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UPSC Key: India-Maldives, Renewable energy, and CBAM
Important topics and their relevance in UPSC CSE exam for July 26, 2025. If you missed the July 25, 2025, UPSC CSE exam key from the Indian Express, read it here. Line of credit, trade talks, direct flights: Modi, Muizzu mark turnaround in ties Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-II: Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests What's the ongoing story: India is proud to be the most trusted friend of the Maldives, Prime Minister Narendra Modi said Friday after announcing a Rs 4,850-crore line of credit to the island nation. Key Points to Ponder: • Know the historical background of the India-Maldives relationship? • What are the challenges seen between the nations in recent years? • What is India's 'Neighbourhood First' policy? • How significant is the Maldives for India? • What are the areas of cooperation between India and the Maldives? • What are the major agreements signed during this visit? • What is the 'India-out' campaign? How did it affect the India-Maldives relationship? • What are SAGAR and MAHASAGAR? • Map work: Location of Maldives and surrounding islands Key Takeaways: • 'Peace, stability, and prosperity in the Indian Ocean region are our shared goals. Together, through the Colombo Security Conclave, we will strengthen regional maritime security,' Modi said in his remarks after the two leaders held wide-ranging talks focusing on consolidating cooperation in areas of trade, defence and infrastructure. • Besides FTA negotiations, Modi also announced that the two countries will work towards finalising a bilateral investment treaty. Later, addressing a media briefing, Foreign Secretary Vikram Misri said that both sides expect this FTA to be completed 'fairly quickly'. • The Maldives holds an important place in India's 'Neighbourhood First' policy, Modi said, underlining that mutual cooperation in defence and security is a testament to the mutual trust. 'India will always support the Maldives to strengthen its defence capabilities,' he said. • In his remarks, President Muizzu — who had visited India in October last year, signifying a thaw in bilateral ties — said: 'I am also pleased to announce the initiation of negotiations for a free trade agreement between India and the Maldives. This landmark initiative marks a significant step forward in strengthening our economic partnership.' • He flagged India's place as a 'key source market' for tourism in Maldives, adding that the two countries have discussed starting direct flights towards this objective. • Both countries exchanged four MoUs and three agreements in the presence of Modi and Muizzu. India handed over 3,300 social housing units in Hulhumale under India's Buyers' Credit facilities. Modi inaugurated a roads and drainage system project in Addu, and six high-impact community development projects. • India will also provide 72 heavy vehicles to the Maldivian Ministry of Defence. Besides, there was an MoU on cooperation in fisheries and aquaculture, and one on sharing successful digital solutions implemented at population scale, as per officials in the Ministry of External Affairs. • On Saturday, Modi will participate in the 60th Independence Day celebrations of the Maldives, as the Guest of Honour. On Friday, the two leaders also released a commemorative stamp to mark the 60th anniversary of the establishment of formal diplomatic relations. Do You Know: • Maldives' proximity to the west coast of India (barely 70 nautical miles from Minicoy and 300 nautical miles from India's West coast), and its location at the hub of commercial sea-lanes running through the Indian Ocean (particularly the 8° N and 1 ½° N channels) imbues it with significant strategic importance to India. • Maldives is one of the key elements in India's maritime security calculus. The security scenario in India's periphery in the Indian Ocean is very much linked to the maritime strength of Maldives. This is the reason why India invests on Maldives' security by training its defence forces. • India's Neighbourhood First Policy: According to Ministry of External Affairs, India's 'Neighbourhood First policy' guides its approach towards the management of relations with countries in its immediate neighbourhood. the concept of the Neighbourhood First Policy came into being in 2008. It was conceived to bolster relations with certain priority countries such as Afghanistan, Bangladesh, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka. • SAGAR: The 'Security and Growth for All in the Region' (SAGAR) concept was first articulated by the Prime Minister in Mauritius in 2015. Under this concept, India envisages a free, open, inclusive, 4 peaceful, and prosperous Indo-Pacific region, one which is built on a rules-based international order, sustainable and transparent infrastructure investment, freedom of navigation and overflight, unimpeded lawful commerce, mutual respect for sovereignty, peaceful resolution of disputes, as well as equality of all nations. • MAHASAGAR: This year, during Prime Minister Narendra Modi's visit to Mauritius announced the upgradation of the comprehensive strategic partnership and enhanced SAGAR to MAHASAGAR, i.e. Mutual and Holistic Advancement for Security and Growth Across Regions. Other Important Articles Covering the same topic: 📍Maldives, India, China: history shapes the present 📍Key takeaways from the India-Maldives vision document: health, education, start-ups, political exchanges Previous year UPSC Mains Question Covering similar theme: Discuss the geopolitical and geostrategic importance of Maldives for India with a focus on global trade and energy flows. Further also discuss how this relationship affects India's maritime security and regional stability amidst international competition? (UPSC CSE 2024) Syllabus: Preliminary Examination: Economic and Social Development – Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc. Mains Examination: General Studies-III: Indian Economy and issues relating to planning, mobilisation, of resources, growth, development and employment What's the ongoing story: India's share in US smartphone imports surged to nearly 36 per cent in the first five months of 2025, from about 11 per cent in 2024. China, which continues to dominate the product category, saw its share drop from 82 per cent to 49 per cent over the same period. Key Points to Ponder: • What is the Production Linked Incentive (PLI)? • How are PLIs transforming India's manufacturing sector? • What are the challenges of PLI? • What are the other government initiatives to promote Make in India? • How has it led to the increase in smartphone production in India? • Why is India focused on an increase in India-manufactured goods in the electronics supply chain? Key Takeaways: • India's growing share — now 1 in 3, driven largely by Apple iPhones — comes amid ongoing trade talks with