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  • Soon, red hexagonal label to warn of high fat, sugar, salt in snacks

    Why in the News

    The Food Safety and Standards Authority of India (FSSAI) has told the Supreme Court that it proposes a red hexagonal front of pack label to warn consumers when a packaged food is high in salt, added sugar or added fat. The proposal answers the Court, which is hearing a plea by 3S and Our Health Society, a Kerala based non-profit organisation. No notification has been issued. What is contested is whether the phasing and the trigger conditions attached to the label leave most unhealthy products outside it.

    What would the proposed label carry?

    1. Shape and placement: The label is a red hexagon carried on the front of the packet, so the warning is visible before the pack is turned over.
    2. Language and size: The warning will be in English, in a font one point larger than the font used in the nutritional information table at the back of the pack.
    3. The declarations: The label will state “high fat”, “high sugar”, “high salt” or “highly sweetened beverage”, as applicable, to let consumers identify products high in the specified nutrients.
    4. The thresholds: What counts as high is set against the thresholds in the Dietary Guidelines for Indians, 2024, issued by the Indian Council of Medical Research and the National Institute of Nutrition (ICMR-NIN).

    How will the rollout be phased?

    1. The first phase: Only products high in at least two of the ingredients of concern will carry the warning label.
    2. The second phase: The warning will extend to products high in even one ingredient.
    3. The stated reason: FSSAI said the two phase plan is meant to secure consumer acceptability and to give industry adequate time for reformulation.

    Which products are exempt?

    1. Single ingredient foods: Food products with a single ingredient fall outside the labelling requirement.
    2. Foods inherently rich in the nutrients: Ghee, edible oil, salt, sugar, jaggery and honey are exempt, subject to the other requirements under the food safety and labelling regulations.

    Why do nutrition experts call the proposal ineffective?

    1. The two nutrient trigger: The Convener of Nutrition Advocacy in Public Interest (NAPi) India said many unhealthy products will not need the warning label in the first phase, since they are high in just one nutrient.
    2. No date for the second phase: FSSAI has given no timeline for the phase in which every product high in fat, sugar or salt must carry the warning.
    3. The word “added”: The warning is triggered only by added sugar or added fat, and the added quantity is difficult to estimate.
    4. Natural sugars escape the trigger: High levels of naturally occurring sugars also harm health, and the proposed trigger does not capture them.
    5. Presentation: The proposed font size is too small, and the message should also be carried in Hindi.

    Conclusion

    FSSAI has accepted warning labelling in principle, and the conditions attached to it decide how many products will actually carry a warning. The petitioner has circulated a revised draft, invited public comments on it, and will file a rejoinder once those comments are received. The next milestone is the notification itself, which will show whether the second phase carries a date.

    Back2Basics

    1. Statutory basis: FSSAI was established under the Food Safety and Standards Act, 2006.
    2. Parent ministry: It functions under the Ministry of Health and Family Welfare.
    3. Mandate: It lays down science based standards for articles of food and regulates their manufacture, storage, distribution, sale and import.
    4. Labelling powers: Packaging and labelling requirements for packaged food, including what must be declared on the pack, are framed under regulations it issues.

    Matching Previous Year Question

    “[2016] With reference to pre-packaged items in India, it is mandatory to the manufacturer to put which of the following information on the main label, as per the Food Safety and Standards (Packaging and Labelling) Regulations, 2011? 1. List of ingredients including additives 2. Nutrition information 3. Recommendation, if any, made by the medical profession about the possibility of any allergic reactions 4. Vegetarian/non-vegetarian Select the correct answer using the code given below. (a) 1, 2 and 3 (b) 2, 3 and 4 (c) 1, 2 and 4 (d) 1 and 4 only ANSWER: (c)”

  • ‘CAS is a move in the right direction, but the timing may not be right’

    Why in the News

    The Securities and Exchange Board of India (SEBI) has replaced the method used to fix closing prices on the stock exchanges with a Closing Auction Session (CAS), implemented at the start of this month. The earlier method took the volume weighted average price (VWAP), the average price of the last 30 minutes of trading, which a large order placed in the closing moments could tilt. The change follows the Jane Street episode, after which the regulator concluded that the earlier method could be moved in a participant’s favour. Traders hold that the direction of the change is right and the timing is not, since Indian markets carry far higher retail participation than the institution driven markets the mechanism was borrowed from.

    How does the Closing Auction Session work?

    1. Normal trading closes at 3.15 pm: Trading runs as usual until 3.15 pm, and all pending limit and market orders are carried forward into the CAS. Stop loss orders are removed from the system.
    2. Reference prices are computed through the session: Exchanges calculate reference prices from 3.15 pm to 3.30 pm.
    3. Order types narrow as the session runs: Market or limit orders may be placed between 3.20 pm and 3.25 pm (a market order executes at the prevailing price, a limit order executes only at the price stated by the trader). From 3.25 pm only limit orders are accepted.
    4. The close is randomised: The session ends at a random time between 3.27 pm and 3.30 pm. Derivatives continue to trade until 3.40 pm.

    Why did SEBI move away from the volume weighted average price method?

    1. The weakness in an average: A large quantity traded in the closing moments moves the average, so the preceding 30 minutes count for little in the final price.
    2. The trigger for the review: The regulator concluded after the Jane Street episode that the closing price under the earlier method could be tilted.
    3. Global practice: Auction based closes are already used in developed markets, including the United States and the United Kingdom.
    4. Institutional demand: Financial institutions and global players pitched the auction as the better mechanism for determining closing prices.

