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Subject: International Stories of Key Importance

  • [26th June 2025] The Hindu Op-ed: The ‘Axis of Upheaval’ in the West Asia conflict 

    PYQ Relevance:

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

    Linkage: This question highlights a new grouping involving Israel and the USA, both central to the West Asia conflict described as the origin point for the “Axis of Upheaval”. The formation and impact of such new strategic groupings, particularly in the context of the Middle East, are directly relevant to the evolving power dynamics and strategic realignments that define the concept of the “Axis of Upheaval.”

     

    Mentor’s Comment:  The recent U.S.-Israel attack on Iran’s nuclear sites and the weak ceasefire that followed have shown that today’s global alliances, often compared to Cold War groups, are not very strong or united. Even though Iran has close economic and political ties with Russia and China, neither country gave any military support. This clearly shows the limits of strategic partnerships when there is a real military threat. The so-called ‘Axis of Upheaval’ made up of Iran, Russia, and China is really just a loose group, without any formal military treaties like those in Western alliances such as NATO. This crisis breaks the idea of a bipolar world and highlights the unequal power dynamics in today’s global politics.

    Today’s editorial discusses global power alliances in the context of the Israel-Iran war. This topic is helpful for GS Paper II (International Relations) in the UPSC mains exam.

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    Let’s learn!

    Why in the News?

    The recent U.S.-Israel attack on Iran’s nuclear sites, followed by a weak ceasefire, has shown that today’s global alliances, often compared to Cold War blocs, are not as strong or united as they appear.

    What are the new global power blocs?

    New global power blocs refer to emerging alliances among countries like China, Russia, and Iran that seek to challenge the dominance of the Western-led global order. These blocs focus on economic cooperation, strategic alignment, and institutional alternatives such as BRICS and SCO, but lack formal military treaties like NATO.

    Why has the Israel-Iran conflict weakened the idea of new global power blocs?

    • Lack of Military Support: Despite Iran’s close ties with Russia and China, neither provided military assistance during the conflict. Eg: Russia, engaged in the Ukraine war, offered only diplomatic mediation, while China limited itself to verbal condemnation.
    • Absence of Binding Alliances: The so-called ‘Axis of Upheaval’ lacks formal military treaties that require collective defense. Eg: Iran’s strategic partnerships with Russia (2025) and China (2021) are primarily economic, not military.
    • Diverging Strategic Interests: Russia and China used the conflict to advance their own interests, letting the U.S. get entangled in West Asia. Eg: The U.S. bombing of Iran may distract American focus from the Indo-Pacific and Europe, which suits Beijing and Moscow.

    What are the strategic limits of Iran’s ties with Russia and China?

    • No Binding Military Pact: Iran’s ties with Russia and China are largely economic and diplomatic, with no formal military alliance or commitment to joint defense.
    • Conflicting Strategic Priorities: Russia is deeply engaged in the Ukraine war, and China is focused on maintaining its economic growth and regional stability, limiting their readiness to back Iran militarily. Eg: Russia has turned to North Korea for troops, showing its own resource constraints.
    • Unequal Benefits: Iran is heavily dependent on these relationships, while Russia and China gain economic and geopolitical advantages without taking on direct strategic risks. For instance, China secures discounted Iranian oil under sanctions, while offering limited concrete support in return.

    How have Russia and China responded to Iran’s crisis post-ceasefire?

    • Diplomatic Support without Military Action: Russia offered to mediate the conflict through a call by President Putin, but this was ignored by the U.S., and no military support was extended.
      Putin’s involvement reflected symbolic backing, not a commitment to defend Iran.
    • Condemnation of Israeli Actions: China’s Foreign Minister Wang Yi criticised Israeli airstrikes as violations of international law, showing support through official statements while avoiding direct intervention. This response aimed to maintain China’s global diplomatic posture without escalating tensions.
    • Strategic Caution for Self-Interest: Both countries used the conflict to their advantage by letting the U.S. get entangled in West Asia, potentially weakening its focus on the Indo-Pacific and Ukraine. The crisis served to advance Beijing and Moscow’s strategic space without direct involvement.

    Where does Iran stand diplomatically and militarily after the recent conflict?

    • Diplomatic Isolation and Limited Support: Despite having strategic partnerships with Russia and China, Iran received only verbal and symbolic backing, with no concrete military or institutional support.
      Its regional alliances failed to activate, reflecting a gap between rhetoric and action.
    • Military Weakening and Proxy Setback: Iran suffered a decapitation of leadership and capacity, while its key proxies like Hezbollah, Hamas, and the Houthiswere unable to respond effectively.
      This has weakened Iran’s role as a regional power and exposed its dependence on non-state actors.

    Way forward: 

    • Formalize Strategic Partnerships: Iran, Russia, and China should work toward institutionalising their ties through defense cooperation frameworks, joint military exercises, and security dialogues to build trust and operational coordination.
    • Align Long-term Strategic Interests: The three nations need to develop a shared geopolitical vision that goes beyond transactional ties, ensuring mutual support mechanisms during crises while balancing individual regional priorities.

  • [25th June 2025] The Hindu Op-ed: U.S.’s heavy duty attack on Iran’s nuke sites

    PYQ Relevance:

    [UPSC 2018] In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to this situation?

    Linkage: “Operation Midnight Hammer: B-2 Bombers Strike Iran’s Nuclear Facilities,” details a significant event where the “U.S. military carried out precision strikes on three key Iranian nuclear facilities, mainly Fordow, Natanz and Isfahan”. This PYQ is highly relevant as it requires an analysis of the broader implications for India arising from such direct military actions and controversies involving the US and Iran’s nuclear capabilities, which are central to the “Operation Midnight Hammer” narrative.

     

    Mentor’s Comment:  On June 21, 2025, the U.S. officially entered the ongoing Israel-Iran conflict by launching “Operation Midnight Hammer”, a precision strike on Iran’s key nuclear enrichment facilities at Fordow, Natanz, and Isfahan. What makes this operation historic is the first-ever operational use of the GBU-57 Massive Ordnance Penetrators (MOP), dropped by B-2 Spirit stealth bombers. Fordow, an ultra-hardened site buried deep within a mountain, had long been considered impregnable — even to Israeli firepower. This high-stakes attack involving stealth bombers, Tomahawk cruise missiles, and elaborate deception tactics showcases the evolving nature of strategic warfare, stealth technology, and nuclear deterrence dynamics, with significant implications for global security and geopolitics.

