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GS Paper: GS2-18.Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

  • [25th July 2025] The Hindu Op-ed: The India-U.K. FTA spells a poor deal for public health

    PYQ Relevance:

    [UPSC 2024] In a crucial domain like the public healthcare system, the Indian State should play a vital role to contain the adverse impact of marketisation of the system. Suggest some measures through which the State can enhance the reach of public health care at the grassroots level.

    Linkage: The article highlights how tariff-free entry of HFSS products leads to “lower prices” and “aggressive marketing,” posing “grave long-term health risks”. The question’s call for the Indian State to play a “vital role to contain the adverse impact” and suggest measures aligns perfectly in the article’s advocacy for “strong measures to regulate the advertising of HFSS” and “mandatory FOPNL” to protect public health.

     

    Mentor’s Comment:  India and the United Kingdom signed a Free Trade Agreement (FTA) on July 24, 2025, during Prime Minister Narendra Modi’s visit to the UK. While the deal promises economic benefits, it has triggered serious public health concerns due to the likely surge of tariff-free imports of unhealthy, ultra-processed food products from the UK into India.

    Today’s editorial analyses the recently signed Free Trade Agreement (FTA) between India and the United Kingdom. This topic is important for GS Paper II (International Relations) in the UPSC mains exam.

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    Let’s learn!

    Why in the News?

    India and the United Kingdom recently signed a Free Trade Agreement (FTA) to boost bilateral trade, reduce tariffs, enhance market access, and strengthen economic and strategic ties between both nations.

    What are the key provisions of the India–UK FTA?

    • Tariff Reductions on Goods: Reduction or elimination of customs duties on products like textiles, leather, and machinery from India and premium liquor, automobiles, and pharma from the UK.
    • Services Sector Access: Easier market access for Indian professionals (e.g., IT experts, nurses, yoga instructors) and UK financial, legal, and education services.
    • Investment and Regulatory Cooperation: Investor protection clauses and liberalised FDI norms to encourage bilateral investments with predictable regulatory environments.
    • Digital Trade and Intellectual Property Rights: Provisions for secure cross-border data flows, IPR enforcement, and e-commerce facilitation, supporting startups and tech trade.
    • Labour Mobility and Social Security Coordination: Allows short-term professionals to avoid double social security payments, benefiting workers on temporary assignments.

    Why has the FTA triggered health concerns in India?

    • Stricter Intellectual Property (IP) Provisions: The UK is pushing for TRIPS-plus measures such as patent term extensions and data exclusivity, which could delay the entry of generic medicines in India. Eg: Cancer or HIV patients in India may face delayed access to affordable generics if extended patents block local production.
    • Threat to Domestic Pharma Industry: Indian generic manufacturers fear reduced competitiveness due to stricter IP norms, which may raise medicine costs and affect public health schemes. Eg: India’s role as the “pharmacy of the Global South” may weaken, affecting exports to Africa and Latin America.
    • Limited Access to Government Procurement: If the FTA includes government procurement commitments, it may restrict India’s ability to prioritise domestic firmsfor health supplies under public schemes. Eg: Public procurement for schemes like Jan Aushadhi may face restrictions, impacting affordable medicine distribution.

    How does Mexico’s NAFTA experience inform India’s approach to FTAs?

    • Uneven Gains Across Sectors: NAFTA boosted Mexico’s manufacturing exports, especially to the US, but agriculture suffered due to competition from heavily subsidised US farms, displacing small farmers. Eg: India should protect its small-scale agriculture and MSMEs in FTAs to avoid rural distress and job losses.
    • Job Creation Without Security: While NAFTA generated employment in export-driven industries, these jobs were often low-paid, lacked labour rights, and offered poor working conditions. Eg: India must ensure FTAs include labour safeguards and social protection for workers, especially in textiles and electronics.
    • Weak Domestic Supply Chains: Mexico became heavily dependent on foreign inputs and technologies, undermining local value chains and domestic innovation. Eg: India should strengthen its Make in India and Atmanirbhar Bharat efforts by ensuring technology transfer and local sourcing mandates in FTAs.

    What are the regulatory differences between India and the UK on unhealthy food products?

    Aspect India United Kingdom (UK)
    Front-of-Pack Labelling Voluntary system; no mandatory warning labels for high fat/sugar/salt Mandatory traffic light system highlighting fat, sugar, and salt levels
    Advertising to Children Limited restrictions; junk food often advertised during kids’ content Strict regulations on TV and online adstargeting children for junk food
    Nutritional Standards in Schools No uniform enforcement across states; junk food in/near schools persists Banned sale of sugary drinks and high-fat snacks in school premises

    Why is Front-of-Pack Nutrition Labelling (FOPNL) important post-FTA?

    • Protects Public Health from Imported Junk Food: With the FTA, imports of ultra-processed and unhealthy foods may rise. FOPNL provides clear warnings (e.g., high in sugar, fat, salt) to help consumers make healthier choices. Eg: Chile introduced warning labels, leading to a drop in sugary drink sales by 25%.
    • Empowers Consumers with Informed Choices: Indian consumers often lack nutritional awareness. FOPNL enables them to understand the health risks of packaged foods at a glance, regardless of foreign branding or marketing. Eg: In Brazil, FOPNL helped rural consumers avoid misleading “natural” claims on unhealthy imported snacks.
    • Counters Aggressive Marketing by Foreign Brands: Post-FTA, multinational food companies may flood the Indian market with aggressive marketing. FOPNL acts as a visual deterrent, discouraging overconsumption, especially among children. Eg: In Mexico, FOPNL helped reduce the purchase of snacks targeted at children despite flashy packaging.

