Mains Examination: General Studies-II, III: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests; Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.
— What are the major agreements signed by India in the past year?
— What is the significance of the India-US trade deal? How important is it for India?
— What was the impact of US reciprocal tariffs on India?
— How does the delay in the India-USA trade deal impact the inflow of Foreign Portfolio Investors (FPIs)?
— What is the status of India’s oil import from Russia?
— How does the grade and quality of crude and LNG impact their import in the case of India?
— Venezuelan crude offers India a politically acceptable diversification option amid American pressure on India’s Russian oil imports. Elaborate.
— Assess the impact of US tariffs on the Indian economy.
— Prima facie, an 18 per cent headline tariff places India in a reasonably good position against competitors in terms of accessing the American market, but the fine print of the deal would really hold the key to how favourable it is from New Delhi’s perspective.
— A convergence between the two countries on the reciprocal tariff was achieved over the last week, with a number of ‘sticky issues’ having been addressed.
— With trade deals inked with the US, UK and European Union, the global trade map seems to have tilted in India’s favour, compared with East Asian economies that seemed to be racing ahead with significant Chinese investments.
— India now has an advantage as large markets in the West continue to restrict Chinese products with the use of anti-dumping duties and other trade restrictive measures.
— India now has in place deals with the two of the three largest economies — the US and the EU, while the prospects of a thaw in trade relations is unfolding with China.
— THE sharp cut in reciprocal tariffs by the US to 18% will “remove all uncertainty” in the minds of global investors, and “the China +1 strategy will be back in the game” brightening the prospects of FDI inflows, according to Chief Economic Advisor V Anantha Nageswaran.
— The rupee is likely to bounce back strongly when domestic financial markets open on Tuesday. It had settled at 91.51 to a US dollar on Monday.
— The 50% tariff, comprising a reciprocal tariff of 25% and a penal 25% for the purchase of Russian arms and crude, has been in force for nearly half a year — a period that has seen foreign investors exit Indian financial markets amid heightened geopolitical and policy uncertainty.
— Foreign Portfolio Investors (FPIs) have pulled out nearly $12 billion on a net basis from the stock markets since the beginning of August 2025. This should, however, change now that the US and India have cut a deal that sees the tariff rate fall to a level that compares favourably with key export rivals like Vietnam, Malaysia, Cambodia, Thailand, Bangladesh, Indonesia (all 19-20%) and China (37%).
— Along with FPIs pulling out money from financial markets, direct investment inflows – long-term money that helps set up factories on the ground – has weakened rapidly in the last couple of years. According to latest RBI data, November 2025 saw net FDI outflows of $446 million from India – outflows for the third straight month.
— Weak FDI inflows have been a huge concern over the last couple of years. The Economic Survey for 2025-26, tabled in Parliament just last week, had described India as “a victim of geopolitics” and said that the rupee’s valuation does not accurately reflect India’s “stellar economic fundamentals” and had been “punching below its weight”.
— While India had started reducing import of Russian oil since September, it began negotiating the deal since February last year after Modi’s visit to the White House.
— “I look forward to working closely with him to take our partnership to unprecedented heights,” Modi said, tagging @POTUS and @realDonaldTrump.
— Trump’s comments flagged three key elements: an agreement on the much-delayed and anticipated trade pact; India has agreed to stop buying Russian oil and will buy American products as part of the $500 billion trade target set in February last year during Modi’s visit to the White House.
— Modi, however, did not address the point flagged by Trump that India has agreed to stop buying Russian oil. Records, however, show that there’s an unmistakable downward trend in Russian purchases due to sanctions and market constraints apart from its unfavourable political cost.
— India’s hefty imports of Russian crude had emerged as major point of friction for the Donald Trump administration in its relationship with New Delhi.
— The Trump administration has held the view that by buying large quantities of Russian crude, India was helping Russia finance its war in Ukraine.
— From being a peripheral supplier of crude to India, Russia emerged as its largest source following Moscow’s February 2024 invasion of Ukraine, as Western buyers of Russian crude started reducing imports.
— Over the past couple of months, India’s Russian oil imports have declined steadily to a three-year low, as per tanker data.
— This followed US sanctions against Russia’s top oil producers and exporters Rosneft and Lukoil. From the 2025 peak of 2.09 million barrels per day (bpd) in June, India’s Russian oil imports dropped to 1.16 million bpd in January 2026, according to data from commodity market analytics firm Kpler.
