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Subject: International Relations

  • Resolving the vexatious Fishing dispute

    Why in the News?

    Last week, Bimal Rathnayake, the Leader of the House in Sri Lanka’s Parliament and the country’s Transport and Highways Minister, urged the Indian and Tamil Nadu governments to take strong action against illegal fishing in Sri Lankan waters.

    How do domestic factors in both India and Sri Lanka influence their respective foreign policies concerning the fishing dispute?

    For India: 

    • Livelihood Dependency and Economic Pressure: Thousands of fishermen in Tamil Nadu and Puducherry rely on fishing in the Palk Bay for their livelihoods. Limited fishing zones and declining fish stocks in Indian waters push them into Sri Lankan territory.
      • Example: Fishermen from districts like Ramanathapuram and Nagapattinam regularly cross the International Maritime Boundary Line (IMBL) due to insufficient catch within Indian waters.
    • Political and Electoral Pressures: Tamil Nadu’s regional parties, such as the DMK and AIADMK, often raise the fishing dispute to secure voter support, pressuring the central government to prioritize the issue in foreign policy.
      • Example: Before elections, Tamil Nadu politicians routinely demand stronger diplomatic efforts to release Indian fishermen detained by the Sri Lankan Navy.
    • Legal and Regulatory Constraints: Indian regulations, like the Tamil Nadu Marine Fishing Regulation Act (1983), restrict the use of mechanized boats close to the shore, limiting fishing areas and driving fishermen toward Sri Lankan waters.
      • Example: The 1983 Act bans trawling within three nautical miles of the Indian coastline, making deeper Sri Lankan waters more attractive despite the legal risks.

    For Srilanka: 

    • Protection of Northern Province Fishermen’s Livelihoods: Sri Lankan Tamil fishermen in the Northern Province rely on traditional fishing methods and face competition from Indian trawlers, which threatens their livelihoods.
    • Post-Civil War Economic Recovery: The Northern Province, which was heavily affected by the civil war, is still recovering economically. Safeguarding local fishing areas is seen as vital for the region’s rehabilitation and economic stability.
      • Example: The Sri Lankan government prioritizes protecting fishing zones to support the economic revival of communities affected by the civil war.
    • Political and Nationalist Sentiments: There is domestic pressure on the Sri Lankan government to take a strong stance against perceived violations of territorial waters, especially from nationalist groups and local political parties.
      • Example: In 2015, then-Prime Minister Ranil Wickremesinghe defended the Sri Lankan Navy’s actions against Indian fishermen, reflecting nationalist sentiments on protecting maritime boundaries.

    Why is resolving the “festering Palk Bay sheries dispute” considered crucial for the Tamil-speaking fishermen of Sri Lanka’s Northern Province?

    • Protection of Livelihoods: Tamil-speaking fishermen in Sri Lanka’s Northern Province depend on local marine resources for their survival. Illegal fishing by Indian trawlers reduces fish stocks, threatening their primary source of income.
      • Example: Frequent incursions by Indian fishermen using bottom trawling disrupt the local fishing economy, making it difficult for Sri Lankan fishermen to sustain their livelihoods.
    • Environmental Sustainability: Bottom trawling by Indian fishermen causes severe damage to marine ecosystems, affecting fish breeding and long-term marine biodiversity.
      • Example: The destruction of fish habitats due to bottom trawling reduces future fish yields, directly impacting the sustainability of fishing communities in the Northern Province.
    • Socio-Economic Recovery Post-Civil War: The Northern Province is still recovering from the socio-economic impacts of Sri Lanka’s civil war. Protecting their fishing waters is vital for long-term economic stability and community rebuilding.
      • Example: Ensuring exclusive access to local waters helps these communities rebuild their economy and strengthens their post-war rehabilitation efforts.

    What role can India play in resolving the Palk Bay fishing dispute? (Way forward)

    • Promoting Sustainable Fishing Practices: India can encourage and support its fishermen to adopt sustainable fishing methods, reducing the harmful impact of bottom trawling in Sri Lankan waters.
      • Example: Expanding the Palk Bay deep-sea fishing scheme and integrating it with the Pradhan Mantri Matsya Sampada Yojana can help Indian fishermen transition to deep-sea fishing, reducing pressure on the Palk Bay region.
    • Facilitating Bilateral Talks: India can work with Sri Lanka to resume and mediate talks between fishermen from both countries, fostering dialogue and finding mutually beneficial solutions.
      • Example: India previously supported fishermen-level talks in 2016, which allowed both sides to voice concerns and seek collaborative solutions. Restarting such discussions can ease tensions.
    • Strengthening Legal and Diplomatic Cooperation: India can strengthen legal frameworks and diplomatic channels to enforce maritime boundaries while ensuring the protection of its fishermen’s rights.
      • Example: The Joint Working Group on Fisheries (established in 2016) provides a platform for both governments to discuss and implement measures to prevent illegal fishing and resolve disputes amicably.