    Today’s editorial discusses the effects of the recent U.S.A. Operation Midnight Hammer: B-2 Bombers Strike Iran’s Nuclear Facilities. This topic is important for GS Paper II (International Relations) in the UPSC mains exam.

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    Let’s learn!

    Why in the News?

    Recently, the U.S. joined the ongoing conflict between Israel and Iran by launching “Operation Midnight Hammer”, a targeted military strike on Iran’s main nuclear sites located at Fordow, Natanz, and Isfahan.

    What is the B-2 Stealth Bomber?

    The B-2 Stealth Bomber, also known as the B-2 Spirit, is an advanced long-range, heavy bomber used by the United States Air Force.

    What are the geopolitical impacts of the U.S. strikes on Iran’s nuclear sites?

    • Undermining diplomatic efforts: The attack weakens ongoing negotiations over Iran’s nuclear programme, especially efforts to revive the Joint Comprehensive Plan of Action (JCPOA), which the U.S. exited in 2018.
    • Message of deterrence and alliance assurance: The operation signals U.S. commitment to Israel’s security and aims to deter Iran’s nuclear ambitions, reaffirming strategic dominance in West Asia and setting a precedent like the 1981 Israeli strike on Iraq’s Osirak reactor.

    How do technologies like B-2 bombers and bunker-busters shape modern warfare?

    • Enhanced penetration of fortified targets: Bunker-buster bombs like the GBU-57 Massive Ordnance Penetrator can destroy deeply buried nuclear facilities, such as Iran’s Fordow site, which is located inside a mountain.
    • Stealth and survivability in hostile environments: The B-2 Spirit bomber, with its low radar signature and long-range capabilities, allows undetected strikes deep into enemy territory, demonstrated during Operation Midnight Hammerover Iran.
    • Precision and reduced collateral damage: The use of GPS-guided munitions enables targeted destruction of critical infrastructure while minimizing civilian harm. The Tomahawk cruise missiles used alongside the B-2s in the Iran strike are an example.

    What does U.S. involvement in the Israel-Iran conflict indicate about its West Asia strategy?

    • Reinforcement of strategic alliances: The U.S. action shows its continued military and political support for Israel, especially after Israel’s initial strikes on Iran’s nuclear sites. This underscores a long-standing alliance.
    • Deterrence against nuclear proliferation: By targeting Iran’s Fordow, Natanz, and Isfahan facilities, the U.S. aims to send a strong message against the development of nuclear weapons by adversarial states in the region.
    • Projection of power and dominance: The deployment of B-2 bombers and Tomahawk missiles illustrates America’s intent to maintain military superiority and influence over regional conflicts, ensuring its leadership role in West Asia’s security architecture.

    What challenges arise in attacking underground nuclear sites like Fordow?

    • Depth and Fortification: The Fordow nuclear site is buried 80–90 meters underground and shielded by reinforced concrete, making it resilient to conventional strikes. Even the GBU-57 bunker-busters caused only partial damage, revealing the limits of aerial assaults.
    • Operational Complexity: Missions to strike such sites need advanced platforms like the B-2 Spirit stealth bomber, supported by decoy tactics, mid-air refuelling, and long-duration flights. The limited number of B-2s and their high maintenance make repeated missions challenging.

    Does India have B-2 bomber capability?

    • Lack of Stealth Bomber Technology: India does not possess any stealth bombers like the U.S. B-2 Spirit, which is capable of penetrating heavily fortified targets with low radar visibility. The B-2 is a unique platform operated exclusively by the United States.
    • Current Indian Bomber Fleet: India relies on multirole fighter jets such as the Sukhoi Su-30MKI, Rafale, and Mirage-2000 for strike missions. These aircraft are effective but lack deep-strike stealth capabilities and the payload capacity of strategic bombers.E.g. The Sukhoi Su-30MKI can carry cruise missiles like BrahMos, but not bunker-busters like the GBU-57.
    • Strategic Focus and Alternatives: Instead of stealth bombers, India invests in missile-based deterrents such as the Agni series (ballistic missiles) and long-range cruise missiles. These provide strategic strike capability without the need for a dedicated stealth bomber. E.g. The Nirbhay cruise missile offers precision strike capability with a range of 1000+ km.

    What can India do? (Way forward)

    • Invest in Indigenous Stealth and Deep-Strike Platforms: India can accelerate development of indigenous stealth bombers or long-range unmanned combat aerial vehicles (UCAVs) under future programs like AMCA (Advanced Medium Combat Aircraft) to enable penetration of heavily defended targets.
    • Enhance Precision Missile and Bunker-Buster Arsenal: India can develop or acquire heavy bunker-busting munitions and integrate them with existing platforms like the Su-30MKI or future drones, while also upgrading satellite-guided targeting systems for deeper and more accurate strikes.

  • [24th June 2025] The Hindu Op-ed: Pakistan’s role in the U.S.-West Asia calculus

    PYQ Relevance:

    [UPSC 2018] In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to this situation?

    Linkage: This question directly addresses a central component of the “U.S.-West Asia calculus”—the US-Iran dynamic. The article explicitly states that the U.S. conducted military strikes against Iranian nuclear installations and that the U.S. Central Command (CENTCOM) was focused on the situation in West Asia and how to deter Iran with Pakistan’s support.

     

    Mentor’s Comment:  On June 22, U.S. President Donald Trump launched The USA recently carried out military attacks on three of Iran’s nuclear sites—an action that could influence the future of West Asia for a long time. on three of Iran’s nuclear sites—an action that could shape the future of West Asia for years. This decision may trigger a long-term conflict between the U.S. and Iran, but it also has major links to South Asia. Just days before the strikes, Pakistan’s Army Chief Asim Munir had an unusual private lunch with President Trump at the White House—something rare for anyone who isn’t a head of state. This points to deeper strategic changes. At the same time, Pakistan is facing rising sectarian tensions, serious economic troubles, and higher defense spending. Its sudden border closure with Iran and growing support from the U.S. raise important questions about Pakistan’s new role in the Iran-Israel conflict and what it could mean inside the country.

    Today’s editorial looks at how the USA’s military strikes on three Iranian nuclear sites and Pakistan’s Army Chief Asim Munir’s rare private lunch with President Trump could affect international relations. This is useful for GS Paper II (International Relations) in the UPSC mains exam.

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    Let’s learn!

    Why in the News?

