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Subject: International Relations

  • Third United Nations Conference on Landlocked Developing Countries (LLDC3)

    Why in the News?

    The 3rd UN Conference on Landlocked Developing Countries (LLDC3) in Awaza, Turkmenistan, adopted the Awaza Declaration to boost investment, address challenges, and promote sustainable growth in 32 landlocked nations.

    Third United Nations Conference on Landlocked Developing Countries (LLDC3)

    About Landlocked Developing Countries (LLDCs):

    • Overview: 32 UN-recognized countries with no direct access to the sea, collectively home to over 600 million people.
    • List of LLDCs:
      1. Africa: Botswana, Burkina Faso, Burundi, Central African Republic, Chad, Eswatini, Ethiopia, Lesotho, Malawi, Mali, Niger, Rwanda, South Sudan, Uganda, Zambia, Zimbabwe.
      2. Asia: Afghanistan, Bhutan, Kazakhstan, Kyrgyzstan, Lao People’s Democratic Republic, Mongolia, Nepal, Tajikistan, Turkmenistan, Uzbekistan.
      3. Europe: Armenia, Azerbaijan, North Macedonia, Moldova, Serbia.
      4. South America: Bolivia, Paraguay.
    • Challenges:
      • Dependence on transit countries for global market access.
      • Higher trade and transport costs (often twice those of coastal countries).
      • Limited connectivity, slower growth, and vulnerability to climate impacts.
    • Past Conferences:
      • 2003 (Almaty) – Almaty Programme of Action.
      • 2014 (Vienna) – Vienna Programme of Action (2014–2024).
      • 2025 (Awaza) – Awaza Programme of Action (2024–2034).

    Structure and Functioning:

    • LLDC Conferences: Held every 10 years to review progress and set a new action framework.
    • Awaza Programme of Action (2024–2034) – Priority Areas:
      • Structural transformation, science, technology, and innovation.
      • Trade facilitation and regional integration.
      • Transit, transport, and connectivity.
      • Climate resilience and adaptation.
      • Monitoring and implementation.
    • Stakeholder Participation:
      • UN member states, transit countries, donor agencies, NGOs, private sector, and academia.
    • Mechanisms:
      • UN-wide monitoring framework covering 323 initiatives.
      • Partnerships for infrastructure and digital connectivity.
      • Climate Negotiating Group under UNFCCC for LLDC-specific challenges.
    [UPSC 2013] Which one of the following countries is landlocked?

    Options:  (a) Bolivia* (b) Peru (c) Suriname (d) Uruguay

     

  • Gaza War Impact on IMEC

    Why in the News?

    India’s National Security Council Secretariat recently hosted envoys from the US, UAE, Saudi Arabia, France, Italy, Germany, Israel, Jordan, and the EU to review progress on the India–Middle East–Europe Economic Corridor (IMEC).

    Gaza War Impact on IMEC

    About IMEC Project:

    • Part of the Partnership for Global Infrastructure and Investment (PGII) for developing connectivity in emerging regions.
    • MoU signed on 10 September 2023 at the G20 New Delhi Summit.
    • Members: India, US, UAE, Saudi Arabia, France, Germany, Italy, European Union.
    • Aim: Integrate Asia, Middle East, and Europe to boost transport efficiency, reduce costs, create jobs, cut greenhouse gas emissions, and strengthen economic unity.
    • Structure:
      • East Corridor: India to Arabian Gulf.
      • Northern Corridor: Gulf region to Europe.
    • Key Ports:
      • India – Mundra, Kandla, Jawaharlal Nehru Port (Mumbai).
      • Middle East – Fujairah, Jebel Ali, Abu Dhabi, Dammam, Ras Al Khair.
      • Israel – Haifa.
      • Europe – Piraeus, Messina, Marseille.
    • Infrastructure includes: Railway links, ship-to-rail hubs, roads, electricity cables, hydrogen pipelines, and high-speed data cables.

    Impact of Gaza War:

    • Derailed work: Conflict from late 2023 halted stakeholder meetings and derailed western leg (Middle East–Europe) progress.
    • Jordan–Israel relations at historic low; Saudi–Israel normalisation stalled.
    • Regional rivalries (e.g., Saudi–UAE trade competition) hinder unified operational planning.

