Saudi- Pak Sign A DefencePact | U.S Revokes Visas Of Indian Business Executive And Family | U.S Revoke Waiver On Chabahar Port bSanctions | Equalising Primary Food Consumption In India | India Need More Focus To Rech SDG3,A Cricial Goal | Holistic Approach | A Birthday Call | EU's Overture | Fed's Dual Mandate Conundrum |
SAUDI -PAK. SIGN A DEFENCE PACT
KEY HIGHLIGHTS
- Trigger: Signing of a mutual defence pact between Saudi Arabia and Pakistan after Israel’s strike on Qatar (Sept 2025).
- Historical ties:
- Saudi financial support reportedly helped Pakistan sustain its nuclear weapons programme (esp. during U.S. sanctions).
- Longstanding defence relationship—Pakistani troops deployed in Saudi Arabia since the late 1960s for protecting holy sites and countering regional threats.
- Geopolitical backdrop:
- Intensifying Israel–Iran rivalry and ongoing conflicts in West Asia.
- Saudi Arabia signaling deterrence posture, possibly seeking inclusion under Pakistan’s “nuclear umbrella”.
- First major defence decision by a Gulf Arab state post-Qatar attack.
Key Facts / Prelims Pointers
Pact signed: 18 Sept 2025, Riyadh.
Signatories: Crown Prince MBS & PM Shehbaz Sharif.
Core clause: “Any aggression against either shall be considered aggression against both.”
Pakistan’s nuclear capability: ~165 warheads (SIPRI 2024).
Saudi Arabia: No nuclear arsenal; member of NPT (1970s).
Pakistan faced U.S. sanctions under the Pressler Amendment (1990s) & later missile-related sanctions.
Relevant text: Brig. Gen. Feroz Khan’s Eating Grass documents Saudi funding
Critical Analysis Opportunities / Pros:
- Strengthens Saudi deterrence against Iran & Israel. Enhances Pakistan’s geopolitical weight, deepens economic-military ties.
- Signals emerging Sunni bloc alignment in West Asia.
Challenges / Cons:
- Raises risk of nuclear proliferation / “nuclear umbrella” controversy.
- May provoke Iran, destabilizing Gulf region.
- Could complicate U.S.–Saudi ties (Washington wary of nuclear angle).
- Weakens prospects of Israel–Saudi normalization.
Long-term Implications:
- Possible proxy nuclear deterrence arrangement in West Asia.
- India’s balancing act between Saudi Arabia (oil, diaspora) and Iran (Chabahar, regional access) becomes harder.
- Could push Turkey, Iran, Israel into sharper military postures.
Way Forward
- For India: Strategic hedging, strengthen energy diversification, enhance engagement with GCC + Iran.
- For Region: Promote regional security dialogue (West Asia collective security forum).
- Global best practice: Adopt confidence-building measures (CBMs) like EU’s nuclear safety protocols; push for a WMD-Free Zone in West Asia (long- discussed at UN).
- Policy reform: Encourage NPT signatories to reaffirm commitments; engage Saudi in IAEA-safeguarded nuclear energy projects to prevent clandestine ambitions.
U.S REVOKES VISAS OF INDIAN BUSINESS EXECUTIVE AND FAMILY
KEY HIGHLIGHTS
- The U.S. Embassy in New Delhi revoked/denied visas to Indian business executives and their families for alleged involvement in smuggling fentanyl precursor chemicals into the U.S.
- Trigger: In January 2025, U.S. authorities charged two Indian companies (Raxuter Chemicals, Athos Chemicals) and executives, including Bhavesh Lathiya, for conspiracy to traffic fentanyl precursors. Broader context: The U.S. has been pushing “source countries” (like China, Mexico, India) to curb illicit flows of precursor chemicals under several executive orders.
- Significance: Reflects India-U.S. cooperation in counter-narcotics, but also raises concerns for Indian pharma exports’ global image.
Key Facts / Prelims Pointers
- Fentanyl: A synthetic opioid, 50x more potent than heroin, declared the “deadliest drug threat in the U.S.” by the DoJ & DEA.
- Legal instruments:
- UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988 – India is a signatory.
- Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985 – domestic law regulating precursors.
- India’s role: One of the largest producers/exporters of bulk drugs and precursors; companies face international scrutiny.
- U.S. Actions: Visa denials, executive orders, indictments, “name-and-shame” diplomacy. Precedent: Similar pressure was earlier applied on China, accused of being the primary source of fentanyl.
Critical Analysis Opportunities/Pros
- Strengthens India-U.S. counter-narcotics cooperation. Pushes Indian firms towards higher compliance, improving global pharma credibility.
- Aligns with India’s NDPS Act commitments and UN conventions.
Challenges/Cons
- Risk of U.S. overreach & unilateral action affecting bilateral relations.
- Reputational damage to India’s pharmaceutical sector.
- Possible misuse of visa restrictions as a tool of diplomatic coercion.
Long-term Implications
- Increased U.S. monitoring of Indian pharma exports. Potential tightening of Indian export regulations & customs scrutiny.
- Greater burden on regulatory bodies (Narcotics Control Bureau, CDSCO).
Way Forward
- Strengthen domestic enforcement: Digital tracking of precursor chemicals (like e-labs, blockchain monitoring).
- Enhance bilateral cooperation: India-U.S. joint task force on precursors (similar to India-UAE gold smuggling task force).
- Corporate accountability: Mandatory compliance audits for chemical exporters.
- International best practices: Adopt EU-style “early warning systems” for precursor misuse.
- Capacity building: Training customs, NCB, and pharma companies on compliance.
U.S TO REVOKE WAIVER ON CHABAHAR PORT SANCTIONS
KEY HIGHLIGHTS
- Why important? Chabahar port is India’s strategic investment in Iran, intended as a gateway to Afghanistan and Central Asia, bypassing Pakistan. Revocation of U.S. sanctions waiver (effective Sept 29, 2025) threatens India’s connectivity plans.
- Trigger: U.S. “maximum pressure” policy on Iran under Trump 2.0, with Secretary of State Marco Rubio announcing the waiver withdrawal.
- Historical background:
- 2016: India signed MoU with Iran to develop Shahid Beheshti terminal at Chabahar.
- 2018: U.S. granted sanctions waiver under Iran Freedom and Counter-Proliferation Act (IFCA), recognising Afghanistan’s reconstruction needs.
- 2024: India signed a 10-year lease agreement for managing the port.
Key Facts/Data (Prelims Pointers)
- India spent ₹200 crore out of ₹400 crore allocation on Chabahar since 2016.
- 2023-24: Vessel traffic ↑ 43%, container traffic ↑34%.
- Chabahar waiver was linked to Afghanistan reconstruction assistance under IFCA.
- Earlier, India:
- Stopped importing oil from Iran (2018) & Venezuela (2019).
- Facing U.S. penalties on Russian oil trade in 2025.
- U.S. tariff on Indian goods: 25% + 25% reciprocal tariff.
Critical Analysis Opportunities/Pros
- Strengthens India–Iran ties (scope for rupee–rial trade, energy deals).
- Signals India’s need for independent regional policy (strategic autonomy). Pushes India toward multilateral mechanisms (INSTC, BRICS, SCO).
Challenges/Cons
- Financial losses: ₹200+ crore investment, lease agreement at risk.
- Hampers India’s access to Afghanistan (especially post-Taliban resurgence).
- Strains with U.S. (already tense over oil, trade tariffs). China may step into Chabahar if India retreats.
Long-term implications
- India’s “connectivity strategy” in Central Asia weakened.
- Test of India’s balancing act between U.S., Iran, Russia.
- Push toward de-dollarisation, regional trading blocs.
Way Forward
- Explore local currency/rupee-rial trade mechanisms to bypass sanctions.
- Deepen INSTC (International North-South Transport Corridor) with Russia, Iran, Central Asia.
- Engage with EU/Eurasian countries that support Iran engagement.
- Enhance multilateral diplomacy via BRICS+, SCO to counter unilateral sanctions.
