International Relations & Security

India-Saudi Arabia Relations

Context: Recently, the Indian Prime Minister was on a two-day state visit to Saudi Arabia. India’s Prime Minister and Saudi Crown Prince co-chaired the 2nd India–Saudi Arabia Strategic Partnership Council (SPC) at the Royal Palace in Jeddah, Saudi Arabia.

Relevance of the Topic:Mains: Bilateral Relations: India and Saudi Arabia. 

Major Highlights of the Visit

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The visit helped deepen the India-Saudi Arabia partnership that has been on a remarkable growth trajectory since 2016. The countries: 

  • Reinforced their traditional energy partnership by sealing an agreement on setting up two oil refineries in India. India is the world’s third-largest importer and consumer of oil, relying on imports for >85% of its crude oil requirements.
  • Added two new ministerial committees – one on defence and another on tourism – under the Strategic Partnership Council (SPC). 
  • Vowed to conclude bilateral investment treaty as early as possible. The two countries agreed to start talks to conclude the India-Gulf Cooperation Council (GCC) Free Trade Agreement. 
  • Concluded a preliminary pact on cooperation in space activities for peaceful purposes.
  • Pledged to work together in new and emerging technology domains like artificial intelligence, cybersecurity, and semiconductors.  
  • Pledged deeper cooperation in maritime border security, combating transnational crime, narcotics, and drug trafficking. 

India-Saudi Arabia Relations

  • Economic Relations: India is the 2nd largest trade partner of Saudi Arabia whereas Saudi Arabia is the 5th largest trading partner of India. In FY24, bilateral trade stood at USD ~43 billion.
  • Energy Partnership: Saudi Arabia was India’s 3rd largest crude and petroleum products sourcing destination for FY24. Beyond joint projects in the refining and petrochemical sector, the countries are exploring innovative uses of hydrocarbons; grid automation, connectivity, and security; energy storage; green hydrogen transport.
  • Strategic Partnership Council: SPC was set up in 2019 with two ministerial committees, one focusing on political and security issues and the second looking at the economy and investment. It serves to steer the bilateral relationship to include newer areas of cooperation like green energy, health, technology, and agriculture.
  • Defence Cooperation: The countries recently concluded their first land forces exercises (SADA TANSEEQ) and two rounds of naval exercises (AL MOHED AL HINDI). In 2024, an agreement was signed for defence export from India to Saudi Arabia worth USD 225 million. 
  • Strategic and security cooperation: Riyadh Declaration (2010) has raised the level of partnership to strategic partnership which will help to tackle terrorism and radicalization. Both cooperate on ensuring the security and safety of waterways in the Indian Ocean region and the Gulf region.
  • People-to-People ties: Around 2.7 million Indian nationals reside in Saudi Arabia, reflecting the strong people- to-people bonds. The annual Hajj pilgrimage is another important component of India-Saudi Arabia bilateral relations.

Significance of Saudi Arabia: 

  • Look West Strategy: Improving relations with Saudi Arabia is an integral part of India’s “Look West Strategy,” which seeks to bind India closer to the countries of this region. 
  • Security Cooperation: Saudi Arabia has been sending back Indian fugitives wanted for criminal and terrorist activities in India. Saudi Arabia can use its political and financial clout to get Pakistan to halt anti-India terrorism. 
  • Investment Potential: India is looking at attracting Saudi Arabia’s Public Investment Fund to invest in its National Investment and Infrastructure Fund (NIIF). Saudi Arabia has pledged an investment of up to $100 billion in India.
  • Stakeholder in IMEEC: India-Middle East-Europe Economic Corridor was unveiled in 2023. Saudi Arabia is a key member of this ambitious and cost-effective ship-to-rail transit network.

India presents itself as a solid strategic and economic partner to Saudi Arabia, as Riyadh seeks strategic autonomy and establishes itself as a global middle power. 

