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Type: World Mapping

  • 60 days on, a disturbing US-Iran stalemate

    Why in the News

    The 60 day window for the United States and Iran to agree a long term peace framework expired on 17 August 2026 with no agreement. Both sides had already shut that window through late June and July while trading strikes, and the Strait of Hormuz remains blockaded by Iran and counterblockaded by the United States. A deadlock that neither side can end now holds global oil and gas movement hostage.

    What is the US Iran Memorandum of Understanding of 17 June?

    1. What it was: An interim understanding signed on 17 June 2026 that declared the immediate and permanent termination of military operations on all fronts.
    2. The clock: It set a 60 day timeframe, extendable by mutual consent, within which a broader agreement was to be reached.
    3. What the broader deal covered: Limits on Iran’s nuclear programme on one side and the lifting of United States sanctions on the other.
    4. The disputed clause: Point 5 was read by Tehran as giving it the right to manage the Strait of Hormuz, which it shares with Oman. Washington rejected that reading.
    5. How it collapsed: Hostilities resumed once Iran began firing on vessels it said were using an unapproved route through the waterway.
    6. Status on expiry: No long term framework exists. The interim text is the only agreed document and it is no longer being observed.

    What is the Strait of Hormuz?

    1. Location: A narrow sea passage connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, bordered by Iran to the north and Oman and the United Arab Emirates to the south.
    2. Why it matters: About a fifth of global oil and liquefied natural gas moved through it before the war, with no overland route able to absorb that volume.

    What is a naval blockade?

    1. Definition: A blockade is the use of warships to stop shipping from entering or leaving a coast or a waterway.
    2. The two sided version here: Iran has closed the strait to traffic it has not approved. The United States has answered with a counterblockade of Iranian ports that it says it can sustain indefinitely by rotating ships.

    What is the Bab el Mandeb Strait?

    1. Location: The passage between Yemen and Djibouti that links the Red Sea to the Gulf of Aden, and so links Suez traffic to the Indian Ocean.
    2. Current state: The Yemen based Houthi group enforces a partial blockade there, which puts a second chokepoint on the same route at risk.

    What are strategic petroleum reserves?

    1. Definition: Underground crude oil stocks held by the State to cover consumption when imports are cut off by war, sanctions or a supply shock.
    2. How they work: The reserve is filled when prices are low and released into refineries when supply stops, so the shock reaches the economy slowly rather than at once.

    Why did the 60 day framework fail to hold?

    1. Interpretation, not intent: The understanding began to unravel largely over disagreement on how its own terms should be read, not over a refusal to talk.
    2. The strait stayed shut: The framework never reopened the Strait of Hormuz, which Iran has effectively blockaded since the Israel and United States attack of 28 February 2026.
    3. The war widened instead: The 60 day period saw the Houthis and Saudi Arabia begin attacking each other, extending the conflict to a second waterway.
    4. Escalation on the ground: Iranian drones struck the office of the Kurdistan Regional Government’s prime minister in northern Iraq on 17 August.
    5. Policy shift in Tehran: A senior Iranian official stated that Iran has moved from a defensive to a fully offensive posture and would strike to break the American naval blockade if diplomacy failed.
    6. Parallel track: Iran and Oman have separately negotiated the coordinates of a jointly managed route through the strait, and progress there has been slow.

    Which figures define the scale of the disruption?

    1. Transit collapse: Traffic through the strait fell to two vessels in a day against more than 130 daily before the conflict.
    2. Share of world energy: About one fifth of global oil and liquefied natural gas flowed through the strait before the war.
    3. Timeline: The war was launched on 28 February 2026. The Memorandum of Understanding was signed on 17 June and its window closed on 17 August.
    4. Second chokepoint: Seven missiles were fired at the Bab el Mandeb Strait and the Mokha coastline in a single day, alongside Houthi claims of striking a Saudi landing ship and four patrol boats.
    5. Spillover count: The Kurdistan region of Iraq has been targeted more than 1,000 times by Iran and pro Iran armed groups since the war began.
    6. Environmental cost: A 160 km oil slick from a bulk carrier struck by a projectile spread off Qeshm island and threatened the Hara mangrove forests, a UNESCO biosphere reserve.
    7. India’s gas shift: Indian liquefied natural gas imports rose 15.4 percent to 7.08 million tonnes over May to July as Qatari supply collapsed.

    Why are both sides doubling down on economic warfare?

    1. Lesson learned in Washington: Bombing alone has not dislodged the government in Tehran, and the United States is running low on munitions.
    2. Lesson learned in Tehran: The United States has come to stay in the region, and ballistic missiles fired at American bases or at Israel will not change that.
    3. American instruments: Washington has rescinded sanction waivers on Iranian oil in the international market and threatens to hold its naval blockade of Iranian ports indefinitely.
    4. Iranian instrument: Tehran’s single point of leverage is the strait itself, which it can keep closed at low cost to its own military.
    5. Iran’s political bet: Tehran calculates that it can squeeze the American administration until the midterm elections and treats the stalemate as the new balance of power.
    6. The American constraint: With a midterm election approaching, the United States President must show that the pressure campaign is producing results without trapping the country in another foreign war.

    What do the positions of other States in the conflict demonstrate?

    1. Oman: It shares the strait with Iran and is negotiating a jointly managed route with Tehran, which makes a small mediating State the only working channel. The United States President has threatened to bomb Oman if it gets in the way of a deal.
    2. Gulf States and the Malacca model: Oman, backed by Gulf States, offered Iran a scheme of voluntary transit fees for using the strait, modelled on the arrangement used in the Strait of Malacca.
    3. Israel: It launched the war jointly with the United States on 28 February, which is why the closure of the strait is treated in Tehran as a response to an attack rather than an independent act.
    4. Saudi Arabia: It is now in direct exchange of fire with the Houthis, which shows how a bilateral war spreads to a second chokepoint through proxies.
    5. Yemen and the Houthis: A non State armed group enforces a partial blockade of the Bab el Mandeb using ballistic missiles and drones against naval and commercial shipping.
    6. Iraq and the Kurdistan region: Iranian drones and pro Iran armed groups have struck the autonomous region’s leadership more than 1,000 times, showing that the conflict travels through weak neighbouring States.
    7. Qatar: Its liquefied natural gas exports must cross the strait, which is why the shutdown forced buyers such as India to switch to United States, Nigerian, Omani and Angolan cargoes.

    Where does the stalemate turn against both sides?

    1. Each side believes time favours it: Tehran is waiting out the American electoral calendar. Washington is waiting for economic pain to force a concession.
    2. Neither can convert leverage: Neither party has gained decisive leverage to force a settlement, and neither can end the conflict on its own terms.
    3. Rhetoric against interest: The American position swings between threatening to bomb a mediating State and insisting that a negotiated settlement is possible.
    4. Cost falls on third parties: The deadlock means the rest of the world remains hostage to a conflict that neither side is capable of ending.
    5. Stalemate as an outcome: The likeliest result is not victory for either side but the deadlock itself becoming the new normal.
    6. Diplomacy is not a hedge: For States dependent on the strait, waiting for a settlement is a bet on two governments that have both chosen to wait.

    What does the stalemate demand of India?

    1. Managed so far: India has absorbed the consequences of the closure to date without a visible supply failure.
    2. Three interests exposed: A persisting stalemate puts India’s economic, energy and strategic interests at risk together, not one at a time.
    3. Diplomacy alone is insufficient: Negotiating access with either party does not remove the underlying dependence on a single waterway.
    4. Cut import dependence: India must reduce its overwhelming dependence on imported oil rather than manage each disruption as it arrives.
    5. Build larger reserves: Strategic petroleum reserve capacity has to be expanded well beyond present levels. Oil and Natural Gas Corporation is to reserve half of its 1.75 million tonne Mangaluru facility for strategic storage.
    6. Diversify and substitute: Gas sourcing has already shifted to the United States, Nigeria, Oman and Angola, and investment in alternative energy is the only durable substitute.

    Challenges to India’s energy security in a Hormuz disruption

    1. Single route concentration: A large share of Indian crude and gas passes one 21 nautical mile wide passage with no overland alternative. e.g. Qatari liquefied natural gas supply to India collapsed once the strait shut.
    2. Reserve cover is thin: Indian strategic reserves cover only a few days of national consumption against the 90 day standard used by International Energy Agency members. e.g. phase one caverns at Visakhapatnam, Mangaluru and Padur hold 5.33 million tonnes in total.
    3. Freight and insurance shock: War risk premiums and rerouting raise the landed cost of every cargo even when volumes are secured. e.g. Red Sea diversions around the Cape of Good Hope from 2024 added roughly two weeks to voyages from Europe.
    4. Currency and fiscal transmission: An oil price spike widens the current account deficit and pushes up subsidy and inflation pressure together. e.g. every $10 rise in the crude price is estimated to add close to 0.4 percent of gross domestic product to India’s import bill.
    5. Refinery configuration: Indian refineries are tuned to specific crude grades, so substitution is not simply a question of finding any seller. e.g. sour heavy Gulf grades cannot be replaced one for one by lighter Nigerian or United States crude.
    6. Diaspora and remittance exposure: About nine million Indians work in the Gulf, and a wider war puts both their safety and their transfers at risk. e.g. evacuation operations of the scale of Operation Ajay in 2023.
    7. Shipping and seafarer risk: Indian crews form a large share of global merchant manning and are directly exposed to attacks on commercial vessels. e.g. the drone strike on a merchant vessel in the Arabian Sea in December 2023.

    Conclusion

    The lapse of the 60 day window confirms that the closure of the Strait of Hormuz is no longer a temporary interruption but the working balance of power between two governments that both expect the other to break first. For India the practical consequence is that the exposure is structural and cannot be negotiated away one shipment at a time. Reduced dependence on imported crude, a materially larger strategic reserve and a faster shift to alternative energy are the only responses that survive whichever way the deadlock ends.

