BRICS Grouping
Why in News?
The recent threat by the U.S. President to impose 10% tariffs on members of the BRICS grouping, following their summit in Rio de Janeiro, highlights ongoing tensions in international trade relations.
Key Takeaways
- BRICS is an acronym for Brazil, Russia, India, China, and South Africa, originally formed as BRIC in 2001.
- South Africa joined the group in 2010, expanding BRIC to BRICS.
- The objectives include enhancing cooperation among members and increasing the influence of the Global South in global governance.
- New members include Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia.
- The combined population of BRICS nations is approximately 3.5 billion, accounting for 45% of the global population.
- BRICS economies represent over $28.5 trillion, approximately 28% of the world's economy.
Additional Details
- New Development Bank (NDB): Established by BRICS to mobilize resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs). It started operations in 2015 and has its headquarters in Shanghai, China.
- The NDB allows membership to any United Nations member, where voting power is proportional to subscribed shares, ensuring BRICS nations maintain at least 55% voting power without any country holding veto power.
The BRICS grouping continues to evolve, aiming to bolster economic collaboration and promote sustainable development while enhancing its role in global governance.
Trump Taking Aim at BRICS
Why in News?
President Trump has recently threatened to impose a 10% tariff on nations participating in the BRICS alliance after their 2025 Rio summit. This action is part of his ongoing pattern of trade-related warnings and reflects his perception of BRICS as a significant threat to U.S. economic interests.
Key Takeaways
- Trump considers BRICS a challenge to U.S. dominance due to its push for a common currency and alternatives to the U.S. dollar.
- The BRICS summit in Rio prompted Trump to threaten additional tariffs specifically targeting member nations.
- BRICS members denied that their initiatives are aimed at replacing the U.S. dollar.
- India has distanced itself from the notion that BRICS is anti-American.
Additional Details
- Trump's Tariff Threats: Trump has warned of a 10% tariff on countries aligning with BRICS, viewing it as a direct penalty for membership. His earlier threats included up to 100% tariffs, though the implementation timeline remains uncertain.
- De-dollarisation: This term refers to the effort to reduce reliance on the U.S. dollar in global finance. BRICS leaders assert that their use of national currencies is not intended to replace the dollar, especially in light of recent geopolitical tensions.
- Emerging economies are advocating for a diversified financial system to mitigate vulnerabilities caused by over-dependence on the dollar.
- During the 2025 Rio summit, BRICS leaders condemned unilateral trade tariffs, indirectly criticizing U.S. trade policies.
In conclusion, while President Trump perceives BRICS as a threat to U.S. economic interests, BRICS members have collectively maintained that their initiatives do not aim to undermine the U.S. dollar. The dynamics within BRICS showcase a mix of cooperation and differing perspectives among its members, particularly concerning relations with the U.S.
America's Shift and India's Strategic Opportunities
Why in News?
Recent changes in U.S. domestic policies related to universities, companies, and immigration are causing short-term economic pain for India. However, these developments also present long-term strategic opportunities and may signify the end of Pax Americana.
Key Takeaways
- The U.S.-China tensions create a manufacturing opportunity for India.
- India can implement bold domestic reforms to strengthen its economy.
- Indian educational institutions can emerge as global leaders in research and innovation.
- Stricter U.S. immigration policies pose risks to India's remittance flow and student enrollment.
Opportunities for India
- Manufacturing Opportunity: As tensions between the U.S. and China disrupt global supply chains, companies may seek to diversify production to India. For example, Apple is shifting iPhone assembly to India, highlighting its emerging role as a China+1 manufacturing hub.
- Chance to Implement Bold Domestic Reforms: With reduced global dependence, India can focus on enhancing its internal systems through deregulation, decentralization, and investment in human capital. A proposed 180-day plan aims to cut compliance burdens, empower state governments, and grant autonomy to top institutions like IITs and IIMs.
- Higher Education and Innovation Ecosystem: As American universities face pressures, India can position its institutions as leaders in global research and innovation. Granting poorna swaraj (full autonomy) to institutions like IISc, Ashoka, and IITs can help them climb global university rankings and drive home-grown R&D.
Risks for India
- Decline in Remittances and Student Enrollment: Stricter U.S. immigration and visa policies may reduce the flow of Indian students and workers, affecting remittances and global exposure. The tightening of H-1B visas under Trump led to fewer Indian tech workers entering the U.S., impacting brain circulation.
- Disruption to Exports and Supply Chains: Protectionist trade measures and tariffs can disrupt India's export-dependent sectors such as software, pharmaceuticals, and electronics.
Impact of U.S. Research and Immigration on India's Growth
- Skilled Immigration: Indian immigrants in the U.S. significantly contribute to tech and scientific advancements, creating a reverse knowledge flow to India. Over 70% of H-1B visas in 2022 were granted to Indians, many of whom later founded companies or returned with valuable expertise.
- High Remittances Fueling Economic Stability: The Indian diaspora in the U.S. contributes a substantial share of remittance inflows, supporting India's foreign exchange reserves and rural economy. According to the World Bank (2023), the U.S. contributed over $23 billion in remittances to India, accounting for nearly 25% of India’s total remittance receipts.
