💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Subject: International Relations

  • India–Canada 10 Year Uranium Supply Deal

    Why in the News

    Narendra Modi and Mark Carney announced a 1.9 billion dollar, 10 year uranium supply agreement during bilateral talks in New Delhi, alongside renewed efforts to conclude a Comprehensive Economic Partnership Agreement.

    Key Highlights for Prelims

    1. Uranium Supply Agreement

    • Supplier: Cameco
    • Quantity: ~10,000 tonnes
    • Duration: 2027 to 2035
    • Value: 1.9 billion dollars
    • Purpose: Fuel for Indian nuclear power reactors
    • Earlier deal: 2,700 tonnes between 2015 and 2020.

    2. CEPA Negotiations

    • Terms of Reference issued.
    • Target: Conclude CEPA within 2026.
    • Aim: Double bilateral trade by 2030.

    3. Strategic Energy Partnership

    • Covers: Uranium supply, Renewable energy, LPG, and Critical and emerging technologies
    • Canada to join: International Solar Alliance and Global Biofuel Alliance.

    4. Security Cooperation

    • Joint Working Group on Counterterrorism to meet soon.
    • Focus on violent extremism and organised crime.

    Diplomatic Context

    • Ties strained after allegations linked to the killing of Hardeep Singh Nijjar.
    • India rejected fresh allegations by Canadian agencies.
    • Visit aimed at rebuilding “strategic trust”.
    [2020] In India, why are some nuclear reactors kept under “IAEA Safeguards” while others are not? (a) Some use uranium and others use thorium 

    (b) Some use imported uranium and others use domestic supplies 

    (c) Some are operated by foreign enterprises and others are operated by domestic 

    (d) Some are State-owned and others are privately-owned

  • War in West Asia: Why Insurers Are Cancelling War Risk Covers as Ships Avoid Hormuz

    Why in the News

    Escalating conflict involving Iran, Israel and the United States has led global shipping lines to suspend or divert vessels from the Strait of Hormuz, while insurers rush to cancel war risk covers.

    What Is Happening?

    • Major container carriers have halted Hormuz transits.
    • Some vessels reversed course mid voyage.
    • Insurers issued war risk cancellation notices even before markets reopened.
    • Tanker hit near Oman, worsening risk perception.
    • Around 170 container ships are reportedly inside the strait, facing departure restrictions.

    Why Strait of Hormuz Matters

    • One of the world’s most critical oil chokepoints.
    • Connects Persian Gulf to Arabian Sea.
    • Large share of global crude oil and LNG trade passes through it.
    • Disruption affects energy prices, freight rates and global supply chains.

    Why Insurers Are Cancelling War Risk Covers

    • Sharp Rise in Risk

        • War risk premiums in the Gulf were around 0.25% of vessel value.
          Now expected to jump up to 50%.
        • Example: For a 100 million dollar ship. Premium may rise from 250,000 dollars to 375,000 dollars per voyage.

    • Anticipation of Escalation

        • Missile strikes and drone attacks increase probability of vessel damage.
        • Ports in Israel also facing higher risk premiums.
        • Insurers prefer to cancel existing covers and reprice contracts at higher rates.

    • Legal and Financial Safeguard

      • War risk insurance is separate from standard marine insurance. Insurers can issue short notice cancellation during extraordinary events.

    Impact on Global Trade

    • Shipping delays and rerouting from Suez Canal.
    • Higher freight and insurance costs.
    • Potential spike in crude oil prices.
    • Inflationary pressure globally.

    Implications for India

    • India imports a large share of crude oil from the Gulf.
    • Shipping cost increase can widen trade deficit.
    • Energy inflation risk.
    • Strategic petroleum reserves become important.

    Prelims Pointers

    • Strait of Hormuz lies between Iran and Oman.
    • It is a narrow maritime chokepoint.
    • TEU stands for Twenty foot Equivalent Unit.
    • War risk insurance covers losses from war, piracy and armed conflict.
    [2024] Consider the following statements: Statement-I: Sumed pipeline is a strategic route for Persian Gulf oil and natural gas shipments to Europe. 

    Statement-II: Sumed pipeline connects the Red Sea with the Mediterranean Sea. 

    Which one of the following is correct in respect of the above statements? 

