Daily Current Affairs

April 24, 2025

Current Affairs

India puts Indus Waters Treaty on Hold with Pakistan

Context: In the wake of the deadly terrorist attack in Pahalgam, India has announced that the Indus Waters Treaty of 1960 will be held in abeyance with immediate effect, until Pakistan credibly and irrevocably abjures its support for cross-border terrorism. 

Relevance of the topic:

Prelims: Key facts about Indus Water Treaty; Dispute Resolution Mechanism in IWT.

Mains: Issues associated with the Indus Water Treaty. 

Indus Water Treaty (IWT)

  • Indus Waters Treaty is a water-sharing agreement between India and Pakistan, signed in 1960, facilitated by the World Bank. 
  • Sharing of water as per IWT: It provides India 20% of the water from the Indus River System and the rest 80% to Pakistan.
    • Eastern rivers: Ravi, Beas, and Sutlej were allocated to India for unrestricted use.
    • Western rivers: Indus, Jhelum, and Chenab were allocated largely to Pakistan. India is permitted certain agricultural uses and can build 'run of the river' hydropower projects with limited storage. 
  • Permanent Indus Commission (PIC): Commissioners are appointed by both countries for cooperation and information exchange regarding their use of the rivers.
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Significance of putting the Treaty on Hold for India:

The decision to suspend the IWT gives various options to India on how to use the waters of the Indus river system.

  • India can immediately stop sharing water flow data with Pakistan. There will be no design or operational restrictions on India for the use of the water of the Indus and its tributaries.
  • India can now create storage on the Western Rivers, Indus, Jhelum and Chenab.
  • India can undertake reservoir flushing (a technique used to remove accumulated sediment from reservoirs by releasing water through low-level outlets to scour out the sediment and transport it downstream) on the Kishenganga project, which will increase the life of the dam.
  • India can stop visits by Pakistani officials to the two hydroelectric projects currently under construction in Jammu & Kashmir — the Kishenganga HEP on Kishenganga, a tributary of the Jhelum, and the Ratle HEP on the Chenab.

Limited Options for Pakistan

  • The Indus Waters Treaty lacks an exit clause, meaning neither India nor Pakistan can legally abrogate it unilaterally. The Treaty has no end date, and any modification requires the consent of both parties.
  • While the Treaty cannot be exited, it contains a dispute resolution mechanism that lays out procedures for raising grievances — first before the Permanent Indus Commission, then a neutral expert, and eventually, a forum of arbitrators. However, arbitration may not offer much recourse if India chooses not to follow the Treaty.
  • In case India ‘revokes’ the treaty, the dispute resolution mechanism will be of no use and assistance to Pakistan. It is limited to a dispute under the treaty and not meant to provide for specific performance of the treaty itself.
  • Since there is no provision in the IWT about its duration or suspension, there is no avenue that Pakistan can approach for ‘revival’ of the treaty. Nor can Pakistan approach the International Court of Justice seeking specific performance to implement the Treaty because of the Indian reservation given under the ICJ statute that bars the filing of a case by Pakistan against India. 

Also Read: World Bank Neutral Expert supports India’s stand on IWT 

However, the suspension of IWT will not have an immediate impact on the flow of water to Pakistan for a few years at least. India does not currently have the infrastructure to either stop the flow of water into Pakistan, or to divert it for its own use.  

Exploring India’s Potential in the Arctic Region

Context: Accelerated melting of the Arctic sea ice is redrawing global trade maps, giving rise to a new trade route called the Northern Sea Route (NSR), the shortest route between Europe and Asia. For India, this presents both strategic opportunities and complex geopolitical challenges. 

Relevance of the Topic: Mains: India’s engagement with the Arctic.

Potential of the Arctic Region

The Arctic is warming nearly four times faster than the global average. According to NASA, the September sea ice in the Arctic is shrinking at 12.2% per decade (1981–2010 average). This has opened up a new trade route called the Northern Sea Route (NSR).

