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Subject: Bilateral Relations

1. Major World Events
2. India’s Interests in neighbourhood
3. Effects of our Policies

  • Indian Origin Leaders, Immigrants and the Global Ecosystem Debate

    Why in the News? 

    An opinion piece reflects on the rise of Indian origin CEOs in Fortune 500 firms and questions whether their success is due to Indian upbringing, organisational loyalty, or the enabling ecosystem of immigrant driven economies like the United States.

    Indian Origin CEOs: The Numbers

    • 11 Indian origin CEOs in Fortune 500 companies in 2025.
    • Previously 13 in 2024 and 16 in 2023.
    • 28 Indian origin CEOs in Forbes 2000 list.
    • Examples include: Sundar Pichai, Satya Nadella, Shantanu Narayen, and Arvind Krishna
    • However, this represents roughly 2 percent or less of total Fortune 500 leadership.

    Immigrant Founders and CEOs in the U.S.

    • Around 46 percent of Fortune 500 companies in 2025 were founded by immigrants or their children.
    • Of the 14 new companies entering Fortune 500 in 2025, 10 were immigrant founded.

    Diaspora Economic Impact

    Data from Migration Policy Institute shows:

    • 74 percent labour force participation among Indian immigrants in the U.S.
    • Higher representation in management, business, science and arts roles.
    • Median annual income of Indian immigrant households in 2023: $166,200
    • Compared to $78,700 for all immigrant households and $77,600 for native households.

    Remittances

    • India received $135 billion in remittances last year.
    • 27 percent came from Indians working in the U.S.
    [2019] In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis? 1. The foreign currency earnings of India’s IT sector 

    2. Increasing the government expenditure 

    3. Remittances from Indians abroad 

    Select the correct answer using the code given below. 

    (a) 1 only (b) 1 and 3 only (c) 2 only (d) 1, 2 and 3

  • India tested, from U.S sanctions to one sided trade deal

    PYQ Relevance

    [UPSC 2019] “What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self- esteem and ambitions” Explain with suitable examples.

    Linkage: It tests India-U.S. strategic divergence under GS II. It directly links to tariff pressure and U.S. demands on Russian oil, highlighting friction between U.S. global strategy and India’s strategic autonomy.

    Mentor’s Comment

    India’s strategic autonomy faces renewed scrutiny amid U.S. tariff diplomacy and sanctions-linked trade conditionalities. The episode raises core questions of sovereignty, regulatory fairness, executive overreach, and balance-of-power politics. 

    Why in the News?

    India and the U.S. have concluded an Interim Trade Agreement after the U.S. imposed 25% tariffs in August 2025. The tariffs were linked to India’s Russian oil imports, which had peaked at ~40% in 2024 before falling to ~25% by late 2025. The episode shows how trade is increasingly tied to strategic and energy considerations.

    Does U.S. Tariff Diplomacy Undermine Rules-Based Trade Governance?

    1. Unilateral Executive Action: Links tariff reduction to geopolitical compliance rather than WTO-consistent trade negotiations; weakens multilateral dispute mechanisms.
    2. Punitive Tariffs: Imposed 25% duties in August 2025 on Indian goods; subsequently rescinded through executive orders.
    3. Conditional Market Access: Seeks expanded U.S. access to Indian markets while pressing for reduction of Russian oil imports.
    4. Institutional Accountability: Bypasses negotiated reciprocity; shifts balance from institutional trade frameworks to executive discretion.

    How Does the Issue Impact India’s Strategic Autonomy Doctrine?

    1. Strategic Autonomy Principle: Preserves independent decision-making in defence, energy, and diplomacy.
    2. Energy Diversification: Russian oil share rose to ~40% of imports in 2024; reduced to 25% by late 2025.
    3. Defence Alignment Pressure: Trade terms implicitly linked with broader security cooperation including Indo-Pacific posture.
    4. BRICS Signalling: Constrains India’s credibility among BRICS members and Global South partners.

    Does Energy Security Justify Continued Russian Oil Imports?

    1. Energy Affordability: Discounted Russian crude lowered import bills amid global price volatility.
    2. Supply Stability: Ensures diversified sourcing amid Middle East uncertainty.
    3. Import Adjustment: Purchases already declining since November 2025; December 2025 imports at 38-month low.
    4. National Interest Standard: Foreign policy decisions aligned with economic stability rather than bloc politics.