    What does the auction change for participants?

    1. Participation replaces dependence on a single print: The closing price is formed from orders placed in the auction rather than from a computed average, which makes price discovery more broad based.
    2. Orders are no longer tied to the closing price: A participant can place an order at a higher or lower price according to their own requirement, instead of matching at whatever the closing price turns out to be.

    Why are volumes in the session thin?

    1. Participants are still adjusting: The session is new, and a change in market structure is first thought over and played out with caution before it is used.
    2. The matching price is not visible: Price matching runs for five to seven minutes behind the scenes, so a participant does not know the price at which an order will match.
    3. Part execution is the likely outcome: An order placed two per cent away from the market carries no certainty that the full quantity will be executed, and under executions are the more likely result.
    4. The largest volume generators are absent: Arbitrage firms and proprietary trading firms are sitting out, since the session gives them neither the time nor the visibility to hedge in the futures and options (F&O) segment. They do not run unhedged positions.

    Why is the timing of the change contested?

    1. Market maturity: The Indian market is not yet mature enough for a mechanism designed for markets where participants have full information on when and how to participate.
    2. Retail share is higher than in comparable markets: India has much higher retail participation than other major markets, which are institution driven, and retail awareness of the new session is still at an early stage.
    3. A longer parallel run was possible: The session could have been run in simulation or in parallel with the earlier system for longer, giving participants time to get used to it before implementation.
    4. Small orders may not find a match: Most retail investors trade in small ticket sizes, so a large institutional order placed in the session is unlikely to be matched.
    5. Leverage pulls retail elsewhere: Retail traders prefer the derivatives segment over the auction because of the higher leverage available there.

    Conclusion

    The Closing Auction Session has been in force since the start of the month and is still evolving, which makes a comparison with the earlier method premature. Volumes remain low and the participants who generate most of them are staying out until they can hedge around the randomised close. The next test is whether participation broadens as the mechanism settles and awareness spreads at the retail level.

    Matching Previous Year Question

    “[2023] Consider the following markets : 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in capital markets? (a) Only one (b) Only two (c) Only three (d) All four ANSWER: (b)”

  • Chandra’s settlement comes as IBC turns 10, with bank haircuts at five-year high

    Why in the News

    The National Company Law Tribunal (NCLT) has approved a personal insolvency repayment plan under which Zee Group founder Subhash Chandra will pay Rs 6.5 crore against admitted claims of Rs 22,006.57 crore. That is a 99.97 per cent haircut, one of the highest in the history of the insolvency regime. It comes as the Insolvency and Bankruptcy Code, 2016 (IBC) completes ten years in force. Banks are considering an appeal before the National Company Law Appellate Tribunal (NCLAT). The dispute is whether the Code should be judged by what creditors recover or by whether a stressed asset is resolved at all.

    What is a “haircut” under the Insolvency and Bankruptcy Code, 2016?

    1. The term is not defined in the Code: The IBC nowhere defines a haircut. Banking practice uses the word for the percentage reduction in the value of an asset pledged as collateral, applied to protect the lender against loss.
    2. What the Code was enacted to do: The IBC was enacted in 2016 to rescue companies under financial stress or heavy debt through resolution and repayment to creditors.
    3. A creditor majority binds the minority: Once the required majority of creditors approves a repayment plan and the tribunal sanctions it, a dissenting creditor cannot walk away and demand a separate settlement.

    Why has the Chandra order revived the haircut debate?

    1. The size of the write down: The order of 25 August approved payment of Rs 6.5 crore to creditors, plus Rs 25 lakh towards the costs of the process.
    2. The liability arises from personal guarantees: Much of the admitted claim relates to personal guarantees and indemnities given for borrowings by companies associated with the Essel Group.
    3. The route is personal insolvency: The proceedings ran against the individual promoter as a personal guarantor rather than against a corporate debtor.
    4. Lenders are weighing a challenge: Banks are considering an appeal against the approval before the NCLAT.

    What does the recovery record under the Code look like?

    1. Cases resolved and value realised: Between 2021-22 and 2025-26, 1,077 cases were resolved under the IBC, with a realisation of Rs 2.47 lakh crore for creditors.
    2. The five year average: Average recovery against admitted claims across those five years was close to 29 per cent.
    3. The year wise trend: Recovery was 24 per cent in 2021-22, 39 per cent in 2022-23, 28 per cent in 2023-24 and 37 per cent in 2024-25, before falling to 20 per cent in 2025-26, the lowest in five years.
    4. What the figure means for a lender: A bank may hold claims running into thousands of crore rupees and receive only a fraction of what it is owed.

    Why do the banks contest the vote that approved the plan?

    1. The margin of approval: Twenty three creditors participated in the voting, and the plan was approved with 80.814 per cent of the votes cast in its favour.
    2. Every bank voted against: The banks that opposed the plan held a combined vote share of only 19.186 per cent.
    3. The related party allegation: Banks say at least five entities holding 61.78 per cent of the votes cast, all of which backed the plan, are linked to the debtor as associates or related parties.
    4. The exclusion sought: A trustee company argued that the votes of an investment company and its two subsidiaries should not have been counted. A resolution professional is the person appointed to manage the affairs of an entity under insolvency and to facilitate its resolution.
    5. The subsidiary argument: The debtor’s counsel argued that a parent company that is not itself an associate of the debtor cannot pass that classification to its downstream subsidiaries.
    6. The debtor’s response: Chandra’s office rejected the allegation as inaccurate. It said the entities referenced belonged to a relative whose business interests were separated in 2008-09, and that they do not qualify as associate entities under the Code.