    Significance:

    • Economic: EU is India’s largest trading partner; corridor promises faster, cheaper trade with reduced emissions.
    • Strategic: Strengthens India’s role in West Asia and positions it as a connector between Europe and the Middle East.
    • Energy & Technology: Potential for clean hydrogen pipelines, electricity and data cable links.
    • Resilience: Provides alternative to Red Sea shipping routes vulnerable to disruptions.
    [UPSC 2025] India is one of the founding members of the International North-South Transport Corridor (INSTC), a multimodal transportation corridor, which will connect:

    Options: (a) India to Central Asia to Europe via Iran* (b) India to Central Asia via China (c) India to South-East Asia through Bangladesh and Myanmar (d) India to Europe through Azerbaijan

     

  • [8th August 2025] ​The Hindu Op-ed: Mending ties: On state visit of Philippines President to India

    Philippines’ President Ferdinand Marcos Jr.’s visit to India strengthened bilateral ties through a Strategic Partnership Agreement, focusing on defence cooperation, Indo-Pacific security, and future trade collaboration, while also serving broader strategic goals in ASEAN and Indo-Pacific diplomacy.

    Key Highlights of the Visit:

    1. Strategic Partnership Agreement: The Philippines becomes only the fifth country (after Japan, Vietnam, Australia, and South Korea) with which India has signed such an agreement.
    2. Maritime and Defence Cooperation: The Indian Navy held its first joint maritime exercise with the Philippine Navy in the South China Sea. India reaffirmed its support for the 2016 UNCLOS Arbitration Award favouring the Philippines in its dispute with China. Discussions were held to expand defence exports, especially BrahMos missiles and other Indian military hardware. New agreements include exchanges between all three services and Coast Guards.
    3. Connectivity and People-to-People Ties: Both countries agreed to begin direct flights and ease visa restrictions to facilitate travel and business.
    4. Economic and Trade Dimensions:
      • Bilateral trade remains modest at $3.3 billion (2024-25).
      • Investments are growing in technology and pharmaceuticals.
      • Talks to launch a Preferential Trade Agreement (PTA) have been initiated.
      • India’s decision to revise the ASEAN-India Trade in Goods Agreement (AITIGA) reflects renewed trade diplomacy.

    India’s Broader Indo-Pacific Strategy:

    1. Indo-Pacific strategy beyond the spectrum of Quad: India’s engagement with the Philippines shows its intention to look beyond the Quad (India, USA, Japan, Australia) in Indo-Pacific diplomacy. India is pushing for multipolar partnerships, focused on maritime security, trade resilience, and a rules-based international order.
    2. ASEAN & Indo-Pacific Messaging: The Philippines is the incoming chair for ASEAN in 2026 and the coordinator for the ASEAN-India comprehensive strategic partnership. This gives India a crucial partner to enhance its engagement with the bloc.

    Dimensions of India-Philippines Relations

    Historical and Cultural Links:

    • Diplomatic relations were formally established on November 26, 1949, soon after both nations gained independence.
    • Historical ties and shared civilizational links, though not fully documented, point to a long-standing connection.
    • A Treaty of Friendship was signed in 1952.
    • India’s “Look East Policy” (1992) and subsequent “Act East Policy” (2014) have been instrumental in revitalizing and intensifying the relationship.
    • 2019: BrahMos missile deal initiated, the Philippines becomes the first foreign buyer

    Common Issues and Contemporary Challenges:

    • South China Sea Dispute: Both countries face challenges from China’s expansive territorial claims and assertive actions. India supports international law and a rules-based order, which aligns with the Philippines’ interests.
    • Terrorism and Maritime Security: Both nations are susceptible to terrorism and face non-traditional security threats, making cooperation in these areas crucial.
    • Economic Liberalization and Trade: Navigating the complexities of global trade, especially in the face of protectionist policies from major powers like the U.S., is a common challenge that both countries are addressing through initiatives like the potential PTA.

    The recent meeting has elevated India-Philippines ties to a new level, rooted in mutual concerns over regional security, strategic autonomy, and economic cooperation. As ASEAN dynamics evolve and geopolitical tensions rise, such partnerships provide stability and avenues for cooperation in the Indo-Pacific. India’s outreach to the Philippines affirms its commitment to an inclusive regional order and diversified diplomacy.

    Mains Practice Question:

    1. The recent elevation of India-Philippines relations to a Strategic Partnership is part of India’s larger Indo-Pacific vision. Discuss the significance of this development in the context of ASEAN, regional security, and India’s Act East Policy.

  • [7th August 2025] The Hindu Op-ed: Decoding China, the lessons for a vulnerable India

    Recent actions by China, such as the withdrawal of engineers from India, are not isolated events but a deliberate geo-economic manoeuvre. This strategy is driven by China’s apprehension of a rising India and its ambition to maintain a ‘unipolar Asia’. 

    Recent Actions Undertaken by China against India’s interest:

    1. Recalling over 300 Chinese engineers from iPhone manufacturing facilities in India.
    2. Restricting exports of rare earths and critical minerals to India.
    3. Informal trade restrictions on the export of capital equipment including high-end manufacturing equipment for electronics assembly heavy-duty boring machines and solar equipment to India.

    China’s Geo-economic Manoeuvre against India:

    “It is a meticulously calibrated stratagem, designed to arrest India’s burgeoning manufacturing ambitions.”

