India -U.S Trade Relations
KEY HIGHLIGHTS
Background of India–U.S. Trade Relations
- Bilateral Trade Volume (2024–25): India–U.S. trade in goods & services has crossed $200 billion (U.S. is India’s largest trading partner).
Nature of Trade:
- India exports: IT services, pharmaceuticals, textiles, gems & jewellery, engineering goods.
- India imports: Crude oil, defense equipment, aircraft, and technology-related products.
- Trade Surplus: India enjoys a trade surplus with the U.S.
Key Issues in the Current Negotiations
1.Tariffs:
- U.S. imposed 50% tariffs on certain Indian exports.
- India has retaliated in the past (on U.S. almonds, apples, etc.).
2.Russian Oil Imports:
- India imports ~2 million barrels per day from Russia (August 2025).
- U.S. wants India to cut Russian oil purchases due to the Ukraine war.
- India maintains it as a sovereign decision based on energy security & affordability.
3.FTA (Free Trade Agreement):
- Negotiations have been on & off since 2018.
- Aim: reduce tariffs, increase market access for goods, services, and investments.
- Fall 2025 is the new deadline for a deal (as per leaders’ commitment)
4.Geopolitical Factors:
- Operation Sindoor ceasefire issue (conflicting narratives between India & U.S.).
- Wider U.S. expectations: India to align more with Western bloc policies (Ukraine, Indo-Pacific strategy).
High-Level Engagements
- Diplomatic Outreach: Indian Ambassador met 30+ U.S.
- Representatives & 10 Senators in one month.
- Ministerial Meetings: Commerce Minister Piyush Goyal emphasized a “mutual” approach to trade.
- Lawmakers’ Visit: 3 U.S. lawmakers, including Brian Fitzpatrick (who earlier pushed for sanctions on India), visited New Delhi.
- Secretary of State Marco Rubio: Engaged in talks on resuming FTA negotiations.
Significance Of India-U.S Trade Talks
1.Strategic Dimension:
- U.S. is India’s largest trading partner.
- Defense, Space & Technology cooperation is continuing despite friction.
2.Economic Dimension:
- FTA could reduce tariffs and boost exports of IT, textiles, and pharmaceuticals.
- Helps India integrate into global value chains (GVCs).
3.Energy Security:
- India depends on affordable crude from Russia.
- U.S. pressure vs. India’s sovereign energy policy is a point of friction
4.Geopolitics:
- Outcome of Quad Summit & APEC meetings (where Trump may meet Xi Jinping) could affect negotiations.
India–U.S. Trade Facts:
- U.S. is India’s largest export destination (approx. 17% of India’s exports).
- India’s major exports to U.S.: IT services (~$60 billion annually), pharma, engineering goods.
- U.S. FDI in India: $60+ billion (cumulative), mostly in IT, e-commerce, and manufacturing.
International Trade Theory (Static):
- WTO principles: MFN (Most Favored Nation), Tariff Reduction, Non-Discrimination.
- FTA vs. PTA: FTA = broader tariff reduction; PTA = limited scope.
India’s Trade Strategy:
Nepal Witnesses Violent Protest
Why in News?
- Nepal witnessed violent protests led by Gen-Z youth, demanding an end to corruption and misgovernance. Over 30 deaths and 1,000+ injured.
- Army took control after PM K.P. Sharma Oli resigned.
- Leadership crisis emerged among protestors – debates on interim administration.
Background of Nepal’s Political Instability
- Nepal transitioned from monarchy → republic in 2008.
- Adopted a new Constitution in 2015, declaring Nepal a federal democratic republic.
- Since then, Nepal has faced:
- Frequent government changes (over 13 PMs in 15 years).
- Constitutional disputes between judiciary, parliament, and executive.
- Ethnic and regional grievances (e.g., Madhesi protests).
News Current Develompment (2025 Crisis)
1.Protests & Violence
- Gen-Z youth mobilised via digital platforms like Discord.
- Slogans: “End corruption and misgovernance.”
- Government buildings set ablaze, major unrest in Kathmandu.
2. Army Intervention
- Army deployed after President Ram Chandra Poudel consulted military leadership.
- Night curfew and restrictive orders imposed.
3.Leadership Vacuum
4.Law & Order Collapse
- Prison break incidents: Over 4,500 inmates fled from two prisons.