the US. While smartphones are India's top export to the US by value, President Donald Trump has threatened a 25 per cent tariff on Indian-made iPhones. • Apple doubled down on production in India in 2020, after the government announced its flagship Production Linked Incentive (PLI) scheme to support smartphone manufacturing in the country. Through its contract manufacturers, the company has been the biggest beneficiary of the scheme, which has helped it move some production away from China. • Apple's pivot to India from China for US-bound exports has drawn criticism from Trump, who, in May, said he's told Apple's chief executive that he does not want the company to expand its manufacturing operations in India. • However, Apple is unlikely to overhaul its India expansion plans in the near-term. In May, its contract manufacturer Foxconn informed the London Stock Exchange of a $1.49 billion investment in one of its India units, Yuzhan Technologies (India) Pvt Ltd. The new plant is expected to come up in Tamil Nadu, where Foxconn already has a major iPhone production base. Do You Know: • Since its launch in April 2020, the PLI scheme covers 14 sectors as of now. It has helped India achieve scale in manufacturing by attracting OEMs (original equipment manufacturers) as well as contract manufacturers in designated sectors. It has also contributed to limited value addition is segments such as surface mounting and PCB (printed circuit board) assembly, product testing, and packaging. • Under its flagship production-linked incentive (PLI) scheme for smartphone manufacturing, the government has disbursed close to $1 billion in the three years from 2022-23 to 2024-25, with Foxconn, Tata Electronics and Pegatron, the three contract manufacturers of Apple receiving cumulatively over 75 per cent of the amount. • The PLI for large scale electronics manufacturing, which was first announced in 2020 with an outlay of Rs 38,601 crore, offers incentives ranging from 4 to 6 per cent on net incremental sales of eligible products over the sales in the base year to the selected applicants. • Make in India: Launched in 2014, the 'Make in India' initiative aims to facilitate investment, foster innovation, enhance skill development, protect intellectual property & build best in class manufacturing infrastructure. Other Important Articles Covering the same topic: 📍PLI review 5 years on | On Govt table: PLI 2.0, what next to push manufacturing 📍The PLI push: $1 billion over 3 years to 19 firms, fuels record surge in handset exports UPSC Prelims Question Covering similar theme: (1) Consider the following statements: (UPSC CSE 2023) Statement-I: India accounts for 3.2% of global export of goods. Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct UPSC Mains Question Covering similar theme: 'Success of 'Make in India' program depends on the success of the 'Skill India' programme and radical labour reforms.' Discuss with logical arguments. (UPSC CSE 2015) Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-I: Salient features of Indian Society, Diversity of India. What's the ongoing story: Outlining the rise in suicides and mental health issues among students in educational institutions, the Supreme Court on Friday issued pan-India guidelines to combat the problem. Key Points to Ponder: • What is the Manodarpan initiative? • What are the Ummeed draft guidelines? • What are the initiatives taken by the government for the mental well-being of students? • What is the significance of these guidelines issued by the SC? • How is addiction emerging as a challenging issue among youth? • There remained a 'legislative and regulatory vacuum' in the country for suicide prevention of students in educational institutions and coaching centres. Substantiate. Key Takeaways: • A bench of Justices Vikram Nath and Sandeep Mehta said there remained a 'legislative and regulatory vacuum' in the country with respect to a unified, enforceable framework for suicide prevention of students in educational institutions, coaching centres, and student-centric environments. • While issuing 15 guidelines, the bench said the measures should remain in force and binding, until such time as appropriate legislation or regulatory frameworks were enacted by the competent authority. • All educational institutions were directed to adopt and implement a uniform mental health policy, drawing cues from the 'Ummeed' draft guidelines, the 'Manodarpan' initiative, and the National Suicide Prevention Strategy. • The top court highlighted Centre's preventive steps to mitigate the situation, with 'Ummeed' (understand, motivate, manage, empathise, empower, and develop) draft guidelines — meant to prevent school student suicides — released by the Ministry of Education in 2023. • The verdict came on an appeal against an order of the Andhra Pradesh HC, rejecting the plea to transfer the probe over the unnatural death of a 17-year-old National Eligibility-cum-Entrance Test aspirant, preparing in Vishakhapatnam, to the CBI. • The bench said all educational institutions with 100 or more enrolled students should either appoint or engage at least one qualified counsellor, psychologist, or social worker with demonstrable training in child and adolescent mental health. • 'Institutions with fewer students shall establish formal referral linkages with external mental health professionals,' the verdict said. • The bench continued, 'All residential-based institutions shall install tamper-proof ceiling fans or equivalent safety devices, and shall restrict access to rooftops, balconies, and other high-risk areas, in order to deter impulsive acts of self-harm.' • All educational institutions, particularly coaching institutes or centres, were asked to refrain from segregating students' batches on the basis of academic performance, public shaming, or assignment of academic targets disproportionate to their capacities. • The bench stressed on the need for zero tolerance when it came to retaliatory actions against complainants or whistle-blowers. In all such cases, immediate referral to trained mental health professionals must be ensured, and the student's safety, physical and psychological, should be prioritised, it said. • 'Failure to take timely or adequate action in such cases… shall be treated as institutional culpability, making the administration liable to regulatory and legal consequences,' the bench added. • The guidelines would apply to all educational institutions, including public and private schools, colleges, universities, training centres, coaching institutes, residential academies and hostels, irrespective of their affiliation. • The top court in a separate case took cognisance of suicides in educational institutions and directed the constitution of a National Task Force on mental health concerns of students and prevention of suicides in higher educational institutions. Do You Know: • Student suicides made up 7.6 per cent of all suicide cases