  • Northern Sea Route: A navigable sea route between the Atlantic and the Pacific via Russia’s Arctic coast. It is being hailed as the shortest route between Europe and Asia.  The rise in cargo throughput on the NSR from just 41,000 tonnes in 2010 to nearly 37.9 million tonnes in 2024 reflects its strategic importance.
  • Resource potential: Arctic holds an estimated 13% of the world’s undiscovered oil and 30% of undiscovered natural gas. It also has untapped reserves of coal, rare earth elements, phosphates, and copper as well as lucrative fishing grounds. It further signifies its importance for energy deficit countries worldwide, including for India.
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India’s Arctic Engagement: 

  • India began its engagement with the Arctic in 1920 by signing the Svalbard Treaty. Recognises sovereignty of Norway over Svalbard archipelago. 
  • India has been a permanent observer in the Arctic Council since 2013. Arctic Council is a high-level intergovernmental forum that addresses issues faced by the Arctic governments and Indigenous people of the Arctic.
  • India’s Arctic Policy (2022) focuses on six pillars:
    • Strengthening India's scientific research and cooperation.
    • Climate and environment protection.
    • Economic and human development.
    • Transportation and connectivity.
    • Governance and international cooperation.
    • National capability building for the Arctic region.
  • India's first Arctic research station, Himadri is located at Spitsbergen, Svalbard, Norway. India is the only developing nation besides China that has an Arctic research base. 
  • India’s $3 billion Maritime Development Fund (Budget 2025-26) promotes Arctic-ready shipbuilding and port infrastructure, critical for NSR navigation.
  • National Centre for Polar and Ocean Research (NCPOR), Goa, an autonomous institute under Ministry of Earth Sciences is the nodal institution for India's Polar research program, which includes Arctic studies.

Challenges

  • India faces a critical question on how to pursue Arctic opportunities without accelerating climate catastrophe. Loss of Arctic ice disrupts atmospheric circulation, affecting South Asian monsoon patterns. This has direct consequences on agricultural productivity, food security, and rural livelihoods in India. 
  • India faces geopolitical complexity in accessing the Northern Sea Route (NSR) and engaging with the Arctic, where strategic alignments are fraught with rivalries between major powers particularly between Russia, China, and the West.

Way Forward

India must adopt a strategic, balanced, and climate-conscious Arctic approach where India:   

  • Maintain functional ties with Russia for Arctic access without endorsing China's broader polar ambitions. India and Russia have initiated a working group on the Northern Sea Route (NSR), and the Chennai–Vladivostok Maritime Corridor links directly to key Arctic ports. 
  • Engage the U.S., EU, Japan, and South Korea for sustainable and rules-based Arctic frameworks.
  • Pursue minilateral partnerships (India–Japan–South Korea) to present a moderate Asian voice on Arctic governance that is independent of both China-Russia and U.S.-EU axes.
  • India must advocate sustainable Arctic exploration, green shipping technology, and inclusive Arctic governance.

Also Read: https://compass.rauias.com/current-affairs/rising-geopolitical-conflicts-arctic-region/ 

India must leverage platforms like the Arctic Circle India Forum 2025 not just for policy articulation, but for forging meaningful partnerships, advancing polar research, and advocating equitable representation of Global South voices in Arctic affairs. 

Quantum Gravity Gradiometer

Context: NASA scientists have proposed that an advanced quantum gravity gradiometer (QGG) could be placed onboard a satellite and launched into low-earth orbit. The instrument could study small changes in the earth’s distribution of water, ice, and rocks to inform studies of climate change. 

Relevance of the Topic: Prelims: key facts about Quantum Gravity Gradiometer and its Application. 

Variation of Gravitational Force:

  • Gravitational force on the Earth’s surface is non-uniform. The amount of gravitational force one experiences on the earth’s surface depends on the amount of mass nearby. 
  • The force is directly proportional to the mass. Force equals to Mass multiplied by its Acceleration (F = m · a).
  • This difference in force between two places is too small and requires the most sensitive instruments for its detection. One such instrument is the gravity gradiometer.