- Advancing Indian R&D and Education: U.S. federal funding has indirectly boosted India’s scientific growth through collaborations and return migration. Research funded by the National Institutes of Health (NIH) contributed to 99% of new drugs approved between 2010–2019. Indian researchers trained in U.S. labs or funded via the U.S.-India Science and Technology Forum (USISTEF) have driven innovation in biotech, vaccines, and AI in India.
Implications of a Weakening Pax Americana for India's Strategy
The term "Pax Americana" refers to the period of relative global peace and stability under U.S. dominance, particularly after World War II. With the decline of U.S. dominance, India must:
- Push for Strategic Autonomy and Multipolar Engagement: Strengthen ties with multiple global powers while maintaining independence in foreign policy. India's active role in BRICS, QUAD, and IMEC reflects its efforts to diversify strategic partnerships and avoid overdependence on any single nation.
- Accelerate Domestic Reforms for Economic Resilience: Focus on internal strength through investments in infrastructure and skills. Initiatives like PLI schemes, Digital Public Infrastructure, and Make in India exemplify moves toward economic resilience.
- Enhance Role in Global Governance and Norm Setting: A weakening U.S. opens space for India to shape the global agenda on issues such as climate change, digital governance, and international trade. India's G20 presidency and promotion of Digital Public Infrastructure as a global good underline its leadership in global norm-setting.
Key Reforms to Boost India's Global Economic Standing
- Simplification: Streamlining regulations for employers by reducing compliance burdens and eliminating redundant filings can foster a more business-friendly environment. A focused effort to cut red tape would significantly improve the ease of doing business and attract global investors.
- Decentralization: Empower local governments by transferring funds, functions, and personnel, enabling them to drive regional economic development and create globally competitive manufacturing ecosystems.
- Autonomy: Granting full autonomy to higher education and research institutions such as IITs, IISc, and IIMs allows them to innovate, form global collaborations, and improve their standings in international rankings.
In summary, the evolving geopolitical landscape presents both challenges and opportunities for India. By strategically leveraging its strengths and addressing potential risks, India can enhance its global economic standing and navigate the complexities of a changing world order.
Enforcement Crackdown in ‘U.S. Donkey Route’ Case
Why in News?
The Enforcement Directorate (ED) and the National Investigation Agency (NIA) of India have intensified their investigations into human trafficking networks exploiting the "Donkey Route." This illegal immigration pathway is primarily used by Indian migrants attempting to reach the United States. The ongoing probe has uncovered a complex network involving traffickers, agents, fake visa consultancies, and international conduits, posing serious risks to national security, human rights, and foreign relations.
Key Takeaways
- Increased ED and NIA actions against human trafficking.
- Understanding the "Donkey Route" and its implications.
- Economic impact of human trafficking on migrants.
- India's role in global illegal migration trends.
- Need for policy responses to address these issues.
Additional Details
- Recent ED and NIA Crackdown:
- ED raids in Punjab and Haryana focus on money laundering linked to illegal immigration.
- NIA has arrested key operatives connected to Gagandeep Singh, an alleged kingpin who trafficked over 100 Indians to the U.S. via Latin America, charging ₹45 lakh per person.
- The "Donkey Route" (or "Dunki") Explained:
- This term refers to perilous and illegal migration routes involving multiple border crossings, popularized by the 2023 film Dunki.
- Typical Journey Path: India → UAE → Latin America (Ecuador, Guyana, Bolivia) → Colombia → Panama (via Darién Gap) → Costa Rica → Nicaragua → Mexico → U.S.
- Hazards include dense forests, risks of assault, extortion, and dangerous pathways under the U.S.-Mexico border.
- Economic Dimensions of Human Trafficking:
- Migrants face costs ranging from ₹30-60 lakh, depending on the route.
- Local agents in India collaborate with international traffickers, facilitating illegal crossings and fraudulent practices.
- India’s Position in Global Illegal Migration:
- In 2022, 96,917 Indians were apprehended at the U.S. border, a significant increase from 30,662 in 2021.
- Over 700,000 undocumented Indians reside in the U.S., ranking third after Mexicans and Hondurans.
- Variations of Illegal Migration Routes:
- The student visa route through Canada involves agents arranging admissions to fake colleges, costing ₹50-60 lakh per person.
- A recent case highlighted the tragic death of three members of a Gujarati family at the U.S.-Canada border, prompting investigations into fraudulent agencies.
- Implications for India:
- National security risks associated with transnational criminal networks.
- Diplomatic strains due to India being a major source of undocumented migrants.
- Human rights violations faced by migrants, including extreme dangers and exploitation.
- Policy responses needed include strengthening emigration laws and regulating travel consultancies.
The "Donkey Route" epitomizes deep socio-economic desperation and systemic regulatory failures. While agencies like the ED and NIA have increased enforcement efforts, a comprehensive policy approach addressing demand, enforcement, international cooperation, and public awareness is crucial for tackling this multifaceted issue.
International Criminal Court (ICC) Issues Arrest Warrants for Taliban Leaders
Why in News?