    Is the Code meant to maximise recovery, or to resolve?

    1. The government’s position: The Ministry of Corporate Affairs holds that the primary objective of the Code is resolution and not recovery.
    2. Why claims are treated as the wrong benchmark: The Ministry told the standing committee on finance in December 2025 that the assets available on the ground are the better measure, since the market values what a company brings to the table and not what it owes.
    3. What an admitted claim contains: A claim often includes a non performing asset (NPA) that may be fully written off, the interest on that asset, and both a loan and the guarantee given against it.
    4. The value that is not counted: Realisation figures exclude the value that may come from equity holdings after a resolution.
    5. The indirect gain claimed: The Code is credited with creating credit discipline, which has contributed to reducing the gross non performing assets of banks.
    6. The banks’ counter: Banks argue that the problem lies in the valuation of stressed companies, that all assets should be included and properly valued, and that the process is opaque.
    7. The valuation mechanism in dispute: At least two valuers are appointed to give a fair value and a liquidation value, based on records and physical examination of the assets. The Chairman of the State Bank of India told the standing committee that valuation should reflect enterprise value instead of liquidation value.

    Challenges to the Insolvency and Bankruptcy Code, 2016

    1. Delay erodes the value a resolution can fetch: A stressed company loses value for every year it stays unresolved, so the price a resolution applicant will pay falls with time. Eg. Videocon Industries was resolved in 2021 at about five per cent of admitted claims, and the NCLAT stayed the approved plan on that ground. Fix. Tie admission to a fixed outer date from the default so the asset reaches the market before it is stripped of value.
    2. Liquidation remains a more common outcome than rescue: A large share of admitted cases ends in liquidation rather than in an approved resolution plan, which inverts the Code’s stated purpose. Eg. The Insolvency and Bankruptcy Board of India’s quarterly newsletters have consistently reported more closures by liquidation than by resolution. Fix. Extend the pre-packaged insolvency route, available to micro, small and medium enterprises since 2021, to larger firms so a rescue is negotiated before value is lost.
    3. The individual insolvency framework is only partly in force: Part III of the Code was notified in December 2019 for personal guarantors to corporate debtors alone, and the remaining provisions for individuals and partnership firms have not been brought into force. Eg. A defaulting individual who is not a personal guarantor has no route under the Code at all. Fix. Notify the remaining Part III provisions along with a designated adjudicating forum for individual cases.

    Conclusion

    The appeal now being prepared will decide whether the disputed votes were correctly counted, and that is the next milestone in this case. Valuation is the point on which the recovery and resolution positions turn, and shifting stressed asset valuation to enterprise value is still only a suggestion before the committee.

    Matching Previous Year Question

    “[2017] Which of the following statements best describes the- term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news? (a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government. (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties. (c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings. (d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government. ANSWER: (b)”

  • Govt. to replace 2 lakh old trucks/buses in Delhi-NCR in one year (PARIVARTAN scheme)

    Govt. to replace 2 lakh old trucks/buses in Delhi-NCR in one year (PARIVARTAN scheme)

    Why in the News

    The Union government aims to replace more than two lakh trucks and buses in Delhi and the National Capital Region with BS VI or electric vehicles within a year under the PARIVARTAN scheme, the Road Secretary has said. This brings forward a two year implementation timeline the Union Cabinet had earlier approved for the scheme. Trucks and buses make up only 3.1% of the region’s total vehicle fleet but contribute 36% of vehicular PM2.5 emissions, so the scheme concentrates replacement incentives on a small segment of the fleet rather than vehicles as a whole.

    What is the PARIVARTAN scheme?

    1. A vehicle renewal and incentive scheme: PARIVARTAN (the Programme for Accelerated Renewal and Incentivization of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions) is a Union scheme to replace old trucks and buses in Delhi NCR with cleaner vehicles.
    2. Targets older commercial vehicles across four jurisdictions: It covers trucks and buses registered in Delhi and the NCR districts of Haryana, Rajasthan and Uttar Pradesh that conform to BS IV or older emission norms.
    3. Jointly funded and implemented: The scheme is funded through the National Capital Region Planning Board under the Ministry of Housing and Urban Affairs and implemented by the Ministry of Road Transport and Highways.

    What incentives does PARIVARTAN offer to push buyers toward cleaner vehicles?

    1. A large but shared financial outlay: The scheme carries a total financial outlay of Rs. 9,585 crore, of which Rs. 5,041 crore is central budgetary support.
    2. Lower cost of borrowing: Eligible buyers get a 5% interest subvention on vehicle loans for five years.
    3. Waived recurring and one time levies: Eligible buyers of new BS VI vehicles get a 100% road tax waiver for 10 years and exemption from registration fees.
    4. A manufacturer side discount: Eligible buyers also get at least an 8% discount on the ex showroom price from participating vehicle manufacturers.

