06.September.2025

• Strain in relations: U.S. President Trump’s remarks accusing India of moving closer to China and Russia.
•   Tariff dispute: Imposition of 50% tariff on Indian imports (citing India’s Russian crude purchases).
•  Quad implications: Question mark over U.S. President’s participation in the next Quad Summit in India.
•  Diplomatic approach: India maintaining “studied silence” on Trump’s verbal attacks → reflects India’s policy of strategic patience.

India’s Multilateral Engagements

• SCO Summit (Tianjin): India’s presence alongside Russia and China → perceived in U.S. as “India drifting”.
•   BRICS grouping: U.S. Commerce Secretary asking India to leave BRICS, showing discomfort with India’s multilateral balancing.
•  UNGA session: Possible venue for U.S.–India high-level talks later in the month.

U.S. Concerns

• Fear of India–Russia–China alignment.
•   Targeting of India due to Russian crude imports during Russia–Ukraine war.
•  Allegations by U.S. officials (Peter Navarro) against Indian “Brahmins profiteering” → sparks controversy, rejected by MEA.

India’s Stand

• Non-alignment in new multipolar context: India continues to engage with all major powers (U.S., Russia, China).
•  Russia–Ukraine conflict: India pressing for dialogue and ceasefire, Jaishankar engaging Ukraine FM.
• MEA’s silence → avoids escalation, keeps diplomatic space open.

Geopolitical Implications

• Shift in U.S. perception: Trump terming India a “loss to China” = U.S. anxiety over India’s independent foreign policy.
•  Domestic criticism in U.S.: Officials admit tariffs and remarks are a “miscalculation”.
•  Strategic balancing: India is central to Indo-Pacific & Quad, but simultaneously part of SCO and BRICS.

ISRAEL FORCES ATTACK THE GAZA CITY

• Israel’s offensive: High-rise Mushtaha Tower in Gaza City struck; Israel claims it was used for Hamas surveillance.
• Defence Minister’s warning: “When the door opens it will not close” → signals escalation and prolonged operation.
•  Declaration: Gaza City designated as a combat zone; parts marked “red zones” for mandatory evacuation.
•  Casualties: Palestinian Health Ministry reported 69 deaths in last 24 hours.

Strategic & Security Dimension

• Military mobilisation: Tens of thousands of Israeli reservists deployed → preparation for large-scale ground operations.
•   Hostage issue: ~48 hostages still in Gaza; ~20 believed alive. Domestic protests in Israel over offensive endangering them.
•  Hamas propaganda: Release of hostage videos → psychological warfare and negotiation leverage.
•  Urban warfare challenge: High-rise strikes, civilian-dense areas → high collateral risk, complicates precision operations..

Humanitarian & Civilian Impact

• Mass displacement: Evacuation warnings → overcrowding in southern Gaza; scarcity of shelter, tents, and basic amenities.
•  Economic strain: Families unable to afford repeated displacements (costs thousands of dollars).
•  Civilian casualties: Lack of warning before strikes → raises concerns about proportionality under international humanitarian law.

Political & Diplomatic Angle

• Domestic Israeli dissent: Civil society protests questioning the offensive due to hostage safety and long war costs.
•  International concerns: UN, humanitarian organisations likely to criticise violation of Geneva Convention norms (indiscriminate strikes).
•  Regional spillover risk: Intensified Gaza operations could provoke Hezbollah (Lebanon), destabilise fragile ceasefires in West Bank.

India’s Possible Concern Areas

• Diaspora security: Indian workers in Israel and students in West Asia.
•  Energy security: Escalation could disrupt oil supplies and spike global energy prices.
• Diplomatic balance: India’s consistent position → support for two-state solution, condemn terrorism (Hamas), while advocating humanitarian restraint by Israel.

MEA TO JOIN BRAZIL-LED BRICS VIRTUAL SUMMIT

• India will be represented by External Affairs Minister S. Jaishankar at a virtual BRICS summit on Monday, convened by Brazil’s President Lula da Silva.

