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Subject: International Relations

  • The academic link between Nepal and India

    Why in the News?

    On February 16, a third-year female student from Nepal died by suicide at Kalinga Institute of Industrial Technology (KIIT) in Bhubaneswar.

    What were the reasons behind the protests by Nepali students at KIIT, Bhubaneswar?

    • Harassment and University Inaction: Nepali students protested after a third-year Nepali woman student died by suicide, allegedly due to harassment by a male student. Despite multiple complaints, the university failed to take action. Example: The deceased student had repeatedly reported the harassment to university authorities, but no substantial steps were taken to address her concerns.
    • Forced Campus Eviction: KIIT ordered Nepali students to vacate the campus following the protests, which was viewed as an unjust punishment against the entire community. Example: Instead of addressing the harassment claims, the university’s eviction order further alienated Nepali students, leading to greater unrest.
    • Demand for Justice and Fair Treatment: Students sought accountability for the harassment and fair treatment under the Indo-Nepal Peace Treaty of 1950, which ensures equal rights for Nepali citizens in India. Example: Protesters argued that the eviction violated Articles 6 and 7 of the treaty, which guarantee the right to residence and fair treatment.

    Why is Nepal’s education system being influenced by the colonial legacy of British India?

    • Affiliation with Indian Universities: Nepal’s first college, Tri-Chandra College (established in 1918), was affiliated with Indian universities (Calcutta and later Patna University), controlling courses, pedagogy, and examinations.
    • Dependence on Indian Instructors: Early instructors in Nepal’s education system were trained in Indian universities, leading to the adoption of Indian academic frameworks.
    • Limited Domestic Higher Education: Until Tribhuvan University was established in 1959, Nepal lacked postgraduate education, forcing students to seek higher education in India.
    • Colonial Curriculum: The content of education remained heavily influenced by British India’s system, limiting the development of Nepal-centric academic discourse.
    • Post-1950 Reforms: Efforts like the National Educational Planning Commission (1954) and New Education System Plan (1971) aimed to “Nepalise” the system, yet the intellectual field continued to be shaped by Indian education.

    In what way is the KIIT incident linked to the Indo-Nepal Peace Treaty of 1950, especially Articles 6 and 7?

    • Violation of Equal Treatment (Article 6): Article 6 of the Indo-Nepal Peace Treaty ensures that citizens of Nepal and India receive “national treatment” in each other’s territories. The directive for Nepali students to vacate the KIIT campus violated this provision by treating them differently based on their nationality.
    • Infringement on the Right to Residence (Article 7): Article 7 grants Nepali citizens the right to reside in India without discrimination. KIIT’s order to vacate the premises directly infringed on this right, as it targeted Nepali students exclusively.
    • Impact on Educational Access (Article 7): The Treaty allows Nepali citizens to pursue education in India without barriers. The disruption of academic activities and the evacuation order restricted their educational access, breaching this provision.

    Way forward: 

    • Strengthening Institutional Accountability: Ensure universities establish robust grievance redressal mechanisms to address harassment complaints promptly and impartially. Independent inquiry committees should be set up to investigate incidents, ensuring transparency and justice.
    • Upholding Treaty Commitments: Indian institutions must align their policies with the Indo-Nepal Peace Treaty, guaranteeing equal treatment and the right to residence for Nepali students. Regular dialogue between Indian and Nepali authorities can help prevent future violations.

    Mains PYQ:

    Q Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to the appointment of judges of higher judiciary in India.(UPSC IAS/2017)

  • U.S. will impose reciprocal tariffs from April 2: Trump

    Why in the News?

    U.S. President Donald Trump criticised the high tariffs imposed by India and other countries, calling them “very unfair,” and announced that reciprocal tariffs would be implemented from April 2 on nations that levy duties on American goods.

    tariff US

    What are the main reasons for imposing reciprocal tariffs on countries like India and China?

    • High Import Tariffs Imposed by These Countries: The U.S. administration has expressed concerns over the substantial tariffs that nations such as India and China impose on American goods. For instance, India charges auto tariffs exceeding 100%.
    • Trade Imbalances: The U.S. aims to address significant trade deficits with countries like China. By imposing reciprocal tariffs, the U.S. seeks to encourage these nations to reduce their tariffs and open their markets to American products, thereby promoting fairer trade practices.
    • Protection of Domestic Industries: High tariffs from countries like China have adversely affected U.S. industries, particularly manufacturing and agriculture. The reciprocal tariffs are intended to protect these sectors from unfair competition and to support domestic employment.

    Why did USA’s President emphasize that India “will not be spared” from the reciprocal tariff measures?