reported across India in 2022, showing a slight dip from 8.0 per cent in 2021 and 8.2 per cent in 2020, according to official data shared in Lok Sabha. • 'The Ministry of Education's flagship programme, Manodarpan, has reached lakhs of students through counselling helplines and live interactive sessions, while the Ministry of Health and Family Welfare's district mental health programme (DMHP) covers 767 districts with suicide prevention services and life skills training in schools and colleges,' he said. Other Important Articles Covering the same topic: 📍Student suicides 7.6% of all suicide cases across India: Minister Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-III: Major crops-cropping patterns in various parts of the country, – different types of irrigation and irrigation systems storage, transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers What's the ongoing story: India's annual retail food inflation rate fell to minus 1.06% in June, the lowest since January 2019. But consumers continue to feel the pinch from high prices on some items. Key Points to Ponder: • What is inflation? • What is food inflation? • What are the factors that led to inflation in the economy? • What are the factors leading to an increase in coconut oil? • What is the status of coconut oil production in India? • What are the initiatives taken by the government to boost oil production in India? • India imports cooking oil from which countries? • Why has PM urged people to cut down on edible oil consumption by 10%? • What is the National Mission on Edible Oils–Oilseeds (NMEO-Oilseeds)? • Understand the soil, temperature, and conditions required for coconut cultivation • Is it covered under the Minimum Support Price? Key Takeaways: • Among them is vegetable oils, where the year-on-year price increase reached 17.75% in June, according to the National Statistics Office. • The all-India average modal (most quoted) retail price of palm oil is currently Rs 132 per kg, compared with Rs 95 a year ago, data from the Department of Consumer Affairs show. The prices of soyabean, sunflower, and mustard oils have risen from Rs 120 to Rs 154, Rs 115 to Rs 159, and Rs 150 to Rs 176 respectively over the same period. • Since the beginning of this year, the wholesale price of coconut oil at Kerala's Kochi market has zoomed from Rs 22,500 per quintal to Rs 39,000 per quintal. At the retail level, the oil is selling for around Rs 460 per kg, close to double its early-January price of Rs 240-250. • This makes coconut oil more expensive now than even sesame (or gingelly) oil, a traditionally premium oil that is retailing for about Rs 425 per kg. • 'Not only are coconut oil prices at all-time highs, I haven't in my 50 years of trading seen these go up so much in such a short time,' Thalath Mahmood, president of the Cochin Oil Merchants' Association (COMA), said. • The El Niño event, which lasted from July 2023 to June 2024, affected the growth of coconut flowers and fruit development during the 2024-25 marketing year that began in October. The impact is being felt now, as it takes roughly a year for a single coconut to go from flowering on the tree to a fully mature fruit that is ready for harvesting. • No immediate supply response to high prices is expected because coconut trees – even the improved dwarf and hybrid palm varieties – start bearing fruit only in 3-5 years. • The price sentiment has been further boosted by reports of the Indonesian government planning restrictions on the export of raw whole coconuts, amid concerns over the shortage of the fruit for local processors. • Meanwhile, the government of the Philippines has introduced a 3% mandatory blending of coconut oil-based CME (coco-methyl ester) in diesel sold in the country from October 2024. • Of the 5.7 lakh tonnes (lt) of coconut oil produced in India, only about 3.9 lt is used for food (cooking and frying). The rest goes into the manufacture of hair oil, cosmetics, soaps, and in other industrial applications. • Like other indigenous cooking oils (mustard, sesame, groundnut, cottonseed), coconut oil has lost market share to the predominantly imported oils – palm, soyabean, and sunflower. • Even in Kerala — the state that derives its name from Kera or the coconut tree — the annual consumption of coconut oil is just 2 lt, estimates COMA's Mahmood. That is half the consumption of palm oil (4 lt) and a little more than sunflower oil (1.5 lt). From being the top producer of coconut, Kerala has now slipped to third place, behind Tamil Nadu and the No.1 producer, Karnataka. Do You Know: • Obesity has emerged as a growing health concern, with alarming statistics indicating a sharp rise in cases over the years. Prime Minister Narendra Modi recently brought this issue into focus, urging people to cut down on edible oil consumption by 10% as a simple yet effective step toward better health. • Last year, the government approved the National Mission on Edible Oils–Oilseeds (NMEO-Oilseeds), with a financial outlay of `10,103 crore. India is dependent on imports to meet 58 per cent of its edible oil requirements. • According to the Coconut Development Board, coconut cultivation requires an equatorial climate with high humidity. The ideal mean annual temperature is 27°C with 5-7°C diurnal variation. All well distributed rainfall of 1300-2300 mm per annum is preferred. • Coconut is grown in different soil types such as laterite, coastal sandy, alluvial and also in reclaimed soils of the marshy lowlands. It tolerates salinity and a wide range of pH from 5.0 to 8.0. Proper drainage, good water holding capacity, optimum soil moisture and absence of rock or any hard substratum within 2 m of the surface are ideal for better growth and performance of the palm. • Established in 1981, Coconut Development Board (CDB) is a statutory body established under the Ministry of Agriculture and Farmers Welfare, Government of India for the integrated development of coconut cultivation and industry in the country with focus on productivity increase and product diversification. Other Important Articles Covering the same topic: 📍As edible oil, pulses import duty slashed, farmers say 'we are getting hit' 📍'To become a fit and healthy nation,' PM Modi urges people to reduce edible oil consumption by 10%; appoints ten icons Previous year UPSC Prelims Question Covering similar theme: (2) Consider the following statements: (UPSC CSE 2020) 1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. 