    The USA recently carried out military attacks on three of Iran’s nuclear sites—an action that could influence the future of West Asia for a long time.

    What could be the impact of a U.S. strike on Iran have on West Asia and the subcontinent?

    • Escalation of Conflict: The strike may trigger a prolonged confrontation between Iran and Western allies, increasing instability in West Asia. Eg: Past U.S. interventions in Iraq (2003) and Libya (2011) resulted in regime change but long-term chaosand extremist expansion.
    • Realignment of Regional Powers: Countries like Pakistan may shift alliances to support U.S. actions, potentially isolating Iran and affecting critical land-based trade routes. Eg: Pakistan closed its land border with Iran in June 2025, limiting Iran’s trade access to South Asia.
    • Security Tensions: U.S. engagement with Pakistan’s military leadership amid regional conflict could embolden Pakistan strategically, raising concerns for India.  

    Why is General Munir’s meeting with Trump strategically significant?

    • Geopolitical Signalling to India and Iran: The timing and optics of the meeting send a message to both India and Iran about Pakistan’s rising strategic relevance in U.S. calculations. Eg: Coinciding with Pakistan closing borders with Iran and India-Pak tensions easing, the visit reshapes regional power equations.

    How do Pakistan-Iran ties affect regional dynamics?

    • Border Tensions and Proxy Conflicts: Pakistan and Iran share a volatile border in Balochistan, where militant groups operate across both sides, causing frequent skirmishes. Eg: In early 2024, both countries exchanged missile strikes after attacks on Iranian security forces allegedly by groups based in Pakistan.
    • Geopolitical Rivalry in Afghanistan: Both countries compete for influence in Afghanistan, affecting regional alliances and the balance of power in Central Asia. Eg: Iran backs Shia groups, while Pakistan supports Sunni factions, intensifying sectarian divides and shaping Afghanistan’s internal politics.
    • Strategic Role in U.S.-Iran Tensions: Pakistan could play a critical role in isolating Iran, especially during a U.S.-Iran conflict, by shutting trade routes and cooperating with U.S. military interests. Eg: On June 15, 2025, Pakistan closed its border with Iran, coinciding with the Pakistani Army Chief’s visit to Washington, signaling alignment with U.S. strategy.

    Where does Pakistan stand economically amid rising defence spending?

    • High Debt Burden : Interest payments consume 74% of revenue, leaving little for other public services. Eg: In FY2025‑26, PKR (Pakistan’s revenue)  8.207 trillion was allocated to interest, out of PKR 11.07 trillion in total revenue.
    • Defense Budget Surge at Development’s Expense: Despite an overall cut in spending, defense gets a 17% increase, while developmental funds are halved. Eg: Defense allocation in FY2025‑26 is PKR 3.29 trillion, whereas development spending dropped to PKR 1 trillion.
    • Heavy Reliance on Bailouts: Pakistan depends on IMF packages and debt rollovers to meet fiscal commitments amid shrinking revenues. Eg: After its 25th IMF bailout, Pakistan secured PKR 1.4 billion in climate resilience funds, along with PKR 16 billion in loan rollovers.

    What are the steps taken by the Indian government? 

    • Strategic Engagement with Iran and Gulf Nations: India continues to balance its ties with Iran and the Gulf Cooperation Council (GCC) to safeguard energy security and trade interests. Eg: India is actively involved in developing the Chabahar Port in Iran, enhancing access to Afghanistan and Central Asia while bypassing Pakistan. At the same time, India is deepening partnerships with Saudi Arabia and the UAE, including in defence and energy sectors.
    • Heightened Border Surveillance: The Indian government has directed increased surveillance and intelligence gathering along the western borders, especially in Jammu & Kashmir, to counter any proxy threats or destabilisation efforts. Eg: Deployment of UAVs and satellite imaging systems has been intensified across vulnerable stretches, and border infrastructure under the Vibrant Villages Programme is being upgraded.

    What should India do? (Way forward)

    • Strengthen Strategic Autonomy in West Asia: India must maintain balanced relations with both Iran and the U.S., ensuring that its energy security and regional interests are safeguarded. Eg: Continue investing in Chabahar Port, a strategic counter to China-backed Gwadar, while also deepening ties with the Gulf monarchies for energy and investment.
    • Enhance Intelligence and Military Vigilance along Western Borders: With increasing Pakistan-U.S. military cooperation and Iran-Pakistan tensions, India must stay alert to any spillover effects. Eg: Boost surveillance in Jammu & Kashmir, especially given General Munir’s renewed rhetoric on Kashmir and increased Pakistani defense spending.

  • India needs a strategy to deal with China’s restrictions on exports of rare earths

    Why in the News?

    The growing trade war between the U.S. and China, marked by rising tariffs, has drawn attention to rare earth elements and critical minerals.

    What is the role of critical minerals in key industries?

    • Clean Energy and Digital Technologies: Critical minerals such as lithium, nickel, and cobalt are essential for lithium-ion batteries, which are widely used in electric vehicles (EVs) and portable electronics.  
    • Renewable Energy Infrastructure: Minerals like dysprosium and neodymium are used in wind turbines, while tellurium, indium, and gallium are critical for solar photovoltaic cells, vital for clean energy generation.
    • Defence and Strategic Industries: Rare earth elements are critical for manufacturing missile guidance systems, jet engines, and advanced communication equipment. Eg: Gallium and indium are used in high-frequency radar systems and military-grade semiconductors.

    Why is China’s control over rare earths a global concern?

    • Supply Chain Vulnerability: China controls over 90% of global rare earth refining and has the largest reserves, making other countries highly dependent on its exports. In May 2025, China’s export restrictions on rare earth magnets led to global panic and supply concerns in the automobile and electronics sectors.
    • Geopolitical Leverage: China’s dominance allows it to use rare earths as a strategic tool in trade wars or diplomatic tensions, affecting global industrial stability. In response to U.S. tariffs, China imposed restrictions on rare earths, disrupting supply to key U.S. industries.
    • Disruption of Global Industries: Restrictions can hinder production in sectors like renewables, EVs, and defence, slowing global progress in critical technologies. Eg: India’s automobile sector expressed concern about rare earth shortages impacting EV manufacturing and sought government intervention.

    How are countries responding to China’s restrictions?