    Way forward: 

    • Implement Mandatory Front-of-Pack Labelling (FOPNL): The Indian government should finalize and enforce strong, interpretive FOPNL regulations (like warning labels) based on WHO guidelines to help consumers easily identify foods high in salt, sugar, and fat.
    • Strengthen Domestic Food Standards and Surveillance: Ensure alignment between imported and domestic food safety regulations, backed by robust monitoring by FSSAI. This will prevent imported unhealthy products from bypassing scrutiny and harming public health.

  • ‘Pact for the Future’ Agreement

    Why in the News?

    India has renewed its call for time-bound reforms of the UN Security Council and reaffirmed support for the ‘Pact for the Future’ to strengthen global cooperation.

    About the ‘Pact for the Future’ Agreement:

    • Origin: Adopted at the UN Summit of the Future (September 2024).
    • Purpose: To reinvigorate multilateralism and strengthen global cooperation on contemporary and emerging challenges.
    • Scope: Comprises 56 commitments spanning development, peace, digital governance, and institutional reforms.
    • Annexes:
      1. Global Digital Compact: Sets frameworks for AI, digital access, and rights.
      2. Declaration on Future Generations: Mainstreams long-term thinking in policymaking.
    • Inclusivity: Drafted through multi-year negotiations involving member states, civil society, and global institutions.
    • Implementation and Review Mechanism:
      • Implementation through intergovernmental processes led by relevant UN agencies.
      • First formal review at the 83rd UNGA (2028) at the Head of State/Government level.
      • Monitoring via national/international accountability frameworks.

    Notable Features and Challenges:

    • Historic Significance:
      • One of the broadest international agreements in scope.
      • Embodies a “new multilateralism” for adapting the UN to modern realities.
    • Controversies:
      • Not unanimously adopted – Russia, Iran, and others objected to elements they found insufficient or overambitious.
    • Criticisms:
      • Lacks detailed mechanisms for enforcement and implementation.
      • Disagreements persist on UNSC reform, disarmament timelines, and climate financing.

  • At FTA’s heart, the promise of Global Capacity Centres

    Why in the News?

    India and the United Kingdom are nearing the finalisation of a Free Trade Agreement (FTA) that is expected to significantly reshape their bilateral economic relationship. A key area of focus is the expansion of Global Capability Centres (GCCs) in India.

    What are GCCs (Global Capability Centres)?

    GCCs are offshore units set up by multinational companies (MNCs) in countries like India to handle critical business functions.

    How can GCCs boost the India-U.K. FTA?

    • Enhance Digital Collaboration: GCCs in India offer services like AI, cybersecurity, and R&D that align with the UK’s digital economy goals. Eg: British companies like Barclays use India’s GCCs for advanced analytics and digital banking solutions.
    • Support Professional Mobility: GCC operations require movement of skilled professionals between India and the UK, pushing for smoother visa and work policies. Eg: Infosys and TCS facilitate cross-border staff exchanges for UK-based projects.
    • Strengthen Global Supply Chains: GCCs act as strategic hubs for managing global operations and reducing dependency on single markets. Eg: Unilever runs global compliance and finance functions from its India GCC, supporting resilience and efficiency.

    Why is India a preferred hub for GCCs?

    • Cost Advantage: Operating a GCC in India is more cost-effective compared to Western countries, enabling firms to maintain quality while optimizing costs. Eg: Target Corporation runs its Indian GCC in Bengaluru to handle IT services and supply chain support at reduced costs.
    • Robust Digital Infrastructure: India’s expanding digital ecosystem and government support through policies like Digital India attract companies to establish innovation hubs here. Eg: Bosch established a smart manufacturing and AI innovation centre in Bengaluru as part of its India-based GCC.

    What policy steps support GCC growth in India?

    • Digital India Mission: Promotes digital infrastructure and connectivity, enabling a strong foundation for tech-driven operations. Eg: A U.S. retail firm’s GCC in Hyderabad leverages India’s broadband push to manage global e-commerce platforms.
    • Startup India & Innovation Support: Encourages collaboration between GCCs and Indian startups for agile solutions and R&D. Eg: A financial GCC in Pune co-develops regtech tools with local fintech startups.
    • Special Economic Zones (SEZs) & IT Parks: Offer tax incentives, simplified compliance, and ready infrastructure for foreign firms. Eg: GCCs in Bengaluru’s SEZs benefit from lower operational costs and faster approvals.
    • Ease of Doing Business Reforms: Simplified registration, relaxed FDI norms, and labor reforms attract foreign investors. Eg: A healthcare MNC establishes a GCC in Chennai due to smoother FDI entry and single-window clearances.
    • Skill Development Schemes: Programs like PMKVY and FutureSkills Prime build a skilled digital workforce for GCCs. Eg: GCCs in Noida hire AI and cybersecurity professionals trained through FutureSkills.

    What are the challenges? 

