International Relations

A Continental Trade Bridge: India–EU Free Trade Pact and Its Strategic Promise

Context: India and the European Union (EU) have announced the conclusion of negotiations on a landmark Free Trade Agreement (FTA), often described as the “mother of all trade deals.” The pact creates a free-trade zone covering around 2 billion people and nearly 25% of global GDP. The agreement is expected to apply provisionally by Q4 2026 and enter into full force by early 2027, subject to ratification. A biennial review clause will allow both sides to address implementation challenges and update provisions.

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Key Provisions of the India–EU FTA

1. Trade in Goods

  • EU Commitments: Elimination of tariffs on 99.5% of India’s exports by value, with 90.7% receiving immediate zero-duty access.
  • India’s Concessions: Tariff concessions covering 97.5% of EU import value, across 92.1% of tariff lines.
  • Phased Liberalisation: Customs duties on 49.6% of European tariff lines are eliminated immediately, while the rest see phased reductions over 5, 7, and 10 years.
  • Labour-Intensive Sectors: Textiles, apparel, leather, footwear, gems and jewellery, and marine products gain immediate duty-free access.
  • Sensitive Exclusions: Dairy, cereals, poultry, and sugar are excluded to protect domestic producers.
  • Automobiles: Import duties on European cars will be reduced to 10%, subject to an annual quota of 250,000 units.

2. Trade in Services

  • Market Access: India gains access to 144 EU service subsectors, while the EU gains access to 102 Indian subsectors.
  • Mobility of Professionals: Binding commitments to ease visa norms for Indian IT professionals, nurses, and consultants.
  • Commercial Presence: European firms gain enhanced access to India’s financial, legal, and maritime services.
  • Family Rights: Spouses and dependents of intra-corporate transferees are granted entry and work rights.
  • AYUSH Recognition: AYUSH practitioners may work under home titles in EU states where these practices are unregulated.
  • Digital Safeguards: Prohibition on mandatory source-code transfer, protecting Indian IT intellectual property.

3. Regulatory and Safeguard Measures

  • Rules of Origin: Product-Specific Rules with self-certified Statements of Origin, reducing compliance costs.
  • SPS Equivalence: Alignment of Sanitary and Phytosanitary (SPS) measures to reduce rejection of Indian agri-exports.
  • CBAM Dialogue: A technical mechanism to align carbon reporting standards under the EU’s Carbon Border Adjustment Mechanism (CBAM).
  • Rebalancing Rights: India can impose retaliatory tariffs if EU non-tariff barriers negate trade benefits.

Strategic Significance for India

The FTA enhances India’s strategic autonomy by diversifying trade ties beyond the US–China axis. Duty-free access improves export competitiveness, especially against countries like Bangladesh and Vietnam. Cheaper European machinery can spur industrial modernisation, while regulatory alignment may upgrade India’s quality and standards ecosystem.

Key Concerns

Persistent phytosanitary barriers, CBAM-related costs for steel and aluminium, competitive pressure on MSMEs, the absence of EU “data secure” status, and historically complex rules of origin could limit gains if not addressed proactively.

Conclusion

The India–EU FTA is a transformative step toward deep economic integration. Its success will depend on effective implementation, MSME support, and sustained regulatory dialogue.

Tariffs, Tehran and India’s Tightrope Diplomacy

Context: The United States has announced a 25% tariff on any country maintaining trade relations with Iran, effective immediately. The move forms part of Washington’s renewed “maximum pressure” strategy, aimed at penalising Tehran for its violent crackdown on nationwide anti-government protests. Unlike targeted sanctions, the tariff adopts a secondary pressure mechanism, raising costs for third countries engaging with Iran and intensifying geopolitical spillovers.

Implications of Escalating U.S.–Iran Tensions for India

1. Trade and Export Pressures

  • India’s exporters face the risk of cumulative duties rising up to 75% on Iran-linked trade routes or entities.
  • Such tariffs could render Indian exports commercially unviable, especially in agriculture and chemicals.

2. Energy Security Risks

  • Nearly 50% of India’s crude oil imports transit through the Strait of Hormuz.
  • Any escalation in the Gulf could trigger oil price shocks, widening India’s current account deficit and fuelling inflation.

