01 September 2025

• Meeting Venue & Occasion:

• PM Narendra Modi met President Xi Jinping on the sidelines of the SCO Summit in Tianjin, China (Sept 2025).

Border Issue:

• Both leaders reaffirmed peace & tranquillity on the India–China border as essential for bilateral relations
• Acknowledged successful disengagement (2024) and commitment to a fair, reasonable, mutually acceptable boundary resolution.

• Border issue should not define overall bilateral ties.

• Called India–China relations a “cooperative pas de deux of the dragon and the elephant”.

People-to-People Engagements:

• Strengthening ties through direct flights, visa facilitation, and Kailash Mansarovar Yatra resumption.

• Discussion on balanced bilateral trade and reducing trade deficit.

• Both economies seen as stabilising factors for world trade (context: US tariff wars).

• Agreement to facilitate investment ties.

Strategic Autonomy:

• Modi emphasised that India–China ties should not be seen through a third-country lens (reference to US factor).

• Cooperation on terrorism, fair trade, multilateral platforms.

• Support for China’s SCO presidency & Tianjin Declaration.

• Future Engagements:

• Modi invited Xi to BRICS Summit in India, 2026.

• Meeting with Myanmar’s Senior General Min Aung Hlain.

• Policy Frameworks:

• India’s engagement aligned with Neighborhood First, Act East, and Indo-Pacific policies.

• Democracy & Elections:

• India hopes for free, fair, and inclusive elections in Myanmar.

• Reiterated support for a Myanmar-led and Myanmar- owned peace process.

• Development Cooperation:

• India expressed readiness to support developmental needs of Myanmar (amid ongoing crisis).

Backdrop:

• Ongoing US tariff wars, with both India & China facing duties on exports.

SCO Summit:

• Modi attended banquet gala with SCO leaders, including Putin & Pakistan PM Shahbaz Sharif.

India’s Diplomatic Messaging:

• India & China are development partners, not rivals.

• Emphasis on mutual respect, interest, and solidarity in ties.

GOVT. TO OFFER IMMEDIATE LIQUIDITY TO TARIFFHIT EXPORTERS

• U.S. tariff escalation has triggered concerns for Indian exporters, particularly in labour-intensive and SEZ-based sectors.

• Union Government has framed a short-, medium-, and long-term action plan to mitigate immediate pain and enhance long-term competitiveness.

Short-Term Measures

• Liquidity & Compliance Relief: Immediate support to exporters to prevent working capital stress, insolvencies, and job losses.

• Addressing Vulnerable Sectors: Focus on labour-intensive sectors and SEZ-based units facing cancelled orders and delayed payments.

Tweaks in Export Promotion Mission (Union Budget 2025):

• Niryat Protsahan → Trade finance support (interest subvention, e-commerce export cards, collateral support).

• Niryat Disha → Market access, compliance support, branding and packaging.

• SEZ Policy Flexibility: Norm adjustments to sustain production and scale in export-oriented units.

• Export Diversification: Reduce overdependence on a single market (esp. U.S.).

• Leveraging FTAs: Optimizing benefits of India’s existing Free Trade Agreements.

• Strategic Autonomy in Key Sectors: Reduce vulnerability to global supply chain disruptions.
• Digital Trade Infrastructure: Launch of BharatTradeNet to modernize and integrate trade processes

Guiding Principles

• Provide immediate liquidity, compliance, and order-level relief.

•   Build resilience in supply chains.

• Leverage trade agreements for long-term competitiveness.

• Provide non-financial support (branding, packaging, compliance).

Significance

• Economic Security: Shields exporters from short-term shocks.

• Employment Protection: Particularly in labour-intensive SEZ sectors.
• Competitiveness Boost: Push towards digital trade and export diversification.

• Strategic Trade Policy: Aligns with India’s broader goals of Atmanirbhar Bharat and resilient supply chains.

ROSEWOOD TREE POPULATION IN SOUTH INDIA

• Dalbergia latifolia (Indian rosewood): Keystone species; improves soil fertility via nitrogen fixation; long-term carbon sink.