    About Global Maritime Chokepoints

    1. Definition: A chokepoint is a narrow shipping channel through which a large share of world trade must pass, so a closure at that point reroutes or halts global flows.
    2. Strait of Hormuz: The single largest oil chokepoint, carrying roughly 20 million barrels a day of petroleum liquids before the war, about a fifth of world consumption.
    3. Strait of Malacca: The busiest passage between the Indian and Pacific Oceans, carrying most of the crude bound for China, Japan and South Korea.
    4. Bab el Mandeb: The Red Sea entrance that connects Suez traffic to the Indian Ocean, about 18 nautical miles wide at its narrowest.
    5. Suez Canal and Panama Canal: Artificial chokepoints whose closure adds thousands of nautical miles to a voyage. e.g. the Ever Given grounding blocked Suez for six days in March 2021.
    6. Turkish Straits and Danish Straits: The Bosphorus and Dardanelles carry Black Sea grain and Russian crude. The Danish Straits carry Baltic exports.
    7. India’s position: India lies alongside the Indian Ocean sea lanes that connect Hormuz and Malacca, which makes it both exposed to and capable of policing these routes.

    Treaty Framework Governing Passage Through International Straits

    1. United Nations Convention on the Law of the Sea, 1982: The framework treaty governing maritime zones, navigation rights and the settlement of maritime disputes.
    2. Article 3: Allows a coastal State a territorial sea of up to 12 nautical miles, which is why the Strait of Hormuz falls within Iranian and Omani waters.
    3. Article 37: Applies the transit passage regime to straits used for international navigation between one part of the high seas and another.
    4. Article 38: Guarantees all ships and aircraft the right of transit passage, which cannot be suspended by the bordering States.
    5. Article 44: Bars States bordering a strait from hampering or suspending transit passage and requires them to publicise navigational hazards.
    6. Article 88 and Article 301: Reserve the high seas for peaceful purposes and bar the threat or use of force against the territorial integrity of any State.
    7. Iran’s position: Iran signed but has not ratified the Convention, and argues that the transit passage regime does not bind a non party.

    Laws and Rules Governing India’s Oil and Gas Security

    1. Petroleum Act, 1934: Regulates the import, transport, storage, production and refining of petroleum and petroleum products.
    2. Oilfields (Regulation and Development) Act, 1948: Governs the grant of exploration and production rights over petroleum and natural gas.
    3. Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976: Defines India’s maritime zones and the rights India exercises in each of them.
    4. Merchant Shipping Act, 1958: Governs registration, safety and manning of Indian flag vessels and the protection of Indian seafarers.
    5. Petroleum and Natural Gas Regulatory Board Act, 2006: Creates the downstream regulator for refining, transport, distribution and marketing, other than production.
    6. Essential Commodities Act, 1955: Allows the Union government to control the production, supply and distribution of petroleum products in a scarcity.
    7. Energy Conservation Act, 2001: Provides the legal base for efficiency standards and, after the 2022 amendment, for a domestic carbon credit trading scheme.

    Back2Basics: Strait of Hormuz

    1. Designation: A maritime chokepoint, tracked in the Places in News list as a strategic waterway rather than a protected area.
    2. Location: Between Iran on the north and Oman’s Musandam peninsula and the United Arab Emirates on the south.
    3. Connects: The Persian Gulf on one side to the Gulf of Oman and the Arabian Sea on the other.
    4. Dimensions: About 21 nautical miles wide at its narrowest, with inbound and outbound shipping lanes of about two miles each separated by a buffer.
    5. Littoral States: Iran, Oman and the United Arab Emirates. Qatar, Bahrain, Kuwait and Iraq have no route to the open ocean except through it.
    6. Islands: Qeshm, Hormuz, Larak, and the disputed Abu Musa and the Greater and Lesser Tunbs, held by Iran and claimed by the United Arab Emirates.
    7. Ecology: The Hara mangrove forests off Qeshm island, dominated by grey mangrove, form a UNESCO biosphere reserve.

    Government Initiatives

    1. Indian Strategic Petroleum Reserves Limited: Builds and operates India’s underground crude caverns. Phase one covers Visakhapatnam, Mangaluru and Padur with a combined 5.33 million tonnes.
    2. Strategic reserve phase two: Approved caverns at Chandikhol in Odisha and a second Padur facility, adding about 6.5 million tonnes of capacity.
    3. Hydrocarbon Exploration and Licensing Policy and Open Acreage Licensing Policy: Replace production sharing with a revenue sharing model and let bidders select blocks on their own initiative to raise domestic output.
    4. National Green Hydrogen Mission: Approved in 2023 to build five million tonnes of annual green hydrogen capacity by 2030 and cut fossil fuel imports.
    5. Ethanol Blended Petrol Programme: Substitutes imported crude with domestic ethanol. The 20 percent blending target was advanced to 2025 and met.
    6. PM Surya Ghar Muft Bijli Yojana: Supports rooftop solar in one crore households, shifting household demand away from fossil generation.
    7. Overseas equity oil: ONGC Videsh Limited holds producing assets abroad so that a share of India’s crude comes from equity rather than the spot market.

    Key Facts about India’s Oil and Gas Dependence

    1. Import dependence: India imports over 85 percent of the crude oil it consumes and about half of its natural gas.
    2. Consumption rank: India is the third largest consumer of crude oil in the world after the United States and China.
    3. Refining capacity: India is the fourth largest refiner globally, with Jamnagar in Gujarat the largest single refining complex in the world.
    4. Main suppliers: Russia, Iraq, Saudi Arabia, the United Arab Emirates and the United States are the largest sources of Indian crude imports.
    5. Gas sources: Qatar has been India’s largest supplier of liquefied natural gas, delivered under long term contracts through Hormuz.
    6. Reserve benchmark: International Energy Agency members hold 90 days of net import cover. India’s strategic reserves cover only a small fraction of that.
    7. Institutional link: India became an Association country of the International Energy Agency in 2017 and has sought full membership.

    Challenges in India’s Energy Security

    1. Import concentration by geography: A single region supplies a majority of Indian crude, so one regional conflict moves the whole import basket. e.g. West Asian suppliers accounted for the bulk of Indian crude before Russian barrels rose after 2022.
    2. Payment and sanctions exposure: Secondary sanctions can strand a supply relationship that is otherwise commercially sound. e.g. Indian refiners halted Iranian crude purchases in 2019 after the United States ended sanction waivers.
    3. Domestic production decline: Output from ageing fields keeps falling even as demand rises, widening the import gap. e.g. Mumbai High output has fallen steadily from its peak levels.
    4. Storage and pipeline gaps: Gas cannot reach demand centres without a completed grid, so imported cargoes are stranded at terminals. e.g. sections of the Urja Ganga pipeline in eastern India took over a decade to commission.
    5. Critical mineral dependence in the transition: A shift to electric mobility replaces oil dependence with lithium, cobalt and rare earth dependence. e.g. India imports nearly all of its lithium and cobalt requirement.
    6. Grid readiness for renewables: Variable solar and wind output needs storage and balancing capacity that does not yet exist at scale. e.g. curtailment of renewable generation in high output states during low demand hours.
    7. Price pass through politics: Retail fuel prices are politically managed, so a crude spike lands on oil marketing company balance sheets rather than consumers. e.g. under recoveries absorbed by public sector oil marketing companies during 2021 and 2022.

    Way Forward

    1. Expand strategic storage: Complete the phase two caverns and move Indian cover toward the 90 day benchmark used by International Energy Agency members.
    2. Commercialise reserve operation: Allow foreign and private participation in cavern filling so storage is built and rotated without full budgetary funding.
    3. Diversify supply geography: Hold standing contracts across West Asia, West Africa, the Americas and Russia so no single waterway carries a majority of volumes.
    4. Accelerate substitution: Scale ethanol blending, compressed biogas, green hydrogen and electric mobility so demand growth is not met by imported crude.
    5. Secure the sea lanes: Sustain Indian naval deployments for merchant escort in the Gulf of Aden and the Arabian Sea, and expand maritime domain awareness sharing.
    6. Build the gas grid: Complete the national gas grid and city gas networks so imported and domestic gas reaches demand centres.
    7. Deepen mineral supply chains: Secure lithium, cobalt and rare earth supply through overseas assets and domestic processing so the energy transition does not create a fresh chokepoint.

    “[2026] Ships from which of the following countries have to cross the Strait of Hormuz to reach out to the Indian Ocean?
    1. Bahrain
    2. Syria
    3. Qatar
    4. Egypt
    (a) 1 and 2
    (b) 1 and 3
    (c) 2 and 3
    (d) 3 and 4

  • At Afghan embassy, Taliban diplomats mark 5th anniversary of victory day

    Why in the News

    The Afghanistan Embassy in New Delhi held a reception on 17 August 2026, marking five years of Taliban rule. Indian officials attended despite India continuing to withhold formal recognition of the Islamic Emirate of Afghanistan.

    The event highlights India’s growing working relationship with the Taliban without formal diplomatic recognition.

    What is a Chargé d’Affaires-led Mission?

    • Chargé d’Affaires: Diplomat heading a mission when no ambassador is accredited.
    • Under the Vienna Convention on Diplomatic Relations, 1961, it ranks below an ambassador.
    • An ambassador presents credentials to the Head of State, while a chargé d’affaires is accredited to the Foreign Ministry.
    • It allows diplomatic engagement without necessarily signalling formal recognition.
    • The Afghan mission in Delhi has operated under this arrangement since November 2025.

    What is the Islamic Emirate of Afghanistan?

    • Formal name used by the Taliban administration since August 2021.
    • India engages with the Taliban as a de facto authority but has not formally recognised it as Afghanistan’s government.

    How Has India-Taliban Engagement Evolved?

    • 2021: India closed its Kabul embassy and evacuated personnel.
    • 2022: India established a technical mission in Kabul.
    • 2025: Afghan Foreign Minister visited India.
    • India subsequently upgraded its Kabul mission to full embassy status.
    • November 2025: Taliban-appointed diplomats took charge of the Afghan Embassy in Delhi under a chargé d’affaires.
    • 2026: Embassy hosted its first public victory anniversary reception in Delhi.

    Why is India Engaging the Taliban?

    • Security: Maintains visibility over terrorist groups and developments affecting India.
    • Connectivity: Chabahar Port provides access to Afghanistan bypassing Pakistan.
    • Development assets: India has invested heavily in projects such as the Salma Dam, Zaranj-Delaram Highway and Afghan Parliament.
    • Regional competition: China, Russia, Iran and Central Asian countries are expanding engagement with Kabul.
    • Trade: Bilateral trade remains around $1 billion.