3. Strategic Connectivity at Risk

  • India’s 10-year contract (2024) to operate the Shahid Beheshti terminal at Chabahar Port faces uncertainty under tighter U.S. sanctions.
  • Chabahar is critical for bypassing Pakistan and accessing Afghanistan, Central Asia, and Eurasia via the International North–South Transport Corridor (INSTC).

4. Diaspora and Remittance Concerns

  • Around 10 million Indians live and work in the Gulf region.
  • Regional instability could threaten diaspora safety and disrupt stable remittance inflows, a key source of foreign exchange.

5. Diplomatic Dilemma

  • As BRICS Chair in 2026, India may be required to host Iran’s President, while simultaneously safeguarding access to the $27 trillion U.S. market.
  • This underscores India’s challenge of maintaining strategic autonomy amid intensifying bloc politics.

6. Shifting Regional Alignments

  • Reduced engagement with Iran under U.S. pressure may push Tehran closer to China, reinforcing their 25-year strategic cooperation pact and altering West Asian power balances.

India–Iran Relations: A Snapshot

Foundations of Engagement

  • Diplomatic relations established: 1950 (75 years).
  • Bilateral trade (FY 2024–25): ~$1.6 billion
    • Indian exports: ~$1.2 billion.

Trade Composition

  • Indian exports: Basmati rice, organic chemicals, fruits, nuts, pharmaceuticals.

Strategic Projects

  • Chabahar Port: Long-term Indian operational role strengthens regional connectivity.
  • INSTC: Multimodal corridor linking India to Russia and Europe via Iran, reducing time and cost of trade.

Energy Dimension

  • Iran was among India’s top three crude oil suppliers until imports ceased in 2019 due to U.S. sanctions.

Areas of Convergence

  • Afghan stability
  • Counter-terrorism
  • Regional connectivity
  • Support for a multipolar world order

Areas of Divergence

  • U.S. sanctions regime
  • Iran–Israel tensions
  • China’s expanding influence
  • Regional proxy conflicts

Multilateral Platforms

  • BRICS, Shanghai Cooperation Organisation (SCO), Indian Ocean Rim Association (IORA).

Way Forward for India

  • Diplomatic Balancing: Maintain calibrated engagement with Iran while ensuring compliance-sensitive trade structures.
  • Energy Diversification: Expand sourcing from strategic petroleum reserves, renewables, and alternative suppliers.
  • Sanctions Navigation: Use rupee-based trade mechanisms and humanitarian exemptions where permissible.
  • Strategic Autonomy: Reinforce India’s non-aligned but interest-driven foreign policy, especially within BRICS and SCO.

India–UK Defence Partnership: A Strategic Indo-Pacific Convergence

Context (Indian Express): India and the United Kingdom are deepening defence cooperation through regular joint exercises and a 10-year Defence Industrial Roadmap, signalling a long-term strategic alignment, particularly in the Indo-Pacific.

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Key Pillars of the India–UK Defence Partnership

1. Operational Interoperability

Regular high-end military exercises enhance joint warfighting capabilities, interoperability, and mutual trust.
Example: Ajeya Warrior 2025 focused on complex multi-domain operations in desert conditions in Rajasthan, improving coordination between the two armies.

2. Maritime Cooperation

Shared Indo-Pacific priorities have strengthened naval coordination in sea control, carrier operations, and air defence.
Example: KONKAN 2025 witnessed India’s aircraft carrier INS Vikrant operating alongside the UK’s HMS Prince of Wales, reflecting advanced carrier strike cooperation.

3. Defence Industrial Synergy

The 10-year Defence Industrial Roadmap leverages complementary strengths—India’s manufacturing scale and the UK’s advanced defence technologies.
Objective: Support Make in India, co-production, technology transfer, and job creation in both countries.

4. High-Value Defence Deals

Government-to-government agreements reinforce strategic trust and operational readiness.
Example: The £350-million deal for supplying Lightweight Multirole Missiles (LMM) to the Indian Army enhances short-range air defence capabilities.

5. Advanced Technology Collaboration

Cooperation extends to future-oriented defence technologies.
Example: Joint work on maritime electric propulsion systems aims to improve efficiency, stealth, and sustainability of Indian naval platforms.