    • Talent saturation in Tier-1 cities: Intense competition for skilled tech professionals increases costs. Eg: In Bangalore, GCCs like Walmart Global Tech and Goldman Sachs compete for the same AI/ML talent pool, pushing up salary levels and attrition.
    • Infrastructure gaps in Tier-2 cities: Poor connectivity, weak urban infrastructure, and limited office space deter expansion. Eg: Despite interest in Nagpur for cost-effective operations, Deloitte limited its operations due to lack of reliable internet and skilled ecosystem.
    • High attrition rates: Rapid job-switching among mid-career professionals disrupts continuity. Eg: JPMorgan Chase’s GCC in Hyderabad faced over 22% attrition in 2023, especially among cybersecurity analysts.
    • Regulatory & compliance hurdles: Navigating data protection and labor laws adds to legal burden. Eg: Meta’s GCC in Gurugram had to rework its data storage policies post the DPDP Act, 2023, causing operational delays.
    • Limited R&D ownership: Indian GCCs often do not drive core product innovation. Eg: While Apple’s Bengaluru GCC handles app testing, core iOS design decisions remain with teams in California.

    Way forward: 

    • Promote Tier-2 city readiness: Improve digital infrastructure, urban planning, and talent development in emerging tech hubs like Coimbatore, Indore, and Kochi through targeted government-industry partnerships.
    • Encourage innovation and R&D ownership: Provide tax incentives, faster IP approvals, and create collaborative platforms with academia to help GCCs move beyond support roles to core product development.

    Mains PYQ:

    [UPSC 2024] The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.’ Explain this statement with examples.

    Linkage: The UK wants better access to India’s fast-growing digital economy and aims to strengthen its global services presence. India is becoming more important in global supply chains, especially in digital services and transformation, where Global Capability Centres (GCCs) play a key role.

  • [18th July 2025] The Hindu Op-ed: How is China leading the green energy sector?

    PYQ Relevance:

    [UPSC 2015] To what factors can be the recent dramatic fall in equipment cost and tariff of solar energy be attributed? What implications does the trend have for thermal power producers and related industry?

    Linkage: The articles talks about the how China has effectively led and transformed the global green energy market, particularly through cost reduction and market control. This question directly addresses the factors behind the fall in solar energy costs, which is directly related to article.

     

    Mentor’s Comment: In 2024, China installed more wind turbines and solar panels than the rest of the world combined, demonstrating its dominance in renewable energy manufacturing and supply chains. With a $940 billion investment in renewables in a single year, China has strategically leveraged state-owned enterprises (SOEs), policy backing, and supply chain control to become a clean-energy superpower.

    Today’s editorial analyses China’s dominance in Green Energy. This topic is important for GS Paper II (International Relations) and  GS Paper III (Energy Sector) in the UPSC mains exam.

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    Let’s learn!

    Why in the News?

    Recently, China has gained attention for investing a huge amount of money and taking the lead in the global green energy sector.

    Why is China a global leader in renewable energy?

    • Installed Capacity: China has the largest installed base of solar and wind energy in the world. Eg: By 2024, China added 300 GW of solar power, more than the rest of the world combined.
    • Supply Chain Control: China dominates the entire renewable energy supply chain, from raw materials to finished products. Eg: It produces over 80% of global solar panels and a major share of battery components like lithium and cobalt.
    • Massive Green Investments: China leads in clean energy investments, supported by government incentives and green bonds. Eg: In 2024, China invested $940 billion in clean energy, nearly triple that of the U.S.
    • State-Led Policies: The government uses State-Owned Enterprises (SOEs) and policy mandates to drive green growth. Eg: SOEs like Huaneng and State Grid built large-scale wind and solar farms across the country.
    • Export of Green Technology: Through the Belt and Road Initiative, China exports renewable energy infrastructure globally. Eg: Chinese firms are setting up solar projects in Africa and wind parks in Latin America.

    How did domestic issues drive China’s green strategy?

    • Severe Air Pollution: China faced toxic air quality, especially in industrial cities like Beijing, causing public health crises and unrest. Eg: The 2013 “Airpocalypse” led to mass protests, pushing the government to launch the Air Pollution Action Plan.
    • Energy Insecurity: Heavy dependence on coal and imported oil created vulnerability in energy supply and pricing. Eg: China increased solar and wind deployment to reduce reliance on fossil fuel imports and enhance energy self-sufficiency.
    • Economic Rebalancing Needs: China needed to shift from heavy industry to innovation-driven growth and green jobs. Eg: The government promoted green industries under the 13th and 14th Five-Year Plans to support sustainable development and tech leadership.

    What role do SOEs play in China’s energy transition?

    • Leading Renewable Deployment: State-Owned Enterprises (SOEs) are the primary drivers of solar, wind, and hydro projects, benefiting from state financing and land access. Eg: China Three Gorges Corporation built massive hydropower plants, including the Three Gorges Dam, aiding low-carbon electricity supply.
    • R&D and Technology Innovation: SOEs invest in clean energy R&D, fostering breakthroughs in battery storage, grid tech, and EVs. Eg: State Grid Corporation of China has led innovations in ultra-high-voltage transmission to integrate renewables across vast regions.
    • Policy Implementation and Scaling: SOEs act as instruments of the central government’s green policy, enabling fast scaling of infrastructure and meeting national climate goals. Eg: China Energy Investment Corporation rapidly expanded wind farms under the 14th Five-Year Plan.

    What can India learn from China?

