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Subject: Bilateral Relations

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

  • [3rd July 2025] The Hindu Op-ed: Rephasing global development finance

    PYQ Relevance:

    [UPSC 2014] Some of the International funding agencies have special terms for economic participation stipulating a substantial component of the aid to be used for sourcing equipment from the leading countries. Discuss on merits of such terms and if, there exists a strong case not to accept such conditions in the Indian context.

    Linkage: This question directly addresses the modalities and conditionalities of “international funding agencies” which are a core aspect of global development finance. This article  highlights that the “rephasing global development finance” is necessary due to several factors, including the “shrinking ODA and debt crisis”, the profound decline in the “flow of global development finance”.

     

    Mentor’s Comment:  India’s development cooperation with the Global South is undergoing a significant reorientation. After years of steadily expanding economic assistance, rising from $3 billion in 2010–11 to $7 billion in 2023–24, the government is signaling a major policy shift. The Finance Ministry has red-flagged the continued use of Lines of Credit (LoCs), which have historically been a key engagement tool under the Indian Development and Economic Assistance Scheme (IDEAS). With the global liquidity crisis, rising debt distress in developing nations, and a sharp decline in traditional Official Development Assistance (ODA) from major donors like the U.S. and U.K., India is now pushing for a more diversified model. 

    Today’s editorial analyses India’s development cooperation with the Global South. 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’s development cooperation with the Global South has been steadily increasing over the years.

    What are India’s modes of cooperation with the Global South?

    • Capacity Building: Focuses on training, education, and skill development of human resources in partner countries. Eg: The Indian Technical and Economic Cooperation (ITEC) programme provides training to officials from over 160 countries in various sectors like IT, agriculture, and governance.
    • Technology Transfer: Sharing India’s innovations, expertise, and cost-effective solutions with Global South nations. Eg: India has shared digital public infrastructure models like Aadhaar and UPI with countries in Africa and Southeast Asia.
    • Market Access: Providing duty-free and preferential access to Indian markets for exports from developing nations. Eg: Under the Duty-Free Tariff Preference (DFTP) scheme, least developed countries (LDCs) benefit from reduced tariffs when exporting to India.
    • Grants: Non-repayable financial assistance offered for key infrastructure or social sector projects. Eg: India provided grants for building parliament buildings in countries like Afghanistan and Mali.
    • Concessional Finance (Lines of Credit – LoCs): India extends low-interest loans to partner countries for development projects under the IDEAS (Indian Development and Economic Assistance Scheme). Eg: India extended LoCs for railway projects in Africa (like in Mozambique and Senegal) and for solar energy projects under the International Solar Alliance (ISA).
    Note: IDEAS is a flagship initiative of the Government of India designed to promote development cooperation with partner countries, especially in the Global South, by extending Lines of Credit (LoCs) on concessional terms.

    Why is the relevance of Lines of Credit (LoCs) under IDEAS being reconsidered?

    • Rising Sovereign Debt and Repayment Challenges: Many partner countries in the Global South are facing sovereign debt crises, reducing their capacity to repay concessional loans. Eg: During the G-20 summit, India raised concerns over the unsustainable debt levels in Africa and small island nations, signalling caution in issuing new LoCs.
    • Strain on Indian Public Finances: India borrows from global capital markets and extends credit at concessional rates under IDEAS, absorbing the interest differential. With global liquidity tightening, this model has become fiscally burdensome. Eg: The Finance Ministry flagged the increasing fiscal burden of absorbing interest costs in the 2025–26 budget, suggesting a shift away from LoCs.
    • Unpredictability in Global Capital Markets: Fluctuations in global interest rates and capital availability have made it difficult to maintain concessional lending under predictable terms. Eg: Due to the rising cost of borrowing post-COVID, India finds it less viable to sustain concessional credit lines compared to more flexible grant-based or Triangular Cooperation (TrC) models.

    How has the decline in Official Development Assistance (ODA) impacted global development finance?

    • Reduction in Available Funding for Development Projects: ODA has dropped significantly from $214 billion in 2023 to an expected $97 billion, a ~45% decline, leading to fewer resources for critical development programmes, especially in least developed countries (LDCs).
    • Setback to Sustainable Development Goals (SDGs): The financing gap for SDGs has widened, rising from $2.5 trillion in 2015 to over $4 trillion in 2024. With limited ODA, progress toward achieving the 2030 Agenda remains off track, especially after COVID-19 and global shocks.
    • Increased Vulnerability of Debt-Stressed Nations: The shrinking flow of concessional finance has made it harder for debt-ridden nations to access affordable funding, jeopardizing development progress and worsening existing economic vulnerabilities.

    What is Triangular Cooperation (TrC)?

    Triangular Cooperation (TrC) is a development model that brings together three key actors:

    • A traditional donor from the Global North (e.g., Germany, Japan, USA)
    • A pivotal country from the Global South with development experience (e.g., India, Brazil, Indonesia)
    • A partner country, usually another developing or least developed country, which receives the support

    What is the role of Triangular Cooperation (TrC)?

    • Bridges Global North and South: Triangular Cooperation brings together a traditional donor from the Global North, a pivotal country from the Global South (like India), and a partner country (often another developing nation). It creates inclusive platforms for shared learning, mutual respect, and context-specific solutions.
    • Promotes Cost-Effective and Impactful Development: TrC enables the co-creation of development solutions that are tailored to local needs while combining technical expertise, financial resources, and implementation experience from all three partners. This leads to cost-effective and sustainable outcomes. Eg: India and Germany have implemented TrC projects in countries like Cameroon, Ghana, Malawi, and Peru.
    • Expands India’s Development Diplomacy: TrC allows India to leverage partnerships with countries such as Germany, UK, EU, and Japan to implement projects in third countries, enhancing India’s role as a global development partner. It aligns with India’s vision of a Global Development Compact and was promoted during its G-20 presidency.

    How can India leverage partnerships through TrC to enhance its development diplomacy? (Way forward)

    • Strengthening Strategic Alliances and Global Presence: India can collaborate with traditional donors like Germany, Japan, the UK, and the EU to implement development projects in third countries, enhancing its image as a reliable global development partner and expanding its geopolitical influence.
    • Promoting Scalable, Cost-Effective Solutions in the Global South: By combining India’s technical expertise with Northern financial resources, TrC enables context-specific, demand-driven projects in areas like energy, health, and education, aligning with India’s vision of a Global Development Compact.