    What Are the Implications for Federal Economic and Institutional Governance?

    1. Trade Policy Centralisation: Executive-level negotiation limits parliamentary scrutiny.
    2. Economic Sovereignty: Conditional trade concessions affect domestic regulatory autonomy.
    3. Chabahar Port Concerns: U.S. push to reduce Iranian linkage impacts India’s connectivity strategy to Central Asia.
    4. Policy Credibility: Abrupt compliance may weaken India’s long-term negotiation leverage.

    Does Compliance Strengthen or Weaken India’s Global Standing?

    1. Global South Leadership: India previously resisted unilateral sanctions pressure; retreat affects credibility.
    2. Multi-Alignment Strategy: Balances U.S., Russia, and developing nations; over-compliance narrows options.
    3. Precedent Risk: Accepting trade-linked geopolitical conditions institutionalises coercive diplomacy.
    4. Long-Term Diplomacy: Undermines perception of India as an independent pole in emerging multipolar order.

    How Does This Episode Reflect Changing U.S. Trade Strategy?

    1. Economic Statecraft: Uses tariffs as instruments of geopolitical leverage.
    2. Integrated Pressure Model: Links trade, sanctions, defence, and energy policies.
    3. Executive-Centric Diplomacy: Social media and executive orders shape negotiation narrative.
    4. Transactional Framework: Replaces value-based partnership rhetoric with outcome-based compliance metrics.

    Conclusion

    The India-U.S. interim trade agreement may have eased immediate tariff tensions, but it underscores a deeper structural shift in global politics, where trade, energy, and strategic alignment are increasingly intertwined. For India, the core challenge lies in safeguarding strategic autonomy while deepening economic engagement with the West. The durability of this partnership will depend not on transactional concessions, but on mutual respect for sovereign decision-making within an evolving multipolar order.

  • ​A decisive mandate: On Tarique Rahman, the BNP, the Bangladesh result

    Why in the News?

    The 2026 parliamentary elections in Bangladesh marked a decisive political transition. The Bangladesh Nationalist Party (BNP), led by Tarique Rahman, secured a parliamentary majority after the Bangladesh Awami League was barred from contesting. The episode raises questions of democratic restoration, institutional neutrality, and strategic implications for South Asia.

    How Did the 2026 Parliamentary Election Alter the Political Power Structure?

    1. Electoral Outcome: The Bangladesh Nationalist Party (BNP) secured a parliamentary majority and formed the government.
    2. Power Alternation: Marks a shift from prolonged Awami League dominance to opposition-led governance.
    3. Turnout Increase: Approximately 62-65% voter participation compared to ~40% in 2024.
    4. Public Mandate Signal: Higher participation indicates re-engagement of the electorate.

    What Are the Democratic Implications of the Awami League’s Exclusion?

    1. Party Disqualification: The Bangladesh Awami League was barred from contesting due to regulatory and legal action during transition.
    2. Competitive Neutrality Question: Absence of the principal rival affects level playing field.
    3. Institutional Scrutiny: Raises concerns regarding electoral fairness and regulatory independence.
    4. Legitimacy Debate: Procedural legality must be assessed alongside inclusiveness.

    How Will the Regime Change Impact Institutional Accountability?

    1. Parliamentary Oversight: New ruling party faces responsibility to ensure executive accountability.
    2. Judicial Role: Courts must maintain independence in handling cases involving former regime actors.
    3. Bureaucratic Neutrality: Administrative machinery must function beyond partisan alignment.
    4. Media Environment: Political transition may expand space for public debate.

    What Governance Challenges Confront the BNP Government?

    1. Economic Stabilisation: Inflation control and debt management remain immediate priorities.
    2. Youth Employment: Demographic pressures demand labour-intensive growth.
    3. Minority Protection: Political transition must not trigger retaliatory targeting.
    4. Law and Order: Ensures stability during post-transition consolidation.

    What are the regional geopolitical implications of Bangladesh’s regime change?

    1. Strategic Realignment: Alters South Asian power balance amid Chinese and U.S. influence expansion.
    2. Economic Diplomacy: Strengthens Bangladesh’s bargaining leverage in regional trade agreements.
    3. Security Architecture: Impacts BIMSTEC and sub-regional cooperation frameworks.
    4. Migration Governance: Influences cross-border population and minority protection debates.
    5. Hasina Factor: Complicates bilateral diplomacy due to her status as a fugitive in Dhaka and presence in Delhi.

