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Subject: International Relations

  • [6th January 2026] The Hindu OpED: The parallel track that keeps U.S.-India ties going

    PYQ Relevance

    [UPSC 2020] What is the significance of Indo- US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo- Pacific region.

    Linkage: The article explains how India-U.S. ties are sustained through defence frameworks, interoperability agreements, and technology cooperation despite political volatility. This directly aligns with UPSC’s focus on Indo-US defence cooperation as a pillar of Indo-Pacific stability beyond transactional diplomacy.

    Mentor’s Comment

    India-U.S. relations in 2025 face political strains from global realignments, trade frictions, and shifting great-power equations. However, this article highlights a crucial but under-discussed dimension: the parallel institutional track that sustains bilateral ties despite diplomatic or political turbulence. For UPSC aspirants, this article offers insight into how institutional resilience, defence frameworks, and bureaucratic continuity stabilize strategic partnerships in an uncertain global order.

    Why in the News

    Despite the postponement of the Quad Leaders’ Summit hosted by India in 2025 and visible geopolitical stressors, such as renewed U.S.-China engagement and India’s strained relations with Pakistan, the India-U.S. partnership continues to deepen. This contrast between political volatility and institutional continuity is significant. Defence agreements, logistics frameworks, technology cooperation, and infrastructure initiatives have not only expanded but accelerated. The signing of a decade-long Defence Framework Agreement (2025) and the conduct of 24 India-Pacific ports engagements in one year underscore the scale and durability of cooperation, making this a critical case study in resilient diplomacy.

    Introduction

    India-U.S. relations have historically oscillated with political leadership and global alignments. The post-2008 period marked a structural shift, embedding cooperation within institutional, defence, and technological frameworks. In 2025, even as political optics suggest strain, the relationship advances through parallel institutional mechanisms that insulate strategic cooperation from short-term disruptions.

    How have political headwinds tested India-U.S. relations in 2025?

    1. Geopolitical Strain: Quad Leaders’ Summit postponement reflects regional uncertainty and diplomatic caution.
    2. China Factor: Renewed U.S.-China engagement alters India’s strategic calculus and perceptions of a “G-2” dynamic.
    3. Trade Frictions: Persistent U.S. tariff pressures on Indian exports highlight unresolved economic tensions.
    4. Regional Instability: India’s conflictual ties with Pakistan continue to complicate South Asian security equations.

    Why does institutional cooperation continue despite political volatility?

    1. Institutional Engagement: Accelerated bureaucratic and military coordination offsets leadership-level uncertainties.
    2. Foreign Ministers’ Dialogue (July 2025): Expanded cooperation across maritime security, humanitarian assistance, and counter-terrorism.
    3. Quad Counterterrorism Working Group: Demonstrated operational relevance beyond diplomatic symbolism.
    4. Policy Continuity: Bureaucratic frameworks ensure momentum independent of electoral or diplomatic cycles.

    How does defence cooperation form the backbone of bilateral ties?

    1. Civil Nuclear Legacy (2008): Established trust and enabled subsequent defence and technology agreements.
    2. Defence Framework Agreement (2025-2035): Enhances joint planning, coordination, and regional security alignment.
    3. Foundational Agreements:
      1. LEMOA (2016): Enables reciprocal logistics access.
      2. COMCASA (2018): Secures communication interoperability.
      3. BECA (2020): Facilitates geospatial intelligence sharing.
    4. Defence Trade Expansion: HAL’s $1-billion GE-414 engine deal reflects deepening industrial cooperation.

    What role do military exercises and interoperability play?

    1. Joint Exercises: Yudh Abhyas, Tiger Claw, and Malabar strengthen operational trust.
    2. Interoperability: Enhances coordinated responses in the Indo-Pacific.
    3. Information Sharing: Improves maritime domain awareness and regional stability.
    4. Supply Chain Security: Defence Supply Arrangement (2024) ensures logistics resilience.

    How is technology and infrastructure cooperation expanding the partnership?