— Meanwhile, the US has consistently been India’s fifth-largest oil supplier for a few years now.
— According to industry insiders, India has been increasing its oil imports from the US and can continue to do so, provided it is priced competitively, as the cost of shipping oil from the US to India is currently more than double of getting oil from West Asia.
— The other key consideration would be the US crude grades on offer and their compatibility with Indian refineries. This is because different crude grades are suitable for different petroleum products from an operational and efficiency perspective.
— Indian refineries are currently more accustomed to crudes from traditional West Asian suppliers, and now even Russian crude, although they have the capability to process nearly all types of crude.
— Ramping up liquefied natural gas (LNG) imports from the US would be relatively straightforward from a commercial perspective. Washington is New Delhi’s second-largest supplier of LNG, after Qatar.
— Higher freight, while also a factor in importing LNG from the US, is not as major a concern as in the case of crude oil. This is because American gas itself is usually priced at a significant discount to gas from other major suppliers like Qatar.
— This means that despite paying more for transportation of American LNG to India, the landed price for Indian LNG importers would mostly be lower than importing from West Asia. Also, unlike crude that has numerous grades and qualities, LNG from various geographies is broadly consistent and similar in quality.
— Venezuelan oil, which India has not been importing due to US sanctions, presents a major opportunity for Indian refiners.
— India — specifically private sector refining giant Reliance Industries (RIL) — was a regular buyer of Venezuelan crude prior to the imposition of US sanctions on Caracas in 2019.
— Thereafter, oil imports from Venezuela stopped within a few months. Caracas was New Delhi’s fifth-largest supplier of oil in 2019, providing close to 16 million tonnes of crude to Indian refiners.
— This comes after India addressed several US demands in the Budget and also began aggressively signing trade deals with other countries, including the UK and the EU.
— New Delhi had also signed a liquefied petroleum gas (LPG) deal where Indian public sector refiners have inked a one-year deal for American LPG imports and had passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, allowing private players to enter the operations side of the tightly-governed nuclear power sector – fulfilling key US demands.
— India was among the first countries to start negotiations with the US, but the trade deal comes after much of the world, including China, has reached an agreement with the US.
— The first sign of India addressing Trump’s concerns came in even before Modi’s visit. As Trump consistently called India ‘tariff king’ talking about American companies such as Harley Davidson failing in India due to high tariffs, India slashed duty on more than two dozen items in the Union Budget.
— This included a reduction in tariff on motorcycles with an engine capacity above 1,600cc from 50% to 30%. Just days before the PM’s visit, the government also slashed duty on bourbon whisky to 50% from 150%. The US is its largest producer.
— Indian exports suffered a decline in September and October due to the 50% tariffs that came into effect on August 27. However, overall exports in November jumped 19% as New Delhi’s exports to the US also jumped 22%, driven by products that are not part of the reciprocal tariffs.
— Shipments in September — the first month to see the impact of 50% tariffs — showed that India goods managed to find markets elsewhere. Several trade deal negotiations which were stalled earlier also came back to prominence. New Delhi signed a trade deal with the EU, UK, Oman and also concluded the New Zealand deal while facing steep tariffs.
— The Commerce and Industry Ministry has also resumed trade talks with Canada and Israel, which were canned earlier.
— Analysis of data released by the Commerce and Industry ministry showed that while gems and jewellery exports to the US plummeted 76% in September compared with last year, total gems and jewellery exports registered only a marginal 1.5% dip. Shipments to the UAE jumped 79%, to Hong Kong 11%, and Belgium 8%, the data showed.
— A similar pattern was visible in auto components, whose exports to the US dropped 12% in September, but shipments to Germany, the UAE, and Thailand helped total auto component exports grow 8%. Marine products grew 23% in September and 11% in October, largely due to higher exports to China (up almost 60%), Japan (37%), Thailand (about 70%) and the European Union.
— However, low-margin, labour-intensive product segments such as cotton garments, sports goods, carpets, and leather footwear, which face stiff competition from China and the Association of Southeast Asian Nations (ASEAN) countries, are struggling to diversify their shipments, indicating that the long-term impact of US tariffs could be uneven, hitting small units operating across the country more.