The International Criminal Court (ICC) has recently issued arrest warrants for senior leaders of the Taliban in Afghanistan. This action is taken in response to the systematic persecution of women, which constitutes a crime against humanity.
Key Takeaways
- The ICC operates as the first permanent international court focused on prosecuting individuals for severe crimes.
- Established in 2002, the ICC is governed by the Rome Statute, which outlines its jurisdiction and functions.
Additional Details
- About the ICC:The ICC was established in 2002 under the Rome Statute (1998) and is headquartered in The Hague, Netherlands. It has a jurisdiction over four core crimes:
- Genocide
- Crimes against humanity
- War crimes
- Crime of aggression
- Membership: The ICC has 124 States Parties. Notable non-members include India, China, the USA, Russia, Israel, and Ukraine.
- Structure:
- Office of the Prosecutor - responsible for investigating and prosecuting cases.
- 18 Judges - elected for a term of 9 years.
- Assembly of States Parties - oversees the administration of the ICC.
- Trust Fund for Victims - provides assistance to victims of crimes.
- Detention Centre - where suspects are held.
- Funding: The annual budget for 2025 is approximately €195 million, primarily sourced from member states.
- Jurisdictional Reach: The ICC can prosecute crimes committed by nationals of member states or those referred by the UN Security Council, extending its jurisdiction to non-member states like Libya and Darfur.
- Challenges: The ICC faces significant hurdles including a lack of independent enforcement mechanisms, non-cooperation from non-member states, and political constraints affecting the execution of arrest warrants.
- Special Mechanisms: To improve enforcement of warrants, the ICC established the Arrest Working Group in 2016, which focuses on enhancing intelligence-sharing.
In summary, the ICC's recent action against Taliban leaders highlights its ongoing role in addressing crimes against humanity, particularly concerning the treatment of women. However, the court continues to navigate complex political landscapes and operational challenges.
India’s Critical Minerals Diplomacy - Strategic Engagement through Minilateral ‘Clubs’
Why in News?
India's involvement in global mini-lateral groupings, such as the Quad (comprising India, Japan, Australia, and the US) and the Minerals Security Partnership (MSP), signifies a strategic shift in its mineral diplomacy. This shift is particularly important due to the ongoing green energy transition and the increasing dependence on China for critical minerals. Recently, the Quad foreign ministers initiated the Critical Minerals Initiative aimed at securing and diversifying supply chains for minerals essential to clean technologies.
Key Takeaways
- Critical minerals are vital for economic growth and national security, yet their supply chains are often vulnerable.
- India's dependency on China for minerals like lithium and cobalt poses significant risks, highlighted by export controls on rare earth magnets.
Additional Details
- Importance of Critical Minerals: These minerals are necessary for green technologies, including electric vehicles (EVs), solar panels, batteries, and semiconductors.
- India faces challenges due to a weak domestic ecosystem, including underexplored reserves and a lack of advanced mining technology.
- Political instability in resource-rich countries can deter private investment, necessitating strategic mineral partnerships.
- Bilateral Agreements: India has made agreements with countries like Argentina and Zambia for exploration and mining, while partnerships with the UAE, UK, and US focus on processing and recycling. However, without guaranteed mineral inputs, processing facilities risk becoming stranded assets.
- Mini-lateral Clubs: Groupings like the Quad and MSP consolidate technical, financial, and diplomatic resources, facilitating blended finance and co-development of value chain projects.
- India can leverage foreign expertise from countries like Australia and Japan in exploration and refining processes, which can help mitigate investment risks and accelerate clean technology innovations.
In conclusion, India’s involvement in mineral mini-laterals such as the Quad and MSP is critical for securing supply chains for essential minerals, reducing dependence on China, and advancing its green technology goals. As India aspires to become a global leader in green technology, it is crucial to balance strategic partnerships with national interests, negotiate fair value chains, and ensure capacity building, all while maintaining its core developmental principles.
Israel Has Failed to Solve the Persian Puzzle
Why in News?
The Israeli military strike on Iran's nuclear infrastructure in June 2025, referred to as the 'Red Wedding', aimed to deliver a decisive blow to Iran's military capabilities. However, this operation exposed the limitations of Israeli power and the resilience of Iran amid complex geopolitical dynamics.
Key Takeaways
- The 'Red Wedding' strike aimed to incapacitate Iran's military leadership and nuclear facilities.
- Despite operational success, Israel faced strategic failure as Iran quickly retaliated and reorganized.
- The involvement of the U.S., particularly under President Trump, limited Israel's military options.
Additional Details
- Operational Success vs. Strategic Failure: The Israeli attack showcased tactical efficiency by targeting key nuclear sites and personnel. However, Iran's swift counteractions highlighted its resilience, undermining Israel's perceived control.
- The Trump Factor: Trump's return to office in 2025 influenced U.S. involvement, with limited air strikes ordered that curtailed Israel's longer-term military objectives.
- Iran's Resilience: Post-conflict, Iran managed to preserve its military structure and began recovery efforts, indicating the potential acceleration of its nuclear ambitions.
- Geopolitical Fallout: The aftermath revealed Israel's military dependence on U.S. support and the inadequacy of conventional deterrence against Iran's asymmetric strategies.