• Despite being a leaders’ level summit, PM Modi is not attending; no official reason given.

Agenda & Trigger

Trigger: U.S. tariffs (Aug 6, 2025) targeting BRICS economies.

• Brazil & India: 50% tariff (highest worldwide).  China & South Africa: 30% tariff.
•  Indonesia: 19% tariff, but key agri exports (palm oil, cocoa, rubber) exempted.
•  Russia & Iran: 10% tariff (though already heavily sanctioned).

Expected agenda:

•   Impact of U.S. tariffs on global trade.
•  Strengthening multilateralism vs. unilateral sanctions/tariffs.
•   Exploring a “common plan” among BRICS nations.

BRICS Membership Dynamics

• Current 11 members:
•  Original 5: Brazil, Russia, India, China, South Africa.  New members (expanded BRICS): Egypt, Ethiopia,
• Indonesia, Iran, Saudi Arabia, UAE.
• India is next Chair of BRICS → will host the upcoming in- person summit.

Geopolitical Context

• Summit follows:
•   PM Modi’s recent visit to China for SCO summit.
•   Meetings with Xi Jinping & Vladimir Putin, criticised by U.S. officials.
•  Likely to irk Washington, given BRICS’ positioning as a counterweight to U.S.-led global order.

Strategic Significance

• Trade War escalation: BRICS being pushed closer due to shared tariff burden.
•   India’s balancing act:
•   Hosting BRICS next year.
•  Deepening ties with QUAD & U.S., while simultaneously engaging BRICS + SCO (China & Russia).
• Potential testing ground for alternative financial/ trading frameworks (de-dollarisation debates, BRICS currency, etc.).

INDIA STRATEGIC AUTONOMY

• Strategic autonomy = ability of a nation to pursue sovereign foreign policy and defence decisions free from external pressure or alliance obligations.
•   Distinct from isolationism or neutrality; implies flexibility

+ independence + engagement on one’s own terms.

• For India → rooted in colonial past and Nehru’s Non- Alignment Policy; evolved into multi-alignment in contemporary era.

Historical Evolution

• Nehru era (Cold War): Non-Aligned Movement (NAM) = autonomy amidst bipolar world.
• Post-Cold War (1991 onwards): Economic liberalisation, engagement with U.S. + West, but retained ties with Russia.
•  21st century (Modi era): Multi-alignment → pragmatic partnerships across rival blocs (Quad, SCO, BRICS, I2U2, IMEC).

Contemporary Drivers

Geopolitical Flux

• U.S. unipolar moment fading → multipolarity emerging.
• Assertive China, revisionist Russia, fractured West.  
• Middle powers and Global South seeking agency

National Interests

• Territorial integrity (esp. China border issues).
•  Economic growth & tech advancement.  Energy & defence security.
•  Regional stability in Indo-Pacific + neighbourhood

Major Power Equations

• U.S.:
• Deepened defence & tech cooperation, Quad, IMEC, I2U2.
•  Frictions: tariffs, trade disputes, U.S. pressure on Russia ties, sanctions regimes.
• India’s stance: engage without being subsumed.

China:

• Challenge: border tensions (Galwan, 2020), strategic rivalry.
•  Necessity: large trading partner, BRICS/SCO cooperation.
• Strategy: deterrence + cautious engagement; neither confrontation nor capitulation.

Russia

• Legacy partner in defence & energy.
•  Post-Ukraine war isolation → India still engages (oil imports, arms deals).
•  Criticism from West resisted.
•   Strategy: diversification without abandonment.

Global South Dimension

• India as voice of Global South during G-20 presidency (2023).
•  Advocates multipolarity, pluralism, and “non-West but not anti-West” diplomacy.
•  Resonates with middle powers seeking agency, not alignment.