Strategic Potential of the Partnership

  • Indo-Pacific Stability:
    Joint carrier operations and maritime coordination strengthen a rules-based order and deter coercive actions in critical sea lanes.
  • Counter-Terrorism & Intelligence:
    Enhanced intelligence sharing and joint training improve the ability to counter cross-border terrorism, cyber threats, and hybrid warfare.
  • Resilient Defence Supply Chains:
    Industrial collaboration reduces dependence on single-source suppliers, supporting diversified and secure global defence ecosystems.
  • Humanitarian Assistance & Disaster Relief (HADR):
    Combined strengths in logistics, airlift, and medical response improve joint capacity for evacuations and disaster relief across the region.
  • Emerging Technology Governance:
    Cooperation in cyber security, AI-enabled defence systems, and space domain awareness helps shape global norms for responsible military technology use.

Conclusion

The India–UK defence partnership has evolved from episodic engagement to a structured, long-term strategic collaboration.

By combining operational cooperation with industrial and technological synergy, it contributes significantly to India’s defence modernisation and to stability in the Indo-Pacific.

Escalating Narcotics Threat in India

India is facing an intensifying narcotics challenge marked by the rapid spread of synthetic drugs, technology-enabled trafficking, and deeper penetration of transnational cartels. According to recent reports, drug seizures increased by nearly 55% in 2024, signalling both rising supply and improved enforcement. The shift from traditional plant-based drugs to synthetics has significantly altered the threat landscape.

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Reasons for Rising Drug Abuse in India

1. Synthetic Drug Proliferation

Synthetic narcotics such as methamphetamine, fentanyl, and nitazenes are easier to manufacture, conceal, and transport than natural drugs. In 2024 alone, over 700 kg of methamphetamine was seized in Gujarat, highlighting India’s growing role in synthetic drug networks.

2. Geographical Vulnerability

India lies between the Golden Crescent (Afghanistan–Pakistan–Iran) and the Golden Triangle (Myanmar–Laos–Thailand), making it a natural transit and destination hub. In 2024, 3,132 kg of narcotics were seized off the Gujarat coast, underscoring maritime smuggling risks.

3. Technology-Enabled Trafficking

The use of the dark web, encrypted messaging platforms, and cryptocurrency payments has enabled anonymous drug trade and doorstep delivery, complicating law-enforcement detection.

4. Cartel Penetration and Chemical Diversion

Global drug cartels increasingly exploit India’s large pharmaceutical and chemical sector to source precursors. The discovery of a methamphetamine lab linked to the Jalisco cartel in Greater Noida (2024) illustrates the scale of international involvement.

5. Social Vulnerabilities

Youth unemployment, mental stress, and peer pressure increase susceptibility to substance abuse. India recorded approximately 58,000 drug-linked deaths in 2019, accounting for nearly 17% of global drug-related deaths, indicating the human cost of the crisis.

India’s Actions Against Drug Abuse

  • NDPS Act, 1985: Criminalises production, possession, trafficking, and consumption of narcotic drugs and psychotropic substances.
  • Border & Maritime Surveillance: Deployment of drones, sensors, and patrol vessels; 294 Pakistani drones were intercepted in Punjab in 2024.
  • Narco-Coordination Centre (NCORD): Integrates intelligence sharing among central and state agencies; 1,200+ inter-agency operations coordinated since 2022.
  • International Cooperation: Active engagement with UNODC, FATF, and INTERPOL to track trafficking routes and financial flows.

Way Forward

  • Harm-Reduction Approach: Treat addiction as a public-health issue rather than solely a criminal offence; Portugal’s model reduced drug deaths by over 70%.
  • Precursor Chemical Controls: Strengthen monitoring of pharmaceutical supply chains using integrated tracking systems.
  • Tech-Driven Policing: Use AI-based drone detection, crypto-asset tracing, and social-media analytics.
  • Financial Disruption: Target money laundering, hawala channels, and cartel financing through FATF-aligned financial intelligence.

Thailand Seeks BRICS Membership: Expanding South–South Cooperation

Context: Thailand has formally expressed interest in joining BRICS and has sought India’s support ahead of India’s BRICS chairmanship in 2026. This development comes soon after India–Thailand relations were elevated to a Strategic Partnership in 2024, underscoring deeper cooperation in trade, connectivity, security, and regional groupings such as ASEAN-led mechanisms.

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What is BRICS?

BRICS is an informal grouping of major emerging economies aimed at reforming global governance and strengthening cooperation among countries of the Global South.