    • Impending Technology Transfer: The withdrawal of the Chinese engineers reflects China’s calculated move to Disrupt technology transfer and Stall India’s capacity-building in advanced electronics manufacturing. By pulling out talent, it ensures that ‘India’s learning curve in high-precision, high-efficiency manufacturing remains steep.’
    • Subtle yet potent strategy: As India positions itself in global supply chains through initiatives like Production Linked Incentive (PLI) schemes, any delay in technology adoption weakens India’s global competitiveness.
    • Weaponization of Supply Chains: By restricting exports of rare earths, critical minerals, and high-end manufacturing equipment, China leverages its control over global supply chains to disrupt India’s industrial ambitions. These informal trade restrictions are non-transparent and hence are hard to contest, create uncertainty and increase costs.
    • Weaponising Overcapacity: Price War as Strategy: China’s industrial overproduction is used deliberately to crash prices and drive out competition. BYD in electric vehicles is flooding global markets with ultra-cheap products. This makes it hard for nations like India to compete fairly, stalling local industries.

    Difference in Manufacturing Ecosystems of India and China:

    China

    India
    Systemic Industrial Dominance:

    1. Not accidental, but strategic: China’s industrial pre-eminence is not trivial, it has been built through decades of strong policies, investments, and planning.

    2. Covers critical and emerging sectors:

    Like, Artificial Intelligence (AI), Quantum computing, 6G telecommunications, Electric Vehicles (EVs)

    3. Controls global supply chains:

    China does not merely export goods, it orchestrates and controls global supply chains, from raw materials to finished products.

    4. Weaponising overcapacity: Overproduction (a sign of weakness elsewhere) is strategically used by China to lower global prices, making it hard for other countries to compete.

    5. Aggressive pricing = market capture:

    This stifles new competitors and helps China maintain dominance.

    6. Economic statecraft by China: China uses its manufacturing power as a geo-economic tool to stay ahead globally and protect its export-driven economy.

    		 Challenges Faced:

    1. Nascent Manufacturing Ecosystem:

    Compared to China, India is still in the early stages of becoming a global manufacturing power.

    2. Facing many hurdles: Poor infrastructure infrastructure lacunae)

    3. Complex government procedures (bureaucratic red tape)

    4. High import dependence: India still imports many critical components like Semiconductors, Sophisticated chips, Sensors, Engines

    5. Limited local capability:

    Even basic assembly-level manufacturing (referred to as “screwdriver technology“) depends on external help.

    6. “Make in India” needs outside support:

    While the goal is self-reliance, India is still not fully capable of producing independently, especially in high-tech sectors.

    India’s Strategic Dilemma: Even as India tries to de-risk from China by aligning with the West, it faces challenges like US tariff hikes on Indian goods and Exemptions given to China despite its pro-Russia stance. This underscores the need for true strategic autonomy building resilient internal capacities rather than over-dependence on foreign goodwill.

    Way Forward:

    Based on China’s strategy of weaponizing its supply chains, India should adopt a multi-pronged response to enhance its own strategic and economic resilience.

    1. Bolster Domestic Manufacturing: India must double down on initiatives like the Production Linked Incentive (PLI) scheme to reduce its import dependence on high-value electronics and components.
    2. Diversify Supply Chains and Sourcing: Actively seek alternative suppliers and build resilient supply chains with like-minded countries to reduce over-reliance on a single nation for critical goods. For example, India is a part of the Supply Chain Resilience Initiative (SCRI), a trilateral framework with Japan and Australia.
    3. Invest in Strategic Alliances: India should utilize multilateral platforms such as the Quad and forge bilateral partnerships to secure access to critical minerals and technologies.
    4. Boost Domestic Critical Mineral Exploration: It is essential to intensify domestic exploration and processing of critical minerals through missions like the National Critical Minerals Mission (NCMM) to achieve self-reliance.
    5. Leverage Economic Diplomacy: India should use trade agreements and international forums like the WTO to challenge informal trade restrictions and protect its emerging industries from coercive practices.

    China’s aggressive external policies are a direct result of its domestic problems, such as an aging population and economic overcapacity. This forces it to rely on exports, making any competitor like India a perceived threat. As Henry Kissinger said, “Empires have no interest in operating within an international system; they aspire to be the international system.” This highlights the need for India to build its own strategic autonomy and avoid relying on fragile alliances.

     

    Value Addition:

    Quotes by Famous Scholars that can be used in the India-China Relation Topic:

    1. “India lives in a tough neighbourhood. It needs to be wise, not merely strong.” — Shivshankar Menon

    2. “In geopolitics, economics is not just policy — it’s a weapon.” — Henry Kissinger

     

    Mains Practice Questions:

    GS2 (IR): “China’s geo-economic manoeuvres are a reflection of its internal compulsions and not just strategic rivalry.” Elucidate with reference to recent developments in India-China trade relations.