    How Does the 2026 Transition Affect India-Bangladesh Relations?

    1. Diplomatic Reset: Facilitates re-engagement after ties declined under interim leadership.
    2. Security Cooperation: Ensures protection of Indian missions and cross-border intelligence coordination.
    3. Trade Restoration: Revives disrupted connectivity, trade corridors, and supply chains.
    4. Strategic Competition: Reclaims space ceded to Pakistan, the U.S., and China post-Hasina era.
    5. Bay of Bengal Strategy: Bangladesh remains central to maritime security architecture.

    Does Political Alternation Guarantee Democratic Consolidation?

    1. Procedural Democracy: Election conducted through constitutional mechanism.
    2. Substantive Democracy: Requires inclusive participation and institutional neutrality.
    3. Rule of Law: Application must remain non-selective.
    4. Long-Term Stability: Depends on balancing accountability with reconciliation.

    PYQ Relevance

    [UPSC 2022] ‘India is an age-old friend of Sri Lanka.’ Discuss India’s role in the recent crisis in Sri Lanka in the light of the preceding statement.

    Linkage: It tests India’s neighbourhood diplomacy, crisis response strategy, and balancing of strategic interests with regional stability. Similar to Bangladesh’s 2026 transition, it highlights how India must engage political crises in neighbouring states through calibrated support while safeguarding security

  • BNP Returns to Power in Bangladesh

    Why in the News?

    The Bangladesh Nationalist Party secured a landslide victory in Bangladesh’s parliamentary elections held on February 12. Party chief Tarique Rahman is set to form the next government, with transfer of power likely by February 17 or 18.

    Key Election Results

    • BNP led alliance won 212 seats, securing a two thirds majority in the Jatiyo Sangsad
    • 11 party alliance led by Jamaat-e-Islami won 77 seats
    • Independents won 8 seats

    National Referendum

    • 60.2 percent voters backed sweeping democratic reforms
    • Conducted alongside parliamentary elections
    • Signals mandate for institutional and governance reforms

    Transfer of Power

    • Interim government led by Muhammad Yunus to hand over power
    • Formal process after gazette notification by Election Commission
    • Oath taking to be legally validated following 2024 parliamentary dissolution

    International Reactions

    • Prime Minister Narendra Modi congratulated Tarique Rahman and reaffirmed India’s support for a democratic and inclusive Bangladesh
    • Congratulatory messages from US, China, Nepal and Maldives

    Political Context

    • 2024 mass uprising led to fall of previous government under Sheikh Hasina
    • Parliament was dissolved amid political unrest
    • Representation of women and minorities reportedly at a two decade low
    [2025] Consider the following countries: I. United Arab Emirates 

    II. France 

    III. Germany 

    IV. Singapore 

    V. Bangladesh 

    How many countries amongst the above are there other than India where international merchant payments are accepted under UPI? 

    (a) Only two (b) Only three (c) Only four (d) All the five

  • As multilateralism erodes, India must reframe its foreign policy

    Why in the News?

    Global institutions are weakening as U.S.-China rivalry intensifies and countries increasingly take unilateral trade and security actions. The U.S. has bypassed WTO dispute systems and imposed tariffs, while China has expanded trade ties and is now the top trading partner for over 120 countries. The North Atlantic Treaty Organization’s (NATO) role is questioned, and the United Nations (UN) faces decision-making paralysis. Despite tensions, India remains heavily dependent on Chinese imports. The post-1991 liberal global order is fragmenting, forcing India to rethink strategic autonomy, diversify trade, and build domestic capacity. These shifts directly affect India’s trade, security, and diplomatic space.

    Introduction

    India’s foreign policy evolved from Non-Alignment to strategic autonomy within a multilateral, rule-based global order. The emerging order is increasingly transactional, alliance-driven, and technology-centric. This requires recalibration of India’s external engagement strategy.

    Why is Multilateralism Eroding?

