SC Reject Varma Plea To Panel | Budget 2026-27 To Keep The Growth | On Mute | India-Japan Ties De-Risk Globe | Multilateralism Ala Carte, The Washington Way | India-EU FTA: Time Has Come
SC REJECT VARMA PLEA TO PANEL
- The Supreme Court of India upheld the Lok Sabha Speaker’s decision to constitute an inquiry committee under the Judges (Inquiry) Act, 1968 for a removal motion against a High Court judge.
- The Court rejected the argument that safeguards for judicial independence can stall or paralyse the constitutional removal process.
- The case arose from allegations of judicial misbehaviour and conflicting outcomes of removal notices in the two Houses of Parliament.
Key Points
- Judges (Inquiry) Act, 1968 governs investigation into misbehaviour/incapacity of SC and HC judges.
- First proviso to Section 3(2) applies only when both Houses admit removal motions on the same day.
- Rejection of a motion in one House does not bar the other House from proceeding.
- Each House of Parliament enjoys procedural autonomy.
- Deputy Chairman of Rajya Sabha can exercise Chairman’s statutory functions during vacancy.
- Inquiry committee is recommendatory; final removal rests with Parliament.
- Reputational injury alone cannot invalidate a constitutionally sanctioned process.
Static Linkages
- Article 124(4): Removal of Supreme Court judges.
- Article 217(1)(b): Removal of High Court judges.
- Article 121: Restriction on parliamentary discussion of judges’ conduct (except removal).
- Doctrine of Separation of Powers: Checks and balances between Legislature and Judiciary.
- Judicial Independence vs Accountability (NCERT + Laxmikanth).
Critical Analysis
- Ensures accountability of higher judiciary without procedural deadlock.
- Prevents misuse of statutory safeguards to delay constitutional processes.
- Reinforces autonomy of Parliament vis-à-vis internal procedures.
- Raises concern of possible politicisation of judicial removal motions.
- Highlights need to balance institutional independence with public accountability.
Way Forward
- Clarify ambiguities in Judges (Inquiry) Act through legislative refinement.
- Strengthen internal judicial complaint and ethics mechanisms.
- Ensure time-bound and transparent inquiry processes.
- Develop parliamentary conventions to avoid partisan misuse.
- Reinforce public trust through institutional accountability frameworks.
BUDGET 2026-27 TO KEEP THE GROWTH
KEY HIGHLIGHTS
- India remained economically resilient in 2025 despite:
- Global slowdown
- High trade protectionism (e.g., steep U.S. tariffs)
- Growth supported by:
- Public capital expenditure
- Structural reforms
- Policy continuity
- Government emphasised reforms as a continuous national mission
- Budget 2026–27 seen as critical to:
- Sustain growth
- Strengthen domestic demand
- Enhance competitiveness
Key Points
- Prioritise growth-enhancing capital expenditure while maintaining fiscal consolidation
- Continue defence modernisation and indigenisation
- Increase defence capital outlay share to ~30%
- Enhance DRDO funding for indigenous R&D
- Expand defence industrial corridors to eastern India
- Strengthen defence exports
- Private sector contributes ~65% of defence exports
- Establish Defence Export Promotion Council
- Target: ₹50,000 crore defence exports by 2028–29
- Secure critical minerals for energy transition and advanced manufacturing
- Strengthen National Critical Mineral Mission
- Introduce tailings recovery programme
- Provide dedicated financing support
- Boost exports competitiveness
- Increase allocation under RoDTEP
- Address inverted duty structures
- Improve technology and services ecosystem
- Clarify Transfer Pricing norms for Global Capability Centres
- Promote drone sector
- Increase PLI outlay
- Create dedicated
- Drone R&D fund
- Deepen corporate bond markets
- Expand issuer base
- Encourage insurance, PF investment in bonds, InvITs and REITs
- Address tax dispute pendency
- Reduce backlog at CIT(A) level
- Introduce dual-track dispute resolution
- Fill vacancies
- Improve trade facilitation
- Relax AEO certification norms for new firms
- Continue customs tariff rationalisation
Static Linkages
- Public Capex multiplier – Economic Survey
- Defence indigenisation – Atmanirbhar Bharat
- Critical minerals – National Mineral Policy, Energy transition
- Corporate bond market – Financial sector reforms
- Customs duties – Indirect tax reforms
- Tax dispute resolution – Ease of Doing Business
Critical Analysis
- Positives
- Strengthens domestic demand drivers
- Enhances strategic autonomy
- Crowds in private investment
- Improves export competitiveness
- Reduces dependence on banks for credit
- Challenges
- Limited fiscal space
- Execution capacity constraints
- Regulatory and tax uncertainty
- Environmental concerns in mineral extraction
Way Forward
- Focus on quality of expenditure Ensure policy certainty
- Strengthen institutional capacity
- Align industrial, trade and tariff policies
- Balance growth with sustainability
ON MUTE
KEY HIGHLIGHTS
What is happening?