    Challenges to the PARIVARTAN scheme

    1. Fleet turnover in one year is an aggressive compression: Compressing the replacement of over two lakh vehicles into one year against an originally planned two year timeline strains scrapping, registration and financing capacity built for a slower pace. Eg. India’s separate vehicle scrappage policy has itself faced slow uptake since 2021 because of limited authorised scrapping facility capacity in most States. Fix. Expand authorised vehicle scrapping facility capacity in Delhi NCR ahead of the compressed timeline, rather than relying on facilities sized for the original two year plan.
    2. Small operators may lack access to the incentives: Interest subvention and manufacturer discounts assume buyers can access formal vehicle financing, which many small truck and bus operators in the informal freight sector cannot. Eg. A large share of India’s freight trucking fleet is owned by operators with one to five vehicles, who typically borrow from informal lenders rather than banks. Fix. Route a dedicated financing window for small fleet owners through public sector banks or the National Capital Region Planning Board itself, with relaxed collateral norms.
    3. Cross state enforcement is harder than a single city ban: The scheme spans Delhi and NCR districts across three States, and inconsistent enforcement of the BS IV cutoff across State transport departments can let older vehicles keep operating in weaker enforcement pockets. Eg. Delhi’s earlier ban on end of life diesel vehicles pushed many such vehicles into neighbouring NCR districts rather than off the road entirely. Fix. Link registration renewal and permit issuance across all four jurisdictions to a shared, real time vehicle emission compliance database.

    Conclusion

    The PARIVARTAN scheme now targets replacing over two lakh Delhi NCR trucks and buses within one year instead of two, backed by a Rs. 9,585 crore incentive package. The scheme’s next milestone is the pace of actual vehicle replacement against this compressed one year timeline, particularly among small and informal fleet operators who face the greatest financing and enforcement gaps.

  • Behind Nepal floods, rising risk of glacier collapse (Explainer)

    Behind Nepal floods, rising risk of glacier collapse (Explainer)

    Why in the News

    Flash floods that swept through parts of Nepal and Tibet this week followed a glacial collapse in the Himalayas. The collapse sent a mass of ice and rock debris into the Lhende Khola and Bhote Koshi river system, and this debris reached inhabited valleys downstream. Glaciologists say such collapses are becoming more frequent because of faster warming in the Himalayas, and disaster planning for hydropower siting and early warning has not kept pace with this rising risk.

    What is a glacial collapse?

    1. Sudden mass failure of a glacier: A glacial collapse is the sudden detachment of a large mass of ice, rock and water from a glacier resting on a steep mountain slope.
    2. Triggered by geological and physical factors: Earthquakes, temperature changes and other physical changes unfolding within a glacier can trigger a collapse.

    How does a glacier’s own structure fail under stress?

    1. Formation builds a heavy, moving mass: Snow that survives several melting seasons compresses into firn (a granular midpoint stage between fresh snow and glacial ice) before recrystallising into the solid ice of a glacier.
    2. Gradient driven flow creates fracturing stress: Once a glacial mass is heavy enough it flows outward along the mountain gradient. This acceleration creates stress that exceeds the strength of the ice, and sustained movement eventually fractures it.
    3. Surface melting weakens the ice from within: Meltwater pools inside surface cracks over repeated freeze and thaw cycles. This repeated pressure eventually splits the ice all the way through.

    Why do wet base glaciers in the Himalayas pose a distinct collapse risk?

    1. Soft beds trap and channel meltwater: Where a glacier rests on soft mud or clay, trapped water moves through networks of cracks within the ice and travels toward the base.
    2. Subglacial tunnels concentrate large volumes of water: In wet base Himalayan glaciers, water collects at the base in large quantities and is occasionally connected by tunnels, so a collapse can release a concentrated volume of water at once.

    Why can a single glacial collapse trigger a second wave of flooding?

    1. Debris blocks the river before it breaks free: Collapsed ice and rock piles can block narrow river channels and form temporary natural dams downstream.
    2. A dam break repeats the flood: When such a temporary dam breaks under continuous pressure, it unleashes a second round of flooding, as happened in Nepal this week.

    Challenges to managing glacial collapse risk

    1. Rising baseline risk from faster warming: The incidence of glacier breakages in the Himalayas has increased because the region is warming faster than the global average. Eg. This week’s Nepal and Tibet collapse and debris flow into the Lhende Khola and Bhote Koshi system is one instance of this rising baseline risk. Fix. Expand year round remote seismic monitoring and high altitude early warning systems across the central Himalayan glacier belt, not only at individual high risk sites.
    2. Search and rescue capacity has not kept pace: More frequent and physically more demanding glacial collapse events place a growing burden on search and rescue missions in remote high altitude terrain. Eg. Reaching debris blocked valleys along the Bhote Koshi system after this week’s floods required search teams to operate in terrain cut off by the same collapse. Fix. Pre position high altitude search and rescue teams and equipment at seasonal staging points along known glacial risk corridors before the summer melt season.
    3. Critical infrastructure remains sited in high risk zones: Hydropower plants and other critical infrastructure continue to be built in areas exposed to glacial collapse and the flooding it can trigger. Eg. Downstream hydropower installations on Himalayan rivers were damaged in the 2021 Rishiganga Dhauliganga disaster in Uttarakhand, when an upstream ice and rock avalanche triggered a sudden flash flood. Fix. Make hazard zonation for glacial collapse and outburst flood risk a mandatory clearance requirement before critical infrastructure is sited in glacier fed river valleys.
    4. Upstream glacial instability is not systematically shared across borders: Himalayan river systems cross national boundaries, but instability observed on a glacier upstream is not routinely communicated to downstream countries before a disaster strikes. Eg. This week’s collapse originated in Tibet and Nepal before its effects reached downstream valleys, showing how upstream instability in one country can affect communities in another with little warning. Fix. Establish a standing India, Nepal and China data sharing mechanism for real time glacial and river monitoring in shared Himalayan basins.

    Conclusion

    Himalayan glacial collapses are becoming more frequent as regional warming outpaces the historical baseline, and this week’s Nepal and Tibet floods are a fresh instance of that pattern. The next step for disaster managers is to convert scattered seismic monitoring and hazard mapping efforts into a standing, cross border early warning system, before the next collapse rather than after it.