    • Scale and Speed of Deployment: India can emulate China’s rapid infrastructure development in renewables by simplifying land acquisition and faster clearances.Eg: China added over 230 GW of renewable capacity in 2023, nearly 3 times India’s total renewable addition.
    • Strong Role of Public Sector: India should empower its public sector undertakings (PSUs) to take a leadership role in clean energy, similar to China’s state-owned enterprises (SOEs). Eg: China’s SOEs like State Power Investment Corporation lead massive solar and wind projects, while India can enhance NTPC and SECI’s role.
    • Domestic Manufacturing Push: China’s dominance is rooted in its robust clean tech manufacturing ecosystem. India should focus on R&D, incentives, and supply chains.

    What are the steps taken by the Indian government? 

    • National Solar Mission: Launched under the National Action Plan on Climate Change (NAPCC), this mission promotes solar power generation with a target of 280 GW by 2030. Eg: India has already crossed 81 GW of solar capacity as of 2024.
    • Green Hydrogen Mission: The government launched the National Green Hydrogen Mission to make India a global hub for green hydrogen production and export. Eg: Target of 5 MMT green hydrogen production annually by 2030.
    • PLI Scheme for Renewable Manufacturing: To reduce import dependence, the government introduced Production Linked Incentive (PLI) schemes for solar PV modules, batteries, and wind components. Eg: Over ₹24,000 crore allocated to boost domestic solar manufacturing.

    What are the challenges in India? 

    • Intermittent Energy Supply: Renewable energy like solar and wind is non-continuous, making it hard to meet demand consistently. Eg: In 2022–23, India’s solar power capacity was ~70 GW, but actual generation was only ~110 billion units, implying an average capacity utilization of ~18%.
    • Inadequate Energy Storage: India lacks robust battery storage infrastructure to balance supply-demand fluctuations. Eg: As of 2023, India had only ~4.6 GW of battery storage, while the estimated need by 2030 is over 40 GW(CEA).
    • Low Private Investment in Renewables: High risks and policy uncertainty reduce private sector participation. Eg: In FY 2022–23, investment in India’s renewable sector fell by 25%, from $14.5 billion in 2021 to $10.9 billion (IEEFA).

    Way forward: 

    • Strengthen Public-Private Partnerships (PPPs): Encourage collaboration between government, industry, and startups to accelerate clean energy innovation and deployment.
    • Invest in Skill Development and R&D: Promote training in green technologies and boost research in storage, hydrogen, and grid integration to build long-term capacity.

  • Russian Oil: India calls out ‘double standards’ 

    Why in the News?

    India has cautioned against “double standards” in response to a U.S. Bill, the Russian Sanctions Act of 2025, which proposes 500% duties on countries, including India, that buy Russian oil.

    Why has India opposed the proposed U.S.-Russia Sanctions Act, 2025?

    • Energy Security: India opposes the Act as it threatens its access to affordable energy from Russia, which is crucial for domestic needs. India imports a significant portion of its crude oil from Russia at discounted rates, helping stabilize fuel prices.
    • Strategic Autonomy: India defends its foreign policy independence and rejects external pressure on sovereign decisions.
    • Selective Sanctions: India criticizes the Act for reflecting geopolitical double standards, where some nations are penalized while others are exempt. Eg: While India faces scrutiny, European countries continue importing Russian gas without facing similar sanctions.

    What are the implications of the U.S. Act on India’s energy security and oil imports?

    • Disruption of Oil Supplies: The Act may lead to restrictions on Indian companies dealing with Russian energy firms, affecting oil flow. Eg: Indian refiners like Indian Oil Corporation may face hurdles in continuing long-term contracts with Rosneft.
    • Rising Energy Costs: Reduced access to discounted Russian oil can increase India’s energy import bills and domestic fuel prices. Eg: Without Russian discounts, India may rely more on Middle Eastern oil, which is often costlier.
    • Supply Chain Uncertainty: The Act creates geopolitical instability, making energy supply chains more volatile for India. Eg: Any secondary sanctions could deter shipping firms or insurers from facilitating India-Russia oil trade.

    How has India diversified its crude oil sources in response to geopolitical pressures?

    • Increased Imports from the U.S. and Latin America: India has strengthened ties with non-traditional suppliers to reduce overdependence on West Asia or Russia. Eg: Crude oil imports from the U.S. rose from 0.9 million tonnes (2017) to over 10 million tonnes (2023).
    • Use of Spot Markets and Diversified Contracts: India leverages spot purchases and signs long-term deals with diverse countries to ensure supply security. Eg: Indian Oil and BPCL have signed deals with Brazil’s Petrobras and Mexico to broaden sourcing.
    • Investments in Overseas Oil Assets: India is acquiring stakes in oil fields abroad to ensure equity oil and reduce market vulnerability. Eg: ONGC Videsh holds stakes in projects in Sudan, Mozambique, and Venezuela, ensuring strategic access.

    Why has India not resumed oil imports from Iran despite Tehran’s requests?

    • U.S. Sanctions on Iran: India halted Iranian oil imports after the U.S. withdrew from the JCPOA in 2018 and reimposed sanctions. Eg: In 2017-18, Iran was India’s third-largest oil supplier, but imports dropped to zero by mid-2019 due to U.S. pressure.
    • Risk of Secondary Sanctions: Engaging with Iran could expose Indian companies to secondary sanctions, disrupting financial transactions and insurance cover. Eg: Indian refiners like IOC and MRPL stopped imports fearing blocked dollar transactions and shipping challenges.
    • Awaiting Nuclear Deal Revival: India prefers to wait for revival of the Iran nuclear deal to restore oil trade under an international framework. Eg: Talks on JCPOA revival have stalled, making Indian policymakers cautious despite Iran’s open invitation.