     

  • [28th June 2025] The Hindu Op-ed:  A China-led trilateral nexus as India’s new challenge

    PYQ Relevance:

    [UPSC 2017] ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor.

    Linkage: It focuses on how China uses its economic power to gain strategic and military advantages, and how this affects India, its neighbor. The article show that Pakistan heavily depends on China for money, support, and infrastructure. With China’s backing, Pakistan could pose new terrorism and security threats to India.

     

    Mentor’s Comment:  China recently held a three-country meeting with Pakistan and Bangladesh in Kunming, soon after a similar one with Pakistan and Afghanistan. These talks show that China is trying to increase its influence in South Asia by bringing India’s neighbours closer, especially as India’s ties with Bangladesh are tense and India is becoming more active in Afghanistan. This reminds us of Cold War-style strategies, where countries tried to surround rivals. As India takes strong action against terrorism and defends its regional interests, China’s new meetings seem to show not just strategy, but also nervousness about India’s growing power.

    Today’s editorial talks about the recent meeting between China, Pakistan, and Bangladesh. 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?

    Last week, China, Pakistan, and Bangladesh met together for the first time in a three-country meeting held in Kunming, China.

    What are China’s goals behind trilateral talks with Pakistan and others?

    • Expand Regional Influence: China aims to increase its geopolitical footprint in South Asia by leading trilateral forums.
    • Contain India’s Rise: Trilateral talks help China keep India distracted by regional tensions, limiting its strategic outreach and diplomatic bandwidth. Eg: China’s coordination with Pakistan and Afghanistan shortly after India’s Operation Sindoor aimed to show Pakistan as a regional stakeholder and challenge India’s dominance.
    • Promote BRI and Economic Interests: By drawing countries like Afghanistan and Bangladesh closer, China seeks to push its Belt and Road Initiative and related infrastructure investments. Eg: Discussions with Afghanistan have included extending the China-Pakistan Economic Corridor (CPEC) through Afghan territory.

    Why is China increasing regional engagement amid India’s rise?

    • To Counter India’s Strategic Clout: As India grows economically and diplomatically, China seeks to undermine its influence in neighbouring countries. Eg: China’s trilateral with Pakistan and Bangladesh followed India’s strengthening ties with Afghanistan and regional powers.
    • To Exploit Shifting Political Landscapes: China is leveraging regime changes in countries like Afghanistan and Bangladesh to draw them closer into its orbit. Eg: After the regime change in Bangladesh (2024), China intensified efforts to engage Dhaka through trilaterals.
    • To Protect and Expand Economic Interests: Rising Indian assertiveness challenges China’s economic initiatives, especially BRI projects. Regional engagement helps safeguard these investments. Eg: China wants to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan to secure trade routes and regional access.

    How does the China-Pakistan nexus affect India’s security strategy?

    • Increased Two-Front Security Threat: The China-Pakistan partnership forces India to prepare for simultaneous threats on both western and northern borders, complicating military planning. Eg: During Operation Sindoor (2025), Pakistan used Chinese-made drones, radars, and fighter jets, requiring India to recalibrate its defence posture.
    • Diplomatic Isolation Attempts: China often backs Pakistan at global platforms, shielding it from international scrutiny, especially on terror-related matters. Eg: China blocked UN resolutions targeting Pakistan-sponsored terrorists, limiting India’s global counterterrorism diplomacy.
    • Regional Instability via Trilateral Engagements: China promotes trilateral meetings involving Pakistan and India’s neighbours to sideline New Delhi and create regional pressure points. Eg: The China-Pakistan-Bangladesh trilateral aims to undermine India’s influence in South Asia and divert attention from long-term strategic goals.

    What are the developments that show India countering China’s regional influence?

    • Assertive Military and Diplomatic Response: India has adopted a proactive approach to respond to security threats and Chinese intrusions. Eg: In response to the Pahalgam terror attack, India launched Operation Sindoor (2025) and suspended the Indus Waters Treaty, restricted port access, and took military action, signalling firm redlines.
    • Strengthening Ties with Neighbours: India is engaging constructively with its neighbours to limit Chinese outreach and reinforce strategic trust. Eg: Despite past tensions, India supported Nepal’s energy cooperation with Bangladesh and re-engaged with Maldives and Sri Lanka, reinforcing regional goodwill.
    • Coalition Building with Like-Minded Nations: India is enhancing cooperation with democratic allies to counterbalance China’s strategic footprint in South Asia. Eg: India has deepened ties through platforms like QUAD, and built defence and intelligence partnerships with countries like the U.S., Japan, and Australia, strengthening its regional deterrence.

    Who among the neighbours are shifting towards China?

    • Pakistan: Deeply aligned with China for military, economic, and diplomatic support. Eg: Over $29 billion in loans, and 80% of arms imports from China.
    • Bangladesh: After the 2024 regime change, it has shown increasing economic and political engagement with China. Eg: Joined trilateral talks with China and Pakistan, indicating a shift despite India’s past close ties.
    • Afghanistan: Shifted closer to China-Pakistan axis after the Taliban takeover (2021) and again after 2024 regime changes.

    Way forward: 

    • Enhance Strategic Partnerships in South Asia: India should build stronger bilateral ties with its neighbors through infrastructure support, trade cooperation, and regional connectivity projects. Strengthening initiatives like BIMSTEC and Act East Policy can counterbalance China’s influence.
    • Assert Regional Leadership Through Security and Diplomacy: India must continue to lead anti-terror cooperation, defend regional sovereignty, and set clear redlines for any hostile alignments. At the same time, it should promote inclusive regional forums that prioritize peace and mutual development.

  • India to alter Ganges Water Sharing Treaty with Bangladesh

    Why in the News?

    India is preparing to reassess and renegotiate the Ganges Water Sharing Treaty with Bangladesh, which is set to expire in 2026, completing its 30-year term.