- The U.S. is increasingly using unilateral coercive measures (tariffs, sanctions, regime- change threats) instead of multilateral mechanisms.
- Under Donald Trump, the U.S. has: Intervened in Venezuela.
- Threatened sanctions and military action against Iran.
- Proposed secondary sanctions (penalising third countries).
- India is directly affected due to:
- Energy imports (Iran/Russia).
- Strategic investment in Chabahar Port.
- Trade and technology dependence on the U.S.
Why is this important for India?
- Secondary sanctions mean India can be punished even if it is not violating international law, but merely trading with sanctioned countries.
- This directly impacts:
- Energy security – higher costs, reduced suppliers.
- Strategic connectivity – Chabahar is key to Afghanistan & Central Asia.
- Foreign policy credibility – silence weakens India’s leadership image.
- The issue arises when India seeks a larger global role (e.g., hosting BRICS+).
Why is India responding cautiously?
- India wants to:
- Avoid deterioration in India-U.S. relations.
- Keep trade and technology cooperation alive.
- Protect Indian diaspora and students abroad.
- The government believes:
- Open confrontation may invite economic retaliation.
- Quiet diplomacy may yield better short-term outcomes.
What is the core problem with this approach?
- Strategic autonomy is diluted if India avoids defending its interests.
- Accepting extra-territorial sanctions:
- Normalises violation of international law.
- Encourages future pressure.
- Past experience (2019 oil import cuts) shows:
- Compliance did not guarantee long-term benefits.
- India incurred economic and strategic losses.
Static concepts involved
- Strategic Autonomy: Freedom to take independent decisions.
- UN Charter: Sovereignty and non-intervention.
- WTO principles: Non-discrimination in trade.
- Energy security: Diversification and affordability.
- Ethics in IR: Balancing national interest with global justice.
What should India ideally do?
- Assert its interests without abandoning partnerships.
- Use:
- UN, BRICS, SCO to oppose unilateral sanctions.
- Legal and diplomatic tools instead of silence.
- Protect:
- Legitimate trade.
- Strategic infrastructure projects.
- Balance pragmatism with principle.
INDIA, JAPAN TIES DE-RISK GLOBE
KEY HIGHLIGHTS
Context of the News
- External Affairs Minister S. Jaishankar met visiting Japanese Foreign Minister Toshimitsu Motegi in New Delhi.
- 18th India–Japan Strategic Dialogue co- chaired by the two Foreign Ministers.
- Decision to launch a new AI Dialogue led by Foreign Ministries (JS–DG level).
- Decision to set up a Joint Working Group (JWG) on Critical Minerals.
- Focus on economic security, resilient supply chains, Indo-Pacific cooperation, and multilateral coordination.
- Discussions aligned with shared vision of a Free and Open Indo-Pacific (FOIP) and the role of Quadrilateral Security Dialogue.
Key Points
- AI Dialogue:
- New institutional mechanism for cooperation in artificial intelligence governance, standards, and strategic applications.
- Critical Minerals JWG:
- Cooperation on rare earth elements and critical minerals essential for clean energy, semiconductors, EVs, and defence.
- Economic Security Initiative:
- Emphasis on public–private cooperation and de-risking supply chains.
- Second Economic Security Dialogue scheduled for first half of 2026.
- Strategic Convergence:
- Shared democratic values, maritime security interests, and Indo-Pacific outlook.
- Multilateral Cooperation:
- Coordination in Quad, regional stability, and global governance reforms.
Static Linkages
- India–Japan Special Strategic and Global Partnership (MEA): long-term cooperation in defence, infrastructure, technology, and people-to-people ties.
- Free and Open Indo-Pacific (FOIP): Concept articulated by Japan; aligns with India’s SAGAR vision (Security and Growth for All in the Region).
- Critical Minerals: Identified by Ministry of Mines & NITI Aayog as strategic inputs for energy transition and Atmanirbhar Bharat.
- Artificial Intelligence Governance: Linked to India’s National Strategy for AI (NITI Aayog – “AI for All”).
- Economic Security: Covered in Economic Survey (supply chain resilience, de-risking vs de-globalisation).
Critical Analysis
- Pros
- Enhances strategic autonomy through diversified supply chains.
- Reduces over-dependence on single- country sources of critical minerals.
- Positions India in global AI governance debates early.
- Strengthens Quad’s economic and technological pillar.
- Challenges / Concerns
- India’s limited domestic processing capacity for rare earths.
- Regulatory and ethical gaps in AI governance.
- Coordination challenges between government and private sector.
- Geopolitical pushback from countries dominating mineral supply chains.