- Strengthen domestic refining & energy diversification to reduce vulnerability
EQUALISING PRIMARY FOOD CONSUMPTION IN INDIA
KEY HIGHLIGHTS
Context & Backgroud
- Trigger: The NSS Household Consumption Survey (2024), released after >10 years, enabled new poverty estimates.
- World Bank (2025) Report: “Poverty and Equity Brief: India” estimated extreme poverty (below $2.15/day) fell from 16.2% in 2011-12 to 2.3% in 2022-23, suggesting near elimination of extreme poverty.
- Counterview: Scholars propose a “thali index” (food- based metric) to capture actual food affordability, showing deeper food deprivation despite declining official poverty.
- Policy Debate: Questions about PDS effectiveness, food subsidy targeting, and the need to diversify beyond cereals (towards pulses/proteins).
Key Facts/Data (Prelims Pointers)
- Thali cost (Crisil estimate): ₹30 (rice, dal, roti, curd, vegetables, salad).
- Food deprivation (2023-24):
- Rural: 50% cannot afford ≥2 thalis/day.
- Urban: 20% cannot afford ≥2 thalis/day.
- With PDS adjustment: Deprivation falls to 40% (rural), 10% (urban).
- PDS subsidy distribution: In rural India, richest 90– 95% fractile gets 88% of subsidy received by poorest 0–5% fractile → non-progressive targeting.
- Cereals consumption: Almost equal across poorest and richest households; ~10% of household expenditure.
- Pulses consumption: Poorest consume half of what richest do → indicates protein inequality.
- Policy expansion (Jan 2024): Free cereals to 80 crore people → high fiscal cost, but limited impact on nutrition security.
Critical Analysis Pros/Opportunities
- Near elimination of extreme poverty (WB) → global recognition.
- PDS success in cereal equalisation →ensures basic staple security.
- Data revival via NSS 2024 → improved evidence-based policymaking.
Challenges/Concerns
- Thali affordability gap → food deprivation under- recognised.
- PDS inefficiency: Leakages, poor targeting, subsidy diversion to non-poor.
- Nutritional poverty: Cereal-heavy PDS ignores protein/micronutrient needs.
- Fiscal strain: Large subsidies (80 crore beneficiaries) unsustainable.
Long-term Implications
- If left unreformed, India risks a paradox: low official poverty but high nutritional deprivation.
- Over-subsidisation of cereals may distort agriculture, ignoring protein-rich crops.
Way Forward
- Restructure PDS: Target poorest → eliminate subsidy to non-needy (upper fractiles).
- Diversify PDS basket: Expand to pulses, millets, fortified foods.
- Nutrition-sensitive poverty measures: Move beyond calorie-counting → focus on balanced diet.
- Smart subsidies: Use direct benefit transfers (DBT) for higher-income groups.
- Leverage technology: Aadhaar-enabled ration cards, portability under One Nation One Ration Card.
- International best practice: Brazil’s Bolsa Família – cash transfers linked to nutrition/education.
INDIA NEEDS MORE FOCUS TO REACH SDG3,A CRICIAL GOAL
KEY HIGHLIGHTS
Context & Background
- Why important?
- India secured its best-ever rank (99/167) in the SDG Index 2025 (up from 109 in 2024).
- Health & well-being (SDG 3) remains a critical lagging area, despite progress in access to services and infrastructure.
- Trigger: Release of the Sustainable Development Report 2025 (UN SDSN), measuring progress of countries on 17 SDGs.
- Historical/Institutional background:
- India’s commitment to UN 2030 Agenda for Sustainable Development (2015).
- NITI Aayog SDG India Index (since 2018) tracks national/state progress.
- Health sector reform efforts under National Health Mission (2005), Ayushman Bharat (2018), National Health Policy 2017.
Key Facts/Data (Prelims Pointers)
- India rank in SDG Index 2025 → 99/167 (best so far).
- Maternal Mortality Ratio (MMR): 97 deaths/100,000 live births (Target: 70 by 2030). Under-5 Mortality Rate: 32/1000 live births (Target: 25).
- Life Expectancy: 70 years (Target: 73.63). OOPE (Out-of-Pocket Expenditure): 13% of household consumption (Target: 7.83%).