    “[2013, GS2, 10 marks] The proposed withdrawal of International Security Assistance Force (ISAF) from Afghanistan in 2014 is fraught with major security implications for the countries of the region. Examine in light of the fact that India is faced with a plethora of challenges and needs to safeguard its own strategic interests.”

  • Washington Warns Allies: Choose Between Pax Silica and Beijing’s AI Bloc

    Why in the News

    A draft United States letter warns the 35 signatories of its artificial intelligence (AI) Opportunity Statement that signing up to Beijing’s competing framework will exclude them from the American led Pax Silica coalition. The demand converts a supply chain initiative into a test of exclusive alignment. Kazakhstan, a potential source of critical minerals that has joined both coalitions, is the immediate trigger.

    What is the Pax Silica initiative?

    1. About: Pax Silica was launched by Washington last year to secure supply chains for AI models, semiconductors and critical minerals.
    2. Purpose: It was built for the technology rivalry with Beijing, treating minerals and chips as the inputs that decide who builds the most capable AI.
    3. Membership: About two dozen countries have joined, including close allies Japan, Australia and South Korea.
    4. Legal character: The framework is not binding, so membership carries no treaty obligation.
    5. The new condition: Members that also join Beijing’s rival body face exclusion from the coalition.

    What is the AI Opportunity Statement?

    1. About: A United States statement signed in June by 35 countries that wish to align AI cooperation with Washington.
    2. Coverage: Its signatories include members of the Pax Silica framework and other countries outside it, and the draft warning letter is addressed to this full list.

    What is the World Artificial Intelligence Cooperation Organization?

    1. About: A rival body launched in July by the Chinese President as a challenge to United States influence over the AI sector.
    2. Its offer: It promotes China’s open weight technology, positioning access to models rather than access to chips as the basis of membership.

    What are open weight AI models?

    1. About: Models whose trained parameters are published for download, allowing anyone to run and adapt them on their own hardware.
    2. Why it matters strategically: Adoption does not require a continuing commercial relationship with the developer, so influence spreads without any agreement being signed.

    What does the draft letter actually demand?

    1. A binary choice: Dozens of countries are to be told they must pick sides in the AI race with China.
    2. The penalty: Signing Beijing’s competing framework means exclusion from the United States led coalition.
    3. The stated objective: Washington hopes to starve China of resources in the race to build the most sophisticated AI.
    4. Why that matters: The most capable models are treated as usable for military or economic dominance, which is what makes inputs a security question.
    5. The evidentiary basis: The warning rests on an internal draft and a United States official, not on a published policy.

    Why do critical minerals sit at the centre of the AI race?

    1. Minerals precede chips: Semiconductors, servers and power systems depend on rare earths, gallium, germanium and graphite before any model can be trained.
    2. Refining, not mining, is the chokepoint: China dominates the midstream separation and refining stages even for ore mined elsewhere.
    3. Export controls as leverage: Beijing has used licensing of gallium, germanium, graphite and rare earth magnets as a direct policy instrument.
    4. Why Kazakhstan matters: It is a key potential source of critical minerals, which is why its dual membership set off alarm in Washington.
    5. The self limiting problem: Excluding a supplier country does not create refining capacity anywhere else.

    What do the individual signatories’ positions show about the cost of forcing a choice?

    1. Kazakhstan, the hedger: It is the only country so far known to have joined both initiatives, using its mineral endowment to sell access to both blocs rather than choose.
    2. Japan, the equipment supplier: A Pax Silica member whose firms control critical semiconductor manufacturing equipment, photoresists and wafer materials that no bloc can replace quickly.
    3. South Korea, the memory chip producer: A Pax Silica member whose memory chip makers run large fabrication capacity inside China, so exclusivity carries a direct commercial cost.
    4. Australia, the mining leg: A Pax Silica member with rare earth deposits and a dedicated critical minerals financing facility, but with separation capacity that has historically depended on offshore processing.
    5. China, the rival architecture: Beijing counters chip and minerals leverage with the World Artificial Intelligence Cooperation Organization and freely downloadable models.
    6. United States, the coalition builder: Washington combines export controls on advanced chips with Pax Silica membership, and now with the threat of exclusion.

    Why does the exclusivity demand cut against the United States’ own supply goal?

    1. Suppliers gain from hedging: A mineral rich state earns more by selling access to both coalitions than by picking one.
    2. A framework with no enforcement: Pax Silica is not binding, so exclusion is the only available lever and it is a blunt one.
    3. Open weight models cannot be fenced: Chinese models spread by download, so denying a country coalition membership does not deny it Chinese technology.
    4. Refining dependence persists: The coalition can exclude a supplier and still find that separation and processing run through China.
    5. Retaliation risk: Beijing can curtail exports of critical minerals essential to advanced technology production while Western supply chains are still being built.

    Where does India stand in the AI and critical minerals contest?

    1. Minerals Security Partnership: India joined the Minerals Security Partnership in June 2023, a United States convened grouping to catalyse investment in critical mineral supply chains.
    2. National Critical Mineral Mission: Approved in January 2025 with an outlay of about 16,300 crore rupees, it targets exploration, recovery from tailings and overseas asset acquisition.
    3. IndiaAI Mission: Approved in March 2024 with about 10,371 crore rupees, covering compute capacity, datasets, foundation model support and safe AI.
    4. Summit diplomacy: India chaired the Global Partnership on Artificial Intelligence and hosted its summit in New Delhi in December 2023, and was named the next AI summit host after the Paris AI Action Summit of February 2025.
    5. The strategic autonomy problem: India sits in United States aligned mineral platforms and in BRICS and the Shanghai Cooperation Organisation alongside China, so an exclusivity demand of the Pax Silica kind directly conflicts with its standing position.

    Challenges to Pax Silica

    1. No enforcement mechanism: A framework that is not binding cannot police dual membership. e.g. Kazakhstan has joined both Pax Silica and the Chinese body without penalty so far.
    2. Substitution by the rival supplier: Excluded states can buy the same inputs and models from Beijing. e.g. China’s export licensing of rare earth magnets from April 2025 halted assembly lines at European car plants, demonstrating who controls the flow.
    3. Cost falls on allies first: Export control regimes hit allied firms’ revenues before they hit the target. e.g. Dutch lithography equipment makers lost a large share of their China sales after successive export restrictions.
    4. Midstream capacity cannot be built quickly: Mining new deposits does not solve separation and refining. e.g. Australian rare earth concentrate was long shipped to Malaysia for separation rather than processed at home.
    5. Price volatility deters new investment: Mineral projects need long horizons that commodity cycles destroy. e.g. lithium prices fell sharply from their 2022 peak, stalling announced projects worldwide.
    6. Open weight diffusion defeats membership rules: Model access spreads independently of any coalition. e.g. a Chinese open weight reasoning model released in January 2025 was downloaded and self hosted worldwide within weeks.
    7. Third country resistance to bloc politics: Middle powers resist being made to choose. e.g. several Global South states hold membership of both Western and Chinese digital and minerals platforms simultaneously.

    Conclusion

    The AI contest has moved from controlling exports of chips to controlling membership of coalitions, and the United States is testing whether exclusivity can be enforced on countries that hold the minerals. The instrument is weak, since Pax Silica binds no one, open weight models spread by download, and refining capacity stays with China regardless of who is excluded. Kazakhstan’s dual membership is the first demonstration that suppliers will hedge. For India, an exclusivity demand of this type collides directly with a foreign policy built on membership of competing platforms.

    “[2025] Consider the following statements:
    I. India has joined the Minerals Security Partnership as a member.
    II. India is a resource-rich country in all the 30 critical minerals that it has identified.
    III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals.
    Which of the statements given above are correct?
    (a) I and II only
    (b) II and III only
    (c) I and III only
    (d) I, II and III

  • [17th August 2026] The Hindu OpED: Mecca Pact Reshapes West Asia: Where Does India Stand?

    Why in the News

    A collective defence pact signed in Mecca between Saudi Arabia, Turkiye and Pakistan has altered the security architecture of West Asia. The pact pools Saudi capital, Pakistani military strength and Turkish defence technology, and is aimed at deterring Israel rather than Iran. India built a decade of gains in the region and now has no declared strategy to answer this realignment.

    What did India build in West Asia over the past decade?

    1. 2016, Saudi recognition: Saudi Arabia awarded India’s Prime Minister its highest civilian honour, marking a shift in the political relationship.
    2. 2021, I2U2: The I2U2 agreement was signed, tying India into a grouping with Israel, the United States and the UAE.
    3. 2024, Chabahar: Iran leased Chabahar port to India, giving overland access towards Afghanistan and Central Asia that bypasses Pakistan.
    4. The UAE relationship: India cultivated a special relationship with the UAE built on remittances from Indian expatriate workers, investments by Indian business in the UAE, and UAE strategic investments in India.
    5. Where they stand now: These are gains from the past, and India’s footprint is contracting one country at a time.

    Why is the region’s security order breaking down now?

    1. A war that spread: In the last four months the United States and Israel war with Iran escalated into a regional conflict.
    2. Iran against the Gulf: Iran attacked GCC countries, ending the assumption that the Gulf monarchies sit outside the fighting.
    3. Saudi strikes in Iraq: Saudi Arabia hit Iraqi militias.
    4. Attacks at sea: The Houthis attacked Saudi ships.
    5. Israeli strikes: Israel carried out strikes in multiple countries.
    6. The American umbrella in doubt: Gulf states are rethinking the efficacy of the United States security umbrella and now see a threat from both Iran and Israel.
    7. A schism over method: The Gulf is split between handling that threat through engagement, the UAE approach, and through deterrence, which Saudi Arabia is contemplating.

    How has Pakistan converted the regional crisis into diplomatic capital?

    1. The mediator role: Pakistan’s role as mediator in the United States and Iran conflict is earning it reputational benefits across the region.
    2. The timing: It entered when no one else could bring the United States President and the Iranians to the table.
    3. Who had failed first: Turkiye, Qatar and Egypt had all attempted mediation without success.
    4. The pact as the payoff: The Mecca collective defence pact follows directly from that diplomatic moment.
    5. The Israel risk for India: A future Israel and Pakistan war would draw India in, given the close India Israel partnership.
    6. The Turkiye risk for India: Greater Turkish support for Pakistan in a future India Pakistan conflict cannot be ruled out.

    What do the positions of individual regional states reveal about the new architecture?