- Reports of arson and injuries to political leaders’ families.
Static Data Political System To Nepal
- Type: Federal Democratic Republic. Constitution adopted: 2015.
- Parliament: Bicameral → House of Representatives (275 seats) + National Assembly (59 seats).
- President: Head of State.
Prime Minister: Head of Government.
Army’s role: Under civilian control, but historically influential during crises.
India Nepal Relations
- Treaty of Peace and Friendship (1950) – basis of open border & defence cooperation.
- Economic ties: India is Nepal’s largest trade partner & energy supplier.
- Economic ties: India is Nepal’s largest trade partner & energy supplier.
- Nepal is a buffer state between India & China. Political instability in Nepal directly affects
India’s border security & migration.
Water resources: Shared rivers (Kosi, Gandak, Mahakali) → cooperation + disputes.
SC FLAG GOVERNORS SITTING ON BILLS FOR YEARS AS CENTRAL GOVT. TERMS DISPUTE a'FALSE ALARM'
What in New?
- Chief Justice of India B.R. Gavai, leading a five- judge Presidential Reference Bench, raised concern about Governors delaying assent to Bills for years.
- The Union Government termed such disputes (raised by States like Tamil Nadu and Kerala) as a “false alarm.”
- The case follows the April 2025 Supreme Court judgment (Tamil Nadu Governor case), which prescribed a 3-month timeline for Governors/President to decide on Bills.
Static Polity Linkage
1.Article 200 – Assent to Bills by Governor
2.Article 201 – Bills reserved for the President
- President can assent or withhold.
- President may also return the Bill (if not a Money Bill).
3.Constituent Assembly Debate Insight
4.Judicial Interpretation (Important Cases)
- Shamsher Singh vs State of Punjab (1974): Governor is not an independent authority; bound by aid and advice of Ministers.
- Nabam Rebia Case (2016): Governor cannot act arbitrarily; must follow constitutional norms.
- 2025 TN Governor Case: SC fixed 3 months limit for Governors/President to act on Bills.
Current Issue
1.Problem:
- Tamil Nadu Governor allegedly sat on 10 Bills for 4 years (since 2020).
- This goes against the principle of constitutional governance and creates legislative deadlock.
2.Union Govt Argument (Solicitor General Tushar Mehta):
3.Supreme Court’s Concern
- Justice P.S. Narasimha questioned: Can a single Governor’s refusal nullify a Bill passed by both Houses of the Legislature?
- Suggested a consultative process – Governor should return the Bill for reconsideration rather than killing it unilaterally.
Policy For Those Worngly Incarcerated
KEY HIGHLIGHTS
Context
- July 2025: The Supreme Court acquitted Baljinder Kumar (Punjab), who had spent 11 years in prison (5 on death row) due to glaring investigative defects.
- This case highlights wrongful incarceration — when a person is convicted and jailed for crimes they never committed.
- India currently has no statutory/legal scheme to compensate such individuals.
Key Issues
1.Prevalence of Wrongful Convictions
- Several cases show that lower courts + High Courts upheld convictions later overturned by the Supreme Court.
- Example: Mohammad Amir Khan (Delhi) – 14 years in jail on false terror charges, later acquitted, given ₹5 lakh compensation (2018).
2.Lack of Legal Framework
- No law in India specifically provides compensation to the wrongfully incarcerated.
- Relief (if any) is granted on a case-to-case basis, often through NHRC or State Governments.
3.Judicial Position
- 2021 case (Ashwini Kumar Upadhyay v. Union of India): SC refused to frame guidelines, saying it would be “virtually legislating”.
- July 2025 ruling: SC suggested Parliament may consider foreign models (e.g., U.S., Portugal, New Zealand).
Constitutional & Legal Angle
- Article 21 – Right to life & personal liberty includes protection against unlawful detention.
- Article 32 & 226 – Courts can grant compensation under writ jurisdiction (precedent: Rudal Shah v. State of Bihar, 1983).
- Article 300A – Compensation can also be linked to the constitutional right to property (loss of livelihood).
- International Law:
- Article 14(6) of ICCPR – India is a signatory; it requires compensation for wrongful conviction.
- But India has not legislated to implement this.