— A high goods trade deficit between India and the US was one of the most prominent concerns raised by US President Donald Trump even before he assumed office earlier this year. However, the latest trade data suggests that India has stepped up imports from the US, narrowing the trade gap.
— Data shared by the Commerce and Industry Ministry shows that India’s goods trade surplus with the US has nearly halved to $1.73 billion in November from $3.17 billion in April.
— While the US tariffs have resulted in a steep decline in exports to the US, particularly after August 27, when the 50 per cent tariffs came into effect, India has stepped up imports from the US.
— India’s exports to the US decreased from $6.86 billion in August to $6.30 billion in October, while imports rose from $ 3.60 billion in August to $4.84 billion in October.
(1) In the context of global oil prices, “Brent crude oil” is frequently referred to in the news. What does this term imply? (UPSC CSE 2011)
1. It is a major classification of crude oil.
2. It is sourced from the North Sea.
3. It does not contain sulfur.
Which of the statements given above is/are correct?
‘What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self-esteem and ambitions’. Explain with suitable examples. (UPSC CSE 2019)
NATION
Preliminary Examination: Current events of national importance, Indian Polity & Governance – Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.
Mains Examination: General Studies-II, III: Functions and responsibilities of various Constitutional Bodies., issues and challenges pertaining to the federal structure, Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment; Government Budgeting.
What’s the ongoing story: Flagging a sharp surge in ‘large-group unconditional cash transfer schemes’ across states, the 16th Finance Commission has warned that a growing reliance on cash handouts could destabilise state finances. It called for a periodic and rigorous review of subsidies, rationalisation of the beneficiary base, and clear sunset or exit clauses.
— What are Finance Commissions?
— Know about the 16th Finance Commission.
— What are the key recommendations of the 16th Finance Commission?
— What is the difference between horizontal and vertical tax devolution?
— What are the issues with the cash transfer schemes?
— What is Jan Dhan–Aadhaar–Mobile (or JAM) trinity?
— What are the advantages and disadvantages of privatising the country’s power distribution sector?
— What do you understand by the term “fiscal populism”?
— What are the challenges in the privatisation of discoms?
— What are the Challenges of Finance Commissions?
— The Commission singled out BJP-ruled Maharashtra and Odisha, and opposition-ruled Jharkhand, as among the states that have seen the steepest rise in such spending over the past two years. In its report for the 2026–31 period, tabled in Parliament on Sunday, the Commission, chaired by economist Arvind Panagariya, said this trend has significantly reshaped how states spend on subsidies.
— Across 21 states, large cash transfer schemes — which involve direct payments to beneficiaries without performance benchmarks or conditions on how the money is used — now account for more than one-fifth or 20.2% of total subsidy spending in the 2025–26 Budget Estimates, up sharply from just 3% in 2018-19.
— The review process, the Commission said, must ensure benefits reach the most vulnerable and help reduce, and eventually eliminate, revenue deficits. “There is a need to introduce sunset clauses, especially in schemes that provide subsidies on non-merit private goods and general unconditional transfers,” it said, recommending that governments put in place formal mechanisms to periodically review such subsidies.
— It also pointed to a shift within the universe of unconditional cash transfers. While social security for pensioners and farmers accounted for the bulk (or 84%) of such spending in 2018–19, large cash transfer schemes now make up nearly half (or 47.4%) of all unconditional transfers, overtaking both categories by 2025–26.
— The Commission attributed this shift in part to improvements in delivery systems, noting that while the Jan Dhan–Aadhaar–Mobile (or JAM) trinity has reduced leakages and improved efficiency, it has also made cash payments to broad population groups a preferred welfare instrument for states.
— Such transfers recorded a trend growth of 53.6% between 2018-19 and 2025-26, with total outlay projected to reach Rs 1.96 lakh crore in 2025-26. However, the Commission notes that a large part of the expansion has occurred after 2023–24, indicating a recent acceleration rather than a gradual build-up.
— It cautioned that financing these schemes through off-budget borrowings, guarantees or revenue assignments is “fiscally imprudent”, as it creates opacity in public accounts, and said such practices should be discontinued and actively discouraged.
— The 16th Finance Commission has recommended privatising the country’s power distribution sector as a crucial step to modernise it and address its long-standing financial stress. It also sought to create incentives for privatisation by devising a mechanism to shield private investors from accumulated debt burden of distribution utilities after their takeover.