    Mains PYQ: 

    Q In respect of India-Sri Lanka relations, discuss how do mestic factors influence foreign policy. (2013)

  • ‘MAHASAGAR’ vision for Global South

    Why in the News?

    PM Modi has unveiled ‘MAHASAGAR’ (Mutual and Holistic Advancement for Security and Growth Across Regions) during his March 2025 visit to Mauritius, outlining India’s expanded vision for security and development across the Global South.

    What is MAHASAGAR?

    • Mahasagar is India’s expanded strategic vision aimed at enhancing security, trade, and development cooperation across the Global South.
    • It builds on India’s SAGAR (Security and Growth for All in the Region) policy, which focused on the Indian Ocean Region (IOR).
    • Three Core Pillars:
    1. Trade for Development: Enhancing economic ties through technology-sharing and trade facilitation.
    2. Capacity Building for Sustainable Growth: Supporting nations with infrastructure, education, and economic partnerships.
    3. Mutual Security for a Shared Future: Strengthening regional security, maritime cooperation, and defense ties.
    • It seeks to address China’s expanding presence in the Indo-Pacific and Indian Ocean by promoting India-led cooperation models.
    • It aims to position India as a champion of the Global South, amplifying their voice in global policymaking (e.g., G20, IORA, BRICS).

    How Mahasagar builds on SAGAR (2015)?

    • India’s SAGAR policy (2015) was a regional framework focused on maritime security and economic cooperation in the Indian Ocean Region (IOR).
    • Mahasagar broadens this vision to global engagement with the Global South.
    SAGAR (2015) Mahasagar (2025)
    Geographic Scope Indian Ocean Region (IOR) Global South, Indo-Pacific, Africa, Latin America
    Focus Areas Maritime security, economic ties, blue economy, regional stability Trade-driven development, technology-sharing, capacity building, global security
    Strategic Partnerships Mauritius, Seychelles, Maldives, Sri Lanka, IOR countries Expands to Africa, ASEAN, Latin America, Pacific Island Nations
    Security & Defense Cooperation Anti-piracy, maritime domain awareness, EEZ protection Joint naval exercises, cyber security, defense partnerships
    Economic & Developmental Focus Blue economy, infrastructure, trade corridors in IOR Technology transfer, concessional loans, trade in local currencies
    Diplomatic Strategy Regional cooperation through IORA, BIMSTEC Voice of the Global South in G20, BRICS, UN initiatives

     

    PYQ:

    [2017] Consider the following in respect of Indian Ocean Naval Symposium (IONS):

    1. Inaugural IONS was held in India in 2015 under the chairmanship of the Indian Navy.

    2. IONS is a voluntary initiative that seeks to increase maritime co-operation among navies of the littoral states of the Indian Ocean Region.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

  • [11th March 2025] The Hindu Op-ed: An India-U.S. trade agreement and the test of WTO laws

    PYQ Relevance:

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

     

    Mentor’s Comment: UPSC mains have always focused on the Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc  (2020) and WTO has to survive in the present context of ‘Trade War’ (2018).

    During Prime Minister Narendra Modi’s U.S. visit on February 13, 2025, India and the U.S. agreed to begin talks on a multi-sector Bilateral Trade Agreement (BTA) by fall 2025. As both countries are WTO members, the agreement must follow WTO rules. While details remain unclear, the agreement’s content matters more than its label.

    Today’s editorial discusses how the ongoing Bilateral Trade Agreement (BTA) negotiations may affect both countries. This information is useful for GS Paper 3 in the UPSC Mains exam.

    _

    Let’s learn!

    Why in the News?

    Since both the U.S. and India are members of the World Trade Organization, their trade agreements must follow WTO rules.

    What are the key legal challenges India and the U.S. may face while negotiating a Bilateral Trade Agreement (BTA) under WTO law?