    • Diplomatic and Trade Negotiations: Major economies like the U.S. and EU are engaging with China to secure continued access to rare earth supplies. Eg: The U.S.-China framework includes commitments that “Full magnets, and any necessary rare earths, will be supplied… by China.”
    • Diversification of Supply Sources: Nations are turning to alternative producers to reduce dependence on China. Eg: Brazil, Saudi Arabia, and Vietnam are actively exploring their critical mineral resources to establish new supply options.
    • National Self-Reliance Missions: Countries are launching domestic initiatives to boost exploration, mining, and processing of critical minerals. Eg: India’s National Critical Mineral Mission (2025) aims to conduct 1,200 exploration projects by 2030–31 to bolster local supply chains.

    What measures has India taken for mineral self-reliance?

    • Launch of the National Critical Mineral Mission (2025): A central initiative aimed at securing India’s future needs in critical and rare minerals. This mission includes plans for 1,200 exploration projects by 2030–31 under the Geological Survey of India.
    • Expanding Domestic Exploration & Mining: India is ramping up on-ground efforts to locate and extract critical minerals within its own borders. Eg: The Geological Survey of India is actively spearheading new lithium, cobalt, and rare earth elementexploration programs across several states.
    • Building Processing and Supply Chain Ecosystems: The government is promoting infrastructure for domestic processing, refining, and manufacturing related to critical minerals. Eg: Policy support and incentives are being extended to companies to set up mineral processing plants, reducing dependence on foreign sources.

    Why is a multi-level strategy needed in this sector?

    A multi-level strategy refers to a comprehensive approach that operates on different layers or fronts simultaneously to address a complex issue effectively. 

    • To Ensure Short-Term Supply Security: Relying on a single country like China for essential minerals creates risks of disruption during geopolitical tensions or trade restrictions. Eg: After China’s 34% tariff and export restrictions in 2025, global industries, including India’s auto sector, faced supply uncertainty.
    • To Develop Domestic Capabilities: Long-term resilience requires countries to invest in local exploration, mining, and processing infrastructure. Eg: India launched the National Critical Mineral Mission with plans for 1,200 exploration projects by 2030–31 to reduce import dependence.

    Way forward:

    • Strengthen International Collaborations for Strategic Reserves: India should forge long-term mineral supply agreements and joint ventures with resource-rich countries. Eg: Bilateral ties with Australia, Argentina, and Africa can help secure lithium and cobalt through assured offtake deals.
    • Boost Domestic R&D and Green Mining Technologies: Investing in sustainable exploration, extraction, and recycling technologies will reduce environmental impactand enhance efficiency. Eg: Support for CSIR and private firms in developing indigenous technologies for rare earth processing and battery recycling.

    Mains PYQ:

    [UPSC 2024] The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.’ Explain this statement with examples.

    Linkage: The article highlights that China dominates the production and reserves of rare earth elements and has placed export restrictions on them, causing panic over supply shortages. This question encapsulates the broader geopolitical and economic context that necessitates India’s strategy to counter China’s dominance and secure critical supplies, such as rare earths.

  • Places in news: Strait of Hormuz

    Why in the News?

    Iran’s Parliament has approved a motion to block the Strait of Hormuz, raising concerns worldwide.

    Strait of Hormuz

    About the Strait of Hormuz:

    • Geographic Location: The Strait of Hormuz is a narrow waterway that connects the Persian Gulf to the Gulf of Oman and eventually to the Arabian Sea.
    • Dimensions: It is about 167 km long and 33 km wide at its narrowest, making it one of the world’s most strategic maritime chokepoints.
    • Bordering Countries: The strait lies between Iran (north) and Oman (south), with nearby cities such as Bandar Abbas, Khasab, and Dubai.
    • Shipping Lanes: It contains designated lanes just 3 km wide in each direction to manage heavy oil tanker traffic.
    • Key Islands: Important islands include Qeshm, Hormuz, and Hengam (controlled by Iran) and disputed ones like Abu Musa and the Tunbs, claimed by both Iran and the UAE.
    • Naval Depth Advantage: Waters near the Musandam Peninsula reach depths over 650 feet, ideal for deep-draft oil tankers.
    • Security Risks: Due to its narrowness, the strait is vulnerable to disruption from mining, military action, or cyber interference.
    • Historical Tensions: It has witnessed frequent maritime tensions, especially during Iran–West conflicts but has never been fully blocked.

    Its significance:

    • Global Oil Flow: Over 20 million barrels of crude oil per day pass through the strait, accounting for 25% of seaborne oil trade and 20% of global consumption.
    • Gas Exports: It is vital for LNG exports, especially from Qatar, reaching markets across the globe.
    • Asian Dependence: Countries like India, China, Japan, and South Korea import 69% of the oil that flows through the strait.
    • Market Sensitivity: Any disruption can spike global oil prices, increasing fuel and commodity costs worldwide.
    • Limited Alternatives: Overland pipelines like Saudi Arabia’s East-West (5 million bpd) and UAE’s Habshan-Fujairah (1.8 million bpd) offer only partial alternatives.

    Implications of Blockade:

    • Shipping Costs: During geopolitical tensions, insurance and freight charges for using the strait surge significantly.
    • India’s Vulnerability: India relies heavily on the region for oil imports, so instability could raise inflation, disrupt energy supplies, and impact the trade balance.
    • Strategic Response: A full blockade could trigger direct military action, particularly from the US 5th Fleet based in Bahrain.
    • Mutual Economic Impact: Disruption would affect both exporters and importers, including Iran and its major customer, China.
    [UPSC 2010] Which one of the following can one come across if one travels through the Strait of Malacca?

    Options: (a) Bali (b) Brunei (c) Java (d) Singapore*

     

  • [19th June 2025] The Hindu Op-ed: Why are oil prices rising amid Iran-Israel war?

    PYQ Relevance:

    [UPSC 2018] In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to this situation?

    Linkage: This question explicitly links “escalating tensions between Iran and Israel” to oil prices “spiralling upwards” due to fears of “potential disruption in oil supplies globally”. The article talks about the Iran’s threats to close the Strait of Hormuz as the “primary reason” for rising prices, as this chokepoint is crucial for transporting a significant portion of global petroleum liquids and oil supply from the Persian Gulf to the Arabian Sea.

     

    Mentor’s Comment:  Oil prices have jumped sharply due to rising tensions between Iran and Israel, mainly because of fears that the Strait of Hormuz — a key route for global oil supply — could be blocked. Brent crude prices rose by 9%, showing how sensitive global markets are to such conflicts. Although prices eased slightly after news of diplomatic talks through Gulf countries, the threat of disruption still remains. For India, which buys over 80% of its oil from abroad, this is a serious concern. It affects not just fuel availability, but also inflation, economic stability, and business investments, making it a major challenge for India’s economy.