    About the Ganga Water Agreement (1996):

    • Signing: It was signed on December 12, 1996, by PM H. D. Deve Gowda (India) and PM Sheikh Hasina (Bangladesh) to share the Ganga’s dry season flow.
    • Purpose: It aimed to ensure water availability for irrigation, ecology, and navigation in both countries, especially at the Farakka Barrage, which diverts water to sustain the Kolkata Port.
    • Duration: It replaced earlier short-term deals and set a 30-year framework (1996–2026), with a renewal clause by mutual consent.

    Key Terms of the Agreement:

    • Lean Season Period: The treaty applies from January 1 to May 31, with water sharing calculated in 10-day intervals.
    • Sharing Formula at Farakka:
      • ≤ 70,000 cusecs: 50% each
      • 70,000–75,000 cusecs: India gets the remainder after Bangladesh gets 35,000
      • ≥ 75,000 cusecs: India gets 40,000; Bangladesh gets the balance
    • Alternate Sharing: From March 11 to May 10, both countries receive 35,000 cusecs alternately every three 10-day blocks.
    • No Minimum Guarantee: If flow falls below 50,000 cusecs, Article II allows for consultations and emergency adjustments.
    • Monitoring Mechanism: The Joint Rivers Commission (JRC) ensures implementation and dispute resolution.
    • Project Provisions: Both countries may construct water projects for irrigation and navigation.

    Why must India reconsider it?  

    • Treaty Expiry: The treaty ends in 2026, and India wants a revised pact to reflect current demands.
    • Rising Needs: India seeks an additional 30,000–35,000 cusecs due to:
      • Increased irrigation in West Bengal and other states
      • Siltation issues at Kolkata Port
      • Urban and industrial growth
    • Flexibility Concerns: Officials argue the treaty lacks provisions for climate variability and seasonal shortages.
    • State Support: West Bengal supports changes, citing inadequate current allocations.
    • Proposed Change: India may pursue a shorter, more flexible treaty, like its move on the Indus Waters Treaty with Pakistan.

    Implications for Bangladesh:

    • Downstream Vulnerability: Bangladesh faces greater risk from reduced water flow.
    • Historical Shortfalls: Between 1997 and 2016, Bangladesh received less than its share 65% of the time.
    • Potential Consequences:
      • Increased salinity in rivers and farmland
      • Reduced water for fisheries, irrigation, and drinking
      • Navigation issues in the delta
    • Political Sensitivity: Many in Bangladesh already view the treaty as unfair, and further reduction may trigger domestic backlash.
    • Diplomatic Impact: A poorly negotiated outcome could strain India-Bangladesh ties, especially in water diplomacy and cross-border trust.
    [UPSC 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?

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

     

  • Why so many Indian students — especially from Kashmir — go to Iran for higher education

    Why in the News?

    The recent Iran–Israel conflict has again revealed the weaknesses in India’s system of sending students abroad for medical education. Due to the conflict, India had to carry out emergency evacuations of its students from war zones, similar to what was done during the Ukraine crisis under Operation Ganga.

    Why do Indian students, especially Kashmiris, prefer studying medicine in Iran?

    • Affordability and Lower Fees: Studying medicine in Iran is far cheaper than Indian private colleges. Eg: Medical degrees in Iran cost nearly one-tenth of what private institutions in India charge.
    • Cultural and Historical Ties: Kashmir shares strong historical and cultural links with Iran, often referred to as “Iran-e-Sagheer” (Iran Minor). Eg: 13th-century Iranian saint Meer Sayyed Ali Hamadani brought crafts, industries, and Persian influence to Kashmir.
    • Religious and Admission Advantages: Religious affinity due to a shared Shia population eases access for Kashmiri students. Eg: Iran provides admission concessions (Pargees quota) to Kashmiri students based on cultural-religious ties.
    • Historical Connection: Kashmir has long-standing civilisational links with Iran, often called “Iran-e-Sagheer” (Little Iran). Eg: In the 13th century, Meer Sayyed Ali Hamadani, an Iranian saint, brought crafts, culture, and Persian influence to Kashmir.
    • Language and Educational Comfort: The Persian language, once widely used in Kashmir, and similar educational traditions make adaptation easier. Eg: Kashmiri students find Iran’s academic and cultural environment more familiar and accessible compared to Western countries.

    What are the major risks and challenges associated with pursuing medical degrees abroad?

    • Quality of Education Varies: Some foreign universities run dual-tier systems, offering lower-quality courses for international students. Eg: Certain programs are not designed to meet clinical standards required in India or even in the host country.
    • Ineligibility to Practice Locally: Many students graduate from courses that do not allow them to practice in the host country. Eg: A student completing a degree in a university designed only for foreigners may not qualify for local medical licenses.
    • FMGE and Licensing Issues in India: All foreign medical graduates must clear the Foreign Medical Graduate Examination (FMGE), which has a low pass rate. Eg: In 2024, only 25.8% of foreign-trained students passed the FMGE.
    • Lack of Transparency and Regulation: There is no official list of approved foreign colleges, leading to confusion and misinformation. Eg: Students often rely on agents or unverifiable online sources, resulting in enrolment in unrecognised institutions.

    What challenges do foreign-trained doctors face in India?

    • Low Pass Rate in FMGE: Foreign-trained doctors must clear the Foreign Medical Graduate Examination (FMGE) to practice in India, which has a historically low success rate. Eg: In 2024, only 25.8% of candidates passed the FMGE, reflecting gaps in practical training and knowledge.
    • Mismatch in Course Duration & Curriculum: Some foreign degrees do not meet the National Medical Commission (NMC) norms like minimum 54-month duration and one-year internship. Eg: Degrees from the Philippines (48 months) were not recognised, leading to rejection of registration applications.
    • Employment and Clinical Training Gaps: Even after passing FMGE, doctors struggle with employment due to perceived inferior clinical exposure and lack of hands-on patient care experience. Eg: Many hospitals hesitate to hire FMG doctors citing practical skill deficiencies.

    Way forward: 

    • Establish Clear Guidelines and Approved Lists – The National Medical Commission (NMC) should release an official list of recognised foreign medical institutions and standardise eligibility norms.
    • Enhance FMGE Support and Skill Bridging – Provide preparatory support, internships, and clinical exposure to help returning students meet Indian medical practice standards.

    Mains PYQ:

    [UPSC 2023] Indian diaspora has scaled new heights in the West. Describe its economic and political benefits for India.

