Copyright

Title: UPSC Mains GS Paper II: International Relations

Publisher: Indian Strategic Studies Forum (ISSF)
Copyright: © 2025 Indian Strategic Studies Forum (ISSF).

All rights reserved.

Disclaimer:

This document has been created to assist aspirants in their preparation for the
UPSC Civil Services Examination. While every effort has been made to ensure
complete accuracy and reliability of the content, ISSF cannot guarantee that the
material is 100% free from errors or omissions. Users are encouraged to
cross-check and verify the information as needed for their specific purposes.

Contact:
Indian Strategic Studies Forum (ISSF)

Telephone/Whatsapp: +91 9968867515

Telegram: https://t.me/ISSF_UPSC
Email: [email protected]
Website: www.issf.org.in

Published in India

1 © 2025 ISSF
SCAN TO ACCESS GS II IR VIDEO LECTURES

2 © 2025 ISSF
UPSC Mains GS Paper II: International Relations - Table of Contents

Part A: India and its International Relations - The Fundamentals

1.0 Introduction to India's Foreign Policy……………………………. 12
1.1 Evolution of India's Foreign Policy since Independence

1.1.1 Phase I: The Nehruvian Era (1947-1964) - Non-Alignment, Panchsheel

1.1.2 Phase II: Realism and Adaptation (1964-1991)

1.1.3 Phase III: Post-Cold War Era & Economic Liberalization (1991-2014) - Look
East Policy, Strategic Partnerships

1.1.4 Phase IV: Proactive & Assertive Foreign Policy (2014-Present) - Act East,
Neighbourhood First, SAGAR

1.2 Principles and Objectives of Indian Foreign Policy………………. 27

1.3 Key Determinants of India's Foreign Policy………………………. 31

1.3.1 Geographical Factors

1.3.2 Economic & Technological Factors

1.3.3 Historical and Cultural Factors

1.3.4 National Security Imperatives

1.3.5 Domestic Politics and Leadership

1.4 The Foreign Policy Making Establishment in India ………………..36

1.4.1 Role of the Prime Minister's Office (PMO)

1.4.2 Ministry of External Affairs (MEA)

1.4.3 National Security Council (NSC) & National Security Advisor (NSA)

3 © 2025 ISSF
Part B: India and Its Neighborhood
2.0 Core Principles of India's Neighborhood Policy …………………..40
2.1 Gujral Doctrine

2.2 Neighbourhood First Policy

2.3 SAGAR (Security and Growth for All in the Region) Doctrine

2.4 Connectivity as a Tool: BBIN, IMT Trilateral Highway, Kaladan Project

2.1 India-Pakistan Relations ……………………………………………53

2.1.1 Historical Context: Partition, Wars, Simla Agreement, Lahore Declaration

2.1.2 Core Contentious Issues

2.1.2.1 Jammu & Kashmir Issue

2.1.2.2 Cross-Border Terrorism & Terror Infrastructure

2.1.2.3 Siachen Glacier Dispute

2.1.2.4 Sir Creek Dispute

2.1.2.5 Indus Waters Treaty: Cooperation and Conflicts

2.1.3 Areas of Cooperation & Confidence Building Measures (CBMs)

2.1.3.1 Kartarpur Corridor

2.1.3.2 Trade (Current Status and Potential)

2.1.3.3 People-to-People Contact

2.1.4 Role of China in India-Pakistan Relations (CPEC)

2.1.5 Current Status and Future Prospects

2.2 India-China Relations …………………………………………..58

2.2.1 Historical Context: Panchsheel to 1962 War

2.2.2 The Border Dispute

2.2.2.1 The McMahon Line and the Eastern Sector (Arunachal Pradesh)

2.2.2.2 Aksai Chin and the Western Sector

4 © 2025 ISSF
2.2.2.3 Recent Standoffs: Doklam (2017), Galwan (2020), and subsequent
developments

2.2.3 Economic Relations

2.2.3.1 Bilateral Trade and Massive Trade Deficit

2.2.3.2 Investment Flows and Scrutiny

2.2.3.3 Supply Chain Dependencies

2.2.4 Geopolitical Competition

2.2.4.1 China's 'String of Pearls' Strategy and India's Counter

2.2.4.2 The Belt and Road Initiative (BRI) and India's Stance

2.2.4.3 China's increasing influence in South Asia and the Indian Ocean Region

2.2.5 Cooperation on Multilateral Forums (BRICS, SCO)

2.2.6 Water as a Source of Conflict: Trans-boundary Rivers (Brahmaputra)

2.2.7 Current Status: Competition, Confrontation, and Cooperation

2.3 India-Nepal Relations ……………………………………………..64

2.3.1 Historical and Geo-political Significance

2.3.2 The 1950 Treaty of Peace and Friendship

2.3.3 Areas of Cooperation: Economy, Water Resources (Hydropower), Defence

(Gorkha Regiment), Connectivity

2.3.4 Contentious Issues:

2.3.4.1 Border Disputes (Kalapani-Lipulekh-Limpiyadhura)

2.3.4.2 Trade and Transit Issues

2.3.4.3 Impact of Nepal's Internal Politics

2.3.4.4 Growing Chinese Influence

2.3.5 People-to-People & Cultural Relations ('Roti-Beti Ka Rishta')

2.4 India-Bhutan Relations …………………………………………….69

2.4.1 Nature of the "Special Relationship"

5 © 2025 ISSF
2.4.2 The 1949 and 2007 Friendship Treaties

2.4.3 Cooperation: Hydropower, Security, Economic Aid

2.4.4 Strategic Importance: The Doklam Issue and Bhutan's Security

2.4.5 Bhutan's Foreign Policy Diversification and its implications for India

2.5 India-Bangladesh Relations ……………………………………….73

2.5.1 Historical Context: 1971 Liberation War

2.5.2 Areas of Cooperation:

2.5.2.1 Security & Counter-Terrorism

2.5.2.2 Economic & Trade (CEPA negotiations)

2.5.2.3 Connectivity: Land, Water, Rail, Air

2.5.2.4 Energy Sector Cooperation

2.5.3 Contentious Issues:

2.5.3.1 Teesta Water Sharing

2.5.3.2 Illegal Immigration & NRC

2.5.3.3 Border Management and Killings

2.5.3.4 Rohingya Refugee Crisis

2.5.4 Resolution of Land and Maritime Boundaries

2.5.5 Role of China in Bangladesh

2.6 India-Sri Lanka Relations …………………………………………78

2.6.1 Historical and Cultural Ties

2.6.2 India's Role in the Ethnic Conflict (IPKF) and Post-Conflict Reconstruction

2.6.3 Contentious Issues:

2.6.3.1 Fishermen Issue in the Palk Strait

2.6.3.2 Implementation of the 13th Amendment

2.6.3.3 China's Strategic Presence (Hambantota, Colombo Port City)

6 © 2025 ISSF
2.6.3.4 Economic Relations and India's role in Sri Lanka's economic crisis

2.6.3.5 Maritime Security Cooperation (Colombo Security Conclave)

2.7 India-Maldives Relations ……………………………………………83

2.7.1 Strategic Importance in the Indian Ocean

2.7.2 India's Role as a Net Security Provider ('Operation Cactus')

2.7.3 Impact of Domestic Politics ('India Out' Campaign)

2.7.4 Development Cooperation vs. Chinese Influence

2.7.5 Security and Defence Cooperation

2.8 India-Myanmar Relations………………………………………….. 87

2.8.1 Gateway to Southeast Asia ('Act East' Policy)

2.8.2 Areas of Cooperation: Connectivity (Kaladan, Trilateral Highway), Security

(Counter-insurgency), Trade

2.8.3 Challenges:

2.8.3.1 Rohingya Refugee Crisis

2.8.3.2 Military Coup (2021) and India's Balancing Act

2.8.3.3 Border Stability and Transnational Crime

2.9 India-Afghanistan Relations…..………………………………...…..91

2.9.1 Historical Relations and Soft Power

2.9.2 India's Development and Reconstruction Role (Pre-2021)

2.9.3 The Post-Taliban Takeover (2021) Scenario

2.9.3.1 India's Current Policy and Engagement

2.9.3.2 Security Concerns for India

2.9.3.3 Humanitarian Assistance

7 © 2025 ISSF
Part C: Bilateral, Regional and Global Groupings & Agreements
3.0 India's Bilateral Strategic Partnerships ……………………………..95
3.1 India-USA

3.2 India-Russia

3.3 India-Japan

3.4 India-France

3.5 India-UK

3.6 India-Australia

3.7 India-Israel

3.8 India-Germany

3.9 India-Saudi Arabia & India-UAE

3.10 India-Vietnam & India-Indonesia

3.1 Regional Groupings ………………………………………………….135

3.1.1 SAARC (South Asian Association for Regional Cooperation)

3.1.2 BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic
Cooperation)

3.1.3 SCO (Shanghai Cooperation Organisation)

3.1.4 ASEAN (Association of Southeast Asian Nations) - India's relationship

3.1.5 IORA (Indian Ocean Rim Association)

3.1.6 The QUAD (Quadrilateral Security Dialogue)

3.1.7 I2U2 (India, Israel, UAE, USA)

3.1.8 Colombo Security Conclave

3.2 Global Groupings …………………………………………………….160

3.2.1 BRICS (Brazil, Russia, India, China, South Africa & new members)

3.2.2 G20 (Group of Twenty) - India's Presidency and its outcomes

3.2.3 G7 (Group of Seven) - India's engagement

8 © 2025 ISSF
3.2.4 Commonwealth of Nations

3.2.5 Non-Aligned Movement (NAM) - Contemporary Relevance

3.3 Major Agreements Involving India or Affecting its Interests ………..179

3.3.1 Key Economic Agreements:

3.3.1.1 India-ASEAN FTA, India-South Korea CEPA, India-Japan CEPA,

India-Australia ECTA, India-UAE CEPA

3.3.1.2 SAFTA (South Asian Free Trade Area)

3.3.1.3 RCEP (Regional Comprehensive Economic Partnership) - Why India did not
join

3.3.2 Key Defence and Security Agreements:

3.3.2.1 Foundational Agreements with the USA (LEMOA, COMCASA, BECA,
GSOMIA)

3.3.2.2 India-US Civil Nuclear Deal

3.3.3 Global Pacts and Conventions:

3.3.3.1 Paris Agreement on Climate Change

3.3.3.2 Sustainable Development Goals (SDGs)

3.3.3.3 Conventions on Terrorism, Maritime Law (UNCLOS), etc.

Part D: Global Issues and India's Interests

4.0 Effect of Policies and Politics of Developed & Developing Countries..208
4.1 USA: Impact of its Trade (GSP), Immigration (H1B), Foreign (Indo-Pacific,
Russia policy) and Domestic policies on India.

4.2 China: Impact of its Economic (BRI, predatory economics), Military

(modernization), and Diplomatic policies on India.

4.3 Russia: Impact of Russia-Ukraine conflict on India (defence, oil, diplomacy).

Russia's pivot to China.

4.4 EU/UK: Impact of Brexit, EU's CBAM, Trade policies, and tech regulations on
India.

9 © 2025 ISSF
4.5 Geopolitical Developments: Russia-Ukraine War, US-China Rivalry, Situation in
West Asia - Impact on India's interests.

4.1 Indian Diaspora ……………………………………………………..226

4.1.1 Significance of the Diaspora

4.1.2 Contribution: Economic (Remittances, Investments), Political (Lobbying), Soft

Power (Culture, Tech)

4.1.3 Challenges faced by the Diaspora: Racial discrimination, labour issues (Gulf),
integration issues.

4.1.4 Government of India's Policies: OCI Scheme, Pravasi Bharatiya Divas, Know
India Programme, Community Welfare Funds, MADAD Portal.

Part E: Important International Institutions

5.1 United Nations System ………………………………………………238
5.1.1 UN General Assembly (UNGA)

5.1.2 UN Security Council (UNSC) - and the demand for its reform

5.1.3 UN Human Rights Council (UNHRC)

5.1.4 International Court of Justice (ICJ)

5.1.5 UN Peacekeeping Missions and India's Role

5.2 Global Financial Institutions ………………………………………...257

5.2.1 The World Bank Group (IBRD, IDA, IFC)

5.2.2 International Monetary Fund (IMF) - Quota reforms

5.2.3 World Trade Organization (WTO) - Appellate Body crisis, Doha Round,
Fisheries subsidies

5.2.4 New Development Bank (NDB - BRICS Bank)

5.2.5 Asian Infrastructure Investment Bank (AIIB)

5.3 Other Important Agencies and Fora …………………………………277

5.3.1 World Health Organization (WHO)

10 © 2025 ISSF
5.3.2 UNESCO

5.3.3 International Labour Organization (ILO)

5.3.4 Food and Agriculture Organization (FAO)

5.3.5 International Atomic Energy Agency (IAEA)

5.3.6 Financial Action Task Force (FATF)

11 © 2025 ISSF
Part A: India and its International Relations - The Fundamentals
1.0 Introduction to India's Foreign Policy

India's foreign policy is a reflection of its national identity, historical experiences, and
geopolitical realities. It is a dynamic framework that has evolved over the decades, yet
it remains anchored in a set of core principles aimed at securing India's national
interests, promoting global peace, and establishing an equitable world order.

The journey of India's engagement with the world began with a distinct vision shaped
by its first Prime Minister, Jawaharlal Nehru, whose ideals laid the foundational
pillars of the country's foreign policy for decades to come.

1.1 Evolution of India's Foreign Policy since Independence

The evolution of India's foreign policy can be broadly categorized into distinct phases,
each responding to the changing global and domestic environment. The first and most
formative of these was the era under the leadership of Jawaharlal Nehru.

1.1.1 Phase I: The Nehruvian Era (1947-1964) - Non-Alignment, Panchsheel

Historical Context:
Upon gaining independence in 1947, India was born into a world deeply fractured by
the Cold War, a bipolar ideological and military confrontation between the United
States-led Western bloc and the Soviet Union-led Eastern bloc.

As a newly independent, economically developing nation grappling with the immense

challenges of post-partition nation-building, India had to carve out its own path on the
world stage.

12 © 2025 ISSF
Core Principles of Nehru's Foreign Policy:
Jawaharlal Nehru, as India's first Prime Minister and Foreign Minister, was the chief
architect of its foreign policy. His approach was deeply influenced by the ethos of
India's freedom struggle-non-violence, anti-colonialism, and a commitment to
internationalism.

The key tenets included:

● Anti-Colonialism and Anti-Imperialism: Actively supporting the
decolonization movements in Asia and Africa.

● Anti-Racism: A strong stance against racial discrimination, particularly

apartheid in South Africa.

● Internationalism and a Faith in the UN: A firm belief in resolving disputes

through international cooperation and strengthening the United Nations.

● Afro-Asian Solidarity: A focus on building a collective voice for the newly

independent nations of Asia and Africa.

These principles found their most concrete expression in two cornerstone policies:
Non-Alignment and Panchsheel.

A. The Policy of Non-Alignment:

Concept:
Non-Alignment was the central pillar of India's foreign policy during the Cold War. It
was a policy of strategic autonomy, refusing to formally align with or join either of the
two military blocs (NATO and the Warsaw Pact).

It was not, as often misunderstood, a policy of neutrality, isolationism, or passivity.

India reserved the right to have an independent opinion on international issues and to
act in its own national interest.

13 © 2025 ISSF
Objectives:
● Preserving National Sovereignty: By avoiding military alliances, India
sought to protect its hard-won independence and make foreign policy decisions
on its own terms.

● Focus on Domestic Development: Nehru believed that aligning with a

superpower bloc would entangle India in military conflicts and divert precious
resources away from the urgent tasks of economic development and poverty
alleviation.

● Promoting World Peace: By creating a "third area of peace," Nehru hoped to

reduce Cold War tensions and act as a bridge between the two blocs, thereby
preventing the outbreak of another world war.

● Global Leadership: Non-Alignment provided a platform for India to assume a

leadership role among the newly independent nations of Asia and Africa,
leading to the formation of the Non-Aligned Movement (NAM) in 1961, with
Nehru, Yugoslavia's Josip Broz Tito, and Egypt's Gamal Abdel Nasser as its
principal architects.

B. Panchsheel - The Five Principles of Peaceful Coexistence:

Concept:
Panchsheel was a set of five principles intended to govern relations between states.

These principles were formally articulated in the preamble of the Sino-Indian

Agreement on Trade and Intercourse between Tibet Region of China and India, signed
on April 29, 1954.

The Five Principles:

1. Mutual respect for each other's territorial integrity and sovereignty.

2. Mutual non-aggression.

3. Mutual non-interference in each other's internal affairs.

4. Equality and mutual benefit.

5. Peaceful co-existence.

14 © 2025 ISSF
Significance:
Panchsheel was presented by Nehru as a blueprint for a new, peaceful international
order, an alternative to the power politics of the Cold War. These principles were later
incorporated into the declarations of the Bandung Conference (1955) and the
Non-Aligned Movement.

The agreement with China was seen as a major diplomatic achievement, and the
slogan "Hindi-Chini Bhai-Bhai" (Indians and Chinese are brothers) became popular.

Successes and Failures of the Nehruvian Era:

Successes:
● Enhanced International Stature: Non-Alignment gave India a unique and
respected voice in global affairs, allowing it to play a significant role in
international diplomacy (e.g., in the Korean War negotiations). 20

● Leadership of the Third World: India became a leading voice for the
decolonized world, championing their collective interests. 21

● Preservation of Autonomy: India successfully avoided being drawn into

direct military confrontations between the superpowers.

Failures:
● The 1962 Sino-Indian War: The biggest setback to Nehru's foreign policy
was the war with China in 1962. China's aggression was a direct violation of
the Panchsheel principles and shattered the idealism that had underpinned
India's policy towards its northern neighbor.22 The conflict exposed India's
military unpreparedness and was a major blow to its international prestige. 23

● Idealism vs. Realism: Critics argued that Nehru's foreign policy was overly
idealistic and failed to adequately account for the hard realities of power
politics, particularly the security threats posed by China and Pakistan.

● Economic Consequences: While Non-Alignment had its political merits, some

argue that by not fully aligning with the West, India may have missed out on
greater economic aid and investment during a critical period of its
development.

In conclusion, the Nehruvian era laid a strong, principled foundation for India's
foreign policy. While the idealism of this period was severely tested by the 1962 war,
the core tenets of strategic autonomy and a commitment to a just world order continue
to resonate in India's approach to international relations today.

15 © 2025 ISSF
1.1.2 Phase II: Realism and Adaptation (1964-1991)
Context: The Catalyst for Change
The period from 1964 to 1991 marked a significant departure from the idealistic
foreign policy of the Nehruvian era. The traumatic defeat in the 1962 Sino-Indian War
served as a profound reality check, exposing the limits of idealism and shattering the
romanticism of Panchsheel.

This humbling experience forced a fundamental reassessment of India's security

environment and national interests.

Consequently, Indian foreign policy began to pivot towards a more pragmatic,

security-conscious, and realist approach, focusing on military modernization and
strategic calculations.

This phase, spanning the tenures of Prime Ministers Lal Bahadur Shastri, Indira
Gandhi, and Rajiv Gandhi, was characterized by adaptation to harsh geopolitical
realities.

Key Developments and Policy Shifts:

A. Lal Bahadur Shastri's Premiership (1964-1966): Assertive Realism

● Shift in Focus: Shastri's brief tenure saw a greater emphasis on national

security and a more assertive response to external threats.

● 1965 Indo-Pak War: When Pakistan launched "Operation Gibraltar" to

infiltrate Jammu and Kashmir, India responded with a full-scale military
offensive. The war ended in a stalemate, but India’s robust response
demonstrated a departure from the perceived passivity of the past.

● Tashkent Agreement (1966): The Soviet-brokered peace agreement signed in

Tashkent highlighted the growing influence of the USSR in the region and
India's increasing reliance on it for diplomatic and military support.

16 © 2025 ISSF
B. The Indira Gandhi Era (1966-1977 & 1980-1984): Pragmatism and
Power Politics
Indira Gandhi’s long tenure saw the most definitive consolidation of a realist foreign
policy.

Her approach was marked by a sharp focus on power politics and the determined
pursuit of India's national interests.

● The Indo-Soviet Treaty of Peace, Friendship and Cooperation (1971): This

was a landmark event and a significant adaptation of the Non-Alignment
policy. Faced with a growing nexus between the US, Pakistan, and China ahead
of the impending crisis in East Pakistan, India signed the 20-year treaty with
the Soviet Union.

While not a formal military alliance, it contained security clauses that

effectively deterred Chinese or American intervention during the 1971 war.
This was a classic example of pragmatic alignment to secure national interests.

● The 1971 Bangladesh Liberation War: India's decisive military intervention

in East Pakistan was a resounding success. It led to the creation of Bangladesh,
dismembered Pakistan, and fundamentally altered the geopolitical map of
South Asia. This victory established India as the undisputed regional power.

● The Simla Agreement (1972): Following the 1971 war, Prime Minister
Gandhi and Pakistan's Zulfikar Ali Bhutto signed the Simla Agreement. A key
outcome was the commitment to resolve all disputes, including the Kashmir
issue, through peaceful bilateral negotiations, thereby limiting the scope for
third-party mediation.

● Pokhran-I (1974): The Peaceful Nuclear Explosion: India conducted its first
nuclear test, codenamed "Smiling Buddha," signaling its nuclear weapons
capability. While termed a "peaceful nuclear explosion," the test was a direct

17 © 2025 ISSF
 response to the new security environment, particularly the nuclear threat from
China.

It led to the formation of the Nuclear Suppliers Group (NSG) and resulted in
international sanctions against India, but it firmly established India's strategic
autonomy.

● The "Indira Doctrine": This doctrine, though unofficially articulated,

reflected India's assertion of its regional dominance. It stated that India would
not tolerate external intervention in South Asia that was detrimental to its
security interests, and it expected its neighbors to respect these concerns.

C. The Rajiv Gandhi Era (1984-1989): A Mixed Bag of Outreach and

Overreach
Rajiv Gandhi's premiership saw attempts to adapt to a changing world, with a mix of
successes and significant foreign policy challenges.

● Improving Relations with Superpowers: He sought to improve ties with the

United States, which had been strained, and initiated a historic visit to China in
1988, the first by an Indian Prime Minister in 34 years, beginning a thaw in
Sino-Indian relations.

● Championing Disarmament: He put forward a comprehensive "Action Plan

for a Nuclear-Weapons-Free and Non-Violent World Order" at the UN in 1988.

● Formation of SAARC: India played a key role in the establishment of the

South Asian Association for Regional Cooperation (SAARC) in 1985.

● Intervention in Sri Lanka (1987): The deployment of the Indian Peace

Keeping Force (IPKF) to Sri Lanka to enforce the Indo-Sri Lanka Accord
proved to be a costly and controversial misadventure.

The IPKF became embroiled in a conflict with the LTTE, leading to significant
casualties and a major setback for Indian diplomacy and military prestige.

Conclusion of the Era: The Collapse of the Soviet Union

The era of realism and adaptation came to an abrupt end with the collapse of the
Soviet Union in 1991. The disintegration of India's primary strategic partner and key
defense supplier created a massive strategic vacuum and an economic crisis.

This external shock forced India to fundamentally re-evaluate its foreign policy and
economic model, ushering in the next phase of post-Cold War adjustments and
economic liberalization.

18 © 2025 ISSF
1.1.3 Phase III: Post-Cold War Era & Economic Liberalization
(1991-2014) - Look East Policy, Strategic Partnerships
Context: The Twin Shocks of 1991
The year 1991 was a watershed moment for India, marked by two profound crises that
fundamentally reshaped its foreign policy.

1. The Collapse of the Soviet Union: The disintegration of the USSR, India's
time-tested strategic partner and primary defense supplier, created a massive
strategic vacuum and dismantled the very architecture of the bipolar world
upon which India's Non-Alignment policy was premised.

2. The Balance of Payments Crisis: Simultaneously, India faced a severe

economic crisis, with its foreign exchange reserves dwindling to a level
sufficient for only a few weeks of imports.1 This forced a radical shift away
from a state-controlled economy towards economic liberalization.

These twin shocks rendered the old foreign policy framework obsolete and compelled
India to adopt a new, pragmatic, and multi-directional approach focused on economic
growth and building new partnerships.

Key Features and Policy Initiatives:

A. The Primacy of Economic Diplomacy
The economic liberalization of 1991 integrated India's economy with the rest of the
world. Consequently, foreign policy became inextricably linked to economic policy.

The primary goal shifted to attracting foreign investment, securing access to

technology, and promoting trade. Indian diplomacy was reoriented to serve these
economic objectives, marking a departure from the earlier political-ideological focus.

B. The 'Look East' Policy: A Strategic Pivot to Southeast Asia

Initiated in 1992 under Prime Minister P.V. Narasimha Rao, the 'Look East' Policy was
a strategic pivot towards the dynamic economies of Southeast Asia.

● Objectives: The policy had both economic and strategic goals. Economically,
it aimed to integrate the Indian economy with the prosperous ASEAN
(Association of Southeast Asian Nations) region. Strategically, it sought to
build new partnerships in India's extended neighborhood to counterbalance
China's growing influence.

19 © 2025 ISSF
 ● Evolution: The policy evolved in phases:

○ India started as a Sectoral Partner of ASEAN in 1992.

○ It became a full Dialogue Partner in 1996.

○ This culminated in the establishment of the annual ASEAN-India

Summit in 2002.

● Success: The 'Look East' Policy was highly successful in deepening political
engagement, boosting trade and investment, and establishing India as a key
player in the East Asian regional architecture.

C. From Non-Alignment to Multi-Alignment: The Era of Strategic

Partnerships
With the end of the Cold War, the concept of aligning with a single bloc became
irrelevant.

India transitioned from its reliance on the Soviet Union to a more flexible foreign
policy of "multi-alignment," building issue-based coalitions and a network of
"strategic partnerships" with multiple major powers.

This allowed India to maintain its strategic autonomy while engaging with different
countries on areas of converging interests.

Key Strategic Partnerships Forged:

● India-US Relations: From Estranged Democracies to Strategic Partners:
This was the most significant transformation of the era.

○ Relations began to thaw in the 1990s, but the 1998 nuclear tests led to
US-led sanctions.

○ However, intensive diplomatic engagement (notably the Jaswant

Singh-Strobe Talbott dialogues) paved the way for a major
rapprochement.

○ The relationship culminated in the signing of the landmark Indo-US

Civil Nuclear Deal in 2008. This agreement was a major diplomatic
victory, as it effectively ended India's nuclear isolation and granted it
de-facto acceptance as a responsible nuclear power without signing the
Non-Proliferation Treaty (NPT).

20 © 2025 ISSF
 ● India-Russia Relations: A Recalibrated Partnership:
○ Despite the Soviet collapse, India skillfully managed to preserve its core
relationship with Russia.

○ The partnership was recalibrated and institutionalized as a "Special and

Privileged Strategic Partnership," with defense, space, and nuclear
energy cooperation remaining its key pillars.

● India-Israel Relations: An Open Partnership:

○ In a major pragmatic shift, India established full diplomatic relations
with Israel in 1992.

○ The relationship grew rapidly, particularly in the critical areas of defense

technology, intelligence sharing, and agriculture, becoming one of
India's most important strategic partnerships.

D. Pokhran-II (1998) and a New Nuclear Doctrine

In May 1998, the government led by Prime Minister Atal Bihari Vajpayee conducted
five nuclear tests, codenamed "Operation Shakti," declaring India a full-fledged
nuclear weapons state.

● Rationale: The decision was driven by a deteriorating security environment,

including the nuclear threat from China and the clandestine nuclear nexus
between China and Pakistan.

● Aftermath: The tests were met with international condemnation and sanctions.
However, India adeptly managed the diplomatic fallout by:

○ Unilaterally declaring a moratorium on further testing.

○ Committing to a "No First Use" (NFU) nuclear doctrine and a policy of

credible minimum deterrence.

○ Engaging in sustained dialogue with the US and other major powers,

which ultimately led to the lifting of sanctions and the normalization of
India's nuclear status.

Conclusion of the Era:

This phase, from 1991 to 2014, was a period of profound transformation. India
successfully navigated the turbulent post-Cold War world by shedding its old

21 © 2025 ISSF
inhibitions, embracing economic liberalization, and forging a network of strategic
partnerships.

It moved from being a relatively insular economy to a more open and globally
integrated one.

The successful management of the post-Pokhran-II fallout and the signing of the
Indo-US nuclear deal were testaments to India's growing diplomatic skill and its rising
stature on the world stage.

This era laid the groundwork for the more assertive and ambitious foreign policy that
would follow.

22 © 2025 ISSF
1.1.4 Phase IV: Proactive & Assertive Foreign Policy
(2014-Present) - Act East, Neighbourhood First, SAGAR
Context: A New Era of Indian Diplomacy

The period from 2014 onwards, under the leadership of Prime Minister Narendra
Modi, marks a distinct phase in India's foreign policy.

It is characterized by a shift from a cautious, non-aligned posture to a more confident,

proactive, and assertive engagement with the world.

This approach, often termed the "Modi Doctrine," seeks to leverage India's growing
economic and military capabilities to transition from being a "balancing power" to a
"leading power" that actively shapes global outcomes.

This phase is defined by energetic personal diplomacy, a clear articulation of national

interests, and the launch of several key foreign policy doctrines.

Key Doctrines and Initiatives:

A. The 'Neighbourhood First' Policy
This policy signifies the highest priority given to relations with India's immediate
neighbors in South Asia. It is a holistic approach aimed at building a peaceful, secure,
and prosperous periphery, which is considered essential for India's own development.

● Core Principles: The policy is based on the principles of consultation,

non-reciprocity, and outcome-oriented cooperation. India has positioned itself
as a generous partner, ready to provide assistance based on the needs of its
neighbors.

23 © 2025 ISSF
 ● Successes:

○ Resolution of Border Issues: The historic Land Boundary Agreement

with Bangladesh (2015) resolved a long-pending and complex issue,
transforming the bilateral relationship.

○ Humanitarian Assistance: India has consistently acted as a first

responder during crises, providing swift assistance during the 2015
Nepal earthquake (Operation Maitri) and offering substantial
economic support to Sri Lanka during its 2022 economic crisis.

● Challenges: Despite the intent, the policy has faced significant challenges,
including strained relations with Pakistan over the issue of cross-border
terrorism, periodic tensions with Nepal over constitutional and border issues,
and navigating the recent anti-India political stance of the government in the
Maldives. The overarching challenge remains countering China's growing
economic and strategic influence in the region.

B. The 'Act East' Policy

This policy, announced in 2014, is a more action-oriented and strategic evolution of

the 'Look East' Policy. It expands the scope of engagement beyond economic ties to
include a robust security and strategic dimension.

24 © 2025 ISSF
 ● Objectives: While economic integration with ASEAN remains a core goal, the
'Act East' Policy places a greater emphasis on:

1. Security Cooperation: Deepening defense partnerships with key

Southeast Asian nations like Vietnam and the Philippines (e.g., the sale
of BrahMos missiles) to address shared security concerns in the
maritime domain.

2. Connectivity: Focusing on implementing connectivity projects to link

India's underdeveloped Northeast region with the economies of
Southeast Asia via Myanmar and Thailand.

3. Broader Scope: Expanding engagement beyond ASEAN to include key

powers in East Asia (Japan, South Korea) and the Pacific.

C. SAGAR (Security and Growth for All in the Region)

Articulated in 2015, the SAGAR doctrine is India's vision for the Indian Ocean
Region (IOR). It positions India as a "net security provider," ready to shoulder the
responsibility for maintaining peace and stability in its maritime neighborhood.

● Key Components:

○ Maritime Security: Enhancing maritime domain awareness, conducting

joint patrols, and building the capacity of littoral states to counter threats
like piracy, terrorism, and trafficking.

○ Humanitarian Assistance and Disaster Relief (HADR): Leveraging

the Indian Navy's capabilities to be the first responder in regional crises,
as demonstrated during numerous cyclones, tsunamis, and the "Mission
Sagar" initiatives during the COVID-19 pandemic to deliver food and
medical aid.

25 © 2025 ISSF
 ○ Economic Integration: Promoting a blue economy and sustainable
development of marine resources.

Major Strategic Developments of the Era:

● Assertive Stance on National Security and Terrorism: This phase has seen a
more muscular response to security threats, including the 2016 surgical strikes
and the 2019 Balakot airstrikes in response to terrorist attacks.

● Navigating the China Challenge: The relationship with China has undergone
a significant shift. The Doklam standoff (2017) and the Galwan Valley
clashes (2020) led to the breakdown of the previous consensus. India's current
policy is firm, maintaining that the restoration of peace and tranquility on the
border is a prerequisite for the normalization of bilateral relations.

● Embracing "Multi-Alignment": India has adeptly managed its relationships

with rival power blocs, demonstrating its commitment to strategic autonomy. It
has simultaneously deepened its engagement with the West while remaining a
key member of non-Western groupings.

○ The Quad: The Quadrilateral Security Dialogue (India, US, Japan,

Australia) has been elevated to a leaders' level summit and has become a
central pillar of India's Indo-Pacific strategy.

○ BRICS and SCO: India continues to play an active role in the

expanded BRICS and the Shanghai Cooperation Organisation (SCO),
using these platforms to advance its interests.

● Championing the "Global South": India has emerged as a leading voice for
the developing world. The successful hosting of the G20 Summit in 2023 and
the landmark achievement of securing permanent membership for the
African Union in the G20 are testaments to India's growing influence and its
commitment to a more inclusive global governance structure.

Conclusion:
The current phase of India's foreign policy is defined by confidence, pragmatism, and
a clear-eyed pursuit of national interests. By shedding its historical reluctance, India is
actively seeking to transition from being a rule-taker to a rule-shaper on the global
stage.

Through doctrines like 'Neighbourhood First,' 'Act East,' and SAGAR, and its adept
practice of "multi-alignment," India is navigating a complex and turbulent world with
the ambition of securing its place as a leading global power.

26 © 2025 ISSF
1.2 Principles and Objectives of Indian Foreign Policy
Introduction
The foreign policy of any nation is a dynamic framework designed to protect and
promote its national interests within the international system.

India's foreign policy is a unique blend of timeless principles rooted in its

civilizational ethos and pragmatic objectives shaped by its geopolitical and economic
environment.

While its strategies and priorities have evolved, the foundational principles continue
to provide a moral and philosophical compass, guiding India's ambition to rise as a
leading global power that is both prosperous and secure.

Core Principles of Indian Foreign Policy

These are the enduring tenets that have historically shaped India's engagement with
the world.

1. Panchsheel: The Five Principles of Peaceful Coexistence

First formally enunciated in the 1954 Sino-Indian Agreement, Panchsheel remains a
foundational element of India's diplomatic discourse.

These five principles are:

● Mutual respect for each other's territorial integrity and sovereignty.

● Mutual non-aggression.

● Mutual non-interference in each other's internal affairs.

● Equality and mutual benefit.

● Peaceful co-existence.

While the 1962 war with China was a major setback to the idealism of Panchsheel,
these principles continue to be the basis on which India seeks to conduct its bilateral
relations.

2. From Non-Alignment to Strategic Autonomy and Multi-Alignment

● Non-Alignment: During the Cold War, Non-Alignment was the cornerstone of
India's foreign policy. It was a policy of maintaining national independence and

27 © 2025 ISSF
 freedom of action by not joining either of the two military blocs (US-led NATO
and Soviet-led Warsaw Pact).

● Strategic Autonomy: In the post-Cold War era, Non-Alignment has evolved

into the more contemporary and pragmatic principle of Strategic Autonomy.

This means India reserves the right to make its own foreign policy decisions
based on its national interests, without being bound by the dictates of any
single country or bloc.

● Multi-Alignment: As a practical application of strategic autonomy, India now

actively practices "multi-alignment." It engages with multiple, often
competing, major powers and groupings simultaneously.

For instance, India is a key member of the Quad (with the US, Japan,
Australia) while also being an active member of the BRICS and the Shanghai
Cooperation Organisation (SCO) (with Russia and China). This allows India
to build issue-based coalitions to advance its interests across different forums.

3. "Vasudhaiva Kutumbakam" and "Vishwa Mitra"

These concepts, deeply rooted in Indian philosophy, have been actively promoted in
recent years to define India's worldview.

● Vasudhaiva Kutumbakam ("The World is One Family"): This was the

official theme of India's successful G20 Presidency in 2023. It projects India's
vision of a more inclusive, harmonious, and human-centric global order where
nations cooperate to address collective challenges.

● Vishwa Mitra ("A Friend to the World"): This concept frames India's
international role as a constructive and reliable partner. It signifies an approach
where India leverages its capabilities not just for its own benefit, but for the
greater global good, acting as a first responder in crises and a voice for the
marginalized.

4. Commitment to a Rules-Based Multilateral Order

India has consistently advocated for a multipolar world order based on international
law, the principles of the UN Charter, and respect for the sovereignty and territorial
integrity of all nations. It seeks to reform, rather than reject, global institutions like the
UN, WTO, and WHO to make them more representative and effective.

28 © 2025 ISSF
Primary Objectives of Indian Foreign Policy
These are the concrete national interests that India's diplomatic efforts aim to achieve.

1. Protecting National Security

This is the foremost objective of any nation's foreign policy. For India, it includes:

● Preserving Sovereignty and Territorial Integrity: Safeguarding India's

borders from external aggression and ensuring its integrity is non-negotiable.

● Countering Terrorism: Building international consensus and cooperation to

combat cross-border terrorism in all its forms and manifestations.

● Ensuring a Secure Periphery: The "Neighbourhood First" policy aims to

create a peaceful, stable, and prosperous neighborhood, which is seen as
essential for India's own security.

● Maritime Security: The SAGAR (Security and Growth for All in the
Region) doctrine outlines India's vision to be a net security provider in the
Indian Ocean Region, ensuring secure sea lanes of communication.

2. Driving Economic Prosperity

Foreign policy is seen as a critical enabler of India's domestic transformation and
economic growth.

The key objectives are:

● Attracting Trade, Technology, and Investment: Creating a favorable external

environment to attract foreign capital and technology needed for India's
development goals, such as "Make in India."

● Ensuring Energy and Resource Security: Building strong partnerships with

energy-rich nations and diversifying sources to fuel India's growing economy.

● Promoting Connectivity: Developing physical and digital connectivity

projects to enhance trade and integrate India's economy with its neighborhood
and the wider world.

3. Enhancing India's Global Standing and Influence

This objective focuses on securing India's rightful place in global governance and
shaping the international agenda.

29 © 2025 ISSF
● Achieving Permanent Membership in the UN Security Council: This is a
top priority, aimed at ensuring that the UN's most powerful body reflects
21st-century realities.

● Assuming a "Leading Power" Role: Moving beyond its traditional role as a

"balancing power," India now aspires to be a leading power that takes initiative
and offers solutions to global problems.

● Championing the "Global South": India seeks to become the pre-eminent

voice of the developing world, articulating their concerns and aspirations on
global platforms. The inclusion of the African Union as a permanent member
of the G20 during India's presidency is a prime example of this objective in
action.

● Leveraging India's "Calling Cards": Projecting India's unique strengths-its

democratic credentials, digital public infrastructure (DPI), role as the
"pharmacy of the world," and disaster relief capabilities-as contributions to the
global good.

30 © 2025 ISSF
1.3 Key Determinants of India's Foreign Policy
The foreign policy of a nation is not formulated in a vacuum.

It is the product of a complex interplay of various internal and external factors that
define its interests, shape its worldview, and constrain its choices.

For India, these determinants range from its immutable geography to its evolving
economic needs and the vision of its leadership.

1.3.1 Geographical Factors

Geography is a fundamental and enduring determinant of foreign policy. For India, its
unique geostrategic location is a defining feature.

● Size and Location: India's vast size and its strategic location at the head of the
Indian Ocean give it a natural prominence in the regional and global landscape.
It sits at the crossroads of major sea lanes of communication that connect the
economic hubs of Asia with the rest of the world.

● The Himalayan Frontier: The formidable Himalayan mountain range in the

north has historically acted as a natural barrier. However, in modern times, it
has become a live and contested frontier, particularly the long and disputed
land border with China. This has created a permanent security challenge,
necessitating a strong continental defense posture.

31 © 2025 ISSF
 ● Complex Land Neighbourhood: India shares land borders with six countries.
The presence of two nuclear-armed and often hostile neighbors, Pakistan and
China, makes its immediate neighborhood one of the most complex and
challenging in the world. This reality has made regional security a primary
focus of its foreign policy, as reflected in the 'Neighbourhood First' policy.

● Extensive Coastline and the Indian Ocean: With a coastline of over 7,500
kilometers and a large Exclusive Economic Zone (EEZ), India is a major
maritime nation. Its security and prosperity are inextricably linked to the Indian
Ocean.

This has led to the formulation of the SAGAR (Security and Growth for All
in the Region) doctrine, where India envisions itself as a "net security
provider" for the region, combating piracy, ensuring freedom of navigation, and
providing humanitarian assistance.

1.3.2 Economic & Technological Factors

A nation's economic health and technological capabilities are crucial determinants of
its foreign policy's ambition and reach.

● Economic Needs: In the initial decades after independence, India's primary

economic need was development aid and assistance, which influenced its
policy of Non-Alignment to receive support from both blocs. After the 1991
economic crisis and subsequent liberalization, the focus shifted dramatically.
Foreign policy became a tool to attract foreign investment, boost trade, secure
access to technology, and integrate India into the global economy.

● Energy Security: As a rapidly growing economy, India is heavily dependent

on energy imports. The need to secure a stable and diversified supply of oil and
gas is a major driver of its relationships with countries in the Middle East
(GCC), Central Asia, and Africa.

● Technological Prowess: In recent years, India's own technological

achievements have become a key foreign policy asset.

○ Digital Public Infrastructure (DPI): India actively promotes its

successful DPI models, like the Unified Payments Interface (UPI) and
Aadhaar, as a form of digital development cooperation with other
countries in the Global South.

32 © 2025 ISSF
 ○ Space Technology: The success of the Indian Space Research
Organisation (ISRO), including its lunar and Mars missions, is used as a
tool for "space diplomacy," offering satellite launch services and data
sharing with other nations.

○ Pharmaceuticals: India's capacity as the "pharmacy of the world"

allows it to use healthcare and vaccine supply as a major component of
its soft power and development partnerships.

1.3.3 Historical and Cultural Factors

The character of India's foreign policy is deeply imbued with its historical experiences
and rich civilizational heritage.

● Anti-Colonial Legacy: The experience of the long freedom struggle against

British colonialism is the source of the core principles of anti-imperialism,
anti-racism, and a deep-seated value for sovereignty. This legacy formed the
moral basis for the policy of Non-Alignment and India's consistent support for
decolonization movements across Asia and Africa.

● Civilizational Ethos: Ancient Indian philosophical concepts like 'Vasudhaiva

Kutumbakam' (the world is one family) and the teachings of peace and
non-violence from figures like Buddha and Mahatma Gandhi are often invoked
in India's diplomatic discourse. They are used to project India's soft power and
its vision of being a constructive and benign global power.

● The Indian Diaspora: The presence of a large, successful, and influential

diaspora (over 30 million people) in countries like the United States, the United
Kingdom, Canada, and the GCC nations acts as a "living bridge." This
community plays a significant role in shaping perceptions of India, promoting
economic ties, and influencing the domestic politics of their host countries in
ways that are often favorable to India's interests.

1.3.4 National Security Imperatives

The protection of the nation from external threats is the most fundamental objective
and, therefore, a primary determinant of foreign policy.

● Managing a Hostile Periphery: The unresolved territorial disputes and

state-sponsored cross-border terrorism from Pakistan have been a central

33 © 2025 ISSF
 security preoccupation since 1947, shaping India's defense posture and its
diplomatic efforts to isolate state sponsors of terror.

● The Rise of China: The growing military and economic power of China, its
assertive behavior along the border, and its increasing influence in India's
neighborhood are arguably the most significant national security challenges
today.

● This has driven India's military modernization, its development of border

infrastructure, and its strategic partnerships with like-minded countries,
particularly through the Quad.

● Nuclear Deterrence: India's security environment, with two nuclear-armed

neighbors, compelled it to conduct the nuclear tests in 1998 and declare itself a
nuclear weapons state. Its nuclear policy, based on a doctrine of "No First
Use" (NFU) and "Credible Minimum Deterrence," is a direct response to
these security imperatives.

1.3.5 Domestic Politics and Leadership

Foreign policy is not just a reflection of external factors; it is also shaped by the
domestic political landscape and the vision of national leaders.

● Leadership: The personal vision and worldview of a country's leader can have
a profound impact on foreign policy.

● For example:

○ Jawaharlal Nehru's idealism and internationalism were the driving

forces behind Non-Alignment and Panchsheel.

○ Indira Gandhi's realist approach led to decisive actions like the 1971
Indo-Soviet Treaty and the creation of Bangladesh.

○ Narendra Modi's energetic and personalized diplomacy has been a key

feature of the current proactive and assertive phase of foreign policy.

● Nature of the Political System: India's identity as a stable, secular democracy

influences its foreign policy, making it a "natural partner" for other
democracies.

● Domestic Political Consensus: There is a broad consensus across the political

spectrum on core foreign policy issues, such as maintaining strategic autonomy,

34 © 2025 ISSF
 the need to counter terrorism, and the importance of good relations with major
powers. This provides continuity and stability to India's diplomacy, even when
governments change.

● Public Opinion and Media: In an increasingly connected world, public

opinion and a vibrant, 24/7 media play a growing role in shaping the foreign
policy narrative and putting pressure on the government to act on certain
issues.

35 © 2025 ISSF
1.4 The Foreign Policy Making Establishment in India
The formulation of India's foreign policy is a complex process involving several key
institutions and actors within the executive branch of the government.

While the constitutional framework vests the power to conduct foreign relations with
the executive, the actual process is a dynamic interplay between the Prime Minister's
Office, the Ministry of External Affairs, and the national security apparatus.

Over the years, the decision-making process has become increasingly centralized and
integrated, especially on matters of high strategic importance.

1.4.1 Role of the Prime Minister's Office (PMO)

The Prime Minister's Office (PMO) sits at the apex of the foreign policy making
structure in India. The Prime Minister is the ultimate authority and chief architect of
the country's foreign policy.

● Central Locus of Decision-Making: The PMO acts as the central hub where
all major foreign policy decisions are made or approved. It synthesizes inputs
from various ministries, intelligence agencies, and advisory bodies to provide
the Prime Minister with a holistic view.

● Policy Coordination: The PMO plays a crucial role in coordinating policy

among different ministries that have a foreign policy interface, such as the
Ministry of Defence, the Ministry of Commerce, and the Ministry of Finance,
ensuring a coherent and unified "whole-of-government" approach.

● Driving Key Initiatives: Major foreign policy initiatives and strategic shifts
are typically driven directly by the Prime Minister and their office. The PMO
sets the broad vision and direction for India's engagement with the world.

● Personal Diplomacy: In recent years, the personal diplomacy of the Prime

Minister has become a key feature of India's foreign policy.

High-level summits, direct engagement with world leaders, and personal

rapport are increasingly used as tools to advance India's national interests, with
the PMO being the nerve center for these interactions.

The influence of the PMO tends to be particularly strong under Prime Ministers
who take a keen personal interest in foreign affairs.

36 © 2025 ISSF
 1.4.2 Ministry of External Affairs (MEA)
The Ministry of External Affairs (MEA) is the primary and traditional institution
responsible for the day-to-day conduct and implementation of India's foreign policy.

● Institutional Backbone: The MEA serves as the institutional backbone of

Indian diplomacy. It is staffed by the Indian Foreign Service (IFS), a
specialized cadre of diplomats who represent India abroad and manage its
international relations.

● Key Functions:

1. Representation: Managing India's vast network of embassies, high

commissions, and consulates around the world.

2. Policy Input: Providing the government with analysis, assessments, and

policy recommendations on global events and bilateral relations.

3. Negotiation: Conducting negotiations on treaties, agreements, and other

international instruments.

4. Consular Services: Providing passport, visa, and other consular

services to Indian citizens and foreign nationals.

● Organizational Structure: The MEA is headed by the Minister of External

Affairs, a cabinet-rank minister. The administrative head is the Foreign
Secretary.

● The ministry is organized into various Territorial Divisions (handling relations

with specific countries or regions, e.g., Americas Division, Europe West
Division) and Functional Divisions (handling specific issues, e.g., UN
Political, Disarmament & International Security, Economic Diplomacy).

● Role in the Modern Era: While the PMO and NSA have taken on greater
roles in high-level strategic decision-making, the MEA remains indispensable
for policy implementation, diplomatic communication, institutional memory,
and the legal and procedural aspects of foreign relations.

1.4.3 National Security Council (NSC) & National Security Advisor (NSA)
Established in 1998 after India's second nuclear tests, the National Security Council
(NSC) is the apex advisory body on national security and strategic issues.

37 © 2025 ISSF
Its emergence, and particularly the role of the National Security Advisor (NSA), has
had a profound impact on foreign policy formulation.

● Mandate: The NSC's mandate is to advise the Prime Minister on all matters
relating to internal and external security, including foreign policy, defense, and
strategic interests. It facilitates long-term strategic planning and integrates
inputs from various security and intelligence agencies.

● The Three-Tiered Structure of the NSC System:

○ The Apex Body: Chaired by the Prime Minister, it includes key cabinet
ministers like the Minister of Defence, Minister of Home Affairs,
Minister of External Affairs, and Minister of Finance. The NSA serves
as its secretary.

○ The Strategic Policy Group (SPG): This is the principal forum for
inter-ministerial coordination and the first level of review for security
matters. It is chaired by the Cabinet Secretary and includes the chiefs of
the armed forces, intelligence agency heads, and key secretaries from
relevant ministries.

○ The National Security Advisory Board (NSAB): This body comprises

a group of eminent experts from outside the government-academics,
scientists, retired diplomats, and military officers. It serves as a think
tank, providing long-term analysis and independent perspectives on
strategic issues.

● The Role of the National Security Advisor (NSA):

○ Principal Advisor: The NSA is the Prime Minister's principal advisor

on national security and foreign policy. The position has become one of
the most powerful and influential in the Indian government.

○ Coordinator and Conductor: The NSA heads the NSC Secretariat and
plays a crucial role in coordinating inputs from intelligence agencies
(like R&AW and IB) and various ministries.