Quantum Gravity Gradiometer

  • Quantum Gravity Gradiometer is a highly-sensitive instrument that can detect minute variations in Earth's gravitational field by harnessing the principles of quantum mechanics. 

Working of QGG

  • QGG uses ulta-cooled rubidium atoms (cooled to near absolute zero) in vacuum. These ultra-cooled atoms behave like waves, and are manipulated by lasers. 
  • The atoms experience a phase shift that is directly proportional to the strength of the gravitational force acting on them. The shift is extremely sensitive. 
  • By using a pair of such setups (say 1 meter apart), a QGG can detect a difference in acceleration as low as 10⁻¹⁵ m/s² across a distance of 1 m on the Earth’s surface. 

Potential Applications of Quantum Gravity Gradiometer

  • Oil and gas exploration: Locating Hydrocarbon deposits and accessing their distribution underground (gravity gradiometer can be used to understand the density of the ground at various depths).
  • Aquifer mapping: Detect seasonal changes in water levels in aquifers, track depletion of water tables. 
  • Climate studies: Detect small changes in the earth’s distribution of water, ice, and rocks to conduct informed studies of climate change, and enhance disaster resilience. 
  • National security: Detects underground construction of bunkers, tunnels etc. by detecting the density anomaly. 

Quantum sensors promise enhanced sensitivity 10 times more than classical sensors for measuring gravity.

India’s Hydrocarbon Sector Reforms

Context: India is reforming its upstream oil and gas sector to reduce import dependence and boost domestic production. While policy consistency has improved, the real challenge lies in effective execution and addressing legacy implementation issues.

Relevance of the Topic: Mains: Indian Hydrocarbon sector reforms. 

Status of India’s Hydrocarbon sector

  • India imports nearly 88% of its crude oil and 50% of its natural gas requirements. India’s energy security has been under threat due to its heavy reliance on crude oil and natural gas imports. 
  • Despite a series of policy reforms including the Open Acreage Licensing Policy (OALP), Discovered Small Field (DSF) Policy, Hydrocarbon Exploration and Licensing Policy (HELP), and Natural Gas Marketing Reforms etc., the country has not seen any major new discoveries in recent years. 

Key policy initiatives over the last decade to boost domestic production of Oil and Gas include :

  1. Policy under PSC regime for early monetisation of hydrocarbon discoveries, 2014.
  2. Discovered Small Field Policy, 2015.
  3. Hydrocarbon Exploration and Licensing Policy (HELP), 2016.
  4. Policy for early monetisation of Coal Bed Methane, 2017.
  5. Setting up of the National Data Repository, 2017.
  6. Policy to Promote and Incentivise Enhanced Recovery Methods for Oil and Gas, 2018.
  7. Policy Framework for exploration and exploitation of Unconventional Hydrocarbons.
  8. Natural Gas Marketing Reforms, 2020.
  9. Lower Royalty Rates, Zero Revenue Share (till Windfall Gain) and no drilling commitment in Phase-I in OALP Blocks, under Category II and III basins to attract bidders.
  10. Release of about 1 million sq. km. ‘No-Go’ area in offshores, which was blocked for exploration for decades.
  11. The government is also spending about ₹7,500 crore for acquisition of seismic data in onland and offshore areas and drilling of stratigraphic wells to make quality data of Indian Sedimentary Basins available to bidders.

Historically, India’s upstream sector is marked by policy paralysis, opaque licensing, and procedural delays. Policy Execution remains a major challenge, primarily due to legacy issues like bureaucratic delays, coordination hurdles, and infrastructure bottlenecks. This discouraged Foreign Direct Investment (FDI) and led to the exit of global players. While policies like NELP (New Exploration Licensing Policy) aimed to boost private participation, they have failed to yield major discoveries.