    Linkage: The Indian diaspora, which includes individuals who have moved abroad for higher education and subsequently stayed. Their presence abroad contributes to economic and political benefits for India.

  • [21st June 2025] The Hindu Op-ed: Lighting the spark in U.K.-India cultural relations

    PYQ Relevance:

    [UPSC 2019] What makes Indian society unique in sustaining its culture? Discuss.

    Linkage: The article emphasizes India’s “deep cultural heritage” and states that India is “uniquely positioned to lead” in the creative economy, reaffirming a “shared creative spirit” with the UK. This question probes the underlying strengths and uniqueness of Indian culture that enable such leadership and sustained collaboration.

    Mentor’s Comment:  The landmark moment for India-UK ties, not only with the ratification of the long-awaited Free Trade Agreement but more so with the signing of the Programme of Cultural Cooperation (POCC) between both nations. This represents a significant cultural pivot and recognizes creative industries as drivers of economic growth, inclusion, and diplomacy. It also places India, with its deep heritage and burgeoning digital skills, in a leadership role within the global creative economy — a sector projected to constitute 10% of global GDP by 2030. The POCC opens up a digital-cultural corridor between India and the UK, at a time when cross-border cultural diplomacy is becoming central to international relations.

    Today’s editorial analyses the Free Trade Agreement between the UK and India. This content would help in GS Paper I (Indian Society), GS Paper II (International Relations) and GS Paper III ( Indian Economy)  in the mains Paper.

    _

    Let’s learn!

    Why in the News?

    In May 2024, India and the United Kingdom approved their long-awaited Free Trade Agreement, marking a major step forward in their economic relationship.

    What is the Programme of Cultural Cooperation (POCC)?

    • POCC is a cultural agreement signed on May 2 between U.K. Secretary of State for Culture Lisa Nandy and India’s Minister for Culture Gajendra Singh Shekhawat.
    • It aims to strengthen India-U.K. cultural ties and enhance cooperation across the creative economy. It represents a shared commitment to cross-cultural collaboration and economic growth.

    What are its main focus areas?

    • Digital Technologies for Culture: Focuses on using emerging tools like AI, AR/VR, and digital platforms to preserve and share cultural experiences. Eg: Creating virtual museum tours or AI-powered cultural archives.
    • Exhibitions and Collections: Promotes collaboration between museums and institutions to share art, history, and heritage collections. Eg: Joint exhibitions by the British Museum and Indian cultural institutions.
    • Performances and Events: Encourages cultural exchanges through music, dance, theatre, and film festivals. Eg: Participation of Indian artists in the Serendipity Arts Festival – Birmingham chapter.
    • Cultural Property: Aims to protect and restore heritage artifacts and traditions, including tackling illicit trafficking. Eg: UNESCO–Royal Enfield’s Himalayan Knot project conserving textile traditions.
    • Sustainability: Supports environmentally responsible practices in cultural projects and promotes green initiatives in the arts. Eg: Sustainable exhibition design and eco-friendly performances during India-UK cultural collaborations.

    What is the creative economy? 

    The creative economy includes sectors such as art, music, design, film, architecture, publishing, fashion, advertising, digital media, software, and crafts—all of which rely on individual creativity, skill, and talent. Eg: Bollywood contributes to both India’s cultural identity and economy through movies, music, and dance.

    Why is the creative economy important for both India and the U.K.?

    • Drives Economic Growth: The creative economy is projected to contribute 10% of global GDP by 2030. Eg: India’s creative sector is already worth $35 billion, and is rapidly expanding with global collaborations.
    • Generates Employment: It is a major employment multiplier, especially in sectors like film, design, digital content, and heritage arts. Eg: In India, it employs 8% of the workforce, second only to agriculture.
    • Boosts Cross-Cultural Collaboration: Fosters partnerships and mutual understanding between nations through shared cultural experiences. Eg: The POCC agreement strengthens UK-India ties via co-created exhibitions and performances.
    • Supports Innovation through Technology: Integrates AI, AR/VR, and digital platforms into creative practices, making the sector dynamic and future-ready. Eg: The British Council’s Arts and Technologies report calls for embedding digital tools in India’s creative education.
    • Promotes Inclusive Development: Engages non-metro regions and artisan communities, helping balance regional inequalities. Eg: Creative hubs in Badgam (J&K) and Tiruppur (TN) show the power of decentralised cultural growth.

    How are new technologies shaping the creative sector?

    • Enhancing Cultural Experiences through AR/VR: Augmented and virtual reality bring immersive experiences to museums, exhibitions, and performances. Eg: Museums in the U.K. use VR to recreate historical events, allowing virtual tours and deeper engagement.
    • Expanding Global Reach via Digital Platforms: Digital platforms enable creators to reach global audiences instantly. Eg: Indian artists now showcase their work on OTT platforms and global streaming services.
    • Boosting Innovation in Storytelling with AI: Artificial Intelligence helps generate content, animation, music, and design, improving efficiency and creativity. Eg: AI tools are used in film editing and scriptwriting to speed up production.
    • Creating New Art Forms and Jobs: Tech-based sectors like gaming, digital art, and interactive media are emerging as new creative industries. Eg: India’s gaming sector, driven by youth and mobile access, is becoming a major employer in digital creativity.
    • Transforming Creative Education: New technologies are integrated into curricula to train the next generation of artists and designers. Eg: The British Council’s report urges India to include tech-based tools in creative education programs.

    Way forward: 

    • Promote Education & Skill Development: Invest in creative education, vocational training, and digital literacy to build a future-ready workforce equipped for sectors like design, animation, gaming, and digital content.
      Eg: Setting up creative arts institutes and expanding courses in AR/VR, AI, and multimedia design.
    • Strengthen International Collaboration & Policy Support: Foster cross-border partnerships and provide policy incentives for creative industries to innovate, grow, and access global markets. Eg: Agreements like the India–U.K. Programme of Cultural Cooperation (POCC) help promote cultural exchangeand creative trade.

  • Explained: Significance of PM Modi’s Croatia visit, and India’s historic ties with the country

    Why in the News?

    Prime Minister is visiting Croatia as part of his three-nation tour, which includes Cyprus and Canada. It is his first foreign trip since Operation Sindoor and the first-ever by an Indian PM to Croatia.

    Why is India’s PM’s visit to Croatia strategically important for India-Europe ties?