○ Strategic Diplomacy: The NSA often acts as the Prime Minister's

special envoy for sensitive diplomatic negotiations and back-channel
dialogues, particularly with major powers and on critical security issues.
The NSA's direct access to the Prime Minister allows for swift and
high-level decision-making, bypassing traditional bureaucratic channels.

38 © 2025 ISSF
Conclusion: The Interplay of Institutions
In contemporary India, foreign policy making is a collaborative yet hierarchical
process.

The Prime Minister, through the PMO, provides the ultimate vision and political
direction.

The NSA acts as the chief strategist and coordinator on security and strategic matters,
integrating intelligence and diplomatic inputs.

The MEA serves as the essential institutional machinery for implementation,

diplomatic engagement, and providing foundational policy analysis.

This interplay ensures that India's foreign policy is a blend of political leadership,
strategic calculation, and institutional expertise.

39 © 2025 ISSF
 Part B: India and Its Neighborhood
2.0 Core Principles of India's Neighborhood Policy
India's engagement with its neighborhood in South Asia is the most crucial and
complex aspect of its foreign policy. A peaceful, stable, and prosperous neighborhood
is considered a fundamental prerequisite for India's own security and development.

Over the years, India's approach has been guided by a set of core principles aimed at
fostering trust and cooperation.

These principles have been articulated through various policy doctrines, the most
significant of which are the Gujral Doctrine and the 'Neighbourhood First' Policy.

The overarching principles that guide this policy include:

● Non-interference in the internal affairs of other nations.

● Respect for sovereignty and territorial integrity.

● Settlement of disputes through peaceful bilateral negotiations.

● Promoting regional cooperation and connectivity for shared prosperity.

● Asymmetric and non-reciprocal engagement with smaller neighbors,

recognizing India's larger size and economic capacity.

These principles found their most coherent and influential expression in the Gujral
Doctrine.

2.1 Gujral Doctrine

Historical Context:
The Gujral Doctrine was formulated in the mid-1990s by I.K. Gujral, who served as
India's External Affairs Minister and later as Prime Minister.

It was articulated at a time when India was navigating a complex regional

environment and was led by coalition governments.

The doctrine was a policy prescription designed to mend strained relationships and
build trust with India's smaller neighbors by adopting a more magnanimous and
non-reciprocal approach.

40 © 2025 ISSF
The Five Principles of the Gujral Doctrine:

The doctrine is a set of five clear principles that were to guide the conduct of India's
relations with its immediate neighbors:

1. Non-Reciprocity with Smaller Neighbors: With neighbors like Bangladesh,

Bhutan, Maldives, Nepal, and Sri Lanka, India does not ask for reciprocity for
the concessions it makes. India, as the larger and more powerful nation, should
give what it can in good faith and trust.

2. No Use of Territory Against Each Other: No South Asian country should

allow its territory to be used against the interests of another country in the
region.

3. Non-Interference in Internal Affairs: No country should interfere in the

internal affairs of another.

4. Respect for Sovereignty and Territorial Integrity: All South Asian countries
must respect each other’s territorial integrity and sovereignty.

5. Bilateral Dispute Resolution: All disputes should be settled through peaceful

bilateral negotiations.

Significance and Impact:

The Gujral Doctrine marked a significant shift in Indian foreign policy, moving away
from a perception of being a regional hegemon to being a more benevolent and
generous power.

Its core philosophy was that the goodwill generated by a non-reciprocal approach
would ultimately create a more secure and stable neighborhood, which was in India's
long-term interest.

● Key Success: The most celebrated success of the doctrine's application was the
signing of the Ganga Water-Sharing Treaty with Bangladesh in 1996. This
30-year treaty resolved a long-standing and contentious issue by making

41 © 2025 ISSF
 concessions to Bangladesh without insisting on a reciprocal gesture, thereby
significantly improving bilateral relations.

● Building Trust: The doctrine was instrumental in rebuilding trust with several
neighbors, assuring them that India's size and power would not be a threat to
their sovereignty.

Relevance and Limitations in the Current Context:

The spirit of the Gujral Doctrine continues to influence India's foreign policy, and its
principles are clearly visible in the modern-day 'Neighbourhood First' policy.

The idea of asymmetric responsibility and non-reciprocal engagement remains a key

element of India's development partnerships and assistance to its neighbors.

However, the doctrine also has its limitations in the contemporary geopolitical
landscape:

● Applicability: The principle of non-reciprocity was explicitly meant for

smaller neighbors and does not apply to larger neighbors like Pakistan and
China.

● Changing Security Dynamics: The rise of cross-border terrorism and the

increasing strategic footprint of extra-regional powers (like China) in South
Asia have complicated the security environment.

● This has led to a situation where India, while being generous, must also
demand more concrete action from its neighbors on its core security concerns,
thus testing the limits of non-reciprocity.

In conclusion, the Gujral Doctrine remains a landmark in the evolution of India's

neighborhood policy. It provided a moral and strategic framework for building trust
and resolving disputes, and its core philosophy of enlightened self-interest through
generosity continues to be a valuable guide for Indian diplomacy in its immediate
periphery.

42 © 2025 ISSF
2.2 Neighbourhood First Policy
Introduction and Context:
The 'Neighbourhood First' Policy, articulated since 2014, is a cornerstone of the
current Indian government's foreign policy. It represents a renewed and vigorous focus
on building robust, cordial, and synergistic relationships with India's neighbors in
South Asia.

While drawing from the spirit of earlier doctrines like the Gujral Doctrine, this policy
is more proactive and comprehensive, integrating political, economic, security, and
cultural dimensions into a single, cohesive framework.

The core philosophy is that a peaceful, prosperous, and stable periphery is essential
for India to achieve its own domestic development goals and rise as a leading global
power.

Core Components of the Policy:

The 'Neighbourhood First' Policy is not just a statement of intent but is backed by a
multi-pronged approach aimed at fostering mutual growth and trust.

● Enhanced Connectivity: The policy places a major emphasis on building

seamless connectivity to physically and economically integrate the region. This
includes:

○ Transport Connectivity: Developing cross-border road and rail links

(e.g., Akhaura-Agartala rail link with Bangladesh), integrated
check-posts (ICPs), and providing neighbors with access to Indian ports.

○ Energy Connectivity: Creating a regional power grid and building

cross-border petroleum pipelines (e.g., Motihari-Amlekhgunj pipeline
with Nepal).

○ Digital Connectivity: Expanding digital infrastructure and payment

gateways (like UPI) to neighboring countries.

● Economic Cooperation and Development Assistance: India has positioned

itself as a leading development partner for its neighbors, focusing on a model
of cooperation rather than dependence.

○ Generous Aid and Lines of Credit: Providing substantial financial

support for infrastructure and social sector projects based on the needs
articulated by the partner countries.

43 © 2025 ISSF
 ○ Trade Facilitation: Improving trade infrastructure and offering
unilateral concessions to smaller neighbors to help reduce trade deficits.

● Security Cooperation: The policy recognizes that regional security is

indivisible.

○ Counter-Terrorism: Enhancing intelligence sharing and coordinating

efforts to combat cross-border terrorism.

○ Maritime Security: Promoting maritime cooperation in the Indian

Ocean under the SAGAR (Security and Growth for All in the
Region) framework.

○ Capacity Building: Training military and police personnel of

neighboring countries to help them tackle their own security challenges.

● Cultural and People-to-People Ties: The policy leverages India's deep

historical and cultural linkages with its neighbors to build goodwill and
strengthen relationships at the societal level through educational exchanges,
tourism, and shared cultural programs.

Implementation and Successes:

The 'Neighbourhood First' policy has yielded several notable successes that have
enhanced regional stability and cooperation.

● Resolution of the India-Bangladesh Land Boundary (2015): The successful

implementation of the Land Boundary Agreement resolved a decades-old,
complex border issue, marking a high point in bilateral relations and regional
diplomacy.

● Humanitarian Assistance and Disaster Relief (HADR): India has cemented

its role as a first responder in regional crises.

○ Operation Maitri (2015): Swift and massive assistance was provided to

Nepal following the devastating earthquake.

○ Support to Sri Lanka (2022): India provided unprecedented financial

and material aid (over $4 billion) to Sri Lanka during its severe
economic crisis.

○ Vaccine Maitri (2021): During the COVID-19 pandemic, India

prioritized supplying vaccines to its neighbors, reinforcing its credibility
as a reliable partner.

44 © 2025 ISSF
 ● Infrastructure Projects: Several key connectivity projects, such as power
grids with Bhutan and Bangladesh and rail links with Nepal, have been
successfully completed and operationalized.

Challenges and Criticisms:

Despite its positive intent, the 'Neighbourhood First' policy has faced significant
challenges and has not been uniformly successful across the region.

● The China Factor: The most significant challenge is the growing economic
and strategic influence of China in South Asia. China's deep pockets and rapid
project implementation under its Belt and Road Initiative (BRI) have created an
alternative pole of influence, often leading to a strategic competition for
influence in countries like Sri Lanka, Nepal, and the Maldives.

● Relations with Pakistan: The policy has made no headway with Pakistan due
to the intractable issue of cross-border terrorism. Relations remain frozen,
which continues to be a major obstacle to regional cooperation (e.g., the
dysfunctionality of SAARC).

● Political Volatility in Neighboring Countries: Domestic politics in

neighboring countries often lead to shifts in their foreign policy orientation.
Anti-India sentiment can be used as a tool for political mobilization, leading to
diplomatic friction, as has been recently witnessed in the Maldives.

● Implementation Deficits: Critics point out that while the policy's vision is
robust, the implementation of infrastructure projects on the ground can be slow
due to bureaucratic hurdles and capacity constraints.

Conclusion:
The 'Neighbourhood First' Policy is a dynamic and essential framework for managing
India's complex periphery. It represents a clear recognition that India's rise is
contingent on the stability and prosperity of its neighbors.

While the policy has achieved notable successes in building trust and fostering
integration with partners like Bangladesh and Bhutan, it continues to face formidable
challenges from geopolitical competition and internal political dynamics within
neighboring states.

Its ultimate success will depend on India's ability to consistently deliver on its
promises, navigate complex regional politics with diplomatic skill, and offer a
partnership model that is genuinely more attractive and sustainable than that offered
by other regional and extra-regional powers.

45 © 2025 ISSF
2.3 SAGAR (Security and Growth for All in the Region) Doctrine
Introduction and Context:
The SAGAR (Security and Growth for All in the Region) Doctrine is India's
integrated policy and vision for the Indian Ocean Region (IOR).

First articulated by Prime Minister Narendra Modi in 2015 during a visit to Mauritius,
SAGAR is a comprehensive framework that combines India's maritime security
interests with its economic and developmental goals.

It marks a definitive shift in India's approach to the IOR, moving from a purely
defensive posture to that of a proactive and responsible maritime power that seeks to
be a "net security provider" for the entire region.

The doctrine underscores the growing recognition that India's own security and
prosperity are inextricably linked to the peace, stability, and development of the
Indian Ocean.

The Five Core Pillars of SAGAR:

The SAGAR doctrine is built on five key pillars that guide India's maritime
engagement:

1. India's Role as a Net Security Provider: To safeguard India's maritime

territories and interests, and to ensure a secure and stable environment in the
IOR that allows for unhindered trade and commerce for all.

2. Building Maritime Security Cooperation: To deepen security and economic

cooperation with maritime neighbors and island nations in the IOR to enhance
their own capacity to secure their waters.

3. Collective Action for Maritime Issues: To foster a collective and cooperative

approach to addressing shared maritime challenges like piracy, terrorism,
trafficking, and illegal fishing.

4. Sustainable Development: To promote the sustainable and inclusive

development of the marine economy (the "Blue Economy") in the region.

5. An Integrated and Cooperative Framework: To create a more integrated and

cooperative maritime security architecture in the IOR, with India playing a
leading and constructive role.

46 © 2025 ISSF
SAGAR in Action: Implementation and Key Initiatives
The SAGAR doctrine is not just a vision but is actively being implemented through a
wide range of initiatives across the security, economic, and humanitarian domains.

A. Security and Defence Cooperation:

● Anti-Piracy and Maritime Security Operations: The Indian Navy has been
at the forefront of ensuring maritime security. A prominent recent example is
its proactive deployment in the Gulf of Aden and the Arabian Sea to counter
piracy and drone attacks, including high-profile rescue operations of
international merchant vessels and their crews.

● Information Sharing and Maritime Domain Awareness: The Information

Fusion Centre for the Indian Ocean Region (IFC-IOR), located in
Gurugram, is a key initiative. It hosts international liaison officers from partner
countries to facilitate the real-time exchange of maritime information,
enhancing transparency and security across the region.

● Joint Naval Exercises: India regularly conducts large-scale multilateral naval

exercises like MILAN, which brings together navies from across the IOR and
beyond. It also engages in numerous bilateral exercises such as SLINEX (with
Sri Lanka) and SIMBEX (with Singapore) to enhance interoperability.

● Capacity Building of Partner Nations: India actively helps build the

maritime security capacity of its neighbors by providing patrol vessels,
hydrographic survey assistance, coastal surveillance radar systems, and
extensive training to countries like the Maldives, Seychelles, Mauritius, and Sri
Lanka.

B. Humanitarian Assistance and Disaster Relief (HADR):

India has cemented its reputation as a first responder in times of crisis in the IOR, a
core tenet of the SAGAR doctrine.

● Mission Sagar: During the COVID-19 pandemic, the Indian Navy launched
"Mission Sagar," a series of deployments to deliver food, medical supplies, and
vaccines to numerous countries in the IOR, including the Maldives, Mauritius,
Seychelles, Madagascar, and Comoros.

● HADR Operations: India has consistently provided swift assistance during

natural disasters, such as Operation Insaniyat to help Rohingya refugees in
Bangladesh and relief efforts following cyclones in Mozambique and
Madagascar.

47 © 2025 ISSF
C. Economic and Developmental Cooperation:
● Blue Economy Initiatives: India is promoting cooperation in sustainable
fishing, marine resource management, and oceanography to help littoral states
harness the economic potential of their marine resources.

● Connectivity and Infrastructure: India's Sagarmala project, focused on

port-led development along its own coastline, has an external dimension that
complements SAGAR by aiming to enhance connectivity with neighboring
ports.

Strategic Significance and Geopolitical Context:

The SAGAR doctrine is a direct response to the evolving and increasingly contested
geopolitical landscape of the Indian Ocean Region.

● Countering China's Influence: SAGAR is widely seen as India's strategic

counter to China's growing naval presence and its "String of Pearls" strategy,
which involves building strategic and commercial assets in the IOR.

By offering a collaborative, inclusive, and rules-based security architecture,

India presents an alternative to China's more assertive and often unilateral
approach.

● Integration with other Policies: SAGAR is the maritime dimension of the

'Neighbourhood First' policy and a key component of the 'Act East' policy,
as it extends India's maritime engagement to the littoral states of Southeast
Asia.

● Synergy with the Quad: The doctrine aligns perfectly with the Quad's vision
for a "free, open, and inclusive Indo-Pacific." Cooperation on maritime domain
awareness and HADR are key areas of convergence between the SAGAR
doctrine and the Quad's agenda.

Conclusion:

The SAGAR doctrine is a clear and comprehensive articulation of India's vision for its
maritime neighborhood. It marks India's transition from a land-focused power to a
full-fledged maritime power that is ready to shoulder its regional responsibilities.

By skillfully integrating security, economic, and humanitarian dimensions, SAGAR

aims to position India as a consensus-builder and an indispensable anchor of stability
and prosperity in the Indian Ocean Region.

48 © 2025 ISSF
2.4 Connectivity as a Tool: BBIN, IMT Trilateral Highway, Kaladan Project
Introduction: Connectivity as a Foreign Policy Imperative
In contemporary Indian foreign policy, connectivity has evolved from a mere
economic agenda to a powerful strategic tool.

As a central pillar of both the 'Neighbourhood First' and 'Act East' policies, enhancing
physical, economic, and digital linkages is seen as crucial for promoting regional
integration, boosting trade, and fostering stability.

These projects are also a vital component of India's response to China's Belt and Road
Initiative (BRI), offering a more consultative, transparent, and sustainable model of
regional cooperation.

However, the implementation of these ambitious projects is fraught with significant

on-the-ground challenges.

1. The BBIN Motor Vehicles Agreement (MVA)

● Concept and Objectives: The BBIN MVA is a sub-regional transport

agreement signed in 2015 between Bangladesh, Bhutan, India, and Nepal
(BBIN). Its primary objective is to facilitate the seamless cross-border
movement of passenger and cargo vehicles, thereby reducing transport costs,
fostering greater trade, and promoting people-to-people contact among the four
nations.

● Current Status and Challenges: The project has been stalled in its original
four-country format due to Bhutan's non-ratification. The upper house of the
Bhutanese Parliament declined to approve the agreement, citing concerns about

49 © 2025 ISSF
 environmental degradation and the potential for an unsustainable increase in
tourist and cargo traffic in the ecologically sensitive country.

● The Way Forward (The 'BIN' Initiative): Recognizing Bhutan's concerns,

the other three countries – Bangladesh, India, and Nepal (BIN) – have decided
to move forward with the agreement's implementation.

○ Progress: Recent years have seen positive momentum, with several

successful trial runs of cargo vehicles between the three nations.

○ Next Steps: The Standard Operating Procedures (SOPs) for the

movement of vehicles are in the final stages of negotiation among the
BIN countries. The focus is on operationalizing the agreement in the
near future to unlock the sub-region's economic potential.

2. The IMT Trilateral Highway

● Concept and Objectives: The India-Myanmar-Thailand (IMT) Trilateral

Highway is a flagship connectivity project that aims to link India's Northeast
with the economic heart of Southeast Asia.

● The highway, stretching approximately 1,360 kilometers, will connect Moreh

in India to Mae Sot in Thailand, passing through Myanmar.

● It is the most significant land connectivity project under India's 'Act East'
Policy, envisioned to boost trade, tourism, and strategic ties between India and
ASEAN. There are also plans to eventually extend the highway to Laos,
Cambodia, and Vietnam.

● Current Status and Challenges: The project has faced significant delays and
is currently facing a major roadblock.

50 © 2025 ISSF
 ○ Progress: The sections of the highway in India and Thailand are largely
complete.

○ The Myanmar Hurdle: The critical stretch of the highway passing

through Myanmar has seen very slow progress and is now at a near
standstill. The primary challenge is the deteriorating security situation
in Myanmar following the 2021 military coup.

○ Large swathes of the highway's proposed route are now active conflict
zones, with intense fighting between the Myanmar military and various
ethnic armed groups. This has made construction, security for workers,
and future transit viability extremely uncertain.

3. The Kaladan Multi-Modal Transit Transport Project

● Concept and Objectives: The Kaladan Project is a highly strategic initiative
designed to provide an alternative route to India's landlocked Northeast,
thereby reducing the region's dependence on the narrow "Siliguri Corridor" (or
"chicken's neck"). It is a multi-modal project involving sea, river, and road
transport.

● The Route:
○ Sea: From Kolkata port in India to Sittwe port in Myanmar's Rakhine
State (built with Indian assistance).

○ River: A river journey from Sittwe up the Kaladan river to Paletwa in

Myanmar's Chin State.

○ Road: A final road link from Paletwa across the border to Zorinpui in
Mizoram, India.

● Current Status and Challenges: Like the IMT Highway, the Kaladan Project
is severely hampered by the conflict in Myanmar.

51 © 2025 ISSF
 ○ Progress: The Sittwe port is operational, and the riverine component is
largely ready.

○ The Final Mile Problem: The crucial final road segment from Paletwa
to the Indian border is incomplete. This "last-mile" connectivity is the
most critical and also the most challenging part of the project.

○ The Security Quagmire: The project area, particularly in Myanmar's

Rakhine and Chin states, is a hotbed of intense conflict involving the
Myanmar military and the powerful Arakan Army, an ethnic armed
group.

○ The ongoing instability has made construction impossible and has raised
serious questions about the long-term security and viability of the entire
corridor.

Conclusion:
India's connectivity projects in its neighborhood are ambitious and strategically vital.

They hold the promise of transforming the economic landscape of the region and
deepening India's integration with its South and Southeast Asian neighbors.

However, their success is heavily contingent on the political stability and security
situation in partner countries, particularly Myanmar.

The current turmoil in Myanmar has cast a long shadow over both the IMT Highway
and the Kaladan Project, highlighting the immense gap that can exist between grand
strategic vision and complex on-the-ground reality.

52 © 2025 ISSF
 Part B: India and Its Neighborhood
2.1 India-Pakistan Relations

The relationship between India and Pakistan is arguably the most complex and
challenging aspect of India's foreign policy.

Born out of the violent partition of the subcontinent in 1947, the relationship has been
marred by decades of mistrust, four wars, persistent cross-border terrorism, and
conflicting national ideologies, which has severely constrained peace and
development in the South Asian region.

2.1.1 Historical Context: A Legacy of Conflict and Brief Thaws

The history of India-Pakistan relations is a cycle of conflict, brief periods of
rapprochement, and missed opportunities.

● Partition and the First War (1947-48): The partition of British India into
Hindu-majority India and Muslim-majority Pakistan was accompanied by
immense violence and displacement. The first war broke out over the princely
state of Jammu and Kashmir, ending with a UN-brokered ceasefire that
established the Line of Control (LoC), leaving the territory divided.

● 1965 and 1971 Wars: The 1965 war was another indecisive conflict over
Kashmir. The 1971 war, however, was a decisive victory for India. It was
triggered by the political crisis in East Pakistan and resulted in the creation of
the independent nation of Bangladesh, fundamentally altering the region's
geopolitics.

● The Simla Agreement (1972): Signed between Indira Gandhi and Zulfikar Ali
Bhutto after the 1971 war, this agreement was a landmark moment. Its core
principle was the commitment to resolve all disputes, including the Kashmir

53 © 2025 ISSF
 issue, peacefully and through bilateral negotiations, thereby seeking to
exclude third-party intervention.

● The Lahore Declaration (1999): A historic summit between Prime Ministers

Atal Bihari Vajpayee and Nawaz Sharif resulted in the Lahore Declaration,
which articulated a vision for peace, security, and shared prosperity. However,
this promising initiative was swiftly undermined by the Kargil War, initiated
by Pakistan later that year, which severely damaged trust.

2.1.2 Core Contentious Issues

Several deep-seated issues have continued to fuel hostility and prevent normalization
of relations.

2.1.2.1 Jammu & Kashmir Issue

This remains the central and most emotive issue.
● Pakistan's Stance: Pakistan lays claim to the entire territory and has
historically supported separatist movements and terrorism in the region. It
seeks to internationalize the dispute, raising it at various global forums.

● India's Stance: India maintains that the entire state of Jammu and Kashmir is
an integral and inalienable part of the country. Following the abrogation of
Article 370 in 2019, which revoked the special status of J&K, India has firmly
stated that this is an internal matter. The 2023 Supreme Court of India verdict
upholding the abrogation has further solidified this domestic legal position.

54 © 2025 ISSF
2.1.2.2 Cross-Border Terrorism & Terror Infrastructure
For India, this is the core issue that conditions the entire relationship.

● India has consistently accused Pakistan of using terrorism as an instrument of

state policy, providing safe havens, training, and financial support to terrorist
groups that target India.

● Major attacks, including the 2008 Mumbai attacks, the 2016 Pathankot and
Uri attacks, and the 2019 Pulwama attack, have been traced back to
Pakistan-based terror outfits like Lashkar-e-Taiba (LeT) and
Jaish-e-Mohammed (JeM).

● India's stated policy is that "talks and terror cannot go together," making
any meaningful dialogue contingent on credible, verifiable, and irreversible
action by Pakistan against its terror infrastructure.

2.1.2.3 Siachen Glacier Dispute

The Siachen Glacier, located in the Karakoram range, is the world's highest
battlefield. Both countries have maintained a military presence there since 1984.

While a ceasefire has largely held, the dispute over the undemarcated region remains a
symbol of the deep military mistrust.

2.1.2.4 Sir Creek Dispute

This dispute involves the demarcation of a 96-km tidal estuary in the marshlands of
the Rann of Kutch.

The differing interpretations of the maritime boundary have implications for the
demarcation of the Exclusive Economic Zone (EEZ) and access to rich fishing
grounds and potential undersea resources.

55 © 2025 ISSF
2.1.2.5 Indus Waters Treaty: Cooperation and Conflicts
● Cooperation: The 1960 Indus Waters Treaty, brokered by the World Bank, has
survived numerous conflicts and is often cited as a rare example of successful
cooperation. It governs the sharing of waters of the six rivers of the Indus
system.

● Recent Conflicts: In recent years, the treaty has come under strain. Pakistan
has raised objections to India's construction of hydropower projects on the
western rivers (Jhelum and Chenab), permitted by the treaty, and has sought
international arbitration. In response, India has issued a notice to Pakistan for
the modification of the treaty, signaling a more assertive stance on maximizing
its water usage rights under the agreement.

2.1.3 Areas of Cooperation & Confidence Building Measures (CBMs)

Despite the overwhelming focus on conflict, there have been some areas of
cooperation, though they are currently limited and strained.

2.1.3.1 Kartarpur Corridor

Inaugurated in 2019, this visa-free corridor allows Indian Sikh pilgrims to visit the
holy Gurdwara Darbar Sahib in Pakistan. It stands as a rare functioning CBM and a
symbol of people-to-people connection.

2.1.3.2 Trade (Current Status and Potential)

● Current Status: Bilateral trade has been officially suspended by Pakistan
since 2019 following the abrogation of Article 370.

● Potential: The potential for trade is estimated to be over $30 billion, but it
remains hostage to political tensions. While there have been some recent calls
from business communities on both sides for its resumption, there has been no
official government-level progress.

2.1.3.3 People-to-People Contact

Shared language, culture, and history provide a foundation for strong people-to-people
ties. However, restrictive visa regimes and the tense political climate have severely
limited cultural, academic, and sporting exchanges.

56 © 2025 ISSF
2.1.4 Role of China in India-Pakistan Relations (CPEC)
China's "all-weather friendship" with Pakistan is a major strategic challenge for India.

● The China-Pakistan Economic Corridor (CPEC): This flagship project of

China's Belt and Road Initiative (BRI) is a major point of contention. CPEC
passes through Pakistan-occupied Kashmir (PoK), which India considers a
violation of its sovereignty and territorial integrity.

● Strategic Implications: The deep economic, military, and diplomatic nexus

between China and Pakistan creates a "two-front" security challenge for India
and emboldens Pakistan's revisionist agenda.

2.1.5 Current Status and Future Prospects

● Current Status: A Deep Freeze. Relations are currently at a nadir, with no
formal diplomatic dialogue. The High Commissions in both capitals are
functioning with downgraded representation. The 2021 ceasefire
understanding along the LoC is still largely holding, which is a positive, but it
remains fragile.

● India's Stance: India's position is firm and unwavering. Any prospect of

normalizing relations is contingent on Pakistan taking credible action against
terrorism.

● Pakistan's Stance: Pakistan continues to link any forward movement to the

resolution of the Kashmir issue and has recently sought to engage the
international community on the matter.

● Future Prospects: Bleak. The fundamental divergence on the core issue of

terrorism remains the biggest obstacle. The domestic political and economic
instability in Pakistan further complicates the situation.

● In the near to medium term, a significant breakthrough seems highly unlikely.

The future of the relationship will likely remain a "managed rivalry," focused
on crisis management and maintaining the ceasefire, rather than proactive
peace-building.

● Any meaningful engagement can only begin with a decisive and demonstrable
shift in Pakistan's state policy on the use of terrorism as a tool against India.

57 © 2025 ISSF
2.2 India-China Relations: A Comprehensive Analysis

The relationship between India and China is arguably the most consequential and
complex bilateral relationship for India, and one that will shape the future of the Asian
continent.

As continental-sized neighbors, ancient civilizations, and rising global powers, their

interactions are a multi-layered tapestry of competition, containment, cooperation,
and, at times, direct confrontation.

The relationship, which was once imagined as the bedrock of Asian solidarity, is
currently in a state of deep freeze, defined by the most serious border crisis in over
four decades.

2.2.1 Historical Context: From Panchsheel to the Trauma of 1962

The trajectory of the relationship has been marked by a dramatic shift from initial
bonhomie to enduring mistrust.

● Early Phase (1950s): Following the establishment of the People's Republic of

China in 1949, India was one of the first non-communist countries to extend
recognition.

● This era was characterized by the popular slogan "Hindi-Chini Bhai-Bhai"

(Indians and Chinese are brothers) and the signing of the Panchsheel
Agreement (1954). These "Five Principles of Peaceful Coexistence" were
presented by India as a visionary model for a new, post-colonial international
order.

● The Tibetan Uprising and the 1962 War: The turning point was the 1959
Tibetan uprising and India's decision to grant asylum to the Dalai Lama. This
was viewed by Beijing as a grave provocation. The simmering border dispute,

58 © 2025 ISSF
 which had been downplayed by India, escalated into a full-scale Sino-Indian
War in 1962.

● Impact of the War: The brief but brutal war resulted in a decisive military
defeat for India. It was a profound national trauma that shattered the idealism
of Panchsheel and instilled a deep sense of betrayal and strategic mistrust that
continues to haunt the relationship. It also pushed India closer to the Soviet
Union and prompted a comprehensive modernization of the Indian military.

2.2.2 The Unresolved Border Dispute: The Core of the Conflict

The unresolved 3,488 km Line of Actual Control (LAC) is the central and most
persistent source of contention. The dispute is geographically and historically
complex.

2.2.2.1 The McMahon Line and the Eastern Sector

● The Dispute: China lays claim to approximately 90,000 sq. km of territory in

this sector, which constitutes the entire Indian state of Arunachal Pradesh.
China refers to this area as "Zangnan" or "South Tibet."

● Basis of Claims: India's claim is based on the McMahon Line, which was
agreed upon during the 1914 Simla Convention between British India and a
representative of the Tibetan government. China rejects the validity of the
McMahon Line, arguing that Tibet was not a sovereign entity with the power to
sign such an international treaty.

2.2.2.2 Aksai Chin and the Western Sector

● The Dispute: This dispute involves the Aksai Chin plateau, a strategically
vital high-altitude desert of about 38,000 sq. km. It is currently under Chinese
occupation but is claimed by India as part of its Union Territory of Ladakh.

59 © 2025 ISSF
 ● Basis of Claims: The claims are based on differing boundary lines proposed
during the British era. India's claim is broadly based on the Johnson Line
(1865), which placed Aksai Chin within the princely state of Jammu and
Kashmir.

● China's claim is closer to the Macartney-MacDonald Line (1899), which

placed the region under Chinese jurisdiction. The area's strategic importance
for China lies in the fact that its Highway G219 runs through it, connecting
Xinjiang and Tibet.

2.2.2.3 Recent Standoffs and the Current Military Crisis

The border has become a live front, with a significant breakdown of previous
confidence-building measures (CBMs).

● Doklam (2017): A 73-day military standoff at the India-China-Bhutan

tri-junction, triggered by Chinese road construction activities in territory
claimed by Bhutan.

● Galwan Valley (2020): The most serious military confrontation in 45 years. A

violent clash in the Galwan Valley in Ladakh resulted in the death of 20 Indian
soldiers and an undisclosed number of Chinese casualties.

● Consequences and Current Status: The Galwan clash fundamentally

ruptured the relationship. It led to the collapse of decades of CBMs and a
paradigm shift in India's military posture from "border management" to "border
defense."

● Despite over 22 rounds of military talks, the crisis persists. While

disengagement has occurred at some friction points (Pangong Tso,
Gogra-Hotsprings), there is a deep deadlock over legacy issues in Depsang
Plains and Demchok.

● Both sides continue to maintain massive military deployments (around

50,000-60,000 troops each) and advanced weaponry along the LAC, creating a
state of protracted military tension.

60 © 2025 ISSF
2.2.3 Economic Relations: A Story of Imbalance and Dependency
The economic relationship is substantial in volume but is characterized by deep
structural imbalances.

2.2.3.1 Bilateral Trade and the Massive Trade Deficit

● China is consistently one of India's largest trading partners, with bilateral trade
crossing $138 billion in 2024.

● However, the relationship is defined by a massive and ever-widening trade

deficit in China's favor, which exceeded $105 billion in 2024. This imbalance
exists because India primarily exports raw materials (like iron ore) to China,
while importing high-value finished goods like electronics, industrial
machinery, and active pharmaceutical ingredients (APIs).

2.2.3.2 Investment Flows and Increased Scrutiny

● Following the 2020 Galwan clashes, India has significantly tightened its
investment screening process. Press Note 3 (2020) now mandates government
approval for all FDI from countries sharing a land border with India, a move
primarily aimed at China. Hundreds of Chinese mobile apps have also been
banned on national security grounds.

2.2.3.3 Critical Supply Chain Dependencies

● A major strategic vulnerability for India is its deep dependence on Chinese
supply chains for critical goods. This includes over 70% of its APIs for the
pharmaceutical industry, components for electronics and automobiles, and key
materials for the renewable energy sector, such as solar cells and modules.

● India has launched initiatives like the Production Linked Incentive (PLI)
scheme to build domestic manufacturing capacity and de-risk these supply
chains.

61 © 2025 ISSF
2.2.4 Geopolitical Competition: A Widening Arena
The strategic rivalry has expanded from the Himalayas to the Indian Ocean and
beyond.

2.2.4.1 China's 'String of Pearls' Strategy and India's Counter

● India is wary of China's strategy of developing a network of ports and strategic
assets in India's maritime neighborhood, viewing it as a "String of Pearls"
aimed at strategic encirclement. This includes projects like the Hambantota
port in Sri Lanka, Gwadar port in Pakistan, and the Kyaukpyu port in
Myanmar.

● India has countered by strengthening its own naval capabilities, deepening

maritime security partnerships under its SAGAR doctrine, and investing in
strategic projects like the Chabahar port in Iran to secure alternative access to
Central Asia.

2.2.4.2 The Belt and Road Initiative (BRI) and India's Firm Stance
● India has steadfastly refused to join the BRI. Its primary and non-negotiable
objection is that the flagship project, the China-Pakistan Economic Corridor
(CPEC), passes through Pakistan-occupied Kashmir (PoK), which India
considers a fundamental violation of its sovereignty and territorial integrity.

2.2.4.3 China's Expanding Influence in South Asia and the IOR

● China's growing economic, political, and military footprint in South Asia (in
Nepal, Sri Lanka, Bangladesh, and the Maldives) presents a direct challenge to
India's traditional role as the pre-eminent regional power and its
'Neighbourhood First' policy.

2.2.5 Cooperation on Multilateral Forums (BRICS, SCO)

Despite the deep bilateral hostility, India and China share a platform in multilateral
forums like BRICS and the Shanghai Cooperation Organisation (SCO). This
paradoxical cooperation is driven by a shared interest in specific areas, such as
advocating for a greater voice for the Global South and reforming certain aspects of
global governance.

62 © 2025 ISSF
2.2.6 Water as a Source of Conflict: Trans-boundary Rivers
China's position as the upper riparian state on the Brahmaputra River (Yarlung
Zangbo) is a major long-term security concern. Its extensive dam-building activities in
Tibet can be used to control water flows, creating a potential lever of political
pressure. The absence of a formal water-sharing treaty and a fully transparent
data-sharing mechanism exacerbates this vulnerability.

2.2.7 Current Status: An "Abnormal" Relationship

The current state of India-China relations is officially described by India as
"abnormal." The Indian government's position is that the relationship cannot return
to normal until peace and tranquility are restored along the LAC.

The diplomatic framework for engagement is based on India's call for adherence to
the "Three Mutuals" – mutual respect, mutual sensitivity, and mutual interests.

The relationship is currently defined by:

● Military Confrontation: A protracted military standoff along the LAC.

● Strategic Competition: Intense rivalry for influence across the Indo-Pacific.

● Weaponized Economic Ties: An imbalanced trade relationship with moves by

India to reduce strategic dependencies.

● Contained Multilateral Cooperation: Limited cooperation only on platforms

of shared interest.

The future of the relationship hinges on the peaceful resolution of the border dispute, a
prospect that remains distant. Until then, managing the strategic competition while
avoiding escalation into full-blown conflict remains the primary challenge for Indian
diplomacy.

63 © 2025 ISSF
2.3 India-Nepal Relations: A Comprehensive and In-Depth Analysis
The relationship between India and Nepal is unique and unparalleled, often described
as being deeper than a standard state-to-state engagement.

It is an intimate and complex bond forged by millennia of shared history, an open

border, and profound linkages in geography, culture, religion, and kinship.

This "special relationship," however, is not without its significant challenges. It

navigates a difficult terrain of post-colonial sensitivities, asymmetrical power
dynamics, the complexities of internal Nepali politics, and the growing strategic
influence of extra-regional powers, most notably China.

2.3.1 Historical and Geo-political Significance

● Geopolitical Imperative: Nepal, a landlocked nation, is strategically located
between the two Asian giants, India and China, functioning as a natural "buffer
state." For India, a stable, secure, and friendly Nepal is non-negotiable for the
security of its northern frontier and the wider Himalayan region. Any
instability or hostile influence in Nepal has direct and immediate implications
for India's national security.

● The Open Border: The 1,850-kilometer-long open border is the most unique
feature of the relationship. It allows for visa-free movement of people,
fostering deep economic integration and social interaction.

While a testament to the unparalleled trust and closeness, this open frontier also
poses significant security challenges, including the management of
cross-border crime, human and drug trafficking, counterfeit currency
circulation, and its potential misuse by terrorists or third-country nationals.

64 © 2025 ISSF
2.3.2 The 1950 Treaty of Peace and Friendship: Bedrock and Bottleneck
This treaty, signed in 1950, is the foundational document of the post-colonial special
relationship.

● Key Provisions and Their Intent: The treaty provides for an open border,
grants nationals of one country the right to live, work, and own property in the
other (national treatment), and mandates close cooperation and consultation on
security matters. Its original intent was to create a framework of
interdependence and address mutual security concerns, particularly in the
context of China's assertion over Tibet.

● A Source of Perennial Contention: Over the years, the treaty has become a
major political issue in Nepal. Nationalist sections view it as unequal and a
symbol of Indian "hegemony," arguing it was signed by the autocratic Rana
regime under duress. The most contentious clauses include:

○ Article 2: Requires both governments to "inform each other of any

serious friction or misunderstanding with any neighbouring State." This
is seen by some in Nepal as an infringement on its sovereign right to
conduct an independent foreign policy.

○ Articles 6 & 7: Granting "national treatment" on a reciprocal basis for

residence, property ownership, and economic activity. Critics in Nepal
argue this disproportionately benefits the larger Indian population and
economy.

● The Stalled Revision Process: Both countries have long agreed on the need to
review and update the treaty to reflect contemporary realities. An Eminent
Persons' Group (EPG), comprising experts from both nations, was formed
and prepared a joint report with recommendations several years ago. However,
the report has not yet been formally received by the Indian government,
indicating a significant political deadlock and a lack of consensus on the path
forward, leaving this core issue unresolved.

2.3.3 Areas of Cooperation: A Multi-faceted Engagement

Despite political complexities, cooperation is deep and expanding, particularly in
connectivity and energy.

● Economy and Trade: India remains Nepal's largest trade partner and the
largest source of foreign investment, accounting for over 60% of Nepal's

65 © 2025 ISSF
 merchandise trade. India provides crucial transit facilities for Nepal's trade with
the rest of the world through its ports.

● Water Resources (Hydropower): This is the most promising area for future
cooperation. Nepal has a massive hydropower potential (estimated at over
40,000 MW technically feasible), and India is the only viable market for this
energy.

○ Recent Breakthrough: A landmark long-term power trade

agreement was signed in early 2024, under which India committed to
importing 10,000 MW of electricity from Nepal over the next 10 years.

○ Project Development: India is actively involved in developing major

projects like the Arun-III (900 MW). India's NHPC has also taken over
the development of the long-stalled West Seti (750 MW) and Seti
River-6 (450 MW) projects, which were previously with a Chinese
company.

● Defence Cooperation: The relationship has a unique military dimension. The

Gorkha regiments of the Indian Army have a long and celebrated history of
recruiting soldiers from Nepal, creating a powerful bond. India also provides
training, equipment, and capacity-building support to the Nepalese Army. The
joint military exercise "Surya Kiran" is held annually.

● Connectivity: Enhancing connectivity is a major focus to deepen

interdependence.

○ Railways: The Jaynagar-Kurtha cross-border railway line is now

operational and being extended to Bardibas. Surveys for the ambitious
Raxaul-Kathmandu railway line are also underway.

○ Pipelines: The successful Motihari-Amlekhgunj petroleum pipeline

is being extended to Chitwan, ensuring a stable and cost-effective
supply of fuel to Nepal.

66 © 2025 ISSF
 ○ Integrated Check Posts (ICPs): ICPs have been built at key border
points like Birgunj and Biratnagar to facilitate smoother trade and
transit.

2.3.4 Contentious Issues: Navigating a Complex Terrain

The relationship is frequently tested by several unresolved and sensitive issues.

2.3.4.1 Border Disputes (Kalapani-Lipulekh-Limpiyadhura)

● The most serious irritant is the unresolved boundary dispute over the Kalapani
territory in western Nepal. The dispute originates from differing interpretations
of the source of the Kali River, which was designated as Nepal's western
border in the 1816 Treaty of Sugauli with British India.

● The issue escalated dramatically in 2020 after India inaugurated a new road to
the Lipulekh Pass. In response, Nepal's parliament published a new political
map that included Kalapani, Lipulekh, and Limpiyadhura as part of its territory.
This remains a major diplomatic deadlock, with no substantive dialogue on the
issue in recent years.

2.3.4.2 Trade and Transit Issues

● While India provides crucial transit access, periods of political tension have led
to disruptions at the border. The 2015 "blockade" during the Madhesi agitation
is a case in point. While India maintained it was a result of protests on the
Nepalese side, it was widely perceived in Nepal as an undeclared economic
blockade, causing severe hardship and fueling widespread anti-India sentiment.

2.3.4.3 Impact of Nepal's Internal Politics

● Nepal's vibrant and often volatile domestic politics directly impact its foreign
policy. Anti-India rhetoric is a potent tool for some political factions to
mobilize support, often by playing the "nationalism card."

● The frequent changes in government and fragile coalition dynamics in

Kathmandu make it challenging for India to maintain consistent and long-term
policy engagement. The concerns of the Madhesi population in Nepal's Terai
region, who share close ethnic and family ties with India, are also a sensitive
factor in the relationship.

67 © 2025 ISSF
2.3.4.4 Growing Chinese Influence
● This is a major strategic challenge for India. China has significantly increased
its economic and political footprint in Nepal through its Belt and Road
Initiative (BRI), although the progress on specific BRI projects has been slow.

● China has invested in major infrastructure projects, including airports, and is

actively pursuing a trans-Himalayan railway project to connect to
Kathmandu. It has also stepped up its security and military engagement with
Nepal. This growing presence is seen by India as a concerted effort to reduce
Nepal's traditional reliance on India and to gain strategic leverage in a country
vital for India's security.

2.3.5 People-to-People & Cultural Relations ('Roti-Beti Ka Rishta')

This remains the foundational strength and a unique safety valve in the relationship.

● The phrase 'Roti-Beti Ka Rishta' (relationship of livelihood and marriage)

aptly describes the deep, organic ties between the people.

● Shared religion (Hinduism and Buddhism), common pilgrimage circuits like

the Ramayana and Buddhist circuits, and extensive cross-border family and
kinship ties create a bond that transcends political differences. This enduring
socio-cultural connection provides a resilient base for the relationship, often
helping to mitigate diplomatic tensions and providing a pathway for
reconciliation.

68 © 2025 ISSF
2.4 India-Bhutan Relations

The relationship between the Republic of India and the Kingdom of Bhutan is
consistently cited as a model of exemplary bilateral ties.

It is a "special relationship" built on a foundation of deep trust, mutual respect, shared

strategic interests, and vibrant people-to-people connections.

This partnership has been carefully nurtured through regular high-level exchanges and
a robust framework of cooperation that is vital for the security and prosperity of both
nations.

2.4.1 Nature of the "Special Relationship"

The India-Bhutan relationship is characterized by an exceptional degree of warmth
and understanding. It is a partnership between a global power and a smaller
Himalayan kingdom that has been managed with great sensitivity. Key features
include:

● Unbroken Trust: Unlike with some other neighbors, the relationship has been
remarkably free of major disputes or public friction.

● Shared Strategic Perception: Both countries share concerns about regional

security, particularly in the context of China's growing assertiveness.

● People-to-People Ties: The open border, along with deep cultural and
religious links (especially Buddhism), fosters a unique and organic bond
between the citizens of both countries.

69 © 2025 ISSF
2.4.2 The 1949 and 2007 Friendship Treaties
The relationship has been formally guided by two key treaties.

● The Treaty of Friendship of 1949: Signed shortly after India's independence,

this treaty laid the foundation for the special relationship. It established
perpetual peace and friendship, free trade, and close cooperation. Article 2 of
this treaty was significant, stating that Bhutan would be "guided by the advice
of the Government of India in regard to its external relations."

● The India-Bhutan Friendship Treaty of 2007: Recognizing the need to

update the relationship to reflect contemporary realities and Bhutan's growing
maturity as a sovereign nation, the treaty was revised in 2007.8 The new treaty
is a testament to the trust between the two nations.

○ Key Change: The most crucial amendment was the replacement of

Article 2. The new treaty states that both countries "shall cooperate
closely with each other on issues relating to their national interests."

○ It removes any implication of India guiding Bhutan's foreign policy,

thereby formally recognizing Bhutan's full sovereignty in its foreign
policy decisions while still committing to close consultation and
cooperation on matters of mutual security.

2.4.3 Cooperation: Hydropower, Security, Economic Aid

Cooperation is deep and multi-faceted, with three pillars standing out.

● Economic Aid and Development Partnership: India has been Bhutan's

premier development partner since Bhutan began its five-year planning process
in the 1960s.

○ 13th Five-Year Plan (2024-2029): India has committed a substantial

support package of ₹10,000 Crore (Nu. 100 billion) for Bhutan's
current five-year plan. This includes Project Tied Assistance (PTA) for
major projects, High Impact Community Development Projects
(HICDPs) for grassroots development, and direct budgetary support.

○ Recent Developments (June 2025): During the India-Bhutan

Development Cooperation Talks held on June 30, 2025, 10 new
development projects worth ₹1,113 crore were approved across sectors
like healthcare, connectivity, and infrastructure.

70 © 2025 ISSF
 ● Hydropower Cooperation: This is the bedrock of the economic relationship.
India has helped build several major hydropower projects in Bhutan, buying
the surplus electricity, which is Bhutan's largest source of revenue.

○ Existing Projects: Four major projects with a total capacity of 2136

MW are already operational and supplying power to India.

○ New Initiatives (May 2025): In a significant new development,

Bhutan's Druk Green Power Corporation (DGPC) signed a landmark
MoU with India's Adani Group to jointly develop an additional 5,000
MW of hydropower capacity, signaling a major expansion of this
partnership.

○ Security Cooperation: India and Bhutan share a very close and

integrated security relationship.

○ The Indian Military Training Team (IMTRAT) is permanently

stationed in Bhutan to train the Royal Bhutan Army.

○ There is close coordination on border management and on monitoring

regional security threats.

○ The visit of India's Chief of Army Staff to Bhutan in late June 2025
underscores the continuing high-level defense engagement between the
two countries.

2.4.4 Strategic Importance: The Doklam Issue and Bhutan's Security

Bhutan's geographic location, wedged between India and China, makes it critically
important for India's security.

● The Doklam Plateau: The Doklam plateau is a tri-junction where the borders
of India (Sikkim), Bhutan, and China (Tibet) meet. This area is strategically
vital for India as it overlooks the Siliguri Corridor (or "Chicken's Neck"), the
narrow strip of land that connects India's northeastern states to the rest of the
country.

● The 2017 Doklam Standoff: A 73-day military face-off occurred in 2017

when the Indian Army physically blocked China's People's Liberation Army
(PLA) from constructing a road in the Doklam area, which Bhutan claims as its
territory. India intervened based on its security agreement with Bhutan and to
protect its own strategic interests.

71 © 2025 ISSF
 ● Current Situation: The standoff solidified the India-Bhutan security
partnership. However, China continues to build up its military infrastructure in
the areas north of the standoff point, making the region a continued focus of
close coordination between the Indian and Bhutanese armies.

2.4.5 Bhutan's Foreign Policy Diversification and its Implications for India
As Bhutan matures as a democracy, it is naturally seeking to diversify its foreign
policy and establish diplomatic relations with more countries, a move India supports.
However, one aspect of this diversification is watched very closely by New Delhi.

● Bhutan-China Boundary Talks: Bhutan is one of the few countries that does
not have official diplomatic relations with China. The two countries are
currently engaged in a series of talks to resolve their long-standing border
dispute.

○ Implications for India: India is not a party to these talks but has a
direct and vital interest in their outcome. Any potential border
settlement, especially a "swap" where Bhutan might concede territory in
the strategic Doklam area in exchange for Chinese concessions in the
north, would have serious security implications for India. Therefore,
New Delhi closely monitors these negotiations.

● The Gelephu Mindfulness City Project: Bhutan's King has announced an

ambitious project to build a massive "Gelephu Mindfulness City" as a special
economic zone in southern Bhutan, near the border with Assam.

● India has expressed its full support for this project, viewing it as a mutually
beneficial economic corridor and has pledged to build new rail links and
highways to connect Gelephu with India.

● This is seen as a way to further integrate Bhutan's economy with India's and
provide a positive pathway for its economic growth.

Conclusion:
The India-Bhutan relationship remains a model of trust and cooperation.29 While
built on a strong historical foundation, it is also evolving. India continues to be
Bhutan's most important partner, but it is also adapting to Bhutan's aspirations for a
more diversified foreign policy.

72 © 2025 ISSF
2.5 India-Bangladesh Relations

The relationship between India and Bangladesh is one of the most significant in South
Asia, rooted in shared history, culture, language, and the pivotal role India played in
Bangladesh's independence.

For over a decade, the relationship was celebrated as a "Sonali Adhyay" or "golden
chapter," serving as a model for neighborhood diplomacy.