    (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I 

    (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I 

    (c) Statement-I is correct, but Statement-II is incorrect 

    (d) Statement-I is incorrect, but Statement-II is correct

  • Iran–Israel Escalation After Killing of Khamenei

    Why in the News

    Iran launched missile and drone strikes across Israel and parts of the Gulf after the reported killing of Supreme Leader Ayatollah Ali Khamenei in U.S. and Israeli bombardment, triggering a widening regional conflict.

    What Happened

    • U.S. and Israeli strikes hit targets in Tehran.
    • Iran retaliated with missiles targeting Israel and Gulf states hosting U.S. forces.
    • Israel vowed “non-stop” strikes on Iranian leadership and military sites.
    • Casualties reported in Israel, Iran, and among U.S. personnel.

    Leadership Transition in Iran

    • President Masoud Pezeshkian announced an interim leadership council.
    • Foreign Minister Abbas Araghchi said a new Supreme Leader would be chosen soon.
    • Ayatollah Alireza Arafi named to interim council.
    • Permanent leader to be elected by the Assembly of Experts.

    Wider Regional Impact

    • Explosions heard in Tel Aviv; strike reported in Beit Shemesh.
    • Shrapnel and debris incidents reported in Abu Dhabi.
    • Attacks extended to Oman.
    • U.S. President Donald Trump warned of severe retaliation if Iran escalates further.

    Strategic Significance

    • Raises risk of full-scale regional war in West Asia.
    • Direct involvement of U.S. forces increases geopolitical stakes.
    • Implications for global oil supply and maritime security in the Gulf.
    • Potential impact on India’s energy security and diaspora in the region.
    [2023] Consider the following statements: 

    Statement-I: Israel has established diplomatic relations with some Arab States. 

    Statement-II: The ‘Arab Peace Initiative’ mediated by Saudi Arabia was signed by Israel and Arab League. 

    Which one of the following is correct in respect of the above statements? 

    (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I 

    (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I 

    (c) Statement-I is correct but Statement-II is incorrect 

    (d) Statement-I is incorrect but Statement-II is correct

  • [28th February 2026] The Hindu OpED: International law is not dead, its rules stay resilient

    PYQ Relevance

    [UPSC 2025] The reform process in the United Nations remains unaccomplished because of the delicate imbalance of East and West and entanglement of the USA vs. Russo-Chinese alliance.” Examine and critically evaluate the East-West policy confrontations in this regard.

    Linkage: This question directly examines power politics within the UN system, linking to debates on institutional reform, legitimacy, and the resilience of international law. It connects themes of multilateralism, UNSC reform, and geopolitical contestation shaping global governance.

    Mentor’s Comment

    Debates over the resilience of international law reflect deeper tensions within the contemporary global order. While powerful states increasingly test legal limits, the institutional architecture of treaties, courts, and multilateral frameworks continues to regulate global conduct. The issue is not the disappearance of international law, but the contestation of its authority in an era of geopolitical realignment.

    Why in the News?

    Recent conflicts, including Russia-Ukraine war (2022), Israel’s military actions in Gaza, tensions in West Asia, and renewed U.S.-Iran hostility, have intensified debates over the effectiveness of international law. Repeated breaches of the UN Charter’s prohibition on the use of force have raised concerns about the credibility of the post-1945 rules-based global order.

    What is Article 2(4) of the UN Charter?

    It prohibits UN Member States from threatening or using force against the territorial integrity or political independence of any state, or in any manner inconsistent with UN purposes. This cornerstone of international law aims to prevent war, uphold sovereign equality, and promote peaceful dispute resolution. 

    Key Aspects of the Prohibition

    1. Scope: It prohibits the threat or use of armed force in international relations.
    2. Protected Interests: Actions against a state’s territorial integrity (invasion, occupation) or political independence are strictly forbidden.
    3. Forms of Force: Prohibited actions include direct military action, invasion, blockade, and indirect use of force through armed groups.
    4. Cyber Operations: Cyber attacks that cause physical damage, injury, or death are considered violations of this article.
    5. Exceptions: The prohibition is not absolute; lawful exceptions include authorization by the UN Security Council (Chapter VII) and inherent self-defense against an armed attack (Article 51).

    Has the Prohibition on Use of Force Under Article 2(4) Lost Its Normative Authority?

