General Studies Paper-2

Context

• The 48th Annual Conference on Oceans Law & Policy (COLP48) was held under the theme “Developing World Approaches to Ocean Governance: Perspectives from the Indian Ocean Rim”.

About 48th Annual Conference on Oceans Law & Policy (COLP48)

• This is the first time in the nearly five-decade history of COLP that the conference is being hosted in the Indian subcontinent.
• The conference is organised by the Stockton Center for International Law, U.S. Naval War College and the Gujarat Maritime University, with support from the Ministry of Earth Sciences.
• Organizer: Traditionally organized by the Center for Oceans Law & Policy at the University of Virginia School of Law (USA).
• Objective: To promote dialogue on legal and policy issues related to the UN Convention on the Law of the Sea (UNCLOS), maritime boundaries, freedom of navigation, and sustainable use of marine resources.
• Participants: Government officials, representatives from international organizations (like IMO, ISA, ITLOS), naval/maritime experts, energy and shipping industry leaders, and scholars.

India outlined the five priority areas for ocean governance from a developing world perspective:

• Ensuring livelihood and food security through sustainable fisheries and agriculture.
• Deepening regional cooperation rooted in South-South solidarity among Indian Ocean Rim nations.
• Integrating traditional knowledge and participatory governance with modern science.
• Promoting climate resilience and ecosystem-based approaches to safeguard biodiversity.
• Mobilising innovative finance and building capacity for ocean research, technology, and governance.

Indian Ocean Region

• The Indian Ocean covers approximately one-fifth of the total ocean area of the world.
• The Indian Ocean is bounded by Iran, Pakistan, India, and Bangladesh to the north; the Malay Peninsula, the Sunda Islands of Indonesia, and Australia to the east; the Southern Ocean to the south; and Africa and the Arabian Peninsula to the west.

Significance of the Indian Ocean Region (IOR)

• Geostrategic Importance: The Indian Ocean is the third largest ocean, linking the Middle East, Africa, South Asia, and Southeast Asia.
  • It is home to crucial maritime chokepoints — Strait of Hormuz, Bab-el-Mandeb, Malacca Strait, Lombok Strait — which together handle a bulk of global energy and trade flows.
  • The IOR acts as a bridge between the East and the West, making it a central theatre for power competition among India, China, the U.S., and other major players.
• Economic Significance: The region carries nearly 50% of global container traffic and 80% of seaborne oil trade.
  • It is a hub of blue economy activities: shipping, fisheries, seabed mining, and tourism.
• Energy Security: The IOR is the lifeline of global energy flows: oil and gas from West Asia transit to East Asia via its sea lanes.
  • Countries like India, China, Japan, and South Korea are energy-import dependent, making stability of the IOR vital.

Why has the focus on IOR been increased recently?

• Rise of New Economies: India and China’s emergence has revived trade networks in IOR and the region is becoming a new economic growth centre.
• Maritime Security Threats: Piracy (especially near Somalia) threatened global shipping lanes and led to increased efforts to secure Sea Lines of Communication (SLOCs).
• Indo-Pacific Construct: The Indo-Pacific combines the Indian and Pacific Oceans into one strategic theatre and highlights the centrality of IOR in shaping new global maritime order.
  • This geographical reimagination enhances IOR’s visibility in global diplomacy and security.
• Implications for Global Order: Control over the IOR can shape:
  • Trade flows (especially oil & gas),
  • Strategic maritime chokepoints (like the Strait of Hormuz, Malacca, Bab el-Mandeb),
  • Military posturing and base logistics.

Challenges in IOR

• Expansion of Chinese Naval Power in IOR: Increased naval vessel deployments in the region in terms of both number and duration.
• Maritime Domain Awareness Activities: Deployment of Chinese research and survey vessels to gather sensitive oceanographic and marine data under the guise of scientific research.
  • Piracy hotspots near the Horn of Africa and in the Malacca Strait threaten shipping.
  • Terrorism, arms smuggling, and trafficking networks exploit porous maritime borders.
• Strategic Port Development Near India: China is actively involved in developing ports and infrastructure in littoral states of the IOR, including those close to India’s maritime boundaries.
  • The objective aligns with China’s long-term goal of becoming a maritime power.