  • Evolution: Originally formed as BRIC in 2009, with South Africa joining in 2011, expanding it to BRICS.
  • Nature: It has no permanent headquarters; chairmanship and annual summits rotate among members.
  • Members (2025):
    • Founders: Brazil, Russia, India, China, South Africa
    • Expanded members (2024): United Arab Emirates, Egypt, Ethiopia, Iran
    • Indonesia joined in 2025, marking deeper outreach to Southeast Asia.

Objectives and Focus Areas

BRICS seeks to:

  • Promote a multipolar world order.
  • Reform global institutions such as the IMF and World Bank.
  • Enhance South–South economic and political cooperation.
  • Reduce over-dependence on Western-dominated financial systems.

A key institutional pillar is the New Development Bank (NDB), established in 2015, which finances infrastructure and sustainable development projects in member and partner countries. The NDB is headquartered in Shanghai, China.

Global Significance

  • Population Share: Over 40% of the world’s population.
  • Economic Weight: Around 37–40% of global GDP (PPP terms).
  • Geopolitical Role: Increasingly viewed as an alternative to the G7, particularly for developing and emerging economies seeking greater strategic autonomy.

Why Thailand’s Interest Matters

  • Regional Outreach: Thailand’s entry would strengthen BRICS’ footprint in Southeast Asia, complementing Indonesia’s membership.
  • Economic Diversification: Thailand seeks alternative growth platforms amid global economic uncertainty.
  • India’s Role: With India chairing BRICS in 2026, New Delhi’s support could shape membership norms, expansion criteria, and ASEAN–BRICS linkages.
  • India–Thailand Synergy: Strategic Partnership status provides a strong diplomatic foundation for cooperation within BRICS frameworks.

Conclusion

Thailand’s interest in BRICS reflects the grouping’s growing appeal as a platform for inclusive global governance and South–South cooperation. As BRICS expands cautiously, India’s upcoming chairmanship will be pivotal in balancing institutional coherence with strategic inclusivity.

India–Russia Relations: Strategic Continuity Amid Global Flux

Context: According to The Hindu, Russia has reiterated its resolve to withstand external pressures and deepen economic partnerships. In this backdrop, Russian President Vladimir Putin’s visit to India, his first since the onset of the Ukraine conflict, signals the continuity of a time-tested bilateral relationship despite shifting global geopolitics.

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Evolution and Strategic Basis

India–Russia relations are anchored in a Special and Privileged Strategic Partnership, built on strategic autonomy, mutual trust, and convergence on a multipolar world order. Russia continues to support India’s bid for permanent membership of the UN Security Council, reinforcing diplomatic alignment on global governance reforms.

Economic and Trade Engagement

Bilateral trade has expanded rapidly, reaching USD 68.7 billion in FY 2024–25, largely driven by India’s increased imports of discounted Russian crude oil.

This energy-driven trade surge has helped India manage inflationary pressures while offering Russia alternative markets amid Western sanctions. Both sides are now seeking diversification into pharmaceuticals, fertilisers, coal, and critical minerals to ensure balanced trade.

Connectivity and Regional Outreach

Strategic connectivity projects underpin long-term cooperation.

  • The International North–South Transport Corridor (INSTC) reduces transit time between India, Central Asia, and Russia via Iran.
  • The proposed Chennai–Vladivostok Maritime Corridor enhances India’s access to the Russian Far East, supporting Act East–Eurasia convergence.

Defence and Security Cooperation

Russia remains India’s largest defence supplier, forming the backbone of India’s military inventory. The 10-Year Defence Cooperation Agreement (2021–2031) provides institutional stability.

  • Joint manufacturing of BrahMos supersonic cruise missiles and AK-203 assault rifles exemplifies defence industrial collaboration and technology transfer.
  • The annual INDRA military exercise strengthens interoperability and counter-terror cooperation.

Energy and Nuclear Collaboration

Energy remains a strategic pillar. Russia is currently India’s largest crude oil supplier. In the nuclear domain, the Kudankulam Nuclear Power Plant stands as a flagship symbol of trust, contributing to India’s clean energy transition and energy security.

Soft Power and Cultural Links

People-to-people ties are promoted through cultural and educational initiatives such as ‘Namaste Russia’, with institutions like the Jawaharlal Nehru Cultural Centre fostering academic exchanges and cultural diplomacy.