However, recent political developments in Bangladesh have introduced significant

new complexities and challenges to this historically deep partnership.

2.5.1 Historical Context: 1971 Liberation War

The bedrock of the India-Bangladesh relationship is the 1971 Liberation War. India's
unwavering political, diplomatic, and military support was instrumental in the creation
of an independent Bangladesh.

India provided refuge to millions of Bangladeshis fleeing the genocide perpetrated by

the Pakistani army and its decisive military intervention led to the surrender of
Pakistani forces in Dhaka.

This shared history of sacrifice and solidarity has provided a powerful emotional and
political foundation for the bilateral ties.

2.5.2 Areas of Cooperation: The "Golden Chapter"

The partnership has been remarkably comprehensive, with deep cooperation across
multiple sectors.

73 © 2025 ISSF
2.5.2.1 Security & Counter-Terrorism
Under the previous government of Sheikh Hasina, security cooperation reached
unprecedented levels.

Bangladesh took decisive action against anti-India insurgent groups that were using its
territory as a safe haven.

The two countries established a robust mechanism for intelligence sharing and
coordinated border management to combat terrorism, trafficking, and other
transnational crimes.

2.5.2.2 Economic & Trade (CEPA negotiations)

● Bilateral Trade: Bangladesh is India's largest trade partner in South Asia, with
bilateral trade reaching USD 14.01 billion in FY 2023-24. India is also the
second-biggest trade partner for Bangladesh in Asia.

● CEPA Negotiations: To further boost economic ties, both countries had agreed
to launch negotiations for a Comprehensive Economic Partnership
Agreement (CEPA).

● Recent Strains: However, recent political changes in Bangladesh have strained

economic ties, with reports of reciprocal trade restrictions being implemented
in mid-2025.

2.5.2.3 Connectivity: Land, Water, Rail, Air

Connectivity is the cornerstone of the partnership, aimed at integrating the two
economies and providing India's Northeast with vital access to the sea. 12

● Land & Sea Ports: India has been granted access to use Bangladesh's
Chittagong and Mongla ports for the transshipment of goods to its
northeastern states, significantly reducing time and cost. The Maitri Setu
bridge over the Feni river connects Tripura with Chittagong port.

● Railways: Several pre-1965 rail links have been revived.

The Akhaura-Agartala cross-border rail link was inaugurated to connect

Tripura directly with Bangladesh's railway network.

● Waterways: The Protocol on Inland Water Trade and Transit (PIWTT)

facilitates the movement of cargo through shared river systems.

74 © 2025 ISSF
2.5.2.4 Energy Sector Cooperation
● Power Supply: India supplies over 1,160 MW of electricity to Bangladesh,
playing a key role in its energy security. The Maitree Super Thermal Power
Plant, a joint venture, has been established in Bangladesh.

● Pipelines: The India-Bangladesh Friendship Pipeline (IBFPL) was

inaugurated in 2023 to supply high-speed diesel from India to northern
Bangladesh.

● Trilateral Cooperation (Latest Development - July 2025): In a landmark

development, the first-ever trilateral power transaction has been
operationalized, with Nepal exporting 40MW of hydropower to Bangladesh
through the Indian power grid, showcasing a new model for regional energy
cooperation.

2.5.3 Contentious Issues

Despite the depth of cooperation, several issues remain sources of friction.

2.5.3.1 Teesta Water Sharing

This remains the single most significant unresolved issue. The failure to sign a treaty
on the equitable sharing of the Teesta river's waters, primarily due to internal politics
within India, is a major source of grievance in downstream Bangladesh.

● China's Entry: In a recent and alarming development for India, China is now
actively pursuing a "Teesta River Comprehensive Management and
Restoration Project" in Bangladesh.

● India is deeply concerned about this, as any Chinese presence or project near
the strategically vital "Chicken's Neck" (Siliguri Corridor) is seen as a major
security threat.

2.5.3.2 Illegal Immigration & NRC

The issue of undocumented migration from Bangladesh into Indian states like Assam
and West Bengal is a politically sensitive and long-standing issue in India.

The process of updating the National Register of Citizens (NRC) in Assam has
caused some apprehension and diplomatic friction.

75 © 2025 ISSF
2.5.3.3 Border Management and Killings
While the 4,096 km border is largely peaceful, occasional killings of Bangladeshi
nationals by Indian border forces are a major emotional and diplomatic irritant.
Smuggling and illegal cross-border activities also remain a challenge.

2.5.3.4 Rohingya Refugee Crisis

Bangladesh is hosting over a million Rohingya refugees who fled persecution in
Myanmar. This has placed an immense socio-economic and security burden on the
country.

While India has provided humanitarian assistance (Operation Insaniyat), Bangladesh

expects more proactive support from India in pressuring Myanmar for the safe,
voluntary, and sustainable repatriation of the refugees.

2.5.4 Resolution of Land and Maritime Boundaries

A major success story in the relationship is the peaceful and legally binding resolution
of the long-pending land and maritime boundary disputes.25 The implementation of
the Land Boundary Agreement in 2015 involved a complex exchange of enclaves
and stands as a global model for resolving such protracted issues through diplomacy.

2.5.5 Role of China in Bangladesh

China's influence in Bangladesh has grown exponentially, presenting a significant
strategic challenge for India.

● Economic Footprint: China is Bangladesh's largest trading partner and a

major investor, particularly in large infrastructure projects under its Belt and
Road Initiative (BRI). This has also led to a surge in Bangladesh's debt to
China.

● Defence Supplier: China is the primary supplier of military hardware to the

Bangladesh armed forces, including submarines, frigates, and fighter aircraft.

● Recent Shift and Strategic Concerns:

○ Following the recent regime change in Dhaka, there is a perceptible

pro-China tilt. The new government is reportedly in talks with Beijing
for the procurement of J-10C fighter jets and has significantly
increased ammunition imports from Pakistan.

76 © 2025 ISSF
 ○ In a move that has raised alarm bells in New Delhi, China hosted the
first-ever China-Bangladesh-Pakistan trilateral meeting in June
2025, signaling an emerging axis that India views as strategic
encirclement.

○ Reports of potential Chinese assistance in reviving the Lalmonirhat

airfield, located very close to the sensitive Siliguri Corridor, are a cause
of grave concern for India's national security.

Conclusion: A Golden Chapter Facing New Tests

The India-Bangladesh relationship, once hailed as a "golden chapter" of neighborhood
policy, is currently at a critical juncture.

The deep-rooted cooperation in connectivity, energy, and trade built over the last
decade provides a strong foundation.

However, the recent political turmoil in Dhaka, a growing pro-China tilt, and the entry
of Beijing into sensitive areas like the Teesta river basin have introduced new and
serious challenges.

Navigating this new reality will require astute, pragmatic, and patient diplomacy from
New Delhi to protect its strategic interests while preserving its invaluable historical
and people-to-people ties with Bangladesh.

77 © 2025 ISSF
2.6 India-Sri Lanka Relations

The relationship between India and its southern maritime neighbor, Sri Lanka, is
ancient, deep, and multi-layered, built upon a foundation of shared civilizational,
cultural, and religious heritage.

As the closest maritime neighbor, a stable and friendly Sri Lanka is of paramount
strategic importance to India.

The relationship is complex, characterized by periods of close cooperation,

deep-seated contentious issues, and a growing geopolitical competition for influence
on the island nation.

2.6.1 Historical and Cultural Ties

The bonds between the two nations date back over 2,500 years.

● Religious and Cultural Linkages: The introduction of Buddhism to Sri Lanka

by the children of Emperor Ashoka, Mahinda and Sanghamitta, created an
enduring civilizational link. The shared heritage of the Ramayana and the
linguistic and ethnic ties of the Tamil population in both countries further
cement this connection.

● Ethnic Composition: Sri Lanka's ethnic composition, with a Sinhala-Buddhist

majority and a significant Tamil minority with deep roots in Southern India,
creates a unique and often sensitive dynamic in the bilateral relationship.

78 © 2025 ISSF
2.6.2 India's Role in the Ethnic Conflict (IPKF) and Post-Conflict Reconstruction

India's engagement with Sri Lanka's long and brutal ethnic conflict between the
government and the Liberation Tigers of Tamil Eelam (LTTE) has been a defining and
difficult chapter in their relationship.

● The IPKF Intervention (1987-1990): Following the Indo-Sri Lanka Accord

of 1987, India deployed the Indian Peace Keeping Force (IPKF) to Sri Lanka
with the initial aim of disarming militant groups and ensuring peace.

● However, the IPKF soon became embroiled in a conflict with the LTTE. The
intervention is viewed as a controversial and painful episode, as the IPKF
suffered significant casualties and was eventually withdrawn without achieving
its objectives.

● Post-Conflict Reconstruction: After the end of the conflict in 2009, India

emerged as a major partner in Sri Lanka's reconstruction and reconciliation
efforts, particularly in the war-affected Northern and Eastern provinces. Key
contributions include:

○ Housing Projects: A flagship project to build 50,000 houses for the

internally displaced population.

○ Infrastructure Development: Rebuilding critical infrastructure,

including restoring the northern railway lines, reconstructing schools,
and rehabilitating hospitals.

2.6.3 Contentious Issues

Despite the close ties, several issues continue to pose challenges to the bilateral
relationship.

2.6.3.1 Fishermen Issue in the Palk Strait

This is a persistent and emotive humanitarian issue.

● The Conflict: Indian fishermen from Tamil Nadu are frequently arrested by the
Sri Lankan Navy for allegedly crossing the International Maritime Boundary
Line (IMBL) and fishing in Sri Lankan waters, often using destructive bottom
trawling methods.

● The Impasse: While a Joint Working Group on Fisheries exists, a permanent

solution remains elusive due to the livelihood concerns of Indian fishermen and

79 © 2025 ISSF
 the resource depletion concerns of their Sri Lankan counterparts. Recent
months in 2025 have continued to see incidents of arrests, keeping the issue on
the diplomatic agenda.

2.6.3.2 Implementation of the 13th Amendment

● Background: The 13th Amendment to the Sri Lankan Constitution, born out
of the 1987 Indo-Sri Lanka Accord, mandates the devolution of power to
provincial councils. It is seen by India as crucial for achieving national
reconciliation and fulfilling the aspirations of the Tamil minority.

● The Issue: The full implementation of the 13th Amendment, particularly the
granting of land and police powers to the provinces, has been consistently
resisted by successive Sri Lankan governments due to domestic political
opposition from Sinhala nationalist groups. India continues to reiterate its call
for its full implementation at every high-level engagement, but the issue
remains a major point of contention.

2.6.3.3 China's Strategic Presence (Hambantota, Colombo Port City)

This is the most significant strategic challenge for India in Sri Lanka.

● Hambantota Port: The deep-sea port in Hambantota, built with Chinese loans,
was handed over to a Chinese state-run company on a 99-year lease in 2017
after Sri Lanka was unable to service its debt. India views this as a major
strategic concern, given the port's potential for use as a military and
intelligence-gathering base by China.

● Colombo Port City: A massive Chinese-funded real estate and port

development project near Colombo port, which also raises concerns about
China's growing economic and strategic influence.

● "Research" Vessels: A recurring point of friction has been the docking of

Chinese naval and so-called "research" vessels at Sri Lankan ports.

80 © 2025 ISSF
 The visits of vessels like the Xiang Yang Hong series in late 2024 and early
2025, which are capable of mapping the seabed for submarine operations, have
been met with strong objections from India, which views them as a direct threat
to its security.

2.6.4 Economic Relations and India's role in Sri Lanka's economic crisis
India's economic partnership with Sri Lanka is robust, and its role during the recent
crisis has been pivotal.

● Role as a "First Responder": During Sri Lanka's severe economic and

humanitarian crisis in 2022-23, India stepped up with unprecedented support,
providing approximately USD 4 billion in the form of currency swaps, credit
lines for food, fuel, and medicines, and other assistance. This timely aid
cemented India's reputation as a reliable first responder and a true friend.

● New Connectivity Initiatives: Building on this goodwill, both countries are

now actively pursuing a new phase of economic integration. Key initiatives
being discussed in 2025 include:

○ An India-Sri Lanka land bridge.

○ A petroleum pipeline to ensure energy security.

○ The use of India's Unified Payments Interface (UPI) to boost tourism

and digital payments.

2.6.5 Maritime Security Cooperation (Colombo Security Conclave)

Given the shared maritime environment, security cooperation is a key and growing
pillar of the relationship.

● Colombo Security Conclave (CSC): This is a significant regional initiative.

Originally a trilateral grouping of India, Sri Lanka, and the Maldives, it has
been expanded to include Mauritius as a full member and Bangladesh and
Seychelles as observers. The CSC focuses on cooperation in maritime security,
counter-terrorism, cybersecurity, and combating transnational crime.

● Bilateral Cooperation: The two navies conduct regular joint exercises (e.g.,
SLINEX) and coordinated patrols. India also provides training and
capacity-building support to the Sri Lankan armed forces.

81 © 2025 ISSF
Conclusion:

The India-Sri Lanka relationship is a complex tapestry of deep historical bonds and
contemporary geopolitical challenges.

India's timely and substantial support during Sri Lanka's economic crisis has
generated immense goodwill and created a window of opportunity to steer the
relationship in a more positive direction.

However, the core contentious issues of the fishermen's dispute and the full
implementation of the 13th Amendment remain.

The overarching strategic challenge will be to navigate the growing Chinese presence
in Sri Lanka, leveraging economic integration and security cooperation to ensure that
Sri Lanka's choices do not adversely affect India's security interests.

82 © 2025 ISSF
2.7 India-Maldives Relations

The relationship between India and the Maldives is of critical strategic importance,
dictated by geography and shared interests in the Indian Ocean. It is a relationship that
has historically been characterized by close cooperation and India's role as a net
security provider.

However, in recent years, the ties have become highly susceptible to the Maldives'
domestic politics, leading to periods of significant strain and a growing geopolitical
contest for influence, particularly with China.

2.7.1 Strategic Importance in the Indian Ocean

The Maldives, an archipelago of nearly 1,200 coral islands, holds immense strategic
value for India.

● Proximity and Location: Located just 70 nautical miles from India's Minicoy
Island and 300 nautical miles from the Indian mainland's west coast, the
Maldives sits astride some of the world's most vital Sea Lanes of
Communication (SLOCs).

● Control over Sea Lanes: These sea lanes, running through the channels
between the Maldivian atolls, carry the bulk of maritime trade between the
Gulf and East Asia. Any hostile or destabilizing presence in the Maldives could
directly threaten India's trade, energy security, and naval movements.

● Maritime Security: A friendly and stable Maldives is crucial for India's

maritime security architecture in the Indian Ocean Region (IOR). It is a key
partner in monitoring the IOR for threats like piracy, terrorism, and trafficking.

83 © 2025 ISSF
2.7.2 India's Role as a Net Security Provider ('Operation Cactus')
Historically, India has been the primary security guarantor for the Maldives, a role that
was definitively established by its swift military intervention in 1988.

● 'Operation Cactus' (1988): When a coup attempt was launched against

then-President Maumoon Abdul Gayoom by a group of Maldivian dissidents
with the help of armed mercenaries from a Sri Lankan Tamil secessionist group
(PLOTE), India responded immediately.

● The Indian Armed Forces launched 'Operation Cactus', swiftly neutralizing

the threat, rescuing the President, and restoring the legitimate government's
authority. This operation cemented India's reputation as a reliable and potent
security provider in the region.

● First Responder in Crises: India has consistently been the first to assist the
Maldives in times of crisis, including during the 2004 Indian Ocean tsunami
and the 2014 Malé water crisis, when Indian naval ships and aircraft delivered
fresh water to the capital after its desalination plants failed.

2.7.3 Impact of Domestic Politics ('India Out' Campaign)

In recent years, the bilateral relationship has been significantly impacted by the
internal politics of the Maldives.

● The 'India Out' Campaign: A political campaign, heavily backed by the

opposition coalition that is now in power, gained significant traction between
2020 and 2023.

● The campaign was built on a nationalist platform, alleging that the presence of
a small contingent of Indian military personnel (who were there to operate and
maintain Indian-donated aircraft and helicopters for medical evacuation and
surveillance) was a violation of Maldivian sovereignty.

● 2023 Presidential Election: The 'India Out' narrative became a central plank
of Mohamed Muizzu's successful presidential election campaign in 2023. His
victory marked a sharp pivot in the Maldives' foreign policy, moving away
from the "India First" policy of his predecessor.

● Withdrawal of Indian Troops: Fulfilling his key campaign promise, President

Muizzu formally requested the withdrawal of all Indian military personnel. As
of May 2025, all Indian troops have been withdrawn and replaced by civilian
technical experts from India to continue operating the aviation platforms.

84 © 2025 ISSF
2.7.4 Development Cooperation vs. Chinese Influence
The Maldives has become a key arena for a strategic competition between India and
China, played out through development and infrastructure projects.

● India's Development Partnership: India has been a major development

partner, funding numerous large-scale infrastructure projects. Key projects
include:

○ The Greater Malé Connectivity Project (GMCP): A $500 million

project, the largest infrastructure project in the Maldives, involving the
construction of a 6.74 km bridge and causeway link connecting the
capital Malé with adjoining islands.

○ Development of the Hanimaadhoo International Airport and

numerous other community development projects.

● China's Growing Influence:

○ Under the new government, there has been a clear and decisive tilt
towards China. President Muizzu's first state visit was to Beijing in early
2025, breaking the tradition of visiting New Delhi first.

○ During the visit, the Maldives signed several new agreements with
China, including on infrastructure development under the Belt and
Road Initiative (BRI). The new government is also reportedly
awarding key infrastructure contracts to Chinese companies.

2.7.5 Security and Defence Cooperation

This is the area that has witnessed the most dramatic and concerning shift.

● Historical Cooperation: For years, India was the Maldives' primary defense
and security partner. The two countries conducted joint exercises, and India
provided patrol vessels, aircraft, and extensive training to the Maldivian
National Defence Force (MNDF).

● Recent Policy Reversals:

○ The new Maldivian government has decided not to renew the

hydrographic survey agreement with India, which allowed the Indian
Navy to conduct detailed surveys of the Maldives' territorial waters.

85 © 2025 ISSF
 ○ New Security Pacts with China and Turkey: In a major strategic
development, the Maldives signed a "military assistance" agreement
with China in March 2025, the details of which are not fully public but
involve the provision of non-lethal military equipment and training. The
Maldives has also signed a deal with Turkey to procure military drones.

● Colombo Security Conclave: While the Maldives remains a part of the

India-led Colombo Security Conclave (along with Sri Lanka and Mauritius), its
future active participation and commitment to the group's objectives are being
closely watched by New Delhi.

Conclusion:
The India-Maldives relationship is currently navigating a period of significant
challenge and strategic realignment.

While India's development projects and long-standing people-to-people ties remain,

the new Maldivian government's decisive pivot towards China in the security and
defense domain has created a deep strategic trust deficit.

For India, the primary challenge is to protect its core security interests in its
immediate maritime neighborhood while managing a relationship with a government
that has risen to power on an explicitly anti-India platform.

The situation underscores the complex interplay of domestic politics and great power
competition in shaping the geopolitics of the Indian Ocean.

86 © 2025 ISSF
2.8 India-Myanmar Relations

The relationship between India and Myanmar is a critical, complex, and currently
challenging component of India's neighborhood policy.

As the only country that sits at the intersection of India's 'Neighbourhood First' and
'Act East' policies, Myanmar is indispensable for India's regional ambitions.

It is India's land bridge to Southeast Asia and shares a long, porous border with India's
sensitive northeastern states.

However, the relationship is currently navigating profound challenges stemming from

the 2021 military coup and the escalating civil war in Myanmar.

2.8.1 Gateway to Southeast Asia ('Act East' Policy)

Myanmar is the cornerstone of India's 'Act East' Policy. Its geographical location
makes it the essential gateway for India to pursue deeper economic, strategic, and
cultural integration with the Association of Southeast Asian Nations (ASEAN).

● Land Bridge: Myanmar is the only ASEAN country that shares a land border
with India (over 1,600 km). All major land connectivity projects aimed at
linking India with Southeast Asia must pass through Myanmar.

● Strategic Importance: A stable and friendly Myanmar is crucial for the

economic development and security of India's northeastern states. It is also
vital for India's strategy to create a more integrated and cooperative
Indo-Pacific region, providing a counterweight to China's growing influence.

87 © 2025 ISSF
2.8.2 Areas of Cooperation: Vision vs. Reality
India has invested significantly in building a multi-faceted partnership with Myanmar,
but the recent turmoil has severely hampered progress on key projects.

● Connectivity (Kaladan, Trilateral Highway): These two flagship projects are

central to the 'Act East' Policy, but both are currently stalled due to the conflict
in Myanmar.

○ Kaladan Multi-Modal Transit Transport Project: This project aims

to connect Kolkata to Mizoram via Myanmar's Sittwe port and the
Kaladan river. While the Sittwe port, built with Indian assistance, is
operational, the crucial final road component inside Myanmar is
incomplete.

○ The project area in Rakhine and Chin states is a hotbed of intense

conflict between the Myanmar military and ethnic armed groups like the
Arakan Army, bringing construction and future transit security to a
standstill.

○ India-Myanmar-Thailand (IMT) Trilateral Highway: This highway

aims to connect India's Northeast with Thailand via Myanmar. While the
Indian and Thai sections are largely complete, the critical Myanmar
segment is far from finished and its construction has been indefinitely
stalled by the civil war.

● Security (Counter-insurgency): Historically, the Indian Army and the

Myanmar military (the Tatmadaw) have cooperated in coordinated operations
against Indian Insurgent Groups (IIGs) that used Myanmar's territory as safe
havens. This cooperation has become highly complicated since the coup, as the
Tatmadaw has lost control over large parts of the border region to various
ethnic armed groups.

● Trade: Bilateral trade exists but has been frequently disrupted. Key border
trading posts like Moreh-Tamu have been repeatedly shut down due to intense
fighting on the Myanmar side.

88 © 2025 ISSF
2.8.3 Challenges
The relationship is currently defined more by its immense challenges than by its areas
of cooperation.

2.8.3.1 Rohingya Refugee Crisis

The exodus of over a million Rohingya refugees from Myanmar's Rakhine State into
Bangladesh in 2017 created a major humanitarian and security crisis in the region.

● India's Stance: India is not a signatory to the 1951 UN Refugee Convention

and has not played a direct mediating role. Its position has been to provide
humanitarian assistance to Bangladesh (Operation Insaniyat) while
advocating for the safe, speedy, and sustainable repatriation of the refugees
back to Myanmar. The crisis remains unresolved and is a potential source of
regional instability and radicalization.

2.8.3.2 Military Coup (2021) and India's Balancing Act

The military coup of February 1, 2021, which overthrew the democratically elected
government, is the single biggest challenge. It has forced India to perform a difficult
diplomatic balancing act.

● The Dilemma: India is caught between its principled support for democracy
and the pragmatic need to engage with the military junta (the State
Administration Council - SAC) to protect its security and strategic interests.

● India's Pragmatic Approach: Unlike Western nations that have imposed

strong sanctions and condemned the coup unequivocally, India has adopted a
more cautious approach. It has abstained on some UN resolutions condemning
the junta and has maintained diplomatic channels. This approach is driven by
the need to:

1. Protect its significant investments in connectivity projects.

89 © 2025 ISSF
 2. Secure its long border and prevent a complete security vacuum.

3. Counter China's deep and growing influence, as Beijing has become

the primary political and economic backer of the military regime.

2.8.3.3 Border Stability and Transnational Crime

The escalating civil war in Myanmar has had a direct and destabilizing effect on
India's border states.

● Influx of Refugees: The fighting has led to a significant influx of refugees into
Mizoram and Manipur, including thousands of civilians and defecting
Myanmarese soldiers. This has created a major humanitarian and
administrative challenge for the state governments.

● Transnational Crime: The porous and poorly-governed border remains a

major conduit for transnational crime, particularly the smuggling of illicit
drugs, arms, and wildlife products.

Conclusion:
The India-Myanmar relationship is at its most challenging juncture in decades.

The strategic imperative to engage Myanmar as the gateway to Southeast Asia

remains, but the on-the-ground reality of a full-blown civil war has rendered key
cooperation projects untenable for the foreseeable future.

India is forced to walk a diplomatic tightrope, engaging with an unpopular military

regime to safeguard its immediate security and strategic interests, while hoping for an
eventual return to stability and democracy.

The future of the relationship, and the success of the 'Act East' Policy itself, is
contingent on the political and security trajectory of post-coup Myanmar.

90 © 2025 ISSF
2.9 India-Afghanistan Relations

The relationship between India and Afghanistan is rooted in deep, civilizational ties
that span millennia. For India, a stable, peaceful, and sovereign Afghanistan is crucial
for regional security and connectivity.

Following two decades of robust partnership with the Islamic Republic of

Afghanistan, India's policy has entered a complex and cautious new phase since the
Taliban's return to power in August 2021, forcing a re-evaluation of its strategic,
security, and humanitarian engagement.

2.9.1 Historical Relations and Soft Power

The India-Afghanistan bond is not merely political; it is deeply embedded in shared
history and culture.

● Ancient Connections: The links date back to ancient times, including the
Gandhara civilization and the spread of Buddhism from India.

● Modern Ties: In the modern era, the relationship has been consistently
friendly, with the exception of the Taliban's first regime (1996-2001).

● Soft Power: India enjoys a tremendous reservoir of goodwill and soft power
among the Afghan people. This has been built through decades of
non-prescriptive development partnership and strong cultural resonance. Indian
films (Bollywood), music, and television shows are immensely popular across
Afghanistan, creating a unique and enduring people-to-people connection that
transcends political changes.

91 © 2025 ISSF
2.9.2 India's Development and Reconstruction Role (Pre-2021)
Between 2001 and 2021, India was one of the largest regional development partners
for Afghanistan, committing over USD 3 billion to the country's reconstruction.
India's assistance was demand-driven and focused on building infrastructure, capacity,
and institutions.

Key Flagship Projects:

● Afghan Parliament Building: A major symbol of India's commitment to

democracy in Afghanistan, the new parliament building in Kabul was
constructed and gifted by India.

● Salma Dam (Afghan-India Friendship Dam): Located in Herat province, this

major hydropower and irrigation dam was rebuilt and inaugurated with Indian
assistance, providing a vital lifeline for the region's agriculture and power
supply.

● Zaranj-Delaram Highway: A 218-km highway built by India's Border Roads

Organisation (BRO) in a challenging security environment. This road is
strategically crucial as it connects Afghanistan to Iran's Chabahar Port,
providing the landlocked country with alternative and reliable access to the sea,
bypassing Pakistan.

● Other Contributions: India's assistance also included building power

transmission lines, providing thousands of scholarships for Afghan students to
study in India, establishing health clinics, and gifting aircraft to the Afghan Air
Force.

2.9.3 The Post-Taliban Takeover (2021) Scenario

The collapse of the Islamic Republic and the return of the Taliban in August 2021
created a major strategic and security dilemma for India. After an initial period of
disengagement, India has adopted a pragmatic policy to protect its interests.

2.9.3.1 India's Current Policy and Engagement

● No Formal Recognition: India does not formally recognize the Taliban

regime (the Islamic Emirate of Afghanistan). It continues to call for the
formation of a truly inclusive and representative government in Kabul that
respects the rights of all Afghans, including women and minorities.

92 © 2025 ISSF
 ● Pragmatic Engagement: Despite non-recognition, India has pursued a policy
of direct engagement with the Taliban. In June 2022, India reopened its
embassy in Kabul, which is now staffed by a "technical team." This presence
allows India to oversee its humanitarian operations, engage with the Afghan
people, and maintain a channel of communication with the current
dispensation.

● Regional Diplomacy: India actively participates in regional dialogues on the

Afghan situation, such as the Moscow Format and other UN-led initiatives, to
build a regional consensus on security and stability.

2.9.3.2 Security Concerns for India

This is the paramount concern driving India's current policy.

● Terrorism: India's primary security fear is that Afghan soil could once again
be used as a safe haven for international terrorist groups that target India.

● Presence of Terror Groups: Despite the Taliban's assurances in the Doha

Agreement, UN reports and intelligence assessments confirm the continued
presence of UN-proscribed terrorist groups like Lashkar-e-Taiba (LeT) and
Jaish-e-Mohammed (JeM) in Afghanistan.

● The Haqqani Network: The prominent role of the Haqqani Network-a

US-designated terrorist organization with historically close ties to both the
Pakistani security establishment and anti-India terror groups-within the Taliban
regime is a source of grave concern for New Delhi.

2.9.3.3 Humanitarian Assistance

In line with its historical role as a partner to the Afghan people, India has continued to
provide significant humanitarian assistance to help avert a major crisis since the
Taliban takeover.

● Food Aid: India has delivered multiple shipments totaling over 50,000 metric
tonnes of wheat.

● Medical Supplies: It has supplied life-saving medicines, medical equipment,

and COVID-19 vaccines.

● Delivery Channels: This aid has been delivered in partnership with

international agencies like the UN World Food Programme (WFP) and the
UN Office on Drugs and Crime (UNODC) to ensure it reaches the intended
beneficiaries.

93 © 2025 ISSF
Conclusion:
India's policy towards Afghanistan is navigating a complex and uncertain landscape.
While the robust developmental partnership of the past has been disrupted, India has
not disengaged.

Its current approach is a carefully calibrated balancing act: providing crucial

humanitarian aid to the Afghan people, maintaining a pragmatic channel of
communication with the Taliban to protect its security interests, and working with
regional partners to prevent Afghanistan from once again becoming an epicenter of
international terrorism.

The future of the relationship will depend on the actions of the Taliban regime,
particularly on its commitments to counter-terrorism and the formation of an inclusive
political system.

94 © 2025 ISSF
Part C: Bilateral, Regional and Global Groupings & Agreements
3.0 India's Bilateral Strategic Partnerships
In the post-Cold War era, India has moved away from its traditional policy of
non-alignment to a more pragmatic approach of "multi-alignment," building a network
of issue-based Strategic Partnerships with key countries across the globe.

These partnerships are characterized by a high degree of trust, deep and multi-faceted
cooperation, and a convergence of interests on major regional and global issues.

Among these, the partnership with the United States has emerged as arguably the most
consequential for India's foreign policy.

3.1 India-USA Relations

Introduction: From Estranged Democracies to a Comprehensive
Global Strategic Partnership
The relationship between India and the United States, the world's oldest and largest
democracies, has undergone a profound transformation.

After decades of being "estranged democracies" during the Cold War due to India's
policy of Non-Alignment and its perceived proximity to the Soviet Union, the
relationship began a gradual thaw in the 1990s.

The pivotal moment came with the signing of the Indo-US Civil Nuclear Deal in
2008, which ended India's nuclear isolation and laid the foundation for a deep and
broad-based partnership.

Today, the relationship is officially designated as a "Comprehensive Global

Strategic Partnership." It is built on a foundation of shared democratic values, a

95 © 2025 ISSF
growing convergence of strategic interests, and robust economic and people-to-people
ties.

The partnership is a key pillar of India's foreign policy and is critical for its ambitions
to play a leading role on the global stage.

Pillars of the India-USA Partnership

The cooperation between the two countries is exceptionally broad, spanning defense,
technology, economy, and global governance.

1. Defence and Security Cooperation:

This is the most dynamic and rapidly growing pillar of the partnership, driven by a
shared concern over China's growing assertiveness.

● Major Defense Partner: The US has designated India as a "Major Defense

Partner," a unique status that allows India to access advanced and sensitive
military technology on par with America's closest allies.

● Foundational Agreements: The two countries have signed all four

foundational defense agreements, which enable deep interoperability between
their militaries:

1. GSOMIA (2002): For sharing military intelligence.

2. LEMOA (2016): For reciprocal logistical support (access to each

other's military bases for fuel and supplies).

3. COMCASA (2018): For secure, encrypted communications

interoperability.

4. BECA (2020): For sharing high-end geospatial intelligence.

● Arms Procurement and Co-production: The US has become one of India's

top defense suppliers.

Recent landmark deals include the procurement of 31 MQ-9B armed drones

and a path-breaking agreement for the joint manufacturing of GE F414 jet
engines in India under the "Make in India" initiative.

● Joint Exercises: The two militaries conduct a vast array of joint exercises, the
most prominent being the Malabar naval exercise (which also includes Japan
and Australia) and the Yudh Abhyas army exercise.

96 © 2025 ISSF
2. Economic and Technological Cooperation:
The US is India's largest trading partner and a key source of technology and
investment.

● Bilateral Trade: Two-way trade in goods and services exceeded $190 billion
in 2024, with the trade balance being in India's favor.

● Initiative on Critical and Emerging Technology (iCET): Launched in 2023,

the iCET is a flagship initiative aimed at building a technology ecosystem that
can counter China's dominance.

● Key outcomes from the most recent iCET dialogue in February 2025 include:

○ Semiconductors: US firm Micron is setting up a major semiconductor

assembly and test facility in Gujarat, with US government support.

○ Space: India has signed the Artemis Accords, paving the way for
deeper cooperation in space exploration, including a joint mission to the
International Space Station.

○ Quantum & AI: A joint Indo-US Quantum Coordination Mechanism

has been established to advance cooperation in this critical field.

3. Indo-Pacific Strategy and the Quad:

There is a strong strategic convergence between India's 'Act East' policy and the US
Indo-Pacific Strategy.

● Shared Vision: Both countries are committed to ensuring a free, open,

inclusive, and rules-based Indo-Pacific, which is widely seen as a
collaborative framework to manage the challenges posed by China.

● The Quad: The Quadrilateral Security Dialogue (India, US, Japan, Australia)
has been elevated to the leaders' level and has become the primary platform for
coordinating the strategic efforts of the four democracies in the region.

● The Quad's agenda focuses on practical cooperation in areas like vaccine

delivery, climate change, infrastructure, and maritime domain awareness. 2

97 © 2025 ISSF
4. The Role of the Indian Diaspora:
The vibrant Indian-American community is a unique and powerful asset for the
bilateral relationship.

● Size and Influence: Numbering around 4.5 million, the Indian-American

community is one of the most affluent and well-educated diaspora groups in the
US. They play a significant role in the fields of technology, medicine, business,
and politics.21

● A "Living Bridge": The diaspora acts as a "living bridge" between the two
countries, fostering greater understanding, promoting economic ties, and
advocating for a stronger bilateral relationship within the American political
system. The record number of Indian students in the US (over 270,000) further
strengthens these people-to-people ties.

Areas of Divergence and Friction

Despite the overall positive trajectory, the relationship is not without its challenges
and areas of disagreement.

● Differing Stance on Russia: India's long-standing and time-tested defense

relationship with Russia and its policy of strategic autonomy, reflected in its
neutral stance on the Ukraine conflict, remains a point of divergence from the
US position.

● Trade Disputes: While bilateral trade is booming, issues related to tariffs,

market access for agricultural and dairy products, and intellectual property
rights (IPR) continue to be sources of friction.

● Concerns on Democracy and Human Rights: Annual reports from the US

State Department and other US-based organizations on religious freedom and
the state of democracy in India are often critical and are seen as an irritant by
the Indian government, which considers them intrusive and biased.

Conclusion:
The India-US partnership has evolved into a deep, resilient, and multi-faceted
relationship that is indispensable for both nations. Driven by a powerful convergence
of strategic interests, particularly in the Indo-Pacific, the partnership is set to deepen
further in the coming years.

98 © 2025 ISSF
3.2 India-Russia Relations

Introduction: A "Special and Privileged Strategic Partnership"

The relationship between India and Russia is characterized by a remarkable degree of
continuity and trust, evolving from a deep strategic alignment during the Cold War to
what is now officially designated as a "Special and Privileged Strategic
Partnership."

It is a time-tested relationship that has remained robust despite significant

transformations in the global geopolitical landscape. Anchored by strong cooperation
in defence, energy, and space technology, the partnership is a key pillar of India's
foreign policy, reflecting a shared vision for a multipolar world order.

However, in the current era, this enduring partnership faces unprecedented challenges
due to the war in Ukraine and the deepening Russia-China strategic axis.

Historical Evolution
● The Cold War Era: During the Cold War, the Soviet Union was India's most
important strategic and defense partner. The signing of the Indo-Soviet Treaty
of Peace, Friendship and Cooperation in 1971 was a landmark event.

● It provided India with a security guarantee that deterred US-China intervention

during the Bangladesh Liberation War and cemented the strategic alignment
between the two nations.

● Post-Soviet Recalibration: After the collapse of the USSR in 1991, the

relationship went through a brief period of uncertainty. However, both
countries skillfully managed to recalibrate their ties, preserving the core of
their partnership.

99 © 2025 ISSF
 ● This was institutionalized through the establishment of the Annual Summit
mechanism in 2000 and the elevation of the relationship to a "Special and
Privileged Strategic Partnership" in 2010.

Pillars of the India-Russia Partnership

The cooperation between the two countries is deep and multi-faceted, with three
pillars standing out.

1. Defence and Military-Technical Cooperation:

This is the foundational bedrock of the relationship.

● Largest Arms Supplier: Russia has historically been and remains India's
largest supplier of military hardware, accounting for a significant percentage of
its arsenal.

● Key Platforms: This includes critical platforms like Sukhoi Su-30MKI fighter
jets, T-90 tanks, nuclear-powered submarines (INS Chakra), and aircraft
carriers (INS Vikramaditya).

● S-400 Triumf Missile System: Despite the threat of US sanctions under

CAATSA, India has proceeded with the procurement of this advanced air
defense system. Deliveries are ongoing as of early 2025, underscoring the
depth of the strategic commitment.

● Joint Ventures and Technology Transfer: The partnership has evolved from a
simple buyer-seller relationship to one involving joint research, development,
and production. Key examples include the manufacturing of BrahMos
supersonic cruise missiles and the production of AK-203 assault rifles in
India.

2. Economic Relations:
While historically modest, economic ties have surged recently, driven by energy trade.

● Bilateral Trade: Trade has witnessed a massive boom, reaching a record high
of over $65 billion in 2024.

● Crude Oil Imports: This surge is almost entirely driven by India's decision to
increase its import of discounted Russian crude oil following the war in
Ukraine.11 Russia has emerged as India's top oil supplier, surpassing traditional
Middle Eastern suppliers.

100 © 2025 ISSF

 ● Payment Mechanism Challenges: Western sanctions on Russia have created
significant challenges for payment settlement. The rupee-ruble mechanism
has not been fully successful, leading to a situation where billions of rupees
belonging to Russian exporters have accumulated in Indian banks, creating a
trade imbalance issue that both sides are trying to resolve.

3. Energy and Nuclear Cooperation:

● Nuclear Power: Russia is a key partner in India's civil nuclear energy
program. It is building the Kudankulam Nuclear Power Plant (KKNPP) in
Tamil Nadu, the largest nuclear power station in India. Construction of new
units (3, 4, 5, and 6) is underway with Russian assistance.

● Hydrocarbons: Indian public sector companies have invested significantly in

Russian oil and gas fields, such as Sakhalin-1 and Vankorneft.

4. Cooperation on Multilateral Forums:

India and Russia share a close alignment on the need for a multipolar global order.
They cooperate closely in forums like the United Nations, BRICS, and the Shanghai
Cooperation Organisation (SCO), often sharing similar positions on issues of global
governance and international law.

Contemporary Challenges and Strategic Divergences

The time-tested partnership is currently facing its most significant challenges since the
end of the Cold War.

● The Deepening Russia-China Axis: This is the single biggest long-term

strategic challenge for India. The growing "no limits" partnership between
Russia and China, India's primary adversary, creates a complex geopolitical
triangle.

India is concerned about:

○ The potential for Russia to share sensitive military technology with

China.

○ A coordinated diplomatic front by Moscow and Beijing that could be

detrimental to India's interests in the Indo-Pacific and on global
platforms.

101 © 2025 ISSF

 ● Impact of the Ukraine War:

○ Diplomatic Balancing Act: The war has put India in a difficult

diplomatic position. It has abstained from condemning Russia at the UN
and has increased its oil imports, drawing criticism from the West.

This requires India to constantly balance its relationship with Russia

against its deepening partnerships with the US and Europe.

○ Defense Supply Reliability: The conflict has raised serious questions

about Russia's long-term capacity to remain a reliable supplier of
sophisticated military hardware and, crucially, spare parts for India's
vast inventory of Russian-origin equipment.

● Russia's Engagement with Pakistan and the Taliban: While Russia has
assured India that its ties with Pakistan will not be at India's expense, its past
military exercises with Pakistan and its engagement with the Taliban in
Afghanistan remain areas of concern for New Delhi.

Conclusion:
The India-Russia relationship is a unique and enduring partnership built on a legacy of
trust and convergent strategic interests. The defense and energy pillars remain
exceptionally strong.

However, the partnership is navigating a period of unprecedented geopolitical

turbulence. The primary challenge for Indian diplomacy is to manage the growing
strategic embrace between Russia and China while preserving the core of its own
"special and privileged" relationship with Moscow.

India's ability to maintain its strategic autonomy and skillfully balance its ties with
both Russia and the West will be critical in securing its national interests in a rapidly
changing world.

102 © 2025 ISSF

3.3 India-Japan Relations

Introduction: A "Special Strategic and Global Partnership"

The relationship between India and Japan is one of the most important and robust
bilateral partnerships in the Indo-Pacific region.

Rooted in a long history of positive cultural and spiritual exchanges and free from any
major disputes, the relationship has transformed into a deep and multifaceted "Special
Strategic and Global Partnership."

Driven by a strong convergence of political, economic, and strategic interests, the

partnership is a cornerstone of both countries' foreign policies and a critical factor for
ensuring peace, stability, and a rules-based order in Asia and the wider world.

Historical Context
The India-Japan relationship has a unique historical foundation built on mutual respect
and goodwill.

● Ancient Ties: The links between the two nations date back to the 6th century
when Buddhism was introduced to Japan from India. This spiritual and cultural
connection has created a lasting reservoir of positive sentiment.

● Post-War Partnership: In the post-World War II era, India was one of the first
countries to sign a separate peace treaty with Japan in 1952 and did not demand
war reparations, a gesture that was deeply appreciated by Japan. The
partnership was further cemented by Japan's initiation of its Official
Development Assistance (ODA) program with India in 1958.

103 © 2025 ISSF

Pillars of the Partnership
The contemporary India-Japan relationship is built on three strong pillars: economic
cooperation, defense and security ties, and strategic convergence.

1. Economic and Infrastructure Cooperation:

This is the bedrock of the partnership, with Japan being a vital partner in India's
economic and infrastructure transformation.

● Investment and ODA: Japan is one of the largest investors in India. A

landmark JPY 5 trillion (approx. USD 33.5 billion) public and private
investment and financing target was set in 2022 for the next five years.
Japan's ODA, provided through the Japan International Cooperation
Agency (JICA), has been instrumental in funding some of India's most
ambitious infrastructure projects.

● Flagship Projects:

○ Mumbai-Ahmedabad High-Speed Rail (MAHSR): This "bullet train"

project is the most iconic symbol of the partnership. After facing initial
delays, construction has significantly accelerated as of mid-2025, with
the first operational segment targeted for 2027.

○ Dedicated Freight Corridors (DFCs): Japan has been a key partner in

the development of the Western DFC.

○ Urban Infrastructure: Japan has funded numerous metro rail projects

across India, including in Delhi, Bengaluru, and Chennai.

● Technology & Skilled Workforce:

○ The two countries are collaborating in areas like 5G/6G technology,

Artificial Intelligence, and digital transformation.

○ The Specified Skilled Worker (SSW) agreement is now operational,

facilitating the movement of skilled Indian workers to Japan to address
its demographic challenges, with the first batches having arrived in early
2025.

104 © 2025 ISSF

2. Defence and Security Cooperation:
This is the most rapidly growing dimension of the relationship, driven by shared
security concerns.

● Joint Exercises: The armed forces of both countries conduct a sophisticated

series of joint exercises, demonstrating high levels of interoperability: 1

● "Dharma Guardian" (Army)

○ "Veer Guardian" (Air Force)

○ "JIMEX" (Navy)

○ Malabar Exercise: Japan is a permanent member of this multilateral

naval exercise along with India, the US, and Australia.

● Foundational Agreements: The signing of the Acquisition and

Cross-Servicing Agreement (ACSA) in 2020 was a major milestone. This
agreement allows the armed forces of both countries to share supplies and
services, significantly deepening their logistical cooperation.

● Defence Equipment and Technology Cooperation: Both sides are exploring

opportunities for the joint development and production of defense equipment.

3. Strategic Convergence: A Free and Open Indo-Pacific

The strategic partnership is fundamentally driven by a shared vision for the regional
order, primarily as a response to China's growing assertiveness.

● Synergy of Visions: There is a powerful synergy between Japan's vision for a

"Free and Open Indo-Pacific (FOIP)" and India's "Act East" Policy and
SAGAR (Security and Growth for All in the Region) doctrine.

● Both frameworks emphasize the importance of a rules-based international

order, freedom of navigation and overflight, peaceful resolution of disputes,
and respect for international law.

● The Quad: The Quadrilateral Security Dialogue (India, Japan, US, Australia)
is the primary platform for operationalizing this shared vision. India and Japan
are two of the most enthusiastic and committed pillars of the Quad, using it to
coordinate on issues ranging from maritime security and infrastructure
development to critical technologies and climate change.

105 © 2025 ISSF

 ● Cooperation in Third Countries: India and Japan are collaborating on
infrastructure and connectivity projects in third countries to provide a
transparent and sustainable alternative to China's Belt and Road Initiative.

The initial framework for this was the Asia-Africa Growth Corridor
(AAGC), and the principles continue to guide joint projects in countries like
Sri Lanka and Bangladesh.

Conclusion: A Partnership for the 21st Century

The India-Japan relationship has evolved into one of India's most important and
reliable partnerships. It is a relationship free from conflict, built on a foundation of
trust, shared values of democracy and rule of law, and a powerful convergence of
strategic interests.

As two of Asia's leading democracies and major economies, their ability to work
together is critical for shaping a stable and prosperous Indo-Pacific.

The partnership is no longer just about bilateral benefits; it is a "Special Strategic and
Global Partnership" that has a direct and significant bearing on the future of the
regional and global order.

106 © 2025 ISSF

3.4 India-France Relations

Introduction: A Time-Tested Strategic Partnership

The relationship between India and France is one of India's oldest, most trusted, and
most consequential strategic partnerships.

Established in 1998, the partnership is built on a foundation of deep political trust, a

remarkable convergence of strategic interests, and a shared commitment to the
principle of "strategic autonomy"-the ability to conduct an independent foreign
policy.

As two resident powers in the Indo-Pacific with a shared vision for a multipolar world
order, the India-France partnership has emerged as a crucial anchor of stability in an
increasingly turbulent global environment.

Historical Context: A Foundation of Trust

The India-France relationship has been consistently strong, but a defining moment
cemented the deep trust between the two nations.

● Post-Pokhran-II Support (1998): After India conducted its nuclear tests in

1998 (Pokhran-II), most Western powers, led by the United States, imposed
stringent sanctions.

● In a significant gesture of support, France refused to join the sanctions

regime. This act of standing by India at a critical time laid the foundation for a
deep and enduring political understanding and paved the way for the
establishment of the formal Strategic Partnership that same year.

107 © 2025 ISSF

Pillars of the Partnership
The cooperation between India and France is exceptionally deep and is often
described as a partnership "of the heart as much as of the mind."

It is built on three core pillars:

1. Defence and Security Cooperation:

This is the strongest and most visible pillar of the relationship, making France one of
India's most important defense partners.

● Key Defence Platforms: France has supplied India with some of its most
advanced military hardware.

○ Rafale Fighter Jets: The acquisition of 36 Rafale jets for the Indian
Air Force has been a landmark deal, significantly enhancing India's air
power.

○ Scorpene-class Submarines: Six Scorpene submarines have been built

in India by Mazagon Dock Shipbuilders Limited (MDL) with
technology transfer from France's Naval Group.

● New Acquisitions and Co-development: The partnership is moving towards

co-development and co-production under the "Make in India" initiative.

○ As of mid-2025, negotiations are in advanced stages for the procurement

of 26 Rafale-M (Marine) jets for the Indian Navy's aircraft carriers and
three additional Scorpene submarines.

○ A key future project is the joint development of a new combat aircraft

engine in India by France's Safran and India's DRDO.

● Joint Exercises: The armed forces of both countries conduct a regular and
sophisticated series of exercises, enhancing their interoperability:

○ Varuna (Navy)

○ Garuda (Air Force)

○ Shakti (Army)

108 © 2025 ISSF

2. Civil Nuclear Cooperation:
France was the first country to sign a civil nuclear cooperation agreement with India
after the Nuclear Suppliers Group (NSG) granted India a waiver in 2008.

● Jaitapur Nuclear Power Plant (JNPP): The flagship project of this

cooperation is the proposed construction of the world's largest nuclear power
plant at Jaitapur in Maharashtra. The project involves building six European
Pressurized Reactors (EPRs) with a total capacity of 9.6 GW with French
assistance.

● Current Status: While the project is of immense strategic importance, it has

faced significant delays due to complex issues related to liability, financing,
and local opposition. However, both governments remain committed to
resolving these issues and moving the project forward.

3. Space Cooperation:
The partnership in space between the Indian Space Research Organisation (ISRO) and
the French Space Agency (CNES) is one of the oldest and most robust in the world,
dating back to the 1960s.

● Joint Missions: The two agencies are collaborating on several key missions,
including the TRISHNA (Thermal Infrared Imaging Satellite for
High-resolution Natural Resource Assessment) satellite for climate monitoring
and a joint maritime surveillance satellite system.

● Gaganyaan Mission: France is a key partner in India's ambitious Gaganyaan

human spaceflight mission. CNES is providing support in areas like space
medicine, astronaut health monitoring, and life support systems, including
training for Indian flight physicians.

Strategic Convergence in the Indo-Pacific

The strategic alignment between India and France is most evident in their shared
vision for the Indo-Pacific.

● A Shared Vision: Both India and France are resident powers in the
Indo-Pacific (France through its overseas territories like Reunion Island and
New Caledonia). They share a common goal of ensuring a free, open,
inclusive, and multipolar Indo-Pacific, free from any single country's
hegemony.