  • Need to break Manipur’s cycle of reprisal (Editorial)

    Need to break Manipur’s cycle of reprisal (Editorial)

    Why in the News

    More than three years after the Meitei-Kuki clashes began, Manipur now faces a deepening Kuki-Naga fault line. Four Naga civilians were killed this week in Kuki-dominated Kangpokpi district, an episode that follows the killing of Kuki-Thadou church pastors in May, retaliatory abductions on both sides, and the recovery a month later of the bodies of six Naga men.

    How has the conflict widened beyond the original Meitei-Kuki fault line?

    1. A second, distinct fault line has opened: What began as Meitei-Kuki violence in 2023 has produced a separate Kuki-Naga confrontation, evident in this week’s killing of four Naga civilians in Kangpokpi, a district that sits between Naga-dominated Senapati to the north and Meitei-dominated valley districts to the south.
    2. A traceable chain of retaliation: The killing of Kuki-Thadou pastors in May was followed by retaliatory abductions from both communities, and the subsequent recovery of six Naga men’s bodies a month later, establishing a pattern of reprisal rather than an isolated incident.
    3. Blockades have turned roads into contested territory: Meitei, Kuki and Naga groups have separately imposed blockades that disrupt supplies, raise the cost of food and fuel, and restrict access to healthcare, with Kangpokpi the worst affected due to its position between rival-dominated districts.

    Why has the return of an elected government failed to restore order?

    1. A power-sharing arrangement has not translated into reconciliation: The state government led by Yumnam Khemchand Singh, a Meitei chief minister with deputy chief ministers from the Kuki and Naga communities, returned in February after almost a year of President’s Rule, but has found little success pulling the state back from the brink.
    2. Social segregation has outpaced political representation: The communities remain socially segregated, so political representation across the three groups in government has not by itself addressed the everyday separation that sustains distrust and enables further violence.
    3. Displacement has produced a significant, undercounted toll: Right to Information data has revealed that more than 700 internally displaced people have died in relief camps, a toll separate from and additional to deaths from direct violence.

    Challenges to a political settlement in Manipur

    1. Security forces have struggled to secure supply routes: Security forces have had very little success ensuring the safe movement of convoys carrying essential supplies through blockaded areas. Eg. Blockades imposed by Meitei, Kuki and Naga groups have repeatedly disrupted the movement of food, fuel and medical supplies into Kangpokpi and surrounding districts. Fix. Establish dedicated, jointly monitored humanitarian corridors for essential supplies, with monitoring involving representatives from all three communities rather than security forces alone.
    2. Armed groups remain undisbanded: Militant groups from multiple communities continue to operate, and a crackdown on extremist elements has not kept pace with the scale of continuing violence. Eg. The killing of four Naga civilians in Kangpokpi this week, alongside the earlier killing of Kuki-Thadou pastors, shows armed actors from more than one community remain capable of carrying out attacks. Fix. Pursue simultaneous, verifiable disarmament commitments from armed groups across all three communities rather than sequencing disarmament by community.
    3. No agreed framework exists for resolving land and identity claims: Every claim over land and identity cannot be resolved overnight, and the absence of an interim framework leaves communities without a safe basis for movement, trade or daily coexistence. Eg. The overlapping blockades by all three communities show there is currently no shared understanding of which areas each community can safely access. Fix. Prioritise an interim framework guaranteeing safe movement, trade and access to essential services, deferring final land and identity settlements to a later, dedicated political process.

    Conclusion

    The editorial’s position is that political representation alone, through a Meitei chief minister and Kuki and Naga deputy chief ministers, cannot resolve a conflict sustained by social segregation and repeated cycles of reprisal. It calls for sustained dialogue empowering civil society leaders, an interim framework for safe movement and trade, and simultaneous disarmament and action against extremist elements, alongside the immediate arrest of those responsible for this week’s killings.

    Back2Basics: What is President’s Rule?

    Central takeover of state governance: President’s Rule, imposed under Article 356 of the Constitution, allows the Union government to assume direct control of a state’s administration when its constitutional machinery is deemed to have broken down, as occurred in Manipur for nearly a year before the elected government returned in February.

    1. PM visit to Uzbekistan, Kyrgyz Republic: Why Central Asia matters for India (Explainer)

      PM visit to Uzbekistan, Kyrgyz Republic: Why Central Asia matters for India (Explainer)

      Why in the News

      Prime Minister Narendra Modi is visiting Uzbekistan from August 29 to 30 on a bilateral visit, followed by the Kyrgyz Republic for the 26th Shanghai Cooperation Organisation (SCO) Summit from August 31 to September 1. The visit continues India’s focused Central Asia engagement, which began in 2012 with the “Connect Central Asia” policy and was reinforced when Modi became the first Indian Prime Minister to visit all five Central Asian countries in July 2015.

      What resources make Central Asia strategically valuable?

      1. Kazakhstan holds major mineral wealth: Kazakhstan has one of the world’s biggest uranium reserves along with substantial deposits of coal, lead, zinc, gold and iron ore.
      2. The Kyrgyz Republic offers gold and hydropower: The Kyrgyz Republic’s economy is built significantly around gold mining and hydropower generation potential.
      3. Turkmenistan holds vast natural gas reserves: Turkmenistan has one of the world’s largest natural gas reserves, a resource base central to regional pipeline politics.
      4. Tajikistan and Uzbekistan add hydropower, gold and uranium: Tajikistan has substantial hydropower potential, while Uzbekistan holds gold, uranium and natural gas reserves of its own.

