3 years.
• Professionals trapped in job Rackets: E.g., dubious firms involved in fake recruitment job offers through social
media channels to South-East Asian countries (Cambodia, Myanmar, Lao PDR) to keep them as bonded labourers to
carry out cybercrime.
• Re-integration of migrants: The Committee note that about 5.95 lakhs emigrants have returned to Indian from
foreign countries from 2019 to 2024 due to economic disruptions, stricter immigration policies and reduction in job
opportunities.
o National level policy on re-integration of migrant returnees is still awaited.
• Safety and security of Indian Students abroad: It is noted that 403 incidents of death of Indian students abroad
have been reported from 2018 to 2024 due to natural causes, accidents and medical condition etc.
Initiatives taken by India for Indian diaspora
• Pravasi Bharatiya Bima Yojana (PBBY): It was launched in 2017 to provide an insurance cover of Rs. 10 Lakhs in
case of accidental death or permanent disability and other benefits at a nominal insurance premium of Rs 275 (for
two years) and Rs 375 (for 3 years).
• Know India Programme (KIP): It is an initiative launched in 2003 for Indian Diaspora between the age group of 21-
35 years to familiarize the People of Indian Origin (PIO) youth with contemporary India.
• Knowledge Sharing Programmes: Visiting Advanced Joint Research (VAJRA) Faculty Scheme, Pravasi Bharatiya
Academic and Scientific Sampark (PRABHASS), Vaishvik Bharatiya Vaigyanik (VAIBHAV) fellowship programme
etc.
• Pravasi Bhartiya Divas (PBD): January 9 marks the day Mahatma Gandhi returned to India from South Africa in
1915, to Honor this event PBD was initiated in 2003 to celebrate the contributions of the Indian diaspora.
• Indian Community Welfare Fund (ICWF): It was established in 2009 in the Indian Missions of 17 Emigration
Clearance Required (ECR) Countries and Maldives to meet contingency expenditure incurred by them for carrying
out various on-site welfare activities for Overseas Indian Citizens under stress.

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Way Forward: Recommendation of the Committee
• Voting rights to NRI: Solutions like Electronically Transmitted Postal Ballot System (ETPBS) can be looked into
for extending the voting rights of NRIs.
• Transfer of Sentenced Persons from Foreign Jails: Amend existing agreements or create new ones to facilitate
smoother repatriation of prisoners and enhance diplomatic efforts and negotiations with other countries.
• Protecting professionals from trap: Foreign employers should require Ministry of Human Resource Development
(HRD) and MEA-attested certificates and maintain professional websites with clear contacts and employee feedback
on platforms like Glassdoor or LinkedIn.
• Integration of Returnee Migrants: Kerala is the only State in India that offers economic reintegration and welfare
programmes for returning migrants, which are worth emulating by other States and even other countries.
• Safety of foreign student: Evolving policy framework is needed to protect Indian students, especially in conflict-
prone areas, including a real-time database of those studying abroad.
• Need to Prioritize Emigration Bill 2024: Committee have underscored the pressing need for a comprehensive
legislative overhaul to replace the outdated provisions of Emigration Act 1983. Also, need to address Student
Migration in the Emigration Bill.

2.11. NEWS IN SHORTS

2.11.1. SAARC VISA EXEMPTION SCHEME
The Indian government has announced that Pakistan nationals will not be permitted to travel to India under the SAARC
Visa Exemption Scheme (SVES).
About SAARC Visa Exemption Scheme
• Launched: In 1992, following the decision at the 4th SAARC Summit held in Islamabad in 1988.
• Aim: Promote people-to-people contact and enhance regional cooperation among SAARC members.
• Currently, the list included 24 categories of entitled persons, which include Dignitaries, Judges of higher courts,
etc.

2.11.2. BRICS LABOUR & EMPLOYMENT MINISTER’S MEET 2025 ADOPTS DECLARATION
The declaration addresses two pivotal themes: “Artificial Intelligence (AI) and the Future of Work” and “The Impacts
of Climate Change on the World of Work and a Just Transition”.
• The meeting, held under Brazil’s Presidency in Brasília, was convened under the theme “Strengthening the
Cooperation of the Global South for More Inclusive and Sustainable Governance”.
Key Highlights of the Declaration
• Supported by: ILO for advancing labour rights.
• The declaration commits BRICS nations to:
o Promote inclusive AI policies that balance innovation with worker protection.
o Advance social dialogue to ensure fair climate transitions.
o Strengthen South-South cooperation on labour governance, digital inclusion, and green job creation.
Significance of declaration for workers
• Harnessing AI for Decent Work: Equitable access to AI means ensuring that workers have a voice, through
meaningful social dialogue.
o BRICS countries are uniquely placed to shape the transformations needed regarding the rights-based use of AI
at work through South-South cooperation.” (ILO)
• Just Transition – Green Jobs, Inclusive Policies: 1.2 billion livelihoods are under threat from ecosystem collapse;
2.4 billion workers endure dangerous heat levels.
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• Universal Social Protection: Protection gap is increasingly widening, including for platform workers with no safety
net and the 83 per cent of people even lack basic coverage.
• Impetus to Social Justice: ILO commits to support BRICS through Global Coalition for Social Justice, offering
normative guidance, research, and technical cooperation.
To know more about BRICS, refer to Article 2.5. BRICS in October 2024 Monthly Current Affairs Magazine.

2.11.3. ASEAN-INDIA TRADE IN GOODS AGREEMENT (AITIGA)

India hosts 8th Meeting of Joint Committee on ASEAN-India Trade in Goods Agreement (AITIGA).
• The Association of Southeast Asian Nations (ASEAN), established in August 1967 in Bangkok, Thailand, is a group of
10 countries.
About AITIGA
• Genesis: Signed in 2009 and entered into force in 2010.
• Mandates: Each party shall accord National Treatment to goods of other parties in line with GATT, 1994.
• Trade: Bilateral trade between India and ASEAN reached USD 121 billion (2023-24).
o ASEAN constitutes for about 11% share in India’s global trade.
To know more about ASEAN, refer to Article 2.4. ASEAN in October 2024 Monthly Current Affairs Magazine.

2.11.4. EXTRADITION
26/11 Mumbai Terror Attack Accused Extradited to India From the
US
• According to the UN Office on Drugs and Crime (UNODC),
extradition means the surrender of any person who is sought
by the requesting State for criminal prosecution for an
extraditable offence.
• Extraditable offence refers to an offence provided for in
extradition treaty with that State or the offence is punishable
with at least 1 year of imprisonment either in India or in
foreign State (in case of no treaty).
What is the framework for Extradition?
• In India:
o The Extradition Act 1962 (substantially modified in
1993) consolidated the law relating to the extradition of
criminal fugitives from India to foreign states.
> The Ministry of External Affairs is the nodal authority
for Extradition in India.
> India has extradition treaties with 48 nations,
including Bangladesh and the USA.
o The Government of India finally decides on Extradition and this decision can be appealed in a higher court.
• Globally: United Nations Model Treaty on Extradition (1990), UN Model Law on Extradition (2004), United
Nations Convention against Transnational Organized Crime (2000), etc. are some of the international frameworks
which deal with various principles of extradition.

Challenges in Extradition Law

• Misuse of Double Criminality Principle: Fugitive criminals often exploit this by fleeing to countries where their
actions do not constitute an offense, thereby evading extradition.
• Time-Consuming Procedures: due to extensive documentation and bureaucratic requirements.
• Limited number of Treaties:India has extradition treaties with only a limited number of countries.

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2.11.5. INDIA-THAILAND STRATEGIC PARTNERSHIP
India-Thailand inked joint declaration towards establishing
strategic partnership.
• Strategic partnership, though less formal, is based on
cooperation between the states on shared common
objectives, primarily security but also extends to trade,
economy, technology, etc.
Significance of India-Thailand Strategic Partnership
• Mutually-Beneficial Goals: Both have shared interests
in a free, open, transparent, rules-based, inclusive,
and resilient Indo-Pacific and support for ASEAN
(Association of Southeast Asian Nations) Centrality.
o ‘ASEAN centrality’ emphasizes the role of ASEAN
as the driving force behind the geopolitics or geo-
economics of the region.
• Strategic Location: Thailand is India’s Maritime Neighbour with key interest in regional peace.
• Complementing Policies: India’s “Act East” and Thailand’s “Act West” policies complement each other.
• Role in its Regional and Sub-regional Groupings: Thailand is an important partner of India in the ASEAN; Bay of
Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), etc.
Other Key Agreements Inked
• MoUs on cooperation in various sectors: Development of National Maritime Heritage Complex (NMHC) at Lothal,
Development of North Eastern Region (MDoNER), etc.
• Facilitate People-to People Contact: Establishment of an India-Thailand Consular Dialogue.
• Trade facilitation: Exploring the establishment of local currency-based settlement mechanism.