109 © 2025 ISSF

 ● Trilateral Cooperation: To operationalize this vision, India and France have
pioneered trilateral cooperation frameworks with other like-minded partners:

○ India-France-Australia Trilateral Dialogue: Focused on maritime

security, environmental cooperation, and multilateralism.

○ India-France-UAE Trilateral Cooperation: Focused on designing and

executing projects in clean energy, defense, and climate action.

Conclusion: A Partnership of Trust and Ambition

The India-France Strategic Partnership is a model of trust, reliability, and shared
values. It is a relationship that has consistently delivered on its promises, particularly
in the sensitive domains of defense and security.

Driven by a powerful convergence of interests in the Indo-Pacific and a shared

commitment to strategic autonomy, the partnership is not just bilateral but has a direct
and positive impact on regional and global stability.

The ambitious roadmap laid out during the French President's visit in 2024 aims to
further deepen this "all-weather" partnership, making it a central pillar of India's
engagement with Europe and a key alliance for shaping the 21st-century global order.

110 © 2025 ISSF

3.5 India-UK Relations

Introduction: A Modern, Comprehensive Strategic Partnership

The relationship between India and the United Kingdom is a multifaceted partnership,
deeply rooted in a shared history, which has evolved from a colonial past into a
contemporary relationship based on mutual respect, shared democratic values, and
converging strategic interests.

In 2021, the relationship was formally elevated to a "Comprehensive Strategic

Partnership," with both nations agreeing on an ambitious "Roadmap 2030" to
guide their cooperation over the next decade.

This framework aims to significantly expand collaboration in key areas like trade,
defence, climate change, and health.

Historical Context: From Colonial Rule to a Partnership of Equals

The history between the two nations is complex, defined by nearly 200 years of
British colonial rule in India. After India's independence in 1947, the relationship was
gradually reset.

India's decision to join the Commonwealth of Nations was a key step in transforming
the old imperial relationship into a voluntary association of sovereign equals.

While the colonial legacy remains a part of the historical narrative, the modern
relationship is forward-looking, focusing on shared opportunities and challenges in the
21st century.

111 © 2025 ISSF

Pillars of the "Roadmap 2030"
The "Roadmap 2030" provides a structured framework for cooperation, built on
several key pillars.

1. Economic and Trade Ties:

This is a central focus of the partnership, with the ongoing negotiations for a Free
Trade Agreement (FTA) being the most significant initiative.

● Bilateral Trade: The UK is a major trading partner for India. Bilateral trade in
goods and services stood at £38.1 billion for the fiscal year ending in March
2024. The UK is also one of the largest foreign investors in India.

● Free Trade Agreement (FTA) Negotiations:

○ Objective: To sign a comprehensive and ambitious FTA that could
potentially double bilateral trade by 2030.

○ Current Status (as of July 2025): The negotiations, which began in

2022, are in an advanced but stalled stage. After more than 14 rounds
of talks, a final agreement has been delayed due to national elections in
both countries and persistent differences on critical issues.

○ Key Sticking Points: The UK is seeking significant tariff reductions on

its key exports like scotch whisky, automobiles, and confectionery.
India, in return, is demanding more liberal visa access for its skilled
professionals and students under the UK's skilled worker visa route
and a favourable agreement on data adequacy.

2. Defence and Security Cooperation:

This is a rapidly growing area of convergence, driven by shared interests in the
Indo-Pacific.

● Joint Exercises: The armed forces of both countries conduct a regular series of
exercises to enhance interoperability:

○ 'Ajeya Warrior' (Army)

○ 'Konkan' (Navy)

○ 'Indra Dhanush' (Air Force)

● Maritime Partnership: The UK has adopted a significant "tilt" towards the

Indo-Pacific. Its Carrier Strike Group is scheduled to visit the Indian Ocean

112 © 2025 ISSF

 region again in 2025 for joint exercises with the Indian Navy, highlighting the
growing maritime partnership.

● Counter-Terrorism and Cybersecurity: Both nations have robust

mechanisms for sharing intelligence and coordinating efforts to combat
international terrorism and cyber threats.

3. People-to-People Links and the Diaspora:

The human connection between the two countries is exceptionally strong and forms
the "living bridge" of the relationship.

● The Indian Diaspora: The large and influential Indian diaspora in the UK
(around 1.5 million people) plays a vital role in the economic, political, and
cultural life of the country, significantly strengthening bilateral ties.

● Migration and Mobility Partnership (MMP): Signed in 2021, this agreement

aims to facilitate legal migration for students and professionals. Indians are
now the largest group of foreign students and skilled worker visa recipients in
the UK.

● Challenges: The implementation of the MMP has faced challenges, with the
UK raising concerns about the slow pace of return of illegal Indian migrants,
which has become a point of diplomatic discussion.

Challenges and Irritants in the Relationship

Despite the strong partnership, several issues continue to pose challenges.

● Pro-Khalistan Extremism in the UK: This is a major security concern and

a primary irritant for India. New Delhi has repeatedly voiced its strong
objections to the space and freedom enjoyed by anti-India extremist and
separatist elements in the UK, who engage in fundraising, radicalization, and
attacks on Indian institutions, such as the assault on the Indian High
Commission in London.

● While the UK government has offered assurances of action, India expects more
concrete and demonstrable measures to curb these activities.

● Legacy of Colonialism and Perceptions: The historical baggage of

colonialism occasionally surfaces. Critical reports from the UK media (like the
BBC) or statements from UK parliamentarians on India's internal matters, such

113 © 2025 ISSF

 as the human rights situation in Kashmir, are viewed by India as intrusive,
biased, and reflecting a colonial mindset.

● FTA Deadlock: The inability to conclude the FTA despite prolonged

negotiations has been a setback, indicating that significant differences in
economic interests and regulatory standards persist.

Conclusion:
The India-UK relationship is a mature and comprehensive partnership with deep
historical roots and a forward-looking agenda. The "Roadmap 2030" provides a clear
and ambitious framework for growth.

The strategic convergence, particularly in the Indo-Pacific, and the strong economic
and people-to-people ties are powerful drivers of the relationship.

However, for the partnership to achieve its full potential, it is crucial for both sides to
address the core challenges.

Concluding the FTA would provide a major economic boost, while more decisive
action by the UK to address India's security concerns regarding pro-Khalistan
extremism is essential for building deeper political trust.

114 © 2025 ISSF

3.6 India-Australia Relations

Introduction: A Remarkable Transformation to a Comprehensive

Strategic Partnership
The relationship between India and Australia has undergone a remarkable
transformation over the past decade, evolving from a relatively distant and
under-realized partnership into a first-tier strategic alignment.

In 2020, the relationship was elevated to a "Comprehensive Strategic Partnership,"

reflecting a deep convergence of interests, shared democratic values, and a common
vision for a stable and prosperous Indo-Pacific.

This rapid deepening of ties is one of the most significant developments in India's
foreign policy and is a direct response to the changing geopolitical landscape of the
region.

Historical Context
Historically, the relationship was cordial but lacked strategic depth. As members of
the Commonwealth, the two nations shared common democratic traditions and
sporting ties (especially cricket).

However, during the Cold War, their different foreign policy alignments-India's
Non-Alignment and Australia's firm alliance with the United States-created a distance.

The relationship began to gain momentum in the 21st century, but the current
hyper-drive is a more recent phenomenon, catalyzed by shared strategic concerns.

115 © 2025 ISSF

Pillars of the Partnership
The contemporary India-Australia relationship is built on what is often referred to as
the "three C's" – Commerce, Culture, and Connectivity, which are underpinned by a
fourth, crucial "C" – a Convergence of strategic interests.

The partnership is being implemented through a wide range of initiatives.

1. Economic Cooperation:
This is a rapidly expanding pillar, with a focus on creating a more integrated
economic relationship.

● ECTA and CECA:

○ The Economic Cooperation and Trade Agreement (ECTA), an

interim free trade deal, came into force in December 2022. It has
provided a significant boost to bilateral trade by eliminating tariffs on
over 85% of Australian goods exported to India and 96% of Indian
goods exported to Australia.

○ Negotiations are ongoing for a full Comprehensive Economic

Cooperation Agreement (CECA). As of mid-2025, talks are focused
on the more complex issues of digital trade, services, and investment
rules.

● Bilateral Trade: Two-way trade in goods and services is robust, having

exceeded $30 billion, with significant potential for further growth under the
CECA.

● Critical Minerals Partnership: This has emerged as a key new area of

cooperation. Australia, with its vast reserves of lithium, cobalt, and rare earth
elements, and India, with its growing demand for these minerals for its
manufacturing and technology sectors (especially for batteries and EVs), are
working to build a resilient and secure critical minerals supply chain.

2. Defence and Security Cooperation:

This is the fastest-growing and most significant pillar of the relationship, driven by the
shared challenge of an assertive China.

● Joint Exercises: The armed forces of both countries have achieved a high level
of interoperability through a regular series of sophisticated exercises:

116 © 2025 ISSF

 ○ Malabar: Australia is a permanent member of this top-tier multilateral
naval exercise, alongside India, the US, and Japan.

○ AUSTRAHIND (Army)

○ AUSINDEX (Navy)

● Mutual Logistics Support Agreement (MLSA): This foundational

agreement, signed in 2020, allows the two militaries to access each other's
bases for logistical support, supplies, and repairs, significantly enhancing their
operational reach.

● Maritime Domain Awareness: Both countries are collaborating closely on

enhancing maritime security and domain awareness in the Indian Ocean and
the Pacific.

3. People-to-People Links: The "Living Bridge"

The human connection between the two nations is exceptionally strong and acts as a
major asset for the relationship.

● The Indian Diaspora: The large and vibrant Indian diaspora in Australia (over
700,000 strong) is now the country's second-largest immigrant group.17 It plays
a vital role in every sphere of Australian society and acts as a powerful "living
bridge."

● Education: Education is a flagship area of cooperation. In a landmark

development, two Australian universities, Deakin University and the
University of Wollongong, became the first foreign universities to establish
campuses in India (in GIFT City, Gujarat) in 2024.

● Migration and Mobility: The Migration and Mobility Partnership

Agreement (MMPA) facilitates the movement of students, academics, and
professionals, further strengthening the human connection.

Strategic Convergence: The Quad and the Indo-Pacific

The core driver of the India-Australia strategic partnership is a profound and
unambiguous convergence on the future of the Indo-Pacific region.

● The Shared China Challenge: Both India and Australia view the rise of an
assertive and unilateralist China as the primary challenge to regional stability

117 © 2025 ISSF

 and a rules-based order. Both have faced direct political and economic pressure
from Beijing, which has solidified their strategic alignment.

● A Free and Open Indo-Pacific (FOIP): Both nations are champions of a

FOIP, a vision that emphasizes freedom of navigation and overflight, respect
for international law (especially UNCLOS), peaceful resolution of disputes,
and a multipolar regional order where no single country can dominate.

● The Quad: The Quadrilateral Security Dialogue (India, Australia, US, Japan)
is the principal platform for operationalizing this shared vision. It allows the
four leading maritime democracies of the Indo-Pacific to coordinate their
policies and engage in practical cooperation on a wide range of issues, from
maritime security and infrastructure to critical technology and public health.

Conclusion:
The India-Australia relationship has transformed from one of "potential" to a
partnership of "purpose." It is now a central pillar of India's Indo-Pacific strategy and
a vital alliance for managing the strategic challenges of the 21st century.

Driven by shared democratic values and a powerful convergence of interests, the

partnership is set to deepen further across the economic, security, and technological
domains.

The collaboration within the Quad and the focus on building resilient supply chains
and a rules-based regional order make the India-Australia partnership not just a
benefit to the two countries, but a significant contributor to regional stability and
prosperity.

118 © 2025 ISSF

3.7 India-Israel Relations

Introduction: A Pragmatic and Robust Strategic Partnership

The relationship between India and Israel is a modern, pragmatic, and robust
Strategic Partnership driven by a powerful convergence of interests in defence,
agriculture, and technology.

After decades of maintaining a distant relationship, the establishment of full

diplomatic ties in 1992 unleashed the immense potential for cooperation.

The partnership has since grown exponentially, particularly after 2014, becoming one
of India's most significant and trusted relationships.

It is a partnership built not on a shared historical past, but on a shared vision for a
secure and technologically advanced future.

Historical Evolution: From Caution to Open Embrace

The trajectory of India-Israel relations has been unique.

● Early Phase (1948-1991): India officially recognized the State of Israel in

1950. However, for the next four decades, it refrained from establishing full
diplomatic relations. This was primarily due to India's foreign policy of
Non-Alignment, its solidarity with the Arab cause, and its domestic political
considerations.

● The Turning Point (1992): With the end of the Cold War and the launch of
India's economic liberalization, the pragmatic need for advanced technology
and defence equipment led Prime Minister P.V. Narasimha Rao to establish full
diplomatic relations with Israel in January 1992.

119 © 2025 ISSF

 ● Post-2014 Acceleration: The relationship was "de-hyphenated" and brought
out into the open after 2014, with regular high-level visits between the leaders
of both countries. This marked a shift from a partnership that was largely
behind the scenes to a publicly celebrated strategic alliance.

Pillars of the Partnership

The cooperation between India and Israel is often described as being built on the
"three Ds" – Defence, Diamonds, and Development (Agriculture & Technology).

1. Defence and Security Cooperation:

This is the foundational and most critical pillar of the relationship.

● Top Defence Supplier: Israel has consistently been one of India's top three
suppliers of military hardware. Its willingness to provide cutting-edge,
battle-tested technology without political strings attached is highly valued by
India.

● Key Platforms and Technologies: Israel supplies India with a wide range of
critical defense equipment, including:

○ Air Defence Systems: The Barak-8 surface-to-air missile system,

jointly developed by India's DRDO and Israel Aerospace Industries
(IAI), is a prime example of successful co-development.

○ Drones and UAVs: Israeli drones, such as the Heron and Searcher
UAVs, are the backbone of India's surveillance and reconnaissance
capabilities.

○ Missiles, Radars, and Avionics: Israel provides a variety of

precision-guided munitions, advanced radars, and electronic warfare
systems that have been integrated into various Indian platforms.

● Counter-Terrorism and Intelligence Sharing: Cooperation in this area is

deep and robust, involving the sharing of real-time intelligence, joint training,
and the exchange of best practices for combating terrorism.

120 © 2025 ISSF

2. Agriculture and Water Management ("Labs to Land"):
This is the most visible and impactful area of cooperation for the common citizen in
India.

● Indo-Israel Centers of Excellence: The Indo-Israeli Agriculture Project has

led to the establishment of dozens of "Centers of Excellence" across various
Indian states. These centers demonstrate and disseminate advanced Israeli
agricultural technologies (like drip irrigation, protected cultivation, and
horticulture techniques) to Indian farmers, significantly boosting crop yields
and water efficiency.

● Water Technology: As a world leader in water management, Israel is a key

partner in helping India address its water scarcity challenges. This includes
cooperation in desalination, wastewater treatment and recycling, and
efficient water resource management.

3. Technology and Innovation:

The partnership leverages the synergy between Israel's "start-up nation" ecosystem
and India's vast market and IT talent pool.

● I4F Fund: The India-Israel Industrial R&D and Technological Innovation

Fund (I4F) is a joint fund to encourage and support collaborative industrial
R&D projects between companies from both countries.

● Start-up and Cybersecurity Cooperation: There is strong collaboration

between the start-up ecosystems of both nations, particularly in high-tech fields
like cybersecurity, fintech, and health-tech.

Strategic Dimensions and India's Diplomatic Balancing Act

A key feature of India's engagement with Israel is its ability to manage this
relationship without compromising its ties with other nations in the region.

● The "De-hyphenation" Policy: India has successfully "de-hyphenated" its

relationship with Israel from its relationship with Palestine and the wider Arab
world.

● This means India engages with Israel on the merits of the bilateral partnership,
while independently maintaining its long-standing political and economic ties
with Arab nations and its traditional support for a two-state solution to the
Israeli-Palestinian conflict.

121 © 2025 ISSF

 ● India's ability to condemn the October 7th terror attacks while also sending
humanitarian aid to Gaza and consistently calling for a two-state solution is a
prime example of this nuanced diplomatic balancing act.

● The I2U2 Group (India, Israel, UAE, USA): This new plurilateral grouping
is a direct outcome of India's de-hyphenation policy and the changing
geopolitics of the Middle East (Abraham Accords).

● The I2U2 initiative aims to leverage the strengths of the four countries for joint
investments and projects in key areas like water, energy, transportation, and
food security, creating a new corridor of economic and technological
cooperation.

Conclusion:
The India-Israel Strategic Partnership is a testament to pragmatic, interest-driven
foreign policy. It has evolved from a cautious, behind-the-scenes engagement into a
deep, open, and multi-dimensional alliance that is critical for India's national security
and technological advancement.

The partnership's strength lies in its focus on concrete deliverables in defence,

agriculture, and technology.

By skillfully de-hyphenating its regional relationships, India has demonstrated that it

can be a close strategic partner to both Israel and the Arab world, positioning itself as
a unique and stabilizing force in a complex and volatile region.

122 © 2025 ISSF

3.8 India-Germany Relations

Introduction: A Strategic Partnership Anchored in Economic and Green

Cooperation
The relationship between India and Germany is a robust and multi-faceted "Strategic
Partnership," built on a strong foundation of shared democratic values, a
commitment to multilateralism, and exceptionally deep economic ties.

Germany is India's most important partner in the European Union, acting as a crucial
anchor for India's engagement with Europe.

The partnership is characterized by a unique high-level dialogue mechanism, the

Inter-Governmental Consultations (IGC), a biennial summit where the leaders and
key ministers of both countries meet to drive cooperation forward.

In recent years, the relationship has gained significant momentum, with a strong focus
on green and sustainable development.

Historical Context
The India-Germany relationship has been consistently positive and free of any major
disputes.

● Post-War Partnership: Germany was one of the first countries to recognize

the Republic of India after its independence. In the post-war era, West
Germany became a key partner in India's industrial development, providing
technology and development assistance.

● Post-Unification: After German unification, the relationship continued to

strengthen, culminating in the establishment of the "Strategic Partnership" in
2001, which has been steadily deepened since.

123 © 2025 ISSF

Pillars of the Partnership
The contemporary India-Germany relationship is built on three strong pillars.

1. Economic and Trade Cooperation:

This is the traditional bedrock of the relationship, making Germany India's largest
trading partner in the EU.

● Trade and Investment: Bilateral trade is robust and growing. Germany is one
of the top foreign investors in India, with over 1,700 German companies
operating in the country. A significant number of these are from Germany's
famed Mittelstand (small and medium-sized enterprises), which are leaders in
engineering and manufacturing.

● "Make in India, Mittelstand": This specific initiative aims to facilitate

investments by German SMEs into the Indian manufacturing sector, aligning
with India's "Make in India" goals.

● Support for India-EU FTA: Germany is a strong and vocal advocate for the
early conclusion of a comprehensive and ambitious India-EU Free Trade
Agreement, believing it will provide a major boost to bilateral economic ties.

2. The Green and Sustainable Development Partnership (GSDP):

This is the new and most ambitious pillar of the relationship, positioning India and
Germany at the forefront of global climate action.

● Flagship Initiative: The GSDP was established during the 6th IGC in 2022. It
is a landmark partnership aimed at aligning the development and climate goals
of both nations.

● Financial Commitment: As part of this partnership, Germany has pledged to

provide €10 billion in new and additional assistance for green and
sustainable projects in India until 2030.

● Key Areas of Cooperation:

○ Renewable Energy: Supporting India's ambitious renewable energy

targets through projects in rooftop solar, green energy corridors, and
offshore wind.

○ Sustainable Urban Mobility: Providing financial and technical

assistance for the deployment of electric buses and the development of
sustainable transport infrastructure in Indian cities.

124 © 2025 ISSF

 ○ Climate Action and Environment: Collaborating on projects related to
waste management, circular economy, combating air pollution, and
conserving biodiversity.

3. Technology and Skilled Workforce Cooperation:

This pillar focuses on leveraging German expertise in manufacturing and vocational
training to support India's demographic dividend.

● Vocational Education and Training (VET): There is strong cooperation on

adapting the world-renowned German dual VET system in India.13 This
model combines classroom learning with practical, on-the-job training to create
a highly skilled workforce.

● Migration and Mobility: The Migration and Mobility Partnership

Agreement is now operational, creating a framework to facilitate the legal,
orderly, and safe movement of students, researchers, and skilled professionals
between the two countries.

● Science and Technology: Both countries have a long history of cooperation in

science and technology, with a focus on areas like digital transformation,
artificial intelligence, and advanced manufacturing.

Strategic Convergence
While historically focused on economic ties, the strategic dimension of the
relationship has deepened significantly in recent years.

● Commitment to Multilateralism: Both India and Germany are strong

proponents of a rules-based international order and multilateralism. They work
closely together in international forums to address global challenges.

● The G4 and UNSC Reform: Both countries are key members of the G4
(along with Brazil and Japan), a group that mutually supports each other's
candidatures for permanent seats on a reformed UN Security Council. They are
at the forefront of the campaign to make the UNSC more representative of
21st-century realities.

● The Indo-Pacific: Germany has increasingly recognized the strategic

importance of the Indo-Pacific region and has formulated its own policy
guidelines for engagement.

125 © 2025 ISSF

 ○ Shared Vision: Both countries share a vision for a free, open, and
inclusive Indo-Pacific based on international law.

○ Increased Security Engagement: In a tangible demonstration of this

growing strategic convergence, Germany deployed a frigate and a
combat support ship to the Indo-Pacific in 2024.

○ These naval assets conducted port calls in India and participated in joint
exercises with the Indian Navy, signaling a growing willingness to
contribute to maritime security in the region.

Conclusion:

The India-Germany Strategic Partnership has evolved into one of India's most
important relationships in Europe.

It is a partnership anchored by strong economic fundamentals and now propelled by

the ambitious Green and Sustainable Development Partnership.

The growing convergence on geopolitical issues, particularly on the need for a

rules-based multilateral order and a stable Indo-Pacific, has added a crucial strategic
dimension to the ties.

As two major democratic economies, the ability of India and Germany to work
together on global challenges like climate change, supply chain resilience, and
international security will be a significant factor in shaping the global order of the 21st
century.

126 © 2025 ISSF

3.9 India-Saudi Arabia & India-UAE Relations
Introduction: A Strategic Transformation in the Gulf
India's relationship with the Gulf region has undergone a profound strategic
transformation, moving far beyond the traditional pillars of energy, trade, and the
Indian diaspora.

At the heart of this shift are India's deepening ties with the two most influential
powers in the region: the Kingdom of Saudi Arabia and the United Arab Emirates
(UAE).

Both relationships have been elevated to "Comprehensive Strategic Partnerships,"

reflecting a powerful convergence of interests in economic development, regional
stability, and shaping a new, multipolar Asian order.

India-Saudi Arabia Strategic Partnership

The relationship with Saudi Arabia, a key leader in the Islamic world and a global
energy giant, has evolved from being primarily economic to deeply strategic.

1. Institutional Framework and Political Engagement:

● The partnership is driven at the highest level by the Strategic Partnership
Council (SPC), established in 2019. This apex body, co-chaired by the Indian
Prime Minister and the Saudi Crown Prince, oversees the entire spectrum of
bilateral ties through its two main pillars:

1. Political, Security, Social, and Cultural Cooperation.

2. Economy and Investments.

127 © 2025 ISSF

2. Pillars of Cooperation:
● Economic & Investment:

○ Trade: Saudi Arabia is one of India's top trading partners, with bilateral
trade exceeding $40 billion.

○ Investment: Saudi Arabia has committed to investing $100 billion in

the Indian economy. Its Public Investment Fund (PIF) has already
made significant investments in key Indian sectors, including
technology (Jio Platforms) and retail.

○ While the flagship West Coast Refinery project has faced delays,
investments in other areas are growing.

● Energy Security: Saudi Arabia is consistently one of India's top two suppliers
of crude oil, making it a cornerstone of India's energy security.

● Defence & Security: This is a rapidly growing area of cooperation.

○ Joint Exercises: The two navies successfully conduct the joint exercise
'Al Mohed Al Hindi', enhancing interoperability.

○ Counter-Terrorism: Cooperation on counter-terrorism and intelligence

sharing is robust and has seen significant successes.

● The Indian Diaspora: The large community of over 2.5 million Indians in
Saudi Arabia is a vital "living bridge," contributing to the Saudi economy and
being the source of significant remittances to India.

3. Role in Regional Connectivity:

● Saudi Arabia is a crucial node in the ambitious India-Middle East-Europe
Economic Corridor (IMEC), a project announced during India's G20
Presidency. The corridor, which aims to connect India to Europe via rail and
shipping links through the Arabian Peninsula, places Saudi Arabia at the heart
of a new economic geography.

128 © 2025 ISSF

India-UAE Strategic Partnership

The relationship with the UAE is arguably one of India's most dynamic and
broad-based partnerships, characterized by exceptional warmth and rapid progress
across all sectors.

1. Economic Partnership: A Model of Integration

● CEPA and Bilateral Trade: The signing and implementation of the
Comprehensive Economic Partnership Agreement (CEPA) in 2022 has
been a game-changer. Bilateral trade has surged to over $85 billion, making the
UAE one of India's top three global trade partners.

● Investment Hub: The UAE is a major source of Foreign Direct Investment

(FDI) into India. Its sovereign wealth funds, such as the Abu Dhabi
Investment Authority (ADIA) and Mubadala, are significant investors in
India's infrastructure, technology, and renewable energy sectors.

2. New-Age Cooperation: Fintech, Space, and Technology

This is where the partnership is breaking new ground.

● Fintech Integration:

○ The linkage of India's Unified Payments Interface (UPI) with the

UAE's Instant Payment Platform (IPP) is fully operational, allowing
for seamless and low-cost cross-border remittances.

○ The Rupee-Dirham Trade Settlement Mechanism is now being

actively used, allowing businesses to trade directly in local currencies,
bypassing the US dollar.

● Space Cooperation: The collaboration between the Indian Space Research

Organisation (ISRO) and the UAE Space Agency is deepening, with joint
projects and knowledge sharing.

129 © 2025 ISSF

 ● Education: The establishment of an IIT Delhi campus in Abu Dhabi is a
landmark initiative, strengthening educational and innovation ties.

3. Defence and Security:

● Cooperation is strong, with regular joint military exercises like 'Desert Eagle'
(Air Force), port calls by naval ships, and collaboration in defence
manufacturing.

4. Role in New Regional Architecture:

● The UAE is a central pillar in two new and significant plurilateral groupings:

○ I2U2 Group (India, Israel, UAE, USA): This "Western Quad"

leverages the combined strengths of the four countries for joint projects
in technology, food security, and energy.

○ India-Middle East-Europe Economic Corridor (IMEC): Like Saudi

Arabia, the UAE is a critical gateway and logistics hub for the IMEC
project.

Conclusion: Architects of a New Middle East-Asia Synergy

The strategic partnerships with Saudi Arabia and the UAE are no longer peripheral to
India's foreign policy; they are central to it. These relationships have successfully
moved beyond the traditional buyer-seller dynamic of energy and labor to become
deep strategic alliances.

Both Gulf powers see India as a reliable, fast-growing major economy and a key
partner in their own vision for economic diversification away from oil. For India, they
are indispensable partners for energy security, a major source of investment, and
crucial nodes in new connectivity corridors like IMEC.

As key players in shaping a new, multipolar Asia, the India-Saudi Arabia and
India-UAE partnerships are set to become even more consequential in the years to
come.

130 © 2025 ISSF

3.10 India-Vietnam & India-Indonesia Relations
Introduction: Key Pillars of the 'Act East' Policy
Within the framework of its 'Act East' Policy, India has cultivated deep and
multi-faceted relationships with the nations of Southeast Asia.

Among them, the partnerships with Vietnam and Indonesia stand out as particularly
significant.

Both have been elevated to "Comprehensive Strategic Partnerships," reflecting a

strong convergence of interests in ensuring a stable, secure, and rules-based order in
the Indo-Pacific.

These relationships are crucial for India's ambition to play a more proactive role in the
region, driven by shared democratic values and a common strategic outlook on the
challenges posed by an assertive China.

India-Vietnam Comprehensive Strategic Partnership

The relationship with Vietnam is arguably one of India's most robust in Southeast
Asia, anchored by a deep political trust and a powerful convergence in the defense and
security domains.

1. Defence and Security Cooperation: The Cornerstone of the Partnership

This is the strongest pillar, driven by shared concerns about China's actions in the
South China Sea.

● BrahMos Missile Deal: In a landmark development for India's role as a

defense exporter, the deal for the supply of the BrahMos supersonic cruise
missiles to Vietnam was finalized in early 2025. This is a significant
enhancement of Vietnam's maritime defense capabilities.

131 © 2025 ISSF

 ● Line of Credit: India has extended a $500 million Line of Credit to Vietnam
for the procurement of defense equipment. This is being actively utilized for
acquiring patrol boats and other military hardware.

● Naval Cooperation: The Indian Navy regularly makes port calls to Vietnam,
and the two navies conduct joint exercises and training programs. India is also
providing extensive support for training Vietnamese submarine crews.

2. Economic and Energy Cooperation:

● Bilateral Trade: Two-way trade is growing steadily, on track to surpass the
$15 billion target.

● Energy Exploration: In a strong strategic statement, India's ONGC Videsh

Ltd. (OVL) continues its oil and gas exploration projects in the offshore blocks
offered by Vietnam in the South China Sea, despite repeated objections from
China.

3. Strategic Convergence on the South China Sea:

● India and Vietnam are united in their stance on the South China Sea dispute.

Their joint statements consistently emphasize the importance of freedom of

navigation and overflight, the peaceful resolution of disputes without
resorting to force, and full respect for international law, particularly the United
Nations Convention on the Law of the Sea (UNCLOS) .

This shared position is a direct counter to China's unilateral and expansive

claims in the region.

132 © 2025 ISSF

India-Indonesia Comprehensive Strategic Partnership

As the largest country in ASEAN and a key maritime power located at the crossroads
of the Indian and Pacific Oceans, Indonesia is a vital partner for India.

1. Maritime and Defence Cooperation:

Given Indonesia's geography as a vast archipelago, maritime cooperation is the central
pillar of the relationship.

● Shared Vision: Both countries share a "Shared Vision of India-Indonesia

Maritime Cooperation in the Indo-Pacific."

● Connectivity: There is a strong focus on enhancing connectivity between

India's Andaman and Nicobar Islands and Indonesia's Aceh Province,
which are geographically very close. This includes developing port
infrastructure and promoting trade and tourism.

● Joint Exercises: The two navies conduct the regular joint exercise 'Samudra
Shakti' to enhance interoperability and conduct coordinated patrols.

● Defence Procurement: Indonesia has shown strong interest in acquiring

Indian defense equipment. As of mid-2025, talks for the sale of the BrahMos
missile are in a very advanced stage, which would make Indonesia the third
country in the region (after the Philippines and Vietnam) to acquire the system.

2. Economic Relations:
● Bilateral Trade: The economic relationship is substantial, with bilateral trade
having surpassed $30 billion. A new and more ambitious trade target is being
negotiated. Indonesia is a crucial supplier of key commodities to India,
particularly palm oil and coal.

133 © 2025 ISSF

3. Role in the Indo-Pacific and ASEAN:
● As two of the largest democracies and economies in the G20 from the
developing world, India and Indonesia share a common perspective on the need
for a balanced and inclusive Indo-Pacific architecture. They work closely
together within the ASEAN framework to ensure that the regional order is not
dominated by any single power.

Conclusion: Linchpins of the Indo-Pacific Strategy

The strategic partnerships with Vietnam and Indonesia are critical for the success of
India's 'Act East' Policy and its broader vision for the Indo-Pacific. The relationship
with Vietnam is defined by a strong and explicit defense and security alignment,
directly addressing the challenges in the South China Sea.

The partnership with Indonesia is anchored in a shared maritime vision, leveraging

their geographies to ensure security and connectivity across the Indian and Pacific
Oceans. Both nations view India as a benign and reliable partner and look favorably
upon the role of groupings like the Quad as a stabilizing factor in the region.

As the geopolitical landscape of the Indo-Pacific becomes more contested, these two
relationships will only grow in importance for India's strategic calculus.

134 © 2025 ISSF

Part C: Bilateral, Regional and Global Groupings & Agreements
3.1 Regional Groupings
3.1.1 SAARC (South Asian Association for Regional Cooperation)

Introduction: The Vision for a United South Asia

The South Asian Association for Regional Cooperation (SAARC) was established on
December 8, 1985, in Dhaka.

It is a regional intergovernmental organization comprising eight member states from

South Asia: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and
Sri Lanka.

The primary vision behind SAARC was to promote the welfare of the people of South
Asia, to accelerate economic growth, and to foster collective self-reliance and
cooperation on shared challenges, based on the principles of sovereign equality,
territorial integrity, and non-interference in the internal affairs of other member states.

Objectives of SAARC

The core objectives as laid out in the SAARC Charter are:

● To promote the welfare of the peoples of South Asia and to improve their
quality of life.

● To accelerate economic growth, social progress, and cultural development in

the region.

● To promote and strengthen collective self-reliance among the countries of

South Asia.

135 © 2025 ISSF

 ● To contribute to mutual trust, understanding, and appreciation of one another's
problems.

● To promote active collaboration and mutual assistance in the economic, social,

cultural, technical, and scientific fields.

● To strengthen cooperation with other developing countries and with

international and regional organizations with similar aims.

Key Achievements
Despite its challenges, SAARC has made some notable achievements over the years,
primarily in establishing institutional frameworks for cooperation.

● South Asian Free Trade Area (SAFTA): The agreement on SAFTA, which
came into force in 2006, was a landmark achievement. It aimed to create a free
trade zone to boost regional trade and economic integration. However, its
implementation has been severely hampered by political tensions and non-tariff
barriers.

● SAARC Development Fund (SDF): The SDF was established to fund

collaborative projects in social and economic infrastructure. It remains one of
the few SAARC bodies that continues to function and fund projects at a
sub-regional level.

● Establishment of Regional Institutions: SAARC has successfully established

several specialized regional institutions, including:

○ The South Asian University (SAU) in New Delhi.

○ The SAARC Disaster Management Centre in Gujarat.

○ The SAARC Food Bank to act as a reserve during food shortages.

● Platform for Dialogue: In its initial years, the annual SAARC summits
provided a valuable platform for the leaders of all South Asian countries to
meet, hold informal discussions, and manage regional tensions.

136 © 2025 ISSF

Challenges and Reasons for Dysfunctionality
SAARC is widely regarded as one of the world's least effective regional organizations.
Its failure to live up to its potential is due to several deep-seated challenges.

1. The India-Pakistan Rivalry:

This is the single biggest reason for SAARC's paralysis. The deep-seated hostility and
political and military rivalry between its two largest members, India and Pakistan,
have consistently overshadowed the organization's developmental agenda. The
platform has often been used for political grandstanding rather than constructive
cooperation.

2. The Issue of Cross-Border Terrorism:

India's primary security concern, state-sponsored cross-border terrorism emanating
from Pakistan, has become an insurmountable obstacle.

● The 2016 Deadlock: The 2016 Uri terror attack was the immediate trigger
for the current deadlock. Following the attack, India refused to participate in
the 19th SAARC Summit scheduled to be held in Islamabad. Several other
member states (Bangladesh, Bhutan, Afghanistan) also pulled out, citing the
unconducive environment, which led to the indefinite postponement of the
summit.

● No Summit Since 2014: No SAARC summit has been held since the 18th
summit in Kathmandu in 2014, rendering the organization politically dormant.

3. Structural Flaws in the SAARC Charter:

● Principle of Unanimity: The SAARC Charter stipulates that all decisions
must be made on the basis of unanimity. This gives any single member state a
veto over any proposal. This flaw has been repeatedly exploited, most notably
by Pakistan, to block key regional initiatives.

● Blocked Connectivity: The most famous example is the SAARC Motor

Vehicles Agreement (MVA) proposed at the 2014 summit. The agreement,
which would have revolutionized regional trade and transit, was vetoed by
Pakistan, forcing a sub-group of nations (BBIN) to pursue it independently.

● Bilateral Issues: The charter also states that "bilateral and contentious issues
shall be excluded from the deliberations." While intended to foster cooperation,
this has prevented the forum from addressing the very disputes (like the
India-Pakistan conflict) that are holding it back.

137 © 2025 ISSF

4. Asymmetry within the Group:
The overwhelming size of India-geographically, economically, and
demographically-compared to all its neighbors creates a structural asymmetry. This
often leads to a fear of Indian dominance among the smaller member states, making
them hesitant to embrace deeper integration.

Current Status and Future Prospects

● Current Status: As of July 2025, SAARC remains dormant and
dysfunctional at the political level. While some technical cooperation
continues, the absence of high-level political engagement means the
organization has lost its relevance as a driver of regional integration.

● The Rise of BIMSTEC: Due to the paralysis of SAARC, India and other
member states like Bangladesh, Nepal, and Sri Lanka are increasingly focusing
their diplomatic energy on alternative regional forums like BIMSTEC (Bay of
Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation),
which provides a platform for cooperation that excludes Pakistan and connects
South Asia with Southeast Asia.

Conclusion:
SAARC was founded with the noble vision of creating a cooperative and integrated
South Asia. However, it has become a casualty of its own internal contradictions,
primarily the intractable conflict between India and Pakistan and the use of terrorism
as a tool of state policy.

Until there is a fundamental change in the regional political climate and a resolution
of these core issues, the prospects for SAARC's revival remain bleak. It stands today
as a stark example of how unresolved political disputes can completely derail the
potential for regional economic prosperity.

138 © 2025 ISSF

3.1.2 BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical
and Economic Cooperation)
Introduction: The Bridge Between South and Southeast Asia

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation
(BIMSTEC) is a regional organization comprising seven member states located in the
littoral and adjacent areas of the Bay of Bengal.

Established on June 6, 1997, through the Bangkok Declaration, it serves as a unique

bridge between South and Southeast Asia.

In recent years, with the South Asian Association for Regional Cooperation (SAARC)
becoming dysfunctional, BIMSTEC has gained significant momentum and is now
being actively promoted by India and other members as the primary platform for
regional cooperation in the Bay of Bengal region.

Member States:
The organization brings together five countries from South Asia and two from
Southeast Asia:

● South Asia: Bangladesh, Bhutan, India, Nepal, Sri Lanka

● Southeast Asia: Myanmar, Thailand

Objectives and Principles

● Core Objective: To create an enabling environment for rapid economic
development, accelerate social progress, and promote active collaboration on
matters of common interest in the region.

139 © 2025 ISSF

 ● Principles: The cooperation within BIMSTEC is based on respect for the
principles of sovereign equality, territorial integrity, political independence, and
non-interference in internal affairs.

Areas of Cooperation: A Sector-Driven Approach

To streamline its activities, BIMSTEC has restructured its areas of cooperation into
seven key pillars, with each member state acting as a lead country for a specific
sector:

1. Trade, Investment, and Development (Lead: Bangladesh)

2. Environment and Climate Change (Lead: Bhutan)

3. Security (Lead: India) - This includes sub-sectors like Counter-Terrorism,

Disaster Management, and Energy Security.

4. Agriculture and Food Security (Lead: Myanmar)

5. People-to-People Contact (Lead: Nepal)

6. Science, Technology, and Innovation (Lead: Sri Lanka)

7. Connectivity (Lead: Thailand)

Strategic Importance for India

BIMSTEC has become a cornerstone of India's regional foreign policy for
several strategic reasons:
● Vehicle for 'Neighbourhood First' and 'Act East' Policies: BIMSTEC is the
only regional grouping that brings together India's immediate neighbors (like
Nepal, Bhutan, Bangladesh) with key Southeast Asian nations (Myanmar,
Thailand), allowing India to pursue its 'Neighbourhood First' and 'Act East'
policies simultaneously.

● A Viable Alternative to SAARC: With SAARC paralyzed by the

India-Pakistan rivalry and cross-border terrorism, BIMSTEC provides a more
functional and pragmatic alternative for regional cooperation that excludes
Pakistan.

140 © 2025 ISSF

 ● Economic Development of India's Northeast: The grouping is crucial for the
economic development of India's northeastern states. By promoting
connectivity projects through Bangladesh and Myanmar, BIMSTEC aims to
link the landlocked Northeast with the Bay of Bengal and the dynamic markets
of Southeast Asia.

● Countering China's Influence: A strong and effective BIMSTEC allows India

to create a collective platform for development and security cooperation in the
Bay of Bengal region, providing a rules-based and consultative alternative to
China's growing strategic and economic footprint.

Recent Developments and Key Initiatives

BIMSTEC has gained significant momentum in recent years, marked by key
institutional and policy developments.

● The BIMSTEC Charter: Adopted at the 5th Summit in 2022 and entering
into force in May 2024, the Charter gives BIMSTEC a formal legal personality
and a more robust institutional framework.

● The 6th BIMSTEC Summit (Bangkok, April 2025): This was a major event
that reaffirmed the political will to strengthen the organization. Key outcomes
included:

○ Adoption of the "Bangkok Vision 2030," which provides a long-term

strategic direction for the group.

○ Signing of the Agreement on Maritime Transport Cooperation to

improve maritime connectivity.

● Connectivity Master Plan: The BIMSTEC Master Plan for Transport

Connectivity is the key blueprint for enhancing regional integration through
road, rail, and maritime links. Projects like the IMT Trilateral Highway and the
Kaladan Project are integral to this vision.

Challenges and the Road Ahead

Despite its renewed promise, BIMSTEC faces several significant challenges.

● Slow Progress on Key Agreements: The BIMSTEC Free Trade Agreement

(FTA), which has been under negotiation since 2004, remains a major piece of

141 © 2025 ISSF

 unfinished business. The lack of an FTA severely limits the potential for
intra-regional trade, which currently stands at a very low 6-7% of the members'
total trade.

● Implementation Delays: The implementation of key connectivity projects

under the Master Plan has been very slow due to a lack of funding,
cross-border coordination issues, and internal instability in member states like
Myanmar.

● Lack of Resources: The BIMSTEC Secretariat, located in Dhaka, remains

underfunded and understaffed compared to similar regional organizations like
ASEAN, which limits its operational capacity.

● Internal and Bilateral Issues: The organization is not immune to internal

challenges. The ongoing political and security crisis in Myanmar and recent
bilateral tensions between some member states can test the group's cohesion
and slow down decision-making.

Conclusion:
BIMSTEC has emerged from the shadows of SAARC to become India's preferred
platform for regional cooperation. Its unique geography, bridging South and Southeast
Asia, gives it immense strategic and economic potential.

The recent adoption of the Charter and the "Bangkok Vision 2030" demonstrates a
clear political will to revitalize the organization. However, for BIMSTEC to truly
succeed where SAARC failed, its members, led by India, must translate this political
will into tangible results.

This will require a concerted effort to overcome the long-standing hurdles, particularly
by finalizing the FTA, securing funding for connectivity projects, and navigating the
region's complex security dynamics with pragmatism and a spirit of cooperation.

142 © 2025 ISSF

3.1.4 ASEAN (Association of Southeast Asian Nations) - India's relationship

Introduction: A Cornerstone of the 'Act East' Policy

The relationship between India and the Association of Southeast Asian Nations
(ASEAN), a regional grouping of ten Southeast Asian countries, is a cornerstone of
India's foreign policy and the central pillar of its 'Act East' Policy.

Evolving from a Sectoral Dialogue Partnership in 1992, the relationship has grown
exponentially in scope and substance, culminating in its elevation to a
"Comprehensive Strategic Partnership" (CSP) in 2022.

This partnership is built on a foundation of shared historical and cultural ties, a

growing convergence of strategic interests, and a common vision for a peaceful and
prosperous Indo-Pacific.

143 © 2025 ISSF

Evolution of the Partnership
The India-ASEAN relationship has matured through several key milestones:

● 1992: India becomes a Sectoral Dialogue Partner of ASEAN.

● 1996: Elevated to a Full Dialogue Partner.

● 2002: The relationship is institutionalized through the annual ASEAN-India

Summit.

● 2012: Upgraded to a Strategic Partnership.

● 2022: Elevated to the highest level of a Comprehensive Strategic Partnership.

Pillars of the India-ASEAN Partnership

The engagement is broad-based and is often summarized by the '3Cs' – Commerce,
Connectivity, and Culture.

1. Political-Security Cooperation:
This pillar has gained significant traction in recent years, driven by shared concerns
about regional stability.

● ASEAN Centrality and the Indo-Pacific: India has consistently supported

ASEAN Centrality in the evolving regional architecture. There is a strong
synergy between India's vision for the Indo-Pacific (articulated through its
SAGAR doctrine and the Indo-Pacific Oceans Initiative - IPOI) and the
ASEAN Outlook on the Indo-Pacific (AOIP). Both frameworks emphasize
inclusivity, a rules-based order, and freedom of navigation.

● Maritime Security: Cooperation in the maritime domain is a key focus. The

first-ever ASEAN-India Maritime Exercise (AIME) was held in 2023. India
actively participates in ASEAN-led security forums like the ASEAN Regional
Forum (ARF) and the ASEAN Defence Ministers' Meeting-Plus
(ADMM-Plus).

● Counter-Terrorism: Both sides cooperate on combating terrorism,

radicalization, and transnational crime through established dialogue
mechanisms.

144 © 2025 ISSF

2. Economic Cooperation:
Economic engagement is a key driver of the relationship, though it presents both
opportunities and challenges.

● Bilateral Trade: ASEAN is one of India's largest trading partners, with

bilateral trade in goods and services exceeding $120 billion.

● AITIGA Review (Current Status): The ASEAN-India Trade in Goods

Agreement (AITIGA), signed in 2010, is currently under review. India pushed
for the review to address its widening trade deficit with the bloc and to make
the agreement more user-friendly and equitable.

○ Current Impasse (as of July 2025): The review process, which began
in 2024, is making very slow progress. There is a clear divergence in
approach: India is keen on a swift conclusion by the end of 2025 to
rectify imbalances, while ASEAN members prefer a slower, more
consensus-based approach.

○ The key sticking points include India's demand for better market access
for its products and stricter rules of origin to prevent circumvention by
third countries.

3. Connectivity:
Enhancing connectivity is a central priority, encompassing physical, digital, and
people-to-people links.

● Physical Connectivity:

○ IMT Trilateral Highway: This flagship project, aimed at connecting

India's Northeast with Thailand via Myanmar, remains severely stalled
due to the ongoing civil war and instability in Myanmar. This is a
major gap between the vision and reality of land connectivity.

● Digital Connectivity: This has been a more successful area.

○ The linkage of India's Unified Payments Interface (UPI) with

Singapore's PayNow is a model for real-time payment systems.

○ An ASEAN-India Fund for Digital Future has been established to

promote cooperation in digital transformation and fintech.

145 © 2025 ISSF

 ● People-to-People Ties: 2025 has been designated as the ASEAN-India Year
of Tourism to boost travel and cultural exchange. India also offers numerous
scholarships to ASEAN students, particularly at Nalanda University.

The China Factor and Strategic Convergence

The shared challenge posed by an increasingly assertive China is a primary driver for
the deepening of strategic ties between India and ASEAN.

● South China Sea Dispute: India, while not a claimant, has a direct stake in
ensuring peace and stability in the South China Sea, as a significant portion of
its trade passes through these waters.

● India has consistently advocated for the peaceful resolution of disputes in

accordance with international law, particularly the United Nations Convention
on the Law of the Sea (UNCLOS), a position that aligns with several ASEAN
member states.

● India as a Balancing Power: Many ASEAN countries, wary of

over-dependence on China, see India as a credible and benign balancing power
in the region. India's growing economy, military capabilities, and its role as a
security partner (e.g., the sale of BrahMos missiles to the Philippines) are
welcomed as contributing to a more stable and multipolar regional order.

Challenges and the Road Ahead

● AITIGA Deadlock: The lack of progress in reviewing the trade agreement is a
major economic challenge that needs to be overcome to realize the full
potential of the economic partnership.

● Connectivity Hurdles: The instability in Myanmar has effectively put major

land connectivity projects on hold, requiring a re-evaluation of the strategy.

● ASEAN's Internal Divisions: ASEAN's consensus-based decision-making can

sometimes make it difficult to take a strong, unified stand on critical security
issues, particularly regarding China.

Conclusion:
The India-ASEAN Comprehensive Strategic Partnership is a vital pillar of India's
foreign policy and a crucial element for stability in the Indo-Pacific. The relationship
is characterized by a strong convergence on political and security issues, driven by
shared concerns about the regional order.

146 © 2025 ISSF

3.1.5 IORA (Indian Ocean Rim Association)
Introduction: The Apex Body for the Indian Ocean Region
The Indian Ocean Rim Association (IORA) is the premier and only ministerial-level
multilateral platform for the Indian Ocean region. Established on March 7, 1997,
IORA is a dynamic inter-governmental organization aimed at strengthening regional
cooperation and sustainable development within the Indian Ocean region.

It is a consensus-based organization built on the principles of open regionalism for

strengthening economic cooperation.

With its 23 Member States and 11 Dialogue Partners, IORA brings together countries
from Africa, the Middle East, Asia, and Oceania that share the Indian Ocean, creating
a unique platform for dialogue and collaboration.

Current Leadership: India is the current Chair of IORA for the term 2023-2025,
a position that allows it to shape the organization's agenda and drive key initiatives.

Objectives and Priority Areas

IORA's primary objective is to promote the sustained growth and balanced
development of the region and its Member States.

To achieve this, the organization focuses on six key priority areas and two
cross-cutting focus areas:

Priority Areas:
1. Maritime Safety and Security: Combating piracy, armed robbery, terrorism,
and trafficking of drugs, people, and arms.

2. Trade and Investment Facilitation: Simplifying trade procedures,

harmonizing standards, and promoting business-to-business linkages.

3. Fisheries Management: Promoting sustainable fishing practices and

combating illegal, unreported, and unregulated (IUU) fishing.

4. Disaster Risk Management: Building capacity for disaster preparedness,

response, and climate change adaptation.

5. Academic, Science, and Technology Cooperation: Promoting joint research

and knowledge sharing.

147 © 2025 ISSF

 6. Tourism and Cultural Exchanges: Enhancing people-to-people contact and
promoting regional tourism circuits.

Focus Areas:
1. Blue Economy: Harnessing the economic potential of the oceans in a
sustainable and inclusive manner.

