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19 September 2025

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

Context & Background

  • 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

Context & Background

  • 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

Context & Backgroud

  • 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

Background

  • 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

Context & Background

  • 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

Context & Background

  • 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:
  1. Maximum employment
  2. 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