    • First-Ever Visit Signals Diplomatic Priority: PM of India visit marks the first by an Indian Prime Minister to Croatia, signalling India’s intent to strengthen ties with smaller but strategically located EU nations. Eg: This visit follows recent high-level engagements with the EU, including EAM S. Jaishankar’s tour of key European nations and the EU chief’s visit to India.
    • Gateway to Broader European Engagement: Croatia’s location on the Adriatic Sea and participation in EU and NATO makes it a vital link for India to access Central, Eastern, and Southern Europe. Eg: Ports like Rijeka and Split could serve as future nodes for the India-Middle East-Europe Economic Corridor (IMEC).
    • Strategic Counter to China’s Growing Presence: The visit is a part of India’s effort to counterbalance Chinese influence in the region through the Belt and Road Initiative (BRI) by building stronger ties with countries like Croatia. Eg: Croatia is part of the Three Seas Initiative (3SI), where India can build alternative trade and energy partnerships.

    What is the significance of Croatia’s location in India’s trade and connectivity plans?

    • Strategic Adriatic Sea Access to Europe: Croatia is located on the Adriatic Sea, offering India a western maritime gateway to Europe and easy access to landlocked Central and Eastern European nations. Eg: Ports like Rijeka, Split, and Ploče can facilitate India-Europe cargo movement, reducing dependence on northern European routes.
    • Link to Trans-European Transport Corridors: Croatia sits at the intersection of the Trans-European Transport Network (TEN-T), enabling smoother logistics and intermodal trade connectivity across the EU. Eg: Goods arriving at Croatian ports can be distributed via rail or road to Germany, Austria, Hungary, and beyond.
    • Potential Hub in the India-Middle East-Europe Economic Corridor (IMEC): Croatia could be a key extension point in IMEC, connecting India to Europe through Middle Eastern and Mediterranean routes. Eg: A route through Adriatic ports would offer faster, diversified supply chain options to bypass chokepoints like the Suez Canal.

    How have India-Croatia relations evolved since Yugoslavia’s breakup?

    • Early Recognition and Diplomatic Ties: India was among the first non-European countries to recognise Croatia’s independence in 1992 and quickly established formal diplomatic relations. Eg: The Indian mission in Zagreb opened in 1996, and ties were upgraded to the ambassadorial level by 1998.
    • Continuity of Warm Relations from Yugoslav Era: Friendly ties from the Non-Aligned Movement (NAM) days continued, especially since Marshal Tito (of mixed Croatian and Slovene heritage) had a strong personal rapport with Indian leadership. Eg: Croatia once accounted for two-thirds of India-Yugoslavia trade, laying a historical economic foundation.
    • Stable Relations Amid Croatia’s Western Integration: Despite Croatia’s focus on EU and NATO membership, India maintained cordial ties and engaged through trade, cultural diplomacy, and multilateral platforms. Eg: Croatia joined NATO in 2009 and the EU in 2013, yet bilateral trade and cultural exchanges with India have steadily grown.

    What are the key economic and cultural links between India and Croatia?

    • Growing Bilateral Trade: Economic ties have steadily improved, with bilateral trade increasing from $199.45 million in 2017 to $337.68 million in 2023. Eg: India exports medicines, machinery, chemicals, and apparel, while Croatia exports chemicals, precision instruments, and timber products to India.
    • Deep Cultural and Civilisational Connect: Cultural exchanges trace back centuries, with scholars and missionaries engaging with Indian traditions and languages. Eg: Croatian scholar Ivan Filip Vezdin printed the first Sanskrit grammar in Latin in 1790 after learning from Kerala Brahmins—a reprint was gifted to PM Modi.
    • Academic and Heritage Bonds: Indian culture continues to attract interest in Croatia, particularly in universities and historical architecture. Eg: Croatian involvement in the construction of the Church of Sao Braz in Goa in the 1560s and Indian studies programmes in Croatian academic institutions reflect enduring links.

    Why should India deepen engagement with Central and Eastern Europe amid China’s BRI?

    • Strategic Counter to China’s Expanding Influence: Central and Eastern European (CEE) countries are key participants in China’s Belt and Road Initiative (BRI), increasing Beijing’s geopolitical footprint in the region. Eg: Strengthening ties with countries like Croatia, Poland, and Hungary allows India to offer an alternative partnership model based on mutual respect and balanced trade.
    • Support for India’s Global Aspirations: Many CEE countries support India’s bid for permanent membership in the United Nations Security Council (UNSC)and other multilateral forums. Eg: Engaging with pro-India nations in the EU helps India shape global norms and strengthen its diplomatic leverage.
    • Geostrategic and Economic Gateway to Europe: CEE countries lie at the crossroads of Europe and Asia, making them vital for India’s trade connectivity, energy cooperation, and access to European markets. Eg: Croatia’s role in the Three Seas Initiative (3SI) and its ports linked to Trans-European corridors can serve as hubs for the India-Middle East-Europe Economic Corridor (IMEC).

    Way forward: 

    • Institutionalise Strategic and Economic Dialogue: India should establish regular high-level forums and joint working groups with Croatia and other CEE countries to deepen cooperation in trade, infrastructure, and digital technology.
    • Enhance Cultural and Academic Exchange: Boosting people-to-people ties through scholarships, cultural festivals, and collaborative research will strengthen India’s soft power and foster long-term partnerships across the region.

    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: Prime Minister Modi’s visit to Croatia, an EU member, is highlighted as part of a broader strategy to strengthen India-EU ties. The article explicitly states that this growing importance of India-EU relations comes in the context of the EU “trying to de-risk from China”.

  • Resetting the India-U.S. partnership in uncertain times

    Why in the News?

    India-U.S. ties, once seen as strong and promising, now face a quiet shift. Recent U.S. actions like engaging Pakistan’s military and economic warnings to India have caused concern in Delhi.

    Why does the India-U.S. relationship face a strategic drift despite deep convergence?