    How are deportations of Indian nationals affecting India-U.S. diplomatic relations?

    • Strain on Bilateral Relations: Frequent deportations of Indian nationals without adequate communication cause diplomatic tension. Eg: In 2023, over 2,500 Indians were deported from the U.S., prompting MEA to seek clarification over due procedures.
    • Concerns over Human Rights: Reports of poor detention conditions and lack of consular access raise human rights concerns. Eg: Indian consulates in the U.S. flagged cases where detainees were held in unsanitary facilities, leading to formal protests.
    • Impact on Consular Cooperation: Large-scale deportations increase the burden on India’s consular services, affecting coordination and trust. Eg: The sudden deportation of 60 Indians in early 2024 led to delays in documentation and reintegration, requiring urgent diplomatic intervention.

    Way forward: 

    • Strengthen Consular Coordination: Enhance real-time communication between Indian missions and U.S. authorities to ensure due process and humane treatment of deportees.
    • Negotiate a Bilateral Framework: Establish a formal agreement on deportation procedures, ensuring transparency, timely consular access, and respect for individual rights.

    Mains PYQ:

    [UPSC 2018] In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to this situation?

    Linkage: The article highlights that the U.S. is considering imposing a 500% ad valorem duty on countries, including India, that purchase Russian oil, uranium, natural gas, or petroleum products through the proposed Russian Sanctions Act, 2025. This question is highly relevant as it directly parallels the geopolitical dynamic and dilemma faced by India regarding its energy imports amidst external pressure and sanctions, which is the core theme of the article.

     

  • The U.S. established and extinguished multilateralism 

    Why in the News?

    The 2025 BRICS Summit highlighted a significant shift in the global order, with the United States under Donald Trump bypassing multilateral institutions like the UN, promoting bilateralism, and weakening the Global South’s collective voice.

    What does the decline of multilateralism mean for India?

    • Reduced Collective Bargaining Power: With institutions like the United Nations (UN) being marginalised, India can no longer rely on multilateral forums to advocate for Global South interests. Eg: The BRICS 2025 Declaration failed to address the erosion of multilateralism or emphasize South-South cooperation.
    • Shift Towards Bilateralism and Strategic Autonomy: India must engage through commerce-driven bilateral deals and assert strategic autonomy between global powers. Eg: India’s loss in the UNESCO Vice-Chair election to Pakistan underlines the need for stronger bilateral influence and independent foreign policy.
    • Focus on Self-Reliance and Regional Partnerships: India should now concentrate on its own economic growth and build strong ties with nearby countries to reduce dependence on global powers. Eg: India linking trade deals with the U.S. to agreements with ASEAN nations shows a shift toward regional cooperation.

    Why is South-South cooperation crucial for India now?

    • Enhances Development Partnerships: South-South cooperation allows India to share low-cost technologies, development models, and capacity-building expertise with other developing countries. Eg: Through the Indian Technical and Economic Cooperation (ITEC) programme, India trains professionals from over 160 countries in fields like IT, agriculture, and governance.
    • Secures Access to Critical Resources: Collaboration with Global South nations helps India access vital natural resources and raw materials essential for its manufacturing and energy needs. Eg: India’s investment in lithium and cobalt mines in Africa supports its EV and battery manufacturing push under the Make in India initiative.
    • Builds Resilience Against Western Dependency: Strengthening ties within the Global South reduces overreliance on Western economies and institutions, especially in times of geopolitical uncertainty or trade sanctions. Eg: The India-Brazil-South Africa (IBSA) Fund supports poverty alleviation and post-conflict reconstruction, demonstrating a collective southern-led approach.

    How can India use its tech and industrial strengths globally?

    • Exporting Digital Public Infrastructure (DPI): India can leverage its success in building scalable digital platforms to assist developing countries in digital governance and financial inclusion. Eg: India’s Modular Open-Source Identity Platform (MOSIP), modeled on Aadhaar, has been adopted by Philippines, Morocco, and Sri Lanka to develop their own digital ID systems.
    • Promoting Green Industrial Innovation: India’s industrial base is increasingly oriented towards clean energy and sustainable manufacturing, which can be exported as part of global decarbonisation efforts. Eg: Indian companies like ReNew Power and Tata Power Solar are investing in solar and wind energy projects in Africa and Southeast Asia.
    • Becoming a Global Hub for Frugal Innovation: India’s expertise in low-cost, high-impact technology (also known as frugal innovation) can benefit developing nations with limited resources. Eg: The Jaipur Foot, a low-cost prosthetic limb developed in India, is being distributed in countries like Rwanda and Honduras through international collaborations.

    How can the 2026 BRICS Summit boost India’s leadership?

    • Revitalising Global South Unity: India can use the Summit to reposition BRICS as a platform for South-South cooperation, shifting focus from collective bargaining in forums like G-77 to mutual prosperity and strategic autonomy among emerging economies.
    • Showcasing Economic and Technological Strength: By highlighting its achievements in infrastructure, green energy, digital economy, and innovation (e.g. GenAI patents), India can project itself as a model for inclusive and sustainable growth, inspiring other developing nations.
    • Shaping a Post-Multilateral Global Order: With declining trust in traditional multilateral institutions, India can steer BRICS toward new frameworks of trade, finance, and diplomacy, boosting its global influence and cementing leadership in a multipolar world.