— To make discoms a better investment opportunity, it puts emphasis on the state governments to create special purpose vehicles (SPV) where all the accumulated working-capital loans and other non-asset-backed debt are parked.
— The Commission also recommends that prepayment or eventual repayment of accumulated debt be made eligible for assistance under the Centre’s special incentive scheme for capital investment to incentivise states towards privatisation. However, it tied the availability of central assistance to the privatisation of discoms by state governments.
— “Privatisation of discoms will serve not only the short‑term goal of resolving the problem of losses‑debt‑bailout cycle but also help modernise the distribution sector,” the Commission noted.
— Over the past three decades, the power distribution sector has been weighed down by persistent debt pressures, triggering three major bailout exercises — 2000-01, 2012-13 and 2015-16. Yet, the financial position of discoms has failed to improve, with their outstanding debt touching a record high of Rs 7.5 lakh crore by the end of 2023-24. At the same time, the total accumulated losses of public sector discoms currently stand at Rs 6.77 lakh crore.
— The Commission said a major hurdle in privatisation efforts is the high level of debt on the books of discoms, especially where it has been incurred not to create physical assets but to maintain operational liquidity.
— It suggested the state governments to create SPVs as a solution to make discoms attractive for private investment, adding that they will function as a “warehouse” for the accumulated working capital and other loans not backed by any asset.
— Finance Commission has suggested SPV creation to make discoms attractive for private investment. They will function as a ‘warehouse’ for accumulated working capital and loans not backed by any asset. This transfer will make discoms a better investment opportunity, it said.
— “The Commission, which covers the period from 2026 to 2031, has kept the vertical devolution intact, retaining the states’ share in the divisible pool at 41 per cent. But, in determining the horizontal devolution, it has deviated from the previous Commission on the criteria and weights to be used. For instance, it has reworked the weights assigned to some criteria such as population, while also adding the criterion of the state’s contribution to GDP. Based on its framework, the share of the southern states has increased from 15.8 per cent under the 15th FC to 17 per cent. Others that have also seen an increase are Gujarat, Maharashtra, Punjab and Jharkhand, while states like Uttar Pradesh, Bihar, Madhya Pradesh and Rajasthan have seen a decline.
— The Finance Commission has also made some welcome recommendations in areas such as state finances. For instance, it has argued that states should discontinue the practice of incurring off-budget borrowings, while keeping the deficit capped at 3 per cent of GSDP. Considering the concerns over “fiscal populism”, also articulated by the Economic Survey, the Commission has recommended the rationalisation of subsidy schemes and the introduction of “sunset clauses” for schemes that give subsidies on non-merit private goods and unconditional transfers. The Commission has also sought to move the needle on privatising power distribution companies and on the closure or privatisation of loss-making or inactive public sector enterprises. These are reasonable recommendations that should be acted on urgently.”
— The report of the 16th Finance Commission was tabled by Finance Minister Nirmala Sitharaman in Lok Sabha on Sunday. Accepting the key recommendations of the report, Sitharaman provided details on state-wise share in the net proceeds of Union taxes and duties for the year 2026-27.
— The Commission, which covers the period from 2026 to 2031, has kept the vertical devolution intact, retaining the states’ share in the divisible pool at 41 per cent. But, in determining the horizontal devolution, it has deviated from the previous Commission on the criteria and weights to be used.
For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?
Discuss the recommendations of the 13th Finance Commission which have been a departure from the previous commissions for strengthening the local government finances. (UPSC CSE 2013)
THE IDEAS PAGE
Preliminary Examination: Current events of national and international importance.
Main Examination: General Studies-II, III: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests, Effects of liberalisation on the economy.
What’s the ongoing story: Mohan Kumar writes- “It is hard to overstate the importance of what the European Union (EU) and India have just accomplished. In one fell swoop, the two sides have concluded the long-pending free trade agreement (FTA), finalised a Security and Defence Partnership, zeroed in on a Comprehensive Framework for Cooperation on Mobility and decided on a Comprehensive Strategic Agenda for 2030. In a geopolitically turbulent world, these agreements lend a measure of stability not just to the two parties but also to the world at large.”
— Know about the EU in detail.
— How have India-EU relations evolved?
— What is the significance of the India-EU trade deal?
— What are the key takeaways of the India-EU Summit?
— What are the deals signed between India and the EU recently?
— Read about the India-EU Security and Defence Partnership.