    The U.S. President emphasized that India “will not be spared” from reciprocal tariff measures due to several key factors:

    • High Tariffs Imposed by India on U.S. Goods: The U.S. argues that India imposes excessively high tariffs on American products, particularly in the automobile and agricultural sectors. Example: India levies over 100% import duty on U.S. motorcycles like Harley-Davidson, which the U.S. considers an unfair trade barrier.
    • Trade Imbalance Between the U.S. and India: The U.S. has consistently faced a trade deficit with India, meaning India exports more to the U.S. than it imports. This imbalance is viewed as economically disadvantageous. Example: In 2023, the U.S. trade deficit with India was approximately $42 billion, prompting calls for more balanced trade relations.
    • Market Access Restrictions: The U.S. claims India imposes non-tariff barriers and complex regulatory frameworks, limiting American companies’ access to the Indian market. Example: U.S. agricultural products such as dairy face strict Indian regulations on sourcing and labeling, restricting their market entry.
    • Retaliation Against U.S. Tariff Policies: India has imposed retaliatory tariffs on several U.S. products in response to American tariffs on steel and aluminum. This reciprocal action has escalated trade tensions. Example: After the U.S. raised tariffs on Indian steel (25%) and aluminum (10%), India imposed tariffs on U.S. agricultural products like almonds and apples.
    • Strategic Leverage in Trade Negotiations: By targeting major trading partners like India, the U.S. aims to pressure these countries into negotiating more favorable trade agreements. Example: The U.S. sought reduced tariffs on electric vehicles to facilitate the entry of companies like Tesla into the Indian market, using tariff threats as a bargaining tool.

    What are the potential global trade implications of the U.S. imposing reciprocal tariffs? 

    • Escalation of Global Trade Wars: Reciprocal tariffs can trigger retaliatory measures from affected countries, leading to prolonged trade conflicts and increased global economic uncertainty. Example: After the U.S. imposed tariffs on Chinese goods under Section 301, China retaliated with tariffs on U.S. agricultural products, disrupting global supply chains and trade flows.
    • Rising Costs for Consumers and Businesses: Increased tariffs raise the cost of imported goods, leading to higher prices for consumers and increased production costs for businesses reliant on global supply chains. Example: U.S. tariffs on Chinese electronics increased costs for American companies like Apple, which faced higher prices for components and devices.
    • Disruption of Global Trade Agreements and Alliances: Imposing unilateral tariffs undermines multilateral trade frameworks like the World Trade Organization (WTO), weakening global cooperation and trade stability. Example: U.S. tariffs on European steel and aluminum strained transatlantic relations and led the EU to impose counter-tariffs on American motorcycles and bourbon.

    How will it impact India? 

    • Widening of the Current Account Deficit (CAD): Higher U.S. tariffs on Indian exports can reduce foreign exchange earnings, leading to a wider CAD as export revenue declines while import costs remain unchanged or increase. Example: The U.S. withdrawal of GSP benefits in 2019 reduced India’s export competitiveness, contributing to a widened CAD of 2.1% of GDP in FY19 from 1.8% in FY18.
    • Depreciation of the Indian Rupee: A higher CAD increases demand for foreign currency, putting pressure on the rupee’s value and causing depreciation, which raises the cost of imports like crude oil. Example: In 2018, after U.S. tariffs and India’s rising oil import bill, the rupee fell to ₹74 per USD, increasing inflation and making imported goods more expensive.
    • Reduced Export Competitiveness: Higher tariffs on Indian goods in the U.S. market can make Indian products more expensive, reducing their competitiveness and affecting export-driven industries. Example: U.S. tariffs on Indian steel and aluminum (25% and 10%, respectively) in 2018 affected Indian exporters, leading to a decline in shipments and increased production costs.
    • Disruption in Key Sectors: Industries such as pharmaceuticals, textiles, and auto parts—major contributors to India’s exports—could face higher barriers, impacting growth and employment. Example: U.S. withdrawal of Generalized System of Preferences (GSP) benefits in 2019 affected $6 billion worth of Indian exports, especially in textiles and jewelry.

    Way forward: 

    • Bilateral Trade Negotiations: Strengthen diplomatic efforts to negotiate mutually beneficial trade agreements with the U.S., focusing on reducing tariffs and enhancing market access for key sectors like pharmaceuticals, textiles, and technology.
    • Diversification of Export Markets: Reduce dependency on the U.S. by exploring new markets through regional trade agreements (e.g., Comprehensive Economic Partnership Agreements) and expanding in regions like Africa and Southeast Asia.

    Mains PYQ:

    Q “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. (UPSC IAS/2019)

  • Remodelling the UAE-India aviation partnership

    Why in the News?

    The UAE’s potential role in supporting India’s ambition to become a global aviation powerhouse has been highlighted due to increasing collaboration between the two nations in the aviation sector.

    What are the key challenges faced by the India-UAE aviation sector?

    • Restricted Bilateral Air Service Agreements: Limited flight frequencies and destination access for both Indian and UAE carriers. Example: UAE airlines can operate flights to only 15 Indian cities, excluding key growth centers like Surat and Indore despite high passenger demand.
    • Capacity Constraints and Rising Airfares: Limited flight slots lead to insufficient capacity, causing increased ticket prices. Example: During peak travel seasons, such as festivals or school holidays, airfares between India and the UAE surge due to restricted airline capacity.
    • Limited Connectivity to Emerging Cities: Many Tier-2 and Tier-3 Indian cities lack direct UAE connections. Example: Business hubs like Visakhapatnam and Patna face limited or no direct international flights to the UAE, restricting trade and tourism.
    • Inability to Meet Growing Passenger Demand: Rapid growth in Indian outbound travel is unmet by the current aviation framework. Example: Despite 4.5 million Indian tourists visiting the UAE in 2023, airlines struggle to increase operations due to bilateral restrictions.
    • Missed Economic and Strategic Opportunities: Limited flight options restrict business engagement, investment, and tourism growth. Example: The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE aims to boost trade, but insufficient air connectivity hinders the free flow of goods and professionals.

