Daily Current Affairs

May 12, 2025

Current Affairs

Tapti Basin Mega Recharge Project

Context: Madhya Pradesh and Maharashtra have signed an MoU to jointly implement the Tapti Basin Mega Recharge Project. It is aimed at enhancing regional water security by using Tapti river water for drinking and irrigation needs in both states.

Relevance of the Topic: Prelims: Key facts related to Tapti Basin Mega Recharge Project.

Tapti Basin Mega Recharge Project

  • The project is described as one of the largest water recharge projects globally with no displacement involved.
  • Water from the Tapti river will be diverted to cater to:
    • drinking water needs of north-eastern Maharashtra, including Nagpur.
    • provide irrigation support to southern and south-eastern districts of Madhya Pradesh such as Burhanpur and Khandwa.
  • Total planned utilisation of water under the scheme stands at 31.13 thousand million cubic feet (TMC), with 11.76 TMC allocated to MP and 19.36 TMC to Maharashtra.
  • Centre is expected to fund 90% of the project cost and the proposals will be submitted to classify it as a national water project.
  • This is the third major river-linking initiative undertaken by the Madhya Pradesh government in the past year, following the Ken-Betwa link project with Uttar Pradesh and the Parvati-Kalisindh-Chambal link project with Rajasthan.
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About Tapti River:

  • Tapti or Tapi river is one of the major west-flowing rivers.
  • Origin: Multai in Betul district, Madhya Pradesh.
  • States Covered: Madhya Pradesh, Maharashtra, Gujarat.
  • Major Tributaries of Tapti are:
    • Right Bank: Vaghur, Bori, Purna
    • Left Bank: Aner, Girna, Panjhra
  • Important cities along the river: Burhanpur (MP), Jalgaon (Maharashtra), Surat (Gujarat)
  • Dams and Projects: Ukai Dam (Gujarat), Hathnur Dam (Maharashtra)

Article 51 of UN Charter: Self-defence clause in global law

Context: India’s recent military action against Pakistan-based terrorist targets have revived debates on the right of self-defence under international law, especially under Article 51 of the United Nations (UN) Charter.

Relevance of the topic:

Prelims: Key facts related to provisions of self defence under the UN Charter especially Article 51 and Article 2(4) of UN Charter.

Mains: Role of the United Nations in maintaining international peace and security.

India justified its military action against Pakistan-based terrorist targets under the “unwilling or unable doctrine” and traditional principles of necessity and proportionality. 

Article 51 of the UN Charter

  • Article 51 of the UN Charter permits the use of force in self-defence only if an armed attack occurs. It is an exception to Article 2(4) of the UN Charter, which prohibits the use of force against the territorial integrity or political independence of any state.
  • Military Action under Article 51 must satisfy two critical principles:
    • Necessity (Force must be the only option left)
    • Proportionality (the response should not exceed the scale of the attack).
  • Article 51 imposes a procedural obligation on member states to immediately report to the UNSC any military measures taken in self-defence. UNSC then assumes the authority to undertake action to maintain or restore international peace and security. 

Can it be exercised against Non-State Actors?

  • Traditionally, the UN Charter governs conduct between sovereign states. However, post- 9/11, several countries, especially the US, have argued that Article 51 extends to non-state actors (NSAs) such as terrorist organisations, even when they operate from another country’s territory.
  • However, the International Court of Justice (ICJ) has maintained a more restrictive stance. It held that self-defence can be invoked only when an armed attack is carried out by or on behalf of a state. Thus, state attribution is a necessary condition.

What is the ‘unwilling or unable’ doctrine?

  • Emerging doctrine in international law permits the use of force in self-defence against non-state actors (NSAs) operating from the territory of another state, when that state is “unwilling or unable” to neutralise the threat. 
  • The US invoked it to justify the 2011 military operation that killed al-Qaeda leader Osama bin Laden in Pakistan and the 2014 airstrikes against the IS in Syria. 
  • However, states such as China, Mexico, and Russia have condemned such military operations for undermining the sovereignty and territorial integrity of the host state.

Is proportionality essential?

  • Military operations under Article 51 must comply with the principles of necessity and proportionality. It is generally accepted that a host state’s unwillingness or inability to neutralise NSAs may fulfil the necessity requirement. 
  • However, the Leiden Policy Recommendations on Counter-Terrorism and International Law (2010) emphasise that military operations against the host state’s armed forces or facilities are permissible only in “exceptional circumstances”, such as when the state actively supports the terrorists.