    1. Technological Integration: Agreements emphasize defence, digital, and critical technology collaboration.
    2. NISAR Satellite (2025): Joint disaster resilience, agricultural monitoring, and infrastructure planning.
    3. Ports of the Future Conference (Mumbai, 2025):
      1. 24 Indo-Pacific Ports: Enhances resilient, secure port infrastructure.
      2. Logistics and Supply Chains: Supports regional connectivity and crisis preparedness.
    4. Ministerial Coordination: Joint leadership by India’s Ports Ministry and the U.S. State Department.

    What limits and challenges remain within this institutional framework?

    1. Political Volatility: Diplomatic disagreements can slow high-level momentum.
    2. Trade Disputes: Transactional pressures persist despite strategic convergence.
    3. Trust Maintenance: Requires continuous engagement to prevent erosion during crises.
    4. Strategic Divergence: Differing threat perceptions vis-à-vis China remain.

    Conclusion

    India-U.S. relations in 2025 demonstrate that institutional depth can compensate for political uncertainty. Defence, technology, and infrastructure cooperation operate as parallel stabilising tracks, ensuring continuity in an evolving geopolitical landscape. Sustained engagement within these frameworks will determine the partnership’s long-term strategic effectiveness.

  • India Hosts 20th Session of UNESCO ICH Committee  

    Why in the News?

    India is hosting the 20th Session of UNESCO’s Intergovernmental Committee for the Safeguarding of Intangible Cultural Heritage at the Red Fort.

    About the Intergovernmental Committee for Safeguarding of Intangible Cultural Heritage

    • A statutory body of UNESCO
    • Established under the Convention for the Safeguarding of the Intangible Cultural Heritage
    • Responsible for promoting, supervising and implementing safeguarding of intangible cultural heritage worldwide

    India and Intangible Cultural Heritage

    • India currently has 15 elements inscribed on UNESCO’s Representative List
    • Hosting the session reflects India’s growing role in global cultural diplomacy

    About Intangible Cultural Heritage

    • Refers to living traditions and cultural expressions passed through generations
    • Includes performing arts, rituals, festivals, crafts, oral traditions and social practices
    • Emphasises community participation and transmission rather than physical monuments

    Prelims Pointers

    • ICH focuses on living heritage not tangible monuments
    • The Intergovernmental Committee has 24 members
    • No consecutive terms allowed for Committee membership
    • Red Fort is a UNESCO World Heritage Site and ceremonial venue
    [2024] Which one of the following was the latest inclusion in the Intangible Cultural Heritage List of UNESCO? 

    (a) Chhau dance 

    (b) Durga Puja 

    (c) Garba dance 

    (d) Kumbh Mela

  • Exercise Harimau Shakti 2025  

    Why in the News?

    India and Malaysia have commenced the 5th edition of Exercise Harimau Shakti at the Mahajan Field Firing Range in Rajasthan.

    What is Exercise Harimau Shakti

    • A bilateral military training exercise between the Indian Army and the Royal Malaysian Army
    • Aims to strengthen coordination in counter insurgency and peacekeeping operations

    Significance

    • Enhances interoperability between Indian and Malaysian forces
    • Strengthens bilateral defence cooperation and military diplomacy
    • Improves preparedness for United Nations peacekeeping missions
    • Supports safer and more coordinated ground operations in complex environments

    Prelims Pointers

    • Exercise Harimau Shakti is a bilateral army level exercise
    • Focuses on counter insurgency and UN peacekeeping scenarios
    • Conducted on Indian soil for the 2025 edition
    • Involves sub conventional warfare training
    [2024] Joint Military Exercises Question (Excerpted from): Which of the following statements about ‘Exercise Mitra Shakti-2023’ are correct? 

    1. This was a joint military exercise between India and Bangladesh

    2. It commenced in Aundh (Pune)

    3. Joint response during counter-terrorism operations was a goal of this operation

    4. Indian Air Force was a part of this exercise

    Select the answer using the code given below: 

    (a) 1, 2 and 3 (b) 1 and 4 (c) 2, 3 and 4 (d) 2, 3 and 4

  • Niger Eliminates Onchocerciasis  

    Why in the News?

    Niger has become the first country in the African region to eliminate onchocerciasis, also known as river blindness, as recognised by World Health Organization.