Significance for India

India–Russia ties provide strategic balance in a polarised world, ensure defence preparedness, enhance energy security, and preserve India’s strategic autonomy amid competing global alignments.

India Warns of Growing Bioterrorism Threat

At the 50th-anniversary conference of the Biological Weapons Convention (BWC), India’s External Affairs Minister cautioned that bioterrorism is no longer a hypothetical risk but an emerging global reality.

Rapid advances in biotechnology, inexpensive gene-editing tools, and weak international oversight have expanded opportunities for non-state actors to misuse biological agents.

Bioterrorism involves the deliberate release of bacteria, viruses, toxins, or engineered pathogens to cause mass illness, disrupt economies, and spread fear. The COVID-19 pandemic exposed serious gaps in global preparedness, demonstrating how easily biological threats can escalate across borders.

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Biological Weapons Convention (BWC)

The BWC, also known as the Biological and Toxin Weapons Convention, is the world’s first multilateral disarmament treaty eliminating an entire class of weapons of mass destruction.

Negotiated in Geneva (1969–1971) and entering into force in 1975, it bans the development, production, stockpiling, and acquisition of biological weapons.

The BWC complements the 1925 Geneva Protocol, which prohibited only the use of biological weapons but not their possession. Today the Convention has 188 States Parties, including India (ratified 1974), and 4 Signatories yet to ratify (Egypt, Haiti, Somalia, Syria).

Five states—including Israel and Chad—have neither signed nor acceded. A Review Conference takes place every five years to strengthen implementation.

Why Bioterrorism Is a Serious Concern

Technological and geopolitical changes have intensified risks:

  • Low-cost gene editing: CRISPR kits costing under ₹50,000 increase accessibility.
  • Rising terror interest: A 2024 UNSC study found 35+ groups attempted to procure biological agents.
  • Weak surveillance: 191 countries reported monitoring failures during the 2020–22 pandemic.
  • Dual-use danger: WHO notes that 42% of high-risk labs lack adequate oversight.
  • Synthetic biology boom: A projected $30–35 billion market by 2030 raises misuse potential.

Weaknesses in the BWC Framework

Despite its importance, the BWC struggles with structural limitations:

  • No verification mechanism to inspect labs or confirm compliance.
  • No permanent technical body for scientific risk assessment.
  • Lack of mandatory reporting of pathogen inventories or research activities.
  • Poor compliance culture: Only 19% of member states regularly file confidence-building measures.

India’s Contributions to Strengthening Biosecurity

India has adopted institutional, legal, and diplomatic measures:

  • 1989 Biosecurity Rules regulating hazardous microorganisms and genetically engineered organisms.
  • WMD Prohibition Act, 2005 criminalising illegal manufacture, financing, or transfer of WMDs.
  • SCOMET Export Controls monitoring high-risk biological materials (Category-2).
  • India–France proposal for a BWC Article VII assistance database.
  • ITEC training programmes on UNSC 1540 and strategic trade controls.

Way Forward

  • Verification Protocol: Create an inspection-based mechanism similar to IAEA and OPCW.
  • Permanent BWC Secretariat for tracking gene-editing and dual-use risks.
  • Global Data-Sharing Network for outbreak alerts and unusual lab activity.
  • National Biosecurity Law integrating existing rules, export controls, and disaster-response frameworks.

Strengthening the BWC is essential for ensuring that scientific progress does not become a pathway to global insecurity.

India–UAE Third CEPA Joint Committee Meeting

Context: India and the United Arab Emirates (UAE) convened the third Joint Committee Meeting under the Comprehensive Economic Partnership Agreement (CEPA) in New Delhi. The meeting reviewed CEPA’s progress since its signing in 2022 and outlined measures to deepen economic, regulatory, and strategic cooperation.

About CEPA

The India–UAE CEPA, signed in 2022, is India’s first comprehensive economic partnership agreement with any West Asian nation. It aims to:

  • Liberalise trade in goods and services
  • Boost investments
  • Reduce tariff barriers
  • Facilitate customs cooperation
  • Strengthen supply-chain connectivity

The India–UAE Joint Commission is the institutional mechanism responsible for monitoring implementation and ensuring alignment with CEPA objectives.