Third United Nations Ocean Conference

Context: Third United Nations Ocean Conference (UNOC3) represents a historic opportunity for the global community to build strong, action-oriented consensus for the protection, sustainable use, and better governance of the oceans. 

Why is protecting the Oceans urgent?

1. Significance of Oceans: 

  • Oceans cover over 70% of the Earth's surface, are a global commons essential for climate regulation, biodiversity, food security, livelihoods, and international trade.
  • Oceans generate 50% of the oxygen we need, absorb 25% of all carbon dioxide emissions and capture 90% of the excess heat generated from global warming. 

2. Present Challenges: 

  • Lack of Governance: High seas which account for more than 60% of the ocean remain largely unregulated, leading to overfishing, illegal activities, and environmental degradation.
  • Rising Pollution: Over 8 million tons of plastic end up in oceans every year (Science journal, 2020).
  • Resource Overexploitation: One-third of global fish stocks are overexploited, threatening marine food security. 
  • Impacts of Climate Change: Ocean acidification, coral bleaching, rising sea levels, and destruction of marine habitats are direct consequences.
  • Livelihood Risk: One in three people rely on the ocean for their livelihood, thus, safeguarding marine ecosystems becomes important. 
world ocean

In this context, UNOC3 represents an unprecedented opportunity to foster multilateral action, develop binding commitments, and implement tangible strategies to safeguard marine ecosystems.

United Nations Ocean Conference

  • High-level United Nations Conference to support the implementation of Sustainable Development Goal (SDG) 14: Conserve and sustainably use the oceans, seas and marine resources.
  • It provides a platform to mobilise political will, partnership and funding to reverse the decline in the health of our ocean for people, planet and prosperity.
  • First United Nations Ocean Conference (2017): New York, the US. 
  • Second United Nations Ocean Conference (2022): Lisbon, Portugal

3rd United Nations Ocean Conference: 

  • Third United Nations Ocean Conference (UNOC3) is scheduled from June 9-13, 2025 at Nice, France. It will be co-hosted by France and Costa Rica.
  • It is a major global effort to protect oceans, promote sustainable use of marine resources, and advance international cooperation.
  • Theme: Accelerating action and mobilising all actors to conserve and sustainably use the ocean. 

Key Objectives of UNOC3

  • Operationalising BBNJ Agreement: The lack of surveillance and common rules is causing a real social and environmental disaster, with massive hydrocarbon and plastic pollution, illegal, unreported and unregulated fishing, and the capture of protected and endangered mammals. To end this legal vacuum, the BBNJ Agreement needs to be ratified by 60 countries, so that it may come into force.
  • Enhancing Financing for Blue Economy: Mobilising public and private investments in sustainable marine sectors like eco-friendly shipping, fisheries, tourism, and ocean-based renewable energy.
  • Advancing Ocean Knowledge and Innovation: The depths of the ocean which covers 70% of the Earth’s surface remain unknown. There is a need to mobilise science, innovation, and education to better understand the ocean and raise public awareness. Improving ocean mapping, research, and monitoring technologies to fill scientific gaps.
  • Building a Global Pact: Aim to adopt the "Nice Ocean Agreements", setting a global action framework for oceans, aligned with SDG-14 (Life Below Water).

Significance of the Conference

  • Ten years after COP21 and the Paris Agreement, which established a binding global framework to limit climate change, the UNOC3 is a historic opportunity.
  • The “Nice Ocean Agreements” can form an international pact for the conservation and sustainable use of the ocean, fully in line with the Sustainable Development Goals adopted by the UN in 2015. 

Also Read: BBNJ negotiations - Treaty of the High Seas 

UNOC3 can become a historic inflection point if nations rise above narrow interests and work collaboratively for the stewardship of oceans and securing them for future generations. 

Why does Crimea matter to Russia?

Context: The US President Donald Trump has claimed that Crimea (a part of Ukraine) would stay with Russia, a move which is seen as a new pressure tactic on Ukraine to make concessions to end the war.