Recent Government Initiatives

  • Amendment to the Oilfields (Regulation and Development) Act, 1948: It is aimed to modernise India’s upstream regulatory framework and aligns it with international best practices. It aims to unlock India's estimated 42 billion tonnes of untapped hydrocarbon reserves.
  • Establishment of a Joint Working Group: To address industry concerns, the JWG would comprise private E&P operators, National Oil Companies, the Ministry of Petroleum and Natural Gas, and the Directorate General of Hydrocarbons.
  • Draft PNG Rules Public Consultation Portal: Aimed towards inclusive governance and legal clarity, the portal allows industry and public stakeholders to share feedback on the proposed rules. These rules will guide how the recent amendments to the Oilfields (Regulation and Development) Act, 1948 will be implemented. 

Read More: Oilfields (Regulation and Development) Amendment Bill 2024 

Bridging the gap between intent and implementation is essential for unlocking India’s estimated 42 billion tonnes of untapped hydrocarbon potential and ensuring long-term energy security.

Surat Emissions Trading Scheme

Context: Experimental Evidence from the World's first market for trading in particulate matter emissions established in Surat, Gujarat has found that it has reduced pollution by up to 30% among participating industries, and also lowered the abatement costs.

Relevance of the topic:

Prelims: Key facts about Emissions trading scheme (ETS).

Mains: How trading in particulate emissions work?

Emissions Trading Scheme

  • Emissions trading scheme (ETS) or market is a regulatory tool to cut greenhouse gas emissions, while providing industries with financial incentives to comply with norms and to get them to invest in cleaner technology.
  • It is commonly referred to as ‘cap-and-trade’ to emission markets.

How does Emissions Trading Scheme work?

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  • Cap Setting: Under ETS, regulators set a cap or a limit on the total emissions load that can be released into the air. 
  • Permit Allocation: Instead of enforcement through fines or show-cause notices, industries are given emissions permits or allowances, which can be traded among them to meet compliance. Each permit allows industries to release a specific quantity of pollution into the air, such as a kilogram of particulate matter pollution or a ton of carbon dioxide. 
  • Trading Mechanism: Plants with pollution-reducing technology save their permits and sell them to those who might need them to make up for their compliance gap. This way, plants with fewer resources get time to gradually shift to cleaner technology, while complying with a cap, and others earn through trading. A minimum floor price and maximum ceiling price are usually set to maintain stability and to keep the scheme attractive.
  • Compliance Monitoring: Industries that breach emission caps are penalised, usually on a per tonne cost basis. In some instances, they also have to surrender their permits. To ensure that emissions are reduced, regulators tighten emission caps and issue fewer permits as the ETS matures.
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Surat Emissions Trading Scheme:  

  • Launched in: 2019.
  • It is the world's first ETS targeting particulate matter (PM).
  • The scheme was designed and developed by the Gujarat Pollution Control Board (GPCB), J-PAL, EPIC-India, and Yale University
  • The initiative represents a shift in India’s environmental governance from command-and-control models to market-based instruments.

How does the Surat ETS work ?

  • Cap: Initial cap on emissions was 280 tons/month of suspended particulate matter (SPM) which was later revised to 170 tons/month after real-time emission data was analysed through Continuous Emission Monitoring Systems (CEMS).
  • Permit: Each permit was equal to 1 kg of particulate matter emissions, and these permits were only valid during one compliance cycle which lasted 4 to 6 weeks. 80% permits are allocated for free, based on historical emissions and plant capacity while 20% permits are auctioned through a uniform price discovery mechanism.
  • Auction: A uniform price auction is conducted at the start of each cycle. Buyers and sellers submit bids, and a single clearing price is discovered. Permit prices were limited to between Rs 5 per kg (floor price) and Rs 100 per kg (ceiling price).  
  • Compliance: At the end of a compliance period, industries with sufficient permits to meet their emissions targets are said to comply. Plants posted a bond known as an Environmental Damage Compensation Deposit before the market began. Plants with insufficient permits were fined twice the ceiling price for every unit of emissions above their permits, the study stated. This fine is deducted from the bond.