    Key Achievement

    • Niger is the fifth country globally to halt transmission of onchocerciasis
    • First country in Africa to achieve this milestone
    • Official declaration made by Niger’s Minister of Public Health, Population and Social Affairs

    Countries That Have Eliminated Onchocerciasis

    • Niger, Colombia, Ecuador, Guatemala and Mexico

    About Onchocerciasis

    • Also known as river blindness
    • A parasitic disease caused by Onchocerca volvulus
    • Second leading infectious cause of blindness worldwide after trachoma

    Mode of Transmission

    • Spread through the bite of infected black flies
    • Black flies breed near fast flowing rivers and streams
    • Humans are infected when larvae enter the body through fly bites

    Symptoms and Impact

    • Severe itching and skin lesions
    • Visual impairment and irreversible blindness in advanced stages
    • Major cause of disability in rural communities
    [2014] Consider the following diseases: 

    1. Diphtheria 

    2. Chickenpox 

    3. Smallpox

    Which of the above diseases has/have been eradicated in India? 

    (a) 1 and 2 only (b) 3 only (c) 1, 2 and 3 only (d) None of the above

  • [5th January 2026] The Hindu OpED: Hubris and caution- China’s posture as 2026 begins

    PYQ Relevance

    [UPSC 2021] “The USA is facing an existential threat in the form of China, that is much more challenging than the erstwhile Soviet Union.” Explain.

    Linkage: The question aligns with GS-II themes of major power rivalry and its implications for global order and India’s strategic interests. The article on China’s posture as 2026 begins provides contemporary evidence of why China poses a more complex challenge to the U.S. than the Soviet Union, helping students link theory with current geopolitical realities.

    Mentor’s Comment:

    This editorial examines the paradoxical trajectory of China as 2026 begins, combining strategic confidence with growing constraints. While Beijing projects strength through diplomacy, military expansion, and global positioning, it simultaneously confronts economic headwinds, strategic pushback, and heightened vulnerabilities. The article is significant for understanding shifting great power dynamics, recalibrated U.S.-China relations, and the evolving challenges for India in Asia and the Indo-Pacific.

    Introduction

    China enters 2026 projecting resilience and strategic clarity, yet operating within narrowing margins. The leadership under Xi Jinping seeks to balance ideological consolidation at home with assertive diplomacy abroad. However, economic strains, technological choke points, military risk aversion, and strategic pushback from the United States and its partners reveal a China that is confident but constrained. This duality shapes Beijing’s posture toward the Global South, the Indo-Pacific, and India.

    Why in the News

    As 2026 begins, China stands at a strategic inflection point marked by assertive global positioning alongside deep internal and external constraints. For the first time since the post-pandemic phase, Beijing’s confidence, rooted in diplomatic outreach, military modernisation, and supply-chain leverage, is being openly tempered by economic slowdown, tighter political control, and strategic encirclement

    How has China’s strategic confidence evolved since 2024?

    1. Strategic Confidence: Strengthened by diplomatic stabilisation with Europe and Russia and perceived gains in great power competition.
    2. Managed Rivalry: Shift from confrontation to recalibrated competition with the United States under President Donald Trump’s second term.
    3. Economic Leverage: Expansion of trade and tariff dominance and stabilisation of relationships without altering core positions, except with Japan.
    4. Global Outreach: Increased diplomatic and institutional reach, especially in the Global South.

    Why does China face growing economic and structural constraints?

    1. Weak Domestic Demand: Consumption remains subdued despite growth rhetoric.
    2. Property Sector Stress: Continued overhang affecting investor and consumer confidence.
    3. Deflationary Pressures: Persistent producer price deflation compressing corporate profits.
    4. Local Government Debt: Rising fiscal stress limiting stimulus capacity.
    5. Export Dependence: Trade surplus crossed $1 trillion in 2025, signalling over-reliance on external demand.
    6. Manufacturing Overcapacity: Excess production in EVs, batteries, solar panels, and industrial machinery triggering global disruptions.

    What explains China’s inward turn and economic nationalism?