— What are the challenges in India-EU relations?
— Read about the India-Middle East-Europe-Economic Corridor.
— “The FTA was a long time coming. There were certainly substantive difficulties for both sides. For India, agriculture and dairy were non-negotiable, the auto sector presented political challenges, the country was not ready for discussion on environment, labour standards, government procurement, and so on. For the EU, agriculture exports were crucial, the prospect of auto exports to the third-largest market was mouth-watering and the mood in the European Parliament was in favour of environment and labour standards in FTAs. It is therefore commendable that both sides burnt the midnight oil to arrive at a mutually acceptable deal.”
— “The EU is a $22-trillion economy with a population of 450 million high-income consumers. India may only be a $4-trillion economy for now, but it is the fastest-growing one. For the EU, India also offers a clear alternative to China in the medium term. The FTA delivers unprecedented market access for more than 99 per cent of India’s exports while preserving policy space for sensitive sectors.”
— “Sectors like leather, footwear, textiles, garments, marine products, medical instruments, gems and jewellery, plastics and chemicals should see growth in exports. The mobility partnership agreement is crucial for the movement abroad of Indian professionals, students and skilled workers. With a carefully calibrated opening of the economy, Indian manufacturing may be expected to become more competitive, and a much-needed surge in investment is likely.”
— “It is nevertheless worth pointing out that India must continue to carry out deep reforms to get maximum mileage out of this and other FTAs. This FTA should also help India meet the regulatory challenges of the European market. More than anything else, it enables India to integrate into European value chains and attract significant FDI.”
— “The Security and Defence Partnership is hugely significant. Hitherto, India has had substantial defence ties with European countries such as France on a bilateral level. The new deal provides an overarching framework for defence cooperation between India and the EU.”
— “There is a temptation among some observers to attribute the timing and content of the India-EU Agreements above to the current security and defence strategy of the US. This would be a mistake. India and the EU have been negotiating for years now. They share values and beliefs, including strategic autonomy, a multipolar world, secularism, pluralism, democracy and tolerance.”
— “The Joint Comprehensive Strategic Agenda (2030) is based on five pillars. The FTA will further the first pillar, prosperity. The second pillar of tech and innovation will require progress in the Trade and Technology Council, while the third pillar of defence will require implementation of the Security and Defence Partnership. The fourth pillar of connectivity will require advancing the India-Middle East-Europe-Economic Corridor, and the fifth pillar of people-to-people ties will benefit from the mobility partnership. Both sides have their work cut out.
— “India and EU have resembled two lovers who have taken their own sweet time to tie the knot. The fact that they have eventually come together is evidence of demonstrable compatibility and strategic convergence. As a multipolar world takes shape, it is obvious that both India and the EU fancy pole position for themselves.”
— The European Union is a group of 27 countries in Europe. The relationship between India and the EU is based on shared values and principles such as democracy, rule of law, rules based international order and multilateralism. The ties are multifaceted and cover a broad spectrum of topics including trade, investment, climate change, science and technology, digital, connectivity and agriculture.
— India-EU bilateral relations date back to the early 1960s with India being amongst the first countries to establish diplomatic relations with the European Economic Community— the first pillar of the future European Union — back in 1962. The Joint Political Statement was signed in 1993.
1. limits the levels of the budgetary deficit of the countries of the European Union
2. makes the countries of the European Union to share their infrastructure facilities
3. enables the countries of the European Union to share their technologies
EXPLAINED
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 hosted 22 members of the League of Arab States (AL) for the second India-Arab Foreign Ministers Meeting, 10 years after the first iteration in Bahrain.
— Know about the history of the Arab League. Why was it formed?
— Understand the conflicts in the states of Sudan, Somalia and Libya
— What is the Board of Peace? Why has India not joined it yet?
— What is the Arab Peace Initiative of 2002?
— Map work: Locate the member countries of the Arab League, Chabahar Port, and Gaza
— This meeting occurred amid escalating tensions between Iran and the US, a growing rift between Saudi Arabia and UAE, and the US President Donald Trump-led Board of Peace attempting a new approach to resolving the Israel-Palestine question.
— In a joint statement — the Delhi Declaration — after the meeting, India and the Arab League clarified their positions on a number of issues, apart from commitments to enhance cooperation.