      Why is India competing for strategic space in Central Asia?

      1. Countering China’s regional investments: China’s President Xi Jinping visited four of the five Central Asian countries in September 2022, his first overseas trip after the Covid-19 disruption, and China has made major investments in the region through its Belt and Road Initiative, which India does not want to see capture the post-Soviet space unchallenged.
      2. Security concerns following the Taliban takeover: India’s engagement is driven partly by the need for security cooperation in the wake of the Taliban’s return to power in Afghanistan, since Central Asia borders Afghanistan directly.
      3. Energy and connectivity needs: India’s interest includes Kazakhstan’s uranium reserves, Turkmenistan’s role in the proposed Turkmenistan-Afghanistan-Pakistan-India gas pipeline, and connectivity plans built around the International North-South Transport Corridor.
      4. A cultural outreach signal in 2022: India invited Central Asian leaders to the Republic Day celebrations in January 2022, an early diplomatic signal of the outreach it has since built on.

      What challenges constrain India’s Central Asia engagement?

      1. No overland access through Pakistan: Pakistan blocks India’s direct overland transport access to Central Asia, forcing India to route connectivity plans through the International North-South Transport Corridor and the Chabahar port in Iran instead. Eg. India’s push to integrate the Corridor with Chabahar exists specifically because the shorter, direct land route through Pakistan is closed to it. Fix. Prioritise completion of the Chabahar-linked rail and road segments of the Corridor on a fixed timeline, since it is the only viable alternative connectivity route available to India.
      2. Radicalisation risk along the Taliban-adjacent frontier: Central Asia is widely seen as the northern boundary of the Islamic world, and the Taliban’s ascent next door raises the risk of radicalism and a possible regrouping of the Islamic State within the region. Eg. Central Asian governments have flagged the security implications of Afghanistan’s instability spilling across shared borders. Fix. Expand India’s existing counter-terrorism training and intelligence-sharing arrangements with Central Asian states as a standing component of the engagement, not an occasional add-on.
      3. Russia-Ukraine spillover creating local churn: The Russia-Ukraine conflict has pushed some Russians with money and skills, but unable to move to the West, toward these Central Asian countries, which could bring inflows of talent and funds alongside social tension. Eg. Reports point to a rising Russian presence in Central Asian cities since the conflict began, altering local economic and social dynamics.

      What civilisational and trade links does India draw on?

      1. Deep historic ties with Uzbekistan: The only known Buddhist monastery in Central Asia is at Kara Tepa in Termez, Uzbekistan, an important centre during the Kushana era when Buddhist influence spread into the region, and close to 3,000 words are shared between Hindi and Uzbek.
      2. Shared cuisine as a marker of the connection: Similarities exist across Indian and Central Asian food traditions, including ghee and sariyok, samosa and samsa, naan and non, and pulao and pilaf.
      3. A meaningful trade relationship with Uzbekistan: India is among Uzbekistan’s top 10 trading partners, with bilateral trade in 2025-26 close to $1 billion.

      What is the SCO summit’s composition and agenda?

      1. A ten-member grouping with wide partner networks: The SCO comprises 10 member states, India, Belarus, China, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan, alongside 15 Dialogue Partners including Kuwait, Saudi Arabia, the UAE and Turkiye, and two Observers, Mongolia and Afghanistan.
      2. India joined the grouping in 2017: India has been a full SCO member since 2017, and this year’s summit also marks the third edition of the SCO+ format, expected to bring in additional states and bodies such as the United Nations and the Collective Security Treaty Organization.

      Conclusion

      Modi’s back-to-back Uzbekistan visit and SCO summit attendance extend a Central Asia policy that dates to 2012, aimed at securing energy access, countering Chinese influence and building connectivity around Pakistan’s blockage of overland routes. The next milestone is the Bishkek summit itself, from August 31 to September 1, and whatever bilateral outcomes emerge from the Uzbekistan leg beforehand.

      Back2Basics: What is the International North-South Transport Corridor (INSTC)?

      1. A multimodal route bypassing Pakistan: The International North-South Transport Corridor is a multimodal transport link connecting India to Russia and Europe via Iran, Azerbaijan and Central Asia, designed to move goods by ship, rail and road, and it is the route India relies on to reach Central Asia given the absence of direct overland access through Pakistan.

      [2025] India is one of the founding members of the International North-South Transport Corridor (INSTC), a multimodal transportation corridor, which will connect

      [A] India to Central Asia to Europe via Iran

      [B] India to Central Asia via China

      [C] India to South-East Asia through Bangladesh and Myanmar

      [D] India to Europe through Azerbaijan (2017, same Microtheme).

    2. In India-China diplomacy, wariness is the only normal In India-China diplomacy, wariness is the only normal

      In India-China diplomacy, wariness is the only normal In India-China diplomacy, wariness is the only normal

      Why in the News

      National Security Adviser Ajit Doval met Chinese Foreign Minister Wang Yi in Beijing on August 25 for the 25th round of Special Representatives (SR) talks on the India-China boundary. India and China first issued separate readouts, then released an identical eight-point joint consensus on August 26, agreeing to push for “Early and Substantial Harvest” on boundary delimitation, two new military meeting points, two new border hotlines, an Expert-Level Mechanism on trans-border rivers, facilitation of the Kailash-Mansarovar Yatra, resumption of border trade, and the next SR round in India in 2027.

      What does the joint statement’s careful language reveal about the relationship?