Significance: It resulted in a 20–30% reduction in particulate pollution, demonstrating a cost-effective, flexible, and scalable alternative to conventional regulation.

Limitations: 

However, this approach suffers from three critical limitations : 

  • Resource Constraints: With thousands of polluting units and limited regulatory manpower, real-time monitoring and enforcement are often ineffective and delayed.
  • Uniform Compliance Burden: All industries regardless of their size, technological capacity, or financial strength are subject to the same norms, leading to disproportionate challenges for smaller or less-resourced units.
  • Regulatory Rigidity: There is little scope for flexibility or innovation. Compliance is rule-based rather than outcome-oriented, and often imposes high transaction costs.

ETS attempt to address these monitoring and enforcement gaps by bringing in more flexibility, and offering incentives for compliance.

India aims to deepen local value addition in Electronics Manufacturing

Context: After achieving success in localising smartphone assembly for domestic use and limited exports, the government now aims to boost local value addition to deepen electronics manufacturing.

Relevance of the topic:

Prelims: India Semiconductor Mission; Electronics Components Manufacturing Scheme.

Mains: Need to boost local value addition in electronics manufacturing and government efforts in this direction.

State of Electronics Manufacturing in India

  • India’s current domestic value addition in electronics manufacturing is estimated at 15-20% (China’s value addition is around 38%).
  • India’s trade deficit with China reached an all-time high in 2024-25, nearing $100 billion. The majority of critical components such as chips, camera modules, PCBs, and passive components continue to be imported, primarily from China.
  • India’s current electronics manufacturing value is $120 billion, and the government aims to scale this up to $500 billion in the coming years. India aims at building a domestic supply chain for core components like chips, camera modules, PCBs, and passive components.

Government Initiatives

To bridge this gap, the Government of India has launched several strategic subsidy schemes and policy interventions: 

  • India Semiconductor Mission (Rs 76,000 crore): Focused on fabrication and packaging of semiconductors, which are the heart of any electronic device.
  • Electronics Components Manufacturing Scheme (~Rs 23,000 crore): Aimed at boosting local production of smaller yet critical components like resistors, capacitors, inductors, etc.
  • PLI schemes for Smartphones and Laptops: Provide incentives to companies for manufacturing in India, based on incremental sales.

Electronics Components Manufacturing Scheme

  • The government has launched a Rs 23000 crore incentive scheme aimed at boosting local manufacturing of essential electronics components.
    • Earlier PLI schemes were successful in localising assembly, but core components continued to be imported, mostly from China. 
  • It aims to develop arobust component ecosystem by:
    • attracting large investments (global/domestic) in the electronics component manufacturing ecosystem
    • increasing Domestic Value Addition by developing capacity
    • integrating Indian companies with Global Value Chains.
  • The scheme targets manufacturing of a wide range of critical components, such as Display modules, Camera sub-assemblies, Printed Circuit Board Assemblies (PCBAs), Lithium battery enclosures, Passive components like resistors, capacitors, and ferrites.
  • Implementation period: over six years.
  • Expected outcomes:
    • Create at least 91,600 direct jobs with subsidies linked to employment generation, encouraging companies to invest in human capital.
    • Result in Rs 4.56 lakh crore worth of electronics production and move toward export-led growth.
    • Likely to attract incremental investment of over Rs 59,000 crore, strengthening India’s industrial base.

Evaluation of PLI Schemes

  • Launched in 2020, the PLI schemes aim to boost domestic manufacturing by offering financial incentives linked to incremental sales. 
  • It targeted 14 sectors, including smartphones, IT hardware, pharmaceuticals, automotive, etc.
  • The smartphone PLI scheme has been one of the most successful with:
    • Investment: Rs 10,905 crore
    • Production output: Rs 7.15 lakh crore
    • Exports: Rs 3.9 lakh crore
    • Jobs created: ~ 1.4 lakh direct jobs
  • As the PLI schemes approach sunset (1–3 years left), the government is reassessing their design and impact. So far, incentives are based only on incremental sales. Now, the government is considering broader metrics like
    • Domestic value addition (i.e., how much of the product is made locally, rather than assembled from imported parts)
    • Incremental exports and to promote India as a global manufacturing hub. 