    What strategic shifts should guide India’s foreign policy? (Way forward)

    • Reinforcing Strategic Autonomy: India must maintain a neutral stance amidst intensifying U.S.-China rivalry by prioritising core national interests over bloc politics. This includes independent voting in global forums and diversifying strategic partnerships beyond traditional allies.
    • Pivot to the Global South: India should lead a rejuvenated South-South cooperation framework by promoting trade, technology, and development cooperation with developing countries, positioning itself as a voice and leader of emerging economies.
    • Geo-Economic Realignment: Foreign policy should focus on economic diplomacy securing supply chains, signing bilateral trade pacts, and enhancing infrastructure and digital connectivity with the Indo-Pacific and ASEAN to counterbalance Western economic dependence.

    Mains PYQ:

    [UPSC 2024] The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.’ Explain this statement with examples.

    Linkage: The article talks about the U.S. is “engaging countries with strategic commerce-related bilateral deals that fragment the global order” and that its national interest now includes “containment of China’s influence”. This question directly reflects the shift in U.S. (part of “The West”) foreign policy as described in the article.

  • India’s strategic focus on West Africa

    Why in the News?

    Despite China’s increasing involvement in financing and infrastructure development, India continues to hold a significant position as one of Nigeria’s key partners in West Africa.

    What are the strategic objectives of India in West Africa?

    • Strengthening Bilateral Relations: India aims to enhance its strategic partnership with Nigeria, which is pivotal as Nigeria is both the largest economy and democracy in Africa. This partnership is expected to extend beyond Nigeria, influencing broader regional dynamics in West Africa.
    • Focus on Security Cooperation: Given the challenges of terrorism, piracy, and drug trafficking in Nigeria, India seeks to bolster security cooperation. This includes defence collaboration and joint efforts in counterterrorism operations against groups like Boko Haram.
    • Development Partnerships: India positions itself as a development partner by providing concessional loans and capacity-building programs, demonstrating a commitment to supporting Nigeria’s socio-economic growth.
    • Promotion of Global South Aspirations: Both India and Nigeria share common goals as leaders of the Global South, aiming to amplify their voices in international forums like the UN Security Council.

    How does India plan to enhance its economic ties with West African countries?

    • Diversifying Trade Relations: India plans to revitalize trade with Nigeria, which has seen a decline recently. Efforts include negotiating trade agreements such as the Economic Cooperation Agreement (ECA) and the Bilateral Investment Treaty (BIT) to facilitate investment and trade.
    • Sectoral Collaboration: The focus areas for economic collaboration include defense, energy, technology, health, and education. India’s PM discussions with the President of Nigeria emphasized leveraging India’s expertise in these sectors to foster mutual growth.
    • Infrastructure Development: India aims to support infrastructure development through concessional loans and technical assistance, building on existing projects that have benefited from Indian investment.
    • Cultural and People-to-People Exchanges: Enhancing cultural ties and promoting exchanges between citizens are also part of India’s strategy to strengthen bilateral relations, fostering goodwill and mutual understanding.

    What challenges does India face in its engagement with West Africa?

    • Geopolitical Competition: India’s engagement is challenged by China’s significant presence in Nigeria, where Chinese companies dominate various sectors including infrastructure and telecommunications. This competition complicates India’s efforts to establish itself as a key partner.
    • Economic Fluctuations: The decline in trade between India and Nigeria from $14.95 billion in 2021-22 to $7.89 billion in 2023-24 highlights vulnerabilities due to shifting global oil markets and increasing imports from other countries like Russia.
    • Political Instability: The political landscape in Nigeria can be unpredictable, posing risks for long-term investments and cooperation initiatives that require stability for successful implementation.
    • Capacity Constraints: While India offers developmental assistance, the effectiveness of these initiatives can be hindered by local capacity constraints in Nigeria, necessitating a tailored approach that considers local needs and capabilities.

    Way forward: 

    • Deepen Strategic Collaboration: Strengthen defence and security partnerships, diversify trade, and enhance collaboration in sectors like energy, technology, and health to counter China’s growing influence and foster mutual growth.
    • Focus on Regional Capacity Building: Expand developmental assistance with tailored initiatives addressing local needs, while supporting Nigeria’s stability through diplomatic engagement and joint Global South aspirations in international forums.

    Mains question for practice:

    Q Discuss the strategic objectives of India in West Africa, with a particular focus on its engagement with Nigeria. Highlight the challenges India faces in strengthening its ties in the region and suggest measures to address these challenges. (250 words) 15M

    Mains PYQ:

    Q Increasing interest of India in Africa has its pros and cons. Critically Examine. (UPSC IAS/2015)

  • India, Africa must work side by side, says PM in Namibia

    Why in the News?

    Recently the Prime Minister highlighted that India supported Namibia’s freedom not just through words, but by taking real action.

    How has India’s support for Namibia’s independence shaped their present bilateral relationship?