    GS3 (Economy): “India’s ambition to become a global manufacturing hub faces challenges both internal and external.” Discuss the role of strategic autonomy in achieving self-reliance in electronics and high-tech sectors.

  • Intermediate-Range Nuclear Forces (INF) Treaty

    Why in the News?

    Russia officially announced its exit from the 1987 Intermediate-Range Nuclear Forces (INF) Treaty, marking a pivotal moment in the dismantling of Cold War-era nuclear arms control architecture.

    What is the INF Treaty?

    • Signed In: 1987 by United States President Ronald Reagan and Soviet leader Mikhail Gorbachev.
    • Purpose: Banned ground-launched ballistic and cruise missiles with ranges between 500 and 5,500 kilometers.
    • Impact: Led to the elimination of 2,692 missiles by June 1, 1991.
    • Verification: Allowed on-site inspections, setting a benchmark for arms control agreements.
    • Scope: Covered both nuclear and conventional missile systems.
    • Significance: Became a key pillar of post-Cold War strategic stability.

    Why did Russia exit the Treaty?

    Implications:

    • Collapse of Arms Control: Removes a pillar of nuclear restraint.
    • Resurgence of Arms Race: Possible missile deployments in Europe & Asia-Pacific.
    • Regional Threats: NATO countries & East Asia more vulnerable.
    • Proliferation Risk: May embolden China, India, and others.
    [UPSC 2011] The “New START” treaty was in the news. What is this treaty?

    (a) It is a bilateral strategic nuclear arms reduction treaty between the USA and the Russian Federation.*

    (b) It is a multilateral energy security cooperation treaty among the members of the East Asia Summit.

    (c) It is a treaty between the Russian Federation and the European Union for energy security cooperation.

    (d) It is a multilateral cooperation treaty among the BRICS countries for the promotion of trade.

     

  • India– U.S. Trade Friction Escalates Amid Russian Oil Dealings

    President Trump announces steep tariff hikes on Indian imports over continued Russian oil purchases; India calls it “unjustified and unreasonable”.

    Context and Relevance (GS2 – International Relations, GS3 – Economy, Trade Policy):

    In a move that has strained India–U.S. economic ties, U.S. President Donald Trump has announced plans to “substantially” increase tariffs on Indian goods. This decision comes days after a 25% tariff plus penalty was imposed, with Trump citing India’s oil imports from Russia as the trigger. India has hit back, defending its energy security needs and calling out the West’s own trade with Russia.

    This development adds to the geopolitical-economic complexity facing India’s foreign policy and trade decisions in the wake of the Russia–Ukraine conflict.

    What are Tariffs?

    1. A tariff is a tax imposed by a government on imported goods.
    2. Tariffs make foreign goods costlier, potentially protecting domestic industries but also risking retaliation and higher consumer prices.

    Sectors Likely to Be Affected

    1. Pharmaceuticals – India is a major exporter of generic drugs to the U.S.; tariffs could increase prices and affect competitiveness.
    2. Metals and Engineering Goods – Steel, aluminum, and other value-added metals are vulnerable.
    3. Textiles and Apparel – A major Indian export to the U.S. which operates on thin margins.
    4. IT Services (Indirect Impact) – Not under direct tariff but can be impacted by broader deterioration in trade ties.
    5. Petrochemicals and Refined Products – As India refines and re-exports Russian crude, this area could come under scrutiny.
    6. Defence Procurement and Technology Sharing – Strategic relations could take a hit, affecting high-tech transfers.
    7. Startups and Digital Trade – New tech collaborations may slow if the overall atmosphere deteriorates.

    Why is the U.S. Taking This Step:

    President Trump’s reasoning includes:

    1. India allegedly buying “massive amounts of Russian oil” and re-exporting it for profits.
    2. High Indian tariffs and non-tariff barriers that restrict U.S. goods.
    3. India’s continued energy and defence cooperation with Russia.
    4. Trump’s argument taps into U.S. domestic concerns around trade imbalances and perceived strategic neutrality by India on the Russia–Ukraine issue.

    India’s Stand: Energy Security First:

    India’s Ministry of External Affairs (MEA) issued a strong rebuttal:

    1. India started buying from Russia when traditional suppliers diverted oil to Europe.
    2. The U.S. itself had encouraged these imports to stabilise global markets.
    3. Western nations continue trading with Russia in: LNG, uranium, palladium, fertilisers, and chemicals.
    4. EU–Russia bilateral trade in 2024 exceeded €84.7 billion (goods + services).

    India argued that its trade was a “vital compulsion”, unlike the West’s “strategic choice”.