Snow persistence in Hindu Kush Himalaya hits record low: ICIMOD Report

Context: According to the latest Snow Update Report by International Centre for Integrated Mountain Development (ICIMOD), snow persistence in the Hindu Kush Himalaya region hits 23-year low, impacting water security for 2 billion people.

Relevance of the Topic:Prelims: Major findings of the Report; Hindu Kush Himalaya (HKH) region. 

Key Findings of the Report

  • Snow persistence over the Hindu Kush Himalaya region between November 2024 and March 2025 was 23.6% below normal levels, a record low in the last 23 years.
    • Snow persistence measures the fraction of time snow remains on the ground after snowfall. 
  • This marks the third consecutive year of below-normal seasonal snow across the region. 
  • The most alarming decline in snow persistence is in the Mekong region, with ~52% decline.

Factors contributing to Low Snow Persistence

  • Climate change: Low snow persistence is a classic fallout of climate change. The rise in temperature in the Himalayas has exceeded the global average for at least four decades. An ICIMOD report of 2019 had warned that even if the global temperature rise is limited to the Paris climate pact’s threshold of 1.5 degrees Celsius, the HKW region will witness a warming of 0.3 degrees Celsius. 
  • Carbon emissions have caused an irreversible course of recurrent snow anomalies in the Hindu Kush Himalaya region.
  • Local developments like changes in the land system — the transformation of farmlands into urban areas — have combined with broader climatic changes to drive the temperature rise. 
  • Weaker western disturbances: Extra-tropical storms from the Mediterranean are known to contribute to winter precipitation in the Himalayas. But weaker western disturbances in recent years have disrupted the timing of seasonal precipitation, leading to shifts in snowfall patterns.

Hindu Kush Himalaya (HKH) region:

  • HKH mountains extend around 3500 km over eight countries — Afghanistan, Bangladesh, Bhutan, China, India, Nepal, Myanmar, and Pakistan. 
  • HKH are called ‘freshwater towers of Asia’ as water originating from their snow, glaciers and rainfall feed the ten largest river systems in Asia — Amu Darya, Indus, Ganga, Brahmaputra, Irrawaddy, Salween, Mekong, Yangtse, Yellow river, and Tarim. 
  • These river basins provide water to almost one-fourth of the world’s population and are a significant freshwater source for 240 million people in the HKH region.
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Consequences

On an average, seasonal snowmelt contributes about one-fourth of the total annual runoff of the rivers originating from Hindu Kush Himalaya region. 

  • Continued deficit of seasonal meltwater means lesser river runoffs and early-summer water stress, especially for downstream communities, and would contribute to food insecurity. 
  • Agriculture in the region is timed with the seasonal flows of water and predictable cycles of rain. The unpredictability of the hydrological (water) cycle would contribute to food insecurity. 

Way Forward

  • Improvements in Weather forecasting and Early warning systems. 
  • Improving water infrastructure and developing policies for protecting areas receiving snowfall are important.
  • Investments in better water management and drought-proofing agriculture.
  • Transition towards greener forms of development and reduce emissions. 
  • Reforestation with native tree species can help the ground retain more snow.
  • Communities involvement in local and national level decision-making. 
  • Greater regional cooperation on data-sharing mechanisms on river flows, flood and natural resources. 

To tackle this regional snow crisis and the challenges, India needs long-term food, water and energy resilience. The nation needs to embrace a paradigm shift toward science-based, forward-looking policies and foster renewed regional cooperation for transboundary water management and emissions mitigation. 

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