    Why is there a need for a modernized aviation strategy between India and the UAE?

    • Meeting Rising Passenger Demand: A revised aviation strategy is crucial to handle the increasing flow of Indian travelers to the UAE. Example: For every 1% increase in passport holders, approximately 10 million additional Indian travelers are expected, which the current framework cannot accommodate.
    • Lowering Airfares and Improving Access: Expanding bilateral agreements can boost flight availability, foster competition and reduce travel costs. Example: During peak seasons, limited flights cause sharp increases in ticket prices, making travel between India and the UAE expensive.
    • Expanding Connectivity to Regional Cities: Modernising aviation policies can facilitate direct flights from Tier-2 and Tier-3 Indian cities to the UAE, enhancing regional growth. Example: Cities like Surat, Patna, and Visakhapatnam remain disconnected from the UAE, hindering trade, tourism, and cultural exchanges.
    • Boosting Trade and Economic Cooperation: Improved air services can strengthen business ties and enhance trade between India and the UAE. Example: Despite the CEPA agreement aimed at fostering economic collaboration, restricted flight options limit the movement of professionals and goods.
    • Advancing Aviation Infrastructure and Innovation: A modernized strategy encourages collaboration in aviation technology and infrastructure development. Example: UAE investments in India’s UDAN scheme can improve regional connectivity and support India’s goal to become a leading aviation hub.

    Which Indian cities are currently excluded from UAE airline operations despite growing demand?

    • Cities Not Fully Integrated: Emirates has not yet expanded its services to cities like Amritsar, Lucknow, and Goa Mopa, despite growing demand. These cities are not explicitly excluded but rather await service expansion due to current operational limitations and bilateral agreements.
    • Bilateral Restrictions: The current bilateral agreements between India and the UAE limit the number of seats available for UAE airlines, which can restrict the expansion of services to new cities. While there are no specific cities excluded, the capacity constraints under these agreements affect the ability of UAE airlines to meet demand in various Indian cities.

    What initiatives can the UAE undertake to support India’s ambition to become a global aviation powerhouse?

    • Expanding Aviation Agreements: The UAE-India Comprehensive Economic Partnership Agreement (CEPA) aims to improve air travel and cargo transport between the two countries. Increasing the current limits to 134,000 weekly passenger seats and 4,000 tonnes of cargo through relaxed rules can boost trade and improve connectivity.
    • Using UAE’s Logistics Strength: The UAE’s major airports, like Dubai International and Al Maktoum International, can help meet India’s growing air cargo needs.
      • Working together can make cargo transport faster and more efficient between the two nations.
    • Improving India’s Aviation Sector: India, as the third-largest domestic aviation market, can learn from the UAE to improve international flights and upgrade airport facilities.

    Way forward:

    • Enhancing Policy Frameworks: India can revise its aviation policies to allow greater flexibility in bilateral agreements, enabling increased flight frequencies and better access for UAE carriers.
      Example: Updating the Open Sky policy for Gulf nations can promote competition, reduce airfares, and improve passenger services.
    • Strengthening Aviation Infrastructure:India can invest in upgrading airport capacity, regional connectivity, and advanced Maintenance, Repair, and Overhaul (MRO) facilities to accommodate increased traffic. 

    Mains PYQ:

    Q How will I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics? (UPSC IAS/2022)

  • Cities Coalition for Circularity (C-3)

    Why in the News?

    India launched the Cities Coalition for Circularity (C-3), a multi-nation alliance for city-to-city collaboration, knowledge-sharing, and private sector partnerships for sustainable urban development.

    What is the Cities Coalition for Circularity (C-3)?

    • The C-3 is a multi-nation alliance launched by India at the 12th Regional 3R and Circular Economy Forum in Asia and the Pacific in Jaipur.
    • It aims to facilitate city-to-city collaboration, knowledge-sharing, and private sector partnerships to promote circular economy principles and sustainable urban development.
    • It is led by the Ministry of Housing and Urban Affairs (India), United Nations Centre for Regional Development (UNCRD), and the Institute for Global Environmental Strategies (IGES).
    • The forum will adopt the Jaipur Declaration (2025-2034), which is a non-political, non-binding commitment that will guide efforts towards resource efficiency and sustainable urban growth in the next decade.

    Key Features of C-3:

    • Supported by International Organizations: Backed by UNESCAP, Japan’s Ministry of Environment, and other global partners.
    • Circular Economy Focus: Encourages reuse, recycling, remanufacturing, and composting to reduce waste.
    • Global Collaboration: Involves local governments, private sector actors, and academia to drive policy and innovation.
    • Integration with SDGs: Aligns with Sustainable Development Goals (SDGs), particularly those related to climate action and responsible consumption.