Global Models
United States: Some states pay up to $50,000 per year of wrongful incarceration.
New Zealand: Fixed amount + consideration of psychological damage.
Portugal: Mandates compensation by the State for wrongful conviction.
Expert Opinions
Way Forward
Enact a statutory framework for compensation (like U.S. or New Zealand models).
Clear guidelines: amount based on years lost, psychological harm, loss of livelihood.
Strengthen investigative standards to minimize wrongful prosecution.
Parliamentary debate needed to balance justice to victims and state liability.
THE WAY FORWARD ON KATCHATHEEVU,PALK STRAIT DISPUTES
KEY HIGHLIGHTS
Bachgroud Context
- India’s foreign policy has traditionally been guided by Panchsheel Principles, Non-Aligned Movement, SAARC, and “Neighbourhood First Policy”.
- With Sri Lanka, issues in the Palk Strait region continue to create friction despite deep cultural, religious, and civilisational ties.
Two key disputes:
- Fisheries conflict (livelihood conservation).
- Katchatheevu island sovereignty (settled legally, but politically contested in India).
Fisheries Issue
- Shared History: Tamil Nadu fishers & Sri Lankan Tamil fishers have traditionally shared the Palk Strait.
Problem Today:
- Indian mechanised bottom trawlers enter Sri Lankan waters.
- Causes overfishing, coral reef damage, shrimp habitat loss.
- Artisanal fishers (sustainable small-boat fishing) in Tamil Nadu also lose out due to depletion near coast.
Legal & Environmental Framework:
UNCLOS (1982): Semi-enclosed seas (Art. 123) → cooperation mandatory.
FAO Code of Conduct for Responsible Fisheries (1995): bottom trawling = destructive practice.
Sri Lanka ban (2017): bottom trawling prohibited.
India’s Stand (2025 visit of PM Modi): humane approach → balance livelihood + ecology.
Katchatheevu Dispute
- Location: Tiny uninhabited islet (0.45 sq. miles) in Palk Strait.
History:
- 1974 India–Sri Lanka Maritime Boundary Agreement gave island to Sri Lanka.
- Treaty legally binding under pacta sunt servanda principle (international law: treaties must be honoured).
- Myths like “Indira Gandhi gifted it” are incorrect – records show Sri Lankan administrative control since Portuguese/Dutch period & Jaffna kingdom.
- International Precedents:
Minquiers & Ecrehos (UK vs. France, ICJ 1953): administrative control > historical claims.
Rann of Kutch Arbitration (1968): India– Pakistan boundary dispute.
Reality:
Sovereignty issue settled, cannot be reopened without undermining international law.
Fishing rights ≠ sovereignty (two separate matters).
Static Linkage For UPSC
Geography: Palk Bay = semi-enclosed sea (important in UNCLOS).
IR: Neighbourhood First Policy; India–Sri Lanka bilateral ties.
International Law:
UNCLOS 1982 (Articles 56, 123).
Pacta Sunt Servanda (Vienna Convention on Law of Treaties, 1969).
Constitutional Angle:
Centre–State relations (Tamil Nadu demands vs Union treaty obligations).
- Federal issues in foreign policy.
Environment & Economy: SDG-14 (Life below Water); livelihood security of fishing communities.
A Joint And New Journey Along The SCO Pathway
KEY HIGHLIGHTS
Context
- PM Narendra Modi attended the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, China.
- The Summit was the largest in SCO’s 24-year history, with leaders/representatives of 23 countries and 10 international organisations.
- This also coincides with the 75th anniversary of India–China diplomatic ties.
Key Outcomes Of the Tianjin SCO Summit
1.Security Cooperation
- Launch of Four Security Centres:
- SCO Universal Center for Countering Security Challenges & Threats
- SCO Anti-Drug Center (others related to cyber & terrorism).
- Strengthens collective security architecture.
2.Economic & Development Initiatives
Decision to establish SCO Development Bank.
Adoption of SCO Development Strategy for 2025–2035.
China announced 3 major platforms: Energy Cooperation
Green Industry Digital Economy
Plus 3 cooperation centres: Science & Tech Innovation Higher Education
Vocational/Technical Education.
3.Global Governance Dimension
India -China Bilateral Highlights
1.Leaders’ Consensus:
- Modi: “India and China are partners, not rivals.”