India’s Strategic Responses

• Diplomatic and Security Leadership: India positions itself as first responder in disasters.
• India is a preferred security partner in HADR (Humanitarian Assistance and Disaster Relief), Maritime Domain Awareness (MDA), and development.
• Launch of MAHASAGAR (Mutual and Holistic Advancement for Security and Growth for All in the Region) reflects India’s strategic rebranding in the IOR.
• India earlier resisted external major powers’ presence, but now embraces partnerships with like-minded countries.
• Naval Modernisation and Indigenous Development: India is modernising naval capabilities:
• Commissioning indigenous warships (e.g., INS Vikrant, INS Visakhapatnam).
• Boosting maritime domain awareness and power projection.
• This strengthens India’s force posture and maritime deterrence in the IOR.
• India’s Response and Regional Diplomacy: India is working with regional partners to raise awareness about the long-term implications of Chinese infrastructure projects.
  • Emphasize the risks to internal and regional security from China’s military use of these assets.
  • India on Militarisation of the IOR: India asserts that Militarisation of the Indian Ocean Region is not desirable and will adversely impact security in the Indian Ocean and the wider Indo-Pacific.
• This reflects India’s stance against military usage of Chinese-funded infrastructure in the IOR.

Conclusion

• For India, the IOR is not merely a neighbourhood but a strategic imperative central to its national security, economic growth, and global leadership ambitions.
• Initiatives such as Act East Policy, Indo-Pacific Vision, and Blue Economy strategy reinforce India’s centrality in the IOR.

General Studies Paper-3

Context

• With less than 1% share in global shipbuilding currently, India is on course to be among the world’s top five countries in this arena by 2047.

About Shipbuilding

• Shipbuilding refers to the construction, repair, and maintenance of vessels used for transportation, defense, and trade.
• Shipbuilding is carried out in specialised facilities called shipyards, which are equipped to handle large-scale projects and complex assembly processes.
• Asia-Pacific was the largest region in the ship building and repairing market, accounting for 49% or $118.12 billion of the total in 2023.
• It was followed by Western Europe, North America and then the other regions.
• Currently, India holds only 0.06% of the global shipbuilding market, a stark contrast to the dominance of China, South Korea, and Japan, which collectively control 85% of the industry.

India’s Maritime Sector

• It currently contributes 4% to India’s GDP and just 1% of global tonnage, the vision is to raise its share to 12% of national GDP.
• India has a clear goal of ranking among the top 10 maritime nations by 2030 and among the top 5 by 2047 from the current position of 16th.
• Indian seafarers already represent 12% of the global workforce.
• India has a goal to expand this to around 25%, making shipbuilding and repair central to this transformation.
• The maritime sector handles 95% of India’s trade by volume, underscoring its pivotal role in the economy
• Cargo management at Indian ports rose by 4.45% in FY24, reaching 819.22 million tonnes.

Factors Favouring India’s growth of shipbuilding industry in India

• Strategic location: India’s extensive coastline and proximity to major shipping routes provide a natural advantage for shipyards, helping reduce transportation costs and turnaround times.
• Competitive labour costs: India offers a competitive edge with lower labour costs compared to other shipbuilding nations, making it an attractive option for international clients.
• Focus on niche segments: Indian shipyards are specialising in categories like offshore support vessels, dredgers, and ferries, targeting specific market demands.
• Government support: Policy initiatives such as the Scheme for Financial Assistance to Shipyards in India (SFAS) and a focus on enhancing indigenous shipbuilding capabilities are driving growth in the shipbuilding sector.

Challenges

• Infrastructure Gaps: Inadequate port infrastructure and outdated facilities at some ports, limiting capacity and efficiency.
• Congestion: High traffic volumes at major ports leading to delays, increased turnaround times, and reduced productivity.
• Environmental Concerns: Pollution and sustainability issues, including emissions from ships and port operations.
• Logistics Bottlenecks: Inefficient transport connectivity between ports, roads, and railways, impacting smooth cargo movement.
• Global Competition: Rising competition from other global maritime hubs, necessitates continuous investment and modernization.