    • Violation of the Most Favoured Nation (MFN) Principle: WTO law mandates that any trade advantage granted to one member must be extended to all members (Article I of GATT). A BTA providing preferential tariffs only to India or the U.S. may violate this principle.
      • Example: If the U.S. lowers tariffs on Indian textiles under the BTA without extending the same benefit to other WTO members like China, it breaches the MFN principle.
    • Meeting the “Substantially All Trade” Requirement: Article XXIV.8(b) of GATT requires that Free Trade Agreements (FTAs) must cover “substantially all trade.” A limited-scope BTA focusing only on select sectors (e.g., pharmaceuticals or agriculture) may not satisfy this condition.
      • Example: If the India-U.S. BTA only includes technology and defense products while excluding key areas like agriculture, it may not qualify as a valid FTA under WTO law.
    • Notification and Transparency Obligations: WTO members must notify the organization of any new regional trade agreements (RTAs) or BTAs and demonstrate compliance with Article XXIV of GATT. Failure to provide transparent schedules may lead to legal disputes.
      • Example: If India and the U.S. do not submit a clear implementation timeline for tariff reductions under an interim BTA, other WTO members could challenge the agreement.
    • Bound Tariff Commitments: Both countries have pre-committed to maximum tariff limits (bound tariffs) under WTO rules. Any preferential treatment exceeding these limits may violate their commitments.
      • Example: If India agrees to reduce tariffs on American agricultural imports below its bound tariff rates, it could be accused of breaching its WTO commitments.
    • Misuse of the “Interim Agreement” Clause: Article XXIV.5 allows “interim agreements” only if they lead to a full FTA within a reasonable period (usually 10 years). Using an interim BTA to delay full liberalization may face legal scrutiny.
      • Example: If the India-U.S. BTA remains a partial agreement for an extended period without progressing toward an FTA, it could be deemed a violation of WTO norms.

    Why is the “most favoured nation” (MFN) principle significant in evaluating the legality of the proposed India-U.S. BTA?

    • Prevents Discrimination Between Trading Partners: The MFN principle under Article I of GATT ensures that any trade advantage (e.g., lower tariffs) given to one WTO member must be extended to all members. A BTA offering exclusive benefits violates this core principle.
      • Example: If the U.S. reduces tariffs on Indian pharmaceuticals but does not extend the same reduction to other countries like Vietnam, it breaches the MFN rule.
    • Limits Preferential Bilateral Deals: WTO law only allows exceptions to the MFN rule through comprehensive trade agreements covering “substantially all trade” under Article XXIV of GATT. A narrowly focused BTA risks legal challenges.
      • Example: If India and the U.S. sign a BTA that only includes high-tech products while excluding major sectors like agriculture, it may not qualify for an MFN exemption.
    • Ensures Transparency and Fair Competition: The MFN principle promotes a transparent, rule-based trading system where no country receives hidden advantages, ensuring fair market access for all WTO members.
      • Example: If India provides exclusive tariff cuts on American dairy products without offering similar terms to New Zealand, it would violate WTO transparency obligations.
    • Prevents Trade Fragmentation: Upholding the MFN principle avoids trade fragmentation by ensuring consistent rules for all members. Bilateral deals that bypass MFN could undermine the multilateral trade system.
      • Example: If the U.S. grants Indian textiles preferential access through a BTA but not to countries like Bangladesh, it could distort global supply chains.
    • Requires WTO Notification and Review: Any departure from the MFN principle through a BTA must be notified to the WTO and subjected to legal scrutiny under Article XXIV to confirm its compliance.
      • Example: If the India-U.S. BTA is not notified to the WTO or lacks a clear transition plan toward an FTA, it may be legally contested by other members like China or the EU.

    How can the proposed BTA be structured as an “interim agreement” under Article XXIV of the GATT without violating WTO norms?

    • Commitment to Full Free Trade Area (FTA) or Customs Union: The BTA must outline a clear plan to eventually form a Free Trade Area (FTA) or Customs Union within a reasonable time frame (generally within 10 years).
      • Example: The India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) started as an interim agreement with the goal of expanding into a broader trade framework.
    • Transparency and Notification to WTO: The parties must notify the WTO of the interim agreement and submit detailed information on trade coverage, timelines, and implementation steps for review by the Committee on Regional Trade Agreements (CRTA).
      • Example: The European Union (EU)-UK Trade and Cooperation Agreement was notified to the WTO during the Brexit transition, ensuring compliance with Article XXIV.
    • Non-Discriminatory Transition: The interim agreement must not create unjustifiable discrimination against other WTO members, and the removal of trade barriers should cover substantially all trade between the parties.
      • Example: The US-Mexico-Canada Agreement (USMCA) complies with this by covering a broad range of goods and services, ensuring that trade barriers are progressively reduced.