2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-III: Infrastructure: Energy, Ports, Roads, Airports, Railways etc; Conservation, environmental pollution and degradation, environmental impact assessment What's the ongoing story: THE WORLD added about 582 gigawatts (GW) of renewable energy capacity in 2024, representing an increase of 15% over the previous year, according to a new report by the International Renewable Energy Association (IRENA). This was the largest annual increase in renewable energy capacity in any single year. Key Points to Ponder: • What is the difference between renewable and non-renewable energy? • What are the major highlights of the report by IRENA? • How is the monopoly of China in renewable energy production a concern for other countries? • What were the major agreements signed at the COP28? • What is the performance of India in the production of renewable energy? • What is the performance of India in the Energy Transition Index (ETI) 2024? • What are the initiatives taken by the Indian government to promote renewable energy at the domestic and global level? • Know about the International Solar Alliance • Renewable energy has not even begun to replace fossil fuels at the global level. As of now, it is catering mainly to the rising electricity demand. Analyse. Key Takeaways: • Currently, the installed capacity of renewable energy across the globe stands at more than 4,442 GW, and around 30% of the world's electricity is produced from renewable sources. • The new report by IRENA, which was released on July 10, also said that at the current rate of growth, the world would come close to achieving its target of tripling renewable energy installed capacity by 2030. This target is considered crucial for limiting global warming and was part of the agreement made at the COP28 meeting in Dubai in 2023. • The rapid growth of renewable energy might give the impression that the world has made good progress on meeting its climate objectives. However, renewable energy has not even begun to replace fossil fuels at the global level. As of now, it is catering mainly to the rising electricity demand, which has increased three times since 1990 and is projected to grow even higher. • While only around 10% of new electricity installed capacity in 2024 was fossil fuel-based, the use of fossil fuels, in absolute terms, is still growing, according to the IRENA report. • Between 2012 and 2023, global electricity generation grew by 2.5% every year on average, and renewable energy expanded at a rate of about 6% during the same time. This has led to a steady rise in the share of renewables in the electricity generation mix. However, fossil fuels currently account for more than 70% of global electricity production. • In absolute terms, more fossil fuels are being burned today than 10 years ago to produce electricity. To make matters worse, the increase in use of fossil fuels is expected to continue for at least a few more years. As a result, greenhouse gas emissions have reached record highs in recent years. • Moreover, electricity is still only a small slice of total energy use. Just 20% to 22% of the total energy consumed in the world every year is in the form of electricity. Only 30% of electricity generation comes from renewable sources. • This means that about 6% of the world's energy consumption comes from clean sources. More than 90% still comes from fossil sources. Note that there are some countries, mainly in the Nordic region, where renewables account for a significantly higher share of total energy consumption. However, the special conditions existing in these countries are difficult to replicate elsewhere. • The IRENA report said 71% of the renewable capacity addition last year took place in Asia. This is slightly misleading as China alone accounted for more than 62% of global additions that is, 364 GW of the 582 GW installed globally. The whole of Africa together got less than 1%. Do You Know: • According to projections, by 2050, even in the case scenarios, not more than 40% to 45% of the world's total energy consumption would come from clean sources. This means that energy transition, which involves moving away from fossil fuels towards renewable energy, on its own, is unlikely to help tackle the climate crisis. That is why carbon removal interventions, which are yet to become viable, assume great importance in the fight against global warming. • For the last few years, China has been consistently installing more renewable energy than the rest of the world combined. Apart from developed countries, China, and some large players such as India, the renewable energy footprint has not grown at a fast pace. • However, this kind of lopsided deployment of renewable energy, coupled with the fact that China has a near monopoly on the production and supply chains of most renewable systems, could leave many countries and regions behind once again. • Renewable energy, such as solar and wind, might be available universally — unlike, say, petrol that is found in only limited geographies — but the technologies needed to harness this energy are getting increasingly inaccessible. • China dominates the production and manufacturing of solar PV systems, for example, but also consumes more than half of it. Large buyers such as the United States and India corner most of what is exported. There is little supply for others. • The transition to clean and renewable energy systems is not as simple as it is sometimes made out to be. There are several layers of complexity which make the goal of curbing global temperatures below 2 degrees Celsius look increasingly unrealistic to achieve. • At the 2015 climate conference in Paris, India in collaboration with a few other countries including conference host France, set up the International Solar Alliance (ISA) to accelerate the deployment and absorption of solar energy across the world, and mainly in the developing countries. Other Important Articles Covering the same topic: 📍India's 'green' power capacity overtakes thermal — What you must know for UPSC Exam 📍India reaches key climate goal 5 years ahead of target: The full picture, explained Previous year UPSC Prelims Question Covering similar theme: (3) Consider the following statements: (UPSC CSE 2016) 1. The International Solar Alliance was launched at the United Nations Climate Change Conference in 2015. 2. The Alliance includes all the member countries of the United Nations. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Syllabus: Preliminary Examination: General issues on Environmental Ecology, Biodiversity and Climate Change – that do not require subject specialisation Mains Examination: General Studies-II: Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests. General Studies-III: Conservation, environmental pollution and degradation, environmental impact assessment What's the ongoing story: India's efforts to secure a concession for its small and medium enterprises under the UK's Carbon Border Adjustment Mechanism (CBAM) did not materialise, as the text of the India-UK Free Trade Agreement (FTA) released on Thursday made no mention of a resolution on the contentious issue. Key Points to Ponder: • What is the significance of the India-UK Free Trade Agreement (FTA)? • Know the key details of the India-UK FTA • What is CBAM? • What are India's concerns regarding CBAM? • What is the role of the WTO in resolving disputes between nations? • What are the challenges with the Dispute Settlement Body (DSB) of the WTO? • What are the challenges related to the WTO? Key Takeaways: • The UK's CBAM, which is set to come into effect from January 1, 2027, is expected to impact India's exports of steel, aluminium and other carbon-intensive goods. India's steel and aluminium exports are already facing steep tariff restrictions from the US after US President Donald Trump raised the tariffs on the items to 50 per cent. • An absence of a resolution not only weakens India's position—as it missed the opportunity to address the levy within a legal framework—but also casts a shadow over the duty concessions won for 99 per cent of its exports to the UK under the long-negotiated trade deal as UK could raise tariffs on industrial imports once it implements CBAM. • While the Ministry of Commerce and Industry claims that the UK trade deal will allow around 99 per cent of Indian exports to benefit from zero-duty access to the UK market, CBAM significantly could alter that. • The UK government has said that the carbon tax will apply to both 'direct and indirect emissions' embodied in imported CBAM goods, 'including those emissions embodied in relevant precursor goods at a point further up the value chain'. • India's exports to the UK rose by 12.6 per cent to $14.5 billion, while imports grew by 2.3 per cent to $8.6 billion in 2024–25. Bilateral goods trade between India and the UK increased to $21.34 billion in 2023–24 from $20.36 billion in 2022–23. • As no concession was secured under the FTA, India could challenge the regulation at the WTO on the grounds that CBAM violates special and differential treatment (SDT) provisions, which advocate longer implementation periods for developing countries to safeguard their trade interests. • However, trade law experts warn that the CBAM regulations in both the UK and EU may be in effect by the time the WTO rules on the matter, given the dysfunction of the organisation's Dispute Settlement Body (DSB). Do You Know: • According to the World Bank, 'a carbon tax directly sets a price on carbon by defining a tax rate on greenhouse gas emissions or – more commonly – on the carbon content of fossil fuels'. It is a type of carbon pricing, and the other type of carbon pricing is the emissions trading systems (ETS). The CBAM is a form of carbon pricing system. • The CBAM or Carbon Tax was first introduced by the European Union in 2021. It taxes certain products coming in from other countries based on their carbon emissions footprint in their production process. For instance, if the imported steel was produced through a process that entailed higher emissions than the emissions standards for that product in Europe, it would be taxed. • CBAM allows industries in Europe to remain competitive while continuing to maintain high environmental standards. It prevents these industries from relocating their production to countries where the production might be cheap owing to less strict emission norms, a situation described as carbon leakage. In the process, it hopes to contribute to reducing global emissions. • However, it hurts the export competitiveness of developing countries such as China and India. The developing countries point out that CBAM overlooks the 'differentiation' embedded in the global climate architecture that allows them to be treated differently from the developed nations. Other Important Articles Covering the same topic: 📍Knowledge Nugget: What is Carbon Tax and why is it important for UPSC exam? 📍Trade deal stalled over UK carbon tax, India proposes plan for 'rebalancing' Prelims Question Covering similar theme: (4) Consider the following statements: (UPSC CSE 2023) Statement-I: Carbon markets are likely to be one of the most widespread tools in the fight against climate change. Statement-II: Carbon markets transfer resources from the private sector to the State. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X. 🚨 Click Here to read the UPSC Essentials magazine for July 2025. Share your views and suggestions in the comment box or at Khushboo Kumari is a Deputy Copy Editor with The Indian Express. She has done her graduation and post-graduation in History from the University of Delhi. At The Indian Express, she writes for the UPSC section. She holds experience in UPSC-related content development. You can contact her via email: ... Read More
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First Post
19-07-2025
- Business
- First Post
India must act fast on solving fishers' dispute with Sri Lanka
With campaigning for next year's Tamil Nadu Assembly elections already heating up, there is an urgent need for Delhi to delineate the 'Kachchatheevu issue' from the stand-alone fishers' dispute, and keep the former especially out of domestic politico-electoral bickering in India read more The Sri Lankan side has indicated a willingness to allow a limited number of southern Tamil Nadu fishers from India if and only if they give up their bottom trawlers and purse seine nets. Representational image: REUTERS Bilateral relations between India and Sri Lanka, including defence and security ties, are at an all-time high, but the festering fishers' dispute especially has the potential to negate some of these collective gains. This has to be read in the context of ocean security that became India's major post-Cold War concern after an adversarial China, the superpower US, and other extra-regional powers set their strategic sights on this side. The Mumbai-based naval shipbuilder Mazagon Docks' recent takeover of the Colombo Docks should be seen in context. Both are public sector undertakings, and the majority stakes for Mazgon Docks now ensure that India does not lose out to China or any other, as happened with the strategically located Hambantota Port and the financial hub, Colombo Port City (CPC). STORY CONTINUES BELOW THIS AD Earlier, during Prime Minister Narendra Modi's April visit to Sri Lanka, the two sides initialled a defence MoU—one of a total of seven—formalising existing arrangements for joint military exercises and capacity-building. It is seen as a cautious first step to bigger things, so to say. In between, you had a quiet visit to Sri Lanka by a high-level defence delegation from India. The usually nosy Colombo media and their set of strategic analysts were quiet on the subject. Political reservations were also restricted to the vocal yet miniscule Frontline Socialist Party (FSP), which broke away from the ruling Janatha Vimukthi Peramuna (JVP) a decade or so back. In some ways, such initiatives followed confidence-building measures, which in Sri Lanka's case included India's Covid-era assistance, followed by fiscal doles at the height of the nation's unprecedented economic crisis. Further, India infused a sense and purpose into Prime Minister Narendra Modi's 'Neighbourhood First' policy from his first term through his SAGAR and MAHASAGAR socio-economic framework. The