Government Initiatives

• Sagarmala Programme: Focuses on leveraging India’s coastline and of navigable waterways.
• Supports port infrastructure, coastal development, and connectivity.
• Financial aid for projects like coastal berths, rail/road connectivity, fish harbours, and cruise terminals.
• Maritime India Vision 2030 (MIV 2030): Aiming for India to become a top 10 shipbuilding nation by 2030 and create a world-class, efficient, and sustainable maritime ecosystem.
  • Includes 150+ initiatives across ten key maritime sectors.
• Inland Waterways Development: 26 new national waterways identified by the Inland Waterways Authority of India (IWAI).
  • Provides alternative, sustainable transport, easing road/rail congestion.
• Green Tug Transition Program (GTTP): Aims to replace fuel-based harbour tugs with eco-friendly, sustainable fuel-powered tugs.
  • Transition to be completed by 2040 across major ports.
• Sagarmanthan Dialogue: An annual maritime strategic dialogue to position India as a global center for maritime conversations.
• Maritime Development Fund: ₹25,000 crore fund for long-term financing to modernize ports and shipping infrastructure, encouraging private investment.
• Shipbuilding Financial Assistance Policy (SBFAP 2.0): Aimed at providing direct financial subsidies to Indian shipyards to help Indian shipyards compete with global giants.
• The Cruise Bharat Mission: It was launched in 2024, aims to develop 100 river cruise terminals, 10 sea cruise terminals, and five marinas, while doubling passenger numbers by 2029.
  • The Indian Ports Act, 2025, replaced an old 1908 law, created a Maritime State Development Council for better national planning, gave more power to state maritime boards to manage smaller ports, and set up a way to resolve disputes at the state level.

General Studies Paper-2

Context

• The National Annual Report & Index on Women’s Safety (NARI) 2025, released by the National Commission for Women (NCW), provides a city-wise ranking of women’s safety in India.

Key highlights from NARI 2025

• Safest cities: Kohima, Visakhapatnam, Bhubaneswar, Aizawl, Gangtok, Itanagar, Mumbai.
• Least safe cities: Patna, Jaipur, Faridabad, Delhi, Kolkata, Srinagar, Ranchi.
  • The national safety score was pegged at 65 per cent, serving as the benchmark for assessing city performance.
• In 2024, 7 per cent of women experienced harassment in public spaces, while the figure rose to 14 per cent among women under the age of 24, indicating greater vulnerability in younger demographics.
• Neighbourhoods (38 per cent) and public transport (29 per cent) emerged as the most reported hotspots of harassment for women.
• Only 25 per cent of women expressed confidence that authorities would act effectively on complaints related to safety and harassment.

Barriers to Gender-Safe Cities

• Institutional and governance deficits: Multiple agencies functioning in silos, leading to weak enforcement of women’s safety measures.
  • Slow judicial response: Delayed investigations and prolonged trials dilute deterrence, allowing repeat offences.
• Transport vulnerabilities: Overcrowded buses, unsafe last-mile connectivity and limited female staff in transport services increase insecurity.
• Under-reporting: Only one in three women report incidents, reflecting both social stigma and weak trust in authorities.
• Persistence of patriarchal norms: Social attitudes trivialise harassment and often shift blame to women, discouraging complaints.
• Over-reliance on data: Official statistics fail to capture perception-based insecurities, which remain invisible in policy frameworks.

Government Initiatives for Women Safety

• Nirbhaya Fund: Ministry of Women and Child Development has established the fund for financing safety projects across the country.
• SHe-Box Portal: Launched by the Ministry of Women and Child Development, Sexual Harassment Electronic Box (SHe-Box) is an initiative to provide a single-window platform for women to register workplace sexual harassment complaints.
• It is accessible to all women, regardless of their work sector (organized/unorganized, public/private).
• Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, applies to all women, regardless of age, job type, or work sector.
• It mandates employers to create an Internal Committee (IC) in workplaces with over 10 employees, while the Appropriate Government sets up Local Committees (LCs) for smaller organizations or cases against employers.

Way Ahead

• Short-term Measure:
  • Integrate 24×7 women helplines with local police, ambulance and municipal services for coordinated response.
  • Conduct rapid compliance audits of POSH arrangements in large employers and publish anonymised compliance statuses.
• Medium-term measure:
  • Make gender audits mandatory under central urban schemes and link city grants to measurable safety indices.
  • Upgrade public transport with mandatory CCTV, grievance redressal timelines and operator accountability.
• Long-term Measure:
  • Launch multi-year gender-sensitisation programmes across schools, colleges and workplaces with measurable behavioural outcomes.
  • Embed gender-sensitivity in police training and evaluation, and promote men’s programmes that challenge patriarchal norms.
• Invest in community-led safety initiatives that rebuild trust between citizens and institutions.