    PYQ:

    [2018] “Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”. Comment on the progress made in India in this regard.

     

  • [4th March 2025] The Hindu Op-ed: How is China’s foreign policy structured?

    PYQ Relevance:

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

    Mentor’s Comment: UPSC mains have always focused on the China’s larger ‘One Belt One Road’ (2018) and China is using its economic relations and positive trade surplus (2017).

    Recently, Chinese Ambassador Xu Feihong said that India-China relations are entering a “phase of recovery” and called their relationship “one of the most important” in the world. He also mentioned that recent talks between Special Representatives (SR) and discussions under the ‘Foreign Secretary-Vice Minister’ mechanism helped both countries reach common ground on the border issue and opened the door to improving their ties.

    Today’s editorial discusses China’s main decision-making bodies and its policies toward India. This content is useful for GS Paper 2 under International Relations.

    _

    Let’s learn!

    Why in the News?

    On Monday, January 27, 2025, Foreign Secretary Vikram Misri, during his official visit to Beijing, met with Chinese Foreign Minister Wang Yi. He is also scheduled to meet his counterpart.

    Which are the two main decision-making bodies with respect to China’s foreign policy? 

    • Politburo Standing Committee (PBSC): The highest decision-making body in China, which sets the overall direction for both domestic and foreign policies. Example: Xi Jinping, as General Secretary of the CPC and head of the PBSC, plays a central role in shaping China’s stance on key issues like the U.S.-China rivalry and the Belt and Road Initiative (BRI).
    • CPC Central Committee’s Foreign Affairs Commission (FAC): Manages policy coordination, inter-departmental communication, and foreign policy execution, with Xi Jinping as the head and Li Qiang as deputy. Example: The FAC oversees China’s border negotiations with India and guides its diplomatic strategy in multilateral forums like BRICS and SCO.

    What is the role of the International Department of the Communist Party of China (IDCPC)?

    • Party-to-Party Diplomacy: Facilitates direct engagement between the CPC and political parties across the ideological spectrum in over 150 countries. Example: The IDCPC hosts delegations from major Indian political parties to strengthen ties beyond official state-level diplomacy.
    • Influencing Global Perception: Aims to enhance the CPC’s international legitimacy by building relationships and promoting China’s political model globally. Example: The IDCPC engages with political elites in Africa and Southeast Asia to align their policies with China’s strategic interests.
    • Policy Research and Intelligence Gathering: Conducts political research on foreign countries to inform CPC leadership and guide China’s diplomatic strategy. Example: The “South and Southeast Asian Affairs” bureau analyzes political trends in India to shape China’s regional engagement policies.

    Has the Ministry of Foreign Affairs been increasing in stature in China?

    • Greater Policy Coordination with the CPC: The MFA now works more closely with the CPC’s Foreign Affairs Commission (FAC), which oversees foreign policy decisions. Example: Wang Yi, China’s Foreign Minister, also serves as the head of the Office of the FAC, reflecting the MFA’s growing role in executing party-led foreign policy.
    • Expanded Global Diplomatic Presence: China has increased its diplomatic footprint by opening new embassies and consulates worldwide, with MFA officials leading key initiatives. Example: The MFA has played a crucial role in advancing the Belt and Road Initiative (BRI) through global negotiations and partnerships.
    • Active Role in Multilateral Forums: The MFA has taken a more assertive position in international organizations to shape global norms and policies. Example: China’s active participation in the United Nations Human Rights Council and WTO reflects the MFA’s rising influence in global governance.
    • Diplomatic Visibility of Key Officials: High-ranking MFA officials now engage more directly with global leaders and the media to articulate China’s foreign policy. Example: Wang Yi’s prominent role in mediating the Saudi-Iran peace deal (2023) highlighted the MFA’s expanding diplomatic authority.
    • Increased Role in Crisis Management: The MFA is increasingly tasked with managing international crises and shaping China’s narrative during global conflicts. Example: The MFA led China’s diplomatic response during the U.S.-China trade war, organizing global outreach to counteract U.S. policies.

    What is the policy for India?

    • Managing Border Disputes While Maintaining Dialogue: China aims to manage tensions along the Line of Actual Control (LAC) while keeping communication channels open through diplomatic and military talks. Example: Since the Galwan Valley clash (2020), both countries have held corps commander-level talks to de-escalate border tensions, although some areas remain contentious.
    • Economic Cooperation with Strategic Caution: While promoting trade relations, China remains cautious about India’s growing economic nationalism and supply chain diversification. Example: Despite border tensions, China remains one of India’s largest trading partners, with bilateral trade exceeding $136 billion in 2022, though India has increased scrutiny on Chinese investments.
    • Countering India’s Regional and Global Influence: China seeks to limit India’s influence in South Asia and multilateral forums while opposing India’s bid for a permanent seat on the UN Security Council. Example: China has increased investments in India’s neighbors through the Belt and Road Initiative (BRI), particularly in Pakistan (CPEC) and Sri Lanka (Colombo Port City).
    • Balancing Competition with Cooperation in Multilateral Platforms: China engages with India through organizations like BRICS and the Shanghai Cooperation Organization (SCO) while countering India’s role in the Quad alliance. Example: Both nations cooperate in BRICS development projects but differ on strategic matters like Indo-Pacific security, where China opposes the Quad’s expansion.
    • Diplomatic Outreach through Party-to-Party Engagement: The International Liaison Department (IDCPC) of the CPC engages with India’s political parties to strengthen ties and understand domestic political dynamics. Example: China has hosted delegations from major Indian political parties to foster people-to-people diplomacy and influence policy perspectives.