Relevance of the Topic: Prelims: Location of Crimea; Importance of Crimea for Russia. 

Location of Crimea

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  • Crimea is a strategically important peninsula located in Eastern Europe, bordered by the Black Sea to the west and south, and the smaller Sea of Azov to the northeast.
  • Crimea lies to the south of Ukraine, and to the west of Russia's southern regions. It is connected to mainland Ukraine via the Isthmus of Perekop and to Russia via the Kerch Strait.
  • Crimea was part of independent Ukraine since the country split from the Soviet Union in 1991. Crimea was annexed by Russia in 2014.

Significance of Crimea for Russia

  • Quest for Warm Water: Russia’s coastline stretches more than 37,000 kms. However, much of it is to the north of the Arctic Circle, where sea ice makes many Russian ports unusable in the winter. Thus, control over Crimea and specifically its Black Sea ports gives Russia access to warm waters that stay navigable even during harsh winters.
  • Gateway to the Mediterranean: 
    • Black Sea provides Russia with a direct maritime link to the Mediterranean Sea and from there, to southern Europe, Africa, and West Asia. 
    • To reach the Mediterranean, Russian ships must pass through two narrow, Turkish-controlled straits: the Bosphorus Strait and the Dardanelles Strait. These straits are vital chokepoints. If any hostile power controls them, it could block Russia’s ships from accessing the Mediterranean, affecting Russia’s economy and military operations. 
    • Crimea’s location on the Black Sea allows Russia to safeguard its crucial southern access to the Mediterranean and maintain its strategic and economic independence.
  • Importance of Sevastopol: Sevastopol is a deep-water port in Crimea and the main base of Russia’s Black Sea Fleet. Other nearby Russian ports are shallow and less useful for large naval ships. By controlling Sevastopol, Russia ensures strong naval presence in the Black Sea and avoids dependence on Ukraine.
  • Geopolitical Buffer Zone: Russia fears that Ukraine could join NATO, like Romania and Bulgaria. Losing Ukraine would leave Russia exposed in the Black Sea. Securing Crimea strengthens Russia’s defenses and provides a strategic base.
  • Securing water supply: Crimea depends on water from the Dnieper River through the North Crimean Canal. After 2014, Ukraine blocked the canal, causing a water crisis. Controlling Crimea and the canal is vital for providing water to Crimea’s people. 

What is the 1972 Simla Agreement?

Context: Pakistan has suspended the 1972 Simla Agreement, a crucial peace treaty established after the 1971 war between India and Pakistan.

Relevance of the Topic: Prelims: Key facts related to Simla Agreement.

Simla Agreement 

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  • Bilateral treaty signed on July 2, 1972, in Simla, Himachal Pradesh between India and Pakistan, by former Indian Prime Minister Indira Gandhi and then Pakistani President Zulfikar Ali Bhutto. 
  • It came in the immediate aftermath of the 1971 Indo-Pakistani war, which led to the secession of East Pakistan and the creation of an independent Bangladesh.
  • Aim: To promote peace, avoid future conflict, and lay down the framework for bilateral relations between India and Pakistan.
  • It primarily deals with: 
    • How bilateral relations are to be conducted between the two countries?
    • Recognition of the Line of Control (LoC) as the de facto border.
  • It does not create legally binding obligations and does not include a formal dispute resolution mechanism, making its enforcement dependent on mutual trust and political will.

Key provisions of the Simla Agreement: 

  • Guided by UN Charter: India and Pakistan agreed that their relations would be based on the principles of the United Nations Charter which promotes peace, sovereignty, and non-aggression.
  • Peaceful bilateral resolution: Both nations committed to resolving disputes through bilateral negotiations, without involving third-party mediation — a clause India has consistently highlighted in opposing international interference, especially in the Kashmir issue.
  • Line of Control: The 1971 ceasefire line was redesignated as the Line of Control (LoC), marking a de facto border in Jammu and Kashmir. Neither party would attempt to alter it unilaterally, nor use force to change the status quo.
  • Return of Territory: India returned over 13,000 km² of land captured during the war, demonstrating goodwill and commitment to peace. However, it retained strategic zones like Turtuk and Chalunka in the Chorbat Valley.
  • Non-Interference and Mutual Respect: Both nations agreed to refrain from interfering in each other’s internal affairs and reaffirmed commitment to sovereign equality and territorial integrity.
  • Recognition of Bangladesh: Though not immediate, the agreement set the stage for Pakistan's eventual diplomatic recognition of Bangladesh.