    1. Institutional Paralysis: Multilateral institutions such as the UN and World Trade Organisation (WTO) face decision-making deadlocks, reducing enforceability of global norms. The WTO dispute settlement mechanism remains dysfunctional.
    2. Power Politics: Major powers prioritise bilateral leverage over multilateral commitments. The U.S. imposed unilateral tariffs despite WTO membership.
    3. Alliance Fragmentation: NATO’s unity faces internal divergence. Strategic competition overshadows collective security objectives.
    4. Economic Nationalism: Countries increasingly adopt protectionist measures. The U.S.-China trade war reflects departure from liberal trade principles.
    5. Decline of Global Consensus: Consensus-based diplomacy gives way to issue-based coalitions and minilateral frameworks.

    Is Strategic Autonomy Still Viable?

    1. Cold War Origins: Strategic autonomy emerged through the Non-Aligned Movement to preserve decision-making independence amid U.S.-Soviet bipolarity.
    2. Post-1991 Evolution: India retained autonomy while integrating into the liberal economic order, engaging the U.S., Russia, EU, BRICS, and Quad simultaneously.
    3. Operational Example: India purchased the Russian S-400 system despite U.S. CAATSA pressure and did not choose the U.S. Patriot system, demonstrating independent security choices.
    4. Multi-Alignment: Simultaneous engagement in Quad, BRICS, SCO, and continued defence ties with Russia reflect flexible alignment.
    5. Shrinking Multilateral Space: WTO paralysis and UN gridlock reduce institutional protection for balanced positioning.
    6. Capability Imperative: Autonomy is sustainable only if backed by manufacturing strength, technological capacity, and diversified trade. Strategic autonomy now requires material capability, not only diplomatic positioning. 

    How Is Power Politics Reshaping Global Relations?

    1. U.S.-China Rivalry: The U.S. CHIPS and Science Act (2022) restricts semiconductor exports to China; China advances “Made in China 2025” for tech self-reliance.
    2. Economic Coercion: The U.S. imposed Section 301 tariffs on China; Russia was excluded from SWIFT after the Ukraine war, showing finance as a strategic tool.
    3. Supply Chain Shift: The Indo-Pacific Economic Framework (IPEF) and “friend-shoring” aim to reduce dependence on China; Japan subsidised firms relocating from China.
    4. Minilateralism: The Quad and AUKUS operate outside universal platforms like the UN, focusing on strategic coordination.
    5. WTO Paralysis: The U.S. blocked Appellate Body appointments, disabling dispute settlement since 2019.

    What Challenges Does This Create for India?

    1. Trade Dependence: India remains significantly dependent on Chinese imports despite geopolitical tensions.
    2. Reduced Legal Recourse: WTO paralysis limits dispute resolution options.
    3. Technology Gaps: Dependence on external technology constrains strategic space.
    4. Dual Security Pressure: Border tensions and regional instability complicate balancing strategy.
    5. Development Linkage: External volatility directly affects growth ambitions.

    India must therefore shift from reactive diplomacy to structured strategic positioning.

    How Should India Reframe Its Foreign Policy?

    1. Endogenous Capacity: Strengthens domestic manufacturing and technological capability.
    2. Trade Diversification: Expands FTAs with EU, Africa, and emerging markets.
    3. Technology Partnerships: Deepens cooperation in AI, digital infrastructure, and cybersecurity.
    4. Pragmatic Regional Engagement: Stabilises neighbourhood relations through economic instruments.
    5. BRICS Repositioning: Aligns BRICS toward economic coordination rather than political bloc identity.
    6. Digital Currency Cooperation: Integrates official digital currencies to facilitate cross-border trade.
    7. Viksit Bharat 2047 Alignment: Links foreign policy with development milestones and economic transformation.

    Conclusion

    The erosion of multilateralism reflects structural transformation in global power distribution. India must recalibrate foreign policy toward endogenous capacity, diversified trade, and technology-driven growth. Strategic autonomy remains relevant but requires economic and technological foundations to remain credible.

    PYQ Relevance

    [UPSC 2019] “The long-sustained image of India as a leader of the oppressed and marginalised Nations has disappeared on account of its new found role in the emerging global order”. Elaborate.

    Linkage: It examines the evolution of India’s foreign policy from moral leadership of the Global South to pragmatic strategic positioning. It directly links to themes of eroding multilateralism and the shift from traditional strategic autonomy to interest-driven engagement in the emerging global order.