    What should India do? 

    • Enhance Border Security and Infrastructure: Strengthen border surveillance, improve infrastructure along the Line of Actual Control (LAC), and ensure rapid troop deployment capabilities. Example: Accelerate projects like the Border Roads Organisation (BRO) to enhance logistical support in sensitive areas.
    • Strengthen Multilateral Engagement: Deepen ties with like-minded countries in regional and global forums while maintaining dialogue with China. Example: Actively participate in Quad, BRICS, and SCO to balance China’s regional influence while promoting India’s strategic interests.
    • Promote Economic Self-Reliance and Diversification: Reduce reliance on Chinese imports by boosting domestic manufacturing and seeking alternative trade partners. Example: Strengthen the Make in India and PLI (Production-Linked Incentive) schemes to reduce import dependency in critical sectors like electronics and telecom.
    • Engage in Strategic Communication: Maintain open diplomatic channels to resolve disputes while clearly articulating India’s red lines and security concerns. Example: Continue high-level talks through special representatives and corps commander-level discussions to de-escalate border tensions.
    • Invest in Technological and Defense Capabilities: Enhance technological innovation, defense modernization, and cybersecurity to counterbalance China’s growing capabilities. Example: Increase investment in indigenous defense programs and space-based surveillance to ensure strategic autonomy.

    Way forward: 

    • Sustained Diplomatic Engagement: Prioritize regular high-level dialogues to resolve border disputes and foster mutual trust while maintaining strategic clarity on core interests.
    • Strategic Autonomy with Regional Cooperation: Strengthen regional partnerships through forums like Quad and ASEAN, while maintaining an independent foreign policy to balance China’s influence.

  • Australia, the partner for India’s growth trajectory

    Why in the News?

    Australia is confident in India’s promising economic future, anticipating it will become the world’s third-largest economy by 2030.

    What are the key sectors identified as the “Superhighways of growth” in the new Roadmap for Australia’s Economic Engagement with India?

    • Clean Energy: Focus on renewable energy and critical minerals to support India’s green transition. Example: Australia, as the largest producer of lithium, supplies essential materials for India’s electric vehicle (EV) manufacturing goals.
    • Education and Skills: Collaboration on skill development and higher education to equip India’s workforce. Example: Australian universities have opened campuses in Gujarat’s GIFT City and are expanding to Noida to offer advanced training programs.
    • Agribusiness and Tourism: Enhancing agricultural trade and food security and fostering tourism between the two countries. Example: Australia’s advanced agritech supports India’s agricultural modernization while increased bilateral tourism strengthens cultural ties.

    Why does Australia consider itself a natural partner for India’s economic growth?

    • Complementary Economies: Australia produces resources that India needs, and India provides services that Australia requires. Example: Australia supplies critical minerals (like lithium and cobalt) essential for India’s electric vehicle (EV) manufacturing.
    • Strategic Alignment: Both nations share common regional and global strategic interests, including maritime security in the Indo-Pacific region. Example: Regular participation in Quad (with the U.S. and Japan) strengthens defense and economic cooperation.
    • Geographic Proximity: Australia and India are geographically close across the Indian Ocean, facilitating easier trade and collaboration. Example: The Economic Cooperation and Trade Agreement (ECTA) has significantly increased bilateral trade.
    • Shared Democratic Values: Both countries are committed to democracy, rule of law, and a rules-based international order, fostering mutual trust. Example: Australia supports India’s bid for a United Nations Security Council (UNSC) permanent seat.
    • Strong People-to-People Ties: A large and growing Indian diaspora in Australia acts as a bridge for cultural and economic collaboration. Example: Australia’s Maitri grants program supports Indian diaspora-led initiatives to boost bilateral engagement.

    How has the Economic Cooperation and Trade Agreement (ECTA) impacted trade between India and Australia?

    • Increased Bilateral Trade Volume: ECTA has accelerated trade growth between the two countries by reducing tariffs and improving market access. Example: India’s exports to Australia have grown by 66% in the past five years, nearly twice as fast as India’s exports to the rest of the world.
    • Tariff Reductions and Market Access: ECTA has eliminated or reduced custom duties on a wide range of products, enhancing the competitiveness of Indian and Australian goods. Example: Australia removed tariffs on 96.4% of Indian exports, including textiles, jewelry, and pharmaceuticals.
    • Boost to Key Sectors: The agreement has strengthened trade in minerals, energy, and education—areas where both countries have complementary strengths. Example: Australia’s exports of critical minerals like lithium support India’s electric vehicle (EV) manufacturing ambitions.
    • Enhanced Services Trade and Mobility: ECTA facilitates greater cooperation in education, IT, and professional services, including easier movement of skilled workers. Example: Indian professionals in IT and engineering benefit from streamlined visa processes for work in Australia.
    • Foundation for a Comprehensive Agreement: ECTA serves as a stepping stone toward a broader Comprehensive Economic Cooperation Agreement (CECA) to further deepen economic ties. Example: Negotiations for CECA are ongoing to expand trade in technology, healthcare, and defense collaboration.