Pakistan has frequently violated the spirit and letter of the Simla Agreement, it has repeatedly violated the ceasefire, tried to annex positions on the Indian side of the LoC in Kargil in 1999, and frequently sponsored non-state actors to breach India’s sovereignty.

Potential Impact of Suspension

  • Increase ceasefire violations in militarised regions like J&K and Ladakh, and attempts to alter the LoC status. 
  • Undermines bilateralism: The suspension could mark a strategic shift in Pakistan's approach. It might now seek third-party involvement — possibly from the United Nations or allies like China or the Organisation of Islamic Cooperation (OIC) to internationalise the Kashmir conflict.
  • Contravention of Vienna convention: Pakistan’s unilateral suspension of the Simla Agreement may breach the Vienna Convention on the Law of Treaties (1969). 
  • Sets a precedent for unilateral exit of other regional/ bilateral agreements. 

The Simla Agreement has been dead for a long time. In fact, even the ongoing suspension of talks between the two nations can be seen as a breach of the Simla Agreement. Pakistan suspending the treaty only means that it no longer recognises the LoC.  

The Global Pandemic Treaty

Context: The world’s first Pandemic Agreement was formally adopted by member states of the World Health Assembly (WHA) in Geneva. The landmark decision by the 78th WHA (WHO’s top decision-making body) comes after more than three years of negotiations. It is designed to better prevent and respond to global health crises. 

The WHO Pandemic Agreement is the second international legal agreement negotiated under Article 19 of the WHO Constitution. The first is the WHO Framework Convention on Tobacco Control, which was adopted in 2003 and entered into force in 2005.

Relevance of the Topic : Prelims: Key facts related to Global pandemic treaty.

Draft Global Pandemic Treaty

  • Rationale: The treaty is designed to improve the international community's preparedness and response to future pandemics by ensuring more equitable access to vaccines, treatments, and resources.
  • Need: COVID-19 pandemic revealed the glaring gaps in global health systems and highlighted the lack of effective international cooperation in responding to health emergencies. A 2022 study revealed that more than one million lives could have been saved if COVID-19 vaccines had been shared more equitably with lower-income countries.

Key Elements of the Treaty

  • Pathogen access and benefit sharing system:
    • Countries would share scientific data such as pathogen samples and genomic sequences with pharmaceutical companies.
    • In return, participating manufacturers would use this shared data to create vaccines or treatments. They will have to allocate 10% of vaccines, diagnostics, and therapeutics to WHO, and another 10% at affordable prices. This aims to ensure that scientific cooperation leads to fair access for all.
  • Technology sharing: Member states should promote and otherwise facilitate or incentivise the exchange of technology and know-how to help manufacturers in developing nations make their own drugs and vaccines.
  • National policies on Publicly funded research: When governments fund research (to universities or companies) to develop medicines or vaccines, they must include clauses or agreements that require timely and equitable access to resulting drugs or diagnostics during pandemics.

Ratification Process of WHO Pandemic Agreement: 

  • The Agreement outlines steps to prepare for its implementation. This includes launching a process to draft and negotiate a Pathogen Access and Benefit Sharing system (PABS) through an Intergovernmental Working Group. The result of this process will be considered at the 2026 World Health Assembly (WHA).
  • Once the WHA adopts the PABS annex, the WHO Pandemic Agreement will then be open for signature and ratification, including by national legislative bodies. After 60 ratifications, the Agreement will enter into force.