• Known as the “ivory of the forests” → highly valued for timber (furniture, handicrafts).

• Habitat modelling shows only 17.2% of suitable habitat lies within protected areas.

• IWST habitat modelling (MaxEnt software, 3,224 occurrence points, 19 bioclimatic variables).

• Native to Tamil Nadu’s Nilgiris, Anamalai, and Parambikulam ranges.
• Sharp population decline observed (2019–2025 field studies by ICFRE–IWST).

• Tamil Nadu: 2.85 trees / 0.1 ha  Karnataka: 6.19 trees / 0.1 ha

• Kerala: 5.38 trees / 0.1 ha

• Six high-suitability districts in TN: Nilgiris, Coimbatore, Erode, Tiruppur, Dindigul, Theni.

  Legal & Policy Dimensions

• Tamil Nadu Rosewood Trees (Conservation) Act, 1995 → prohibited cutting without govt. permission.

• Extended in 2010 for 15 years → lapsed in Feb 2025 (not renewed).

• With lapse → private trees, esp. in tea plantations, vulnerable to felling and exploitation.

Threats & Concerns

• Unsustainable logging and land-use change due to lack of legal safeguards.
• Climate change models predict further habitat shrinkage.
• Limited overlap between suitable habitat and protected areas → increased vulnerability.

HUGE INCOMETAX ACT IN SIX MONTHS

• Income Tax Act, 1961 – had become lengthy and complex (819 sections, 47 chapters).

• Need – Simplification, rationalisation, removal of redundancies, clearer language for better compliance.

  Timeline

• July 23, 2024 – Finance Minister announced completion of simplification within six months.
• Aug 14, 2024 – Drafting committee under Chief Commissioner of Income Tax V.K. Gupta formed.
• Feb 13, 2025 – Draft Bill laid before Parliament (6 months after work began).

• July 16, 2025 – Select Committee report submitted. Income Tax Act, 2025.

• Aug 12, 2025 – Revised Bill passed in Parliament →Income Tax Act, 2025.

• Lead institution – CBDT (Central Board of Direct Taxes), Department of Revenue.

• Committees –

• 26 drafting subcommittees (removed redundancies, reviewed sections).

• Review committee → Tax Policy and Legislation (TPL) division → senior CBDT officers.
• Manpower – 150+ officers, from 1988 batch to 2018.
• Total effort – 75,000 man-hours.

• Consultation – Revenue Secretary, Finance Minister, Ministry of Law.

• 819 sections → 536 sections.

• 47 chapters → 23 chapters.

• 57 explanatory tables (previously 18).

• 46 formulae (previously 6).

• Language simplified: jargon/archaic words (“notwithstanding”) removed.

• Explanations and examples included for clarity.

• Explanations and examples included for clarity.

Select Committee Role

• Took 5 months to review the draft.
• 1,312 suggestions made.

• CBDT TPL + drafting core committee prepared replies (written + oral).

• Report submitted to Parliament on July 16, 2025.

Significance

• Condenses and simplifies a major piece of legislation.
• Enhances lucidity, clarity, and precision in tax
• Shows administrative capacity to complete a “mammoth task” in limited time
• Reflects coordination across multiple bureaucratic levels and legislative oversight.

PRIME MINISTER NARENDER MODI VISIT TO CHINA

• PM Modi raised the issue of cross-border terrorism with Chinese President Xi Jinping during bilateral talks at the SCO Summit in Tianjin.

• Emphasis on both India and China being “victims of terrorism”, marking a nuanced diplomatic stance.

Shift in India’s Position

• Earlier (2016), Modi used similar language while appealing to China for support in the UN to designate Pakistan- based terrorists (Masood Azhar, Lakhvi).
• In recent years, India had avoided equating China with itself as a victim of terrorism, instead criticising Beijing’s double standards on Pakistan.
• Current statement indicates a possible recalibration in India’s China policy—seeking cooperation rather than confrontation on terrorism.