     

    Economic and Strategic Implications for India:

    Core Economic Concepts at Play

    1. Trade Diversion & Substitution: U.S. importers may turn to other countries, diverting trade away from India.
    2. Protectionism vs Globalisation: Rising protectionism threatens the rules-based global trade order.
    3. Non-Tariff Barriers Debate: Focus returns to India’s complex regulatory environment that discourages FDI and foreign trade.
    4. Elasticity of Demand for Indian Exports: Tariff hikes could reveal price sensitivity in sectors like pharma and textiles.

    Foreign Policy and Strategic Autonomy

    1. India’s multi-alignment strategy is being tested.
    2. Strategic autonomy in energy choices now faces economic costs.

    Impact on India’s Export Competitiveness

    • With countries like Vietnam, Mexico, and Indonesia unaffected by such tariffs, India faces a competitive disadvantage.

    Investor Confidence

    • Heightened U.S.–India tensions could create policy uncertainty for foreign investors.

    Way Forward for India:

    1. Bilateral Negotiations: Urgent dialogue needed through trade channels to de-escalate.
    2. Diversification: India must strengthen ties with other large markets (e.g., EU, ASEAN, Africa).
    3. Strengthen Domestic Industry: Boost manufacturing competitiveness through PLI schemes, FTAs, and ease of doing business.
    4. Energy Diplomacy: Deepen engagement with Gulf countries and renewables to reduce over-dependence on Russia.

    Conclusion:

    This episode is a litmus test for India’s balancing act between strategic autonomy and economic pragmatism. It also reflects the larger trend of global economic nationalism overshadowing multilateral cooperation. India will need to walk a tightrope between asserting its sovereign right to energy security and preserving its vital trade relationships.

     

    Sample UPSC Mains Question (GS2/GS3 – 15 Marks)

    In the wake of rising global protectionism and India’s continued energy trade with Russia, critically examine the impact of unilateral tariff impositions by developed nations on India’s strategic autonomy and export competitiveness. Suggest a multi-pronged approach to mitigate such risks.

     

  • How does the World Bank classify countries by income?

    Why in the News?

    Recently, the World Bank’s 2024 update to its income classification system revealed major shifts, with a sharp decline in low-income populations and a rise in upper-middle-income countries.

    Global Income Classification Trends (2004–2024): Key Shifts in Population Distribution: 

    • Global Shift Upwards: The share of the world population in low-income countries dropped from 37.4% in 2004 to 7.6% in 2024, showing significant poverty reduction.
    • Rise of Upper-Middle Group: The population in upper-middle-income countries rose from 8.9% in 2004 to 34.7% in 2024, indicating broad economic progress in many developing nations.
    • Lower-Middle Income Stability: The lower-middle-income group has remained relatively stable, around 38–40% of global population from 2004 to 2024.
    • High-Income Countries’ Share Fluctuated: The global population in high-income nations peaked at 18.9% in 2014, then slightly declined to 17.4% in 2024.
    • Country Reclassifications: Countries like India and Indonesia moved to higher income groups, while some African countries remained or slipped into low-income status.

    What is the World Bank’s income classification?

    • Four Income Groups: Countries are classified into low, lower-middle, upper-middle, and high-income based on their Gross National Income (GNI) per capita.
    • Annual Update: Classifications are updated yearly, adjusting for global inflation and changes in income.
    • Absolute Thresholds: Groupings are based on fixed income thresholds, not relative comparisons with other countries.
      • Low income: GNI per capita ≤ $1,135
      • Lower-middle income: $1,136 – $4,465
      • Upper-middle income: $4,466 – $13,845
      • High income: ≥ $13,846

    How is GNI per capita used in this system?

    • It measures the average income per person, including income from abroad.
    • GNI figures (reported in local currency) are converted to USD using exchange rates.
    • Countries are placed into groups using predetermined income thresholds.

    Why do countries shift between income groups?

    • Economic Growth or Decline: Strong GDP growth raises GNI per capita, moving countries to higher groups. Eg: India’s GNI per capita rose from $2,250 (2022) to $2,610 (2023), nearing upper-middle-income status.
    • Currency Exchange Fluctuations: A weaker local currency reduces GNI in USD terms. Eg: Egypt’s currency depreciation led its GNI per capita to fall from $3,890 (2022) to $3,240 (2023), reclassifying it from upper-middle to lower-middle-income.
    • Population Growth Rates: Fast population growth reduces GNI per capita even if total income rises. Eg: Nigeria’s large population growth kept its GNI per capita at $2,110 (2023), maintaining its lower-middle-income status.

    What are the challenges for India as a Lower-Middle-Income Country?