2.11.6. INDIA’S EXTENDED CONTINENTAL SHELF CLAIM

Recently, India has increased its claim in the Central Arabian Sea, as part of its ‘extended continental shelf’ by nearly
10,000 square km but also modified an earlier claim to avoid a long-standing dispute with Pakistan.
Dispute over the maritime boundary
• Exclusive Economic Zone: Coastal countries have an
“exclusive economic zone,” (EEZ) which gives exclusive
mining and fishing rights, upto 200 nautical miles from their
coastlines.
o This area extends unbroken from their landmass all the
way till the sea bed.
o All of this oceanic area is considered part of a country’s
extended continental shelf.
• India made its first claim in 2009 in vast stretches of sea to a
UN body, called the Commission on the Limits of the
Continental Shelf (CLCS).
• Pakistan in 2021 objected claiming that the area was under
‘dispute’, specifically, Sir Creek.
• In March 2023, CLCS rejected the entirety of India’s claim in
the Arabian Sea region. However, the Commission allowed
countries to submit ‘modified claims.’

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About Sir Creek
• It is a 96-km-long disputed tidal estuary.
• It extends into the Arabian Sea and roughly divides the Sindh province of Pakistan from the Kutch region of
Gujarat.
• In 1947, India wanted it to be settled according to international principles of maritime law, called the Thalweg
Principle (boundary can be fixed only in the middle of the navigable channel) in 1947.
o Pakistan, however, claimed that Sir Creek was not navigable, so the dispute could not be settled according to
the Thalweg principle.

2.11.7. TRANSSHIPMENT FACILITY FOR BANGLADESH

India formally revoked transshipment facility for Bangladesh exports from India.
• The 2020 agreement facilitated export of Bangladeshi goods through Indian Land Customs Stations (LCSs) to
ports for destinations in third countries in Europe, West Asia, and beyond.
• India cited logistical challenges such as significant
congestion at Indian ports and airports hindering
India’s own export processes, as primary reason for
revoking the agreement.
• However, decision also follows strained bilateral
relations and recent remarks by Bangladesh
government’s Chief Advisor that Bangladesh is the
only guardian for all in the Indian Ocean Region
(IOR), denouncing India’s role as Net Security
Provider.
India’s role as Net Security Provider in IOR
• Geo-Strategic: India’s central position in the IOR,
with a 7,500-km coastline and proximity to key
chokepoints (e.g., Strait of Malacca, Bab al-
Mandab).
o India’s MAHASAGAR (Mutual and Holistic
Advancement for Security and Growth Across
Regions) Vision, 2025 as an extension of the 2015
SAGAR doctrine.
• Maritime Security: India undertakes anti-piracy and
counter-trafficking operations in the IOR, ensuring security of Sea Lines of Communication.
• Development and Humanitarian Assistance: India’s rapid response to the 2004 Indian Ocean tsunami, water
crisis in Maldives (2004), economic crisis in Sri Lanka (2022), etc. establish its credentials as the first responder
to the crisis in the IOR.

2.11.8. HEARD AND MCDONALD ISLAND

US President announced reciprocal 10% tariffs for several US trade partners, including Heard and McDonald Island
• The President called April 2 “Liberation Day” and declaring it “one of the most important days in American history.
About Islands
• Heard Island and McDonald Islands are uninhabited subantarctic islands in the Southern Ocean, with no
permanent human population.
• They are administered by Australia.
• As the only volcanically active subantarctic islands they ‘open a window into the earth’, thus providing the
opportunity to observe ongoing geomorphic processes and glacial dynamics.
• They are listed as UNESCO World Heritage Sites.

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2.11.9. MORAG AXIS
Israel has completed the takeover of a new security corridor known as
the Morag axis.
Morag axis
• This area consists mainly of agricultural land located between Khan
Younis and Rafah, stretching from east to west across the Gaza Strip.
• The name “Morag” refers to an illegal Israeli settlement that was
established in the region between 1972 and 2005.

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11. PLACES IN NEWS

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2. INTERNATIONAL RELATIONS
2.1. INDIA-UK FREE TRADE AGREEMENT (FTA)
Why in the News?
India and the United Kingdom (UK) announced the conclusion of a Free Trade Agreement (FTA) after three years of formal
talks.
More on the News

• FTA will be implemented after the finalization of the

legal document.
o It will consist of 27 chapters such as digital trade,
environment, etc.
• Both countries also agreed to negotiate a reciprocal
Double Contributions Convention (DCC).
• DCC is a type of Social Security Agreement.
o It will support business and trade by ensuring that employees moving between both countries and their
employers, will only be liable to pay social security contributions in one country at a time.
> It will include employees temporarily working in the other country for up to 3 years.
o It will not affect individuals’ rights to access benefits from the country in which they pay social security
contributions or the requirement to pay the UK immigration health surcharge.
Key Highlights of the India-UK FTA
• Zero-duty Market Access: Approximately 99% of Indian exports will enjoy zero-duty access to the UK market,
covering almost 100% of the trade value.
o On the other hand, India will cut levies on 90% of British products sold in the country.
o Within a decade, 85% of British products sold will become tariff-free in India.
• Eases mobility for Indian Professionals: It includes contractual Service Suppliers; Business Visitors; Investors;
Intra-Corporate Transferees, their partners and dependent children with right to work; and Independent
Professionals like yoga instructors, etc.
• Ambitious commitment from UK in Services: Such as IT/ITeS, financial services, professional services, other
business services and educational services.
• Allowed Participation of UK Businesses in Procurement: UK businesses will be able to compete for a wide variety
of goods, services, and construction procurements, for the majority of central government entities and state-owned
enterprises.
About Free Trade Agreement (FTA)
• FTAs are arrangements between two or more countries or trading blocs that agree to reduce or eliminate
customs tariff and non-tariff barriers on substantial trade between them.
• It covers trade in goods (like agricultural or industrial products) or trade in services (like banking, construction,
trading etc.) and also areas like intellectual property rights (IPs), etc.
o Early Harvest Scheme is a precursor to an FTA and other trade agreements.
• FTAs act as an exception to the Most Favoured Nation principle of the World Trade Organisation (WTO).
• Status: India has signed 13 FTAs in the last five years with its trading partners like Mauritius, UAE, Australia, etc
(SBI Report).

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 India’s Experience with FTA’s
• Growing Trade Imbalance: India’s exports to its FTA partners increased by 31 %, while its imports increased by
82%. (between 2017 and 2022)
• Low Utilisation: India’s FTA utilisation remains very low at around 25 %, while utilisation for developed countries
is between 70–80 %.
• Non-Tariff Barriers: Global Trade Alert database shows that between 2020 and 2024, over 26,000 new restrictions
related to trade and investments have been globally imposed.
• Unequal Competition: E.g., South Korea and ASEAN’s manufacturing sectors outperformed India’s in critical
industries such as electronics, etc.
• Other: Complexity of certification requirements and rules of origin, etc.
Note: Assessment of Trade agreement cannot be done based on the trade balance only.
• There are other potential gains in the form of technology transfer, value-added linkages, trade-related
investment flows, and improved access to a greater variety of intermediate goods and services.
How the India-UK FTA can help shape Future FTAs?
• Swift Negotiations: India- European Union (EU) negotiations have been in process since 2007.
• Safeguard of Sensitive Sectors: Sensitive agri-products like dairy products, etc. are on the exclusion list.
o Also, Sensitive industrial goods like plastics, etc. have been included under the exclusion list, thus, protecting
India’s interest.
• Gradual Removal of Duties: In the India- UK FTA, the former agreed to cut or remove duties gradually over a longer
period which ensures adequate time for domestic industries to adjust to increased competition.
• Emphasis on Mutual Benefits: E.g., UK car manufacturers will benefit from a quota that reduces tariffs from over
100% to 10%
Conclusion
The India-UK FTA not only strengthens bilateral economic ties but also serves as a strategic template for India's future
trade agreements with developed nations. By addressing sensitive sectors, embracing modern trade issues, and
ensuring a phased liberalization approach, it balances growth with domestic safeguards.

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2.2. CHINA PAKISTAN ECONOMIC CORRIDOR (CPEC)
Why in the News?
The foreign ministers of China, Pakistan and Afghanistan agreed to
extend the China Pakistan Economic Corridor to Afghanistan.
What is China Pakistan Economic Corridor (CPEC)?
• CPEC is the flagship project of the Belt and Road Initiative (BRI)
launched in 2015.
• It is the link between the Silk Road Economic Belt and the
Maritime Silk Road.
• The projects under the CPEC mainly relate to energy and
infrastructure.
• The 3000 kilometres of roads, railways and pipelines are
intended to transport oil and gas from Pakistan’s Gwadar Port to
Kashgar City in northwestern China’s Xinjiang Uyghur
Autonomous Region (XUAR).