The conflict, having concluded with a ceasefire, illustrates that the ideological and strategic struggles between Israel and Iran are ongoing. Israel's inability to dismantle Iran's nuclear capabilities signifies that the challenges posed by Iran remain formidable, transforming the 'Red Wedding' from a tactical victory into a cautionary tale of overreach and resilience.
What is the Erasmus+ Programme?
Why in News?
A total of 101 Indian students, including 50 women, have recently been awarded the Erasmus+ scholarship for pursuing master's programs in Europe. This highlights the significance of the Erasmus+ Programme in promoting international academic mobility.
Key Takeaways
- The Erasmus+ Programme was launched in 1987 by the European Union.
- It supports international academic mobility by allowing students to study at multiple European universities.
- The programme covers tuition fees, travel costs, and living expenses.
Additional Details
- Objectives of Erasmus+: To support the educational, professional, and personal development of individuals in Europe and partner countries.
- The programme aims to promote growth, employment, social cohesion, and innovation.
- Erasmus+ enhances European identity and encourages active citizenship.
- Learning Mobility: It facilitates the mobility of pupils, students, teachers, and trainers, fostering cooperation and innovation in education.
- Opportunities for Students: Students can engage in various activities, including studying abroad for 2 to 12 months, doing internships, or participating in Erasmus Mundus Joint Masters for 1 to 2 academic years.
- The programme is managed by the European Commission, the Education, Audiovisual, and Culture Executive Agency (EACEA), and various National Agencies and Offices in program countries.
In summary, the Erasmus+ Programme plays a crucial role in enhancing educational opportunities, fostering international cooperation, and supporting personal and professional growth for students in Europe and beyond.
BRICS Summit 2025 - Advancing Global South Cooperation for Inclusive and Sustainable Governance
Why in News?
The 17th BRICS Summit was held in Rio de Janeiro, Brazil, focusing on the theme “Strengthening Global South Cooperation for a More Inclusive and Sustainable Governance.” This summit concluded with the ‘Rio de Janeiro Declaration’, marking a significant shift towards inclusivity and enhanced South-South cooperation.
Key Takeaways
- Reaffirmation of BRICS principles of mutual respect, sovereign equality, democracy, and inclusiveness.
- Expansion of BRICS membership with Indonesia joining as a full member and the addition of 11 new partner countries.
- Launch of key initiatives on climate finance, artificial intelligence governance, and health equity.
Additional Details
- BRICS Membership Expansion: Indonesia was formally welcomed as a full member, along with Belarus, Bolivia, Kazakhstan, Cuba, Nigeria, Malaysia, Thailand, Vietnam, Uganda, and Uzbekistan as new partners, reflecting a growing multipolar world order.
- Commitment to Reform: The summit underscored the need for equitable and effective multilateralism, supporting global initiatives such as the UN Summit of the Future's “Pact for the Future.”
- Economic Cooperation: The Strategy for BRICS Economic Partnership 2025 was reviewed, with an upcoming 2030 strategy focusing on digital economy and sustainable development.
- Climate Change Initiatives: Strong support for the Paris Agreement and a commitment to climate adaptation and mitigation efforts were emphasized.
The BRICS Summit 2025 represents a pivotal moment in promoting Global South-led multilateralism, reinforcing BRICS as a credible alternative to Western-dominated institutions. India's proactive leadership and its upcoming presidency in 2026 highlight its growing influence in shaping a South-led multilateral order.
The New Battle Challenge of China-Pakistan Collusion
Why in News?
Operation Sindoor, conducted from May 7 to 10, has highlighted a significant shift in regional geopolitics, marked by an unprecedented collaboration between China and Pakistan on the battlefield. This change has been confirmed by Lieutenant-General Rahul R. Singh, Deputy Chief of Army Staff, and draws attention to the evolving nature of the China-Pakistan strategic relationship from a traditional partnership to active operational cooperation.
Key Takeaways
- The nature of China-Pakistan collusion has evolved from tacit support to active tactical partnership.
- China's operational support during conflicts represents a strategic shift in its involvement with Pakistan.
- India faces a new strategic normal, with implications for its military and diplomatic strategies.
Additional Details
- Strategic Shift: Historically, China's involvement in India-Pakistan conflicts was limited to diplomatic support. However, Operation Sindoor showcased a more direct engagement, providing real-time ISR (Intelligence, Surveillance, and Reconnaissance) capabilities and tactical interoperability.
- Digital Collusion: Chinese state media and digital influencers played a role in amplifying Pakistani propaganda, shaping global perceptions of India as the aggressor and delegitimizing India's military actions.
- New Strategic Normal: The dynamics of deterrence between India and its adversaries have shifted, complicating India's strategic calculations and necessitating a reassessment of its military response options.
- China's Arms Industry: The conflict has validated Chinese military platforms in actual combat, enhancing their global arms market leverage and solidifying Pakistan's military capabilities.
- Two Live Borders: India now faces threats on both its western and northern fronts, requiring simultaneous military readiness due to ongoing tensions in both regions.