    1. Saudi Arabia, deterrence and a new maritime force: Riyadh is moving from engagement to deterrence, supplies the capital leg of the Mecca pact, and is raising a Saudi led maritime force for the Red Sea that India is not part of.
    2. Turkiye, technology as leverage: Ankara contributes defence technology to the pact and runs a deepening military relationship with Pakistan that India has no channel to discuss.
    3. Pakistan, military manpower as currency: Islamabad supplies the military strength the pact rests on, converting an army into diplomatic capital with Gulf financiers.
    4. United Arab Emirates, engagement over deterrence: Abu Dhabi manages the Iran and Israel threat through engagement, and carries mounting differences with Saudi Arabia plus positions against United Nations recognised governments in conflicts as far away as Sudan.
    5. Iran, from partner to belligerent: Tehran leased Chabahar to India in 2024 and has since attacked GCC states, putting India’s connectivity asset inside an active war zone.
    6. Israel, strikes that created the pact: Israeli operations across multiple countries made three regional states conclude they are next, which is the design logic of the Mecca pact.

    Why does India’s current posture carry risk?

    1. The Israel bet: India’s approach rests on confidence in Israel’s victory, drawn from Israel’s proximity to the United States.
    2. The American consensus is shifting: Both Make America Great Again Republicans and Democratic Socialists now question the once unquestioned United States support for Israel.
    3. Israel alone: Whether Israel can prevail without assured American backing is unsettled.
    4. The UAE bet: The second pillar of India’s regional position is the UAE relationship, resting on remittances, elite investment and Emirati investment in India.
    5. UAE exposure: The UAE’s differences with Saudi Arabia and its Sudan positions place that pillar at risk.

    What are the choices before India?

    1. Formal alignment: India can sign military alliances with Israel and the UAE.
    2. The cost of alignment: That would damage what is left of India’s relationships with Iran and Saudi Arabia.
    3. Continued inaction: India can do nothing, which is the current position.
    4. Cost of inaction, seafarers: Indian merchant mariners continue to be killed in the Strait of Hormuz.
    5. Cost of inaction, shipping: More Indian ships sink in the Bab-el-Mandeb.
    6. Reputational cost: A great power in the making appears hobbled in its own immediate maritime neighbourhood.
    7. The third way: India can devise an active regional political strategy instead of choosing between alignment and drift.

    What would an active Indian regional strategy involve?

    1. Renewed engagement with Saudi Arabia: India has no explicit differences with Riyadh, which makes it the cheapest relationship to rebuild.
    2. Arab and Iran trust building: India can work to rebuild trust between Arab states and Iran, beginning with the UAE and Iran relationship.
    3. Jordan’s security: India can offer defensive technologies to Jordan at a time when United States munitions are running low.
    4. Lebanon peacekeeping: India can take a role in the future UN peacekeeping presence in Lebanon, with UNIFIL forecast to end.
    5. A back channel with Turkiye: India can share its red lines on Turkiye’s relationship with Pakistan through a quiet channel.
    6. Red Sea shipping with Egypt: If India cannot join the Saudi led maritime force, it can work with Egypt on a parallel effort to protect India bound shipping from the Suez Canal to Bab-el-Mandeb.
    7. A military presence: India can examine a presence in the Red Sea region, in Somaliland or Socotra.
    8. Exercises with the region: Existing military training exchanges can be scaled into joint drills and exercises with a range of regional states.
    9. A Special Envoy for West Asia: India can appoint one who draws all the threads together, rather than one confined to the Israel and Palestine peace process.

    Challenges to India’s West Asia Strategy

    1. The alliance trap: Any formal military alignment with one camp forecloses the other, since Iran and Saudi Arabia both read Indian alignment as a choice against them. e.g. India’s Chabahar development slowed each time United States sanctions pressure on Iran tightened.
    2. The Turkiye and Pakistan axis: Turkish defence technology transfers to Pakistan directly degrade India’s conventional edge. e.g. Turkish origin Songar armed drones were used against Indian positions during the May 2025 hostilities.
    3. Chokepoint exposure: India’s trade and energy routes converge on two narrow straits it cannot secure alone. e.g. Houthi attacks from late 2023 forced Indian bound shipping to reroute around the Cape of Good Hope, raising freight and insurance costs.
    4. Attacks on Indian crewed shipping: Indian seafarers crew a large share of global merchant vessels and absorb the human cost of regional escalation. e.g. the drone strike on MV Chem Pluto off Porbandar in December 2023.
    5. Evacuation burden: Every escalation converts India’s diaspora presence into a mass evacuation operation. e.g. Operation Kaveri from Sudan in 2023 and Operation Sindhu from Iran and Israel in June 2025.
    6. No standing regional mechanism: India has no dedicated envoy or regional platform to convert bilateral goodwill into collective influence. e.g. the piece’s own recommendation for a Special Envoy for West Asia has no existing counterpart in the Indian system.
    7. Exclusion from new regional security structures: New arrangements are being built without Indian participation. e.g. the Saudi led Red Sea maritime force, which India is not part of.

    Conclusion

    West Asia’s security architecture is being rebuilt around a Saudi Arabia, Turkiye and Pakistan pact designed to deter Israel, and India has no strategy that matches the scale of that change. Formal alignment with Israel and the UAE costs India Iran and Saudi Arabia, and inaction costs it seafarers, ships and standing. The workable route is an active regional political strategy built on renewed engagement with Riyadh, trust building between the Arab states and Iran, and a dedicated envoy. India’s capacity to shape the region survives, its window does not.

    West Asia in India’s Foreign Policy

    1. About: West Asia covers the Gulf monarchies, Iran, Iraq, Israel, Turkiye and the Levant, treated in Indian policy as an extended neighbourhood rather than a distant theatre.
    2. Policy label: India’s approach shifted from Look West to Link West, moving beyond oil and labour transactions towards defence, technology and investment partnerships.
    3. Energy: West Asia remains a principal source of India’s crude oil imports, and Qatar is India’s largest supplier of liquefied natural gas.
    4. Diaspora: About 9 million Indians live and work in the Gulf, the largest concentration of the Indian diaspora anywhere.
    5. Remittances: India is the world’s largest recipient of remittances, receiving over 100 billion dollars annually, with the Gulf a major contributor.
    6. Trade: The UAE is among India’s top three trading partners, and the India UAE Comprehensive Economic Partnership Agreement took effect in May 2022.
    7. Connectivity: The India Middle East Europe Economic Corridor (IMEC) was announced on the margins of the G20 New Delhi Summit in September 2023.

    Back2Basics: Gulf Cooperation Council

    1. Formation: Established in 1981 at Abu Dhabi.
    2. Headquarters: Riyadh, Saudi Arabia.
    3. Members: Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman.
    4. Mandate: Coordination and integration among members in economic, defence, security and cultural affairs.
    5. Military arm: The Peninsula Shield Force, a joint military force raised in 1984.
    6. Economic instrument: A unified economic agreement and a customs union among the six members.
    7. India link: India is not a member, and engages the bloc through bilateral strategic partnerships and an India GCC ministerial mechanism.

    Government Initiatives for India’s West Asia Engagement

    1. Link West Policy: Reframes the Gulf and West Asia as a zone of strategic partnership rather than an energy and labour market alone.
    2. I2U2: Joint investment platform with Israel, the United States and the UAE across food security, clean energy and health.
    3. India Middle East Europe Economic Corridor: Rail and shipping corridor linking India to Europe through the Gulf, announced in September 2023.
    4. India UAE Comprehensive Economic Partnership Agreement, 2022: India’s first Gulf trade agreement, cutting tariffs on the bulk of traded goods.
    5. Chabahar long term contract, 2024: A ten year agreement for operating the Shahid Beheshti terminal, giving India a port outside the Strait of Hormuz.
    6. eMigrate portal and Pravasi Bharatiya Bima Yojana: Registration and mandatory insurance cover for Indian workers emigrating to Gulf destinations.
    7. Evacuation operations: Operation Sindhu, Operation Ajay and Operation Kaveri, evacuating Indians from Iran and Israel, Israel and Sudan respectively.
    8. Operation Sankalp: Indian Navy deployment in the Gulf of Oman and the Persian Gulf to escort Indian flagged merchant shipping.

    Key Facts about India and West Asia

    1. The Strait of Hormuz carries roughly a fifth of global oil consumption and has no practical bypass for most Gulf exporters.
    2. The Bab-el-Mandeb is the southern gate of the Red Sea and the compulsory approach to the Suez Canal.
    3. Chabahar is Iran’s only oceanic port, on the Gulf of Oman, and lies outside the Strait of Hormuz.
    4. India’s overseas military logistics access includes Duqm in Oman, agreed in 2018.
    5. I2U2 was agreed in 2021 and held its first leaders summit in July 2022.
    6. India is not a member of the Organisation of Islamic Cooperation, and was invited as guest of honour to its foreign ministers meeting at Abu Dhabi in 2019.
    7. The GCC has six members; the wider Arab League has 22.

    “[2025, GS2, 15 marks] “Energy security constitutes the dominant kingpin of India’s foreign policy, and is linked with India’s overarching influence in Middle Eastern countries.” How would you integrate energy security with India’s foreign policy trajectories in the coming years?”

  • India’s Next Giant Leap: Building a Base on the Moon

    Why in the News

    NASA invited ISRO at the ninth India United States Civil Space Joint Working Group meeting to join its Moon Base programme under the Artemis Accords, targeting a facility near the lunar south pole around 2030. A rival International Lunar Research Station led by China and Russia targets the same region by 2035. The tension is between the access a partnership offers and the interoperability standards that would extend terrestrial blocs onto the Moon.

    What is the Moon Base programme?

    1. About: Moon Base is the NASA led programme to establish a permanent crewed facility near the lunar south pole, operating under the Artemis Accords framework.
    2. Why the south pole: The region offers longer sunlight for power generation and permanently shadowed craters holding water ice.
    3. Target date: The facility is targeted for around 2030.
    4. Contracting model: Delivery is contracted to commercial providers rather than built entirely in house.

    What are the Artemis Accords?

    1. About: The Artemis Accords are a set of non binding principles for civil space exploration, covering transparency, interoperability, emergency assistance, registration of objects, release of scientific data, preservation of heritage sites, deconfliction of activities and safe disposal of debris.
    2. Legal basis: They build on the Outer Space Treaty, 1967 rather than replacing it.
    3. India’s position: India signed the Accords in 2023.