• China traditionally blames Tibetan and Uyghur groups for domestic violence.

• Also faces attacks on Chinese nationals in Pakistan by Baloch groups.

  India had previously not endorsed these claims, at times even highlighting human rights concerns in Xinjiang and Balochistan.

SCO Context

• India expects strong references to cross-border terrorism in the SCO joint statement.
• India values China’s “understanding and cooperation” within the SCO framework on terrorism.

• SCO has emerged as a key platform for regional counter- terrorism discourse.

INDIA’S ECONOMIC CHURN, THE NECTAR OF GROWTH

• Trial precedes triumph → Civilisational analogy (Samudra Manthan) used to frame resilience.

• Past crises led to renewal:  1991 → Liberalisation.

• COVID-19 → Digital surge
• Current economic churn → Resilient growth.

• Q1 FY 2025-26 GDP growth: 7.8% (five-quarter high).

• Broad-based growth:

• GVA up 7.6%

• Manufacturing 7.7%

• Construction 7.6%  Services ~9.3%

• Nominal GDP: +8.8%

• Global positioning:

• 4th largest economy; fastest growing among major economies.

• India contributes 15%+ to world growth, aim to raise to 20%.

• S&P Global: First sovereign rating upgrade in 18 years.

• Cited robust growth, fiscal consolidation, monetary credibility.

• Lowers borrowing costs, boosts investor confidence

• Poverty Reduction & Social Development.

• 82 crore people lifted out of multidimensional poverty (2013–2023).

Key enablers:

• Bank accounts, Ujjwala LPG, Ayushman Bharat, Jal Jeevan Mission.

• Direct Benefit Transfer (DBT).

• Model: Consensus-building, competitive federalism, digital rails.

• Acreage expansion (8% in 2021 → 16% in 2025; target: 1 mn sq km by 2030).

• No-Go’ area reduction by 99%.  OALP → transparent bidding.

• Gas pricing reforms: Linked to Indian crude basket, premium for deepwater wells.

Energy Transition & Green Agenda

• Ethanol blending: From 1.5% (2014) → 20% (2025).

  FX savings: ₹1.25 lakh crore.

• Farmer payment: ₹1 lakh crore.

• Compressed Biogas (CBG): 300+ plants, 5% blending by 2028.

• Green Hydrogen: PSU-led initiatives.

• Russian oil not sanctioned like Iran/Venezuela; under G7/EU price cap.

• India’s transactions legal, compliant, audited.

• India = long-standing exporter of petroleum products.

• Domestic stability: PSUs absorbed ₹10/litre diesel losses, tax cuts ensured stable prices, no retail shortage.

Industrial Policy & Digital Economy

• Production Linked Incentive (PLI): Semiconductors, electronics, renewables, defence, chemicals.

• Semiconductor Mission: 4 new projects approved (2025).

• PM visit to Japan → semiconductor collaboration.

Digital Economy:

•   India = global leader in real-time payments.
• UPI ubiquity → boosts MSMEs and formalisation.

• Startup ecosystem → innovation exports.

•  EY forecast: By 2038 → India could be 2nd largest economy in PPP, GDP > $34 trillion.

• Drivers: steady reforms, human capital, clean/abundant energy.

UKRAINE AS A BATTLE BETWEEN AMERICA AND WASHINGTON

• Not a bilateral contest of U.S.–Russia or U.S.–Europe, but an outcome of internal U.S. power struggles.
• Trump acceded to some Russian demands (e.g., no ceasefire without permanent peace, no NATO in Ukraine) but fell short of his campaign promise of immediate war termination
• Summit symbolised optics of peacemaking but lacked substantive concessions

Limits of U.S. Presidential Power

• Trump’s inability to deliver peace reveals constraints on the U.S. President despite electoral mandates.

• Root cause: contest between “America First” anti- interventionists vs “Permanent Washington” (military– industrial complex + ideological elites).