2. Women's Economic Empowerment: Ensuring women's participation in and

benefit from economic development.

Strategic Importance for India

IORA is a cornerstone of India's foreign policy, particularly for its engagement in its
maritime neighborhood.

● Primary Platform for the SAGAR Vision: IORA is the most important
platform for advancing India's vision of SAGAR (Security and Growth for
All in the Region). It provides an institutional framework for India to pursue
its goal of becoming a "net security provider" and a driver of sustainable
development in the Indian Ocean Region (IOR).

● Countering China's Influence: A strong, rules-based, and inclusive IORA is a

key element of India's strategy to counter China's growing and often assertive
presence in the Indian Ocean. By promoting a collaborative security and
development architecture, India uses IORA to offer a transparent and
consensus-based alternative to China's unilateral and debt-driven initiatives.

● Strengthening Regional Leadership: India's current chairmanship

(2023-2025) provides it with a significant opportunity to steer the regional
agenda. India has set the theme for its chairmanship as "Towards a Peaceful,
Prosperous and Progressive Indian Ocean region," focusing on key areas
like maritime security, digital connectivity, and environmental sustainability.

● Engaging with Littoral States: IORA provides a unique platform for India to
engage with all littoral states of the Indian Ocean, from Africa to Australia,
including the crucial island nations, on a wide range of issues.

148 © 2025 ISSF

Challenges Facing IORA
Despite its importance, IORA faces several significant challenges that limit its
effectiveness.

● Large and Diverse Membership: The association's strength-its large

membership of 23 countries-is also a weakness. The members are highly
diverse in their economic capacity, political systems, and strategic priorities,
which makes building a consensus on sensitive issues difficult.

● Lack of Resources: The IORA Secretariat, based in Mauritius, is relatively

small and under-resourced compared to other regional organizations like
ASEAN. This limits its ability to drive and implement large-scale projects.

● Non-binding Nature: The decisions and initiatives within IORA are not
legally binding on its members. Their implementation depends entirely on the
political will and capacity of individual member states.

● Growing Geopolitical Competition: The Indian Ocean is no longer just a

trade route; it is an arena of intense geopolitical competition among major
powers. This competition can sometimes spill over into the organization,
hindering cooperation and creating divisions among member states.

Conclusion:
IORA is the most significant multilateral platform for the Indian Ocean region, and its
importance is growing in an era of heightened maritime competition.

For India, it is an indispensable tool for implementing its SAGAR vision and for
shaping a stable, secure, and rules-based order in its maritime backyard.

As the current Chair, India has a unique opportunity to inject new energy and purpose
into the organization.

However, for IORA to realize its full potential, it must overcome its institutional
limitations and its members must demonstrate a stronger collective will to translate
vision into concrete action on the ground.

149 © 2025 ISSF

3.1.6 The QUAD (Quadrilateral Security Dialogue)
Introduction: A Strategic Grouping for the Indo-Pacific

The Quadrilateral Security Dialogue, commonly known as the Quad, is a strategic

forum comprising four major Indo-Pacific democracies: India, the United States,
Japan, and Australia.

It is not a formal military alliance like NATO, but rather a flexible, plurilateral
grouping of like-minded countries committed to promoting a "free, open, and
inclusive Indo-Pacific."

Revived and elevated to the leaders' level in recent years, the Quad has become a
central pillar in the strategic architecture of the region, primarily seen as a
collaborative effort to manage the challenges posed by China's growing assertiveness.

History and Evolution

The Quad's journey has been marked by two distinct phases.

● Origins and Dormancy (2004-2017): The origins of the Quad can be traced
back to the ad-hoc "Tsunami Core Group" formed by the four countries to
coordinate relief efforts after the devastating 2004 Indian Ocean tsunami.

● This led to the first formal dialogue in 2007. However, the initiative soon
became dormant after Australia withdrew in 2008, citing concerns about
antagonizing China.

● Revival and Elevation (2017-Present): The Quad was revived at the official
level in 2017 amidst growing concerns among all four members about China's
increasingly aggressive behavior in the region.

● The grouping gained significant momentum and was elevated to the leaders'
level with the first virtual summit in March 2021. This marked its

150 © 2025 ISSF

 transformation from a tentative dialogue to a premier strategic forum with a
concrete and positive agenda.

Core Objectives and Principles

The Quad's vision is articulated in its joint statements, which are built on a set of core
principles:

● A Free, Open, and Inclusive Indo-Pacific: This is the central vision,

emphasizing a regional order where all countries can operate freely and without
coercion.

● A Rules-Based Order: A commitment to upholding international law,

particularly the United Nations Convention on the Law of a Sea (UNCLOS),
and ensuring freedom of navigation and overflight.

● Respect for Sovereignty and Territorial Integrity: Upholding the principle

that disputes should be resolved peacefully and without altering the status quo
by force.

● ASEAN Centrality: The Quad has consistently affirmed its strong support for
ASEAN's central role in the regional architecture.

Key Areas of Practical Cooperation

The modern Quad focuses on a positive and practical agenda, implemented through
several dedicated working groups.

1. Maritime Security: This is a core area of cooperation.

○ Indo-Pacific Maritime Domain Awareness (IPMDA): This flagship

initiative was launched to provide near-real-time data and intelligence
on maritime activities to countries across the region. It aims to help
combat illegal, unreported, and unregulated (IUU) fishing and other
illicit maritime activities.

2. Health Security:

○ Quad Vaccine Partnership: Launched during the COVID-19

pandemic, this initiative aimed to leverage the strengths of the four
countries to produce and distribute over a billion vaccine doses for the

151 © 2025 ISSF

 Indo-Pacific region. While the immediate crisis has passed, the
framework for future pandemic preparedness remains.

3. Infrastructure:

○ The Quad Infrastructure Coordination Group works to align the

efforts of the four countries to provide sustainable, transparent, and
high-quality infrastructure financing in the region. This is positioned as
a direct alternative to China's Belt and Road Initiative (BRI).

4. Critical and Emerging Technologies:

○ The Quad is working to build secure and resilient supply chains for
critical technologies like semiconductors and 5G/6G networks. It is
also developing common principles and standards for the governance of
new technologies like Artificial Intelligence (AI).

5. Climate Change and HADR:

○ The group has a dedicated working group on climate change to help

regional countries with their energy transition and climate adaptation. It
has also established a framework for closer cooperation on
Humanitarian Assistance and Disaster Relief (HADR), building on
its origins after the 2004 tsunami.

Strategic Context and India's Role

● The China Factor: While Quad statements do not explicitly name China, it is
widely understood that the grouping's revival and agenda are a direct response
to the strategic challenges posed by an assertive China. Beijing has
vociferously criticized the Quad, labeling it an "exclusive clique" and an
"Asian NATO" aimed at containing its rise.

● India's Perspective: India views the Quad not as a military alliance, but as a
plurilateral platform of like-minded democracies to cooperate on a positive
and constructive agenda for the Indo-Pacific.

○ Advancing National Interests: For India, the Quad is a key mechanism

to advance its own interests in maritime security, connectivity, and
technology, and to manage the challenges on its continental and
maritime frontiers.

152 © 2025 ISSF

 ○ Strategic Autonomy: India's active participation in the Quad, while
simultaneously being a member of groups like BRICS and the SCO, is a
prime example of its policy of "multi-alignment" and its commitment
to maintaining strategic autonomy.

Conclusion:
The Quad has evolved into a significant and influential fixture in the Indo-Pacific's
strategic landscape. It represents a new model of flexible, plurilateral cooperation
among like-minded democracies.

By focusing on providing tangible public goods-from maritime security and

infrastructure to health and technology-the Quad aims to offer the region a positive
and rules-based vision for the future.

For India, it is a vital platform that amplifies its influence, strengthens its partnerships
with key democratic powers, and provides a crucial framework for navigating the
complex geopolitical challenges of the 21st century.

153 © 2025 ISSF

3.1.7 I2U2 (India, Israel, UAE, USA)

Introduction: A New Minilateral for Economic Cooperation

The I2U2 Group is a unique plurilateral platform comprising India, Israel, the United
Arab Emirates (UAE), and the United States. Often dubbed the "Western Quad," I2U2
is not a security alliance but rather a results-oriented economic and technological
cooperation forum.

Launched in the wake of the historic Abraham Accords, the grouping aims to leverage
the unique strengths of its member countries to launch joint projects and mobilize
private sector investment in key sectors, creating new corridors of cooperation
between South Asia, the Middle East, and the United States.

Origins and Objectives

● Origins: The grouping was conceptualized during a meeting of the foreign
ministers of the four countries in October 2021. Its formation was made
possible by the Abraham Accords (2020), which normalized relations
between Israel and several Arab states, including the UAE, thereby removing
the political barriers to such a partnership. The first Leaders' Summit was held
virtually in July 2022.

● Core Objective: The primary goal of I2U2 is to be a pragmatic, project-based

platform that combines the capital and technology of its members to address
shared challenges and promote economic development. The cooperation is
focused on six key areas: water, energy, transportation, space, health, and
food security.

154 © 2025 ISSF

Key Projects and Current Status
At the inaugural Leaders' Summit, two flagship projects were announced, both
centered in India.

1. Integrated Food Parks in India:

○ The Project: The UAE committed to investing $2 billion to develop a
series of integrated food parks across India. The project aims to use
advanced climate-smart agricultural technologies from Israel and the US
to enhance crop yields, reduce food waste, and create a secure food
supply chain from India to the UAE and other markets.

○ Current Status (as of July 2025): This ambitious project remains in the
planning and assessment stage. The geopolitical tensions in the
Middle East since late 2023 have significantly slowed down the
momentum, delaying the on-the-ground implementation.

2. Hybrid Renewable Energy Project in Gujarat:

○ The Project: To build a 300-megawatt hybrid renewable energy project
(wind and solar) in Gujarat, India, complemented by a battery energy
storage system. The project, with a total investment of $330 million,
aims to showcase the potential for clean energy collaboration.

○ Current Status (as of July 2025): Similar to the food parks project, this
initiative is also facing delays in moving from the feasibility study phase
to actual construction due to the changed regional political environment.

Strategic Significance
Despite the current slowdown, the strategic logic behind the I2U2 grouping remains
powerful.

● A New Regional Architecture: I2U2 represents a new model of economic

cooperation that bypasses traditional political rivalries in the Middle East (or
"West Asia" from an Indian perspective). It is a tangible outcome of India's
successful "de-hyphenation" policy, which allows it to maintain strong,
independent relationships with both Israel and the Arab world simultaneously.

● Connecting South Asia and the Middle East: The grouping aims to create
new economic corridors connecting the entrepreneurial and technological hubs

155 © 2025 ISSF

 of South Asia with the capital and markets of the Middle East, with the US
playing a key enabling role.

● Complementarity with IMEC: I2U2 is seen as a complementary initiative to

the more recent India-Middle East-Europe Economic Corridor (IMEC).
Both initiatives involve a similar set of partners (India, UAE, USA) and share a
vision of creating new, resilient corridors for trade and technology.

● An Alternative Model of Cooperation: While not explicitly stated, the

grouping is also seen as a strategic initiative by like-minded partners to offer a
transparent, private sector-led model of cooperation as an alternative to China's
state-led Belt and Road Initiative (BRI).

Challenges and Future Prospects

The initial promise of I2U2 has been met with significant headwinds.

● Impact of the Israel-Hamas Conflict: The primary challenge is the

geopolitical fallout from the Israel-Hamas conflict that began in late 2023.
The conflict has made it politically sensitive for the UAE and other Arab
partners to engage in high-profile, open cooperation with Israel, thereby putting
the brakes on the group's public activities.

● Translating Vision into Reality: A key challenge for the group, even before
the conflict, was translating the high-level government-to-government vision
into concrete, large-scale private sector-led investments on the ground.

Conclusion:
I2U2 was launched with great promise as a novel, results-oriented platform for a new
era of regional cooperation.

Its focus on leveraging private sector strengths for tangible projects in food, energy,
and health remains highly relevant.

However, the group's momentum has been severely impacted by the ongoing conflict
in the Middle East.

While the strategic logic for its existence remains intact, its future prospects and
ability to deliver on its initial projects will depend heavily on a de-escalation of
regional tensions and a renewed political will among its members to revive this unique
and promising initiative.

156 © 2025 ISSF

3.1.8 Colombo Security Conclave (CSC)
Introduction: A Security-Focused Minilateral for the Indian Ocean

The Colombo Security Conclave (CSC) is a minilateral security-oriented grouping of

countries in the Indian Ocean Region (IOR).

Initially focused on maritime security, its scope has expanded to include other shared
security challenges.

The CSC is a key initiative that reflects India's growing role as a "net security
provider" and a "preferred security partner" for its smaller maritime neighbors.

It aims to create a regional, cooperative security architecture to address the

increasingly complex security environment in the southern Indian Ocean.

History and Evolution

The CSC's journey has been marked by a period of dormancy followed by a
significant revival and expansion.

● Origins (2011): The CSC began as a trilateral meeting of the National Security
Advisors (NSAs) of India, Sri Lanka, and the Maldives in 2011 to discuss
maritime security cooperation.

● Dormancy (2014-2020): The initiative went into a hiatus after 2014 due to
political sensitivities and changing government priorities in the member states.

● Revival and Expansion (2020-Present): Recognizing the growing strategic

importance of the IOR and the need for closer cooperation, the dialogue was
revived at the NSA level in 2020. The grouping was significantly strengthened
by:

○ Mauritius joining as the fourth full member in 2022.

○ Bangladesh and Seychelles joining as Observers.

Objectives and Pillars of Cooperation

The CSC has formalized its cooperation around five key pillars, moving beyond a
purely maritime focus to a broader security agenda:

157 © 2025 ISSF

 1. Maritime Safety and Security: This remains the core pillar, focusing on
coordinated patrols, maritime domain awareness, and countering illicit
activities at sea.

2. Countering Terrorism and Radicalization: Sharing intelligence and best

practices to combat terrorism, terror financing, and online radicalization.

3. Combating Trafficking and Transnational Organized Crime: Cooperating

to tackle the trafficking of narcotics, arms, and people, which are major
challenges in the region.

4. Cyber Security and Protection of Critical Infrastructure: Building capacity

to defend against cyber-attacks and protect vital national infrastructure.

5. Humanitarian Assistance and Disaster Relief (HADR): Enhancing

coordination and interoperability for responding to natural disasters and other
regional crises.

Strategic Importance for India

The CSC is a crucial platform for India to advance its strategic interests in its
immediate maritime neighborhood.

● Vehicle for the SAGAR Vision: The CSC is a primary vehicle for the practical
implementation of India's SAGAR (Security and Growth for All in the
Region) vision. It provides an institutional framework for India to deliver on its
commitment to be a net security provider.

● Creating a Regional Security Architecture: By fostering a cooperative

security framework with its maritime neighbors, India aims to create a local,
region-led security architecture that can address its own security challenges
without the need for intervention by extra-regional powers.

● Countering China's Influence: A strong and cohesive CSC is a key element

of India's strategy to counter the growing strategic and naval presence of China
in the Indian Ocean. By strengthening the security capabilities of its neighbors
and promoting a rules-based order, India offers a collaborative security model
that stands in contrast to China's more unilateral and often assertive approach.

● Strengthening Bilateral Ties: The conclave provides a valuable platform to

deepen bilateral security relationships with each member country on a wide
range of issues.

158 © 2025 ISSF

Recent Activities and Challenges
● Recent Activities: Despite some geopolitical headwinds, the CSC has
remained active at the operational level. The last NSA-level meeting was held
in the Maldives in late 2024.

● Throughout the first half of 2025, various working group meetings have taken
place, including the second meeting of the CSC expert group on
cybersecurity in New Delhi, along with joint exercises and capacity-building
workshops.

● Challenges:

○ Geopolitical Shifts: The most significant recent challenge is the

pro-China tilt of the new government in the Maldives. While the
Maldives continues to participate in CSC meetings, its parallel pursuit of
a security agreement with China raises serious questions about its
long-term commitment to the conclave's objectives and could undermine
the group's cohesion.

○ Bilateral Tensions: The current strain in India-Maldives bilateral

relations could spill over into the functioning of the conclave, affecting
the spirit of trust and cooperation.

○ Capacity Constraints: The smaller member states have limited naval,

coast guard, and technical capacities, making them heavily reliant on
India for resources, training, and support to implement the group's
agenda effectively.

Conclusion:

The Colombo Security Conclave has evolved into a key "minilateral" security
platform in the Indian Ocean, central to India's vision of being a preferred security
partner in the region.

By focusing on a practical agenda of shared security threats, the CSC provides a

valuable framework for regional cooperation.

However, its future effectiveness will depend on its ability to navigate the complex
geopolitical shifts in the region, particularly the changing foreign policy orientation of
the Maldives.

For India, sustaining the momentum of the CSC is a strategic imperative for ensuring
a stable and secure southern maritime flank.

159 © 2025 ISSF

Part C: Bilateral, Regional and Global Groupings & Agreements
3.2 Global Groupings
3.2.1 BRICS (Brazil, Russia, India, China, South Africa & new
members)

Introduction: A Platform for Emerging Economies

BRICS is a significant multilateral forum comprising major emerging economies that
have come together to enhance cooperation and amplify their collective voice on the
global stage.

Originally an acronym "BRIC" coined in 2001 to highlight the economic potential of

Brazil, Russia, India, and China, the group was formalized with its first summit in
2009.

It expanded to include South Africa in 2010, becoming "BRICS."

The grouping represents a major shift in the global economic and political landscape,
seeking to foster a more just, equitable, and multipolar international order.

Evolution and Expansion

The most significant recent development for the bloc has been its expansion, which
has substantially increased its global weight.

● New Members: In January 2024, the bloc expanded to include Egypt,

Ethiopia, Iran, and the United Arab Emirates (UAE). This was followed by
Indonesia joining as a full member in January 2025.

160 © 2025 ISSF

 ● Statistical Impact: The expanded BRICS is a global heavyweight,
representing over 45% of the world's population and more than 35% of the
global GDP in purchasing power parity (PPP) terms.

● "Partner Country" Category: To manage the growing interest from other

nations, a new category of "BRICS partner countries" has been established.
This includes nations like Belarus, Bolivia, Cuba, Kazakhstan, Malaysia,
Nigeria, and Thailand, reflecting a structured approach to future growth.

Key Initiatives and Areas of Cooperation

BRICS cooperation is multi-faceted, but it is most tangibly represented by its
initiatives to create an alternative financial architecture.

1. The New Development Bank (NDB):

● Headquartered in Shanghai, the NDB (or "BRICS Bank") was established in
2015. Its primary mandate is to mobilize resources for infrastructure and
sustainable development projects in member countries and other emerging
economies. It represents a tangible alternative to the World Bank and the IMF,
where developing countries have a greater say.

2. The Contingent Reserve Arrangement (CRA):

● The CRA is a framework for providing protection against global liquidity
pressures. It is a financial safety net with a total committed capital of $100
billion, designed to help members mitigate the effects of global financial
shocks and reduce reliance on Western-dominated financial institutions.

3. The De-dollarization Agenda:

● A key focus of the bloc is to reduce dependence on the US dollar for
international trade and finance. The current, pragmatic approach focuses on:

○ Promoting Trade in National Currencies: Encouraging member

countries to use their own currencies for bilateral trade.

○ Developing BRICS Pay: Actively developing a decentralized payment

messaging system to serve as a viable alternative to the
Western-dominated SWIFT system for international transactions.

161 © 2025 ISSF

4. Political and Security Cooperation:
● Global Governance Reform: A core objective is to advocate for a more
representative international order, with a strong, unified call for the
comprehensive reform of the United Nations, especially the Security Council.

● Counter-Terrorism: The BRICS Joint Working Group on Counter-Terrorism

facilitates the sharing of intelligence and best practices. A recent joint
declaration from the BRICS Parliamentary Forum in Brasília strongly
condemned a terrorist attack in Kashmir, emphasizing a collective
zero-tolerance policy against terrorism.

India's Role and Perspective within BRICS

India plays a unique and crucial role within BRICS, acting as a balancing power and
ensuring its own strategic interests are advanced.

● Champion of a "Non-Western," Not "Anti-Western" Bloc: India

consistently emphasizes that BRICS should be a platform for cooperation and
not an anti-Western alliance. This allows India to maintain its strategic
autonomy and manage its strong partnerships with Western countries like the
US and France.

● Architect of a Consensus-Based Expansion: During the 2023 expansion

debate, India played a pivotal role in shaping the outcome, successfully
pushing for a consensus-based approach and the establishment of clear criteria
for new members, which led to the creation of the "Partner Country" category.

● Driving Key Agendas:

○ Counter-Terrorism: India has been the leading voice within BRICS for
stronger and more concrete cooperation on counter-terrorism.

○ Digital Economy: India is actively promoting cooperation on Digital

Public Infrastructure (DPI), offering its successful Aadhaar and UPI
models as a template for other member countries.

● Future Leadership: India is set to host the BRICS Parliamentary Forum in

2026, reinforcing its long-term commitment and leadership role within the
group.

162 © 2025 ISSF

Challenges and Future Outlook
Despite its growing influence, the expanded BRICS faces significant internal and
external challenges.

● Internal Divergences: The bloc's heterogeneity is a major challenge. It

includes democracies like India, Brazil, and South Africa, and autocratic states
like China and Russia. Their political systems, economic models, and national
interests often diverge.

● China's Dominance: China's economy is larger than all other BRICS members
combined, creating an inevitable power imbalance. A key strategic challenge
for other members, particularly India, is to ensure that the bloc's agenda does
not become overly "Sino-centric."

● Geopolitical Fault Lines: Global tensions, such as the Russia-Ukraine

conflict, create complex diplomatic challenges for members like India and
Brazil, who maintain strong relationships with the West.

● Lack of Cohesion: On many critical global issues, the group often struggles to
speak with a single, coherent voice, which can undermine its effectiveness as a
collective actor.

Conclusion:
BRICS has successfully evolved from an investment acronym into a significant
geopolitical platform that gives a powerful voice to the Global South. Its expansion
has further bolstered its global standing.

The bloc's ability to create tangible institutions like the NDB demonstrates its
potential.

However, its future success and relevance will depend on its ability to manage its
internal contradictions, particularly the power imbalance and the divergence of
strategic interests among its members, while navigating an increasingly complex and
polarized global landscape.

163 © 2025 ISSF

3.2.2 G20 (Group of Twenty)

Introduction: The Premier Forum for Global Economic Cooperation

The Group of Twenty (G20) is the premier international forum for global economic
cooperation.

It was formed in 1999 in the aftermath of the Asian financial crisis as a meeting of
Finance Ministers and Central Bank Governors.

However, following the 2008 global financial crisis, it was elevated to the level of
Heads of State and Government.

The G20's members represent around 85% of the global GDP, over 75% of global
trade, and about two-thirds of the world's population, making it the most influential
global economic platform. Its primary objective is to bring together the world's major
advanced and emerging economies to address key challenges in the global economy.

India's G20 Presidency (2023)

India held the G20 Presidency from December 1, 2022, to November 30, 2023,
culminating in the Leaders' Summit in New Delhi in September 2023. This was a
landmark moment for Indian diplomacy.

Vision and Approach:

● Theme: The theme of India's presidency was 'Vasudhaiva Kutumbakam' - a

Sanskrit phrase meaning 'One Earth, One Family, One Future'. This theme
underscored India's vision for a more inclusive, ambitious, and action-oriented
global agenda.

● "Voice of the Global South": A central pillar of India's approach was to

position itself as the "Voice of the Global South." India actively championed
the interests and concerns of developing countries, hosting a virtual "Voice of

164 © 2025 ISSF

 the Global South Summit" to gather inputs from over 125 nations not part of
the G20, and ensuring their priorities were reflected in the G20 agenda.

Key Outcomes of India's Presidency and Their Current Status

India's presidency was widely hailed as a major success, marked by several significant
and historic achievements.

1. Admission of the African Union (AU) as a Permanent Member:

● The Achievement: This was the most significant and historic outcome. At
India's initiative, the African Union (AU), a continental body of 55 member
states, was admitted as a permanent member of the G20.

● Significance: This corrected a long-standing historical injustice and gave the

entire African continent a permanent voice in global economic governance for
the first time.

● Current Status: The AU has been actively participating in all major G20
meetings throughout 2024 and the first half of 2025 under the subsequent
presidencies, ensuring that African perspectives are integrated into the group's
deliberations.

2. The New Delhi Leaders' Declaration:

● The Achievement: In a major diplomatic victory, India managed to forge a
100% consensus on the New Delhi Leaders' Declaration, avoiding a fractured
outcome despite the deep East-West divisions over the war in Ukraine.

● The Consensus Language: The declaration used carefully crafted language

that referred to the "war in Ukraine" (as opposed to "war against Ukraine"),
condemned the use of force for territorial acquisition, and called on all states to
uphold the principles of the UN Charter, thereby creating a common ground
acceptable to all members, including Russia.

3. Launch of the India-Middle East-Europe Economic Corridor (IMEC):

● The Initiative: On the sidelines of the summit, a landmark Memorandum of
Understanding (MoU) was signed to establish the IMEC. This ambitious
project aims to connect India to Europe through the Middle East (UAE, Saudi
Arabia, Jordan, Israel) via a network of shipping and rail links.

165 © 2025 ISSF

 ● Significance: The IMEC is positioned as a transparent and collaborative
alternative to China's Belt and Road Initiative (BRI), aiming to boost trade,
ensure energy security, and enhance digital connectivity.

● Current Status: The progress of the IMEC has been significantly hampered
by the outbreak of the Israel-Hamas conflict in late 2023. The geopolitical
instability in the Middle East has stalled further high-level planning and
on-the-ground work, and its future is currently uncertain pending a
de-escalation of regional tensions.

4. Launch of the Global Biofuel Alliance (GBA):

● The Initiative: India successfully launched the GBA to accelerate the
development and deployment of sustainable biofuels. 16

● Significance: The alliance aims to foster global collaboration, create new

markets, and facilitate trade in biofuels, contributing to energy security and
climate action.

● Current Status: As of early 2025, several more countries and international

organizations have joined the GBA, and it is actively working on developing
standards and promoting investment in the sector.

5. Mainstreaming Digital Public Infrastructure (DPI):

● The Achievement: India successfully used its presidency to champion the
concept of Digital Public Infrastructure (DPI) as a tool for inclusive
development. It showcased its own successful DPI models like Aadhaar, UPI,
and CoWIN.

● Significance: This led to the G20 adopting a framework for Systems of DPI, a
major contribution to global digital governance that can help other developing
countries build their own open and interoperable digital platforms.

Conclusion: Significance and Legacy of India's Presidency

India's G20 presidency was a watershed moment that significantly enhanced its global
stature.

It demonstrated India's diplomatic prowess in bridging the North-South divide and

acting as a consensus-builder in a deeply polarized world.

By placing development at the heart of the G20 agenda and securing landmark
outcomes like the African Union's membership, India successfully cemented its

166 © 2025 ISSF

credentials as a leading voice of the Global South and a constructive,
solutions-oriented global power.

While the future of some initiatives like the IMEC is uncertain due to external factors,
the overall legacy of the presidency is one that has reshaped the G20's priorities and
solidified India's role as a key player on the world stage.

3.2.3 G7 (Group of Seven) - India's engagement

Introduction: The G7 and its Role

The Group of Seven (G7) is an informal grouping of the world's leading advanced
economies.

Its member countries are Canada, France, Germany, Italy, Japan, the United Kingdom,
and the United States, with the European Union also participating as a
non-enumerated member.

The G7 operates as a steering committee for the global economy, bringing together
leaders to discuss and coordinate solutions for major global challenges, including
economic governance, international security, and energy policy.

While its relative economic weight has diminished with the rise of emerging
economies, the G7 remains an influential bloc due to the collective economic and
political power of its members and their shared commitment to democracy and a
rules-based international order.

167 © 2025 ISSF

India's Engagement with the G7: From Guest to Indispensable Partner
India is not a member of the G7.4 However, in recent years, India's engagement with
the G7 has become a regular and institutionalized feature, highlighting India's growing
global stature and the convergence of interests between India and the G7 nations.

● Evolution of Engagement: India has been consistently invited as an Outreach

Country to participate in G7 summits. This consistent invitation has
transformed India's role from that of a guest to an indispensable partner for the
G7 to consult with on key global issues.

● Recent Participation: India's Prime Minister participated in the Outreach

session of the most recent 51st G7 Summit, hosted by Canada in
Kananaskis in June 2025. This marked another successive year of India's
participation at the highest level.

Key Areas of Cooperation and Shared Agendas

The India-G7 engagement is focused on building partnerships to address complex
global challenges where collaboration is essential.

1. Infrastructure and Connectivity:

● Partnership for Global Infrastructure and Investment (PGII): The G7's
flagship PGII initiative, aimed at providing financing for sustainable and
high-quality infrastructure in developing countries, is seen as a direct
alternative to China's Belt and Road Initiative (BRI).

● India is a key partner for the G7 in this endeavor, with a focus on implementing
PGII projects in South Asia and the wider Indo-Pacific.

● Synergy with IMEC: There is a strong synergy between the PGII and the
India-Middle East-Europe Economic Corridor (IMEC), another major
connectivity project backed by India, the US, and key European G7 members.

2. Climate Change and Just Energy Transition:

● The G7 and India are working closely on climate action. The Just Energy
Transition Partnership (JETP) is a key framework through which G7
countries provide financial and technical support to help India achieve its
ambitious clean energy goals without compromising its development needs.

168 © 2025 ISSF

 ● Discussions also focus on building secure and resilient supply chains for clean
energy technologies, such as solar panels and batteries.

3. Technology, Digital Transformation, and AI Governance:

● This is a major emerging area of cooperation. The recent G7 summit in June
2025 had a strong focus on Artificial Intelligence (AI), particularly on shaping
global norms for the responsible and human-centric development and use of
AI.

● India's participation in these discussions is crucial, as its scale and leadership in

digital public infrastructure (DPI) make it a key player in setting global
technology standards.

4. Global Health and Food Security:

● The G7 and India have collaborated closely on global health security,
particularly in the aftermath of the COVID-19 pandemic. They also work
together on ensuring food security, especially for vulnerable countries in the
Global South.

The Strategic Context of the Engagement

The G7's consistent invitation to India is driven by a clear strategic rationale.

● A Democratic Counterweight to China: The G7 views India, the world's

largest democracy with a rapidly growing economy, as a vital partner and a
democratic counterweight to China's growing assertiveness in the Indo-Pacific
and beyond. Engaging with India is central to the G7's strategy for ensuring a
free, open, and rules-based regional order.

● Addressing Global Crises: In the context of the Russia-Ukraine conflict, the

G7 sees engagement with India as crucial. As a major global "swing state" with
an independent foreign policy, India's perspective and cooperation are
considered essential for addressing the global economic and political fallout of
the conflict.

● Amplifying the "Voice of the Global South": The G7 recognizes that no

solution to global problems (like climate change, poverty, and debt) can be
successful without the participation of the developing world. India, which
positioned itself as the "Voice of the Global South" during its G20 presidency,
is seen by the G7 as a crucial bridge to the developing world.

169 © 2025 ISSF

India's Perspective on Engaging with the G7:
For India, engaging with the G7 serves several key objectives:
● It provides a platform to align with the world's leading economic powers on its
own development priorities.

● It allows India to influence and shape the global agenda on critical issues from
a position of strength.

● It strengthens India's partnerships with key Western democracies while

allowing it to maintain its strategic autonomy.

● It reinforces India's credentials as a leading global power and a responsible

international actor.

Conclusion:
India's engagement with the G7 is a clear indicator of its rising global profile and the
central role it plays in contemporary international relations.

The partnership has moved beyond symbolism to practical cooperation on some of the
most pressing global challenges.

It reflects a growing convergence of interests between the world's leading democracies

on the need to uphold a rules-based order and provide sustainable solutions for global
development.

For the G7, India is an indispensable partner for tackling global issues; for India, the
G7 is a vital platform for advancing its national interests and shaping a more equitable
global order.

170 © 2025 ISSF

3.2.4 Commonwealth of Nations

Introduction: A Unique Global Network

The Commonwealth of Nations is a unique political association of 56 member states,
the vast majority of which are former territories of the British Empire.

It is not a political union but a voluntary association of sovereign equals, spanning

Africa, Asia, the Americas, Europe, and the Pacific.

Headed by the British monarch (currently King Charles III), the Commonwealth is a
values-based organization that provides a platform for its diverse members-from the
largest economies to the smallest island states-to cooperate on shared goals of
development, democracy, and peace.

History and Evolution

The modern Commonwealth has its roots in the British Empire but has transformed
significantly over the past century.

● Origins: The concept began with the Balfour Declaration of 1926, which
recognized the Dominions (like Canada and Australia) as autonomous
communities within the British Empire, equal in status to the United Kingdom.

● The London Declaration (1949): This was the landmark moment that created
the modern Commonwealth. To accommodate a newly independent and
republican India, the Declaration removed the requirement for members to
have the British monarch as their head of state.

● Instead, members would only need to accept the monarch as the symbolic
"Head of the Commonwealth." This decision allowed India to join as a
sovereign republic and paved the way for numerous other newly independent
nations to become members.

171 © 2025 ISSF

 ● Modern Commonwealth: Today, membership is voluntary and open to any
country that accepts the Commonwealth's fundamental values. Two members,
Mozambique and Rwanda, have no historical ties to the British Empire.

Core Values and Objectives

The Commonwealth is fundamentally a values-based organization. Its principles are
enshrined in the Commonwealth Charter (2013), which outlines a commitment to:

● Democracy and Good Governance

● Human Rights and the Rule of Law

● International Peace and Security

● Sustainable Development

● Gender Equality

● Recognizing the needs of small states

Key Areas of Cooperation

The Commonwealth Secretariat facilitates cooperation across several key areas:

1. Promoting Democracy and Good Governance: The Commonwealth

provides technical assistance to strengthen democratic institutions.
Commonwealth Observer Groups are regularly sent to monitor elections in
member countries to ensure they are free and fair.

2. Trade and Economic Cooperation:

○ The "Commonwealth Advantage" refers to the fact that trade costs

between member countries are, on average, 21% lower due to shared
language, similar legal and administrative systems, and historical ties.

○ The biennial Commonwealth Heads of Government Meeting

(CHOGM) and associated forums like the Commonwealth Business
Forum aim to boost intra-Commonwealth trade, which is projected to
surpass $1 trillion by 2026.

3. Supporting Small and Vulnerable States: A key role of the Commonwealth

is to provide a platform and amplify the voice of its small member states (32 of

172 © 2025 ISSF

 the 56 members are classified as small states). It has a strong focus on
addressing the challenges faced by Small Island Developing States (SIDS),
particularly climate change and ocean sustainability. The Apia
Commonwealth Ocean Declaration, adopted at the Samoa CHOGM in 2024,
is a recent example.

4. Youth and Education: The Commonwealth Youth Programme and the

Commonwealth of Learning (COL), which promotes distance education, are
key initiatives focused on empowering the youth, who make up over 60% of
the Commonwealth's population.

India's Role in the Commonwealth

India, as the most populous member state (accounting for nearly 60% of the
Commonwealth's total population), plays a crucial and influential role.

● A Key Contributor: India is the fourth-largest contributor to the

Commonwealth's budgets and programs, providing significant financial support
and technical expertise.

● Platform for "Third World" Solidarity: In the early years, India used the
Commonwealth platform to champion the causes of anti-colonialism and
anti-racism, particularly in the fight against apartheid in South Africa.

● A Bridge to Small States: The Commonwealth provides India with a unique

platform to engage with a diverse range of countries, especially the small island
states in the Caribbean and the Pacific where India may not have a permanent
diplomatic mission.

● Projecting an Alternative Model: As a forum where China is not a member,

the Commonwealth offers India an opportunity to project its own model of
development cooperation and partnership, which is based on democratic values
and consensus.

● Leveraging Technical Expertise: India contributes significantly to the

Commonwealth Fund for Technical Co-operation (CFTC) by providing
Indian experts for various development programs across the Commonwealth, a
prime example of South-South cooperation.

173 © 2025 ISSF

Contemporary Relevance and Challenges
In the 21st century, the Commonwealth faces questions about its relevance and
impact.

● Relevance:

○ Soft Power Network: It remains a unique global network connected by

shared history and values, providing a platform for dialogue and
fostering goodwill.

○ Voice for Small States: It plays a vital role in amplifying the voices of
small and vulnerable nations on global issues like climate change.

○ Trade Potential: The "Commonwealth Advantage" still holds potential

for boosting trade among its members.

● Challenges:

○ Lack of Geopolitical Clout: The Commonwealth is not a security

alliance or a powerful trading bloc. Its decisions are non-binding, and it
lacks the power to enforce its resolutions.

○ Funding Constraints: The organization is significantly under-resourced

compared to other international bodies like the UN, which limits its
operational capacity.

○ Lack of Cohesion: The diverse political and economic interests of its

56 members often lead to a lack of cohesion on major geopolitical
issues.

○ Question of a Post-Monarchy Role: There is an ongoing debate about

the future role of the British monarch as the head of the organization and
whether the position should be rotational.

Conclusion:
The Commonwealth of Nations is a unique relic of history that has successfully
transformed itself into a modern, values-based network.

While it may lack the hard power of other international groupings, its strength lies in
its diversity, its focus on consensus and shared values, and its role as a champion for
its smaller member states.

174 © 2025 ISSF

3.2.5 Non-Aligned Movement (NAM) - Contemporary Relevance
Introduction: A Legacy of the Cold War

The Non-Aligned Movement (NAM) is a forum of 120 developing world states that
are not formally aligned with or against any major power bloc.

It is the largest grouping of states worldwide after the United Nations.

Established during the Cold War, NAM was a powerful platform for the newly
independent nations of Asia, Africa, and Latin America to assert their strategic
autonomy and resist the pressure to join one of the two opposing camps led by the
United States and the Soviet Union.

Today, in a vastly different global landscape, NAM continues to function, but faces
significant questions about its purpose and relevance.

History and Origins

● Founding Principles: The philosophical basis for NAM was laid at the
Bandung Conference in Indonesia in 1955, which articulated the "Ten
Principles of Bandung" for promoting world peace and cooperation.

● Establishment: The movement was formally established at the First NAM

Summit Conference in Belgrade, Yugoslavia, in 1961. Its key architects were
India's Jawaharlal Nehru, Yugoslavia's Josip Broz Tito, Egypt's Gamal Abdel
Nasser, Ghana's Kwame Nkrumah, and Indonesia's Sukarno.

● Core Objective: The primary objective during the Cold War was to uphold the
right of independent judgment, to oppose colonialism and apartheid, and to
advocate for peace and disarmament, creating a "third way" that was
independent of the two superpower blocs.

175 © 2025 ISSF

Arguments for Contemporary Relevance
While its original context of a bipolar world has disappeared, proponents argue that
NAM remains relevant for several reasons:

1. A Platform for the Global South:

● As the largest collective forum of developing countries, NAM remains a vital
platform for the nations of the Global South to coordinate their positions,
articulate their shared interests, and amplify their collective voice on the global
stage.

2. Advocating for a Rules-Based Multipolar World:

● NAM continues to advocate for the reform of global governance institutions,
particularly the UN Security Council, to make them more representative and
democratic. It champions the cause of multilateralism and a world order based
on international law, not on the dictates of a few powerful nations.

3. The Principle of Strategic Autonomy:

● The core NAM principle of maintaining strategic autonomy is arguably more
relevant today in the context of a new era of great power competition, primarily
between the United States and China. NAM provides a philosophical basis for
countries to resist pressure to choose sides and to pursue an independent
foreign policy based on their own national interests.

4. Addressing 21st-Century Global Challenges:

● The NAM agenda has evolved to address contemporary global challenges that
disproportionately affect developing countries. At its most recent 19th Summit
in Kampala, Uganda (January 2024), the focus was on issues such as:

○ Sustainable Development and Climate Justice.

○ Post-Pandemic Economic Recovery.

○ Global Health Equity.

○ Countering Terrorism.

○ Addressing food and energy insecurity.

176 © 2025 ISSF

Challenges and Criticisms: A Movement in Search of a Mission?
Despite the arguments for its relevance, NAM faces profound challenges that have led
many to question its effectiveness.

● Lack of Cohesion and Unity: With 120 member states with diverse and often
conflicting interests, achieving a consensus on major geopolitical issues is
extremely difficult. The group has failed to take a strong, unified stance on
many recent conflicts, including the Russia-Ukraine war, with its members
voting differently at the UN.

● Internal Contradictions: The principle of non-alignment is often undermined

by the actions of its own members. Many NAM countries have deep strategic
and military alliances with major global powers (including the US, China, and
Russia), which contradicts the movement's foundational ethos.

● Ineffectiveness and Lack of Influence: Critics often dismiss NAM as a "talk

shop" that produces lengthy declarations with little or no real-world impact. It
lacks the institutional mechanisms, financial resources, and political will to
implement its resolutions, making it far less influential than more dynamic
groupings like the G20 or BRICS.

● Obsolete Original Mission: With the end of the Cold War, the original mission
of being "non-aligned" between two specific blocs became obsolete. The
movement has struggled to redefine its purpose and identity in the new global
order.

India's Role and Perspective

India's engagement with NAM has evolved significantly. While Nehru was a founding
father and NAM was a cornerstone of India's foreign policy for decades, its
importance has since been recalibrated.

● A Shift in Priority: In the post-Cold War era, India has moved towards a more
pragmatic foreign policy of "multi-alignment," building strategic partnerships
with countries across different blocs, including the US (through the Quad) and
Russia/China (through BRICS/SCO). NAM is no longer the central pillar of
India's foreign policy.

● Platform for the "Voice of the Global South": India now views NAM as a
valuable platform, but primarily as a forum to advance its credentials as a
"Voice of the Global South." It uses the platform to build consensus among

177 © 2025 ISSF

 developing countries on issues of shared interest, such as the reform of
multilateral institutions, climate finance, and sustainable development.

● A Forum for Diplomatic Outreach: NAM provides India with a useful venue
to engage with a large number of countries from Asia, Africa, and Latin
America, with whom it may not have intensive bilateral interactions.

Conclusion:
The Non-Aligned Movement is a historic movement with a rich legacy of
championing decolonization and strategic autonomy. In the 21st century, it faces a
crisis of identity and effectiveness.

While it continues to provide a valuable platform for the countries of the Global South
to discuss shared challenges, its inability to enforce its decisions or take unified stands
on critical geopolitical issues has diminished its global influence.

For India, NAM has transitioned from being the primary anchor of its foreign policy
to one of several platforms it uses to pursue its national interests and to champion the
cause of a more equitable and multipolar world order. Its relevance today lies less in
its name and more in its potential as the collective voice of the developing world.

178 © 2025 ISSF

3.3 Major Agreements Involving India or Affecting its Interests
3.3.1 Key Economic Agreements
In the post-liberalization era, India has increasingly used Free Trade Agreements
(FTAs) and Comprehensive Economic Partnership Agreements (CEPAs) as key tools
of its foreign policy.

These agreements are designed to boost trade, attract investment, and strategically
integrate India's economy with key partner countries and regions. Below is an
overview of five of India's most significant economic agreements.

3.3.1.1 India-ASEAN FTA (AITIGA)

● Agreement: The ASEAN-India Trade in Goods Agreement (AITIGA), a form
of Free Trade Agreement (FTA), was signed in 2009 and came into force in
2010.

● Objective: To create a free trade area between India and the ten member states
of ASEAN, aiming to boost trade and economic integration between two of the
world's most dynamic economic regions.

● Current Status and Challenges:

○ While bilateral trade has grown significantly, the agreement has been
widely seen as more beneficial to ASEAN than to India. India's trade
deficit with ASEAN has widened considerably since the AITIGA was
implemented.

○ India has raised concerns about restrictive Rules of Origin and non-tariff
barriers that have limited its market access to the ASEAN region.

○ Ongoing Review: Due to these concerns, India formally requested a

review of the AITIGA. The review process officially began in 2024.

However, as of mid-2025, the negotiations are making very slow

progress. There is a clear divergence in approach: India is pushing for a
swift conclusion by the end of 2025 to rectify the imbalances, while
ASEAN members favor a more gradual, consensus-driven approach.

179 © 2025 ISSF

3.3.1.2 India-South Korea CEPA
● Agreement: The Comprehensive Economic Partnership Agreement (CEPA)
between India and South Korea was implemented in 2010.

● Objective: To liberalize trade in goods and services, facilitate investment, and

promote deeper economic cooperation between the two major Asian
economies.

● Current Status and Upgrade:

○ Bilateral trade has more than doubled since the CEPA was signed,
crossing the $25 billion mark.

○ However, both countries recognized the need to update the agreement to

reflect the current global economic landscape.

○ Negotiations to upgrade the CEPA have been ongoing for several years
and are now in an advanced stage. The upgraded agreement aims to
provide better market access, reduce trade barriers further, and include
new areas like digital trade and supply chain resilience.

3.3.1.3 India-Japan CEPA

● Agreement: The Comprehensive Economic Partnership Agreement (CEPA)
between India and Japan came into force in 2011.

● Objective: To strengthen economic ties by liberalizing trade, promoting

investment, and facilitating the movement of professionals between two of
Asia's largest democracies.

● Current Status and Impact:

○ The agreement has had a positive impact on investment, with Japan

being one of the largest foreign investors in India.

○ However, the impact on bilateral trade has been less than spectacular.
Trade has grown but has not met the ambitious targets, and India
continues to have a significant trade deficit with Japan.

○ Unlike the agreement with South Korea, the process to formally review
or upgrade the India-Japan CEPA has been slower, though discussions
on improving its effectiveness are ongoing.

180 © 2025 ISSF

3.3.1.4 India-Australia ECTA & CECA
● Agreements: This partnership involves two stages:

○ ECTA (Economic Cooperation and Trade Agreement): An interim

agreement that came into force in December 2022.

○ CECA (Comprehensive Economic Cooperation Agreement): The

full, comprehensive agreement which is still under negotiation.

● Objective: To significantly boost the economic relationship by providing

tariff-free access for a wide range of goods and services.

● Current Status and Impact:

○ The ECTA has had a tangible positive impact, providing immediate

duty-free access for over 96% of Indian exports to Australia and 85% of
Australian exports to India. This has led to healthy growth in bilateral
trade, which has crossed the $30 billion mark.

○ Negotiations for the full CECA are ongoing. These talks are more
complex as they involve sensitive issues not covered in the interim deal,
such as digital trade, rules for services, and investment protection.

3.3.1.5 India-UAE CEPA

● Agreement: The Comprehensive Economic Partnership Agreement (CEPA)
between India and the UAE was signed and implemented in a record time,
coming into force in May 2022.

● Objective: To build on the already strong economic ties and elevate the
partnership to a new strategic level.

● Current Status and Impact:

○ The India-UAE CEPA is widely hailed as a major success story and a

model for other trade agreements.

○ It has provided a massive boost to bilateral trade, which has surged to

over $85 billion, making the UAE one of India's top three trading
partners.

○ The agreement has gone beyond just trade, facilitating new initiatives
like the rupee-dirham trade settlement mechanism, which allows

181 © 2025 ISSF

 businesses to bypass the US dollar, and strengthening investment flows.
It has also created a positive synergy for collaboration in other areas,
such as technology, education, and regional connectivity.

3.3.1.2 SAFTA (South Asian Free Trade Area)

Introduction: The Vision for an Integrated South Asian Economy
The Agreement on the South Asian Free Trade Area (SAFTA) is the primary trade
agreement of the South Asian Association for Regional Cooperation (SAARC). It was
signed in 2004 during the 12th SAARC Summit in Islamabad, Pakistan, and came into
force in 2006.

The agreement was envisioned as a landmark step towards creating an integrated

South Asian market, aiming to boost intra-regional trade and economic cooperation
among the SAARC member states: Afghanistan, Bangladesh, Bhutan, India,
Maldives, Nepal, Pakistan, and Sri Lanka.

Despite its ambitious goals, SAFTA is widely regarded as a failure, having had a
negligible impact on regional trade volumes.

Objectives of SAFTA
The core objectives of the SAFTA agreement are:

● To promote and enhance mutual trade and economic cooperation by

eliminating barriers to trade.

● To provide fair conditions of competition within the free trade area.

● To ensure equitable benefits for all member states, taking into account their
respective levels of economic development.

● To establish a framework for further regional cooperation to expand and

enhance the mutual benefits of the agreement.

● To ultimately move towards a South Asian Economic Union (SAEU) in the

long term.

182 © 2025 ISSF

Key Features and Mechanisms
SAFTA was designed to be implemented through several key mechanisms:

1. Trade Liberalisation Programme (TLP): This was the central mechanism of

the agreement. It mandated a phased reduction of customs duties on all traded
goods. The goal was to reduce tariffs to a level between 0% and 5% by 2016.

2. Sensitive Lists: This mechanism is one of the primary reasons for SAFTA's
ineffectiveness. Each member country is allowed to maintain a "sensitive list"
of items that are excluded from the tariff concessions.

3. These lists are meant to protect domestic industries but have been used
extensively by all countries, including India and Pakistan, to protect their key
sectors from regional competition. A large number of high-potential trade items
remain on these lists, defeating the purpose of a free trade area.

4. Rules of Origin: The agreement lays down criteria to determine the national
origin of a product to be eligible for the tariff concessions. These rules are
often criticized for being complex and restrictive, making it difficult for
businesses to utilize the agreement.

5. SAFTA Ministerial Council (SMC): This is the highest decision-making

body of SAFTA, responsible for reviewing the implementation of the
agreement and resolving any issues that may arise.

Performance and Impact: A Story of Failure

The performance of SAFTA since its implementation in 2006 has been extremely
disappointing. It has failed to achieve its primary objective of boosting intra-regional
trade.

● Persistently Low Intra-regional Trade: Intra-regional trade in South Asia

remains one of the lowest in the world, hovering at a dismal 5-6% of the
region's total trade. This figure has barely changed since SAFTA was
implemented. In sharp contrast, intra-regional trade in other blocs like ASEAN
is around 25%, and in the European Union, it is over 60%.

● Underutilization of the Agreement: Studies have shown that the agreement is

heavily underutilized by businesses across the region. A vast majority of trade
between SAARC countries still takes place outside the SAFTA framework,

183 © 2025 ISSF

 using standard WTO tariffs, because the complexities and restrictions of the
agreement often outweigh the benefits of the tariff concessions.