  • Pakistan Raises Indus Waters Issue over Sawalkot Dam

    Why in the News?

    Pakistan’s Foreign Office has stated that it has formally sought details from India regarding the Sawalkot Dam project, asserting that there will be no compromise on Pakistan’s water rights under the Indus Waters Treaty (IWT).

    Indus Waters Treaty (1960)

    Key Features

    • Signed in 1960 between:
      • India
      • Pakistan
      • Brokered by the World Bank

    River Allocation

    • Eastern Rivers (Exclusive use to India): Ravi, Beas and Sutlej
    • Western Rivers (Primarily for Pakistan, limited use to India): Indus, Jhelum and Chenab
    • India can build:
      • Run of the river hydroelectric projects
      • Non consumptive use projects
         But must share technical details with Pakistan.

    Sawalkot Dam Issue

    • Proposed on the Chenab River in Jammu and Kashmir.
    • Pakistan’s Indus Water Commissioner has written to India seeking:
      • Complete technical details
      • Design specifications
      • Compliance verification under IWT
    [2009] Consider the following statements: 1. The Baglihar Power Project had been constructed within the parameters of the Indus Water Treaty. 

    2. The project was completely built by the Union Government with loans from Japan and the World Bank. 

    Which of the statements given above is/are correct? 

    (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

  • Bangladesh–U.S. Trade Deal: Shift from Indian to U.S. Cotton

    Why in the News?

    Bangladesh has announced that it will replace Indian cotton with U.S. cotton following a new trade deal with the United States. The agreement is expected to boost Bangladesh’s access to the U.S. textile market but may impact cotton trade with India.

    Key Features of the Deal

    1. Tariff Concession

    • Standard tariff fixed at 19 percent, lower than rivals like Cambodia and Indonesia.
    • Zero tariff access if Bangladesh’s textile producers use U.S. cotton or manmade fibre.
    • Strong incentive to shift sourcing away from India and Central Asia.

    2. Strategic Significance

    • U.S. is the largest textile export market for Bangladesh. The deal strengthens Bangladesh’s export competitiveness. Bangladesh does not produce significant cotton domestically, giving it flexibility in sourcing decisions.

    India–Bangladesh Cotton Trade Context

    • Bangladesh is one of the largest importers of Indian cotton and yarn.
    • India exported:
      • $1.6 billion worth cotton yarn (2024)
      • $85 million manmade fibre yarn

    Tit-for-Tat Trade Restrictions (2025)

    • Bangladesh restricted yarn imports from India through land ports (April 2025).
    • India imposed curbs on Bangladeshi readymade garment imports (May 2025).
    • Trade tensions followed a broader diplomatic strain in 2024.

    Impact on India

    • Possible decline in cotton and yarn exports to Bangladesh.
    • Impact on Indian textile supply chains, especially land port trade.
    • Strategic trade competition in South Asia.
    [2020] Consider the following statements: 1. The value of Indo-Sri Lanka trade has consistently increased in the last decade. 

    2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh. 

    3. In the last five years, Nepal has been the largest trading partner of India in South Asia. 

    Which of the statements given above is/are correct? 

    (a) 1 and 2 only (b) 2 only (c) 3 only (d) 1, 2 and 3

  • [10th February 2026] The Hindu OpED: Back on track: On Malaysia India ties

    PYQ Relevance

    [UPSC 2024] Discuss the geopolitical and geostrategic importance of Maldives for India with a focus on global trade and energy flows. Further also discuss how this relationship affects India’s maritime security and regional stability amidst international competition?

    Linkage: UPSC often asks such questions to assess India’s strategic engagement with key maritime neighbours in the context of sea lanes of communication, energy security, and great-power competition in the Indian Ocean Region.

    Mentor’s Comment

    India–Malaysia relations witnessed strain over terrorism discourse and multilateral positioning. The recent high-level visit marks a strategic recalibration with implications for ASEAN engagement, trade negotiations, and counter-terror diplomacy.

    Why in the News?

    After a year of visible strain, ties between India and Malaysia are being recalibrated through Prime Minister Narendra Modi’s 24-hour visit to Kuala Lumpur. The visit is significant because it marks his first overseas destination of the new year and comes after diplomatic discomfort over Malaysia’s remarks on the Pahalgam terror attacks and its outreach to Pakistan.