Belt and Road Initiative (BRI)

• BRI proposed by China in 2013 to improve connectivity and cooperation on a transcontinental scale.
• BRI also known as One Belt One Road (OBOR):
o Silk Road Economic Belt (the “Belt”): The overland “Belt” links China to Central and South Asia and onward
to Europe.
o New Maritime Silk Road (the “Road”): The maritime “Road” links China to the nations of South East Asia, the
Gulf countries, East and North Africa, and on to Europe.
India Concern regarding inclusion of Afghanistan in CPEC
• Geo-Strategic: The expansion of CPEC into Afghanistan could present a strong competing alternative backed by
China and Pakistan, potentially limiting the strategic utility of India’s initiatives like Chabahar Port and International
North-South Transport Corridor (INSTC) to access Central Asia.
o Strategic encirclement: China has already established a presence at strategic ports under ‘String of Pearls’
around India such as Hambantota (Sri Lanka), Gwadar (Pakistan), and Chittagong (Bangladesh), with CPEC
now reaching Afghanistan, China gains further strategic depth on India’s western front.
• Strengthening of Pakistan-Afghanistan-China Axis: It can strengthen Pakistan's influence over Afghanistan,
especially given India's limited engagement with the Taliban regime.
o It may potentially reduce India’s leverage and developmental influence in Afghanistan, built over two
decades via soft power, infrastructure (Zaranj-Delaram highway, etc.), and humanitarian aid.
• Security: The Taliban regime, backed by Chinese funds and Pakistani intelligence, could once again become a
launchpad for anti-India terrorism by supporting groups like Jaish-e-Mohammed and Lashkar-e-Taiba.
• Economic: Afghanistan’s rich lithium and rare earth reserves are vital for high-tech and clean energy industries.
CPEC gives China easier access, putting India at a strategic disadvantage in securing these key resources.
Steps taken by India to counter CPEC
• Chabahar port development: Development of Shahid Beheshti Port Terminal, Chabahar (Iran) offers India a
strategic route to Afghanistan and Central Asia, bypassing Pakistan’s Gwadar port and CPEC corridor.
• International North-South Transport Corridor (INSTC): Established in 2000 by India, Russia and Iran, it is a multi-
modal transportation route linking Indian Ocean and Persian Gulf to Caspian Sea via Iran and onward to northern
Europe via St. Petersburg in Russia.
• India-Middle East-Europe Economic Corridor (IMEC): Launched in 2023 it aims to integrate India, Europe, Middle-
East through UAE, Saudi Arabia, Jordan, Israel and the European Union.

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• Quadrilateral Security Dialogue (QUAD): It is a forum consisting of Australia, India, Japan, and United States, aims
to promote a free and open Indo-Pacific region to counter China's growing influence.
Conclusion
India can continue to promote its Chabahar connectivity vision and seek diplomatic openings to engage with the
Afghan people. Moreover, by advocating for transparent, inclusive, and sustainable regional infrastructure, India can
position itself as a constructive player in shaping the future of South and Central Asian integration—ensuring that
development benefits all without compromising core national interests.

2.3. INDIA–TURKEY RELATIONS

Why in the News?
India–Turkey relations have worsened after Turkey criticized India’s counter-terror strikes in Pakistan following the
Pahalgam attack.
More on the news
• Turkey condemned India’s Operation Sindoor, labeling as “provocative” and warning that strikes inside Pakistan
increased the risk of a wider conflict.
o During Operation Sindoor, Turkish-made Songar drones used by Pakistan were neutralized by Indian air
defense.
• Following this, India also revoked the security clearance of Turkish company Celebi Aviation operating at 9 Indian
airports.
o Several Indian universities, including Jamia Millia Islamia have suspended academic collaborations with
Turkish institutions.

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Why Turkey Matters for India?
• Strategic Location: Turkey connects Europe and Asia. It is also part of the International North-South Transport
Corridor (INSTC), essential for boosting India’s trade with Europe and Central Asia.
• Regional Influence: Since Turkey is an influential player in its immediate neighborhood, i.e. Middle East, Black Sea
region etc. Ties with Turkey can help India stay informed and influence developments in these areas.
• Global Forums: Both are members of the G20 and have common interests in global governance reforms, including
UN Security Council (UNSC) reform. Turkey has expressed its support for INDIA'S BID for a PERMANENT SEAT on
the UNSC.
Contemporary Challenges in India–Turkey Relations
• Turkey’s Military & Diplomatic Support to Pakistan: Turkey is Pakistan’s 2nd largest arms supplier (after China),
supplying drones, corvettes, missiles, and F-16 upgrades.
o This strengthens Pakistan’s defense resilience and its ability to manage prolonged escalatory situations with
India.
• Meddling in Kashmir Issue: Turkey supports Pakistan’s stand on Kashmir and opposes India’s 2019 Article 370
abrogation at international forums like the UN.
• Narrative Destabilization: Turkey-backed social media campaigns and digital content try to internationalize
India’s internal issues, creating narrative threats.
• Emerging Turkey–Azerbaijan–Pakistan Axis: Turkey and Azerbaijan condemned India’s Operation Sindoor.
o Turkey and Pakistan are members together of the Baghdad Pact and the Central Treaty Organization (CENTO).
The two countries were part of the Regional Cooperation for Development (RCD) format too, along with Iran.
• Islamist Rhetoric & Pan-Islamism: President Erdogan’s Islamist positioning and global Muslim solidarity often
lead to criticism of India’s domestic policies, straining ties further.

Turkey’s Evolving Pakistan-Centric Tilt

• Historic Ties and Early Support: India and Turkey shared anti-colonial solidarity. Indian nationalists supported
Turkey during WWI. However, this goodwill didn’t turn into strong ties post-India’s independence.
• Turkey’s Shift Towards Pakistan: After 1947, Turkey focused more on Pakistan due to shared Islamic identity.
Rise of Islamist parties in the 1970s further aligned Turkey with Muslim nations like Pakistan.
• Security and Strategic Partnership: In 1950s Turkey and Pakistan signed the ‘Treaty of Eternal Friendship’ and
joined CENTO to counter Soviet influence. Pakistan also used it to gain support against India.
o Turkey and Pakistan signed of the ‘Deepening, Diversifying, and Institutionalizing the Strategic
Partnership’ declaration in 2025.
• Opposition to India’s Nuclear Program: In 1998 Turkey criticized India’s nuclear tests and backed Pakistan’s
response. It also supported Pakistan’s NSG membership.
Conclusion
India–Turkey relations have witnessed fluctuations shaped by historical alignments, ideological postures, and emerging
geopolitical realities. While challenges persist, leveraging multilateral forums, countering narrative threats, and
strengthening ties with Turkey’s regional rivals (Greece, Cyprus, Armenia, Israel, and the UAE) can help maintain a
strategic balance. At the same time, recalibrating relations based on mutual respect and shared interests can pave the
way for a more stable, pragmatic, and forward-looking partnership.

2.4. CONCERNS RAISED BY INDIA OVER IMF’S LENDING TO PAKISTAN

Why in the News?
International Monetary Fund’s (IMF’s) Executive Board completed the first review of Pakistan’s economic reform program
supported by the Extended Fund Facility (EFF) Arrangement.
More on the News
• IMF allowed the disbursement of around $1 billion (Special Drawing Rights (SDR) 760 million) under EFF.

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 o EFF: It assists countries experiencing serious payment
imbalances because of structural impediments or slow
growth and an inherently weak balance-of-payments
position.
• It also approved lending of US$1.4 billion (SDR 1 billion) under
the Resilience and Sustainability Facility (RSF) lending
program.
• India criticized the approval of the lending and abstained from
the voting process.

Key Lending Instruments of IMF Funds

General Resources Account (GRA) Poverty Reduction and Growth Resilience and Sustainability
Trust (PRGT) Trust (RST)
• Lending on non-concessional terms • Longer duration and • Offers longer-term
(market-based interest rates) through the Concessional financial financing at affordable
Financial Transactions Plan support, including interest- interest rates to low-
mechanism. free financing to the poorest income and vulnerable
• Aim: To resolve a country’s balance of for low-income countries middle-income countries.
payments (BoP) problems. (LICs).

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 • Members can take loans with limits • Aim: To address the needs of • Aim: To build resilience to
corresponding to their quota. low-income countries in external shocks like
• Lending Facilities: Stand-by resolving BoP crisis. climate change and
Arrangement (SBA); Extended Fund • Lending Facilities: Rapid pandemic preparedness.
Facility (EFF); Rapid Financing Credit Facility (RCF); Standby • Lending Facilities:
Instrument (RFI); Flexible Credit Line Credit Facility (SCF) and Resilience and
(FCL); Short-term Liquidity Line (SLL); etc. Extended Credit Facility (ECF). Sustainability Facility (RSF)
Concerns raised by India over IMF’s Lending
• Misuse of Funds: Funds could be used for military and state-sponsored cross border terrorist activities.
• Role of military: Pakistan military’s strong involvement in economic matters increases the risk of policy failures
and reversal of reforms.
• Undermining Global Values: Lending could be seen as a reward to countries that sponsored cross-border terrorism
(linked to proxy warfare), exposing funding agencies and donors to reputational risks.
• Prolonged Use of IMF Resources: Due to repeated bailouts, Pakistan now has a heavy debt burden, making it too
big to fail debtor for the IMF.
• Undermines effectiveness of the IMF program: Since 1989, Pakistan has received IMF funds in 28 out of 35 years,
raising doubts about the effectiveness of the IMF's programs, their monitoring, or Pakistan’s implementation.
Other Key Challenges/Concerns associated with IMF
• Ineffective voting process: There is no provision to vote against a loan or proposal.
o E.g., India had to abstain from the IMF vote as the system does not allow a formal "no" vote.
• Undemocratic Governance Structure: Distribution of voting power (based on quota) remains severely
imbalanced in favour of the US, European countries and Japan, in particular.
o E.g. In 2010, IMF changed its rule to lend Greece.
• Ineffective Evaluation Process: IMF established the Independent Evaluation Office (IEO) in 2001 to evaluate various
aspects of IMF performance.
o However, although IEO is being positioned as ‘independent’ but it is governed and financed directly by IMF.
• Varied success: IMF conditionalities have sometimes led to short-term macroeconomic stability but at the cost of
increased poverty and reduced social spending due to Fiscal consolidation measures (or austerity).
• Implementation issues: Member countries that borrow from the IMF have primary responsibility for selecting,
designing, and implementing policies to make their economic program successful.
Conclusion
While the IMF plays a crucial role in stabilizing the global financial system, it faces serious challenges related to
governance imbalance, rigid conditionalities, etc. To remain credible and effective, it must accelerate quota and voting
power reforms to reflect the rise of emerging economies and enhance transparency and accountability in its lending and
evaluation processes.