— The Delhi Declaration uniformly focuses on the need to uphold the “sovereignty, unity, and territorial integrity” of Sudan, Somalia and Libya, and “rejects interference” in their internal affairs.
— All three nations have been central to the growing rift between two camps in the Middle East — one led by Saudi Arabia as the principal power supported by most of the Arab League, and one led by the UAE and Israel, and supported by the US.
— Formally, these camps do not exist — especially as the UAE remains a crucial constituent of the League (co-chairing the January 31 meeting). The lines of division, however, are evident on the ground in each of these states, as reflected by the measures each side has taken.
— The UAE is accused of supporting the Rapid Support Forces in Sudan, a militia that has waged war against the Sudanese government (since 2023), established a parallel government (in April 2025), and brutalised civilians in city after city.
— The case is similar in Libya, where the UAE has long supported the breakaway Libyan National Army (LNA) led by Khalifa Haftar, which is opposed to the internationally recognised government in Tripoli. While other AL states such as Saudi Arabia have engaged with the LNA, the bulk of their efforts is towards reconciliation between conflicting factions.
— In the case of Somalia, Israel is the only UN member-state to recognise the Republic of Somaliland — a breakaway quasi-state within Somalia. The UAE began recognising Somaliland passports in 2025, a position contrary to other AL states.
— While India was quick to rebuff any possibility of recognising Somaliland last December, it took a categorical position along with the rest of the Arab League in reiterating its support for the internationally recognised governments in Libya and Sudan on January 31. The Delhi Declaration’s condemnation for atrocities against civilians in particular is in line with this position.
— In Yemen (which has been the principal site of the conflict between Abu Dhabi and Riyadh), India and the AL explicitly condemned Houthi attacks on navigation in the Red Sea. This is a subtle break from India’s policy of condemning Houthi actions without explicitly naming the group in the last two years, as the Houthis linked their actions with Israel’s war in Gaza.
— More importantly, the Declaration’s support for Yemen’s unity is in line with the Saudi position that Riyadh militarily enforced in December/January by acting against the UAE-backed Southern Transitional Council, a secessionist faction in South Yemen.
— Last, the Declaration is relatively quiet on Syria, restricting itself to an appreciation of Damascus’s counter-terror efforts against the Islamic State. In any case, Indian engagement with post-Assad Syria, led by the formerly Al Qaeda-affiliated Ahmed al-Sharaa, has been “bureaucratic-ministerial” (read cautious).
— The Delhi Declaration makes no mention of the Donald Trump-led Board of Peace (BoP). While key Gulf states are now BoP members, India is yet to accept the invitation extended in January.
— Notably, the Delhi Declaration features support for the Arab Peace Initiative of 2002. This is a land-for peace arrangement where Arab states recognise Israel in exchange for Israeli recognition of a Palestinian state based on pre-1967 borders.
— While the Declaration also supports the 2025 Sharm el-Sheikh summit’s outcomes (which also features the only mention of America’s role), the reference to the Arab Peace Initiative signals the actual preferences of both India and the Arab League.
— Finally, the Declaration avoids mentioning the principal conflict that threatens fresh regional instability — the US military build-up around Iran and the prospect of a larger war. This is arguably to respect bilateral approaches.
— Notably, India’s 2026-27 budget bears no allocation for the Chabahar Port despite India’s 10-year agreement in 2024 to operate the port — a reflection of vulnerability to US sanctions.
— Ultimately, the Delhi Declaration furthers India-Arab League cooperation on the five key pillars identified at the inception of the meeting as the highest institutional dialogue mechanism between India and the Arab League in 2002 — economy, energy, education, media and culture.
— India hosted the 2nd India-Arab Foreign Ministers’ Meeting (IAFMM) on 31 January 2026. The meeting was co-chaired by India and the UAE.
— The Foreign Ministers’ meeting happened after a gap of 10 years, the first meeting being held in 2016 in Bahrain.
— India Arab Foreign Ministers’ Meeting is the highest institutional mechanism driving this partnership, which was formalised in March 2002 when India and League of Arab States (LAS) signed an MoU institutionalizing the process of dialogue.
— The Arab League, formally known as the League of Arab States, was established in 1945 with initially just six nations: Egypt, Iraq, Jordan, Lebanon, Saudi Arabia, and Syria. Currently, it has 22 member states, who have pledged to cooperate on economic and military affairs, among other issues.