    • Transactional Approach Undermines Long-term Trust: The Trump administration’s focus on short-term, deal-based diplomacy contrasts with India’s strategic and civilisational outlook, causing mistrust. Eg: Trump’s unpredictable style — praising one day, criticising the next — makes it difficult for India to navigate the partnership confidently.
    • Return of “India-Pakistan Hyphenation”: The revival of outdated strategic equivalence between India and Pakistan has offended Indian diplomatic efforts to de-hyphenate its rise. Eg: Trump’s offer to mediate on Kashmir post-Operation Sindoor and remarks equating both nations reignited diplomatic concerns in New Delhi.
    • Contradictory Economic and Strategic Signals: Despite promoting Indo-Pacific cooperation, U.S. actions have undermined India’s manufacturing ambitions and H-1B visa interests. Eg: Trump reportedly discouraged Apple from expanding in India, clashing with India’s China-plus-one strategy and investment goals.

    What key factors are straining India-U.S. ties under the Trump administration?

    • Revival of India-Pakistan Equivalence: The U.S. has reverted to “hyphenating” India and Pakistan as strategic concerns, undermining India’s diplomatic efforts to decouple its rise. Eg: Trump’s comments post-Operation Sindoor—offering mediation on Kashmir and warning of nuclear escalation—were seen as diplomatically regressive.
    • Economic Mixed Signals: The Trump administration sent conflicting signals on India’s role in global supply chains, affecting investor confidence. Eg: Trump reportedly discouraged Apple from expanding manufacturing in India, undermining India’s China-plus-one strategy.
    • Restrictive Immigration Stance: The H-1B visa policy, critical to U.S.-India tech ties, has become vulnerable to protectionist rhetoric and political posturing. Eg: Curtailing H-1B visas strains the Silicon Valley–India innovation ecosystem, weakening a pillar of bilateral cooperation.

    How can India manage uncertainties in its U.S. engagement strategy?

    • Pursue Calibrated and Persistent Diplomacy: India must avoid overreaction and focus on quiet, sustained engagement to preserve strategic alignment. Eg: Continued cooperation in defence, Quad, and intelligence sharing can reinforce long-term trust despite short-term irritants.
    • Broaden Strategic Outreach in the U.S: India should strengthen its influence beyond traditional diplomacy by engaging Congress, think tanks, and the Indian-American diaspora. Eg: Leveraging support from Indian-origin U.S. lawmakers helps build bipartisan consensus for stronger ties.
    • Accelerate Domestic Economic Reforms: India must boost its manufacturing, regulatory clarity, and infrastructure to reinforce its attractiveness as a global partner. Eg: Advancing Make in India and supply chain resilience makes India indispensable to U.S. Indo-Pacific strategy.

    Why does the U.S. tilt towards Pakistan concern India’s strategic interests?

    Revival of India-Pakistan Diplomatic Parity (Hyphenation): By treating India and Pakistan as strategic equals, the U.S. threatens to undo India’s efforts to decouple its global risefrom the South Asian rivalry. Eg: Trump’s offer to mediate in Kashmir and mention of India and Pakistan in the same context post-Operation Sindoor reflect regressive diplomacy.

    What steps must India and the U.S. take to revive their strategic partnership? (Way forward)

    • Strengthen Institutional and People-to-People Engagement: Both countries must go beyond government-to-government ties and deepen connections through think tanks, academia, diaspora, and legislative forums. Eg: India leveraging the Indian-American diaspora and policy institutions in Washington can build long-term bipartisan support.
    • Reframe Economic and Immigration Cooperation: Economic reforms in India and predictable immigration policies in the U.S. can boost mutual trust in trade and talent exchange. Eg: Reframing the H-1B visa regime as a tool for mutual innovation rather than political leverage strengthens tech cooperation.
    • Reinforce Shared Strategic Values and Regional Vision: India and the U.S. must revive the moral and strategic purpose of their partnership — promoting a rules-based, democratic, Indo-Pacific order. Eg: Joint initiatives through the Quad and coordination in maritime security reinforce their shared commitment to a free and open Indo-Pacific.

    Mains PYQ:

    [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: This article explicitly highlights a “perceptible drift; subtle yet serious” in the relationship, indicating “uncertain times”. It calls for a “reset, not of fundamentals, but of tone, clarity, and mutual commitment”.

  • [13th June 2025] The Hindu Op-ed: Trump’s tariffs and a U.S.-India trade agreement

    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: The article points out several trade and economic tensions between the U.S. and India. These include disagreements over the actual size of the U.S. trade deficit with India, the increase of tariffs on steel and aluminium imports from 25% and 10% to 50%, which also affects India, and warnings of possible tariffs on Apple products if they are made in India.

     

    Mentor’s Comment:  In a major decision, five small U.S. businesses won a legal case against former President Donald Trump’s wide-ranging tariffs in the U.S. Court of International Trade. On May 28, 2025, the court ruled that the tariffs—ranging from 10% to 135% and affecting over 100 countries—were unconstitutional and illegal. This ruling matters globally, especially for countries like India, now facing increased 50% tariffs on steel and aluminium.

     Today’s editorial focuses on the  US Courts’ decision on tariffs, a key issue relevant to GS Paper II (International Relations) in the UPSC syllabus.

    _

    Let’s learn!

    Why in the News?

    Recently, on May 28, 2025, a U.S. court ruled that the tariffs, ranging from 10% to 135% and applied to over 100 countries, were against the Constitution and not legal.

    What was the legal challenge to Trump’s tariffs?

    • Unlawful Executive Overreach: Five small U.S. businesses challenged Trump’s tariffs at the U.S. Court of International Trade (CIT), arguing that the President exceeded legal authority by imposing tariffs without Congressional approval. Eg: Firms dealing in wines, bicycles, and fishing equipment claimed economic harm.
    • Violation of Separation of Powers: The lawsuit argued that the President’s sweeping tariffs bypassed legislative and judicial checks, undermining the constitutional framework. Eg: The court noted that trade rules must involve Congress, not unilateral executive orders.
    • Misuse of National Emergency Powers: The court ruled that invoking a “national emergency” does not justify rewriting international tariff agreements. Eg: The CIT stated that such powers cannot be used to override trade commitments under WTO rules.

    Why did the court reject the “national emergency” claim?