    What led to the strain in India-Malaysia ties?

    1. Pahalgam Remarks: Malaysian Prime Minister Anwar Ibrahim called for a “full and thorough enquiry” and “de-escalation and meaningful dialogue” between India and Pakistan, which drew unease in New Delhi.
    2. Mediation Offer: Ibrahim offered to mediate if required, signalling an interventionist posture.
    3. Pakistan Outreach: Hosting Pakistani PM Shabaz Sharif in October 2025 intensified diplomatic sensitivities.
    4. Contentious Issues: Continued stay of preacher Zakir Naik, wanted in India under UAPA, remained unresolved but deliberately not discussed publicly.

    How did the visit signal diplomatic repair?

    1. First Overseas Visit: Modi chose Malaysia as his first foreign destination of the year, signalling priority.
    2. Joint Condemnation: Both countries unequivocally condemned terrorism, including “cross-border terrorism.”
    3. Counter-terror Cooperation: Strengthened intelligence sharing and coordination at the UN and FATF.
    4. MoUs Signed: Agreements signed to deepen ties, including in semiconductors.

    What major agreements were signed?

    1. Audio-visual co-production agreement: Promotes joint film and media production to enhance cultural and creative industry collaboration
    2. Disaster management cooperation: Strengthens coordination in disaster response, preparedness and institutional capacity-building
    3. Combating and preventing corruption: Facilitates cooperation in anti-corruption measures, including information-sharing and best practices
    4. UN peacekeeping cooperation: Extends collaboration in United Nations peacekeeping operations through exchange of letters.
    5. Semiconductor cooperation: Establishes a framework to advance collaboration in the semiconductor sector as a strategic priority
    6. International Big Cats Alliance framework agreement: Marks Malaysia’s participation in India’s IBCA initiative to enhance wildlife conservation cooperation
    7. Social security cooperation (ESIC-PERKESO): Enables coordination of social security benefits for Indian citizens working in Malaysia
    8. Vocational education and training (TVET): Enhances collaboration in skills development and technical training through exchange of notes
    9. Security cooperation between National Security Councils: Formalises closer engagement on national security matters.
    10. Health and medicine cooperation: Deepens collaboration in healthcare, medical research and public health systems.
    11. 10th Malaysia-India CEO Forum report: Presents joint recommendations to strengthen bilateral trade and investment ties.

    What economic and technological outcomes emerged?

    1. Semiconductor Cooperation: MoU builds on cooperation between IIT Madras Global and the Advanced Semiconductor Academy of Malaysia.
    2. Trade and AITIGA Review: Visit may revive negotiations on reviewing the ASEAN-India Trade in Goods Agreement (AITIGA), previously impacted by India skipping the ASEAN summit.
    3. Sectoral Expansion: Emphasis on trade, defence, energy, and digital technologies.

    What were the multilateral implications?

    1. ASEAN Engagement: Repair of ties follows India’s absence from the ASEAN summit despite accepting the invitation.
    2. Trade Frictions: Commerce Minister Piyush Goyal’s criticism of FTAs as “badly negotiated” and remarks referring to ASEAN countries as “B-teams” to China had caused unease.
    3. BRICS Coordination: India will chair the BRICS summit; Malaysia’s aspiration for membership was “noted.”
    4. Indonesia’s Entry: Indonesia has already become a BRICS partner country.

    Why is this reset strategically significant?

    1. Geographic Proximity: India-Malaysia cooperation influences broader ASEAN dynamics.
    2. Balancing China Factor: Trade sensitivities and FTA negotiations occur in a context of China’s influence.
    3. Regional Stability: Stronger coordination enhances counter-terror diplomacy and multilateral positioning.

    Conclusion

    The visit reflects calibrated diplomacy: contentious bilateral issues were set aside, counter-terror cooperation reaffirmed, economic engagement deepened, and multilateral coordination restored. The reset positions India and Malaysia for closer engagement within ASEAN and BRICS frameworks amid evolving global alignments.

  • India–Seychelles Joint Vision SESEL

    Why in the News

    India and Seychelles adopted a Joint Vision for Sustainability, Economic Growth and Security through Enhanced Linkages (SESEL) during the State Visit of Seychelles President Patrick Herminie to India. The visit coincides with 50 years of Seychelles’ independence and 50 years of India–Seychelles diplomatic relations.