The events surrounding Operation Sindoor and the resultant China-Pakistan collusion represent a critical juncture for India. No longer can such collusion be regarded as a theoretical concern; it is an operational reality. As India navigates this increasingly complex environment, its responses will play a crucial role in maintaining regional stability and countering the integrated strategic threat posed by its adversaries.
India Opposes Amendments to Plant Treaty over Sovereignty Concerns
Why in News?
The Union government and farmers' groups in India have expressed significant concerns regarding proposed amendments to the International Plant Treaty. They warn that these changes may dilute farmers' rights and undermine India's sovereignty over its plant genetic resources.
Key Takeaways
- India has raised objections to amendments to the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA).
- The proposed amendments could compromise farmers' rights and seed sovereignty in India.
Additional Details
- About the Plant Treaty:The International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) is a legally binding agreement established in 2001 under the FAO. Its objectives include:
- Conservation of plant genetic resources.
- Promotion of sustainable use of these resources.
- Ensuring fair and equitable sharing of benefits arising from their use, especially in research and development.
- Recent Negotiations: The 10th session of the Governing Body of the Plant Treaty is taking place in Peru from July 7 to 11, 2025. An Ad Hoc Open-Ended Working Group is examining amendments to expand the Multilateral System (MLS) to include all Plant Genetic Resources for Food and Agriculture (PGRFA).
- Core of the Concern:Farmers' organizations, including the Bharath Beej Swaraj Manch and Rashtriya Kisan Mahasangh, argue that:
- The proposed expansion would subject all plant genetic material to international access frameworks.
- This contradicts the treaty's original mandate, which limited access to a specific list of crops critical for food security.
- India's sovereign rights over seeds and plant varieties would be at risk.
- Farmers' rights to save, use, exchange, and sell seeds may be weakened under a globally standardized material transfer system.
- Institutional Response: The Indian Council of Agricultural Research (ICAR) has assured that national interests will be protected. Sunil Archak, Principal Scientist at ICAR, is representing India in the negotiations.
- States' Role: Kerala has highlighted that agriculture is a State subject under Schedule VII of the Indian Constitution. The state criticized the lack of consultation with State Governments and farmers, warning that amendments could undermine the role of State Biodiversity Boards.
- Broader Implications:The proposal to include all PGRFA in the MLS could:
- Impact India's ability to regulate access to indigenous germplasm.
- Reduce incentives for local innovation in seed conservation and development.
- Allow foreign entities to access India’s genetic resources without adequate benefit-sharing.
- Limit India's capacity to customize access rules based on the germplasm's type or origin.
In conclusion, India's opposition to the proposed amendments reflects deep concerns regarding sovereignty, farmers' rights, and the potential long-term effects on its agricultural policy and practices.
India's Five-Nation Tour: Strengthening Ties with the Global South
Why in News?
Prime Minister Narendra Modi's recent diplomatic tour encompassing Ghana, Trinidad and Tobago, Argentina, Brazil, and Namibia marks a pivotal shift in India's foreign policy, reflecting an intention to deepen engagement with the Global South.
Key Takeaways
- India and Ghana have upgraded their diplomatic relations to a Comprehensive Partnership, aiming to establish Ghana as a vaccine hub for West Africa.
- An MoU has been signed focusing on pharmaceutical cooperation to enhance access to quality generic medicines.
- India is expanding collaboration with Argentina on critical minerals and exploring its extensive shale gas and oil reserves.
Additional Details
- Renewed Focus on Global South: India seeks to create a more balanced global system by strengthening ties with developing countries, as exemplified by its engagements with Trinidad and Tobago.
- Shared Historical Bonds: Many Global South nations, including India, share a legacy of colonialism and have supported movements such as the Non-Aligned Movement. India has co-founded groupings like IBSA and BRICS to advocate for Global South interests.
- India-led Global Initiatives:
- India's pharmaceutical diplomacy during COVID-19, under the Vaccine Maitri initiative, has supplied vaccines to over 70 countries.
- The International Solar Alliance (ISA) promotes clean energy projects in developing nations.
- India shares its expertise in digital governance through initiatives like Aadhaar and UPI, empowering other countries with digital infrastructure.
- Diaspora's Role: The Indian diaspora acts as cultural and political bridges, enhancing soft power and fostering economic collaboration, as seen in their influence on U.S.-India relations.
In conclusion, India's renewed focus on the Global South through strategic partnerships and initiatives showcases its commitment to a more inclusive global order, leveraging its diaspora and collaborative efforts to address common challenges.
3 by 35 Initiative
Why in News?
The World Health Organization (WHO) has recently introduced the “3 by 35” initiative, aiming to tackle the consumption of tobacco, alcohol, and sugary drinks through increased taxation.
Key Takeaways
- The initiative calls for a minimum 50% increase in real prices of tobacco, alcohol, and sugary drinks by the year 2035.
- It aims to raise approximately US $1 trillion over the next decade through health taxes.
- The initiative focuses on reducing harmful consumption, saving lives, and generating essential public revenue.
Additional Details
- Mobilizing Countries: WHO and its partners will engage with heads of state, finance, and health ministries, as well as civil society, to create political momentum. Participating countries will benefit from peer learning and strategic support.