General Studies Paper-3

In News

• India’s urban transformation is accelerating, with cities poised to generate new jobs and host billions of people.

The Need for Climate-Resilient Urban Futures

• India is undergoing an unprecedented urban transformation. By 2030, cities are expected to generate over 70% of new jobs, and by 2050, nearly a billion people will reside in urban areas.
• This demographic shift presents both an opportunity and a challenge: while cities can be engines of innovation and growth, they are also increasingly vulnerable to climate-induced risks such as floods, heatwaves, cyclones, and water stress.

Steps toward building climate-resilient cities

• It includes integrated urban planning that incorporates climate risk assessments, promotes compact mixed-use development, and manages urban water through catchment-based planning.
• Nature-based solutions focus on restoring wetlands, lakes, and mangroves, expanding urban forests, and encouraging permeable surfaces and green roofs to handle excess rainwater.
• Climate-responsive infrastructure involves upgrading drainage systems, installing flood warning systems, retrofitting buildings for energy efficiency and disaster resilience, and investing in solar-powered transport projects.
• Inclusive governance emphasizes empowering local bodies with climate mandates, engaging citizens in planning, and strengthening institutional capacity at various government levels.
• Financing and innovation are critical, with a focus on mobilizing funds through green bonds and public-private partnerships, aligning national urban missions with climate goals, and supporting climate-tech startups and viable projects.

Challenges

• Flooding threatens two-thirds of urban residents, with projected losses reaching $30 billion by 2070, necessitating integrated solutions such as no-build zones, improved drainage, nature-based interventions, and real-time warning systems—exemplified by Kolkata and Chennai.
• Extreme heat, intensified by urban heat islands, demands scalable measures like cool roofs, tree canopies, and adaptive work schedules.
• Housing Vulnerability: With over 144 million new homes and extensive infrastructure yet to be built by 2070.
• Transportation systems, vulnerable to flooding, require risk mapping, drainage upgrades, and alternative routing to maintain economic continuity.
• Waste & Pollution: Inefficient municipal services contribute to poor air, water, and soil quality, undermining urban livability.

Conclusion and Way Forward

• To address climate challenges, cities need to build institutional capacity, promote collaboration, and get the support of both the government and the citizens.
• Early investments in adaptive infrastructure and inclusive urban planning can prevent billions in damages and save lives.
• Housing must be designed to withstand floods, heat, cyclones, and earthquakes, focusing on compact and forward-looking city layouts.
• Modernizing municipal services, such as waste-to-energy projects, will improve environmental quality and boost urban productivity.

General Studies Paper-3

Context

• India’s space sector is projected to surge from USD 8.4 billion in 2022 to USD 44 billion by 2033, aiming to capture 8% of the global market.

India’s share in the Space Industry

• India’s space economy contributes 2-3% of the global space economy, and this is expected to rise to 8% by 2030 and further to 15% by the year 2047.
• With over 400 private space companies, India ranks fifth globally in the number of space companies.
• Private players in the Space Industry: The number of space startups in India increased to nearly 200 in 2024 from just one in 2022.
• The funding received by these start-ups reached a total of $124.7 Mn in 2023 from $67.2 Mn in 2021.
• Skyroot have launched India’s first privately built rocket, Vikram-S, into space, with plans to revolutionise satellite launches.

Steps Taken by the Government

• Space Sector Reforms (2020): The Government allowed private sector participation, defining the roles of IN-SPACe, ISRO, and NSIL.
• Venture Capital (VC) Fund: The Union Cabinet has approved the establishment of a Rs.1,000 crore Venture Capital (VC) Fund dedicated to supporting India’s space sector.
• ISRO’s Structural Strength & Cost-Effectiveness: ISRO’s track record of high-impact, cost-efficient missions—such as Chandrayaan-3 and the Mars Orbiter Mission—has positioned India favorably on the global stage.
• Space Vision 2047: Aims for Bharatiya Antariksh Station (BAS) by 2035 and an Indian Moon landing by 2040.
  • Gaganyaan programme has entered its final phase, with the first human spaceflight now scheduled for the first quarter of 2027.
  • Bharatiya Antariksh Station (BAS) first module by 2028.
  • Next Generation Satellite Launch Vehicle (NGLV) by 2032.
  • Chandrayaan-4 by 2027, to collect moon samples and demonstrate return technology.
  • Venus Orbiter Mission (VOM) by 2028, to study Venus.
• Indian Space Policy, 2023: Ensures a level playing field for Non-Government Entities (NGEs) in space activities.
• SpaceTech Innovation Network (SpIN): SpIN is a one-of-its-kind public-private collaboration for start-ups and SMEs in the space industry.
• Under the amended FDI policy,100% FDI is allowed in the space sector.
  • Up to 74% (Automatic route) for satellite-related activities; beyond that, government route.
  • Up to 49% (Automatic route) for launch vehicles and spaceports; beyond that, government route.
  • 100% (Automatic route) for manufacturing components and sub-systems for satellites and ground/user segments.