Challenges to Strategic Autonomy

• Global constraints:
•  Interdependent economy & supply chains.
•   Tech ecosystems dominated by few global players.
• Climate change, cyber threats, AI, space race → demand cooperation.

Domestic constraints:

• Political polarisation.
• Economic vulnerabilities (import dependence, energy security).
• Institutional limitations in foreign policy & defence modernisation.

• India’s indirect tax reform journey → GST introduced in 2017 as “One Nation, One Tax”.
•   GST 2.0 marks a second-generation reform, focused on simplification, fairness, competitiveness, and ease of doing business.
•  Aligns with global best practices (two-rate structure, predictability, dispute resolution mechanisms).

Key Features of GST 2.0

Rate Rationalisation

• Essentials (soap, toothpaste, packaged foods, kitchenware, shampoos, etc.) shifted to lower tax brackets.
•  Construction materials (cement, steel, tiles, sanitaryware) → reduced GST → supports Housing for All + infrastructure push.
•   Healthcare: Life-saving drugs, critical devices → nil or 5% GST.
•  Labour-intensive industries (textiles, handicrafts, leather, footwear, toys) → lower rates → protect jobs, rural livelihoods.
•  Automotive sector: Lower GST on small cars, motorcycles, buses, trucks → boost to demand and manufacturing.

Export Competitiveness & MSME Support

• Inverted duty structure corrected in textiles, fertilizers, renewables.
•  Lower duties on capital goods + intermediates → promotes local value addition under Make in India.
• Removal of refund thresholds for low-value consignments → benefit courier/e-commerce exporters.
• Simplified GST Registration Scheme: automated approvals in 3 days → reduces compliance cost, promotes formalisation. 

Dispute Resolution & Legal Clarity

• Operationalisation of GST Appellate Tribunal (GSTAT→ faster resolution of disputes, reduced backlog.
• Clarifications on intermediary services, post-sale discounts → reduce litigation

Two-Rate GST Structure  Standard rate: 18%

• Merit rate: 5%
•   De-merit rate: 40% (luxury/sin goods).
•  Brings India closer to advanced economy models → greater international investor confidence.

Broader Economic Implications

• Consumption Boost: Lower tax on essentials → higher disposable income.
•  Housing & Infrastructure: Cheaper inputs → push to real estate, construction, allied industries.
• Healthcare & Social Equity: Lower cost of treatment → inclusive
• Job Creation: Support for textiles, leather, handicrafts, MSMEs → rural & semi-urban employment.
•  Export Growth: Correcting distortions → global competitiveness.
•  Investment Climate: Stable, predictable tax regime → boosts FDI.

Challenges & Concerns

• Implementation bottlenecks (delays, compliance burden in smaller towns).
•  Revenue implications for Centre & States (compensation, fiscal federalism concerns).
• State autonomy vs uniformity debate in GST Council.
•  Need for effective digital infrastructure for registration, refunds, and dispute resolution.

THE CHANCELLORS

Context

• Kerala Governor Rajendra Vishwanath Arlekar submitted to the Supreme Court that the Chief Minister has no role in the appointment of Vice-Chancellors (V-Cs) of A.P.J. Abdul Kalam Technological University and Digital University Kerala.
•  Submission based on 2018 UGC Regulations → search- cum-selection committees must have eminent persons unconnected to the university.
•  Draft 2025 UGC Regulations further centralize power → excludes State govts, puts appointments under the Chancellor (Governor).
•  Reflects wider trend of Governor–State govt confrontations (Kerala, Tamil Nadu, West Bengal).

Constitutional & Legal Dimensions

• Governor’s Role: Article 153–162 defines Governor’s constitutional position; discretionary powers are limited (Article
•  Governor as Chancellor: Colonial legacy continued post- Independence; role not explicitly in Constitution but in State University Acts.