Limitations

Although the agreement on the draft treaty has been hailed as groundbreaking and historic, several experts have said that it has a limited scope.

  • No Enforcement Power: The treaty relies on voluntary cooperation and has no enforcement mechanism. WHO would have no way to ensure countries adhere to the terms to which they had agreed. WHO does not have the power to mandate or impose any requirements such as ban or accept travellers, impose vaccination mandates, or implement lockdown.
  • Absence of clear IP Protection: Without strong IP protection (like patents), pharmaceutical companies may be reluctant to invest in pandemic-related products, fearing compulsory licensing, technology transfer mandates, or loss of market exclusivity.
  • Unclear Implementation: The pathogen-sharing system still lacks operational clarity raising concerns about how it will work in a real emergency.
  • Absence of the United States: The US, a major pharma and vaccine hub, withdrew from negotiations. Experts say its absence will weaken the agreement.

The global pandemic treaty marks a milestone in international health diplomacy. But without enforcement powers, universal participation, or clarity on execution, it may fall short when the next pandemic strikes. 

Impacts of Attari border closure on India-Pakistan Trade

Context: In the wake of the Pahalgam terror attack, India has decided to downgrade diplomatic ties with Pakistan and close the Integrated Check Post (ICP) at Attari border with immediate effect. This is set to halt cross-border trade worth Rs 3886 crores between India and Pakistan.

Location: Attari-Wagah Border

  • Attari-Wagah Border is the international border between India and Pakistan, located near the towns of Attari, Punjab in India and Wagah in Pakistan.
  • Attari is India’s first Land Port and the only permitted land route for trade with Pakistan. Located 28 kilometres from Amritsar, spread across 120 acres and directly connected to National Highway-I, the check post has played a crucial role in cross-border trade, particularly in imports from Afghanistan.
  • The border checkpost is most famous for the Wagah Border Ceremony (Beating Retreat Ceremony). While ceremonious in nature, the drill is steeped in symbolism, representing both rivalry and mutual recognition. 
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Not to scale

India-Pakistan Trade

  • In the last five years, the India-Pakistan trade has declined significantly, from Rs 4370 crore in FY19 to Rs 2257 crores in FY23. India imposed a 200% duty on Pakistani goods after the Pulwama attack in 2019. 
  • The trade witnessed a recovery in FY24, reaching Rs 3,886 crore, the highest in the last five years.

Trade via Attari Border

  • The Attari-Wagah land route was first opened in 2005. The ICP at Attari was inaugurated in 2012, with provisions of facilities for fast and cost-effective land trade.
  • Major exports from India to Pakistan through this route: soybeans, poultry feed, vegetables, and plastic products.
  • India imports goods like dry fruits, dates, gypsum, and cement from Pakistan. 

Impacts of the the Attari Border Closure on India and Pakistan

Impacts on India:

  • Many small-scale industries depend heavily on cross-border exports, and the suspension of trade is expected to cause both direct and indirect job losses—affecting transporters, porters, labourers, and small business owners associated with the trade supply chain.
  • Closure will impact Punjab's economy, particularly in the Amritsar-Attari belt. Straw reapers and cotton yarn are key exports from Punjab via the Attari-Wagah route.
  • Afghan imports into India and vice versa, many of which pass through Pakistan via the Attari-Wagah route, may also face logistical challenges.

Impact on Pakistan:

  • Pakistan's economy is struggling with high inflation, political instability, and a downgraded growth forecast of 2.6% by the IMF. The closure of the Attari ICP will worsen these issues, especially for traders dependent on the land route for exports to India.

Is the World Trade Organization still relevant?

Context: World Trade Organization (WTO) is an intergovernmental organisation that regulates and facilitates international trade among member countries. Experts argue that over the years, the WTO has gradually lost its compass and is in need of massive reforms.

Relevance of the Topic:Mains:  WTO: Importance and challenges.