Way Ahead

• Private entities are now actively involved in crucial aspects of research, manufacturing, and fabrication of rockets and satellites, fostering a vibrant ecosystem of innovation. It is expected to integrate Indian companies into global value chains.
• With this, companies will be able to set up their manufacturing facilities within the country, duly encouraging ‘Make In India (MII)’ and ‘Atmanirbhar Bharat’ initiatives of the Government.

General Studies Paper-2

In News

• Mass protests led by Nepal’s Generation Z erupted prompting widespread violence, including the burning of government buildings and attacks on politicians.

Reasons for Crisis in Nepal

• Gen Z Discontent: Frustration over corruption, the luxurious lifestyles of leaders, lack of accountability, and youth unemployment (above 20%) fueled mass discontent, especially as remittances form a major part of the economy but job prospects in Nepal remain bleak.
• Suppression of Dissent: The government banned 26 major social media platforms, citing regulatory reasons, but this was widely seen as an attempt at censorship. Social media is a main channel of expression for young Nepalis, and its removal triggered immediate nationwide demonstrations.
• Extreme State Response: Protesters faced excessive force—police fired live rounds, rubber bullets, and enforced harsh curfews, resulting in over 20 deaths and hundreds wounded.

Impacts of India’s Troubled Neighborhood

• Security Threats: Instability and the rise of extremist ideologies in neighboring countries directly threaten India’s internal security. The porous border with Nepal, for example, is a concern for the movement of radical groups.
• Diplomatic Challenges: India’s foreign policy bandwidth is often consumed by managing crises in its immediate vicinity, leaving less room to focus on its “extended neighborhood” and its aspiration to be a global power.
• Economic Consequences: Instability can disrupt trade routes and tourism, as seen in the recent Nepal crisis which affected flights and border movements. Additionally, India may face the burden of economic support and humanitarian aid.
• Domestic Political Spillover: Issues from neighboring countries, such as ethnic or communal conflicts, can sometimes influence domestic politics in India, especially in border states with shared populations and cultural ties.

General Studies Paper-2

Context

• The Government of India released the Special Bulletin on Maternal Mortality in India 2021–23, prepared by the Office of the Registrar General of India (ORGI), Ministry of Home Affairs under the Sample Registration System (SRS).

About

• The report shows a Stable Maternal Mortality Ratio (MMR) of 88 per 1,00,000 live births for the period 2021–23.
• Categorization of States: States are categorized as “Empowered Action Group” (EAG), “Southern,” and “Other” for analyzing regional trends.

What is Maternal Mortality?

• Maternal death is the death of a woman while pregnant or within 42 days of termination of pregnancy, irrespective of the duration and site of the pregnancy, from any cause related to or aggravated by the pregnancy or its management but not from accidental or incidental causes.
• Maternal Mortality Ratio (MMR) is the number of maternal deaths per 1,00,000 live births.
• Maternal Mortality Rate: This is calculated as maternal deaths to women in the ages 15-49 per lakh of women in that age group, reported under SRS.
• The Sustainable Development Goal (SDG) 3.1 targets reducing the global maternal mortality ratio to less than 70 per 1,00,000 live births by 2030.