- Supporting Country-led Policies: Countries seeking assistance will receive tailored support to develop evidence-based health tax policies. Additionally, a shared knowledge platform will provide guidance, tools, and best practices.
- Building Commitment and Partnerships: The initiative promotes inclusive dialogue to shift public and political perceptions, foster cross-sector alliances, and enhance the role of civil society in advocating for sustainable health financing.
This initiative represents a significant step forward in public health policy, emphasizing the importance of tax measures as a means to improve health outcomes and generate revenue for essential services.
Conflict in the Middle East: Why India Must Monitor Its Fertiliser Supply
Why in News?
The ongoing Iran-Israel conflict is capturing global attention, primarily due to its implications for oil prices. However, a less visible yet equally critical issue is emerging that poses a significant risk to farming and food security in India.
Key Takeaways
- India's reliance on fertiliser imports is at risk due to geopolitical tensions.
- Disruptions in key shipping routes, such as the Strait of Hormuz, could impact fertiliser availability.
- Geopolitical conflicts can lead to rising global prices of natural gas and fertilisers.
- India's dependence on specific conflict zones for key fertilisers raises vulnerability.
Additional Details
- Disruption of Import Routes: India depends significantly on fertiliser imports from Gulf countries like Qatar, Saudi Arabia, and Oman. These shipments often pass through the Strait of Hormuz, which is susceptible to blockades, particularly during conflicts. For instance, a naval blockade could delay shipments of urea and DAP, which are essential during sowing seasons.
- Volatile Global Prices: Geopolitical tensions can cause fluctuations in the prices of natural gas (essential for urea production) and finished fertilisers. A surge in natural gas prices can increase domestic urea production costs, consequently straining India's fertiliser subsidy budget.
- Dependence on Conflict Zones: India imports 100% of its MOP (Muriate of Potash) from regions including Belarus and Israel. Escalation of conflicts in these areas could disrupt MOP imports, which are crucial for crops like sugarcane and cotton.
Lessons from the Russia-Ukraine Crisis
- Lack of Strategic Buffer Stocks: Despite previous supply disruptions in 2022, India still lacks a fertiliser buffer stock policy and minimum stocking norms for critical imports like DAP and MOP. During peak sowing seasons, a stock of 30-45 days is insufficient to mitigate external shocks.
- Failure to Diversify Import Sources Meaningfully: Although there have been discussions on diversification, India still relies heavily on Gulf countries and politically unstable regions. After disruptions in nitrogen and potash from Russia and Belarus, dependence on Israel and Jordan for DAP remains high, posing risks of repetition.
- Reactive Policymaking: The focus has been more on short-term procurement rather than building long-term resilience through joint ventures, domestic innovation, or alternative fertilisers. There has been no significant scaling of nano, bio, or organic fertilisers since 2022, leaving India burdened with high subsidy bills for synthetic inputs.
The Importance of Fertilisers in National Security
- Critical for Food Security: Fertilisers play a vital role in maintaining agricultural output in an input-intensive farming system. Disruptions in fertiliser supply can directly impact crop yields and food availability.
- Vulnerability to Geopolitical Shocks: Heavy reliance on imports exposes India to external risks that can disrupt agricultural stability.
- Impact on Economic and Rural Stability: Shortages and price hikes can lead to increased subsidy burdens, causing distress in rural areas.
Steps Taken by the Indian Government
- Boosting Domestic Production: The government is working on reviving closed urea plants (e.g., Gorakhpur, Sindri, Talcher) to achieve 90% self-sufficiency in urea by 2025, thereby reducing import dependency for nitrogen-based fertilisers.
- Diversifying Import Sources: Long-term agreements are being formed with countries like Morocco (for phosphates) and Canada (for potash) to ensure stable supplies, while exploring partnerships beyond traditional sources to mitigate geopolitical risks.
- Subsidy and Distribution Reforms: Implementing the Direct Benefit Transfer (DBT) system for fertiliser subsidies aims to enhance transparency and promote the use of Nano Urea while encouraging balanced nutrient usage.
Building Resilience in Fertiliser Supply Chains
- Develop Strategic Fertiliser Reserves: Establish buffer stocks of key fertilisers like urea, DAP, and MOP, especially during critical sowing seasons (e.g., Kharif and Rabi) to cushion against global disruptions.
- Expand and Diversify Import Partnerships: Forge partnerships with stable countries (e.g., Morocco, Canada, Jordan) and explore alternative shipping routes to reduce overdependence on the Middle East and de-risk supply chains.
In conclusion, addressing fertiliser supply issues is critical for India's agricultural sustainability and resilience against geopolitical tensions. A proactive approach will not only secure food production but also enhance national security.
Quad Unites to Secure Critical Minerals: A Challenge to China’s Dominance
Why in News?
The nations of India, Australia, Japan, and the US have launched a collaborative initiative aimed at securing critical mineral supply chains. This move comes in response to rising concerns over China's dominance in the sector and the potential for disruptions that could affect global supply chains.
Key Takeaways
- The Quad foreign ministers convened in Washington, DC, reaffirming their commitment to maritime security, economic prosperity, technology, and humanitarian assistance.
- The Quad Critical Minerals Initiative was launched to secure essential mineral supply chains and reduce dependency on China.