    1. State-led Model: Reinforcement of a state-centric economic framework.
    2. Strategic Sectors: Prioritisation of advanced manufacturing, semiconductors, AI, green energy, and dual-use technologies.
    3. Import Substitution: Emphasis on self-reliance and supply-chain insulation.
    4. Policy Codification: The 15th Five-Year Plan (2026-30) institutionalises technological autonomy and domestic capacity-building.

    How is military posture evolving under tighter constraints?

    1. PLA Expansion: Continued growth in conventional and nuclear capabilities.
    2. Early Warning Posture: Shift from “counter-strike” to “early warning counter-strike”.
    3. Risk Management: Avoidance of major kinetic escalation despite assertiveness.
    4. Internal Discipline: Anti-corruption purges and ideological control following dysfunctions within the PLA hierarchy.

    How have U.S.-China relations reshaped global dynamics?

    1. Strategic Reframing: China no longer viewed as a systemic rival but a strategic economic competitor.
    2. Selective Decoupling: Export controls on advanced technology tightened.
    3. Transactional Engagement: Reduced geopolitical grandstanding in favour of issue-specific bargains.
    4. G2 Shadow: Perception of tacit coordination constraining the strategic autonomy of other states.

    What are the implications for India in this evolving order?

    1. Border Fragility: Disengagement remains partial; trust deficit persists along the LAC.
    2. Economic Asymmetry: Trade normalisation without resolution of structural imbalances risks dependence.
    3. Strategic Divergence: China views India as a regional competitor aligned with U.S. strategy.
    4. Perception Gap: China believes it has regained relative advantage, while Indian interlocutors flag increased turbulence.
    5. Neighbourhood Pressure: Heightened Chinese outreach in South Asia through infrastructure and diplomacy.

    How is China positioning itself in the Global South and Asia?

    1. Leadership Narrative: Projection as the principal voice of the Global South.
    2. Institutional Leverage: Use of BRICS, SCO, AIIB, and NDB to shape norms.
    3. Regional Assertiveness: Maritime and border posturing driven by “core interests”.
    4. Grey-Zone Strategy: Incremental actions below the threshold of war.

    Conclusion

    China’s posture as 2026 begins reflects a calibrated blend of ambition and restraint. While Beijing continues to project power through economic scale, technological drive, military modernisation and Global South diplomacy, its strategic choices are increasingly shaped by economic stress, technological chokepoints, internal discipline issues and external pushback. This coexistence of hubris and caution suggests that China will persist with assertive, grey-zone tactics rather than overt confrontation. For India and the wider Indo-Pacific, the challenge lies in preparing for a prolonged phase of competitive coexistence marked by uncertainty, pressure below the threshold of war, and the need for sustained strategic patience and calibrated engagement.

  • America’s return to interventionism

    Introduction

    The United States has signalled a decisive shift towards assertive foreign policy intervention, with Venezuela emerging as the most consequential test case. The Trump administration’s actions-ranging from covert operations to explicit interest in Venezuela’s oil sector, mark a departure from recent U.S. restraint in Latin America. The crisis highlights the re-emergence of interventionist doctrines, the limits of sanctions-led regime change, and the strategic role of energy resources in foreign policy.

    Why in the News?

    The Venezuela crisis has regained global attention following the arrest and transfer of Nicolás Maduro to the United States, where he has been brought to New York to face charges related to narcotics trafficking and corruption, marking a sharp escalation in U.S. interventionism in Latin America. This move represents a shift from indirect tools such as sanctions and diplomatic isolation to direct coercive and judicial action against a sitting head of state, raising serious questions about sovereignty and international law. The development is significant given that Venezuela, despite holding the world’s largest proven oil reserves (over 300 billion barrels), has witnessed a dramatic collapse in oil production from 3.5 million barrels per day in the late 1990s to below 1 million barrels per day, underscoring deep governance failure and the high geopolitical and energy-security stakes involved.

    Timeline of Key Developments

    1. 1999: Hugo Chávez assumes power; extensive nationalisation of the oil sector.
    2. 2013: Nicolás Maduro becomes President.
    3. 2017-2019: U.S. imposes sectoral sanctions and recognises parallel leadership.
    4. 2020: Failure of covert destabilisation efforts.
    5. 2023-2025: Selective easing and re-imposition of sanctions linked to oil and political concessions.
    6. 2026: Arrest and transfer of Nicolás Maduro to the United States, marking escalation from indirect pressure to direct intervention.