Government Initiatives to Reduce MMR

• Janani Suraksha Yojana (JSY): Launched in 2005 with the objective of reducing maternal and neonatal mortality, JSY promotes institutional delivery among pregnant women especially with weak socio-economic status.
• Pradhan Mantri Matru Vandana Yojana (PMMVY), is a maternity benefit program run by the Ministry of Women and Child Development, Government of India.
  • The maternity benefit, of Rs. 5000/-, is available to a woman for the first living child of the family subject to fulfilment of conditionalities.
  • Further under ‘Mission Shakti’, the scheme (PMMVY 2.0) provides additional cash incentive for the second child, if that is a girl child.
• Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA): Launched in 2016, PMSMA provides pregnant women a fixed day, free of cost assured and quality Antenatal Care on the 9th day of every month.
• LaQshya: Launched in 2017, LaQshya aims to improve the quality of care in labour room and maternity operation theatres to ensure the quality care during delivery and immediate post-partum.
• Capacity building is taken-up for MBBS doctors in Anesthesia (LSAS) and Obstetric Care including C-section (EmOC) skills to overcome the shortage of specialists in these disciplines, particularly in rural areas.
• Maternal Death Surveillance Review (MDSR) is implemented both at facilities and at the community level. The purpose is to take corrective action at appropriate levels and improve the quality of obstetric care.
• Monthly Village Health, Sanitation and Nutrition Day (VHSND) is an outreach activity for provision of maternal and child care including nutrition.
• Reproductive and child health (RCH) portal is a name-based web-enabled tracking of pregnant women and new-born to ensure provision of regular and complete services to them including antenatal care, institutional delivery and post-natal care.

Challenges Still Faced in India

• High Out-of-Pocket Expenses (OOPE): Despite policy efforts, families often bear the cost of diagnostics, medicines, and private services during emergencies.
• Sociocultural Barriers: Gender dynamics, low education levels, restricted decision-making power among women, and stigma around maternal care all delay early care-seeking.
• Rise in High-Risk Pregnancies: Trends such as delayed childbirth, obesity, hypertension, diabetes, and short inter-pregnancy intervals contribute to riskier pregnancies.
• Weak Infrastructure in Remote Areas: Rural, tribal, and hilly regions lack emergency obstetric care, reliable transport, and blood storage facilities.

Way Ahead

• India has made significant progress in reducing maternal mortality, successfully achieving the National Health Policy (NHP) target of an MMR below 100 by 2020.
  • However, continued efforts are required to reach the SDG target of MMR by 2030.
• Strengthening healthcare infrastructure, expanding maternal health programs, and addressing socioeconomic barriers will be critical in further reducing maternal mortality in the country.

General Studies Paper-2

Context

• Recently, a virtual BRICS Summit was held against the backdrop of increasing global concerns over U.S tariff tussle.
  • The summit was called by Brazil amid the 50% tariffs imposed by the U.S on both India and Brazil.

India’s Stand During the Summit

• India strongly believes that the international trading system’s foundational principles of non-discriminatory and rules-based norms must be protected and that there is a need to create more resilient and reliable supply chains.
• Constructive and cooperative approaches are needed by the world to promote sustainable trade.

About BRICS

• BRICS is an acronym that refers to a group of five major emergingnational economies: Brazil, Russia, India, China, and South Africa.
  • Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia, and the United Arab Emirates have joined BRICS as new full members.
• The term BRIC was originally coined by economist Jim O’Neill in 2001.
• Origin: As a formal grouping, BRIC started after the meeting of the Leaders of Russia, India and China in St. Petersburg on the margins of the G8 Outreach Summit in 2006.
  • The grouping was formalized during the 1st meeting of BRIC Foreign Ministers on the margins of UNGA in New York in 2006.
  • Initially, the grouping was termed BRIC as South Africa was inducted in 2010 and from there on it has been referred to as BRICS.
• Summits: The grouping have met annually at formal summits since 2009.
  • Each country takes a one-year chairmanship to set priorities and host a summit. The bloc relies on consensus-based decision-making.
• BRICS brings around 49.5 % of the global population, around 40% of the global GDP and around 26% of global trade.
• BRICS countries have come together to deliberate on important issues under the three pillars of:
  • political and security,
  • economic and financial and
  • cultural and people-to-people exchanges.
• New Development Bank: Formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states.
  • The Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments.