two nations are also partners in the 'Colombo Security Conclave' (CSC) along with other near neighbours in the Indian Ocean, focusing initially on non-traditional ocean security like oil leakage. This has since been expanded to include cyber security and terrorism, among others. Despite hiccups caused by domestic political changes in member nations, the future trajectory of the CSC is being keenly watched. Incidentally, socio-political changes in Sri Lanka did not affect the nation's relations with India. STORY CONTINUES BELOW THIS AD Significantly, the centre-left JVP-National People's Party (NPP) combined government of President Anura Kumara Dissanayake has also stuck to the 'right-liberal' President Ranil Wickremesinghe's commitment to check all boxes in their new SOP (Standard Operating Procedure) while clearing entry for foreign research vessels in Sri Lankan waters and ports. This follows India's continual concern over the frequent presence of so-called Chinese research vessels, better known as 'spy ships' in the shared waters. Until now, Colombo has not yielded to the Chinese Embassy's more recent endearments and reprimands that bilateral maritime relations should not be influenced by third nations (read: India, and at times the US, too). Exclusive Waters It is in this background that India and Indians need to visualise the festering and fomenting fishers' dispute. The dispute is an unintended and unanticipated product of a bilateral accord from 50 years back. The twin accords of 1974 and 1976 solely aimed at defining the International Maritime Boundary Line (IMBL) under the up-and-coming UN Convention of the Law of the Sea (UNCLOS). STORY CONTINUES BELOW THIS AD Today, the fishers' dispute and the accompanying 'Kachchatheevu issue' have deflected attention from the unique nature of the twin IMBL accords. By adopting the UNCLOS provision and by deliberating deviation from the median-line prescription for IMBL identification, the two nations made the Palk Strait link their exclusive waters, denying access to third nations. The geopolitical and geostrategic criticality of the 'exclusivity', legitimised by UNCLOS, has not been adequately acknowledged in the two countries. In context, the fishers' dispute flows from the Indian fishers' deployment of high-speed bottom trawlers and big-size purse seine nets, both since declared as 'ecologically destructive' by the West that had introduced them in the first place. From the Sri Lankan side, the Tamil fishers of the North especially are badly affected even as they seek to recover lost life and livelihood after long years of ethnic war. At bilateral and multilateral talks involving the respective governments and/ortheir fishers' representatives over the past several years, the Sri Lankan side has indicated a willingness to allow a limited number of southern Tamil Nadu fishers from India if and only if they give up their bottom trawlers and purse seine nets. By now, it is acknowledged that this fishing equipment also destroys the boats and nets of their 'umbilical cord Tamil brethren' from Sri Lanka, apart from scooping up fishlings and eggs and scraping the natural habitats of fish schools. STORY CONTINUES BELOW THIS AD Twin Components On the ground, the twin dispute has twin components. On the one hand, the Sri Lanka Navy (SLN), mandated to secure the nation's territorial waters, cries foul whenever Indian fishers' cross the IMBL. In recent years, they have also termed Indian fishers' catch as 'poaching' under the law. Over the past two decades or so, there have been multiple occasions when SLN patrols have arrested Indian fishers and their boats and produced them before local courts for trial and punishment. There have also been occasions when the SLN had opened fire or otherwise harassed and bullied the Indian fishers while rounding them up. Lately, the Sri Lankan Tamil fishers too have started reacting mid-sea. There have been skirmishes and clashes between the two groups, often closer to Sri Lanka's northern Tamil coast. A new group of yet-to-be identified 'Sri Lankan pirates' has also emerged in recent months, doing what the SLN was otherwise doing all along, though there have not been any shooting incidents involving them, thus far at the very least. STORY CONTINUES BELOW THIS AD Traditional Rights, Historic Waters India's Ministry of External Affairs (MEA) and the Indian missions in Colombo and northern Jaffna have been interceding on behalf of the Tamil Nadu Government and the state's fishers when arrested, but that is not a permanent solution. Alongside, India's federal government and that in southern Tamil Nadu have launched a joint subsidy scheme for the Rameswaram fishers to procure long-liners for taking to deep-sea fishing and stay away from harm's length. Successive governments in Delhi have argued with their Colombo counterparts to provide more space and time for such conversion. It is being pointed out that the conversion also involves 'cultural readjustment', as the affected Rameswaram fishers are not used to staying out in the sea for more than one night at a time, which deep-sea fishing entails. There is also a need to create a market for tuna and other species caught in the deep sea, where Maldivian and Sri Lankan neighbours have had an upper hand all along. STORY CONTINUES BELOW THIS AD Yet, even in recent talks with Tamil-speaking Sri Lankan Fisheries Minister R Chandrasekar, Indian High Commissioner Santosh Jha reportedly made a pointed reference to the deep-sea fishing efforts initiated by the government in India. The High Commissioner also underscored the need to revive bilateral fishers' talks, facilitated by the two governments. However, the Sri Lankan Tamil fishers are clear that they would not yield until they actually get to see their Indian brethren give up their bottom trawlers and purse seine nets. The cooperation and attestation of the Sri Lankan government to any such plan also remains in the realm of speculation. Before Chandrasekar, his Tamil-speaking predecessor Douglas Devananda was known to have approached the India-unfriendly Chinese Embassy in Colombo more than once to help resolve the issue, where Beijing never ever has had a role. This opened a new angle, which thankfully rests there after last year's change of government in Colombo. STORY CONTINUES BELOW THIS AD Politics, Diplomacy The simmering discontent now centres on two interrelated issues when viewed from Colombo. One, the Modi dispensation in New Delhi, unlike its predecessors, is seen as increasingly pressing the argument of the Tamil Nadu fishers and government that it was a 'livelihood issue' for both sides, and not just the Sri Lankan fishers. In this context, there is said to be a more frequent mention of phrases like 'traditional fishing rights' in 'historic waters' in Indian propositions at bilateral discourses. There are fewer or less frequent references to the 'destructive methods' employed by