    Today’s editorial analyses the impact of tensions between Iran and Israel on crude oil prices. This content would help in GS Paper II (International Relations) and GS Paper III (Indian Economy) in the mains Paper.

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    Let’s learn!

    Why in the News?

    Recently, oil prices have risen a lot because of increasing tension between Iran and Israel, mainly due to worries that the Strait of Hormuz — a major route for global oil transport — might be closed.

    Why is the Strait of Hormuz vital for global oil trade?

    • Major Oil Transit Chokepoint: The Strait of Hormuz is one of the world’s most important maritime chokepoints, through which nearly 20 million barrels per day (mb/d) of oil passed in 2024 — about one-fifth of global consumption. Eg: The U.S. Energy Information Administration (EIA) reported that the strait handled the world’s largest oil tankers transporting oil from Gulf nations.
    • Exports from Key Producers: It serves as the primary export route for major oil-producing countries such as Saudi Arabia, Iran, UAE, Kuwait, Iraq, and Qatar. Eg: According to the International Energy Agency (IEA), about one-fourth of the global oil supply exits the Gulf through this strait.
    • Dependency of Asian Markets: A significant portion of oil transiting the Strait goes to Asian economies, which are heavily dependent on West Asian oil. Eg: In 2024, 84% of crude oil and 83% of liquefied natural gas (LNG) transported via the Strait was destined for countries like India, China, Japan, etc.

    What are the economic implications of the Israel-Iran conflict on India’s growth and inflation?

    • Rising Crude Oil Prices Increases Import Costs: A spike in global oil prices due to the conflict raises India’s import bill, as the country imports over 80% of its crude oil needs. Eg: Brent crude surged to $78.50/barrel in June 2024 amid Israel-Iran tensions, directly increasing India’s energy costs and widening the current account deficit.
    • Pressure on Inflation and Input Costs: Higher oil prices translate into increased transportation and production costs, leading to inflationary pressure on goods and services. Eg: Experts like Amit Kumar of Grant Thornton noted that global price shocks could affect India Inc’s profitability and raise inflation even though India doesn’t import oil directly from Iran.
    • Threat to GDP Growth Projections: Prolonged geopolitical instability may lead to delayed private investments and lower industrial output, affecting economic growth. Eg: ICRA’s Chief Economist, Aditi Nayar, warned that a sustained oil price rise could prompt a downward revision of India’s 6.2% GDP growth forecast for FY25.

    How has India reduced its vulnerability to oil price shocks amid West Asian tensions?

    • Diversification of Crude Oil Import Sources: India has expanded its import basket beyond traditional Gulf suppliers to include countries like the U.S., Russia, and Latin American nations. Eg: Union Petroleum Minister Hardeep Singh Puri stated that India is “comfortably placed” due to diversified crude sourcing, reducing overdependence on West Asia.
    • Strategic Petroleum Reserves (SPR): India has built strategic oil reserves to buffer against short-term supply disruptions or price spikes. Eg: The Indian Strategic Petroleum Reserves Ltd (ISPRL) manages reserves that can support 9–10 days of crude demand, offering resilience during crises.
    • Promoting Renewable Energy and Domestic Production: India is ramping up solar, wind, and ethanol-blended fuels to lower long-term reliance on imported oil. Eg: Initiatives like PM-KUSUM and National Bio-Energy Mission aim to reduce fossil fuel dependence and enhance energy security.

    What are the key drivers of the recent oil price surge?

    • Geopolitical Tensions Between Iran and Israel: The escalation in Israel-Iran conflict, including threats to close the Strait of Hormuz, triggered fears of significant supply disruptions, sending oil prices sharply upward. Eg: Brent crude shot up nearly 9% on June 13, reaching $75.65 per barrel, after heightened tensions.
    • Strait of Hormuz Chokepoint Risk: As a critical maritime chokepoint, any threat to close the Strait could drastically affect global oil flow and increase shipping and insurance costs, contributing to higher prices. Eg: Iran’s repeated threats to disrupt transit through the Strait instilled market anxiety, pushing Brent to an intraday high of $78.50 per barrel.
    • Supply Constraints Due to Sanctions and Regional Export Bottlenecks: U.S. sanctions on Iranian oil exports and potential disruptions to routes via the Suez Canal or Red Sea limit available global supply, exacerbating price volatility.

    Who ensures safe oil transit through Hormuz?

    • United States Navy – Fifth Fleet: The U.S. Navy’s Fifth Fleet, based in Bahrain, regularly patrols the Strait to deter threats like piracy or military aggression, especially from Iran. Eg: In 2019, after Iranian threats, the U.S. deployed additional naval assets to escort commercial tankers through Hormuz.
    • International Maritime Security Construct (IMSC): A coalition of Western and Gulf nations, including the UK, Saudi Arabia, and Bahrain, established the IMSC to protect freedom of navigation in the Gulf region. Eg: The UK Royal Navy has deployed warships like HMS Montrose to escort oil tankers through Hormuz during periods of heightened tension.

    What global actions can reduce related risks? (Way forward)

    • Strengthening Multilateral Naval Patrols: Enhancing joint maritime security through coalitions like the International Maritime Security Construct (IMSC) can deter potential blockades and ensure safe passage. Eg: The U.S. and UK-led naval missions in 2019 escorted oil tankers after Iran’s threats, maintaining uninterrupted oil flow.
    • Diversifying Global Oil Supply Routes: Investing in alternative pipelines and trade routes (e.g., via Red Sea or land-based pipelines) reduces overdependence on chokepoints like Hormuz. Eg: The UAE’s Habshan-Fujairah pipeline bypasses the Strait and delivers oil directly to the Arabian Sea, reducing exposure to disruption.

  • [18th June 2025] The Hindu Op-ed: What is Netanyahu’s endgame in Iran?

    PYQ Relevance:

    [UPSC 2018] In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to this situation?

    Linkage: To answer this question effectively, one would need to understand the strategic objectives (Netanyahu’s “endgame”) of the key players involved, particularly Israel and the U.S., concerning Iran’s nuclear capabilities and regional influence because this question is highly relevant as it directly references the “US-Iran Nuclear Pact Controversy,” which is a central theme of article.