    • Limited Fiscal Space: India struggles to allocate sufficient funds for healthcare, education, and infrastructure. Eg: Public health spending remains around 2% of GDP, below the global average of 5–6%.
    • High Income Inequality: Rapid growth hasn’t translated into equitable wealth distribution. Eg: The top 10% in India hold nearly 77% of total national wealth (Oxfam, 2023).
    • Jobless Growth: Economic expansion hasn’t created enough formal sector jobs. Eg: Despite over 6% GDP growth, unemployment among youth remains high at around 45% (CMIE, 2023).

    What are the steps taken by the Indian government?

    • PM Gati Shakti Mission: Enhances infrastructure development for seamless connectivity and job creation.
    • National Education Policy (NEP) 2020: Aims to improve access, equity, and quality in education, especially in rural areas.
    • Ayushman Bharat Scheme: Provides free healthcare to over 50 crore people, addressing public health gaps.
    • Make in India & PLI Schemes: Promote domestic manufacturing and boost employment across key sectors.
    • Digital India & Skill India: Focuses on digital inclusion and vocational training to equip youth with employable skills.

    Way forward: 

    • Accelerate Inclusive Economic Growth: Focus on MSMEs, rural entrepreneurship, and labour-intensive sectors to boost incomes and job creation.
    • Invest in Human Capital: Enhance education quality, healthcare access, and nutritional outcomes, especially for the poor.
    • Strengthen Social Safety Nets: Expand direct benefit transfers (DBTs) and targeted subsidies to reduce vulnerability and inequality.
    • Promote Technological Innovation: Support startups, R&D, and digital infrastructure to drive productivity and global competitiveness.

    Mains PYQ:

    [UPSC 2013] The World Bank and the IMF, collectively known as the Bretton Woods Institutions, are the two inter-governmental pillars supporting the structure of the world’s economic and financial order. Superficially, the World Bank and the IMF exhibit many common characteristics, yet their role, functions and mandate are distinctly different. Elucidate.

    Linkage: This question directly asks about the World Bank’s role, functions, and mandate. A fundamental aspect of the World Bank’s function is its income classification system, which was initially designed to determine eligibility for loans, particularly concessional ones, based on a country’s average income.

  • Another slip up by India in the trade pact with the U.K.

    Why in the News?

    Concerns have emerged over India’s commitments in the India-UK Comprehensive Economic and Trade Agreement (CETA), particularly Article 13.6 on intellectual property. Critics argue it weakens India’s long-standing stance on compulsory licensing, favouring voluntary mechanisms instead.

    How does Article 13.6 affect medicine access in India?

    • Dilution of Compulsory Licensing Rights: The Article 13.6 of CETA favours voluntary licensing over compulsory licensing, reducing India’s legal room to ensure affordable drug access, especially during public health emergencies.
    • Reduced Policy Space in Patent Law: Provisions like weakening the “working requirement” restrict India’s ability to revoke non-working foreign patents, hampering local production of essential medicines.
    • Dependence on Foreign Patent Holders: Voluntary licensing shifts control to multinational corporations, allowing them to set restrictive terms, often limiting distribution, pricing, and manufacturing flexibility for Indian firms.
    • Loss of Global TRIPS Advocacy Role
      India’s past leadership in pushing for TRIPS flexibilities (Doha Declaration) is undermined, affecting its credibility in representing developing countries’ interests in global forums.
    • Risk to Access and Affordability of Medicines: The FTA could hinder production of low-cost generics, making life-saving drugs less accessible to Indian citizens and low-income countries relying on Indian pharma exports.

    What is Voluntary Licensing?

    Voluntary licensing is when the patent holder (usually a pharmaceutical company) gives permission to another company (often in another country) to produce and sell its patented product, usually generic versions under agreed terms and conditions.

    What is Compulsory Licensing?

    Compulsory licensing is when a government allows someone else to produce a patented product or process without the consent of the patent holder, usually under specific public interest grounds such as health emergencies.

    Which global rules backed India’s earlier patent stand?

    • TRIPS Agreement (WTO):  Allowed for compulsory licensing under public health grounds, helping India prioritize affordable access over strict patent monopolies.
    • Doha Declaration on TRIPS and Public Health (2001): Reaffirmed countries’ right to protect public health and promote access to medicines, supporting India’s flexible patent stance.
    • Paragraph 6 System (WTO, 2003): Enabled countries like India to export generic medicines to nations lacking manufacturing capacity, aligning with its role as the “pharmacy of the world.”
    • Indian Patent Act, 1970 (amended in 2005): Incorporated TRIPS flexibilities such as compulsory licensing and strict patentability criteria (e.g. Section 3(d)) to prevent evergreening.
    • UN High-Level Panel on Access to Medicines (2016): Emphasized that IP rights should not override public health, validating India’s position on balancing innovation and accessibility.

    What should be done? 