    What is the International Lunar Research Station?

    1. About: The International Lunar Research Station (ILRS) is the China and Russia led lunar base programme announced in 2021.
    2. Location and timeline: It targets the lunar south pole, with a stated completion horizon of 2035.
    3. Participation: It counts 17 countries and organisations and more than 50 institutions.

    What contracts define the NASA programme’s shape?

    1. Terrain vehicles: Astrolab holds a $219 million contract and Lunar Outpost a $220 million contract for lunar terrain vehicles.
    2. Delivery services: Blue Origin holds $188 million in delivery task orders.
    3. Robotic missions: Astrobotic, Firefly Aerospace and Intuitive Machines together hold $600 million for four robotic missions.
    4. Programme restructuring: Under the current NASA leadership, Artemis III becomes a crewed Earth orbit test flight in 2027 and Artemis IV the first landing in 2028.
    5. Policy driver: The restructuring responds to the December 2025 United States space policy on cislunar space.

    Where does the partnership become a constraint?

    1. Exclusion clause: NASA excluded foreign entities with bilateral ties to China from a payload solicitation.
    2. Budget framing: The NASA financial year 2027 budget request frames Moon Base as establishing United States superiority on the Moon.
    3. Consequence for India: Deep integration could let United States objections constrain India’s independent cooperation choices.
    4. Foreclosure risk: Accepting exclusionary terms now would foreclose future cooperation with the ILRS.

    Why do interoperability standards decide the outcome?

    1. What standards fix: Docking interfaces, power connections, communication protocols and navigation references determine which hardware can work with which.
    2. Bloc formation mechanism: A closed standard makes participation conditional on political alignment, which transfers terrestrial blocs into cislunar space.
    3. Open standards alternative: Open international standards preserve sovereign control of hardware and software while permitting cooperation.
    4. India’s strategic interest: Strategic autonomy on the Moon depends on standards being open rather than on which partnership India joins.

    Challenges to India’s lunar ambitions

    1. Human spaceflight readiness: India has not yet flown a crewed mission. e.g. the Gaganyaan programme still in its uncrewed test flight phase.
    2. Heavy lift constraint: Lunar cargo delivery requires launch capacity beyond the current fleet. e.g. GSAT-N2 flown abroad because it exceeded LVM-3 capacity.
    3. Deep space communication: Sustained lunar operations need dedicated deep space network capacity. e.g. the Indian Deep Space Network at Byalalu operating a limited antenna set.
    4. Dual bloc pressure: Partnering with one programme invites exclusion from the other. e.g. the NASA payload solicitation barring entities with bilateral ties to China.
    5. Funding scale: India’s space budget is a fraction of the contracted value of individual NASA lunar task orders. e.g. $600 million contracted for four robotic missions against India’s annual space budget.
    6. Resource law vacuum: The Outer Space Treaty bars national appropriation but does not settle resource extraction rights. e.g. the contested legal status of the Artemis Accords safety zones.

    Conclusion

    The decisive question for India is not which lunar programme to join but whether interoperability standards stay open, since standards rather than treaties will determine who can operate with whom on the Moon. Joining Moon Base delivers access, and it carries the risk of inheriting an exclusion clause aimed at a third country. The next milestone is whether India secures an explicit open standards position in any agreement arising from the Joint Working Group.

    Back2Basics: India’s Decision to Sign the Artemis Accords

    1. India signed the Artemis Accords in June 2023, becoming among the later major spacefaring signatories.
    2. The Accords are a United States led set of non binding principles built on the Outer Space Treaty, 1967.
    3. Core commitments cover peaceful purposes, transparency, interoperability, emergency assistance, registration of space objects, release of scientific data, protection of heritage, deconfliction through safety zones and orbital debris mitigation.
    4. Signing enabled the joint NASA ISRO Synthetic Aperture Radar (NISAR) mission and the training of Indian astronaut candidates in the United States.
    5. The Accords do not create binding treaty obligations and operate alongside, not in place of, the Outer Space Treaty.

    Constitutional and Treaty Framework Governing Outer Space

    1. Outer Space Treaty, 1967: Establishes outer space as the province of all mankind and bars national appropriation by claim of sovereignty.
    2. Rescue Agreement, 1968: Requires assistance to and return of astronauts and space objects.
    3. Liability Convention, 1972: Makes a launching state absolutely liable for damage caused by its space objects on the surface of the Earth.
    4. Registration Convention, 1975: Requires states to register objects launched into outer space with the United Nations.
    5. Moon Agreement, 1979: Declares the Moon and its resources the common heritage of mankind, and has not been ratified by any major spacefaring state.

    Way Forward

    1. Negotiate open standards explicitly: Make interoperability on open international standards a condition of participation rather than an assumption.
    2. Preserve sovereign control of hardware: Retain control over Indian built systems and their software in any joint architecture.
    3. Avoid exclusivity clauses: Decline terms conditioning participation on the exclusion of third country cooperation.
    4. Build deep space capacity: Expand the deep space network and advance the Next Generation Launch Vehicle to support independent lunar operations.
    5. Use multilateral forums: Press the lunar resource question at the United Nations Committee on the Peaceful Uses of Outer Space, where a universal rule can be built rather than a bloc rule.

    “[2023, GS3, 15 marks] What is the main task of India’s third moon mission which could not be achieved in its earlier mission? List the countries that have achieved this task. Introduce the subsystems in the spacecraft launched and explain the role of the Virtual Launch Control Centre at the Vikram Sarabhai Space Centre which contributed to the successful launch from Srihari Kota.”

  • Power of the name: Why ‘Mecca’ matters in new defence pact

    Why in the News

    The Mecca Joint Defence Agreement, signed on 7 August 2026 by Saudi Arabia, Pakistan and Turkiye, takes its name from Islam’s holiest city. The naming choice is read as a deliberate framing device that lets each signatory claim a different benefit from the same text. The tension is between the civilisational legitimacy the name projects and the narrow, technical liabilities the agreement’s legal text actually creates.

    What is the Mecca Joint Defence Agreement?

    1. About: The Mecca Joint Defence Agreement is a trilateral defence arrangement between Saudi Arabia, Pakistan and Turkiye, signed on 7 August 2026.
    2. Naming: The agreement is named for the city of Mecca, which carries religious authority across the Muslim world.
    3. Legal character: The operative text keeps mutual obligations technical and limited, rather than creating an automatic collective defence commitment.
    4. Point of interest: The gap between the symbolic name and the limited legal commitment is the substance of the analysis.

    Why does the name carry strategic work?

    1. Saudi objective: The name lets Riyadh reassert leadership of the Muslim world by anchoring a security arrangement in custodianship of the holy cities.
    2. Pakistani objective: Islamabad can present the arrangement domestically as a holy alliance, converting a defence pact into religious legitimacy.
    3. Turkish objective: Ankara can frame defence exports as civilisational solidarity rather than as commerce.
    4. Shared function: One name allows three different domestic narratives without changing a word of the text.

    What is the comparable precedent in agreement naming?

    1. Abraham Accords, 2020: The normalisation agreements between Israel and several Arab states were named for the shared patriarch of Judaism, Christianity and Islam.
    2. Stated rationale: The naming was explained at the time as invoking a common religious ancestry to frame a political settlement.
    3. Effect achieved: The name softened a security and recognition arrangement into a civilisational reconciliation.
    4. Parallel drawn: The Mecca naming performs the same function for a defence arrangement, transferring the technique from normalisation to security.

    What does the arrangement mean for India?

    1. Pakistan’s external depth: A formal defence link with Saudi Arabia and Turkiye enlarges Pakistan’s strategic and financial backing.
    2. Gulf relationship: India’s ties with Saudi Arabia rest on energy supply, remittances from a large expatriate workforce and defence cooperation, which the arrangement does not displace.
    3. Turkiye divergence: Ankara’s position on Kashmir at multilateral forums remains the sharpest point of difference with India.
    4. Limits of the pact: The technical character of the obligations restricts how far Pakistan can invoke it in a bilateral contingency.

    Where does the analysis turn against its own framing?

    1. Symbolism versus obligation: A powerful name does not create an automatic defence commitment, and the text deliberately avoids one.
    2. Divergent interests: Saudi Arabia’s normalisation track with Israel and Turkiye’s position on Gaza are not aligned, which limits joint action.
    3. Reading risk: Treating the name as evidence of a bloc overstates cohesion the signatories have not committed to.
    4. The real signal: The arrangement marks a shift toward regional security architectures built outside United States security guarantees.

    Challenges to reading the pact as a bloc

    1. Absence of an automatic trigger: The text creates consultation obligations rather than an attack on one is an attack on all clause. e.g. the contrast with Article 5 of the North Atlantic Treaty.
    2. Divergent Israel policy: Signatories differ on normalisation with Israel. e.g. Saudi Arabia’s suspended normalisation track against Turkiye’s public position on Gaza.
    3. Financing dependence: Pakistan’s participation rests on financial support rather than reciprocal capability. e.g. repeated Saudi deposits with the State Bank of Pakistan during balance of payments stress.
    4. Competing regional groupings: Overlapping arrangements dilute exclusivity. e.g. the Gulf Cooperation Council and the Organisation of Islamic Cooperation covering the same members with different mandates.
    5. Defence supply asymmetry: Turkish defence exports create a supplier and buyer relationship, not an alliance of equals. e.g. Turkish drone sales across West Asia and North Africa.
    6. Iran factor: Any Sunni framed security architecture invites an Iranian counter alignment. e.g. the Iran Saudi normalisation of 2023 that the pact’s framing strains.

    Conclusion

    The naming of the agreement is the substantive act, since it manufactures a civilisational legitimacy that the legal text neither requires nor delivers. For India, the operative question is not the pact’s symbolism but whether Saudi Arabia’s energy and remittance relationship with India changes, which it has not. The next milestone is whether the signatories convert consultation obligations into a standing joint command or joint exercise schedule.