    Key Outcomes 

    Strategic and Political

    • Reaffirmation of special maritime partnership between India and Seychelles
    • Seychelles recognised as a key pillar of India’s Vision MAHASAGAR
    • Agreement to intensify political and parliamentary exchanges

    Development Partnership

    • India announced a Special Economic Package of USD 175 million
      • USD 125 million Rupee denominated Line of Credit
      • USD 50 million Grant assistance
    • Focus areas include sustainability, defence, maritime security, capacity building and inclusive growth

    Digital Public Infrastructure

    • India to assist Seychelles in building Digital Public Infrastructure
    • Includes digital payments and e governance systems

    Health and Food Security

    • Donation of 10 ambulances to Seychelles
    • Seychelles to recognise Indian Pharmacopoeia, easing access to affordable medicines
    • Donation of 1000 metric tonnes of grains to strengthen food security
    • Cooperation on hospital construction and public health capacity

    Capacity Building

    • Expanded cooperation under Indian Technical and Economic Cooperation
    • Training for civil servants, defence personnel and health professionals
    • Customised training through National Centre for Good Governance
    • Cooperation in cybersecurity, financial intelligence and MSME promotion

    Climate Action and Renewables

    • Cooperation under the International Solar Alliance
    • Support for Multi Hazard Early Warning Systems
    • Seychelles to join the Coalition for Disaster Resilient Infrastructure
    • India to provide technical support for green transport and power grid management

    Trade, Tourism and Connectivity

    • Direct flights boosted Indian tourist arrivals
    • Agreement to explore further air connectivity
    • Focus on blue economy, fisheries, AI, digital services and affordable housing

    Hydrography and Blue Economy

    • Establishment of Seychelles Hydrographic Unit with Indian assistance
    • Conduct of joint hydrographic surveys
    • Third Joint Commission Meeting on Hydrography to be held in Seychelles in 2026
    [2025] Consider the following countries: I. United Arab Emirates 

    II. France 

    III. Germany 

    IV. Singapore 

    V. Bangladesh 

    How many countries amongst the above are there other than India where international merchant payments are accepted under UPI? 

    (a) Only two (b) Only three (c) Only four (d) All the five

  • India and Malaysia sign pacts to expand ties

    Why in the News?

    India and Malaysia signed multiple agreements to expand bilateral cooperation in trade, defence, energy, semiconductors, digital technologies, and local currency trade settlement during the visit of the Indian Prime Minister to Malaysia.

    Key Agreements and Outcomes

    • 11 agreements and MoUs signed covering trade, defence, energy, advanced manufacturing, and semiconductors
    • Framework pact for semiconductor cooperation, including supply chains and manufacturing ecosystems
    • Agreement to promote local currency trade settlement using Indian Rupee and Malaysian Ringgit
    • Expansion of cooperation in counter-terrorism, intelligence sharing, and maritime security
    • Decision to establish an Indian Consulate General in Malaysia
    • Malaysia reiterated support for India’s permanent membership in a reformed UNSC

    Strategic and Economic Significance

    Indo-Pacific and ASEAN

    • Reinforces India’s Indo-Pacific vision
    • Emphasises ASEAN centrality, especially the role of ASEAN

    Trade and Economy

    • Local currency settlement reduces dependence on US dollar
    • Supports India’s push for internationalisation of the Rupee
    • Boosts trade resilience amid global financial volatility

    Technology and Energy

    • Semiconductor cooperation supports India’s electronics manufacturing goals
    • Energy collaboration aligns with clean energy transition and energy security

    Defence and Security Dimension

    • Strengthening defence ties in the maritime domain
    • Cooperation in counter-terrorism with emphasis on zero tolerance and no double standards
    • Enhances stability in the Indo-Pacific sea lanes
    [2011] With reference to “Look East Policy” of India, consider the following statements: 

    1. India wants to establish itself as an important regional player in East Asian affairs. 

    2. India wants to plug the vacuum created by the termination of the Cold War. 

    3. India wants to restore the historical and cultural ties with its neighbours in Southeast and East Asia. 

    Which of the statements given above is/are correct? 

    (a) 1 only (b) 1 and 3 only (c) 3 only (d) 1, 2 and 3