Challenges and Reasons for Failure

The failure of SAFTA is not due to a flaw in its economic logic but is a direct result of
the deep-seated political and structural challenges in the South Asian region.

1. The India-Pakistan Rivalry: This is the single biggest political obstacle. The
lack of political trust and the constant state of conflict between the two largest
economies in the region have made any meaningful economic integration
impossible. The suspension of all bilateral trade by Pakistan with India
since 2019 has dealt a major blow to the very foundation of the agreement.

2. The Dominance of Non-Tariff Barriers (NTBs): Even where tariffs have

been reduced, trade is severely restricted by a vast array of NTBs. These
include:

○ Complex customs procedures and documentation.

○ A lack of adequate trade infrastructure at land borders.

○ Protectionist domestic regulations and quality standards that are often

used to block imports.

3. Restrictive Sensitive Lists: As mentioned earlier, the extensive sensitive lists

maintained by all countries protect their key domestic industries from regional
competition. For example, key sectors like textiles and agriculture are heavily
protected, which are areas where other countries in the region could be
competitive.

4. Lack of Connectivity: Poor physical connectivity-inadequate road, rail, and

port infrastructure-makes the cost of trading between neighboring countries
prohibitively high. In many cases, it is cheaper for a South Asian country to
trade with a distant country in Europe or East Asia than with its own neighbor.

5. Fear of Indian Dominance: Smaller member states often have an

apprehension that opening their markets fully would lead to their domestic
industries being overwhelmed by the much larger and more competitive Indian
economy.

184 © 2025 ISSF

Conclusion:
SAFTA represents a classic case of a well-intentioned economic agreement being held
hostage by political conflict and a lack of political will. On paper, it had the potential
to transform the economic landscape of the world's most populous and least integrated
region.

In reality, it has remained largely an unfulfilled promise. The deep-seated rivalry

between India and Pakistan, coupled with a web of non-tariff barriers and protectionist
mindsets, has ensured that the vision of an integrated South Asian economy remains a
distant dream.

The current focus of India and other like-minded nations on alternative regional
forums like BIMSTEC is a direct consequence of SAFTA's and, by extension,
SAARC's profound failure.

185 © 2025 ISSF

3.3.1.3 RCEP (Regional Comprehensive Economic Partnership) - Why
India Did Not Join

Introduction: What is RCEP? The Regional Comprehensive Economic Partnership

(RCEP) is a massive free trade agreement (FTA) between the ten member states of the
Association of Southeast Asian Nations (ASEAN) and five of its key trading partners:
China, Japan, South Korea, Australia, and New Zealand .

Signed in November 2020 and entering into force in January 2022, RCEP is the
world's largest trade bloc, covering approximately 30% of the world's population
and 30% of global GDP.

Its primary goal is to create an integrated market by reducing tariffs and non-tariff
barriers, streamlining customs procedures, and simplifying rules of origin.

India was a key participant in the RCEP negotiations for seven years.

However, in a significant move in November 2019, India announced its decision to

withdraw from the agreement, citing unresolved core concerns and a determination to
protect its national interests.

186 © 2025 ISSF

Why India Did Not Join RCEP: A Detailed Analysis of Core Concerns
India's decision was not sudden but was the culmination of its long-standing concerns
that were not adequately addressed during the negotiation process.

The key reasons were:

1. The China Factor and the Threat of a Widening Trade Deficit:

● This was the single most important factor. India already had a large and
growing trade deficit with China (over $50 billion at the time).

● There was a strong and credible apprehension that joining RCEP would lead to
a flood of cheap Chinese goods into the Indian market, as the agreement would
have drastically reduced tariffs. This would have decimated many domestic
industries, particularly the Micro, Small, and Medium Enterprises (MSME)
sector.

2. Inadequate "Rules of Origin":

● "Rules of Origin" are the criteria used to determine the national source of a
product. India was concerned that RCEP's rules of origin were not stringent
enough.

● This created a risk of circumvention, where China could potentially reroute its
products through other RCEP member countries with minimal value addition to
bypass Indian tariffs and anti-dumping duties.

For example, a Chinese product could be sent to an ASEAN country, slightly

modified, and then exported to India under the lower RCEP tariff rates,
effectively nullifying India's trade protections against China.

3. Lack of an "Auto-trigger" Safeguard Mechanism:

● To protect against a sudden surge in imports, India had proposed an
"auto-trigger" mechanism. This would have allowed India to automatically
increase tariffs on a product if its imports crossed a certain threshold.

● This demand for a credible safeguard against import surges was not accepted
by the other RCEP members, leaving India's industries vulnerable.

4. The "Ratchet" Obligation and Loss of Policy Flexibility:

● RCEP included a "ratchet" obligation, which means a member country cannot
raise tariffs or re-impose restrictions once they have been lowered or removed.

187 © 2025 ISSF

 ● This was unacceptable to India as it would have permanently locked the
country into its existing levels of trade liberalization, preventing future
governments from making policy changes to protect domestic industries if
needed. It represented a significant loss of policy-making flexibility.

5. Impact on Vulnerable Sectors: Agriculture and Dairy:

● India has a massive and politically sensitive agricultural and dairy sector,
which provides livelihoods to hundreds of millions of people.

● There were strong fears that joining RCEP would force India to open its market
to highly efficient agricultural and dairy producers like Australia and New
Zealand. This could have led to a surge in cheap imports, devastating the
livelihoods of Indian farmers and dairy producers. This concern triggered
widespread protests from farmer and dairy cooperatives across the country.

6. Insufficient Market Access for India's Services Sector:

● While RCEP would have required India to open its goods market extensively,
the market access being offered for India's competitive services sector and for
the movement of its skilled professionals was not seen as commensurate.

● India argued that the deal was unbalanced, demanding significant concessions
on goods without offering meaningful gains for its primary area of export
strength-services.

Implications of India's Decision

India's decision to withdraw from RCEP has both potential costs and benefits.

● Potential Costs:

○ Exclusion from Regional Value Chains: Not being part of the world's
largest trade bloc could mean that India is left out of the deeply
integrated regional supply and value chains that will develop among
RCEP members.

○ Loss of Influence: India has lost the opportunity to be a part of the

rule-making process for trade in the vast Indo-Pacific region.

188 © 2025 ISSF

 ● Benefits and India's Alternative Strategy:

○ Protecting Domestic Industry: The decision has been hailed by many

domestic industries, MSMEs, and farmer groups for protecting them
from a potentially crippling surge in imports, especially from China.

○ Strategic Pivot to Bilateral FTAs: Since withdrawing from RCEP,

India has adopted a clear strategy of pursuing bilateral Free Trade
Agreements with like-minded countries that offer more balanced and
equitable deals.

○ The successful and swift conclusion of FTAs with the UAE and
Australia (ECTA), and ongoing negotiations with the UK and the EU,
are direct outcomes of this new strategy.

Conclusion: India's decision not to join RCEP was a significant and deliberate
strategic choice. It was a clear signal that while India is committed to trade
liberalization, it will not do so at the cost of its core national and economic interests.

The decision prioritized the protection of its domestic industries and its most
vulnerable sectors over the potential benefits of joining a large, but perceived to be
unbalanced, regional trade bloc dominated by China. The subsequent focus on
comprehensive and mutually beneficial bilateral FTAs represents India's new, more
cautious, and interest-driven approach to global trade integration.

189 © 2025 ISSF

3.3.2 Key Defence and Security Agreements
3.3.2.1 Foundational Agreements with the USA (LEMOA,
COMCASA, BECA, GSOMIA)
Introduction: The Architectural Framework of a Strategic Partnership
The defence relationship between India and the United States has undergone a
dramatic transformation, moving from near-zero interaction to a deep and
multi-faceted strategic partnership.

A key element of this transformation has been the signing of four "foundational
agreements." These are standard agreements that the U.S. signs with its allies and
close partners to build a framework for military cooperation and enhance
interoperability.

India's signing of all four agreements, after years of hesitation, signifies a high degree
of political trust and a deep strategic convergence between the two nations,
particularly in the context of the Indo-Pacific.

The Four Foundational Agreements:

1. GSOMIA (General Security of Military Information Agreement)
● Signed: 2002

● Purpose: GSOMIA was the first foundational agreement to be signed. It

provides a legal framework that allows for the sharing of classified military
intelligence between the two countries. It sets out the standards and protocols
for protecting the shared intelligence from being compromised.

● Industrial Security Annex (ISA): An extension to GSOMIA, the ISA was

signed in 2019. It allows for the sharing of classified information between the
defence industries of both nations, a crucial prerequisite for enabling private
sector collaboration in defence manufacturing and co-production.

2. LEMOA (Logistics Exchange Memorandum of Agreement)

● Signed: 2016

● Purpose: LEMOA is a logistics support agreement that allows the militaries of

India and the U.S. to use each other's bases for supplies, repairs, and rest. It is a

190 © 2025 ISSF

 reciprocal agreement that works on a "book-keeping" or reimbursable basis,
meaning no funds are exchanged upfront.

● What it allows:

○ Access to each other's designated military facilities for refueling,

berthing, and logistical support.

○ Provision of food, water, spare parts, and other essential supplies.

○ Support during joint exercises, training, and humanitarian assistance and

disaster relief (HADR) operations.

● What it is NOT: It is not a basing agreement. It does not grant the U.S. the
right to establish military bases on Indian soil, nor does it make it obligatory
for either country to provide support. It is an enabling agreement that simplifies
the process when support is required and mutually agreed upon.

● Significance: It significantly enhances the operational reach and endurance of

both militaries, particularly for the Indian Navy operating in the vast
Indo-Pacific.

3. COMCASA (Communications Compatibility and Security Agreement)

● Signed: 2018

● Purpose: COMCASA provides a legal framework for the U.S. to transfer its
high-end, secure, and encrypted communications equipment to India. It
ensures the security of communication channels between the military platforms
of the two countries.

● Significance:

○ Interoperability: It allows the Indian and U.S. militaries to

communicate securely and seamlessly during joint exercises and
potential operations. For example, an Indian naval ship can
communicate directly with a U.S. naval ship over a secure, encrypted
channel.

○ Access to Advanced Platforms: It is a necessary prerequisite for India

to acquire advanced U.S. military platforms that come pre-fitted with
this secure communication architecture, such as the MQ-9B armed
drones and P-8I maritime patrol aircraft.

191 © 2025 ISSF

4. BECA (Basic Exchange and Cooperation Agreement)
● Signed: 2020

● Purpose: BECA, the last of the four agreements to be signed, allows for the
sharing of geospatial intelligence (GEOINT) between the two countries.

● What it allows: India gets access to the vast U.S. repository of unclassified
and controlled unclassified geospatial data, including:

○ High-resolution satellite imagery and topographical maps.

○ Nautical and aeronautical charts.

○ Geodetic and geophysical data.

● Significance:

○ A "Force Multiplier": BECA is considered a significant force

multiplier for the Indian military. The real-time geospatial data allows
for a much higher degree of accuracy for India's missiles, armed drones,
and other automated systems.

○ Enhanced Targeting: It enables Indian cruise and ballistic missiles to

strike targets with pinpoint accuracy by using the U.S. satellite
navigation data to guide them. It also enhances the effectiveness of
air-launched bombs and drones.

Overall Strategic Significance:

● Deepening Trust: India's initial hesitation to sign these agreements stemmed
from concerns about compromising its "strategic autonomy" and being drawn
into a formal U.S.-led alliance system. The eventual signing of all four, with
India-specific safeguards, reflects a major pragmatic shift and a deep level of
political and military trust.

● Enhanced Interoperability: Together, these agreements create a robust

framework for the two militaries to operate together seamlessly, a key
requirement for any joint response to a regional crisis.

● Strategic Signaling: The signing of these agreements sends a powerful

strategic signal to the rest of the world, particularly China, about the close and
deepening defence alignment between the world's two largest democracies in
the Indo-Pacific.

192 © 2025 ISSF

3.3.2.2 India-US Civil Nuclear Deal

Introduction: A Landmark Diplomatic Achievement

The India-US Civil Nuclear Deal, formally known as the U.S.–India Civil Nuclear
Agreement or "123 Agreement," is a landmark bilateral agreement that governs civil
nuclear cooperation between the two countries.

Signed in 2008, the deal was a historic and transformative moment in international
diplomacy.

It ended India's three-decade-long isolation from the global nuclear mainstream,

granted it de-facto recognition as a responsible nuclear power outside the
Non-Proliferation Treaty (NPT) framework, and became the centerpiece of the
broader strategic transformation in India-US relations.

Historical Context: India's Nuclear Isolation

To understand the significance of the deal, it is crucial to understand the context of
India's prior nuclear isolation.

● The 1974 "Smiling Buddha" Test: After India conducted its first "peaceful"
nuclear explosion in 1974, it faced a severe international backlash. 2

● Formation of the Nuclear Suppliers Group (NSG): In response to India's

test, the NSG was formed in 1974. It is a group of nuclear supplier countries
that seeks to prevent nuclear proliferation by controlling the export of
materials, equipment, and technology used for nuclear weapons.

● The Embargo: The NSG imposed a strict embargo on all forms of nuclear
trade and cooperation with India because India was not a signatory to the
Non-Proliferation Treaty (NPT), which it considered discriminatory. This

193 © 2025 ISSF

 "nuclear apartheid" cut India off from the global nuclear community for over
30 years.

The Making of the Deal: Key Milestones (2005-2008)

The deal was the result of years of complex and painstaking negotiations. The key
milestones were:

1. July 2005 Joint Statement: The process was formally launched with a joint
statement by Indian Prime Minister Dr. Manmohan Singh and US President
George W. Bush. The US committed to working towards full civil nuclear
cooperation with India, while India committed to separating its civil and
military nuclear facilities.

2. India's Civil-Military Separation Plan (2006): India identified and declared

14 of its 22 thermal power reactors as "civilian" and agreed to place them under
permanent International Atomic Energy Agency (IAEA) safeguards. The
remaining 8 reactors were designated as "military" and would remain outside
any international inspection.

3. India-IAEA Safeguards Agreement (August 2008): The IAEA board

approved the India-specific safeguards agreement, a crucial step that allowed
international monitoring of its civilian nuclear facilities.

4. The NSG Waiver (September 2008): This was the most significant
diplomatic hurdle.8 The US led a major diplomatic effort to persuade the
48-nation NSG to grant a unique, clean, and unconditional waiver to India.
This waiver allowed NSG members to engage in civil nuclear trade with India
despite it not being a signatory to the NPT.

5. The "123 Agreement" (October 2008): With the IAEA and NSG approvals in
place, the final bilateral agreement, named after Section 123 of the US Atomic
Energy Act of 1954, was signed into law.

Strategic Implications for India

The deal was a watershed moment for Indian foreign policy with profound strategic
implications.

● End of Nuclear Isolation: It ended India's 34-year-long nuclear isolation and

brought it into the global nuclear mainstream.

194 © 2025 ISSF

 ● De-facto Recognition as a Nuclear Power: The deal was an implicit
acknowledgement of India's status as a responsible nuclear weapons state,
achieving this without signing the NPT or compromising its strategic nuclear
deterrent.

● Access to Technology and Fuel: It opened the doors for India to import
nuclear fuel and advanced reactor technology from across the world, not just
from the US, which is crucial for meeting its growing energy needs.

● Centerpiece of the Strategic Partnership: The deal was the transformative

centerpiece of the India-US relationship. The immense political capital
invested by both sides to see it through built a foundation of trust that paved the
way for the deep defence and security cooperation that followed.

Current Status of Commercial Implementation (as of July 2025)

While the deal was a resounding strategic and diplomatic success, its commercial
promise has remained largely unfulfilled.

● The Sticking Point: India's Nuclear Liability Law: The primary obstacle to
the commercial implementation of the deal is India's Civil Liability for
Nuclear Damage Act (CLNDA) of 2010.

○ Section 17(b) - Supplier Liability: This specific clause gives the

operator (the Nuclear Power Corporation of India Ltd. - NPCIL) the
"right of recourse" to sue the suppliers of nuclear equipment in the event
of an accident.

○ Conflict with Global Norms: This "supplier liability" provision is seen

as being inconsistent with international norms, such as the Convention
on Supplementary Compensation for Nuclear Damage (CSC), which
channel all liability exclusively to the operator of the nuclear plant.

● Stalled Projects: Due to this liability issue, US nuclear reactor companies like
Westinghouse have been unable to finalize contracts to build reactors in India.

The flagship project for Westinghouse to build six AP1000 reactors at

Kovvada, Andhra Pradesh, remains stalled.

While both governments have established an "India Nuclear Insurance Pool" to

mitigate some of the financial risk, it has not been sufficient to resolve the core
concerns of the suppliers.

195 © 2025 ISSF

Conclusion:
The India-US Civil Nuclear Deal remains a monumental achievement of Indian
diplomacy. It fundamentally reset India's position in the global order and supercharged
its strategic partnership with the United States.

However, the chasm between its strategic success and its commercial implementation
is stark. Until the complex issues surrounding India's domestic liability law are
resolved in a manner that is acceptable to international suppliers, the vision of
large-scale nuclear power generation in India with US and other foreign assistance
will remain a distant goal.

196 © 2025 ISSF

3.3 Global Pacts and Conventions
3.3.3.1 Paris Agreement on Climate Change
Introduction: A Landmark Global Climate Accord
The Paris Agreement is a landmark international treaty on climate change, adopted by
196 Parties at the 21st Conference of the Parties (COP21) in Paris, France, on
December 12, 2015.

It is a legally binding agreement that covers climate change mitigation, adaptation,

and finance.

The agreement represents a global consensus to combat climate change and to

accelerate and intensify the actions and investments needed for a sustainable
low-carbon future.

Core Objectives and Key Mechanisms

The overarching goal of the Paris Agreement is to hold the increase in the global
average temperature to well below 2°C above pre-industrial levels and to pursue
efforts to limit the temperature increase to 1.5°C.

To achieve this, the agreement works through several key mechanisms:

1. Nationally Determined Contributions (NDCs): This is the heart of the Paris

Agreement's "bottom-up" approach. Each country is required to outline and
communicate its post-2020 climate actions, known as its NDC. Countries are
expected to submit new and more ambitious NDCs every five years.

2. The Global Stocktake (GST): Every five years, the parties take a collective
stocktake of the progress made towards achieving the agreement's long-term
goals. The first GST concluded at COP28 in 2023, finding that the world is
significantly off-track, and its outcome is meant to inform the next round of
more ambitious NDCs.

3. Enhanced Transparency Framework (ETF): The agreement establishes a

framework for the transparent reporting of the progress made by each country
on its climate actions (mitigation and adaptation) and the support provided or
received (finance, technology transfer).

197 © 2025 ISSF

 4. Common But Differentiated Responsibilities (CBDR): The agreement
acknowledges the principle of "common but differentiated responsibilities
and respective capabilities, in light of different national circumstances."

This means that while all countries must take action, developed countries, with
their historical responsibility for high emissions and greater financial capacity,
are expected to take the lead and provide financial and technological support to
developing countries.

India's Role and Commitments

India has been a key player in the climate negotiations and has emerged as a leader
among developing nations, advocating for climate justice and equity. India's climate
action is guided by its ambitious domestic targets, articulated as the "Panchamrit"
(five nectars) at COP26 and subsequently formalized in its updated NDC in 2022.

India's Key NDC Targets (to be achieved by 2030):

1. To reduce the emissions intensity of its GDP by 45 percent from 2005 levels.

2. To achieve about 50 percent cumulative electric power installed capacity from

non-fossil fuel-based energy resources.

3. To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2

equivalent through additional forest and tree cover.

4. A long-term goal to reach Net Zero emissions by 2070.

India's Stance in Negotiations:

● Climate Justice: India consistently argues that developing countries must be
given the "carbon space" to pursue their development goals and that the burden
of emission reductions must be borne primarily by developed nations due to
their historical emissions.

● Climate Finance: India is a strong voice demanding that developed countries

fulfill their financial commitments to support climate action in the developing
world.

● Lifestyle for Environment (LiFE) Mission: India has championed the LiFE
Mission on the global stage, a movement that calls for a shift from wasteful
consumption to mindful and sustainable lifestyles, arguing that individual and
community action is crucial for tackling climate change.

198 © 2025 ISSF

Contemporary Challenges and Global Debates
Despite the universal ratification of the Paris Agreement, its implementation faces
significant challenges.

1. The Climate Finance Gap:

● This is the most critical and contentious issue. Developed countries had
pledged to jointly mobilize $100 billion per year by 2020 to help developing
countries with their climate actions. This target was only met for the first time
in 2022, years behind schedule, creating a major trust deficit.

● The New Collective Quantified Goal (NCQG): The central debate at the
COP29 in Baku (November 2024) was to set a new, post-2025 climate
finance goal.

● While a decision was made to set a new goal starting from a baseline of $100
billion, the final, much larger quantum (which developing countries, including
India, argue should be in the trillions) and the specific responsibilities of
contributors were deferred to be finalized at COP30 in Belém, Brazil (2025).

2. The Ambition Gap:

● The first Global Stocktake clearly showed that the current NDCs are
insufficient to limit warming to 1.5°C. There is immense pressure on all
countries, especially the major emitters, to submit significantly more ambitious
NDCs in the next round due in early 2025.

3. The Fossil Fuel Debate:

● A major fault line exists between countries on the issue of fossil fuels. While
the final text of COP28 called for "transitioning away from fossil fuels," there
is still strong disagreement on the timeline and equity of this transition.

● Developing countries like India argue that they must be allowed to use their
fossil fuel resources for development, while the focus should be on phasing
down "unabated" coal power and demanding that developed countries take the
lead in phasing out all fossil fuels.

Conclusion:

The Paris Agreement provides an essential and durable framework for global climate
action. However, its success hinges on bridging the vast gap between its ambitious
goals and the political will to implement them. For India, the agreement is a platform

199 © 2025 ISSF

to showcase its significant domestic climate action while simultaneously championing
the principles of equity and climate justice.

The road ahead, particularly the finalization of the new climate finance goal at
COP30, will be a critical test of the global commitment to the Paris Agreement and
the spirit of multilateral cooperation it represents.

3.3.3.2 Sustainable Development Goals (SDGs)

Introduction: A Universal Agenda for People, Planet, and Prosperity
The Sustainable Development Goals (SDGs), also known as the Global Goals, are a
universal call to action to end poverty, protect the planet, and ensure that all people
enjoy peace and prosperity by 2030.

They were adopted by all United Nations Member States in 2015 as a key part of the
2030 Agenda for Sustainable Development.

The SDGs are a set of 17 interconnected goals with 169 associated targets, which
provide a shared blueprint for a better and more sustainable future for all.

Core Principles of the 2030 Agenda

The SDGs are built on several core principles that represent a significant evolution
from their predecessor, the Millennium Development Goals (MDGs).

● Universality: Unlike the MDGs, which were primarily targeted at developing

countries, the SDGs are universal and apply to all countries, developed and
developing alike.

● Integration: The goals are integrated and indivisible. It is recognized that

action in one area will affect outcomes in others and that development must
balance social, economic, and environmental sustainability.

● "Leave No One Behind": This is the central, transformative promise of the

2030 Agenda. It emphasizes the need to reach the poorest and most
marginalized communities first and to tackle discrimination and inequality in
all its forms.

200 © 2025 ISSF

The 17 Sustainable Development Goals
1. No Poverty

2. Zero Hunger

3. Good Health and Well-being

4. Quality Education

5. Gender Equality

6. Clean Water and Sanitation

7. Affordable and Clean Energy

8. Decent Work and Economic Growth

9. Industry, Innovation, and Infrastructure

10. Reduced Inequalities

11. Sustainable Cities and Communities

12. Responsible Consumption and Production

13. Climate Action

14. Life Below Water

15. Life on Land

16. Peace, Justice, and Strong Institutions

17. Partnerships for the Goals

201 © 2025 ISSF

India's Role and Implementation of the SDGs
India's national development goals are closely aligned with the SDGs, and the country
has played a leading role in the global effort to achieve them.

The Indian government has adopted a "whole-of-society" approach, involving central

and state governments, civil society, and the private sector.

Institutional Framework:
● NITI Aayog: The NITI Aayog (National Institution for Transforming India) is
the nodal agency for coordinating the implementation of the SDGs in the
country.

● SDG India Index: A key innovation by NITI Aayog is the SDG India Index
and Dashboard. This is a comprehensive tool that measures the performance
of all States and Union Territories on the SDGs. It has fostered a spirit of
competitive federalism, encouraging states to outperform each other in
achieving the goals.

● Voluntary National Review (VNR): India regularly presents its VNR at the
UN's High-Level Political Forum (HLPF), showcasing its progress and sharing
its experiences with the global community.

Alignment with National Flagship Programs:

India's strategy has been to link the SDGs directly to its flagship national development
programs. Key examples include:

● SDG 1 (No Poverty): Pradhan Mantri Jan Dhan Yojana (the world's largest
financial inclusion program).

● SDG 3 (Good Health): Ayushman Bharat (the world's largest public health
insurance scheme).

● SDG 4 (Quality Education): The National Education Policy 2020.

● SDG 6 (Clean Water and Sanitation): The Swachh Bharat Mission (which
has achieved universal sanitation coverage) and the Jal Jeevan Mission (aiming
to provide tapped drinking water to all rural households).

● SDG 7 (Clean Energy): The National Solar Mission and India's rapid
expansion of renewable energy capacity.

202 © 2025 ISSF

India's Progress:
India has made significant progress on several key goals, particularly in reducing
multidimensional poverty, improving access to electricity, sanitation, and clean
drinking water, and expanding financial inclusion.

Contemporary Challenges (Global and for India)

We are now past the halfway mark to the 2030 deadline, and recent global reports
indicate that the world is severely off-track to meet most of the goals.

● The "Polycrisis": The combined impact of the COVID-19 pandemic,

climate change, and geopolitical conflicts has reversed years of progress on
key goals like poverty eradication (SDG 1) and zero hunger (SDG 2).

● The SDG Financing Gap: This is the single biggest obstacle. The annual
financing gap to achieve the SDGs in developing countries is estimated to be in
the trillions of dollars. The failure of developed countries to meet their
existing climate finance and development aid commitments has exacerbated
this problem.

● Data and Monitoring: While India has a robust monitoring framework, a key
challenge for all countries is the collection of high-quality, timely, and
disaggregated data for all 169 targets to ensure that the most marginalized
groups are not being left behind.

● Challenges for India: Despite its significant achievements, India continues to

face major challenges in areas like hunger and malnutrition (SDG 2), gender
equality (SDG 5), decent work (SDG 8), and environmental sustainability
(SDGs 13, 14, 15). Ensuring "last-mile" delivery of its welfare programs
remains a critical implementation challenge.

Conclusion:
The Sustainable Development Goals represent the most ambitious and comprehensive
agenda for global development ever adopted.

India has demonstrated a strong commitment to the 2030 Agenda, integrating the
SDGs into its national development framework and making notable progress in
several key areas.

203 © 2025 ISSF

 3.3.3.3 Conventions on Terrorism, Maritime Law (UNCLOS), etc.
India's foreign policy is firmly anchored in a commitment to a rules-based
international order.

As such, it is an active participant in the formulation and implementation of global

conventions and legal frameworks designed to address shared challenges.

Two of the most critical areas for India are the international conventions on terrorism
and the law of the sea.

Conventions on Terrorism and India's Push for a CCIT

The Existing International Framework:
The international legal framework for combating terrorism is sectoral rather than
comprehensive. There is no single, all-encompassing convention on terrorism. Instead,
there is a web of 19 international conventions and protocols negotiated under the
auspices of the United Nations.

These conventions address specific acts of terrorism, such as:

● Aircraft hijacking and sabotage.

● Crimes against internationally protected persons.

● Taking of hostages.

● The financing of terrorism.

● Nuclear terrorism.

India's Proposal: The Comprehensive Convention on International Terrorism (CCIT)

For decades, India has been a victim of state-sponsored cross-border terrorism.

Recognizing the limitations of the sectoral approach, India took the initiative at the
UN General Assembly in 1996 to propose a Comprehensive Convention on
International Terrorism (CCIT).

● Core Objective of CCIT: The CCIT aims to create a universal legal

framework that would make it binding on all signatory nations to deny funds
and safe havens to terrorist groups. Its key objective is to have a universally
accepted definition of "terrorism," which would criminalize all forms of
international terrorism and deny terrorists the political and ideological

204 © 2025 ISSF

 justifications they often seek. If adopted, it would require all states to prosecute
or extradite any person accused of terrorist activities on their soil.

● Current Status: A Decades-Long Deadlock

As of 2025, the CCIT remains stalled and has not been adopted, despite being
under negotiation for over two decades.

The primary reason for the deadlock is the lack of a consensus on a few key
issues, particularly the definition of terrorism:

1. "Freedom Fighters" vs. "Terrorists": Some countries, particularly

from the Organisation of Islamic Cooperation (OIC), have argued for an
exemption for "national liberation movements," which has been a major
sticking point.

2. The Issue of State Terrorism: There are disagreements on whether the

activities of a state's armed forces during peacetime should be included
within the scope of the convention.

3. Lack of Political Will: The geopolitical interests of some states have

prevented them from agreeing to a comprehensive definition that would
constrain their own actions or those of their proxies.

● India's Current Strategy: Due to the CCIT deadlock, India continues to

pursue its counter-terrorism agenda through other multilateral and plurilateral
forums.

● This includes actively participating in the Financial Action Task Force

(FATF) to curb terror financing, pushing for the strengthening of the UN's
Global Counter-Terrorism Strategy, and building bilateral and minilateral
partnerships focused on intelligence sharing and counter-terrorism cooperation.

Maritime Law: The UN Convention on the Law of the Sea (UNCLOS)

The "Constitution for the Oceans":
The United Nations Convention on the Law of the Sea (UNCLOS), adopted in 1982,
is the single most important international treaty governing the world's oceans and
seas. It is often referred to as the "constitution for the oceans."

It provides a comprehensive legal framework for all activities in the oceans and seas
and establishes detailed rules for, among other things:

205 © 2025 ISSF

 ● Defining Maritime Zones: It defines the limits of the Territorial Sea (up to
12 nautical miles), the Contiguous Zone (up to 24 nm), the Exclusive
Economic Zone (EEZ) (up to 200 nm), and the Continental Shelf.

● Freedom of Navigation: It codifies the vital principle of freedom of

navigation and overflight in the high seas and through crucial straits.

● Dispute Resolution: It establishes a binding mechanism for the peaceful

settlement of maritime disputes through bodies like the International Tribunal
for the Law of the Sea (ITLOS).

India's Stance and Application of UNCLOS:

India is a signatory to UNCLOS and a staunch advocate for its universal application.
India's commitment to UNCLOS is a central pillar of its Indo-Pacific policy and is
demonstrated in two key ways:

1. Advocacy in International Disputes (The South China Sea):

○ In the context of the contentious South China Sea dispute, where China
has made expansive and unilateral claims, India has consistently taken a
principled stand.

○ At various forums, including the East Asia Summit and ASEAN

meetings, India has repeatedly called for the peaceful resolution of
disputes in accordance with international law, specifically UNCLOS.

○ India has explicitly supported freedom of navigation and overflight

and has implicitly backed the 2016 Arbitral Tribunal award (brought
by the Philippines against China), which invalidated China's "nine-dash
line" claim. This positions India as a key supporter of a rules-based
maritime order.

2. Abiding by its Rulings (India-Bangladesh Maritime Boundary):

○ India has not only preached but has also practiced adherence to
UNCLOS. In 2014, an UNCLOS tribunal delivered a verdict that
peacefully and definitively resolved the long-standing maritime
boundary dispute between India and Bangladesh in the Bay of Bengal.

○ India's graceful acceptance of the verdict, even though it awarded a

significant portion of the disputed area to Bangladesh, demonstrated its
deep and abiding commitment to the convention's dispute resolution
mechanisms. This act significantly boosted India's credibility as a nation
that respects international law.

206 © 2025 ISSF

Conclusion:
India's engagement with global conventions on terrorism and maritime law reflects its
broader foreign policy commitment to a rules-based international order.

While its ambitious proposal for a CCIT remains stalled due to global divisions, India
continues to be a leading voice against terrorism on all other platforms.

In the maritime domain, India's strong and consistent advocacy for UNCLOS, backed
by its own record of compliance, has established it as a credible and responsible
maritime power, a key element of its vision for a free, open, and secure Indo-Pacific.

207 © 2025 ISSF

Part D: Global Issues and India's Interests
4.0 Effect of Policies and Politics of Developed & Developing Countries
The foreign policy and national interests of a country are significantly influenced by
the domestic and foreign policies of other nations, particularly major global powers.

As the United States is India's largest trading partner and a key strategic ally, its
policies across various domains have a profound and direct impact on India.

4.1 USA: Impact of its Trade, Immigration, Foreign, and Domestic

policies on India
4.1.1 US Trade Policy and its Impact on India
The Generalized System of Preferences (GSP):
● What it is: GSP is a US trade preference program designed to promote
economic development by allowing duty-free entry for thousands of products
from designated beneficiary developing countries.

● The Issue: India was the largest beneficiary of the GSP program until 2019,
when the Trump administration terminated India's GSP status. The stated
reason was India's failure to provide the US with equitable and reasonable
access to its own markets.

● Current Status (as of July 2025): The entire GSP program for all countries
expired at the end of 2020 and has not yet been reauthorized by the US
Congress. Therefore, the issue of India's reinstatement is currently part of a
broader legislative hold-up in the US.

● Impact on India: The suspension of GSP status affects Indian exporters in

specific sectors like jewelry, leather goods, and auto parts, making their
products less competitive in the US market due to the imposition of standard
tariffs. While the overall impact on India's total exports is not massive, it hurts
specific small and medium-sized enterprises.

4.1.2 US Immigration Policy and its Impact on India

The H-1B Visa Program:

● What it is: The H-1B visa is a non-immigrant visa that allows US employers
to temporarily employ foreign workers in specialty occupations.7 This program

208 © 2025 ISSF

 is of critical importance to the Indian Information Technology (IT) industry,
which sends thousands of skilled professionals to the US every year.

● Recent Policy Changes: The US has periodically revised the H-1B program.8
The most recent significant change, implemented for the 2025 lottery, is the
shift to a "beneficiary-centric" selection process.9 Instead of a lottery based
on the number of registrations filed for an individual, the new system bases the
lottery on the unique beneficiary (the individual worker).

● Impact on India:
○ This change is largely seen as a positive development for genuine
Indian applicants. It is designed to curb the practice where multiple
registrations were filed for the same person to unfairly increase their
chances, a method sometimes used by consulting firms.

○ However, the overall restrictive approach, including high rejection rates

in previous years and the annual cap on the number of visas, continues
to pose a challenge for Indian IT companies and creates uncertainty for
Indian professionals.

4.1.3 US Foreign Policy and its Impact on India

The Indo-Pacific Strategy:

● The Policy: The US has made the Indo-Pacific the central focus of its foreign
policy, aiming to ensure a "free, open, prosperous, and secure" region. This
strategy is widely seen as a framework to counter China's growing
assertiveness.

● Impact on India: This policy has led to a profound strategic convergence

between India and the US.

○ It has elevated India's role as a cornerstone of the US regional strategy.

○ It has provided the strategic impetus for the strengthening of the Quad
(India, US, Japan, Australia) into a premier regional grouping.

○ It has directly led to the deepening of India-US defence cooperation,

including the signing of foundational agreements and the transfer of
advanced military technology.

209 © 2025 ISSF

US Policy on Russia (CAATSA):
● The Policy: The Countering America's Adversaries Through Sanctions Act
(CAATSA) is a US federal law that imposes sanctions on countries that engage
in significant defense transactions with Russia.

● Impact on India: This policy created a major challenge for the India-US
relationship due to India's procurement of the S-400 missile defense system
from Russia. There was a significant risk of US sanctions being imposed on
India.

● Current Situation: In a clear acknowledgement of India's strategic

importance, the US has, in practice, refrained from imposing CAATSA
sanctions on India.

● This implicit waiver, while not formally declared, demonstrates a pragmatic

approach by Washington, prioritizing its broader strategic partnership with
New Delhi over the strict application of the act.

● However, the US continues to encourage India to diversify its defense

acquisitions away from Russia.

4.1.4 US Domestic Policies and their Impact on India

The Inflation Reduction Act (IRA):

● The Policy: The IRA is a landmark US domestic law that provides massive
subsidies and tax credits for clean energy and manufacturing, with a strong
preference for products made in North America.

● Impact on India: This policy poses a challenge to India's "Make in India"

initiative. The significant domestic content requirements of the IRA make it
difficult for Indian-made green energy products, like solar panels and EV
batteries, to compete in the US market. It is seen by many in India as a form of
green protectionism.

The CHIPS and Science Act:

● The Policy: This act is designed to boost US domestic research and
manufacturing of semiconductors.

● Impact on India: In contrast to the IRA, this is seen as an opportunity. As the

US seeks to build secure and resilient semiconductor supply chains away from
China, it has identified India as a key partner.

210 © 2025 ISSF

 ● Under the India-US Initiative on Critical and Emerging Technology
(iCET), the CHIPS Act has created opportunities for collaboration and has
facilitated major US investments in India's nascent semiconductor ecosystem,
such as the memory assembly and test facility by Micron in Gujarat.

4.2 China: Impact of its Economic, Military, and Diplomatic policies on India
4.2.1 Impact of China's Economic Policies
China's economic policies have a dual impact on India: they present both a major
trade relationship and a significant strategic challenge through their use as a tool of
statecraft.

● The Belt and Road Initiative (BRI):

○ What it is: The BRI is a massive global infrastructure development
strategy launched by China to connect Asia with Africa and Europe via
land and maritime networks.

○ Impact on India:

■ Violation of Sovereignty: India has steadfastly refused to join

the BRI. Its primary and non-negotiable objection is that the
flagship project, the China-Pakistan Economic Corridor
(CPEC), passes through Pakistan-occupied Kashmir (PoK),
which India considers a fundamental violation of its sovereignty
and territorial integrity.

■ Strategic Encirclement: The BRI is seen by India as a

geostrategic tool to create a network of dependencies and expand
China's strategic footprint in India's immediate neighborhood
(South Asia) and its maritime periphery (the Indian Ocean),
effectively encircling India.

● "Predatory Economics" and "Debt-Trap Diplomacy":

○ The Policy: China has been widely accused of pursuing "predatory
economics" by extending massive, often opaque, loans to smaller,
vulnerable countries for large-scale infrastructure projects. When these
countries are unable to service the debt, China gains significant strategic
leverage.

211 © 2025 ISSF

 ○ Impact on India: This policy directly impacts India's security
environment.

■ Sri Lanka: The case of the Hambantota Port, which was handed
over to a Chinese state-run company on a 99-year lease after Sri
Lanka failed to repay its loans, is a classic example. This gives
China a strategic foothold in the southern Indian Ocean.

■ Pakistan: A significant portion of Pakistan's massive external

debt is owed to China, much of it related to CPEC projects. This
deep economic dependency further solidifies the China-Pakistan
nexus against India.

■ Other Neighbors: Similar patterns of heavy Chinese lending to

countries like the Maldives and Nepal create strategic challenges
for India in its own neighborhood.

4.2.2 Impact of China's Military Policies

China's rapid and comprehensive military modernization is the most direct security
threat to India.

● Modernization and Expansion: The People's Liberation Army (PLA) has

undergone a massive transformation, with a focus on developing capabilities
for power projection far beyond its borders.

○ PLA Navy (PLAN): The expansion of the PLAN is a primary concern.

With a fleet projected to exceed 400 ships by the end of 2025, the PLAN
is increasingly active in the Indian Ocean Region (IOR), which India
considers its primary area of influence.

○ Chinese naval ships, including submarines, now have a regular presence

in the IOR, and China has established its first overseas military base in
Djibouti.

○ Space Militarization: China has rapidly advanced its space capabilities,

with a military satellite fleet of over 1,000 by 2024. This provides China
with enhanced surveillance, reconnaissance, and targeting capabilities,
creating a new dimension of threat for India.

212 © 2025 ISSF

 ● Border Infrastructure and Military Posture:
○ Along the Line of Actual Control (LAC), China has undertaken a
massive build-up of military infrastructure, including the construction of
airbases, hardened shelters, roads, and railway lines.

○ Since the 2020 Galwan clashes, China has maintained a permanent

deployment of around 50,000-60,000 troops in the border areas,
fundamentally altering the security posture and forcing India to
undertake its own military build-up and infrastructure development in
response.

4.2.3 Impact of China's Diplomatic Policies

China's diplomacy has become more assertive and is aimed at undermining India's
regional and global influence.

● "Wolf Warrior" to "Strategic" Diplomacy: While the aggressive tone of

"wolf warrior" diplomacy has been tactically toned down in recent years to
appear more cooperative, the underlying assertive and coercive nature of
China's foreign policy remains.

● Undermining India in South Asia:

○ China has actively deepened its engagement with all of India's
neighbors, using its economic clout to gain political and strategic
influence.

○ New Trilateral Mechanisms: In a significant recent diplomatic shift,

China has started hosting trilateral meetings with South Asian
countries that explicitly exclude India (e.g.,
China-Pakistan-Bangladesh, China-Pakistan-Afghanistan).

○ This is a clear attempt to create new regional frameworks that sideline

India and institutionalize Chinese influence in what India considers its
primary sphere of influence.

● Blocking India's Global Aspirations:

○ UNSC Membership: China remains the only permanent member of
the UN Security Council that has not endorsed India's bid for a
permanent seat.

213 © 2025 ISSF

 ○ It has consistently used procedural tactics to block any meaningful
progress on UNSC reform, thereby thwarting India's ambition for a
greater role in global governance.

○ NSG Membership: China has also repeatedly blocked India's entry into
the 48-member Nuclear Suppliers Group (NSG), often on the grounds of
India not being a signatory to the Non-Proliferation Treaty (NPT), while
ignoring its own past proliferation record.

● The Pakistan Nexus: China continues to provide strong diplomatic cover for
Pakistan at all international forums, shielding it from scrutiny on the issue of
cross-border terrorism.

Conclusion:
China's economic, military, and diplomatic policies collectively pose the most
significant and multi-dimensional challenge to India's national security and its
aspirations for regional and global leadership.

China's economic policies aim to create dependencies in India's neighborhood, its

military modernization directly challenges India's security, and its diplomatic
maneuvers seek to contain India's influence.

This has compelled India to adopt a more robust and multi-pronged strategy, involving
strengthening its own military and economic capabilities, deepening its partnerships
with like-minded countries (such as through the Quad), and actively competing for
influence in its immediate and extended neighborhood.

214 © 2025 ISSF

4.3 Russia: Impact of Russia-Ukraine conflict on India and Russia's
pivot to China

Introduction: A Test for a Time-Tested Partnership

The Russia-Ukraine conflict has placed India in a complex and challenging position.

As Russia's long-standing "Special and Privileged Strategic Partner," India has had to
navigate its historical ties with Moscow while managing its deepening partnerships
with Western countries, who have led the effort to isolate Russia.

The conflict's impact on India has been felt across three key domains: defence, oil,
and diplomacy.

4.3.1 Impact on Defence Cooperation

This is the area where India has faced the most significant and direct challenges.

● Disruption of Defence Supplies and Spare Parts:

○ India's military is heavily dependent on Russian-origin equipment, with

some estimates suggesting that over 60% of its hardware is from Russia.
This includes critical platforms like Sukhoi Su-30MKI and MiG-29
fighter jets, T-90 tanks, and naval assets.

○ The war has severely impacted Russia's defence industrial capacity.

There have been confirmed delays in the supply of critical spare parts
for the maintenance and overhaul of India's existing Russian inventory.

○ The delivery schedules for major new systems, including the final
regiments of the S-400 Triumf air defence system, have also been
delayed.

215 © 2025 ISSF

 ● Accelerating Defence Diversification:

○ The conflict has starkly highlighted the risks of over-dependence on a

single country for defence supplies.

○ This has given a major impetus to India's long-term goal of defence

diversification (procuring from multiple sources like the US, France,
and Israel) and indigenization under the "Atmanirbhar Bharat"
(self-reliant India) initiative. However, replacing the vast legacy
inventory from Russia will be a long and costly process.

4.3.2 Impact on Oil and Economic Relations

The economic impact has been a story of both opportunity and challenges.

● The Surge in Russian Oil Imports:

○ In the aftermath of the war, as Western countries imposed sanctions,
Russia began offering its crude oil at a significant discount.

○ India, citing its national interest to ensure energy security and manage
inflation, dramatically increased its import of Russian oil. Russia
became India's top supplier of crude oil in 2023 and 2024.

○ Current Status: As of mid-2025, while Russia remains a top supplier,

the volume of imports has slightly decreased, and the discounts have
narrowed as Russia has found other markets and as Western sanctions
on shipping and insurance have become more complex to navigate.

● The Payment Mechanism Problem:

○ Western sanctions on Russian banks and the exclusion of Russia from
the SWIFT system created major payment hurdles.

○ The initial plan to use a rupee-ruble mechanism proved to be

ineffective due to a massive trade imbalance in Russia's favor.

This led to a situation where billions of rupees belonging to Russian

entities became stuck in their Vostro accounts in Indian banks, as there
were not enough Indian goods for Russia to buy.

This payment issue remains a significant challenge that both sides are
trying to resolve.

216 © 2025 ISSF

4.3.3 Impact on Diplomacy: India's Balancing Act
The conflict has been a major test of India's diplomacy, requiring a delicate and
consistent balancing act.

● Principled Neutrality: India has adopted a position of principled neutrality. It

has abstained from most UN resolutions that explicitly condemned Russia's
actions.

● Advocacy for Dialogue: At the same time, India has consistently called for an
immediate cessation of hostilities and a return to the path of dialogue and
diplomacy. It has reaffirmed its commitment to the principles of the UN
Charter and respect for the sovereignty and territorial integrity of all states.

● "Today's Era is Not of War": This statement, made by Prime Minister

Narendra Modi to Russian President Vladimir Putin, has become the
cornerstone of India's public position on the conflict, encapsulating its stance
against war without directly criticizing Russia.

● Managing Ties with the West: While the West was initially critical of India's
position, it has largely shown a pragmatic understanding of India's historical
ties and security compulsions. India has successfully managed to insulate its
growing partnerships with the US, Europe, and the Quad from its position on
the Ukraine conflict.

4.3.4 Russia's Pivot to China: The Long-Term Strategic Challenge

Perhaps the most significant and concerning long-term consequence of the conflict for
India is the acceleration of Russia's strategic pivot towards China.

● The "No Limits" Partnership: Isolated by the West and bogged down in a
protracted war, Russia has become increasingly dependent on China for
economic, technological, and diplomatic support. This has deepened the "no
limits" partnership between the two countries.

● Russia as a "Junior Partner": A major concern in New Delhi is that Russia

is increasingly becoming the "junior partner" in its relationship with China.

This has several adverse implications for India:

1. Weakening of Russia's Support for India: A more China-dependent
Russia may be less willing or able to support India's position in its own
long-standing conflict with China. The traditional balancing role that

217 © 2025 ISSF

 Russia played in the Russia-India-China (RIC) triangle has been
severely eroded.

2. The Russia-China-Pakistan Axis: The deepening Russia-China ties

could strengthen the existing China-Pakistan nexus, creating a more
formidable security challenge for India.

3. Risk of Technology Transfer: There are concerns that Russia might

share sensitive defence technologies (that it has also provided to India)
with China, undermining India's military advantage.

4. Impact on Multilateral Forums: A Russia that is more aligned with

China could make it harder for India to build consensus on key issues
within forums like BRICS and the SCO.

Conclusion:
The Russia-Ukraine conflict has had a complex and multi-faceted impact on India.

While it has provided short-term economic benefits in the form of discounted oil, it
has created significant long-term challenges for India's defence preparedness and its
diplomatic maneuvering.

The most profound consequence is the consolidation of the Russia-China axis, which
fundamentally alters the strategic landscape for India.

This has forced New Delhi to accelerate its own economic and military self-reliance,
diversify its strategic partnerships, and navigate a new and more complex era of great
power competition with skill and pragmatism.

218 © 2025 ISSF

4.4 EU/UK: Impact of Brexit, EU's CBAM, Trade policies, and tech
regulations on India
4.4.1 The Impact of Brexit
The UK's departure from the European Union (Brexit) in 2020 fundamentally altered
the landscape for Indian diplomacy and trade in Europe.

● End of UK as a "Gateway to Europe": Historically, many Indian companies

used the UK as their base of operations and a gateway to access the larger EU
single market. Brexit has ended this advantage, compelling Indian businesses
and diplomacy to adopt a "dual-track" engagement strategy with the EU and
the UK as two separate and distinct partners.

● Parallel FTA Negotiations: This has necessitated separate and parallel

negotiations for Free Trade Agreements (FTAs) with both the UK and the EU,
each with its own set of complexities and demands.

● Strategic Recalibration: India has had to invest more diplomatic capital in

strengthening its bilateral relationships with key EU member states like France
and Germany to champion its interests within the EU, a role previously often
played by the UK.

4.4.2 Impact of European Union (EU) Policies

A. The Carbon Border Adjustment Mechanism (CBAM):

● What it is: CBAM is a landmark environmental policy of the EU. It is
essentially a tariff imposed on certain carbon-intensive goods imported into the
EU.

The aim is to prevent "carbon leakage," where EU companies might move their
production to countries with less stringent climate policies.

● Implementation Status: The policy is currently in a transitional phase,

where Indian exporters are required to report the embedded carbon emissions
in their products to their EU importers.

The financial impact will begin from January 1, 2026, when importers will
have to start purchasing "CBAM certificates" corresponding to the carbon
price.

219 © 2025 ISSF

 ● Impact on India:
○ This will have a significant adverse impact on Indian exports,
particularly in the energy-intensive sectors of iron and steel,
aluminum, cement, and fertilizers.

○ India has officially protested the measure at the World Trade

Organization (WTO), calling it a unilateral and protectionist trade
barrier disguised as a climate policy. India argues that it violates the
principle of Common But Differentiated Responsibilities (CBDR) by
penalizing developing countries.

○ As a countermeasure, India is working on developing its own domestic

carbon credit trading system.