    What are the Reasons for the U.S. intervention?

    1. Strategic Energy Interests
      1. Venezuela possesses the largest proven oil reserves globally.
      2. Control over supply chains enhances energy security and price influence, especially under sanctions on Iran and Russia.
      3. Energy geopolitics aligns with realist balance-of-power logic.
    2. Revival of the Monroe Doctrine
      1. Latin America treated as a sphere of influence.
      2. Intervention justified as preventing “extra-hemispheric” actors (Russia, China, Iran).
      3. Reflects hegemonic stability theory.
    3. Regime Change Doctrine
      1. U.S. preference for ideologically aligned governments.
      2. Delegitimisation of Maduro regime through sanctions, recognition of parallel leadership.
      3. Mirrors earlier cases: Iraq, Libya.
    4. Great Power Competition
      1. Venezuela as a proxy theatre in U.S.-China and U.S.-Russia rivalry.
      2. China’s investments and Russian security support perceived as strategic threats.
    5. Domestic Political Signalling
      1. Interventionism used to project strength abroad for domestic constituencies.
      2. Latin America policy linked to electoral politics in the U.S.

    How does the Venezuela crisis reflect a shift in U.S. foreign policy?

    1. Doctrinal Shift: Rebrands U.S. Latin America policy as a revival of the Monroe Doctrine, signalling renewed regional dominance.
    2. Military Assertiveness: Authorises airstrikes and covert actions beyond traditional theatres, including Latin America and the Caribbean.
    3. Policy Contrast: Marks departure from post-Cold War caution and reduced intervention under recent U.S. administrations.

    Strategic Messaging: Reinforces U.S. willingness to use force to protect perceived hemispheric interests.

    Why is Venezuela central to America’s intervention calculus?

    1. Energy Resources: Holds the world’s largest proven oil reserves, exceeding Saudi Arabia and Canada.
    2. Strategic Geography: Located within the U.S. sphere of influence as defined historically by the Monroe Doctrine.
    3. Economic Collapse: Suffers from hyperinflation, shortages, and institutional breakdown, creating intervention justification.
    4. Sanctions Failure: Demonstrates limits of economic coercion in achieving regime change.

    What explains Venezuela’s oil paradox: large reserves, low production?

    1. Infrastructure Decay: Reflects years of underinvestment and mismanagement in PDVSA (state-owned oil and gas company of Venezuela).
    2. Sanctions Impact: Restricts access to capital, technology, and export markets.
    3. Governance Crisis: Combines corruption, brain drain, and administrative collapse.
    4. Output Decline: Production fell by nearly 75% over two decades despite global oil demand.

    Can U.S. control revive Venezuela’s oil sector quickly?

    1. Time Horizon: Requires several years of sustained investment to restore capacity.
    2. Capital Needs: Demands billions of dollars for infrastructure repair and technology upgrades.
    3. Market Impact: Limited short-term effect on global oil prices due to subdued demand.
    4. Structural Constraints: Long-term viability depends on political stability and institutional reform.

    How does the Monroe Doctrine shape current U.S. actions?

    1. Historical Legacy: Originally framed to prevent European intervention in the Americas.
    2. Modern Reinterpretation: Used to justify intervention against perceived adversarial regimes.
    3. Regional Implications: Reinforces U.S. dominance while constraining Latin American strategic autonomy.
    4. Policy Instrumentalisation: Serves as ideological cover for regime-change strategies.

    What does the crisis indicate about the limits of regime change strategies?

    1. Leadership Resilience: The Maduro regime displayed resilience by withstanding prolonged sanctions and diplomatic isolation for several years; however, the recent arrest and transfer of Maduro to the United States marks a rupture in this resilience, highlighting the limits of sanctions-led pressure and the shift towards direct coercive intervention.
    2. Opposition Fragmentation: Weakens internal political transition prospects.
    3. External Dependence: Overreliance on foreign pressure undermines domestic legitimacy.
    4. Humanitarian Costs: Sanctions exacerbate civilian suffering without political resolution.