— The present-day Somaliland claims itself the legal successor of the erstwhile British Somaliland or the Somaliland Protectorate.
— It comprised self-ruled sultanates under British protectorate between 1884 and 1920 before coming under the Crown’s jurisdiction. It was formally established as a British colony in 1920.
— British Somaliland gained independence and became the State of Somaliland, which existed for five days between June 26 and July 1, 1960. The state then voluntarily merged with the former Trust Territory of Somaliland, its Italian-administered neighbour, to form the Somali Republic (1960-69).
— This nation collapsed after a military coup, and the Somali Democratic Republic formed, with General Siad Barre as the leader.
— In 1988, Barre brutally crushed a rebellion by the Somali National Movement (SNM), a pro-independence outfit against his policies, killing 50,000 to 200,000 civilians and causing an exodus of over 300,000 to Ethiopia.
— The SNM prevailed in its struggle against Barre’s regime and unseated him in 1991, declaring independence. The present-day Somaliland came under SNM’s control and was formally established in 1991.
Statement-I: Israel has established diplomatic relations with some Arab States.
Statement-II: The ‘Arab Peace Initiative’ mediated by Saudi Arabia was signed by Israel and Arab League.
Which one of the following is correct in respect of the above statements?
The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyse India’s energy policy cooperation with West Asian countries. (UPSC CSE 2017)
Main Examination: General Studies II: Indian Constitution—historical underpinnings, evolution, features, amendments, significant provisions and basic structure.
What’s the ongoing story: In recent days, the committee heads of the ‘Chota Char Dham’ shrines in Gangotri, Yamunotri, Kedarnath, and Badrinath in Uttarakhand have said that non-Hindus may soon be banned from entering the temple premises.
— What are the constitutional provisions related to the freedom of religion?
— What is the “Essential Religious Practices” doctrine?
— How does Essential Religious Practices balance the right to freedom of religion and other fundamental rights?
— What is the Chardham Project?
— Mapwork: Location of Yamunotri, Gangotri, Kedarnath and Badrinath, Important wildlife sanctuaries and National Parks in the region.
— Last week, the head of the Badrinath-Kedarnath Temple Committee (BKTC), Hemant Dwivedi, cited the demands of local priests as the reason for the proposed change. The heads of the Gangotri and Yamunotri Dham committees said they will examine a similar proposal. Questions have since been raised about how the decision may actually be instituted, as well as its constitutionality.
— The United Provinces Shri Badrinath [and Kedarnath] Temples Act of 1939, later amended in 1948, bestows the duty of administration and governance of the temple and its funds upon the BKTC. The ownership of the temple funds is vested in the deity of Badrinath or Kedarnath, and the committee is entitled to their possession.
— The committee was originally meant to comprise two people elected by the Hindu members of the Uttar Pradesh Legislative Assembly, and one person elected by the Hindu members of the UP Legislative Council (later the Uttarakhand Legislative Assembly after the state was formed).
— Four other members were elected from the districts of Garhwal, Tehri Garhwal, Uttarkashi, and Chamoli by the Hindu members of their Zila Parishads.
— Today, the state government also nominates the committee president and seven members. It can appoint any member of the committee as vice-president. In 2025, the government amended the Act to allow for two Vice-Presidents.
— The committee will, in turn, appoint the Rawal or head priest of the Dham, and a Naib-Rawal or assistant priest. After consulting the committee president, the state government shall appoint a person possessing the prescribed qualifications as Mukhya Karyadhikari, who will be the chief executive officer of the committee.
— Importantly, the state government can supersede the committee’s decisions. Although the committee can terminate a Rawal or Naib Rawal, they can appeal to the government. The state government also appoints an auditor for the temple accounts and endowments. The committee must also submit a report on the administration of temple affairs at such time as the government may prescribe.
— Dwivedi said that Articles 25 (right to freedom of religion) and 26 (freedom to manage religious affairs) of the Constitution protect their religious rights.
— In a similar incident in January 2024, the Madurai Bench of the Madras High Court directed the state government, the Hindu Religious and Charitable Endowments Department and temple authorities to install boards at the entrances and prominent locations of temples (including the kodimaram or flagpole). These were to indicate that non-Hindus were not allowed beyond the kodimaram. It followed a petition by a man from Dindigul who owned a toy shop near the hillock where the Dhandayuthapani Swamy Temple is located.