    Back2Basics: India and Saudi Arabia

    1. Diplomatic relations were established in 1947, with the relationship upgraded through the Delhi Declaration of 2006 and the Riyadh Declaration of 2010.
    2. The Strategic Partnership Council was established in 2019, with two ministerial committees covering political and security cooperation, and economy and investments.
    3. Saudi Arabia is among India’s top crude oil suppliers and hosts one of the largest Indian expatriate populations.
    4. India and Saudi Arabia conduct the Al Mohed Al Hindi naval exercise.
    5. Saudi Arabia is a partner in the India Middle East Europe Economic Corridor announced at the G20 summit in New Delhi in 2023.

    Way Forward

    1. Deepen the Gulf economic anchor: Convert the Strategic Partnership Council commitments into dated investment and energy supply agreements.
    2. Separate the Turkiye and Saudi tracks: Treat Ankara’s Kashmir position as a bilateral issue rather than allowing it to define the wider Gulf relationship.
    3. Institutionalise defence exchanges: Expand joint exercises and defence industrial cooperation with Gulf partners to keep the relationship independent of third party arrangements.
    4. Secure the energy corridor: Reduce single chokepoint exposure given that a large share of imports transit the Strait of Hormuz.
    5. Engage the Organisation of Islamic Cooperation constructively: Sustain outreach so multilateral resolutions do not consolidate against India by default.

    “[2023, GS2, 15 marks] ‘The expansion and strengthening of NATO and a stronger US-Europe strategic partnership works well in India.’ What is your opinion about this statement? Give reasons and examples to support your answer.”

  • How US is building a case for ‘transhipment crackdown’ and why India may be at risk

    Why in the News

    A United States government report titled The Great Transhipment Scam: Global Evasion and Economic Costs names over 40 countries in a claimed shadow transhipment network and places India, Mexico, Canada and the European Union in Tier 1. The classification arrives while an India United States trade deal is under negotiation. The tension is between a tariff enforcement category built to catch origin fraud and a manufacturing model that legitimately imports Chinese components for domestic value addition.

    What is transhipment in trade enforcement?

    1. About: Transhipment in this context means routing goods of one origin through a third country so they enter the destination market under the third country’s tariff treatment.
    2. Why it matters: Origin determines the tariff rate, so mislabelling origin converts a high tariff good into a low tariff one.
    3. The legitimate case: Goods that undergo substantial transformation in the third country acquire that country’s origin lawfully under rules of origin.
    4. The disputed boundary: The report’s methodology does not separate origin fraud from genuine domestic value addition, which is where India’s exposure arises.

    What does the report actually claim?

    1. Tier 1 classification: India, Mexico, Canada and the European Union are placed in the highest risk tier.
    2. Volume estimate: About $67 billion of United States bound goods are estimated to be transhipped from China through top hubs, named as Mexico, India and Vietnam.
    3. Revenue estimate: The estimated tariff revenue loss is about $28 billion.
    4. Cluster naming: The report labels the Pune, Gujarat and Chennai industrial corridor as a cluster of concern.
    5. Institutional source: The estimates come from the Office of Trade and Economic Analysis within the United States Commerce Department.

    Why is India exposed despite genuine manufacturing?

    1. Component dependence: Indian electronics assembly imports a large share of components from China, so import content is high even where assembly is real.
    2. Measurement problem: A high Chinese import share can be read either as origin fraud or as an early stage manufacturing base, and the report does not distinguish the two.
    3. Scheme linkage: Production Linked Incentive driven assembly expanded exports faster than the domestic component base grew, which widens the gap the report treats as suspicious.
    4. Corridor concentration: Export clusters concentrate assembly activity geographically, which makes them visible in trade data as hubs.

    What enforcement instruments follow from such a report?

    1. Section 301 action: The United States Trade Representative can open an investigation and impose tariffs on a trading partner’s practices under Section 301 of the Trade Act, 1974.
    2. Trade deal clause: A transhipment clause can be written into the pending India United States trade agreement, binding India to origin verification obligations.
    3. Legal context: Reciprocal tariffs imposed earlier were struck down by the United States Supreme Court, which pushes enforcement toward statutory routes that survive judicial review.
    4. Secondary tariff route: Separate legislation permitting tariffs of up to 100 per cent on major buyers of Russian oil provides an additional pressure point.

    What is the counter argument to the report’s framing?

    1. Value addition versus routing: A country that imports components, assembles and exports is performing manufacturing, not evasion, when the transformation meets the origin threshold.
    2. Rules of origin already exist: Preferential and non preferential rules of origin provide a legal test for substantial transformation, so a new category adds pressure rather than clarity.
    3. Negotiating leverage: Naming a partner in a public report ahead of a trade negotiation functions as leverage over the terms of that negotiation.
    4. Bilateral drift: The instrument bypasses the multilateral dispute settlement route, which has been non functional since the Appellate Body lost quorum.

    Challenges to India’s export position

    1. Origin verification capacity: Certifying substantial transformation at scale requires customs documentation India’s exporters are not uniformly equipped for. e.g. disputes over certificates of origin under the India ASEAN agreement.
    2. Component import dependence: Domestic value addition in electronics remains low even as export volumes rise. e.g. mobile handset exports growing faster than domestic component sourcing.
    3. Dispute settlement vacuum: The World Trade Organization Appellate Body has been non functional since 2019, removing the appeal route against unilateral measures. e.g. appeals filed into the void by multiple members since then.
    4. Tariff exposure concentration: The United States is India’s largest single export market, so a unilateral measure has outsized effect. e.g. the disruption to Indian shrimp and steel exports during earlier tariff rounds.
    5. Rules of origin complexity: Each trade agreement carries a different origin threshold, raising compliance cost for the same exporter. e.g. differing value addition thresholds under India’s agreements with Japan and ASEAN.
    6. Retaliation limits: India’s counter tariff capacity is small relative to the market it would be retaliating against. e.g. the limited effect of India’s 2019 retaliatory tariffs on United States agricultural goods.

    Conclusion

    The report converts a measurement ambiguity, high Chinese import content in Indian assembly, into an enforcement category, and that conversion is what puts India at risk rather than any finding of fraud. The remedy runs through demonstrable domestic value addition, not through contesting the label. The next milestone is whether a transhipment clause appears in the text of the India United States trade agreement.

    Back2Basics: Rules of Origin

    1. Rules of origin are the criteria used to determine the country of origin of a product for the purpose of applying tariffs and trade measures.
    2. Non preferential rules of origin apply for most favoured nation tariffs, anti dumping duties and trade statistics.
    3. Preferential rules of origin apply under free trade agreements and decide whether a good qualifies for concessional duty.
    4. Substantial transformation is the core test, applied through a change in tariff classification, a regional value content threshold, or a specified processing operation.
    5. India tightened enforcement through the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, which placed the burden of proof on the importer.

    Way Forward

    1. Raise domestic value addition thresholds: Tie incentive disbursement to verified local content rather than to export value alone.
    2. Build an origin audit trail: Create a digital component provenance record for export clusters so transformation can be evidenced rather than asserted.
    3. Negotiate the clause narrowly: Confine any transhipment clause in the trade agreement to documented origin fraud, not to import content share.
    4. Deepen component manufacturing: Extend incentives to sub assemblies and passive components, since the exposure originates in the missing component layer.
    5. Diversify export destinations: Reduce single market concentration through the concluded agreements with the United Kingdom and the European Free Trade Association bloc.

    Matching Previous Year Question

    “[2025, GS3, 10 marks] What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met?”

  • Strikes on Black Sea and Sea of Azov grain terminals open a second food-price chokepoint

    Why in the News?

    A Ukrainian drone strike on 11 August destroyed two major grain export terminals at Russia’s Novorossiysk port, removing 15.6 million tonnes (mt) of annual export capacity. This opens a second global trade chokepoint alongside the Strait of Hormuz, shifting the food security crisis from a production problem to a shipping/transit blockade.

    Key Geography & Infrastructure

    • Black Sea & Sea of Azov Grain Corridor: Primary maritime route for Russian and Ukrainian agricultural exports via the Kerch Strait and Turkish Straits.
    • Novorossiysk: Major Russian Black Sea port handling bulk grain shipments.
    • Kerch Strait: The sole, narrow maritime outlet connecting the Sea of Azov to the Black Sea (a classic single point of failure).
    • Greater Odesa Port Complex: Ukraine’s main shipping hub (Odesa, Chornomorsk, Pivdennyi), handling ~90% of its agricultural exports.
    • Izmail: Ukraine’s primary Danube River port, serving as an alternative inland waterway route.

    Regional Dependence & Export Weight

    • Russian Routing: Over 80% of Russian grain exports move through Sea of Azov and Black Sea ports.
    • Ukrainian Routing: The Greater Odesa complex handles about 90% of Ukraine’s agricultural exports.
    • Global Wheat Share: Russia and Ukraine combined account for 27.4% of global wheat exports.
    • Global Sunflower Oil Share: Russia and Ukraine combined supply 61.5% of global sunflower oil shipments, the highest concentration of any commodity.
    • Other Staples: Together they control 15.8% of global barley and 12.5% of global corn shipments.

    Causes of the Global Price Shock

    1. Shipping Bottleneck, Not Output Deficit: Granaries are full in Russia and Ukraine, but cross-border strikes have created severe risk, stopping safe physical transport.
    2. Soaring Insurance Premiums: War risk cover on hulls and cargo acts as a hidden tariff, driving up freight costs and pricing out smaller buyers.
    3. Compounding EU Crop Yield Reductions (USDA Data):
      • Wheat: Projected to drop 7.5% (down to 134.2 mt).
      • Corn: Expected to drop to 50.2 mt (a nearly two-decade low).
      • Cause: Record summer heatwaves and prolonged drought cut yields across Europe.
    4. Global Repricing: CBOT wheat and corn futures rose 4–5% following the strikes. Major alternative exporters (US, Canada, Australia) saw prices surge simultaneously.

    Impact on India & Domestic Policy Measures

    Key Exposures

    • Edible Oil Risk: India is the world’s largest vegetable oil importer and heavily relies on Black Sea sunflower oil.
    • Dual Chokepoint Strain: Simultaneous disruptions in the Strait of Hormuz (energy/fertilizers) and Black Sea/Kerch Strait (food/edible oils).