    What are the Implications for International Law?

    1. Extraterritorial Jurisdiction: The assertion of U.S. legal authority beyond its territory challenges established limits on jurisdiction under international law.
    2. Violation of Sovereign Immunity: Judicial action against a sitting head of state undermines the customary international law principle protecting sovereign leaders from foreign prosecution.
    3. Erosion of Non-Intervention Norm: Weakens Article 2(7) of the UN Charter by normalising external interference in domestic political affairs.
    4. Precedent-Setting Impact: Creates a permissive environment for powerful states to bypass multilateral mechanisms in favour of unilateral enforcement.

    Conclusion

    The Venezuela episode marks a qualitative escalation of U.S. interventionism, moving beyond sanctions and diplomatic isolation to direct extraterritorial enforcement against a sitting leader. This shift strains core principles of sovereignty, non-intervention, and sovereign immunity, weakening the credibility of the rules-based international order. By privileging unilateral coercion over multilateral processes, it deepens the Global South trust deficit and normalises selective application of international law. For India and similarly placed states, the episode reinforces the imperative of strategic autonomy, consistent support for multilateralism, and caution against the weaponisation of sanctions and jurisdiction in global politics.

    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 question is relevant to GS-II (International Relations) as it examines asymmetries in India-U.S. strategic engagement and the impact of U.S. global strategy on partner autonomy. The Venezuela episode, marked by U.S. unilateral interventionism and sanctions-driven geopolitics, exemplifies a pattern that also constrains India’s strategic space.

  • India’s Drug Standards Gain Global Recognition

    Why in the News?

    India has risen from 123rd to 8th position globally in contributions to the World Health Organization’s pharmacovigilance database, as stated by Union Health Minister J. P. Nadda during the release of Indian Pharmacopoeia 2026.

    Key Announcement

    • India ranked 8th globally in WHO pharmacovigilance contributions in 2025
    • Earlier rank was 123rd during 2009 to 2014
    • Announcement made at the release of Indian Pharmacopoeia 2026
    • Event held at Dr Ambedkar International Centre, New Delhi

    About Indian Pharmacopoeia

    • Official book of drug standards for India
    • Published by Indian Pharmacopoeia Commission
    • 2026 edition is the 10th edition
    • Sets standards for quality, purity and strength of medicines

    Key Features of Indian Pharmacopoeia 2026

    • 121 new monographs added
    • Total monographs increased to 3,340
    • Expanded coverage of
      • Anti tubercular medicines
      • Anti diabetic medicines
      • Anti cancer medicines
      • Iron supplements
    • Supports standardisation under National Health Programmes

    Pharmacovigilance Programme of India

    • Known as Pharmacovigilance Programme of India
    • Implemented under the Indian Pharmacopoeia Commission
    • Monitors adverse drug reactions and medicine safety
    • Major contributor to WHO global drug safety database

    International Significance

    • Indian Pharmacopoeia standards now recognised in 19 countries of the Global South
    • Pharmacopoeia standards form part of India’s health diplomacy
    • Reflects India’s leadership in pharmaceutical regulation and manufacturing

    Regulatory Advancement

    • First time inclusion of 20 blood component monographs
    • Related to transfusion medicine
    • In line with Drugs and Cosmetics Second Amendment Rules 2020

    Prelims Pointers

    • WHO maintains a global pharmacovigilance database
    • Indian Pharmacopoeia is a statutory reference for drug quality
    • Pharmacovigilance focuses on drug safety after market approval
    • Blood component monographs are linked to transfusion safety
    [2019] Which of the following are the reasons for the occurrence of multi-drug resistance in microbial pathogens in India? 

    1. Genetic predisposition of some people 

    2. Taking incorrect doses of antibiotics to cure diseases 

    3. Using antibiotics in livestock farming 

    4. Multiple chronic diseases in some people 

    Select the correct answer using the code given below: 

    (a) 1 and 2 (b) 2 and 3 only (c) 1, 3 and 4 (d) 2, 3 and 4

  • Bulgaria joins the eurozone

    Why in the news?

    Bulgaria officially adopted the euro as its national currency on January 1, 2026, replacing the Bulgarian lev and becoming the 21st member of the eurozone.