     

    Mentor’s Comment:  Israel’s massive air attack on Iran, launched on June 13, has become a major turning point in West Asia’s politics and nuclear tensions. Israel targeted important nuclear sites, military bases, and top Iranian leaders — including the head of Iran’s armed forces — in what is now the most serious direct clash between the two countries. Although Israel says it wants to stop Iran’s nuclear program, much of the damage is limited, and Iran has hit back by firing hundreds of missiles, showing that Israel’s air advantage has its limits. This rising conflict is pushing the region closer to a wider war, with uncertain choices ahead — whether through diplomacy, trying to remove Iran’s government, or involving the U.S. — all of which carry serious global risks.

    Today’s editorial analyse the Israel’s massive air attack on Iran. This content would help in GS Paper II (International Relations) in the mains Paper.

    _

    Let’s learn!

    Why in the News?

    Israel controls the skies and keeps bombing Iran to stop its nuclear program. But without powerful bombers to destroy protected sites, the attacks are unlikely to end soon.

    Why did Israel launch a pre-emptive air war against Iran?

    • To cripple Iran’s nuclear programme: Israel aimed to destroy key facilities involved in uranium enrichment and nuclear fuel processing. Eg: The air strikes on Natanz and Isfahan Nuclear Technology Centre targeted centrifuge halls, uranium conversion labs, and fuel manufacturing plants.
    • To eliminate Iran’s military leadership and infrastructure: Israel sought to weaken Iran’s retaliatory capabilities by decapitating its chain of command and targeting missile sites. Eg: The first wave of attacks killed Iran’s top generals, including the chief of the armed forces, and destroyed ballistic missile sites.
    • To pre-empt diplomacy and assert regional dominance: The strike came just before scheduled U.S.-Iran nuclear talks, indicating Israel’s intent to disrupt any deal that could legitimize Iran’s nuclear capabilities. Eg: The air war began three days before the sixth round of U.S.-Iran nuclear talks, showing that diplomacy was not Israel’s immediate priority.

    What impact has Israel’s offensive had on Iran’s nuclear infrastructure and retaliatory capabilities?

    • Partial damage to nuclear infrastructure: Israel’s strikes caused significant but incomplete destruction of Iran’s nuclear facilities. Eg: The Natanz facility’s above-ground buildings were “completely destroyed”, but the underground centrifuge hall remained mostly intact, as per the IAEA.
    • Severe but not total disruption of key nuclear functions: Several critical facilities were hit, reducing Iran’s short-term nuclear processing ability. Eg: At Isfahan, Israel destroyed a chemical lab, uranium conversion plant, fuel manufacturing plant, and a uranium metal conversion unit—all essential to nuclear development.
    • Limited impact on Iran’s missile retaliation capacity: Despite leadership losses and infrastructure damage, Iran responded with strong missile and drone attacks. Eg: Iran launched ~400 missiles, striking targets in Israel like the Haifa oil refinery and a research institute near Tel Aviv, showing its retaliatory capabilities remain intact.

    How does the ongoing conflict affect regional security?

    • Risk of a full-scale regional war: The conflict may escalate beyond Israel and Iran, drawing in regional actors and proxy militias. Eg: Iran’s allies like Hezbollah in Lebanon or Shia militias in Iraq and Syria could retaliate, opening multiple war fronts across West Asia.
    • Destabilization of already fragile states: Ongoing hostilities may worsen instability in politically volatile countries. Eg: Countries like Iraq, Syria, and Yemen, already dealing with internal conflicts, could become battlefields for Israeli-Iranian proxy warfare.
    • Undermining regional diplomacy and peace efforts: The conflict derails ongoing peace talks and normalisation efforts between Israel and Arab nations. Eg: Arab countries part of the Abraham Accords, like UAE and Bahrain, are now under pressure to respond, potentially freezing further diplomatic engagement with Israel.
    • Threat to global energy supplies: The war risks disrupting oil production and shipping through key routes like the Strait of Hormuz. Eg: Iran may target Gulf oil infrastructure or tankers, affecting exports from Saudi Arabia, Kuwait, and UAE, leading to global oil price hikes.
    • Increased civilian casualties and humanitarian crises: Strikes on civilian infrastructure increase displacement and humanitarian distress. Eg: Bombing of civilian locations in Iran and missile hits on Israeli cities have killed dozens and forced airport shutdowns like at Ben Gurion Airport in Tel Aviv.

    What is the role of global powers like the U.S.?

    • Indirect support and strategic green light to Israel: While officially denying involvement, the U.S. has tacitly approved Israel’s actions. Eg: President Donald Trump publicly claimed neutrality but reportedly gave a “clear green light” to Israel before the June 13 strikes, according to Israeli officials.
    • Using Israeli strikes as diplomatic leverage: The U.S. is leveraging the conflict to pressure Iran into nuclear negotiations on stricter terms. Eg: Trump indicated openness to a new nuclear deal with Iran, using Israeli aggression as a tool to push Iran back to talks.
    • Avoiding direct military involvement while containing escalation: The U.S. is trying to prevent the conflict from expanding to American assets or allies. Eg: Trump warned Iran not to target U.S. troops or bases, and Iran has been cautious to avoid direct conflict with U.S. forces despite intense fighting with Israel.

    What are the diplomatic and military options available to Israel in its conflict with Iran?

    • Military escalation for regime change: Israel may continue bombing key infrastructure to weaken or collapse the Iranian regime. Eg: Prime Minister Netanyahu hinted at targeting Iran’s Supreme Leader, Ayatollah Khamenei, and stated that the offensive could lead to regime change in Tehran.
    • Pause strikes to enable diplomacy: Israel could halt its attacks temporarily to allow diplomatic negotiations between the U.S. and Iran. Eg: Iran reportedly sent feelers through Gulf countries expressing willingness to talk if Israel stops bombing, indicating an opening for peace talks.
    • Push for direct U.S. military involvement: Israel could seek to draw the U.S. into the conflict to achieve its strategic goals, especially the destruction of fortified nuclear sites. Eg: Israeli officials are pressing Washington to join the war, as U.S. bunker-buster bombs and bombers are necessary to destroy Iran’s Fordow facility.