    Statutory & Policy Framework

    • Essential Commodities Act, 1955: Regulates production, stock limits, and distribution of foodstuffs and edible oils.
    • National Food Security Act (NFSA), 2013: Guarantees subsidized foodgrains to ~two-thirds of India’s population.
    • Foreign Trade (D&R) Act, 1992: Legal framework for export bans, quotas, and Minimum Export Prices (MEP).
    • Customs Tariff Act, 1975: Regulates import duty structures on crude and refined edible oils.
    • Key Interventions: Open Market Sale Scheme (OMSS), Price Stabilisation Fund (PSF), Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), and the National Mission on Edible Oils – Oil Palm (NMEO-OP).

    Key Institutional Concepts

    • FAO Food Price Index: A monthly index tracking international market prices of five commodity groups (Cereals, Vegetable Oils, Dairy, Meat, Sugar), weighted by export shares. Hosted by the Food and Agriculture Organization (HQ: Rome, established 1945).
    • Chicago Board of Trade (CBOT): Premier futures exchange establishing global benchmark prices for wheat, corn, and soybeans.
    • USDA WASDE Report: World Agricultural Supply and Demand Estimates; the primary global benchmark for crop yields and trade shares.
    • Maritime Chokepoint: A narrow, strategic passage (e.g., Turkish Straits, Kerch Strait, Strait of Hormuz, Bab el-Mandeb) where high volumes of global trade pass, creating high geographical vulnerability.

    “[2024, GS3, 15 marks] Elucidate the importance of buffer stocks for stabilizing agricultural prices in India. What are the challenges associated with the storage of buffer stock? Discuss.”

    [2014] Turkey is located between

    [A] Black Sea and Caspian Sea

    [B] Black Sea and Mediterranean Sea

    [C] Gulf of Suez and Mediterranean Sea

    [D] Gulf of Aqaba and Dead Sea

  • Strait of Hormuz transit collapses to two vessels a day as the naval blockade hardens

    Why in the News

    Transit through the Strait of Hormuz fell to two vessels on Friday after two more ships were attacked in the waterway, against more than 130 crossings a day before the war began in February. The near standstill has turned Iran’s ability to close the strait into the decisive bargaining instrument of the war, and has pushed the United States to place cheaper fuel above nuclear denial as its first stated war aim.

    What is the Strait of Hormuz?

    1. Location: The strait connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, with Iran on the northern shore and Oman’s Musandam peninsula and the United Arab Emirates on the southern shore.
    2. Dimensions: It narrows to about 21 nautical miles, with inbound and outbound traffic separated into lanes about two nautical miles wide each.
    3. Volume carried: About a fifth of global petroleum liquids consumption passes through it, along with a large share of the world’s seaborne liquefied natural gas.
    4. Why it cannot be bypassed: Gulf producers hold limited pipeline capacity that avoids the strait, so most Gulf crude has no alternative route to the open ocean.
    5. Legal position of the lanes: The shipping lanes lie inside the territorial seas of Iran and Oman, so passage rests on the transit passage regime rather than on high seas freedom of navigation.

    What is a maritime chokepoint?

    1. About: A chokepoint is a narrow channel on a high volume shipping route where traffic must converge and cannot be economically rerouted.
    2. Why it matters: Closure at a chokepoint raises freight and insurance costs across an entire trade, because the alternative is a far longer voyage or no voyage at all.

    What is a naval blockade?

    1. About: A naval blockade is the use of warships to prevent vessels from entering or leaving an adversary’s ports or coastline.
    2. Its object here: The United States blockade is aimed at stopping Iran from selling oil and at inflicting economic damage rather than at seizing territory.

    Who is the Abu Dhabi National Oil Company (ADNOC)?

    1. About: ADNOC is the state owned oil and gas company of the United Arab Emirates and one of the largest producers in the Gulf.
    2. Its role in the news: Two vessels affiliated to ADNOC were attacked while transiting the strait, and the UAE government blamed Iran for the attack.

    What is going dark on the Automatic Identification System?

    1. About: Merchant ships broadcast their identity and position through a transponder, and switching it off removes them from public tracking.
    2. Effect on the count: Vessel counts drawn from tracking data understate real traffic, because ships moving with transponders off are not recorded.

    How far has traffic through the strait actually fallen?

    1. Friday count: Two vessels passed through the waterway, a grain ship entering Iranian waters and an empty dry bulk ship moving in the opposite direction.
    2. A third movement: A separate empty liquefied petroleum products tanker was sailing into the Gulf through the strait on the same day.
    3. No crude at all: No crude oil shipments were visible on Friday.
    4. Preceding days: Nine vessels passed through on Thursday, up from five on Wednesday.
    5. Benchmark for the month: The August average stands at 12 vessels a day.
    6. Pre war benchmark: More than 130 ships traversed the strait daily before the war launched by the United States and Israel on Iran in February.
    7. Measurement caveat: Some ships may pass undetected with their transponders switched off, so the recorded figures are a floor rather than a full count.

    Why is control of the strait Iran’s main leverage?

    1. Analyst assessment: The principal Middle East analyst at a risk intelligence firm assessed that Iran’s ability to restrict shipping through the strait is its main source of leverage in negotiations, alongside the threat to regional energy infrastructure.
    2. A permission regime at sea: Iran has resumed attacks on ships it accuses of trying to transit the strait without its permission.
    3. Talks stalled: A senior Iranian source stated on Wednesday that there had been no progress in talks to build on the June agreement to end the war.
    4. Collapse of the ceasefire: The ceasefire renewed under the June deal has broken down, which preceded the resumption of attacks on shipping.
    5. Conditions for reopening: Iran has said it will not allow the waterway to reopen until economic sanctions are removed and frozen Iranian assets are released.
    6. Legislative backing: An Iranian parliamentary committee approved a plan for the strait on Thursday that bans the transit of United States, Israeli and other hostile countries’ assets and equipment.
    7. Attack on Emirati vessels: ADNOC said two of its vessels were attacked while transiting the strait on Thursday evening, and Iran made no immediate comment on the Emirati accusation.

    How has the closure reordered United States war aims?

    1. Stated reversal of priorities: The Vice President stated that goal number one is to keep oil and gas cheap for Americans and that goal number two is to ensure Iran never gets a nuclear weapon.
    2. The original justification: Preventing Iran from obtaining a nuclear weapon had been the consistently stated main reason for the war.
    3. Domestic pressure: The war is unpopular, the President’s approval rating is falling and midterm elections are due in November.
    4. Party calculation: Republicans fear that the war and the gasoline prices it has driven up will cost them control of Congress.
    5. Military constraint: The United States military burned through stockpiles of costly high technology missiles and is running low, which limits the option of resuming large scale attacks.
    6. Blockade endurance: The Defence Secretary stated that the navy can maintain the blockade indefinitely by rotating ships in and out of the region.
    7. Negotiating posture: The President described the approach as low keying it and only semi negotiating, days after saying an agreement to reopen the strait was imminent.
    8. Economic track: The Treasury Secretary announced measures of economic isolation without precedent, with further announcements expected next week.

    What do the positions of the other parties show about the cost of the closure?

    1. United Arab Emirates: Its state oil company had two vessels attacked in the strait and the government publicly blamed Iran, which shows that Gulf producers outside the war are absorbing its shipping costs.
    2. Iran: Its parliamentary committee converted the closure into a formal transit ban on the assets and equipment of hostile states, which shows the closure is now settled policy rather than episodic reprisal.
    3. United States: It has moved from strikes to a naval blockade of Iranian ports and a bar on Iranian oil sales, which shows the war has become an economic siege rather than a military campaign.
    4. Israel: It launched the war jointly with the United States in February and is named in Iran’s transit ban, which shows the strait is being used to impose costs directly on the belligerents.
    5. Limits of the evidence: These are the only national positions the reporting supplies, so the effect on Asian importers is documented through prices rather than through stated country positions.

    How exposed is India to a prolonged closure of the strait?

    1. Crude dependence: India imports over 85 percent of the crude oil it consumes and is the third largest crude importer in the world.
    2. Route concentration: Iraq, Saudi Arabia, the United Arab Emirates and Kuwait are among India’s largest suppliers, and cargoes from all four leave the Gulf through Hormuz.
    3. Gas contracts: Qatar supplies close to half of India’s liquefied natural gas under long term contracts, and every one of those cargoes transits the strait.
    4. Fertiliser inputs: Urea, ammonia and phosphatic raw material contracted from Oman, Saudi Arabia and Qatar move on the same route, which links the strait directly to the fertiliser subsidy bill.
    5. Seafarers: Indians form a large share of the global seafaring workforce and crew a substantial part of Gulf trade, so attacks on merchant shipping place Indian crews directly at risk.
    6. Price transmission: A sustained rise in crude prices widens the current account deficit, raises the oil import bill and feeds into domestic fuel and freight costs.
    7. Insurance and freight: War risk premiums on Gulf voyages rise sharply during a closure, which adds a cost to every cargo that does move.
    8. Remittances and diaspora: About nine million Indians live and work in the Gulf, so a prolonged war in the region carries an employment and remittance risk alongside the energy risk.

    Challenges to keeping the Strait of Hormuz open

    1. Narrow lanes inside territorial waters: The shipping lanes run through Iranian and Omani territorial seas, which lets a littoral state interfere with passage at short notice. e.g. Iranian forces seized the container ship MSC Aries near the strait in April 2024.
    2. Mines and fast attack craft: Sea mines and small armed boats can close a channel at very low cost against far more expensive warships. e.g. the mining of the frigate USS Samuel B. Roberts in 1988 triggered Operation Praying Mantis.
    3. Limited bypass pipeline capacity: Existing pipelines that avoid the strait can carry only a fraction of Gulf export volumes. e.g. Saudi Arabia’s East West pipeline to Yanbu and the Emirati line to Fujairah together fall well short of normal Hormuz throughput.
    4. Insurance and crew availability: War risk premiums and crew refusal can halt trade even where warships keep a route physically open. e.g. attacks on shipping in the Red Sea from late 2023 pushed premiums up several fold and diverted traffic around the Cape of Good Hope.
    5. Attribution difficulties in attacks at sea: Limpet mines and drones leave little evidence, which delays any collective response. e.g. the 2019 attacks on tankers near Fujairah were denied by Iran and never conclusively attributed.
    6. Escalation risk from convoy operations: Naval escorting draws external navies into direct contact with a littoral state’s forces. e.g. the reflagging of Kuwaiti tankers under Operation Earnest Will in 1987 led to repeated armed clashes.
    7. Thin strategic buffers for importers: Importing countries hold limited emergency stocks, so a closure of a few weeks becomes a fiscal event. e.g. India’s strategic petroleum reserves hold about 5.33 million tonnes, close to nine to ten days of imports.