    • Reaffirm TRIPS Flexibilities in Trade Negotiations: India must ensure that all future FTAs explicitly protect its right to use compulsory licensing and patent law flexibilitiesunder the TRIPS Agreement.
    • Strengthen Domestic Patent Law: Amend and reinforce provisions like the “working requirement” to protect public health and allow challenges to non-working or unaffordable patents.
    • Enhance Public Health Safeguards in FTAs: Negotiate clear exceptions for essential medicines and green technology, ensuring that IP provisions do not override public interest obligations.
    • Build Strategic Alliances with Global South: Collaborate with developing countries to collectively oppose IP-heavy provisions in trade deals and promote affordable access to medicines globally.
    • Promote Indigenous Innovation and R&D: Invest in public sector research and incentivize Indian pharma and green tech innovation to reduce dependency on foreign patents and strengthen self-reliance.

    Mains PYQ:

    [UPSC 2024] Discuss the implications of Intellectual Property rights with respect to life materials? Although, India is second in the world to file patents, still only a few have been commercialized. Explain the reasons behind this less commercialization.

    Linkage: This question directly asks about “Intellectual Property rights with respect to life materials” and patents. The article talks about the implications of India’s CETA commitments on its patent regime concerning “patented medicines” and the “patent system”. The “slip up” in the trade pact is precisely about India compromising its traditional stance on IPR, particularly regarding access to medicines, which is a direct implication of intellectual property rights on life materials.

  • [2nd August 2025] The Hindu Op-ed: What has been missed is India’s digital sovereignty

    PYQ Relevance:

    [UPSC 2024] Right to privacy is intrinsic to life and personal liberty and is inherently protected under Article 21 of the Constitution. Explain. In this reference discuss the law relating to D.N.A. testing of a child in the womb to establish its paternity.

    Linkage: The article highlights that data is the “digital era’s most valuable resource” and that compromising its control, including individual data, poses “serious security risks” and affects national competitive advantage. Safeguarding personal data is a crucial component of asserting digital sovereignty.

     

    Mentor’s Comment:  The India–UK FTA, recently finalised, is hailed as a “gold standard” but raises concerns over digital sovereignty. India conceded access to source code and government data, weakening regulatory control and AI innovation leverage. The deal also marks a shift from India’s previous global stand on data localisation, contrasting positions taken even by countries like the US.

    Today’s editorial analyses the concerns over digital sovereignty in the India-UK FTA. This topic is important for GS Paper II (International Relations) in the UPSC mains exam.

    _

    Let’s learn!

    Why in the News?

    The India–United Kingdom Free Trade Agreement (FTA), officially called the Comprehensive Economic and Trade Agreement (CETA), is in the news because of a significant debate over its provisions for the digital sector and digital sovereignty.

    What digital issues arise from the India-UK FTA?

    • Unrestricted Use of Public Data: UK firms gain equal access to Indian public datasets, affecting domestic innovation potential. Eg: British companies can commercially exploit Indian transport or agricultural data.
    • Weakened Data Localization Autonomy: India must engage in consultations before enacting data rules, reducing flexibility.  
    • No Safeguards for Critical Infrastructure: The deal doesn’t exempt sensitive sectors from source code restrictions. Eg: India can’t review software running in strategic areas like nuclear power plants.
    • Lack of Coherent Digital Trade Policy: Commitments were made without a clear digital governance framework. Eg: Digital clauses went unchallenged, unlike the agricultural sector, which had strong negotiation backing.
    • Restricted Source Code Access: India is barred from demanding source code or algorithms, limiting oversight.

    What is Source Code?

    Source code is the original set of instructions written by a programmer in a human-readable programming language (like Python, Java, or C++) that defines how a software program works.

    How does source code access loss affect India’s digital control?

    • Weakens Cyber Sovereignty: Without access to source code, India cannot verify or modify software behavior, increasing reliance on foreign tech. Foreign telecom equipment may have backdoors compromising national security.
    •  Inhibits Regulatory Oversight: Lack of access hinders the ability of Indian regulators to audit algorithms or ensure compliance with local laws. Eg: India can’t fully inspect e-commerce platforms’ pricing algorithms for anti-competitive behavior.
    • Compromises Data Privacy & Security: Source code opacity prevents India from detecting data leaks or unauthorized data transfers.

    Why is a digital policy crucial for India’s trade interests?

    • Ensures Data Sovereignty: A strong policy helps India control how data is stored and used globally. Eg: Prevents sensitive health data from being transferred without oversight.
    • Protects Domestic Industry: Clear rules support Indian startups against unfair access by global players. Eg: Limits foreign firms from exploiting local e-commerce data.
    • Strengthens Negotiation Power: Defined digital laws give India leverage in FTA talks. Eg: Helps resist pressure to allow free cross-border data flow in trade deals.
    • Secures National Interests: Policy enables checks on cybersecurity threats and foreign surveillance. Eg: Restricts flow of defence-related digital information.
    • Boosts Digital Economy: Promotes data-driven innovation and economic growth through regulation. Eg: Encourages investment in Indian cloud services by assuring legal clarity.