      1. A delayed but fast-negotiated text: The 24 hour gap between the separate initial statements and the identical joint text suggests consensus took time to build, but once found, the text was agreed within 18 hours, signalling political intent at the highest level ahead of a packed diplomatic fortnight.
      2. Deliberate avoidance of contentious terms: Both sides avoided the words “Tibet” or “Xizang” in the joint text, referring only to the Kailash-Mansarovar Yatra and border trade through three passes, and used the dual naming, Kailash and Gang Rinpoche, Manasarovar and Mapam Yun Tso, to sidestep sovereignty-loaded terminology.
      3. New hotlines require internal clearance in Beijing: Until now, the only functional military hotline was in the Western sector, Ladakh; extending hotlines and meeting points to the Eastern sector, Arunachal Pradesh, which China claims as South Tibet, would have required internal Chinese clearance, since it touches a claim China treats as sensitive.

      Why is China’s stance on the BRICS summit significant?

      1. Calibrated ambiguity on Xi Jinping’s participation: China has said it “supports India in hosting a successful BRICS summit” in Delhi on September 12 but has stayed evasive on whether President Xi Jinping will personally attend, a position the writer reads as deliberate tactical ambiguity rather than indecision.
      2. India’s leverage is constrained by external pressure: India has to accept this ambiguity given its trade-economic vulnerability and the geopolitical turbulence triggered by President Donald Trump’s tariff actions, which narrows India’s room to press Beijing on the BRICS question.

      Challenges to sustaining the India-China diplomatic thaw

      1. The boundary dispute remains structurally unresolved: “Early and Substantial Harvest” language covers delimitation, mapping where the border lies, but explicitly operates without prejudice to the final settlement under the 2005 Agreement on Political Parameters, so no boundary line is actually being fixed. Eg. The Eastern sector hotline extension itself required Beijing’s internal clearance precisely because the underlying territorial claim remains contested. Fix. Use the Expert-Level Mechanism agreed in the joint statement to convert delimitation “harvest” language into a scheduled, verifiable set of mapping milestones rather than an open-ended process.
      2. Trust deficit persists beneath cooperative language: Both governments continue to issue separate domestic-facing statements before agreeing a joint text, reflecting a persistent gap between what each side is willing to say to its own public and what it is willing to commit to jointly. Eg. India’s initial embassy statement was notably more restrained than Beijing’s warmer framing of “global and strategic significance,” before both converged on the identical joint text a day later.

      Conclusion

      The writer’s central argument is that deeply embedded wariness, not a failure of diplomacy, is the operating method of India-China relations: both sides manage friction through carefully calibrated joint language, incremental confidence-building measures and studied ambiguity on sensitive questions such as Tibet and Xi Jinping’s BRICS attendance. The near-term test of this method will be the SCO summit in Bishkek from August 31 to September 1 and the BRICS summit in Delhi on September 12.

      India-China Relations

      1. A boundary dispute rooted in the 1962 war: India and China share an unresolved boundary along the Line of Actual Control (LAC), the subject of the 1962 Sino-Indian War, and have since built a layered set of confidence-building mechanisms rather than a settled border.
      2. The Special Representatives mechanism: Established in 2003, the SR talks are the highest-level bilateral channel for discussing a framework settlement of the boundary question, distinct from routine military and diplomatic contacts.
      3. Galwan reset the relationship’s tenor: The 2020 Galwan Valley clash, the first fatal India-China military confrontation in over four decades, froze high-level engagement for years before talks such as the current SR round resumed.
      4. Trade imbalance runs alongside the security relationship: India runs a large and persistent trade deficit with China even as both sides pursue diplomatic normalisation, a structural feature of the relationship independent of the boundary talks.

      Key Facts about India-China Relations

      1. Agreement on Political Parameters, 2005: Sets out the guiding political parameters and principles for a boundary settlement, and remains the reference framework the current “Early and Substantial Harvest” language explicitly operates without prejudice to.
      2. SCO membership since 2017: India and China are both members of the Shanghai Cooperation Organisation, the same platform hosting the Bishkek summit immediately after the current round of SR talks.

      Challenges in India-China Relations

      1. Unresolved boundary despite repeated confidence-building measures: Decades of hotlines, meeting points and expert mechanisms have reduced the risk of miscalculation without resolving the underlying territorial claims. Eg. The Eastern and Middle sector hotlines agreed in the current round only supplement, rather than replace, the unresolved 2005 political parameters framework. Fix. Anchor future confidence-building measures to specific, dated delimitation milestones rather than open-ended review mechanisms.
      2. Structural trade dependence on China: India’s electronics, pharmaceutical and solar manufacturing sectors remain dependent on Chinese intermediate goods and active pharmaceutical ingredients, a vulnerability that persists regardless of the state of boundary diplomacy. Eg. India’s trade deficit with China has stayed among its largest with any single country for over a decade. Fix. Accelerate production-linked incentive schemes targeting the specific intermediate goods categories where import dependence is highest, rather than broad-based manufacturing incentives.

      Back2Basics: What is the Line of Actual Control (LAC)?