Increasing Relevance of BRICS

• Alternative to Western Blocs: BRICS countries seek to build an alternative to the dominance of the Western viewpoint in major multilateral groupings, such as the World Bank, the Group of Seven (G7), and the UN Security Council.
• Represents growing economic and demographic heft: The eleven BRICS countries now comprise more than a quarter of the global economy and almost half of the world’s population.
  • The group is poised to exert influence over the wars in the Gaza Strip and Ukraine.
• Advocate for Greater Global Representation: BRICS seeks to establish a united front of emerging economy perspectives in multilateral institutions.
  • The group aims both to push for reform of existing institutions, such as expanding the UN Security Council, and to form negotiating blocs within those institutions.
• Coordinate Economic Policy: The 2008 global recession hit the BRICS countries hard, leading the group to emphasize economic coordination on issues such as tariff policy, export restrictions of critical resources, and investment.
• Reduce reliance on the U.S. dollar: BRICS leaders have long advocated for de-dollarization in favor of increased trade in local currencies or even a potential common BRICS currency.
• Create an Alternative Finance System: The group’s New Development Bank (NDB) and Contingent Reserve Arrangement (CRA) are meant to be an alternative lending institution that can strengthen South-South cooperation and reduce dependence on traditional funding sources.

Significance of BRICS for India

• Platform for Strategic Autonomy: BRICS offers India a non-Western multilateral platform to engage with global powers without aligning exclusively with any bloc.
• Enhanced Global Influence through a Larger Bloc: With BRICS now representing almost half the world’s population and including key oil producers, India benefits from being part of a more influential economic and political grouping.
• Championing Global South: India positions itself as a leading voice of the Global South within BRICS.
  • BRICS’ claim as a representative of developing countries, aligning with India’s push for a more equitable world order.
• Strategic Engagement with the Middle East: Inclusion of Saudi Arabia, Iran, UAE, and Egypt provides India with new diplomatic and economic avenues in the Middle East, a region vital for: Energy security, Diaspora welfare and Maritime security and investment cooperation.
• Push for Multilateral Reform: A larger BRICS enhances the push for UNSC reform, where India seeks a permanent seat.
• Counterbalance to China’s Dominance: A broader membership may dilute China’s dominance within BRICS.
  • India can build coalitions with new members to promote balanced agendas and prevent unilateralism.

Challenges

• Internal Geopolitical Tensions: India–China border disputes strain bilateral trust.
• Asymmetry in Power and Influence: China’s economic dominance creates imbalance in decision-making.
• Lack of Cohesive Vision: BRICS lacks a unified ideology or strategic coherence beyond broad themes like multilateralism and development.
  • Members pursue divergent national interests, limiting collective action.
• Institutional Limitations: BRICS has no permanent secretariat, making coordination ad hoc and dependent on rotating presidencies.
  • Limited enforcement mechanisms reduce implementation of summit declarations and commitments.
• Economic Disparities: Members are at different stages of economic development and face unique challenges, it creates difficulty in setting common economic goals or trade policies.
• Expansion-related Challenges: The inclusion of new members adds diversity but also increases coordination complexity and risks diluting the original focus.

Way Ahead

• Deepen Intra-BRICS Economic Integration: Simplify trade logistics among member states to offset disruptions from external protectionism.
• Explore regional payment mechanisms as alternatives to SWIFT ((Society for Worldwide Interbank Financial Telecommunication), as advocated in earlier summits.
• Diversify Trade Partnerships: Develop alternate markets and supply chains—particularly within the Global South—to reduce economic dependency on the U.S.
  • Prioritize South–South cooperation across sectors like energy, technology, and agriculture.

General Studies Paper-2

Context

• India and Israel signed a Bilateral Investment Agreement (BIA).

About

• Israel has become the first OECD (Organisation for Economic Co-operation and Development) member state to sign an investment pact under India’s new model treaty framework.
• The BIA replaces the earlier investment treaty signed in 1996, which was terminated in 2017 as part of India’s policy overhaul on such agreements.
• The Agreement will increase bilateral investments, which presently stands at a total of USD 800 million.
• The new agreement provides protection for investors while promoting cross-border investments in key sectors: innovation, infrastructure development, financial regulation, and digital services.
• The signing of the Agreement reflects both nations’ shared commitment towards enhancing economic cooperation.