    Way forward: 

    • Pursue an internationally mediated ceasefire and nuclear dialogue: Global powers, especially the U.S., EU, and UN, should mediate a ceasefire to de-escalate hostilities and revive nuclear diplomacy with robust verification mechanisms. Eg: Leveraging backchannel talks through Gulf countries and involving the IAEA can help restore trust and prevent further militarisation.
    • Prevent regional spillover through coordinated crisis management: Establish a joint crisis response framework involving regional actors (like Saudi Arabia, UAE, and Turkey) to contain proxy escalations and protect civilian infrastructure. Eg: A regional security dialogue could be initiated under the UN or Arab League to address missile threats, avoid airspace violations, and prevent humanitarian crises.

  • Key Highlights of the Global Liveability Index, 2025

    Why in the News?

    The Economist Intelligence Unit (EIU) has released its Global Liveability Index 2025, evaluating 173 cities worldwide on their quality of life.

    About the Global Liveability Index:

    • Publisher: It is released annually by the Economist Intelligence Unit (EIU).
    • Purpose: It measures the quality of life in 173 cities worldwide, assessing how challenging or comfortable it is to live in each location.
    • Usage: The index informs decisions by corporations, governments, and development agencies, particularly for policy planning and expatriate relocation.
    • Five Assessment Categories:
      1. Stability (25%): Considers levels of crime, civil unrest, and terrorism threats.
      2. Healthcare (20%): Evaluates the quality, accessibility, and availability of medical services.
      3. Culture & Environment (25%): Includes climate, cultural offerings, and environmental conditions.
      4. Education (10%): Measures access to public and private education and overall quality.
      5. Infrastructure (20%): Covers transport, roads, housing, and utility services.
    • Scoring: Cities are rated from 1 (intolerable) to 100 (ideal) using 30+ qualitative and quantitative indicators.

    Key Global Rankings (2025):

    • Top Cities:
      • Copenhagen (Denmark) ranked 1st, scoring 98/100 with perfect marks in stability, education, and infrastructure.
      • Vienna and Zurich tied for 2nd, followed by Melbourne (4th) and Geneva (5th).
    • Regional Trends: Western European cities dominated the top 10, thanks to strong healthcare, education, and public transport systems.
    • Asia-Pacific Performers: Melbourne, Sydney, Osaka, Auckland, and Adelaide made the top 10, showing continued high liveability.
    • Improvements: Al Khobar (Saudi Arabia) jumped 13 spots due to gains in education and healthcare.
    • Lowest Ranked: Damascus (Syria) remains the least liveable, followed by Tripoli (Libya) and Dhaka (Bangladesh).
    • India’s Position: Both Delhi and Mumbai ranked 141st out of 173 cities, reflecting persistent issues in healthcare, infrastructure, air quality, and public safety.
    [UPSC 2017] With reference to the role of UN-Habitat in the United Nations programme working towards a better urban future, consider the following statements:

    1. UN-Habitat has been mandated by the United Nations General Assembly to promote socially and environmentally sustainable towns and cities to provide adequate shelter for all.

    2. Its partners are either governments or local urban authorities only.

    3. UN-Habitat contributes to the overall objective of the United Nations system to reduce poverty and to promote access to safe drinking water and basic sanitation.

    Which of the statements given above is/are correct?

    Options: (a) 1, 2 and 3 (b) 1 and 3 only* (c) 2 and 3 only (d) Neither 1 nor 2

     

  • [11th June 2025] The Hindu Op-ed: Erdogan’s neo-Ottoman foreign policy

    PYQ Relevance:

    [UPSC 2019] The long-sustained image of India as a leader of the oppressed and marginalised Nations has disappeared on account of its new found role in the emerging global order”. Elaborate.

    Linkage:  Under President Erdogan, Türkiye has moved away from its earlier identity as a secular, peaceful Cold War ally. Instead, it is now trying to become a strong regional power by following a foreign policy influenced by Islamic values. This question looks at how a country’s image and role are changing in today’s world.

     

    Mentor’s Comment:  Türkiye’s bold and ideology-driven foreign policy under President Recep Tayyip Erdoğan is changing the political balance in West Asia, North Africa, and the Caucasus. By mixing Islamic revival ideas with smart diplomacy, Türkiye has become a unique player — a NATO member that backs Islamic groups and also works closely with Russia and Iran. Its support for HTS in Syria, military presence in Qatar, and use of drones in Azerbaijan and Ukraine show a carefully planned but risky push to expand its regional influence.

     Today’s editorial discusses Türkiye’s bold and belief-based foreign policy, which is an important topic for GS Paper II (International Relations).

    _

    Let’s learn!

    Why in the News?

    Recently, under President Recep Tayyip Erdogan, Türkiye has followed a foreign policy that leans towards Islamic values and focuses on making closer friendships with Muslim countries. But knowing Türkiye’s limits, he has also used a practicaland flexible approach along with his Islamic ideas.

    What are the key features of Türkiye’s foreign policy under President Erdogan?

    • Islamist-leaning tilt: Türkiye has shifted from secular foreign policy to an Islamist-oriented approach, drawing from Ottoman-era ideology like Ittihad-i Islam (Unity of Islam).
    • Strategic activism: Ankara has actively intervened in conflict zones (Syria, Libya, Caucasus) to expand influence and protect Islamist groups.
    • Balanced diplomacy: Despite its Islamist foreign policy, Türkiye continues to be a key NATO member and maintains military cooperation with the West.
    • Pragmatism with ideology: Erdogan blends ideological objectives with pragmatic diplomacy to gain leverage in regional and global affairs.

    Why has Türkiye blended Islamist ideology with pro-Western alliances in recent years?

    • Strategic Leverage: Türkiye blends Islamist ideology with pro-Western alliances to expand its influence in the Muslim world while continuing to benefit from Western military and economic support. Eg: It supported the Muslim Brotherhood in Egypt while remaining a NATO member and hosting U.S. nuclear weaponsat Incirlik Airbase.
    • Geopolitical Balancing: By engaging with both the West and rivals like Russia, Türkiye positions itself as a key regional power using diplomatic flexibility. Eg: It supplied drones to Ukraine but refused to impose sanctions on Russia, and also bought Russia’s S-400 missile defence system.
    • Domestic Political Gains: The blend allows Erdogan to satisfy his conservative and Islamist voter base while keeping ties with the West to boost Türkiye’s global standing. Eg: While supporting Islamist groups in Syria and Libya, he also pursued EU accession negotiations and maintained U.S. relations.
    • Reclaiming Regional Influence: Erdogan aims to revive Türkiye’s past Ottoman glory by asserting leadership in the Islamic world through both ideology and realpolitik. Eg: Türkiye supported HTS in Syria, deployed troops in Qatar, and backed Azerbaijan against Armenia—moves tied to its historical influence in those regions.