Key Outcomes of the Third CEPA Joint Committee Meeting

1. Non-Oil Trade Target

Both countries reaffirmed their commitment to achieving USD 100 billion in non-oil, non-precious metal trade by 2030. This target aligns with CEPA’s goal of diversifying economic relations beyond hydrocarbons and gold.

2. Competitive Bidding for Gold TRQ

India informed the UAE of its new online competitive bidding system for Gold Tariff Rate Quota (TRQ) allocations under CEPA.

  • A TRQ allows a specified quantity of imports at a lower or zero tariff.
  • This mechanism is expected to make gold imports more transparent and predictable for industry stakeholders.

3. Regulatory and Sectoral Cooperation

The discussions covered:

  • Pharmaceutical trade facilitation, including faster regulatory approvals
  • Early signing of the Food Safety MoU to harmonise SPS (sanitary and phytosanitary) standards
  • Anti-dumping discussions, aimed at preventing market distortions and ensuring fair trade

Together, these measures aim to reduce non-tariff barriers and strengthen sector-specific value chains.

India–UAE Bilateral Relations

1. Trade Relations

  • UAE is India’s third-largest trading partner and second-largest export destination.
  • Bilateral trade crossed USD 100 billion in FY 2024–25, growing 19.6% year-on-year.

2. Investment Cooperation

  • UAE sovereign wealth funds have committed USD 75 billion for Indian infrastructure.
  • The Bilateral Investment Treaty (BIT) 2024 strengthens investor confidence and long-term capital flow.

3. Energy Security

  • UAE is India’s fourth-largest crude oil supplier.
  • It is the only country storing crude oil in India’s Strategic Petroleum Reserves (SPRs), strengthening supply security.

4. Defence and Security

  • Defence cooperation includes high-level exchanges, joint exercises like Desert Cyclone and Zayed Talwar, and maritime security collaboration in the Indian Ocean Region.

5. Climate Partnership

  • India and UAE jointly launched the Global Green Credit Initiative (GGCI) to promote international climate stewardship and sustainable practices.

6. Diaspora and Culture

  • The UAE hosts 3.5 million Indians, forming its largest expatriate community.
  • The inauguration of the BAPS Hindu Temple in Abu Dhabi represents a milestone in cultural diplomacy.

Conclusion

The third CEPA Joint Committee meeting reinforces India–UAE relations as one of the most dynamic bilateral partnerships in the Indo-West Asian region.

With deeper trade integration, regulatory harmonisation, major infrastructure investments, and strong diaspora linkages, the relationship is poised to evolve into a comprehensive strategic and economic partnership aligned with India’s long-term global trade goals.

India’s First-Ever LPG Import Deal with the United States

Context: For the first time, India has signed a structured, year-long agreement to import 2.2 million tonnes (MMT) of Liquefied Petroleum Gas (LPG) from the United States, starting in 2026. Indian public sector refiners, including IOC, BPCL, and HPCL, finalised the contract, marking a major diversification in India’s energy supply chain.

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Significance of the Deal

1. First Formal LPG Agreement

This is the first structured contract between India and the US for LPG supply, forming nearly 10% of India’s annual LPG imports.

2. Shift in Price Benchmarking

  • The pricing will use the Mont Belvieu benchmark instead of the traditional Saudi Aramco Contract Price (CP).
  • Mont Belvieu (Texas) is the world’s largest LPG storage and pricing hub, where daily spot prices reflect North American market dynamics.
  • This shift reduces India’s dependence on Middle Eastern pricing mechanisms and allows greater price transparency.

3. Strategic Value

  • Enhances energy security by diversifying supply sources beyond West Asia.
  • Strengthens the India–US strategic partnership, complementing cooperation on critical minerals, LNG, technology, and defence.
  • Provides a hedge against geopolitical disruptions in the Gulf region.

India’s LPG Landscape

1. Global Ranking

India is the second-largest LPG consumer worldwide (32 MMT annual demand), after China.

2. Sectoral Consumption

  • Domestic kitchens: ~90% of demand
  • Commercial & Industrial: Hotels, eateries, industries
  • Automotive: Auto-LPG vehicles

3. Import Dependence

India imports 60%+ of its LPG needs, mainly from:

  • UAE
  • Saudi Arabia
  • Qatar
  • Kuwait

The US deal reduces over-reliance on West Asia.