- Japan and the US are facing challenges in their electric vehicle industries due to Chinese export restrictions on critical components.
Additional Details
- Quad Critical Minerals Initiative: This initiative is designed to enhance cooperation among the Quad nations to build resilient supply chains for critical minerals. It focuses on diversifying sources and recovering minerals from e-waste.
- China’s Dominance: China holds a significant position in the production and processing of rare earth elements (REEs), necessary for advanced technologies, including semiconductors and electric vehicles (EVs).
- China has imposed bureaucratic barriers and export restrictions on critical minerals, exacerbating supply concerns for countries reliant on these materials.
- India's electric vehicle sector is particularly affected, facing production delays due to China’s control over the supply of rare earth magnets essential for EV motors.
The Quad Critical Minerals Initiative represents a strategic response to the geopolitical challenges posed by China's dominance in critical minerals. By collaborating on supply chains and technology, the Quad nations aim to ensure a more secure and diversified supply of essential resources for modern technologies.
PM Modi’s Five-Nation Visit: India’s Outreach to the Global South
Why in News?
Prime Minister Modi commenced a significant five-nation tour from July 2 to July 9, 2025, visiting Ghana, Trinidad & Tobago, Argentina, Brazil, and Namibia. This tour aims to enhance India's diplomatic and economic engagement with nations in the Global South.
Key Takeaways
- First bilateral trip by an Indian PM to Ghana in 30 years.
- Strengthening ties with Trinidad & Tobago, marking a historical visit after two decades.
- Focus on economic partnerships, particularly in mineral resources with Argentina and Brazil.
- Introduction of digital initiatives and environmental discussions in Namibia.
Additional Details
- Ghana Visit: PM Modi’s visit is notable as it is his first to Ghana, where India is the largest market for Ghanaian exports, primarily gold. A proposal for a vaccine manufacturing hub was discussed, highlighting India's goodwill during the COVID-19 pandemic.
- Trinidad & Tobago Visit: This marks PM Modi’s first visit to T&T and the first bilateral visit by an Indian PM in over two decades. The Indian diaspora, comprising 40-45% of T&T's population, plays a crucial role in bilateral relations, celebrated by the 180th anniversary of Indian immigration.
- Argentina Visit: This trip is the first bilateral visit by an Indian PM to Argentina in 57 years, focusing on economic ties, especially in lithium and agriculture. Concerns about political instability under President Javier Milei were raised, which could affect long-term relations.
- Brazil Visit: Following the BRICS Leaders’ Summit, PM Modi's visit to Brazil aims to fortify the India-Brazil Strategic Partnership, with Brazil being India’s largest trading partner in South America amidst challenges from China.
- Namibia Visit: This is PM Modi’s first visit to Namibia, where bilateral trade has grown significantly. The visit also recalls India’s conservation efforts, notably the translocation of cheetahs to India.
Through this extensive tour, PM Modi seeks to establish new partnerships in critical areas such as minerals, digital initiatives, climate action, and vaccine production. However, the challenge lies in translating aspirational leadership into tangible outcomes, as India competes with global powers in these endeavors.
Rephasing Global Development Finance
Why in News?
India's role in global development finance has evolved significantly over the past decade. The country has not only increased its financial contributions but has also diversified its methods of development cooperation. However, the current global financial landscape, marked by a rising debt crisis in the Global South and decreasing traditional aid flows, requires a strategic adjustment in India’s approach.
Key Takeaways
- India's development outflows increased from $3 billion to $7 billion between 2010-11 and 2023-24.
- Lines of Credit (LoCs) have been central to India's development assistance but face challenges in the current fiscal environment.
- India proposed a Global Development Compact (GDC) to create a balanced framework for development cooperation.
Additional Details
- Lines of Credit (LoCs): These have enabled India to support infrastructure projects in partner countries at concessional rates. India finances these projects through borrowing in international markets and lending at softer terms, covering the difference with state subsidies.
- Shifting Financial Landscape: The Finance Ministry is concerned about the viability of LoCs amid increasing global debt and declining Official Development Assistance (ODA), projected to drop from $214 billion in 2023 to $97 billion by 2025.
- Triangular Cooperation (TrC): This framework includes collaboration between a traditional donor from the Global North, a pivotal partner from the Global South (like India), and a recipient developing country. It aims to create context-specific and cost-effective development solutions, with preliminary estimates valuing TrC projects between $670 million and $1.1 billion.
As global financial conditions evolve, India's strategic pivot towards Triangular Cooperation and the proposed Global Development Compact represents a forward-thinking approach. By leveraging its diplomatic resources and technical expertise, India aims to foster a resilient and equitable development architecture that balances ambition with realism and partnership with pragmatism.
A Triangular Dynamic in South Asia’s Power Politics
Why in News?
The geopolitical landscape of South Asia is significantly influenced by the triangular relationship between the United States, India, and Pakistan. This complex narrative is shaped by strategic necessities, ideological contests, national interests, and historical legacies. Recent developments, particularly during Donald Trump's return to power, have brought new perspectives to longstanding alliances and emerging fractures.