    What steps is Australia taking to support India’s ambition for manufacturing electric vehicles and addressing its skill development needs?

    • Supplying Critical Minerals for EV Manufacturing: Australia is leveraging its position as a leading producer of critical minerals essential for EV production. Example: Australia, the largest producer of lithium and with significant reserves of nickel and cobalt, supplies these key raw materials to support India’s goal of increasing EV adoption eight-fold by 2030.
    • Collaborating on Skill Development and Education: Australian universities are providing high-quality technical education to equip the Indian workforce with advanced skills. Example: Australian universities have established campuses in GIFT City (Gujarat) and soon in Noida (Uttar Pradesh) to train Indian professionals in emerging technologies, including EV and clean energy sectors.
    • Investing in Training and Workforce Mobility: Australia is investing in initiatives to improve vocational training and enhance workforce mobility between the two nations. Example: Through its Maitri grants program, Australia is fostering collaboration in technical training to meet India’s aim of skilling two crore people annually.

    Way forward: 

    • Strengthen Critical Supply Chains: Deepen collaboration on critical minerals by establishing long-term supply agreements and joint ventures to support India’s EV and renewable energy ambitions.
    • Expand Education and Workforce Partnerships: Enhance mutual recognition of qualifications and dual-degree programs to address India’s skill gaps in advanced manufacturing, clean energy, and digital sectors.

    Mains PYQ:

    Q Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (UPSC IAS/2020)

  • The SEC and Hague Service Convention

    Why in the News?

    On February 18, 2025, the U.S. Secuirty and Exchange commission asked the Indian government under the Hague Service Convention, to serve summons on Gautam Adani and Sagar Adani in a securities and wire fraud case.

    What is the Hague Service Convention? 

    • The Hague Service Convention, formally known as the Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (1965), is a multilateral treaty that facilitates the service of legal documents across international borders in civil and commercial cases.

    How does it function? 

    • The Hague Service Convention standardizes the process for serving legal documents across borders in civil and commercial matters.
    • It operates through Central Authorities in member countries, ensuring efficient service, protecting defendants’ rights, and allowing alternative methods like postal service if permitted. It excludes criminal cases and non-signatory nations.

    How is the U.S. Securities and Exchange Commission attempting to serve summons on the Adanis? 

    • Invoking the Hague Service Convention: The SEC has requested assistance from India’s Ministry of Law and Justice under Article 5(a) of the Hague Service Convention to officially deliver the summons to Gautam Adani and Sagar Adani.
    • Exploring Alternative Service Methods: The SEC is considering alternative methods under Rule 4(f) of the U.S. Federal Rules of Civil Procedure, which allows service through means like email or social media, if conventional methods face delays.
    • Proceeding Despite FCPA Suspension: Although the Trump administration has temporarily paused the Foreign Corrupt Practices Act (FCPA) enforcement for 180 days, the SEC argues that the pause does not apply retroactively, allowing their investigation into the Adanis to continue.

    What are India’s reservations under the Convention? 

    • Opposition to Alternative Service Methods: India rejects all alternative service methods under Article 10 of the Convention, including postal service, diplomatic channels, and direct service by foreign judicial officers.
      • Example: A U.S. court cannot serve legal documents in India via U.S. consular channels unless the recipient is a U.S. national residing in India.
    • Mandatory Use of Central Authority: All service requests must go through India’s Ministry of Law and Justice, which is the designated central authority for processing foreign summons. Requests must be in English or include an English translation.
      • Example: In Punjab National Bank (International) Ltd. v. Boris Shipping Ltd. (2019), a U.K. court ruled that service through alternative methods was invalid due to India’s reservations.

    How long does the service process typically take?

    • The service process under the Hague Service Convention in India typically takes six to eight months.
    • After receiving a request, India’s Ministry of Law and Justice verifies and forwards it to the appropriate authority.
    • Upon completion, an acknowledgement is issued to the requesting country, confirming successful service.

    Way forward: 

    • Expedite Processing Mechanisms: Implement digital tracking and streamlined workflows within the Ministry of Law and Justice to reduce delays in handling service requests.
    • Strengthen Bilateral Cooperation: Enhance legal cooperation with key countries through bilateral agreements to complement the Hague Service Convention and facilitate faster document service.

  • The SEC and Hague Service Convention

    Why in the News?

    On February 18, 2025, the U.S. Secuirty and Exchange commission asked the Indian government under the Hague Service Convention, to serve summons on Gautam Adani and Sagar Adani in a securities and wire fraud case.

    What is the Hague Service Convention? 