About World Trade Organization

  • Origin: WTO came into being in 1995. WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War.
  • Primary Aim: To facilitate smooth, predictable and free trade among nations. 
  • It has 166 members accounting for 98% of world trade.
  • The WTO Secretariat is based in Geneva (Switzerland).
  • Non-discrimination principles: Most-Favoured Nation and National Treatment
About World Trade Organization

Challenges faced by WTO

The WTO was expected to perform three functions — the negotiating function, the dispute settlement function, and the trade monitoring function — and it is not able to perform any of them. 

  • Stalemate in Negotiations: Doha Development Round (2001) remains unresolved due to disagreements between developed and developing nations on issues like agricultural subsidies, industrial tariffs, and services.
  • Dysfunctional dispute settlement system: The Appellate body or the dispute settlement mechanism of WTO has also been rendered dysfunctional. The U.S. has blocked appointments to the Appellate body, the ultimate court of appeal. This resulted in pending of many trade disputes at WTO.
  • Consensus mechanism: In the WTO, the principle of decision making by consensus has resulted in the slowdown of multilateral agreements, as it requires 100% of the members to go forward.
  • Protectionist polices: WTO has been ineffective in controlling protectionist policies pursued by the member countries. E.g.,
    • The US misused the “National security clause" to increase import duties on steel and aluminium products from China.  
    • The recent imposition of Reciprocal Tariffs by the US is a complete erosion of the MFN (most-favoured-nation) principle. 
  • Misuse of developing country status: Developed economies like Singapore and China have taken unfair advantage of “developing country” status to seek temporary exemptions from commitments under various multilateral trade agreements. 
  • Inequality in Global Trade: Developing countries often criticise the WTO for favouring developed nations due to imbalances in negotiation power.

Also Read: Should India exit the WTO? 

Also Read: WTO Agreement on Fisheries Subsidies 

In the wake of rising protectionism, proliferation of exclusionary trade blocks and rising bilateral free trade agreements, it is imperative to reform the WTO system to ensure rule-based multilateral trade across the countries.

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. 

Illegality of US Reciprocal Tariffs

Context: Reciprocal tariffs imposed by the US are seen as illegal under World Trade Organisation (WTO), especially as they violate the principle of Most-Favoured-Nation (MFN).

What is MFN and the Principle of Reciprocity?

  • Most Favoured Nation (MFN) status is one of the cornerstones of the WTO trade law. 
  • MFN works on the principle of reciprocity i.e., quid pro quo principle where both nations enjoy MFN status of each other.
    • Each member of WTO treats all the other members equally as the most-favoured trading partners. 
    • If a country improves the benefits that it gives to one trading partner, it has to give the same best treatment to all the other WTO members.

Illegality of US Reciprocal Tariffs

As per MFN principle, WTO member countries must treat all members equally in trade matters. The Reciprocal tariffs imposed by the US selectively targets certain countries, thus breaching this principle.

The world’s response on this issue has been divided into three categories:

  • Open Criticism and Legal Action: Countries like Singapore, Brazil, China, Japan, and Canada have publicly condemned the US for violating WTO rules, filed disputes at the WTO (China and Canada) and imposed retaliatory tariffs (E.g., China and Canada).
  • Diplomatic Restraint: States like Fiji and Italy have expressed dissatisfaction, albeit in less direct terms, characterising the US tariffs as ‘unfair’ or ‘mistaken’.
  • Strategic Silence: Some countries like India have chosen to maintain silence regarding the US’s illegal actions. India, a historical proponent of Global South solidarity and trade multilateralism, has abstained from a collective WTO members' statement opposing the US tariff regime.

India’s Diplomatic Posture

India has maintained strategic silence for two reasons: 

  • Bilateral Trade Negotiations with the US: India is negotiating a Bilateral Trade Agreement (BTA) with the US and may fear that criticising the US could derail or complicate negotiations. 
  • Dysfunctional WTO Dispute Settlement Mechanism: Filing a case in WTO is futile due to the paralysis of the WTO Appellate Body since 2019. 