    1. Article 2(4) of UN Charter: Prohibits threat or use of force in international relations; remains binding on all UN member states.
    2. Cold War Context: Despite proxy wars, the U.S. and USSR rarely abandoned legal justification frameworks.
    3. Post-1990 Expansion of Self-Defence: U.S. expanded interpretation of anticipatory self-defence (1990s-2000s) in Afghanistan (2001) and Iraq (2003).
    4. Contemporary Violations: Russia-Ukraine conflict (2022) and West Asian conflicts challenge Charter principles.
    5. Continuity of Norms: Even powerful states frame actions within legal narratives, indicating normative pull of law.

    Does Legalisation of International Relations Constrain Powerful States?

    1. Legalisation Process: Institutional frameworks compel states to justify conduct within international law.
    2. Domestic Anchoring: International norms resonate through domestic constitutional systems.
    3. Agency of Weaker States: Legal frameworks enable smaller states to question powerful states in multilateral forums.
    4. Judicialisation: Growth of international courts institutionalises dispute resolution.
    5. Example: International Criminal Court prosecutions; African Court on Human and Peoples’ Rights regional accountability mechanisms.

    Is Contemporary Populist-Authoritarianism a Structural Threat to International Law?

    1. Normative Rejection: Populist regimes openly question liberal constitutional order.
    2. U.S. Withdrawal Trends: Exit from international agreements during the Trump presidency (e.g., Paris Agreement, WHO).
    3. Geopolitical Assertion: Russia and others reject Western-led normative frameworks.
    4. Shift from Justification to Defiance: Reduction in effort to legally justify actions.
    5. Risk: Weakening compliance culture in multilateral institutions.

    Beyond the UN Charter, How Extensive is International Law’s Regulatory Reach?

    1. Trade Governance: Free Trade Agreements; India-EU negotiations ongoing.
    2. Maritime Governance: High Seas Treaty (2023) strengthens marine biodiversity protection.
    3. Global Health: Pandemic Agreement negotiations aim to enhance preparedness.
    4. Climate Governance: Paris Agreement institutionalises nationally determined contributions (NDCs).
    5. Arms Control: Chemical and Biological Weapons Conventions regulate prohibited weapons.
    6. Outer Space Law: Governs peaceful use and liability norms.

    Do International Courts Demonstrate Institutional Resilience?

    1. International Criminal Court (ICC): Prosecutes genocide, war crimes, crimes against humanity.
    2. Regional Courts: African Court on Human and Peoples’ Rights strengthens regional human rights enforcement.
    3. Dispute Settlement: WTO dispute mechanism institutionalises trade compliance (though Appellate Body crisis persists).
    4. Peaceful Resolution: Courts reduce reliance on armed conflict.
    5. Continuity: Judicial processes operate independent of media attention.

    Does International Law Operate Quietly Despite Political Breaches?

    1. Silent Functioning: Enables cross-border trade, aviation, communication networks.
    2. Everyday Governance: Facilitates migration, shipping, investment flows.
    3. Systemic Integration: Supports global supply chains.
    4. Structural Embeddedness: Law operates beyond headline conflicts.
    5. Institutional Persistence: Law-making processes continue despite geopolitical tensions.

    Conclusion

    International law faces visible strains due to geopolitical rivalries and selective compliance. However, its treaties, courts, and institutional frameworks continue to regulate trade, climate action, maritime governance, and human rights. The current phase reflects contestation and power politics, not the collapse of the rules-based international order.

  • Taliban & terror: How Pakistan came to declare ‘open war’ on Afghanistan

    Why in the News?

    Pakistan launched cross-border airstrikes in Afghanistan’s Khost and Paktika provinces after a surge in Tehreek-e-Taliban Pakistan (TTP) attacks that killed nearly 274 people in recent months. The Afghan Taliban retaliated, marking one of the most direct military confrontations between the two since 2021 and signaling a breakdown of post-Taliban counter-terror coordination.

    What explains the recent escalation between Pakistan and the Afghan Taliban?

    1. TTP Resurgence: Tehreek-e-Taliban Pakistan intensified attacks inside Pakistan; 274 fatalities reported in recent months.
    2. Safe Haven Allegations: Pakistan alleges TTP operates from Afghan soil under Taliban protection.
    3. Retaliatory Airstrikes: Pakistan conducted strikes in Khost and Paktika targeting alleged militant camps.
    4. Taliban Response: Afghan forces retaliated with mortar shelling across the border.
    5. Civilian Casualties: Reports indicate non-combatant deaths, escalating humanitarian concerns.