    • The Hague Service Convention, formally known as the Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (1965), is a multilateral treaty that facilitates the service of legal documents across international borders in civil and commercial cases.

    How does it work? 

    • The Hague Service Convention standardizes the process for serving legal documents across borders in civil and commercial matters. It operates through Central Authorities in member countries, ensuring efficient service, protecting defendants’ rights, and allowing alternative methods like postal service if permitted. It excludes criminal cases and non-signatory nations.

    How is the U.S. Securities and Exchange Commission attempting to serve summons on the Adanis? 

    • Invoking the Hague Service Convention: The SEC has requested assistance from India’s Ministry of Law and Justice under Article 5(a) of the Hague Service Convention to officially deliver the summons to Gautam Adani and Sagar Adani.
    • Exploring Alternative Service Methods: The SEC is considering alternative methods under Rule 4(f) of the U.S. Federal Rules of Civil Procedure, which allows service through means like email or social media, if conventional methods face delays.
    • Proceeding Despite FCPA Suspension: Although the Trump administration has temporarily paused the Foreign Corrupt Practices Act (FCPA) enforcement for 180 days, the SEC argues that the pause does not apply retroactively, allowing their investigation into the Adanis to continue.

    What are India’s reservations under the Convention? 

    • Opposition to Alternative Service Methods: India rejects all alternative service methods under Article 10 of the Convention, including postal service, diplomatic channels, and direct service by foreign judicial officers.
      • Example: A U.S. court cannot serve legal documents in India via U.S. consular channels unless the recipient is a U.S. national residing in India.
    • Mandatory Use of Central Authority: All service requests must go through India’s Ministry of Law and Justice, which is the designated central authority for processing foreign summons. Requests must be in English or include an English translation.
      • Example: In Punjab National Bank (International) Ltd. v. Boris Shipping Ltd. (2019), a U.K. court ruled that service through alternative methods was invalid due to India’s reservations.

    How long does the service process typically take?

    • The service process under the Hague Service Convention in India typically takes six to eight months. After receiving a request, India’s Ministry of Law and Justice verifies and forwards it to the appropriate authority. Upon completion, an acknowledgement is issued to the requesting country, confirming successful service.

    Way forward: 

    • Expedite Processing Mechanisms: Implement digital tracking and streamlined workflows within the Ministry of Law and Justice to reduce delays in handling service requests.
    • Strengthen Bilateral Cooperation: Enhance legal cooperation with key countries through bilateral agreements to complement the Hague Service Convention and facilitate faster document service.

  • [26th February 2025] The Hindu Op-ed: The right’s rise, Europe’s state of denial

    PYQ Relevance:

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

    Mentor’s Comment: UPSC mains have always focused on “ Indo-US defence deals over Indo-Russian defence deals”  (2020), and the “Russia and Ukraine war”  (2022).

    In February 2025, the U.S. blamed Ukraine, Germany, and other European countries for not doing enough to end the conflict and for continuing a war with Russia that it sees as unwinnable. However, the U.S. itself has already spent over $110 billion on the Ukraine war, including $65 billion on ammunition—more than what major Western countries combined have provided. 

    Today’s editorial highlights the double stance of the USA in international relations. This content would help in GS paper 2 (IR).

    _

    Let’s learn!

    Why in the News?

    The Munich Security Conference in Germany and the recent United Nations General Assembly vote on Ukraine were filled with contradictions and hypocrisy.

    What were the key contradictions during the Munich Security Conference and the UN General Assembly vote on Ukraine?

    Munich Security Conference

    • U.S. Criticism of European Democratic Practices vs. Its Own Actions: U.S. Vice-President J.D. Vance accused Europe of suppressing right-wing parties and curbing free speech. However, the U.S. previously sought to delegitimize its own right-wing movements including the 2021 Capitol riot and Trump’s 2020 election denial further exposed this contradiction.
    • U.S. Demand for European Security Responsibility vs. Past Opposition: The U.S. urged Europe to increase defense spending and reduce reliance on NATO. Yet, since the Cold War’s end the U.S. has consistently opposed European efforts to establish independent security frameworks fearing a weakened NATO.

    UN General Assembly vote on Ukraine: 

    • U.S. Opposition to European-Ukrainian Resolution vs. Its Previous Support: Despite previously leading international efforts to support Ukraine against Russia and now the U.S. voted with Russia against a European-Ukrainian draft resolution. This contradicts its long-standing position of backing Ukraine and opposing Russian aggression.
    • Europe’s Victory Without U.S. Support: The European-Ukrainian resolution was adopted despite U.S. opposition, highlighting a growing divide between American and European approaches to the Ukraine conflict. However, without sustained U.S. support, Europe’s ability to continue aiding Ukraine effectively is uncertain, making the victory largely symbolic.

    How has the U.S.’s stance on the Ukraine war shifted over time?