    About Bulgaria

    What it is

    Bulgaria is a Balkan country in southeastern Europe. It has been a member of the European Union since 2007 and NATO since 2004. The adoption of the euro followed the fulfilment of European Union convergence criteria.

    Location

    • Eastern Balkan Peninsula
    • Strategic link between Europe, the Black Sea region, and West Asia

    Borders

    • Romania in the north
    • Serbia and North Macedonia in the west
    • Greece and Turkey in the south
    • Black Sea in the east

    Geographical features

    • Danubian Plain in the north, an important agricultural belt
    • Balkan Mountains extending east west
    • Rila Rhodope Massif in the south with Mount Musala, the highest peak in the Balkans
    • Black Sea coastline supporting ports, tourism, and trade

    About the eurozone

    What it is

    The eurozone is the group of European Union countries that use the euro as their official legal tender and follow a common monetary policy.

    Evolution

    • 1992 Maastricht Treaty established the Economic and Monetary Union
    • 1999 Euro introduced for electronic transactions
    • 2002 Euro notes and coins entered circulation

    Members

    • 21 European Union countries as of 2026, including Bulgaria

    Key features

    • Single currency system
    • Unified monetary policy by the European Central Bank
    • No internal currency exchange costs
    • Free movement of goods, services, capital, and labour

    Prelims pointers

    • Bulgaria joined the eurozone in 2026
    • Eurozone membership is different from EU membership
    • ECB governs monetary policy of eurozone states
    [2025] Consider the following countries: 

    I. Austria 

    II. Bulgaria

    III. Croatia

    IV. Serbia

    V. Sweden

    VI. North Macedonia

    How many of the above are members of the North Atlantic Treaty Organization? 

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

  • As EU carbon tax kicks in, India’s metal exports face price threat

    Introduction

    The European Union has begun implementing the Carbon Border Adjustment Mechanism (CBAM), imposing a carbon-linked levy on imports from carbon-intensive sectors. India, a major exporter of steel and aluminium to the EU, now faces higher compliance costs and potential loss of competitiveness. The mechanism represents a departure from tariff-based trade barriers towards climate-conditioned trade regulation, with significant implications for developing economies.

    Why in the News?

    CBAM has entered its implementation phase for the first time globally, covering carbon-intensive imports such as steel, aluminium, cement, fertilisers, electricity, and hydrogen. Indian metal exports to the EU now face an estimated price increase of 15-22%, creating a direct cost shock for exporters. The mechanism shifts climate action costs to exporting countries, raising concerns over equity, WTO compliance, and the future of South–North trade relations.

    What Is the EU’s Carbon Border Adjustment Mechanism (CBAM)?

    1. Carbon Pricing Mechanism: Imposes a levy on imported goods equivalent to the EU’s internal carbon price.
    2. Sectoral Coverage: Applies to steel, aluminium, cement, fertilisers, power, energy-intensive inputs.
    3. Objective Framing: Prevents carbon leakage by aligning import prices with EU climate standards.
    4. Operational Shift: Replaces implicit trade barriers with explicit climate-linked taxation.

    Why Are India’s Metal Exports Particularly Vulnerable?

    1. Export Concentration: India largely exports steel and aluminium to the EU, both CBAM-covered sectors.
    2. Production Technology: Indian steel manufacturing relies heavily on blast furnaces, which are more carbon-intensive.
    3. Scrap Constraint: Limited availability of steel scrap restricts transition to electric arc furnaces (EAFs).
    4. Cost Pass-through Limits: MSME exporters lack pricing power to absorb compliance costs.

    How Will CBAM Increase Export Costs for India?

    1. Price Impact: Estimates suggest a 15-22% increase in landed cost of Indian metal exports.
    2. Compliance Burden: Requires detailed plant-level emissions data, often unavailable with MSMEs.
    3. Default Emissions Risk: Absence of verified data may lead to higher default emission values.
    4. Competitiveness Erosion: Raises risk of market substitution by lower-carbon producers.

    What Are the Key Concerns Raised by Indian Exporters and Experts?