4. PMUY – Social Impact

The Pradhan Mantri Ujjwala Yojana (PMUY) provides deposit-free LPG connections to low-income women and targeted subsidies for up to 9 refills annually, making LPG a central pillar of India’s clean energy transition.

About Liquefied Petroleum Gas (LPG)

  • Composition: Primarily propane (C₃H₈) and butane (C₄H₁₀).
  • State of Matter:
    • Gas at normal temperature & pressure.
    • Converts to liquid under moderate pressure or cooling → enabling efficient storage & transport.
  • Volume Ratio: Liquid LPG occupies 1/250th of its gaseous volume.
  • Safety: Naturally odourless; ethyl mercaptan is added for leak detection.
  • Risk: LPG vapour is heavier than air and collects at low points, increasing explosion risk.
  • Global Producers:
    • Largest Producer: United States
    • Other major producers: Saudi Arabia, China
    • Top Exporters: United States & Qatar

Conclusion

India’s first-ever LPG deal with the US marks a major milestone in its energy diplomacy. By shifting to the Mont Belvieu benchmark and reducing dependence on West Asian suppliers, India strengthens its energy security, supply resilience, and geopolitical leverage, while deepening its strategic partnership with the United States.

India–Angola Relations: Strengthening South–South Cooperation

Context: President Droupadi Murmu’s state visit to Angola marked 40 years of India–Angola diplomatic relations and reaffirmed the deepening strategic partnership between the two nations.
Her address to the Angolan Parliament highlighted shared values of democracy, mutual development, and cooperation across sectors including energy, defence, agriculture, and renewable energy.

Key Areas of Cooperation

1. Energy Partnership

  • Angola is India’s second-largest supplier of crude oil, after Nigeria.
  • Petroleum products account for nearly 90% of bilateral trade, making energy the backbone of the relationship.
  • Collaboration is being explored in refining, petrochemicals, and renewable energy.

2. Trade and Investment

  • India is among Angola’s top three trading partners, accounting for about 10% of Angola’s global trade.
  • Bilateral trade stood around USD 4 billion (2024–25).
  • Indian companies are active in IT, pharmaceuticals, agriculture machinery, and manufacturing in Angola.
  • Both nations are exploring preferential trade arrangements under India–Africa cooperation frameworks.

3. Defence Cooperation

  • A $200 million Line of Credit (LoC) from India supports the modernisation of Angola’s defence forces, including training, infrastructure, and equipment upgrades.
  • Training exchanges and technical assistance are increasing under the ITEC (Indian Technical and Economic Cooperation) programme.

4. Agricultural Collaboration

  • The May 2025 MoU expanded cooperation in irrigation, seeds, and capacity building to enhance Angola’s food security.
  • India’s expertise in dryland farming and agro-processing supports Angola’s diversification away from oil dependence.

5. Global Alliances

Angola has joined several India-led global initiatives:

  • International Solar Alliance (ISA)
  • Global Biofuels Alliance (GBA)
  • International Big Cat Alliance (IBCA)
    These collaborations reflect shared commitment to sustainable development and environmental protection.

About Angola

  • Location: Southwestern Africa; borders Congo (north), DRC (northeast), Zambia (southeast), Namibia (south), and the Atlantic Ocean (west).
  • Capital: Luanda — also the main seaport and commercial hub.
  • Natural Resources: Rich in oil, diamonds, and minerals.
  • Topography: Narrow coastal plain rising to a central plateau; Mount Moco (2,620 m) is the highest peak.

Strategic Significance

  • Enhances South–South cooperation within the framework of India’s Vision for Africa.
  • Supports diversification of India’s energy imports beyond the Middle East.
  • Strengthens India’s diplomatic footprint in Lusophone Africa (Portuguese-speaking nations).
  • Promotes shared global interests through multilateral platforms like the G20 and UN.

Conclusion

India–Angola ties embody the spirit of mutual growth, sustainability, and solidarity among developing nations.
As both countries pursue inclusive growth and energy security, their partnership stands as a cornerstone of India’s broader Africa outreach strategy.

15th India–Vietnam Defence Policy Dialogue

Context: The 15th edition of the India–Vietnam Defence Policy Dialogue (DPD) was held in Hanoi to review progress under the Joint Vision Statement 2030, which identifies defence cooperation as a central pillar of the Comprehensive Strategic Partnership between the two nations.