    Way forward: 

    • Reassess Digital Commitments: Review FTA clauses that compromise digital sovereignty and seek renegotiation if needed.
    • Strengthen Data Protection Laws: Enforce robust data localisation and privacy regulations to safeguard national interest.
    • Ensure Source Code Access: Mandate conditional access to critical software for security audits and public interest.
    • Promote Indigenous Tech: Invest in local AI and digital infrastructure to reduce foreign dependency.
    • Align Trade with Policy: Harmonise trade agreements with India’s long-term digital and strategic goals.

  • How much India should trade with Russia must not be guided by Western diktat

    Why in the News?

    Recently, US President Donald Trump has threatened additional penalties on Indian imports, specifically targeting India’s purchase of discounted Russian oil.

    Why is India buying more oil from Russia?

    • Steep Price Discounts: Russian crude is sold at prices significantly below global benchmarks. In FY 2024-25, India imported $56.9 billion worth of mineral fuels from Russia, up from $2.1 billion in 2020-21.
    • Energy Security Priority: Ensuring affordable and reliable energy is vital for India’s economic stability and consumer welfare.
    • No UN Sanctions: India legally continues trade since Russian oil is not under United Nations sanctions, unlike US/EU bans. India cites international legality and moral justification for its purchases.
    • Strategic Pragmatism: India follows a non-aligned, interest-driven foreign policy, prioritizing national needs over bloc politics.

    What are the impacts of the US and NATO warnings on India?

    • Trade Penalty Threats: The US has imposed a 25% tariff on Indian goods and hinted at an additional penalty linked to India’s energy trade with Russia.
    • Secondary Sanctions Warning: NATO has warned that countries continuing business with Russia may face secondary sanctions. NATO Secretary General Mark Rutte issued a caution to India, China, and Brazil for sustaining Russia’s wartime economy.
    • Legislative Pressure in the US: A proposed US Congressional bill seeks a 500% duty on imports from nations trading in Russian-origin petroleum and uranium. If passed, this could impact Indian exports to the US due to its engagement in discounted Russian oil.
    • Strained Strategic Ties: Continued trade with Russia risks diplomatic friction with key Western allies, affecting defence cooperation and technology sharing. India’s balancing strategy between Russia and the West becomes harder as the Western bloc consolidates against Moscow.
    • Push for Energy Diversification: Western pressure is pushing India to rethink its energy security strategy and reduce dependence on Russian crude.

    How can India change its strategy to buy oil from other countries?

    • Diversify Import Sources: India can increase crude purchases from Gulf countries, the US, Latin America, and Africa to reduce dependence on Russia. Eg: India has ramped up imports from Iraq and Saudi Arabia, traditionally among its top suppliers.
    • Sign Long-term Contracts: Establish long-term supply agreements with stable oil-exporting nations to ensure steady and secure inflow. Eg: India signed a long-term deal with Abu Dhabi National Oil Company (ADNOC) for crude supply and storage.
    • Invest in Strategic Partnerships: Strengthen ties through energy diplomacy and joint ventures in oil exploration and production abroad. Eg: Indian PSUs like ONGC Videsh have stakes in oil fields in Vietnam, Venezuela, and Russia.
    • Leverage Spot Market and Strategic Reserves: Use the global spot market for short-term deals and enhance strategic petroleum reserves (SPRs). Eg: India has bought crude from the US and Nigeria on the spot market during price dips.
    • Boost Domestic Refining Flexibility: Upgrade refineries to process diverse crude grades, enabling imports from a wider range of countries. Eg: Reliance and Indian Oil refineries are capable of handling crude from the US, Middle East, and West Africa.

    How can India protect its interests and handle pressure? (Way forward)

    • Prioritize Strategic Autonomy: India should maintain an independent foreign policy, making decisions based on national interest rather than aligning with any geopolitical bloc.
    • Engage in Diplomatic Dialogue: Proactively communicate with Western partners to explain its energy needs and seek carve-outs or exemptions from potential sanctions.
    • Strengthen Domestic Resilience: Increase investments in renewable energy, expand strategic oil reserves, and boost refining capacity to reduce vulnerability to external shocks.
    • Balance Competing Relationships: Carefully navigate ties with both Russia and the West, ensuring that economic cooperation does not compromise strategic partnerships elsewhere.

    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 question highlights the tension arising when India seeks to act according to its “National self-esteem and ambitions” rather than conforming to a global strategy dictated by another power (the US). This strongly aligns with the idea of India making independent decisions guided by its own interests.