2.5. UNITED NATIONS PEACEKEEPING

Why in the News?
United Nations Peacekeeping Ministerial 2025 concluded
recently in Berlin, Germany.
About UN Peacekeeping Ministerial 2025
• It was co-organised and hosted by Germany.
• It serves as a high-level political forum to discuss the
future of peacekeeping.
• The meeting coincided with the 10-year anniversary of the 2015 New York Summit on Peacekeeping.
• At the ministerial, India pledged one Quick Reaction Force (QRF) Company, one women-led Police Unit, a SWAT
Police Unit and peacekeeping training, capacity building and partnerships.

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About United Nations Peacekeeping
• Origin: Began in 1948 with the establishment of the United
Nations Truce Supervision Organization (UNTSO) in the
Middle East to monitor ceasefires.
• Deployment Mechanism: UN Security Council provides
mandates to Missions by adopting a resolution.
o Budget and resources are subject to General Assembly
approval.
• Key Rules/Principles of engagement include:
o Consent of the involved parties in a conflict
o Impartiality
o Non-use of force except in self-defense or defense of the mandate.
• Governance: Department of Peace Operations (DPO) of UN, formally created in 1992, provides political and
executive direction to peacekeeping operations.
o Currently, it operates 11 peacekeeping missions in regions like Western Sahara, Golan, Democratic Republic of
Congo etc.
• Award & Honour: Nobel Peace Prize in 1988.
• Doctrines:
o Capstone Doctrine: It sets out the guiding principles and core objectives of UN Peace operations.
> It also provides a basis for the development of training materials for military, police and civilian personnel
preparing to serve in the field.
o Responsibility to Protect (R2P) doctrine (2005): It embodies a political commitment to end the worst forms of
violence and persecution.
India’s Key Contribution to UN Peacekeeping

• Highest Troops Contribution: Contributed over 2.9 Lakh peacekeepers serving in more than 50 UN missions.
o It is currently the fourth largest troop-contributing nation after Nepal, Rwanda and Bangladesh.
o It played a key role in the Korean War armistice, peace missions in Cyprus, Congo etc.
• Capacity Building: India's Centre for United Nations Peacekeeping (CUNPK), established by the Indian Army
in New Delhi, serves as the nation's focal point for peacekeeping training
• Promoting Gender Parity: India became the first country to deploy an all-women Formed Police Unit (2007,
Liberia).
Key challenges faced by Peacekeeping
• Targeting Peacekeepers: E.g. Peacekeepers of UN Interim Force in Lebanon (UNIFIL) were injured during Israel-
Lebanon conflict.
• Opposition from host Countries: E.g. Sudan opposed African Union-United Nations Hybrid Operation in Darfur
(UNAMID)
• Credibility Issues: E.g. Failure to prevent genocide in Rwanda and Srebrenica in the 1990's.
• Changing Nature of Conflicts: E.g., rise in conflicts Intra-state conflicts, rather than inter-state, changing profile of
armed groups using terrorist tactics and unregulated spread of a new generation of weapons.
• Other: Restrictions on Freedom of Movement; Delays in Political Solutions; Lack of well structured; equipped
and trained forces; Lack of participation of major troop contributing countries in decision making, etc.
Conclusion
UN Peacekeeping can be made more effective by implementing recommendations of Brahimi Report (2000) and UN
High-Level Independent Panel on Peace Operations (HIPPO) (2015) such as need of Security Council and UN system
to act earlier in crisis situations to improve mission success, etc. Further, future peacekeeping must adapt to new
security, gender, and human rights challenges, address funding and legitimacy issues, and ensure that peacekeepers
are well-trained, well-equipped, and accountable to both the UN and the people they serve.
To know more about India’s role in global peace making refer to the Article 2.1. India: Global Peacemaker in June
2024 Monthly Current Affairs Magazine.

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2.6. NEWS IN SHORTS
2.6.1. NEW DEVELOPMENT BANK
Algeria became 9th member of NDB.
About NDB (Hq: Shanghai, China)
• Genesis: 2015 by Brazil, Russia, India, China and South Africa (BRICS) countries.
• Purpose: It is a Multilateral development bank for mobilising resources for infrastructure and sustainable
development projects in emerging markets and developing countries (EMDCs).
• Members: Brazil, Russia, India, China, South Africa, Bangladesh, UAE, Egypt, Algeria.
o The membership is open to members of the United Nations, including both borrowing and non-borrowing
members (Article 2 of the NDB).
o Uruguay is listed as the prospective member (admitted by NDB’s Board of Governors but will officially become
a member after depositing its instrument of accession).
• Capital and Shareholding: Out of the initial authorized capital of $100 Billion, all 5 founding members have an
equal share totaling $50 Billion.
• Voting Power: Combined voting power of founding members to be atleast 55%.

Contemporary significance of Regional Financial Institutions

• Sustainable and Inclusive Development: E.g., As of 2024, India has around 20 ongoing projects (worth $4.87
billion) supported by NDB, covering transportation, water conservation, etc.
• Bridging Infrastructure and Investment Gaps: Mobilize long-term financing for infrastructure, catalyse private
investment, and close funding gaps.
• Promoting Regional Integration and Stability: Facilitate cross-border cooperation. E.g., India being the founding
member of NDB and AIIB has strengthened the South-South cooperation.

2.6.2. IAEA
Minister of Defence urged IAEA oversight of Pakistan's nuclear arsenal.
About International Atomic Energy Agency (IAEA)
• Headquarters: Vienna, Austria
• Genesis: Established in 1957 as an autonomous international organisation within the UN.
• Motto: Atoms for Peace and Development
• Members: 180 (India is a member)
o North Korea: Joined in 1974, withdrew in 1994
• General Conference: All member states meet annually in Vienna.

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• Recognition: Awarded the Nobel Peace Prize in 2005 for promoting peaceful nuclear use and global safety
• IAEA and NPT: The IAEA is not a member of the Non-Proliferation of Nuclear Weapons (NPT) but plays a key
verification responsibilities under the Treaty.
o Each non-nuclear-weapon State party is required under NPT to conclude a comprehensive safeguards
agreement (CSA) with the IAEA to enable the IAEA to verify the fulfilment of their obligation.
About NPT
• The NPT is a binding international treaty whose
objective is to prevent the spread of nuclear weapons
and weapons technology.
• It came into force in 1970 and was extended indefinitely
in 1995.
• So far, 191 countries have joined, including all five
recognized nuclear-weapon states (China, France,
Russia, the UK, and the US).
o India, Israel, and Pakistan have never joined, while
North Korea withdrew in 2003.

Other Treaties to Prevent Nuclear Proliferation

• Partial Test Ban Treaty 1963: Treaty banning nuclear weapon tests in the atmosphere, in outer space and
underwater (India has signed and ratified).
• Comprehensive Nuclear Test Ban Treaty (CTBT), 1996: CTBT bans all nuclear explosions, whether for military or
peaceful purposes (India did not sign)
• Prohibition of Nuclear Weapons (TPNW) 2017: includes a comprehensive set of prohibitions on participating in
any nuclear weapon activities (India did not sign).

2.6.3. UN SECURITY COUNCIL’S (UNSC) 1267 SANCTIONS COMMITTEE

Indian officials briefed the monitoring team of the UNSC’s 1267 Sanctions Committee on the activities of The Resistance
Front (TRF).
About 1267 sanctions Committee
• It is also called the ISIS and Al-Qaeda Sanctions Committee.
• It was established in 1999, to focus on combating terrorism linked to ISIS, Al-Qaeda, and related groups.
• It comprises all permanent and non-permanent members of the UNSC.
• The committee decides on sanctions and travel bans for terror organisations and ensures the enforcement of these
measures under UNSC resolutions 1267 (1999), 1989 (2011), and 2253 (2015).
2.6.4. ASIAN PRODUCTIVITY ORGANIZATION
India has formally assumed the Chairmanship of the Asian Productivity Organization for 2025-26.
About Asian Productivity Organization (APO)
• Genesis: It is an intergovernmental organization established in 1961 by 8 founding members.
o India is one of the founding members.
o Objective: To increase productivity in the Asia-Pacific region through mutual cooperation.
o Members: Comprises 21 economies in the Asia-Pacific region.
o Key roles: Conducts research on emerging needs of members for their follow-up, promotes bilateral and
multilateral alliances among members, surveys the economic and development policies and performance of
each member, etc.