— The petition said that non-Hindus often treated temples like tourist spots, disrespecting the sanctity of the faith. It said non-Hindus consuming non-vegetarian food within temple premises and attempting prayers of other religions, raising concerns among Hindu devotees about the erosion of their religious spaces.
— The Tamil Nadu government had argued that prohibiting entry to non-Hindus who believe in the deity could contravene their constitutional rights. However, the court countered that the state’s concern for the sentiments of non-Hindus overshadowed the need to protect Hindu religious practices.
— Dr Kartikeya Hari Gupta, an advocate at the Uttarakhand High Court, argued that the proposed ban in Uttarakhand was unconstitutional. He reasoned that Article 19(1)(d) of the Constitution allows the right to move freely throughout the territory of India.
— Challenging the committee’s arguments based on Article 25, he said that its application was not absolute, but conditional. “There is an essential religious practices doctrine test set by the Supreme Court. If any religious group wants to protect any religious activity, they have to prove it is essential to their religion, so much so that if you remove that practice, the person will stop belonging to the religion. The committees here will have to establish that prohibiting a Muslim from entering the shrines can make the temples essential for being a Hindu institution,” Gupta added.
— Originating in the 1950s, the essential practices doctrine states that the practices and beliefs that a religious community considers integral are to be regarded as “essential” and protected under Article 25. In the 2018 Sabarimala temple case judgment, the majority opinion held that barring certain women from entering the temple owing to the celibate nature of Lord Ayyappa was not an essential religious practice, thus allowing them in the temple.
— The doctrine of “essentiality” was invented by a seven-judge Bench of the Supreme Court in the ‘Shirur Mutt’ case in 1954. The court held that the term “religion” will cover all rituals and practices “integral” to a religion, and took upon itself the responsibility of determining the essential and non-essential practices of a religion.
How the Indian concept of secularism is different from the western model of secularism? Discuss. (UPSC CSE 2016)
ALSO IN NEWS Your next car may be expensive. Blame the AI data centre boom The artificial intelligence (AI) revolution’s insatiable appetite for infrastructure is creating spillover effects across industries, with automakers now feeling the pinch as commodity prices surge. Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has flagged margin pressure from rising costs of metals such as aluminium and copper, pointing to competition from AI-driven demand as a contributing factor.The artificial intelligence (AI) revolution’s insatiable appetite for infrastructure is creating spillover effects across industries, with automakers now feeling the pinch as commodity prices surge. Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has flagged margin pressure from rising costs of metals such as aluminium and copper, pointing to competition from AI-driven demand as a contributing factor.
Is WhatsApp reading user messages? What US lawsuit claims A class action lawsuit filed in a US federal court has alleged that WhatsApp’s cornerstone claim that its end-to-end encryption policy, which purportedly prevents even WhatsApp from reading its users’ messages, is false and that its parent company Meta has unrestricted access to user communications.This lawsuit in the US stands in stark contrast with WhatsApp’s legal battle in the Delhi High Court. In 2021, the Indian government introduced the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules that, among other things, requires social media platforms to enable the identification of the “first originator” of information when ordered by a court or public authority.
Growth remains priority, looking at more PSU divestment: FM A day after presenting the Union Budget 2026-27 in Parliament, Finance Minister Nirmala Sitharaman said on Monday that growth will continue to be the government’s priority as it moves along the fiscal consolidation path, adding that a sharper reduction in the fiscal deficit could have been opted for, but a choice was made to focus on infrastructure spending as a tool for sustaining growth. Speaker adjourns LS; Govt scared, says Rahul; Cong should apologise: Rijiju Leader of Opposition Rahul Gandhi’s reference to China in the unpublished memoirs of former Chief of Army Staff General M M Naravane (Retd) triggered a political firestorm on Monday, leading to repeated disruptions in the Lok Sabha.Citing House rules, senior ministers including Rajnath Singh, Amit Shah and Kiren Rijiju objected to Gandhi reading from an unreleased book. Invoking Rule 349(i) of the Rules of Procedure and Conduct of Business in the Lok Sabha, Speaker Om Birla directed Gandhi not to quote from a purported extract of the book.
Rule 349 lays down norms to be observed by members in the House. Clause (i) states that “a member shall not read any book, newspaper or letter except in connection with the business of the House”.
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Curated by Dr. Elena Rodriguez