    1. Equity Concerns: Undermines the principle of Common but Differentiated Responsibilities (CBDR).
    2. Developmental Impact: Disproportionately affects developing economies with legacy infrastructure.
    3. WTO Compatibility: Raises questions on non-discrimination and disguised protectionism.
    4. Technology Lock-in: Penalises countries still transitioning to greener industrial processes.

    Why Is Scrap Availability Central to the Debate?

    1. Technology Divide: EAFs use scrap and emit less carbon than blast furnaces.
    2. Global Scrap Control: US, EU, and UK dominate scrap reserves and exports.
    3. Cost Advantage: Scrap-based producers face lower CBAM exposure.
    4. Structural Disadvantage: Indian producers lack access to adequate scrap volumes.

    What Is India’s Position on CBAM?

    1. Policy Opposition: India views CBAM as a trade barrier rather than a climate solution.
    2. Legal Standpoint: Challenges unilateral climate measures under multilateral trade norms.
    3. Negotiation Strategy: Seeks carve-outs for MSMEs and developing countries.
    4. Global Forums: Raises concerns at WTO and UNCTAD platforms.

    Does CBAM Meaningfully Address Climate Change?

    1. Limited Impact: Expected to mitigate only 0.1% of global CO₂ emissions.
    2. Exported Emissions: Risks shifting emissions geographically rather than reducing them.
    3. Technology Gap: Fails to support transition financing for developing countries.
    4. Policy Mismatch: Emphasises taxation over technology diffusion.

    What Are the Implications for Global Trade Governance?

    1. Precedent Setting: Encourages climate-linked trade barriers by developed economies.
    2. Fragmentation Risk: Weakens multilateral trade consensus.
    3. South-North Divide: Reinforces asymmetry in climate responsibility.
    4. Regulatory Spillover: UK and US considering similar mechanisms.

    Conclusion

    The EU’s Carbon Border Adjustment Mechanism marks a decisive shift in global climate governance by embedding carbon costs into international trade. While framed as a tool to prevent carbon leakage, its unilateral design risks undermining the principles of equity and common but differentiated responsibilities that anchor the global climate regime. For India, the immediate challenge lies in protecting export competitiveness without diluting climate commitments, while the larger task is to push for multilateral, finance- and technology-supported pathways to industrial decarbonisation. The future credibility of global climate action will depend on whether climate ambition is advanced through cooperative transition mechanisms or enforced through trade barriers that deepen developmental asymmetries.

    PYQ Relevance

    [UPSC 2022] Discuss global warming and mention its effects on global climate. Explain the control measures to bring down the level of greenhouse gasses which cause global warming in the light of the Kyoto Protocol 1997. 

    Linkage: CBAM represents a post-Kyoto unilateral climate control measure linked with trade.

  • AI Impact Summit 2026 

    Why in the News?

    Narendra Modi will inaugurate the AI Impact Summit to be held from 15 to 20 February 2026 at Bharat Mandapam, with participation from over 100 countries, according to the Ministry of Electronics and Information Technology.

    About AI Impact Summit

    The AI Impact Summit is a global high level platform focused on shaping responsible, inclusive and outcome driven Artificial Intelligence solutions for productive sectors of the economy.

    Host Country: India

    Key Highlights

    • Participation from over 100 countries
      15 to 20 Heads of Government expected, including France
      15,500 plus registrations from 136 countries
      76 countries from the Global South
      • Over 100 global AI leaders, including CXOs, CSOs, academics, and policy thinkers

    Notable Global Leaders Confirmed

    • Bill Gates, Demis Hassabis, Dario Amodei, Shantanu Narayen, Marc Benioff, Cristiano Amon and Raj Subramaniam

    Core Objective

    • Develop AI solutions for productive sectors
      • Focus areas include: Healthcare, Agriculture, Governance, Education and Manufacturing
    [2025] Consider the following statements regarding AI Action Summit held in Grand Palais, Paris in February 2025: 

    1. Co-chaired with India, the event builds on the advances made at the Bletchley Park Summit held in 2023 and the Seoul Summit held in 2024. 

    2. Along with other countries, the US and UK also signed the declaration on inclusive and sustainable AI. 

    Which of the statements given above is/ are correct? 

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