This ensures that self-defence does not become a blanket justification for disproportionate or aggressive military campaigns, especially in cases involving non-state actors.

What lies ahead?

  • If the ceasefire agreement between India and Pakistan fails to hold, the UNSC could adopt a resolution calling for an immediate cessation of hostilities. 
  • It may also vote on a subsequent resolution to address any further violations, including the imposition of sanctions or the deployment of its own peacekeeping or military forces. 

However, UNSC action depends heavily on the geopolitical interests of the five permanent members (P5), each with veto power. This makes any strong resolution on India-Pakistan issues difficult to pass.   

States cannot be compelled to adopt National Education Policy: SC 

Context: The Supreme Court has dismissed a petition seeking the implementation of the National Education Policy (NEP) in Tamil Nadu, West Bengal, and Kerala citing that it cannot compel any state to adopt NEP 2020. 

While the Centre claims that the NEP promotes multilingualism, Tamil Nadu argues that it puts unfair pressure on non-Hindi-speaking states.

Relevance of the topic:

Prelims: Key facts about National Education Policy 2020.

Mains: Debate surrounding three language formula in NEP. 

Major Highlights: 

  • The SC has stated that the court does not have the power to compel a state to follow a central policy like the National Education Policy 2020. Under Article 32 of Indian Constitution, the court can only intervene when there is a  violation of fundamental rights due to the policy’s implementation.

Key Facts

  • Education is on the Concurrent list of Schedule 7 of Indian Constitution, enabling both the Centre as well as the states to enact laws. The 42nd Constitutional Amendment moved education from the State List to the Concurrent List.
  • The Right of Education Act, under Article 21A, makes education a fundamental right of every child between the ages of 6-14 and specifies minimum norms in elementary schools. 
  • Article 32 of Indian Constitution grants every individual the right to move the Supreme Court for the enforcement of their fundamental rights.
  • The NEP 2020 is the latest education policy in India (after NEP 1986). It is founded on the five guiding pillars of Access, Equity, Quality, Affordability and Accountability. It proposes various reforms in school education as well as higher education including technical education.

Read More- National Education Policy 2020: National Education Policy 2020 

Pakistan-Turkey Strategic Nexus and India’s Geopolitical Response

Context: During the ongoing Indo-Pak crisis, Pakistan identified Turkey, China, and Azerbaijan as its principal international supporters, highlighting a growing strategic nexus that impacts India’s geopolitical calculus.

Relevance of the Topic: Mains: Growing Turkey-Pakistan strategic partnership and India’s response.

Turkey-Pakistan Friendship

  • Pakistan-Turkey relationship is rooted in shared Islamic identity and historical solidarity.
  • Turkey was the only Pakistani ally in West Asia to explicitly condemn Operation Sindoor.
  • Other Gulf countries have not only refrained from backing Pakistan, but have also shown greater sensitivity to India’s position on Kashmir.
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Historical and Ideological Ties

  • During the Cold War, both countries were aligned under US-led security frameworks such as the Central Treaty Organisation (CENTO) and the Regional Cooperation for Development (RCD).
  • This historical camaraderie was reinforced by mutual support in international conflicts- Pakistan supported Turkey during the Cyprus crisis (1964, 1971), while Turkey has consistently backed Pakistan’s stance on Jammu and Kashmir.
  • The rise of President Recep Tayyip Erdogan and his brand of political Islam has further cemented this alliance. Erdogan’s repeated visits to Pakistan signify Ankara’s political commitment to Islamabad.
  • Geopolitically, Turkey (with Qatar) is locked in competition with its Gulf Arab rivals, led by Saudi Arabia and the UAE. To curb Saudi-Emirati influence, Turkey has looked for alternative architectures of cooperation with non-Gulf Muslim states such as Pakistan and Malaysia.

Defence Cooperation:  

  • Turkey is Pakistan’s second-largest arms supplier after China. Turkey has supplied Bayraktar drones, Asisguard Songar drones (used in recent attacks on India), Kemankes cruise missiles, Corvettes (warships) for the Pakistan Navy.
  • Since 2000, Turkish Navy has held numerous joint exercises with the Pakistan Navy, the second largest in the IOR. By contrast, it has hardly had any exercises with the Indian Navy.