    • Initial Strong Support for Ukraine (2022-2023): The U.S. led global efforts to support Ukraine, providing over $110 billion, including $65 billion for ammunition, and coordinated sanctions against Russia. Example: The U.S. played a key role in mobilizing NATO allies to send advanced weaponry, including Germany’s Leopard tanks.
    • Undermining Peace Negotiations (2022): The U.S. discouraged early peace talks between Russia and Ukraine in Türkiye, preferring to prolong the conflict to weaken Russia strategically. Example: In March 2022, a European leader, reportedly at U.S. behest, sabotaged a nearly finalized peace agreement.
    • Tensions with European Allies (2023-2024): The U.S. increasingly criticized Europe for not contributing enough financially and militarily while maintaining disproportionate U.S. involvement. Example: Despite urging Europe to take responsibility, the U.S. continued to dominate NATO’s budget (16%) and military commitments.
    • Shifting Blame to Europe (2025): By February 2025, the U.S. accused Germany, Ukraine, and other European nations of pursuing an unwinnable war and not doing enough to seek a resolution.  
    • Voting Against European-Ukrainian Resolution (2025): In a dramatic reversal, the U.S. voted with Russia against a European-Ukrainian draft at the UN General Assembly, signaling a shift toward disengagement. This marked a break from the U.S.’s previous unconditional support and exposed widening trans-Atlantic rifts over Ukraine policy.

    Why is the trans-Atlantic partnership between the U.S. and Europe still considered relevant?

    • Shared Security Commitments Through NATO: The U.S. and Europe continue to rely on NATO for collective defence, especially in response to Russian aggression and emerging global threats. Example: After Russia’s invasion of Ukraine (2022), the U.S. increased its troop presence in Eastern Europe, while Finland and Sweden joined NATO, reinforcing trans-Atlantic security ties.
    • Economic and Technological Interdependence: The U.S. and Europe maintain deep economic ties through trade, technology collaboration, and joint efforts on climate change and supply chain resilience. Example: The U.S.-EU Trade and Technology Council (TTC) fosters cooperation on critical areas like semiconductors and clean energy, reducing dependence on China.

    What lessons should India learn from the USA’s constantly changing policies?

    • Need for Policy Consistency and Strategic Autonomy: Frequent shifts in U.S. foreign policy highlight the importance of maintaining stable and long-term strategies to protect national interests. 
      • Example: The U.S.’s fluctuating stance on Ukraine and Afghanistan shows how unpredictable alliances can be. India should continue pursuing strategic autonomy through initiatives like “Act East” and partnerships with Russia and the Global South to avoid over-reliance on any one nation.
    • Diversification of Economic and Defense Partnerships: Rapid policy changes in the U.S. underscore the need to diversify partnerships to reduce vulnerability to external shocks.
      • Example: U.S. sanctions on Iran disrupted India’s oil imports. In response, India diversified its energy sources by strengthening ties with Russia and exploring renewable energy investments.
    • Investing in Domestic Capabilities: India must strengthen its domestic manufacturing, technology, and defense industries to reduce dependence on unpredictable foreign partners.
      • Example: The U.S.’s evolving position on export controls for advanced technologies emphasizes the need for India to accelerate initiatives like “Make in India” and semiconductor manufacturing to ensure technological sovereignty.

    Way forward: 

    • Strengthen Strategic Autonomy: Prioritize independent foreign policy decisions while balancing ties with major powers. Enhance regional leadership through initiatives like “Neighborhood First” and “Act East” to reduce reliance on any single partner.
    • Enhance Self-Reliance and Diversification: Invest in domestic capabilities through programs like “Make in India” and “Digital India”, while diversifying economic and defence partnerships to mitigate risks from external policy shifts.

  • [pib] Bay of Bengal (BOB) Inter-Governmental Organisation

    Why in the News?

    India has taken over the Chairmanship of the Bay of Bengal (BOB) Inter-Governmental Organisation from Bangladesh at the 13th Governing Council Meeting in Male, Maldives.

    What is BOBP-IGO?

    • BOBP-IGO is a regional fisheries body promoting sustainable fisheries management and improving the livelihoods of small-scale fishers in the Bay of Bengal region.
    • It was established in 2003 and is headquartered in Chennai.
    • It evolved from the Bay of Bengal Programme (BoBP), which was launched in 1979 under the Food and Agriculture Organization (FAO) of the United Nations.
    • Members:
      • Full Members: Bangladesh, India, Maldives, Sri Lanka.
      • Cooperating Non-Contracting Parties: Indonesia, Malaysia, Myanmar, Thailand.
    • Objectives: Enhance marine fisheries management, build fisher capacities, promote policy cooperation, and combat Illegal, Unreported & Unregulated (IUU) fishing.

    Significance of India’s Chairmanship in BOBP-IGO

    • India will lead policies for sustainable fisheries management and marine conservation across member nations.
    • This would strengthen monitoring, surveillance, and enforcement to prevent overfishing and illegal activities.
    • It will facilitate collaboration among member nations, exchange best practices, and integrate advanced technology in fisheries.
    • It would promote scientific research, innovation, and economic growth while reinforcing India’s influence in the Indian Ocean Region.

    PYQ:

    [2022] Do you think that BIMSTEC is a parallel organisation like the SAARC? What are the similarities and dissimilarities between the two? How are Indian foreign policy objectives realized by forming this new organisation?