    • Lack of Legal Basis: The court ruled that there was no statutory authority for the President to impose retaliatory global tariffs under a vague “national emergency.” Eg: Tariffs up to 135% were applied without Congressional sanction.
    • Overreach of Executive Powers: The court stated that invoking national emergency powers cannot allow the President to override trade laws and international commitments. Eg: It held that such use disrupts the constitutional separation of powers.
    • Absence of Real Emergency: The court found no credible evidence of an immediate or actual threat that would justify emergency trade measures. Eg: The cited trade deficit was not a sudden crisis but a long-standing economic condition.
    • Distortion of Trade Deficit Data: The administration failed to account for services and arms trade while citing trade deficits as justification. Eg: U.S. cited a $44.4 billion deficit with India, while it actually runs a $35–40 billion surplus when services are included.
    • Violation of International Obligations: The court emphasized that the tariffs contradicted U.S. commitments under WTO agreements and eroded global trade norms. Eg: The U.S. applied tariffs even to uninhabited territories like the Heard and McDonald Islands, showcasing arbitrariness.

    How did the U.S. justify tariffs on India after WTO talks?

    • National Security Pretext: The U.S. continued to claim national security grounds for the imposition of tariffs, even after WTO rulings against it. Eg: Despite WTO panels rejecting the justification in 2022, the U.S. raised steel and aluminium tariffs to 50% on India.
    • Strategic Trade Leverage: The U.S. argued that enhanced tariffs served as negotiation tools to pressure trade partners into deals. Eg: The U.S. claimed the tariffs on India helped gain leverage in talks to finalize a bilateral trade agreement.
    • Mutually Agreed Solution Bypass: Though India and the U.S. reached a “mutually agreed solution” at the WTO in 2023, the U.S. still extended new tariffs on India. Eg: The 50% tariffs imposed in 2025 contradicted the earlier settlement, undermining trust in WTO dispute resolution.

    Which issues must India address in a U.S. trade deal?

    • Removal of Additional Tariffs: India must ensure that the U.S. removes punitive tariffs on Indian exports like steel and aluminium, currently raised to 50%. Eg: The continuation of high tariffs impacts India’s manufacturing sector and export competitiveness.
    • Digital Services Tax Clarity: India should seek guarantees that its digital services taxes will not face retaliation from the U.S. Eg: U.S. firms operating in India’s tech sector may be affected unless taxation issues are resolved amicably.
    • Protection from Remittance Tax: India needs to negotiate exemption from the proposed 3.5% tax on remittances under the Trump One Big Beautiful Bill (OBBB). Eg: This would impact millions of Indian diaspora workers sending money back home.
    • H-1B Visa Concerns: India must address growing restrictions and backlash against H-1B visas, which are vital for its IT and service industry. Eg: Tech companies rely heavily on H-1B visas for skilled Indian professionals working in the U.S.
    • Cross-Border Services and Data Flows: India must ensure smooth cross-border delivery of services, including clear data flow regulations and digital trade provisions. Eg: This is critical for India’s BPO and fintech industries, which depend on uninterrupted digital transactions.

    Way Forward:

    • Pursue Balanced Trade Negotiations:
      India should negotiate a comprehensive trade deal that protects its strategic sectors, ensures reciprocity, and strengthens economic resilience without compromising on national interests.
    • Strengthen WTO and Multilateral Engagements:
      India must continue to uphold and reform the WTO-based trade framework, using it as a platform to address disputes, promote fair trade practices, and build coalitions with like-minded nations.

  • Is Bangladesh slipping into authoritarianism?

    Why in the News?

    Bangladesh is seeing major political change as interim leader Dr. Muhammad Yunus delays elections to April 2026 and proposes the “July Proclamation” to reform or replace the 1972 Constitution.

    Why is the ‘July Proclamation’ seen as a threat to Bangladesh’s democratic foundations?

    • Lacks Democratic Legitimacy: It is being pushed by an unelected interim regime without a popular mandate or proper parliamentary debate. Eg: Prof. Yunus’ government is not elected, yet is trying to undertake constitutional reforms meant for a legislature.
    • Distorts Historical Legacy: The move seeks to marginalize the legacy of Sheikh Mujibur Rahman and diminish the significance of December (Victory Day) and August (Mujib’s assassination), promoting July as a new political start. Eg: The July Proclamation downplays Bangladesh’s founding narrative to suit a new political agenda.

    What are the risks of an unelected interim government pursuing constitutional reforms?

    • Lack of Legitimacy and Public Mandate: An interim government is not elected by the people and lacks the constitutional authority to undertake major reforms meant for a parliament or constituent assembly. Eg: In Bangladesh, Prof. Yunus’ government is implementing reforms without elections, violating democratic norms.
    • Potential for Power Consolidation: Such reforms can be used to prolong the tenure of the interim regime, sideline opposition, and weaken checks and balances, paving the way for authoritarian rule. Eg: The banning of the Awami League and the extension of election dates to 2026 raise concerns of power entrenchment.
    • Political Instability and Polarisation: Constitutional changes without bipartisan consensus can lead to unrest, legitimacy crises, and deep political divisions. Eg: The BNP, though opposed to the Awami League, is uncomfortable with the July Proclamation, showing a lack of political unity.

    How could the proposed humanitarian corridor affect regional security?

    • Violation of Sovereignty and Military Tensions: A demilitarised humanitarian corridor, especially if monitored by international forces, may be seen as a breach of national sovereignty by host countries.
      Eg: The Bangladesh Army chief objected to international enforcement in the Rakhine region, fearing it would undermine Bangladesh’s sovereignty.
    • Risk of Weapon Smuggling and Armed Group Access: Without effective monitoring mechanisms, such corridors could be exploited by international armed groups to smuggle weapons and infiltrate conflict zones. Eg: Concerns exist that the proposed corridor into Myanmar’s Rakhine province may be misused by armed groups, threatening both Myanmar and Indian border security.
    • Uncertain Aid Distribution and Escalation of Conflicts: There’s no guarantee that humanitarian aid will reach only the intended civilian population (like Rohingya) and not be diverted to militant factions, escalating regional conflicts. Eg: India fears that lack of clarity over corridor enforcement could worsen militancy in the Northeast and Indo-Myanmar border areas.
    Note: The humanitarian corridor to Myanmar’s Rakhine province is a proposed initiative — not yet implemented — and it was publicly supported by Professor Muhammad Yunus, the Chief Adviser to the interim government of Bangladesh, in a speech on June 7, 2025.

    Why does the sidelining of major parties like BNP and Awami League raise democratic concerns?