    How does the Durand Line dispute complicate the conflict?

    1. Colonial Legacy: The 2,640-km Durand Line was drawn in 1893 between British India and Afghanistan.
    2. Non-Recognition: Successive Afghan regimes have questioned the legitimacy of the border.
    3. Border Clashes: Frequent skirmishes occur along contested stretches.
    4. Unregulated Movement: Porous terrain facilitates militant infiltration and smuggling networks.

    Durand Line

    Historical Background

    1. Establishment (1893): The line was drawn by Sir Mortimer Durand, a British diplomat, and Afghan Emir Abdur Rahman Khan
    2. Purpose: It was intended to fix the limits of their respective control and serve as a buffer zone against Russian expansionism toward British India
    3. Inheritance (1947): Following the partition of British India, Pakistan inherited the line as its western border. While Pakistan and most of the international community recognise it, Afghanistan has consistently refused to do so

    The Dispute & Conflict

    1. Ethnic Division: The line cuts through the Pashtun and Baloch tribal heartlands, dividing families and communities across two nations.
    2. Afghan Position: Successive Afghan governments, including the current Taliban administration, reject the border as a “colonial relic” imposed under duress. They claim territories extending as far as the Indus River.
    3. Pakistani Position: Pakistan maintains the line is a legally binding international boundary and has fenced approximately 98% of it since 2017 to curb militancy and smuggling

    Has Pakistan’s ‘Strategic Depth’ doctrine backfired?

    1. Strategic Depth Concept: Pakistan historically viewed Afghanistan as a buffer against India.
    2. Taliban Support: Islamabad extended diplomatic and logistical backing to Taliban factions.
    3. Blowback Effect: TTP, ideologically aligned with Afghan Taliban, now targets Pakistan.
    4. Policy Contradiction: Friendly regime in Kabul has not curbed anti-Pakistan militants.

    Pakistan’s “Strategic Depth” doctrine:

    1. It is a long-standing, largely failed, security policy designed to counter India by:
      1. controlling Afghanistan
      2. providing a fallback area during conflict
      3. preventing a two-front threat. 
    2. Developed in the 1980s by Gen. Mirza Aslam Beg, sought to use the Taliban as proxies to create a pro-Pakistan, anti-India regime in Kabul.

    Key aspects of this doctrine included:

    1. Military Fallback: Creating a rear area beyond the Durand Line to regroup if India invaded.
    2. Control over Kabul: Installing a friendly government in Afghanistan to prevent Indian influence and negate the “encirclement” of Pakistan.
    3. Proxy Warfare: Nurturing the Taliban and Haqqani network to manage the Pashtun border region and use Afghan soil to project power against India. 

    Failure and Consequences

    1. By 2026, the doctrine is seen as a strategic liability rather than a benefit. 
    2. The Taliban’s return to power in 2021 did not result in a subservient state, and Pakistan faces severe cross-border militant blowback from the Taliban. 
    3. The policy has led to increased domestic insecurity, with Afghanistan serving as a “strategic trap” for Pakistan instead of a “strategic depth.

    How does this episode reflect challenges in counter-terror strategy?

    1. Non-State Actor Challenge: TTP operates across borders, complicating traditional military responses.
    2. Intelligence Gaps: Weak coordination limits actionable counter-terror outcomes.
    3. Unilateral Force Doctrine: Cross-border strikes risk escalation without durable resolution.
    4. Humanitarian Risk: Civilian harm undermines legitimacy of counter-terror operations.

    What are the implications for India and the South Asian region?

    1. Militant Spillover: Escalation risks strengthening transnational jihadist networks.
    2. Regional Instability: Prolonged conflict weakens South Asian security architecture and undermines SAARC-level cooperation.
    3. Refugee Pressure: Conflict may trigger cross-border displacement.
    4. Terror Ecosystem Risk: Fragmented militant networks may redirect focus toward India or other neighboring states.
    5. Central Asian Connectivity Risk: Instability threatens regional trade corridors.
    6. Diplomatic Leverage: India may recalibrate engagement with regional partners amid shifting Afghanistan dynamics.