- Immunisation coverage: 93.23% (Target: 100%). WHO World Health Statistics 2022: Strong primary care → better long-term outcomes.
- Lancet Digital Health Commission: Digital platforms improved maternal & vaccination tracking. Only 17% of global SDG targets are on track for 2030.
Static Linkages
- Constitution:
- Art. 21 (Right to Life) → includes right to health (judicial expansion).
- Art. 47 (Directive Principles) → duty of State to improve public health.
- Schemes/Policies: Ayushman Bharat, Janani Suraksha Yojana, Mission Indradhanush, POSHAN Abhiyaan. Reports/Indices: UN SDG Report, WHO World Health Statistics, NITI Aayog SDG India Index.
- Global Practices: Finland’s 1970s health reforms, Japan’s compulsory school health education.
Critical Analysis
- Opportunities/Pros:
- Improved SDG ranking boosts India’s global credibility.
- Digital health tools (telemedicine, health records) bridge rural-urban gap.
- School-based health education can yield intergenerational dividends.
- Challenges/Cons:
- Persisting gaps in MMR, child mortality, OOPE burden.
- Infrastructure deficit in primary healthcare, shortage of doctors.
- Cultural stigma, lack of awareness → underutilisation of services.
- Long-term Implications:
- Without corrective action, India may miss SDG 3 targets by 2030.
- Weak health outcomes undermine economic productivity & demographic dividend.
- Risk of widening inequality between urban/rural & rich/poor communities.
Way Forward
- Universal Health Insurance with focus on equity →reduce catastrophic OOPE.
- Strengthen Primary Healthcare → more PHCs, integration across primary–secondary–tertiary levels. Digital Health Expansion → telemedicine, AI-driven diagnostics, integrated records.
- School Health Education → structured curriculum on nutrition, hygiene, reproductive & mental health.
- Global Best Practices:
- Finland (school-based reforms),
- Japan (compulsory health education),
- Thailand (Universal Coverage Scheme).
HOLISTIC APPROACH
KEY HIGHLIGHTS
Context & Bachground
- News Trigger: The Supreme Court of India hinted at prosecuting farmers caught burning crop residue (stubble burning) before winter sowing.
- Historical Background:
- Post-Green Revolution, paddy-wheat cropping system became dominant in Punjab-Haryana due to MSP assurance → resulting in short turnaround time (Sept-Oct harvest to Nov sowing).
- Farmers burn paddy stubble to quickly clear fields.
- Air pollution crisis in North India (Delhi NCR “gas chamber” episodes every Oct-Nov) linked to stubble burning.
- Institutional Response: Creation of the Commission for Air Quality Management (CAQM) in 2020 as a statutory body to coordinate multi-state air quality management.
Key Facts/Data (Prelims Pointers)
- Contribution to Air Pollution: Stubble burning accounts for 30–40% of PM2.5 concentration in NCR during peak season (SAFAR, IIT Kanpur studies).
Static Linkages
- Extent: Punjab + Haryana contribute ~75–80% of crop residue burning in India.
- Legislation:
- Air (Prevention and Control of Pollution) Act, 1981. Environment Protection Act, 1986 (basis for CAQM).
- Section 188 IPC, Disaster Management Act (sometimes invoked against farmers).
- Schemes:
- Crop Residue Management (CRM) Scheme: 80% subsidy for Happy Seeder, Super Straw Management System.
- PUSA Bio-decomposer (IARI innovation). International Reference: China phased out open field burning by enforcing strict bans + providing alternative uses for crop residue (bioenergy, paper, fodder).
Critical Analysis Opportunities / Pros
- Tackling stubble burning can drastically improve NCR’s winter AQI.
- Alternative technologies (Happy Seeder, bio- decomposer) provide sustainable solutions.
- Crop diversification away from water-guzzling paddy can reduce groundwater stress.
Challenges / Cons
- Economic compulsion: farmers are debt-ridden; burning is cheapest option.
- Weak enforcement: states hesitate to act against farmers due to political backlash.
- CAQM criticized as politically timid, lacking autonomy. Short sowing window (10–15 days) makes alternatives less attractive.