    • Undermining of Political Representation: Exclusion of major political parties weakens democratic legitimacy and narrows the space for public representation and opposition. Eg: The ban on the Awami League and the marginalisation of the BNP prevents millions of citizens from having their voices heard in the political process.
    • Emergence of Proxy or Unrepresentative Forces: The vacuum created by sidelining mainstream parties can be filled by unaccountable or extremist groups, increasing political instability. Eg: The rise of the National Citizens Party (NCP), referred to as the ‘King’s Party’ by the BNP, raises fears of state-sponsored political manipulation.

    Way forward: 

    • Inclusive Political Dialogue and Election Roadmap: The interim government must initiate an inclusive dialogue involving all major political parties, including the BNP and Awami League, to build consensus on constitutional reforms and ensure free and fair elections.  
    • Limit Powers of the Interim Government: Clearly define and restrict the mandate of the interim government to conduct elections only, avoiding any major constitutional or policy decisions that should be left to an elected Parliament.

    Mains PYQ:

    [UPSC 2013] Critically examine the compulsions which prompted India to play a decisive roles in the emergence of Bangladesh.

    Linkage: Understanding India’s historical role is crucial for comprehending the current political landscape in Bangladesh, especially as the interim government seems to want to ensure “that the legacy of 1971.

  • Bad blood India and Canada must use every opportunity to reset ties

    Why in the News?

    Prime Minister’s upcoming visit to Kananaskis (Canada), Alberta, for the G-7 outreach summit is an important chance for India and Canada to improve their diplomatic relations.

    What led to the deterioration of India-Canada relations since 2023?

    • Assassination Allegations: Canadian Prime Minister Justin Trudeau publicly alleged that Indian government agents were involved in the assassination of Khalistani activist Hardeep Singh Nijjar on Canadian soil, without providing conclusive evidence.
    • Diplomatic Fallout: In response to the allegations, both countries reduced their diplomatic staff to one-third, significantly weakening diplomatic engagement and services.
    • Suspension of Key Agreements: Canada suspended negotiations for a Free Trade Agreement (FTA) with India, while India temporarily stopped issuing visas to Canadian citizens, citing security threats to Indian diplomats.
    • Naming of Senior Indian Official: The Royal Canadian Mounted Police (RCMP) reportedly named Home Minister Amit Shah in the conspiracy, further escalating tensions and hardening positions on both sides.
    • Historical and Diaspora-linked Frictions: The long-standing Khalistan issue and alleged Khalistani extremism in Canada aggravated India’s concerns, especially given the large Indian diaspora and the perceived lack of action by Canadian authorities.

    Why is PM Modi’s visit to the G-7 summit in Canada significant for bilateral ties?

    • Signals a Diplomatic Reset: Inviting Modi marks a deliberate attempt by Canada to reopen diplomatic channels after relations plummeted following the 2023 Nijjar incident. Eg: Prime Minister Carney’s invitation—despite ongoing tensions—was described as coming at the last-minute, yet with careful back-channel diplomacy to avoid embarrassment.
    • Re-emphasizes India’s Global Economic Role: Carney stressed that India is the world’s 5th-largest economy and central to global supply chains. Including India in G-7 discussions underscores its economic and geopolitical relevance. Eg: Carney asserted that India’s presence was essential to dialogues on energy security, critical minerals, AI, and infrastructure.
    • Creates a Platform for Sensitive Law Enforcement Dialogue: The G-7 summit provides a high-level platform to initiate the planned law enforcement dialogue, a key mechanism to address the Nijjar case and broader security-related concerns.

    Who are the key stakeholders involved in the India-Canada diplomatic reset?

    • Prime Minister of India: Represents India at the G-7 and the potential diplomatic outreach.
    • Prime Minister Mark Carney: Initiator of the summit invite; key to Canada’s effort to normalize ties.
    • Law enforcement agencies: Both sides agreed to a “law enforcement dialogue” to address allegations and threats.
    • Diaspora communities: The 1.86 million-strong Indian community in Canada serves as a bridge between the two nations.
    • Trade and diplomatic negotiators: Officials working behind the scenes to restore dialogue on trade and diplomacy.

    How can justice be pursued while maintaining diplomatic respect?

    • Facilitate Law Enforcement Dialogue Through Official Channels: Both countries should engage in structured and confidential legal cooperation to address allegations without public confrontation. Eg: Canada and India have agreed to a “law enforcement dialogue” where sensitive issues like the Nijjar caseand threats to Indian diplomats can be discussed respectfully.
    • Avoid Public Accusations Before Due Process: Governments must refrain from making unverified public allegations that escalate tensions and damage bilateral trust. Eg: Canada’s public statement in 2023 about Indian involvement in Nijjar’s death, without conclusive evidence, led to a sharp diplomatic fallout.
    • Restore Diplomatic Presence to Normal Levels: Reinstating high commissioners and full diplomatic staff enables better communication and prevents misunderstandings during sensitive investigations. Eg: Both countries had reduced their mission strength by two-thirds; restoring these positions is key to pursuing justice without compromising diplomacy.

    How can both countries rebuild trust and restart cooperation? (Way forward)

    • Resume Diplomatic Engagement and Dialogue Mechanisms: Reinstating high commissioners and activating official dialogues like law enforcement and trade talks will help normalize relations. Eg: The proposed law enforcement dialogue and discussions on restoring trade negotiations signal mutual willingness to rebuild ties.
    • Prioritize People-to-People and Economic Links: Focusing on shared interests such as the Indian diaspora, education, and investment cooperation can help overcome political setbacks. Eg: With 1.86 million people of Indian origin in Canada and strong business partnerships, both nations can leverage these ties for renewed cooperation.

    Mains PYQ:

    [UPSC 2023] Indian diaspora has scaled new heights in the West. Describe its economic and political benefits for India.

    Linkage: A Diplomatic Reset at the G-7″ explicitly states that India and Canada are “inextricably bound by their people” and that “over 1.86 million [people of Indian origin] are settled in Canada, but remain connected to India”. Canada is a significant Western country where the Indian diaspora has a strong presence. Therefore, discussing the economic and political benefits for India from its diaspora in the West would directly involve the Canada-India context, including how this diaspora can play a role in improving strained bilateral ties.