 Judicial Interventions:

•  SC has ruled that Governor’s discretionary powers are narrow.
•  Courts have tried to balance State autonomy with UGC’s central regulatory framework.
•  UGC Regulations: Statutory rules under Entry 66, Union List (coordination & determination of standards in higher education).
•  Conflict: Federalism (State List Entry 25: Education, subject to Union List) vs Centre’s overarching regulatory role.

Political & Federalism Angle

• Governors seen as agents of the Union govt rather than neutral constitutional heads.
•  More friction in Opposition-ruled States (Kerala, TN, WB) than in BJP/NDA-ruled States.
•  States pushing back → Punjab & WB have legislated to make Chief Minister Chancellor, removing Governor’s control.
•  Larger trend: shrinking State role in education governance, centralisation through UGC/NEP mechanisms.

Governance & Administrative Issues

• Universities require autonomy: V-Cs should be academic leaders, not political appointees.
•  Governor as Chancellor may politicize appointments and create administrative deadlock.
•  Chief Minister’s exclusion weakens democratic accountability.
•  Search-cum-selection committees must balance independence with representation of stakeholders.

Comparative Insights

• UK & US Universities: Autonomy from executive; academic councils hold greater sway.
• Indian States: Varied models — some retain Governor as Chancellor, others moving to CM or independent boards.

Way Forward

• Clear demarcation of Governor’s constitutional vs statutory roles.
•  Neutral mechanisms for V-C appointments: Independent committees insulated from political interference (Centre or State).
•  Strengthen University governance structures (Senates, Syndicates, Academic Councils).
•  Federal balance: Respect State autonomy in education, while maintaining national academic standards. 163).

A NEW LEAF

Notified by: Ministry of Environment, Forest and Climate Change (MoEFCC).

 Need for reform:

•  State Pollution Control Boards (SPCBs) & Central Pollution Control Board (CPCB) face manpower, capacity, resource, and infrastructure constraints.
•  Ineffective monitoring → gaps in compliance enforcement across industries.
•  Objective: Strengthen monitoring, compliance, and enforcement mechanisms in environmental governance

• Accreditation of private environmental auditors:  
• Similar to Chartered Accountants.
• Authorised to conduct compliance evaluation of industries/projects.

 Expanded scope:

•   Beyond “policing & bookkeeping.”
•  Includes audits for Green Credit Rules (tradeable credits for afforestation, water conservation, waste management, etc.).
•  Mandatory carbon accounting:
•  Companies must disclose direct & indirect emissions (Scope 1, 2, and possibly 3).
•  Requires advanced environmental accounting practices.

• Decentralisation & outsourcing: Auditing function no longer exclusive to SPCBs.
•   Bridging deficits: Addresses shortage of trained staff and infrastructure.
•  Integration with global climate commitments: Supports India’s NDCs under Paris Agreement and climate action goals

Concerns & Challenges

• Regulatory dilution risk: Excessive reliance on private auditors → conflict of interest, “regulatory capture.”
•  Local-level neglect: District/block/panchayat-level violations (illegal sand mining, waste dumping, etc.) often escape scrutiny.
•  Capacity asymmetry:
•   Big industries can adapt to carbon accounting.
•  Small-scale & rural industries may find compliance burdensome.
• Accountability deficit: Who audits the auditors?

Governance & Policy Dimensions

• Parallel to Financial Auditing: Environment auditors akin to CAs, ensuring transparency.
• Green federalism: Balance between Centre, States, and local bodies.
•  Link with Environmental Governance Principles:
•    Precautionary principle
•  Polluter pays.
• Sustainable development.

NOT EASY TO SWITCH TO DOMESTIC FROM GLOABAL

• U.S. has imposed 50% tariffs on Indian exports → exporters face reduced competitiveness.

• Exporters struggle to divert surplus into the domestic market due to structural and demand-related constraints.

Challenges in Shifting to Domestic Market

• Low absorption capacity: Domestic demand cannot absorb high-value or niche export products (e.g., carpets, diamonds, jewellery).
• Oversupply & stress: Domestic producers already face heavy discounts → dumping surplus would worsen conditions.
•  Different specifications & standards: Export-oriented production setups differ from domestic market requirements → cost and structural barriers.
• Overheads mismatch: Exports involve different cost structures, logistics, and quality benchmarks.