B. EU Trade Policy (India-EU FTA):

● Current Status: Negotiations for a comprehensive and ambitious India-EU
Free Trade Agreement have been ongoing for several years but are currently
stalled as of mid-2025.8

● Key Sticking Points: The deadlock is due to persistent differences. The EU is

demanding significant tariff reductions on its automobiles, wines, and
agricultural products.

● It is also pushing for the inclusion of non-trade issues like sustainability

(environment and labour) standards in the agreement. India, in return, is
demanding greater market access for its skilled professionals and a "data
adequacy" status from the EU.

C. EU Tech Regulations (GDPR, DSA):

● The Policies: The EU has implemented some of the world's most stringent
technology regulations, notably the General Data Protection Regulation
(GDPR) for data privacy and the Digital Services Act (DSA) for content
moderation and online platforms.

● Impact on India: These regulations have a significant impact on India's large

IT and tech industry, which has a major market in Europe.

○ High Compliance Costs: Indian companies have had to invest heavily

to ensure their data protection and content management practices are
compliant with GDPR and DSA, increasing their operational costs.

220 © 2025 ISSF

 ○ Data Flows: The EU's requirement for a "data adequacy" decision-a
certification that a non-EU country's data protection laws are equivalent
to the EU's-remains a major hurdle.

○ The lack of this status for India complicates cross-border data flows and
is a key issue in the FTA negotiations.

4.4.3 Impact of United Kingdom (UK) Policies

A. UK Trade Policy (India-UK FTA):

● Context: Post-Brexit, under its "Global Britain" strategy, the UK is very keen
to sign an independent trade deal with India, the world's fastest-growing major
economy.

● Current Status: Similar to the EU deal, the India-UK FTA negotiations, which
began in 2022, are in an advanced but stalled stage as of mid-2025.

● Key Sticking Points: The issues are similar to those in the EU negotiations.
The UK is pushing for significant tariff cuts on its key exports like scotch
whisky and automobiles. India's primary demand is for a more liberal visa
regime for its skilled professionals and students. The recent national
elections in both countries have further delayed the finalization of the deal.

Conclusion:
India's relationship with Europe is currently at a crucial juncture, defined by complex
negotiations with both the EU and the UK.

While the strategic partnerships are deepening, the economic relationship is being
shaped by new and challenging regulatory frameworks like the EU's CBAM.

The successful conclusion of the FTAs with both the EU and the UK remains a top
priority for Indian foreign policy, but achieving this will require navigating significant
differences on market access, professional mobility, and regulatory standards.

The outcomes of these negotiations will be a key determinant of the future trajectory
of India's economic engagement with Europe.

221 © 2025 ISSF

4.5 Geopolitical Developments: Russia-Ukraine War, US-China
Rivalry, Situation in West Asia - Impact on India's interests
4.5.1 The Russia-Ukraine Conflict
The ongoing Russia-Ukraine conflict has been a profound test for Indian diplomacy,
creating significant impacts across the strategic, economic, and diplomatic domains.

● Impact on Defence and Security:

○ Supply Chain Disruption: This is the most critical impact. With over
60% of its military hardware being of Russian origin, India has faced
significant delays in the supply of critical spare parts and in the
delivery schedules for new platforms like the final regiments of the
S-400 air defence system.

○ This has highlighted the vulnerabilities of over-dependence and has

given a major impetus to India's drive for defence indigenization
("Atmanirbhar Bharat") and diversification of its procurement.

○ Strategic Concerns: The conflict has accelerated Russia's strategic

pivot to China, pushing Moscow into a deeper economic and military
embrace with Beijing.

○ This deepening Russia-China axis is India's single biggest long-term

strategic concern, as it erodes Russia's traditional role as a balancing
power in Asia and raises fears of a consolidated front that is detrimental
to India's security interests.

● Impact on Economy and Energy:

○ Oil Imports: India's decision to ramp up its import of discounted
Russian crude oil has been a major economic outcome. This helped
cushion the Indian economy from high global oil prices, but it has also
led to challenges in payment mechanisms due to Western sanctions,
with the rupee-ruble trade not taking off as envisioned.

○ Food and Fertilizer Security: The conflict initially disrupted the global
supply chains for wheat and sunflower oil, and for key fertilizers,
leading to price volatility that affected India.

● Impact on Diplomacy:
○ The Balancing Act: India has performed a delicate diplomatic
balancing act. It has abstained from UN resolutions that directly

222 © 2025 ISSF

 condemn Russia, while consistently upholding the principles of the UN
Charter and calling for respect for sovereignty and territorial integrity.

○ "Era is Not of War": Prime Minister Modi's statement that "today's era
is not of war" has become the defining feature of India's stance,
allowing it to advocate for peace without taking sides. This policy of
strategic autonomy has allowed India to maintain its crucial
partnership with Russia while simultaneously deepening its ties with the
West.

4.5.2 The US-China Rivalry

The intensifying strategic competition between the United States and China is the
central dynamic shaping the 21st-century global order, presenting both challenges and
significant opportunities for India.

● Strategic and Security Impact:

○ Strengthening of the Quad: The US-China rivalry has been the
primary driver for the elevation of the Quadrilateral Security Dialogue
(Quad) into a premier strategic forum. This has allowed India to deepen
its security and political alignment with other major Indo-Pacific
democracies (US, Japan, Australia) to create a collective counterweight
to China's assertiveness.

○ Deepening India-US Partnership: The rivalry has supercharged the

India-US strategic partnership, particularly in defence and critical
technologies (through the iCET framework), as Washington views a
strong India as essential to its Indo-Pacific strategy.

● Economic Impact:
○ "China Plus One" Strategy: The desire of global corporations to
de-risk their supply chains and reduce their dependence on China has
created a significant opportunity for India. India is positioning itself as
an attractive alternative destination for manufacturing and investment
under the "China plus one" strategy.

○ Supply Chain Resilience: India is collaborating with like-minded

partners through forums like the Quad to build resilient and secure
supply chains for critical goods like semiconductors and
pharmaceuticals.

223 © 2025 ISSF

 ● Challenges:
○ Navigating the Bipolar Pressure: The primary challenge for India is to
navigate the growing pressure from both Washington and Beijing to
choose sides, while steadfastly maintaining its strategic autonomy.

○ Economic Coercion: India remains vulnerable to potential economic

coercion or trade friction from either of the two powers as their rivalry
intensifies.

4.5.3 The Situation in West Asia

The ongoing conflict in West Asia, triggered by the Israel-Hamas conflict in late 2023,
has had a direct impact on India's maritime security, economic interests, and regional
connectivity plans.

● Impact on Maritime Security and Trade:

○ Red Sea Disruptions: The attacks on commercial shipping in the Red
Sea and the Gulf of Aden by Houthi militants have severely disrupted
one of the world's most important maritime trade routes.

○ Increased Costs: This has forced Indian and international shipping to

take the longer and much more expensive route around Africa's Cape of
Good Hope, leading to increased freight costs and insurance
premiums, which has an inflationary impact on the Indian economy.

○ Indian Navy's Role: The crisis has provided an opportunity for the
Indian Navy to showcase its capabilities. Under "Operation
Sankalp," it has played a proactive role in providing security to
merchant vessels and conducting anti-piracy operations, reinforcing
India's credentials as a "net security provider" in the region.

● Impact on Regional Connectivity Projects:

○ The conflict has dealt a major blow to the ambitious India-Middle
East-Europe Economic Corridor (IMEC), which was announced at
the G20 summit. The regional instability and the breakdown in relations
between key partners have put the project's progress on hold, and its
future remains uncertain.

● Impact on Diplomacy and Diaspora:

○ Diplomatic Balancing Act: India has had to perform a very delicate
diplomatic balancing act, condemning terrorism while also calling for a

224 © 2025 ISSF

 two-state solution and providing humanitarian aid to civilians in Gaza.
This reflects its successful "de-hyphenation" policy of maintaining
strong, independent ties with both Israel and key Arab states like the
UAE and Saudi Arabia.

○ Diaspora: The safety and welfare of the large Indian diaspora in the
region (over 8 million people) remains a top priority for the Indian
government amidst the heightened tensions.

225 © 2025 ISSF

Part D: Global Issues and India's Interests
4.1 Indian Diaspora
4.1.1 Significance of the Diaspora

Introduction: A Global Force and a National Asset

The Indian Diaspora is the largest in the world, a vast and diverse community of
approximately 35 million people comprising Non-Resident Indians (NRIs), Persons of
Indian Origin (PIOs), and Overseas Citizens of India (OCIs).

Spread across the globe from the Americas and Europe to the Gulf, Africa, and
Southeast Asia, this community has evolved from being just a group of overseas
Indians to becoming a powerful and influential global force.

For India, the diaspora is no longer just a "lost" population; it is a vital national asset
that plays a crucial and multifaceted role in advancing India's economic, political, and
cultural interests on the world stage.

The Three Pillars of the Diaspora's Significance

The importance of the Indian diaspora to India can be understood through three
primary pillars: Economic, Political (Hard & Soft Power), and Technological.

1. Economic Significance: A Pillar of the Indian Economy

The economic contribution of the diaspora is the most tangible and significant.

● Remittances: India is the world's top recipient of remittances. In the fiscal

year ending March 2025, India received a record $135.46 billion from its
diaspora. This massive inflow of foreign exchange is a crucial and stable
source of capital that:

226 © 2025 ISSF

 ○ Supports Macroeconomic Stability: Helps finance the country's trade
deficit and strengthens its foreign exchange reserves.

○ Drives Domestic Consumption: Provides vital support to millions of

families, particularly in states like Kerala, Maharashtra, and Punjab,
boosting consumption and improving living standards.

● Investment and Trade: The diaspora acts as a key facilitator of trade and
investment.

○ Investment: Affluent diaspora members are major investors in the

Indian stock market, real estate, and, increasingly, its booming start-up
ecosystem.

○ Trade Facilitation: Diaspora entrepreneurs and professionals often act

as crucial intermediaries, bridging Indian businesses with global markets
and opportunities in their host countries.

● Shift in Economic Profile: There has been a notable shift in the source of
remittances. While the Gulf Cooperation Council (GCC) countries remain
important, a larger share now comes from skilled Indian professionals in
advanced economies like the United States, the United Kingdom, and
Singapore, reflecting the changing profile of Indian migrants from blue-collar
workers to high-skilled professionals.

2. Political Significance: A "Living Bridge" of Influence

The diaspora's growing political influence has made it a powerful tool of Indian
diplomacy.

● Hard Power - Political Lobbying: In countries with large and politically

active Indian communities, particularly the United States, the diaspora has
emerged as an influential lobby group.

○ They play a key role in shaping the views of lawmakers and

policymakers in their host countries on issues of concern to India.

○ A prime example was the crucial role played by the Indian-American

community in lobbying the US Congress to approve the landmark
India-US Civil Nuclear Deal in 2008.

● Soft Power - Cultural Ambassadors: The diaspora is India's most effective

cultural ambassador.

227 © 2025 ISSF

 ○ Projecting "Brand India": They promote Indian culture, cuisine,
festivals (like Diwali and Holi), yoga, and cinema on a global scale,
creating a positive image and fostering a deeper understanding of India.

○ The Success Story: The phenomenal success of Indian-origin

professionals, such as the CEOs of global tech giants like Google
(Sundar Pichai) and Microsoft (Satya Nadella), significantly enhances
India's global brand as a source of high-end talent and intellectual
capital.

● Diplomatic Support: During times of diplomatic friction or negative

international media coverage, the diaspora often acts as a supportive voice,
helping to articulate India's perspective and manage public opinion in their host
countries.

3. Technological and Intellectual Significance: From "Brain Drain" to

"Brain Gain"
The narrative around the diaspora has shifted from one of "brain drain" to a more
positive one of "brain gain" or "brain circulation."

● Knowledge Transfer: Indian-origin scientists, doctors, engineers, and

academics working at the world's top institutions contribute back to India
through collaborations, research partnerships, and mentorship programs.

● Innovation and Start-up Ecosystem: Many diaspora members are key figures
in global tech hubs like Silicon Valley. They are increasingly investing their
capital and expertise in India's start-up ecosystem, acting as angel investors and
mentors, and fostering a culture of innovation.

● Building a Talent Pipeline: The large number of Indian students studying in

top universities abroad, particularly in the US, Canada, and the UK, creates a
pipeline of highly skilled talent that contributes to both their host countries and
to India upon their return or through remote collaboration.

Government of India's Engagement:

Recognizing the diaspora's immense potential, the Indian government has
institutionalized its engagement through various initiatives, including:

● The Pravasi Bharatiya Divas (PBD), a biennial event to celebrate and connect
with the diaspora.

● The Know India Programme (KIP) for diaspora youth.

228 © 2025 ISSF

 ● The Overseas Citizenship of India (OCI) scheme, which grants lifelong
visa-free travel and other privileges, fostering a stronger bond with the
homeland.

Conclusion:
The Indian diaspora has evolved from being a scattered group of migrants into a
globally connected, economically successful, and politically influential community.

It is a unique and powerful asset for India, acting as a pillar of economic stability, an
agent of soft power, and a conduit for knowledge and technology.

In the 21st century, leveraging the strength and goodwill of its diaspora is no longer
just an option for Indian foreign policy; it is a strategic imperative for achieving its
national goals and enhancing its global influence.

229 © 2025 ISSF

4.1.1 Significance of the Diaspora
The Indian Diaspora is the largest in the world, a vast and diverse community of
approximately 35 million people comprising Non-Resident Indians (NRIs), Persons
of Indian Origin (PIOs), and Overseas Citizens of India (OCIs).

Spread across the globe from North America and Europe to the Gulf, Africa, and
Southeast Asia, this community has evolved from being just a group of overseas
Indians to becoming a powerful and influential global force.

For India, the diaspora is a vital national asset, acting as a "living bridge" that plays a
crucial and multifaceted role in advancing India's economic, political, and cultural
interests on the world stage.

4.1.2 Contribution: Economic, Political, and Soft Power

The contribution of the Indian diaspora to India's growth and global standing is
immense and can be understood through three primary pillars.

A. Economic Contribution: A Pillar of the Indian Economy

The economic impact of the diaspora is the most tangible and significant.

● Remittances: India is the world's top recipient of remittances. In the fiscal

year ending March 2025, India received a record $135.46 billion from its
diaspora. This massive inflow of foreign exchange is a crucial and stable
source of capital that:

○ Supports Macroeconomic Stability: Helps finance the country's trade

deficit and strengthens its foreign exchange reserves.

○ Drives Domestic Consumption: Provides vital support to millions of

families, boosting consumption and improving living standards.

● Foreign Direct Investment (FDI) and Portfolio Investment: The diaspora

acts as a key driver of investment.

○ Affluent diaspora members are major investors in the Indian stock

market, real estate, and, increasingly, its booming start-up ecosystem.
They often act as angel investors and venture capitalists.

● Trade and Business Facilitation: Diaspora entrepreneurs and professionals

often act as crucial intermediaries, bridging Indian businesses with global
markets. They help build trade linkages, create supply chains, and facilitate

230 © 2025 ISSF

 technology transfers, leveraging their local knowledge and networks in their
host countries.

B. Political Contribution: A "Living Bridge" of Influence

The diaspora's growing political influence has made it a powerful force multiplier for
Indian diplomacy.

● Political Lobbying: In countries with large and politically active Indian

communities, particularly democracies like the United States, the United
Kingdom, and Canada, the diaspora has emerged as an influential lobby
group.

○ They play a key role in shaping the views of lawmakers and

policymakers on issues of concern to India.

○ A prime example was the crucial role played by the Indian-American

community in lobbying the US Congress to approve the landmark
India-US Civil Nuclear Deal in 2008, helping to overcome significant
legislative hurdles.

● Improving Bilateral Relations: The presence of a successful and

well-integrated diaspora creates a positive political constituency for stronger
bilateral relations with India in their host countries.

● Diplomatic Support: During times of diplomatic friction or negative

international media coverage, the diaspora often acts as a supportive voice,
helping to articulate India's perspective and manage public opinion.

C. Soft Power Contribution: Shaping "Brand India"

The diaspora is India's most effective and widespread agent of soft power, shaping the
global perception of "Brand India."

● Cultural Diplomacy: The diaspora acts as a global ambassador for India's rich
cultural heritage.

○ They promote Indian traditions, cuisine, art forms, and cinema on a

global scale.

○ The global celebration of festivals like Diwali and Holi, and the
international popularity of practices like Yoga, are significantly
amplified by the diaspora's efforts.

231 © 2025 ISSF

 ● Technological Leadership and "Brain Gain":
○ The narrative around the diaspora has shifted from one of "brain drain"
to a more positive one of "brain gain" or "brain circulation."

○ The phenomenal success of Indian-origin professionals, such as the

CEOs of global tech giants like Google (Sundar Pichai) and
Microsoft (Satya Nadella), projects an image of India as a source of
high-end talent and intellectual capital.

○ Indian-origin scientists, doctors, engineers, and academics working at

the world's top institutions contribute back to India through
collaborations, research partnerships, and by investing their capital and
expertise in India's innovation ecosystem.

● Enhancing Tourism: The diaspora contributes significantly to the tourism

sector, both by visiting India themselves for cultural and family reasons and by
promoting India as a tourist destination in their host countries.

4.1.3 Challenges faced by the Diaspora

A. Racial Discrimination, Xenophobia, and Hate Crimes
This is a major and growing concern, particularly for the diaspora settled in Western
countries.

● Context: In recent years, there has been a noticeable rise in anti-immigrant

sentiment in countries like the United States, Canada, the UK, and
Australia. This is often fueled by populist politics, economic anxieties, and
online misinformation.

● Nature of the Challenge:

○ Scapegoating: Indian immigrants and international students are

increasingly being scapegoated for systemic domestic issues like
housing shortages, stress on the healthcare system, and unemployment.

○ Hate Crimes and Violence: There have been numerous reports of hate
crimes against people of Indian origin, ranging from racial slurs and
verbal abuse to physical assaults and attacks on religious symbols and
places of worship.

232 © 2025 ISSF

 ○ Online Hate Campaigns: Social media has become a major platform
for spreading anti-Indian rhetoric and stereotypes, creating a hostile
environment and leading to real-world discrimination.

● Political Dimensions: At times, these attacks are linked to the political

situation in India or the host country. For example, the activities of
pro-Khalistan extremist groups in Canada have sometimes led to a targeted
anti-India sentiment that affects the wider diaspora community.

B. Labour Issues in the Gulf Cooperation Council (GCC) Countries

While the Gulf is a major source of employment for millions of blue-collar and
semi-skilled Indian workers, they often face systemic exploitation and harsh living
conditions.

● The Kafala (Sponsorship) System: This is the root cause of many problems.
The Kafala system legally binds a migrant worker's immigration status to their
individual employer or "sponsor." This creates a massive power imbalance and
leads to:

○ Exploitative Contracts: Workers are often forced to sign contracts in

languages they don't understand, with their passports frequently
confiscated by employers.

○ Restriction of Movement: Workers cannot easily change jobs or leave

the country without the sponsor's permission, effectively trapping them
in abusive employment situations.

○ Wage Theft and Poor Conditions: Common issues include the

non-payment or delayed payment of salaries, excessively long working
hours, and unsafe and overcrowded living conditions in labour camps.

● Lack of Legal Recourse: While some Gulf countries have initiated labour
reforms, access to justice for migrant workers remains extremely difficult. A
high number of worker deaths are often attributed to "natural causes," which
prevents families from receiving due compensation.

● Government of India's Role: India has established several mechanisms to

address these issues, including the e-Migrate portal for safe recruitment, the
mandatory Pravasi Bharatiya Bima Yojana (PBBY) insurance scheme, and
the Indian Community Welfare Fund (ICWF) for providing emergency
assistance. However, the scale of the problem remains immense.

233 © 2025 ISSF

C. Integration Issues and Other Challenges
● Cultural and Generational Divide: Second and third-generation diaspora
members, born and raised in foreign countries, often face a crisis of identity.
They navigate the complex space between the cultural values of their heritage
and the social norms of their host country, which can sometimes lead to
inter-generational conflict within families.

● Impact of India's Domestic Politics: The polarization of politics within India

can sometimes spill over and create divisions within the diaspora community
along religious, regional, or caste lines. This can lead to social friction within
the community and also affect its relationship with the wider society of the host
country.

● Dual Citizenship and Political Rights: India does not permit dual
citizenship. While the Overseas Citizenship of India (OCI) card grants many
privileges, it does not grant political rights like the right to vote or hold public
office. This can limit the emotional and political integration of those who have
taken up foreign citizenship but still wish to maintain a strong formal
connection with India.

● Legal and Immigration Hurdles: Even for skilled professionals, navigating

the complex and often uncertain visa and immigration systems of countries like
the US (e.g., the H-1B visa system) is a major source of stress and instability.

234 © 2025 ISSF

4.1.4 Government of India's Policies
A. OCI (Overseas Citizen of India) Scheme
● What it is: The OCI Scheme is the cornerstone of India's engagement with its
diaspora. An OCI card is a form of permanent residency available to Persons of
Indian Origin (PIOs) who have acquired foreign citizenship. It is crucial to note
that the OCI card is NOT dual citizenship, as the Indian Constitution does
not permit holding Indian citizenship simultaneously with that of a foreign
country.

● Key Benefits: The OCI card is a lifelong visa that grants the holder several key
privileges, including:

○ Multi-purpose, multi-entry, lifelong visa to visit India at any time for

any length of time.

○ Exemption from registration with the Foreigners Regional

Registration Office (FRRO) for any length of stay in India.

○ Parity with Non-Resident Indians (NRIs) in economic, financial, and

educational fields, except for the acquisition of agricultural or plantation
properties.

○ The right to pursue professions like medicine, law, and architecture.

● Limitations: OCI cardholders do not have political rights in India. They

cannot vote, hold constitutional offices (like President, Vice President, or
Judge), or hold employment in government services.

B. Pravasi Bharatiya Divas (PBD)

● What it is: The Pravasi Bharatiya Divas (PBD) is the flagship biennial event of
the Ministry of External Affairs. It is celebrated to mark the contribution of the
overseas Indian community to the development of India. The date, January 9th,
was chosen to commemorate the return of Mahatma Gandhi from South Africa
to India in 1915.

● Objectives:

○ To provide a platform for the diaspora to engage with the government

and their ancestral homeland.

○ To recognize the contributions of PIOs and NRIs through the prestigious

Pravasi Bharatiya Samman Award (PBSA).

235 © 2025 ISSF

 ○ To create a network among the diaspora and to discuss key issues and
opportunities.

● Recent Edition: The most recent 18th PBD was held in Bengaluru in
January 2025, with the theme "Diaspora's Role in India's Amrit Kaal:
Technology, Innovation, and Connectivity."

C. Know India Programme (KIP)

● What it is: The KIP is a 21-day orientation program sponsored by the Ministry
of External Affairs for diaspora youth.

● Objective: The primary goal is to help young members of the diaspora (aged
18-30) connect with their Indian roots and to give them an understanding of
contemporary India's economic, social, and cultural realities.

● Activities: The program includes presentations on various aspects of India,

visits to historical and cultural sites, interactions with students and officials,
and a tour of a rural village. It aims to foster a stronger sense of belonging and
to encourage the youth to become "goodwill ambassadors" for India.

D. Indian Community Welfare Fund (ICWF)

● What it is: The ICWF is a critical fund established in all Indian Missions and
Posts abroad.

● Objective: It is aimed at providing on-the-spot, emergency assistance to

overseas Indian nationals who are in distress and do not have the resources to
support themselves.

● Key Uses: The fund is primarily used to assist Indian workers in the Gulf and
other regions. Specific uses include:

○ Covering costs for boarding and lodging for distressed workers.

○ Providing emergency medical care.

○ Airlifting the mortal remains of deceased Indians to India.

○ Providing initial legal assistance in deserving cases.

236 © 2025 ISSF

E. MADAD (MEA in Aid of Diaspora in Distress) Portal
● What it is: MADAD is an online consular grievance monitoring system.

● Objective: It provides a single, centralized platform for Indian citizens living

abroad to register their grievances related to consular services offered by Indian
Missions.

● Functioning: An emigrant or a relative can register a complaint on the portal.

The complaint is then forwarded to the relevant Indian Mission, and the
complainant can track the status of their grievance online. This system uses
technology to bring transparency, efficiency, and accountability to the process
of diaspora welfare and grievance redressal.

237 © 2025 ISSF

 Part E: Important International Institutions
5.1 United Nations System

5.1.1 UN General Assembly (UNGA)

Genesis & HQ

● Genesis: The UN General Assembly (UNGA) was established in 1945 under

the Charter of the United Nations. It was created as one of the six principal
organs of the newly formed United Nations, conceived as the central forum for
multilateral discussion of the full spectrum of international issues.

● Headquarters: The UNGA is headquartered at the UN Headquarters in New

York City, USA.

Structure & Organs

The UNGA's structure is designed to be universally representative and to manage a
vast and complex agenda.

● Composition: It is the only UN organ with universal membership,

comprising all 193 Member States of the United Nations.

● The "One State, One Vote" Principle: The UNGA operates on the
democratic principle of sovereign equality, where each member state has one
vote, regardless of its size, population, or economic power.

● The President of the General Assembly (PGA): The Assembly is led by a

President, who is elected for a one-year term. The presidency rotates annually
among the five geographical groups: African, Asia-Pacific, Eastern European,
Latin American and Caribbean, and Western European and other States.

238 © 2025 ISSF

 ● The Six Main Committees: The substantive work and detailed discussions of
the UNGA take place in its six main committees, which then submit draft
resolutions for adoption by the plenary assembly. The committees are:

1. First Committee: Disarmament and International Security

2. Second Committee: Economic and Financial

3. Third Committee: Social, Humanitarian, and Cultural

4. Fourth Committee: Special Political and Decolonization

5. Fifth Committee: Administrative and Budgetary

6. Sixth Committee: Legal

Mandate & Functions

As laid out in the UN Charter, the UNGA is the main deliberative, policymaking, and
representative organ of the United Nations.

Its key functions include:

● Deliberative Function: To discuss any question or matter within the scope of
the UN Charter and to make recommendations to Member States or to the
Security Council on these issues (except on disputes currently being dealt with
by the Security Council).

● Budgetary Function: To consider and approve the regular budget of the

United Nations and to apportion the expenses among the member states.

● Elective Function: To elect the non-permanent members of the Security

Council, the members of the Economic and Social Council (ECOSOC), and,
in conjunction with the Security Council, to appoint the Secretary-General
and elect the judges of the International Court of Justice (ICJ).

● Norm-Setting Function: To initiate studies and make recommendations to

encourage the progressive development of international law and its
codification.

Decisions on important questions, such as peace and security, admission of new

members, and budgetary matters, require a two-thirds majority. Other questions are
decided by a simple majority.

239 © 2025 ISSF

Key Reports
The UNGA itself is a deliberative body and does not produce its own investigative
reports in the way a UN agency does. Instead, it commissions and receives numerous
key reports that form the basis of its debates and resolutions.

These include:

● The annual Report of the Secretary-General on the Work of the

Organization.

● Reports from the Security Council, ECOSOC, the Human Rights Council, and
the ICJ.

● Reports from various UN agencies, funds, and programs (like UNDP,

UNICEF) on specific global issues.

Relationship with India

India has been a strong proponent of multilateralism and has always played an active
and constructive role in the UN General Assembly.

● Historical Role: From its early years, India used the UNGA platform to
champion the causes of decolonization and the fight against apartheid,
giving voice to the newly independent countries of Asia and Africa.

● Champion of the Global South: Today, India uses the UNGA as a primary
platform to advance its role as a "Voice of the Global South." In its annual
statements at the General Debate, India consistently highlights issues of
concern to developing countries, such as climate justice, sustainable
development, debt relief, and equitable access to technology.

● Advocacy for UNSC Reform: The UNGA-led Intergovernmental

Negotiations (IGN) process is the main, albeit slow-moving, forum where
India and its G4 partners push for the reform of the UN Security Council.

● Shaping Global Norms: India has successfully used the UNGA to shape
global norms and awareness. A prime example is its successful initiative that
led to the UNGA declaring June 21st as the International Day of Yoga. India
is also the leading proponent of a Comprehensive Convention on
International Terrorism (CCIT) at the UNGA.

240 © 2025 ISSF

Contemporary Issues/Reforms
The UNGA itself is the subject of ongoing reform discussions aimed at enhancing its
effectiveness and relevance.

● Revitalization of the General Assembly: There is a long-standing

"revitalization" process that seeks to streamline the UNGA's agenda, improve
its working methods, and strengthen the role and authority of the President of
the General Assembly (PGA).

● The "Veto Initiative" (Resolution 76/262): This is a significant recent reform

aimed at improving the relationship between the UNGA and the Security
Council.

● Adopted in 2022, this resolution mandates the General Assembly to

automatically convene a meeting within 10 days every time a veto is cast in
the Security Council by one of the P5 members.

● This initiative, while not altering the veto power itself, increases the political
cost of using it and enhances the accountability of the P5 to the wider UN
membership.

5.1.2 UN Security Council (UNSC) - and the demand for its reform
Genesis & HQ

● Genesis: The UN Security Council (UNSC) was established in 1945 along

with the United Nations itself. It was conceived as the UN's premier and most
powerful body, entrusted with the primary responsibility for the maintenance of
international peace and security.

● Its structure, particularly its permanent membership, reflects the geopolitical

power balance at the end of World War II.

● Headquarters: The UNSC is headquartered at the UN Headquarters in New

York City, USA.

241 © 2025 ISSF

Structure & Organs
The UNSC's structure is unique and is the primary source of its power and its
controversy.

● Composition: The Council is composed of 15 members:

○ Five Permanent Members (P5): These are the victors of World War II:
China, France, Russia, the United Kingdom, and the United States .

○ Ten Non-Permanent Members: These members are elected by the

General Assembly for two-year terms. The seats are distributed on a
regional basis, and retiring members are not eligible for immediate
re-election.

● The Veto Power: The most significant feature of the UNSC's structure is the
veto power held exclusively by the five permanent members. Any resolution
on a substantive matter can be blocked (vetoed) if any one of the P5 members
casts a negative vote.

● Presidency: The presidency of the Council rotates monthly among its 15

members, following the English alphabetical order of their names.

Mandate & Functions

Under the UN Charter, the UNSC has the primary responsibility for maintaining
international peace and security.

Its decisions are legally binding on all UN Member States.

Its key functions include:

● To investigate any dispute or situation which might lead to international
friction.

● To recommend methods of adjusting such disputes or the terms of settlement.

● To formulate plans for the establishment of a system to regulate armaments.

● To determine the existence of a threat to the peace or act of aggression and to

recommend what action should be taken.

● To call on Members to apply economic sanctions and other measures not

involving the use of force to prevent or stop aggression.

242 © 2025 ISSF

 ● To take military action against an aggressor.

Contemporary Issues: The Pressing Demand for Reform

The UNSC is widely seen as an anachronistic institution that is no longer fit for
purpose in the 21st century.

The demand for its reform is a central issue at the United Nations, driven by several
key problems:

● Outdated Composition and Lack of Representation: The Council's

permanent membership reflects the world of 1945, not today.

● Major global powers like India, Germany, Japan, and Brazil have no permanent
voice. Entire continents like Africa (54 nations) and Latin America are
completely unrepresented in the permanent category, which severely
undermines the Council's legitimacy and credibility.

● The Undemocratic Veto Power: The veto is criticized as an undemocratic

relic of the past that allows the national interests of the P5 to override the
collective will of the international community.

It has frequently paralyzed the Council, preventing it from taking decisive

action on major global crises (e.g., in Syria, and more recently, in Ukraine and
Gaza).

● North-South Divide: The Council's power structure is heavily skewed in favor

of the developed, northern countries, while the majority of the UN's members
and the issues on the Council's agenda are from the developing world (the
Global South).

Proposals for Reform:

The debate on reform primarily takes place within the Intergovernmental Negotiations
(IGN) framework at the UNGA.

The main competing proposals are:

● The G4 Nations (India, Brazil, Germany, Japan): They advocate for an
expansion in both the permanent and non-permanent categories. They
mutually support each other's candidatures for permanent seats and also call for
permanent representation for Africa.

243 © 2025 ISSF

 ● The Uniting for Consensus (UfC) Group (led by Pakistan, Italy, Mexico):
This group opposes any new permanent members, arguing it would create a
new tier of privilege. They advocate for expanding the Council only in the
non-permanent category, with members serving for longer, renewable terms.

● The African Union (Ezulwini Consensus): The AU demands at least two

permanent seats with full veto rights and five non-permanent seats for the
continent.

Relationship with India

● India's Candidature: India has been at the forefront of the campaign for
UNSC reform and is a leading candidate for permanent membership. Its claim
is built on its status as the world's largest democracy, its massive population, its
rapidly growing economy, its long history of contributions to UN
peacekeeping, and its role as a leader of the Global South.

● Support and Opposition: India's bid is officially supported by four of the five
permanent members (US, UK, France, and Russia). China remains the only
P5 member that has consistently blocked any progress on reforms that would
grant India a permanent seat.

● India's Role as a Non-Permanent Member: India has been elected as a

non-permanent member of the UNSC multiple times, most recently for the
2021-22 term. During its tenures, it has actively sought to act as a voice of
reason, moderation, and a bridge-builder, particularly on issues of concern to
the developing world.

Conclusion:
The UN Security Council remains the world's most powerful multilateral body, but its
legitimacy is eroding due to its unrepresentative and undemocratic structure.

While there is a widespread consensus on the need for reform, the process has been
deadlocked for decades due to the conflicting interests of member states and the veto
power held by the P5 over any change to the UN Charter.

For India, the pursuit of a permanent seat on the UNSC is not just about seeking
enhanced status; it is about claiming its rightful place in global governance and
fighting for a more equitable and representative international order that reflects the
realities of the 21st century.

244 © 2025 ISSF

5.1.3 UN Human Rights Council (UNHRC)
Genesis & HQ

● Genesis: The UN Human Rights Council (UNHRC) was established by the UN

General Assembly on March 15, 2006 (through resolution 60/251). It was
created to replace the UN Commission on Human Rights, which had been
heavily criticized for its politicization and for allowing countries with poor
human rights records to use their membership to shield themselves from
scrutiny.

● Headquarters: The UNHRC is headquartered at the UN Office in Geneva,

Switzerland.

Structure & Organs

The UNHRC is a subsidiary body of the UN General Assembly. Its structure and
mechanisms are designed to address human rights issues globally.

● Membership: The Council is composed of 47 Member States, which are

elected by a secret ballot in the UN General Assembly.

1. Membership is based on equitable geographical distribution (African

States: 13 seats; Asia-Pacific States: 13 seats; Latin American and
Caribbean States: 8 seats; Western European and other States: 7 seats;
Eastern European States: 6 seats).

2. Members serve for a term of three years and are not eligible for
immediate re-election after serving two consecutive terms.

● President and Bureau: The Council is led by a President and four

Vice-Presidents, who are elected annually and serve for one year. They
represent the five regional groups and form the "Bureau," which is responsible
for procedural and organizational matters.

● Key Mechanisms: The UNHRC's work is carried out through three main
mechanisms:

1. Universal Periodic Review (UPR): A unique process where the human

rights records of all 193 UN Member States are reviewed every 4.5
years. The UPR is a peer-review process where states review each other,
making recommendations for improvement.

245 © 2025 ISSF

 2. Special Procedures: This is the largest body of independent human
rights experts in the UN system. "Special Procedures" is the general
name given to the mechanisms established by the Council to report and
advise on human rights from a thematic or country-specific perspective.
These independent experts are known as Special Rapporteurs or
members of Working Groups.

3. Complaint Procedure: A confidential process that allows individuals

and organizations to bring human rights violations to the attention of the
Council. It is designed to address consistent patterns of gross and
reliably attested violations of human rights.

Mandate & Functions

The UNHRC is the principal intergovernmental body within the UN system
responsible for the promotion and protection of all human rights and fundamental
freedoms for all.

● Primary Mandate: To address situations of human rights violations and make

recommendations on them.

● Key Functions:

○ To promote human rights education, advisory services, and technical

assistance.

○ To serve as a forum for dialogue on thematic human rights issues.

○ To make recommendations to the UN General Assembly for the further

development of international law in the field of human rights.

○ To respond to human rights emergencies.

Key Reports
The UNHRC's key outputs are not just reports but also its resolutions on various
human rights issues. The reports that form the basis of its work include:

● Reports from the Office of the High Commissioner for Human Rights
(OHCHR), which functions as the Secretariat for the Council.

246 © 2025 ISSF

 ● Thematic and country-specific reports produced by the Special Procedures
(Special Rapporteurs and Working Groups).

● The outcome reports of the UPR Working Group for each country under
review.

Relationship with India

India has had a mixed and evolving relationship with the UNHRC, balancing its
commitment to human rights with its principle of non-interference.

● Membership Status: India has been elected to the UNHRC multiple times. Its
last term ended on December 31, 2024. Due to the two-consecutive-term limit,
India is not a member of the Council in 2025 and will be eligible for
re-election for the term beginning in 2028.

● Engagement with UPR: India actively participates in the UPR process. It

underwent its 4th UPR in late 2022, where it received numerous
recommendations from other countries on a range of issues.

● India's Stance: India's approach at the UNHRC is characterized by a strong

opposition to country-specific resolutions (resolutions targeting a specific
country), which it views as intrusive, politicized, and counter-productive. India
consistently advocates for dialogue, cooperation, and technical assistance as the
best way to promote human rights.

● Defending its Record: When international criticism is leveled against India at

the Council on issues like the situation in Jammu & Kashmir, the Citizenship
Amendment Act (CAA), or treatment of minorities, India has robustly
defended its record, asserting that its democratic institutions and independent
judiciary are fully capable of addressing internal challenges.

Contemporary Issues/Reforms
The UNHRC continues to face many of the same criticisms that led to the dissolution
of its predecessor.

● Politicization and Bloc Voting: The Council is frequently accused of being a

politicized body where member states vote in regional or political blocs rather
than on the merit of the human rights issue at hand.

247 © 2025 ISSF

● Disproportionate Focus: It has faced persistent criticism, particularly from the
US and Israel, for what they see as a disproportionate and biased focus on
Israel under a dedicated agenda item (Agenda Item 7).

● Controversial Membership: The most significant criticism is the election of

countries with questionable human rights records to the Council. Critics argue
that this allows these countries to shield themselves from scrutiny and
undermines the Council's credibility. For example, the election of countries like
China, Russia (before its suspension), and Eritrea has drawn international
condemnation.

● US Engagement: The relationship of the United States with the Council has
been volatile. The US withdrew from the Council in 2018 under the Trump
administration, calling it a "cesspool of political bias," but re-engaged and was
re-elected to the council under the Biden administration in 2021. This "in-out"
approach by a major power affects the Council's dynamics.

248 © 2025 ISSF

5.1.4 International Court of Justice (ICJ)

Genesis & HQ
● Genesis: The International Court of Justice (ICJ) was established in 1945 by
the Charter of the United Nations. It is the principal judicial organ of the UN
and is the successor to the Permanent Court of International Justice (PCIJ),
which was established by the League of Nations. The ICJ began its work in
1946.

● Headquarters: The seat of the Court is at the Peace Palace in The Hague,
Netherlands. It is the only one of the six principal organs of the UN not
located in New York City.

Structure & Organs

The ICJ is composed of independent judges and is supported by a registry. 5

● Composition: The Court is composed of 15 judges, who are elected for a term
of nine years by the UN General Assembly and the Security Council, voting
independently of each other. A candidate must secure an absolute majority in
both bodies to be elected.

● Representation: The composition of the Court is designed to represent the

main forms of civilization and the principal legal systems of the world. No two
judges can be nationals of the same state.

● Key Organs:

○ The Presidency: The Court elects a President and a Vice-President for

three-year terms.

○ Chambers: The Court may form smaller chambers to hear particular

cases.

249 © 2025 ISSF

 ○ The Registry: This is the Court's permanent administrative secretariat,
headed by a Registrar.

Mandate & Functions

The ICJ has a dual mandate, serving two primary functions as outlined in its Statute,
which is an integral part of the UN Charter.

1. To Settle Contentious Cases between States:

● This is the Court's primary function. It settles, in accordance with international
law, legal disputes submitted to it by states.

● Jurisdiction: Only states may be parties in cases before the Court. Its
jurisdiction is based on the consent of the states party to a dispute. This
consent can be given in several ways, including through a special agreement to
submit a dispute to the Court or through a jurisdictional clause in a treaty.

● Binding Judgments: The judgments delivered by the Court in contentious

cases are final, binding on the parties involved, and without appeal .

2. To Give Advisory Opinions:

● The Court can provide advisory opinions on legal questions referred to it by
authorized United Nations organs and specialized agencies.

● While these opinions are not legally binding, they are highly authoritative
interpretations of international law and carry great legal weight and moral
authority.

Key Reports (Outputs)

The ICJ's most important published outputs are its decisions, which are key sources
for the development of international law.

● Judgments: The final, binding decisions in contentious cases.

● Advisory Opinions: Authoritative legal opinions on questions submitted by

UN bodies.

● The Court also submits an annual report to the UN General Assembly,

summarizing its activities.

250 © 2025 ISSF

Relationship with India
India has had a long and engaged relationship with the ICJ, using the court and
respecting its processes.

● Acceptance of Compulsory Jurisdiction: India has accepted the ICJ's

compulsory jurisdiction under Article 36(2) of its Statute.

● However, this acceptance is not absolute and is subject to several important

reservations. These reservations exclude the Court's jurisdiction on certain
matters, including:

○ Disputes with countries that are or have been members of the

Commonwealth of Nations.

○ Disputes relating to or connected with facts or situations of hostilities,

armed conflicts, and military actions.

● The Kulbhushan Jadhav Case (India v. Pakistan): This is the most

significant recent case involving India.

● In 2017, India took Pakistan to the ICJ over the death sentence given to Indian
national Kulbhushan Jadhav.

○ The 2019 Judgment: The ICJ delivered a judgment overwhelmingly in

India's favor. It found that Pakistan had breached its obligations under
the Vienna Convention on Consular Relations by denying India
consular access to Mr. Jadhav.

○ The Court ordered Pakistan to undertake an "effective review and

reconsideration" of the conviction and sentence.

○ Current Status: As of mid-2025, the case is in the implementation

phase, with India continuing to press Pakistan through diplomatic
channels to adhere to the judgment in letter and spirit.

● Indian Judges on the Court: India has had a distinguished history of its
nationals serving as judges on the ICJ. Justice Dalveer Bhandari is the current
Indian judge on the Court, and his re-election in 2017, after a closely fought
contest, was seen as a major diplomatic victory for India. His term runs until
2027.

251 © 2025 ISSF

Contemporary Issues and Challenges
● High-Profile Cases and Global Attention: The ICJ has been at the center of
global attention recently due to its role in the Israel-Gaza conflict.

Key cases include:

○ The case brought by South Africa against Israel under the Genocide
Convention, in which the Court has issued several provisional measures
ordering Israel to prevent acts of genocide.

○ The ongoing proceedings for an advisory opinion on the legal

consequences of Israel's policies in the occupied Palestinian territories.

● The Challenge of Enforcement: The most significant challenge for the ICJ is
the enforcement of its judgments. The Court has no enforcement mechanism
of its own. If a country refuses to comply with a judgment, the other party can
take the matter to the UN Security Council.

● However, any enforcement action by the UNSC can be vetoed by any of the
five permanent members, which can render the judgment ineffective. The
case of Russia's non-compliance with the Court's 2022 order to suspend its
military operations in Ukraine is a prime example of this limitation.

● State Sovereignty and Jurisdiction: The Court's reliance on state consent for
its jurisdiction means it cannot intervene in many international disputes where
one or more parties refuse to accept its authority.

252 © 2025 ISSF

5.1.5 UN Peacekeeping Missions and India's Role

Introduction: The UN's Flagship Activity

United Nations Peacekeeping is a flagship activity of the UN, a unique and dynamic
instrument developed by the organization to help countries torn by conflict create the
conditions for lasting peace.

Deployed and directed by the UN Security Council, these missions, often referred to
as "Blue Helmets" or "Blue Berets," are composed of military, police, and civilian
personnel contributed by member states.

Peacekeeping is not explicitly mentioned in the UN Charter but has evolved over
seven decades as a vital tool for managing international crises.

Genesis, Principles, and Evolution

● Genesis: The first UN peacekeeping mission was established in 1948 to
supervise the Armistice Agreement between Israel and its Arab neighbors.

● Guiding Principles: UN Peacekeeping operates on three core, interrelated

principles:

○ Consent of the parties: Peacekeepers are deployed with the consent of

the main parties to the conflict.

○ Impartiality: Peacekeepers must remain impartial in their dealings with

the parties to the conflict, but not neutral in the execution of their
mandate. They must stand up for the principles of the UN Charter.

○ Non-use of force except in self-defence and defence of the mandate:

The use of force is always a measure of last resort and is strictly limited

253 © 2025 ISSF

 to defending oneself or the mission's mandate, particularly the
protection of civilians.

● Evolution: Peacekeeping has evolved significantly. Early missions were

traditional "ceasefire monitoring" operations. Modern peacekeeping missions
are often multi-dimensional, tasked with complex mandates that can include:

○ Protection of Civilians (POC).

○ Disarmament, Demobilization, and Reintegration (DDR) of former

combatants.

○ Facilitating political processes and supporting elections.

○ Promoting human rights and restoring the rule of law.

India's Enduring and Significant Role in UN Peacekeeping

India has been one of the most steadfast and significant contributors to UN
Peacekeeping since its inception. India's commitment is rooted in its foreign policy
principles of promoting global peace and a rules-based international order.

● Historical Contribution: India's participation dates back to the 1950s with its
involvement in the Korean War. Since then, India has cumulatively contributed
over 275,000 personnel, one of the largest contributions of any country in the
history of the UN. Indian peacekeepers have served in over 50 missions across
the globe.

● Current Deployment: As of 2025, India remains one of the top

troop-contributing countries (TCCs), with over 6,000 military and police
personnel deployed in various challenging missions, including in the
Democratic Republic of Congo (MONUSCO), South Sudan (UNMISS), and
Lebanon (UNIFIL).

India's Pioneering Contributions:

● Women in Peacekeeping: India has been a pioneer in promoting the role of
women in peacekeeping. In 2007, India deployed the first-ever all-female
Formed Police Unit (FPU) to the UN mission in Liberia, a landmark initiative
that inspired other nations. India has continued this tradition with the recent
deployment of an all-women platoon of peacekeepers in Abyei (UNISFA) .

254 © 2025 ISSF

 ● Medical Support: India has a distinguished record of providing medical
personnel, including doctors and nurses, and establishing field hospitals in
various missions.

● Technological Contribution: In a recent initiative, India has developed and

shared the UNITE AWARE technology platform with the UN. This platform
enhances the situational awareness and security of peacekeepers on the ground
by providing terrain and intelligence data.

● Training and Capacity Building: India's Centre for UN Peacekeeping

(CUNPK) in New Delhi is a premier institution that not only trains Indian
peacekeepers but also conducts international training courses for peacekeepers
from other countries.

India's Perspective on Contemporary Peacekeeping Challenges

As a major TCC, India plays an active role in the UN debates on peacekeeping
reform, particularly at the Special Committee on Peacekeeping Operations (C-34).
India's perspective is shaped by its extensive on-the-ground experience.

● Need for Clear and Realistic Mandates: India consistently argues that the
mandates drafted by the Security Council must be clear, realistic, and matched
with adequate resources. Overly ambitious mandates without the necessary
financial and logistical support can endanger peacekeepers and undermine the
mission's credibility.

● Importance of TCC Consultation: A key demand from India is for deeper,

more meaningful, and triangular consultation between the Security Council,
the UN Secretariat, and the Troop Contributing Countries before mandates are
framed and renewed. India's position is that those who put their troops on the
ground must have a say in the mandate they are tasked to implement.

● Security of Peacekeepers: With peacekeepers increasingly being targeted in

complex conflict environments, India has been a strong advocate for enhancing
their security. It has called for greater accountability for crimes against
peacekeepers and for the use of modern technology to improve their safety.

255 © 2025 ISSF

Conclusion:
India's contribution to UN Peacekeeping has been a cornerstone of its commitment to
global peace and security for over seven decades.

As one of the largest and most reliable troop-contributing countries, India has not only
provided personnel but has also contributed significantly to the evolution of
peacekeeping through its pioneering initiatives and its constructive role in policy
debates.

In an era where UN Peacekeeping faces unprecedented challenges, India's experience,

professionalism, and unwavering commitment make it an indispensable partner for the
United Nations in its quest to maintain international peace and security.

256 © 2025 ISSF

5.2.1 The World Bank Group (IBRD, IDA, IFC)
Genesis & HQ
● Genesis: The World Bank was established in 1944 at the Bretton Woods
Conference in New Hampshire, USA, along with its sister institution, the
International Monetary Fund (IMF).

● Its original purpose was to help rebuild the economies of nations devastated by
World War II.

● Headquarters: The World Bank Group is headquartered in Washington, D.C.,

USA.

Structure & Organs

The "World Bank" is not a single entity but a part of the broader World Bank Group
(WBG), which comprises five distinct but affiliated international organizations.

The two main institutions often collectively referred to as the World Bank are the
IBRD and IDA.

1. IBRD (International Bank for Reconstruction and Development): This is

the original institution of the World Bank. It provides loans, guarantees, and
advisory services to middle-income and creditworthy low-income countries .

2. IDA (International Development Association): Established in 1960, IDA is

the Bank's fund for the poorest countries. It provides long-term, interest-free
loans (known as "credits") and grants to the world's 75 poorest countries.

3. IFC (International Finance Corporation): Established in 1956, the IFC is the

largest global development institution focused exclusively on the private
sector in developing countries. It helps mobilize private capital and provides
investment and advisory services to businesses.

4. MIGA (Multilateral Investment Guarantee Agency): Established in 1988,

MIGA's mission is to promote cross-border investment into developing
countries by providing political risk insurance (guarantees) to investors and
lenders.

5. ICSID (International Centre for Settlement of Investment Disputes):

Established in 1966, ICSID provides international facilities for the conciliation

257 © 2025 ISSF

 and arbitration of investment disputes between foreign investors and
sovereign states.