India and Israel Bilateral Relations & Evolving Ties

• Bilateral Relations: India announced its recognition of Israel in 1950. Regular embassies opened in 1992 when full diplomatic relations were established between the two countries.
  • In 2022-23, the two countries jointly celebrated 30 years of the elevation of bilateral ties to full diplomatic ties.
• Defense & Security: Israel has been a key supplier of advanced technology from AWACS (Airborne Warning and Control System) radars and drones to missile and surveillance systems making it one of India’s largest defense suppliers.
• Bilateral Trade: India is Israel’s 2nd trading partner in Asia and the 7th largest globally.
  • In FY 2023-24 and FY 2024-25 the bilateral trade (excluding defense) was US$ 6.53 billion and US$3.75 billion respectively.
• Investment: During April 2000 – March 2024, Israel’s direct FDI into India was U.S. $334.2 million.
  • There are over 300 investments from Israel in India mainly in the high-tech domain, agriculture and water.
• Agriculture & Water Management: In 1993, the first Agreement on Cooperation in Agriculture was signed.
  • 2006: Comprehensive Work Plan on Agriculture launched (3-year cycles) – implemented through MASHAV (Israel’s Agency for International Development Cooperation).
  • 2025: Revised Agriculture Cooperation Agreement signed, expanding areas of partnership.
  • The Indo-Israeli Centers of Excellence (CoE) demonstrate Israeli expertise, technologies and innovation in the horticultural field.
• Science, Technology, Counter-Terrorism & Innovation: India-Israel cooperation in Science & Technology (S&T) is overseen by the Joint Committee on S&T, established under the Agreement of Science & Technology cooperation signed in 1993.
  • A US$ 40 million India-Israel Industrial R&D and Technological Innovation Fund (I4F) for joint projects was also set up.
• Multilateral Cooperation: Both are active members of the I2U2 group (India, Israel, USA, UAE), focusing on economic and space collaboration with projects like food parks and space-based environmental tools.

Significance for India

• Defence & security: Israel is a reliable partner for critical technologies for India and can be instrumental in India’s Self Reliance and Make in India.
• Agriculture & water: Israel is known for its model of innovation, water conservation, and high-yield farming, India can adopt these technologies with collaboration.
• Geopolitics: It is an important strategic partner for India in West Asia that complements India’s Act West policy.

Way Ahead

• India–Israel ties are a strategic partnership spanning defence, agriculture, water, innovation, and trade.
• Defence and agriculture remain the strongest pillars, while cooperation is expanding into new domains like food security, startups, and I2U2 multilateralism.
• The Agreement marks a historic milestone in the relation of two countries.
• The agreement is expected to boost investments, provide greater certainty and protection for investors.

General Studies Paper-3

Context

• The GST Council has simplified the existing four-tier system (5%, 12%, 18%, and 28%) into a two-slab structure:
• 5% – for essential goods
• 18% – for most standard goods and services
• Additionally, a new 40% slab is introduced to tax sin and luxury items.

More About the News

• 0% GST on vital goods/services: Basic food items, health and life insurance, educational materials, select medical devices.
• 33 life-saving drugs + 3 key cancer medicines have zero GST.

Benefits of Key Changes

• For Consumers: Lower living costs and improved access to healthcare and education due to reduced or zero GST.
• For Businesses: Fewer slabs mean less confusion and classification disputes, promoting easier compliance.
  • Lower GST rates for autos, durables, FMCG stimulate demand and encourage formalization of smaller enterprises.
• For Economy & Government: CPI inflation down by ~1.1 percentage points projected by experts, easing household budgets.
  • Demand stimulus coincides with the festive season to energize consumption.
  • A predictable regime strengthens the investment climate.

Key Challenges

• Government Revenue: ₹48,000 crore ($5.5 billion) expected short-term fiscal loss that may stress fiscal consolidation aims.
• Centre–State Tensions: Compensation worries and disputes over revenue-sharing could arise.
• Removal of Input Tax Credit (ITC): Certain sectors like healthcare products and insurance are exempted from GST. Exemption means businesses cannot claim ITC, leading to cascading taxes (tax on tax) and higher hidden costs in the supply chain.
  • Uncertainty over National Anti-Profiteering Authority (NAA): The NAA was set up to ensure businesses passed on GST rate cuts to consumers.
  • Initially meant for 2 years (extendable by GST Council), but uncertainty over revival or replacement creates gaps in monitoring profiteering.
• Sectoral Unevenness: Luxury taxed at 40% could spur illicit markets; mid-tier industries (textiles, construction) concern at 18%.
• Transitional Issues: Re-labeling MRPs on old stock risks wastage of packaging materials.