    • Early International Advocacy (1946): India was one of the first countries to raise the issue of Namibia’s independence at the United Nations in 1946. This early support positioned India as a committed ally in Namibia’s anti-colonial struggle.
    • Support to SWAPO Liberation Movement: India supported the South West Africa People’s Organisation (SWAPO) by providing material and diplomatic backing. Eg: India hosted SWAPO’s first diplomatic mission, helping it gain global recognition and legitimacy.
    • Solidarity through Non-Aligned Movement (NAM): India used platforms like the Non-Aligned Movement to advocate for Namibia’s decolonisation and anti-apartheid goals.  
    • Diplomatic Engagement Post-Independence (1986 onwards): India established formal diplomatic ties with Namibia soon after its independence. Eg: Recently PM of India recalled Dr. Sam Nujoma (Namibia’s founding father) as a “great friend of India”, indicating deep post-independence relations.
    • Contemporary Strategic and Development Partnership: The historical goodwill has translated into strong current ties, such as MoUs on health, entrepreneurship, and digital payments (UPI). Eg: In 2024, Namibia signed agreements to adopt India’s UPI system and joined India-led initiatives like the Global Biofuel Alliance and CDRI.

    Why is India promoting UPI and digital infrastructure in Africa?

    • Strengthening Digital Public Goods Diplomacy: India aims to share its low-cost, inclusive digital platforms like UPI to empower developing nations. Eg: A technology licensing agreement was signed to enable the launch of UPI in an African country later this year.
    • Enhancing South-South Cooperation and Soft Power: Promoting digital tools fosters mutual growth, strengthens India-Africa ties, and showcases India’s leadership in the Global South. Eg: India emphasized the approach to “build together, not compete” with African nations through technology collaboration.
    • Creating New Economic and Strategic Opportunities: Digital infrastructure export opens markets for Indian fintech companies and strengthens strategic presence in Africa. Eg: Collaboration with a central bank in Africa boosts financial inclusion and deepens bilateral economic ties.

    How is India’s Africa policy distinct from that of other global powers?

     

    Dimension India’s Africa Policy Other Global Powers Eg
    Focus on Partnership, Not Extraction Emphasises co-development and local capacity building Often focus on resource extractionor project-linked conditionalities India–Ethiopia: Helped set up sugar factories and agricultural training centers.  China–DR Congo: Heavy investment in mining (cobalt and copper) with limited local value addition.
    Non-interference and Historic Ties Respects sovereignty; supported liberation movements historically Some powers have intervened for strategic interests India–Namibia: Supported SWAPO during its liberation struggle.

    France–Mali: Military interventions in Sahel region.
    Technology and Human Development Exports digital tools, education, and healthcare tech to promote self-reliance Focus often on physical infrastructure with tied loans or conditions India–Namibia: UPI digital payment rollout and MoUs in health.  China–Kenya: Built railways under debt-based model.

    What is the importance of Namibia joining India-led global initiatives?

    • Strengthening South-South Cooperation: Namibia’s participation enhances solidarity among developing nations and reflects mutual trust in India’s leadership on global platforms. Eg: By joining the Global Biofuel Alliance, Namibia aligns with India’s push for sustainable and clean energy transitions in the Global South.
    • Boosting Regional Resilience and Climate Preparedness: Joining initiatives like the Coalition for Disaster Resilient Infrastructure (CDRI) helps Namibia build climate-resilient infrastructure and better manage disaster risks.  

    Why does India emphasise cooperation over competition in the Global South?

    • Fostering Equal Partnerships for Sustainable Development: India builds development-focused partnerships without imposing conditions, supporting capacity building in fellow Global South nations. Eg: In 2024, India partnered with Tanzania to set up an IT Centre of Excellence and offer scholarships under the Indian Technical and Economic Cooperation (ITEC) programme, focusing on local skill development.
    • Promoting Inclusive Digital Public Infrastructure: India shares its digital platforms to empower nations with affordable, scalable technology solutions. Eg: India signed an MoU with Mauritius to extend Unified Payment Interface (UPI) services, enabling secure and inclusive digital transactions to support financial inclusion.

    Mains PYQ:

    [UPSC 2015] Increasing interest of India in Africa has its pros and cons. Critically examine.

    Linkage: This question provides a broad framework to discuss India’s engagement with Africa, allowing for an analysis of both the benefits of cooperation (as highlighted in the Namibia article) and any potential challenges or implications of India’s growing interest in the continent.

  • Quad Critical Minerals Initiative 

    Why in the News?

    The Quad has launched the “Quad Critical Minerals Initiative” to secure critical mineral supplies, addressing concerns over China’s price manipulation and coercive practices.

    What is the Quad Critical Minerals Initiative?

    • Launch: The Quad Critical Minerals Initiative was launched during the second Quad Foreign Ministers’ Meeting held in Washington, DC.
    • Participants: The meeting was attended by the foreign ministers of India, the United States, Australia, and Japan.
    • Aim: To strengthen cooperation among Quad nations on building secure and diversified critical mineral supply chains.
    • Strategic Objectives:
      • Reduced Dependency: It seeks to reduce reliance on any single country, particularly China, for the processing and refining of critical minerals.
      • Risk Mitigation: The Quad statement emphasized that overdependence exposes nations to economic coercion, price manipulation, and supply chain disruption.