Way Forward
- Fast-track domestic exploration and processing under National Mineral Policy.
- Align AI Dialogue outcomes with Digital Public Infrastructure (DPI) model.
- Strengthen India–Japan industrial collaboration in semiconductors and EVs.
- Institutionalise Quad-wide cooperation on critical minerals.
- Invest in skill development and R&D for AI and deep-tech sectors.
MULTILATERALISM ALA CARTE, THE WASHINGTON WAY
KEY HIGHLIGHTS
Context of the News
- US announced large-scale withdrawal/disengagement from multilateral institutions, including several UN-system bodies.
- Formalisation of “multilateralism à la carte”: selective, interest-based participation.
- Continuity with earlier exits/re-entries, making commitments reversible political choices.
- Linked to US National Security Strategy narrowing geographic and institutional responsibilities.
Core Features of the US Approach
- Exit: Withdrawal from institutions/treaties imposing constraints.
- Obstruction: Staying inside institutions but blocking outcomes (e.g., dispute settlement).
- Bypass: Preference for minilateral/coalition- based arrangements over universal forums.
- Conditionality: Engagement only when aligned with sovereignty and national interest.
Key Implications for Global Governance
- Weakening of rules-based multilateral order.
- Reduced predictability, trust, and reciprocity among states.
- Fragmentation of standards; rise of parallel regimes.
- Greater uncertainty for long-term collective action (climate, health, trade).
Impact on International Institutions
- Erosion of legitimacy when principal architect disengages.
- Operational paralysis in consensus-based bodies.
- Shift from universalism to selective participation.
- Increased dependence of smaller states on powerful patrons.
Implications for India
- Weakening of enforceable trade rules and dispute resolution.
- Uncertainty in climate finance and technology standards.
- Opportunity for leadership, but higher coordination costs.
- Need to balance minilateral gains with universal norm protection.
Static Linkages
- UN system: role in collective security and cooperation (NCERT Polity).
- WTO: rules-based trade and dispute settlement (Indian Economy).
- Climate regimes: framework-based governance (NCERT Environment).
- Post-WWII order: institutions converting power into legitimacy (World History/IR).
Way Forward
- Defend universality in critical areas (climate, health, trade).
- Lead reform-oriented coalitions within multilateral forums.
- Use minilateralism as a complement, not substitute.
- Strengthen Global South coordination and norm-setting capacity.
INDIA-EU FTA: TIME HAS COME- India and the European Union are close to concluding a Comprehensive Free Trade Agreement (FTA) after prolonged negotiations.
- Around 20 out of 24 negotiating chapters have reportedly been finalised.
- The agreement is likely to be announced during the EU leadership visit to India around Republic Day.
- Once concluded, it will become India’s largest FTA in terms of economic size.
- The agreement gains importance amid slow progress in India–US trade talks.
Key Points
- European Union is one of India’s largest trading partners.
- India–EU merchandise trade: ~€120 billion (2024).
- India–EU services trade: ~€59.7 billion (2023). EU is a major source of FDI inflows into India.
- Sensitive sectors in negotiations:
- Automobiles
- Wines and spirits
- Government procurement
- Agriculture-related issues placed outside the final deal (India’s red lines).
- EU’s Carbon Border Adjustment Mechanism (CBAM) to impact Indian exports:
- Steel
- Aluminium Cement
- Fertilisers
- India’s merchandise exports: $330.29 billion (Apr– Dec 2025), ~2.4% growth.
Static Linkages
- External Sector: Balance of Trade, Export diversification (NCERT, Economic Survey).
- International Trade: Free Trade Agreements, Regional Trade Blocs (Class XI Economics).
- Climate Policy: Market-based mechanisms for emission reduction (Environment NCERT).
- FDI & Investment Treaties: Role in growth and technology transfer (India Year Book).
- Comparative Advantage Theory: Basis of trade liberalisation
Critical Analysis
- Advantages
- Expands access to one of the largest consumer markets globally.
- Boosts exports of goods and services, especially IT and professional services.
- Encourages high-quality European investments.
- Strengthens India’s integration into global value chains.
- Enhances India’s strategic leverage amid global trade fragmentation.
- Concerns / Challenges
- CBAM acts as a non-tariff barrier against developing countries.
- Increased competition may hurt MSMEs and domestic manufacturing.
- Limited progress on movement of skilled Indian professionals.
- High EU standards increase compliance and production costs.
- Risk of trade diversion affecting small producers.
Way Forward
- Seek CBAM exemptions/transition support citing CBDR principle.
- Accelerate green industrial transition through incentives and technology upgrades.
- Strengthen MSME competitiveness via export- linked support schemes.
- Push for mutual recognition of qualifications for skilled professionals.
- Maintain parallel momentum in India–US trade negotiations.