India’s Geostrategic Countermeasures

India has pursued a multi-pronged strategy to counterbalance the Pakistan-Turkey nexus: 

  • Engagement with Turkey’s Regional Rivals: 
    • India supports the Republic of Cyprus and has deepened diplomatic engagement with Greece, both of which oppose Turkish claims in the Eastern Mediterranean.
    • India has emerged as Armenia’s primary defence supplier, particularly in the context of the Armenia-Azerbaijan conflict over Nagorno-Karabakh. This counters the Turkey-Pakistan-Azerbaijan axis.
  • Strengthening West Asian Partnerships: India has built strong economic and diplomatic ties with Saudi Arabia and UAE despite their historic ties with Pakistan.Their neutral stance on recent Indo-Pak conflicts marks a diplomatic win for New Delhi.
  • Global Strategic Realignment: India’s inclusion in the U.S.-led Indo-Pacific Strategy, the QUAD, and the India-Middle East-Europe Economic Corridor (IMEC) signifies its emergence as a pivotal Indo-Pacific actor, in contrast to Pakistan and Turkey, who are relatively marginal in this framework.
  • Participation in the India-Middle East-Europe Economic Corridor (IMEC) bypasses Turkey, undercutting Turkey’s bridge-role between Europe and Asia.
  • Economic Diplomacy and Soft Power: India’s humanitarian assistance to Turkey during the 2023 earthquake (Operation Dost) showcased its diplomatic maturity, although it failed to alter Turkey’s pro-Pakistan stance.

Way Forward

  • India should deepen defence ties with Turkey’s regional rivals and promote diplomatic engagement with non-aligned Muslim states.
  • Greater cultural diplomacy and people-to-people exchanges with Turkish civil society may create long-term goodwill.
  • Strategic communication and realignment in multilateral forums can help neutralise hostile narratives on Kashmir.

Turkey today is a strong and entrenched part of Pakistan’s international alliance that works to India’s detriment, second only to China.

India warns of Retaliation if UK imposes Carbon Tax Under CBAM

Context: India has strongly opposed the UK’s proposed Carbon Border Adjustment Mechanism (CBAM), citing that it reserves the right to retaliate if the UK proceeds without granting fair exemptions to Indian exporters.

Relevance of the Topic Prelims : key facts related to carbon Border Adjustment Mechanism (CBAM) Mains : Impact of CBAM on Indian exports.

Carbon Border Adjustment Mechanism (CBAM)

  • CBAM is a policy tool introduced by the European Union to ensure that imported goods are subject to the same carbon costs as products produced within the EU.
  • It aims to prevent "carbon leakage," where companies shift production to countries with lower carbon standards to avoid carbon costs.
  • The United Kingdom, though no longer part of the EU, is now planning its own version of CBAM, which has sparked fresh trade tensions with India. It is expected to start from January 1, 2027. 

Also Read: Carbon Border Adjustment Mechanism 

Impact of CBAM on Indian Exports: 

  • Reduce price competitiveness: Carbon tax on carbon intensive goods (steel, aluminium, cement, and fertilisers etc.) imported from India will make Indian goods more expensive than local or other compliant imports reducing price Competitiveness
  • Undermines FTA benefits: While the FTA might reduce or eliminate tariffs, Indian exports could still face hefty carbon taxes, potentially far exceeding the UK’s current average tariff rate of under 2%.
  • Burden on MSMEs: MSMEs often lack the resources to measure and report carbon emissions, making CBAM compliance costly and potentially forcing them out of export markets.

India’s Response

  • India has labelled the CBAM as an unfair measure and a violation of the "common but differentiated responsibilities" (CBDR) principle.
    • CBDR principle is a multilateral climate negotiations which says developed and developing countries should not be treated the same when it comes to climate responsibilities. Developed nations, having polluted more historically, must bear a greater responsibility.
  • India had requested the UK for Special treatment for Indian MSMEs under CBAM and a ‘rebalancing mechanism’ – a clause in the trade deal that would compensate Indian exporters if they suffer losses due to this tax. However the UK remains unwilling to grant any concession under CBAM.
  • India inserted a clause related to rebalancing inside the “General Exceptions” chapter of the trade agreement draft. In global trade rules (like WTO’s GATT agreement), this chapter says a country can take actions that normally break trade rules, if it is doing so to protect the environment or public health.
  • So, this protects India from legal trouble at the WTO, if it takes action against the UK’s carbon tax.

Also Read: India and UK conclude Free Trade Agreement 

India must negotiate with UK firmly to ensure that market access gained through tariff elimination is not undermined by other barriers.  

RBI relaxes FPI investment limit in Corporate Debt Securities

Context: The Reserve Bank of India (RBI) has relaxed norms for foreign portfolio investors (FPIs) investing in corporate debt securities through the general route. 

Relevance of the Topic: Prelims: Key facts related to FPI norms.