      1. A de facto, not a demarcated, boundary: The Line of Actual Control is the notional line separating Indian-controlled and Chinese-controlled territory, distinct from an internationally recognised or mutually demarcated border, and both sides hold differing perceptions of exactly where it runs in several sectors.
    3. Trump administration seeks to restrict internships for international students (CPT rules)Trump administration seeks to restrict internships for international students (CPT rules)

      Trump administration seeks to restrict internships for international students (CPT rules)Trump administration seeks to restrict internships for international students (CPT rules)

      Why in the News

      The Trump administration issued a memo, dated August 24, directing US universities to restrict Curricular Practical Training (CPT) work authorisations for international students. The Student and Exchange Visitor Program (SEVP), part of US Immigration and Customs Enforcement, said it had observed a rise in CPT authorisations that appear to violate the rule permitting CPT only where the training is an integral, curriculum-linked requirement. The memo warned that non-compliant institutions could lose certification to enrol foreign students, prompting the University of California, Los Angeles and the University of California, Berkeley to pause certain CPT applications.

      Why does the CPT restriction matter for Indian students?

      1. Indian students form a large share of the affected pool: Indian nationals are among the largest cohorts of international students in the United States, concentrated in graduate programmes in science, technology, engineering and business where CPT and its post-study counterpart, Optional Practical Training, are commonly used to gain early work experience.
      2. CPT often bridges study and full-time employment: Many international students use CPT internships to secure the practical experience and employer relationships that later translate into full-time job offers and sponsored work visas, so tighter CPT rules narrow that pathway at its earliest stage.
      3. Institutional caution creates immediate uncertainty: Universities such as UCLA and UC Berkeley pausing CPT applications while they review the guidance leaves currently enrolled students without a clear timeline for authorisations they may need for the coming term.

      Challenges the CPT tightening creates

      1. Ambiguity in what counts as curriculum-integral training: The memo does not precisely define the line between legitimate curriculum-linked internships and authorisations SEVP considers a violation, leaving universities to interpret the standard conservatively. Eg. UC Berkeley’s international office described the August 24 memo as “more narrow in focus” and “more restrictive in nature” than earlier guidance, without full clarity on the new threshold. Fix. SEVP could issue detailed, program-specific criteria for curriculum integration, developed in consultation with universities, rather than a general compliance warning.
      2. Institutional risk pushes universities toward blanket caution: Because non-compliance risks an institution’s certification to enrol any foreign student, universities have an incentive to pause CPT broadly rather than assess applications individually, even where most are legitimate. Eg. UCLA paused certain CPT authorisations altogether while it determines next steps, affecting students beyond those the memo specifically targets.

      What is Curricular Practical Training (CPT)?

      Work authorisation tied to the curriculum: Curricular Practical Training is a work authorisation available to international students on an F-1 visa that allows off-campus employment or internships considered an integral part of an established academic curriculum, distinct from Optional Practical Training, which applies mainly after a course of study is completed.

    4. India, Kuwait hold inaugural key dialogue in Delhi to bolster defence ties

      Why in the News

      India and Kuwait held the inaugural meeting of the India-Kuwait Joint Defence Committee in New Delhi on August 28. Both sides agreed to expand bilateral defence cooperation across training, military exercises, industry, and research and development. The meeting operationalises the Memorandum of Understanding (MoU) on Defence Cooperation signed during Prime Minister Narendra Modi’s visit to Kuwait in December 2024.

      Why does an institutionalised defence dialogue with Kuwait matter for India?

      1. A first standing forum with a Gulf monarchy on defence: The Joint Defence Committee gives India and Kuwait a recurring institutional channel, rather than one-off visits, to advance training, joint exercises, defence industry links and research and development.
      2. Extends India’s Gulf defence footprint beyond energy ties: India’s engagement with the Gulf has historically centred on energy imports and the diaspora; a dedicated defence committee with Kuwait signals a broadening of the relationship into security cooperation, alongside similar frameworks India already runs with Saudi Arabia and the United Arab Emirates.
      3. Kuwait sits at a sensitive maritime chokepoint: Kuwait’s location near the head of the Persian Gulf and the Strait of Hormuz gives India a stake in the security of a route through which a large share of its crude oil imports transit.

      Challenges to the India-Kuwait defence relationship

      1. Limited defence-industrial base on the Kuwaiti side: Kuwait’s domestic defence manufacturing capacity is minimal, so cooperation is likely to stay import and training-oriented rather than co-production, unlike some of India’s other defence partnerships. Eg. India’s co-production discussions with the United States on the Javelin missile system have no current parallel in the Kuwait relationship. Fix. Use the Joint Defence Committee’s industry track to identify smaller co-development areas, such as maintenance, repair and overhaul services, where Kuwait’s capacity constraints are less binding.
      2. Competing suppliers already entrenched in the Gulf: Gulf states, including Kuwait, have longstanding defence procurement relationships with the United States, the United Kingdom and France, which limits the near-term scope for India to secure large equipment sales. Eg. Kuwait’s air defence and fighter fleets are built around US and European platforms, leaving India’s defence exports pitch centred on niche systems and services rather than big-ticket sales.

      Conclusion

      The inaugural Joint Defence Committee meeting converts the 2024 MoU into a standing institutional mechanism, marking a modest but concrete step in India’s effort to deepen security ties with the Gulf beyond energy and trade. The substantive test will be whether the committee produces actual joint exercises, training exchanges or industry tie-ups before its next meeting.

      What is the Gulf Cooperation Council (GCC)?

      1. A regional grouping, not Kuwait’s own body: The Gulf Cooperation Council is a political and economic union of six Gulf Arab states, Kuwait, Saudi Arabia, the UAE, Qatar, Bahrain and Oman, formed in 1981 to coordinate economic, security and foreign policy matters among them.
      2. India engages the GCC bilaterally, not as a bloc: India does not have a defence framework with the GCC as a single entity; agreements such as the Joint Defence Committee are negotiated bilaterally with individual member states like Kuwait.