    Way forward: 

    • Ensure Comprehensive Coverage and Timely Transition: Design the BTA to cover substantially all trade sectors with a clear roadmap toward a full Free Trade Area (FTA) within the 10-year WTO guideline to comply with Article XXIV.
    • Enhance Transparency and Legal Compliance: Notify the WTO promptly, providing detailed schedules on tariff reductions and implementation timelines, ensuring non-discrimination and regular compliance reviews by the Committee on Regional Trade Agreements (CRTA).

  • India, Mauritius and a visit to deepen long-standing ties

    Why in the News?

    Prime Minister Modi will visit Mauritius on March 11-12, 2025, to strengthen relations with the new government and confirm India’s support for the island’s security and growth.

    What are the key historical and cultural ties between India and Mauritius?

    • Indentured Labor Heritage (1834 Onwards): Nearly 70% of Mauritians are of Indian origin, descendants of indentured laborers brought by the British to work on sugar plantations. Example: The Aapravasi Ghat in Port Louis, a UNESCO World Heritage site, marks the arrival point of Indian laborers.
    • Shared Freedom Struggles: Sir Seewoosagur Ramgoolam, Mauritius’ first Prime Minister, worked closely with Netaji Subhas Chandra Bose during Bose’s stay in London (1919-21). Example: Sir Ramgoolam proofread Bose’s famous book “ The Indian Struggle” and received an autographed copy in appreciation.
    • Linguistic and Cultural Preservation: Various Indian languages, including Bhojpuri, Tamil, Telugu, and Marathi, are actively spoken and preserved through cultural institutions. Example: The Mahatma Gandhi Institute (established in 1976) promotes Indian languages, arts, and culture in Mauritius.
    • Religious and Festival Ties: Hinduism is practiced by over 48% of the population, and Indian festivals like Diwali, Holi, and Thaipusam are widely celebrated. Example: The Ganga Talao (Grand Bassin) pilgrimage site is considered sacred and draws thousands during Maha Shivaratri.
    • Institutional and Diplomatic Links: India actively supports Mauritius through diplomatic and cultural outreach programs. Example: Mauritius hosts the World Hindi Secretariat, which is supported by India to promote the Hindi language globally.

    Why is maritime security cooperation between India and Mauritius crucial? 

    • Strategic Location in the Indian Ocean: Mauritius lies at a key maritime crossroads in the western Indian Ocean, making it vital for monitoring international shipping lanes and securing regional trade. Example: The Colombo Security Conclave (including India, Mauritius, Sri Lanka, Maldives, and Bangladesh) enhances cooperation to ensure maritime safety.
    • Countering China’s Expanding Influence: With China increasing its presence in the Indian Ocean Region (IOR) through infrastructure projects and naval activities, India’s partnership with Mauritius helps balance regional power. Example: India’s Agaléga Island redevelopment supports surveillance and counters China’s maritime ambitions.
    • Securing Exclusive Economic Zones (EEZs): Mauritius has an EEZ of 2.3 million sq. km, rich in marine resources. Collaboration ensures these areas are protected from illegal activities like fishing and piracy. Example: India’s INS Sarvekshak recently completed an ocean survey of 25,000 sq. km in Mauritius’ EEZ to enhance maritime mapping and security.
    • Joint Surveillance and Intelligence Sharing: Surveillance cooperation enhances maritime domain awareness and secures trade routes against piracy, trafficking, and other threats. Example: Mauritius has access to India’s Information Fusion Centre-Indian Ocean Region (IFC-IOR) in Gurugram for real-time maritime intelligence.
    • Humanitarian Assistance and Disaster Relief (HADR): Close maritime ties enable swift disaster response and the delivery of humanitarian aid in times of crisis. Example: India provided naval assistance to Mauritius during the MV Wakashio oil spill disaster in 2020.

    Where has India invested in maritime infrastructure and security cooperation with Mauritius?

