Type: Prelims Only

Why in the News?
Data from the United States Department of State shows a 69% fall in F-1 visas issued to Indian students in June–July 2025 compared to 2024.

Key Points:

• F-1 visa: Non-immigrant visa for international students studying in the U.S.
• Visas issued to Indians fell from 41,336 (2024) to 12,776 (2025) during the peak admission period.
• Decline followed stricter immigration measures under Donald Trump’s administration, including:
  • Temporary pause in visa interviews
  • Expanded social media screening for applicants.
• Chinese students also saw a decline, but smaller (about 56%).
• Despite the drop, Indians remain the largest international student group in the U.S., with about 3.63 lakh students (31%) in 2024-25.

F-1 Visa

• The F-1 visa is a non immigrant student visa issued by the United States that allows foreign students to study full time at accredited academic institutions in the United States.
• It is the most common visa for international students pursuing higher education in the U.S.

Why in the News

An Iranian warship IRIS Dena was reportedly torpedoed by a US submarine in the Indian Ocean near Sri Lanka after participating in the MILAN 2026 and the International Fleet Review at Visakhapatnam. The incident has sparked debate about the legal framework governing naval warfare in international waters.

Key Legal Framework Governing Maritime Conflict

1. UNCLOS (United Nations Convention on the Law of the Sea)

• United Nations Convention on the Law of the Sea regulates maritime zones, navigation rights and ocean governance.
• It mainly governs peacetime maritime activities.
• It does not directly regulate wartime naval operations.
• Notably, the United States is not a signatory to UNCLOS.

2. Law of Naval Warfare

• During armed conflict, naval warfare laws operate alongside UNCLOS.
• Key principles include:
  • Warships of enemy states can be legitimate military targets.
  • The laws of armed conflict at sea regulate blockades, attacks, and treatment of vessels.

3. UN Charter and Use of Force

• The United Nations Charter provides rules for the use of force.
• Article 2(4): Prohibits the use of force against another state.
• Article 51: Allows self-defence in response to an armed attack.

4. UN Security Council Authorization

• Under Chapter VII of the UN Charter, the United Nations Security Council can authorise the use of force.
• However:
  • Requires majority approval.
  • None of the permanent members must use their veto.

Maritime Zones Relevant to the Incident

1. Territorial Sea – up to 12 nautical miles from coast (full sovereignty).
2. Exclusive Economic Zone (EEZ) – up to 200 nautical miles where coastal states have economic rights.
3. High Seas – international waters beyond national jurisdiction. The attack reportedly occurred in the EEZ of Sri Lanka.

Why in the News

The ongoing conflict involving Iran, Israel and the United States has pushed up oil prices and disrupted energy supplies. Analysts believe the situation may slow India’s economic growth, while the Reserve Bank of India (RBI) is likely to keep interest rates relatively low.

Key Economic Developments

• Oil prices have risen about 15% after the conflict began.
• The Indian rupee has hit record lows and bond yields have risen.
• Financial markets saw sell-offs in equity, debt and currency markets.
  • These developments have raised concerns about India’s current account deficit and growth outlook.

Impact on India’s Economy

• Slower Economic Growth: Disruption of natural gas supplies from the Middle East may affect sectors such as:
  • Fertilizers
  • Power generation
• If disruptions last more than four weeks, growth could be affected for at least a quarter.
• Oil Price Risk: If crude oil prices stay above $90–95 per barrel for several quarters,
  • India’s growth may slow from above 7% to around 6.5%.
• Pressure on External Balance: Higher oil prices can:
  • Increase India’s import bill
  • Widen the current account deficit
  • Depreciate the rupee.

Inflation Outlook

• Despite higher oil prices, inflation risks remain moderate.
• India’s retail inflation was 2.75% in January, near the lower end of RBI’s 2–6% tolerance band.
• A 10–20% rise in global oil prices may increase inflation by 25–50 basis points.
  • Government actions such as holding retail fuel prices steady or reducing excise duties may cushion inflation.

RBI’s Likely Policy Response

• RBI had already cut the repo rate by 125 basis points in 2025.
• Policymakers may prioritise supporting economic growth rather than raising rates immediately.
• However, if oil prices cross $100 per barrel, central banks globally may adopt a more hawkish stance.