the Indian fishers. The second is even more serious in terms of bilateral politics and diplomacy. Successive Tamil Nadu Chief Ministers, from the late Jayalalithaa (AIADMK) and M Karunanidhi (DMK), have been calling for an annulment of what is now referred to as the 'Kachchatheevu 'Accord'—though the name of the islet never finds a place in the twin pacts. Instead, they refer only to latitude and longitude positions in the map while delineating the IMBL. In her maiden Independence Day speech as Chief Minister as far back as 1991, Jayalalithaa demanded that New Delhi 'retrieve' Kachchatheevu. Jayalalithaa and her DMK rival M Karunanidhi, both former chief ministers, moved the Supreme Court, claiming that the bilateral accords were bad in law and under the Constitution. The two petitioners challenged first the transfer and secondly the process—through an exchange of letters between the foreign secretaries of the two nations. According to them, the Indira Gandhi-led Congress Government at the Centre had 'ceded' Kachchatheevu, which had belonged to the erstwhile Sivaganga principality of the Ramanathapuram royalty, and hence should have sought Parliament's approval under the Constitution. After their death, DMK treasurer T R Baalu, MP, has sought to replace Karunanidhi in the DMK's petition, if only to keep it alive and take it forward. There is no knowing when the case will reach its finality, but the question remains if an Indian court's verdict against the Accord could negate India's international commitments under the joint UNCLOS notification from the early eighties. For now, human presence on the islet is restricted to a few Sri Lankan Navy personnel's periodic visits and to the annual St Anthony's Church festivities, for which Tamil fishers from the two countries gather for two or three days at best to hear the Mass, delivered by a Catholic priest from Jaffna, Sri Lanka. Long Shadow The fishers' dispute is one issue at the bilateral and multilateral levels where there is a national consensus in Sri Lanka, cutting across ethnic, political, administrative, and sociological divides. Suffice to point out that in 2017, it was a Tamil parliamentarian, M A Sumanthiran (not elected to the present House), who had piloted the draft, which proposed higher penalties for international trespassers and poachers—which boiled down to Tamil fishers from India. Then Prime Minister Ranil Wickremesinghe, otherwise seen as 'India-friendly', was keen that it should be a government bill with all its legal and political connotations both in the country and across the Palk Strait. The House passed the bill unanimously, again reflecting the nation's mood in the matter. In this background, going beyond the existing issues that are limited to the two fishing communities and at times involving the Sri Lanka Navy, Kachchatheevu as a politico-electoral dispute in India is casting its long shadows on bilateral relations, without anyone noticing it or anyone acknowledging it. The then Sri Lankan government of President Wickremesinghe, promptly through Foreign Minister Ali Sabry, cast a lid on any domestic controversy by declaring that it was all a part of India's electoral politics of the time and that New Delhi had not made any suggestion of the kind to Colombo. However, EAM Jaishankar's reference to the previous charge recently has caused eyebrows to raise across the Palk Strait. With the Tamil Nadu assembly elections due next summer, there are concerns in Sri Lankan circles that any overheated exchanges on Kachchatheevu in India could be counterproductive to bilateral relations overall. The fact remains that the Kachchatheevu issue is not a profitable poll proposition for any party or leader in the Tamil Nadu context, as successive elections have shown. The ruling BJP at the Centre has not understood it for them to acknowledge the same by keeping silent on the subject. For their part, Chief Minister Stalin and his AIADMK challenger and predecessor, Edappadi K Palaniswami, are already playing their mutual blame game from the Jayalalithaa past. Mischievously Translocated A section of the Sri Lankan strategic community on the one side and the political opposition on the other is mischievously and meaninglessly evaluating EAM Jaishankar's statement(s) in the light of New Delhi's recent decision to review the Indus Valley Treaty with Pakistan. No one in Colombo or elsewhere in Sri Lanka is suggesting that India would seek a review of the 'Kachchatheevu Accord' here and now, but they are not sure that it won't happen in the future, especially if bilateral ties soar on another front or other fronts. Already, the seven bilateral MoUs signed recently have been challenged before the Sri Lankan Supreme Court. Politically, every opposition party, including their otherwise India-friendly leaderships, has complained that the JVP-NPP government of President Anura Kumara Dissanayake did not take the people and Parliament into confidence on these MoUs. Free Passage There is another angle to the 'Kachchatheevu debate', if opened/reopened. When New Delhi launched work on the 'Sethusamudram Canal Project' to make the narrow sea-lane cutting across Palk Strait navigable on the Indian side, the US lost no time in asserting that it would then claim 'free passage' under UNCLOS. The intended import is not fully appreciated for New Delhi to educate Tamil Nadu through the past years. Incidentally, the canal project is now before the Supreme Court of India, and on-site work was stalled very long ago. For now, any reopening of the 'Kachchatheevu Accord', whatever the reason, circumstance, and time, has the potential to open a Pandora's Box whose contents are not just known. The fish output in the islet zone is not big enough for the Rameswaram fishers to fight for. Thus, it still remains a political dispute at best in India with absolutely no electoral purchase of any kind. With Tamil Nadu assembly elections due next year, the temptation to repeat the political accusations is high. The sparks that fly then, if fuelled and oiled, can lead to unanticipated and undesirable outcomes on the bilateral front. Under the circumstances, the Indian fishers are also not going to get their due, after all. By not referring to the 'Kachchatheevu issue', per se, politically or otherwise within the country, and at the same time encouraging Indian fishers to take to deep-sea fishing in a big way and early on, New Delhi would be able to ensure that bilateral ties with Sri Lanka remained on course. It would then be for the incumbent governments in the two nations and their successors over the coming years and decades to build on the same—even as they resolve the stand-alone fishers' dispute in ways that do not extend and expand the avoidable animosity between their fishing communities. The writer is a Chennai-based Policy Analyst & Political Commentator. Email: sathiyam54@ Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views.