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2.7. ERRATA
In the March 2025 Monthly
Current Affairs Magazine, in
Article 2.2. Indian Ocean Rim
Association (IORA), a design error
in the infographic titled ‘Member
States of IORA’ led to France being
incorrectly mentioned as a
Dialogue Partner of IORA and
omission of 3 member states-
Maldives, Mauritius and
Seychelles. The correct infographic
is provided below.

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11. PLACES IN NEWS

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 Table of Contents
1. POLITY AND GOVERNANCE ________________3 3.8.7. International Crops Research Institute For The
1.1. 50 years of Emergency ____________________ 3 Semi-Arid Tropics (ICRISAT) _____________________ 37
1.2. Personality Rights ________________________ 4 3.8.8. National Turmeric Board __________________ 38
3.8.9. Nano Fertilizers __________________________ 39
1.3. News in Shorts __________________________ 5
1.3.1. Constitutional Validity of Narco Tests _________ 5 4. SECURITY _____________________________ 40
1.3.2. Quality Council of India (QCI) ________________ 6 4.1. Fifth-Generation Fighter Jet AMCA _________ 40
1.3.3. ECINET app ______________________________ 6 4.2. News in Shorts _________________________ 41
1.3.4. Adi Karmyogi Programme ___________________ 7 4.2.1. Silver Notice ____________________________ 41
2. INTERNATIONAL RELATIONS _______________8 4.2.2. Successful Trial Rudrastra Conducted At Pokhran,
2.1. India and Shanghai Cooperation Organization Rajasthan____________________________________ 42
4.2.3. Exercises In News ________________________ 43
(SCO) _____________________________________ 8
2.2. China-led Trilateral Nexus _________________ 9 5. ENVIRONMENT ________________________ 44
2.3. Israel-US-Iran Conflict ___________________ 11 5.1. Agroforestry ___________________________ 44
2.4. Group of Seven (G7) _____________________ 12 5.2. International Conference on Disaster Resilient
2.5. World Trade Organization (WTO) Reforms ___ 14 Infrastructure 2025 _________________________ 45
5.2.1. Disaster Risk Reduction (DRR) Financing ______ 46
2.6. Economic Community of West African States
5.3. Maritime Disasters ______________________ 48
(ECOWAS) ________________________________ 15
5.4. Crowd Disaster Management _____________ 50
2.7. News in Shorts _________________________ 16
2.7.1. UN Security Council (UNSC) ________________ 16
5.5. Bharat Forecast System __________________ 52
2.7.2. UN Economic and Social Council (ECOSOC) ____ 17 5.6. News in Shorts _________________________ 52
2.7.3. Us Pulls Funding from Gavi, The Vaccine Alliance 5.6.1. Intergovernmental Science-Policy Panel On
____________________________________________ 18 Chemicals, Waste And Pollution Established ________ 52
2.7.4. International Organisation for Mediation (IOMed) 5.6.2. ILO Convention on Biological Hazards ________ 53
____________________________________________ 18 5.6.3. State And Trends Of Carbon Pricing 2025 _____ 54
2.7.5. India-Kyrgyzstan Bilateral Investment Treaty (BIT) 5.6.4. State of The Climate In Asia 2024 ___________ 54
____________________________________________ 18 5.6.5. National Mission for a Green India __________ 55
2.7.6. International Organization for Marine Aids to 5.6.6. Global Drought Outlook, 2025 Released ______ 55
Navigation (IALA) ______________________________ 19 5.6.7. Global Ocean Darkening Threatens Underwater
2.7.7. Zangezur Corridor ________________________ 19 Ecosystems __________________________________ 56
2.7.8. E‑Passport ______________________________ 20 5.6.8. Blue Nationally Determined Contributions (NDC)
Challenge____________________________________ 56
3. ECONOMY _____________________________21
5.6.9. Third United Nations Ocean Conference (UNOC3)
3.1. Rural India: The New Engine of India's Consumer ____________________________________________ 57
Market ___________________________________ 21 5.6.10. New Ramsar Sites in Rajasthan ____________ 57
3.2. Quick Commerce in India _________________ 22 5.6.11. Greater Flamingo Sanctuary ______________ 58
3.3. Aviation Safety _________________________ 24 5.6.12. IBAT Alliance ___________________________ 58
3.4. Asset Monetization _____________________ 25 5.6.13. International Big Cat Alliance (IBCA) ________ 59
3.5. Foreign Direct Investment (FDI) ____________ 28 5.6.14. Revised Guidelines On National Bioenergy
3.6. Financing for Sustainable Development _____ 30 Programme __________________________________ 59
3.6.1. Sustainable Development Report (2025) ______ 31 5.6.15. Energy Transition Index (ETI), 2025 _________ 60
3.7. Atal Mission for Rejuvenation and Urban 5.6.16. Thirstwave ____________________________ 61
Transformation (AMRUT) ____________________ 32 5.6.17. Salkhan Fossil Park Added To UNESCO Tentative
List For World Heritage Sites ____________________ 61
3.8. News in Shorts _________________________ 34
5.6.18. Recent Volcanic EruptionsMount Etna ______ 62
3.8.1. Digital Payment Intelligence Platform (DPIP) ___ 34
3.8.2. Priority Sector Lending (PSL) Norms For Small 6. SOCIAL ISSUES _________________________ 63
Finance Banks (SFBs) ___________________________ 34 6.1. Cultural Appropriation ___________________ 63
3.8.3. Sagarmala Finance Corporation Limited (SMFCL) 35 6.2. Tier-2 Influencers redefining Cultural Capital in
3.8.4. Indigenous Polar Research Vessel (PRV) ______ 36 Digital India _______________________________ 64
3.8.5. Report On Value of Output from Agriculture and 6.3. Improvement in QS World University Rankings
Allied Sectors (2011-12 To 2023-24) ______________ 36 _________________________________________ 65
3.8.6. Modified Interest Subvention Scheme (MISS) __ 37 6.4. Manosphere ___________________________ 67

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2. INTERNATIONAL RELATIONS
2.1. INDIA AND SHANGHAI COOPERATION ORGANIZATION (SCO)
Why in the News?
Recently, India has refused to sign a joint declaration at the Shanghai Cooperation Organisation (SCO) Defence
Ministers’ meeting in Qingdao, China.
More on the News
• Due to India’s refusal the meeting concluded without a joint communique.
o According to the SCO Charter, the group makes decisions by aggreement without a vote, and these decisions
are considered adopted if no member state raises objections.
• India in SCO granted observer status in 2005 and elevated to full membership in 2017.
Why did India refused to sign a Joint Declaration?
• Double Standard for Terrorism: In the document, there was no mention of the recent Pahalgam attack but included
militant activities in Balochistan.
o India emphasized that SCO should not hesitate to criticize nations that promoted cross-border terrorism.
• Non-Negotiable Core Principles: India has consistently maintained that peace and terrorism cannot coexist, and
this principle remains non-negotiable even in multilateral forums.
India’s Strategic Opportunities within the SCO Framework
• Engaging Central Asia/Geopolitical Outreach: SCO forum can be used to improve relations with Central Asian
Republics (CARs).
o This complements the Connect Central Asia Policy.
• Economic and Energy Cooperation: E.g., In 2022 Kazakhstan produced the largest share of uranium from mines
(43% of world supply)
• Promoting Regional Connectivity: E.g. International North-South Transport Corridor (INSTC)
• Engaging with Pakistan and China: SCO acts as a diplomatic channel to maintain dialogue despite bilateral
tensions.
What are India’s concerns regarding SCO?
• China’s multilateral power play: China aims to transform the grouping into a China-led multilateral forum for
regional geo-economic and strategic interests.
o E.g., Help BRI gain regional prominence.
• Expansion Dilemma: Recently Belarus joined SCO; this raises its global profile but dilutes regional focus.
o SCO was instituted with the sole focus on Central Asia. Expansion could potentially drive members to seek
alternative cooperation formats.
• SCO’s Effectiveness: The decisions of the SCO lack the necessary executive guarantee and as result, this
organisation, like the Non-Aligned Movement (NAM), has become merely a place to discuss and announce
positions and views.
• Perceived Anti-Western Group: SCO is sometimes viewed as an anti-western block, especially with the ongoing
geopolitical tensions involving China, Russia, and Iran with the West.
How India balances Strategic Autonomy with multilateral engagement in the SCO?
• Prioritizing Strategic National Interests over Chinese Interest: At the SCO 2023 summit in Pakistan, India refused
to sign the paragraph that supported China's Belt and Road Initiative (BRI).
o This also shows how India is tackling Pakistan-China Axis Agenda in a group.
• Selective Participation with Principles: E.g., SCO’s Regional Anti- Terrorist Structure (RATS) coordinates
counter-terrorism efforts among member states.

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• Promoting Development-oriented platform: E.g., SCO Sub-Group on Cooperation in Traditional Medicine and
Startups and Innovation
o This will ensure that SCO is not viewed as anti-western block.
• Leveraging close Relationship with Russia: E.g. India and Russia cooperate on core agenda items in the SCO.