    How has Türkiye’s involvement in Syria, Libya, and the Caucasus expanded its regional influence?

    • Support for Islamist Groups in Syria: Türkiye backed anti-Assad factions, including the Free Syrian Army and later Hayat Tahrir al-Sham (HTS), to expand its presence near the Israeli border and counter Kurdish militias. Eg: Türkiye created a buffer zone on the Turkish-Syrian border and opposed military operations against HTS, enhancing its influence in northern Syria.
    • Military Presence in Libya: Türkiye supported the Tripoli-based government, which was dominated by Islamist groups, against the eastern faction supported by Egypt and Russia. Eg: Its intervention shifted the power balance in Libya’s civil war, strengthening its role as a decisive actor in North Africa.
    • Backing Azerbaijan in the Caucasus: During the 2023 Armenia-Azerbaijan war, Türkiye supported Azerbaijanmilitarily and diplomatically against Russia-backed Armenia. Eg: Türkiye’s supply of drones and training helped Azerbaijan gain territory in Nagorno-Karabakh, solidifying Ankara’s role in Caucasian geopolitics.
    • Neo-Ottoman Strategic Depth: These interventions reflect Türkiye’s goal of restoring its Ottoman-era influence in regions it historically controlled. Eg: By actively engaging in conflicts across West Asia and the Caucasus, Türkiye revives its historical footprint under a neo-Ottoman vision.
    • Diplomatic Bargaining Power: Türkiye’s involvement in regional conflicts enhances its bargaining power with both the West and Russia, giving it room to extract concessions. Eg: Despite tensions over S-400, Türkiye supported Sweden and Finland’s NATO entry, using its strategic role to influence Western policy decisions.

    What are the ethical issues? 

    • Support for Militant Groups: Backing groups like Hayat Tahrir al-Sham (HTS), which has links to terrorist networks, raises serious ethical concerns regarding state sponsorship of violence. Eg: Türkiye’s protection of HTS in Syria, despite its al-Qaeda roots, may undermine international counter-terrorism norms.
    • Civilian Impact and Regional Instability: Türkiye’s military involvement in conflict zones (Syria, Libya, Caucasus) can lead to civilian casualties and human rights violations, raising questions about just war ethics. Eg: Drone strikes in Libya and Azerbaijan, though tactically effective, risk collateral damage and contribute to prolonged violence.

    What would be the impact on India? 

    • Strengthened Türkiye-Pakistan Alliance: Türkiye’s open support for Pakistan in regional disputes, especially during India-Pakistan tensions, could undermine India’s diplomatic interests. Eg: During the India-Pakistan flare-up, Türkiye backed Islamabad, which may influence international forums like the UN or OIC against India.
    • Rival Narrative in the Muslim World: Türkiye’s Islamist foreign policy positions it as a champion of Muslim causes, potentially creating a counter-narrative to India’s efforts to engage Gulf and West Asian countries. Eg: Türkiye’s support for Kashmir-related discussions at the OIC can affect India’s relations with Muslim-majority countries.
    • Strategic Presence Near India’s Periphery: Türkiye’s increasing engagement in South Asia and Central Asia through military and diplomatic ties (e.g., with Azerbaijan and Pakistan) may reduce India’s strategic space in the extended neighbourhood. Eg: Türkiye’s participation in military drills with Pakistan and support for joint defence production could enhance Islamabad’s military capabilities.

    Way forward: 

    • Strengthen Strategic Partnerships in West Asia and Eurasia: India should deepen ties with countries like Saudi Arabia, UAE, Iran, and Central Asian republics to counterbalance Türkiye’s growing regional influence. Eg: Expanding the International North-South Transport Corridor (INSTC) and increasing energy and security cooperation with Gulf nations can help secure India’s interests.
    • Enhance Global Diplomacy and Narrative Building: India must actively engage in multilateral platforms (like OIC, UN, SCO) to neutralize anti-India rhetoric and promote a moderate, inclusive image. Eg: Leveraging its civilizational diplomacy and diaspora to reinforce its role as a responsible power in the Islamic world.

  • India opposed to ADB’s funding to Pakistan

    Why in the News?

    India has strongly objected to the Asian Development Bank’s (ADB) decision to provide an $800 million loan to Pakistan under its Resource Mobilisation Reform Programme.

    About the Asian Development Bank (ADB):

    • Established: 1966, following a UN-led conference on Asian Economic Cooperation.
    • Headquarters: Manila, Philippines
    • Status: Official Observer at the United Nations
    • Objectives:
      • To reduce poverty in Asia and the Pacific.
      • To promote inclusive and environmentally sustainable growth and regional economic integration.
    • Functions:
      • Provides loans (hard and soft), grants, and technical assistance.
      • Offers direct funding to private sector projects with social benefits.
      • Supports countries through policy dialogues, co-financing, and advisory services.
    • Funding Sources:
      • Issues bonds on global capital markets.
      • Receives member contributions, loan repayments, and retained earnings.
    • Membership and Shareholding:
      • 67 members: 48 from Asia-Pacific.
      • Major shareholders: Japan and USA (each 15.607%), China (6.444%), India (6.331%), Australia (5.786%).
    • Climate Goals:
      • Aims to mobilize $100 billion for climate finance between 2019 and 2030.
      • Promotes sustainable development initiatives such as green fuel projects, including one in Pakistan funded partly by ADB.

    India’s concerns over ADB Funding:

    • India emphasized that Pakistan’s defense spending has risen significantly even as its tax-to-GDP ratio fell from 13% in 2017-18 to 9.2% in 2022-23.
    • This tax ratio is significantly below the Asia-Pacific average of 19%, suggesting poor revenue collection and financial mismanagement.
    • India stressed to ADB that it expects strict oversight mechanisms to be implemented to avoid diversion of funds.
    • India has previously opposed financial aid to Pakistan at other fora like the International Monetary Fund (IMF) and is reportedly preparing a dossier to request Pakistan’s re-entry into the FATF grey list.
    [UPSC 2024] Which one of the following launched the ‘Nature Solutions Finance Hub for Asia and the Pacific’?

    (a) The Asian Development Bank (ADB) * (b) The Asian Infrastructure Investment Bank (AIIB) (c) The New Development Bank (NDB) (d) The International Bank for Reconstruction and Development (IBRD)