Key Takeaways
- The U.S. has shifted its foreign policy approach, focusing on short-term strategic gains.
- India's initial support for Trump has waned due to U.S. overtures toward Pakistan.
- Pakistan is recalibrating its strategy amidst political turmoil, emphasizing military strength and diplomatic maneuvering.
- The U.S. faces challenges in balancing short-term imperatives with long-term partnerships.
Additional Details
- U.S. Pivot: Trump's administration demonstrates a departure from traditional diplomacy, favoring transactional relationships, particularly with Pakistan.
- Revival of U.S.-Pakistan Relations: The authorization of financial support for Pakistan's military signals a shift in U.S. foreign policy that threatens Indo-U.S. ties.
- India’s Doctrinal Shift: In response to U.S. overtures to Pakistan, India has adopted a more assertive military doctrine, exemplified by Operation Sindoor.
- Pakistan’s Strategic Moves: Pakistan is leveraging its geographic position to enhance its relevance in U.S. strategic interests, despite its economic limitations.
- America’s Balancing Act: The U.S. is caught between maintaining its partnership with India and engaging with Pakistan, complicating its foreign policy in the region.
The triangular dynamic among the United States, India, and Pakistan is characterized by shifting allegiances and strategic opportunism. The U.S. must navigate its short-term goals while maintaining long-term values, and India must adjust to a new regional order without compromising its sovereignty.
‘At Sea Observer’ Mission by QUAD
Why in News?
The Coast Guards of India, Japan, the United States, and Australia have launched the inaugural ‘QUAD At Sea Ship Observer Mission’ aimed at enhancing maritime collaboration and security in the Indo-Pacific region.
Key Takeaways
- The ‘At Sea Ship Observer Mission’ is a historic cross-embarkation initiative.
- It was developed as part of the Wilmington Declaration (2024) to improve interoperability and maritime domain awareness.
- Participation includes officers from all QUAD nations, highlighting gender inclusion.
- The mission facilitates joint training operations including standard operating procedure (SOP) drills, search and rescue (SAR), and patrolling.
- India's involvement aligns with initiatives like SAGAR and the Indo-Pacific Oceans Initiative (IPOI).
- This mission operationalizes commitments made at the 6th QUAD Leaders’ Summit.
- Future plans include establishing a ‘QUAD Coast Guard Handshake’ to foster trust and resilience.
- Aims to enhance emergency response coordination among QUAD Coast Guards.
Additional Details
- QUAD (Quadrilateral Security Dialogue): A strategic dialogue involving India, Australia, Japan, and the United States focused on maintaining peace and stability in the Indo-Pacific.
- Nature of Alliance: Though not a formal alliance, QUAD emphasizes a strong consensus on maintaining open sea lanes, secure supply chains, and technological partnerships.
- Objectives: Promotes a Free and Rules-Based Order to counter coercive actions in the region.
- Formation History: Initiated post-2004 tsunami, formally proposed by Japan’s PM Shinzo Abe in 2007, went dormant after Australia’s 2008 withdrawal, and was revived in 2017 due to concerns over China's assertiveness.
- Expanded Focus Areas: QUAD has broadened its scope to include health, infrastructure, cybersecurity, emerging technologies, and climate change.
- Joint Activities: The group conducts military drills, high-level dialogues, and supports regional capacity-building efforts.
- QUAD-Plus Engagements: Involves collaborations with countries like South Korea, Vietnam, and New Zealand, indicating potential future expansion.
The ‘At Sea Ship Observer Mission’ signifies a significant step towards collaborative maritime security among QUAD nations, contributing to regional stability and operational efficiency.
At Sea Observer Mission
Why in News?
The QUAD nations have recently initiated their first-ever At Sea Observer Mission to enhance maritime collaboration among member countries.
Key Takeaways
- The mission involves the Coast Guards of India, Japan, the United States, and Australia.
- Its primary goal is to strengthen maritime security and interoperability in the Indo-Pacific region, in accordance with the Wilmington Declaration.
- Two officers, including women officers from each participating country, are onboard the US Coast Guard Cutter (USCGC) Stratton, which is en route to Guam.
Additional Details
- Significance of the Mission: This cross-embarkation mission marks a historic step in QUAD Coast Guard collaboration, enhancing joint readiness, operational coordination, and domain awareness to support a Free, Open, Inclusive, and Rules-Based Indo-Pacific.
- The mission aligns with the vision established at the QUAD Leaders’ Summit in September 2024, deepening operational ties among the Indian Coast Guard (ICG), Japan Coast Guard (JCG), US Coast Guard (USCG), and Australian Border Force (ABF).
- India's involvement reinforces its strategic maritime vision of SAGAR (Security and Growth for All in the Region) and complements national efforts under the Indo-Pacific Oceans Initiative (IPOI), focusing on capacity-building, humanitarian outreach, and maritime rule of law.
- The QUAD at Sea initiative lays the groundwork for a QUAD Coast Guard Handshake, promoting enhanced trust, coordination, and collective resilience against evolving maritime challenges in the region.
This mission not only signifies a step towards greater cooperation among the QUAD nations but also highlights the importance of maritime security in the Indo-Pacific region amidst various challenges.