- Xi: Advocated the idea of “Dragon and Elephant dancing together”.
2.Future Roadmap (3 pillars):
Strategic Trust – draw lessons from past, restore dialogue mechanisms.
Developmental Cooperation – trade, investment, education, technology, tourism.
- Good-Neighbourliness – uphold Panchsheel, maintain border peace, avoid letting disputes define relations.
Shanghai Cooperation Organisation (SCO)
- Founded: 2001 (Shanghai)
- Members: 9 (China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Iran)
- Secretariat: Beijing India’s Membership: 2017
- Focus: Regional security (counter-terrorism), connectivity, energy cooperation.
India -China relation
- Historical Ties: 75 years of diplomatic relations (since 1950 recognition of PRC).
- Panchsheel Agreement (1954) – Five Principles of Peaceful Coexistence (UPSC static).
- Border Issues: Unresolved disputes (Aksai Chin, Arunachal Pradesh) + standoffs (Doklam 2017, Galwan 2020).
- Trade: China is India’s largest trading partner (~$135 billion trade in 2023–24, but skewed in China’s favor).
Global Governance & Multilateralism
India’s position: Reform of UNSC, WTO, IMF, World Bank.
SCO & BRICS provide platforms for Global South cooperation.
Both India & China will hold BRICS Presidency in consecutive years (2025–26).
The Return Of Chindia
KEY HIGHLIGHTS
Historical & Civilization Ties(Static)
- Ancient cultural exchange: Buddhism’s spread from India to China; Silk Road trade; visits by Bodhidharma and Xuanzang.
- Post-independence goodwill: India recognised the People’s Republic of China in 1950; Panchsheel Agreement of 1954 outlining five principles of peaceful coexistence.
Border Disputes & Security Mechanisms
- LAC ambiguity & friction points: The 3,488 km long, undefined Line of Actual Control remains a flashpoint, with ongoing disputes in Aksai Chin and Arunachal Pradesh.
- Mechanisms for dialogue: Joint Working Group (1988–2005), Working Mechanism for Consultation and Coordination (WMCC, 2012), and Special Representative Mechanism – all aimed at conflict management.
- Recent developments: Patrolling resumed, direct flights restarted, pilgrimages to Tibetan sites reopened — signalling cautious re-engagement.
Multilateralism & Global Forums
- Engagements: Both countries are members of SCO, BRICS, G20, among others.
- Current-affairs angle: The SCO summit meeting in Beijing — PM Modi’s first in seven years — symbolised a shift from confrontation to conversation, reaffirming that “differences should not turn into disputes” and emphasising development partnership.
Economic Relations & Trade Imbalance
- Persistent trade deficit: India faces a heavy trade deficit with China, a structural challenge.
- Critical imports: APIs, rare-earth metals, solar modules and electronics components are key imports from China. Recent developments:
- Export restrictions on rare-earths and high-end machinery, exodus of Chinese engineers from Foxconn facilities — showing how Beijing can influence India’s manufacturing a
Strategic Autonomy & External Dynamics
US-China trade war impact: Tariffs imposed by the US on both Chinese and Indian goods have forced India to reconsider its strategic positioning.
Balanced diplomacy: India is cautiously de-escalating with China while simultaneously deepening ties with Quad partners — showing a diversified approach to foreign policy.
Way Forward & UPSC Framing
- Reaffirm Panchsheel: Use the five principles as a diplomatic foundation amid renewed dialogue. Confidence-Building Measures (CBMs): Strengthen border hotlines, joint patrols, disengagement protocols.
- Economic rebalancing: Promote Atmanirbhar Bharat while selectively cooperating in green energy, healthcare supply chains.
- Multilateral leverage: Use SCO and BRICS for issue- based cooperation without compromising on core border concerns.
THE NEW V-P
KEY HIGHLIGHTS
Context
Chandrapuram Ponnusamy (C.P.) Radhakrishnan elected as the 15th Vice President of India.
He succeeds Jagdeep Dhankhar, who resigned abruptly before completing his tenure (term was due till 2027).
Key Issues Highlighted
1.Abrupt Exit of Jagdeep Dhankhar
- Official reason: health issues.
- Political speculation: loss of government’s trust despite aligning with ruling establishment.