Criticism of India’s Strategic Silence

  • Speaking against a violation of WTO rules does not mean retaliating against the US, rather, it signals commitment to legal norms.
  • Filing a complaint in WTO, even if symbolic, challenges power with principle. Vocal opposition to illegal tariffs, even in the absence of effective WTO enforcement, can serve as a signal of India’s principled foreign policy and reinforce its credibility among the Global South.

The current juncture presents an opportunity for India to reassert its commitment to a fair, rule-based international economic order. As multilateralism faces increasing strain from unilateralist tendencies, India must balance its national interest with normative leadership.  

Indian President’s visit to Portugal

Context: Recently, Indian President Smt. Dropadi Murmu visited Portugal - first Presidential tour in nearly three decades. The visit to Portugal is historic, as it coincides with the 50th anniversary of diplomatic relations between India and Portugal. The visit comes amid India’s growing engagement with Europe. 

India-Portugal Ties

1. Historical Connections:

  • Relations between India and Portugal date back to over 500 years when the Portuguese explorer Vasco da Gama led a sea-faring expedition to Calicut (Kozhikode) in Kerala in 1498, making him the first to discover a direct sea route between Europe and India. This enabled Portugal to directly access the highly profitable Indian spice market and emerge as a dominant colonial trading power.
  • In 1502 AD, the Portuguese established a trading centre at Kollam (formerly Quilon) in Kerala. They later acquired several other enclaves on the western coast including Diu, Daman, Dadra & Nagar Haveli and Goa in 1510. Goa subsequently became the capital of Portuguese activities, which stretched from Malacca (Malaysia) in the east to Mozambique in the west.
  • Liberation of Goa (1961): Indian military action under “Operation Vijay” liberated Goa in 1961, ending over 450 years of Portuguese rule. 
  • India and Portugal finally signed a treaty in 1974 on recognition of India’s sovereignty over Goa, Daman & Diu, Dadra & Nagar Haveli. The treaty came into force in 1975.

2. Political Relations & Cooperation in Multilateral Fora:

  • Portugal has consistently supported India’s permanent membership in the United Nations Security Council (UNSC) and the Nuclear Suppliers Group. 
  • The idea of starting an India-EU Summit was mooted for the first time by Portugal in 2000. 

3. Economic Relations:

  • India-Portugal bilateral trade in FY23 amounted to US $1.2 billion; and is presently valued at $1.5 billion.
  • Portugal is the first country in Europe with whom India has signed a Migration and Mobility Agreement (2021). It has paved the way for enhanced cooperation in labour mobility between the two countries. 
  • India and Portugal have signed an India-Portugal Double Taxation Agreement (DTAA). 

4. Other Cooperations:

  • MOU on Cultural Cooperation facilitates a large number of cultural performances, youth and literary exchanges, seminars, art exhibitions etc. The Indian origin diaspora in Portugal is estimated to be over 1.25 lakhs.
  • India-Portugal Startup Hub (2020) serves as a platform to facilitate collaboration and innovation between startups, investors, and entrepreneurs from both countries. 

Location of Portugal

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  • Portugal is located on the Iberian Peninsula, in South Western Europe. 
  • Portugal is bordered by Spain in the north and east; and by the Atlantic Ocean in the south and west. 
  • The small archipelagos of Azores and Madeira are in the south and southwest of Portugal in the Atlantic Ocean. They are autonomous regions of Portugal.
  • Portugal shares its maritime borders with Morocco.
  • Capital: Lisbon 

International Big Cat Alliance

Context: International Big Cat Alliance (IBCA) signed an agreement with the Government of India, formalising India as the headquarters and secretariat of this treaty-based intergovernmental organisation. 

Relevance of the Topic: Prelims: Key facts related to the International Big Cat Alliance.