    Conclusion

    The Pakistan-Afghanistan escalation reflects the limits of proxy-based security doctrines and the persistence of cross-border militant ecosystems in South Asia. Tactical airstrikes may offer short-term signalling but fail to address structural drivers such as porous borders, ideological linkages, and weak counter-terror coordination. Durable stability requires institutionalized border management, credible action against non-state actors, and regional security dialogue to prevent further destabilization of the South Asian strategic landscape.

    PYQ Relevance

    [UPSC 2024] India has a long and troubled border with China and Pakistan fraught with contentious issues. Examine the conflicting issues and security challenges along the border. Also give out the development being undertaken in these areas under the Border Area Development Programme (BADP) and Border Infrastructure and Management (BIM) Scheme.

    Linkage: The Pakistan-Afghanistan conflict shows problems of cross-border terrorism and porous borders. This question helps compare India’s border security system with instability along the Durand Line.

  • India–Bhutan Cooperation on Trans-Boundary Rivers and Hydropower

    Why in the News

    India and Bhutan reviewed cooperation on trans-boundary rivers and hydropower projects during a visit by the Secretary, Department of Water Resources, Ministry of Jal Shakti, to Bhutan (February 24–27, 2026).

    Key Areas of Cooperation

    • Hydropower Projects Reviewed

      • Punatsangchhu-I Hydro Electric Project under construction
      • Punatsangchhu-II Hydroelectric Project recently commissioned
      • These projects are being implemented in partnership with India.

    • Flood Forecasting & Data Sharing

      • Strengthening hydro-meteorological observation networks
      • Improving real-time data sharing on trans-border rivers
      • Enhancing flood forecasting mechanisms

    • Climate & Disaster Resilience

      • Focus on:
      • Glacial Lake Outburst Floods (GLOFs)
      • Extreme weather events
      • Climate change related risks

    • Institutional Engagement

      • Meetings with Bhutan’s National Center for Hydrology and Meteorology
      • Review of flood monitoring stations
      • Capacity building and technical exchanges

    Significance

    • Reinforces India–Bhutan strategic partnership in water and energy security
    • Enhances downstream flood management in Assam and West Bengal
    • Supports clean energy cooperation
    • Strengthens climate resilience in Himalayan river basins

    Prelims Pointers

    • Trans-boundary rivers between India and Bhutan are part of the Brahmaputra basin.
    • Hydropower is a key pillar of India–Bhutan relations.
    • GLOFs are sudden releases of water from glacial lakes.
    • Ministry of Jal Shakti oversees water resource cooperation.
    [2016] Which of the following is/are tributary/tributaries of Brahmaputra? 

    1. Dibang 
    2. Kameng 
    3. Lohit 

    Select the correct answer using the code given below. 

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

  • Canada PM Mark Carney Begins India Visit

    Why in the News

    Canadian Prime Minister Mark Carney began a four day official visit to India, aimed at normalising ties and expanding cooperation across trade, energy and emerging technologies.

    Key Highlights of the Visit

    • Major Uranium Deal

      • Likely signing of a 10 year, US$ 2 billion uranium supply agreement.
      • Supports India’s civil nuclear energy requirements.

    • Focus Areas of Cooperation

      • Talks expected on:
      • Oil and gas
      • Environment and climate
      • Artificial Intelligence
      • Quantum computing
      • Education and culture
      • Critical minerals

    • Bilateral Talks

      • Meeting with Prime Minister Narendra Modi at Hyderabad House.
      • Delegation level discussions to review Strategic Partnership.
      • India Canada CEOs Forum to be held.

    • Background Context

      • Visit comes after strained ties following allegations made under former PM Justin Trudeau.
      • Seen as a step toward diplomatic reset.

    Strategic Significance

    • Canada is a key supplier of uranium and critical minerals.
    • Large Indian diaspora in Canada strengthens people to people ties.
    • Cooperation in AI and quantum aligns with India’s tech ambitions.
    • Engagement signals mutual interest in restoring stability in relations.

    Prelims Pointers

    • India Canada relations upgraded to Strategic Partnership in 2015.
    • Canada is a major uranium exporter.
    • Hyderabad House is venue for high level diplomatic talks in New Delhi.
    • G7 summit held in Kananaskis in 2025 attended by India.
    [2024] The longest border between any two countries in the world is between: (a) Canada and the United States of America 

    (b) Chile and Argentina 

    (c) China and India 

    (d) Kazakhstan and Russian Federation

  • How India and Canada have mended their frayed ties

    Why in the News?