Mandate & Functions

The WBG's overarching mission has evolved over time.

● Twin Goals: Its mission is guided by two primary goals to be achieved by
2030:

1. To end extreme poverty by decreasing the percentage of people living

on less than $2.15 a day to no more than 3%.

2. To promote shared prosperity by fostering the income growth of the

bottom 40% of the population in every country.

● Expanded Mandate (The Evolution Roadmap): Recognizing that global

challenges impact these goals, the Bank is currently undergoing a major reform
process that has expanded its mission to also focus on building resilience to
global challenges like climate change, pandemics, and state fragility .

● Functions: The WBG functions as a vital source of financial and technical

assistance to developing countries. It provides loans, grants, and policy advice,
and shares knowledge and expertise to help countries achieve sustainable
development.

Key Reports
The WBG is a leading source of research and data on global development. Its flagship
publications include:

● World Development Report (WDR): An influential annual report that

provides an in-depth analysis of a specific aspect of economic development.

● Global Economic Prospects: A biannual report that examines global

economic trends and their implications for developing countries.

258 © 2025 ISSF

Relationship with India
India has had a long, deep, and multifaceted relationship with the World Bank Group.

● Founding Member: India is a founding member of the IBRD, IDA, and IFC.

● Major Borrower: India has historically been the largest single recipient of
loans from the World Bank, particularly from the IBRD. The Bank has been a
key partner in India's development journey, funding numerous projects in
infrastructure, health, education, and rural development.

● Current Portfolio: As of 2025, the World Bank continues to be a major

partner, with a focus on supporting India's green transition. Recent projects
approved in late 2024 and early 2025 have focused on green hydrogen
development, renewable energy infrastructure, public health systems
strengthening, and sustainable urban mobility.

● Shift in Relationship: As India's economy has grown, the relationship has

evolved from a simple borrower-lender dynamic to a more collaborative
partnership. India now contributes to the Bank's resources (particularly IDA)
and shares its successful development experiences (like its Digital Public
Infrastructure) with other developing countries through the Bank.

● Leadership: In a significant development, Ajay Banga, an Indian-American

business executive, became the President of the World Bank in 2023, a
moment of immense pride and significance for India.

Contemporary Issues/Reforms
The World Bank Group is currently undergoing its most significant reform process in
decades, known as the "Evolution Roadmap."

● The "Bigger, Better, Bolder" Bank: The goal of the reform is to create a
Bank that is "bigger, better, and bolder."

○ "Bigger": To significantly increase the Bank's lending capacity to

meet the immense development and climate challenges. This is being
done by optimizing its capital adequacy framework and exploring new
ways to raise capital.

○ "Better": To make the Bank faster, more efficient, and more responsive
to the needs of client countries.

259 © 2025 ISSF

 ○ "Bolder": To expand the Bank's mission to tackle intertwined global
challenges and to create new mechanisms to incentivize private sector
investment in these areas.

● Shareholding Reform: A major ongoing issue is the demand for reforming

the Bank's shareholding quotas. Emerging economies like India, China, and
Brazil argue that the current shareholding structure, which is dominated by the
US and other Western countries, does not reflect the contemporary global
economic reality.

● They are pushing for a greater voice and representation in the Bank's
governance structure. India has been a strong and constructive voice in this
reform process, advocating for a stronger and more effective World Bank that
can better serve the needs of the Global South.

260 © 2025 ISSF

5.2.2 International Monetary Fund (IMF)
Genesis & HQ
● Genesis: The International Monetary Fund (IMF) was established in 1944 at
the Bretton Woods Conference in New Hampshire, USA, along with its sister
institution, the World Bank. Its creation was a response to the great depression
and the competitive currency devaluations of the 1930s.

● The IMF came into formal existence in 1945.

● Headquarters: The IMF is headquartered in Washington, D.C., USA.

Structure & Organs

The IMF is accountable to the governments of its 190 member countries.

● Board of Governors: This is the highest decision-making body of the IMF. It

consists of one governor and one alternate governor for each member country
(usually the minister of finance or the head of the central bank).

● Executive Board: This 24-member board is responsible for conducting the

day-to-day business of the IMF. The eight countries with the largest quotas
appoint an Executive Director, while the rest are elected by groups of countries
(constituencies).

● Managing Director: The Managing Director is the head of the IMF staff and
the Chair of the Executive Board.

Mandate & Functions

The IMF's primary mandate is to ensure the stability of the international monetary
system-the system of exchange rates and international payments that enables countries
(and their citizens) to transact with each other.

It carries out this mandate through three core functions:

1. Surveillance: The IMF monitors the economic and financial policies of its
member countries and the world at large. Through this "surveillance," it
highlights possible risks to stability and advises on needed policy adjustments.

261 © 2025 ISSF

 2. Lending (Financial Assistance): The IMF provides loans to member countries
that are experiencing balance of payments problems. This financial assistance
allows countries to rebuild their international reserves and stabilize their
economies while they implement policy adjustments to correct the underlying
problems.

3. Capacity Development: The IMF provides technical assistance and training to

help member countries, particularly low-income countries, build better
economic institutions and strengthen their human capacities.

Key Reports
The IMF is a leading source of analysis and data on the global economy.

Its three flagship publications are:

● World Economic Outlook (WEO): A comprehensive analysis of the global

economy and its growth prospects, published twice a year.

● Global Financial Stability Report (GFSR): Assesses key risks and

vulnerabilities in the global financial system. 1

● Fiscal Monitor: Tracks and analyzes public finance developments globally.

Contemporary Issues/Reforms: The Battle for Quotas

The most critical and contentious contemporary issue facing the IMF is the reform of
its governance structure, which is centered on the issue of quotas.

● What are Quotas?: Quotas are the building blocks of the IMF's financial and
governance structure. Each member country is assigned a quota, based broadly
on its relative position in the world economy.

● A member's quota determines:

○ Its financial contribution to the IMF.

○ Its voting power in IMF decisions.

○ Its access to IMF financing.

● The Problem of Representation: The current quota distribution, which

determines voting power, is widely seen as outdated. It does not reflect the

262 © 2025 ISSF

 significant shift in global economic weight towards dynamic emerging
economies like China, India, and Brazil. The United States and European
countries continue to hold a disproportionately large share of the voting power,
which undermines the IMF's legitimacy.

● The 16th General Review of Quotas (Completed Dec 2023):

○ Outcome: The 16th review concluded with a significant 50% increase

in the overall quota size, which strengthened the IMF's lending
resources.

○ The Compromise: However, in a major compromise, it did not involve

any realignment of quota shares among the members. This was done
to bypass the deadlock, primarily caused by the US's reluctance to
approve any changes.

● The 17th General Review of Quotas (Ongoing):

○ The next review is now underway, with a deadline of mid-2025. This

review is mandated to focus exclusively on the realignment of quota
shares. This will be the main battleground for governance reform.

○ The Key Obstacle: The primary obstacle remains the position of the
United States. With over 16% of the quota share, the US holds a unique
veto power over major IMF decisions (which require an 85%
supermajority).

○ Washington has been unwilling to approve any reform that would

significantly increase China's quota share (and voting power) and dilute
its own influence and that of its European allies.

Relationship with India

● Founding Member and Current Role: India is a founding member of the
IMF. After being a major borrower from the IMF until the landmark 1991
economic crisis, India's growing economy has transformed it into a contributor
to the IMF's resources. India currently holds the 8th largest quota at the IMF.

● India's Stance on Quota Reform: India has been a strong and consistent
advocate for IMF quota and governance reform. At all recent IMF and G20
meetings, India has reiterated its call for the 17th General Review to deliver a
meaningful realignment of quota shares.

263 © 2025 ISSF

● India's Argument: India argues that the IMF's credibility and effectiveness as
a global financial institution depend on its ability to reflect the contemporary
global economic reality. By giving a greater voice to dynamic emerging market
economies, the IMF can become a more legitimate and representative
institution. This is a central plank of India's broader push for the reform of
multilateral institutions.

264 © 2025 ISSF

5.2.3 World Trade Organization (WTO)
Introduction
The World Trade Organization (WTO) is the sole global international organization
dealing with the rules of trade between nations.

Its primary purpose is to ensure that global trade flows as smoothly, predictably, and
freely as possible.

However, the WTO is currently facing an existential crisis, with its core functions of
dispute settlement and negotiation being severely undermined.

The failure to conclude major trade rounds and the paralysis of its dispute resolution
system have led to a pressing and universal call for comprehensive reform. India, as a
major player in the global economy and a leader of the developing world, has a crucial
and well-defined stake in this reform process.

5.2.3.1 The Appellate Body Crisis

The Issue:
● The WTO's dispute settlement mechanism, particularly its two-tier system of
panels and a permanent Appellate Body, was once considered the "crown
jewel" of the organization. It provided a binding, rules-based system to resolve
trade disputes.

● Since 2017, the United States has systematically blocked the appointment of
new judges to the Appellate Body, citing concerns of judicial overreach and
procedural flaws. This has left the Appellate Body without a quorum since
December 2019, rendering it non-functional.

● As a result, any country that loses a dispute at the panel stage can appeal the
decision "into the void," effectively vetoing the entire process. This has
dismantled the binding nature of WTO dispute settlement.

Current Status:
● The deadline set at the 13th Ministerial Conference (MC13) in early 2024 to
restore a fully and well-functioning dispute settlement system by the end of
2024 was missed. The issue remains a major deadlock.

265 © 2025 ISSF

India's Stance:
● The restoration of the two-tier, binding dispute settlement system is India's
top priority for WTO reform.

● India believes that a credible and functional dispute settlement mechanism is

essential to protect the rights of all members, especially smaller and developing
nations, against the unilateral trade actions of powerful countries.

● India has consistently argued that without a functional enforcement

mechanism, the rules-based nature of the WTO is severely compromised, and
the organization risks returning to a power-based system of global trade.

5.2.3.2 The Legacy of the Doha Development Round

The Issue:

● The Doha Development Round, launched in 2001, was a major multilateral

trade negotiation aimed at prioritizing the needs of developing countries.

● However, it stalled and is now considered effectively defunct due to a deep

deadlock between developed and developing nations, primarily on the issue of
agricultural subsidies.

● The failure of the Doha Round means that many issues of critical importance to
developing countries remain unresolved.

The Unresolved Issue of Public Stockholding (PSH):

● Context: The most critical unresolved issue for India from the Doha agenda is
that of Public Stockholding (PSH) for food security. India's Minimum
Support Price (MSP) program, where it procures food grains from farmers for
its public distribution system, is technically considered a trade-distorting
subsidy under the outdated WTO rules.

● The "Peace Clause": A temporary "peace clause," agreed upon at the Bali
Ministerial in 2013, protects India's food security programs from being
challenged at the WTO. However, this clause is conditional and has onerous
notification requirements.

India's Stance:
● India, along with the G33 group of developing countries, is demanding a
permanent solution for its public stockholding programs.

266 © 2025 ISSF

 ● India argues that these programs are essential for the food security of hundreds
of millions of its citizens and for the livelihood of its farmers, and they cannot
be held hostage to the rules of international trade.

● Securing a permanent solution is a non-negotiable demand for India in any

broader agreement on agricultural reforms.

5.2.3.3 The Fisheries Subsidies Negotiations

The Issue:
● The WTO has been negotiating for over two decades to discipline harmful
fisheries subsidies that contribute to the depletion of global fish stocks.17 The
negotiations are divided into two parts.

Current Status:
● Phase 1 Agreement (MC12, 2022): The first part of the agreement was
successfully concluded at the 12th Ministerial Conference. It prohibits
subsidies that contribute to illegal, unreported, and unregulated (IUU)
fishing.

● Phase 2 Deadlock (MC13, 2024): The second, more contentious part of the
agreement, which aims to discipline subsidies that contribute to overcapacity
and overfishing (i.e., subsidies for large industrial fishing fleets), remains
deadlocked. No agreement could be reached at the 13th Ministerial
Conference.

India's Stance:
● India has taken a strong stand in these negotiations to protect the livelihoods of
its small-scale and artisanal fishing communities.

● India argues that it is the large-scale industrial fishing fleets of developed and
other distant-water fishing nations that are primarily responsible for the
depletion of global fish stocks, not the small-scale fishermen of developing
countries.

● Special and Differential Treatment (S&DT): India's key demand is for robust
and effective Special and Differential Treatment. Specifically, India is
demanding a long-term transition period (of at least 25 years) during which
it would be exempted from any commitments to cut subsidies for its
small-scale fishermen operating within its Exclusive Economic Zone (EEZ).

267 © 2025 ISSF

 ● India believes that any agreement that does not recognize this principle would
be inequitable and unfair.

Conclusion:
India's approach to WTO reforms is consistent and rooted in the principle of
protecting its national developmental interests. It is a defensive stance on issues where
it sees the proposed rules as infringing on its policy space (like in agriculture and
fisheries), and a proactive stance in demanding the restoration of the WTO's core
function of dispute settlement, which it sees as vital for a rules-based global order.

268 © 2025 ISSF

5.2.4 New Development Bank (NDB - BRICS Bank)
Genesis & HQ
● Genesis: The New Development Bank (NDB), also known as the "BRICS
Bank," was established by the BRICS countries (Brazil, Russia, India, China,
and South Africa). The agreement to create the bank was signed at the 6th
BRICS Summit in Fortaleza, Brazil, in 2014. The bank formally opened for
business in 2015.

● Core Idea: The NDB was created as a multilateral development bank to

provide an alternative to existing Western-dominated institutions like the World
Bank and the IMF, and to give a greater voice to emerging economies.

● Headquarters: The NDB is headquartered in Shanghai, China.

Structure & Organs

The NDB's structure is designed to reflect a more equitable partnership among its
members.

● Membership:
○ Founding Members: The five BRICS countries are the founding
members.

○ Expansion: The bank is open to all members of the United Nations. The
first round of new members included Bangladesh, Egypt, the United
Arab Emirates (UAE), and Uruguay. In a significant recent
development, Saudi Arabia was formally admitted as a new member in
early 2025.

● Governance Structure:
○ Board of Governors: This is the highest decision-making body, with
each member country appointing a Governor (usually the Finance
Minister).

○ Board of Directors: Responsible for the day-to-day operations and

approval of loans.

○ President: The presidency rotates among the founding members for a

five-year term. The current President is former Brazilian President
Dilma Rousseff.

269 © 2025 ISSF

 ● Key Feature - Equal Voting Rights: Unlike the quota-based, weighted voting
system of the World Bank and IMF, the NDB's founding members have equal
voting rights (20% each). This ensures that no single country can dominate
the decision-making process.

Mandate & Functions

The primary mandate of the NDB is to mobilize resources for infrastructure and
sustainable development projects.

● Core Functions:
○ Financing Infrastructure: To provide financing for public and private
projects in areas like transport, water sanitation, clean energy, and digital
connectivity.

○ Promoting Sustainable Development: To support projects that are

environmentally sustainable and socially inclusive.

● Lending in Local Currencies: A key and unique feature of the NDB's

operational strategy is its emphasis on lending in the national currencies of
its member countries. The objective is to:

○ Reduce the dependency on the US dollar for development finance.

○ Protect borrowing countries from the risks of exchange rate volatility.

○ Strengthen the local capital markets of its member countries.

Key Reports
The NDB's primary public document is its Annual Report, which details its
operations, financial performance, project approvals, and future strategy. It also
publishes specific reports on sustainable development and infrastructure financing.

270 © 2025 ISSF

Relationship with India
India, as a founding member, plays a crucial and active role in the NDB.

● Founding Member and Shareholder: India is one of the five founders with a
20% equity share and equal voting rights, giving it a significant voice in the
bank's governance and strategic direction.

● Major Recipient of Loans: India has been a major borrower from the NDB.
The bank has approved funding for numerous projects across India in sectors
such as:

○ Renewable Energy: Supporting the expansion of India's renewable

energy capacity.

○ Urban Mobility: Funding for various metro rail projects.

○ Infrastructure: Projects related to rural roads, water supply, and

sanitation.

○ Recent loans approved in late 2024 have focused on green hydrogen

development and strengthening public health infrastructure.

● Hosting Regional Center: India hosts the NDB's Africa Regional Center
(ARC) in Johannesburg, South Africa, on a rotational basis with South Africa,
and has been a strong advocate for a full-fledged regional office in India to
cater to the South Asia region.

Contemporary Issues and Challenges

The NDB is a young institution that is navigating a complex global environment.

● Navigating Geopolitical Sanctions: The most significant challenge for the

NDB has been managing its operations with one of its founding members,
Russia, being under extensive Western sanctions since the start of the
Ukraine conflict.

○ To protect its credit rating and its ability to raise funds in international
capital markets, the NDB has halted all new projects in Russia. This
has created a complex and sensitive situation within the bank, testing its
principle of multilateralism against the realities of global geopolitics.

271 © 2025 ISSF

● Expansion and Integration: The process of integrating new members,
including those from the expanded BRICS+ group, and defining their roles and
capital contributions is a key ongoing task.

● Increasing Lending Capacity: A major focus of the bank's current strategy is

to increase its lending capacity and to significantly increase the share of
projects financed in local currencies, which requires innovative financial
instruments and deeper engagement with the capital markets of its member
countries.

272 © 2025 ISSF

5.2.5 Asian Infrastructure Investment Bank (AIIB)
Genesis & HQ
● Genesis: The Asian Infrastructure Investment Bank (AIIB) is a modern
multilateral development bank conceived and led by China. It was proposed by
Chinese President Xi Jinping in 2013. Following negotiations, the bank was
officially established and began operations in January 2016.

● Core Idea: The AIIB was created to address the massive infrastructure funding
gap in Asia.

It is also widely seen as a key instrument of China's economic statecraft and an

effort to create a new international financial institution that reflects the growing
economic weight of Asia, providing an alternative to established
Western-dominated institutions like the World Bank and the Asian
Development Bank (ADB).

● Headquarters: The AIIB is headquartered in Beijing, China.

Structure & Organs

The AIIB's structure and governance are designed to be "lean, clean, and green."

● Membership: The bank has grown rapidly and has over 100 approved
members from across the world. Membership is open to all members of the
World Bank or the ADB and is divided into "regional" and "non-regional"
members.

○ Notable Non-Members: The United States and Japan have not joined
the AIIB, citing concerns about its governance standards and potential to
be a tool for Chinese foreign policy.

● Governance Structure: The bank has a three-tiered governance structure:

○ Board of Governors: This is the highest decision-making body, with

each member country appointing a Governor.

○ Board of Directors: A non-resident Board of Directors is responsible

for the supervision of the bank's operations and strategy.

○ President: The President is elected by the shareholders for a five-year

term and is the head of the bank's management. The current President is
Jin Liqun.

273 © 2025 ISSF

 ● Shareholding and Voting Rights:
○ The bank's shareholding structure is based on the economic size (GDP
in PPP terms) of its member countries.

○ As the largest economy, China is the largest shareholder, holding

approximately 26.5% of the voting rights.

○ This gives China a de-facto veto power over major decisions, which
require a 75% supermajority vote.

Mandate & Functions

The primary mandate of the AIIB is to foster sustainable economic development and
to improve infrastructure connectivity in Asia.

● Core Mission: The bank's mission is to finance "Infrastructure for

Tomorrow"-projects that are not only economically viable but also
environmentally and socially sustainable.

● Operational Priorities: The AIIB's operations are focused on four key

thematic priorities:

1. Green Infrastructure: Investing in projects that are climate-resilient

and promote the transition to a low-carbon future.

2. Connectivity and Regional Cooperation: Financing cross-border

infrastructure like roads, railways, and ports to enhance regional
integration.

3. Technology-enabled Infrastructure: Promoting the use of modern

technology to improve the efficiency and sustainability of infrastructure.

4. Mobilizing Private Capital: Using its own funds to attract and catalyze
private sector investment in infrastructure.

Key Reports
The AIIB's primary publications are its Annual Report, which details its financial
performance and operations, and its thematic reports on infrastructure financing trends
and challenges in Asia.

274 © 2025 ISSF

Relationship with India
Despite the complex bilateral relationship with China, India has been a key and active
participant in the AIIB since its inception.

Founding Member and Second-Largest Shareholder: India is a founding member

of the AIIB. After China, India is the second-largest shareholder, holding
approximately 7.5% of the voting rights. This gives India a significant voice in the
bank's governance.

● Largest Borrower: A key feature of the relationship is that India is the

largest recipient of loans from the AIIB. The bank has approved funding for
numerous projects across various states in India.

● Project Portfolio: The AIIB has funded a diverse portfolio of projects in India,
including:

○ Transport: Funding for various metro rail projects (e.g., Chennai,

Bengaluru) and rural road networks.

○ Energy: Significant investments in renewable energy projects and

power transmission systems.

○ Water and Sanitation: Projects aimed at improving rural water supply

and sanitation infrastructure.

○ COVID-19 Response: The AIIB provided loans to India to support its

public health response during the pandemic.

Contemporary Issues and Challenges

● Geopolitical Instrument of China: The AIIB is viewed by many, particularly
the US, as a key instrument of China's economic and geopolitical strategy. The
bank's policies and lending decisions are seen as being closely aligned with
China's broader foreign policy goals, including the Belt and Road Initiative
(BRI).

● Governance Concerns: The bank's credibility faced a major challenge in

mid-2023 when its former global communications director resigned publicly,
alleging that the bank was dominated by members of the Chinese Communist
Party and had a "toxic culture."

275 © 2025 ISSF

● While the bank's internal review cleared it of these allegations, the incident has
fueled persistent concerns about its governance, transparency, and
independence from Beijing.

● Cooperation with other MDBs: A key part of the AIIB's initial promise was
to complement, not compete with, the existing multilateral development banks
(MDBs).

● It has largely delivered on this promise, with a significant portion of its projects
being co-financed with institutions like the World Bank and the Asian
Development Bank (ADB). This has helped it gain legitimacy and adopt
international best practices in its operations.

276 © 2025 ISSF

5.3.1 World Health Organization (WHO)
Genesis & HQ
● Genesis: The World Health Organization (WHO) is a specialized agency of the
United Nations responsible for international public health. The constitution of
the WHO was adopted on July 22, 1946, and it formally came into force on
April 7, 1948, a date which is now celebrated annually as World Health Day.

● Headquarters: The WHO is headquartered in Geneva, Switzerland.

Structure & Organs

The WHO operates through a three-tiered structure, comprising its governing bodies
and its secretariat, and has a strong regional focus.

● The World Health Assembly (WHA): This is the supreme decision-making

body of the WHO. It is composed of delegations from all 194 Member States
and meets annually in Geneva. Its primary functions are to determine the
policies of the organization, appoint the Director-General, and approve the
programme budget.

● The Executive Board: Composed of 34 technically qualified members

elected for three-year terms. The Board's main function is to advise the WHA
and to implement its decisions and policies.

● The Secretariat: Headed by the Director-General (currently Dr. Tedros

Adhanom Ghebreyesus), the Secretariat comprises the technical and
administrative staff who carry out the day-to-day work of the WHO across its
various programmes.

● Regional Offices: The WHO has six regional offices around the world. India
is a member of the South-East Asia Regional Office (SEARO), which is
headquartered in New Delhi, India.

Mandate & Functions

The core mandate of the WHO, as set out in its Constitution, is the "attainment by
all peoples of the highest possible level of health." Its key functions include:

277 © 2025 ISSF

 ● Setting Norms and Standards: Developing evidence-based policies,
guidelines, and technical standards on global health issues.

● Disease Surveillance and Monitoring: Monitoring global health trends,

identifying disease outbreaks, and coordinating the international response to
public health emergencies.

● Providing Technical Support: Offering technical assistance to countries to

help them strengthen their own health systems.

● Coordinating Health Research: Shaping the global health research agenda.

● Declaring Public Health Emergencies: The WHO Director-General has the

authority to declare a "Public Health Emergency of International Concern"
(PHEIC), which is the highest level of alarm under the International Health
Regulations (IHR).

Key Reports
The WHO is the world's leading source of data and analysis on global health. Its
flagship publications include:

● The annual World Health Statistics report.

● The Global Tuberculosis Report.

● The World Malaria Report.

Relationship with India

India is a founding member of the WHO and has had a long, deep, and multifaceted
relationship with the organization.

● Key Partner in Governance: India plays a crucial role in the WHO's

governance and is currently a member of the Executive Board .

● WHO's Role in India: The WHO Country Office in India works closely with
the Ministry of Health and Family Welfare to support numerous national health
programs.

● This collaboration has been instrumental in historic public health achievements

like the eradication of smallpox and polio in India. The WHO continues to

278 © 2025 ISSF

 provide technical support for disease surveillance, vaccination campaigns, and
strengthening primary healthcare.

● India's Contribution to Global Health:

○ "Pharmacy of the World": India's role as a leading manufacturer and
supplier of affordable generic medicines and vaccines is critical for
global health security and is a key aspect of its partnership with the
WHO.

○ Traditional Medicine: In a major initiative led by India, the WHO

Global Centre for Traditional Medicine has been established in
Jamnagar, Gujarat, to harness the potential of traditional medicine
with modern science.

Contemporary Issues/Reforms (The Post-COVID-19 Agenda)

The COVID-19 pandemic exposed significant weaknesses in the global health
security architecture and has led to a major push for reforming the WHO and the
international systems for pandemic response.

● The Pandemic Treaty:

○ Objective: In response to the pandemic, WHO members began

negotiating a new international treaty on pandemic prevention,
preparedness, and response. The treaty's goal is to create a legally
binding framework to ensure a more coordinated and equitable global
response to future pandemics.

○ Current Status: The negotiations have been extremely complex. The

deadline to finalize the treaty at the World Health Assembly in May
2025 was missed due to deep divisions between developed and
developing countries.

○ India's Stance: India has been a strong advocate for "pandemic

equity." Its key demand in the negotiations is for legally binding
provisions that ensure fair, affordable, and equitable access for
developing countries to crucial medical countermeasures like vaccines,
diagnostics, and therapeutics during a health emergency.

● Amendments to the International Health Regulations (IHR): Running

parallel to the treaty negotiations is a process to amend the existing IHR (2005)

279 © 2025 ISSF

 to make them more effective. This includes proposals for faster reporting of
outbreaks and a more robust compliance mechanism.

● WHO Funding: A major and persistent challenge for the WHO is its funding
model. The organization is heavily reliant on voluntary, earmarked
contributions, which often come with specific conditions and limit its
operational flexibility.

● There is an ongoing reform effort, supported by India, to increase the share of

more predictable and flexible assessed contributions from member states to
ensure the WHO has the resources it needs to carry out its mandate effectively.

280 © 2025 ISSF

5.3.2 UNESCO (United Nations Educational, Scientific and Cultural
Organization)
Genesis & HQ

● Genesis: UNESCO was established on November 16, 1945, in the aftermath

of World War II. Its constitution was born from the belief that "since wars
begin in the minds of men, it is in the minds of men that the defences of peace
must be constructed." It acts as the specialized intellectual and normative
agency of the United Nations.

● Headquarters: UNESCO is headquartered in Paris, France.

Structure & Organs

UNESCO's governance is managed by two main bodies and a secretariat.

● The General Conference: This is the supreme decision-making body of

UNESCO. It brings together all Member States every two years to determine
the policies and main lines of work of the organization. It approves the
programme and budget and elects the members of the Executive Board and the
Director-General.

● The Executive Board: This is a smaller body of 58 Member States elected by

the General Conference for a four-year term. It acts as the supervisory body for
the implementation of the programs adopted by the General Conference.

● The Secretariat: Headed by the Director-General (currently Audrey

Azoulay), the Secretariat is the administrative arm of the organization,
responsible for implementing the decisions of the General Conference and the
Executive Board.

Mandate & Functions

UNESCO's core mission is to contribute to the building of a culture of peace, the
eradication of poverty, sustainable development, and intercultural dialogue through its
five major program sectors:

1. Education: Leading the global effort to achieve Education for All (SDG 4),
setting standards for quality education, and promoting lifelong learning.

281 © 2025 ISSF

 2. Natural Sciences: Promoting scientific research and cooperation,
strengthening science education, and leading key programs like the Man and
the Biosphere (MAB) Programme and the International Hydrological
Programme (IHP).

3. Social and Human Sciences: Fostering social inclusion, combating

discrimination, promoting youth engagement, and addressing the ethical
dimensions of scientific advancements, such as the ethics of Artificial
Intelligence.

4. Culture: This is UNESCO's most visible function. It focuses on protecting and

promoting cultural heritage in all its forms, both tangible and intangible, and
fostering creativity and cultural diversity.

5. Communication and Information: Promoting freedom of expression, the

safety of journalists, media development, and building inclusive knowledge
societies through programs like the Memory of the World Programme.

Key Reports (Lists and Designations)

While UNESCO publishes many reports (like the Global Education Monitoring
Report), its most influential "outputs" are its globally recognized lists and
designations, which confer immense prestige and encourage preservation efforts.

● The World Heritage List: Inscribes natural and cultural sites of "outstanding
universal value."

● The List of Intangible Cultural Heritage: Recognizes and protects traditional

practices, expressions, knowledge, and skills.

● The Memory of the World Register: Preserves the world's documentary

heritage, such as manuscripts and archives.

● Other designations include Biosphere Reserves and Global Geoparks.

Relationship with India

India is a founding member of UNESCO (since 1946) and has a very strong and active
relationship with the organization, leveraging it to showcase its rich heritage and to
contribute to global intellectual cooperation.

282 © 2025 ISSF

 ● World Heritage Sites: As of July 2025, India has 43 properties inscribed on
the World Heritage List (35 Cultural, 7 Natural, and 1 Mixed). The most recent
addition in 2024 was the Moidams (the mound-burial system of the Ahom
Dynasty) in Assam.

● Intangible Cultural Heritage (ICH): India has 15 elements inscribed on the

ICH list, making it one of the leading countries in this regard. The most recent
addition was Garba of Gujarat in 2023. This list also includes Yoga, Kumbh
Mela, and Durga Puja.

● Memory of the World Register: In a significant recent development in April

2025, two of India's most profound texts, the Bhagavad Gita and the
Natyashastra, were added to this prestigious register, recognizing their
universal philosophical and aesthetic value.

● Leadership Role: India plays a key leadership role in shaping UNESCO's

agenda. It has been a strong advocate for focusing on the needs of the Global
South and has recently chaired important regional consultations, such as for the
MONDIACULT 2025 World Conference on cultural policies.

Contemporary Issues/Reforms
UNESCO, like other UN bodies, faces several contemporary challenges.

● Funding Challenges: The organization's budget is often strained, with a heavy

reliance on voluntary contributions from member states to supplement its
regular budget. This can make long-term planning difficult.

● Politicization: UNESCO has often been a theatre for geopolitical disputes. The
process of inscribing World Heritage Sites, especially those located in disputed
territories, can become highly politicized.

● US Re-entry and its Implications: The United States withdrew from

UNESCO in 2017, citing concerns of anti-Israel bias and the need for
fundamental reform. Its official re-entry into the organization in 2023 was a
major development, aimed at restoring US influence and countering China's
growing role within the institution. This has implications for the organization's
budget and its internal political dynamics.

● Addressing Modern Challenges: UNESCO is actively working to adapt its

mandate to 21st-century challenges. It is at the forefront of developing global
ethical guidelines for Artificial Intelligence (AI) and is leading global

283 © 2025 ISSF

discussions on the Future of Education and the impact of climate change on
world heritage.

284 © 2025 ISSF

5.3.3 International Labour Organization (ILO)
Genesis & HQ
● Genesis: The International Labour Organization (ILO) was created in 1919, as
part of the Treaty of Versailles that ended World War I.

● It was founded on the belief that universal and lasting peace can be established
only if it is based upon social justice. In 1946, it became the first specialized
agency of the newly formed United Nations.

● Headquarters: The ILO is headquartered in Geneva, Switzerland.

Structure & Organs

The most unique feature of the ILO is its tripartite structure, which is unique in the
UN system. It brings together representatives of governments, employers, and
workers of its 187 Member States to set labour standards, develop policies, and
devise programmes.

● The International Labour Conference (ILC): This is the supreme

decision-making body of the ILO, often referred to as the "international
parliament of labour."

● It meets annually in Geneva to set the broad policies of the ILO, including the
adoption of new international labour standards. Each member state is
represented by a delegation consisting of two government delegates, one
employer delegate, and one worker delegate.

● The Governing Body: This is the executive council of the ILO. It meets three
times a year to take decisions on ILO policy, decide the agenda of the ILC, and
elect the Director-General.

● The International Labour Office: This is the permanent secretariat of the

ILO, headed by the Director-General. It is the focal point for all activities,
which it prepares under the scrutiny of the Governing Body and the leadership
of the Director-General.

285 © 2025 ISSF

Mandate & Functions
The ILO's primary mandate is to advance social and economic justice by setting
international labour standards.

Its work is centered around the Decent Work Agenda, which is based on four
strategic objectives:

1. To promote and realize standards and fundamental principles and rights

at work.

2. To create greater opportunities for women and men to secure decent

employment and income.

3. To enhance the coverage and effectiveness of social protection for all.

4. To strengthen tripartism and social dialogue.

Key Functions:
● Setting International Labour Standards: The ILO formulates international
labour standards in the form of Conventions (legally binding international
treaties that member states can ratify) and Recommendations (non-binding
guidelines).

● Technical Cooperation: It provides technical assistance to member countries

in areas like vocational training, employment policy, social security, and
occupational safety.

● Research and Knowledge Sharing: The ILO is a leading source of research

and data on the world of work.

Key Reports
The ILO produces several major reports that are key references for policymakers and
academics.

● World Employment and Social Outlook (WESO): An annual report that

provides a global overview of employment and social trends.

● Global Wage Report: A biennial report that analyzes global wage trends.

286 © 2025 ISSF

Relationship with India
India is a founding member of the ILO and has played a significant role in its
governance.

● Role in Governance: India holds a permanent seat on the ILO's Governing

Body as one of the ten countries of "chief industrial importance." This gives
India a significant voice in shaping the ILO's policies and agenda.

● Ratification of Conventions: As of 2025, India has ratified 47 out of 190 ILO

conventions. This includes 6 out of the 8 core/fundamental conventions. The
two fundamental conventions that India has not ratified are:

○ C87 (Freedom of Association and Protection of the Right to

Organise)

○ C98 (Right to Organise and Collective Bargaining): The government has

cited certain restrictions on government servants' rights to strike as a
reason for not ratifying these two conventions.

● Recent Engagement: At the most recent International Labour Conference

in June 2025, India actively participated in the discussions on the key themes
of the platform economy and social justice, highlighting its domestic
initiatives to provide social security to gig and platform workers under its new
labour codes.

Contemporary Issues/Reforms
The ILO's agenda is currently dominated by the need to address the profound
transformations in the world of work.

● The Future of Work: This is the central contemporary issue, encompassing

several key challenges:

○ The Platform and Gig Economy: Ensuring decent working conditions,

fair wages, and access to social protection for the growing number of
platform and gig workers.

○ Artificial Intelligence (AI): Addressing the impact of AI and

automation on jobs, the need for new skills (reskilling and upskilling),
and the ethical dimensions of AI in the workplace.

287 © 2025 ISSF

 ○ A "Just Transition": Developing policies to ensure that the global shift
to a green economy is fair and inclusive, and that the new green jobs
created are also "decent jobs" with full labour rights.

● Global Coalition for Social Justice: A key recent initiative launched by the
ILO Director-General is the "Global Coalition for Social Justice." It aims to
bring together various international actors to increase collaboration and
advocate for social justice as a driver of sustainable development.

India has joined and actively supports this coalition, aligning it with its own
domestic focus on inclusive growth ("Sabka Saath, Sabka Vikas").

● Strengthening Social Protection: In the wake of the COVID-19 pandemic,

which exposed the vulnerability of workers without social safety nets, there is a
major global push led by the ILO to expand social protection systems
worldwide.

288 © 2025 ISSF

5.3.4 Food and Agriculture Organization (FAO)
Genesis & HQ

● Genesis: The Food and Agriculture Organization (FAO) is a specialized

agency of the United Nations that leads international efforts to defeat hunger
and improve nutrition and food security.

● It was established on October 16, 1945, in Quebec, Canada, making it one of

the oldest permanent specialized agencies of the UN. October 16th is now
celebrated annually as World Food Day.

● Headquarters: The FAO is headquartered in Rome, Italy.

Structure & Organs

The FAO is governed by its member countries, which meet in regular sessions to
review global food and agriculture issues and the organization's work.

● The Conference of Member Nations: This is the supreme governing body of

the FAO. It includes all 195 members (194 countries and the European Union)
and meets every two years to determine the policies of the organization,
approve the budget, and make recommendations to members on food and
agriculture issues.

● The Council: This is the executive organ of the FAO. It comprises 49 member
states elected by the Conference for three-year terms. The Council acts as the
governing body between Conference sessions, overseeing the implementation
of the FAO's programme of work and budget.

● The Secretariat: Headed by a Director-General (currently Qu Dongyu of

China), the Secretariat is responsible for the day-to-day operations and for
implementing the programmes and policies approved by the governing bodies.

Mandate & Functions

The FAO's primary mandate is to achieve food security for all. Its official motto is
"Fiat panis", which translates from Latin as "Let there be bread." The organization's
work is guided by its Strategic Framework 2022-31, which aims to support the 2030
Agenda through the transformation to more efficient, inclusive, resilient, and
sustainable agri-food systems.

289 © 2025 ISSF

Key Functions:
● Data and Knowledge Hub: The FAO collects, analyzes, and disseminates data
and information on food, agriculture, and natural resources. Its statistical
database (FAOSTAT) is a global public good.

● Neutral Forum: It serves as a neutral forum where nations can meet to

negotiate agreements and debate policies related to food and agriculture.

● Setting International Standards: The FAO, jointly with the World Health
Organization (WHO), created the Codex Alimentarius Commission in 1963
to develop international food standards, guidelines, and codes of practice to
protect consumer health and ensure fair practices in the food trade.

● Technical Assistance: It provides technical knowledge and assistance to

developing countries to help them modernize and improve their agriculture,
forestry, and fisheries practices and ensure food security for their populations.

Key Reports
The FAO produces several major flagship reports that are authoritative sources of
information on global food and agriculture.

● The State of Food Security and Nutrition in the World (SOFI): An annual
report that monitors global progress towards ending hunger and malnutrition.

● The State of Food and Agriculture (SOFA): An annual report that provides a
deep dive into a specific, critical issue related to food and agriculture.

● The State of the World's Forests (SOFO): A biennial report on the status of
global forest resources.

Relationship with India

India is a founding member of the FAO and has had a long and active partnership
with the organization.

● Strategic Alignment: The FAO's Country Programming Framework for India

is closely aligned with the Indian government's own priorities for agriculture
and rural development, focusing on sustainable agriculture, food and nutrition
security, and poverty reduction.

290 © 2025 ISSF

 ● International Year of Millets (2023): This was a major recent diplomatic
initiative championed by India at the FAO. At India's proposal, the UN General
Assembly declared 2023 as the International Year of Millets. This successful
initiative has raised global awareness about the nutritional and environmental
benefits of millets, which are considered "superfoods."

● Technical Cooperation: The FAO provides valuable technical assistance to

India for various projects, including promoting climate-resilient agriculture,
strengthening farmer-producer organizations (FPOs), improving livestock
health, and tackling antimicrobial resistance (AMR) in the food chain.

● India's Contribution: India contributes to the FAO's work by sharing its own
expertise and successful models in agriculture and food security with other
developing countries through South-South cooperation.

Contemporary Issues and Challenges

The FAO's work is currently focused on addressing a complex set of interconnected
global challenges that threaten food security.

● Agri-food Systems Transformation: This is the central contemporary theme.

The FAO is advocating for a major transformation of global agri-food systems
to make them more efficient, inclusive, resilient, and sustainable (often
referred to as the "Four Betters").

● Impact of the "Polycrisis": Recent FAO reports emphasize the severe and
combined impact of the "3Cs" - Conflict, Climate Change, and economic
Crises (post-COVID) - on global food security. These factors have reversed
years of progress in the fight against hunger and have led to a rise in global
food insecurity.

● The "One Health" Approach: The FAO is a key proponent of the "One
Health" approach, which is a collaborative, multisectoral approach that
recognizes the deep interconnection between the health of people, animals,
plants, and their shared environment. This is seen as crucial for preventing
future zoonotic diseases that can originate from the agricultural sector.

● Digital Agriculture: The FAO is actively promoting the use of digital

technologies-such as remote sensing, drones, and mobile applications-to
improve agricultural productivity, create more efficient food supply chains, and
provide smallholder farmers with better access to information and markets.

291 © 2025 ISSF

5.3.5 International Atomic Energy Agency (IAEA)
Genesis & HQ
● Genesis: The International Atomic Energy Agency (IAEA) was established as
an autonomous organization within the United Nations family in 1957. Its
creation was a direct result of US President Dwight D. Eisenhower's famous
"Atoms for Peace" speech at the UN General Assembly in 1953.

● The speech called for the creation of an international body to control and
promote the peaceful use of atomic energy.

● Headquarters: The IAEA is headquartered at the Vienna International

Centre in Vienna, Austria.

Structure & Organs

The IAEA's governance is managed by two main policymaking bodies and a
secretariat.

● The General Conference: This is the highest decision-making body of the

IAEA, composed of representatives from all Member States. It meets annually
to approve the budget, elect members to the Board of Governors, and decide on
major policy issues.

● The Board of Governors: This is the executive body of the IAEA. It consists
of 35 members-some designated by the Board itself as the most advanced in
nuclear technology, and others elected by the General Conference. The Board
is responsible for making most of the policy decisions and recommendations to
the General Conference.

● The Secretariat: Headed by a Director-General (currently Rafael Mariano

Grossi), the Secretariat is the professional and technical arm of the IAEA,
responsible for implementing the decisions of the governing bodies.

292 © 2025 ISSF

Mandate & Functions
The IAEA has a unique dual mandate, which is often described as the two sides of the
"Atoms for Peace" coin:

1. Promotional Role ("Atoms for Peace and Development"):

○ The IAEA works to promote the safe, secure, and peaceful use of
nuclear science and technology.

○ It provides technical assistance and cooperation to member states in

areas like:

■ Nuclear Power: Helping countries develop and manage nuclear

power programs.

■ Health: Using nuclear techniques in cancer diagnosis and

therapy (radiotherapy).

■ Agriculture: Using radiation to develop new crop varieties and

manage insect pests.

■ Water Management: Using isotopic hydrology to manage water

resources.

2. Verification Role ("Nuclear Watchdog"):

○ This is the IAEA's most critical function. It acts as the world's nuclear
inspectorate.

○ Through its system of safeguards, the IAEA verifies that nuclear

material and technology intended for peaceful purposes are not diverted
to military use.

○ This involves on-site inspections, monitoring, and verification of states'

declarations about their nuclear programs. The IAEA's safeguards
system is a central component of the global nuclear non-proliferation
regime under the Non-Proliferation Treaty (NPT).

293 © 2025 ISSF

Key Reports
The IAEA's reports are crucial for global security and transparency.

● Safeguards Implementation Reports (SIR): These reports provide the Board

of Governors with the IAEA's conclusions on its verification activities in states.

● Specific Verification Reports: The IAEA produces regular reports on its

verification and monitoring activities in specific countries of concern, such as
Iran.

● Other major publications include the Nuclear Safety Review and the Annual
Report.

Relationship with India

India is a founding member of the IAEA and has had a long, complex, and now highly
cooperative relationship with the agency.

● Role in Governance: As one of the world's most advanced countries in nuclear

technology, India holds a permanent designated seat on the IAEA's Board
of Governors.

● The India-Specific Safeguards Agreement:

○ Following the India-US Civil Nuclear Deal, India signed a unique

"Agreement between the Government of India and the IAEA for the
Application of Safeguards to Civilian Nuclear Facilities" in 2009.

○ This agreement is "India-specific" because, unlike non-nuclear-weapon

states under the NPT who must place all their nuclear material under
safeguards, India's agreement allows it to voluntarily place only its
declared civilian nuclear facilities under IAEA safeguards.

○ Its military nuclear facilities remain outside the purview of IAEA

inspections. This was a key step in ending India's nuclear isolation.

● Technical Cooperation: India has a robust partnership with the IAEA. It is not
just a recipient of technical assistance but is also a major contributor, sharing
its expertise with other developing countries, particularly in the fields of
nuclear agriculture and cancer therapy using Indian-developed radiotherapy
machines like the Bhabhatron.

294 © 2025 ISSF

Contemporary Issues and Challenges
The IAEA is at the forefront of several major global security and technological
challenges.

● Nuclear Safety in Conflict Zones: A major new and dangerous challenge is

ensuring the safety of nuclear facilities in active war zones.

● The IAEA's ongoing efforts to establish and maintain a nuclear safety and
security protection zone around the Zaporizhzhia Nuclear Power Plant in
Ukraine have been a top priority.

● Nuclear Non-Proliferation Challenges: The IAEA continues to face

significant challenges in its verification mission in countries like Iran, where
there are ongoing disputes over the scope of monitoring activities, and in
North Korea, from which IAEA inspectors have been expelled.

● Safeguarding New Technologies (AUKUS): The IAEA has been tasked with
a new and complex verification challenge: developing a safeguards approach
for the transfer of nuclear-powered submarines and their fuel to a
non-nuclear-weapon state (Australia) under the AUKUS security pact.

● Promoting Small Modular Reactors (SMRs): The IAEA is playing a leading

role in facilitating the development and deployment of new nuclear
technologies like SMRs, which are seen as a potentially safer and more flexible
option for clean energy production. The agency is working on developing
safety standards and regulatory frameworks for these new reactor designs.

295 © 2025 ISSF

5.3.6 Financial Action Task Force (FATF)
Genesis & HQ
● Genesis: The Financial Action Task Force (FATF) was established by the G7
Summit in Paris in 1989. It was initially created to combat the growing
problem of money laundering.

● Expansion of Mandate: After the terrorist attacks of September 11, 2001

(9/11), the FATF's mandate was expanded to include combating the financing
of terrorism (CFT). It has since been further expanded to include countering
the financing of the proliferation of weapons of mass destruction.

● Headquarters: The FATF Secretariat is hosted at the headquarters of the

Organisation for Economic Co-operation and Development (OECD) in
Paris, France.

Structure & Organs

The FATF is not a formal international organization with a treaty. It is a "task force" or
a policy-making body that operates on the basis of political commitment from its
members.

● Membership: It consists of over 39 members, including most major financial

centers.

● The FATF Plenary: This is the sole decision-making body of the FATF. It
convenes three times a year and brings together delegates from all member
jurisdictions and observer organizations.

● FATF-Style Regional Bodies (FSRBs): The FATF has a global network of

nine FSRBs, which are autonomous bodies but have similar forms and
functions. These regional bodies are crucial for promoting the implementation
of FATF standards globally. India is a member of the Asia/Pacific Group on
Money Laundering (APG).

296 © 2025 ISSF

Mandate & Functions
The FATF's primary mandate is to set international standards and promote the
effective implementation of legal, regulatory, and operational measures for combating
money laundering, terrorist financing, and other related threats to the integrity of the
international financial system.

Key Functions:

1. Setting International Standards: The FATF develops and promotes the

internationally recognized FATF 40 Recommendations on Anti-Money
Laundering (AML) and Combating the Financing of Terrorism (CFT). These
are not legally binding but are considered the global standard.

2. Assessing Compliance (Mutual Evaluations): The FATF assesses its

members' compliance with these standards through a rigorous peer-review
process known as Mutual Evaluations. These evaluations check both the
technical compliance (are the laws in place?) and the effectiveness (are the
laws working in practice?).

3. Identifying High-Risk Jurisdictions: This is the FATF's most powerful tool. It

publicly identifies countries with weak AML/CFT regimes.

This process involves two key lists:

○ The "Black List": Officially called "High-Risk Jurisdictions subject to

a Call for Action." These are countries with significant strategic
deficiencies in their AML/CFT regimes.

○ The "Grey List": Officially called "Jurisdictions under Increased

Monitoring." These are countries that have committed to resolving their
strategic deficiencies within an agreed timeframe but are subject to
increased monitoring.

Being placed on the grey list can make it difficult for a country to access
global financial markets and can deter foreign investment.

Key Reports (Outputs)

The FATF's most important publications are:

● Public Statements: Issued at the end of each Plenary, these statements

announce the updated "black list" and "grey list."

297 © 2025 ISSF

 ● Mutual Evaluation Reports (MERs): Detailed reports on the compliance of
individual member countries.

● Typology Reports: Reports that identify new methods and trends in money
laundering and terrorist financing.

Relationship with India

India has a strong and active relationship with the FATF, using it as a key platform to
advance its national security interests.

● Membership: After a period as an observer, India became a full member of

the FATF in 2010. It is also an active member of its regional body, the APG.

● Strategic Use of the Platform: India has been highly successful in using the
FATF platform to highlight the issue of cross-border terror financing. It played
an instrumental role in the "grey-listing" of Pakistan from 2018 to 2022,
which put significant international pressure on Islamabad to take action against
terror financing on its soil.

● India's Mutual Evaluation: India's own compliance with FATF standards is

subject to peer review. The on-site visit for India's latest mutual evaluation was
completed in late 2023. The final Mutual Evaluation Report (MER) for
India is expected to be discussed and adopted at the FATF Plenary in
October 2025. This will be a crucial assessment of India's own AML/CFT
framework.

Contemporary Issues and Challenges

The FATF's agenda is constantly evolving to address new and emerging threats to the
global financial system.

● Regulation of Virtual Assets (Cryptocurrencies): This is a top priority for

the FATF. It has issued specific standards (updating Recommendation 15)
requiring countries to license and regulate Virtual Asset Service Providers
(VASPs), such as cryptocurrency exchanges, to prevent their misuse for money
laundering and terror financing. The global implementation of these standards,
however, remains patchy.

● Beneficial Ownership Transparency: The FATF has strengthened its

recommendations on identifying the "beneficial owners" of companies to

298 © 2025 ISSF

 prevent the misuse of anonymous shell companies and complex legal
arrangements to hide illicit funds.

● Criticisms of Politicization: A major contemporary challenge for the FATF is

the criticism that its decision-making process, particularly on "greylisting," can
be influenced by geopolitical considerations rather than being purely
technical. Some countries have argued that the listing process is not always
transparent or objective.

299 © 2025 ISSF