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Major Outcomes

  • MoU on Submarine Search and Rescue: Facilitates coordinated operations during maritime emergencies.
  • Letter of Intent on Defence Industry Cooperation: Strengthens collaboration in joint R&D, production, and technology transfer.
  • Maritime Security: Both sides reaffirmed their commitment to a free and open Indo-Pacific.

Broader Context of India–Vietnam Relations

  • Diplomatic relations were upgraded to a Comprehensive Strategic Partnership in 2016.
  • The BrahMos missile deal (worth $700 million in 2025) is India’s largest defence export to date.
  • The Plan of Action 2024–2028 focuses on political, economic, and defence cooperation.
  • Vietnam hosted the Holy Relics of Lord Buddha from India in May 2025, strengthening cultural diplomacy.
  • Regular Political Consultations and Strategic Dialogues ensure continuity in bilateral engagement.

Strategic Importance

  1. Act East Policy: Vietnam remains a vital anchor of India’s engagement with ASEAN.
  2. Indo-Pacific Vision: Collaboration enhances maritime stability against Chinese assertiveness in the South China Sea.
  3. Defence Exports: Supports India’s goal of becoming a major defence manufacturer and exporter.
  4. Technology Cooperation: Promotes indigenisation and joint development of advanced systems.
  5. Regional Balancing: Strengthens India’s position in regional power dynamics.

Conclusion

The 15th DPD reaffirms India–Vietnam relations as a model of mutual trust and strategic depth.

It demonstrates how New Delhi’s diplomacy in Southeast Asia combines defence cooperation, cultural outreach, and developmental support to advance a stable and rules-based Indo-Pacific order.

India Secures Six-Month U.S. Waiver for Chabahar Port Operations

Context: The United States has granted India a six-month sanctions waiver for the operation and development of Iran’s Chabahar Port, effective October 29, 2025.
This move allows India to continue strategic work at the port without facing penalties under U.S. sanctions laws.

Background: U.S. Sanctions on Iran

The sanctions originate from the Iran Freedom and Counter-Proliferation Act (IFCA), Section 1244, targeting entities engaged in Iran’s energy, shipping, shipbuilding, and port sectors.
Violations could result in asset freezes, exclusion from the U.S. financial system, and business restrictions.

The U.S. employs these sanctions to maintain “maximum economic pressure” on Iran—aiming to halt nuclear proliferation, curb Tehran’s support to regional militias, and push for a stricter nuclear accord.

In 2018, the U.S. granted India a waiver recognizing Chabahar’s role in Afghanistan’s post-war reconstruction and as a humanitarian trade hub. However, following the Taliban takeover in 2021 and shifting geopolitical priorities, the exemption was revoked in September 2025—until this recent six-month reinstatement.

Chabahar Port: India’s Strategic Gateway

Located in Iran’s Sistan-Balochistan province, Chabahar sits on the Gulf of Oman, only 170 km west of Pakistan’s Gwadar Port (operated by China under CPEC).
It is Iran’s only oceanic port and provides India direct access to Afghanistan, Central Asia, and Europe, bypassing Pakistan.

Key Terminals:

  1. Shahid Kalantari Terminal:
    Developed in the 1980s for conventional cargo operations, reducing Iran’s dependence on the congested Strait of Hormuz.
  2. Shahid Beheshti Terminal:
    Operated by India Ports Global Limited (IPGL), it forms the backbone of India’s connectivity projects—enabling cargo movement to Afghanistan and Central Asia via the International North-South Transport Corridor (INSTC).

Strategic Importance for India

  • Connectivity & Trade: Strengthens India’s trade links to Eurasia, offering a secure supply chain alternative amidst global disruptions.
  • Regional Balancing: Counters China’s Gwadar influence and enhances India’s maritime and logistical presence in the region.
  • Energy & Security: Serves as a logistical node for energy imports and humanitarian outreach to landlocked neighbors.
  • Geopolitical Significance: Reflects India’s ability to maintain strategic autonomy while managing ties with both Washington and Tehran.

Conclusion

The temporary U.S. waiver reaffirms Chabahar’s role as a strategic lifeline for India’s regional outreach. While the exemption offers short-term relief, long-term success will depend on sustained diplomatic engagement with both the U.S. and Iran, ensuring the port’s full integration into India’s connectivity vision under INSTC and Viksit Bharat 2047.

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