    Canadian Prime Minister Mark Carney’s visit to India signals a diplomatic reset after the 2023 rupture triggered by allegations over Hardeep Singh Nijjar’s killing. The crisis had led to diplomatic expulsions, visa suspension, and stalled trade talks. Restoration of envoys and revival of Comprehensive Economic Partnership Agreement (CEPA) negotiations mark a sharp reversal amid $23+ billion bilateral trade stakes.

    How did diplomatic escalation test principles of sovereignty and international law?

    1. Allegations of Extraterritorial Action: Canada accused Indian agents of involvement in Nijjar’s killing in British Columbia (2023), raising concerns under international law and state sovereignty norms.
    2. Reciprocal Diplomatic Expulsions: Both countries expelled diplomats, reducing institutional diplomatic engagement.
    3. Suspension of Visa Services: India temporarily halted visa issuance for Canadians, affecting people-to-people ties.
    4. Terrorism vs. Political Dissent Debate: India classified Nijjar as a designated terrorist under Unlawful Activities (Prevention) Act, 1967 (UAPA), while Canada treated him as a political activist.
    5. Institutional Accountability: Canada initiated investigations; India demanded credible evidence before cooperation.

    What governance mechanisms enabled bilateral recovery?

    1. Leadership Change in Canada: Mark Carney’s accession shifted tone toward calibrated engagement.
    2. Reinstatement of High Commissioners: Diplomatic normalization restored formal communication channels.
    3. G20 Engagement: Modi-Carney interaction at the 2025 G7 Summit in Canada signaled political willingness for reset.
    4. Structured Dialogue Restoration: Agreement to revive working groups on trade, security, and mobility.

    How significant are trade and economic linkages in sustaining the relationship?

    1. Goods Trade (2024): $8.98 billion; exports $4.14 billion; imports $4.84 billion.
    2. Services Trade (2024): $14.22 billion; reflects strong education and IT linkages.
    3. Strategic Commodities: Canada supplies pulses, potash, uranium; India exports pharmaceuticals, textiles, machinery.
    4. CEPA Negotiations: Aim to expand trade to $30 billion by 2030.
    5. Energy Partnership: Canada as a reliable supplier of oil, LNG, and critical minerals.

    How does diaspora politics shape foreign policy and domestic security calculations?

    1. Large Diaspora Presence: Over 1.8 million Indo-Canadians; politically influential in key provinces.
    2. Khalistan Issue: Small but vocal separatist groups influenced bilateral tensions.
    3. Balancing Act: Canada must reconcile free speech protections with counter-terror obligations.
    4. India’s Security Concerns: Cross-border extremism framed as “transnational crime” in bilateral talks.

    What role do multilateral and strategic platforms play in normalisation?

    1. G20 Collaboration: Shared membership necessitates policy coordination.
    2. Indo-Pacific Strategy: Canada seeks stronger Asia engagement; India remains central.
    3. Five Eyes Sensitivity: Canada’s intelligence alignment with US, UK, Australia, New Zealand complicated trust dynamics.
    4. Energy & Climate Cooperation: Clean energy transition, nuclear cooperation under civil nuclear agreement.

    What institutional lessons emerge for diplomatic crisis management?

    1. Crisis Communication Channels: Importance of sustained back-channel diplomacy.
    2. Legal Evidence Standards: Need for transparent, rule-based investigative cooperation.
    3. Trade Insulation Mechanisms: Economic negotiations often pause but resume once political clarity returns.
    4. Diaspora Governance: Foreign policy increasingly intersects with domestic electoral politics.

    Conclusion

    India-Canada relations underscore how diaspora politics, domestic compulsions, and national security concerns can significantly influence bilateral diplomacy between democracies. The recent reset reflects pragmatic statecraft, economic interdependence, and institutional resilience, but the durability of this rapprochement will depend on credible security cooperation, responsible diaspora management, and sustained political dialogue.

    PYQ Relevance

    [UPSC 2020] ‘Indian diaspora has a decisive role to play in the politics and economy of America and European Countries’. Comment with examples.