    Need for such Initiative:

    • Chinese Supremacy: China dominates global mineral processing, controlling over 90% of rare earth refining, and 50–70% of lithium and cobalt refining.
    • Reserves Leadership: China holds the largest rare earth reserves at 44 million metric tons, far ahead of countries like India (6.9 MMT) and Australia (5.7 MMT).
    • Strategic Investments Abroad: China has acquired key mining assets in Africa, securing access to cobalt, lithium, and other critical minerals.
    • Supply Chain Leverage: With its monopolistic control, China can stall the global EV, battery, and renewable energy sectors through export restrictions.

    India’s Strategy on Critical Minerals:

    A. National Critical Minerals Mission (NCMM)

    • Launch and Funding: India launched the National Critical Minerals Mission in January 2025, backed by an allocation of ₹16,300 crore.
    • Core Objective: The mission aims to achieve self-sufficiency in critical mineral extraction and processing, thereby reducing import dependency.
    • Minerals Identified: The Indian government has identified 30 critical minerals including lithium, cobalt, graphite, tin, nickel, and copper as vital for economic and energy security.
    • Exploration Strategy: The NCMM promotes intensive exploration within Indian territory and offshore, and pushes for a fast-tracked approval mechanism for mining projects.
    • Energy Transition Goal: The mission supports India’s Net Zero by 2070 goal by ensuring timely access to raw materials for clean energy systems.

    B. International Cooperation – MSP and MSFN

    • MSP Membership: India joined the Minerals Security Partnership (MSP) in June 2023, a 14-member initiative led by the United States and supported by the European Union.
    • Investment Facilitation: The MSP seeks to catalyse public-private investments and build shared capabilities in mining, refining, and supply chain infrastructure.
    • Financial Network (MSFN): India is also part of the Minerals Security Finance Network (MSFN), which focuses on co-financing strategic critical mineral projects globally.
    • Sourcing Diversification: Through these platforms, India is expanding its cooperation with resource-rich countries like Mozambique, Madagascar, Brazil, and Tanzania.

    Significance for India:

    • Continued Import Dependence: Despite ongoing efforts, India remains heavily dependent on China, particularly for graphite and rare earth elements.
    • Long Project Timelines: A 2024 IEEFA report estimates that domestic mining operations may take over a decade to start production.
    • Rising Demand Pressure: India’s demand for critical minerals is expected to more than double by 2030, necessitating rapid action on exploration and supply diversification.
    • Need for Strategic Tie-ups: To secure future needs, India must accelerate global partnerships and develop domestic value chains from mining to processing.
    [UPSC 2025] Consider the following statements:

    I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 critical minerals that it has identified. III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals.

    Which of the statements given above are correct?

    (a) I and II only (b) II and III only (c) I and III only* (d) I, II and III

     

  • BRICS Rio Declaration, 2025

    Why in the News?

    Gathering in Rio de Janeiro on July 6–7, leaders of Brazil, Russia, India, China, and South Africa adopted the BRICS Rio Declaration 2025 — marking a decisive shift in the bloc’s evolution.

    Back2Basics: BRICS

    • BRICS represents a coalition of nations committed to fostering economic growth, development cooperation, and global governance reform.
    • The first summit in 2009 featured the founding countries of Brazil, Russia, India, and China, where they adopted the acronym BRIC and formed an informal diplomatic club.
    • BRICS focuses on collaboration across 3 key pillars:
      1. Political and Security Cooperation: Ensuring peace, global stability, and governance reform.
      2. Economic and Financial Cooperation: Promoting trade, investment, and economic resilience.
      3. Cultural and People-to-People Cooperation: Enhancing mutual understanding and societal linkages.
    • Present Members of BRICS
      • Original Members: Brazil, Russia, India, China, and South Africa.
      • Recent Additions: Indonesia, Egypt, Ethiopia, Iran, and the UAE.

    About the Rio Declaration (2025):

    • Overview: Adopted at the XVII BRICS Summit in Rio de Janeiro (July 6–7, 2025), the Rio Declaration reflects BRICS’s push for a more inclusive and multipolar global order.
    • Call for reform: It calls for reforms in global institutions like the UN Security Council, IMF, and World Bank to give a greater voice to the Global South.
    • Focus: It emphasized sovereign equality, sustainable development, digital cooperation, and solidarity among emerging economies.
    • Expansion: BRICS welcomed Thailand as a full member and acknowledged 10 new partner countries, including Belarus, Nigeria, Cuba, and Vietnam, signalling broader representation.

    Key Highlights of the Declaration:

    • Global Reform Push: Demands reform of UN, IMF, Bretton Woods institutions for fairer representation of emerging economies.
    • Climate Finance: Endorses Brazil’s Tropical Forests Forever Facility and calls on developed nations to fund just transitions.
    • AI Governance: Supports a global framework aligned with national rules and UN Charter principles.
    • Health Equity: Launched BRICS Partnership on Socially Determined Diseases to address poverty-linked health disparities.
    • Economic Sovereignty: Push for local currency trade, non-dollar payment systems, and strengthening the New Development Bank.
    • Security Commitment: Zero tolerance for terrorism, including cross-border support and financing.
    • Digital Inclusion: Focus on women’s digital access, AI cooperation, and green technologies.
    • India’s Role: Led initiatives on science collaboration, digital public goods, and proposed reforms for 2026 BRICS leadership.
    [UPSC 2015] The ‘Fortaleza Declaration’, recently in the news, is related to the affairs of:

    Options: (a) ASEAN (b) BRICS* (c) OECD (d) WTO