Long-Term Implications
- Criminalizing farmers risks alienation and farmer unrest. If properly managed, residue could become a bio- economy resource (energy, fodder, packaging).
- Trust deficit between farmers and institutions may deepen if coercive measures dominate.
Way Forward
- Incentivization > Penalization – Direct cash support for residue management.
- Technology Push – Mass adoption of Happy Seeder, Turbo Happy Seeder, and bio-decomposers.
- Crop Diversification – Shift away from paddy to maize, pulses, millets (aligning with International Year of Millets 2023 momentum).
- Strengthen CAQM – More autonomy, scientific transparency, and accountability.
- Learning from Global Best Practices – China (strict enforcement + alternative industry), EU (subsidies for crop residue-to-bioenergy projects).
- Community-based Models – Village cooperatives renting machinery instead of individual ownership.
A BIRTHDAY CALL
KEY HIGHLIGHTS
- The satirical conversation reflects India–U.S. bilateral tensions, particularly on punitive tariffs imposed by the U.S. on Indian goods.
- It echoes larger debates: India’s strategic balancing in the Russia–Ukraine war, relations with Israel, and domestic opposition accusations against Modi (vote manipulation).
- The text also parodies Trump’s characteristic style of claiming victories (tariffs, lawsuits, foreign policy).
Key Facts / Prelims Pointers
- U.S.–India Trade: U.S. withdrew India from the GSP (Generalized System of Preferences) in 2019. Tariffs Issue: India imposed retaliatory tariffs on
- U.S. goods (almonds, apples, walnuts).
- Russia–Ukraine: India continues strategic neutrality; imports discounted Russian oil.
- TikTok Ban: India banned TikTok in 2020 under Section 69A of the IT Act, citing data sovereignty & national security.
- Quad: A strategic grouping of India, U.S., Japan, Australia — counterweight to China.
- Demography Debate: India’s population ~1.4 billion (2023), world’s largest.
- Foreign Policy Doctrine: India emphasizes multi- alignment and strategic autonomy.
Static Linkages
- Polity: Article 51 — India’s commitment to international peace.
- Economy: WTO rules on tariffs; India’s GSP removal (2019).
- IR: NAM principles, India’s traditional stance on neutrality.
- Geography: Energy security (Russian oil), strategic locations (Quad in Indo- Pacific).
Critical Analysis Opportunities / Pros:
- India’s population = large market, bargaining leverage.
- Neutral stance allows dialogue with both West & Russia.
- Growing U.S.–India convergence via Quad.
Challenges / Cons:
- U.S. tariffs harm Indian exporters (agri, steel, textiles).
- Pressure to align with U.S. on Russia undermines autonomy.
- Opposition allegations domestically weaken image.
- U.S. skepticism on immigration/demography.
Long-term Implications:
- If tariffs remain, friction may stall economic partnership.
- India balancing Russia-U.S. is delicate; risks sanctions.
- Domestic democratic image impacts global credibility.
Way Forward
- Resume U.S.–India trade negotiations (restore GSP, reduce tariff wars).
- Strengthen Quad cooperation beyond security (tech, supply chains).
- Promote multilateral reforms (WTO dispute settlement, UN reform).
- India must preserve strategic autonomy while deepening ties with multiple poles.
- Counter disinformation & polarization domestically to maintain democratic credibility.
EU’S OVERTURE
KEY HIGHLIGHTS
- The EU has released a “Comprehensive Strategic Agenda” on India, signaling a shift from “mutual neglect” to deep engagement.
- Triggered by:
- Russia’s assertiveness (Ukraine war).
- China’s aggressive economic policies.
- Erosion of U.S. alliances under Trump.
- EU seeks to diversify global partnerships, while India seeks to reduce overdependence on China & the U.S. Historically:
- EU-India ties often underperformed despite strong potential.
- India traditionally viewed Europe through the Russia prism, limiting engagement.
Key Facts / Prelims Pointers
- EU = India’s 2nd most important commercial partner (after the U.S.).
- Bilateral trade:
- Goods: €120 billion
- Services: €60 billion
- India’s share in EU’s total trade: <2.5%.