Role of SCO in Reshaping Global Multilateral Order

• SCO's global pivot: Covers approximately 80% of the Eurasian landmass and represents about 42% of the global
population.
• Rising Economic Clout: Member countries contribute around 25 % of the global GDP.
• SCO's challenging Western Domination: SCO is emerging as an alternative to multilateral forums established by
the Western countries to fulfill their interest.
• Filling the Security Void: SCO addresses Afghanistan's security vacuum left by NATO alliances (led by the US), in
2021.
o Afghanistan Contact Group (ACG) was created by SCO in 2005 to maintain regional cooperation with Kabul.
Conclusion
India views the SCO as a vital platform for regional engagement, especially in Central Asia, but remains cautious of its
China-centric tilt. India’s balanced approach allows meaningful participation without compromising core values.

2.2. CHINA-LED TRILATERAL NEXUS

Why in the News?

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China, Pakistan, and Bangladesh recently held their first-ever trilateral meeting on the sidelines of the 6th China-
South Asia Cooperation Forum.
More on the News
• The meeting aimed to promote regional cooperation and connectivity, with China taking the lead in facilitating
dialogue among them.
• This marks China’s second trilateral initiative in India’s immediate neighbourhood, following a similar engagement
with Pakistan and Afghanistan.
o The three sides aim to deepen cooperation in Belt and Road Initiative (BRI), promote the extension of the China-
Pakistan Economic Corridor (CPEC) to Afghanistan, and strengthen the construction of regional interconnection
networks.
• Also, multiple analyses point towards the emergence of a strategic nexus involving China, Turkey, and Pakistan,
as evidenced by their coordinated responses during the Pahalgam crisis.
• These engagements challenge India’s traditional influence in the region. China intends to create an arc of
strategic influence spanning from Afghanistan to the Bay of Bengal.
Factors facilitating these Trilateral Engagements
• Historical: Both Pakistan and China share longstanding border disputes with India. Their strategic partnership
deepened significantly after the 1962 Sino-India war.
• China’s Assertive Regional Policy: Actively expanding
geopolitical footprint in South to achieve regional dominance Rising China’s Influence in South Asia
and access to Indian Ocean trade routes. • Pakistan: E.g., Pakistan is dependent on
• Strategic Balancing against India: Countries like Bangladesh China for majority of its defence import.
leverage ties with China to counter India’s regional influence • Maldives: E.g., China-Maldives Friendship
and assert greater strategic autonomy. Bridge and housing projects.
• Infrastructure Diplomacy: China is offering faster and larger • Nepal: E.g., Pokhara International Airport
infrastructure funding to India’s neighbours. and proposed trans-Himalayan connectivity
Concerns / Implications for India from Rising China’s Influence projects.
• Sri Lanka: E.g., China developed the
• Geostrategic Encirclement: China has already established a Hambantota Port and leased it for 99 years.
presence at strategic ports under the ‘String of Pearls’ • Bangladesh: E.g., China is Bangladesh’s
Strategy. E.g., Hambantota Port (Srilanka). biggest defence supplier.
o Northeast India’s vulnerability may be heightened if
Bangladeshi territory can be used to destabilize Northeast India by fuelling insurgent activities.
• Undermining India led Regional Platforms: This could undermine the influence of India-backed groups such as
the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).
• Diminishing Regional Influence: E.g. Bangladesh expressed interest in involving China in the Teesta River project,
which has long been a point of friction between India and Bangladesh.
• India's Connectivity Initiatives: Promotion of BRI Projects may impact India-led alternatives such as the BBIN
(Bangladesh, Bhutan, India, Nepal) initiative and the India-Middle East-Europe Corridor (IMEC).
Strategy to be adopted by India
• Counterbalance through Strategic Partnerships: India should enhance cooperation with like-minded nations like
Japan, the US, etc. to balance Chinese influence in South Asia. E.g. QUAD
• Implementation of developmental projects: The Ministry of External Affairs can set up a dedicated cell to
coordinate specific projects and initiatives with neighbouring countries.
• Development Fund: Explore the feasibility of setting up a regional development fund for connectivity infrastructure
under regional frameworks like BIMSTEC.
• Bilateral and multilateral/ regional framework: Conduct regular reviews of multilateral/ regional framework to
align these mechanisms with changing regional dynamics.
o India should actively work to get better outcome from its Act East policy.
• Engagement through RIC: China and Russia recently showed interest in reviving RIC, which was initiated in late
1990s by Russia, but has been dormant due to factors like 2020 Galwan Valley clashes.

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Conclusion
The China-Pakistan-Bangladesh trilateral meeting marks a significant development in South Asian geopolitics. A
proactive, inclusive, and balanced foreign policy backed by economic, strategic, and cultural outreach is essential for
India to safeguard its interests and retain its influence in the neighbourhood.

2.3. ISRAEL-US-IRAN CONFLICT

Why in the news?
Recently, the Israel Defense Forces (IDF) launched “Operation Rising Lion”, a major strike against Iranian nuclear
infrastructure and ballistic missile capability.
Key Developments of the conflict
• Israel’s strikes: It followed a vote by the IAEA Board of Governors (35 member states) declaring Iran in breach of
a 1974 agreement—the first such finding since 2006.
o Israel activated its new aerial defence system 'Barak Magen' or 'Lightning Shield,' against Iran’s attack.
• Retaliation by Iran: It launched 'Operation True Promise 3'.
• Participation of United States: It launched “Operation Midnight Hammer”, a series of precision airstrikes
targeting 3 Iranian nuclear facilities- Natanz (Iran’s primary uranium enrichment facility), Isfahan & Fordow.
o US used GBU-57 Massive Ordnance Penetrators (MOP), a precision-guided conventional bomb that can
penetrate up to 200 feet below the surface before exploding.
• India’s response:
o Urged both sides to avoid any escalatory steps and return to diplomacy.
o India refrained from participating in the Shanghai Cooperation Organization (SCO) discussions Iran-
Israel's conflict, which condemned Israeli military strikes.

About 'Barak Magen' or 'Lightning Shield

• It is a special version of Barak MX missile defence system, built to protect navy ships from various aerial threats
like drones, cruise missiles, and ballistic missiles.
• It complements Israel’s existing systems- Iron Dome, David’s Sling, Arrow, plus future laser Iron Beam.

Implications of the Iran-Israel-US Conflict

Global Implications
• Rise in Nuclear Tensions: Pre-emptive military action
undermines the credibility of global nuclear non-proliferation
norms, established by Treaty on the Non-Proliferation of
Nuclear Weapons (NPT).
o Iran suspended cooperation with the IAEA and is planning
to withdraw from the NPT, signalling a possible shift
towards open pursuit of nuclear weapons.
• Threat to Trade and Energy Security: Iran's Parliament has
approved a proposal to close the Strait of Hormuz which could
increase global oil and LNG prices and shipping insurance
and freight costs.
o 35% of global seaborne oil and 20% of LNG pass through the
Strait.
• Disruption of undersea cable infrastructure: Several high-
capacity routes like Europe India Gateway (EIG), FLAG (Fiber-
Optic Link Around the Globe) etc. run through maritime
corridors near Israel, Iran, and conflict-prone zones like the Red Sea, Gulf of Oman, and the Strait of Hormuz.

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 o E.g., in 2024, three major cables were disrupted in the Red Sea during regional conflict escalation, leading to
latency issues across Africa, the Gulf, and South Asia.
• Power Vacuum: A weakened Iran creates a vacuum of influence in Syria, Iraq and Lebanon, which could become the
new sites of regional tension.
o E.g., Iran exerted regional influence using its allies in the informal Axis of Resistance.
Implications on India
• Decline in bilateral trade:
o Iran: From $14 billion (2017) to $1.4 billion (2024) after India halted oil imports under U.S. sanctions.
o Israel: From $11 billion (2022) to $3.75 billion (2024) due to regional tensions.
• Geopolitical Implications: India maintains close ties with both Israel and Iran, requiring careful diplomatic
balancing of interests.
o E.g., Israel is a crucial partner in defence and technology, while Iran holds significance for energy security and
as a broader gateway to Eurasia.
• Infrastructure and Connectivity Projects: India’s investment in projects like Chabahar port, International North-
South Transport Corridor etc. for trade and connectivity to Afghanistan, Central Asia and Eurasia will be affected.
o E.g., Iran's missile attacks on Israel's Haifa port disrupted its role in the India-Middle East-Europe Economic
Corridor.
• Geopolitical Realignment: The fall of Iran could shift West Asia from multipolarity to US-led unipolarity, reducing
space for non-Western powers like India.
• Security of Indian Nationals Abroad: Nearly 28,000 Indians in Israel and 10,765 in Iran face heightened risk due to
escalating tensions.
o India launched Operation Sindhu to evacuate Indian nationals from conflict zones in Iran and Israel.
Conclusion
Iranian dimension in India-Israel relations is a complex balancing act that reflects India’s strategic autonomy and its
need to maintain parallel ties with both countries despite their adversarial relationship. With close ties to both Iran and
Israel, India has the opportunity to mediate between the two as their confrontation continues and risks further
geopolitical escalation

2.4. GROUP OF SEVEN (G7)

Why in the News?
India had participated as an Outreach Country in 51st G7 Summit (2025) held in Kananaskis, Canada.
More on the news
• On the sidelines of the Summit, India-Canada revived their bilateral relation by-
o deciding on early return of High Commissioners; and
o resuming negotiations on Early Progress Trade Agreement (EPTA)- potentially setting the stage for a full
Comprehensive Economic Partnership Agreement (CEPA).
• Key Outcomes of 51st G7 Summit (2025) Summit
o Kananaskis Wildfire Charter: Adopted a "whole of society" approach, including Indigenous knowledge,
sustainable forest management, and awareness campaigns (endorsed by India).
o G7 Critical Minerals Action Plan: Secure sustainable and resilient supply chains for critical minerals.
o Key Initiatives on Artificial Intelligence (AI): G7 GovAI Grand Challenge and a shared G7 AI Network (GAIN).