    • Agaléga Island Development: India is redeveloping Agaléga Island to establish airstrips and port facilities for joint surveillance and maritime domain awareness. Example: This facility enhances monitoring of maritime traffic and strengthens anti-piracy and anti-smuggling operations.
    • Coastal Radar Surveillance Network: India has installed a network of coastal radar stations in Mauritius to improve maritime security and real-time surveillance of the Indian Ocean Region (IOR). Example: This system helps track illegal maritime activities like smuggling and unauthorized fishing.
    • Access to the Information Fusion Centre (IFC-IOR): India provides Mauritius access to its Information Fusion Centre – Indian Ocean Region (IFC-IOR), which enables intelligence sharing and coordinated maritime operations. Example: Mauritius can monitor maritime traffic, enhancing its ability to protect its Exclusive Economic Zone (EEZ) and respond to emerging threats.

    What role does the Double Taxation Avoidance Agreement (DTAA) play in their economic partnership?

    • Facilitating Foreign Investments: The DTAA between India and Mauritius prevents double taxation on income, encouraging foreign investments to flow through Mauritius into India. Example: As of March 2024, Mauritius remained India’s fourth-largest source of FPI, contributing ₹4.19 lakh crore, accounting for 6% of India’s total FPI of ₹69.54 lakh crore.
    • Strengthening Mauritius as a Financial Hub: The agreement has helped Mauritius become a major international financial centre, particularly for investments into India and African markets. Example: Many private equity and venture capital funds use Mauritius as a base to invest in Indian businesses due to favorable tax treatment.
    • Impact of Treaty Amendments on Investment Flows: In March 2024, India and Mauritius revised the DTAA to include the Principal Purpose Test (PPT), aiming to prevent treaty abuse and tax evasion. Following these amendments, FPIs withdrew ₹8,671 crore from Indian equities in April 2024, reflecting concerns over the revised tax implications.

    Way forward: 

    • Enhance Maritime Security Collaboration: There is a need to strengthen joint surveillance, intelligence sharing, and capacity-building initiatives to secure the Indian Ocean Region (IOR) and safeguard maritime trade routes.
    • Deepen Economic and Financial Cooperation: The Government should adapt the DTAA framework to maintain investor confidence while fostering transparent, sustainable investment flows between the two nations.

    Mains PYQ:

    Q Why was indentured labour taken by the British from India to their colonies? have they been able to preserve their cultural identity over there? (UPSC IAS/2018)

  • [pib] United Nations Commission on the Status of Women (UNCSW)

    Why in the News?

    India’s Delegation led by Union Minister for Women and Child Developments will participate in the 69th session of the United Nations Commission on the Status of Women (UNCSW).

    About United Nations Commission on the Status of Women (UNCSW):

    Details
    Establishment and Mandate
    • Founded in 1946 by the Economic and Social Council (ECOSOC) through Resolution 11(II).
    • Initially focused on women’s political, economic, civil, social, and educational rights.
    • Expanded in 1996 to include monitoring the Beijing Declaration and integrating gender perspectives into UN activities.
    Structure and Membership
    • Composed of 45 member states elected by ECOSOC based on geographical representation.
    • 13 from Africa, 11 from Asia, 9 from Latin America and the Caribbean, 8 from Western Europe and other States, 4 from Eastern Europe.
    • Members serve a four-year term.
    Key Roles and Responsibilities
    • Policy Formulation: Establishes global norms and standards for gender equality.
    • Monitoring Progress: Reviews gender-related commitments, including the Beijing Declaration.
    • Advocacy and Awareness: Conducts research, publishes reports, and promotes women’s rights globally.
    • Collaboration: Works with UN entities, NGOs, and civil society organizations to strengthen gender equality.
    Major Contributions Drafted key conventions like:

    • Convention on the Political Rights of Women (1953)
    • Convention on the Nationality of Married Women (1957)
    • Convention on Consent to Marriage (1962)
    • Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) (1979).
    • Influenced the Universal Declaration of Human Rights (1948).
    • Led preparatory work for the Fourth World Conference on Women in Beijing (1995).
    Annual Sessions and Key Themes
    • Held annually at UN Headquarters, New York.
    • Engages member states, NGOs, and UN agencies in discussions on gender-related policies.

     

    PYQ:

    [2009] With reference to the United Nations, consider the following statements:

    1. The Economic and Social Council (ECOSOC) of UN consists of 24 member States.
    2. It is elected by a 2/3rd majority of the General Assembly for a 3-year term.

    Which of the statements given above is/are correct?

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

     

  • 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.