- Focus: Free Trade Agreement (FTA) – reduce tariff & non-tariff barriers.
- Areas of cooperation:
- Technology & manufacturing: AI, semiconductors, space, startups.
- Security & Defence: maritime, cyber, counterterrorism, defence industry.
- Tensions: India’s oil imports & defence ties with Moscow vs EU’s Russia sanctions.
Critical Analysis Opportunities / Pros
- Diversifies India’s economic partners → reduces dependence on China/US.
- Access to EU’s research, regulations, green & digital tech.
- Defence modernisation with EU’s advanced tech. Enhances India’s global standing as indispensable partner in multipolar order.
Challenges / Cons
- Trade imbalance → EU’s demand for tariff reduction vs India’s protectionism.
- Divergence on Russia-Ukraine war.
- EU’s stringent standards (environmental, labour, data protection) → compliance burden for Indian exporters.
- Institutional delays – EU policymaking is consensus- driven, slow.
Long-Term Implications
- India-EU FTA could be a gamechanger for $200+ billion trade flows.
- Strategic balance between Russia, EU, and U.S. →complex diplomatic juggling.
- Could catalyze India’s green & digital transformation if partnerships are effectively leveraged.
Way Forward
- Fast-track FTA negotiations with focus on mutual market access + safeguards.
- Balance ties with Russia & EU → avoid zero-sum approach.
- Promote EU-India Innovation Hubs for AI, semiconductors, space tech.
- Collaborate on Indo-Pacific maritime security. Learn from EU’s regulatory models (e.g., GDPR for data, ETS for carbon) for Indian reforms.
FED’S DUAL MANDATE CONUNDRUM
KEY HIGHLIGHTS
- On Wednesday (Sept 2025), the Federal Reserve (US Central Bank) cut interest rates by 25 basis points (0.25%).
- The decision follows months of tension between the Fed and US President Donald Trump, who accused Chair Jerome Powell of acting “too late.”
- Unprecedented controversy: Trump fired Lisa Cook (Governor, Fed Board)—courts reinstated her; Senate confirmed Stephen Miran (linked to tariff policies), raising concerns about Fed independence.
- The Fed operates under a dual mandate:
- Maximum employment
- Stable prices (inflation control)
Key Facts / Prelims Pointers
- Current US situation (Aug 2025):
- Unemployment rising despite high inflation (stagflation-like conditions).
- Inflation: ~4.3%
- Fed’s SEP (Summary of Economic Projections): Growth to improve slightly; inflation, unemployment unchanged.
- Historical mandate: Fed independence considered critical to global trust in the US dollar (seen as world’s safest reserve currency after gold).
- Global impact:
- Fed’s rate changes affect global stock markets, capital flows, and lending costs.
- India’s monetary policy is set by RBI, but Fed decisions directly affect rupee- dollar exchange rates, FPI inflows/outflows, and bond yields.
Static Linkages
- Economy (Static) – Monetary policy tools (repo, reverse repo, OMO, CRR, SLR in India).
- Polity (Static) – Importance of institutional autonomy (compare RBI’s independence in India).
- IR – Global financial interdependence, dollar’s reserve currency role.
Critical Analysis Opportunities/Pros
- Rate cut may reduce borrowing costs, spur consumption, and support slowing job creation.
- Shows Fed’s willingness to use risk management approach to balance goals.
Challenges/Cons
- Risks worsening inflationary pressures while unemployment remains high.
- Undermining Fed’s independence due to Trump’s interference damages global investor trust.
- Tariffs and immigration policies, beyond Fed’s control, worsen inflation & labor shortages.
Long-term Implications
- Erosion of trust in Fed could weaken the US dollar’s dominance in global markets. Potential precedent of political intervention in central banks worldwide.
- Increased volatility in emerging market economies like India due to capital flight.
Way Forward
- Strengthen legal safeguards for central bank independence.
- Improve transparency in Fed’s decision- making (wider publication of minutes, projections).
- Adopt coordinated policy response (fiscal + monetary) to tackle stagflation.
- India can learn from this episode: RBI autonomy must be preserved to maintain investor confidence