Feasible Option – International Market Diversification

• Seen as a more sustainable alternative than relying on the domestic market.
•  New geographies suggested: Africa, Latin America, Central Asia.
•  Government role crucial: Need policy support, trade agreements, and logistical facilitation.

Sector-Specific Insights

• Footwear: GST rationalisation may expand domestic demand.
•  Handicrafts (low-value): Some scope for domestic absorption.

• Carpets, diamonds, jewellery (high-value, slow-moving): Limited domestic scope.

Strategic Concerns

• Retention of global brands: If exporters stop supplying, global buyers may permanently shift to competitors → long-term loss.
•  Foreign exchange necessity: India’s import-dependence makes export earnings critical; domestic substitution cannot replace forex inflows.
•  Global positioning: Losing U.S. market share without alternative diversification risks India’s trade balance.

Way Forward (Policy Suggestions)

• Short-term: Government support to reduce stress (credit, GST rationalisation, export incentives).
•  Medium-term: Explore FTAs and preferential trade arrangements with emerging markets.
•  Long-term: Build resilient and diversified export markets to reduce overdependence on U.S./EU.
•  Structural reforms: Improve competitiveness, reduce logistics cost, build domestic consumption base gradually.

MULTIPOLARITY AND US

• Unipolarity: Post–Cold War dominance of the US.
•  Bipolarity: Cold War structure (US vs USSR) → considered more stable since only two primary powers need to manage their rivalry.
• Multipolarity: More than two great powers (3–5 poles).   
• Favoured by India as it provides greater flexibility,choices, and fluidity in external relations.
• But inherently unstable → difficult to predict, shifting alliances, frequent recalibrations.

Indian Position on Multipolarity

• India has long advocated multipolarity as a hedge against hegemony of one or two powers.
•  However, multipolarity may mean:
•   Greater uncertainty in alliances.
•  Volatile commitments from partners (China, Russia, EU, Japan may change positions quickly).
•  Reduced reliability compared to earlier Indo–US cooperation.

Current Trigger: Trump’s Policies

• Economic nationalism (tariffs against India).
•  Diplomatic unpredictability → exposed India’s vulnerability in a multipolar setting.
•  SCO episode: Russia and China supported India against Trump’s tariffs, but this may not be reliable — they may cut deals with the US.

Multipolarity ≠ Multilateralism

• Indian policymakers often conflate the two.
•  Reality: multipolarity does not guarantee rule-based, consultative,institutionalized cooperation.
• Instead, it can accelerate the recession of multilateralism (WTO weakening, UN sidelined, preference for transactional bilateralism).

Strategic Autonomy & Multi-alignment

• Indian foreign policy doctrines like strategic autonomy and multi-alignment face real-world stress tests in multipolarity.
• Risk: They may translate into “solitary survival” in a fragmented and transactional world order.
•  Alliances will be situational, temporary, and interest- driven.

Challenges for India in Multipolarity

• Uncertainty: No permanent friends, only permanent interests.
•  Volatility: Alliances shifting rapidly (permutations of coalitions).
•  Asymmetry: India remains a “secondary power” vis-à-vis US, China, Russia.
•  Erosion of Multilateralism: Weaker institutional safeguards.
•   Strategic Loneliness: Danger of being left isolated if partners prioritise their own deals.

Way Ahead for India

• Accept multipolarity as inevitable but prepare for its brutality and unpredictability.
•  Develop domestic economic and technological strength to reduce vulnerability.
•  Build issue-based coalitions rather than permanent alliances.
•  Prioritise resilience, self-reliance, and diversified partnerships (Indo-Pacific, QUAD, BRICS+, SCO,G20).
•  Constant recalibration of foreign policy, while safeguarding core interests.