    Linkage: The India-Canada diplomatic crisis highlights how diaspora politics can directly influence bilateral relations, domestic electoral calculations, and foreign policy positioning in Western democracies. It demonstrates that the Indian diaspora is not merely an economic asset but also a political actor shaping strategic outcomes and diplomatic tensions.

  • India–Israel Elevate Ties to Special Strategic Partnership

    Why in the News

    India and Israel elevated bilateral relations to a Special Strategic Partnership for Peace, Innovation and Prosperity during Prime Minister Narendra Modi’s visit to Israel. A total of 17 pacts were signed.

    Key Outcomes

    1. Upgrade of Bilateral Ties

    • Earlier: Strategic Partnership since 2017
    • Now: Special Strategic Partnership
    • Focus on technology, defence, innovation and economic cooperation

    2. Technology Partnership

    • Launch of Critical and Emerging Technologies Partnership
    • Cooperation in:
      • Artificial Intelligence
      • Quantum technologies
      • Cyber security
      • Critical minerals

    3. Defence Cooperation

    • Roadmap for joint development and joint production
    • Emphasis on transfer of technology
    • Defence ties described as expanding in scope and scale

    4. Economic & Trade Measures

    • Bilateral Investment Agreement operationalised
    • FTA negotiations to be finalised soon
    • UPI to be enabled in Israel
    • Financial dialogue mechanism launched

    5. Agriculture & Innovation

    • Target of 100 Centres of Excellence
    • Plan for Villages of Excellence
    • India Israel Innovation Centre for Agriculture to be set up
    • 20 joint agricultural research fellowships

    6. Manpower & People Ties

    • Expansion of labour mobility under 2023 agreement
    • Quota of up to 50,000 Indian workers over five years
    • Launch of India Israel Academic Forum

    7. Regional & Global Issues

    • Strong condemnation of terrorism
    • Support for Gaza peace efforts
    • Focus on IMEEC and I2U2 initiatives

    Prelims Pointers

    • India Israel ties established in 1992
    • Strategic Partnership declared in 2017
    • Now elevated to Special Strategic Partnership in 2026
    • Cooperation spans defence, agriculture, AI, cyber security and innovation
    • IMEEC: India Middle East Europe Economic Corridor
    • I2U2: India Israel UAE USA grouping
    [2018] The term “two-state solution” is sometimes mentioned in the news in the context of the affairs of (a) China  

    (b) Israel 

    (c) Iraq  

    (d) Yemen

  • India–France Sign Amending Protocol to Update DTAC

    Why in the News

    • India and France have signed an Amending Protocol to update the India–France Double Taxation Avoidance Convention (DTAC) of 1992, aligning it with current international tax standards and strengthening bilateral economic cooperation.
    • The Protocol was signed by the Chairperson of the Central Board of Direct Taxes and the French Ambassador to India.

    What is DTAC?

    • A Double Taxation Avoidance Convention is an agreement between two countries to:
      • Avoid taxing the same income twice
      • Prevent tax evasion
      • Promote cross border trade and investment
    • India has DTAA or DTAC agreements with over 90 countries.

    Key Changes in the Amending Protocol

    • Capital Gains Taxation: Full taxing rights on capital gains from sale of shares now lie with the country where the company is resident.
    • Removal of MFN Clause: The Most Favoured Nation clause has been deleted. This resolves long standing interpretational disputes regarding treaty benefits.
    • Dividend Taxation: Earlier: Single 10 percent rate
    • Now:
      • 5 percent for shareholders holding at least 10 percent capital
      • 15 percent for others
    • Fees for Technical Services: Definition aligned with the India US Double Taxation Avoidance Agreement. Introduces greater clarity in taxation of cross border services.
    • Expansion of Permanent Establishment: Introduces Service Permanent Establishment concept. Expands tax jurisdiction where services are provided in another country.
    • Exchange of Information
      • Updated as per international standards.
      • Introduces Article on Assistance in Collection of Taxes.
      • Enhances mutual tax cooperation.
    • Exchange of Information: Integrates provisions of the Base Erosion and Profit Shifting Multilateral Instrument. Strengthens anti tax avoidance framework.
    [2016] The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of (a) mining operation by multinational companies in resource-rich but backward areas 

    (b) curbing of the tax evasion by multinational companies 

    (c) exploitation of genetic resources of a country by multinational companies 

    (d) lack of consideration of environmental costs in the planning and implementation of developmental projects.