International Big Cat Alliance

  • IBCA is a multi-country, multi-agency coalition of 96 big cat range countries, and none-range countries.
  • Launched by India in 2023 during the 50th year celebrations of Project Tiger.
  • Focuses on the global conservation of seven big cats and their habits  –  the tiger, lion, leopard, snow leopard, puma, jaguar and cheetah.
  • IBCA has become a treaty-based international organisation upon ratification by India, and other founding members.
  • India has committed Rs.150 crore over five years for infrastructure development, administrative functions, and recurring expenses.
  • It symbolises India’s commitment to "One Earth, One Family, One Future”, and showcases India’s role as a responsible ecological power.
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Objectives of IBCA

  • Global Collaboration: Create a platform for knowledge exchange, technical assistance, and joint conservation efforts.
  • Research and Monitoring: Promote data sharing, habitat mapping, and genetic studies for better species management.
  • Combat Illegal Wildlife Trade: Strengthen intelligence-sharing and enforcement cooperation against poaching and trafficking.
  • Sustainable Development: Ensure that big cat conservation aligns with the goals of biodiversity, climate action, and local community livelihoods.

India as a Global Talent Hub

Context: Amid global labour crisis, the government should focus on setting up an institutional framework to drive overseas employment. 

Relevance of the Topic: Mains: India’s Migration Strategy: Migrants and Diaspora Welfare. 

India’s Demographic Advantage

  • India has a young population and high human capital, placing it at a strategic advantage to supply global labour needs. 
  • India’s migrants generate $125 billion in remittances annually, about 3% of GDP—higher than any merchandise export sector. However, migrants form only 1.3% of India's population, compared to Mexico (8%), Philippines (5%), and Bangladesh, showing an untapped potential.
  • High-income countries are projected to face a labour gap of 40-50 million by 2030, rising to 120-160 million by 2040, across sectors like healthcare, engineering, teaching, and construction. E.g., Europe: 73% in truck drivers, 50%+ in engineers, nurses, cleaners, and construction workers.

Vision for India as a global talent hub:

  • India for the World Approach: Complement Make in India with a strategy that sees India as a global talent provider.
  • Developmental impact: Remittances are more impactful than goods exports. A 10% rise in remittances can reduce poverty by 3.5% in low-income nations.
  • Curbing illegal migration: Legal structured migration pathways can reduce reliance on unsafe and exploitative channels. It also enhances India’s global image and addresses developed countries’ concerns about permanent immigration.

Steps to Build India’s Migration Strategy

  • Institutional Framework for Overseas Employment: Strengthen Ministry of External Affairs' migration department. Create state-level migration bodies to verify recruiters, ensure worker welfare, and assist with reintegration. Set up migration support desks in embassies. 
  • Skilling and accreditation aligned to Global standards: Integrate foreign languages and international job skills into curricula. Work towards mutual recognition agreements with major economies. Promote joint certifications with global institutions.
  • Affordable financing mechanisms for migrants: Presently, migration costs are Rs 1-2 lakh for GCC, Rs 5-10 lakh for Europe. India can implement models like the Philippines’ Employer Staffing Agency-Pay model where employers/recruiters bear pre-departure expenses.
  • Government-to-Government (G2G) agreements: Remove visa barriers, enhance integration, and ensure qualification recognition (Philippines’ example of securing G2G deals with 65+ countries).
  • Mobility industry body: Establish an industry body to represent India’s overseas recruitment sector, address fragmentation and lack of regulation and set standards for ethical recruitment.
  • Robust Migrant welfare framework: Based on ILO guidelines to ensure minimum wages and contract standards, timely salary, safe housing, healthcare, legal aid and grievance redressal mechanisms for migrants. 
  • Support for returning migrants: Facilitate reintegration into the domestic economy and tap into skills and global exposure to spur local development.
Steps to Build India’s Migration Strategy

Conclusion:  By nurturing talent mobility, India can convert its youth bulge into a global economic and diplomatic strength, boost remittances and enhance India’s international influence and reputation.