Domestic Contest in U.S. Foreign Policy

America First / Anti-interventionist camp

• Advocates reduced U.S. overseas military commitments.

• Endorsed by Trump, VP J.D. Vance, Vivek Ramaswamy.  Public support: 66% Americans (2024 survey)favoured negotiated peace with Russia.

• Trend: 6 of last 8 U.S. elections won by less interventionist candidates.

• Accepts regional hegemony of powers like India, China, Russia.

Permanent Washington

• Coalition of neo-con politicians, commercial & ideological lobbies.

• Seeks continuous military action, defence spending, and U.S. global hegemony.

• Controls bureaucracy, policy elites, and often overrides elected leadership.

Trump’s Policy vs. Optics

  Optics & narrative shifts:

• De-normalised Ukraine’s “sainthood” (dressing down Zelenskyy).

• Re-normalised U.S.–Russia diplomacy (grand Cold War–style summit).

Policy actions (limited & inconsistent):

• Temporary halt of U.S. arms/intel support to Ukraine.  Continued funding of Ukraine’s defence.

• Escalations like secondary sanctions on India (for Russian oil).

• Entertained post-war “security guarantees” for Ukraine (a non-starter proposal).

Geopolitical Implications

• Ukraine war: closest ever to nuclear escalation.
• Peace prospects depend less on international bargaining, more on domestic U.S. power equations

• Long-term global security contests (including U.S. response to India’s rise) will be shaped by America vs Washington, not America vs Russia.

India-Specific Dimensions

• Secondary U.S. sanctions on India for Russian oil purchases show contradictions in Trump’s anti- interventionist stance.

• India’s rise will be affected by whether U.S. embraces regional multipolarity (MAGA view) or pursues global dominance (Permanent Washington view).

• Lesson: Domestic politics of major powers directly shape India’s strategic space and foreign policy choices.

SUMMIT IN TOKYO BETWEEN PM MODI & PM SHIGERU ISHIBA

KEY HIGHLIGHTS

•  15th Annual Summit in Tokyo between PM Modi & PM Shigeru Ishiba.
• Last summit held in India, 2022.
• Visit came before SCO Summit (Tianjin) and amid U.S. tariff escalation.
• Initial feedstock: used cooking oil (UCO) collected from hotels, restaurants, and food chains.

• Agreements: Over a dozen documents signed, with a “Next-Gen” focus.

• Vision 2035 Statement: Eight areas → economic security, mobility, green technology transition, etc.
• Next-Gen State–Prefecture Partnership → sub-national cooperation, grassroots ties, direct flights.

• Japanese investment target raised to $68 billion.

• About 170 MoUs with Indian partners.
•  Focus on resilient supply chains & critical infrastructure.
• Collaboration on semiconductor manufacturing & rare earth processing (China export restrictions context).
•   High-Speed Rail (Bullet Train) project highlighted.
•  Modi & Ishiba visited Miyagi province → inspected a semiconductor plant.

Security & Strategic Cooperation

• 2008 Security Partnership updated:
•  Annual NSA-level dialogue.

• Stronger Quad & Indo-Pacific engagement.

•  Support for UNSC reforms.

Joint statement:

• Condemned North Korea’s missile/nuclear programme.
• Mentioned Pahalgam terror attack & cross-border terrorism (no Pakistan reference).

• Modi chose Japan first before talks with Xi Jinping → balancing act.

• Japan has concerns over East China Sea tensions & U.S. trade frictions (cancelled Washington delegation).

• Message: India–Japan ties remain stable amid global turmoil (U.S.–China–Russia power plays).

• Importance of upcoming Quad Summit in India (clouded by Trump’s policies).

Significance for India

• Strategic hedge against both China and U.S. unpredictability.
• Infrastructure & technology transfer: boost to India’s modernization.
• Multilateral cooperation: Indo-Pacific, Quad, UNSC reform.

• Economic security diplomacy: semiconductors, rare earths, supply-chain resilience.

• Reinforces “Special Strategic and Global Partnership” with Japan.