India Gazette
12-07-2025
- Business
- India Gazette
India highlights growing Indo-Pacific role under SAGAR vision in 2024 MEA report
New Delhi [India], July 12 (ANI): The Ministry of External Affairs (MEA) has underlined India's increasing involvement in the Indo-Pacific region, guided by its SAGAR vision, Security And Growth for All in the Region. The government stressed its commitment to a free, open, inclusive, and rules-based Indo-Pacific that respects sovereignty, resolves disputes peacefully, and follows international law. In its Annual Report for 2024, the MEA said, 'India's objective is a multi-faceted engagement with all countries in the region and those with interests in it, encompassing political, security, economic, and socio-cultural spheres, aimed at Security And Growth for All in the Region (SAGAR).' The report noted steady progress in India's ties with regional bodies, especially as the country marked ten years of the Act East Policy, which focuses on India's extended neighbourhood in the Indo-Pacific. ASEAN continues to be central to this approach. India has increased its engagement with key regional platforms such as the Association of South East Asian Nations (ASEAN), East Asia Summit (EAS), Indian Ocean Rim Association (IORA), Asia-Europe Meeting (ASEM), Mekong-Ganga Cooperation (MGC), Indian Ocean Commission (IOC), Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS), and the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT). The MEA said the India-ASEAN relationship was upgraded to a Comprehensive Strategic Partnership in 2022. At the 21st India-ASEAN Summit held in Vientiane, Laos, on October 10, 2024, Prime Minister Narendra Modi and other ASEAN leaders reviewed the partnership and issued joint statements on digital transformation and future cooperation. The report also referred to deep cultural ties and people-to-people links, including events like the India-ASEAN Women Scientists Conclave. It noted that ASEAN is now one of India's important trade and technology partners. The East Asia Summit was described as a key forum for strategic dialogue. PM Modi attended its 19th edition on October 11, 2024, where he backed ASEAN centrality and urged respect for international rules. He also spoke on issues such as terrorism, cyber threats, and the revival of Nalanda University, which is supported by many EAS member countries. India's work in the western Indian Ocean was also covered. India has been an observer in the Indian Ocean Commission since 2020 and is Vice-Chair of IORA for 2023-2025. It has taken up projects on maritime safety, security, and the Blue Economy. According to the World Bank, the Blue Economy promotes sustainable use of ocean resources for economic growth and job creation while preserving marine ecosystems. The Indo-Pacific Oceans' Initiative (IPOI), launched by India in 2019, focuses on seven areas including maritime security and trade connectivity, and has seen participation from countries like the UK, Australia, and Japan. The MEA also highlighted India's role in sub-regional cooperation. It chairs key working groups under the Mekong-Ganga Cooperation (MGC), the oldest sub-regional platform set up in 2000. India has sanctioned 121 Quick Impact Projects (QIPs) under MGC and has launched the MGC Business Council. The country has also supported capacity-building initiatives and projects in technology. India joined the IMT-GT in 2022 as its first Development Partner and hosted its first Early Harvest Project in New Delhi in 2024, focusing on training in computer networking. The 2024 MEA report presents India's SAGAR vision as the guiding force behind its active regional role, aiming to bring stability and inclusive growth across the Indo-Pacific. The report also referred to Prime Minister Modi's March 2025 announcement of the Mutual and Holistic Advancement for Security and Growth Across Regions (MAHASAGAR) doctrine in Mauritius, which expands on SAGAR's goals. Based on India's Neighbourhood First policy and the MAHASAGAR outlook, the country continues to act as a first responder in crises and a net security provider in the region. (ANI)
Hans India
08-07-2025
- Politics
- Hans India
India, UAE strengthen naval ties amid growing strategic convergence in Indian Ocean
New Delhi: In a significant boost to maritime diplomacy, Maj Gen Humaid Mohammed Abdullah Alremeithi, Commander of the United Arab Emirates Naval Forces (UAEN), is on an official visit to India from July 7 to 9, aimed at enhancing bilateral naval cooperation and strategic engagement in the Indian Ocean Region (IOR). The visit, which underscores the growing defence partnership between the two nations, began with Maj Gen Alremeithi paying homage at the National War Memorial in Delhi on July 8, where he laid a wreath in honour of Indian soldiers who made the ultimate sacrifice. A ceremonial Guard of Honour followed at South Block, marking the formal beginning of high-level engagements. The UAE Navy Chief held detailed talks with Admiral Dinesh K Tripathi, Chief of the Naval Staff (CNS), focusing on deepening operational synergy, structured training exchanges, and capacity building. He also met General Anil Chauhan, Chief of Defence Staff, to discuss broader regional security dynamics and joint maritime initiatives. This visit reflects the increasing alignment between India and the UAE on maritime security, counter-piracy operations, and upholding a rules-based order in the Indian Ocean Region. Both nations have stepped up naval cooperation in recent years, including bilateral exercises, port calls, and information-sharing mechanisms. As the UAE seeks to diversify its defence partnerships and India emerges as a net security provider in the IOR, the naval collaboration between the two sides is gaining strategic depth. The Indian Navy's increasing engagement with Gulf nations also complements India's SAGAR (Security and Growth for All in the Region) vision, aimed at ensuring regional stability and maritime goodwill. The visit of Maj Gen Humaid Mohammed Abdullah Alremeithi marks a key milestone in India-UAE Naval relations, aimed at deepening cooperation and promoting shared interests in the Indian Ocean Region. The growing defence ties between India and UAE are set to play a vital role in shaping the security architecture of the Indian Ocean region.
Barnama
07-07-2025
- Business
- Barnama
Malaysia Has A Key Place In India's Vision Mahasagar And Act East Policy
BUSINESS KUALA LUMPUR, July 7 (Bernama) -- Prime Minister Narendra Modi has described Malaysia as vital for India and has a key place in his country's Vision MAHASAGAR and Act East Policy. In a posting on his personal X account @narendramodi, Modi said he met his Malaysian counterpart Datuk Seri Anwar Ibrahim on the sidelines of the 17th BRICS Summit in Brazil. Modi said they reviewed the ground covered in bilateral relations, including the progress made since Anwar's visit to India last year. "Bilateral ties are growing strongly in futuristic sectors like IT, renewable energy and infrastructure. (We also) discussed how to improve investment and trade relations between our nations," he said. Modi announced Vision MAHASAGAR or 'Mutual and Holistic Advancement for Security and Growth Across Regions' for the Global South during his visit to Mauritius on March 12, this year. The MAHASAGAR vision builds on the SAGAR (Security and Growth for All in the Region) policy that Modi first announced during his visit to Mauritius in 2015. SAGAR has guided India's engagement with the Indian Ocean region over the past decade. Anwar arrived in Rio De Janeiro on Saturday to attend the 17th BRICS Leaders' Summit hosted by Brazil. Malaysia participated in the summit in its capacity as BRICS partner country and chair of ASEAN 2025. The summit marks the first gathering among heads of state and government from BRICS member and partner countries.