Major Highlights:

  • Foreign Portfolio Investors (FPIs) in corporate debt securities will no longer be required to adhere to the short-term investment and concentration limits. The decision, effective immediately, aims to provide greater ease of investment for FPIs. 

Earlier Regulations

  • Short-term investment limit: FPIs were restricted from investing more than 30% of their total investment in corporate debt securities with residual maturity up to one year.
  • Concentration limit: For long-term FPIs, investment in a single corporate issuer could not exceed 15% of their corporate bond portfolio. For other FPIs, this limit was 10%.

Now both these limits have been withdrawn. FPIs can now invest more freely in corporate debt securities, without being constrained by maturity or issuer concentration limits. This relaxation comes in the backdrop of the financial markets facing volatility due to geopolitical tensions and tariff wars. 

Corporate Debt Securities:

Financial instruments issued by companies to raise funds from investors. In return the companies offer the investors regular interest payments and the return of principal at maturity. E.g., Corporate bonds, debentures, Non-Convertible debentures, Commercial Papers etc.

Significance of the Reforms: 

  • Liberalise India’s debt market: It is a major step toward liberalising India's debt market.
  • Retention of foreign capital: It gives more options to FPIs to park the proceeds from their sale in the equity markets in corporate debt securities at attractive interest rates without having to immediately repatriate the proceeds.
  • Diversification of Investor base: Attracts a wider range of global institutional investors, reducing dependence on domestic funding sources.
  • Improve Market liquidity: Eased investment norms are likely to increase demand for corporate debt instruments, thereby improving market liquidity, reducing cost of capital for firms, and promoting financial deepening.

Challenges

Despite these changes, foreign investors might still hesitate to invest more due to two key reasons:  

1. Narrowing US-India 10-Year Yield Spread:

  • The 10-year yield spread is the difference between the interest rates (yields) on Indian government bonds and US government bonds.
  • A higher spread means Indian bonds offer better returns compared to US bonds, which attracts foreign investors.
  • Currently, this spread has narrowed to around 200 basis points (2%), meaning the extra return from Indian bonds is less attractive. This reduces the incentive for FPIs to take the additional risk of investing in India.

2. External Risk Factors:

  • External Risk Factors like geopolitical tensions, US Federal Reserve interest rate changes etc. These risks can make investors risk-averse, leading them to prefer safer assets in developed countries.

While the reforms create better long-term conditions for corporate bond market growth, meaningful FPI inflows may only materialise when yields are attractive.

CCI notifies New Definitions to curb Predatory Pricing

Context: The Competition Commission of India (CCI) has notified the CCI (Determination of Cost of Production) Regulations, 2025, by repealing the previous Cost Regulations 2009. The move aims to restrict deep discounting practices and provide clarity in digital market regulation.

Relevance of the Topic: Prelims: Key facts related to Predatory Pricing and Cost Regulations 2025. 

Major Highlights: 

  • CCI introduces stringent rules to curb predatory pricing in e-commerce, removing market value as a benchmark and revising cost definitions. 
  • CCI has issued new rules to define how it will calculate the cost of a product or service in order to determine if a company is engaging in predatory pricing or not. 

What is Predatory Pricing?

  • Under Section 4 of the Competition Act, 2002, predatory pricing is defined as the sale of goods or provision of services at a price below the cost of production, with a view to reduce competition or eliminate competitors.
  • Competition law prohibits predatory pricing as an abusive conduct by a dominant enterprise. 
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Cost Regulations 2025

The Cost Regulations 2025 establish a sector-agnostic, cost-based framework that is flexible and adaptable to various industries, including the digital economy.

  • New cost definitions: The cost of a product or service is now defined as its Average Variable Cost (AVC). Average variable cost is the total variable cost divided by total output during a particular period. Here, the total variable cost refers to the total cost (including everything that goes into the production of that good or service) minus the fixed cost and fixed overheads attributable to the product.
  • No sector-specific metrics: The CCI decided to avoid using sector-specific definitions of cost, and instead has decided to view them on a case-by-case basis, enabling the commission to consider the unique features and evolving dynamics of digital markets when evaluating alleged predatory conduct.
  • Market value not accepted as cost benchmark: It was suggested that CCI should consider market price instead of internal costs to judge predatory pricing, especially in industries with unusual pricing models. But as per CCI, the market price is not a true measure of cost, and it will continue using actual production costs for assessment, as this is more accurate and globally accepted. 

This reform not only reinforces regulatory fairness but also promotes healthy market competition, benefiting consumers and new entrants alike.

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