About Group of Seven (G7)

• Genesis: 1975 in response to economic and financial cooperation due to energy crisis.
• An informal bloc of industrialized democracies comprising: France, Germany, Italy, the United Kingdom,
Japan, the United States, and Canada.
o Russia was a member from 1998 to 2014, during which the forum was called the G8.

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 o Russia’s annexation of Crimea in March 2014 led to its suspension from the group.
• Purpose and Agenda: Meets annually to deliberate on key global issues such as: Global economic governance,
International security. Energy policy, etc.

Contemporary Relevance of G7
• Global Security and Conflict Response
o Ukraine Crisis: The G7 coordinated sanctions against Russia & supported Ukraine with financial packages from
frozen Russian assets.
o China Policy: In 2025, the G7 condemned China’s coercion toward Taiwan, notably dropping reference to
the ‘One China policy’ (People's Republic of China (PRC) as the sole legal government of China).
> Also, the G7 launched The Partnership for Global Infrastructure and Investment (PGII) which aims to counter
China’s Belt and Road Initiative.
• Influences agendas at international institutions: Like the UN, IMF, and World Bank.
o Tax Governance: It supports the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting to
ensure fair, stable global tax rules and limit harmful corporate tax competition.
o Anti-Money Laundering: The Financial Action Task Force (FATF) was established in 1989 by the G7 to examine
and develop measures to combat money laundering.
• Sustainable and Digital Governance: E.g., Global Partnership on Artificial Intelligence (GPAI) and the Hiroshima
AI Process, promoting ethical AI, transparency, data protection, and cybersecurity.
o Also, The G7 Climate Club promotes global cooperation to achieve net-zero by 2050.
• Engagement with the Global South: Through outreach to Non-Members like India, South Africa, Brazil, etc.
• Acts as a “club of democracies”: It is a core alliance championing a ‘rules-based international order’, human
rights, and democratic norms.
o E.g., It serves as a collective counterweight to authoritarian countries like China and Russia.
Hurdles for the G7
• Declining Economic Dominance: E.g., G7’s share of global GDP has fallen from ~70% in the 1980s to ~44% (2021),
while emerging economies (e.g., China, India) now drive growth.
• Consensus-Based Decision that Obstructs Decisive Action: E.g., 51st G7 failed to issue a strong statement on the
Ukraine war after resistance from US.
• Lack of Legal Authority: As an informal forum without a permanent secretariat or binding legal framework, the G7’s
decisions lack enforceability, limiting its capacity to drive collective action effectively.
o E.g., 2025 Kananaskis Wildfire Charter relies on voluntary compliance.
• Underrepresentation of t Global South: The absence of major emerging powers like India, Brazil, Indonesia, and
Nigeria and blocs like African Union (AU).
• Competition from Alternative Blocs: BRICS Plus offers as an alternative to G7 with better represtation.

India’s Strategic Interests at the G7

• Strategically Balancing the West and the Global South: India positions itself as a bridge between the
industrialized West (G7) and the Global South.
• Economic & Technological Cooperation: E.g., India has been a strong proponent of initiatives like the G7’s PGII,
which aims to invest in infrastructure in developing countries.
• Democracy & Strategic Weight: India’s democratic credentials and economic growth (4th largest economy) make
its voice influential within G7 dialogues.
• Platform for Bilateral talks: E.g., Indian PM met Canadian PM to reset the deteriorating relations.

Conclusion
G7 countries should be more inclusive in its approach and set up agenda which is relevant to the contemporary world
order. For India, these challenges are also opportunities—to advocate for fairer, more inclusive decision-making and
to bridge the gap between the Global South and industrialized nations.

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2.5. WORLD TRADE ORGANIZATION (WTO) REFORMS
Why in the News?
Recently, India called for reforms to the WTO during a high-level mini-ministerial meeting in Paris ahead of 14th
Ministerial Conference in Cameroon, 2026.
About WTO
• Genesis:1995 post the Marrakesh Agreement.
o Successor to the General Agreement on Tariffs and Trade (GATT).
o 1986-94 Uruguay Round negotiations led to WTO’s creation.
• Functions: Administering Trade Agreements, Forum for trade negotiations, settling trade disputes, reviewing
national trade policies, building trade capacity of developing organisations.
• Members: 166 constituting 98% of World Trade. (India is a member since 1995).
• Decision Making: Based on Consensus.
• Ministerial Conference: Top-Level decision-making body meeting every two years.
• Secretariat: Geneva.

Key reforms demanded by India

• India’s 3-pronged reform agenda-
o Tackling non-tariff barriers (NTBs) that restrict market access: It includes restriction like import licensing,
technical standards, complex customs procedures etc.
o Addressing distortions caused by non-market economies: E.g., WTO rules are not sufficient to tackle China’s
state-support mechanisms which distort market competition and provide advantages to its domestic firms.
o Reviving the WTO’s dispute settlement system: It has been paralyzed since 2016 due to U.S. opposition to
appellate body appointments.
> Although India is skeptical of Multi-Party Interim Appeal Arbitration Arrangement (MPIA).
• Other key priorities:
o JSIs (joint statement initiatives) (or) pluri-laterals: These allow only a few countries to negotiate on specific
issues, which can lead to unfair treatment of others not involved.

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 > Some countries want JSIs to become part of the broader multilateral system, but India opposes as it may risk
fragmenting the multilateral system.
> For example, India refused to join China-led talks on Investment
Facilitation for Development.
• Permanent solutions for public food grain stockholding programs: In
2013, an interim “peace clause” allowed developing countries to provide
subsidies under public stockholding programmes without being legally
challenged in the WTO's dispute settlement system.
• Concerns of overfishing and indiscriminate fishing: Agreement on
Fisheries (2022) is in deadlock as it has not received acceptance from two-
thirds of WTO members to come into effect.
o India is not part of the agreement, raising concerns like-
> 25-year transition period: For developing countries under Special
and Differential Treatment (SDT).
> ‘Polluter pay principle’ and ‘common but differentiated
responsibilities’: More obligation to prohibit subsidies on
members historically granting huge subsidies, and engaged in large-scale industrial fishing.

Other Contentious issues at WTO

• No Objective Measures of ‘Development status’: India strongly opposes any attempts to reform SDT while
USA opposes claims of countries like China as developing.
• Emerging Issues:
o Regulatory Shifts: E.g., EU’s Carbon Border Adjustment Mechanism will impact Low-Middle-Income
countries disproportionally increasing complexity and compliance cost.
o Geopolitical Shifts and Protectionist Patterns: E.g., USA-China tariff war.
o Newer Concepts: New set of concepts on data privacy, cross-border data flows, and taxation of digital
services, climate change, etc., requires international cooperation.

Way Forward
• Ensuring developing countries have a say in decision-making processes along with addressing their concerns
over issues like cultural subsidies, intellectual property, etc.
• Strengthen monitoring and notification systems for NTBs to improve transparency and reduce misuse.
• Develop clear rules to prevent fragmentation caused by plurilateral agreements and ensure they do not undermine
the multilateral system.
• Explore alternative interim dispute resolution models.
• Address trade distortions arising from state-owned enterprises and industrial subsidies, ensuring a level playing
field.
• Guiding Principles like the Paris Agreement’s “Common but Differentiated Responsibilities” should be adopted
to prevent unjust application of trade obligations on the developing countries.
Conclusion
While the WTO has been instrumental in expanding and regulating international trade through a rules-based system, its
effectiveness is currently undermined by issues like non-tariff barriers, trade distortions, and stagnated dispute
settlement system. India’s call for reforms encapsulates the aspirations of many developing and least-developed
countries seeking a fair, transparent, and inclusive multilateral trading system.

2.6. ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS)

Why in the News?
ECOWAS marked its 50th anniversary this year.

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About ECOWAS
• Established: Established on 28 May 1975 by 15 West African countries through the Treaty of Lagos.
• Headquarter: Abuja, Nigeria.
• Regional Bloc: ECOWAS comprises 12 West African countries (June 2025).
o Its member countries include Benin, Cabo Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau,
Liberia, Nigeria, Senegal, Sierra Leone, and Togo.
• Aim: To promote cooperation and integration for an economic union in West Africa, improving living standards,
ensuring economic stability, strengthening member relations, and contributing to Africa’s development.
o ECOWAS established its free trade area in 1990 and adopted a common external tariff in January 2015.
India–ECOWAS Relations
• Diplomatic Relations: India became an Observer to
ECOWAS in 2004.
o ECOWAS supports India’s bid for permanent UN
Security Council membership.
• South–South Cooperation: India supports regional
development of western Africa. E.g. MoU between
ECOWAS Centre for Renewable Energy and Energy
Efficiency and India’s International Solar Alliance
(ISA) for renewable energy cooperation.
• Economic Cooperation: In 2006, India gave the
grouping a line of credit (LoC) worth USD 250 million to
supplement Focus Africa Programme.
o India launched an integrated programme ‘Focus
Africa’ from the year 2002-03 to increase
interactions between India and Africa by identifying the areas of bilateral trade and investment.
Conclusion
As ECOWAS enters its sixth decade, it stands at a historic crossroads. While its legacy of integration, peacekeeping, and
human development is commendable, internal fragmentation, political instability, and citizen disconnect threaten its
future relevance.