- Raises question on tenure security and autonomy of high constitutional offices.
Challenges for New Vice President
Maintaining autonomy while balancing expectations of the political executive.
Role as Chairperson of Rajya Sabha → ensuring impartial functioning of the House.
Navigating in a politically polarised environment where Opposition space is shrinking.
Vice President (Articles 63–71, Indian Constitution)
Second highest constitutional office (after President).
Elected by electoral college consisting of both Lok Sabha and Rajya Sabha MPs (not state assemblies).
Term: 5 years, but eligible for re-election.
Removal: Resolution of Rajya Sabha by absolute majority + agreed to by Lok Sabha (simple majority).
Role In Rajya Sabha
VP is the ex-officio Chairman of Rajya Sabha (Art. 64).
Functions: maintain decorum, decide on points of order, give Opposition fair hearing.
- Cannot vote in Rajya Sabha (except casting vote in case of tie).
Governor Experience As Training Ground
Concern Of Constitutional Morality
Shrinking space for independent institutions (judiciary, Parliament, constitutional offices).
VP must uphold constitutional mandate over political loyalty.
This links with UPSC themes of separation of powers & checks and balances.
SC- Relevant Static Data
- First Vice President of India: Dr. S. Radhakrishnan (1952–1962).
- Only VP to become President automatically: V.V. Giri (1969, as Acting President).
- Article 67(b): Vice President can resign by writing to the President.
- Rajya Sabha strength: 245 (233 elected + 12 nominated by President under Art. 80).
Striking At Will
KEY HIGHLIGHTS
Why in news?
- Israel conducted airstrikes inside Qatar, targeting Hamas’s negotiating team.
- The strike came when Hamas was deliberating on a US ceasefire proposal (termed Trump’s “last warning”).
- This incident has triggered global criticism as it challenges the norms of state sovereignty and international law.
Background Context
- Qatar: A tiny but wealthy Gulf nation, key US ally, and host of the largest American military base in the Middle East (Al-Udeid Air Base).
- Hamas: Palestinian militant and political group. Israel accuses it of terrorist attacks; many Western states designate it as a terrorist organization.
- UN Charter Article 2(4): Explicitly prohibits the use of force against the territorial integrity or political independence of another state without UNSC authorization.
- Israel has a record of cross-border strikes in countries like Iran, Lebanon, Syria, Yemen, and Iraq.
Why It Matters? (UPSC Static Linkages)
1.International Law & UN Charter
- Israel’s attack violates sovereignty principles under Article 2(4) of UN Charter.
- Israel’s attack violates sovereignty principles under Article 2(4) of UN Charter.
- Could be classified as an act of aggression without UN Security Council approval.
- Relates to International Relations (GS-II): UN’s role in maintaining global peace.
2.Geopolitical Implications
- Qatar’s role: mediator in regional conflicts + host of US CENTCOM base.
- Strikes complicate US foreign policy, since Qatar is America’s ally.
- Potential fallout in the Gulf Cooperation Council (GCC) and wider Arab world.
Domestic Politics in Israel
- Israeli protests demanding hostage release and an end to war.
- Netanyahu government appears focused on military expansion rather than negotiated peace.
Palestine Statehood Question
- Several Western nations (UK, France, Australia, Belgium, Canada) preparing to recognise the State of Palestine at the UNGA.
- Israel’s aggressive posture could harden global support for Palestinian statehood.
India’s Concerns (Static + Current)
India traditionally follows a balanced West Asia policy:
Support for Palestinian cause (historic, NAM roots).
Strategic ties with Israel (defence, agriculture, technology).
Strong energy and diaspora ties with Gulf States including Qatar.
Any escalation threatens energy security and safety of 8.5 million Indian diaspora in West Asia.
Ethical & Legal Dimension
- Sovereignty vs. Security dilemma.
- Question of whether counter-terrorism justifies breach of international law.
- Humanitarian concerns: civilians in Gaza facing famine + hostages at risk.
Way Forward
- Diplomatic push at UNGA for ceasefire and peace settlement.
- Reform in UN Security Council to effectively address violations of sovereignty.
- Greater role for regional organisations (Arab League, GCC, OIC) in conflict resolution.
- For India: continued emphasis on strategic autonomy – balancing ties with Israel, Palestine, and Gulf nations.