    Conclusion

    Control of the Strait of Hormuz, and not the nuclear programme, now sets the terms of the war. Iran has converted a waterway into a bargaining instrument, and the United States has answered with a blockade it says it can sustain indefinitely and sanctions it says will be without precedent. Transit stands at two vessels a day against more than 130 before February, and reopening rests on sanctions relief and the release of frozen assets that neither side has conceded.

    Maritime Chokepoints and Global Energy Security

    1. About: A small number of narrow sea passages carry most of the world’s traded oil and gas, which makes energy security a function of a few points on the map.
    2. Strait of Hormuz: It carries roughly 20 million barrels of oil a day and the bulk of Qatari liquefied natural gas, and it has no adequate bypass.
    3. Strait of Malacca: It links the Indian Ocean to the South China Sea and carries a comparable volume of oil, mostly bound for China, Japan and South Korea.
    4. Bab el Mandeb: It connects the Gulf of Aden to the Red Sea and is the approach to the Suez Canal for Asia to Europe trade.
    5. Suez Canal and the SUMED pipeline: Together they move Gulf and Red Sea crude to the Mediterranean without the Cape route.
    6. Turkish Straits: The Bosphorus and the Dardanelles carry Russian and Caspian crude out of the Black Sea.
    7. Cape of Good Hope: It is the fallback route when Suez or Bab el Mandeb is unusable, adding roughly two weeks to an Asia to Europe voyage.
    8. India’s position: India is the third largest oil consumer and importer in the world, and its imports pass through Hormuz on the western side and Malacca on the eastern side.

    Legal Framework Governing Transit Through International Straits

    1. Article 3 of UNCLOS, 1982: Allows a coastal state a territorial sea of up to 12 nautical miles, which is why the Hormuz lanes fall within national waters.
    2. Article 37 of UNCLOS, 1982: Applies the transit passage regime to straits used for international navigation between one part of the high seas or an exclusive economic zone and another.
    3. Article 38 of UNCLOS, 1982: Grants all ships and aircraft the right of transit passage, which shall not be impeded.
    4. Article 39 of UNCLOS, 1982: Requires ships in transit passage to proceed without delay and to refrain from any threat or use of force against the bordering state.
    5. Article 44 of UNCLOS, 1982: Bars states bordering straits from hampering transit passage and from suspending it.
    6. Article 45 of UNCLOS, 1982: Applies non suspendable innocent passage to straits excluded from the transit passage regime.
    7. SUA Convention, 1988: Criminalises seizure of and violence against ships and obliges parties to prosecute or extradite offenders.
    8. Article 51 of the United Nations Charter: Preserves the right of individual and collective self defence against an armed attack, which is the ground invoked for naval action.

    Back2Basics: Strait of Hormuz

    1. Type: It is a maritime chokepoint and the only sea route from the Persian Gulf to the open ocean.
    2. Connects: It joins the Persian Gulf with the Gulf of Oman and further with the Arabian Sea and the Indian Ocean.
    3. Littoral states: Iran lies to the north, and Oman and the United Arab Emirates lie to the south.
    4. Width: Its narrowest point is about 21 nautical miles, roughly 39 kilometres.
    5. Key islands: Qeshm, Hormuz and Larak are Iranian, and Abu Musa and the Greater and Lesser Tunbs are held by Iran and claimed by the United Arab Emirates.
    6. Peninsula on the southern shore: The Musandam peninsula belongs to Oman and is separated from the rest of the country by Emirati territory.
    7. Users: Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Qatar, Bahrain and Iran export their oil and gas through it.
    8. Volume: It handles roughly a fifth of the world’s petroleum liquids consumption and about a fifth of global liquefied natural gas trade.

    Government Initiatives for India’s Energy Security

    1. Indian Strategic Petroleum Reserves: Underground caverns at Visakhapatnam, Mangaluru and Padur hold about 5.33 million tonnes of crude for emergency use, with a second phase planned at Chandikhol and Padur.
    2. Diversification of crude sources: Refiners have expanded purchases from Russia, West Africa, the United States and Latin America to reduce dependence on Gulf cargoes.
    3. Chabahar port and the International North South Transport Corridor: These provide a route to Central Asia and Russia that avoids the Suez and Hormuz corridors.
    4. India Middle East Europe Economic Corridor: A rail and shipping corridor announced in 2023 to link India to the Gulf and Europe with reduced maritime dependence.
    5. National Green Hydrogen Mission: Targets 5 million tonnes of annual green hydrogen production by 2030 to displace imported fossil fuel in industry and transport.
    6. Ethanol Blended Petrol Programme: Raises the ethanol share in petrol to cut crude import volumes and the import bill.
    7. Open Acreage Licensing Policy and the Hydrocarbon Exploration and Licensing Policy: Expand domestic exploration acreage to raise indigenous production.
    8. Maritime India Vision 2030 and Sagarmala: Expand port capacity, coastal shipping and shipbuilding to strengthen India’s own maritime logistics.

    Key Facts about World Maritime Chokepoints

    1. Hormuz volume: Roughly 20 million barrels of oil a day pass through the Strait of Hormuz.
    2. Malacca volume: The Strait of Malacca carries a comparable oil volume and is the shortest route between the Indian Ocean and the Pacific.
    3. Suez Canal: Opened in 1869 and nationalised in 1956, it links the Red Sea to the Mediterranean.
    4. Panama Canal: Opened in 1914, it links the Atlantic and the Pacific and is constrained by fresh water availability at Gatun Lake.
    5. Bab el Mandeb: Its name means the Gate of Tears, and it separates Yemen from Djibouti and Eritrea.
    6. Turkish Straits regime: Transit is governed by the Montreux Convention of 1936, which regulates warship passage into the Black Sea.
    7. India’s maritime footprint: About 95 percent of India’s trade by volume and 70 percent by value moves by sea.
    8. Observance: World Maritime Day is observed by the International Maritime Organization in the last week of September.

    Challenges in India’s Energy Security

    1. Import dependence in crude: More than four fifths of consumption is met by imports, so any supply shock transmits straight to the fiscal position. e.g. the oil import bill crossed 130 billion dollars in a single year when Brent averaged above 100 dollars a barrel in 2022 and 2023.
    2. Concentration of gas supply: A single supplier accounts for close to half of contracted liquefied natural gas imports. e.g. the long term Qatari contracts renewed in 2024 run to 2048 and all of that volume transits Hormuz.
    3. Thin emergency stocks: Strategic reserves cover only a few days of consumption against the 90 day norm followed by International Energy Agency members. e.g. India’s reserves at Visakhapatnam, Mangaluru and Padur total about 5.33 million tonnes.
    4. Payment and sanctions exposure: Sanctions on suppliers disrupt settlement channels and shipping insurance for Indian refiners. e.g. tightened sanctions on Russian crude in 2025 forced refiners to switch cargoes and payment routes at short notice.
    5. Fertiliser and petrochemical linkage: Gas priced off oil raises the urea subsidy and petrochemical feedstock costs at the same time. e.g. imported urea contracted at 390 dollars a tonne this year illustrates how a Gulf disruption reaches farm input prices.
    6. Domestic production stagnation: Crude and gas output from ageing fields has not risen with demand. e.g. Mumbai High and the Krishna Godavari basin have seen declining production profiles despite repeated bid rounds.
    7. Renewable intermittency and storage gap: Solar and wind capacity growth is not matched by storage, which keeps thermal and imported fuel in the base load. e.g. peak evening demand in northern States is still met largely by coal and imported gas.

    Way Forward

    1. Expand strategic petroleum reserves: Complete the Chandikhol and Padur phase two caverns and move coverage towards the 90 day international norm.
    2. Diversify supply and routes: Extend term contracts to non Gulf suppliers and build storage and refuelling arrangements outside the Hormuz corridor.
    3. Invest in bypass connectivity: Operationalise Chabahar, the International North South Transport Corridor and the India Middle East Europe Economic Corridor so a single chokepoint does not carry all trade.
    4. Strengthen naval escort and maritime domain awareness: Sustain deployments and the Information Fusion Centre for the Indian Ocean Region to protect Indian flagged and Indian crewed shipping.
    5. Support seafarers and shipping insurance: Extend war risk cover arrangements and evacuation protocols for Indian crews on Gulf routes.
    6. Accelerate demand substitution: Raise ethanol blending, electric mobility and green hydrogen use to cut the volume of crude that must be imported at all.
    7. Build a price shock buffer in the Budget: Maintain an explicit fiscal cushion for the fuel and fertiliser subsidy so a chokepoint closure does not force mid year expenditure cuts.

    “[2026] Ships from which of the following countries have to cross the Strait of Hormuz to reach out to the Indian Ocean?

    1. Bahrain

    2. Syria

    3. Qatar

    4. Egypt

    (a) 1 and 2

    (b) 1 and 3

    (c) 2 and 3

    (d) 3 and 4

  • India invites Bangladesh to BRICS amid a Dhaka reset

    Why in the News

    India has invited Bangladesh’s Prime Minister to the BRICS summit as the current BIMSTEC chair, even as tension persists over the Sheikh Hasina extradition. A parallel opinion piece urges a Delhi-Dhaka reset.

    What is BIMSTEC?

    1. Definition: The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) links South and Southeast Asian states around the Bay of Bengal.
    2. Members: India, Bangladesh, Myanmar, Sri Lanka, Thailand, Nepal, and Bhutan.

    Why is a reset needed?

    1. Political friction: The extradition dispute over the former Bangladesh premier strains ties.
    2. Connectivity stakes: The Maitree Super Thermal Power Plant and the India-Bangladesh Friendship Pipeline anchor an energy and trade partnership worth protecting.
    3. Neighbourhood First: Bangladesh is central to India’s Neighbourhood First and Act East bridge, so drift carries strategic cost.

    Conclusion

    India is using multilateral platforms to keep a strained bilateral relationship functional. The next milestone is whether the extradition dispute is contained.

    Matching Previous Year Question

    “[2022, GS2, 10 marks] Do you think that BIMSTEC is a parallel organisation like the SAARC? What are the similarities and dissimilarities between the two? How are Indian foreign policy objectives realized by forming this new organisation?”