2.7. NEWS IN SHORTS

2.7.1. UN SECURITY COUNCIL (UNSC)
5 countries were elected to serve
as non-permanent members of
the United Nations Security
Council (UNSC).
• These countries are Bahrain,
Colombia, the Democratic
Republic of Congo, Latvia,
and Liberia.
About UNSC
• Genesis: Established in 1945
through the UN Charter as one of the 6 principal organs of the UN.
• Purpose: Maintaining international peace and security.
• Members: 5 permanent members (P5) and 10 non-permanent members (refer to the infographic).
UNSC Reform Proposal (2024)

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• Proposed by: G4 Nations (India, Brazil, Germany, Japan)
• Need:
o Misuse of veto power by permanent members
o Poor regional representation
o Does not reflect current global realities
• Key provisions of proposed reforms
o Expanded Membership:11 permanent and 14–15 non-permanent members
o Equitable Regional Representation: 6 new permanent seats to be distributed among Africa, Asia-Pacific, Latin
America & Caribbean, and Western Europe/Other States.
o No veto for new permanent members initially: This provision to be reviewed 15 years after reforms are
implemented.

Related news
Pakistan has been elected as the Chair of the UNSC's Taliban Sanctions Committee and Vice-Chair of the Counter-
Terrorism Committee for 2025.
Taliban Sanctions Committee (TSC)
• Genesis: Created under UNSC Resolution 1988 (2011)
• Key Function: To monitor and enforce sanctions against individuals, groups, and entities linked to the Taliban
in constituting a threat to the peace, stability and security of Afghanistan
Counter-Terrorism Committee (CTC)
• Genesis: Established after the 9/11 attacks, through UNSC Resolution 1373 (2001) which is binding on all UN
member states
• Members: All 15 Security Council members
• Key Functions: Monitor countries' efforts to fight terrorism by ensuring they criminalize terror financing, freeze
funds linked to terrorists, share intelligence with other countries, etc.

2.7.2. UN ECONOMIC AND SOCIAL COUNCIL (ECOSOC)

India has been elected to the UN Economic and Social Council (ECOSOC) for the term 2026–2028.
• Membership in ECOSOC is region-based and divided among
five geographic groups Africa, Asia-Pacific, Eastern European,
Latin American & Caribbean, and Western European and other
States.
• India is elected under the Asia-Pacific group, alongside China,
Lebanon, and Turkmenistan (4 seats available)
About UN Economic and Social Council (ECOSOC)
• Headquarter: New York (USA)
• Genesis: Established in 1945 as one of the six main organs of
the United Nations.
• Members: 54 (elected by the UN General Assembly for a 3-year
term; 18 elected each year)
• Key Role:
o Advance the three dimensions of sustainable development: economic, social and environmental
o Coordinates work of UN bodies and specialized agencies
o Issues policy recommendations to the UN system and member states

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2.7.3. US PULLS FUNDING FROM GAVI, THE VACCINE ALLIANCE
The US has accused Gavi, along with the World Health Organisation (WHO), of silencing dissenting views and legitimate
questions about vaccine safety.
• The US has long been one of biggest supporters of Gavi.
Rising trend of US withdrawal from
Global Alliance
• In recent years, the United States
has exhibited a rising trend of
withdrawing from key global
alliances and institutions such as
the WHO, the Paris Climate
Agreement, UN Human Rights
Council, UN Relief and Works
Agency (UNRWA), etc.
• As a global superpower, the U.S.'s withdrawal carries far greater implications for international governance.
Impact of US Withdrawing from Global Alliances
• Weakening of Multilateralism/Rule-Based Order: E.g. Israel withdraws participation from UN Human Rights
Council.
• Undermine Climate Actions: 2024 was recorded as the hottest year and the USA stands as the world's second-
largest greenhouse gas emitter behind China.
• Shortage of Funds for Health: US exit could leave institutions with fund crunch. E.g., In 2024, US-funded about 15%
of WHO's total funding.
• Other: It creates a leadership vacuum that can be filled up by China (it may reduce India's influence in global
organisations' decision-making), etc.

2.7.4. INTERNATIONAL ORGANISATION FOR MEDIATION (IOMED)

China formally established the IOMed as a global alternative to traditional institutions such as the International Court
of Justice (ICJ) and the Permanent Court of Arbitration.
About IOMed
• Purpose: dedicated to resolving international disputes through mediation.
• Members: Over 30 countries joined as founding members including Indonesia, Pakistan, and Belarus.
o Most founding members are from Asia, Africa, and the Caribbean, highlighting its non-Western orientation.
• Scope:
o Disputes between states,
o Disputes Between a state and nationals of another country,
o International commercial disagreements

2.7.5. INDIA-KYRGYZSTAN BILATERAL INVESTMENT TREATY (BIT)

The Bilateral Investment Treaty (BIT) signed in June 2019, entered into force with effect from 5th June 2025.
• This new BIT replaces the earlier agreement enforced in 2000, ensuring continuity in the protection of
investments between the two nations.
India-Kyrgyzstan Bilateral Investment Treaty (BIT)
• The BIT balances the investor rights with the sovereign regulatory powers of both countries and reflects a shared
commitment to create a resilient and transparent investment climate.
• Key Features of the BIT
o Definition of Assets: Enterprise-based definition with an inclusion and exclusion list & clarifies investment
characteristics: capital commitment, profit expectation, risk assumption, etc.

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 o Exclusions for Policy Space: Excludes local government, government procurement, taxation, compulsory
licenses, etc.
o Removes the Most Favored Nation (MFN) clause: Which previously allowed investors to selectively import
favorable provisions from other treaties signed by the Host State.
> This removal will ensure more consistent treatment.
o The BIT contains General and security exceptions: The attempt is to carve out a policy space for the State.
> General exceptions E.g., Protection of environment, ensuring public health and safety, etc.
o Revised dispute resolution mechanism: Requires investors to first use local remedies before international
arbitration, promoting alternative dispute resolution.

To know more about India’s Bilateral Investment Treaty (BIT), refer to Article 2.1. Bilateral Investment Treaty (BIT)
in March 2025 Monthly Current Affairs Magazine.

2.7.6. INTERNATIONAL ORGANIZATION FOR MARINE AIDS TO NAVIGATION (IALA)

India participated in 2nd Session of IALA Council as Vice President in Nice, France.
• India will also be hosting the 3rd IALA General Assembly in December 2025 and the 21st IALA Conference in 2027,
both to be held in Mumbai, Maharashtra.
About IALA
• Genesis: ESTABLISHED IN 1957 AS AN NGO as the International Association of Marine Aids to Navigation and
Lighthouse Authorities (IALA).
o In 2024, IALA became an Intergovernmental Organization (IGO) to strengthen its global role in maritime safety
and standard setting.
• Purpose: TO FOSTER THE SAFE, ECONOMIC AND EFFICIENT MOVEMENT OF VESSELS, through improvement
and harmonisation of aids to navigation worldwide.
• Mandate:
o Harmonise global maritime navigation systems
o Promote maritime safety initiatives
o Collaborate with member states, international organizations, and industry stakeholders to address emerging
challenges in maritime safety and environmental protection.
2.7.7. ZANGEZUR CORRIDOR
Türkiye urged Armenia and Azerbaijan take steps to open the Zangezur Corridor.
• The two countries have been in conflict over Nagorno-Karabakh (Artsakh) since 1917. The region is internationally
part of Azerbaijan, but mainly ethnic Armenians live there.
About Zangezur Corridor
• Location: It is a proposed 43-kilometer transport route through Armenia’s Syunik Province.

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• Objective: Connecting Azerbaijan’s Baku Port in Caspian
Sea to the Nakhchivan Autonomous Region, a western
exclave of Azerbaijan separated by Armenian territory, and
further to Turkey.
• India’s concerns: It can undermine India’s investments in
Chabahar Port and International North South Corridor
(INSTC) by offering a competing pathway, reducing India’s
regional leverage.

2.7.8. E‑PASSPORT
Ministry of External Affairs rolled out e-Passport and Passport
Seva Programme 2.0.
About e-Passport
• An ePassport is a combined paper and electronic passport
with a Radio Frequency Identification (RFID) Chip and an antenna embedded as an inlay of passport that
contains the personal particulars and biometric information of the passport holder.
o The underlying technology supporting the security of the ePassport is the Public Key Infrastructure (PKI)
solution.
• ePassport safeguards the passport from forgery and potential fraudulent activities like fake passports while
confirming the genuineness at border controls.

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11. PLACES IN NEWS

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